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2021-05-31-accounts

REGISTERED CHARITY NUMBER: 1157431

BEACON RECOVERY

FINANCIAL STATEMENTS

AND TRUSTEES ANNUAL REPORT

FOR THE YEAR ENDED

31 MAY 2021

1

BEACON RECOVERY TRUSTEES ANNUAL REPORT for the year ended 31 May 2021

The trustees are pleased to be present their Annual Report together with the financial statements of the charity for the year ended 31 May 2021. The financial statements comply with the Charities Act 2011 and Accounting and Reporting: 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 2015).

Our purpose and activities

The purpose of the charity is the relief of the mental and physical sickness of persons in need by reason of addiction to drugs and/or alcohol, in particular by the provision of housing, advice, counselling and support.

The charity provides supported housing to persons who wish to recover from their addiction. Housing is provided in a central hostel with 44 en-suite single rooms and in 8 dispersed individual “move-on” properties. Support is provided on a 24/7 basis – a much higher level than provided by statutory Housing Support schemes. The success levels achieved provide empirical proof that safe housing combined with high levels of support are effective in assisting recovery from addiction. Further support is given by encouraging resident clients, at the relevant point in their recovery cycle, to participate in volunteering, work placement and learning projects. The charity has entered into arrangements with a number of selected organisations in the Bradford District, principally in the voluntary and community sector, that are able to provide opportunities for our residents to use existing skills or learn new ones in workplace environments. The charity itself provides similar opportunities. All these activities were adversely affected by adherence to national COVID 19 guidelines during the year.

Where appropriate, residents are referred to local organisations that provide statutorily funded addiction treatment programmes and close liaison is maintained between the resident’s hostel-based key support worker and staff in external organisations to assist recovery. Residents are regularly but randomly tested for drug/alcohol, used principally to provide evidence they are maintaining drug/alcohol free lives.

The Trustees have shaped the objectives of the charity and planned its activities, having given due consideration to the Charity Commission’s guidance on public benefit, including the guidance ‘public benefit: running a charity’ (PB2). They are vigilant in ensuring that not only is public benefit delivered by the charity, but that it is quantified in social, economic and financial terms in order that clear evidence of public benefit can be demonstrated. In the main, addiction is funded through acquisitive crime. Based on the cost of acquiring addictive illegal substances, the average intake per addict and the conversion rate of stolen goods in the black market, maintaining 52 addicts drug and/or alcohol free saves £1.8 million per annum in terms of illegally obtained goods. Using government published economic data, the saving in police, court and prison costs is a further £1.8 million per annum. In social terms, there are two separate gains: social and economic. Public disorder and crime are decreased and the safety and positive perceptions of the general public increased. Economic gains are those derived from the volunteering and work placement activities. Using minimum wage as replacement wage cost, the benefit to the organisations that provided these opportunities, for the year ended 31 May 2021, was over £26,000 (2020- £55,000). Finally, and most importantly, residents, on achieving recovery, are able to live independently as contributing members of general society.

The charity has benefited from the 3 volunteers who have worked with us during the year. We provide volunteer opportunities for people returning to work who wish to develop new skills, for students who are considering social care and support as a career and for our own beneficiaries who have made sufficient progress in their recovery to be able to contribute through volunteering or work placement.

2

BEACON RECOVERY TRUSTEES ANNUAL REPORT (continued) for the year ended 31 May 2021

Achievements and Performance

During the year the charity provided supported accommodation for 75 recovering addicts (2020 – 100) for 16,930 days (2020 – 18,002 days). Admissions and exits were greatly affected by the implementation of the national guidelines during the COVID pandemic relating to the movement of people. Bradford was seriously affected by periods of national lockdown and by Tier 3 restrictions. Through strict adherence to guidelines, the charity’s residents and staff remained 100% free from infection throughout the year under review.

Residents are principally from the Bradford District. Referral sources have evolved over the years of our operation: In 2020-21, 15% were referred from prisons having commenced their recovery during their sentences reflecting our excellent relationships maintained with treatment/recovery organisations working within prisons. Almost 35% of residents were referred by local GPs and non-statutory organisations. The remaining 50% were self-referrals, of which 15% were new clients. Our positive move-on outcomes – moving into our move-on properties or returning to own or family homes or becoming employed– at 59% were a little lower than the previous years’ achievements and was affected by the inability to move on during the lock down period . At any one time, 30% of our residents were undertaking volunteering or workplace experience.

