COMPANY NO.. 07817860 Derwentwater Independent Hostel Report of the Dirvtors and Trustees and Financial Statements for the year ended 31 October 2023 Keswllck ACCOUNTANTS *A081ECR 31107r2024 COMPANIES PIOUSE A13
Derwentwater Independent Hostel Index to the Financial Statements for the year ended 31 October 2023 Page Charity Informalion Trustees. Report Independent Examiner's Report Slalernent of Financial Activities Comparative Slalement of Financial Activilies Balance Sheet Notes lo the Financi21 Statements 12 16
Derwentwater Independent Hostel Charity Informalion for the year ended 31 October 2023 DIRECTORS AND TRUSTEES: John Snyder Sarah Snyder" Guy Lee Andrew Towler . Lauia Cadman CHIEF EXECUTIVE OFFICERS: T. Butcher BUSINESS.ADDRESS Barrow House . Borrowdale Keswick Cumbria CA12 5VR REGISTERED OFFICE: Barrow House Borrowdale Keswick Cumbria CA12 SUR CHARITY NUMBER: 1145368 COMPANY NUMBER: 07817860 ACCOUNTANT AND INDEPENDENT EXAMINER Frances Clark ACA Keswick Accountsnts Appleside 4 Leonard Street Keswick Cumbria CA12 4EJ BANKERS: Barclays Bank PLC Market Square Penrit Cumbria CA11 7YB Page 1
Derwentwater Independent Hostel Report of the Trustees for the year ended 31 October 2023 The Trvstees. who are the directors of the Company for the purposes of company law, present their report together with the financial statements of the Charity for the year ended 31 October 2023 The accounts have been prepared under the prwsions of the Companies Act 2006 and Ihe. Charities Act 2011. and in accordance wlh the Stslemenl of Recommended Practice ISORP 20051 on accounting for charities. Goveming Document Derwenlwaler Independent Hostel is a company lirnited by guarantee and registered charity. The company was established under a Memorandum of Association. which established the objects and powers ol the charitable company. and 15 governed under rt Arbcle$ of Assocats"on. Objectives The Charity's Articles declare the charity's obj.ects as". 81 the advancement of education, bl the advancement in life of chiklren ansj young peopÈ by deVelo.n9 their $kls, capacities and capabtlities to enable them to participate in SoCty as irependent. mature and responsible advlts., and cl the provision of reciealional and leisure time aclivily in the interes15 of social welfare for people who have need by reason of their youth, age, infirmity 01 disabiltiy. povety or social and economic circumstances. by the provision of educats.onal courses and physical and other aclivilies," and a550cialed residential facilities. and dl to help all. especially young people of limited means. to a greater knowledge. love and care of the countryside by providing a yoijth hostel or other accommodation for them and thus lo promote their health, recreation and education. Directors The direclois who acted during the perKxI We as follows.. John Snyder Sarah Snyder Guy Lee Andy Towler Laura Cadman Management Structure The ChartY now has live Trustees_ Page2.
