**COMPANY REGISTRATION NUMBER : 10348139**
# **HOME-START ESSEX LIMITED COMPANY LIMITED BY GUARANTEE UNAUDITED FINANCIAL STATEMENTS 31 MARCH 2021**
**Charity Number : 1170940**
Edmund Carr LLP Chartered Accountants 146 New London Road Chelmsford Essex CM2 0AW
## **HOME-START ESSEX LIMITED COMPANY LIMITED BY GUARANTEE**
## **FINANCIAL STATEMENTS**
## **YEAR ENDED 31 MARCH 2021**
|**CONTENTS**|**PAGE**|
|---|---|
|Trustees' annual report|**1**|
|Independent Examiner's report to the Trustees|**9**|
|Statement of financial activities|**10**|
|Balance sheet|**11**|
|Statement of cash flows|**12**|
|Notes to the financial statements|**13**|
|Management information|**23**|
**HOME-START ESSEX LIMITED COMPANY LIMITED BY GUARANTEE**
## **TRUSTEES' ANNUAL REPORT**
## **YEAR ENDED 31 MARCH 2021**
The Trustees, who are also Directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the period ended 31 March 2021. The Trustees/Directors have prepared the accounts in accordance with the Charities Act 2011, 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).
## **REFERENCE AND ADMINISTRATIVE DETAILS**
**Registered Company number** 10348139 (England and Wales)
**Registered Charity number** 1170940
## **Registered office**
Home-Start Essex Unit 16D Reeds Farm Estate Roxwell Road Chelmsford Essex CM1 3ST
## **Trustees**
Jill Barclay – resigned 4/05/2020 Bryan Burrough Karl Davies Diane Deans – appointed 17/04/2020 Rebecca Dixon Clare Dorothy - resigned 21/05/2021 Trudy Nash – appointed 18/09/2020 David Neale Nerisha Sethi – appointed 15/05/2020 Lance Spring Sarah St. Pierre (Chair) Ann Tomlins Johanna Burnett - appointed 20/08/2021
**Company Secretary** David Neale
**Chief Executive Officer** Nicola O'Brien
1
**HOME-START ESSEX LIMITED COMPANY LIMITED BY GUARANTEE**
## **TRUSTEES' ANNUAL REPORT (continued)**
## **YEAR ENDED 31 MARCH 2021**
## **Members Guarantee**
The company is a registered charity and a company limited by guarantee with liability of each of the members being limited to £1.
## **Independent examiner**
Raymond Crace FCA Edmund Carr LLP 146 New London Road Chelmsford Essex CM2 0AW
## **OBJECTIVES AND ACTIVITIES**
## **Objectives and aims**
The Objects of the Charity are:
_a) To safeguard, protect and preserve the good health, both mental and physical, of children and parents of children;_
_b) To prevent cruelty to or maltreatment of children;_
_c) To relieve sickness, poverty and need amongst children and parents of children;_
_d) To promote the education of the public in better standards of child care;_
Principally, but not exclusively, within the area of Essex and its environs.
The vision of the charity, as captured in our Strategic Plan is:
_“For every child and young person in Essex to grow up in a family that is strong and resilient and able to access the support they need, when and where they need it.”_
The Charity’s Mission Statement is:
_“To provide high-quality, family-led services, by ourselves and in collaboration with others, which enable families to be strong and resilient.”_
The financial year to 31 March 2021 was our fourth full year of trading and was a year where we changed and adapted our services and the way in which we, as Trustees, staff and volunteers, worked to meet both the requirements of the pandemic, but also to ensure that we kept operating to meet the varying increasing needs of the families we support. We were fortunate to recruit three new Trustees to our Board and to continue to review and strengthen our Governance arrangements. It was a year of significant development in our use of IT, both in managing the business of the organisation, but also in providing vital support and communicating with our families and volunteers, including improvements to our website and the use of social media.
A key focus of our support to families remains our volunteer home-visiting services, alongside Group and School Readiness programmes. Home-Start Essex believes that all children need a happy and secure childhood to help them to achieve their full potential. The recognition that parents play a key role in giving their children the best start in life has meant that there is an increasing emphasis on developing our wellbeing services in order to support the emotional and mental health needs of parents.
2
**HOME-START ESSEX LIMITED COMPANY LIMITED BY GUARANTEE**
## **TRUSTEES' ANNUAL REPORT (continued)**
## **YEAR ENDED 31 MARCH 2021**
## **Public benefit**
The Trustees confirm that they have reviewed the Charity Commission’s guidance on public benefit, including guidance on public benefit and charging, when setting and reviewing the aims and objectives of the charity and making plans for the future.
The charity currently provides services at no cost to beneficiaries, funded through applications to the National Lottery Community Fund, public sector bodies, trusts and charities, through community fundraising, individual giving and sponsorship. In the future, fees may be charged for some services; however, the Trustees would, at all times, be mindful of the needs of those living on low incomes and on benefits, when setting fees, charges and concessions.
Home-Start Essex recruits and trains volunteers, who have parenting experience or experience of working with families and children, to provide regular weekly home-based support to families, usually with, at least, one child under five struggling with a wide range of factors affecting their ability to cope. They offer friendly and informal confidential support to help parents build their confidence, resilience and improve their wellbeing. Volunteers also provide support at the family groups, family events, fundraising events and other special projects and are supervised, supported and receive ongoing training from experienced Coordinators.
