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2020-10-31-accounts

HOSPITALITY AND HOPE CIO

REPORT AND FINANCIAL STATEMENTS For the year ended 31 October 2020

Charity Number 1159213

HOSPITALITY AND HOPE CIO

ANNUAL REPORT AND FINANCIAL STATEMENTS

For the year ended 31 October 2020

Contents Page
Trustees annual report 1 to 14
Independent examiners report 15
Statement of Financial Activities (including 16
income and expenditure account)
Balance sheet 17
Notes to the financial statements 18 to 30

HOSPITALITY AND HOPE CIO TRUSTEES ANNUAL REPORT For the year ended 31 October 2020

The trustees are pleased to present their annual trustees’ report together with the financial statements of the charity for the year ended 31 October 2020.

The financial statements comply with the Charities Act 2011, the Memorandum and Articles of Association, 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)

1. Objectives and Activities

The objectives of the charitable incorporated organisation (CIO) are to bring hope to the local community through:

During the period 1 November 2019 to 31 October 2020 the regular activities of Hospitality and Hope were

The following activities were operational until March 20 when they were suspended in line with Government guidelines related to Covid 19.

1

2. Achievements and performance

We have been working at grassroots level for more than 18 years and are embedded within the local community. Addressing the immediate impact of poverty for individuals and families is our main focus. We are also working hard to extend services and support to provide a more holistic approach, which will contribute towards the longer term changes needed to improve beneficiaries’ quality of life and future prospects.

Hospitality and Hope has worked tirelessly during 2019/20 to maintain the provision of essential support to our local community. In addition to historically high levels of deprivation, the community has been ravaged by the impact of the COVID-19 pandemic. Like many charities, we continued to support our community by responding with pace and flexibility to the changing needs brought about by high levels of financial poverty resulting from Furlough and the loss of employment.

Notwithstanding the challenges faced by delivering frontline services during a period of substantial national emergency, the Trustees of Hospitality and Hope consider their charitable objectives have been met.

A summary of our key achievements for the year 2019 to 2020

Increased demand for our Food Bank:

Meeting Community Need:

2

Improving Operational Effectiveness:

OUR ACHIEVEMENTS IN DETAIL

Context: A Year Like No Other

For most of this financial year, we have been delivering services during the Covid-19 pandemic. There were only five months when our full portfolio of services were offered. The first National Lockdown in March 2020 saw us suspending our Soup Kitchen and Community Cafe services in compliance with Covid-19 restrictions and regulations.

Between April and October 2020, we focused on the delivery of the:

Strong Governance

The Board of Trustees continue to provide strong leadership and robust governance for the charity. At the start of Lockdown in March 2020, they increased the frequency of Trustee meetings, to weekly, to ensure that our work responded quickly and flexibly to the changing demands during a worldwide pandemic. These meetings were held virtually and continue to in this way until Government advice allows for in person meetings. The Treasurer updated cashflow projections regularly to inform the strategic planning process as well as the performance and financial management of the charity.

The Funding Steering Group continued to meet monthly under the direction of the board, to manage funding applications and the monitoring of funded programmes. A new Finance Steering Group was established in May 2020 to further strengthen our financial robustness.

Our Service Delivery

We offer a portfolio of services developed over time in response to beneficiaries changing needs: Food Bank, Supported Living Accommodation (SLA), Wellbeing Activities, Soup Kitchen and Community Café.

3

Supporting Food Poverty: South Tyneside Food Bank

Our Food Bank is a key component to our crisis relief service. In response to Covid-19 and with the support of national and local emergency funding from Charities Aid Foundation (CAF), Money Saving Expert, The National Lottery Community Fund, Community Foundation Tyne and Wear and South Tyneside Council this service was scaled up:

Between November 2020 and October 2021, our Food Bank received 1,822 requests for support from both self-referrals and a wide range of referral partners including Social Care, HMO’s, schools and health organisations. This was to support 4,782 people (3232 adults and 1,550 children). The main reasons for referrals were benefit changes; debt and low income. This is an increase of 36% on the previous year when 1,337 request for support 3,601 people (2,041 adults and 1,559 children). Our peak was at the beginning of Covid-19 (March to May 2020) when we saw a 50% increase on the same period in the previous year. To meet this increased demand, 37 tonnes of food was given out, an increase of 12 tonnes on the previous year (a 48% increase).

The new Food Bank data collection systems provided access to on-going, consistent, highquality data and intelligence on client referrals and stock movements at a more granular level. It has highlighted that the profile of those needing support with food is changing due to the impact of Covid-19. We have plans to increase partnership working and adapt our marketing to engage with them more effectively to offer support in the coming year.

We have worked hard to further develop a partnership approach to providing emergency food to families and individuals. We have been working closely with local community groups, charities and schools to distribute support directly to their beneficiaries. As well as offering a direct route to some groups that would otherwise not access our Food Bank, this route also removes the stigma of collecting from a Food Bank.

