**Charity registration number 1156746**
**Company registration number 08819740 (England and Wales)**
## **RENTSTART (UK) LTD**
## **ANNUAL REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2023**
## **RENTSTART (UK) LTD**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Ms S A Seery||
|---|---|---|
||Mr L Holmes||
||Mr N Lucas||
||Mr M Farr||
||Ms C Forrester|(Appointed 6 December 2022)|
|**Secretary**|Mr M Farr||
|**Charity number**|1156746||
|**Company number**|08819740||
|**Registered office**|51-55||
||High Street||
||Walton on Thames||
||Surrey||
||KT12 1DH||
|**Auditor**|Warner Wilde Limited||
||4 Marigold Drive||
||Bisley||
||Surrey||
||United Kingdom||
||GU24 9SF||
|**Bankers**|HSBC Bank Plc||
||34 High Street||
||Walton on Thames||
||Surrey||
||KT12 1DD||
||CAF Bank Limited||
||25 Kings Hill Avenue||
||Kings Hill||
||West Malling||
||Kent||
||ME19 4TA||
## **RENTSTART (UK) LTD**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 3|
|Statement of trustees' responsibilities|4|
|Independent auditor's report|5 - 8|
|Statement of financial activities|9|
|Balance sheet|10|
|Statement of cash flows|11|
|Notes to the financial statements|12 - 23|
## **RENTSTART (UK) LTD**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
The trustees present their annual report and financial statements for the year ended 31 March 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
## **Objectives and activities**
The charity's objects are the relief of poverty and distress and the protection of health among persons within the borough of Elmbridge and adjoining boroughs who are homeless or at risk of becoming homeless by providing and assisting in the provision of housing, advice, support and practical assistance and by such other means as the trustees may in their absolute discretion think fit. T here has been no change in these during the year.
## **Public Benefit**
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. All Board Members give their time freely and no remuneration was paid to Board Members. The Charity has Trustee liability insurance cover.
## **Achievements and performance**
Rentstart (UK) Ltd is a non-profit making organisation. Our state of affairs and financial results for the year are as shown by these accounts. We operate from an office in Walton on Thames, Surrey.
Rentstart (UK) Ltd changed its name from Elmbridge Rentstart (UK) Ltd on 18 August 2020.
The unrestricted income and expenditure fund, which finances our running costs, shows a deficit of £15,978 (2022 deficit of 126,697). The Fund totalled £209,054 at 31st March 2023 (2022 £225,032).
Our aim remains to house and support local homeless people. We not only house our clients, we provide rent in advance, deposits and then on-going training and support (with a focus on financial literacy and employment) that enables them to become established and move on with their lives. During the onset of the Cost-of-Living Crisis, Rentstart had to adapt to a changing face of homelessness bringing a broader range of situations to us. This has included an increase in older people, as well as a larger quantity of people in vulnerable financial positions.
It is important to note that our accounts present a slightly skewed view of our Charity. As mentioned later in this report we directly manage a significant number of rental properties to ensure quality housing is available for our clients and have taken on direct management of rental properties to be able to provide enough quality housing for our clients. This means that we are collecting in rents, and then paying them out to property owners. Of our total expenditure of £1,248,156, £686,599 is related to our property work and £551,259 reflects our client support work costs with the small balance remaining (£10,298) supporting the costs of our fundraising.
- 1 -
## **RENTSTART (UK) LTD**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
Over the last 12 months we have given advice to 722 people and have gone on to house 121 local people. Alongside housing and supporting new clients this year, we have needed to support clients housed in previous years as the Cost-of-Living Crisis added new pressures to clients who we had helped through the pandemic. In total we have needed to support an additional 100 people whom we housed in past years. This year we have still seen significant issues with supporting housed clients to remain safely housed compared to pre-pandemic years. The Cost-of-Living Crisis has meant clients experienced increased anxiety, faced additional debt issues, struggled to access benefits in a timely fashion, and needed high amounts of group and one-to-one support from our team in order to prevent a return to homelessness.
Our clients this past year have again faced numerous issues, 35% had reported that they had slept rough, 9% have reported criminal records, 30% have reported drug and/or alcohol issues and over a third reported to us that they have mental health issues. We are delighted that 29% of tenants found employment, and that 91% remain housed. We are especially proud of our statistics that show the number of people who are still housed, this is directly attributable to a huge amount of work delivered by our team in helping our clients with both practical and emotional support enabling our clients to sustain their tenancies. The Trustees are most grateful to our staff, volunteers and funders, without whom our work would not be possible.
