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2022-06-30-accounts

REGISTERED COMPANY NUMBER: 12068336 (England and Wales) REGISTERED CHARITY NUMBER: 1184991

REPORT OF THE TRUSTEES AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

FOR

CUMBRIA COMMUNITY HOMES

Collards Chartered Accountants Statutory Auditors 5-9 Eden Street Kingston-Upon - Thames Surrey KT1 1BQ

CUMBRIA COMMUNITY HOMES

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

Page
Report of the Trustees 1 to 7
Report of the Independent Auditors 8 to 11
Statement of Financial Activities 12
Balance Sheet 13
Cash Flow Statement 14
Notes to the Cash Flow Statement 15
Notes to the Financial Statements 16 to 23
Detailed Statement of Financial Activities 24 to 25

CUMBRIA COMMUNITY HOMES

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2022

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 year ended 30 June 2022. The trustees have adopted the provisions of 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

Objectives and aims

The charity's objective contained within the memorandum and articles of association, is to carry out for the benefit of the community, the business of providing and managing housing, including Social Housing, and providing assistance to help house people and associated facilities, amenities and services for persons in need because of youth, age, ill-health, disability, financial hardship or other disadvantage.

Significant activities

To provide good quality accommodation to vulnerable adults in the community meeting their individual needs.

To provide tenancy related care, support and supervision in a person-centred way enabling the enhancement and development of life skills, personal growth, independence, choice, and control.

To help those who are homeless or at risk of homelessness, individuals who struggle with mental or physical health or with a learning difficulty, those who are in recovery from substance misuse and people who are fleeing domestic violence.

To offer one to one financial support with personal budgets and provide a mentor for helping plan daily activities surrounding their tenancies such as meal planning, domestic duties and we signpost and support individuals with opportunities to socialise within the local community.

Our underpinning ethos is to develop an individual's capacity to live independently in the community and to develop or sustain basic life skills needed to hold down a tenancy or maintain a home.

Values

Trust

To build relationships on trust and keep our promises, to meet the expectations of tenants and be honest if we can't.

Integrity

To practice providing a quality service with integrity and sensitivity.

Non-judgemental

To listen to and meet the needs of everyone in a non-judgemental way.

Teamwork

To constantly look at ways to improve and deliver our service.

Empathy

To put ourselves in other people's shoes.

Positive attitude

To practice with a problem-solving approach.

History

The business was incorporated by Christine Bee on 25th June 2019, and became registered as a charity on 21st August 2019.

CCH has since grown into one of the leading Housing Support provider across the whole of Cumbria and parts of Lancashire, and are currently expanding their services across the North-East, parts of Lincolnshire and West Yorkshire.

Page 1

CUMBRIA COMMUNITY HOMES

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2022

OBJECTIVES AND ACTIVITIES Referrals

Referrals are received from statutory & non-statutory agencies with supporting documentation

Statutory Agencies:

Local Authority Housing Options Team Social Work Teams (care leavers and social care) Community Mental Health Team Health Authorities Probation Service Prison Service

Non-Statutory Agencies:

Mental Health Charities (MIND etc) Substance Misuse Centres Homeless Charities (YMCA, Local independent etc) Domestic Violence Charities (Woman's Aid etc)

All relevant and up to date information must be given within the initial referral, as to avoid referrals being rejected as not being suitable or being delayed due to missing information. Once the referral form has been received and checked, the refer will be contacted by one of the local Tenancy Sustainment Officer's to arrange meeting the prospective tenant, and to complete our Intensive Housing Management Assessment, which identifies how much support is required.

There are occasions, where tenants support needs are more than CCH can provide, when this happens, all parties will be informed, and an extra care package will be suggested before accommodation can be offered to ensure we are not setting the tenant up to fail.

Public Benefit

The Trustees are aware of Charity Commission guidance on public benefit reporting as set out in Section 17 of the Charities Act 2011. They believe Cumbria Community Homes fulfils a fundamental public benefit by providing and managing housing together with providing assistance to people in need.

STRATEGIC REPORT Achievement and performance

Strategic Growth

CCH have experienced a rapid growth since their incorporation due to the exceptional service they provide. Currently they have over 350 homes in management plus a number of housing developments that provides 24/7 concierge care for vulnerable adults.

