ANNUAL REPORT & ACCOUNTS MARCH 2024
Ark Housing Trust
3 Bath Road, Buxton, Derbyshire SK17 6HH
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## **Trustees’ Annual Report - March 2024**
This is the annual report for Ark Housing Trust, registered charity number 1166573. The principal office is 3 Bath Road, Buxton, Derbyshire, SK17 6HH.
## Charity Trustees
Philip Delight (Chair) Charles Oakley (Treasurer) David McKee (Secretary) Jane Rothery (since 5/2/24) Angie Vaughan (since 1/7/24) Simon Graham (resigned 5/2/24) Marian Byrne (resigned 3/6/24)
## Director
Jon Parsons
## Bank
Barclays Bank, 51 Mosley Street, Manchester, M60 2AU
## Independent Examiner
Rob Layton, Laytons Chartered Accountants, 6 Manchester Road, Buxton, SK17 6SB
## Governance
Ark Housing Trust is a Charitable Incorporated Organisation (CIO), has a founding constitution, and is governed by a board of trustees. Trustees are selected and appointed based on their skills, experience and availability to fulfil the roles for which they are appointed. Upon election to the board, trustees are provided with a detailed information pack, and offered the opportunity to tour a selection of Ark properties, meeting some of Ark’s clients.
The board meets regularly and takes overall responsibility for all governance decisions. This includes identifying and regularly reviewing the major financial risks the charity faces, and ensuring those risks are managed appropriately.
The board appoints and oversees a director, who is responsible for the operational day-to-day running of the charity.
## Risk Management
The trustees consider the major risks to which the charity is exposed, and determine policies and procedures to mitigate those risks.
The key risks identified during this period were:
- Potential conflicts of interest on the board – these have been reviewed, and all current conflicts of interest are detailed and managed appropriately by the board. Simon Graham
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resigned from the board during the year which removed the major conflict that existed.
- Operational risk to Ark staff – the board are satisfied that appropriate safety measures are taken by staff when in direct contact with clients.
- Operational Risk to Ark support – the board acknowledge that support staff fulfil a vital function delivering support to Ark residents, and that during the year there have been periods when the level of support has been impacted by staff shortages. The board are assured that recruitment to limit this impact is a priority for the director.
- Reputational Risk caused by unprofessional behaviour of staff – the board acknowledge that unprofessional actions by a staff member had a detrimental effect on Ark’s reputation in one area with both the police and the council. The board have reviewed with the director the disciplinary actions taken against the staff member. The director acknowledges that he applied the disciplinary policy leniently, and that this negatively contributed to Ark’s reputation. The board are assured that any such future disciplinary action will be handled in a way that minimises the risk to the organisation.
- Financial risk caused by room vacancies – the board are assured that the supply of accommodation does not exceed the demand, in the different geographical areas we are operating.
- Financial risk caused by a change in Government policy – in the short-term there is minimal threat of a significant change in policy that may impact funding, in the longer term reserves are being established to help mitigate against this risk.
## Objectives and Activities for the Public Benefit
The objects of the charity are:
to prevent or relieve poverty and to promote and protect good health of people over the age of 16 particularly amongst people who are homeless or at risk of homelessness and who have mental health or addiction issues or who have experienced domestic abuse, by the provision of social housing and support and such other services as shall be thought fit.
The charity carries out these objects by:
- providing housing specifically targeting people who are homeless or at risk of homelessness, for example those who are refused accommodation by a private landlord or council.
- providing limited support to those housed, in the form of support with basic health & welfare needs, for example by supporting them to attend appointments, providing basic advice around managing money, hygiene, cooking etc.
- Providing limited support to those housed, in the form of signposting to various local services they may benefit from.
- providing limited support to those housed when it becomes time for them to move on to independent living.
## History
Ark Housing Trust has been providing supported housing to vulnerable adults since 2016. It started with 13 units of accommodation across two registered houses of multiple occupancy (HMO) in Matlock, Derbyshire, followed by 42 units of accommodation across nine HMO’s in Buxton, Derbyshire.
Its model is to lease HMO properties from landlords at the local housing authority rate per room. Ark handle all property management and maintenance, guaranteeing the landlord a reliable income with no expenses. The majority of funding is provided through the statutory allowances paid by the government.