## **Financial review**
Reserves need to be held to enable an orderly winding down of the Charity's affairs if adequate funding is no longer available. The Trustees have resolved that the Unrestricted Income and Expenditure Fund should be held at a level between 25% and 50% of total annual expenditure (excluding property management expenses and claims).
At 31 March 2023, the Fund held £176,812 (2022 £199,000) in unrestricted reserves. This equates to 31.4% (2022 37%) of our current annual running costs (excluding property management fees). Restricted reserves total £32,242 (2022 £26,032) which are to be spent on specific projects during 2023/24. In 2022/23 we have finished the financial year with a slight deficit of £15,978.
## **Risk Management**
The Trustees regularly review the risks to which the Charity is exposed. A r isk analysis was carried out during the year. The principal areas of risk are as follows:
Loss of key management Loss of core funding Excessive guarantee claims Risk to staff in dealing with clients Loss of office accommodation
The Trustees are satisfied that appropriate action has been taken to minimise the risks to the Charity and its staff.
## **Structure, governance and management**
The charity is a company limited by guarantee.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Ms S A Seery Mr L Holmes Mr N Lucas Mr M Farr Ms C Forrester (Appointed 6 December 2022)
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
- 2 -
RENTSTART (UK) LTD
TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
Organi5ation
The Charity is run by its members (as Trustees) in general meetings. Power nay be delegated to one or more
Trustees or group5 of TTUStees to manage the employees of the Charity and its day to day operations, subject lo
the overall supervision of the Trustees in general meeting. The Trustees meet in general meeting five b.mes
year to review progress and lake corrective action as required. This year the trustses have adopted a code of
governance based on the Charity Commission's own code.
Auditor
The auditor. Wamer Wilde knmited. is deemed to be reappointed under Section 487(2) of the Companies Act
2006.
The tiustees'yeFort was approved by the Board of Trustee8.
Mr N Lucas
TruslÈe
Cg
## **RENTSTART (UK) LTD**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
The trustees, who are also the directors of Rentstart (UK) Ltd for the purpose 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).
Company Law requires the trustees to prepare financial statements for each financial year which 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 charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that 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.
- 4 -
## **RENTSTART (UK) LTD**
## **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF RENTSTART (UK) LTD**
## **Opinion**
We have audited the financial statements of Rentstart (UK) Ltd (the ‘charity’) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice) .
In our opinion, the financial statements:
- 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;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the _Auditor's responsibilities for the audit of the financial statements_ section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
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 charity’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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
- 5 -
## **RENTSTART (UK) LTD**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF RENTSTART (UK) LTD**
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the trustees' r eport; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the s tatement of trustees' r esponsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity’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 section 144 of the Charities Act 2011 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.
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:
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below .
- 6 -
## **RENTSTART (UK) LTD**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF RENTSTART (UK) LTD**
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
## **The Extent to which the audit was considered capable of detecting irregularities including fraud**
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the charity through discussions with trustees and other management, and from our knowledge and experience of the charity and sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, the Charities Act 2011, Companies Act 2006, taxation legislation, data protection, employment, environmental and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
testing controls with walk through procedures and substantive transaction testing;
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining any accounting estimates were indicative of potential bias;
investigated the rationale behind significant or unusual transactions; and
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims;
reviewing correspondence with HMRC and relevant regulators such as the Charity Commisison
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
- 7 -
RENTSTART (UK) LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF RENTSTART(UK) LTD
This report made solely to Ihe company's members, as a body, in accordance with section 391 of the
Companies Act 2014. Our audit work has been undertaken so that we might state to the company's members
those matters we are required to state to them in an auditOT'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 company and the
company's members as a bool, for our audit work, for this report, or for the opinions we have formed.
FJ lde FCCA DChA (Senior Ststutory Audi*r)
For and on behalf of Wamer Wilde Lmnited
ststutory Auditor
4 Marigold Drive
BleY
Surrey
United Kingdom
GU24 9SF
WaTner Wilde Limited is eligible for appnIrnent as auditor of the charity by virtue of its eligibilty for appointment
as auditor of a company und&r section 1212 of the Companies Act 2006.
