## **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: 

- the relief of poverty, sickness and distress amongst vulnerable people in South Tyneside, including those who are homeless or at risk of homelessness. Delivered by the provision of funds, goods, or services of any kind as the trustees from time to time may think fit, including (but not by way of limitation) by the operation of a soup kitchen, food bank and wider supported services. 

- the relief of those in need by reason of age, ill-health, disability, financial hardship or any other social or economic disadvantage in such ways as the trustees from time to time may think fit including (but not by way of limitation) by the promotion and provision of or assistance with the provision of accommodation and/or supported accommodation appropriate to their needs; and 

- to further such other purposes being exclusively charitable according to the laws of England and Wales as the trustees from time to time may think fit. 

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

- Delivery of the South Tyneside Food Bank by a team of volunteers. 

- Management of the Hampden Street Centre, the operational base for the charity. 

- Management of the Supported Living Accommodation (HMO). 

- Provision of health and wellbeing activities 

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

- Delivery of a soup kitchen by teams of volunteers. 

- Delivery of a clothes bank by a team of volunteers. 

- Management of the Community Café. 

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:** 

- Between November 2020 and October 2021, our Food Bank received 1,822 requests for support.  This was to support 4,782 people (3232 adults and 1,550 children) and represents a 36% increase on the previous year. 

- The peak in demand was at the start of Covid-19 restrictions (April to June 2020) when we supported a 50% increase in the number of requests for support. 

## **Meeting Community Need:** 

- Established a self-referral system for easy access to support from our Food Bank. 

- Increased our Food Bank operation to five days per week to meet increased demand. 

- Introduced a fresh fruit and vegetables project to improve the nutritional value of our Food Bank offer. 

- Launched a debt advisory service in partnership with Age Concern Tyneside South (ACTS) to improve the financial wellbeing of those accessing our Food Bank. 

- Offered a wellbeing programme for all clients (November 2019 to March 2020) and then a reduced offer for the remainder of the year while in Covid-19 restrictions; 

- Supported five Supported Living Accommodation residents to successfully move into fully independent living accommodation. 

2 



## **Improving Operational Effectiveness:** 

- Strengthened our digital capability to improve reach into the community. 

- Conducted a comprehensive charity-wide risk assessment analysis and action plan 

- Became an affiliated member of the Trussell Trust. 

- Implemented a new Food Bank data collection system to improve our efficiency and effectiveness. 

- Commenced a feasibility study for move on property for our Supported Living residents. 

- Developed and deepened our partnerships with local authorities and partnership agencies. 

- Established a new Finance Steering Group. 

- Appointed a new Trustee. 

## **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: 

   - Food Bank 

- Supported Living Accommodation (SLA) 

- With a streamlined: 

   - Health and Wellbeing offer 

## **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: 

- Launch of a Food Bank ‘Self-Referral’ process for those in need but without the formal mechanisms of a Key Worker to access support.  This was the highest ranking referral route to Food Bank services this year 

- Activation of the Trussell Trust membership and transfer from paper-based to their national electronic data collection system 

- Extension of the space for the Food Bank and the installation of new storage facilities: shelving, storage and refrigerators 

- Extension in Food Bank opening hours from two to five days per week 

- Appointment of a Food Bank Coordinator in February 2020, initially for 20 hours but increased to 37 hours per week 

- Leasing of a van to support Food Bank collections and home deliveries to isolated beneficiaries 

- Stock levels were quadrupled from 5 tonnes of food in May to 20 tonnes by October through increases in food donations from a number of large supermarkets and the general public during the pandemic 

- Trussell Trust membership also provided a volunteer partnership with British Gas who delivered food and volunteered in the Food Bank during the first lockdown when our volunteers were shielding 

- The introduction of a new ‘Fresh Fruit and Vegetables Project’ to improve the nutritional value of our standard food parcel in October 2020.  This will be offered until March 2021. 

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: 

- The appointment of a Food Bank Coordinator, as a paid staff post, in February 2020. 

