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KEY UNLOCKING FUTURES LIMITED
Financial statements for the year ended 31 March 2023
Charity registration number: 1154772 Company registration number: 8699413
DocuSign Envelope ID: 4E0E7D11-5911-4FBA-AF6A-FB0AAED8CF26DocuSign Envelope ID: 417AB17F-9828-4DE2-8343-F270BF4D0E93
Key Unlocking Futures Limited Financial statements for the year ended 31 March 2023
Contents
Members of the board of management and registered office ................................................. 3 Trustees’ report ....................................................................................................................... 4 Statement of Trustees' responsibilities ................................................................................. 14 Independent auditor’s report to members of Key Unlocking Futures Limited ...................... 15 Statement of Financial Activities ........................................................................................... 22 Balance Sheet as at 31 March 2023 ..................................................................................... 23 Notes to the financial statements for the year ended 31 March 2023 .................................. 24
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Key Unlocking Futures Limited Financial statements for the year ended 31 March 2023
Members of the board of trustees and registered office
Charitable Trustees
Anne-Marie Bancroft Ronald Barham Lynne Cubbin Chair Esme Davies Kaye Grogan Resigned 5 June 2023 Michelle Hallmark Deputy Chair Resigned 6 February 2023 Samantha Haslam Chris Rasburn Appointed 27 September 2022 Resigned 18 April 2023 Neil Townsend Company Secretary Progress Housing Group Limited Principal office Unit 2 Balfour Court, Leyland, Lancashire, PR25 2TF Registered office Sumner House, 21 King Street, Leyland, Lancashire, PR25 2LW Auditors BDO LLP, 3 Hardman Street, Manchester, M3 3AT Company details Registered charity number: 1154772 Company number: 8699413
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Key Unlocking Futures Limited Financial statements for the year ended 31 March 2023
Trustees’ report
Memorandum and Articles of Association
Key Unlocking Futures Limited (Key) is governed by its Articles of Association.
Strategic report
Objects
Key’s objects (Objects) are specifically restricted to the following:
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the prevention or relief of poverty for those who are vulnerable or homeless and are in conditions of need, hardship and distress;
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the relief of those in need who are vulnerable or homeless and in conditions of need, hardship or distress;
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the advancement of education of the public generally on issues affecting the said beneficiaries; and
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the advancement of citizenship or community development.
Key has been successful in delivering its strategic objectives set out in its business plan. Key has met and achieved all its key performance indicators. Key’s trustees have reviewed the key performance indicators and these have been adapted for the year ahead.
Mission and values
Mission
Helping people build better lives.
Aims
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Key will continue to build a strong and adaptable organisation working in partnership with like-minded organisations.
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Key remains focused on person led approaches to build resilient individuals so that they can move through difficult times.
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Key will continue to provide high quality support by asking people who use our services and stakeholders if we are getting it right, as well as providing learning opportunities across the team.
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Key will grow its services across Lancashire in order to work with more people to alleviate growing needs.
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Key Unlocking Futures Limited Financial statements for the year ended 31 March 2023
Trustees’ report (continued)
Missions and values (continued)
Values
Value 1: Putting people first
Value 2: Working in partnership
Value 3: Delivering quality services Value 4: Being a great place to work Value 5: Looking to the future
Public benefit
The charitable work that Key undertakes is to provide services to people who are in need, hardship or distress due to homelessness or the threat of homelessness and to provide a range of services that relieve these conditions and promote their health and wellbeing. In addition, the Objects of the charity are progressed by delivery of services to vulnerable people that find themselves in conditions of need or distress due to their family or personal circumstances.
The charity provides these services free at the point of access, which ensures that its service users are not prohibited from access to services on the basis of cost. Many of the services can only be accessed by specified referral routes. Systems are in place to ensure that all referrals accepted are in line with Key’s charitable objectives.