The charity accepts relapse as part of the individual’s struggle to overcome their addiction and whilst we do not provide accommodation to anyone who is currently taking street or other drugs or who is drinking alcohol, we welcome previously relapsed residents who are able to provide clean tests and demonstrate a willingness to reengage with their recovery.

The charity continued to participate in and deliver talks to prison, health and community agencies not only to promote its activities, but also to educate the general public on addiction, its effects and the facilities and support available to address it. Funding has been obtained to enable these outreach activities to be delivered post lock down from May 2021.

Financial Review

The charity’s finances depend upon the number of residents for whom it provides accommodation and support. Occupancy remained stable throughout the year, but the number of supported days delivered was lower than forecast due to COVID 19 restrictions on movement resulting in a break even for the year. It is the intention of the charity to seek additional funding from external funding agencies and organisations to increase the level of recreational and educational activities for its residents, particularly at weekend and during evenings, and a successful funding bid to the Morrison Foundation supported these activities during the year.

The Trustees have set a target for reserves to be equal to three months delivery costs. The nature of the funding currently available to the charity makes this a long term target. The retained unrestricted reserves at 31 May 2021 amounted to £82,173 or 2.3 months (2020 – 2.2 months) of unrestricted costs. Cash flow was negative for the year at £35,864 reflecting loan repayments, payments made out of grants received in previous years and reduced occupancy.

Future funding for the charity depends on government decisions on the level of payments for supported housing. They will depend on the political will to support those in need balanced against “economic” justified reductions. The hints of a relaxation in austerity measures may positively affect the charity’s future funding, but economic factors arising from the coronavirus pandemic and Brexit will be negative. Against this background, the Trustees consider the preparation of its financial statements on a going concern basis to be realistic at this time.

3

BEACON RECOVERY TRUSTEES ANNUAL REPORT (continued) for the year ended 31 May 2021

Plans for future periods

The Trustees are of the opinion that the level of the current provision of accommodation is sufficient to meet the needs of the community of interest it serves in the Bradford District. Any expansion of the charity’s activities will be to enhance the experience of residents though support activities. Opportunities to expand the charity’s activities into either complementary work in the local addiction recovery sector, which has been funded and commenced delivery in May 2021, and expansion into other geographical areas are and will be regularly monitored.

Trustees

The following have been Trustees through the year:

Peter John Bloom Andrew Trevor Walsh

Lynn Tracey Holdsworth resigned 21 September 2021 due to changes in her personal circumstances. The Trustees would like to thank Lynn for her continued support for the charity since its formation and wish her well in her future activities.

The following were appointed Trustees during the year: Thomas Hughes on 23 February 2021 Joseph Canning on 23 February 2021

Joseph Canning has been appointed as Service User Trustee to represent the charity’s beneficiaries at Trustee Meetings. Julie Benson was employed as Accommodation Manager throughout the year and is the operational senior manager.

Structure, Governance and Management

Structure

The charity is a Charitable Incorporated Organisation (CIO), registered with the Charities Commissioners on 10 June 2014, number 1157431. Members are required to contribute up to £1 in the event of the winding up of the charity.

Governance & Management

The charity has in place a procedure and process for the induction and training of new trustees which includes detailed briefings on their legal obligations, Charity Commission advice and guidance, existing decision making processes, familiarisation with the current business plan and the financial position of the charity and visiting the charity’s premises to meet other trustees and key members of staff.

The board of Trustees administers the charity. It meets weekly using electronic means. The accommodation manager is appointed by the Trustees to manage the day-to-day activities of the charity. She has delegated authority, within terms of delegation approved by trustees, for operational matters including finance (subject to certain maximum values), employment and performance related activities.

4

BEACON RECOVERY TRUSTEES ANNUAL REPORT (continued) for the year ended 31 May 2021

The Constitution of the charity provides for the payment of expenses and remuneration in specific circumstances. A charge has been made to the charity for the provision of professional accounting, payroll and financial services by a firm of Chartered Accountants in which Peter John Bloom is a partner. (See Note 4 in the charity’s accounts).

