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2023-03-31-accounts

FUSION HOUSING KIRKLEES LIMITED (a company limited by guarantee)

FINANCIAL STATEMENTS

31 MARCH 2023

CONTENTS Page
Charity Reference and Administrative Details 1
Trustees’ Annual Report 2-7
Auditors’ report 8-11
Statement of financial activity 12-13
Balance sheet 14
Statement of cash flows 15
Notes to the financial statements 16-27
The following page does not form part of the financial statements
Detailed statement of financial activities 28-29

Company registration number: 08158320 Registered charity number: 1151483

FUSION HOUSING KIRKLEES LIMITED

CHARITY REFERENCE AND ADMINISTRATIVE DETAILS

FOR THE YEAR ENDED 31 MARCH 2023

Charity name: Fusion Housing Kirklees Limited Fusion Housing Kirklees Limited
Charity number: 1151483
Company number: 08158320
Trustees:
E Cannell
D Hullock (Resigned 5 October 2022)
S Kaye
K Knott (Resigned 24 October 2022)
C Ledwon (Resigned 1 August 2022)
M A Leith (Resigned 23 August 2022)
C Lorenzelli
D P Moriarty (Resigned 7 September 2022)
C A Pattison
S Smith (Resigned 29 November 2022)
N J Tarren
M Vangrove
Principal and registered office: Pearl House, John William Street, Huddersfield, HD1 1BA
Auditors: Wheawill & Sudworth Limited, Chartered Accountants, 35 Westgate,
Huddersfield, HD1 1PA
Principal bankers: National
 Westminster Bank, 8 Market Place, Huddersfield, HD1 2AN

1

FUSION HOUSING KIRKLEES LIMITED

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

The Trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report and the audited financial statement of the charity for the year ended 31 March 2023. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities as updated by Bulletin 1 in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published on 16 July 2014.

The Directors of the charitable company (the charity) are its Trustees for the purposes of charity law and throughout this report are collectively referred to as the Trustees.

As part of the Statement of Recommended Practice (SORP) regulations a Trustees Annual Report is required together with the financial audit and it is therefore logical and efficient to embed its business, finance, strategic plans and reviews into this Report.

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objectives of the Charity are the prevention or relief of poverty for public benefit particularly but not exclusively in West Yorkshire, particularly of people who are homeless, about to become homeless or who are in housing need by providing advice, advocacy, support and training in relation to health, housing, learning and employment.

Significant activities

Fusion Housing Kirklees provides housing support, advice and guidance in housing related matters to the citizens of Kirklees.

Public benefit and eligibility criteria

The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the organisation’s aims and objectives and in planning future activities.

ACHIEVEMENTS AND PERFORMANCE

Charitable activities

In year achievements/performance:

Fusion Housing is a long-established organisation focused on the prevention of homelessness and poverty through the provision of housing support, advice, supported accommodation, employment support and a Food Bank.

The organisation has supported the most vulnerable people in the Kirklees, Calderdale and Wakefield communities by providing valuable services for the betterment of those individuals and families.

Our Mission is to ‘empower people to make informed life choices and to actively take part in shaping a positive future for themselves and their communities’.

Our aim is to ensure that individuals and families have access to suitable, affordable accommodation along with skills needed to successfully manage and keep that accommodation; helping them to overcome the barriers that can prevent them from achieving their potential, and preventing homelessness.

2

FUSION HOUSING KIRKLEES LIMITED

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023 (Continued)

Housing Advice

The advice service provides, for public benefit, a confidential and not for profit advice service for individuals age 16 and over in the Kirklees and Wakefield areas. We provide specialist legal advice on housing and related matters including:

Initial Contact Service/Food and More Service

Our Initial Contact Service acts as the first point of contact to access other Fusion Services and provides initial advice and support on housing and related issues across Kirklees.

The Food and More service runs our Food Bank provision in Dewsbury. The service also assisted with Furniture and Home Starter Packs via the Household Fund.

B.O.S. Housing Support

Our Housing Related Support Service forms part of the Social Impact Bond Funded scheme KBOP, commissioned by Kirklees Council and delivered alongside seven other local organisations. Whilst having the overall aim of addressing homelessness and housing insecurity, we also support participants into work and education, enable access to other services including those addressing mental health and substance misuse, and support people into education, training and employment.

In addition to support to find or maintain accommodation, assistance is also given in improving their financial resilience in the form of budgeting support, income maximisation and support with benefits, or access to our Money Management learning provision. Our Housing Support Service also supported participants to access support or training and directly supported a number of individuals into employment. As part of this contract we also provide a Tenancy Deposit and Landlord Liaison Service which began in May 2021. This service is seeing an increasing number of people needed to access accommodation in the private sector as a result of the lack of social housing.