4

Reducing Homelessness

Our Supported Living Accommodation (Chai House) provides a supportive and active environment for five vulnerable homeless men. During their time as a resident, each person has a personalised support plan with individual goals and milestones to address their need and progress them towards independent living. Each resident makes a commitment to contribute positively to the community through volunteering. Prior to Covid-19, the residents were volunteering regularly in our community café and our Food Bank.

This year, we have supported a total of 14 residents providing a home and on-going support to ensure that they could address their individual issues and prepare them for mainstream services. As individuals, they addressed issues of alcohol or substance misuse contributing to homelessness (9 residents); Mental health interventions (5 residents); made significant progress towards improving their employability including volunteering (10 residents); found employment as a direct result of the support given (3 residents); made significant progress to moving towards an independent home (6 residents) with four more making the transition. All residents addressed multiple issues.

“The charity has helped me in all sorts of ways, having a good night’s sleep and someone to talk to has made all the difference, it’s changed my life.”

“The support at Chai House and the café has massively helped my mental health, giving me purpose and hope, having someone to talk to on bad days without judging me, having a laugh with staff who accept me for who I am and being able to look forward to another day. This is a world away from where I was, depressed, lonely and feeling like I had no future”.

During this year we commenced research and a feasibility study on acquiring an additional property to house residents as part of their structured move on. The data collated from previous residents’ shows that there is a high percentage of regression when independent living is secured. The leap from supported housing into independent is just too big. A ‘semisupported’ option to bridge the gap would be highly beneficial to residents and be a valuable component of their journey into independent living. This work will be taken forward into our plans for 2020/21.

Improving Health and Wellbeing

Improving the emotional, financial and physical wellbeing of our community remains a core priority for us. Prior to Covid-19, our Support Worker: Wellbeing offered a programme of health and wellbeing activities for our clients. During the spring, we began a series of fourweek ‘Cooking on a Budget’ sessions using the kitchen at Hampden Street, which previously had been at the hearty of our Soup Kitchen operation.

From April, we continued wellbeing support for the residents of our Supported Living Accommodation (SLA) and a small number of vulnerable Soup Kitchen clients. We provided weekly online support to assist with their mental health and emotional resilience. As restrictions were eased during the summer, a wellbeing resilience programme was developed for the residents including a community garden project.

To support financial wellbeing and to move clients away from the need for emergency food provision, we introduced an onsite Debt Worker in partnership with Age Concern Tyneside South (ACTS). This will be operational until August 2021.

5

Services offered in the period before the Covid-19 pandemic included:

Soup Kitchen

Our volunteer-run soup kitchen was able to operate for the first half of the financial year but sadly had to cease due to lockdown restrictions. During this time, support was provided to vulnerable and homeless people within the area with the provision of a safe place to eat a hot meal, onsite support through our volunteers and signposting to any deeper support required through other local agencies. From November 2019 to March 2020, we engaged with a total of 79 clients, providing over 200 meals.

During the first few weeks of lockdown the soup kitchen operated a take-out meal option, online/telephone support and attempted to contact many with offers of support via the Food Bank.

Clothing Bank

The extension of our Food Bank was achieved by scaling back our Clothing Bank to an essentials only service in Spring 2020. The removal of this service freed up significant floor space to extend stock holding capability of the Food Bank. A clothing drop off facility in partnership with the Salvation Army was placed in our car park, to allow our supporters to continue to donate clothing to those in need.

Chai Café

Our Community Cafe has provided a quality hub for the local community while also being a resource for training and volunteering for two and a half years. The residents from our Supported Living Accommodation, and lately students from partner organisations have gained invaluable volunteering and on the job training using this community resource.

“Jake progressed from Chai Café into a placement in Newcastle, four days a week. In the past few weeks he has shown enough ability to potentially be offered paid employment if his performance continues as a Kitchen Porter. Although only a short time was spent at Chai Café, the experience of working within a professional environment, and the support he received has enabled Jake to quickly progress to where he has secured a paid position. He was challenged within the placement, enough to build on his core skills in catering, gaining knowledge around a breakfast service and barista training that he can now take to further his career”. NHS Placement Feedback: Nathan Baxter, Project Choice Co-ordinator.

Sadly, our community café was unable to continue trading in a financially viable way as a result of Covid-19 restrictions and decreased footfall in the area. Staff were initially furloughed and then made redundant in July 2020 when the Trustees took the difficult decision to permanently close the facility

Increasing our efficiency

Our digital agenda continued to gather momentum during the year with further strengthening of our website presence, supported by digital communications across social media including Facebook, Linkedin, Twitter and a new Instagram account.

Throughout the year, we have continued to build upon our success in further developing our digital systems in relation to accounting software, information systems and systems to support remote working. In addition, we secured infrastructure support via an outsourced arrangement that ensures our systems are secure, safe, reliable and legislatively compliant.

6

Charity income

Income for the charity rose to £371k during the year, a rise of 26% on the previous year. £209k of this was secured as restricted income from various trusts and funders, which contributed towards core costs and specific projects. A General Appeal for staffing costs was successful. Increased supporter engagement, particularly online grew by £21k. We have recently engaged the expertise of a Consultant to lead a Winter Campaign to extend community engagement while raising the profile of the charity and generating 15 tonnes of stock for the Food Bank and a target to raise £15k in donations.