- Most staff worked from home at the beginning of the pandemic, maintaining only skeleton staff at our Hampden Street headquarters. 

- In response to the pandemic, our Volunteer Coordinator transferred support for our family of volunteers to telephone and online with online zoom quizzes, cards and telephone calls. 

- Volunteer engagement was significantly reduced during the year, as many were a high risk of infection due to age and health reasons. 

- Cafe staff were furloughed in March and then made redundant in July 2020 when the Community Cafe was closed. 

- A new Trustee was recruited, David Wheatley, who provided expertise in strategy and digital transformation to the board. 

- Paul Oliver, our CEO since June 2018, will be leaving us at the end of November. We have initiated the appointment of a replacement to commence in January 2021. 

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<br>identify families at risk of food crisis.<br>Supporting people to acquire the skills and equipment to feed their<br>family on a budget, developing their understanding of the benefits<br>of fresh healthy food.<br>Exploring the benefits of opening an affordable food shop/Pantry,<br>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: 

- A briefing by the Chair or Chief Executive 

- An explanation of roles and responsibilities as a Board Member 

- Copies of the main company documents including the Memorandum and Articles of Association and the Financial Statements 

- Copy of the business plan and most recent evaluation report 

- Copies of recent board papers including budgets and management accounts 

- A copy of the Charity Commission publication "How to be an Effective Trustee" 

- A copy of the governance structure. 

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: 

- select suitable accounting policies and apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable 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 charity will continue in operation. 

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: 

- examine the accounts under section 145 of the Charities Act, 

- to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act), and 

- to state whether particular matters have come to my attention. 

## **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: 

- the accounting records were not kept in accordance with section 130 of the Charities Act; or 

- the accounts did not accord with the accounting records; or 

- the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a "true and fair" view which is not a matter considered as part of an independent examination. 

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

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

19 



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



21 



## **HOSPITALITY AND HOPE CIO** 

## **NOTES TO THE FINANCIAL STATEMENTS** 

For the year ended 31 October 2020 

|8<br>**Other trading activities**<br>Room Hire<br>Supported Living Accommodation<br>residents<br>Laygate café<br>Fundraising events|1,545<br>200<br>-<br>-<br>1,745|-<br>-<br>61,740<br>21,685<br>83,425|**1,545**<br>**200**<br>**61,740**<br>**21,685**<br>**85,170**|1,500<br>600<br>65,091<br>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<br>10|**_Raising funds_**<br> **_Charitable activities_**<br>Direct costs<br>Support costs<br>- Premises<br>- Staff salaries<br>- Pension costs<br>- Activity<br>- Staff NI<br>- Office costs<br>- vehicle costs<br>- NI costs<br>- Other expenses<br>- Salary costs<br>- Other expenses<br>- Activities<br>Soup kitchen<br>- NI costs<br>- Pension costs<br>- House expenses<br>Fundraising costs<br>Staff salaries<br>Staff NI<br>Pension costs<br>Volunteer Co-ordinator costs:<br>Training<br>Travel<br>- Food<br>- Pension costs<br>Hospitality<br>Literature<br>Telephone<br>Loss on disposal of asset<br>Laygate - Supported living Accommodation core<br>costs:<br>- Salary costs<br>-Office costs<br>DBS costs<br>Donated goods distributed to recipients<br>Food bank core costs:<br>Activities/events|Unrestricted<br>Funds<br>£<br>-<br>-<br>13,031<br>4,448<br>2,396<br>-<br>80<br>62,530<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>46<br>-<br>-<br>-<br>-<br>222<br>183<br>41<br>196<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-|Restricted<br>Funds<br>£<br>-<br>-<br>46,525<br>10<br>-<br>-<br>-<br>-<br>34,749<br>899<br>155<br>332<br>11,048<br>6,834<br>137<br>1,095<br>13,000<br>589<br>390<br>-<br>-<br>-<br>-<br>136<br>-<br>33,780<br>3,170<br>933<br>1,015<br>3,474<br>321<br>1,768<br>436<br>1,204|**Total**<br>**2020**<br>**£**<br>**-**<br>**-**<br>**59,556**<br>**4,458**<br>**2,396**<br>**-**<br>**80**<br>**62,530**<br>**34,749**<br>**899**<br>**155**<br>**332**<br>**11,048**<br>**6,834**<br>**137**<br>**1,141**<br>**13,000**<br>**589**<br>**390**<br>**-**<br>**222**<br>**183**<br>**41**<br>**332**<br>**-**<br>**33,780**<br>**3,170**<br>**933**<br>**1,015**<br>**3,474**<br>**321**<br>**1,768**<br>**436**<br>**1,204**|Total<br>2019<br>£|
|---|---|---|---|---|---|
||||||230|
||||||230|
||||||60,603<br>6,461<br>2,009<br>65<br>573<br>-<br>-<br>-<br>-<br>160<br>43<br>-<br>561<br>-<br>12,567<br>430<br>-<br>1,014<br>-<br>43<br>124<br>382<br>155<br>30,422<br>2,072<br>616<br>5,030<br>2,624<br>129<br>650<br>122<br>780|



