OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

← Expectations (UK)

2023-09-30-accounts

Company registration number: 08272357 Charity registration number: 1152491

Expectations (UK)

(A company limited by guarantee) Annual Report and Financial Statements

for the Year Ended 30 September 2023

Expectations (UK)

Contents

Reference and Administrative Details 1
Strategic Report 2 to 3
Trustees' Report 4 to 11
Independent Examiner's Report 12
Statement of Financial Activities 13 to 14
Balance Sheet 15
Statement of Cash Flows 16
Notes to the Financial Statements 17 to 27

Expectations (UK)

Reference and Administrative Details

Charity Registration Number 1152491 Company Registration Number 08272357 Registered Office Suite 323

The charity is incorporated in England. Suite 323 The Jewellery Business Centre 95 Spencer Street Birmingham West Midlands B18 6DA

Page 1

Expectations (UK)

Strategic Report for the Year Ended 30 September 2023

The trustees, who are directors for the purposes of company law, present their strategic report for the year ended 30 September 2023, in compliance with s414C of the Companies Act 2006.

Achievements and performance

Key Performance Indicators

The Trustees have identified Key Performance Indicators that will be monitored. These will include, not exclusively:

The following Committees have been appointed by the board:

These Committees appointed by the Board focus on specific areas and take informed decisions within the framework of delegated authority, and make specific recommendations to the Board on matters in their areas. All decisions and recommendations of the committees are placed before the Board for information or for approval.

To enable better and more focused attention on the affairs of the organisation, the board delegates particular matters to the committees of the board set up for the purpose. Committees review items in great detail before it is placed before the Board for its consideration. These committees prepare the groundwork for decision making and report at the subsequent board meeting.

Quality Assurance

The trustees aim to develop and Implement appropriate mechanisms of quality control and assurance based on the Charity's Key Performance Indicators. This will include building upon information generated by previous reports, specific areas will include:

Page 2

Expectations (UK)

Strategic Report for the Year Ended 30 September 2023

Financial review

The Income and Expenditure for the year is set out on page fourteen of the financial statements.

During the twelve month period ending 30 September 2023 the Charity had a total housing income of £804,540 and total expenditure of £758,333 which resulted in a surplus of £46,207. Some of this was the ability to remove certain historical liabilities along with profitable operational performance. Management accounts are now produced and reviewed monthly by the Finance Committee and all legacy debts have been paid. As a result, we are pleased to be able to report the charity now being in a solvent position.

On-going restructure has taken place with regards the recruitment of trustee's followed by an operational restructure.

Policy on reserves

The trustees' reserves policy is to manage the reserves in such a way as to have sufficient funds available for the orderly winding up of the company without liability should its future income be in such doubt that this is the only credible course of action. Now the charity is in a more solvent position with the outlook being more positive, the reserves policy will be something that will be reviewed in 2024.

Investment policy and objectives

Whilst funding is still stretched, the trustees' policy is to invest operating funds in easy access and relatively low risk bank accounts should free cash flow start to filter through however the main objective is to re-invest in operational growth.

We are also working to raise funds and grants for the Charity going forward.

The strategic report was approved by the trustees of the charity on 18 June 2024 and signed on its behalf by:

......................................... Mr Munawar Hussain Trustee

Page 3

Expectations (UK)

Trustees' Report

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements and auditors' report of the charitable company for the year ended 30 September 2023.

Objectives and activities

Objects and aims

Throughout the year the objectives of the Charity are the relief of those in need, in particular (without prejudice to the generality) through the provision of and assistance with social housing, accommodation and assistance to help house people who are in need of such housing by reason of:

To provide accommodation, support provision and assistance to help people who are homeless, many of who have been leading chaotic lifestyles often including drug and or alcohol misuse, sustained mental health issues or have been in and out of the criminal justice system.

Review of development, activities and achievements

Expectations (UK) were founded in 2013 with a view to helping transform the lives of those in need through helping them with supported housing. We wanted to hold the hands of our beneficiaries through the first hurdle of supported housing and then help them to map and enact on their transformation. We have helped hundreds if not thousands of our guests move through this transformation and it is something that we are immensely proud of.

