Charity reglstration number 1156746 Company registration number 08819740 (England and Wales) RENTSTART (UK) LTD ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 RENTSTART (UK) LTD LEGAL AND ADMINISTRATIVE INFORMATION Trustees Ms SASeery Mr L Holmes Mr N Lucas Mr M Farr Ms C Forrester Secretary Mr M Farr Charity number 1156746 Company number 08819740 Registered office 51-55 High Stfeet Walton on Thames Surrey KT12 1DH Audltor Warnerwilde Limited 4 Marigold Drive Bisley Surrey United Kingdom GU24 9SF Bankers HSBC Bank PIC Church Street Weybridge Surrey KT13 8DT CAF Bank Limited 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4TA RENTSTART (UK) LTD CONTENTS Page Trustees, report statement of trustees, responsibilities Independent auditor's report Statement of financial activities Balance sheet 10 Statement of cash flows 11 Notes to the financial statements 12-21 RENTSTART (UK) LTD TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2024 The trustees present their annual report and financial statements for the year ended 31 March 2024. 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 IFRS 102) (effective 1 January 2019)" Objectives and activitles The charity's objects are the relief of poverty and distress and the protection of health among persons wthin the borough of Elmbridge 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. There has been no change in these during the year. Public Beneflt 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 theirtime freely and no remuneration wa5 paid to Board Members. The charity has trustee liability insurance cover. Achievements and perforniance Significant aGtivitios and achievements against objectives 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. The Unrestricted Income and Expenditure Fund, which finances our running costs, shows a deficit of £16,665 (2023 deficit of £22.1891. The Fund totalled £160,147 at 31 March 202412023 £176,812). Overall funds, including restricted funds, totalled £212,37312023 £209,054). Our aim remains to house and support local people who are rough sleeping, hidden homeless orfacing homelessness. We not only house our clients, but also provide ongoing training and support (with a focus on financial literacy and employment) to help them remain housed - enabling them to become established and move on with their lives. Advice and signposting forpeople facing homelessness Over the last 12 months we have given advice to 784 people through more than 2280 calls. As the cost-of-living crisis has continued, the changing face of homelessness has brought a broader range of people to us. This has included an increase in older and working people, as well as a larger number of people in vulnerable financial positions. 880 of enquiries this year related to debt and the threat of eviction. 340/0 of enquiries came from outside Elmbridge, indicating both the level of need across Surrey, and our growing reputation. Practical support rorpeople's immediate needs 96 rough sleepers, and others needing support, had access to our welcoming High Slreet space. where they could access a warm safe space, food, showers and laundry facilities. The drop-in nature of the space, and the regular touchpoints with our staff, enables our team to start building trust with visitors, to begin to explore how Rentstart could help them in the longer term. This year we were seeing increased demand, for example distributing 1660A more food than the previous year. Providing quality housing for homeless people This yearwe assessed 203 people for housing, made 97 placements into housing, and supported 110 tenants housed in our properties. We remove financial barriers to tenancies with rent in advance, deposits and move-in essentials, and work closely with our landlords to remove other barriers faced by homele55 people: paperwork, credit checks and accepting tenants in receipt of benefits. RENTSTART (UK) LTD TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 P￿vIding quality housing for homeless people One of the biggest barriers to Rentstart supporting more homeless and vulnerably housed people into stable housing is the local lack of affordable accommodation. Despite increasing enquiries, the number of new clients we can house has plateaued. Landlords are selling as fast as we can recruil landlord partners (from a high point of 130 bedspaces pre-COVID, in 2023 this had dropped to 102, by April 2024 we had built this up to 110) and bedspace availability remains a critical issue. One of our priorities is to retain and recruit more landlords to grow our capacity to help homeless people. Client support Most of our staff support Clients directly, helping people make lasting changes to their circumstances. The average length of our tenancies is Iwo years, and we have needed to support around 100 people whom we housed in past years. The cost-of-living crisis, so soon after the pandemic, has meant clients experiencing increased anxièty and additional debt issues, while struggling to access benefits in a timely fashion. They have needed high amounts of group and individual support from our team in order to prevent a return to homelessness. One in every eight clients report they had slept rough over the last month (although only half met the narrow criteria to be counted in official homelessness statistics the very definition of hidden homelessness}. Around 250/0 have reported to us that they have had Contact with the criminal justice system. 