Home-Start Essex’s support of parents and children helps them to grow in confidence, strengthen their relationships, build local supportive networks within the community and so ensure that children are given the best possible start in life.
## **ACHIEVEMENTS AND PERFORMANCE**
Through the Charity’s work, the Trustees/Directors are pleased to report the following Outputs and Outcomes as highlights for the financial year to 31 March 2021:
**----- Start of picture text -----**
258 door-
161
634 families 1231 children volunteers step
deliveries
supported supported engaged as of
made to 133
March 2021
families
289 families 81% of
80% of
received regular families
families report
volunteer phone report they
they are
support or are more
coping better
outdoor visits confident
**----- End of picture text -----**
2020-2021 saw a complete adaptation to Home-Start Essex services as a result of lockdown and social distancing due to the pandemic. This resulted in an immediate cessation of our home-visiting volunteer service in March 2020 and a switch to providing support to families via telephone/video. We quickly changed our volunteer training programme to an online course and introduced additional telephone befriending training. Although many existing home-visiting volunteers felt unable to support during lockdown, we were able to recruit further volunteers and also provide weekly support to families via paid staff such as our family Co-ordinators, who worked tirelessly to ensure that families had the support they needed. Despite the loss of volunteers during this period, we were still able to end the year with 161 volunteers.
3
## **HOME-START ESSEX LIMITED COMPANY LIMITED BY GUARANTEE TRUSTEES' ANNUAL REPORT (continued)**
## **YEAR ENDED 31 MARCH 2021**
In addition, face to face Family and Wellbeing Groups had to cease and we adapted the groups to be delivered online, supported by a rapid expansion of our website resources in the provision of online resources that families could access to support nursery/school readiness, creative play activities, healthy eating/living and emotional wellbeing support.
Volunteers and staff also provided door-step drop-offs of resources for families, including essential basic supplies, food and clothing, Christmas hampers and presents, school readiness resources and play resources to support online group engagement. We completed 258 door-step deliveries during the year. Our service transitioned during this year to be even more holistic in approach; we continued to provide the vital much needed weekly emotional support and practical help, but extended that support to meet financial and basic needs of extremely vulnerable families.
Despite the pandemic, many families felt that support from Home-Start Essex was a lifeline and the performance measures on families feeling more confident after support remain high at 81% and have increased on last year from 77% to 80% where families report that they are coping better following support.
Our quick transition to adapting service provision for families enabled us to still support 634 families throughout the year and increase the number of children supported by nearly 200 to 1231.
However, due to the pandemic, Home-Start Essex has been unable to provide regular face to face weekly support to families. Therefore, the depth of our service provision has not reached the levels of previous years. This potentially results in an in-built demand and unmet need for services in the next few years. The pandemic has directly impacted on children’s health, nutrition, education, learning, protection, wellbeing, family finances and poverty, also resulting in the emergence of a 'lost generation' that will need enhanced support for many years to come.
## **Fundraising activities**
The COVID-19 restrictions made it difficult to hold fundraising events, so, although we did run a number of very successful on line quiz evenings, income from this source reduced. However, mainly thanks to our anonymous donor, who increased their donation from £40,000 to £80,000, income from all our donors increased from £58,947 to £117,857. With so many organisations requiring additional finance during the pandemic, we were very fortunate that our grant income fell by less than 10%, and we greatly appreciated the support of our grant funders, with particular thanks to the National Lottery Community Fund, The Henry Smith Charity and the Essex Community Foundation.
Our contract income also rose during the year with continuing work with Virgin Care Services Limited to provide services under the Essex County Council’s ‘Essex Child and Family Wellbeing Service’ (ECFWS). We were pleased that the contract was renewed for, at least, a further two years. We also worked directly with Essex County Council through the pandemic and were funded to deliver a ‘Warm and Safe Programme’ to respond to some of the issues families faced during this challenging time. We started delivery of a two-year contract in April 2020 with A Better Start Southend to provide a homevisiting volunteer service in six identified wards with the highest levels of deprivation in Southend.
We continue to seek to diversify our sources of income and are prioritising corporate sponsorship and the possibility of setting up a trading subsidiary to generate income for the charity. We are increasingly looking to work with partners to use our joint efforts to meet the needs of families. Once restrictions allow, we aim to improve our local fundraising efforts.
4
## **HOME-START ESSEX LIMITED COMPANY LIMITED BY GUARANTEE**
## **TRUSTEES' ANNUAL REPORT (continued)**
## **YEAR ENDED 31 MARCH 2021**
## **PLANS FOR FUTURE PERIODS**
On 23 March 2020, the UK went into full lockdown and Home-Start Essex had to adapt quickly. Home-Start Essex continued to provide family support and rapidly adjusted the services to ensure that we remained open to the families, who needed help more than ever.
During the pandemic, Home-Start Essex established a ‘Stronger Futures’ working group to survey families, volunteers, and staff on their feedback on COVID-19 adapted services, ways of working and new or continued service provision needs following the pandemic. The findings provided several recommendations that were agreed by the Board and became part of our annual plan objectives moving forward. The learning from these adaptations and different ways of working will continue to inform the way in which the organisation develops its service offer to children and families across Essex, making them relevant to the external pressures we face.