This however hasn't been achieved easily; we have faced some major challenges along the way. Most recently the organisation has been through a massive transformation process with the implementation of refreshed and new policies, procedures and processes. A new culture has been adapted within the organisation to offer enhanced services, improve ways of working, implementing new processes, working with the local council and the RSH to meet our residents needs and requirements as a social landlord.

Expectations (UK) current Business Plan is currently being worked on which will set out the objectives over the next 15 plus years for the charity.

Market Summary

Homelessness within the West Midlands has reached new levels. Shelter UK's report in December 2019 identifies that there are almost 23,715 homeless people. This data demonstrates the need for housing within Birmingham.

Birmingham, as the second-largest city in the UK, faces its share of homelessness challenges. Rising living costs, inadequate social housing, mental health issues, substance abuse, and family breakdowns are contributing factors to homelessness in the city.

Analysis of available data suggests that homelessness in Birmingham affects people of all ages and backgrounds. However, certain vulnerable groups are disproportionately impacted, such as young people leaving care, families with children, veterans, and individuals with mental health issues.

Page 4

Expectations (UK)

Trustees' Report

Birmingham, like many other cities, grapples with a shortage of affordable housing. This limited supply, coupled with increasing rental costs, leaves individuals vulnerable to homelessness. A significant proportion of the homeless population in Birmingham suffers from mental health issues and substance abuse problems. The lack of appropriate support services exacerbates the risk of homelessness among these individuals.

The homelessness crisis in Birmingham presents a complex and deeply rooted problem. Although recent initiatives have shown progress, more comprehensive and sustainable solutions are necessary to address the issue at its core. Efforts to increase the supply of affordable housing, enhance mental health support services, and create employment opportunities are crucial steps towards reducing homelessness rates in Birmingham.

The Regulator of Social Housing report on Sector Risk Profile 2020 published in November 2020 has highlighted the need for specific responsibilities surrounding increased stock quality standards and accountability to tenants. The regulator has also stated that the sector faces a growing range of competing internal and external pressures which will demand strategic control and decision-making. The needs of current tenants must be balanced with future demands; choices must be made between essential ongoing investment in the existing housing stock and contributing to new supply.

Birmingham City Council, local MP's and residents of Birmingham have expressed their concerns for badly run supported accommodation, which has resulted in crime, drugs and anti-social behaviour in the local areas. Registered Social Landlords have the responsibility in making sure the properties used for supported accommodation meet the decent home standard, all HMO regulations are in place and HHSRS guidance is followed but unfortunately this has not been completed by a handful of RSL's.

Both data sets demonstrate the need to for supported housing within Birmingham. At Expectations, we work with single adults and provide them with both support and accommodation in the hope that they can move forward in their lives.

Financial Summary

Expectations (UK) has now consolidated its financials in the last 12 months improving on the levels of control from 2022. The balance sheet and net asset value has progress with an increase of £36,842 to £150,936 to September 2023.

Our main sources of income are generated from our housing activity, and this has continued with a good level of consistency in 2022/2023. We have reduced the amount of debtors owed to the company along with reductions in trade creditors and provision due to better financial management.

Our Vision

To live in a world where individuals in need can access to support to transform their lives so we can live in a stronger more community

Our Mission

Provide services that are about more than just providing a bed for the night. We want to provide a safe place to stay while you get support to move on with your life.

Our Values

Page 5

Expectations (UK)

Trustees' Report

Current State

Expectations (UK) has gone from strength to strength over the last 12 months, with changes across the whole organisation. The board is committed to continue to work closely with the RSH to ensure that Expectations (UK) is fully compliant with the regulatory standards.

Our business plan is being refreshed to ensure that we consolidate our current position and to grow our business into different avenues of social housing.

We currently have a team of 10 paid staff and a range of consultants that are helping the organisation deliver its vision.

Strategy 2023/24 - 2038/39 Business Plan

Our strategy will be delivered through a robust business plan which we will ensure it allows the organisation to deliver against its ambitious targets. The organisations processes have been redrafted to ensure that they are fit for purpose and help to drive our ambition. We have also implemented a robust governance structure in order to focus more on our beneficiaries.

How we will drive our direction through our people

Expectations (UK) ability to help those in need is not only dependent on the robustness of the organisation itself but also on the talent we have in the organisation. We want to drive the whole team to deliver against the strategic priorities over the next five years.

