Charity Registration No. 1167974
Company Registration No. 03916937 (England and Wales)
THE FAITH HOPE & ENTERPRISE COMPANY LTD ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
THE FAITH HOPE & ENTERPRISE COMPANY LTD
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Mr N T Gregory Mr P Hay Mr J Khan Miss C S McKen Mrs P M Munro Mr I Johnson (Appointed 27 May 2020)
Secretary Mr K D Gill Charity number 1167974 Company number 03916937 Registered office Office 47 Eurocom House Derby West Business Centre Ashbourne Road Derby United Kingdom DE22 4NB
Independent examiner
Azets 2 Regan Way Chetwynd Business Park Chilwell Nottingham United Kingdom NG9 6RZ
THE FAITH HOPE & ENTERPRISE COMPANY LTD
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Notes to the financial statements | 6 - 12 |
THE FAITH HOPE & ENTERPRISE COMPANY LTD
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021
The trustees present their report and financial statements for the year ended 31 March 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's [governing document], the Companies Act 2006 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)".
Objectives and activities
FHE exists to provide housing to people in Derby and Derbyshire who currently need support living in the community, sometimes as a result of drug and alcohol related needs, mental health needs, learning disability or a combination of these factors. Our long-term goal is to help all our residents move towards living in more independent accommodation.
Achievements and performance
To ensure continuity and the quality of support we offer we have recruited really well and we have a strong staff team with four dedicated support workers. We have also added an administrator to the team, who has been excellent in the role.
Our Chief Executive Kevin Gill remains in overall charge of the day-to-day running of the organisation, with a re-structured team of four support workers, an administrator, a maintenance officer and our maintenance apprentice.
During the year we have moved into larger office premises, increased our workforce, and changed our working practices to ensure staff and residents are protected from Covid-19 infection whilst delivering the support our residents need.
Financial review
We have continued to slowly build a portfolio of property, purchasing a four bedroom house in October and leasing a new three bedroom house in March. We have an additional four bedroom house in Derby under contract and hope to complete the purchase in April 2021. This continues to strengthen our asset base and provides security for our residents.
With additional grant funding this year, we have been able to increase the level of support we provide to all our residents. This has enabled us to support them more effectively through lockdowns and help them to access social activities online and in small groups. We have linked with new partners, such as a community gardening project, helping residents access a wider variety of opportunities for social engagement and volunteering. We have also provided safe outdoor activities such as bike riding.
It remains a privilege to be part of the wider FHE community. As we move forwards through the pandemic and the re-opening of society we look forward to ensuring our residents have even greater opportunities to rebuild their lives.
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THE FAITH HOPE & ENTERPRISE COMPANY LTD
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
At the time of writing last year’s report the first lockdown in response to Covid-19 had just begun. Residents have found the last year particularly difficult and isolating as the pandemic took hold. Many have spoken of the challenges Covid-19 has presented at our regular meetings with them. Our entire model of working – as a board, staff team and in supporting residents – has been impacted in a way we could not have imagined just a year ago.
Nevertheless we learnt in the worst possible way the costs the Covid-19 pandemic could bring. In the summer of 2020 one of our residents sadly died by suicide. This was a tragic loss of someone who had been badly affected by losing work and the opportunity to rebuild his career at the beginning of lockdown. It was also a tragic loss for his family and his friends. Our awareness of how badly restrictions on social interaction could affect our residents psychologically lead us to redouble our efforts to increase social support to residents. We remain deeply affected by this.
I would like to pay respect to our residents, our staff, our supporters, and our board of management for all that they coped with.
Structure, governance and management
The charity is a company limited by guarantee .
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Mr N T Gregory
Mr P Hay Mr J Khan Miss C S McKen Mrs P M Munro Mr I Johnson (Appointed 27 May 2020)
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The trustees' r eport was approved by the Board of Trustees.
