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2020-12-31-accounts

LEWES DISTRICT CHURCHES HOMELINK

Charitable Incorporated Organisation

TRUSTEES' ANNUAL REPORT

& FINANCIAL STATEMENTS

for the year ended

31st DECEMBER 2020

Registered Charity Number 1174895

Office address: 208 High Street, School Hill, LEWES, East Sussex, BN7 2NS

Lewes District Churches HOMELINK (CIO)

TRUSTEES' ANNUAL REPORT 2020

The Board of Trustees of Lewes District Churches HOMELINK (registered charity number 1174895) presents its Annual Report and Accounts for the year ended 31st December 2020.

1 Charity objects

The object of the Charity is 'the relief of persons in housing need who are in financial hardship, elderly or sick, and are resident or seeking residence in the area of the Lewes District Council'.

2 Governance

Lewes District Churches HOMELINK is a Charitable Incorporated Organisation (CIO), set up in 2017 at the instigation of the Board of an unincorporated charity of the same name (charity number 1068735, hereafter referred to as 'the Trust'). The CIO has the same objectives as the Trust, and is governed in accordance with the Charity Commission's foundation model constitution.

The Board of Trustees meets four times a year, and has delegated management responsibilities to a Management Committee between meetings. Up to 12 trustees are appointed by the Churches Together groups in Lewes, Newhaven and Seaford, and a further 4 trustees may be co-opted by the Board, although there are no co-opted trustees at present. An annual meeting open to all local supporters would normally be held each year, but was not possible in the circumstances of 2020.

3 Charitable activities

The operations of HOMELINK were transferred from the Trust to the CIO as from 1st April 2019, and all the assets and liabilities of the Trust were transferred to the CIO as at that date. The principal charitable activity continues to be the provision of interest-free loans to people seeking private rented accommodation in the Lewes District area. Loans can cover the deposit and/or first month's rent, and are generally repayable by monthly instalments over periods of 3-5 years.

In addition, a limited number of small non-repayable grants are available to help with some of the costs of setting up home in a new place; or to pay for short-term lodgings for people upon release from Lewes prison.

National restrictions on movement for much of the year prevented widespread viewing of properties, and meant that fewer tenancies than usual were taken up. Nonetheless HOMELINK still managed to assist 83 new tenants with loans (compared to 98 in 2019). In addition, some 65 non-repayable grants were made to provide essential household goods or short-term accommoation for applicants under financial constraints during lockdown. We are most grateful to all the HOMELINK staff, who continued to offer advice and assistance during 'lockdown', enabling a number of clients to make a move while observing all the necessary precautions.

In fact, a total of 309 applications was received during the year for loans or grants, resulting in over 200 telephone interviews with would-be tenants, more than in either 2018 or 2019. In the hope of greater freedom of movement in 2021, it seems wise to plan for a backlog of new tenancies.

4 Finance

The accounts of the CIO are set out on pages 4-7 below, and a comparison with the combined activity of the CIO and the Trust during 2019 is given on page 8. New loans were largely funded by repayments from earlier loans, together with local council grants and voluntary donations from individuals, churches and other organisations. Staffing costs were covered by a legacy and from charitable grants. We are grateful for the generosity of all the support received, and for advice and encouragement from the Ernest Kleinwort Charitable Trust and other grant-making bodies.

Lewes District Churches HOMELINK (CIO)

TRUSTEES' ANNUAL REPORT 2020 (continued)

5 Reserves policy

The trustees need to hold reserves for cash flow reasons, i.e. to ensure they can pay salaries and other costs as they arise, and can fund new tenant loans in advance of income from donations and grants. The Charity also sometimes needs to draw upon reserves when the demand for loans is particularly acute; and for this reason, the former Caburn Trust has been identified as a backup source of funding in case there is a post-Covid recovery surge in loan applications in 2021.

In order to clarify the way in which HOMELINK activities are funded, the trustees have decided in future to make separate reserve provision for tenant loans and for operational expenses. A new designated reserve of £80,000 has been created to support future new tenant loans; leaving a 'free' reserve of £42,647 to provide for salaries and other operational expenses as at the end of 2020 ( see note 9.3 on page 7 ). Both reserves are equivalent to some six months' worth of the planned outlay in their respective sectors.

The Trustees consider this to be an appropriate level and pattern of reserves for the time being, and accordingly, they have pleasure in confirming formally that they consider the CIO to be a going concern for at least the next 12 months, and are working to secure a fully sustainable future.

The trustees have regard to the Charity Commission's guidance on public interest. Our services are open and accessible to all groups of homeless people irrespective of gender, race, nationality, religion, sexual orientation, class, disability, age, marital status, HIV status, appearance or size.

7 Risk management

The Board regularly reviews the major risks which the Charity faces and decides on any actions needed to reduce the likelihood or impact of such risks. HOMELINK is a relatively small charity and heavily dependent on a few key people. Consequently it faces many of the risks associated with security of resources and future loss of personnel. For these reasons, especial attention is directed to financial controls and to maintaining sound and clear written operational procedures.