Staffing

At the start of the year, Hospitality and Hope employed nine staff members (5.3FTE). The CEO (f/t) has overall responsibility for the operational delivery of the charity. Our central office hosted four staff: Volunteer Coordinator (0.5 FTE); Administrative Assistant (0.5 FTE); Support Worker: Wellbeing (0.25FTE) and Funding Officer (0.4 FTE)). In addition, our Community Cafe had three staff members (Coffee House Manager (f/t); two Cafe Assistants (0.5 FTE); and our Supported Living Accommodation one full time worker.

A large part of our success can be attributed to the dedication and time given by our family of volunteers. Again, this service was severely impacted by the COVID-19 restrictions as our volunteers followed national COVID-19 restrictions and shielding advice. As restriction eased over the summer and autumn months, we introduced a bubble shift system that enabled some volunteers to return to support the Food Bank.

Throughout the year, sometimes in response to the Covid-19 pandemic, there have been some staff changes:

7

3. Financial review

Review of the year

The results for the year and the charity’s financial position at the end of the year are shown in the attached financial statements.

During the year the Charity had income of £371,080 of which £208,949 was restricted (2019: £294,709 of which £270,072 was restricted) and expenditure of £324,029 of which £224,064 was restricted (2019: £248,355 of which £236,974 was restricted). The income and expenditure include £62,530, which is the value of the donated stock distributed through the food bank in the year. There was an operating surplus of £47,051 of which a deficit of £20,754 was restricted (2019: surplus £ 46,354 of which a surplus of £11,772 was restricted).

At 31 October 2020, the Charity had net assets of £692,100 of which £529,381 was restricted (2019 £645,049 of which £563,439 was restricted). The funds of the Charity includes £507,359, which is the book value of the freehold land and building at Laygate, which houses our supported living accommodation and community café.

Reserves policy

The Trustees consider the level of reserves £162,719 (2019:£94,914) to be prudent, this includes a designated contingency fund of £71,000 to cover emergency repairs to our properties which are vital to the delivery of our services, and potential liabilities in the event that the charity ceases. Our Reserves Policy is reviewed annually.

4. Plan for future - Our ambition for the next 12 months

Hospitality and Hope provides services within a community that continues to be challenged by high levels of deprivation. Many of the people in South Tyneside are living in an area that is within the 10% most deprived in the country and significantly below the 10% most deprived for low income, unemployment, health and education, & skills.

As we plan for the next year, holding onto our charitable roots is of paramount importance as this enables us to learn from the lived experience of our community and shape services that are truly informed by need. Allied to this is our renewed commitment to take an evidence-based approach to developing services that are proven to bring about positive change and have impact.

To ensure that Hospitality and Hope remains at the forefront of delivering local services, especially to those in or community who need a helping hand, the Board of Trustees have approved an ambitious three year strategic plan.

8

Whilst upholding the values that are important to us, we will be more innovate and forward thinking, designing and delivering services that meet our community’s highest levels of need which are Health and Wellbeing, Food Poverty, Homelessness and Employment.

During the 2020/21 year we will implement ‘phase one’ of our plan and we will endeavour to increase our positive contribution in the following;

Priority One: Tackling Food Poverty. Priority One: Tackling Food Poverty.
Year We will take a preventative approach to food poverty by;
2021/22 Increasing our foodbank reach by partnering with schools to
identify families at risk of food crisis.
Supporting people to acquire the skills and equipment to feed their
family on a budget, developing their understanding of the benefits
of fresh healthy food.
Exploring the benefits of opening an affordable food shop/Pantry,
preventing families entering food crisis.

9

Priority Two; Reducing Homelessness.

Year We will prevent homelessness by;
Exploring the potential to expand our supported living
2021/22 accommodation.
Considering expansion of our housing support service by
developinga street triage for homelesspeople.
Priority Three: Improving Community Wellbeing.
Year We will take a preventative approach to community wellbeing by;
Year We will take a preventative approach to community wellbeing by;
Employing a full-time wellbeing Manager.
Taking an evidence-based approach to the development of our
2021/22 wellbeing strategy.
In partnership with others, developing our Chai coffee house into
a wellbeing anchor, creating a ‘one stop’ support network for
those in need of support for their emotional, financial or physical
wellbeing.
Deliver a wellbeing programme for our supported living residents.
Priority four: Increasing Employability.
Year We will increase community employability by;
Year We will increase community employability by;
Delivering an employability programme for our Chai House
2021/22 residents so that they enter mainstream housing equipped to
secure and maintain employment.

10

Business development opportunities.

We will support the delivery of our strategic priorities by;

Connecting with and learning from organisations supporting seldom hear communities.

Increasing our community reach via enhanced community engagement and social media.

Seeking to increase the membership of our Board of Trustees.

Measuring Our Success.

As we move through the next year, we will demonstrate impact and measure our success across 4 core areas.

