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← Fortunatus Housing Solutions

2024-08-31-accounts

REGISTERED COMPANY NUMBER: 07744211 (England and Wales) REGISTERED CHARITY NUMBER: 1144246

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

FOR

FORTUNATUS HOUSING SOLUTIONS

FORTUNATUS HOUSING SOLUTIONS

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

Page
Report of the Trustees 1 to 8
Report of the Independent Auditors 9 to 12
Statement of Financial Activities 13
Balance Sheet 14
Cash Flow Statement 15
Notes to the Cash Flow Statement 16
Notes to the Financial Statements 17 to 25
Detailed Statement of Financial Activities 26 to 27

FORTUNATUS HOUSING SOLUTIONS

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2024. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The charity's objective is to house vulnerable adults in the community, whilst providing them with weekly support to manage their bills and any other housing related issues.

The charity aims to do this with the aid of local government funding and any other fund-raising activities that it sees fit.

In the short term, the charity's aims are to continue to house 170 vulnerable adults in the community successfully following a difficult period over the last couple of years caused by the global pandemic of Covid 19. These ramifications continued into 2023/24 due to rising interest rates and inflation nationally.

The charity carried out a review of it charges in April 2023 and April 2024 and this new charging formula and increases were accepted by the local authorities Housing Benefit departments that the charity works within. Based on 170 tenants, this generated a further approximate £120,000 per year income which enabled a robust budget to be written in September 2024 to incorporate rising costs within the charity.

In the longer term, the charity's main objective is to maintain stability for its tenants and ensure that the charity is always working within the remits of the housing benefit regulations.

The charity's managing director continues to play a key part in the current reform of supported housing funding that is currently being legislated in parliament and in her position as President of the lobbying organisation the IRRV (Institute of Rating, Rents and Valuation) is again speaking at several prominent conferences about the challenges faced in this sector in the coming year. In 2022, the charity were the winners of the IRRV's national social inclusion award at their Annual Conference Performance Awards and the Managing Director continues to speak about this success at national events going forward in to 2025.

Page 1

FORTUNATUS HOUSING SOLUTIONS

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

OBJECTIVES AND ACTIVITIES

Significant activities

The charity's main activity is the sourcing of individual properties, within respectable areas of the community, which enable successful independent living for its tenants. Once these properties are sourced, the charity's weekly activity includes the support of these individuals in their home.

The charity's tenants are vulnerable adults, referred to the charity by local authorities and NHS trusts for specialist housing.

Working with local authorities and NHS trusts to receive referrals for housing that meet the criteria required for funding, ensures that there is continuity of funding and a best practice method adopted.

The main aim and therefore activity of the charity is that each vulnerable adult is housed for life and often for the first time stays in 1 property for longer than 6 months. This is done by a method of wrap around support available 24 hours a day and a methodology of funding whatever is needed to make that tenancy a success. This includes a fully furnished home, support with bills, replaced furnishings if damaged due to poor mental health, books, specific beds, bedding etc - the list is unlimited.

The majority of the charity's tenants have been housed with the charity for 5 years or more, a very quantifiable success for the individuals housed and for the savings to the wider community.

The charity's achievements are therefore measured by the success of vulnerable adults living with them for longer than 6 months and the money saved therein to the public purse. See Measuring of Success for how these achievements are recorded.

The charity's measure of success is with regards to the meeting of its objectives, as follows:

These successes are recorded using a piece of software from Destin Solutions. This enables the charity to record every individual it houses, where they were housed previously, the longevity of their tenancy and the savings provided to the public purse for the period housed with the charity. These saving figures are provided to the individual local authorities.

Continued membership of the IRRV, Chartered Institute of Housing and participation in government reform ensures that legislation is always adhered to.

Public benefit

In setting our objectives and planning our activities our trustees have given careful consideration to the Charity Commission's general guidance on public benefit and, their guidance on fee-charging regarding services provided.

Page 2

FORTUNATUS HOUSING SOLUTIONS

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

OBJECTIVES AND ACTIVITIES

Grant income

The charity is funded by local government funding, in the form of Housing Benefit for supported and exempt accommodation. This funding is received when certain criteria are met regarding the vulnerability of the tenants and the fact that the charity is a not-for-profit organization.

The funding for supported accommodation was reviewed and the results of that review were published in May 2018. The decision has been made centrally to leave the funding of supported accommodation as it currently is, providing a stable and ongoing funding structure for the charity. From 2020 the charity was required to provide management information to show that it's housing is not a short-term solution (longevity of tenants) and that it provides Value for Money.

