Accountancy Solutions
## Trusted Homes Limited
Financial statements for the
year ended 31st May 2021
Charity number: 1157265 Registered England and Wales
Company number: 08398279 Company limited by guarantee
> **[Call: 07926 450 250 ] Email: info@hslaccountancysolutions.co.uk www.hslaccountancysolutions.co.uk**
**Trusted Homes Limited Contents of the financial statements for the year ended 31st May 2021**
______________________________________________________________________________________________
||Page|
|---|---|
|Administrative Details|1|
|Directors (Trustees Report)|2 - 4|
|Independent Examiners Report|5|
|Statement of Financial Activities|6|
|Balance Sheet|7|
|Notes to the accounts|8 - 11|
**Trusted Homes Limited Administrative details for the year ended 31st May 2021**
______________________________________________________________________________________________
|**Registered Charity number**|1157265|||
|---|---|---|---|
|**Registered Company number**|08398279|||
|**Directors (Trustees)**|Mr Simon Wilmott|-|Chair|
||Mrs Bhavneek Kaur Gangat|-|Trustee|
||Mr Gurnesh Singh|-|Trustee|
||Mr Kishan Paul Singh Task|-|Trustee|
|**Registered Office**|6th Floor, Amp House,|||
||Dingwall Road,|||
||Croydon,|||
||CR0 2LX|||
|**Bankers**|Lloyds Bank PLC|||
||Caxton Gate,|||
||Units 2 & 3, 36/38 New St,|||
||Birmingham|||
||B2 4LP|||
|**Independent Examiner**|Heera Singh FMAAT|||
||HSL Accountancy Solutions Ltd|||
||Enterprise House|||
||61a Carr House|||
||Doncaster|||
||DN1 2BY|||
Page 1
**Trusted Homes Limited The Directors (trustees) present their annual report for the year ended 31st May 2021**
______________________________________________________________________________________________
The trustees, who are also directors of the charity for the purposes of the Companies Act, submit their annual report and financial statements for the year ended 31st May 2021.
## **Exemptions**
The trustees have taken advantage of the exemptions available to small companies, including the audit exemption (see statement on balance sheet).
## **Structure, Governance and Management**
The charity's objects and regulations are regulated by the Constitution established in 2013, amended in March 2014. It is established:
(A) For the relief of Poverty, hardship, and distress in particular by the provision of accommodation, support and services for vulnerable people who are homeless or in acute housing distress and suffering poverty hardship and distress in Birmingham and surrounding areas.
(B) The above main objective is met by providing accessible temporary accommodation and a counseling/support service. Education and training courses are also available to broaden their skill with view to secure employment and their prospects of renting from the open market.
(C) To further such other charitable purposes according to the law of England and Wales as may from time to time be determined by the trustees.
## **Trustee induction and training**
The charity has a Trustee base recruited from local organisations and individuals who have a good understanding and/ or experience of working with vulnerable groups and individuals. In an effort to understand and fully utilise the skill base of Trustees, they are asked to complete a skills and knowledge audit – where significant gaps in skills are identified for the board recruitment is focused to fill these gaps.
Most Trustees are already familiar with the practical work of the charity and are invited to attend information sessions before and after recruitment. They are also given a handbook that contains additional information relevant to the work of the board and the responsibility of Trustees, covering:
- The obligations of Trustee
- The organisation’s constitution, memorandum and articles of the charity
- Strategic and business plans
- Key service and staff information
- Resourcing and the current financial position as set out in the latest published accounts
- Future plans and objectives
- Commission publications signposted through the Commission’s guide “the Essential Trustee”
- Articles and the latest financial statements
Trustee development sessions will be held as a minimum annually and individuals are encouraged to attend further relevant training, e.g. role and responsibilities of trustees etc.
## **Risk management**
The Trustees have conducted a review of the major risks to which the charity is exposed. Where appropriate, systems or procedures have been established to mitigate the risks the charity faces.
Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures are in place to ensure compliance with health and safety of staff, volunteers, clients and visitors to the project.
The continuing implementation of Quality Assessment Framework ensures a consistent quality of delivery for all operational aspects of the charity. These procedures are periodically reviewed to ensure that they continue to meet the needs of the charity.
Page 2
**Trusted Homes Limited The Directors (trustees) present their annual report (continued) for the year ended 31st May 2021**
______________________________________________________________________________________________
## **Main activities**
This year has been the most difficult for Trusted Homes and many globally, due to the Covid-19 pandemic. Whilst implementing save measures for staff and residents, we as a whole continued to meet the objectives of the charity. Challenged with restrictions such as lock downs; Trusted Homes continued to accommodate and support the residents safely.
To support the residents whilst in lockdown, Trusted Homes managed to secure a grant from the The National Lottery Community Fund. This enabled all properties to have a wall mounted TV with built in Freeview. Following this, many of the properties have internet enabling residents access to WIFI.
Considering the circumstances of Covid-19, led by demand, Trusted Homes have managed to secure and increase bed spaces to include, x4 2-bedroom self-contained flats and a 6-bedroom solace for women only.
With the ongoing support, care and supervision, Trusted Homes have managed to succeed and move residents onto positive outcomes, as follows;
4% of our residents have managed to move back with family, after having support to relinquish family ties, 9% of our residents managed to source employment, during these difficult times, 12% of our residents, have been successful with being accommodated into independent 1-bedroom flats,
Therefore, in total, 25% residents within the service of Trusted Homes, have managed to move on and or reform into positive outcomes.
Trusted Homes will continue to support the residents in the same structure as previously with the view we can increase the success stories throughout the service.
## **Financial Review**
The attached financial statements show the current state of affairs of the finances, which the trustees consider to be sound and will continue to closely monitor. The charity relies on donations and offering from its member and the public.
It is recognised that donations and offerings can fluctuate from year to year, thus the trustees aim to ensure that the charity has sufficient resources to continue its activities and to meet its obligations. To this end, it is considered prudent that sufficient liquid funds are maintained.
## **Public benefit statement**
In planning the activities during the year, the Trustees have considered the Charity Commissions Guidance on public benefit. The Trustees have ensured that the organisation has worked to forward it's aims and objectives.
## **Reserves Policy**
The Directors have made a commitment to maintain reserves equivalent to 3 – 6 months of expenditure, from unrestricted funds, not committed or invested in tangible assets. The reserves are needed to ensure the charity can meet liabilities should it need to operate with a reduced income or has to close down. Although the long-term strategy is to continue to build reserves through planned operating surpluses, the Directors continue to consider the extent to which existing activities and expenditure could be curtailed should such circumstances arise and are confident, should the organisation be required to close, the existing reserves would be sufficient.
## **Plans for Future Periods**
During Covid, Trusted Homes have had the opportunity to assess the portfolio and plan for upgrades once Covid 19 is in near sight. Trusted Homes will aim to increase bedroom spaces dependant on demand, continuing to provide homes for those in need. Not sure of the impact of Covid-19 and mental heath to the residents, Trusted Homes is sure to be supportive and accommodating to meet the needs of the residents by way of signposting to relevant agencies.
Page 3
**Trusted Homes Limited The Directors (trustees) present their annual report (continued) for the year ended 31st May 2021**
______________________________________________________________________________________________
## **Statement of Directors and Trustees' responsibilities**
The trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure of the charitable company and the group for that period. 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;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and of the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Small company provisions:**
This report has been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006. The directors declare that they have approved the directors' report above. Signed on behalf of the company's directors:
The trustees declare that they have approved the above report.
Signed on behalf of the trustees
Signed: Date: 28[th] February 2022
Name and position: Simon Wilmott, Director
Page 4
**Independent examiners report to the trustees of Trusted Homes Limited for the year ended 31st May 2021**
I report on the accounts of the Trusted Homes Limited for the year ended 31 May 2021 which are set out on the following pages 6 to 10.