Risk management

The Trustees have a risk management strategy which comprises the following:

The major risk for the charity is that its beneficiaries/residents are vulnerable adults. A full range of policies, systems and procedures are in place to minimise the risks pertaining to this group of people. The charity works closely with the Bradford Safeguarding Board in these matters and takes advantage of the training provided and guidance and recommendations produced by it. All staff are fully trained to recognise and deal correctly with such risks before they are allowed to work with residents on a one-to-one basis.

The charity meets all statutory requirements as to health & safety, fire and employment law which is ensured by annual reviews and inspections by external agencies and regular training updates for staff.

The charity carries out a detailed annual risk assessment with its insurance brokers to ensure that the scope and cover of its insurances are sufficient to meet with any insurable incident.

Trustees‘ responsibilities in relation to the financial statements

Trustees are responsible under charity law for preparing a trustees’ annual report and financial statements. The charity produces financial statements using the accruals basis consistent with its size and the requirements of charity law.

Statement of disclosure to the independent examiner

In so far as the Trustees are aware at the time of approving our trustees’ annual report:

By order of the board of trustees

PETER J BLOOM (Chair)

30[th] September 2021

5

REPORT TO THE TRUSTEES OF BEACON RECOVERY (Reg No 1157431) ON THE ACCOUNTS FOR THE YEAR ENDED 31 MAY 2021 (set out on pages 7 to 15)

I report to the trustees on my examination of the accounts of the above charity for the year ended 31 M ay 2021.

As the charity's trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the Act”).

I report in respect of my examination of the charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a member of the Institute of Chartered Accountants in England and Wales.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in, any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

BARRY DAWSON

Barry Dawson Chartered Accountant 15 St Peg Lane 30[th] September 2021 Cleckheaton BD19 3SA

6

BEACON RECOVERY STATEMENT OF FINANCIAL ACTIVITIES (including summary Income and Expenditure Account) FOR THE YEAR ENDED 31 MAY 2021

Notes
Income from
Donatons and Investment Income
Government grant - CJRS
Charitable actvites
2
TOTAL INCOME
Expenditure on
Charitable actvites
3
Support costs
3
TOTAL EXPENDITURE
Net income and net movement
In funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
£
-
5,425
436,822		 Restricted
Funds
£
-
-
8,130
8,130
8,130
-
8,130
-
-
-		 Total
2021
£
-
5,425
444,952
450.377
448,453
1,800
450,253
124
82,049
82,173		 Total
2020
£
16
-
454.630
442,247 454,646
440,323
1,800		 430,538
1,800
442,123 432,338
124
82,049		 22,308
59,741
82,173 82,049

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

7

BEACON RECOVERY BALANCE SHEET

31 MAY 2021

BEACON RECOVERY
BALANCE SHEET
31 MAY 2021
Notes
Fixed Assets
Tangible assets
8
Current assets
Debtors
9
Cash at bank and in hand
Creditors: amounts falling due
within one year
10
Net current assets
Total Net assets
Funds of the charity
Restricted income funds
Unrestricted funds
13
Total funds		 2021
£
40,783
52,242
93,025
21,816		 £
10,964
71,209
82,173
0
82,173
82,173		 2020
£
45,936
88,106
134,042
53,647		 £
1,654
80,395
82,049
0
82,049
82.049

These accounts are prepared in accordance with provisions of the Charities Act 2011 and Accounting and Reporting: 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 2015).

The notes on pages 10 to 15 form part of these accounts

Signed

PETER JOHN BLOOM Chair of Trustees on behalf of the trustees

Approved by the trustees on 30[th] September 2021

8

BEACON RECOVERY STATEMENT OF CASH FLOWS for the year ended 31 May 2021

BEACON RECOVERY
STATEMENT OF CASH FLOWS
for the year ended 31 May 2021
Cash used in operatng actvites – Note 15
Cash fows from investng actvites
Purchase of tangible assets
Cash provided by (used in) investng actvites
Cash used in fnancing actvites
Increase (decrease) in cash or cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Total cash and cash equivalents at the end of the year		 2021
£
(23.920)
-
(11,944)
0
(35,864)
88,106
52,242		 2020
£
15,103
-668
-668
0
14,435
73,671
88,106