To this aim, the charity already collates data of the savings provided by a tenant being housed with Fortunatus, by comparing the weekly costs of living with Fortunatus compared to the weekly costs of where they lived previously (e.g., long term hospital). The savings to the public purse per annum currently exceeds £2,000,000 per annum.

Fortunatus went 'live' with a new system from Destin Solutions in early 2019, which it has continued to develop since, producing reports for local government funding decision makers of the savings to the public purse and wider community. The system records all referrals into the charity and records the length of time for the process of receiving a referral to housing someone, how long they live with Fortunatus, and the weekly savings provided. This enables reports to be produced and provided to both local authorities and central government.

In 2020 a further consultation took place that resulted in a new government bill in October 2023. This bill gives local authorities the powers to regulate supported accommodation further with regards to value for money and quality of support.

This has been piloted in 5 local authorities in England and is due further public consultation in 2025.

The Managing Director has been involved in this consultation throughout and the charity already records value for money savings and quality inspections to the local authorities it works within. The Managing Director has spoken nationally about these changes in late 2024 and continues to do so going in to 2025.

In addition, the charity currently has a waiting list of 24 individuals awaiting housing, the upfront cost to housing each of these is approximately £3,000 per head.

The charity has also committed to another 10-year lease in 2018, with a rent break clause in 2023 to be negotiated. This was agreed from August 2023 and the lease for Unit 9 Colville Court has increased by almost 100%, however rent modelling from 2023 had already incorporated this expected rise in the service charge included in the service user's rent charges. Information regarding commercial market rents was already available before this lease increase. The charity has acquired new vehicles to lease for a 3-year period and where prudent has extended some leases to 5 years. The total of all its commitments is supported by the reserves it has gradually built and these reserves will also enable the charity to further enhance the quality of life of its tenants.

The Housing Support team continue to be based from home and go out in the community and carry out their fortnightly meetings virtually (with an in person meeting once a month).

Page 3

FORTUNATUS HOUSING SOLUTIONS

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

OBJECTIVES AND ACTIVITIES

The decision was made again by trustees to carry forward a provision at year end, totalling £47,200 - this is for known dilapidations on the 31st of August 2024 and a provision for this work (as per the same modelling as the previous year) and is a model that the charity has used for a number of years. In addition, a further £20,000 legal costs provision was agreed for the ongoing legal costs associated with the possession of a property that is proceeding to trial.

Volunteers

The charity currently has no volunteers on a daily basis, although two of the trustees are paid expenses only.

The charity currently has 6 trustees.

The charity continues to use the Unity lottery; however, its main funding remains housing benefit from local government.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The charity did not increase its number of houses and tenants significantly, the housing market is quite volatile at the moment and some owners of properties had decided to sell due to rising mortgage rates. These are now gradually being replaced again. Due to the nature of the charity's tenants, unavoidable voids due to deaths, severe mental health breakdown and other factors also play a part. It has been agreed by the board that growth for 2024/25 will be 0 and the charity will attempt to stay at the same size.

Some maintenance services continue to be contracted out (gardening, window cleaning, decorating) to enable the in-house maintenance team to spend more time with each individual when carrying out other repairs. This has continued throughout the year and is used whenever necessary.

A local 'one-man' company has started to do rubbish removals for the charity, which has reduced costs from using larger firms and preventing build-up of rubbish at the warehouse

The Communications Officer continues to provide concentrated resources into building the charity's presence on the web and within social media, to help build an audience that will work hand in hand with the fundraising team to build both awareness of mental health but also to encourage supporters to support us financially. The Communications Officer also continues to work with the Business Development Manager to raise awareness of fundraising events.

The management team of the MD, Housing Manager, Property and Lettings Manager and Business Development Manager continue to ensure that all parts of the business work within a tight and transparent framework of procedures that enable the charity to house individuals promptly and safely in the community

What charity did achieve in this period was:

Page 4

FORTUNATUS HOUSING SOLUTIONS

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

FINANCIAL REVIEW

Reserves policy

The Trustees have considered the amount that would be required to administer the organisation in the event of a crisis. This would include potential costs of redundancy, notice periods, accounting, legal fees and repayment of any long-term contracts on closure. A prudent sum would equate to three months operating costs with within the unrestricted general reserve - around £600,000

The unrestricted reserves at the year-end totalled £475,650.

Principle risks and uncertainties

The principles risk and uncertainties within the charity lie within certain key areas.