Within our charity’s purpose we have the following objectives:
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1. To provide accommodation and support to vulnerable people aged 16 and over
2. To promote physical and mental wellbeing
3. To promote a therapeutic approach to addiction and mental health
4. To prevent the cycle of homelessness and maintain accommodation effectively
5. To support clients in making a positive contribution including crime prevention
Our support workers meet regularly and engage with the many different issues that are facing our vulnerable clients – issues of addiction, mental health, ex-offenders, risk of homelessness. The support Ark provides encourages our clients to:
- access all the services they are entitled to
- engage with other clients to collaboratively work towards supporting one another
- identify their interests and talents, and access appropriate community groups to nurture and develop their self-esteem and build a positive self-image
Our hope is to see vulnerable adults taking positive steps towards actively engaging with their communities, and over time playing as full a part of their wider communities as they are able to.
## Specifics to Financial Year
Ark’s operations in Matlock were successfully transferred to the River Network during the year.
In Stoke, the lease for one very large property was not renewed as the size of the property had caused issues when housing vulnerable adults together. Smaller properties to replace this have been sought, with limited success. This has coincided with the local authority halting any further expansion whilst a comprehensive needs assessment is carried out.
In both Buxton and Stoke the local authorities have been carrying out the national Supported Housing Improvement Programme. This has resulted in recommendations to changes to some minor areas of Ark’s operations, and also a review of standards of accommodation that has caused a number of properties to require unforeseen work. The programme is expected to conclude in the next financial year.
## Serious Incidents
There were no serious incidents to report to the charity commission this year.
## Looking Ahead
We continue to expand in Stoke, and are looking at potential new areas to expand into.
We continue to anticipate revisiting the process of applying for registration as a Provider of Social Housing with the Regulator of Social Housing, although no timescale has been set for this.
Further strengthening of the Board of Trustees is intended.
## Financial Review
Income in the financial year was £952,734 up from £883,331 in the previous year.
Expenditure in the financial year was £919,595 (£852,045 previous year). Of this, £568,784 (62%) was spent in the provision and maintenance of accommodation, £258,387 (28%) was spent supporting clients, £72,763 (8%) was spent in head office costs, and £19,661 (2%) was spent on governance and compliance.
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At the end of the financial year there was a surplus of £159,383, compared to £126,244 in the previous financial year.
## Reserves Policy
It is the policy of the trustees to maintain sufficient reserves:
- to avoid short-term cash flow issues,
- to enable expansion of the charity’s work,
- to enable the charity to respond to any unexpected event, such as a serious incident in a property resulting in a significant loss of income for a time.
The trustees are balancing the desire to expand the work, which has short-term costs, with the need to build financial reserves to protect the charity. This is a work in progress, with projected reserves in excess of £70,000 at 31[st] March 2025.
## Trustees’ Responsibility in relation to the Financial Statements
The Trustees are responsible for preparing the Trustees’ Report and financial statements in accordance with the applicable law and United Kingdom Accounting Standards. The trustees have decided to prepare accounts on an accrual basis which will therefore give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period.
In preparing these financial statements the trustees are required to:
- Select suitable accounting policies and then apply them consistently;
- Observe the methods and principles of the Charities SORP;
- Make judgements and estimates that are reasonable and prudent;
- State whether applicable accounting standards have been followed, subject to any departures disclosed and examined in the financial statements;
- Prepare the financial statements on the ongoing concern basis unless it is inappropriate to assume that the charity will continue in business.
The trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011 and the provisions of the trust deed. 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. The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website.
Approved by the trustees on 14[th] October 2024 and signed on their behalf by:
Signed: ________________________________ Date: 14[th] October 2024
Phil Delight, Chair of Trustees, Ark Housing Trust
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## **ARK HOUSING TRUST**
## **Income and Expenditure Account**
## **31 March 2024**
|**Income**
Enhanced Housing Benefit
Client Contribution
Fundraising
Interest
**Expenditure**
**Provision of Client Accommodation**
Void Property Leases
Council Tax
Utilities & Water
Repairs
Cleaning
Insurance
Sky & WIFI
Client Debt Write-off
**Client Management & Support**
Lettings Management
Support Workers and Co-ordination
Lettings Administrative Support
Lettings Directors Remuneration
Training
Registration fees and Safety
**Head Office Costs**
Office Rent
Office Costs
Office Council Tax
Head Office Directors Remuneration
Legal Fees
Accountancy Fees
Head Office Administrative Support
**Governance**
Governance Directors Remuneration
**Total Expenditure**
**Surplus for the year**|**2023-24**
**£**
867,731
56,200
28,457
346
**952,734**
67,896
33,821
145,624
231,711
36,638
16,965
13,892
20,276
**566,823**
149,770
74,885
10,732
19,661
1,407
1,932
**258,387**
14,088
25,498
19,661
2,784
10,732
**72,763**
19,661
**19,661**
**917,634**
**35,100**|**2022-23**
**£**|
|---|---|---|
|||800,146
53,330
29,809
46
**883,331**
64,559
36,939
118,910
178,169
35,047
13,073
14,179
28,186
**489,062**
151,691
75,845
15,722
18,818
**262,076**
13,987
30,325
184
18,817
1,392
1,662
15,722
**82,089**
18,818
**18,818**
**852,045**
**31,286**|
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## **ARK HOUSING TRUST**
## **Statement of Assets & Liabilities**
## **31 March 2024**
|**Current Assets**
Debtors
Petty Cash
Reserve Account
Bank Balance
**Current Liabilities**
Accruals
**Total Current Assets less Total Current**
**Liabilities**
**Capital Account**
Balance B/fwd
Surplus for the year
**Surplus**|**2023-24**
**£**
73,805
3,909
30,400
53,230
**161,344**
**0**
**161,344**
126,244
35,100
**161,344**|**2022-23**
**£**|
|---|---|---|
|||57,276
937
24
70,855
**129,092**
2,848
**2,848**
**126,244**
94,958
31,286
**126,244**|
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## **Chartered Accountants' Report to the Trustees on the Unaudited Financial Information of Ark Housing Trust**
We have prepared for your approval the financial information of Ark Housing Trust for the period ended 31st March 2024 which comprises the income and expenditure account and the statement of assets and liabilities from the accounting records and information and explanations you have given us.