HOMES

Our HOMEs service provides accommodation for single people and single parent families who are homeless and require additional low level support to enable them to manage independently. Accommodation is available in the Kirklees, Wakefield and Calderdale areas and consists of both self-contained and shared living options. Tenants can stay for up to 2 years whilst they explore longer term options and receive the help they need to address issues they may have which put them at risk of homelessness.

3

FUSION HOUSING KIRKLEES LIMITED

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023 (Continued)

Learning and Employment

We continue to provide adult learning through our KBOP contract and have maintained our status as an accredited learning centre.

Our Works Better Service provides support into work and volunteering, including help with job search, CV’s, childcare support engaging with employers and continued support when in employment.

Fundraising activities

Fusion Housing Kirklees funds are sought through grants and contracts with grant and contract making bodies.

FINANCIAL REVIEW

The results for the year and financial position of the company are shown in the financial statements.

Year End Position

Our annual accounts result to the year ending 31[st] March 2023 reflect the challenges and difficulties Fusion Housing has faced over the past financial year. We managed to weather the COVID pandemic and continued to deliver our vital services despite financial headwinds. Following on with this, as with similar Organisations across England, we started to see a rapid increase in the number of our clients moving on from our temporary accommodation as Social and Private Landlords opened up lettings again; this led to increasing costs and decreasing income as more accommodation than anticipated became vacant and had to be returned to let.

In addition, similar to other Organisations, we were facing significant repairs and maintenance back log as conditions allowed for the safe return of contractors to our properties; long lock-down periods had limited the level of work undertaken on properties resulting, in some cases, in deterioration and normal maintenance schedules being postponed.

As well as this, the ‘Cost of Living Crisis’ resulted in increased costs impacting on both the running of the organisation and our client group. This led to an increased demand for our services as our clients faced more challenges in their day-to-day lives.

Additional changes relating to the administration of income for our supported accommodation service had a further negative impact contributing largely to the year-end negative balance.

Strategic Business Plan

So, what are we doing to reduce the financial impact and strengthen our business in the following financial year from April 2023?

Embedded in our strategy is the passion and expertise of our Staff and Board members to enable us to fulfil our vision, with the aim of benefiting the communities we serve.

4

FUSION HOUSING KIRKLEES LIMITED

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023 (Continued)

Summary

Like many Charitable Organisations nationally, for Fusion Housing the year after overcoming the impact of the COVID-19 pandemic has been challenging. All our services felt the impact of the repeated periods of lockdown and a reliance on remote working. However, our hardworking staff group have continued to provide high-quality support, advice and assistance to everyone who has accessed our services.

Financially it has been an unprecedented year as a result of pressure from external factors such as the impact of COVID, the ‘Cost of Living Crisis’ and other externally driven changes to some of our funding streams.

These factors, arriving together within a relatively short space of time, has resulted in a high level of liabilities at end of the financial year for the first time in our long history.

Reserves Policy

Fusion Housing Kirklees will seek to ensure a minimum level of reserves of at least 5% of annual operating costs and will have flexibility at each accounting year for a reduction or increase of funds.

Going concern

The trustees have considered the impact of the previous year Covid 19 pandemic, ‘Cost of Living Crisis’ and other changes have had on the charity during this year and are likely to have in the future. Whilst acknowledging that operations could still be affected in the short-term at least, the Trustees believe they have put suitable measures in place to ensure that the Charity will be able to continue with its activities going forward. The Trustees therefore believe that the preparation of the financial statements on the going concern basis is appropriate.

Future Plans

Fusion Housing Kirklees will seek to diversify and attract funds into the core business activities in order to secure the provision of quality, person centred, housing support and advice to those that need them. We will continue to develop and monitor our provision so that it consistently meets the standards required by the Accreditations we hold such as Matrix and the Specialist Quality Mark

Key areas for future development identified are :

Our bi-annual Staff Conference structure will continue to play a role in these developments and to identify other areas.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing Document

The Company 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.

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. In the event of the company being wound up members are required to contribute an amount not exceeding £1.

Recruitment and appointment of new trustees

Recruitment of Trustees is done through advertisement in local press or through local agency bulletins and by nomination through existing members when a position becomes available.

New Trustees are appointed by Election where individuals are nominated (following their application) and are then elected onto the Board of Trustees by the organisation’s members at an Annual General Meeting (AGM).

5

FUSION HOUSING KIRKLEES LIMITED

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023 (Continued)

Organisational structure

The Trustees of the organisation hold responsibility to the organisation for decision making and delegate core functions to the organisations Director and Management Team.