Proposed Management Structure

The board have recognised that we need to develop our structure bringing in the right expertise as and when required. There is also a recognition that the CEO needs to have more oversight of the entire organisation and Expectations (UK) have also recruited an Operations Manager to manage the day to day running of business.

The structure we have has provided stability to the organisation as we continue to enhance our services for our residents.

Page 6

Expectations (UK)

Trustees' Report

Achieving Regulatory Standards

The Trustees of Expectations (UK) are responsible for ensuring that the Charity achieves the outcomes required in the Regulatory Standards framework for Registered Providers of Social Housing. We also work to meet the requirements of the West Midlands Regional offender Housing Protocol.

Along with the requirements for good governance and financial viability and controls, the trustees have acted to put systems in place to ensure that the Charity demonstrates value for money, sets rents in accordance with the Rent Standard and achieved the consumer standards.

The approach to, and achievement of these this year is summarised as:

Value for Money

Expectations (UK) are gathering baseline information to inform an initial value for money performance assessment so as to be able to measure and report on year on year improvements. We are establishing arrangements to work with tenants to identify and deliver relevant value for money outcomes.

Rent Standard

We have reviewed our rent settings for all our properties by working with external consultants, who have provided new rent settings, which are in line with the Rent Standard for social housing.

The new rent settings have been applied to all our properties with the help of the local council. We are still working to review our services provided to ensure these services are value for money and to reduce our rent settings further if possible.

Tenant Involvement and Empowerment

Service, choice & complaints

Information provided to tenants has been reviewed, complaints procedures have been simplified and implemented and mechanisms to monitor successful outcomes of complaints have been developed.

Resident and neighbourhood forum has been implemented with the trustees, management team and residents as members to voice their concerns with the services provided and to enhance and simplify our processes, policies and procedures within Expectations UK. This has been successful as many new ideas have been implemented and current services improved.

Involvement & Empowerment

Effective methods of involving a transient tenant population with consultation have included establishing residents meetings to consult on areas of service that require improvement. We are developing mechanisms to involve tenants in scrutiny, which will be an integral part of the development of our strategy for tenant involvement and engagement. Where possible, suggestions to improve services, in particular catering, have been implemented to meet a wide range of dietary requirements.

Equality and Diversity

The Trustees have adopted an appropriate Equality and Diversity policy and are developing procedures to embed the principles of equality and a positive approach to diversity across the organisation.

Page 7

Expectations (UK)

Trustees' Report

We have also applied to register with the BVSC Charter of Rights and Quality Standards, which is to review and implement new policies, procedures and processes for tenants rights and empowerment. We are working closely with Birmingham City Council to complete this registration.

Home Standard

Quality of Accommodation

Previously, all Properties held licences to ensure compliance with standards for managing Houses in Multiple Occupation. We have worked with our advisors and tenants to improve the safety of the buildings.

We have created a Quality control Framework to ensure all our properties are compliant with the HMO regulations, decent homes standards and HHSRS frameworks. Regular inspections are completed to highlight repairs and to ensure our properties meet the quality standards.

Repair and maintenance

The Charity has a repairs and maintenance team and has procedures to ensure all repairs reported are completed to appropriate timescales and 'right first time'.

Tenancy Standard

Allocations

Expectations (UK) has worked with strategic partners to provide housing that fits with local strategies and priorities and to allocate accommodation fairly and transparently, only excluding applicants who pose too great a risk to themselves, staff or other tenants to be safely managed in shared accommodation.

Tenure

Properties are let using supporting licence agreements as the trustees feel this enables Expectations (UK) to make the best possible use of the properties in meeting the aims of the organisation and meeting local needs.

Neighbourhood Management

Our staff works with tenants to maintain shared areas and exteriors to a high standard. Tenants have offered to undertake management and development of garden/courtyard areas and are being encouraged and supported to do so.

We are developing a partnership with a local community projects to provide actives for residents in the form of therapeutic support to aid residents recovery from substance misuse.

Expectations (UK) management also attend meetings with local organisations, such as Aston and Perry Barr Neighbourhood Forum, and the Homeless Forum to ensure we are an integral part of the community and to address any concerns the community may have with our project.