31 % have reported drug, substance or alcohol issues to us, over 800k of our clients are reporting significant mental health issues, but only one third have reported a diagnosis. All these are major barriers to securing, and sustaining. a home. We are delighted that 12 months after placement into housing, 910/0 of our tenants remained housed, a relatively stable proportion over Ihe past five years. Ouf team made 725 interventions to prevent situations escalating towards eviction, and have actively prevented around 70 evictions through their support of our clients. All tenants have tenancy training, and 550/0 are'staying on green, for key engagement measures. including paying rent and bills on time, all the time. 1000/0 of new tenants co-¢reate a Client Support Plan to shape the support they will need to move towards their self- identified goals during their tenancy. This includes individual support sessions and group traininglcoaching in our Academy. 960kn achieved at least one goal within 12 months of beginning their tenancy and Support Plan. Academy.. financial, employment and wellbeing support We helped 300 previous, current and potential clients through 1363 financial, employment and wellbeing training and support sessions in our Academy in the last year. 847 pre-tenancy or tenancy training, 690 financial skills such as budgeting, 266 employment support, 1363 wellbeing and mental health sessions. During the year, 49 found employment, work experience, began training, or achieved a job interview, all transformative steps towards independence. The success of our housing placements and ongoing support to make these tenancies sustainable for our clients who have previously struggled to remain housed, is directly attributable to a huge amount of work by our team providing trauma-informed pradical and emotional support. The trustees are most grateful to our staff, volunteers and funders, without whom our work would not be possible. RENTSTART (UK) LTD TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Flnancial review In 2023-24 we have finished the financial year with a slight surplus of £3,319 (2023 deficit of £15,978). Our accounts present a slightly skewed view of our charity. We directly manage a significant number of renta properties to ensure Ihat a sufficient quantity of quality housing is available for our clients. This means we are collecting in rents and then paying them out to property owners. £818,042 of our total expenditure of £1,395,678 is related to our property work (58.6 % ) while £565,620 reflects our client support work costs, with the small balance remaining supporting the costs of our fundraising. Income from donations and legacies decreased slightly to £349,211 (2023 £396,761) while other sources of income increased to £1,042,398 (2023 £837,154). Reserves policy Reserves are needed to enable an orderly winding down of the charity's affairs if adequate fijnding is no longer available. The trustees have resolved that the Unrestricted Income and Expenditure Fund should be held at a level be￿een 25°/o and 50 % of total annual expenditure (excluding property management expenses and claims}. At 31 March 2024, the Fund held £160,147 (2023 £176,812) in unrestricted reserves. This equates to 27.7¥0 (2023 31.4%) of our current annual running costs (excluding property management fees) and is within our target level. Restricted reserves total £52,226 (2023 £32,242) which are to be spent on specific projects during 2024125. Major risks Risk management The trustees regularly review the risks to which the charity is exposed. A risk analysis was carried out during the year. The principal areas of risk are as follows.. Loss of key management guarantee claims L05s of office accommodation Loss of core funding Excessive Risk to staff in dealing with clients The twstees 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.. MsSASeery Mr L Holmes Mr N Lucas Mr M Farr Ms C Forrester Recnjitment and appointment of tnjstees None of the trustees has any beneficial interest in the company. All of the trustees are member5 of the company and guarantee to contribute £1 in the event of a winding up. RENTSTART (UK) LTD TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Organlsatlonal structure OrgBnisation The Charity is run by its members (as Trustees) in general meetings. Power may be delegated to one or more Trustees or groups of Trustees to manage the employees of the Charity and its day to day operations, subject to the overall supervision of the Trustees in general meeting. The Trustees meet in general meeting five times a year to review progress and take corrective action as required. This year the Trustees have adopted a code of governance based on the Charity Commission's own code. Auditor In accordance with the company's articles, a resolution proposing that Warner Wilde Limited be reappoinled as auditor of the company will be put at a General Meeting. The tr es, report was approved by the Board of Trustees. Mr N Lucas Trustee Date.. RENTSTART (UK) LTD STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2024 The trustees, who are also the directors of Rentstart (UK) Ltd for the purpose of company law, are responsible for preparing the Tru5tees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom GenerallyAccepted 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 requlred to.. select suitable accounting policies and then apply them consistently., observe the methods