Induction and training of new trustees

New trustees to the Fusion Housing Kirklees Board will go through an induction process and skills audit to ascertain any training needs. All trustees will have access to the organisations training programme in relation to the services provided.

Related parties

There are no related parties, and no transactions with trustees as determined by the Memorandum and Articles of Association.

Directors

The Directors during the year were:

E Cannell D Hullock S Kaye K Knott C Ledwon M A Leith C Lorenzelli D P Moriarty C A Pattison S Smith N J Tarren M Vangrove

Auditors

Wheawill & Sudworth Limited were appointed as auditor for the year and they will be proposed for re-appointment at the Annual General Meeting.

6

FUSION HOUSING KIRKLEES LIMITED

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023 (continued)

Trustees’ Responsibilities Statement

The Trustees (who are also the directors of Fusion Housing Kirklees Limited for the purposes of company law) are responsible for preparing the Trustees’ Annual Report 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. 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 the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The Trustees are responsible for keeping proper accounting records that 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.

In so far as the trustees are aware:

The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

ON BEHALF OF THE BOARD

Approved by the board on 8 December 2023 and signed on its behalf by

M Vangrove Chair

7

FUSION HOUSING KIRKLEES LIMITED

INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 MARCH 2023

Independent Auditor’s Report to the trustees of Fusion Housing Kirklees Limited

We have audited the financial statements of Fusion Housing Kirklees Limited (the ‘charitable company’) for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and the 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, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (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 Auditor’s 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.

We draw attention to note 1 (k) in the financial statements, which indicates that the charity incurred a net deficit of £423,664 during the year ended 31 March 2023 and, as of that date, the company’s liabilities exceeded its assets by £189,278. As stated in note 1 (k), these events, along with other matters as set forth in note 1 (k), indicate that the charity is reliant on continued financial support from various stakeholders to be able to continue to operate. Accordingly, a material uncertainty exists that may cast significant doubt on the charity’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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

8

FUSION HOUSING KIRKLEES LIMITED

INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 MARCH 2023

Other information

The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the trustees’ annual report. 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.

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 course of the audit 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 7, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of 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.

9

FUSION HOUSING KIRKLEES LIMITED

INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 MARCH 2023

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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 an auditor’s report 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.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

10

FUSION HOUSING KIRKLEES LIMITED

INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 MARCH 2023

Use of our report

This report is made solely to the charitable company’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 auditor’s 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 trustees as a body, for our audit work, for this report, or for the opinions we have formed.

35 Westgate Huddersfield HD1 1PA 8 December 2023

David Butterworth, Senior Statutory Auditor

Wheawill & Sudworth Limited, Statutory Auditor

Wheawill & Sudworth Limited is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

11

FUSION HOUSING KIRKLEES LIMITED

STATEMENT OF FINANCIAL ACTIVITY (Including Income and Expenditure Account)

for the year ended

31 MARCH 2023

Total Total
Unrestricted Restricted Funds Funds
Note Funds Funds 2023 2022
£ £ £ £
Incoming resources
2 Donations and legacies: 2,026 - 2,026 12,322
────── ────── ────── ──────
5 Charitable activities
Housing advice and support 547,196 1,088,963 1,636,159 1,595,330
Learning - 237,314 237,314 164,671
Recycling - 247,150 247,150 375,962
────── ────── ────── ──────
547,196 1,573,427 2,120,623 2,135,963
────── ────── ────── ──────
3 Other trading activities 2,750,677 - 2,750,677 3,162,782
────── ────── ────── ──────
4 Investment income 7 - 7 7
────── ────── ────── ──────
Total income and endowments 3,299,906 1,573,427 4,873,333 5,311,074
══════ ══════ ══════ ══════
Resources expended
6 Expenditure on raising funds 1,760,905 - 1,760,905 1,788,363
────── ────── ────── ──────
7 Charitable activities
Housing advice and support 1,326,633 1,088,963 2,415,596 2,306,939
Learning 287,816 237,314 525,130 381,681
Recycling 312,989 247,150 560,139 781,207
Other 35,227 - 35,227 36,825
────── ────── ────── ──────
1,962,665 1,573,427 3,536,092 3,506,652
────── ────── ────── ──────
Total resources expended 3,723,570 1,573,427 5,296,997 5,295,015
══════ ══════ ══════ ══════
10 Net income/(expenditure) (423,664) - (423,664) 16,059

The notes on pages 16 to 27 form part of these financial statements

12

FUSION HOUSING KIRKLEES LIMITED

STATEMENT OF FINANCIAL ACTIVITY (continued)

for the year ended

31 MARCH 2023

Total Total
Unrestricted Restricted Funds Funds
Note Funds Funds 2023 2022
£ £ £ £
Net income/(expenditure) (423,664) - (423,664) 16,059
20 Transfers between funds - - - -
────── ────── ────── ──────
Net movement in funds (423,664) - (423,664) 16,059
Total funds brought forward 232,448 1,938 234,386 218,327
────── ────── ────── ──────
Total funds carried forward (191,216) 1,938 (189,278) 234,386
══════ ══════ ══════ ══════

Continuing operations

None of the charitable company’s activities were acquired or discontinued during the current year.