FUTURE PLANS

The charity's aim is to continue to provide housing for vulnerable adults in compliance with its funding stream

This requires:

Any future developments will only involve a solidification of the quality provided to the charity to its tenants.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Page 5

FORTUNATUS HOUSING SOLUTIONS

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT

Directors

C Nicholson S Pimblett S Ellison I Theobold

Induction and appointment of new trustees

Trustees are appointed based on 3 key principles - Skills, Knowledge, and Experience

Any recruitment of trustees is carried out by the chairman of the board and two key managers, and the methodology is to seek trustees who have skills in change management, overseeing projects, HR skills and skills that would enhance the charity. Knowledge in housing, local authority funding and mental health services would also be a desirable and experience in any or all of these fields, as well as experience in working within a financial environment that includes budgets.

Any recruitment of trustees is carried out via a verified recruitment path (LinkedIn etc) and a shortlist is produced by the management team and chairman and a series of interviews takes place prior to appointment.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

07744211 (England and Wales)

Registered Charity number

1144246

Registered office

Unit 9 Colville Court Winwick Quay Warrington Cheshire WA2 8QT

Trustees

I D Theobold S Ellison J Dentith C Fouracre K Harding K Napier

Company Secretary

R Langhorn

Page 6

FORTUNATUS HOUSING SOLUTIONS

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

REFERENCE AND ADMINISTRATIVE DETAILS

Auditors

Voisey & Co LLP 8 Winmarleigh St Warrington Cheshire WA1 1JW

Accountants

WatkinsonBlack 1st Floor, 264 Manchester Road Warrington Cheshire WA1 3RB

Key Management Personnel

Catherine Nicholson - Managing Director Sara Pimblett - Business Development Manager Rachel Langhorn - Property and Lettings Manager Stephen Sweeney - Housing Manager

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Fortunatus Housing Solutions for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 7

FORTUNATUS HOUSING SOLUTIONS

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

In so far as the trustees are aware:

AUDITORS

The auditors, Voisey & Co LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Approved by order of the board of trustees on ............................................. and signed on its behalf by:

....................................................................

S Ellison - Trustee

Page 8

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF FORTUNATUS HOUSING SOLUTIONS

Opinion

We have audited the financial statements of Fortunatus Housing Solutions (the 'charitable company') for the year ended 31 August 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Page 9

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF FORTUNATUS HOUSING SOLUTIONS

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Page 10

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF FORTUNATUS HOUSING SOLUTIONS

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

1 - We enquired of management and those charged with governance about actual and potential litigation and claims in the context of the company, including review of relevant nominal ledger accounts.

2 - We obtained an understanding of laws, regulations and guidance that affect the company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on their operations. Key laws, regulations and guidance that we identified included the Companies Act 2006, Charities Act 2011,Housing Benefit Regulations 1989, health and safety legislation and employment legislation.

3 - We enquired of management and those charged with governance to identify any instances of non-compliance with laws and regulations. We also reviewed meeting minutes where available for evidence of non-compliance with relevant laws and regulations.

4 - We reviewed the company's financial statement disclosures, and agreed all to supporting documentation to assess compliance with the applicable laws and regulations discussed above.

5 - We gained an understanding of the controls that management have in place to prevent and detect fraud. We enquired of management about any incidences of fraud that had taken place during the accounting period.

6 - The risk of fraud and non-compliance with laws and regulations was discussed within the audit team and tests were planned and performed to address these risks.

7 - In addressing the risk of fraud due to management override of controls, we performed testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

8 - We also challenge management assumptions with regard to accounting estimates.

Despite appropriate planning and performing our work in accordance with International Auditing Standards, there are always inherent limitations that non-compliance is not detected. Non-compliance with laws and regulations is often further removed from the events and transactions reflected in the financial statements and material misstatements due to fraud can be deliberately concealed from auditors, for example through misrepresentation, forgery or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Page 11

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF FORTUNATUS HOUSING SOLUTIONS

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Hayley Jardine BFP ACA (Senior Statutory Auditor) for and on behalf of Voisey & Co LLP 8 Winmarleigh St Warrington Cheshire WA1 1JW Mar 27, 2025 Date: .............................................