The strategic plan for the next 12 months is to consolidate the current service being provided and ensure that they day to day operations can cope with the rapid growth of tenants, this will include putting in structures and controls across the business.

In response to the increased demand for such services within these areas, the team has also grown rapidly and CCH currently employ 50 people across housing management, tenancy officers, maintenance, admin and business development, plus relying on a growing network of consultants, freelancers and contractors where needed.

Page 2

CUMBRIA COMMUNITY HOMES

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2022

STRATEGIC REPORT Achievement and performance

Services

We will provide support to tenants of our accommodation, going beyond what would be provided by an ordinary Landlord.

Advice and guidance about what and what not to do in a property.

Spending regular time with a tenant to help them work through their support needs following an agreed support plan which identifies specific needs that the tenant requires help with.

Advice and guidance on use of kitchen facilities and appliances and in maintaining kitchen hygiene.

Assisting with the security of the property because of a tenant's needs.

An on-call 24/7 for every tenant.

In other projects, a 24 hour manned security and support service will be provided.

Assisting with maintaining health, safety and well-being in the Property.

Regular tenant meetings will provide an opportunity for concerns about health and safety to be raised.

Regular welfare checks where there is a risk to tenant's safety because of issues such as self-harm, harassment from others.

Weekly staff meetings to include discussion of health and safety matters.

Assisting with arranging minor repairs to domestic equipment and appliances. We have a competent maintenance team who assist tenants with their own minor repairs.

Providing life skills training in relation to waste disposal and cleanliness.

Our staff will be involved in enabling, reminding, and helping tenants to develop domestic and practical skills.

Life skills workshops will be provided including gardening, general kitchen experience to help and assist the tenant to develop life-skills.

Helping tenants to engage with individuals, professionals and other bodies with an interest in their welfare, providing advice, assistance and advocacy dealing with statutory and non-statutory agencies, other third parties and relatives.

We will help tenants to deal with telephone calls, correspondence and arranging meetings and can accompany tenants to meetings outside of the accommodation.

Staff will help tenants to remain in contact with their relatives (where requested to do so by the tenant) and keep relatives informed as to developments and progress and welfare.

Additional support will be provided to those tenants who require it to help build relationships with their family and friends, which will have been damaged in many cases.

In some projects, we will arrange for adaptations to enable individuals to cope with a disability.

Advising or assisting with personal budgeting and debt counselling providing any money-management advice, assistance and advocacy to the tenant and regular intervention to assist them in developing their money skills.

Helping to maintain relationships and solve disputes with others, including other tenants.

Page 3

CUMBRIA COMMUNITY HOMES

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2022

STRATEGIC REPORT

Achievement and performance

Regular one-to-one support sessions will provide an opportunity for appropriate resolution and discussion of actual or potential conflicts.

Dealing with benefit claims and other official correspondence relevant to sustaining accommodation; filling out forms, writing to benefit authorities, making phone calls on behalf of the tenant, sign-posting complex benefit issues to other professionals and providing or sourcing representation in relation to disputes and appeals.

Assisting with shopping, errands, and leisure activities.

We will arrange social events which help people feel less lonely and encourage them by to participate in supervised group activities.

Help with finding, choosing, and moving on into other accommodation.

Tenants will be supported to assess the risks and consider control measures when engaging with the community into which they are to resettle. Tenants will be supported to engage with accommodation and training providers and to apply for accommodation etc. Other support that enables you to cope with the practicalities of everyday life.

The staff will help the tenant in gaining access to education, training, meaningful employment etc.

Our impact

We continue to source good quality homes and give our support to those who need it most.

We also provide job opportunities to many local people of which are fulfilling and rewarding, in all areas that we operate

Due diligence

Due diligence for social housing starts with identifying potential areas where a shortage of supported accommodation exists, and these shortages can often be found in local authority Housing and Homeless Strategies. Discussions are then held with the Housing Options and Benefits Departments of the local authorities to establish if there is a need for specialist supported accommodation in that area and to ensure that any rent models can be agreed by the benefits department where specific groups of vulnerable people qualify for the Exempt Supported Accommodation Rate regarding Housing Benefit. Where rent models won't be in full payment and any shortage of referrals are identified, due consideration must be given whether Cumbria Community Homes should operate in that area.

