COMPANY REGISTRATION NUMBER: 07817860 CHARITY REGISTRATION NUMBER: 1145368
DERWENTWATER INDEPENDENT HOSTEL
COMPANY LIMITED BY GUARANTEE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024
David Allen
Chartered Accountants Dalmar House Barras Lane Estate Dalston Carlisle CA5 7NY
DERWENTWATER INDEPENDENT HOSTEL
COMPANY LIMITED BY GUARANTEE
CONTENTS
| Reference and administrative details | 1 |
|---|---|
| Trustees' report | 2 to 7 |
| Independent examiner's report | 8 |
| Statement of financial activities | 9 to 10 |
| Balance sheet | 11 to 12 |
| Notes to the financial statements | 13 to 24 |
DERWENTWATER INDEPENDENT HOSTEL
COMPANY LIMITED BY GUARANTEE
REFERENCE AND ADMINISTRATIVE DETAILS
Trustees Mr A J Towler (resigned 17 July 2024) Mr J H Snyder Mrs L A Cadman (resigned 17 July 2024) Ms S E Snyder Mr G Gibson (resigned 11 March 2025) Charity Registration Number 1145368 Company Registration Number 07817860 The charity is incorporated in England and Wales. Registered Office Barrow House Borrowdale Keswick CA12 5UR Independent examiner Alison Welton FCA David Allen Chartered Accountants Dalmar House Barras Lane Estate Dalston Carlisle CA5 7NY Bankers Barclays Bank plc Cambridge 9/11 St Andrews Street Cambridge CB2 3AX
Bankers
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DERWENTWATER INDEPENDENT HOSTEL
COMPANY LIMITED BY GUARANTEE
TRUSTEES' REPORT
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 October 2024.
OBJECTIVES AND ACTIVITIES
The Charity's articles declare the charity's objects as: a) the advancement of education,
b) the advancement in life of children and young people by developing their skills, capacities and capabilities to enable them to participate in society as independent, mature and responsible adults; and
c) the provision of recreational and leisure time activity in the interests of social welfare for people who have need by reason of their youth, age, infirmity or disability, poverty or social and economic circumstances, by the provision of educational courses and physical and other activities; and associated residential activities; and
d) to help all, especially young people of limited means, to a greater knowledge, love and care of the countryside by providing a youth hostel or other accommodation for them and thus to promote their health, recreation and education.
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
ACHIEVEMENTS AND PERFORMANCE
In this thirteenth full year of operating Derwentwater Independent Hostel (DIH) the Charity finds itself in the difficult position of reporting the closure of the hostel after eleven years of trading a surplus for the charity. The charity supported schools whose pupils could not afford the costs of hostel residentials, whilst giving access to a special part of Borrowdale Valley for so many young people.
The summer months continued to show high-season demand for the charity's three pod cabins on the eastern edge of our driveway - each contributed to heightened use of the grounds for both family and individual stays in the summer holidays.
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DERWENTWATER INDEPENDENT HOSTEL
COMPANY LIMITED BY GUARANTEE
TRUSTEES' REPORT (CONTINUED)
The Charity survived the Covid 19 pandemic, but sadly lost the hostel in a downwards trajectory from Summer 2023. June 2023 saw the temporary departure of our Hostel Manager Tim Butcher on long-term sickness, with a natural impact on the charity’s operational capability.
The evening dining service (and revenue) was immediately closed down, as Deputy Manager Alison Jones stepped up in the vacuum to help manage the staff team and finances in Tim’s absence. Trustees met regularly on a weekly, then fortnightly, and then on a monthly basis, developing a clear strategy for achieving transparency on financial, staff rotas, and standard operating procedures.
The Charity thanks Laura Cadman, one of our trustees, for spending upto two days a week working both on-site and off-site with operational staff. Many documents had to be recovered from Tim’s digital systems and purposefully organized on cloud systems for other staff to access. A financial admin service was provided by Footprints Education Limited for several months to support trading activity to the end of the year.
Deputy Manager Alison resigned in September, and her replacement Aujke Noorman handed her notice in at the end of November. The hostel’s summer seasonal staff agreed to stay on to manage out the guest bookings during the shoulder season to mid-November. It is this small trading window in November 2023, and some early 2024 bookings that give the revenue for the full trading year at only £57,134, as compared to £458,499 in 2023!