## **Respective responsibilities of trustees and examiner**
The charity’s trustees (who are also the directors of the Company for the purposes of company law) are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:
- examine the accounts under section 145 of the 2011 Act;
- follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
- state whether particular matters have come to my attention.
## **Basis of independent examiner's report**
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a “true and fair view” and the report is limited to those matters set out in the statement below.
Independent examiner's statement
In connection with my examination, no matter has come to my attention:
1. which gives me reasonable cause to believe that, in any material respect, the requirements:
- accounting records have not been kept in accordance with section 386 of the Companies Act 2006;
- - the accounts do not accord with such records:
- where accounts are prepared on an accruals basis, whether they fail to comply with relevant accounting requirements under section 396 of the Companies Act 2006, or are not consistent with the Charities SORP (FRS102)
- any matter which the examiner believes should be drawn to the attention of the reader to gain a proper understanding of the accounts.
Mr Heera Singh FMAAT
Date: 28[th] February 2022
HSL Accountancy Solutions Ltd Enterprise House 61a Carr House Doncaster DN1 2BY
Page 5
## **Trusted Homes Limited Statement of Financial Activities (Including the Income and Expenditure Account) for the year ended 31st May 2021**
|**Income from:**
**Notes**
**Grants and donations**
**2**
Grants
**Charitable activities**
**3**
Rents receivable
**Investments**
Bank interest
**Total**
**Expenditure on:**
**Charitable activities**
**4**
Direct costs
Support costs
Governance costs
**Total**
Net income/(expenditure)
Transfers between funds
**Net movement in funds after transfers**
Total funds brought forward at 1st June 2020
**Total funds carried forward 31st May 2021**|**Unrestricted**
**Restricted**
**Total**
**Total**
**funds**
**fund**
**2021**
**2020**
**£**
**£**
**£**
**£**
10,000
9,200
19,200
0
459,324
459,324
387,376
0
0|
|---|---|
||**469,324**
**9,200**
**478,524**
**387,376**|
||409,580
9,200
418,780
336,240
36,928
0
36,928
32,915
51,200
0
51,200
16,196|
||**497,709**
**9,200**
**506,909**
**385,351 **|
||-28,385
0
-28,385
2,025
0
0
0
0
**-28,385**
**0**
**-28,385**
**2,025**
-29,249
0
-29,249
-31,274|
||**-57,634 **
**0**
**-57,634 **
**-29,249**|
The above statement includes all gains and loses recognised during the year. All activities are regarded as continuing.
The accounting policies and notes on pages 8 to 11 form part of these financial statements.
Page 6
**Trusted Homes Limited Balance sheet As at 31st May 2021**
|**Fixed assets**
Tangible assets
**Current assets**
Debtors
Cash at bank and in hand
**Creditors (amounts falling due in one year)**
**Net current assets**
**Creditors (amounts falling due after year)**
**Net assets**
**Reconciliation of Funds**
Unrestricted funds|**2021**
**£**
8,278
14,020
21,421
35,440
-51,352
-15,912
-50,000
**-65,912**
**-57,634**|**2020**
**£**
10,348
0
12,133|
|---|---|---|
|||12,133
-1,730|
|||10,403
-50,000|
|||**-39,597**|
||||
|||**-29,249**|
For the year ended 31st May 2021 the company is entitled to the audit exemption under section 477 (2) of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for:
a) ensuring the company keeps accounting records which comply with section 386; and
b) preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year, and its profit or loss for the financial year, in accordance with the requirement of the companies Act 2006 relating to accounts, so far as is applicable to the company.
These accounts have been prepared in accordance with the provisions applicable to companies subject to small companies' regime.
The directors declare that they have approved the accounts above.
Signed on behalf of the company's directors:
Signed: Date: 28[th] February 2022
Name and position: Simon Wilmott, Director
The accounting policies and notes on pages 8 to 11 form part of these financial statements.