Understanding the needs of our community and having increased reach.

Measuring the success and impact of individual projects.

Evaluating and tracking the positive impact on people that our services brings .

Tracking how effectively we meet our strategic priorities .

11

5. Reference and administrative details of the charity, its trustees and advisors

Registered charity name Hospitality and Hope Charity number 1159213 Registered office Hampden Street Centre Hampden Street South Shields Tyne and Wear. NE33 4JR Trustees and Members of the Board Pauline Tinnelly (Chair) Sue Chilton (Treasurer) Sir David Chapman BT Peter Maloney Avril Robinson (resigned 22.11.19) Ann Rodgers Sarah Green David Wheatley (appointed 22.11.19)

Chief Executive and Senior staff Paul Oliver members

Independent Doug Maltman FMAAT Examiner Connected Voice Business Services Ltd Higham House Higham Place Newcastle upon Tyne NE1 8AF Bankers HSBC 110 Grey Street Newcastle Upon Tyne Tyne & Wear NE1 6JG

12

6. Structure, governance and management

Governing Document

The organisation is a Charitable Company Limited by Guarantee. The Company was established under a Memorandum of Association, which established the objects and powers of the Charitable Company and is governed under its Articles of Association. In the event of a winding up any member (who is a director) undertakes to contribute to the payment of liabilities, such amount as may be required not exceeding the total of £1.

Recruitment and Appointment of the Board

The Directors of the Company are also Trustees for the purposes of charity law and under the company's Articles are also its members. Under the requirements of the Memorandum and Articles of Association, at the Annual General Meeting one-third of the Directors, who are subject to retirement by rotation, shall retire. Retiring Directors can be re-appointed at the Annual General Meeting.

Trustees are selected on the basis of specialist skills and commitment to the objectives and aims of the organisation.

Board Induction and Training

New Board Members are introduced to the work of the organisation and informed of their legal roles and responsibilities at an induction meeting. The induction and training programme for new Board Members includes:

13

7. Statement of Trustee Responsibilities

The trustees 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).

Charity SORP 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 incoming resources and application of resources, including the receipts and payments of the charity for that year. In preparing those financial statements, the trustees are required to:

The trustees are responsible for keeping accounting records that disclose with reasonable accuracy at any time the financial position of the charity. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Trustees on 26.05.2021 and signed on their behalf by:

Pauline Tinnelly Chair

14

HOSPITALITY AND HOPE CIO

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES

For the year ended 31 October 2020

I report on the financial statements of Hospitality and Hope CIO for the year ended 31 October 2020, which are set out on pages 16 to 30.

Respective responsibilities of trustees and examiner

The charity's trustees 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 of the Charities Act 2011 ("the Charities Act) and that an independent examination is needed.

The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a Fellow Member of the Association of Accountancy Technicians.

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:

Basis of independent examiner's statement

My examination was carried out in accordance with 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 the 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 material matters have come to my attention which gives me cause to believe that in, any material respect:

I 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.

Doug Maltman FMAAT Connected Voice Business Services Ltd Higham House Higham Place Newcastle upon Tyne NE1 8AF Date: 26.05.2021

15

HOSPITALITY AND HOPE CIO

STATEMENT OF FINANCIAL ACTIVITIES

For the year ended 31 October 2020

6
7
Other trading activities
8
Expenditure on:
9
10
Total funds carried forward
Reconciliation of funds
Total funds brought forward
Net income/(expenditure) before
transfers
Notes
Total income
Donations and legacies
Income from:
Charitable activities
Grants and contracts
Raising funds
Operation of the charity
Total expenditure
Net movement of funds
Charitable activities
Transfers between funds		 Unrestricted
Funds
£
107,043
53,343
1,745
162,131
-
99,965
99,965
62,166
5,639
67,805
94,914
162,719		 Restricted
Funds
£
500
125,024
83,425
208,949
-
224,064
224,064
( 15,115 )
( 5,639 )
( 20,754 )
550,135
529,381		 Total
2020
£
107,543
178,367
85,170
371,080
-
324,029
324,029
47,051
-
47,051
645,049
692,100		 Total
2019
£
22,537
150,008
122,164
294,709
230
248,125
248,355
46,354
-
46,354
598,695
645,049

The Statement of Financial Activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities

The notes on pages 18 to 30 form an integral part of these accounts.