The trustees thank Erin Shaw who joined us as a volunteer in 2022/2023, before taking a paid Hostel Assistant role beyond the summer. In 2021/2022 the Charity reported 275 Volunteer Hours, whereas in 2022/2023 the Charity had over 800 Volunteer Hours. Regrettably, the hostel never delivered a 2024 season, so no substantial Volunteer Hours are reported for the 2023/2024 reporting year, other than the committed input of the trustees.
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DERWENTWATER INDEPENDENT HOSTEL
COMPANY LIMITED BY GUARANTEE
TRUSTEES' REPORT (CONTINUED)
The switch of Councils from Allerdale to a newly formed Cumberland Council prompted a fresh enquiry from HMO advisors on the five staff bedrooms on the top floor of the hostel.
Four fire safety officers came to site to review the sensors and systems in place and submitted a list of recommended modifications, amounting to £80,000. Given a lack of surplus funds, and a reduced staff team, trustees took the decision to close the hostel rather than make these modifications.
Trustees were also facing the herculean task of rebuilding the team after a series of resignations during Tim’s absence from work. Tim slowly retuned to work after a long-term sickness leave and the trustees are thankful that James Cobban joined him in November 2023, to help kick-start operations for the 2024 season.
However, the trustees decided to close the hostel to guests in March 2024, with the operational exit from the rented premises on 6th May 2024. The trustees would like to thank Tim for a job well done in documenting the details of the handover to all trustees, and ensuring the bank business loan was fully repaid, and all debts were paid down, whilst still leaving some £53,769 in assets after final redundancies and salary were paid by end of July 2024.
All guests who had booked for 2024 were reimbursed of their forward payments for accommodation booked after the hostel’s March closure to guests.
The trustees are exploring a handover of remaining charitable funds to the Cumbria Community Foundation (CCF), in a way that continues the charitable activities of Derwentwater Independent Hostel. First the Charity must provide for costs of accountants and related processes to enable the closure of the charity at the end of its thirteenth trading year.
FINANCIAL REVIEW
The Statement of Financial Activities on page 9 shows a net deficit of £165,675 (2023: net deficit of £30,582).
In 2023/2024 the limited revenues of the winter season, and efforts to start winding the hostel down fully by 6th May 2024 resulted in total income for the year amounted to £59,032 (2023: £459,768). The main income stream for the charity being catering income, followed by overnight income. The total expenditure for the year amounted to £224,707 (2023: £490,350) amongst other costs and depreciation.
Total funds carried forward at 31 December 2024 amounted to £53,769 (2023: £219,444) with hostel operations already closed down, premises vacated, and all staff and HMRC debts met. The results for the year and the charity's financial position at the end of the year are shown in the attached financial statements.
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DERWENTWATER INDEPENDENT HOSTEL
COMPANY LIMITED BY GUARANTEE
TRUSTEES' REPORT (CONTINUED)
The trustees have reviewed the Charity's needs for reserves in line with the guidance issued by the charity commission.
The trustees aim to maintain reserves at a level which maintains the capital and income reserves of the trust and to provide sufficient funds to finding needs of Derwentwater Independent Hostel.
The Memorandum and Articles of Association of the Charity permit wide powers of investment. The Trustees should invest the money of the charity not immediately required for its purposes, in or upon such investments, securities or properties as may be thought fit.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Derwentwater Independent Hostel is a company limited by guarantee and registered charity. The company was established under a memorandum of association, which established the objects and powers of the charitable company, and is governed under its articles of association.
The charity continued to have five trustees during this reporting year.
The charity may appoint any person as a trustee by ordinary resolution.
No formal appointments were made during this period. Thankfully our longstanding trustees were available to support the charity with much time, advice and discussion on how to deal with Tim Butcher’s expected long-term absence, the associated HR responsibilities, considering the impact and changes for all staff members and continued focus on the processes and resilience of the charity as an ongoing business with responsibilities to our staff as well as each guest who arrives onsite.
The trustees give their time freely and no trustee remuneration was paid in the year.
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DERWENTWATER INDEPENDENT HOSTEL
COMPANY LIMITED BY GUARANTEE
TRUSTEES' REPORT (CONTINUED)
FINANCIAL INSTRUMENTS
The charity's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the charity’s policies approved by the board of trustees, which provide written principles on the use of financial derivatives to manage these risks. The charity does not use derivative financial instruments for speculative purposes.
The charity’s activities expose it primarily to the financial risks of changes in interest rates. Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.
The charity’s principal financial assets are investments and bank balances and cash.