9

BEACON RECOVERY NOTES TO THE ACCOUNTS for the year ended 31 May 2021

1 Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011. Beacon Recovery constitutes a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

b) Reconciliation with previous Generally Accepted Accounting Practice In preparing the accounts, the trustees have considered whether in applying the accounting policies required by FRS 102 and the Charities SORP FRS 102 the restatement of comparative items was required. No restatements were required.

c) Preparation of the accounts on a going concern basis The charity reported a cash inflow of £ for the year. The trustees are of the view that the immediate future of Beacon Recovery is secure and on that basis the charity is a going concern.

The ongoing uncertainties applying in the supported housing sector – the reductions in funding available to local authorities, the possible introduction of personalised budgets and on-going demand for specialised supported housing – continue to be reviewed and quantified as accurately as is currently possible and action plans have been formulated to mitigate their effects and ensure the security of the charity.

d) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. Income received in advance is deferred until the criteria for income recognition are met.

e) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity: this is normally on notification of the interest paid by the Bank.

f) Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Restricted funds are grants which the grantors have specified are to be solely used for particular areas of the charity’s work or for specific activities undertaken by the charity.

10

BEACON RECOVERY NOTES TO THE ACCOUNTS (cont’d) for the year ended 31 May 2021

g) Expenditure and unrecovered VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure on charitable activities includes all activities undertaken to further the purposes of the charity and their associated support costs. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

h) Operating leases

The charity classifies the lease of printing and other equipment as operating leases; the title to the equipment remains with the lessor. Rental charges are charged on a straight line basis over the term of the lease.

i) Tangible fixed assets

Individual fixed assets are capitalised at cost and are depreciated on a straight line basis over their estimated useful economic lives on the following bases:

Equipment other than computers over 10 years Computers over 3 years Furnishings over 2 years

j) Debtors Trade and other debtors are recognised at the net settlement value. Prepayments are valued at the net prepaid amount.

k) Cash at bank and in hand

Cash at bank and in hand includes cash and current account balances.

l) Creditors and provisions

Creditors and provisions are recognised when 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 and provisions are normally recognised at their net settlement value.

m) Financial instruments

The charity has no financial instruments and no financial liabilities.

n) Transition to FRS 102

No restatement of items has been required in making the transition to FRS 102. The transition date was 1 June 2015.

o) Volunteers

The charity benefits greatly from the involvement and enthusiastic support of its many volunteers, details of which are given in the annual report. In accordance with FRS 102 and the Charities SORP (FRS 102), the economic contribution of general volunteers is not recognised in the accounts.

11

BEACON RECOVERY

NOTES TO THE ACCOUNTS (cont’d) for the year ended 31 May 2021

2. Income from charitable activities

Government grant - CJRS
Supported Housing provision income
Comparatve analysis for 2020
3. Total resources expended
Direct costs
Wages & Salaries
Employers NI
Pension costs
Staf Training & Travel
Property Rents
Rates
Light, heat and power
Water
Insurance
Equipment maintenance
Repairs and maintenance
Communicaton costs
Printng, postage and statonery
Payroll
Accountancy
Bank Charges
Volunteer costs
Cleaning
Travel and sustenance
Client support
Motor costs
Drug testng
Depreciaton
Comparatve analysis for 2018
Support costs – governance		 Unrestricted
Funds
£
5,425
436,822
452,400
Unrestricted
Funds
192,449
10,096
3,694
540
145,327
4,496
38,657
18,097
8,753
3,186
2,863
3,986
399
480
1,200
157
-
497
48
1,212
880
672
2,634
440323
418,308
1,800
 Restricted
Funds
£
-
8,130
2,230
Restricted
Funds
6,177
852
185
55
519
342
8,130
2,230
0
 Total
2021
£
5,425
444,952
454.630
Total
2021
198,626
10,948
3,879
595
145.327
4,496
38,657
18,097
8,753
3.186
2,863
3,986
399
480
1,200
157
-
1,016
48
1,212
1,222
672
2,634
448,453
430,538
1,800
 Total
2020
£
-
454.630
Total
2020
186,902
12,558
3,979
1,762
141,719
3,437
43.737
7,869
9.612
1,261
4,355
4,919
610
480
1,200
135
3
1,217
184
1,324
-
1,249
2,026
430,538
1,800

4. Trustees remuneration

Expenses paid to any trustee during the year were Nil (2020 – Nil). Professional fees for accounting and payroll services amounting to £1,680 (2020- £1680)were paid to Peter J Bloom, a firm of Chartered Accountants, of which Peter Bloom, a trustee, is a partner.