As a practicing member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-andguidance.
This report is made solely to the Trustees of Ark Housing Trust, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial information of the Trust and state those matters that we have agreed to state to you in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Ark Housing Trust and its Trustees as a body for our work or for this report.
You have approved the financial information for the period to 31st March 2024 and have acknowledged your responsibility for it, for the appropriateness of the financial reporting framework adopted and for providing all information and explanations necessary of its compilation.
We have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the financial information.
**Laytons** Chartered Accountants 6 Manchester Road Buxton Derbyshire SK17 6SB
Date: 25[th] September 2024
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## **ARK HOUSING TRUST YEAR ENDED 31 MARCH 2023**
## **Notes to the Financial Statements**
## **1 ACCOUNTING POLICIES**
Charity information
Ark Housing Trust CIO Project is a Charitable Incorporated Organisation.
## **1.1 Accounting convention**
The accounts have been prepared in accordance with the charity's governing document, the Charities Act 2011 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 (FRS102)" (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The accounts have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The accounts are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The accounts have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the accounts, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the accounts.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts.
## **1.4 Incoming resources**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
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Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset
## **1.5 Tangible fixed assets**
None recorded.
## **1.6 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **1.7 Financial instruments**
The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _Basic financial assets_
Basic financial assets which include debtors and cash and bank balances, are initially measured at (transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _Basic financial liabilities_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity's contractual obligations expire or are discharged or cancelled.
## **2. UNRESTRICTED DONATIONS**
Incomes derived from housing benefits are for the provision of housing and associated support to vulnerable tenants as are contributions from tenants and income from fundraising. In the opinion of the Trustees, these are unrestricted donations.
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## **3. UNRESTRICTED EXPENDITURES**
Unrestricted expenditures are incurred for the provision of housing and associated support.
## **4. EMPLOYEES**
The average number of employees during the year was 14 (2023 - 12)
## **5. PAID TRUSTEES**
There were no paid Trustees during the year (2023 - NIL). All Trustees work on a voluntary basis.
## **6. GEOGRAPHICAL ACTIVITY**
All activity takes place within the UK.
## **7. TRANSACTIONS WITH TRUSTEES**
In the year to 31-3-24 the sum of £180,827 (2023 £202,973) was paid to Jazeta Limited (a company in the control of Simon Graham who was a Trustee for part of the year). £166,374 of this amount was paid as property leases which are not included in the accounts.
In the year to 31-3-24 the sum of £160,961(2023 £185,788) was paid to NJOY Limited (a company associated with Simon Graham who was a Trustee for part of the year). £145,060 of this amount was paid as property leases which are not included in the accounts.
In the year to 31-3-24 the sum of £91,057 (2023 £76,897) was paid to SJ Holdings & Investments Limited (a company associated with Simon Graham who was a Trustee for part of the year). £83,975 of this amount was paid as property leases which are not included in the accounts.
## **8. CONTINGENT LIABILITIES**
In the opinion of the Trustees there are no outstanding contingent liabilities.
## **9. POST BALANCE SHEET EVENTS**
In the opinion of the Trustees there are no post balance sheet events that have any bearing on these Financial Statements.
## **10. ACCRUALS AND PREPAYMENTS**
Where necessary provisions have been made in line with generally accepted accounting principles.
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