## **RENTSTART (UK) LTD**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2023**
**2023**
**Notes**
**£**
**£**
**Income from:**
Donations
**3**
65,321
331,440
Income from Rental
Properties
**4**
839,225
(2,071)
Investments
**5**
265
-
**Total income**
904,811
329,369
**Expenditure on:**
Raising funds
**6**
10,253
45
Charitable activities
Support for Clients
**7**
228,555
322,704
Rental Property
Expenses
**7**
686,190
409
**Total charitable expenditure**
914,745
323,113
**Total expenditure**
924,998
323,158
Net gains/(losses) on
investments
**11**
(2,002)
-
Gross transfers
between funds
-
-
**Net movement in funds**
(22,189)
6,211
Fund balances at 1 April 2022
199,001
26,031
**Fund balances at 31 March**
**2023**
176,812
32,242|**Total Unrestricted**
**Restricted**
**funds**
**funds**
**2023**
**2022**
**2022**
**£**
**£**
**£**
396,761
73,154
192,762
837,154
881,329
-
265
152
-
1,234,180
954,635
192,762
10,298
12,314
-
551,259
209,431
310,192
686,599
753,895
-
1,237,858
963,326
310,192
1,248,156
975,640
310,192
(2,002)
11,738
-
-
5,947
(5,947)
(15,978)
(3,320)
(123,377)
225,032
202,320
149,409
209,054
199,000
26,032|**Total**
**2022**
**£**
265,916
881,329
152
1,147,397
12,314
519,623
753,895
1,273,518
1,285,832
11,738
-
(126,697)
351,729
225,032|
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
- 9 -
RENTSTART (UK) LTD
BALANCE SHEET
ASA T31 MARCH 2023
2023
22
Notes
Fixed assets
Investments
12
52,661
119,035
Current assets
Debtors
Cash at bank and in hand
14
117,635
124.872
106.848
83,058
242,507
189.906
Creditors: amounts falling due within
one year
Is
186,1141
183,9091
Net current assets
156,393
105.997
Totsl assets less current IFabilities
209.054
225.032
Income funds
Restricted fvnds
Unrestricted fiJnds- general
18
32,242
176.812
26.032
199,000
209,054
225,032
The company is entitted to the exemption from the audit requirement contained in section 477 of the Companies
Act 2006, for the year ended 31 March 2023, although an audit has been carried out under section 144 of the
Charities Act 2011.
The directors aCknoedge their responsibilities for complying wth the requirements of the Companies Aot 2006
ith Tespect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its ffinancial statements under the
requirements of the Companies Act 2006, for the year In question in accordance wilh section 476.
These financial Statements have been prepared in accwdance the provisions appll¢able to companies
Subject to the small companies regime.
The finanual sts
ments were approved by the Tru8tees on
Mr N Lucas
Trustee
Company registration number 08819740
10-
## **RENTSTART (UK) LTD**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**Notes**
**Cash flows from operating activities**
Cash absorbed by operations
**22**
**Investing activities**
Purchase of investments
Proceeds on disposal of investments
Investment income received
**Net cash generated from/(used in)**
**investing activities**
**Net cash used in financing activities**
**Net increase/(decrease) in cash and cash**
**equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2023**
**£**
-
64,372
265|**£**
(22,823)
64,637
-
41,814
83,058
124,872|**2022**
**£**
**£**
(154,763)
(50,000)
-
152
(49,848)
-
(204,611)
287,669
83,058|
|---|---|---|---|
- 11 -
## **RENTSTART (UK) LTD**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **1 Accounting policies**
## **Charity information**
Rentstart (UK) Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is 51-55, High Street, Walton on Thames, Surrey, KT12 1DH.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
## **1.4 Income**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
## **1.5 Expenditure**
A cost is identified when either a legal or constructive obligation is identified. Irrecoverable VAT is charged to the same expenditure category as the corresponding cost.
- 12 -
## **RENTSTART (UK) LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **1 Accounting policies**
## **(Continued)**
## **1.6 Fixed asset investments**
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.