As we start to establish a new ‘normal’ and can start to return to face-to-face services, we have made the decision to offer the adapted services, which have been successfully received, as part of our normal service. We will continue to offer a Volunteer Telephone Befriending service and continue to provide Virtual Wellbeing Online groups. These services will complement our core services.
The Trustees and CEO continue to meet bi-annually to review and update the Annual Plan, which underpins the ambitions of the Strategic Plan 2019-2024. The strategic focus of our service delivery continues to be modelled on four key themes - wellbeing, parenting, social isolation and school readiness, and also to support families on their journey to be happy, healthy and resilient within their community.
The Strategic aims and priorities of the plan will ensure that we continue to achieve efficiencies and improvements to support the delivery of high quality services, which we aim to provide to families. This has been supported by the engagement in the Thrive Programme via Essex Community Foundation and in partnership with Cranfield Trust to develop infrastructure efficiencies and additional support via Cranfield Trust to improve digital efficiencies through our client relationship management system. The overarching aim is to achieve longer-term financial sustainability given our fundraising position and plans.
The Trustees and staff of Home-Start Essex will continue to look forward and seek opportunities to develop our services further, informed by feedback from the families and partner organisations, and to demonstrate the outcomes and impact of our work with children and families.
## **FINANCIAL REVIEW**
In the financial year to 31 March 2021, the Statement of Financial Activities shows a net surplus in funds of £200,360 for the year, which means that with the Total Funds brought forward figure of £277,025, we carry forward into the next financial year, a balance of £477,385.
|Total Income
Total expenditure
Net Income / (Expenditure)|2021
£
821,377
621,017
200,360|2020
£
781,299
740,051|
|---|---|---|
|||41,248|
5
## **HOME-START ESSEX LIMITED COMPANY LIMITED BY GUARANTEE TRUSTEES' ANNUAL REPORT (continued)**
## **YEAR ENDED 31 MARCH 2021**
The substantial improvement in the financial position was almost entirely due to a reduction in expenditure of £119,034 (16.1%) brought about by the revision of service delivery due to the COVID-19 pandemic. In addition, under Income, the Job Retention Scheme (£30,346) was a payment from the Government that enabled Home-Start Essex to retain some valuable members of staff, who were unable to continue working normally, due to the pandemic. However, the enforced changes in service delivery to our families has meant that there will be an increasing number requiring our support, and a demand for additional services, and so this will inevitably lead to an increase in costs over the next few years.
The income for the year, comprising Donations of £117,857 , income from Charitable Activities of £670,842, income from other trading activities: fundraising of £2,332 and the income of £30,346 from the Job Retention Scheme, was £40,078 (5.1%) higher than the previous year. Donations were 100% up on last year, despite the impact of the coronavirus pandemic. This increase was mainly due to the receipt of the second instalment, through the Essex Community Foundation, of £80,000 from our generous anonymous donor – up from £40,000 last year. Income from Charitable Activities, comprising Grants of £428,029 and from Contracts of £242,813, was 6.7% lower than last year. During the year, we were pleased to receive substantial grant income from several organisations including The National Lottery Community Fund (£170,420) and BBC Children in Need (£38,010). In addition, once again we were grateful to the Essex Community Foundation, through which we received funds from various organisations totalling £109,550 including the grant from The Henry Smith Charity (£60,000). As reported under Fundraising Activities (above), Contract income increased with the £175,000 from Virgin Care Services, and further work with Tavistock Relationships and A Better Start Southend. We thank all those named above, and all our other funders and donors, for their support for our services during, what has been, a very challenging year for the Charity, and most certainly for the families that we work to support.
As mentioned above, COVID-19 had a major impact on expenditure last year, due to the fact that we had to make so many changes to the way we delivered our services. Staffing costs continued to be the largest element of our expenditure at £493,554 (79.5%), but this figure was £74,380 (13.1%) lower than last year, even before taking into consideration the monies received from the Government under the Job Retention Scheme. As expected under these circumstances, the cost of delivery was down on last year so that, for instance, Travelling and Expenses for staff and volunteers were down by £11,050 (74.9%). In addition, Rent and Rates were down by £10,058 (36%) due mainly to the closing of two offices and Governance costs were down by £8,028 (44.4%) because the previous year’s figure included the cost of consultants to produce an Impact Report.
The Trustees are confident that there are sufficient funds, both available and due to be received, to support the services being delivered by Home-Start Essex for, at least, the next twelve months. Monitoring procedures are in place to identify when grants are due to end, so that an early decision can be made, to either allocate alternative funding, or to re-plan service delivery.
## **Reserves Policy**
The total funds held by the charity at the 31 March 2021, amounted to £477,385, of which £90,391 were restricted funds and £386,994 were unrestricted funds. The Home-Start Essex reserves policy is to hold sufficient funds to cover three to six months’ expenditure. As of 31 March 2021, based on the Unrestricted Funds held and budgeted expenditure for 2022, this target was met.
6
## **HOME-START ESSEX LIMITED COMPANY LIMITED BY GUARANTEE**
## **TRUSTEES' ANNUAL REPORT (continued)**
## **YEAR ENDED 31 MARCH 2021**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
Home-Start Essex is a registered Charity, number 1170940 (Registered in England and Wales), and a Company Limited by Guarantee, number 10348139, as defined by the Companies Act 2006. Home-Start Essex is controlled by its governing document, a Memorandum and Articles of Association, dated 11 July 2016, and also abides by its Agreement with Home-Start UK.