Local co-operation

We recognise the importance of effective partnership working to ensure that we can meet the holistic needs of our tenants, safeguard and protect vulnerable tenants, avoid duplication of services, and remain strategically relevant, well-connected and accountable to stakeholders.

Achieving Regulatory Standards

Page 8

Expectations (UK)

Trustees' Report

The Trustees and executive has working to ensure strong partnerships arrangements and good working relationships are built with the local authority, statutory services and voluntary and community agencies and in particular with the police and probation service.

Antisocial behaviour

A major success has been in working constructively with security and support staff and police partners to tackle anti-social behaviour by and towards tenants. This has particularly included contributing to a reduction in retail crime, alcohol related crime and disorder and the supply of illegal drugs in the local vicinity.

Expectations (UK) have signed a Sharing of Information Agreement with West Midlands Police to ensure that we know/have the appropriate residents in our properties and are not a risk to the local community.

Public benefit

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.

Social investment policies

The Charity has subscribed to software to enable the board to gather baseline information and monitor and report on the social value, impacts and return on investment for beneficiaries and funders as service develop.

Expectations (UK) has a commitment to local employment and the development of skills, with a staff structure based on 10 full-time posts; crime reduction and reduced fear of crime among the wider community; a general tranche of savings to the public purse, not only through reducing the costs resulting from criminal activities, but taking on roles often assigned, at far greater cost, to probation services.

Trustees and officers

The trustees and officers serving during the year and since the year end were as follows:

Trustees:

Mr Mohammed Tufail Dawood Mr Hadar Zaman Mr Ashley Plummer Mrs Gousia Parveen Mr Munawar Hussain Mr Kaiser Lone

Page 9

Expectations (UK)

Trustees' Report

Structure, governance and management

Nature of governing document

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

Expectations (UK) is a company limited by guarantee, incorporated on 29 October 2012 and is registered as a Charity with the Charity Commission from 19 June 2013. The Charity commenced activities on 23 September 2013.

The Charity also registered as a housing provider with the Homes & Communities Agency (HCA) from 16 September 2013.

The Charity's governing document, the Memorandum and Articles of Association, was adopted on 13 September 2013.

Membership of the company is open to anyone over the age of sixteen with the minimum number of members restricted to three and maximum is restricted to fifteen

Recruitment and appointment of trustees

Ordinarily, Trustees are appointed by members at the Annual General Meeting. Additional trustees may be co-opted between AGMs. The minimum number of trustees is restricted to three and the maximum is restricted to fifteen.

Induction and training of trustees

Following appointment, new trustees are introduced to their role and given copies of the governing document and a guide to the policies and procedures adopted by the Charity. A number of publications from the Charity Commission are also provided including the guidance on charities and public benefit and on the advancement of religion for the public benefit. This ensures that new trustees are aware of the scope of their responsibilities under the Charities Act.

Organisational structure

The board of trustees meet quarterly to review the progress and activities of the Charity. Once a year trustees review and approve a five year business/strategic development plan and the budgets for the following year.

Meetings have been held quartely as we work with the Regulator of Social Housing to address the regulatory notices, which were issued previously in 2016 / 2019.

Statement of trustees' responsibilities

The trustees (who are also the directors of Expectations (UK) 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:

Page 10

Expectations (UK)

Trustees' Report

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 trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Disclosure of information to auditor

Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

The annual report was approved by the trustees of the charity on 18 June 2024 and signed on its behalf by:

......................................... Mr Munawar Hussain Trustee

Page 11

Expectations (UK)

Independent Examiner's Report to the trustees of Expectations (UK) ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 30 September 2023.

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

Since the Company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of CGMA, which is one of the listed bodies.

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:

  1. accounting records were not kept in respect of Expectations (UK) as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. 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

  4. 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.