8 Strategy

Over the coming year the trustees will maintain the programme of loans and grants to tenants. The CIO has continued the Trust's longstanding working partnership with Lewes District Council's Housing staff, and the majority of applicants to HOMELINK come through referrals from LDC.

The year 2020 was dominated for us all by the coronavirus outbreak. HOMELINK endeavoured to continue to support people with housing needs wherever possible. Whilst the Lewes office was closed, staff worked from home to respond to enquiries and, as already indicated, the Charity plans to be in a position to respond as the level of housing activity picks up in 2021.

Given the significant growth of the Trust's work over the last five years, the Board has taken steps towards future-proofing the Charity by strengthening the paid administration, particularly in finance and communications. Early in 2021 an additional Client Manager was appointed, enabling the office to open on an additional day each week, and to provide easier access to our services.

The Board has continued its efforts to enhance awareness of HOMELINK locally and to extend its reach to new supporters. It was not possible to provide many of the traditional fund-raising activities in 2020, but an online auction was held in October as part of a new outreach programme under the title #homes4families. The auction raised over £5,000, and has since prompted further interest in HOMELINK. We thank everyone who took part, and we are grateful for all the commitment shown by our regular supporters and by others who have raised funds for our work.

Lewes District Churches HOMELINK (CIO)

TRUSTEES' ANNUAL REPORT 2020 (continued)

9 Trustees

The trustees who held office during the year and up to the date of this report were:-

Mrs Joan Wignall ( Chair ) Mr Terence Howell * Mrs Christine Tutt ( Secretary ) Ms Rosalind Kellaway ( from July 2020 ) Mr John Howes ( Treasurer )* Mrs Jane Lee * Mr John Cornish Mr Malcolm Mazey Mrs Diana Dixon Rev Jacqueline Parson Mrs Linda Fisher * Mrs Joanna Slaughter

The Management Committee comprised those trustees marked * above, together with Mr Neil Fisher.

Signed on behalf of the trustees on 29th April 2021

J V Wignall Chair

Lewes District Churches HOMELINK (CIO)

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STATEMENT OF FINANCIAL ACTIVITIES
Year ended 31st December 2020
Unrestricted Designated Restricted Total Total
Funds Funds Funds 2020 2019
£ £ £ £ £
Income from:
- -
Voluntary donations (note 2) 30,472 30,472 27,706
- -
Charitable grants (note 3) 33,214 33,214 44,608
- -
Local housing grants (note 4) 15,100 15,100 18,750
- -
Fund-raising events 8,401 8,401 51,916
Investment income 398 - - 398 355
Tax refunds 2,597 - - 2,597 2,500
-
41,868 48,314 90,182 145,835
Expenditure (note 5) on:
- -
Employee expenses 48,089 48,089 21,498
-
Office expenses 6,192 1,584 7,776 7,770
- -
Tenant expenses 14,625 14,625 32,333
- -
Non-repayable grants 17,770 17,770 5,559
Communications & events 1,547 - 10,386 11,933 28,971
-
88,222 11,970 100,192 96,131
Transfers between funds 36,735 -12,977 -23,758 - -
(to fund expenses)
Net income for the year -9,619 -12,977 12,586 -10,010 49,704
Transfers to fund loans -64,900 80,000 -15,100 - -
Net movement in funds -74,519 67,023 -2,514 -10,010 49,704
Transfers from HOMELINK Trust - - - - 487,083
-
Fund balances at 1st January (note 9) 453,927 56,918 25,942 536,787
Fund balances at 31st December '20 379,408 123,941 23,428 526,777 536,787
----- End of picture text -----

Lewes District Churches HOMELINK (CIO)

BALANCE SHEET As at 31st December 2020

Social investments
Concessionary loans to tenants
Current assets
Sundry debtors
Cash at bank and on deposit
Current liabilities
Creditors due within one year
The Funds of the Charity
Restricted funds
Unrestricted funds
- Designated funds
- General Fund		 Notes
6
7
8
7
9		 2020
2019
£
£
336,761
348,439
500
26,333
189,516
166,215
-
-4,200
526,777
536,787
23,428
25,942
123,941
56,918
379,408
453,927
526,777
536,787

Signed on behalf of the trustees on 29th April 2021

J V Wignall John Howes Chair Treasurer

Lewes District Churches HOMELINK (CIO)

NOTES TO THE ACCOUNTS

2 Voluntary donations

Donations are gifts received from individuals, churches, charities and other organisations.

3 Charitable grants

This line includes major charitable grants towards our 'future-proofing' project to enhance the staffing of the Charity. The trustees would like especially to thank the Ernest Kleinwort Charitable Trust and the Nationwide Foundation for their generous assistance. The comparative figure for 2019 also includes sponsorships received from corporate supporters towards the costs incurred in promoting our 20th anniversary gala concert at Glyndebourne.