23 



## **HOSPITALITY AND HOPE CIO** 

## **NOTES TO THE FINANCIAL STATEMENTS** 

For the year ended 31 October 2020 

|Support costs (continued)<br>Governance costs<br>Police Commissioners Fund<br>- Other expenses<br>- Salary costs<br>- Food and drink<br>- Activities<br>- Janitor<br>- Premises costs<br>Equipment<br>Depreciation<br>Membership fees<br>Sundry<br>- Leases<br>- Redundancy payments<br>- NI costs<br>- Pension costs<br>- Premises costs<br>- Refreshments<br>- Inspections<br>- Office costs<br>Laygate - Café core costs:<br>- Office costs<br>- Inspection<br>- Licences<br>- Staff expenses<br>Independent examiner's fees for reporting on the<br>accounts<br>Greggs Foundation core costs<br>Cultural Spring<br>- Other expenses<br>- Activities<br>- Insurance<br>- Payroll fees<br>Tenants<br>Stationery<br>ICT software<br>Marketing and communications<br>Building repairs|Unrestricted<br>Funds<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>411<br>-<br>-<br>-<br>1,500<br>1,603<br>1,283<br>757<br>-<br>3<br>2,131<br>4,240<br>3,856<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>1,008<br>99,965|Restricted<br>Funds<br>£<br>14,738<br>2,165<br>812<br>2,002<br>2,395<br>766<br>4,028<br>2,004<br>7,211<br>671<br>1,622<br>268<br>-<br>122<br>691<br>8,229<br>-<br>-<br>-<br>-<br>2,000<br>-<br>290<br>457<br>559<br>2,262<br>4,847<br>2,874<br>1,016<br>35<br>-<br>-<br>-<br>-<br>224,064|**Total**<br>**2020**<br>**£**<br>**14,738**<br>**2,165**<br>**812**<br>**2,002**<br>**2,395**<br>**766**<br>**4,028**<br>**2,004**<br>**7,622**<br>**671**<br>**1,622**<br>**268**<br>**1,500**<br>**1,725**<br>**1,974**<br>**8,986**<br>**-**<br>**3**<br>**2,131**<br>**4,240**<br>**5,856**<br>**-**<br>**290**<br>**457**<br>**559**<br>**2,262**<br>**4,847**<br>**2,874**<br>**1,016**<br>**35**<br>**-**<br>**-**<br>**-**<br>**1,008**<br>**324,029**|Total<br>2019<br>£|
|---|---|---|---|---|
|||||37,477<br>1,684<br>616<br>-<br>2,347<br>980<br>7,898<br>2,439<br>17,687<br>2,302<br>1,246<br>538<br>-<br>1,310<br>3,296<br>9,018<br>130<br>349<br>389<br>10,241<br>180<br>1,914<br>31<br>512<br>590<br>1,204<br>9,664<br>411<br>884<br>-<br>1,526<br>849<br>1,819<br>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<br>Independent examiner's fees for reporting on the accounts|**2020**<br>**£**<br>**1,008**<br>**1,016**<br>**2,024**|2019<br>£|
|---|---|---|
|||960<br>884|
|||1,844|