The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. The charity has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The trustees (who are also the directors of Derwentwater Independent Hostel for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they 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 its income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards, comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
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DERWENTWATER INDEPENDENT HOSTEL
COMPANY LIMITED BY GUARANTEE
TRUSTEES' REPORT (CONTINUED)
The trustees are responsible for keeping proper accounting records that can disclose with reasonable accuracy at any time the financial position of the charitable company and 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.
The annual report was approved by the trustees of the charity on 30 July 2025 and signed on its behalf by:
......................................... Mr J H Snyder Trustee
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DERWENTWATER INDEPENDENT HOSTEL
COMPANY LIMITED BY GUARANTEE
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF DERWENTWATER INDEPENDENT HOSTEL ("THE COMPANY")
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 October 2024.
Responsibilities and basis of report
As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner’s statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
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accounting records were not kept in respect of Derwentwater Independent Hostel as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
...................................... Alison Welton FCA Independent Examiner
Dalmar House Barras Lane Estate Dalston Carlisle CA5 7NY
30 July 2025
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DERWENTWATER INDEPENDENT HOSTEL
COMPANY LIMITED BY GUARANTEE
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 OCTOBER 2024 (INCLUDING INCOME AND EXPENDITURE ACCOUNT AND STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES)
| Unrestricted | Total | Total | |||||
|---|---|---|---|---|---|---|---|
| funds | 2024 | 2023 | |||||
| Note | £ | £ | £ | ||||
| Income and Endowments from: | |||||||
| Donations and legacies | 3 | - | - | 4 | |||
| Charitable activities | 4 | 57,134 | 57,134 | 458,499 | |||
| Investment income | 5 | 1,898 | 1,898 | 1,265 | |||
| Total income | 59,032 | 59,032 | 459,768 | ||||
| Expenditure on: | |||||||
| Charitable activities | 6 | (224,707) | (224,707) | (490,350) | |||
| Total expenditure | (224,707) | (224,707) | (490,350) | ||||
| Net expenditure | (165,675) | (165,675) | (30,582) | ||||
| Net movement in funds | (165,675) | (165,675) | (30,582) | ||||
| Reconciliation of funds | |||||||
| Total funds brought forward | 219,444 | 219,444 | 250,026 | ||||
| Total funds carried forward | 16 | 53,769 | 53,769 | 219,444 |
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DERWENTWATER INDEPENDENT HOSTEL
COMPANY LIMITED BY GUARANTEE
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 OCTOBER 2024 (CONTINUED) (INCLUDING INCOME AND EXPENDITURE ACCOUNT AND STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES)
| Unrestricted | Total | ||||
|---|---|---|---|---|---|
| funds | 2023 | ||||
| Note | £ | £ | |||
| Income and Endowments from: | |||||
| Donations and legacies | 3 | 4 | 4 | ||
| Charitable activities | 4 | 458,499 | 458,499 | ||
| Investment income | 5 | 1,265 | 1,265 | ||
| Total income | 459,768 | 459,768 | |||
| Expenditure on: | |||||
| Charitable activities | 6 | (490,350) | (490,350) | ||
| Total expenditure | (490,350) | (490,350) | |||
| Net expenditure | (30,582) | (30,582) | |||
| Net movement in funds | (30,582) | (30,582) | |||
| Reconciliation of funds | |||||
| Total funds brought forward | 250,026 | 250,026 | |||
| Total funds carried forward | 16 | 219,444 | 219,444 |
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2024 and 2023 is shown in note 16.
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DERWENTWATER INDEPENDENT HOSTEL
COMPANY LIMITED BY GUARANTEE
BALANCE SHEET AS AT 31 OCTOBER 2024
| 2024 | 2024 | 2023 | 2023 | ||
|---|---|---|---|---|---|
| Note | £ | £ | |||
| Fixed assets | |||||
| Tangible assets | 12 | - | 25,133 | ||
| Current assets | |||||
| Debtors | 13 | 8,037 | 15,982 | ||
| Cash at bank and in hand | 50,336 | 290,052 | |||
| 58,373 | 306,034 | ||||
| Creditors: Amounts | |||||
| falling due within one | |||||
| year | 14 | (4,604) | (81,862) | ||
| Net current assets | 53,769 | 224,172 | |||
| Total assets less | |||||
| current liabilities | 53,769 | 249,305 | |||
| Creditors: Amounts | |||||
| falling due after more | |||||
| than one year | 15 | - | (29,861) | ||
| Net assets | 53,769 | 219,444 | |||
| Funds of the charity: | |||||
| Unrestricted income | |||||
| funds | |||||
| Unrestricted funds | 53,769 | 219,444 | |||
| Total funds | 16 | 53,769 | 219,444 |
For the financial year ending 31 October 2024 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
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DERWENTWATER INDEPENDENT HOSTEL
COMPANY LIMITED BY GUARANTEE
BALANCE SHEET AS AT 31 OCTOBER 2024 (CONTINUED)
The financial statements on pages 9 to 24 were approved by the trustees, and authorised for issue on 30 July 2025 and signed on their behalf by:
......................................... Mr J H Snyder Trustee
Registration number: 07817860
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DERWENTWATER INDEPENDENT HOSTEL
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024
1 CHARITY STATUS
The charity is limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £10 towards the assets of the charity in the event of liquidation.