The benefits of Key’s services to its clients include:
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access to safe, affordable accommodation, either short or long term, thereby avoiding the dangers of unsafe sofa surfing or rough sleeping;
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refuge accommodation for women and families fleeing domestic abuse and domestic abuse outreach services;
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promoting understanding of what is healthy and unhealthy in relationships;
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providing support for young people and adults who have experienced homelessness in supported housing accommodation;
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appropriate support, advocacy and information and life skills training to tenants, enabling them to maintain and keep a tenancy and avoid the ‘revolving door’ syndrome of repeat homelessness;
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Key Unlocking Futures Limited Financial statements for the year ended 31 March 2023
Trustees’ report (continued)
Public benefit (continued)
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mediation/family therapy enabling a return to a better family situation, reducing the risk of homelessness and family conflict;
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exploring difficulties through therapy to help focus on a more positive future;
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learning about options for training and employment with the support of an employment coach and so achieving greater confidence and self-sufficiency;
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improving emotional health and wellbeing by working on a range of creative strategies to build resilience of young people and their families;
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working with children and families to offer specialist support for children with autism so that families can improve their knowledge and strategies to help children and young people have a brighter future;
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running a range of community activities from The Base in Leyland; and
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providing access high quality food at a low cost through The Base-One Stop.
The trustees ensure through their business planning and policy decisions that the work of Key meets both its charitable Objects and its public benefit obligations.
The trustees have due regard to guidance produced by the Charity Commission.
Financial Review
Income has increased significantly from £1,033k in 2021/22 to £1,257k in 2022/23. Costs have increased from £884k, to £1,110k resulting in net income of £147k (2021/22 £149k). Much of this increase relates to the domestic abuse services that was transferred into Key part way through the previous financial year being managed in Key for a full year as well as an increase in the size of the tenant support team. Total funds are £868k at 31 March 2023 (31 March 2022 £722k).
The emotional health and wellbeing contract continues to be the funding stream where income can vary the most. This is due to the payment by results nature of the contract. The trustees have continued to focus on ensuring that sufficient cash flow is available to cover related costs.
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Key Unlocking Futures Limited Financial statements for the year ended 31 March 2023
Trustees’ report (continued)
Organisational structure
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Board of Trustees (8)
Director of Key
Operational Managers (4)
Support Services
Manager/Senior Support
Workers
(3)
Support Workers (39) Volunteers (20)
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The organisational structure above details the number of personnel employed and managed by Key.
Key is linked to Progress Housing Group (the Group) by way of a Grouping Deed. Key’s Board of Trustees (the board) retains responsibility for establishing Key’s strategic direction and setting and managing its budget. This being said, should the board fail to manage the charity effectively, the Grouping Deed sets out how Progress Housing Group Limited (the Parent) can step in to rectify the situation or to make any changes.
The Group has two sub committees, Group Audit Committee and Remuneration and Nominations Committee which support all Group companies including Key. In order to manage Key effectively within a group structure, Key works within the Group’s wider financial regulations as well as having adopted a number of the Group’s policies and procedures.
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Key Unlocking Futures Limited Financial statements for the year ended 31 March 2023
Trustees’ report (continued)
Organisational structure (continued)
As Key has grown in size the board made a decision in March 2022 that it was now more appropriate to adopt the Charity Governance Code for larger charities and this replaces the Charity Governance Code for smaller charities. Key will continue to report compliance annually against its principles and key outcomes.
New trustees
New trustees are recruited using an open and transparent recruitment process that meets best practise with appropriate induction and training provided on appointment.
Significant activities
Key’s largest source of funding is to deliver an early intervention service to improve children and young people’s emotional health and wellbeing. This is funded by Lancashire County Council. This service has a significant ‘payment by results’ element. The staffing used to deliver this service is predominantly of a therapeutic nature. Key provides services in a partnership led by Child Action North West.
Key has successfully secured funding from a range of funders including South Ribble Borough Council, the Lancashire Environmental Fund and Progress Housing Group to remodel two vacant shops on the Broadfield Estate in Leyland to form a new Community Centre. This is due to be completed in summer 2023 and will add to the facilities already on offer at The Base.
During the year Key continued to manage three supported housing schemes for people who have experienced homelessness: Foundations/Inn2 in Preston for people of all ages and The Bridge and Parker House in Chorley which house young people.
Key continues to manage the refuge services in South Ribble and Chorley as well as the outreach service ‘Safe at Home’. These services are funded by Lancashire County Council as part of a partnership led by Safenet. Key has submitted an application to Women’s Aid for Accreditation which will be assessed in 2023/24.
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Key Unlocking Futures Limited Financial statements for the year ended 31 March 2023
Trustees’ report (continued)
Significant activities (continued)
South Ribble and Chorley Borough Councils support drop in services that work with young people who are at risk of or are experiencing homelessness.
Key’s employment support is now funded as part of the More Positive Together- Steps programme in partnership with Active Lancashire.