...................................... Paresh Bodhani CGMA

18 June 2024

Page 12

Expectations (UK)

Statement of Financial Activities for the Year Ended 30 September 2023 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Total income
Expenditure on:
Raising funds
4
Charitable activities
Total expenditure
Net income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
14
Note
Income and Endowments from:
Donations and legacies
3
Total income
Expenditure on:
Raising funds
4
Charitable activities
Total expenditure
Net income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
14
Note		 Unrestricted
funds
£
861,460
861,460
(18,673)
(837,416)
(856,089)
5,371
5,371
225,394
230,765
Unrestricted
funds
£
802,733
802,733
(4,688)
(783,234)
(787,922)
14,811
14,811
210,583
225,394
Unrestricted
funds
General
£		 Total
2023
£
861,460
861,460
(18,673)
(837,416)
(856,089)
5,371
5,371
225,394
230,765
Total
2022
£
802,733
802,733
(4,688)
(783,234)
(787,922)
14,811
14,811
210,583
225,394
Total
2023
£

Income and Endowments from:

The notes on pages 17 to 27 form an integral part of these financial statements. Page 13

Expectations (UK)

Statement of Financial Activities for the Year Ended 30 September 2023 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Donations and legacies
3
Total Income
Expenditure on:
Raising funds
4
Charitable activities
Total Expenditure
Net income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
14		 Unrestricted
funds
General
£
861,460
861,460
(18,673)
(837,416)
(856,089)
5,371
5,371
225,394
230,765		 Total
2023
£
861,460
861,460
(18,673)
(837,416)
(856,089)
5,371
5,371
225,394
230,765

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2022 is shown in note 14.

The notes on pages 17 to 27 form an integral part of these financial statements. Page 14

Expectations (UK)

(Registration number: 08272357) Balance Sheet as at 30 September 2023

Note
Fixed assets
Tangible assets
8
Investments
9
Current assets
Debtors
10
Cash at bank and in hand
11
Creditors: Amounts falling due within one year
12
Net current assets
Net assets
Funds of the charity:
Unrestricted income funds
Unrestricted funds
Total funds
14		 2023
£
44,456
67,856
112,312
69,633
59,918
129,551
(11,098)
118,453
230,765
230,765
230,765		 2022
£
51,036
-
51,036
59,762
134,968
194,730
(20,372)
174,358
225,394
225,394
225,394

The financial statements on pages 13 to 27 were approved by the trustees, and authorised for issue on 18 June 2024 and signed on their behalf by:

......................................... Mr Munawar Hussain Trustee

The notes on pages 17 to 27 form an integral part of these financial statements. Page 15

Expectations (UK)

Statement of Cash Flows for the Year Ended 30 September 2023

Note
Cash flows from operating activities
Net cash income
Adjustments to cash flows from non-cash items
Depreciation
4
Working capital adjustments
(Increase)/decrease in debtors
10
Decrease in creditors
12
Net cash flows from operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
8
Purchase of investments
9
Net cash flows from investing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at 1 October
Cash and cash equivalents at 30 September		 2023
£
5,371
11,997
17,368
(9,871)
(9,274)
(1,777)
(5,417)
(67,856)
(73,273)
(75,050)
134,968
59,918		 2022
£
14,811
13,013
27,824
68,859
(3,112)
93,571
(9,716)
-
(9,716)
83,855
51,113
134,968

All of the cash flows are derived from continuing operations during the above two periods.

The notes on pages 17 to 27 form an integral part of these financial statements. Page 16

Expectations (UK)

Notes to the Financial Statements for the Year Ended 30 September 2023

1 Charity status

The charity is limited by guarantee, incorporated in England, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £Nil towards the assets of the charity in the event of liquidation.

The address of its registered office is: Suite 323 The Jewellery Business Centre 95 Spencer Street Birmingham West Midlands B18 6DA

These financial statements were authorised for issue by the trustees on 18 June 2024.

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)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Basis of preparation

Expectations (UK) 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.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.

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.

Page 17

Expectations (UK)

Notes to the Financial Statements for the Year Ended 30 September 2023

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. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable activities

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, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

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 costing £0.00 or more 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 25% on reducing balance Computer equipment 20% on straight line Fixtures & fittings 20% on reducing balance

Investment properties

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Page 18

Expectations (UK)

Notes to the Financial Statements for the Year Ended 30 September 2023

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

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.

Page 19

Expectations (UK)

Notes to the Financial Statements for the Year Ended 30 September 2023

Foreign exchange

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date.