Page 7
**Trusted Homes Limited Notes to the financial statements for the year ended 31st May 2021**
## **1 Accounting policies**
## **1.1 Basis of preparation**
These accounts (financial statements) have been prepared under the historic cost convention, with items recognised at cost or transaction value, unless otherwise stated in the relevant note(s), in accordance with: (a) The Charities Act 2011
- (b) The Companies Act 2006
- (c) The Financial Reporting Standard applicable in the UK and the Republic of Ireland: FRS102
(d) Accounting & Reporting by Charities: Statement of Recommended Practice (Charities SORP FRS102) (effective January 2015)
The charity meets the definition of a public benefit entity as defined by FRS 102. The trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern.
## **1.2 Incoming resources**
These are included in the Statement of Financial Activities (SoFA). Incoming resources are recognised when:
(a) The company becomes entitled to the resources
(b) The directors are virtually certain they will receive the resources; and
(c) The monetary value can be measured with sufficient reliability
Where incoming resources have related expenditure (as with fund-raising or contract income) the incoming resources and related expenditure are reported gross in the SoFA. Grants and donations are only included in the SoFA when the company has unconditional entitlement to the resources. Contractual income is only included in the SoFA once the related goods or performance related services have been delivered. Investment income is included in the accounts when receivable.
## **1.3 Expenditure**
Expenditure is charged to the statement of financial activities on an accruals basis, inclusive of any VAT which cannot be recovered. Expenditure is classified under headings that aggregate all costs related to that category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Charitable expenditure comprises those costs incurred in the delivery of the charity’s activities and services for its beneficiaries, including both direct and support costs.
Governance costs include those costs associated with meeting constitutional and statutory requirements, including Accountancy fees.
## **1.4 Fund accounting**
Restricted funds are funds received from donors which are subject to restrictions on the purposes for which they may be used of which have been raised for a specific project.
Unrestricted funds are those where there are no externally imposed restrictions. These include funds freely available to the charity for expenditure or appropriation to reserves for internally designated purposes.
## **1.5 Assets**
Tangible assets are capitalised if they can be used for more than one year, and cost at least £500. They are valued at cost, or, if gifted, at the value to the company on receipt. The rates applicable are; Office equipment - 20% on costs Refuge equipment - 20% on costs
## **1.6 Taxes**
The company is not VAT registered. As a Charity the company is exempt from taxation on income and gains falling within section 505 of the Taxes Act 1988 or s256 of the Taxation of chargeable gains Act section 505 of the Taxes Act 1988 or s256 of the Taxation of chargeable gains Act 1992 to the extent that these are applied to its charitable objects.
## **1.7.**
## **Creditors**
Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount, usually the invoice amount. Accrued charges are normally valued at their settlement amount.
Page 8
**Trusted Homes Limited Notes to the financial statements for the year ended 31st May 2021**
## **1.8. Debtors**
Debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.