Key has delivered tenancy related support to those placed in interim/temporary accommodation funded by Fylde Borough Council. It has been jointly agreed to bring this service to an end in March 2023.
Over the last year Key has continued to be funded by Progress Housing Group to provide critical tenancy support to tenants who are at high risk of losing their tenancies.
During the year Key administered a new tenant support fund on behalf of Progress Housing Group. This is part of the Group’s response to the challenges their residents face that have been exacerbated by the current cost of living crisis.
Key has supported South Ribble and Chorley Borough Councils distribution of Household Support and Practical Support Funding to those most in need.
Key performance indicators
Key has continued the approach to performance management adopted last year; it includes the quantitative indicators below but this is now supplemented by a range of qualitative information which offers greater insight. The trustees are delighted to report Key has outperformed its metrics in all areas during 2022/23.
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Key Unlocking Futures Limited Financial statements for the year ended 31 March 2023
Trustees’ report (continued)
Key performance indicators (continued)
| Performance indicator | Target | Actual |
|---|---|---|
| % of service users who rate Key as good or excellent | 95% | 100% |
| % of service users who show an improvement in their wellbeing | 90% | 99% |
| % of service users where homelessness is prevented (where applicable) |
75% | 99% |
| % of people receiving employment coaching who have gone into employment, training or education |
75% | 93% |
| % of people who have sustained employment, education or training for at least 3 months |
80% | 87% |
| % of cases where increased communication and reduced conflict is reported following family therapy/mediation |
95% | 100% |
| % of Safeguarding Incident Reports completed within a 24 hour timescale |
90% | 96% |
Principal funding sources
The principal funding source for Key is funding income from Lancashire County Council. In addition Key receives funding from South Ribble, Chorley and Fylde Borough Councils, Progress Housing Group, the European Social Fund, the Office of the Police and Crime Commissioner and a number of grant making foundations. Key has started to diversify its funding streams and this includes a number of corporate donations during the year. This is an ongoing task as none of Key’s income is long term. Key is grateful to the corporate donors who have supported it during the financial year. Key is pleased to have received funding from Lancashire and South Cumbria Integrated Care Board during the year and hopes that this will be a source of increased funding in the years ahead.
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Key Unlocking Futures Limited Financial statements for the year ended 31 March 2023
Trustees’ report (continued)
Investment policy
Aside from retaining a prudent amount of reserves each year, most of Key’s funds are to be spent in the short-term and therefore Key does not retain any funds for long-term investment.
Reserves policy
The board has examined Key’s requirements for reserves considering the main risks to the organisation. It has established a policy whereby reserves are held to cover redundancy, sickness and running costs at a level between three and six months. The reserves are needed to meet the working capital requirements of Key which are significant especially with the continuation of the payment by results contract. In addition the trustees have designated £40,000 towards the development costs of The Base Mark 2 (a new community centre).
Going concern
The trustees continue to adopt the going concern basis of accounting after considering Key’s financial position at 31 March 2023, its long term financial plan, its reserves policy and risk management as detailed in this report. Contract retention continues to be good, however, when contracts are lost Key’s management is able to take immediate action to reduce costs, reflecting the loss of income. On this basis, the trustees have a reasonable expectation that Key has adequate resources to continue in operational existence for the foreseeable future.
Future plans
Key has been successful in diversifying its services and will maintain a clear focus on providing high quality, flexible, individually tailored services during the next financial year.
In the year ahead Key will remodel the tenancy sustainability services that it provides to Progress Housing Group’s tenants to ensure that an early intervention approach is implemented. This will mean that tenants with medium to high needs will be supported by Key at any point throughout their tenancy journey with a pre-tenancy assessment identifying those likely to need additional support prior to sign up.
Key will be remodelling the provision at Inn2 in Preston to provide six supported flats for care leavers as well as working to achieve OFSTED registration for both Parker House and The Bridge in Chorley.
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Key Unlocking Futures Limited Financial statements for the year ended 31 March 2023
Trustees’ report (continued)
Future plans (continued)
Key will open its new community centre on the Broadfield Estate which will provide facilities for Key to expand its community offer.
Key will be expanding its therapeutic offer with new funding from Lancashire and South Cumbria ICB. This will include 1:1 counselling as well as group work to improve emotional wellbeing.
Key will continue to deliver on its expanded geographic footprint next year as part of a partnership that will deliver emotional health and wellbeing services commissioned by Lancashire County Council. Key will deliver these services across Lancashire.