Specific areas need to be identified where it is crucial that local services/amenities are available to the tenants - for example proximity to shops and local transport if mobility is an issue, local activities for those suffering mental health issues, being located close to a school for families who are being re-housed, certain groups may need to be housed away from schools, where it has been identified that a risk may be present etc.

Once demand and the rent models have been approved, establishing a referral pathway can be made, where all relevant agencies will be contacted.

Page 4

CUMBRIA COMMUNITY HOMES

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2022

STRATEGIC REPORT Financial review Financial position

The Trustees report a steady year for the Charity ending June 2022.

2021/2022 has continued to be a challenging year for the sector as a whole but the demand for supported housing within the region remains extremely high due to the increased levels of homelessness, vulnerable adults especially with mental health related issues and domestic violence cases all needing re-housing.

In general maintenance costs were significantly higher than originally anticipated due to the age of the properties managed by the Charity.

Staff has more than doubled throughout the financial year and there has been a recent focus on providing the necessary HR support needed to manage this. However there were no significant staff absences that affected the service offering to the tenants.

The Charity continues to work very closely with the local housing teams to help meet this increased demand and the delivery of care and support during this period remained high. However it has been important for the Charity to not take on a large number of new tenants as it consolidates its position having experienced rapid growth in the first couple of years of operation.

The focus going forward is to continue to put the necessary financial and operation controls and structure in place to support this growth.

Reserves policy

The charity's intention is to build up its reserves for the purposes of the development and sustainability of the charity. As a result of the expansion of the organisation in the 2021/22 year, it has not been able to instigate that policy but procedures are in place to ensure that the policy is adhered to in the current year and in the future. As at 30th June 2022 the reserves were in deficit of £90,464 (2021: surplus of £1,887).

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, Articles of Association, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

The Trustees have a responsibility to ensure that all aspects of the charity's activities are properly conducted and carried out in full compliance with its Articles of Association.

Recruitment and appointment of new trustees

Trustees are discussed at each quarterly Trustee meeting. Any proposed new Trustees are nominated by the Board of Trustees and are then interviewed and appointed if their skill set and knowledge contribute to the Charity's operations. Trustees receive a full overview of the operational side of the business, usually spending time with various staff members and tenancy officers visiting tenants, attending council meetings where necessary and spending time at the Charity's offices to understand the day-to-day running of the business.

Page 5

CUMBRIA COMMUNITY HOMES

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT Organisational structure

Role of Chief Executive

The CEO is accountable to the Board of Trustees and, along with other senior staff, is responsible for the day-to-day management of the Charity. These include hiring of senior staff, attending meetings with Local Authorities and Housing teams, dealing with any HR and payroll issues that are escalated, negotiation with landlords and general growth of the business.

Employee Remuneration

The Charity's remuneration policy sets appropriate pay levels for all personnel and takes into consideration the responsibilities undertaken within each role. Benchmarking is undertaken to ensure the remuneration matches the level of comparable organisations.

The CEO's remuneration is set by the Board of Trustees. Due to the fact that the Charity has only been operating since August 2019 pay levels of senior staff have remained very low and over time this will be addressed to reflect current market rates.

Risk management

The Trustees continue to assess the risk and uncertainties facing the Charity and how these may impact the financial position of the Charity. Risks are identified in the Trustees quarterly meeting and any risks that are felt to prevent the Charity achieving its objectives are reviewed with the senior management team.

The greatest risks relate to any unforeseen changes in Government policies, regular weekly/monthly meetings with the Local Authorities help negate this risk as the Charity are aware of any changes ahead of them being implemented.