Dèrwentwater Independent Hostel Report of Ihe Trustees, contd. for the year ended 31 October 2023 Review of the development, activities and achièvements ol the Company In the hvelrth full year of operating Dery¥entsYater Independent Hgstel IDIH} our support of the education sector has continued. QistomerTyp 2021111 123 %th•thBe V&Tto31110122 Twlo31rtor13 ¢nLY Edu¢11rtaAdWÈNIl Aduli SpQfj5GroP 107% 13% Loss .59% 74% SE¢pndwyS¢hOtsI 760 587 196 4Jx ¥oulhG(oupPrKJ NUI 464 5hthi 5179 Weddin .>7 )3% F¥GrOuP AthJli AdYIlfyup rale 454 41T6 757% -14 FalLhllhurth6io 63D .Ji% 5yb.to 1414 14914 13563
JbGprupTots yg 3170 A414 -5% 4u1z -2 Our previou5 repurting year 202Jr2022 saw overnights dothling from 7,773 to 14,934, wlth a strong retum in our Education customer base post Covid. The Cufnt reporfing year 202212023 shows 13,563 total overnights- and these totsl overnights are simibr in scale to Ihe pie-covid levels of 201712018 and 2018r2019 feporting years. However as a trend, Adult and Famtly Groups make a targer share of lotal ovemights post-covid than they did in pre-ctswd years. It seems the pandemic has delayed the rebJm rate of Education to residential localion5 lske 8arrow House. with anecdotal dence that lack of ts.me and funding. as well as an additional burolen of rules placecl on teachers is changiThJ the appetite for large groyp offsrtes. 1115 harder work for teachers to make these group stays happen. Also, many families and individuals stayed in the UK immediately after Covid. but ncw inlernab.onal travel has re-bounded in the last years. reducin9 fixjtfall back lo pre-covid levels. Page 3
Derwentwater Independent Hostel Report of the Trustees, contd. for the year ended 31 October 2023 Review of the development, act•vities and achievements of the Company l¢ont) The summer months continued to show high-season demand for our three pod cabins on the eastern edge of our driveway - each contributed to heKJhtened use of the ground5 for Ix)Ih family and individual stays In the summei holidays. However. sa¢Yty, June 2023 saw the temporary departure of our Hostel Manager Tim Bulcher on lorig-lerm sickness, with a natuial impact on the Charity's business. The evening dining seNi¢e land revenue) was immediately closed down as Deputy Managei stepped up In the vacuum lo help manage the staff team and finances in Tim's absence. The Trustees went into an 'emergency' mode and met regularly on a weekly, then fortnighlly and monthly basis On a Gleai strategy lor achieving wder Iransparency on Iinancial, rota. and standard operating procedures wa5 observed. Tim's absence from work show¢ased a blind spot where importanl files, log-ins and some systems were not exclusively held on office computers and little lo none on central cloud storage systems. creating some chaIngeS for Lth senmjr stsff and Trustees. A financial admin service was sought frorn Footprints EdUcatrn Limrted, for several months, lo help right the ship and give wder access to bank accounts and invoices on Xero for managing trading activity to the end ol the year. Similarly Laura Cadman provided HR services to Ihe Trustees and staff by working adhoc onsite with ihe remaining staff leam, liaising Wlth Tim in absentia and giving comfort and Iransparency to Ihe Trustees about what was actualty happening on the ground, at sile. Our Deputy Manager reswJned later in Sepfember, and the replacement who slepped.up from the team to replace our DLlty Manager. similarty resigned at the end of November 2023. Other season41 staff scheduled lo leave after the high season agreed lo stay on to help the team manage out the guest b¢)oking$ in the shoulder season. The loss of our key manager and the close down on some hoslel aclivilies, such as evening dining, naturally dUCed some potential revenues al the tail end of this reporting year. but it was important lo gel the basics rvJhl. The financial resvlls ¢Jo indeed show 8 loss of Irading compared to the trading profits of last year. 202212023 Volunteer Report In 202112022 we reported 275 Volunteer Hours, whereas in 202212023 we report over 800 Volunlee Hours. The Truslees. hostel manager and staff would I[e lo thank the following for SLJPKX)rting the hostel in the 2023 summer season" Page 4