Risk management
The board has conducted a review of major risks to which Key is exposed. Key maintains a strategic risk register which is updated on a regular basis. Where appropriate, systems or procedures have been established to mitigate the risks that it faces. The business plan highlights the need to diversify funding streams and there has been some success with this ongoing task. This year inflationary pressure has made it more difficult to recruit talent. In February 2023 the board agreed to a 7% cost of living pay increase. It is hoped that this will make recruiting the right staff easier.
Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. These have been strengthened as a result of becoming part of the Group. In addition, Key has retained its Investors in People (IIP) accreditation as part of the Group.
Procedures are in place to ensure compliance with health and safety of staff, volunteers and people supported by Key’s services and visitors to its premises. Key is operating a hybrid way of working with significant level of home working for some. People are receiving support remotely as well as in person.
Key has been successful in retaining ISO 9001 compliance alongside other members of the Group. Key is committed to the on-going evaluation of all its services including undertaking a wide range of stakeholders’ reviews.
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Key Unlocking Futures Limited Financial statements for the year ended 31 March 2023
Trustees’ report (continued)
Risk management (continued)
Governance
The board reviews the performance of individual trustees, including the Chair, on an annual basis. The 2022/23 appraisal process was internally facilitated. The board has set time aside to consider its effectiveness during meetings held throughout 2022/23, with a focus on improving Governance Wheel scores.
Following its annual review of Key’s compliance with the provisions of ‘the Charity Governance Code for larger charities’, the board has concluded that it meets the principles set out within the code. The board is committed to continuous improvement and further embedding the requirements of the code.
Statement of disclosure to the auditors
At the time of approval of this report:
a) so far as the board is aware, there is no relevant audit information of which Key's auditor is unaware; and
b) the board has taken all steps that they ought to have taken in order to make themselves aware of any relevant audit information and to establish that Key's auditor is aware of that information.
Annual General Meeting
The Annual General Meeting of Key Unlocking Futures Limited will be on 27 September 2023.
Approved by order of the trustees and signed by order of the trustees.
Lynne Cubbin
Trustee
26 July 2023
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Key Unlocking Futures Limited Financial statements for the year ended 31 March 2023
Statement of trustees' responsibilities
The trustees are responsible for preparing the Trustees’ report and the financial statements in accordance with applicable law and regulations.
Company law requires the trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period.
In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and apply them consistently;
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make judgements and accounting estimates that are reasonable and prudent; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Financial statements are published on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity’s website is the responsibility of the trustees. The trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein.
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Key Unlocking Futures Limited Financial statements for the year ended 31 March 2023
Independent auditor’s report to members of Key Unlocking Futures Limited
Opinion on the financial statements
In our opinion, the financial statements:
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give a true and fair view of the state of the Charitable Company’s affairs as at 31 March 2023 and of its incoming resources and application of resources for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements of Key Unlocking Futures Limited (“the Charitable Company”) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We remain independent of the Charitable Company in accordance with the ethical requirements 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.
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Key Unlocking Futures Limited Financial statements for the year ended 31 March 2023
Independent auditor’s report to members of Key Unlocking Futures Limited (continued)
Conclusions related to going concern
In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charitable Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Other information
The Trustees are responsible for the other information. The other information comprises the information included in the Trustees Report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is 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.
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Key Unlocking Futures Limited Financial statements for the year ended 31 March 2023
Independent auditor’s report to members of Key Unlocking Futures Limited (continued)
Other Companies Act 2006 reporting
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Trustees’ Report, which includes the Directors’ Report prepared for the purposes of Company Law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the Directors’ Report, which are included in the Trustees’ Report, has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Trustees’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion;
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of Directors’ remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.
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Key Unlocking Futures Limited Financial statements for the year ended 31 March 2023
Independent auditor’s report to members of Key Unlocking Futures Limited (continued)
Responsibilities of Trustees
As explained more fully in the Trustees’ responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the Charitable Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Charitable Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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.
Extent to which the audit was capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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Key Unlocking Futures Limited Financial statements for the year ended 31 March 2023
Independent auditor’s report to members of Key Unlocking Futures Limited (continued) Auditor’s responsibilities for the audit of the financial statements (continued)
Non-compliance with laws and regulations
Based on:
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Our understanding of the Charitable Company and the sector in which it operates;
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Discussion with management and those charged with governance;
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Obtaining and understanding of the Charitable Company’s policies and procedures regarding compliance with laws and regulations; and
we considered the significant laws and regulations to be the applicable accounting framework, UK tax legislation.