The results of overseas operations are translated at the average rates of exchange during the period and their balance sheets at the rates ruling at the balance sheet date. Exchange differences arising on translation of the opening net assets and results of overseas operations are reported in other comprehensive income and accumulated in equity (attributed to non-controlling interests as appropriate).

Other exchange differences are recognised in the Statement of Financial Activities in the period in which they arise except for:

1) exchange differences on transactions entered into to hedge certain foreign currency risks (see above);

2) exchange differences arising on gains or losses on non-monetary items which are recognised in other comprehensive income; and

3) in the case of the consolidated financial statements, exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are recognised in other comprehensive income and reported under equity.

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

Classification

Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.

Page 20

Expectations (UK)

Notes to the Financial Statements for the Year Ended 30 September 2023

Recognition and measurement

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 statement of financial position 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 asset 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.

Page 21

Expectations (UK)

Notes to the Financial Statements for the Year Ended 30 September 2023

Debt instruments

Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method:

(a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive variable rate; or (iii) a combination of a positive or a negative fixed rate and a positive variable rate.

(b) The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged.

(c) The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not contingent on future events other than (1) a change of a contractual variable rate; (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and satisfies condition (a).

(d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods.

(e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law.

(f) Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c).

Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.

With the exception of some hedging instruments, other debt instruments not meeting these conditions are measured at fair value through profit or loss.

Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.

Investments

Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment.

Investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored.

Page 22

Expectations (UK)

Notes to the Financial Statements for the Year Ended 30 September 2023

Derivative financial instruments

The charity uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The charity does not hold or issue derivative financial instruments for speculative purposes.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in statement of financial activities immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in statement of financial activities depends on the nature of the hedge relationship.

Fair value measurement

The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.

3 Income from donations and legacies

Regular giving and capital donations
Total for 2023
Total for 2022		 Unrestricted
funds
General
£
861,460
861,460
802,733		 Total
funds
£
861,460
861,460
802,733

a) Costs of trading activities

Note
Other direct costs of activities for generating funds
Total for 2023
Total for 2022		 Unrestricted
funds
General
£
18,673
18,673
4,688		 Total
funds
£
18,673
18,673
4,688

Page 23

Expectations (UK)

Notes to the Financial Statements for the Year Ended 30 September 2023

5 Net incoming/outgoing resources

Net incoming resources for the year include:

Operating leases - plant and machinery
Operating leases - other assets
Depreciation of fixed assets		 2023
£
3,339
-
11,997		 2022
£
2,210
42,535
13,015

6 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

7 Taxation

The charity is a registered charity and is therefore exempt from taxation.

8 Tangible fixed assets

Cost
At 1 October 2022
Additions
At 30 September 2023
Depreciation
At 1 October 2022
Charge for the year
At 30 September 2023
Net book value
At 30 September 2023
At 30 September 2022
9
Fixed asset investments
Investment properties		 Furniture and
equipment
£
117,865
5,417
123,282
66,829
11,997
78,826
44,456
51,036		 Total
£
117,865
5,417
123,282
66,829
11,997
78,826
44,456
51,036
2023
£
67,856
123,282
66,829
11,997
78,826
44,456
51,036

Investment properties

Page 24

Expectations (UK)

Notes to the Financial Statements for the Year Ended 30 September 2023

Investment properties

Investment properties
Cost or Valuation
Additions
Provision
At 30 September 2023
Net book value
At 30 September 2023
There has been no valuation of investment property by an independent valuer.		 Investment
properties
£
67,856
-
67,856

10 Debtors

Trade debtors
Prepayments
11 Cash and cash equivalents
Cash on hand
Cash at bank
12 Creditors: amounts falling due within one year
Trade creditors
Other taxation and social security
Other creditors
Accruals		 2023
£
45,069
24,564
69,633
2023
£
605
59,313
59,918
2023
£
5,459
4,941
698
-
11,098		 2022
£
37,534
22,228
59,762
2022
£
837
134,131
134,968
2022
£
13,390
5,293
1,449
240
20,372

Page 25

Expectations (UK)

Notes to the Financial Statements for the Year Ended 30 September 2023

13 Pension and other schemes

Defined contribution pension scheme

The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £Nil (2022 - £Nil).