Denventsvater Independent Host•l Report of tho Trustees, contd.. for thè year ènded 31 October 2023 Review of the development, activities and achievements of the Company (Contl Name Volunteer Hours Contributed. Oane Higgin5 Lucia Prelorius Georgia Ellis Jacob Ptsmerenle Duncan Gray Sophie Hunlington Erin Shaw Brendan Rose Imogen Carier Conslanltn Grulze 155 25 95 90 30 55 75 105 125 50 T.otal Volunteer Hours 805 Hours Special thanks go 1¢ Erin Shaw who joined us as a Volunteer before laking a paKI Hostel Assistant role beyond the Summer. A strong hard year As Chairman of the Trustees I would like to Ihank Tirn Butcher iri partioulai for leadiThg our hostel tearn as Hostel Manager over the majority of Ihe trading yew. He sel up in late 2022 the full bvdget plans for 2023. Oespite Tim's absence from ju 2023. the team conlinued on through the high sèason and reported lor the yearend a £460k revenue for 2022r2023 just above last tra(Jing years £458k. desprte the lower overnight lotals1-9'A Yony). This is a strong re5uII given some Df the roJmS1ance$. Inflationary presSuS on hoslel costs did result in higher price5 in the bu&Jel pjan. h¥n¢e Strong revenues desprfe lower overnights numbers. However Net Income for 2022r2023 Is reported at £-31kcomp3red to Ihe £54k surplus reported in Ihe previous year. Nel Expen¢Jilure for 202212023 was £4Wk compared to £404k in the previous year. a delta of some £84k. This trend is also shown in the swing from £54k trading surplu5 to £31k loss. The result is the Carried FoardS Surplus at 31st Ociober 2023 is £209k compared to Ihe carry lorward lasl year ol £250k. This now represents less Ihan hair of the nei eXditUre •) a year. and is noled by the Trustees. As Chairman of the Trustees I wish lo thank c¢ur Deputy Nn8n8gers for Stepping up in the latter months of this Iradifig year, and lor the dedication Of our key Truslees in Ihe lime of need as our Manager Tim Bulcher became absent from work on lull sick pay. Team turmoil is a hard thing to plan for, and Ihe resilience of the charily butlt up over twelve years was a strong positK)rTr in whi(* lo offer help and counsel tg Tim and Ouf stsff team whilst we sel OLrt to deliver those 13.563 ovemights for all our guesls we received at Barrow House this year. Trustee Appointrnents The charity continues to have five Trustees. No foifflal appoilllm2nls were made ijuring this peiiod. Thankfvlly gui longstsnding Trustees were available to supporl Ihe charity with much time. advrE and discusston on how to deal with Tim Butcherf5 expected longlerm absence, the assocrated HR responsibilities, considering the impact and changes for all staff meinbefs and continued locus on the piocesses and resilien¢e"of the charity as an ongoing busines5 Wrth. responsibilitie5 to tsur.slaff as well as each guest who arrives onsite." Page 5
Derwtrntwater Independent Hostel Report of the Trustees, contd. for the year ended 31 October 2023 Cash Reserves Cash reserves carried fOard Into 202112022 were £197k and a trading piofit of some £53k created a Fund5 Carried fOard lotal 01 £250k for the stan ol Ihis Irading year 202212023. A trading loss of £31k brings these Cash Reserves down to £219k. This rewesents 48% of Annual Income. Investment Policy The Memorandum and Articles of Association of the Charily perrnit wide powers Of investment. The Trustees should invest the money ol the charity not immediaiely required for it5 purposès. in tsr upon such inveslments. securilies or prDperties as may be thought rrt. Risk Assessment The Trustees regularly re*iew the risks to which Ihe tharity is exposèd and consider the ImplicatnS of those risks. Therè Is no risk currenlly lacing the charily which ihe Trustees consider swJnifiGant Statement of Directors Responsibilities The Directors are required under the Companies Acl 20 and the Chanlies Act 1993 to prepare financial statements lor each financial year which give a true and fair Mew of the state of affairs of the cornpany and of its net surplus or deficit lor that period. In prepariThJ Ihose financial ststemenis. the directors are required lo.. al selecl suitable accounting policies and then apply them consistenuy.. bl make judgÈrnents and estimatès thai are reasonable and prudent.. cl stale whether applicable accounting stan(Jards and 