The Charitable Company is also subject to laws and regulations where the consequence of noncompliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be the health and safety legislation.
Our procedures in respect of the above included:
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Review of minutes of meeting of those charged with governance for any instances of noncompliance with laws and regulations;
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Review of correspondence with regulatory and tax authorities for any instances of noncompliance with laws and regulations;
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Review of financial statement disclosures and agreeing to supporting documentation;
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Involvement of tax specialists in the audit;
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Review of legal expenditure accounts to understand the nature of expenditure incurred.
Fraud
We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:
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Enquiry with management and those charged with governance regarding any known or suspected instances of fraud;
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Obtaining an understanding of the Charitable Company’s policies and procedures relating to:
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Key Unlocking Futures Limited Financial statements for the year ended 31 March 2023
Independent auditor’s report to members of Key Unlocking Futures Limited (continued)
Auditor’s responsibilities for the audit of the financial statements (continued)
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Detecting and responding to the risks of fraud; and
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Internal controls established to mitigate risks related to fraud.
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Review of minutes of meeting of those charged with governance for any known or suspected instances of fraud;
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Discussion amongst the engagement team as to how and where fraud might occur in the financial statements;
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Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
Based on our risk assessment, we considered the areas most susceptible to fraud to be charitable income.
Our procedures in respect of the above included:
- Testing a sample of journal entries throughout the year, which met a defined risk criteria, by agreeing to supporting documentation;
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at:
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Key Unlocking Futures Limited Financial statements for the year ended 31 March 2023
Independent auditor’s report to members of Key Unlocking Futures Limited (continued)
Auditor’s responsibilities for the audit of the financial statements (continued)
https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the Charitable Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charitable Company’s members those matters we are required to state to them in an 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 members as a body, for our audit work, for this report, or for the opinions we have formed.
Hamid Ghafoor
(Senior Statutory Auditor)
For and on behalf of BDO LLP, statutory Auditor Manchester, UK
Date 01 August 2023
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
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Key Unlocking Futures Limited Financial statements for the year ended 31 March 2023
Statement of Financial Activities
| Note Income from: Donations 2 Investments 3 Charitable activities 4 Total Expenditure on: Charitable activities 5 Governance costs 5 Total Net income for the year Net movement in funds Reconciliation of funds Funds brought forward 11 Movement of funds in the year 11 Total funds carried forward 11 |
Unrestricted funds Restricted funds Total funds Total funds 2023 2023 2023 2022 £ £ £ £ 18,208 - 18,208 9,731 3,195 - 3,195 273 1,054,677 181,340 1,236,017 1,022,778 |
|---|---|
| 1,076,080 181,340 1,257,420 1,032,782 (929,835) (177,460) (1,107,295) (880,872) (3,196) - (3,196) (3,034) |
|
| (933,031) (177,460) (1,110,491) (883,906) |
|
| 143,049 3,880 146,929 148,876 143,049 3,880 146,929 148,876 |
|
| 714,361 7,139 721,500 572,624 143,049 3,880 146,929 148,876 |
|
| 857,410 11,019 868,429 721,500 |
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Key Unlocking Futures Limited Financial statements for the year ended 31 March 2023
Balance Sheet
| As at 31 March 2023 Note Current assets: Debtors 9 Cash and cash equivalents Total current assets Liabilities: Creditors: Amounts falling due within one year 10 Net current assets The funds of the charity: Restricted funds Unrestricted funds Total charity funds 11 |
Total Total funds funds 2023 2022 £ £ 180,509 120,837 917,287 710,665 |
|---|---|
| 1,097,796 831,502 (229,367) (110,002) |
|
| 868,429 721,500 |
|
| 11,019 7,139 857,410 714,361 |
|
| 868,429 721,500 |
The notes on pages 24 to 30 form an integral part of the financial statements.
The financial statements on pages 22 to 23 were approved by the board on 26 July 2023 and were signed on its behalf by:
Lynne Cubbin Neil Townsend Deborah Atherton Trustee Trustee On behalf of Progress Housing Group Limited
Company number: 8699413
Date: 26 July 2023
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Key Unlocking Futures Limited Financial statements for the year ended 31 March 2023
Notes to the financial statements for the year ended 31 March 2023
1 Accounting policies and basis of accounting Key Unlocking Futures limited is a private company limited by guarantee registered in England company number 8699413 and is a registered charity number 1154772.