Page 12

FORTUNATUS HOUSING SOLUTIONS

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2024

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
3
Activites for generating funds
Total
EXPENDITURE ON
Charitable activities
4
Activites for generating funds
Other
Total
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 31.8.24
Unrestricted
Restricted
Total
fund
fund
funds
£
£
£
725
-
725
3,011,224
-
3,011,224
3,011,949
-
3,011,949
2,749,378
-
2,749,378
159,310
-
159,310
2,908,688
-
2,908,688
103,261
-
103,261
372,235
-
372,235
475,496
-
475,496		 31.8.23
Total
funds
£
1,224
2,791,446
2,792,670
2,497,482
154,402
2,651,884
140,786
231,449
372,235

The notes form part of these financial statements

Page 13

FORTUNATUS HOUSING SOLUTIONS

BALANCE SHEET 31 AUGUST 2024

31.8.24 31.8.23
Unrestricted Restricted Total Total
fund fund funds funds
Notes £ £ £ £
FIXED ASSETS
Tangible assets 11 39,087 - 39,087 15,786
CURRENT ASSETS
Debtors 12 166,638 - 166,638 139,631
Cash at bank and in hand 400,604 - 400,604 364,121
567,242 - 567,242 503,752
CREDITORS
Amounts falling due within one year 13 (130,833) - (130,833) (147,303)
NET CURRENT ASSETS 436,409 - 436,409 356,449
TOTAL ASSETS LESS CURRENT
LIABILITIES 475,496 - 475,496 372,235
NET ASSETS 475,496 - 475,496 372,235
FUNDS 14
Unrestricted funds 475,496 372,235
TOTAL FUNDS 475,496 372,235

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by: Mar 25, 2025

............................................. S Ellison - Trustee

The notes form part of these financial statements

Page 14

FORTUNATUS HOUSING SOLUTIONS

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2024

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Sale of tangible fixed assets
Net cash used in investing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 31.8.24
£
75,571
75,571
(39,494)
406
(39,088)
36,483
364,121
400,604		 31.8.23
£
223,047
223,047
(9,766)
-
(9,766)
213,281
150,840
364,121

The notes form part of these financial statements

Page 15

FORTUNATUS HOUSING SOLUTIONS

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2024

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

ACTIVITIES
Net income for the reporting period (as per the Statement of
Financial Activities)
Adjustments for:
Depreciation charges
Profit on disposal of fixed assets
(Increase)/decrease in debtors
(Decrease)/increase in creditors
Net cash provided by operations
2.
ANALYSIS OF CHANGES IN NET FUNDS		 31.8.24
£
103,261
16,039
(252)
(27,007)
(16,470)
75,571		 31.8.23
£
140,786
8,492
-
26,199
47,570
223,047
At 1.9.23 Cash flow At 31.8.24
£ £ £
Net cash
Cash at bank and in hand 364,121 36,483 400,604
364,121 36,483 400,604
Total 364,121 36,483 400,604

The notes form part of these financial statements

Page 16

FORTUNATUS HOUSING SOLUTIONS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery - 33% on cost Fixtures and fittings - 20% on cost Motor vehicles - 25% on cost Computer equipment - 33% on cost

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

continued...

Page 17

FORTUNATUS HOUSING SOLUTIONS

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

1. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Grant income

Grants relating to revenue are recognised in the statement of financial activities on a systematic basis over the periods in which the charity recognises the related costs for which the grant is intended to compensate.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with bank, other short term liquid investments with original maturities of three months or less, and bank overdrafts.

Significant judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The key assumptions concerning the future and other key sources of estimation include uncertainties at the reporting date, which may have a risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial periods, are discussed below.

The value of provisions in the accounts reflects obligations at the reporting date as a result of a past event from which it is probable the company will be required to transfer economic benefits. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

Going concern

The accounts have been prepared on the going concern basis. In the Trustees' opinion the charity has adequate resources to continue in operational existence and there are no material uncertainties that affect the charity's ability to operate on the going concern basis for the foreseeable future.

Financial Instruments

The following assets and liabilities are classified as financial instruments - trade debtors, other debtors, prepayments, trade creditors, other creditors, accruals and deferred income.

Financial instruments are measured at the undiscounted amount of the cash or other consdieration expected to be paid or received.

continued...

Page 18

FORTUNATUS HOUSING SOLUTIONS

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

1. ACCOUNTING POLICIES - continued

Grant income

Financial assets and liabilities that are measured at amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Financial Activity, and the historic cost is included in the notes to the accounts.