## **2. Grants and donations**
|**2.**
**Grants and donations**|||
|---|---|---|
|**Grants and donations**
Big Lottery - Awards for all
Birmingham City Council
**3.**
**Charitable activities**
**Charitable activities**
Rents receivable
**4**
**Expenditure on**
**Direct costs**
Rents payable
Staff costs, training and expenses
Utility costs
Project costs
Repairs and renewals
**Support costs**
Office rent
Office insurance
Security expenses
Printing postage and stationery
Advertising
Telephone
Traveling and subsistence
Legal and professional fees
Bank charges
General expenses
Depreciation
**Governance costs**
Directors remuneration
Accountancy fee||**General**
**Restricted**
**Total**
**Total**
**Fund**
**Fund**
**2021**
**2020**
**£**
**£**
**£**
**£**
9,200
9,200
0
10,000
10,000
0
**10,000**
**9,200**
**19,200**
**0**
**General**
**Restricted**
**Total**
**Total**
**Fund**
**Fund**
**2021**
**2020**
**£**
**£**
**£**
**£**
459,324
0
459,324
387,376
**General**
**Restricted**
**Total**
**Total**
**Fund**
**Fund**
**2021**
**2020**
**£**
**£**
**£**
**£**
220,400
220,400
174,451
71,935
71,935
48,902
28,422
28,422
39,798
3,156
3,156
0
85,667
9,200
94,867
73,089|
|||409,580
9,200
418,780
336,240
**£**
**£**
**£**
**£**
8,246
8,246
5,040
1,227
1,227
957
848
848
1,000
3,260
3,260
1,722
843
843
355
3,065
3,065
3,307
7,343
7,343
11,180
7,174
7,174
4,479
0
578
2,852
2,852
2,471
2,070
2,070
1,826|
|||36,928
0
36,928
32,915
**£**
**£**
**£**
**£**
50,000
14,996
1,200
1,200|
|||51,200
0
0
16,196|
Page 9
**Trusted Homes Limited Notes to the financial statements for the year ended 31st May 2021**
## **5. Salaries costs**
|**5.**
**Salaries costs**||||
|---|---|---|---|
|Salaries
Average number of employees during the period was:
No person received emoluments of more than £60,000.in the year.
**6.**
**Tangible fixed assets**
**Cost**
Additions
Disposals
At 31st May 2021
**Depreciation**
At 1st June 2020
Charge this period
At 31st May 2021
**Net book value at 31st May 2021**
**Net book value at 31st May 2020**
**7.**
**Debtors**
Rents receivable
Other debtors
**8.**
**Creditors**
Social security and other taxes
Pension Contributions
Director 1 current account
Accrued expenses
**Creditors (amounts falling due after year)**
Bounce Back Loan||**2021**
**2020**
**£**
**£**
121,935
48,054||
|||**2021**
**£**
14,020
0|7
7
**Fixtures &**
**Fittings**
**£**
13,535|
||||13,535|
||||3,188
2,069|
||||5,257|
|||||
||||**8,278**|
|||||
||||**10,347**|
||||**2020**
**£**
0
0|
|||**14,020**|**21,331**|
|||**2021**
**£**
21,349
0
13,806
16,200|**2020**
**£**
6,642
745
-6,749
1,092|
|||**51,355**|**1,730**|
||**£**
-50,000||**£**
-50,000|
Page 10
**Trusted Homes Limited Notes to the financial statements for the year ended 31st May 2021**
## **9. Trustee remuneration and related party transactions**
During the period of accounts, out of pocket expenses incurred by the Trustees were reimbursed. Trustee, Mr Paul Kishan Singh Taak was employed by the Charity as the CEO. This has been approved by the Charity Commission.
## **10. Movement in Restricted funds**
|**ovement in Restricted funds**||
|---|---|
|**Unrestricted funds**
General funds
**Restricted funds**
Big Lottery - Awards for all|**Opening**
**Incoming**
**Expended**
**Closing**
**01/06/2020**
**resources**
**resources**
**31/05/2021**
**£**
**£**
**£**
**£**
-29,249
469,324
-497,709
-57,634
0
9,200
-9,200
0|
||**-29,249**
**478,524**
**-506,909**
**-57,634**|
**Big Lottery - Awards for all -** Funding was awarded to support tenants in destitute.
## **11. Deficit in Unrestricted Funds**
The Trustees are aware and have acknowledged of the deficit balance in the Unrestricted Funds. The Trustees have informed us they have been working tirelessly to invest in service delivery and staffing to ensure the Charity is able to increase its capacity for support. In turn, the Charity should generate a surplus to reduce the deficit.
## **12. Analysis of net assets between funds**
|Tangible fixed assets
Net Current assets|**Unrestricted**
**Restricted**
**Total**
**Funds**
**Funds**
**Funds**
**£**
**£**
**£**
8,278
0
8,278
-65,912
0
-65,912|
|---|---|
||**-57,634**
**0**
**-57,634**|
## **13. Previous periods figure**
The previous periods figure are provided for comparison purposes only.
Page 11