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

|Pension costs (defined contribution pension plan)<br>Redundancy payments<br>Salaries and wages<br>Social security costs|**2020**<br>**£**<br>**150,351**<br>**2,002**<br>**11,281**<br>**4,686**<br>**168,320**|2019<br>£|
|---|---|---|
|||141,069<br>-<br>10,647<br>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<br>Charitable activities|**2020**<br>**Number**<br>**6.5**<br>**6.5**|2019<br>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**<br>**Cost**<br>Balance brought forward<br>Additions<br>Disposals<br>**Balance carried forward**<br>**Depreciation**<br>Basis<br>Rate<br>Balance brought forward<br>Depreciation charge for year<br>Disposals<br>**Balance carried forward**<br>**Net book value**<br>**Brought forward**<br>**Carried forward**<br>18 **Stock**<br>Opening stock<br>Added in period<br>Closing stock<br>Expensed in period<br>Impaired|**Office and**<br>**computer**<br>**equipment**<br>**£**<br>3,147<br>-<br>-<br>3,147<br>SL<br>25%<br>2,205<br>711<br>-<br>2,916<br>942<br>231|**Laygate**<br>**property**<br>**furniture**<br>**£**<br>10,165<br>-<br>-<br>10,165<br>SL<br>25%<br>7,551<br>2,541<br>-<br>10,092<br>2,614<br>73|**Freehold**<br>**land and**<br>**Buildings**<br>**£**<br>524,423<br>-<br>-<br>524,423<br>SL<br>50 years<br>11,376<br>5,688<br>-<br>17,064<br>513,047<br>507,359<br>2019<br>£<br>1,476<br>20<br>-<br>( 1,476 )<br>20|**Total**<br>**£**|
|---|---|---|---|---|
|||||**537,735**<br>**-**<br>**-**|
|||||**537,735**|
|||||**21,132**<br>**8,940**<br>**-**|
|||||**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<br>Balance carried forward<br>Amount deferred in year<br>Amount released to income earned from<br>charitable activities|**2020**<br>**£**|
|---|---|
||**-**<br>**-**<br>**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**<br>General unrestricted fund<br>Designated funds:<br>Contingency Fund<br>**_Totals_**|**Fund**<br>**balances**<br>**brought**<br>**forward**<br>£<br>94,914<br>-<br>94,914|**Incoming**<br>**resources**<br>£<br>162,131<br>-<br>162,131|**Resources**<br>**expended**<br>£<br>( 99,965 )<br>-<br>(99,965)|**Transfers**<br>£<br>( 65,361 )<br>71,000<br>5,639|**Fund**<br>**balances**<br>**carried**<br>**forward**<br>**£**|
|---|---|---|---|---|---|
||||||**91,719**<br>**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**<br>Laygate café<br>Willian Trust - café<br>Muckle - café<br>Laygate Supported Living<br>Accommodation<br>Foodbank<br>Greggs Foundation<br>William Webster CF<br>Barbour Foundation<br>Ballinger Charitable Trust<br>Sir James Knott Trust<br>Building Fund<br>Freehold land and Building<br>Asset - Laygate furniture<br>Community Foundation - Cookery<br>course<br>Chapman Charity<br>Hilden Charitable Trust|**Fund**<br>**balances**<br>**brought**<br>**forward**<br>£<br>-<br>-<br>-<br>-<br>-<br>3,077<br>-<br>15,508<br>2,416<br>17,932<br>( 34,818 )<br>513,047<br>2,614<br>4,095<br>1,224<br>5,000|**Incoming**<br>**resources**<br>£<br>27,157<br>10,000<br>1,525<br>61,740<br>54,156<br>15,500<br>2,000<br>-<br>5,500<br>7,000<br>-<br>-<br>-<br>2,871<br>-<br>-|**Resources**<br>**expended**<br>£<br>( 27,157 )<br>( 10,000 )<br>( 1,525 )<br>( 46,101 )<br>( 54,156 )<br>( 12,340 )<br>( 2,000 )<br>-<br>( 7,916 )<br>-<br>-<br>( 5,688 )<br>( 2,541 )<br>( 6,966 )<br>( 1,224 )<br>( 5,000 )|**Transfers**<br>£<br>-<br>-<br>-<br>( 15,639 )<br>-<br>-<br>-<br>-<br>-<br>-<br>10,000<br>-<br>-<br>-<br>-<br>-|**Fund**<br>**balances**<br>**carried**<br>**forward**<br>**£**|
|---|---|---|---|---|---|
||||||**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**6,237**<br>**-**<br>**15,508**<br>**-**<br>**24,932**<br>**( 24,818 )**<br>**507,359**<br>**73**<br>**-**<br>**-**<br>**-**|