The address of its registered office is: Barrow House Borrowdale Keswick CA12 5UR
These financial statements were authorised for issue by the trustees on 30 July 2025.
2 ACCOUNTING POLICIES
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
The financial statements have been prepared in accordance with 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) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.
Basis of preparation
Derwentwater Independent Hostel meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
These financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.
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DERWENTWATER INDEPENDENT HOSTEL
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024 (CONTINUED)
2 ACCOUNTING POLICIES (continued)
Going concern
The financial statements have not been prepared on a going concern basis. The trustees have fomally resolved to wind up the charity, and as such, the charity is no longer expected to continue its operations for the forseeable future.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.
Income and endowments
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.
Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.
Deferred income represents amounts received for future periods and is released to incoming resources in the period for which, it has been received. Such income is only deferred when:
- The donor specifies that the grant or donation must only be used in future accounting periods; or - The donor has imposed conditions which must be met before the charity has unconditional entitlement.
Income from charitable activities income arising from delivery of activities and services for its beneficiaries.
Investment income is accounted for in the period in which the charity is entitled to receipt.
Interest receivable is included when receivable and the amount can be measured reliably by the charity.
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DERWENTWATER INDEPENDENT HOSTEL
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024 (CONTINUED)
2 ACCOUNTING POLICIES (continued)
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Direct costs attributable to a single activity are allocated directly to that activity.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Support costs
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources.
Governance costs
There include the costs attributable to the charity's compliance with constitutional and statutory requirements.
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Tangible fixed assets
Individual fixed assets are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation and amortisation
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
Asset class Depreciation method and rate Plant and machinery 33% Reducing Balance Fixtures and fittings 25% Reducing Balance
Impairment of fixed assets
Tangible fixed assets are reviewed for impairment when changes in circumstances or events indicate that the carrying value of the fixed assets may not be recoverable. An impairment loss is recognised where the recoverable amount is less than the carrying value.
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DERWENTWATER INDEPENDENT HOSTEL
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024 (CONTINUED)
2 ACCOUNTING POLICIES (continued)
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Employee benefits
Termination benefits are recognised as an expense in the statement of financial activity immediately. Termination benefits are recognised as a liability and expense only when the charity is demonstrably committed either to terminate the employment of an employee or group of employees before the normal retirement date or to provide termination benefits as a result of an offer made in order to encourage voluntary redundancy.
Termination benefits are measured at the best estimate of the expenditure that would be required to settle the obligation at the reporting date. In the case of an offer made to encourage voluntary redundancy, measurement is based on the number of employees expected to accept the offer. When termination benefits are due more than 12 months after the end of the reporting period, they shall be measured at their discounted present value.
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DERWENTWATER INDEPENDENT HOSTEL
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024 (CONTINUED)
2 ACCOUNTING POLICIES (continued)
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity.
Financial instruments
Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.
Financial liabilities are classified according to the substance of the contractual arrangements entered into.
