Charity registration number 1167974
Company registration number 03916937 (England and Wales)
THE FAITH HOPE & ENTERPRISE COMPANY LTD ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
THE FAITH HOPE & ENTERPRISE COMPANY LTD
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Mr N T Gregory Mr J Khan Mr I Johnson Mrs D Haworth Mr D Palterman (Appointed 8 January 2024) 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 - 14 |
THE FAITH HOPE & ENTERPRISE COMPANY LTD
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2024
The trustees present their annual report and financial statements for the year ended 31 March 2024.
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
Faith Hope and Enterprise 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
This year has been one of consolidation after our growth last year. We have increased the support team and now employ four full time support workers, all of whom have lived experience of homelessness, and our office manager has increased her hours to four days a week.
We have further strengthened the board of trustees, appointing Dominic Palterman in January. Dominic brings financial expertise and a detailed understanding of supported accommodation to the board. We hope to continue appointing trustees with specialised knowledge and skills in the coming year.
With our support, 10 people moved on into independent living this year and 3 of those people moved on having found employment. In addition, 3 further residents moved on to live with family members. The restoration of family relationships is one of the most important and rewarding outcomes of our support.
Financial review
We significantly improved our grant and charitable income this year, enabling us to increase the number of hours of support that we have provided to residents. This has been particularly important as the cost-of-living crisis has been so challenging for residents and we have seen an increase in the number of mental health issues that we have been supporting people with.
Our increased staff hours has enabled us to spend more time with residents, especially at times of crisis, and prepare rooms for new residents more quickly than we were able to do previously. This has helped us to support more people and reduce the instances of empty rooms.
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THE FAITH HOPE & ENTERPRISE COMPANY LTD
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
The staff team has also continued to develop. We have been able to provide additional training opportunities to support staff, our office manager and maintenance team. We have also developed a management team among the staff, to support the work of the Chief Executive.
Feedback from our residents is very important to us. One resident, who left our accommodation in 2023 after 12 years of support to move back to the locality where his family live, messaged us to say, “Many thanks for the part that Faith Hope and Enterprise played, and the great things you did that made me and my family very happy.”
Another resident told us, “I feel respected, the support workers have been in my shoes. Their understanding and fairness in decision making (is a strength of the charity)."
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 J Khan Miss C S McKen (Resigned 28 September 2023) Mrs P M Munro (Resigned 8 January 2024) Mr I Johnson Mrs D Haworth Mr D Palterman (Appointed 8 January 2024)
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' report was approved by the Board of Trustees.
Mrs D Haworth
Trustee Dated: 30 June 2024
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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 2024.
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 FCCA, 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.
Steve Harcourt FCCA Azets
2 Regan Way Chetwynd Business Park Chilwell Nottingham NG9 6RZ United Kingdom
Dated: 30 June 2024
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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 2024
| Current financial year Unrestricted Restricted funds funds 2024 2024 Notes £ £ Income from: Donations and legacies 3 40,198 96,786 Investments 4 619,792 - Total income 659,990 96,786 Expenditure on: Charitable activities 5 516,991 96,786 Other 8 4,230 - Total expenditure 521,221 96,786 Net gains/(losses) on investments 9 60,000 - Net income/(expenditure) for the year/ Net movement in funds 198,769 - Fund balances at 1 April 2023 289,110 - Fund balances at 31 March 2024 487,879 - |
Total Unrestricted funds 2024 2023 £ £ 136,984 23,380 619,792 492,412 756,776 515,792 613,777 517,476 4,230 7,480 618,007 524,956 60,000 - 198,769 (9,164) 289,110 298,274 487,879 289,110 |
|---|---|
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 2024
| Notes Fixed assets Tangible assets 11 Investment properties 12 Investments 13 Current assets Debtors 14 Cash at bank and in hand Creditors: amounts falling due within one year 16 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 17 Net assets Income funds Unrestricted funds |
2024 £ £ 11,142 861,346 10 872,498 35,144 130,567 165,711 (49,381) 116,330 988,828 (500,949) 487,879 487,879 487,879 |
2023 £ £ 12,048 796,361 10 808,419 6,004 37,847 43,851 (21,619) 22,232 830,651 (541,541) 289,110 289,110 289,110 |
|---|---|---|
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 2024.
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 30 June 2024
Mrs D Haworth
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 2024
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, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts 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.
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.
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THE FAITH HOPE & ENTERPRISE COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
1 Accounting policies
(Continued)
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
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:
| Plant and machinery | 25% on cost |
|---|---|
| Fixtures, fittings & equipment | 25% 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 the statement of financial activities.
1.7 Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
1.8 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.
1.9 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).
1.10 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.
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THE FAITH HOPE & ENTERPRISE COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
1 Accounting policies
(Continued)
1.11 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.
1.12 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
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.