16

Charity Number 1159213

HOSPITALITY AND HOPE CIO

BALANCE SHEET

As at 31 October 2020

£
Fixed assets
Tangible assets
17
Total fixed assets
Current assets
Stock
19
20
Debtors
19
14,715
Cash at bank and in hand
20
250,600
Total current assets
265,335
Creditors:amounts falling due within
one year
21
( 70,898 )
Net current assets
Total assets less current liabilities
Creditors:amounts falling due after
more than one year
22
( 10,000 )
Total net assets or liabilities
Funds of the charity
Unrestricted income funds
Restricted income funds
Total funds
Notes
Chair
These financial statements were approved by the Board on:
and are signed on its behalf by:
P Tinnelly		 £
Fixed assets
Tangible assets
17
Total fixed assets
Current assets
Stock
19
20
Debtors
19
14,715
Cash at bank and in hand
20
250,600
Total current assets
265,335
Creditors:amounts falling due within
one year
21
( 70,898 )
Net current assets
Total assets less current liabilities
Creditors:amounts falling due after
more than one year
22
( 10,000 )
Total net assets or liabilities
Funds of the charity
Unrestricted income funds
Restricted income funds
Total funds
Notes
Chair
These financial statements were approved by the Board on:
and are signed on its behalf by:
P Tinnelly		 Total
2020
£
507,663
507,663
194,437
702,100
692,100
162,719
529,381
692,100
26.05.2021		 £
1,476
10,405
153,316
165,197
( 16,751 )
( 20,000 )		 Total
2019
£
516,603
516,603
148,446
665,049
645,049
94,914
550,135
645,049

17

HOSPITALITY AND HOPE CIO

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 October 2020

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:

2 Basis of accounting

2.1 Basis of preparation

These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.

The accounts 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 2019) – Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

Hospitality and Hope CIO meets the definition of a public benefit entity under FRS 102.

2.2 Preparation of the accounts on a going concern basis

The charity reported total unrestricted funds at the year end of £162,719 and has already secured a significant amount of funding for the current year. The trustees are of the view that the immediate future of the charity for the next 12 months is secure and that on this basis the charity is a going concern.

The COVID-19 pandemic, has put pressure on all businesses in 2020. It should be noted that the trade debtors have been received and the creditors are being paid when the payments are falling due. With the deferred income being held for the activities during 2020-21.No other significant events affecting the Charity since the year end.

3 Income

3.1 Recognition of income

Income is recognised when the charity has entitlement to the resources, any performance conditions attached to the item(s) of income have been met, it is more likely than not that the resources will be received and the monetary value can be measured with sufficient reliability

3.2 Offsetting

There has been no offsetting of assets and liabilities, or income and expenses, unless required or permitted by FRS102 SORP or FRS102.

3.3 Grants and donations

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 of the provision of a specified service is deferred until the criteria of income recognition are met.

3.4 Volunteer help

The value of volunteer help received is not included in the accounts but is described in the trustees' annual report.

18

HOSPITALITY AND HOPE CIO

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 October 2020

3.5 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 upon notification of the interest paid or payable by the bank.

3.6 Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity.

4 Expenditure and liabilities

4.1 Liability recognition

Liabilities are recognised when it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty.

4.2 Charitable activities

Expenditure on charitable activities includes the costs of work and other activities undertaken to further the purposes of the charity and their associated support costs.

4.3 Governance and support costs

Support costs have been allocated between governance cost and other support. Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice.

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources.

4.4 Irrecoverable VAT

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

4.5 Creditors

The charity has creditors which are measured at settlement amounts less any trade discounts.

4.6 Provisions for liabilities

A liability is measured on recognition at its historical cost and then subsequently measured at the best estimate of the amount required to settle the obligation at the reporting date.

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HOSPITALITY AND HOPE CIO

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 October 2020

5 Assets

5.1 Tangible fixed assets for use by the charity

Individual fixed assets costing £250 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a straight line basis.

Office and computer equipment 25% straight line Laygate property furniture 25% straight line Freehold land and buildings straight line over 50 years

20

HOSPITALITY AND HOPE CIO

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 October 2020

Analysis of income

6
7		 Donations and legacies
Charitable activities
Income from grants
Hilden Charitable Trust - Staffing
Miranog Trust
Joicey Trust
HMRC Job Retension Grant
Grocers Charity
South Tyneside Council - Business Continuity
Serco Foundation
William Webster CF
Community Foundation - Covid
J Kinnair
Greggs Foundation - Hampden Street
Awards for all - Staffing
Community Foundation - Cookery course
Various funders - Staffing
Tenants grant
South Tyneside Council - Foodbank
Ballinger Charitable Trust - Staffing
Sir James Knott Trust - Staffing
Willian Trust - Café
Gisela Graham Foundation - Staffing
Sir David Chapman - Staffing
CAF - Foodbank
Donations and gifts
Gift Aid
Other
Cultural Spring
Muckle - Café
J Priestman
Barbour Trust - Staffing
Chapman Charity - Staffing
Hendley Denton
MSE - Foodbank
WO Street CT
Donated goods for distribution to recipients		 Unrestricted
Funds
£
41,512
62,530
745
2,256
107,043
-
-
-
-
-
-
-
-
-
-
2,000
-
-
843
-
-
1,000
-
-
-
-
-
12,500
20,000
2,000
-
10,000
-
5,000
-
53,343		 Restricted
Funds
£
500
-
-
-
500
15,000
10,000
-
-
-
-
-
2,871
-
-
39,000
9,790
5,366
-
1,525
5,000
-
5,500
7,000
10,000
1,000
4,500
-
-
-
2,000
-
1,000
-
5,472
125,024		 Total
2020
£
42,012
62,530
745
2,256
107,543
15,000
10,000
-
-
-
-
-
2,871
-
-
41,000
9,790
5,366
843
1,525
5,000
1,000
5,500
7,000
10,000
1,000
4,500
12,500
20,000
2,000
2,000
10,000
1,000
5,000
5,472
178,367		 Total
2019
£
20,320
-
2,136
81
22,537
15,000
17,500
5,000
9,838
30,000
10,000
2,000
6,000
19,950
220
-
-
-
-
-
-
-
7,500
27,000
-
-
-
-
-
-
-
-
-
-
-
150,008