## **Governance**
The Trustees are responsible for formulating the strategy and ensuring compliance with policies for HomeStart Essex and meet regularly and as necessary, in accordance with the procedures stipulated in the Articles of Association.
The Trustees ensure that Home-Start Essex complies with all requirements of its agreement with Home-Start UK and the Home-Start Quality Assurance system, working to the Home-Start UK quality standards, and adopting and implementing all mandatory policies provided by Home-Start UK. Home-Start Essex also leverages Home-Start UK model policies and produces its own additional policies as necessary.
**Recruitment and appointment of new Trustees** Home-Start Essex regularly reviews the skills of Trustees, and, for any specific identified skills gaps, we endeavour to actively recruit new Trustees with those skills. We also take into consideration the need to succession plan, either by preparing existing Trustees to take on lead roles or actively advertising for Trustees, so that we reduce the risk of losing essential skills on the Board. We seek to have a Board, which embraces the principles of Equality, Fairness, Diversity and Inclusion, and represents the population of Essex.
The Board of Trustees has established procedures for recruiting and appointing Trustees, including informal visits or discussions, formal application and interview, consideration by the full Board of Trustees, and election by a majority of votes.
## **Induction and training of new Trustees**
Home-Start Essex is committed to full induction and ongoing training of Trustees. A comprehensive induction pack and plan is agreed with all new Trustees, tailored to individual needs and previous experience, which includes meeting with operational staff and opportunities to meet with families and volunteers. A Trustee Code of Conduct is signed by all new Trustees and there are opportunities to attend an induction with Home-Start UK. The Chair meets regularly with Trustees in order to continually learn and provide development opportunities in support of the organisation.
**Arrangements for setting pay and remuneration of key management** When determining the salaries for key management posts, Trustees collect information about comparable roles in other voluntary organisations as well as across the Home-Start national network. This information is used to benchmark the charity’s salaries, normally aiming to set them at a level that appears to represent the market average. The pay of the Chief Executive Officer comprises a single fixed salary point - i.e. no banding. The CEO’s pay is reviewed annually. Each year, the Trustees will consider whether an independent review of salaries is necessary. In reviewing the charity’s Remuneration Policy and annual increments, the Trustees will consider available advice and best practice, including, but not limited to, the NCVO’s guidance on “Setting and Communicating Remuneration Policies”.
7
## **HOME-START ESSEX LIMITED COMPANY LIMITED BY GUARANTEE**
## **TRUSTEES' ANNUAL REPORT (continued)**
## **YEAR ENDED 31 MARCH 2021**
## **Risk management**
The Trustees have a duty to identify and review the risks to which the Charity is exposed; to ensure that appropriate controls are in place to provide reasonable assurance against fraud and error. The Strategic Risk Register is formed of individual risk registers managed by each of the Committees of the Board. These are reviewed every three months; more frequently if the need arises. The Strategic Risk Register is reviewed once a year by the CEO or by the Board of Trustees.
A supplemental risk register was developed in response to the COVID-19 pandemic. The Trustees are satisfied that systems and procedures are in place to mitigate exposure to such risks, and benefit from strong support of funders/stakeholders.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
Approved by order of the Board of Trustees/Directors on 29 October 2021 and signed on its behalf by:
## **D Neale**
Trustee
8
## **HOME-START ESSEX LIMITED COMPANY LIMITED BY GUARANTEE**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES**
## **YEAR ENDED 31 MARCH 2021**
I report on the accounts of the company for the period ended 31 March 2021 which are set out on pages 10 to 22.
## **Responsibilities and basis of report**
As the charity trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the company 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 your company’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
I confirm that I am qualified to undertake the examination because I am a member of The Institute of Chartered Accountants in England and Wales, 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:
1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts 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
4. the accounts 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 accounts to be reached.
## **Raymond Crace FCA**
146 New London Road Chelmsford CM2 0AW
29 October 2021
9
## **HOME-START ESSEX LIMITED COMPANY LIMITED BY GUARANTEE**
## **STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)**
## **YEAR ENDED 31 MARCH 2021**
|**Note**
**INCOME FROM:**
Donations
**2**
Charitable activities
**3**
Other trading activities: fundraising
Other income: Job Retention Scheme
**TOTAL INCOME**
**EXPENDITURE ON:**
Raising funds
Charitable activities
**4**
**TOTAL EXPENDITURE**
**NET INCOME / (EXPENDITURE)**
**Transfers between funds**
**NET MOVEMENT IN FUNDS**
**Reconciliation of funds:**
Total Funds brought forward
**Total Funds carried forward**|**Unrestricted**
**Funds**
**£**
117,857
202,936
2,332
30,346
353,471
-
158,721
158,721
194,750
75,272
270,022
116,972
386,994|**Restricted**
**Funds**
**£**
-
467,906
-
-
467,906
-
462,296
462,296
5,610
(75,272)
(69,662)
160,053
90,391|**Total Funds**
**2021**
**£**
117,857
670,842
2,332
30,346
821,377
-
621,017
621,017
200,360
-
200,360
277,025
477,385|**Total Funds**
**2020**
**£**
58,947
719,184
3,168
-|
|---|---|---|---|---|
|||||781,299|
|||||1,878
738,173|
|||||740,051|
|||||41,248
-|
|||||41,248
235,777|
|||||277,025|
The charity has no recognised gains or losses other than the results for the period as set out above.