and principles in tha Charities SORP; make judgements and estimatesthat are reasonable and prudent; state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements., 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 prevehtion and detection of fraud and other irregularities. RENTSTART (UK) LTD INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF RENTSTART (UK) LTD Oplnlon We have audited the financial statements of Rentstart (UK) Ltd (the 'charity'l for the year ended 31 March 2024 which comprise the statement offinancial activities, the balance sheet, the slatement 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 2024 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. Basls 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 Auditors 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 Elhical 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. Concluslons relating to going concern In auditing the financial statements. we have concluded thatthe trustees, use of the going concern basis ofaccounting 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 ¢ontinue as a going concern for a period of at least ￿e1ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concem 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 slatements and our auditor's report thereon. The trustees are responsible for the other infomiation 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 statemenls 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 lo a material misstatement in the financial statements themselves. If, based on the work we have perfomied, we conclude that there is a material misstatement of this other infomiation, we are required to report that fact. We have nothing to report in this regard. Matters on which we are requlred 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, report., or sufficient accounting record5 have not been kept., or the financial statements are not in agreement with the accounting records., or we have not received all the infomiation and explanations we require for our audit. RENTSTART (UK) LTD INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF RENTSTART (UK) LTD Responsibilltles of trustees As explained more fully in the statement of trustees. responsibilities, 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 intemal 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 forthe 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, lo 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: A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. http'.Ilww.frc.org.uklauditorsresponsibilities. This description forms part of our auditorfs report. The Extent to whlch the audlt was considered capable of detectlng 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. RENTSTART (UK) LTD INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF RENTSTART (UK) LTD 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-complian￿ with laws and regulations, we designed procedures which included, but were not limited to.. •agreeing financial statement disclosures to underlying supporting documentation., breading the minutes of meetings ofthose charged wilh govemance., •enquiring of management as to actual and potential liligation 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 frorn financial transactions, the less likely it is thatwe 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 regulalory 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. This report is made solely to the 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 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 company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. FJ Wilde FCCA DChA (Senior Statutory Auditor) For and on behalf of Warner Wilde Limited ststutory Audltor LZ Io L* 4 Marigold Drive Bisley Surrey United Kingdom GU24 9SF Warner Wilde Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under 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 2024 Unrestricted Restricted funds funds 2024 2024 Totsl Unrestricted Restricted funds funds 2023 2023 Total 2024 2023 Notes Income from: Donations and legacies Charitable activities Investments 82,015 1,042,188 978 267,196 349,211 210 1,042,398 978 65,321 839,225 265 331,440 {2,071) 396,761 837,154 265 Totsl income 1,125,181 267,406 1,392,587 904,811 329,369 1,234,180 Expenditure on: Raising funds Charitable activities Support for Clients Rental Property Expenses 11,737 279 12,016 10,253 45 10,298 328,639 236,981 565,620 228,555 322,704 551,259 817,486 556 818,042 686,190 409 688,599 Total charitable expenditure 1,146,125 237,537 1,383,662 914,745 323,113 1,237,858 Total expenditure 1,157,862 237,816 1,395,678 924,998 323,158 1,248,156 Net gainsl(losses) on investments 12 6,410 6,410 (2,002) {2.002) Net incomel(expenditure (26,271) 29,590 3,319 (22,189) 6,211 (15,978) Transfers be￿een nds 9,606 {9,606) Net movement in funds {16,665} 19,984 3,319 {22,189) 6,211 (15,978) Reconciliation of funds: Fund balances at 1 April 2023 176,812 32,242 209,054 199,001 26.031 225,032 Fund balances at 31 March 2024 160,147 52,226 212,373 176,812 32,242 209,054 The statement of financial activities includes all gains and losse5 recognised in the year. All income and expenditure derive from continuing activities. RENTSTART (UK) LTD BALANCE SHEET AS AT 31 MARCH 2024 2024 2023 Notes Flxed assets Investments 14 59,071 52,661 Current assets Debtors Cash at bank and in hand 15 104,151 293,638 117.835 124.872 397,789 Creditors: amounts falling due within one year 242.507 16 (244,487) (86,114) Net current assets 153.302 156,393 Total asset5 less current liabilities 212,373 209,054 Thè funds of the charity Restricted income funds Unrestricted funds 19 20 52,226 160,147 32,242 176,812 212,373 209,054 The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2024, although an audit has been carried cut under section 144 of the Charities Act2011. The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements. The members have not required the company to obtain an audit of its financial statements under Ihe requirements of the CompaniesAct 2006, for the year in question in accordance with section 476. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The cial s tements were approved by the trustees on Mr N Lucas Trust8e Company registration number 08819740 (England and Wales) 10- RENTSTART (UK) LTD STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Notes Cash flows from operating actlvities Cash generated froml{ab50rbed by) operations 24 167,788 (22,823) Investing activltles Proceeds from disposal of investments Investment income received 64,372 265 978 Net cash generated from investlng activities 978 64,637 Net cash used in financing a¢tlvltie5 Net increase in cash and cash equlvalents 168,766 41,814 Cash and cash equivalents at beginning of year 124,872 83,058 Cash and cash equivalents at end of year 293,638 124,872 11 RENTSTART (UK) LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting pollcles 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, l(r12 1DH. 1.1 Accounting conventlon The financial slatements have been prepared in accordance with the charity's goveming 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 stalements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical c05t convention, Imodified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair valuel. 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 or grantors 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 condition5 by donors thatthe capital must be maintained by the charity. 1.4 Income Income is recognised when the charity is legally entitled to it after any perfomiance 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 ofthe donation, unless performance conditions require deferral ofthe amount. Income tax recoverable in relation to donations received under GiftAid or deeds of covenant is recognised at the time of the donation. Legacies are recognised on receipt or otherwise ifthe 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 idenlified when either a legal or constructive obligation is identified. Irrecoverable VAT is charged to the same expenditure category as the corresponding Gost. 12- RENTSTART (UK) LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accounting pollcles (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 incomel(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-terni 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 12'0ther 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 paty 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 thefe 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 Iransaction 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 liabilltles 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 atthe present value of the future payments 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 serVI￿S 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 beneflts The cost of any unused holiday entitlement is recognised in the period in which the employee's seNices 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. 1.10 Retlrement beneflts Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. 13- RENTSTART (UK) LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Critlcal accounting est5mates 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. Income from donations and legacles Unrestricted Restricted funds funds 2024 2024 Total Unrestrlcted Restricted funds funds 2023 2023 Total 2024 2023 Donations and gifts Grants 45,651 36,364 2,875 264,321 48,526 300,685 34.829 30,492 532 330,908 35,361 361,400 82,015 267,196 349,211 65,321 331,440 396,761 Income from charitable activities Unrestricted Restrlcted funds funds 2024 2024 Total Unrestricted Restricted funds funds 2023 2023 Total 2024 2023 Rental Propety Income Charitable rental income 1,042.188 210 1,042,398 839,225 (2,071) 837,154 Income from Investments Unrestricted Unrestricted funds funds 2024 2023 Interest receivable 978 265 14- RENTSTART (UK) LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Expendlture on ralsing funds Unrestricted Restricted funds funds 2024 2024 Totsl Unrestricted Restricted funds funds 2023 2023 Total 2024 2023 Fundraising and publlcity Staging fundraising events Advertising Other fundraising costs 3,519 118 8,100 279 3,798 118 8,100 6,036 17 4,200 45 6,081 17 4,200 11,737 279 12,016 10,253 45 10,298 Expenditure on charitable activltles Support for Clients Rental Property Expenses 2024 Total Support for Clients Rental Property Expenses 2023 Total 2024 2024 2023 2023 Direct costs staff costs Travel and Training Office Costs Communications and IT Insuran Client Support Property Management Expenses Consultants Employee Benefits 353,119 1,599 101,151 32,537 8,420 13,463 353,119 1,599 101,151 32,537 8,420 13,463 356,595 952 88,054 29,133 8,835 10,296 356,595 952 88,054 29,133 8,835 10.296 10,059 18,768 818,042 828,101 18,768 26,389 15,599 2,923 