14 Funds

14 Funds
Unrestricted funds
General
Unrestricted funds
General		 Balance at 1
October 2022
£
225,394
Balance at 1
October 2021
£
210,583		 Incoming
resources
£
861,460
Incoming
resources
£
802,733		 Resources
expended
£
(856,089)
Resources
expended
£
(787,922)		 Balance at 30
September
2023
£
230,765
Balance at 30
September
2022
£
225,394

15 Analysis of net assets between funds

Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Total net assets		 Unrestricted
funds
General
£
44,456
67,856
129,551
(11,098)
230,765
Unrestricted
funds
General
£
51,036
194,730
(20,372)
225,394		 Total funds at
30 September
2023
£
44,456
67,856
129,551
(11,098)
230,765
Total funds at
30 September
2022
£
51,036
194,730
(20,372)
225,394

Page 26

Expectations (UK)

Notes to the Financial Statements for the Year Ended 30 September 2023

16 Analysis of net funds

16 Analysis of net funds
Cash at bank and in hand
Net debt
Cash at bank and in hand
Net debt		 At 1 October
2022
£
134,968
134,968
At 1 October
2021
£
51,113
51,113		 At 30
September
2023
£
134,968
134,968
At 30
September
2022
£
51,113
51,113

17 Related party transactions

There were no related party transactions in the year.

Page 27

Expectations (UK)

Statement of Financial Activities by fund for the Year Ended 30 September 2023

Unrestricted Funds

Unrestricted Funds
Income and Endowments from:
Donations and legacies
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Total
Unrestricted
Funds
2023
£
861,460
861,460
(18,673)
(837,416)
(856,089)
5,371
5,371
225,394
230,765		 Total
Unrestricted
Funds
2022
£
802,733
802,733
(4,688)
(783,234)
(787,922)
14,811
14,811
210,583
225,394

This page does not form part of the statutory financial statements. Page 28

Expectations (UK)

Detailed Statement of Financial Activities for the Year Ended 30 September 2023

Income and Endowments from:
Donations and legacies (analysed below)
Total income
Expenditure on:
Raising funds (analysed below)
Charitable activities (analysed below)
Total expenditure
Net income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Total
2023
£
861,460
861,460
(18,673)
(837,416)
(856,089)
5,371
5,371
225,394
230,765		 Total
2022
£
802,733
802,733
(4,688)
(783,234)
(787,922)
14,811
14,811
210,583
225,394

This page does not form part of the statutory financial statements. Page 29

Expectations (UK)

Detailed Statement of Financial Activities for the Year Ended 30 September 2023

Donations and legacies
Committed giving
Raising funds
Building repairs
Charitable activities
Wages and salaries
Staff NIC (Employers)
Staff pensions (Defined contribution) - pension scheme 1
Staff training
HO Wages/Other People Costs
Rent and rates
Light, heat and power
Insurance
Repairs and maintenance
Telephone and fax
Computer software and maintenance costs
Printing, postage and stationery
Trade subscriptions
Hire of plant and machinery (Operating leases)
Sundry expenses
Cleaning
Motor expenses
Travel and subsistence
Advertising
Promotional expenses
Customer entertaining (disallowable for tax)
Accountancy fees
Solicitors fees
Legal and professional fees
Bank charges
Depreciation of plant and machinery
Depreciation of fixtures and fittings
Depreciation of office equipment		 Total
2023
£
861,460
861,460
(18,673)
(18,673)
(117,892)
(92,169)
(2,097)
-
(114,820)
(282,445)
(42,860)
(16,517)
(66,673)
(1,535)
(3,203)
(236)
(774)
(3,339)
-
(11,245)
(100)
(14,880)
(268)
(653)
(482)
(11,172)
(5,994)
(35,462)
(603)
(69)
(11,108)
(820)
(837,416)		 Total
2022
£
802,733
802,733
(4,688)
(4,688)
(163,563)
(16,795)
-
(833)
(121,869)
(292,840)
(37,692)
(17,728)
(41,702)
(1,893)
(3,768)
(2,158)
(13)
(2,198)
(8,779)
(9,241)
(3,646)
-
-
(739)
-
(10,740)
-
(33,372)
(652)
(35)
(12,181)
(797)
(783,234)

This page does not form part of the statutory financial statements. Page 30