**The notes on pages 13 to 22 form part of these financial statements.**
10
## **HOME-START ESSEX LIMITED COMPANY LIMITED BY GUARANTEE BALANCE SHEET**
## **AS AT 31 MARCH 2021**
|**Note**
**£**
**£**
**CURRENT ASSETS**
Debtors
**8**
41,280
Cash at bank
494,501
535,781
**CREDITORS: Amounts falling**
**due within one year**
**9**
(58,396)
**NET CURRENT ASSETS**
477,385
**NET ASSETS**
477,385
**FUNDS OF THE CHARITY**
Restricted funds
**11**
90,391
Unrestricted funds
**12**
386,994
**TOTAL CHARITY FUNDS**
477,385
**2021**|**£**
**£**
81,652
251,988
333,640
(56,615)
277,025
277,025
160,053
116,972
277,025
**2020**|**£**
**£**
81,652
251,988
333,640
(56,615)
277,025
277,025
160,053
116,972
277,025
**2020**|
|---|---|---|
|||277,025|
|||160,053
116,972|
|||277,025|
For the period ending 31 March 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors’ responsibilities:
- i) The members have not required the company to obtain an audit of its accounts for the period in question in accordance with section 476;
- ii) The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These financial statements have been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.
These financial statements were approved by the Trustees on 29 October 2021 and are signed on their behalf by:
## **D Neale**
Trustee
Company Registration Number: 10348139
**The notes on pages 13 to 22 form part of these financial statements.**
11
## **HOME-START ESSEX LIMITED COMPANY LIMITED BY GUARANTEE STATEMENT OF CASH FLOWS**
## **YEAR ENDED 31 MARCH 2021**
|**Notes**
**Net movement in funds for the reporting period**
(as per the statement of financial activities)
**Adjustments for:**
(Increase) / decrease in debtors
**8**
Increase / (decrease) in creditors
**9**
**Cash flows from operating activities:**
**Net cash provided by / (used in) operating activities**
**Cash flows from investing activities:**
Dividends, interest and rents from investments
**Net cash provided by / (used in) investing activities**
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents brought forward
**Cash and cash equivalents carried forward**|**Total**
**2021**
**£**
200,360
40,372
1,781
242,513
-
-
242,513
251,988
494,501|**Total**
**2020**
**£**
41,248
(39,133)
(5,389)|
|---|---|---|
|||(3,274)|
|||-|
|||-|
|||(3,274)
255,262|
|||251,988|
**The notes on pages 13 to 22 form part of these financial statements.**
12
## **HOME-START ESSEX LIMITED COMPANY LIMITED BY GUARANTEE**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **YEAR ENDED 31 MARCH 2021**
## **1. ACCOUNTING POLICIES**
## **a) Basis of accounting**
The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), 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 (effective 1 January 2019) (Charities SORP FRS 102) and the Companies Act 2006.
Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
The Trustees have considered the impact of the Covid-19 pandemic in their assessment of the charity’s ability to prepare accounts as a going concern. Because of the uncertainties surrounding the effects of the economic slowdown it is difficult to predict the impact on the charity and its funders, but having taken all the factors into account, the trustees are of the opinion that the charity has sufficient resources to continue trading for the next 12 months from the date of signing these accounts.
## **b) Legal Status**
The charity is a company limited by guarantee and meets the definition of a public benefit entity under FRS102. It is incorporated in England and Wales and its registered address is Unit 16D Reeds Farm Estate, Roxwell Road, Chelmsford, Essex, CM1 3ST.
## **c) Income**
Income from donations and grants, including capital grants, is included in incoming resources when these are receivable, except as follows:
When donors specify that donations and grants given to the charity must be used in future accounting periods, the income is deferred until those periods.
When donors impose conditions which have to be fulfilled before the charity becomes entitled to use such income, the income is deferred and not included in incoming resources until the pre-conditions have been met.
When donors specify that donations and grants, including capital grants, are for particular restricted purposes, which do not amount to pre-conditions regarding entitlement, this income is included in incoming resources of restricted funds when receivable.
13
## **HOME-START ESSEX LIMITED COMPANY LIMITED BY GUARANTEE**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **YEAR ENDED 31 MARCH 2021**
## **d) Expenditure**
All expenditure is accounted for on an accruals basis and includes VAT as the charity is not VAT registered. Governance costs are associated with the governance arrangements of the charity. Support costs are apportioned between the funds based on budgeted expenditure at the start of the year.
## **e) Fixed Assets**
Capital items costing in excess of £1,000 are capitalised. Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset by the straight-line method.
There were no capitalised assets at the year-end date.
## **f) Debtors**
Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.
## **g) Creditors and provisions**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount.
## **h) Fund accounting**
Funds held by the charity are either:
Unrestricted general funds – these are funds which can be used in accordance with the charitable objects at the discretion of the trustees.
Designated funds – these are unrestricted funds that the Trustees have set aside for specific designated purposes.
Restricted funds – these are funds that can only be used for particular restricted purposes within the objects of the charity.