Total recognised gains and losses

The charitable company has no recognised gains or losses other than the surplus/(deficit) for the current and previous periods.

The notes on pages 16 to 27 form part of these financial statements.

13

FUSION HOUSING KIRKLEES LIMITED

BALANCE SHEET

AS AT 31 MARCH 2023

Notes Unrestricted Restricted 2023 2022
Funds Funds Total funds Total funds
£ £ £ £
Fixed assets
14 Tangible assets 100,431 - 100,431 103,189
Current assets
15 Debtors 556,498 - 556,498 598,261
Cash at bank and in hand (1,552) 1,938 386 81,748
────── ────── ────── ──────
554,946 1,938 556,884 680,009
16 Creditors:amounts falling
due within one year (842,110) - (842,110) (507,778)
────── ────── ────── ──────
Net current (liabilities)/assets (287,164) 1,938 (285,226) 172,231
────── ────── ────── ──────
Total assets less current liabilities (186,733) 1,938 (184,795) 275,420
17 Creditors:amounts falling (4,483) - (4,483) (41,034)
due after more than one year
────── ────── ────── ──────
Net (liabilities)/assets (191,216) 1,938 (189,278) 234,386
══════ ══════ ══════ ══════
20 Funds
Unrestricted funds (191,216) 232,448
Restricted funds:
Jean Conway Trust 1,258 1,258
Howitt Homeless Trust 230 230
Community Legal Services
Development Fund 450 450
────── ──────
Total funds (189,278) 234,386
══════ ══════

The accounts on pages 12 to 27 were approved and authorised for issue by the board on 8 December 2023 and signed on their behalf

M VANGROVE C A PATTISON Trustee Trustee

Company registration number : 081583201

14

The notes on pages 16 to 29 form part of these financial statements.

15

FUSION HOUSING KIRKLEES LIMITED

STATEMENT OF CASH FLOWS

for the year ended

31 MARCH 2023

2023 2022
Note £ £
Cash flow from operating activities
Cash generated/(absorbed) by operations 21,080 24,080
Interest paid (9,666) (14,661)
────── ──────
Net cash flow provided by (used in) from operating activities 11,414 9,419
────── ──────
Cash flow from investing activities
Payment to acquire tangible fixed assets (47,629) (30,487)
Interest received 7 7
────── ──────
Net cash flow provided by (used in) investing activities (47,622) (30,480)
────── ──────
Cash flows from financing activities:
Loan repayments in year (45,154) (48,081)
────── ──────
Net cash provided by (used in) financing activities (45,154) (48,081)
────── ──────
Change in cash and cash equivalents in the reporting period (81,362) (69,142)
Cash and cash equivalents consists at the beginning 81,748 150,890
of the reporting period
────── ──────
Cash and cash equivalents consists at the end 386 81,748
of the reporting period
══════ ══════
RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM
OPERATING ACTIVITIES
2023 2022
£ £
Net income/(expenditure) for the reporting period (as per
the statement of financial activities) (423,664) 16,059
Adjustments for:
Depreciation charges 50,386 50,994
Interest received (7) (7)
Interest paid 9,666 14,661
(Increase)/decrease in debtors 41,764 (16,559)
Increase/(decrease) in creditors 342,935 (41,068)
────── ──────
Cash flow from operating activities 21,080 24,080
────── ──────

16

FUSION HOUSING KIRKLEES LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 MARCH 2023

1 Summary of significant accounting policies

(a) Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity as defined by FRS 102, 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) issued on 16 July 2014, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2015. The financial statements are prepared on a going concern basis under the historical cost convention. The financial statements are prepared in sterling which is the functional currency of the charity.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

(b) Income

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

(c) 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 costs 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.

(d) Raising funds

Raising funds includes all expenditure incurred by the charity to raise funds for its charitable purposes and includes costs of all fundraising, events and non-charitable trading.