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial assets expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
3 INCOME FROM DONATIONS AND LEGACIES
| 3 INCOME FROM DONATIONS AND LEGACIES | ||
|---|---|---|
| Total | Total | |
| 2024 | 2023 | |
| £ | £ | |
| Donations and legacies; | ||
| Sundry donations | - | 4 |
| - | 4 |
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DERWENTWATER INDEPENDENT HOSTEL
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024 (CONTINUED)
4 INCOME FROM CHARITABLE ACTIVITIES
| Unrestricted | ||||||
|---|---|---|---|---|---|---|
| funds | Total | Total | ||||
| General | 2024 | 2023 | ||||
| £ | £ | £ | ||||
| Overnight income | 25,683 | 25,683 | 282,403 | |||
| Cancellation charge | 2,080 | 2,080 | 10,499 | |||
| Catering income | 26,942 | 26,942 | 143,868 | |||
| Alcohol sales | 1,554 | 1,554 | 14,881 | |||
| Shop sales | 516 | 516 | 5,778 | |||
| Activities | - | - | 400 | |||
| Hydro income | 359 | 359 | 670 | |||
| 57,134 | 57,134 | 458,499 | ||||
| 5 INVESTMENT INCOME | ||||||
| Unrestricted | ||||||
| funds | Total | Total | ||||
| General | 2024 | 2023 | ||||
| £ | £ | £ | ||||
| Interest receivable and similar income; | ||||||
| Bank interest receivable | 1,898 | 1,898 | 1,265 |
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DERWENTWATER INDEPENDENT HOSTEL
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024 (CONTINUED)
6 EXPENDITURE ON CHARITABLE ACTIVITIES
| Unrestricted | ||||||
|---|---|---|---|---|---|---|
| funds | Total | Total | ||||
| General | 2024 | 2023 | ||||
| £ | £ | £ | ||||
| Purchases | 9,296 | 9,296 | 75,399 | |||
| Staff costs | 61,174 | 61,174 | 180,362 | |||
| Administration | 13,152 | 13,152 | 20,238 | |||
| Marketing and advertising | 548 | 548 | 758 | |||
| Premises and other costs | 107,595 | 107,595 | 194,290 | |||
| Interest and charges | 813 | 813 | 4,102 | |||
| Depreciation and impairment | 25,132 | 25,132 | 8,378 | |||
| Legal and professional | 6,997 | 6,997 | 6,823 | |||
| 224,707 | 224,707 | 490,350 |
Included within the above are support costs of £150,326 (2023: £232,951) and governance costs of £3,910 (2023:£1,100)
7 NET INCOMING/OUTGOING RESOURCES
Net outgoing resources for the year include:
| Net outgoing resources for the year include: | |||
|---|---|---|---|
| 2024 | 2023 | ||
| £ | £ | ||
| Other non-audit services | 3,910 | 1,100 | |
| Impairment loss on disposal of fixed assets held for the charity's | |||
| own use | 16,927 | - | |
| Depreciation of fixed assets | 8,206 | 8,378 |
8 TRUSTEES REMUNERATION AND EXPENSES
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
No trustees have received any reimbursed expenses or any other benefits from the charity during the year.
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DERWENTWATER INDEPENDENT HOSTEL
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024 (CONTINUED)
9 STAFF COSTS
The aggregate payroll costs were as follows:
| The aggregate payroll costs were as follows: | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| £ | £ | |||
| Staff costs during the year were: | ||||
| Wages and salaries | 49,785 | 168,291 | ||
| Social security costs | 3,253 | 8,624 | ||
| Pension costs | 1,048 | 3,447 | ||
| Compensation payments | 7,088 | - | ||
| 61,174 | 180,362 |
The monthly average number of persons (including senior management / leadership team) employed by the charity during the year was as follows:
| by the charity during the year was as follows: | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| No | No | |||
| Managers | 1 | 1 | ||
| Hostel staff | 1 | 7 | ||
| 2 | 8 | |||
During the year, the charity made redundancy payments which totalled £7,088 (2023 - Nil). The redundancy costs were funded from the charity's unrestricted general funds.
No employee received emoluments of more than £60,000 during the year.
10INDEPENDENT EXAMINER'S REMUNERATION
| 10INDEPENDENT EXAMINER'S REMUNERATION | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| £ | £ | |||
| Examination of the financial statements | 900 | - | ||
| All other services | 3,010 | 1,100 | ||
| 3,910 | 1,100 |
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DERWENTWATER INDEPENDENT HOSTEL
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024 (CONTINUED)
11TAXATION
The charity is a registered charity and is therefore exempt from taxation.