14
## **HOME-START ESSEX LIMITED COMPANY LIMITED BY GUARANTEE**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **YEAR ENDED 31 MARCH 2021**
|**2. DONATIONS**
**Unrestricted**
**Funds**
**£**
Large donations
80,000
General donations
37,857
117,857
_Total 2020_
_58,947_
**3. INCOME FROM CHARITABLE ACTIVITIES**
**Unrestricted**
**Funds**
**£**
3,500
199,436
202,936
_Total 2020_
_23,109_
Grants to support charitable activities
Contracts to provide charitable activities|**Restricted**
**Funds**
**£**
-
-
-
_-_
**Restricted**
**Funds**
**£**
424,529
43,377
467,906
_696,075_|**Total Funds**
**2021**
**£**
80,000
37,857
117,857
_58,947_
**Total Funds**
**2021**
**£**
428,029
242,813
670,842
_719,184_|**Total Funds**
**2020**
**£**
40,000
18,947|
|---|---|---|---|
||||58,947|
||||**Total Funds**
**2020**
**£**
474,559
244,625|
||||719,184|
|||||
15
**HOME-START ESSEX LIMITED COMPANY LIMITED BY GUARANTEE**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **YEAR ENDED 31 MARCH 2021**
## **4. CHARITABLE EXPENDITURE**
|Service Delivery
Events
Staff costs
Home-Start UK Levy
Support costs:
Rent and rates
Office costs
Equipment and materials
Travelling and expenses
Advertising
Training
Bank charges
Other
Governance costs**(note 5)**
_Total 2020_|**Unrestricted**
**Funds**
**£**
-
-
58,459
10,029
17,844
40,875
-
-
1,459
-
69
19,931
10,055
158,721
_65,254_|**Restricted**
**Funds**
**£**
5,000
1,700
435,095
-
-
-
10,512
3,703
-
6,286
-
-
-
462,296
_672,919_|**Total Funds**
**2021**
**£**
5,000
1,700
493,554
10,029
17,844
40,875
10,512
3,703
1,459
6,286
69
19,931
10,055
621,017
_738,173_|**Total Funds**
**2020**
**£**
12,881
2,514
567,934
14,620
27,902
39,446
-
14,753
2,743
10,400
60
26,837
18,083|
|---|---|---|---|---|
|||||738,173|
||||||
## **5. GOVERNANCE COSTS**
|Independent examination
Payroll and furlough claim fees
Accounts preparation
Fees payable to Independent Examiner
Other professional fees|**Unrestricted**
**Funds**
**£**
1,500
6,420
2,135
10,055
-
10,055|**Restricted**
**Funds**
**£**
-
-
-
-
-
-|**Total Funds**
**2021**
**£**
1,500
6,420
2,135
10,055
-
10,055|**Total Funds**
**2020**
**£**
1,500
4,202
2,265|
|---|---|---|---|---|
|||||7,967
10,116|
|||||18,083|
16
## **HOME-START ESSEX LIMITED COMPANY LIMITED BY GUARANTEE**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **YEAR ENDED 31 MARCH 2021**
## **6. ANALYSIS OF STAFF COSTS**
|**ANALYSIS OF STAFF COSTS**|||
|---|---|---|
|Wages and salaries
Social security costs
Pension costs
Staff expenses|**2021**
**£**
456,480
24,503
12,509
62
493,554|**2020**
**£**
503,208
29,758
13,186
21,782|
|||567,934|
Staff costs are allocated between funds based upon the time spent by staff members on restricted charitable activities and administration.
None of the employees' emoluments exceeded £60,000.
None of the trustees or persons connected with them received any remuneration for their services.
The average number of employees during the year, by head count, was 38 (2020: 38).
The remuneration benefits of key management personnel totalled £41,830 (2020: £41,851).