(e) Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

(f) Allocation and apportionment of costs

Costs relating to a particular activity are allocated directly. Support costs that are not wholly attributable to a single activity are apportioned across the activities based upon calculations such as floor area or estimated usage.

17

FUSION HOUSING KIRKLEES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

31 MARCH 2023

(g) Tangible fixed assets

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

Improvements to property - over the lease term Tenancy property assets - 33% on cost Fixtures and fittings - 20% on reducing balance Computer equipment - 33% on cost

(h) Taxation

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. The charity is consequently exempt from corporation tax on its charitable activities

(i) 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.

(j) 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.

(k) Going concern

The financial statements have been prepared on a going concern basis as the trustees consider that the charity can continue to operate for the 12 months following the date of their approval of these financial statements. The charity incurred a deficit of £423,664 during the year and had net liabilities of £189,278 at the end of the year. These results were caused by changes to key funding streams alongside the impact of COVID causing delay to repair and maintenance schedules of managed properties leading to a high level of vacant properties. It was not possible for the charity to immediately reduce its cost base in response to these challenges. Matters were exasperated by delays in the charity receiving funding from various sources.

The charity has been involved in active discussions with both funders and creditors who have generally been very supportive. New contracts have been secured, in particular an Emergency Accommodation programme, and a surplus and reduction in net liabilities are anticipated for the year to 31 March 2024 with further positive progress forecast for the following year. With careful management of cash flow and on-going support from stakeholders, the trustees are confident that the charity can continue to operate and provide its valuable services to individuals with housing challenges in the Kirklees, Calderdale and Wakefield communities.

18

FUSION HOUSING KIRKLEES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

31 MARCH 2023

2 Donations and Legacies

Unrestricted
Restricted
Restricted		 2023 2022
Funds Funds Total Funds Total Funds
£ £ £ £
Donations 2,026 - 2,026 12,322
══════ ══════ ══════ ══════
3 Other Trading Activities
Unrestricted
Restricted		 2023 2022
Funds Funds Total Funds Total Funds
£ £ £ £
Rents and housing benefit 2,750,677 - 2,750,677 3,162,783
══════ ══════ ══════ ══════
4 Investment Income Unrestricted
Restricted		 2023 2022
Funds Funds Total Funds Total Funds
£ £ £ £
Deposit account interest 7 - 7 7
═ ═ ═ ═
5 Income from Charitable Activities
2023 2022
£ £
Activity
Legal help and court duty Housing advice and support 245,534 192,486
Grants Housing advice and support 1,390,625 1,402,844
Course delivery fees Learning - 7,526
Grants Learning 237,314 157,145
Grants Recycling 247,150 375,962
────── ──────
2,120,623 2,135,963
══════ ══════

19

FUSION HOUSING KIRKLEES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

31 MARCH 2023

Expenditure on Raising Funds

Other trading activities

Other trading activities
Unrestricted Unrestricted 2023 2022
Funds Funds Total Funds Total Funds
£ £ £ £
Tenancy costs 1,760,905 - 1,760,905 1,788,363
══════ ══════ ══════ ══════
Charitable Activities Costs
Direct Costs Support Costs Totals
(see note 8) (see note 9)
£ £ £
Housing advice and support 1,810,567 605,029 2,415,596
Learning 393,601 131,529 525,130
Recycling 419,842 140,297 560,139
Other - 35,227 35,227
────── ────── ──────
2,624,010 912,082 3,536,092
══════ ══════ ══════
Direct Costs of Charitable Activities
2023 2022
£ £
Staff costs 2,397,745 2,349,801
Beneficiary costs 56,977 24,168
Beneficiary course costs 1,646 1,051
Travel and subsistence 23,694 17,646
Training 2,557 4,548
Interpreter fees 12,560 5,841
Legal Aid disbursements 52,480 32,468
LWP Food 45,198 36,966
LWP Furniture 31,153 105,071
────── ──────
2,624,010 2,577,560
══════ ══════
Support Costs
Governance
Management Finance Costs Totals
£ £ £ £
Other resources expended 9,666 8,300 17,261 35,227
Housing advice and support 605,029 - - 605,029
Learning 131,529 - - 131,529
Recycling 140,297 - - 140,297
────── ────── ────── ──────
886,521 8,300 17,261 912,082
══════ ══════ ══════ ══════

7 Charitable Activities Costs

8 Direct Costs of Charitable Activities

20

FUSION HOUSING KIRKLEES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

31 MARCH 2023

9 Support Costs – continued

Support costs, included in the above are as follows:

9 Support Costs – continued
Support costs, included in the above are as follows:
Other Housing
resources advice and
expended Support Learning
£ £ £
Interest payable and similar charges 9,666 - -
Sundries 1,787 - -
Bank charges 6,513 - -
Auditors’ remuneration 7,000 - -
Legal fees 10,261 - -
Wages - 214,169 46,559
Pensions - 15,513 3,,372
Rent, rates and water - 140,181 30,474
Insurance - 19,887 4,323
Light and heat - 15,353 3,338
Postage, stationery and telephone - 53,254 11,577
Other costs - 111,906 24,328
Depreciation of tangible assets - 34,766 7,558
────── ────── ──────
35,227 605,029 131,529
══════ ══════ ══════
2023 2022
Recycling Total Total
Activities Activities
£ £ £
Interest payable and similar charges - 9,666 14,661
Sundries - 1,787 448
Bank charges - 6,513 5,184
Auditors remuneration - 7,000 7,000
Legal fees - 10,261 9,532
Wages 49,663 310,391 356,534
Pensions 3,597 22,482 20,624
Rent, rates and water 32,506 203,161 201,339
Insurance 4,611 28,821 28,051
Light and heat 3,560 22,251 11,744
Postage, stationery and telephone 12,349 77,180 98,756
Other costs 25,949 162,183 124,225
Depreciation of tangible assets 8,062 50,386 50,994
────── ────── ──────
140,297 912,082 929,092
══════ ══════ ══════
10 Net Income/(Expenditure)
Net income/(expenditure) is stated after charging/
(crediting): 2023 2022
£ £
Auditors’ remuneration 7,000 7,000
Depreciation – owned assets 50,387 50,994
══════ ══════

21

FUSION HOUSING KIRKLEES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

31 MARCH 2023

Trustees’ Remuneration and Benefits

There were no trustees’ remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022.

Trustees’ expenses
2023 2022
£ £
Trustees’ expenses - -
═ ═
12 Staff Costs
2023 2022
£ £
Wages and salaries 2,598,827 2,595,618
Pension costs 131,341 131,341
────── ──────
2,730,168 2,726,959
────── ──────

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

2023 2022
Provision of service 80 84
Management and administration 9 10
── ──
89 94
══ ══

NNo employees received emoluments in excess of £60,000 (2022: none)

22

FUSION HOUSING KIRKLEES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

31 MARCH 2023

13 Comparatives for the Statement of Financial Activities

Year ended 31 March 2022
Note Unrestricted
Restricted		 Total
Funds Funds Funds
£ £ £
Income and endowments from
2 Donations and legacies 12,322 - 12,322
5 Charitable activities
Housing advice and support 583,902 1,011,428 1,595,330
Learning - 164,671 164,671
Recycling - 375,962 375,962
3 Other trading activities 3,162,782 - 3,162,782
4 Investment income 7 - 7
────── ────── ──────
Total 3,759,013 1,552,061 5,311,074
────── ────── ──────
Expenditure On
6 Raising funds 1,788,363 - 1,788,363
7 Charitable activities
Housing advice and support 1,295,511 1,011,428 2,306,939
Learning 217,010 164,671 381,681
Recycling 405,245 375,962 781,207
Other 36,825 - 36,825
────── ────── ──────
Total 1,954,591 1,552,061 3,506,652
────── ────── ──────
Net income/(expenditure) 16,059 - 16,059
20 Transfers between funds - - -
────── ────── ──────
Net movement in funds 16,059 - 16,059
RECONCILIATION OF FUNDS
Total funds brought forward 216,389 1,938 218,327
────── ────── ──────
Total funds carried forward 232,448 1,938 234,386
══════ ══════ ══════

23

FUSION HOUSING KIRKLEES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

31 MARCH 2023

14 Tangible fixed assets Tenancy
Improvements property Fixtures and Computer
to property assets Fittings Equipment Totals
Cost: £ £ £ £ £
At 1 April 2022 136,278 134,461 33,059 65,693 369,491
Additions - 46,693 - 936 47,629
Disposals - - - - -
────── ────── ────── ────── ──────
At 31 March 2023 136,278 181,154 33,059 66,629 417,120
────── ────── ────── ────── ──────
Depreciation:
At 1 April 2022 76,416 107,881 22,261 59,744 266,302
Charge for the year 9,978 32,159 2,160 6,090 50,387
Eliminated on disposal - - - - -
────── ────── ────── ────── ──────
At 31 March 2023 86,394 140,040 24,421 65,834 316,689
────── ────── ────── ────── ──────
Net book value:
At 31 March 2023 49,884 41,114 8,638 795 100,431
══════ ══════ ══════ ══════ ══════
At 31 March 2022 59,862 26,580 10,798 5,949 103,189
══════ ══════ ══════ ══════ ══════
15 Debtors: amounts falling due within one year 2023 2022
£ £
Debtors and accrued income 494,983 530,268
Prepayments 61,515 67,993
────── ──────
556,498 598,261
══════ ══════
16 Creditors: Amounts falling due within one year 2023 2022
£ £
Other loans (see note 18) 81,836 90,439
Trade creditors 238,078 191,657
SPAYE/NI 353,823 49,912
VAT 11,029 2,612
Other creditors 49,202 15,927
Deferred income 101,142 147,320
AAccrued expenses 7,000 9,911
────── ──────
842,110 507,778
══════ ══════
17 Creditors: Amounts falling due within one year 2023 2022
£ £
Other loans (see note 18) 4,483 41,034
══════ ══════