## **1.7 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **1.8 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
## **1.9 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
- 13 -
## **RENTSTART (UK) LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **1 Accounting policies**
## **(Continued)**
## **1.10 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **3 Donations**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**general**
**2023**
**2023**
**£**
**£**
Donations and gifts
34,829
532
Statutory Funding from
Local Councils
30,492
330,908
65,321
331,440|**Total**Unrestricted
Restricted
funds
funds
general
**2023**
2022
2022
**£**
£
£
35,361
28,652
2,500
361,400
44,502
190,262
396,761
73,154
192,762|Total
2022
£
31,152
234,764
265,916|
|---|---|---|
## **4 Income from Rental Properties**
|Charitable rental income
Analysis by fund
Unrestricted funds - general
Restricted funds|**Rental**
**Income**
**2023**
**£**
837,154
839,225
(2,071)
837,154|**Rental**
**Income**
**2022**
**£**
881,329
881,329
-
881,329|
|---|---|---|
- 14 -
## **RENTSTART (UK) LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **5 Investments**
||||**Unrestricted**|Unrestricted|
|---|---|---|---|---|
||||**funds**|funds|
||||**general**|general|
||||**2023**|2022|
||||**£**|£|
|Interest receivable|||265|152|
|**Raising funds**|||||
||**Unrestricted**|**Restricted**|
**Total**|Unrestricted|
||**funds**|**funds**||funds|
||**general**|||general|
||**2023**|**2023**|
**2023**|2022|
||**£**|**£**|
**£**|£|
|Fundraising and publicity|||||
|Community fundraising events|6,036|45|
6,081|2,096|
|Advertising|17|-|
17|1,281|
|Other fundraising costs|4,200|-|
4,200|8,937|
|Fundraising and publicity|10,253|45|
10,298|12,314|
||10,253|45|
10,298|12,314|
## **6 Raising funds**
- 15 -
## **RENTSTART (UK) LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **7 Charitable activities**
|**Support for**
**Clients**
**Rental**
**Property**
**Expenses**
**2023**
**2023**
**£**
**£**
Staff costs
356,595
-
Travel and Training
952
-
Office Costs
88,054
-
Communications and IT
29,133
-
Insurance
8,835
-
Client Support
10,296
-
Property Management
Expenses
26,389
686,599
Consultants
15,599
-
Employee benefits
2,923
-
538,776
686,599
Share of support costs
(see note 8)
4,323
-
Share of governance costs
(see note 8)
8,160
-
551,259
686,599
**Analysis by fund**
Unrestricted funds -
general
228,555
686,190
Restricted funds
322,704
409
551,259
686,599|**Total**
**2023**
**Support for**
**Clients**
**Rental**
**Property**
**Expenses**
**2022**
**2022**
**£**
**£**
**£**
356,595
338,668
-
952
1,657
-
88,054
73,536
-
29,133
26,155
-
8,835
8,158
-
10,296
15,258
-
712,988
7,505
753,895
15,599
35,697
-
2,923
2,458
-
1,225,375
509,092
753,895
4,323
-
-
8,160
10,531
-
1,237,858
519,623
753,895
914,745
209,431
753,895
323,113
310,192
-
1,237,858
519,623
753,895|**Total**
**2022**
**£**
338,668
1,657
73,536
26,155
8,158
15,258
761,400
35,697
2,458
1,262,987
-
10,531
1,273,518
963,326
310,192
1,273,518|
|---|---|---|
- 16 -
## **RENTSTART (UK) LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **8 Support costs**
|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Bookkeeping support
4,323
-
Auditor's fees
-
8,160
Other g overnance costs
-
-
4,323
8,160
Analysed between
Charitable activities
4,323
8,160|**2023**
**£**
4,323
8,160
-
12,483
12,483|Support
costs
Governance
costs
£
£
-
-
-
9,758
-
773
-
10,531
-
10,531|2022
£
-
9,758
773
10,531
10,531|
|---|---|---|---|
## **9 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
## **10 Employees**
The average monthly number of employees during the year was:
|Operational and administrative
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2023**
**Number**
11
**2023**
**£**
318,374
27,655
10,566
356,595|**2022**
**Number**
12
**2022**
**£**
307,470
24,955
6,243
338,668|
|---|---|---|
The total cost of Key Management Personnel for the year was £102,539 (2022: £98,084) including employers national insurance and pension contributions. Key Management Personnel is defined as the Chief Executive plus a proportion of the Operations Manager role.
- 17 -
## **RENTSTART (UK) LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**10**|**Employees**||**(Continued)**|
|---|---|---|---|
||The number of employees whose annual remuneration was more than|||
||£60,000 is as follows:|||
|||**2023**|**2022**|
|||**Number**|**Number**|
||£60,001 - £70,000|-|1|
||£70,001 - £80,000|1|-|
|**11**|**Net gains/(losses) on investments**|||
|||**Unrestricted**|Unrestricted|
|||**funds**|funds|
|||**general**|general|
|||**2023**|2022|
|||**£**|£|
||Revaluation of investments|(2,002)|
11,738|
|**12**|**Fixed asset investments**|||
||||**Listed**|
|||**investments**||
||||**£**|
||**Cost or valuation**|||
||At 1 April 2022||119,035|
||Valuation changes||(2,624)|
||Disposals||(64,371)|
||At 31 March 2023||52,040|
||**Carrying amount**|||
||At 31 March 2023||52,040|
||At 31 March 2022||119,035|
||**Fixed asset investments revalued**|||
||The historic cost of the investments is £100,099 (2021: £50,099).|||
|**13**|**Financial instruments**|**2023**|**2022**|
|||**£**|**£**|
||**Carrying amount of financial assets**|||
||Instruments measured at fair value through profit or loss|52,661|119,035|
- 18 -
## **RENTSTART (UK) LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**14**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments and accrued income
**15**
**Creditors: amounts falling due within one year**
**Notes**
Other taxation and social security
Deferred income
**16**
Trade creditors
Other creditors
Accruals
**16**
**Deferred income**|**2023**
**£**
77,615
19,000
21,020
117,635
**2023**
**£**
7,523
61,054
3,201
1,338
12,998
86,114|**2022**
**£**
76,375
9,535
20,938
106,848
**2022**
**£**
7,220
54,557
10,152
1,280
10,700
83,909|
|---|---|---|
|Arising from prepaid rents and grants
Deferred income is included within:
Current liabilities
Movements in the year:
Deferred income at 1 April 2022
Released from previous periods
Resources deferred in the year
Deferred income at 31 March 2023|**2023**
**£**
61,054
**2023**
**£**
61,054
54,557
(54,557)
61,054
61,054|**2022**
**£**
54,557
**2022**
**£**
54,557
22,685
(22,685)
54,557
54,557|
|---|---|---|
- 19 -
## **RENTSTART (UK) LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **17 Retirement benefit schemes**
## **Defined contribution schemes**
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The charge to profit or loss in respect of defined contribution schemes was £10,566 (2022 - £6,243).