5talements ol recommended practrce have been followed subject to any departures disdosed and explained in the financial slatements., dl prepare the financial slalements on Ihe going conwn. basis unless it is inappropnate to presume the cornpany will continue in operation. The Oirectors are responsible for keeping proper accounling rec4Jrd5 which disclL)5e with reasonable accuracy Ihe financial rK)siIK)n of Ihè Trusi and to enable them to ensure Ihal the financial statements comply wilh applicable law, acwunting standards and the Charrties SORP. They are also responsible for safeguarding Ihe 3ssets of the chaiity and hence lor laking reasonable steps for the prevention and t1election ol fraud and other irregularities. This report is prepared in accordance wilh the speryal provisM)ns of Part 15 of tile Companies Acl 2006 an¢J the Financial Reporting Standard lor Smaller Entities leffeaive April 20081 lating to small cornpanies ON BEHALF OF THE TRUSTEES John Snyder Difector?nd Trustee Oaie". aq.01 oo£¥ Page 6
Denventwater Independent Hostel Independent Examiners Report forthe yearended 31 October.2023 I report on the accounts for the Twsl for the year ended 31 October 2023 which are set out on pages 7- 14. Respective responsibilities of trustees and examiner The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year, under SeCt)n 144(21 of the Charities Act 2011 Ilhe 2011 Act), and that an independent exarniners report is needed. 11 is my SnsIbilItY lo.. examine the accounts under section 145 of the 2011 Act" lo follow the procedures laid down in the General Direcbons gtven by the Charty Commission under section 145151{bl of the 2011 Act." and lo slate whether particular matters have come to my altention. Basis of independent exarniners report My examination was carried out in accordance wilh the General Direcbons given by the Charity .Commissioners. An examination includes a review of accounting record5 kept by the charity and a cofflparison of the accounts psented with these records. 11 also includes consideration of any unusual items or disclosures in the accounts. and seeking explanations from you as trustees . concerning any such matters The proceedures undertaken do not provide all the evidence that would be required in an audit and. consequentty. I do not express an audit opinion on the view given by the accounts. Independent examiners. statement In conneclion with my examination, no matter has come lo my attention.. (11 which gives me reasonable cause lo believe that. in any mater1 respect, the requirements lo.. keep accounting records in accordance with s130 01 the 2011 Act,. and lo prepare accounts which accord with Ihe accounting records and to compty wilh the accounting requiiements of the 2011 Act have nol been mel", or 121 lo which. in my opinion, attention should be drawn in order lo enable a proper understanding of the accounts lo be reached Frances Clark ACA Keswick Accounlanls Appleside 4 Leonard Street Keswick Cumbria CA12 4EJ Page 7
Oerwentwater Independent Hostel Statement of Financial Activities for the year ended. 31 October 2023 31 Octobei 2023 Notes Reslricted Unrestricted Designated Funds 31 October 2022 Total Total INCOME Voluntary income Donations and grfts Grants receivable Investment income 4,251 16 1.265 1.265 , Incomè from charitablé activities Hoslel income 458,499 458.499 453.500 Total income 459,'768 459.768 457,772 Expenditure Charitable activities 490,350 490,350 404,465 Total expenditure 490.350 490,350 404,465 Net income I lexpenditurel (30.582) (30,582) 53,307 Total funds brought forward 250,026 250,026 196,719 Transfers between funds Total funds carried forward 13 219.444 219,444 250,026 There were no gains or losses in Ihe year to 31 October 2023 .other than those included atK)ve. The rtoles form part of these financial ststements Page 8
Derwentwater Independent Hostel COMAPARATIVE Statement of Financial Activities for the year ended 31 October 2022 J1 October 2022. Notes Restricted Unreslricled Designated Funds Total INCOME Voluntary income Donations and gifts Grants receivable Investment income 4.251 16 4.251 16 Income from charitable activities Hostel income 453.500 453.500 Total income 457.7n 457.772 Expenditure Charitsble activ•¢ies 404.465 404,465 Totsl expenditure 404.465 404,465 Net income I lexpenditurel 53.307 53,307 Net movement in funds 53.307 53.307 Total funds brought forward 196.71> 196.719 Transfers beMeen funds Total funds carried forward 250,026 250,026. Page 9