2. DONATIONS AND LEGACIES

Donations
3.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Housing benefit receivable
Activites for generating funds
4.
CHARITABLE ACTIVITIES COSTS
Activites for generating funds
5.
SUPPORT COSTS
Activites for generating funds
Activites for generating funds		 Direct
Costs
£
1,620,530
Management
£
1,006,605
Human
resources
£
30,748		 31.8.24
£
725
31.8.24
£
3,011,224
Support
costs (see
note 5)
£
1,128,848
Finance
£
26,629
Governance
costs
£
32,194		 31.8.23
£
1,224
31.8.23
£
2,791,446
Totals
£
2,749,378
Information
technology
£
32,672
Totals
£
1,128,848

continued...

Page 19

FORTUNATUS HOUSING SOLUTIONS

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

6. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

Auditors' remuneration
Depreciation - owned assets
Hire of plant and machinery
Other operating leases
TRUSTEES' REMUNERATION AND BENEFITS
Trustees' fees		 31.8.24
£
6,348
15,787
82,927
1,434,561
31.8.24
£
23,850		 31.8.23
£
6,210
8,492
78,419
1,282,934
31.8.23
£
23,950

7. TRUSTEES' REMUNERATION AND BENEFITS

Trustees' expenses

Trustees fee compromise a £50 fee paid per meeting, in addition to £18,000 paid to IDAT Services Limited in relation to Ian Theobolds Consultancy Fees and £5,400 paid to Susan Ellison for Accountancy Services. Both of these engagements are carried out on normal commercial terms.

8. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 31.8.24
£
889,796
80,880
40,103
1,010,779		 31.8.23
£
841,702
76,318
38,258
956,278

The average monthly number of employees during the year was as follows:

31.8.24 31.8.23
Average employees 26 26

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

31.8.24 31.8.23
£100,000 - £110,000 1 1

continued...

Page 20

FORTUNATUS HOUSING SOLUTIONS

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

8. STAFF COSTS - continued

Included within staff costs is salaries relating to two directors. The total employment benefits of these directors was £143,112 (2023: £139,038).

During the year both the Managing Director and the Business Development Director were provided with a car. The lease payments in relation to these vehicles totalled £9,230 and £8,060 respectively.

The key management personnel of the charity comprise the trustees, MD, Housing Manager, Property and Lettings Manager (previously Operations Manager) and Business Development Manager (previously Fundraising Manager). The total employment benefits of these personnel was £232,484 (2023: 212,943).

9. LEASING COMMITMENTS

At the balance sheet date the charity had several financial commitments such as vehicle and property leases.

The total amount contracted for but not provided in the financial statements was £429,533. (2023 - £315,398).

The most significant lease commitment being a new 5 year property lease that was signed on 2nd August 2023.

10. EMPLOYEE LOANS

The charity has provided interest free loans to some employees. These loans are all repayable over more than 1 year.

The total balance on these loans at the year end was £13,308, and the amount repayable after more than 1 year was £7,709.

continued...

Page 21

FORTUNATUS HOUSING SOLUTIONS

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

11. TANGIBLE FIXED ASSETS

Plant and
machinery
£
COST
At 1 September 2023
14,438
Additions
276
Disposals
(204)
At 31 August 2024
14,510
DEPRECIATION
At 1 September 2023
12,718
Charge for year
1,075
Eliminated on disposal
(130)
At 31 August 2024
13,663
NET BOOK VALUE
At 31 August 2024
847
At 31 August 2023
1,720
DEBTORS
Amounts falling due within one year:
Trade debtors
Other debtors
Bonds recoverable
Employee loans
Prepayments and accrued income
Amounts falling due after more than one year:
Employee loans
Aggregate amounts		 Fixtures
and
fittings
£
18,841
250
(210)
18,881
8,470
3,077
(133)
11,414
7,467
10,371		 Motor
vehicles
£
3,300
32,995
-
36,295
3,300
7,561
-
10,861
25,434
-		 Computer
equipment
£
40,068
5,973
(426)
45,615
36,373
4,074
(171)
40,276
5,339
3,695
31.8.24
£
63,375
-
26,169
5,600
63,785
158,929
7,709
166,638		 Totals
£
76,647
39,494
(840)
115,301
60,861
15,787
(434)
76,214
39,087
15,786
31.8.23
£
21,643
45
27,239
6,633
71,415
126,975
12,656
139,631

12. DEBTORS

continued...

Page 22

FORTUNATUS HOUSING SOLUTIONS

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Social security and other taxes
Pensions
Provisions
Accrued expenses		 31.8.24
£
11,892
22,139
5,105
67,200
24,497
130,833		 31.8.23
£
48,691
22,959
4,912
42,890
27,851
147,303

A provision is provided in order to cover the costs incurred in relation to property dilapidation. This is provided for at £220 per property for a general provision, where a property requires smaller remedial work or for specific provisions a calculated estimate is made.