12

BEACON RECOVERY

NOTES TO THE ACCOUNTS (cont’d) for the year ended 31 May 2021

BEACON RECOVERY
NOTES TO THE ACCOUNTS (cont’d) for the year ended		 31 May 2021
5. Net expenditure includes

Depreciaton of owned assets
Independent examiner’s fees		 2021
2,634
1,800		 2020
2,026
1,800

6. Staff numbers and the cost of key management personnel and staff

Wages and salaries
Social security costs
Pension costs
Total
The average number of persons employed during the year was:
Housing Workers
Administraton		 2021
193.201
10,948
3,879
208,028
2021
7
3
10		 2020
186,902
12,558
3.979
203,439
2020
6
3
9

No employee received remuneration in excess of £60,000 in either year

The key management personnel of the charity are deemed to be the Housing Manager and the Deputy Manager whose employee benefits totalled £81,872 (2019 - £80,156) 7. Taxation

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

8. Tangible fixed assets


Cost
As at June 2020
Additons
As at 31 May 2021
Depreciaton
As at June 2020
Charge for the year
As at 31 May 2021
Net Book Value
As at 31 May 2021
As at 31 May 2020		 Motor vehicle
Fixtures, ftngs
and equipment
£
£
-
15,613
4500
7,444
4500
23,057
-
13,959
810
1,824
810
15,783
3690
7,274
-
1,654		 Total
£
15,613
11,944
27,557
13,959
2,634
16,593
10,964
1,654

13

BEACON RECOVERY NOTES TO THE ACCOUNTS (cont’d) for the year ended 31 May 2021 9. Debtors

9. Debtors
Trade debtors
Prepayments and accrued income
10. Creditors: amounts falling due within one year
Note
Loan
12
Trade creditors
Taxaton and social security
Accruals and deferred income		 2021
£
34,498
6,285
40,783
2021
£
4.032
930
3.094
13,760
21,816		 2020
£
39,754
6,182
45,936
2020
£
22,032
5,545
2,926
23,144
53.647

11. Members’ liability

The charity is a charitable incorporated organisation and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of winding-up.

12. Related parties

Related party transactions

Peter Bloom, a trustee, provided working capital during the first and third years of the charity’s activities. At 31 May 2021, the outstanding balance due to him was £4,032 (2020 - £22,032).

13. Analysis of funds

At 1
Jun-20
£
General funds
Unrestricted income fund
82,049
Restricted funds
Morisson Foundaton
0
Total funds
82,049
4. Analysis of net assets between funds
Tangible assets
Current assets
Creditors: amounts falling due within one year
Net assets		 Incoming
resources
£
442,247
8,130
444.952		 Resources
expended
£
-442,123
-8,130
-444,828
Unrestricted
Funds
£
10,964
93,025
(21,816)
82,173		 At 31
May-21
£
82,173
0
82,173
Total
Total
2021
2020
£
£
10,964
1,654
93,025
134,042
(21,816)
(53,647)
82,173
82,049		 At 31
May-21
£
82,173
0
82,173
Total
Total
2021
2020
£
£
10,964
1,654
93,025
134,042
(21,816)
(53,647)
82,173
82,049
Total
2021
£
10,964
93,025
(21,816)
82,173
82,049

14. Analysis of net assets between funds

14

BEACON RECOVERY NOTES TO THE ACCOUNTS (cont’d) for the year ended 31 May 2021

15. Reconciliation of net movement in funds to net cash flow from operating activities

Net movements on funds
Add back depreciaton charge
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash used in operatng
actvites
,,		 2021
£
124
2,634
5,153
(31,831)
(23,920)		 2020
£
22,308
2,026
(15,938)
6,707
15,103

15