12TANGIBLE FIXED ASSETS
| 12TANGIBLE FIXED ASSETS | |||||
|---|---|---|---|---|---|
| Fixtures and | Plant and | ||||
| fittings | machinery | Total | |||
| £ | £ | £ | |||
| Cost | |||||
| At 1 November 2023 | 7,597 | 67,583 | 75,180 | ||
| Impairment | (7,597) | (67,583) | (75,180) | ||
| At 31 October 2024 | - | - | - | ||
| Depreciation | |||||
| At 1 November 2023 | 6,498 | 43,549 | 50,047 | ||
| Charge for the year | 275 | 7,931 | 8,206 | ||
| Impairment | (6,773) | (51,480) | (58,253) | ||
| At 31 October 2024 | - | - | - | ||
| Net book value | |||||
| At 31 October 2024 | - | - | - | ||
| At 31 October 2023 | 1,099 | 24,034 | 25,133 | ||
| Impairment costs |
Fixed assets with a carrying value of £16,927 (2023: £Nil) were impaired on the basis that they will hold no residual value following the cessation of the charity after year-end.
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DERWENTWATER INDEPENDENT HOSTEL
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024 (CONTINUED)
13DEBTORS
| 13DEBTORS | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| £ | £ | |||
| Trade debtors | 27 | - | ||
| Prepayments | - | 15,982 | ||
| Other debtors | 8,010 | - | ||
| 8,037 | 15,982 |
14CREDITORS: amounts falling due within one year
| 14CREDITORS: amounts falling due within one year | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| £ | £ | |||
| Trade creditors | 904 | 31,453 | ||
| Other taxation and social security | - | 10,422 | ||
| Accruals | 3,700 | 3,950 | ||
| Deferred income | - | 36,037 | ||
| 4,604 | 81,862 | |||
| 2024 | 2023 | |||
| £ | £ | |||
| Deferred income at 1 November 2023 | 36,037 | 43,574 | ||
| Resources deferred in the period | - | 36,037 | ||
| Amounts released from previous periods | (36,037) | (43,574) | ||
| Deferred income at year end | - | 36,037 |
During the previous year deferred income represented the balance of payments received in advance.
15CREDITORS: amounts falling due after one year
| 2024 | 2023 | ||
|---|---|---|---|
| £ | £ | ||
| Bank | loans | - | 29,861 |
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DERWENTWATER INDEPENDENT HOSTEL
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024 (CONTINUED)
16FUNDS
| 16FUNDS | ||||||||
|---|---|---|---|---|---|---|---|---|
| Balance at 1 | Balance at | |||||||
| November | 31 October | |||||||
| 2023 | Income | Expenditure | 2024 | |||||
| £ | £ | £ | £ | |||||
| **Unrestricted ** | funds | |||||||
| General | 219,444 | 59,032 | (224,707) | 53,769 | ||||
| Balance at | ||||||||
| 30 | Balance at | |||||||
| November | 31 October | |||||||
| 2022 | Income | Expenditure | 2023 | |||||
| £ | £ | £ | £ | |||||
| **Unrestricted ** | funds | |||||||
| General | 250,026 | 459,768 | (490,350) | 219,444 |
17ANALYSIS OF NET ASSETS BETWEEN FUNDS
| 17ANALYSIS OF NET ASSETS BETWEEN FUNDS | ||||
|---|---|---|---|---|
| Total funds | ||||
| Unrestricted | at 31 | |||
| funds | October | |||
| General | 2024 | |||
| £ | £ | |||
| Current assets | 58,373 | 58,373 | ||
| Current liabilities | (4,604) | (4,604) | ||
| Total net assets | 53,769 | 53,769 |
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DERWENTWATER INDEPENDENT HOSTEL
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024 (CONTINUED)
17ANALYSIS OF NET ASSETS BETWEEN FUNDS (continued)
| 17ANALYSIS OF NET ASSETS BETWEEN FUNDS (continued) | ||||
|---|---|---|---|---|
| Total funds | ||||
| Unrestricted | at 31 | |||
| funds | October | |||
| General | 2023 | |||
| £ | £ | |||
| Tangible fixed assets | 25,133 | 25,133 | ||
| Current assets | 306,034 | 306,034 | ||
| Current liabilities | (81,862) | (81,862) | ||
| Creditors over 1 year | (29,861) | (29,861) | ||
| Total net assets | 219,444 | 219,444 |
18RELATED PARTY TRANSACTIONS
During the year the charity made the following transactions with trustees:
During the year the charity paid £2,340 (2023: £5,880) in consultancy fees to Laura Cadman Limited a company connected to Laura Cadman.
During the year the charity paid £46,207 (2023: £63,377) in rent, £79 (2023: £65) in repair costs , £Nil (2023: £8,643) in insurance, £Nil (2023: £622) in consultancy fees and £Nil (2023: £68) in premises expenses to Footprints Education Limited a company connected to John Snyder and Sarah Snyder.
- 24 -