As at 31st August 2024, the provision was made up of £34,000 specific provisions and £13,200 general provisions.

Analysis of provisions: Brought forward balance: 42,890 Amount utilised in the year: 21,440 Amount provided for in the year: 25,750 Carried forward: 47,200

14. MOVEMENT IN FUNDS

Unrestricted funds
General fund
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
TOTAL FUNDS		 At 1.9.23
£
372,235
372,235
Incoming
resources
£
3,011,949
3,011,949		 Net
movement
in funds
£
103,261
103,261
Resources
expended
£
(2,908,688)
(2,908,688)		 At
31.8.24
£
475,496
475,496
Movement
in funds
£
103,261
103,261

continued...

Page 23

FORTUNATUS HOUSING SOLUTIONS

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

14. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Net
movement
At 1.9.22
in funds
£
£
Unrestricted funds
General fund
231,449
140,786
TOTAL FUNDS
231,449
140,786
Comparative net movement in funds, included in the above are as follows:
Incoming
Resources
resources
expended
£
£
Unrestricted funds
General fund
2,792,670
(2,651,884)
TOTAL FUNDS
2,792,670
(2,651,884)
A current year 12 months and prior year 12 months combined position is as follows:
Net
movement
At 1.9.22
in funds
£
£
Unrestricted funds
General fund
231,449
244,047
TOTAL FUNDS
231,449
244,047		 At
31.8.23
£
372,235
372,235
Movement
in funds
£
140,786
140,786
At
31.8.24
£
475,496
475,496

continued...

Page 24

FORTUNATUS HOUSING SOLUTIONS

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

14. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 Incoming
resources
£
5,804,619
5,804,619		 Resources
expended
£
(5,560,572)
(5,560,572)		 Movement
in funds
£
244,047
244,047

15. RELATED PARTY DISCLOSURES

Julian Nicholson is the husband of a director and in a role of prominence.

Included within employee loans is an amount owed from a director, Sara Pimblett. The outstanding balance total £500 and is payable within the next 12 months.

Also included within employee loans, is a loan to key management personnel, totalling £2,000 with £1,200 of this being payable in the next 12 months.

16. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £40,104 (2023: £38,258).

Contributions totalling £5,105 (2023: £4,912) were payable to the scheme at the end of the year and are included in creditors.

Page 25

FORTUNATUS HOUSING SOLUTIONS

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2024

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Charitable activities
Housing benefit receivable
Total incoming resources
EXPENDITURE
Charitable activities
Vehicle lease and plant hire
Property rentals payable
Sub-contract costs
Repairs and maintenance
Motor expenses
Consultancy fees
Plant and machinery
Other
Director's salaries
Director's social security
Director's pensions
Support costs
Management
Wages
Social security
Pensions
Rent
Rates and water
Insurance
Light and heat
Carried forward		 31.8.24
£
725
3,011,224
3,011,949
82,927
1,367,123
25,561
87,517
35,996
5,367
16,039
1,620,530
136,334
16,198
6,778
159,310
729,612
64,682
33,325
67,438
6,459
39,728
9,363
950,607		 31.8.23
£
1,224
2,791,446
2,792,670
78,419
1,244,537
27,037
88,620
35,712
5,165
8,492
1,487,982
131,777
16,036
6,589
154,402
685,975
60,282
31,669
38,397
5,808
34,132
6,693
862,956

This page does not form part of the statutory financial statements

Page 26

FORTUNATUS HOUSING SOLUTIONS

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2024

Management
Brought forward
Telephone
Office expenses
Sundries
Donations
Finance
Trustees' fees
Bank charges
Information technology
Software and maintenance
Human resources
Training
Staff welfare
Travel expenses
Governance costs
Auditors' remuneration
Accountancy and legal fees
Impairment losses for tangible fixed assets
Total resources expended
Net income		 31.8.24
£
950,607
28,786
15,795
7,165
4,252
1,006,605
23,850
2,779
26,629
32,672
328
9,730
20,690
30,748
6,348
25,692
154
32,194
2,908,688
103,261		 31.8.23
£
862,956
27,316
12,319
7,153
2,331
912,075
23,950
3,040
26,990
32,093
1,746
9,280
17,391
28,417
6,210
3,715
-
9,925
2,651,884
140,786

This page does not form part of the statutory financial statements

Page 27