Whilst the senior management team has remained very stable there is a relatively high staff turnover within the tenancy officer and maintenance teams. All new members of staff are required to complete a 2 week training period and then a further 2 weeks when they shadow a colleague.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

12068336 (England and Wales)

Registered Charity number

1184991

Registered office

37 Riverside Gardens Barrow In Furness Cumbria LA13 0DD

Trustees

Mr G C Asbury (resigned 24.5.22) Mr A P Oates (resigned 23.8.21) Mr P Sheldon Mrs E Stones Ms A Stevens

Chief Executive

Christine Bee

Page 6

CUMBRIA COMMUNITY HOMES

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2022

REFERENCE AND ADMINISTRATIVE DETAILS Auditors

Collards Chartered Accountants Statutory Auditors 5-9 Eden Street Kingston-Upon - Thames Surrey KT1 1BQ

Bankers

Barclays Bank plc Leicester LE87 2BB

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Cumbria Community Homes for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 1 November 2023 and signed on the board's behalf by:

Mrs E Stones - Trustee

Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF CUMBRIA COMMUNITY HOMES

Opinion

We have audited the financial statements of Cumbria Community Homes (the 'charitable company') for the year ended 30 June 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no material uncertainty related to going concern.

We draw attention to note 1 in the financial statements, which indicates that the company has made a deficit of expenditure over income in the year. In addition it has significant debts which will need to be collected in the short term to ensure that cash flow is sufficient to manage the business, together with a need to manage liabilities during that short term period. As stated in note 1, these events or conditions indicate that a material uncertainty exists that may cast doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors' assessment of the entity's ability to continue to adopt the going concern basis of accounting included obtaining information and evidence from management relating to the matters in question and fully evaluating that assessment. Our key observations arising with respect to that evaluation centred around the issues that have been disclosed in note 1 which led to our conclusion concerning the uncertainty.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Page 8

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF CUMBRIA COMMUNITY HOMES

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Page 9

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF CUMBRIA COMMUNITY HOMES

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Page 10

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF CUMBRIA COMMUNITY HOMES

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Christopher Julian Brigstocke FCA Senior Statutory Auditor

for and on behalf of Collards Chartered Accountants Statutory Auditors Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 5-9 Eden Street Kingston-Upon - Thames Surrey KT1 1BQ

1 November 2023

Page 11

CUMBRIA COMMUNITY HOMES

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 JUNE 2022

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
3
Housing
Total
EXPENDITURE ON
Charitable activities
4
Charitable activity
Housing
Other
Total
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
fund
£
35,567
3,026,198
3,061,765
1,244,950
1,897,007
12,159
3,154,116
(92,351)
1,887
(90,464)		 Restricted
fund
£
-
-
-
-
-
-
-
-
-
-		 30.6.22
Total
funds
£
35,567
3,026,198
3,061,765
1,244,950
1,897,007
12,159
3,154,116
(92,351)
1,887
(90,464)		 30.6.21
Total
funds
£
61,802
1,238,799
1,300,601
-
1,298,226
849
1,299,075
1,526
361
1,887

The notes form part of these financial statements

Page 12

CUMBRIA COMMUNITY HOMES

BALANCE SHEET 30 JUNE 2022

Unrestricted
fund
Notes
£
CURRENT ASSETS
Debtors
11
542,921
Cash at bank
3,984
546,905
CREDITORS
Amounts falling due within one year
12
(604,039)
NET CURRENT ASSETS/(LIABILITIES)
(57,134)
TOTAL ASSETS LESS CURRENT
LIABILITIES
(57,134)
CREDITORS
Amounts falling due after more than one year
13
(33,330)
NET ASSETS/(LIABILITIES)
(90,464)
FUNDS
16
Unrestricted funds
TOTAL FUNDS		 Restricted
fund
£
-
-
-
-
-
-
-
-		 30.6.22
Total
funds
£
542,921
3,984
546,905
(604,039)
(57,134)
(57,134)
(33,330)
(90,464)
(90,464)
(90,464)		 30.6.21
Total
funds
£
155,621
5,091
160,712
(113,337)
47,375
47,375
(45,488)
1,887
1,887
1,887

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2022.

The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of these financial statements.

The trustees acknowledge their responsibilities for

These financial statements have been audited under the requirements of Section 145 of the Charities Act 2011.