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THE FAITH HOPE & ENTERPRISE COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
3 Donations and legacies
| Unrestricted | Restricted | Total | Unrestricted | |
|---|---|---|---|---|
| funds | funds | funds | ||
| 2024 | 2024 | 2024 | 2023 | |
| £ | £ | £ | £ | |
| Donations and gifts | 25,198 | - | 25,198 | 20,911 |
| Grants | 15,000 | 96,786 | 111,786 | 2,469 |
| 40,198 | 96,786 | 136,984 | 23,380 | |
| Investments | ||||
| Unrestricted | Unrestricted | |||
| funds | funds | |||
| 2024 | 2023 | |||
| £ | £ | |||
| Rental income | 618,399 | 491,183 | ||
| Interest receivable | 1,393 | 1,229 | ||
| 619,792 | 492,412 |
4 Investments
5 Charitable activities
| Property Property Analysis by fund Unrestricted funds Restricted funds |
2024 £ 96,786 516,991 613,777 613,777 516,991 96,786 613,777 |
2023 £ - 517,476 |
|---|---|---|
| 517,476 | ||
| 517,476 | ||
| 517,476 - |
||
| 517,476 |
6 Trustees
None of the trustees (or any persons connected with them) received any remuneration during the year.
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THE FAITH HOPE & ENTERPRISE COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
7 Employees
The total monthly number of employees during the year was:
| The total monthly number of employees during the year was: | |||
|---|---|---|---|
| 2024 | 2023 | ||
| Number | Number | ||
| 12 | 12 | ||
| There were no employees whose annual remuneration was more than £60,000. | |||
| 8 | Other | ||
| Unrestricted | Unrestricted | ||
| funds | funds | ||
| 2024 | 2023 | ||
| Governance Costs | 4,230 | 7,480 | |
| 4,230 | 7,480 | ||
| 9 | Net gains/(losses) on investments | ||
| Unrestricted | Total | ||
| funds | |||
| 2024 | 2023 | ||
| £ | £ | ||
| Revaluation of investment properties | 60,000 | - |
10 Taxation
The charity is exempt from tax on it's charitable activities.
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THE FAITH HOPE & ENTERPRISE COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
11 Tangible fixed assets
| Plant and machinery Fixtures, fittings & equipment Motor vehicles £ £ £ Cost At 1 April 2023 499 - 16,154 Additions 399 4,536 - At 31 March 2024 898 4,536 16,154 Depreciation and impairment At 1 April 2023 62 - 4,543 Depreciation charged in the year 225 1,578 4,038 At 31 March 2024 287 1,578 8,581 Carrying amount At 31 March 2024 611 2,958 7,573 At 31 March 2023 437 - 11,611 |
Total £ 16,653 4,935 |
|---|---|
| 21,588 | |
| 4,605 5,841 |
|
| 10,446 | |
| 11,142 | |
| 12,048 |
12 Investment property
| Fair value At 1 April 2023 Additions through external acquisition Disposals Net gains or losses through fair value adjustments At 31 March 2024 |
2024 £ 796,361 7,320 (2,335 60,000 |
|---|---|
| 861,346 |
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Freehold | 861,346 | 796,361 |
| Long leasehold | - | - |
| Short leasehold | - | - |
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THE FAITH HOPE & ENTERPRISE COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
| 13 | Fixed asset investments | |||
|---|---|---|---|---|
| Other | ||||
| investments | ||||
| Cost or valuation | ||||
| At 1 April 2023 & 31 March 2024 | 10 | |||
| Carrying amount | ||||
| At 31 March 2024 | 10 | |||
| At 31 March 2023 | 10 | |||
| 2024 | 2023 | |||
| Other investments comprise: | Notes | £ | £ | |
| Investments in subsidiaries | 20 | 10 | 10 |
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THE FAITH HOPE & ENTERPRISE COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
| 14 Debtors Amounts falling due within one year: Trade debtors Amounts owed by subsidiary undertakings Prepayments and accrued income 15 Loans and overdrafts Other loans Mortgages and bank loans Payable within one year Payable after one year |
2024 £ 33,050 1,020 1,074 35,144 2024 £ 14,682 495,089 509,771 8,822 500,949 |
2023 £ 5,359 535 110 |
|---|---|---|
| 6,004 | ||
| 2023 £ 28,254 526,859 |
||
| 555,113 | ||
| 13,572 541,541 |
The other loans are unsecured. The mortgage is with The Charity Bank and is secured on the property.
16 Creditors: amounts falling due within one year
| Other Loans Other taxation and social security Trade creditors Other creditors Accruals and deferred income |
2024 £ 8,822 9,899 3,085 18,760 8,815 49,381 |
2023 £ 13,572 3,976 496 - 3,575 |
|---|---|---|
| 21,619 |
17 Creditors: amounts falling due after more than one year
| Notes Bank loans 15 Other loans |
2024 £ 495,089 5,860 500,949 |
2023 £ 526,859 14,682 |
|---|---|---|
| 541,541 |
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THE FAITH HOPE & ENTERPRISE COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
18 Financial commitments, guarantees and contingent liabilities
The charity leases nine properties, break clauses for these properties amount to £38,552.60 at the year end.
19 Related party transactions
There were no disclosable related party transactions during the year (2023 - none).
20 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 2024 are as follows:
Name of undertaking Registered Nature of business Class of % Held office shares held Direct Indirect Taylor Made Housing Ltd UK Dormant Ordinary 100.00
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