686,599 712,988 15,599 2,923 539,116 818,042 1,357,158 538,776 686,599 1,225,375 Share of support and governance costs (see note 8) Support 18,056 Govemance 8,448 18,056 8,448 4,323 8,160 4,323 8,160 565,620 818,042 1,383,662 551,259 686,599 1.237,858 Analysis by fund Unrestricted funds Restricted funds 328,639 236,981 817,486 556 1,146,125 237,537 228,555 322,704 686,190 409 914,745 323,113 565,620 818,042 1,383,662 551,259 686,599 1,237,858 15- RENTSTART (UK) LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Support Costs allocated to activities Support for Clients 2024 Total 2023 Bookkeeping support Goveman¢e 18,056 8,448 4,323 8,160 2024 2023 Governance costs comprise: Audit fees 8,448 8,160 8,448 8,160 Net movement in funds 2024 2023 The net movement in funds is stated after chargingl(crediling)- Fees payable for the audit of the charity's financial statements 8,448 8,160 10 Trustees None of the trustees (or any persons connected with them} received any remuneration or benefits from the charity during the year. 11 Employees The average monthly number of employees during the year was- 2024 Number 2023 Number Operational and administrative 10 11 Employment costs 2024 2023 Wages and salaries Social security costs Other pension costs 319,696 26,977 6,446 318,374 27,655 10,566 353,119 356,595 16- RENTSTART (UK) LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 11 Employees (Contlnued) The total cost of Key Management Personnel for the year was £131,088 {2023'. £102,539) including employers national insurance and pension contributions. Key Management Personnel is defined as the Chief Executive plus a proportion of the Director of Client Services role. The number of employees whose annual remuneration was more than £60,000 is as follows.. 2024 Number 2023 Number £70,001- £80,000 £90,001- £100,000 12 Galns and losses on investments Unrestricted Unrestricted funds funds 2024 2023 Gainsl(losses) arising on.. Revaluation of investments 6,410 (2,002) 13 Taxation The charity is exempt from taxation on its activities because all its income is applied for charitable purposes. 14 Flxed asset Investments Llsted Investments Cost or valuation At 1 April 2023 Valuation changes 52,661 6,410 At 31 March 2024 59,071 Carrylng amount At 31 March 2024 59,071 At 31 March 2023 52,661 Fixed asset Investments revalued The historic cost of the investments 15 £35,728 (2023.. £35,728). 17- RENTSTART (UK) LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 15 Debtors 2024 2023 Amounts falllng due within one year: Trade debtors Other debtors Prepayments and accrued income 58,780 12,600 32,771 77,615 19,000 21,020 104,151 117,635 16 Creditors: amounts falling due within one year 2024 2023 Notes other taxation and social security Deferred income Trade creditors other creditors Accruals 14,495 203,251 14,133 1,444 11,164 7,523 61,054 3,201 1,338 12,998 17 244,487 86,114 17 Deferred income 2024 2023 Arising from prepaid rents and grants 203,251 61,054 2024 2023 Deferred income is included within- Current liabilities 203,251 61,054 Movements in the year.. Deferred incorne at 1 April 2023 Released from previous periods Resources deferred in the year 61,054 (61,054) 203,251 54,557 (54,557) 61,054 Deferred income at 31 March 2024 203,251 61,054 18 Retlrement beneflt schemes 2024 2023 Defjned contribution schemes Charge to profit or loss in respect of defined contribution schemes 6,446 10,566 18- RENTSTART (UK) LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 18 Retirement benefit schemes {Contlnued) 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. 19 Restrlcted funds The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used. At 1 April 2023 Incoming resources Resources expended Transfers At 31 March 2024 Client Support 32,242 267,406 {237,816) (9,606> 52,226 Prevlous year: At 1 April 2022 Incoming resources Resources expended Transfers At 31 March 2023 Client Support 26,031 329,369 {323,158) 32,242 Our client support work involves helping local homeless and vulnerably housed people to transition from Iheir 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. 20 Unrestricted funds The unrestricted funds ofthe charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted fund5 by the trustees for specific purposes. At 1 April 2023 Incoming resources Resources expended Transferd Gains and At 31 March losses 2024 Guarantee Fund General funds 4,100 172,712 5,900 1,119,281 10,000 150,147 (1,157,862) 9,606 6,410 176,812 1,125,181 (1,157,862) 9,606 6,410 160,147 19- RENTSTART (UK) LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 20 Unrestrlcted funds (Contlnued) Prevlous year: At 1 April 2022 Incomlng resources Resources expended Transfers Gains and At 31 March losses 2023 General funds 199,001 904,811 (924,998) {2,002) 176,812 21 Analysls of net assets between funds Unrestricted funds 2024 Restrlcted funds 2024 Total 2024 At 31 March 2024: Investments Currenl assetsl{liabilities) 59,071 101.076 59,071 153,302 52,226 160,147 52,226 212,373 Unrestrlcted funds 2023 Restricted funds 2023 Total 2023 At 31 March 2023: Investments Current assetsl{liabilities) 52,661 124,151 52.661 156,393 32,242 176,812 32,242 209,054 22 Operating lease Commitments Lessee The operating leases represent leases of two properties from third parties. One for years to 2022, the other with a break clause in 2023. At the reporting end date the charity had outstanding Commitments for future minimum lease payments under non