4 Local housing grants

A grant of £11,800 was received from Lewes District Council to help fund concessionary loans to homeless clients. The final instalment of a special grant obtained under the Discretionary East East Sussex Support Scheme (DESSS) in fiscal year 2019/20 is also included. The aim of the DESSS grant is to assist homeless people who might otherwise otherwise fall outside our usual criteria.

5 Expenditure

The Charity employed a part-time Client Manager and three other part-time staff. Other expenses included the hire of office and interviewing accommodation (£2,856), insurance (£669) and IT equipment and support (£2,468). A £10,000 consultancy project to establish an up-to-date communications and outreach strategy was met from charitable funds donated for this purpose.

6 Concessionary loans to tenants

Interest-free loans are made to people with little or no savings, able to live independently and seeking accommodation in the private sector in the Lewes District area. A total of 83 new loans were made this year ( 98 in 2019 ); and at the end of 2020, 398 individuals, couples and families were recorded as holding loans from HOMELINK ( 384 in 2019 ).

Balance at 1st April 2019
Balance at 1st January 2020
New loans advanced in the year
Repayments during the year
Write-offs and adjustments
Balance at 31st December
Provision in case of non-repayment of loans		 Total
Total
2020
2019
£
£
-
403,660
398,439
-
122,535
104,088
-119,588
-96,976
-14,625
-12,333
386,761
398,439
-50,000
-50,000
336,761
348,439

The CIO is recognised for claims to HMRC under the gift aid scheme. An estimated debtor has been included for the 4th quarter of 2020. There are no outstanding creditors.

Lewes District Churches HOMELINK (CIO)

NOTES TO THE ACCOUNTS (continued)

8 Cash at bank and on deposit

These are held in designated bank accounts according to use or need, with available funds placed on deposit.

9 Statement of funds

Restricted funds
Grants for salary costs
Local housing grants
Other restricted gifts
Unrestricted funds
Designated
- Tenant Loans
- Former Caburn Trust
- Legacy Fund
General Fund		 Balance at
Incoming
Resources
Balance at
1.1.2020
resources
expended
Transfers
31.12.2020
£
£
£
£
£
13,799
30,500
-4,060
-22,758
17,481
-
15,100
-
-15,100
-
12,143
2,714
-7,910
-1,000
5,947
25,942
48,314
-11,970
-38,858
23,428
-
-
-
80,000
80,000
29,336
-
-
-
29,336
27,582
-
-
-12,977
14,605
453,927
41,868
-88,222
-28,165
379,408
536,787
90,182
-100,192
-
526,777

In addition to the paid staff, much of the work of the Charity is carried out on a voluntary basis by the trustees and about a dozen other volunteers. No emoluments were paid to trustees.

Routine postage and stationery costs totalling £172 were reimbursed to two trustees ( 2019: £218 ), and repayment was also made to a trustee and a related party for expenses directly incurred on behalf of the Charity (£712).

Identifiable donations totalling £735 were received from trustees and related parties (2019: £ 1,671)

Lewes District Churches HOMELINK (Charitable Trust & CIO)

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COMPARISON OF 2020 WITH COMBINED SUMMARY FOR 2019
Comparison of income and expenditure of the CIO in 2020 Total Total
with the combined results of the Trust and the CIO in 2019 2020 2019
£ £
Income from:
Voluntary donations (note 2) 30,472 33,993
Charitable grants (note 3) 33,214 56,108
Local housing grants (note 4) 15,100 25,000
Fund-raising events 8,401 51,916
Investment income 398 556
Tax refunds 2,597 3,572
90,182 171,145
Expenditure (note 5) on:
Employee expenses 48,089 28,759
Office expenses 7,776 9,263
Tenant expenses 14,625 38,888
Non-repayable grants 17,770 9,748
Communications & events 11,933 30,796
100,192 117,454
Net income for the year -10,010 53,691
Fund balances at 1st January 536,787 483,096
Fund balances at 31st December 526,777 536,787
Concessionary Loans
Balance at 1st January 398,439 382,216
New loans advanced in the year 122,535 156,236
Repayments during the year -119,588 -121,124
Write-offs and adjustments -14,625 -18,889
Balance at 31st December 386,761 398,439
Provision in case of non-repayment of loans -50,000 -50,000
336,761 348,439
Cash at bank & other net current assets 190,016 188,348
526,777 536,787
----- End of picture text -----

Lewes District Churches HOMELINK (CIO)

INDEPENDENT EXAMINER'S REPORT

I report to the trustees on my examination of the accounts of the Charity for the year ended 31st December 2020, which are set out on pages 3 to 6 above.

Responsibilities and basis of report

As the charity trustees of the Trust, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').

I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and 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

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

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.

Signed: Steven Willox

Name: H. Steven Willox FCA Date: 29th April 2021

Address : Shelbourne, Cuckmere Road, SEAFORD, BN25 4DG