OepNentwater Independent Hostel, Balance Sheet asat 31 October 2023. .Notes 31 October 2023 31 October 2022 Fixed Assets Tangible fixed assets 25,133 33.511 25.133 33,511 Currenl A55et5 Debtors Cash al bank and in hand 10 15,982 290.052 11,749 354,326 3C6.034 366,075 Creditors: amounts falling due within one year Creditors and accruals 81.862 109,564 Net Current Assets 224.172 256.511 Total Assets less Current Liabilities 249.305 290.022 . Creditors: amounts falling due in more than one year 29.861 39,996 NET ASSETS 12 219.444 250,026 Funds Resliicted funds Unreslricled funds Designated funds 13 219.444 250,026 14 219.444 250,028 For the year ending 31 October 2021 the company was enb'lled to exempb.on from audit under section 477 of the Companies Act 2006 relaling lo small companies. The members have not required the company to obtain an alIt in accordance with section 476 of the Companie5 Act 2006. These accounts have been prepared in accordance with the provisions applicable to companies Page10
DeThventwater Independent Hostel Balance Sheet asat 31 October 2023 The director5 acknowledge theic responsibilities for.. ensuring that the company keeps accounling rerdS which comply Section 386 of the Companies Act 2006,.arbd b} preparing financial slalements which gwe a true and fair view of the slate of affairs of the company as al the end of each financial year and of its surplus or deficit for each financial year In accordance with the requirements of Sects"ons 394 and 395 and which otherwise comply wlh the requirements of the Companies Act 20 relating to financial statements, so far as apicab lo the company. These financial statements have been prepared in accordance wth the special provisitsns of Part 15 of the Companies Act 2006 relating lo small companies. Appioyed by Ihe"Iruslees and signed on their behalf John Snyder Director and Tfuslee Dale. g OF.102Y The notes fom part of these finana81 sLeMentS Page11
Derwentwater Independent Hostel Notes to the Financial Statements for the year ended 31 October 2023 1 Accounting Policies General These accounls have been ppared under the historical c05t Gonvention 3nd in accordance with applicable accounting standards. Including thè accyuals conGepi. and th¢ Charities SORP Istalemenl ol Recommended Practi1. They include Ihe resulls of Ihe charitate corTrpanVs operations which are described in the Directors Report. Cash Flow Statemet)t The charity has taken advantage of the exemptioi in Financial Reporting Standard No. 1 from the requirement to produce a cash flow statement on Ihè grounds thal IL is a small charty. Tanyible Fixed Assets and Depreciation Assets usetj for chari18bk purposes. with an expeded uselul life exceeding one year, a eapilalised on Ihe balance sheet. Depreciation is wovided at the following annual rates in order lo V4rile off each asset over Its expected uselul lile. Computers Fixtus, Filtin9s and Equipment 33.34% on reducing balance 25% on reducin9 balanGe Income In¢ome consists ofgranls recetved and inc(Jme fmm promolions. accounled for on a receN8bl¢ b3sis Where income 15 receNeiJ fgr a specrfK purpose. as defined by the donor, this income is classed a5 reslnctéd. Income T21Ved towards the general o"ects of the charity is classed as unrestncted. Expendlture Expenditure is accounte¢ for on an accrua15 basis. Where it relates to a specific project il is allocated lo that project as reslricled expendilure Expenditure that lateS to the objects of Ihe, charity is cla55ified as charitable aclNilies Any le9al of professional costs are classifd as governance costs. The costs ol generaiing funds are separatety indenttfied. Funds General funds are those where no restrictions have been place¢J upon the specific spending of the funos by the donor Designated lunds a those lunds Whe the directors have chosen to earmark general funds for a specfic purpose. Restricled funijs a those funds where the don81it>n is receive(1 lof a Specif purpose as set out by the OnOr. Corporation Tax As a 'not for pfofiy company with chantable status the Company is exempt from the payment of corpo¥ation tax. 2 Payment to Accountants The payment to the accountsnts inckKled in ihe expenditure is S1t as fd1(W.. 2023 2022 8ook keeping antj payroll services Payrnent for preparation of accounts Payment for Independent Examinal 3c43 550 250 1,100 240 450 200 890 Page 12