28 



## **HOSPITALITY AND HOPE CIO** 

## **NOTES TO THE FINANCIAL STATEMENTS** 

For the year ended 31 October 2020 

|**Restricted funds (continued)**<br>Various funders - Staffing<br>M Stephenson<br>Hadrian Trust<br>CDCF<br>Roy and Pixie Baker<br>WA Handley<br>RW Mann Trust<br>Archer Trust<br>Gisela Graham Foundation<br>J Priestman<br>Miranog Trust<br>Joicey Trust<br>J Kinnair<br>Tenants Grant<br>**_Totals_**|**Fund**<br>**balances**<br>**brought**<br>**forward**<br>£<br>3,950<br>2,500<br>1,000<br>2,000<br>2,500<br>5,000<br>1,000<br>2,000<br>-<br>-<br>-<br>-<br>-<br>90<br>550,135|**Incoming**<br>**resources**<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>10,000<br>5,000<br>1,000<br>4,500<br>1,000<br>-<br>208,949|**Resources**<br>**expended**<br>£<br>( 3,950 )<br>( 2,500 )<br>( 1,000 )<br>( 2,000 )<br>( 2,500 )<br>( 5,000 )<br>( 1,000 )<br>( 2,000 )<br>( 10,000 )<br>( 5,000 )<br>( 1,000 )<br>( 4,500 )<br>( 1,000 )<br>-<br>(224,064)|**Transfers**<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>(5,639)|**Fund**<br>**balances**<br>**carried**<br>**forward**<br>**£**|
|---|---|---|---|---|---|
||||||**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**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<br>Joicey Trust<br>Staffing<br>J Kinnair<br>Staffing<br>Tenants Grant<br>tenants.<br>**Transfers between funds**<br>Between restricted and unrestricted<br>funds.<br>Between restricted and unrestricted<br>funds.<br>Laygate Supported living Accommodation surplus funds<br>transferred to Unrestricted funds.<br>Transfer to Building Fund loan.<br>Staffing costs.<br>**Reason for transfer**|**Amount**<br>**£**|
|---|---|
||**15,639**<br>**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**<br>Tangible fixed assets<br>Cash at bank and in hand<br>Other net current assets/(liabilities)<br>Long term assets/(liabilities)|Unrestricted<br>Funds<br>£<br>231<br>228,651<br>( 56,163 )<br>( 10,000 )<br>162,719|Restricted<br>Funds<br>£<br>507,432<br>21,949<br>-<br>-<br>529,381|**Total**<br>**2020**<br>**£**<br>**507,663**<br>**250,600**<br>**( 56,163 )**<br>**( 10,000 )**<br>**692,100**|Total<br>2019<br>£|
|---|---|---|---|---|
|||||516,603<br>153,316<br>( 4,870 )<br>( 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