24

FUSION HOUSING KIRKLEES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

31 MARCH 2023

18 Loans

An analysis of the maturity of loans is given below:
2023 2022
£ £
Amounts falling due within one year on demand:
Other loans 81,836 90,439
══════ ══════
Amounts falling between one and two years
Other loans – 1-2 years 4,483 41,034
══════ ══════
Amounts falling due between two and five
Other loans – 2-5 years - -
══════ ══════

These loans are secured by charges over the assets of the charity.

19 Leasing Agreements

Minimum lease payments under non-cancellable operating leases fall due
as follows: 2023 2022
£ £
Within one year 18,927 20,633
Between one and five years 58,701 36,653
In more than five years 575,737 869,880
────── ──────
653,365 927,166
══════ ══════

20 Movement in Funds

Movement in Funds
Net movement Transfers
At 1.4.22 In funds Between funds At 31.3.23
£ £ £ £
Unrestricted funds
General fund 232,448 (423,664) - (191,216)
────── ────── ────── ──────
232,448 (423,664) - (191,216)
Restricted funds
Jean Conway Trust 1,258 - - 1,258
Howitt Homeless Trust 230 - - 230
Community Legal Services 450 - - 450
Development Fund
────── ────── ────── ──────
1,938 - - 1,938
────── ────── ────── ──────
Total Funds 234,386 (423,664) - (189,278)
══════ ══════ ══════ ══════

25

FUSION HOUSING KIRKLEES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

31 MARCH 2023

20 Movement in Funds - Continued

Net movement in funds, included in the above are as follows:

Incoming Resources Movement in
Resources Expended Funds
£ £ £
Unrestricted funds
General fund 2,998,245 (3,421,909) (423,664)
KMC Exchequer Services Grant 72,782 (72,782) -
KMC Stronger Families 38,650 (38,650) -
Advice Services Grant 159,069 (159,069) -
Access to Justice Grant 14,672 (14,672) -
MHCLG AFO Grant 16,488 (16,488) -
────── ────── ──────
3,299,906 (3,723,570) (423,664)
Restricted funds
Local Welfare Provision – Food 214,830 (214,830) -
Local Welfare Provision - Furniture 32,320 (32,320) -
Kirklees Better Outcomes Project 1,088,963 (1,088,963) -
Works Better – ESIF 237,314 (237,314) -
────── ────── ──────
1,573,427 (1,573,427) -
────── ────── ──────
Total Funds 4,873,333 (5,296,997) (423,664)
══════ ══════ ══════

26

FUSION HOUSING KIRKLEES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

31 MARCH 2023

Comparatives for movement in funds
Net movement Transfers
At 1.4.21 In funds Between funds At 31.3.22
£ £ £ £
Unrestricted funds
General fund 216,389 16,059 - 232,448
────── ────── ────── ──────
216,389 16,059 - 232,448
Restricted funds
Jean Conway Trust 1,258 - 1,258
Howitt Homeless Trust 230 - - 230
Community Legal Services 450 - - 450
Development Fund
────── ────── ────── ──────
1,938 - - 1,938
────── ────── ────── ──────
Total Funds 218,327 16,059 - 234,386
══════ ══════ ══════ ══════
Comparative net movement in funds, included in the above are as follows:
Incoming Resources Movement in
Resources Expended Funds
£ £ £
Unrestricted funds
General fund 3,367,867 (3,351,808) 16,059
KMC Exchequer Services Grant 72,782 (72,782) -
KMC Stronger Families 19,360 (19,360) -
Foundation Housing Wakefield Pathways 11,174 (11,174) -
Advice Services Grant 159,069 (159,069) -
Calderdale FHSF Grant 63,259 (63,259) -
Community Justice 51,801 (51,801) -
Job Retention Scheme 1,190 (1,190) -
MHCLG AFO Grant 12,511 (12,511) -
────── ────── ──────
3,759,013 (3,742,954) 16,059
Restricted funds
Local Welfare Provision – Food 191,408 (191,408) -
Local Welfare Provision - Furniture 184,554 (184,554) -
Adult and Community Learning 7,256 (7,256) -
Kirklees Better Outcomes Project 1,011,428 (1,011,428) -
Works Better – ESIF 157,415 (157,415) -
────── ────── ──────
1,552,061 (1,552,061) -
────── ────── ──────
Total Funds 5,311,074 (5,295,015) 16,059
══════ ══════ ══════