(a) Fund accounting
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity.
Designated funds are unrestricted funds earmarked by the board for specific purposes and for the management of financial risk.
Restricted funds are subjected to restrictions on their expenditure imposed by the donor.
(b) Basis of accounting
The financial statements are prepared on an accruals basis in accordance with applicable financial reporting standards in the UK, FRS102 and the Charities Statement of Recommended Practice (SORP) issued in 2019.
(c) Incoming resources
All incoming resources are included in the Statement of Financial Activities on an accruals basis relating to the period of the financial statements. Where income is subject to certain performance conditions, income is recognised when the conditions are met.
(d) Resources expended
All expenditure is included in the Statement of Financial Activities on an accruals basis relating to the period of the financial statements.
(e) Going concern
The charity’s activities with the factors likely to affect its future development and position are set out in the Trustees’ report. On the basis of their assessment of the charity’s financial position, its long term financial plan, its reserves policy, risk management and the impacts of high inflation, interest rates and the ongoing conflict in Ukraine, the trustees have a reasonable expectation that the charity will be able to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
(f) Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
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Key Unlocking Futures Limited Financial statements for the year ended 31 March 2023
Notes to the financial statements for the year ended 31 March 2023 (continued)
(g) Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported as assets and liabilities as at the Balance Sheet date and the amounts reported as revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The trustees do not consider there to be any significant estimates or judgements in the preparation of the financial statements.
2 Donations
| Private and corporate donations | Unrestricted Unrestricted 2023 2022 £ £ 18,208 9,731 |
|---|---|
3 Investment income
Investment income is interest earned from a savings account from which funds are immediately accessible.
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Key Unlocking Futures Limited Financial statements for the year ended 31 March 2023
Notes to the financial statements for the year ended 31 March 2023 (continued)
4 Incoming resources from charitable activities
| Emotional health Homelessness Healthy relationships / domestic abuse Local Authority commissioners Progress Housing Association tenancy sustainability Community development Santander Active Lancashire - MPT Steps (ESF) Other Children in Need Financial inclusion Merriweather grant Big Lottery Help through Crisis Fund |
Unrestricted Restricted Total 2023 2023 2023 £ £ £ 342,246 - 342,246 307,162 - 307,162 96,255 52,184 148,439 73,335 71,800 145,135 106,141 - 106,141 65,821 6,806 72,627 - 40,000 40,000 35,627 - 35,627 19,842 50 19,892 - 10,500 10,500 8,248 - 8,248 - - - - - - |
Unrestricted Restricted Total 2022 2022 2022 £ £ £ 384,330 - 384,330 264,543 - 264,543 33,438 16,856 50,294 80,236 15,000 95,236 82,416 - 82,416 54,168 7,925 62,093 - - - 9,004 - 9,004 5,182 4,591 9,773 - 28,808 28,808 8,000 - 8,000 17,611 - 17,611 - 10,670 10,670 |
|---|---|---|
| 1,054,677 181,340 1,236,017 |
938,928 83,850 1,022,778 |
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Key Unlocking Futures Limited Financial statements for the year ended 31 March 2023
Notes to the financial statements for the year ended 31 March 2023 (continued)
5 Total resources expended
| Activities undertaken directly Staff costs Travel Other project costs Support costs General office costs Staff costs Training Premises Bank charges |
Unrestricted Restricted Governance Total Unrestricted Restricted Governance Total 2023 2023 2023 2023 2022 2022 2022 2022 £ £ £ £ £ £ £ £ 630,808 73,967 - 704,775 527,331 39,762 - 567,093 10,531 500 11,031 10,499 291 10,790 8,000 79,590 - 87,590 20,757 23,826 - 44,583 40,949 11,952 - 52,901 37,201 4,595 - 41,796 230,243 11,451 3,196 244,890 201,972 8,357 3,034 213,363 3,768 - - 3,768 2,959 - - 2,959 5,036 - - 5,036 2,844 - - 2,844 500 - - 500 478 - - 478 |
|---|---|
| 929,835 177,460 3,196 1,110,491 804,041 76,831 3,034 883,906 |
Total costs include auditors’ remuneration of £4,400 (exclusive of VAT) (2022: £4,000).
| 6 Wages and salaries Wages and salaries Social security costs Other pension costs Total |
2023 2022 £ £ 853,321 703,949 73,991 58,862 21,808 18,263 |
|---|---|
| 949,120 781,074 |
No employees received emoluments of more than £60,000.