21

HOSPITALITY AND HOPE CIO

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 October 2020

8
Other trading activities
Room Hire
Supported Living Accommodation
residents
Laygate café
Fundraising events		 1,545
200
-
-
1,745		 -
-
61,740
21,685
83,425		 1,545
200
61,740
21,685
85,170		 1,500
600
65,091
54,973
122,164

Income was £371,080 (2019: £294,709) of which £162,131 was unrestricted or designated (2019: £24,637) and £208,949 was restricted (2019: £270,072)

22

HOSPITALITY AND HOPE CIO

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 October 2020

Analysis of expenditure on charitable activities

9
10		 Raising funds
Charitable activities
Direct costs
Support costs
- Premises
- Staff salaries
- Pension costs
- Activity
- Staff NI
- Office costs
- vehicle costs
- NI costs
- Other expenses
- Salary costs
- Other expenses
- Activities
Soup kitchen
- NI costs
- Pension costs
- House expenses
Fundraising costs
Staff salaries
Staff NI
Pension costs
Volunteer Co-ordinator costs:
Training
Travel
- Food
- Pension costs
Hospitality
Literature
Telephone
Loss on disposal of asset
Laygate - Supported living Accommodation core
costs:
- Salary costs
-Office costs
DBS costs
Donated goods distributed to recipients
Food bank core costs:
Activities/events		 Unrestricted
Funds
£
-
-
13,031
4,448
2,396
-
80
62,530
-
-
-
-
-
-
-
46
-
-
-
-
222
183
41
196
-
-
-
-
-
-
-
-
-
-		 Restricted
Funds
£
-
-
46,525
10
-
-
-
-
34,749
899
155
332
11,048
6,834
137
1,095
13,000
589
390
-
-
-
-
136
-
33,780
3,170
933
1,015
3,474
321
1,768
436
1,204		 Total
2020
£
-
-
59,556
4,458
2,396
-
80
62,530
34,749
899
155
332
11,048
6,834
137
1,141
13,000
589
390
-
222
183
41
332
-
33,780
3,170
933
1,015
3,474
321
1,768
436
1,204		 Total
2019
£
230
230
60,603
6,461
2,009
65
573
-
-
-
-
160
43
-
561
-
12,567
430
-
1,014
-
43
124
382
155
30,422
2,072
616
5,030
2,624
129
650
122
780

23

HOSPITALITY AND HOPE CIO

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 October 2020

Support costs (continued)
Governance costs
Police Commissioners Fund
- Other expenses
- Salary costs
- Food and drink
- Activities
- Janitor
- Premises costs
Equipment
Depreciation
Membership fees
Sundry
- Leases
- Redundancy payments
- NI costs
- Pension costs
- Premises costs
- Refreshments
- Inspections
- Office costs
Laygate - Café core costs:
- Office costs
- Inspection
- Licences
- Staff expenses
Independent examiner's fees for reporting on the
accounts
Greggs Foundation core costs
Cultural Spring
- Other expenses
- Activities
- Insurance
- Payroll fees
Tenants
Stationery
ICT software
Marketing and communications
Building repairs		 Unrestricted
Funds
£
-
-
-
-
-
-
-
-
411
-
-
-
1,500
1,603
1,283
757
-
3
2,131
4,240
3,856
-
-
-
-
-
-
-
-
-
-
-
-
1,008
99,965		 Restricted
Funds
£
14,738
2,165
812
2,002
2,395
766
4,028
2,004
7,211
671
1,622
268
-
122
691
8,229
-
-
-
-
2,000
-
290
457
559
2,262
4,847
2,874
1,016
35
-
-
-
-
224,064		 Total
2020
£
14,738
2,165
812
2,002
2,395
766
4,028
2,004
7,622
671
1,622
268
1,500
1,725
1,974
8,986
-
3
2,131
4,240
5,856
-
290
457
559
2,262
4,847
2,874
1,016
35
-
-
-
1,008
324,029		 Total
2019
£
37,477
1,684
616
-
2,347
980
7,898
2,439
17,687
2,302
1,246
538
-
1,310
3,296
9,018
130
349
389
10,241
180
1,914
31
512
590
1,204
9,664
411
884
-
1,526
849
1,819
960
248,125

Expenditure on charitable activities was £324,029 (2019: £248,355) of which £99,965 was unrestricted or designated (2019: £11,381) and £224,064 was restricted (2019: £236,974)

24

HOSPITALITY AND HOPE CIO

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 October 2020

11 Fees for examination of the accounts

Other accountancy services paid to the examiner
Independent examiner's fees for reporting on the accounts		 2020
£
1,008
1,016
2,024		 2019
£
960
884
1,844

12 Analysis of staff costs and the cost of key management personnel

Pension costs (defined contribution pension plan)
Redundancy payments
Salaries and wages
Social security costs		 2020
£
150,351
2,002
11,281
4,686
168,320		 2019
£
141,069
-
10,647
3,241
154,957

Due to Café closure during the Covid 19 restrictions three staff were made redundant.