- 20 -
## **RENTSTART (UK) LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **18 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
|**Balance at**
**1 April 2021**
**£**
Client Support
89,735
Access to Private Rented Sector
59,674
149,409|**Movement in funds**
**Incoming**
**resources**
**Resources**
**expended**
**£**
**£**
192,762
(256,465)
-
(53,727)
192,762
(310,192)|**Movement in funds**
**Transfers**
**Balance at**
**1 April 2022**
**Incoming**
**resources**
**Resources**
**expended**
**Balance at**
**31 March 2023**
**£**
**£**
**£**
**£**
**£**
-
26,031
329,369
(323,158)
32,242
(5,947)
-
-
-
-
(5,947)
26,031
329,369
(323,158)
32,242|
|---|---|---|
Our client support work involves helping local homeless and vulnerably housed people to transition from their current situations through to regaining a stable lifestyle. This work encompasses everything from our initial meeting with each client through our practical and emotional support until each client is safely housed and re-engaged with society. We place emphasis on helping clients to become financially literate and help them to seek and sustain paid employment.
Our access to the private rented sector work involves engaging with landlords to secure suitable properties for Rentstart to add to our portfolio of managed bed spaces, maintenance of these properties, placing of clients in the properties and managing the related financial aspects of this work.
- 21 -
## **RENTSTART (UK) LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**19**
**Analysis of net assets between funds**
**Unrestricted**
**funds**
**Restricted**
**funds**
**2023**
**2023**
**£**
**£**
Fund balances at 31
March 2023 are
represented by:
Investments
52,661
-
Current assets/
(liabilities)
124,151
32,242
176,812
32,242|**Total**Unrestricted
funds
Restricted
funds
**2023**
2022
2022
**£**
£
£
52,661
119,035
-
156,393
79,965
26,032
209,054
199,000
26,032|Total
2022
£
119,035
105,997
225,032|
|---|---|---|
## **20 Operating lease commitments**
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
|Within one year
Between two and five years|**2023**
**£**
2,650
-
2,650|**2022**
**£**
10,600
2,650
13,250|
|---|---|---|
The operating leases represent two properties, with a minimum term until 2022 and 2023 respectively.
## **21 Related party transactions**
## **Transactions with related parties**
During the year the charity entered into the following transactions with related parties:
T he following amounts were outstanding at the reporting end date:
||**Amounts owed by**|**related**|**Amounts owed by**|**related**|
|---|---|---|---|---|
||**parties**||**parties**||
||**2023**||**2022**||
||**Balance**|**Net**|**Balance**|**Net**|
||**£**|**£**|**£**|**£**|
|Key management personnel|10,000|10,000|-|-|
||10,000|10,000|-|-|
A car loan of £10,000 was made to the Chief Executive Officer during the year for a term of 5 years.
- 22 -
## **RENTSTART (UK) LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**22**
**Cash generated from operations**
Deficit for the year
Adjustments for:
Investment income recognised in statement of financial activities
Fair value gains and losses on investments
Movements in working capital:
(Increase) in debtors
(Decrease) in creditors
Increase in deferred income
**Cash absorbed by operations**
**23**
**Analysis of changes in net funds**|**2023**
**2022**
**£**
**£**
(15,978)
(126,697)
(265)
(152)
2,002
(11,738)
(10,787)
(27,312)
(4,292)
(20,736)
6,497
31,872
(22,823)
(154,763)|
|---|---|
The charity had no debt during the year.
- 23 -