The average number of persons employed during the year was
| 2023 | 2022 |
|---|---|
| 32 | 26 |
Full time equivalents are calculated based on a standard working week of 36.5 hours for all employees. The services of 20 volunteers were used in the performance of charitable activities during the year.
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Key Unlocking Futures Limited Financial statements for the year ended 31 March 2023
Notes to the financial statements for the year ended 31 March 2023 (continued)
7 Trustee remuneration and related party transactions
There were nil expenses (2022: £nil) paid to any members of the board during the year.
During the year the charity had the following intra-group transactions with companies controlled by Progress Housing Group Limited, the ultimate parent company.
| Purpose | Payment to | Payment from | 2023 | 2022 |
|---|---|---|---|---|
| £ | £ | |||
| Charitable activities | Key Unlocking Futures | Progress Housing | 318,444 | 251,053 |
| Association Ltd | ||||
| Corporate services | Progress Housing Group Ltd Key Unlocking Futures | 30,000 | 24,000 | |
| received |
Related party transactions between Key Unlocking Futures Ltd and Progress Housing Association Ltd consist of critical tenancy support, tenancy sustainability, a community development project, use of premises and management fees associated with single homeless schemes, the refuge and income collection.
At the end of the year £22,323 was owed by companies controlled by Progress Housing Group Limited to Key Unlocking Futures Limited (2022: £40,738 owed).
8 Taxation
As a charity, Key Unlocking Futures Limited is exempt from tax on income and gains falling within sections 466 to 493 of the Corporation Tax Act 2010 or s256 of the Taxation of Charitable Gains Act 1992 to the extent that these are applied to its charitable objectives.
9 Debtors
Debtors |
|
|---|---|
| Amounts falling due within one year : Prepayments and accrued income Amounts owed by group companies Trade debtors |
2023 2022 £ £ 78,422 24,005 22,323 40,738 79,764 56,094 |
| 180,509 120,837 |
Amounts owed by group companies are repayable on demand and do not attract interest.
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Key Unlocking Futures Limited Financial statements for the year ended 31 March 2023
Notes to the financial statements for the year ended 31 March 2023 (continued)
10 Creditors: amounts falling due within one year
| 0 Creditors: amounts falling due within one year |
|
|---|---|
| Accruals and deferred income Employer liabilities Trade creditors |
2023 2022 £ £ 200,570 91,472 24,123 18,430 4,674 100 |
| 229,367 110,002 |
Standard payment terms are 30 days from the date of invoice.
Included in the accruals and deferred income is £24,548 unrestricted and £128,000 restricted income (2022: £40,478 and £40,000) which relates to income received that will fund activities commencing April 2023.
11 Movement in funds
Restricted reserves Unrestricted reserves - designated Unrestricted reserves - general funds Total funds Restricted reserves Unrestricted reserves - designated Unrestricted reserves - general funds Total funds |
1st April 2022 Increase in funds Transfers between 31st March 2023 in the year funds £ £ £ £ 7,139 3,880 - 11,019 639,290 - 144,877 784,167 75,071 143,049 (144,877) 73,243 |
|---|---|
| 721,500 146,929 - 868,429 |
|
| 1st April 2021 Increase in funds Transfers between 31st March 2022 in the year funds £ £ £ £ 120 7,019 - 7,139 572,504 - 66,786 639,290 - 141,857 (66,786) 75,071 |
|
| 572,624 148,876 - 721,500 |
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Key Unlocking Futures Limited Financial statements for the year ended 31 March 2023
Notes to the financial statements for the year ended 31 March 2023 (continued)
There have been no transfers from these reserves for any purpose other than those for which the reserve was created. Surplus transferred to designated reserves is in line with the charity’s reserves policy.
12 Cash flow
Under FRS102 the Trustees have not published a cash flow as a cash flow statement is produced for the Group consolidated accounts.
13 Ultimate Parent company
Progress Housing Group Limited is the ultimate parent company of Key Unlocking Futures Limited. Progress Housing Group Limited IP28685R consolidated financial statements can be obtained from the Group's website or from the Company Secretary at the registered office:
Sumner House
21 King Street Leyland
Lancashire
PR25 2LW
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