Mrs P M Munro
Trustee Dated: 17 September 2021
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THE FAITH HOPE & ENTERPRISE COMPANY LTD
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF THE FAITH HOPE & ENTERPRISE COMPANY LTD
I report to the trustees on my examination of the financial statements of The Faith Hope & Enterprise Company Ltd (the charity) for the year ended 31 March 2021.
Responsibilities and basis of report
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of , which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act 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; or
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4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Azets
2 Regan Way Chetwynd Business Park Chilwell Nottingham NG9 6RZ United Kingdom
Dated: 17 September 2021
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THE FAITH HOPE & ENTERPRISE COMPANY LTD
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021
| Unrestricted Restricted funds funds 2021 2021 Notes £ £ Income from: Donations and legacies 3 34,889 9,026 Investments 4 396,332 - Total income 431,221 9,026 Expenditure on: Charitable activities 5 245,085 - Other 8 177,869 - Total resources expended 422,954 - Net income for the year/ Net movement in funds 8,267 9,026 Fund balances at 1 April 2020 62,794 18,134 Fund balances at 31 March 2021 71,061 27,160 |
TotalUnrestricted Restricted funds funds 2021 2020 2020 £ £ £ 43,915 12,167 - 396,332 350,277 - 440,247 362,444 - 245,085 182,426 - 177,869 159,739 - 422,954 342,165 - 17,293 20,279 - 80,928 42,515 18,134 98,221 62,794 18,134 |
Total 2020 £ 12,167 350,277 362,444 182,426 159,739 342,165 20,279 60,649 80,928 |
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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THE FAITH HOPE & ENTERPRISE COMPANY LTD
BALANCE SHEET
AS AT 31 MARCH 2021
| Notes Fixed assets Tangible assets 9 Investments 10 Current assets Debtors 11 Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 14 Net assets Income funds Restricted funds Unrestricted funds |
2021 £ £ 337,677 10 337,687 3,117 61,639 64,756 (2,688) 62,068 399,755 (301,534) 98,221 27,160 71,061 98,221 |
2020 £ £ 201,777 10 201,787 5,723 54,371 60,094 (24,490) 35,604 237,391 (156,463) 80,928 18,134 62,794 80,928 |
|---|---|---|
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2021.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on 17 September 2021
Mrs P M Munro
Trustee
Company Registration No. 03916937
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THE FAITH HOPE & ENTERPRISE COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
1 Accounting policies
Charity information
The Faith Hope & Enterprise Company Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is Office 47 Eurocom House, Derby West Business Centre, Ashbourne Road, Derby, DE22 4NB, United Kingdom.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006 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)". 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 financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements 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 financial statements, 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 financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
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 financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4 Income
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.
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 Expenditure
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THE FAITH HOPE & ENTERPRISE COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
1 Accounting policies
(Continued)
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Enter depreciation rate via StatDB - cd74 Fixtures, fittings & equipment 15% on cost Motor vehicles 25% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
1.7 Fixed asset investments
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.
A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.8 Impairment of fixed assets
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
1.9 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.
1.10 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.
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THE FAITH HOPE & ENTERPRISE COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
1 Accounting policies
(Continued)
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 p aymen ts 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 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Donations and legacies
| Unrestricted Restricted funds funds 2021 2021 £ £ Donations and gifts 6,167 900 Grants 28,722 8,126 34,889 9,026 |
TotalUnrestricted funds 2021 2020 £ £ 7,067 12,167 36,848 - 43,915 12,167 |
|---|---|
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THE FAITH HOPE & ENTERPRISE COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
4 Investments
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2021 | 2020 | |
| £ | £ | |
| Rental income | 396,292 | 350,032 |
| Interest receivable | 40 | 245 |
| 396,332 | 350,277 |
5 Charitable activities
| Charitable | Charitable |
|
|---|---|---|
| Expenditure | Expenditure |
|
| Heading 1 | Heading 1 |
|
| 2021 | 2020 |
|
| £ | £ |
|
| Property | 1 | - |
| Property | 245,084 | 182,426 |
| 245,085 | 182,426 |
|
| 245,085 | 182,426 |
6 Trustees
None of the trustees (or any persons connected with them) received any remuneration during the year, One trustee was re imbursed for travelling expenses totalling £58 (2020- £ 15 ).