No employee received remuneration above £60,000 (2019: £nil)

The key management personnel of the charity, comprise the Chief Executive Officer. The total employee benefits of the key management personnel of the charity were £39,679.

13 Staff numbers

The average monthly head count was 9 staff (2019: 8 staff) and the average monthly number of full-time equivalent employees during the year were as follows:

The parts of the charity in which the employee's work
Charitable activities		 2020
Number
6.5
6.5		 2019
Number
6.5
6.5

14 Transactions with trustees

None of the trustees have been paid any remuneration or received any other benefits from an employment with their charity or a related entity.

Trustees' expenses

No trustee expenses have been incurred in the year.

Transaction(s) with related parties

There have been no related party transactions in the reporting period.

Sir David Chapman is also a board member for Chapman Charitable Trust and The Giesla Graham Foundation.

25

HOSPITALITY AND HOPE CIO

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 October 2020

15 Defined contribution pension scheme

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The employer's pension costs represent contributions payable by the charity to the fund and amount to £4,686 (2019: £3,241). There was £644 outstanding as at 31 October 2020 (2019: £0)

16 Corporation Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objectives.

17 Tangible fixed assets
Cost
Balance brought forward
Additions
Disposals
Balance carried forward
Depreciation
Basis
Rate
Balance brought forward
Depreciation charge for year
Disposals
Balance carried forward
Net book value
Brought forward
Carried forward
18 Stock
Opening stock
Added in period
Closing stock
Expensed in period
Impaired		 Office and
computer
equipment
£
3,147
-
-
3,147
SL
25%
2,205
711
-
2,916
942
231		 Laygate
property
furniture
£
10,165
-
-
10,165
SL
25%
7,551
2,541
-
10,092
2,614
73		 Freehold
land and
Buildings
£
524,423
-
-
524,423
SL
50 years
11,376
5,688
-
17,064
513,047
507,359
2019
£
1,476
20
-
( 1,476 )
20		 Total
£
537,735
-
-
537,735
21,132
8,940
-
30,072
516,603
507,663

26

HOSPITALITY AND HOPE CIO

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 October 2020

19 Debtors and prepayments (receivable within 1 year)
2020 2019
£ £
Debtors 2,200 565
Credit card 2,393 -
Prepayments 176 638
Gift Aid 9,946 9,202
14,715 10,405
20 Cash at bank and in hand
2020 2019
£ £
Cash at bank 250,450 153,166
Cash in hand 150 150
250,600 153,316
21 Creditors and accruals (payable within 1 year)
2020 2019
£ £
Accruals
Independent examination of accounts 1,008 960
Loan repayment 10,000 10,000
Credit card 2,013 -
Deferred income
National Lottery Community Fund 27,968 -
Trussell Trust 16,380 -
Other creditors 13,529 5,791
70,898 16,751
22 Creditors and accruals (payable after more than 1 year)
2020 2019
£ £
Long Term Loan 10,000 20,000
10,000 20,000
23 Deferred income
Deferred income comprises of advance payments from grants that relate to future periods
Balance brought forward
Balance carried forward
Amount deferred in year
Amount released to income earned from
charitable activities		 2020
£
-
-
44,348
44,348

27

HOSPITALITY AND HOPE CIO

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 October 2020

24 Events after the end of the reporting period

The COVID-19 pandemic, has put pressure on all businesses in 2020. It should be noted that the trade debtors have been received and the creditors are being paid when the payments are falling due. With the deferred income being held for the activities during 2020-21.No other significant events affecting the Charity since the year end.

25 Analysis of charitable funds

Analysis of movements in unrestricted funds

Unrestricted funds
General unrestricted fund
Designated funds:
Contingency Fund
Totals		 Fund
balances
brought
forward
£
94,914
-
94,914		 Incoming
resources
£
162,131
-
162,131		 Resources
expended
£
( 99,965 )
-
(99,965)		 Transfers
£
( 65,361 )
71,000
5,639		 Fund
balances
carried
forward
£
91,719
71,000
162,719

Purpose of unrestricted funds

Purpose of unrestricted funds
General unrestricted fund The 'free reserves' of the charity
Designated Funds:
Contingency Fund To cover unexpected costs incurred.