DenventW3ter Independent Hostel Notes to the Finan¢ig1 Slaternents lor the year ended 31 October 2023 31 October 2023 Restricted UnreStrted Designated Total 31 October 2022 2 Donations and gifts. Sundry donations 3 Grants receivable Allerdale Business Support Gr Job Retention Scheme Grant 4,000 251 4,251 4 Investment income Bank Interest received 1.265 1.265 1.265 1.265 16 16 5 .Hostel income Overnight income Cancellation charge Catering incorne Alcohol sales Shop sales Activities Hytjro income 282,403 10.499 143.668 14.881 5.778 400 670 458.499 282.403 1Q,499 143,868 14,881 5.7_78 400 670 458.499 266.591 14,826 145,311 18,490 6,230 392 1,660 453,500 Page 13
DeenlWatel Independent Hostel Notes to the Financial Statements foi the year ended 31 October 2023 31 October 2023 Restricted Unrestri¢leo Designated Total" 31 October 2022 6 Charitable activities Purchases Staff costs Adminislralion Marketing and Advertising Premises and other costs Inleiesl and charges Oeprecialion Legal and professional 75,399 180,509 20,238 611 194.290 4,102- 8,378 6.823 490,350 75.399 180.509 20.238 611 194.290 4,102 8.378 6.823 490.350 70,880 158.628 10,375 1.139 145.556 5,485 11,170 1,232 404,465 Note 7 7 Employee Remuneralion 31 October 2023 31 Oclober 2022 Slaff costs Wages Employers NIC Staff accomodalion deduction Staff food dedLJCtion Employer pension Recruilmellt 183.938 8.624 110.4151 {5,2321 3,447 147 180.509 164,473 7,269 111,954) 15,2321 3,116 956 158,628 The average number of staff employed by the trust during the year was as follows,. 31 October 2023 31 October 2022 No. Managers Hostel staff 8 Trustee Remuneration and Expenses, With the absence of our Hostel manager. Laura Cadmari was tasked by the Trustees to assist staff with practical onsite issues at the hostel on a temporary assignment and was paid of total of £4,900 for her interim work to assist the operations. Page 14
Derwentwater Independent Hostel Notes to the Financial Statements for the year ended 31 October 2023 Tangible Fixed Assets Plant and machinery Fixtures & Fittings Total COST Al 1 Novernber 2022 Additions At 31 October 2023 67.583 7.597 75,180 67.583 7,597 75,180 DEPRECIATION At 1 November 2022 Charge foi year Al 31 October 2023 35.538 8.011 43.549 6.131 367 6.498 41,669 8,378 5D,047 NET BOOK VALUE At 31 October 2023 24,034 1.099 25,133 At 31 October 2022 32.045 1,466 33,511 10 Debtors 31 October 2023 31 October 2022 Trade debtors Prepayments VAT Repayable .15,982 11,749 15.982 11,749 11 Creditors.. amounts falling due within one year , 31 October 2023 31 October 2022 Trade creditors Advance payments Olher laxalion & social security Accruals Pension credilor Corporabon lax 31.453. 36.037 10.530 3.950 42.498 43,574 21,838 990 772 108) 109,564 108 81.862 12 CREDITORS > l YEAR 31 (ic10[ 2Q23 31 October 2022 Bounce Back Loan 29.861 29.861 39,996 39,996 Page 15
Der¥ienlwater. Independent Hostel Noles to the Financial Ststements for the year ended 31 October 2023 13 Funds At Incomin9 Outgoing Al 1 November 2022 Resources Resouices Transfers 31 October 2023 Projects & Restricted fur Designated Funds Refurbishment Reserve 14 Net Assets by fund Reslricted Unrestricted Designated Totsl Tangible fixeij assets Inve51menls Current assels Creditors.. amounts falling within one year 25.133 25.133 306,034 {81.862) 306.034 181.8621 Totsl ftet assets 219.444 219,444 15 Members liability The liability of the members is limited. Ew member of the charity undertakes lo contribute to the assets of the charity in the event of the organisation being wound up while he or she is a. member, or within one year after he or she ceases io be a member, for payment of the debt5 and liabilitie5 of the eharily contracted before he or she ceases lo be a member, and of the costs. charges and expenses of winding up. and for Ihe adjustment of the rights of the Contribulors among themselves, such amount a5 may be required, bui not exceeding £1. Page 16