27

FUSION HOUSING KIRKLEES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

31 MARCH 2023

21 Contingent liabilities

The charity provides tenancy bond guarantees under its Bond Guarantee Scheme. Total payments made in the year in relation to bond claims was £6,340 (2022: £2,400) and the aggregate amount reserved for at 31 March 2023 was £17,630 (2022: £17,242). No further reserves are considered necessary.

22 Related Party Disclosures

There were no related party transactions for the year ended 31 March 2023 (2022 none).

28

FUSION HOUSING KIRKLEES LIMITED

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

For the year ended 31 MARCH 2023

2023 2022
Unrestricted Restricted Total Total
Funds Funds Funds Funds
£ £ £ £
INCOME AND ENDOWMENTS
DDonations and legacies
Donations 2,026 - 2,026 12,322
Other trading activities
RRents and housing benefit 2,750,677 - 2,750,677 3,162,782
Investment income
Deposit account interest 7 - 7 7
CCharitable activities
Course delivery fees - - - 7,526
Legal help and court duty 245,534 - 245,534 192,486
GGrants 301,662 1,573,427 1,875,089 1,935,951
────── ────── ────── ──────
547,196 1,573,427 2,120,623 2,135,963
────── ────── ────── ──────
Total incoming resources 3,299,906 1,573,427 4,873,333 5,311,074
EXPENDITURE
Other trading activities
Tenancy costs 1,760,905 - 1,760,905 1,788,363
────── ────── ────── ──────
Charitable activities
Wages 1,168,797 1,122,673 2,291,470 2,239,084
Pensions 54,207 52,068 106,275 110,717
Beneficiary costs - 56,977 56,977 24,168
Beneficiary course costs - 1,646 1,646 1,051
Travel and subsistence - 23,694 23,694 17,646
Training - 2,557 2,557 4,548
Interpreter fees 12,560 - 12,560 5,841
Legal Aid disbursements - 52,480 52,480 32,468
LWP food - 45,198 45,198 36,966
LWP Furniture - 31,153 31,153 105,071
────── ────── ────── ──────
1,235,564 1,388,446 2,624,010 2,577,560
Expenditure carried forward 2,996,469 1,388,446 4,384,915 4,365,923

29

FUSION HOUSING KIRKLEES LIMITED

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

For the year ended 31 MARCH 2023

2023 2022
Unrestricted Restricted Total Total
Funds Funds Funds Funds
£ £ £ £
Expenditure brought forward 2,996,469 1,388,446 4,384,915 4,365,923
Support costs
DManagement
W
Wages		 248,313 62,078 310,391 356,534
Pensions 17,986 4,496 22,482 20,624
Rent, rates and water 162,529 40,632 203,161 201,339
RInsurance 23,057 5,764 28,821 28,051
LLight and heat 17,801 4,450 22,251 11,744
Postage, stationery and telephone 61,744 15,436 77,180 98,756
Books and subscriptions 13,943 3,486 17,429 15,475
Repairs and maintenance 55,838 13,960 69,798 43,787
CComputer expenses 29,213 7,303 36,516 39,581
Health and safety 8,095 2,024 10,119 9,946
Motor expenses - 12,014 12,014 5,806
Depreciation of tangible and heritage assets 40,309 10,077 50,386 50,994
Recruitment 13,046 3,261 16,307 9,600
Committee expenses - - - 30
LLoan interest 9,666 - 9,666 14,661
────── ────── ────── ──────
701,540 184,981 886,521 906,928
CFinance
Sundries 1,787 - 1,787 448
Bank charges 6,513 - 6,513 5,184
────── ────── ────── ──────
8,300 - 8,300 5,632
Governance costs
Auditors’ remuneration 7,000 - 7,000 7,000
Legal fees 10,261 - 10,261 9,532
────── ────── ────── ──────
17,261 - 17,261 16,532
────── ────── ────── ──────
Total resources expended 3,723,570 1,573,427 5,296,997 5,295,015
────── ────── ────── ──────
Net income/(expenditure) (423,664) - (423,664) 16,059
══════ ══════ ══════ ══════

30