Analysis of movement in restricted funds

Restricted funds
Laygate café
Willian Trust - café
Muckle - café
Laygate Supported Living
Accommodation
Foodbank
Greggs Foundation
William Webster CF
Barbour Foundation
Ballinger Charitable Trust
Sir James Knott Trust
Building Fund
Freehold land and Building
Asset - Laygate furniture
Community Foundation - Cookery
course
Chapman Charity
Hilden Charitable Trust		 Fund
balances
brought
forward
£
-
-
-
-
-
3,077
-
15,508
2,416
17,932
( 34,818 )
513,047
2,614
4,095
1,224
5,000		 Incoming
resources
£
27,157
10,000
1,525
61,740
54,156
15,500
2,000
-
5,500
7,000
-
-
-
2,871
-
-		 Resources
expended
£
( 27,157 )
( 10,000 )
( 1,525 )
( 46,101 )
( 54,156 )
( 12,340 )
( 2,000 )
-
( 7,916 )
-
-
( 5,688 )
( 2,541 )
( 6,966 )
( 1,224 )
( 5,000 )		 Transfers
£
-
-
-
( 15,639 )
-
-
-
-
-
-
10,000
-
-
-
-
-		 Fund
balances
carried
forward
£
-
-
-
-
-
6,237
-
15,508
-
24,932
( 24,818 )
507,359
73
-
-
-

28

HOSPITALITY AND HOPE CIO

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 October 2020

Restricted funds (continued)
Various funders - Staffing
M Stephenson
Hadrian Trust
CDCF
Roy and Pixie Baker
WA Handley
RW Mann Trust
Archer Trust
Gisela Graham Foundation
J Priestman
Miranog Trust
Joicey Trust
J Kinnair
Tenants Grant
Totals		 Fund
balances
brought
forward
£
3,950
2,500
1,000
2,000
2,500
5,000
1,000
2,000
-
-
-
-
-
90
550,135		 Incoming
resources
£
-
-
-
-
-
-
-
-
10,000
5,000
1,000
4,500
1,000
-
208,949		 Resources
expended
£
( 3,950 )
( 2,500 )
( 1,000 )
( 2,000 )
( 2,500 )
( 5,000 )
( 1,000 )
( 2,000 )
( 10,000 )
( 5,000 )
( 1,000 )
( 4,500 )
( 1,000 )
-
(224,064)		 Transfers
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(5,639)		 Fund
balances
carried
forward
£
-
-
-
-
-
-
-
-
-
-
-
-
-
90
529,381

Purpose of restricted funds

Restricted funds represent income resources used for a specific purpose within the charity as identified by the

donor.

Laygate café Willian Trust - café Muckle - cafe Laygate Supported Living Accommodation Foodbank Greggs Foundation William Webster CF Barbour Trust Ballinger Charitable Trust Sir James Knott Building Fund Freehold land and buildings Asset - Laygate furniture Community Foundation - Cookery course Chapman Charity Hilden Charitable Trust M Stephenson Hadrian Trust CDCF Roy and Pixie Baker WA Handley RW Mann Trust Archer Trust Gisela Graham Foundation J Priestman

Funds to cover costs of Laygate cafe. Funds to cover costs of Laygate cafe. Funds to cover costs of Laygate cafe. Funds to cover costs of Laygate HMO.

Running costs of foodbank service. Costs of operating Hampden Street. Resurfacing of Hampden Street car park Staffing to develop the charity. Staffing costs. Staffing costs. Funds to cover costs of Laygate property. Value of land and building less depreciation. Value of Laygate furniture less depreciation. Cooking on a budget.

Staffing costs. Staffing costs. Staffing costs. Staffing costs. Staffing costs. Staffing costs. Staffing costs. Staffing costs. Staffing costs. Staffing costs. Staffing costs.

29

HOSPITALITY AND HOPE CIO

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 October 2020

Purpose of restricted funds (continued)

Miranog Trust
Joicey Trust
Staffing
J Kinnair
Staffing
Tenants Grant
tenants.
Transfers between funds
Between restricted and unrestricted
funds.
Between restricted and unrestricted
funds.
Laygate Supported living Accommodation surplus funds
transferred to Unrestricted funds.
Transfer to Building Fund loan.
Staffing costs.
Reason for transfer		 Amount
£
15,639
10,000

26 Capital commitments

As at 31 October 2020, the charity had no capital commitments (2019 -£nil)

27 Analysis of net assets between funds
Tangible fixed assets
Cash at bank and in hand
Other net current assets/(liabilities)
Long term assets/(liabilities)		 Unrestricted
Funds
£
231
228,651
( 56,163 )
( 10,000 )
162,719		 Restricted
Funds
£
507,432
21,949
-
-
529,381		 Total
2020
£
507,663
250,600
( 56,163 )
( 10,000 )
692,100		 Total
2019
£
516,603
153,316
( 4,870 )
( 20,000 )
645,049

28 Guarantee

There have been no guarantees given by the charity at 31 October 2020.

29 Debt

There is no debt outstanding which is owed by the charity and which is secured by an excess charge on any of the assets of the charity at 31 October 2020.

30 Governing document

The organisation is a Charitable Incorporated Organisation - Foundation registered on 14 November 2014 as a body corporate under part 11 of the Charities Act 2011.

30