7 Employees
The average monthly number of employees during the year was:
| 2021 | 2020 |
|---|---|
| Number | Number |
| 11 | 6 |
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THE FAITH HOPE & ENTERPRISE COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
8 Other
| Governance Costs Tangible fixed assets Cost At 1 April 2020 Additions At 31 March 2021 Depreciation and impairment At 1 April 2020 At 31 March 2021 Carrying amount At 31 March 2021 At 31 March 2020 |
UnrestrictedUnrestricted funds funds 2021 2020 177,869 159,739 177,869 159,739 Land and buildings Fixtures, fittings & equipment Motor vehicles Total £ £ £ £ 201,777 200 8,400 210,377 135,900 - - 135,900 337,677 200 8,400 346,277 - 200 8,400 8,600 - 200 8,400 8,600 337,677 - - 337,677 201,777 - - 201,777 |
|---|---|
9 Tangible fixed assets
Investment properties rented to another group entity have been accounted for using the cost model. The carrying value of these investment properties included within tangible fixed assets is £ 201777 (2020 - £ 97896 ).
10 Fixed asset investments
| Other | |
|---|---|
| investments | |
| Cost or valuation | |
| At 1 April 2020 & 31 March 2021 | 10 |
| Carrying amount | |
| At 31 March 2021 | 10 |
| At 31 March 2020 | 10 |
2021 2020
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THE FAITH HOPE & ENTERPRISE COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
| 10 Fixed asset investments Other investments comprise: Notes Investments in subsidiaries 17 11 Debtors Amounts falling due within one year: Trade debtors Amounts owed by subsidiary undertakings 12 Loans and overdrafts Debenture loans Bank loans Payable within one year Payable after one year |
(Continued) £ £ 10 10 2021 2020 £ £ 2,967 5,373 150 350 3,117 5,723 2021 2020 £ £ 34,036 30,750 267,498 142,997 301,534 173,747 - 17,284 301,534 156,463 |
|---|---|
The otherr loans are unsecured, interest free with Jubilee Church, and a separate, interest free, unsecured loan with R Prince.Bank loans are secured on the freehold property.
13 Creditors: amounts falling due within one year
| Notes Bank loans 12 Trade creditors Accruals and deferred income |
2021 £ - - 2,688 2,688 |
2020 £ 17,284 4,518 2,688 24,490 |
|---|---|---|
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THE FAITH HOPE & ENTERPRISE COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
14 Creditors: amounts falling due after more than one year
| Notes Bank loans 12 Other borrowings Analysis of net assets between funds Unrestricted funds Restricted TotalUnrestricted funds 2021 2021 2021 2020 £ £ £ £ Fund balances at 31 March 2021 are represented by: Tangible assets 337,677 - 337,677 201,777 Investments 10 - 10 10 Current assets/ (liabilities) 62,068 - 62,068 35,604 Long term liabilities (301,534) - (301,534) (156,463) 98,221 - 98,221 80,928 |
2021 2020 £ £ 267,498 125,713 34,036 30,750 301,534 156,463 Restricted Total 2020 2020 £ £ - 201,777 - 10 - 35,604 - (156,463) - 80,928 |
|---|---|
15 Analysis of net assets between funds
16 Related party transactions
There were no disclosable related party transactions during the year (2020 - none) .
17 Subsidiaries
These financial statements are separate charity financial statements for The Faith Hope & Enterprise Company Ltd
Details of the charity's subsidiaries at 31 March 2021 are as follows:
Name of undertaking Registered Nature of business Class of % Held office shares held Direct Indirect Taylor Made Housing td UK Dormant Ordinary 100.00
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