## **7. NET INCOME / (EXPENDITURE) FOR THE YEAR**
This is stated after charging:
|Independent examination fee
Payroll and furlough claim fees
Accounts preparation|**2021**
**£**
1,500
6,420
2,135|**2020**
**£**
1,500
4,202
2,265|
|---|---|---|
17
## **HOME-START ESSEX LIMITED COMPANY LIMITED BY GUARANTEE**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **YEAR ENDED 31 MARCH 2021**
## **8. DEBTORS**
|**DEBTORS**|||
|---|---|---|
|Trade debtors
Prepayments
Accrued income|**2021**
**£**
14,583
1,433
25,264
41,280|**2020**
**£**
45,209
16,053
20,390|
|||81,652|
## **9. CREDITORS: Amounts falling due within one year**
|Trade creditors
Other creditors
Tax and social security
Accruals
Deferred income|**2021**
**£**
1,124
2,675
7,987
4,943
41,667
58,396|**2020**
**£**
21,209
2,240
4,462
6,732
21,972|
|---|---|---|
|||56,615|
## **10. COMMITMENTS UNDER OPERATING LEASES**
Total future minimum lease payments under non-cancellable operating leases are as follows:
|Within one year
Between 2 and 5 years|**2021**
**£**
5,528
-
5,528|**2020**
**£**
8,073
2,544|
|---|---|---|
|||10,617|
18
## **HOME-START ESSEX LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 MARCH 2021**
## **11. RESTRICTED FUNDS**
|**11. RESTRICTED FUNDS**||||||
|---|---|---|---|---|---|
|1)
ABSS
2)
BBC Children in Need
Essex Community Foundation:
3)
Healthwatch
4)
NET Emergency
5)
The Henry Smith Charity
6)
Braintree District and Greenfields Community Fund
7)
Daphne Woodward
8)
Chrysalis/Wellbeing Fund
9)
Frank Litchfield General Charitable Trust
10)
Neighbourly
11)
Turncole Wind Farm Community Benefit Fund
Mulberry Trust:
12)
Mulberry - Core
13)
Mulberry - Core
14)
Mulberry - Perinatal
15) Tavistock Relationships
16) Uttlesford District Council
17) Chelmsford City Council
18) ECC Warm & Safe
19) People's Postcode Lottery
Home-Start UK:
20)
Home-Start UK - Army Grant
21)
Home-Start UK - Masonic
22)
Home-Start UK - Emergency Covid
23) Cadent Foundation
National Lottery Community Fund:
24)
National Lottery Community Fund
25)
Coronavirus Community Support Fund 1
26)
Coronavirus Community Support Fund 2
27) Thomas Beckett
28) Groundwork
29) Basildon Council Mental Health Fund|**Balance at**
**01/04/2020**
**£**
**-**
8,035
11,183
-
15,000
4,884
-
13,477
-
-
3,725
4,785
-
-
6,191
-
-
-
-
4,500
-
-
-
84,673
-
-
3,600
-
-|**Income**
**Expenditure**
**£**
**£**
43,378
(36,037)
38,010
(25,744)
7,000
(16,933)
15,000
(15,000)
60,000
(60,000)
19,500
(23,705)
750
-
(13,477)
6,900
-
400
(400)
-
(1,950)
-
(4,430)
15,000
(9,680)
13,160
(5,988)
-
-
10,500
(8,879)
6,000
(6,000)
33,333
(24,520)
14,100
(7,616)
-
(4,500)
4,375
(3,281)
2,000
(2,000)
5,000
(5,000)
54,930
(74,122)
54,990
(54,990)
60,500
(57,544)
-
-
500
(500)
2,580
-
467,906
(462,296)
**Movement in resou**||**Transfers**
**£**
**-**
-
-
-
-
-
-
-
-
-
-
-
-
-
(6,191)
-
-
-
-
-
-
-
-
(65,481)
-
-
(3,600)
-
-
**rces:**|**Balance at**
**31/03/2021**
**£**
7,341
20,301
1,250
-
15,000
679
750
-
6,900
-
1,775
355
5,320
7,172
-
1,621
-
8,813
6,484
-
1,094
-
-
-
-
2,956
-
-
2,580|
||160,053|467,906|(462,296)|(75,272)|90,391|
Transfers: these have arisen following a review of the restricted funds brought forward by the Trustees as detailed on page 20.
19
## **HOME-START ESSEX LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 MARCH 2021**
## **11. RESTRICTED FUNDS**
The purposes of the restricted funds are as detailed below:
- 1) ABSS: To fund a home-visiting volunteer service for families within Southend.
- 2) BBC CIN: To fund Family Groups in Chelmsford, Witham, Braintree, Halstead and Maldon.
- 3) ECF Healthwatch: To fund research into perinatal mental health services in West Essex and deliver an elpitha programme in West Essex.
- 4) ECF NET Emergency: To provide resources to families to support our adapted services including IT resources, online resources and school readiness resources.
- 5) ECF The Henry Smith Charity: To fund core costs.
- 6) ECF Greenfields: To fund well-being groups and fitness and fun in Braintree.
- 7) ECF Daphne Woodward: To fund family holidays to families living in Essex.
- 8) ECF Chrysalis/Wellbeing Fund: To fund a well-being group in Chelmsford.
- 9) ECF Frank Lichfield: To fund fitness and fun groups in Burnham-on-Crouch and Southminster.
- 10) ECF Neighbourly: To fund the purchase of food & basic essentials to families in Essex.
- 11) ECF Turncole Wind Farm: To fund fitness and fun groups in Burnham-on-Crouch and Southminster.
- 12) Mulberry Trust: To fund walk and talk, fitness and fun groups in Uttlesford.
- 13) Mulberry - Core: Funding towards the Fundraising and Marketing manager's salary.
- 14) Mulberry - Harlow: To fund perinatal work in Harlow.
- 15) Tavistock Relationships: A contract to fund the parenting together programme in Essex. This fund has been reclassifed as unrestricted.
- 16) Uttlesford District Council: To fund home-visiting groups in Uttlesford.
- 17) Chelmsford City Council: To fund a family group in Chelmsford.
- 18) ECC Warm & Safe: To fund the delivery of an immediate response for families in need of additional support through the pandemic with children under the age of 5 years.
- 19) Postcode Community Lottery: To fund a family group in Braintree and Halstead.
- 20) Home-Start UK - Army Grant: To fund a Carver Barracks drop in group.
- 21) Home-Start UK - Masonic: To fund our Big Hopes Big Futures (BHBF) school readiness programme.
- 22) Home-Start UK - Emergency Covid: To fund core costs and tablets and data dongles for families.
- 23) Cadent Foundation: To fund school readiness resources.
- 24) National Lottery Community Fund: To fund home-visiting, well-being and family groups throughout Essex. A review of expense allocation over the term of the contract identified an underallocation of costs to this fund resulting in a transfer to unrestricted funds.
- 25) National Lottery Community Fund – Coronavirus Community Support Fund 1: To fund the adaption of delivering our services remotely.
- 26) National Lottery Community Fund – Coronavirus Community Support Fund 2: To fund the adaption of delivering our services remotely. The closing balance of £2,956 was spent on computer equipment after the year end.
- 27) Thomas Beckett: To fund core costs. This fund has been reclassified as unrestricted.
- 28) Groundwork: To fund service delivery costs.
- 29) Basildon District Council: To fund mental health well-being groups in Basildon.
20
**HOME-START ESSEX LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 MARCH 2021**
## **11.RESTRICTED FUNDS (continued)**
**Prior year restricted funds movement:**
|**Prior year restricted funds movement:**|**Prior year restricted funds movement:**|||||
|---|---|---|---|---|---|
|**Balance at**
**01/04/2019**
**£**
a) ABSS
-
b) BBC Children in Need
11,118
Essex Community Foundation:
c)
Healthwatch
4,156
d)
Thriving Third Sector
17,500
e)
Henry Smith Trust
-
f)
Braintree District and Greenfields Community Fund
14,110
g)
Other ECF funds
26,078
h) Mulberry Trust
3,000
i) National Lottery Community Fund
9,601
j) Tavistock Relationships
-
k) Uttlesford District Council
-
l) Virgin Care Services
-
m) Garfield Weston
37,500
n) Gingerbread
-
o) Other
7,419
130,482||**Income**
**Expenditure**
**£**
**£**
11,954
(11,954)
28,137
(31,220)
7,000
-
10,000
(27,500)
60,000
(45,000)
-
(9,226)
27,891
(36,740)
14,785
(13,000)
285,162
(210,090)
51,357
(45,166)
8,250
(8,250)
175,000
(175,000)
-
(37,500)
6,314
(6,314)
10,225
(15,959)
696,075
(672,919)
**Movement in resour**||**Transfers**
**£**
-
-
-
-
-
-
-
-
-
-
-
-
-
6,415
**ces:**|**Balance at**
**31/03/2020**
**£**
-
8,035
-
11,156
-
15,000
4,884
17,229
4,785
84,673
6,191
-
-
-
-
8,100|
||130,482|696,075|(672,919)|6,415|160,053|
- a) To fund a home-visiting volunteer service for families within Southend.
- b) To fund family groups in Chelmsford, Witham, Basildon and Maldon.
- c) HSE is developing a new model for delivering information, advice and guidance (IAG) for mothers during the perinatal period.
- d) Funding for part funding of the CEO's salary.
- e) Funding for core costs.
- f) To expand delivery of the Well-Being services through the provision of an ongoing well-being group and a quarterly Fitness & Fun workshop delivered in the Braintree District.
- g) Includes wellbeing group as well as family holiday grants.
Funding for work focussing on domestic abuse.
- h) Award for the remuneration and costs relating to the post of Finance Manager.
- i) The Reaching Communities Funding is for the provision of friendship, support, and practical help through a weekly volunteer home visiting and group well-being / mental health counselling services to families in need across Mid and South Essex, usually where at least one child is under the age of five.
- j) To fund the parenting together programme in Essex.
- k) Volunteer recruitment and training, and supporting familes in Uttlesford.
- l) Funding for family support across Essex.
- m) To cover core costs in order to continue providing a service to parents with young children.
- n) The Working Forward Project which offers wrap-around support to lone parents, aiming to enhance
- their skills, to prepare them for and enable them to move into or closer to the local workforce.
- o) Other restricted donations and grants given for a variety of restricted purposes.
21
## **HOME-START ESSEX LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **YEAR ENDED 31 MARCH 2021**
## **12. UNRESTRICTED FUNDS**
|General unrestricted funds
Designated unrestricted funds|**Balance at**
**01/04/2020**
£
114,133
2,839
116,972|**Income**
**Expenditure**
**£**
**£**
353,471
(158,721)
-
-
353,471
(158,721)
**Movement in resou**|**Gains, losses**
**& transfers**
**£**
78,111
(2,839)
75,272
**rces:**|**Balance at**
**31/03/2021**
**£**
386,994
-|
|---|---|---|---|---|
|||||386,994|
## **13. ANALYSIS OF NET ASSETS (between restricted and unrestricted funds)**
|General unrestricted
Designated
Total unrestricted
Restricted|**Tangible**
**fixed assets**
**£**
-
-
-
-
-|**Other net**
**assets**
**£**
386,994
-
386,994
90,391
477,385|**Total**
**2021**
**£**
386,994
-
386,994
90,391
477,385|**Total**
**2020**
**£**
114,133
2,839|
|---|---|---|---|---|
|||||116,972
160,053|
|||||277,025|
## **14. RELATED PARTY TRANSACTIONS**
There were no related party transactions during the year.
## **15. COMPANY LIMITED BY GUARANTEE**
Every member of the company undertakes to contribute to the assets of the Company in the event of the same being wound up during the time he/she is a member, or within one year afterwards, for the payments of the debts and liabilities of the company contracted before the time at which he/she ceases to be a member and of the costs, charges and expenses of winding up the same, and for the adjustments of the rights of the contributors among themselves such amount as may be required not exceeding one pound.
22