The financial statements were approved by the Board of Trustees and authorised for issue on 1 November 2023 and were signed on its behalf by:

Mrs E Stones - Trustee

The notes form part of these financial statements

Page 13

CUMBRIA COMMUNITY HOMES

CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2022

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest paid
Net cash provided by/(used in) operating activities
Cash flows from financing activities
Loan repayments in year
Net cash (used in)/provided by financing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 30.6.22
£
29,668
(12,159)
17,509
(18,616)
(18,616)
(1,107)
5,091
3,984		 30.6.21
£
(20,685)
(849)
(21,534)
-
-
(21,534)
26,625
5,091

The notes form part of these financial statements

Page 14

CUMBRIA COMMUNITY HOMES

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2022

1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net (expenditure)/income for the reporting period (as per the
Statement of Financial Activities)
Adjustments for:
Interest paid
Increase in long term creditors
Increase in bank overdraft
Increase in other loans
Increase in debtors
Increase in creditors
Net cash provided by/(used in) operations		 30.6.22
£
(92,351)
12,159
-
-
-
(387,300)
497,160
29,668		 30.6.21
£
1,526
849
37,488
6,312
11,000
(155,245)
77,385
(20,685)

2. ANALYSIS OF CHANGES IN NET DEBT

At 1.7.21
Cash flow
At
£
£
Net cash
Cash at bank
5,091
(1,107)
5,091
(1,107)
Debt
Debts falling due within 1 year
(23,312)
6,458
Debts falling due after 1 year
(45,488)
12,158
(68,800)
18,616
Total
(63,709)
17,509		 30.6.22
£
3,984
3,984
(16,854)
(33,330)
(50,184)
(46,200)

The notes form part of these financial statements

Page 15

CUMBRIA COMMUNITY HOMES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (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 (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

The Charity has reported a deficit in the accounts for the year and currently has a surplus of liabilities over assets in the balance sheet.

The Charity, which normally runs on a break even basis, has been adversely affected by the non payment of rent in relation to a particular property that it manages. The receipt of that rent is subject to a Tribunal due to be held in November 2023. The Trustees are confident that the contracted rent will be received which will significantly relieve cash flow pressures.

The deficit reported has come about as a result of rapid expansion and the need to invest in staffing and property costs to meet this expansion. The Trustees are confident that steps have been put in place to ensure that the organisation is now running on a break even basis and will be able to pay off its past debts.

Consequently the Trustees have prepared the accounts on a going concern basis.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Grants received are credited to profit and loss account in the financial period in which they are received.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Page 16

continued...

CUMBRIA COMMUNITY HOMES

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 JUNE 2022

1. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

2. DONATIONS AND LEGACIES

Donations
Grants
Grants received, included in the above, are as follows:
Other grants
3.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Rent contributions
Housing
4.
CHARITABLE ACTIVITIES COSTS		 30.6.22
£
19,898
15,669
35,567
30.6.22
£
15,669
30.6.22
£
3,026,198		 30.6.21
£
3,534
58,268
61,802
30.6.21
£
58,268
30.6.21
£
1,238,799
Charitable activity
Housing
5.
SUPPORT COSTS
Management
£
Charitable activity
284,060		 Direct
Costs
£
946,393
1,897,007
2,843,400
Finance
£
5,497		 Support
costs (see
note 5)
£
298,557
-
298,557
Governance
costs
£
9,000		 Totals
£
1,244,950
1,897,007		 Totals
£
1,244,950
1,897,007
3,141,957
Totals
£
298,557

continued...

Page 17

CUMBRIA COMMUNITY HOMES

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 JUNE 2022

6. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

Hire of plant and machinery
Other operating leases
Rent
7.
AUDITORS' REMUNERATION
Fees payable to the charity's auditors and their associates for the audit of the
charity's financial statements		 30.6.22
£
-
3,363
-
30.6.22
£
9,000		 30.6.21
£
367
12,544
569,191
30.6.21
£
6,000

8. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 30 June 2022 nor for the year ended 30 June 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 30 June 2022 (2021:£3,692).

9. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Staff		 30.6.22
£
689,073
45,780
8,029
742,882
30.6.22
28		 30.6.21
£
330,663
17,575
1,950
350,188
30.6.21
15

No employees received emoluments in excess of £60,000.

continued...

Page 18

CUMBRIA COMMUNITY HOMES

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 JUNE 2022

10.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
fund
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
61,802
Charitable activities
Housing
1,238,799
Total
1,300,601
EXPENDITURE ON
Charitable activities
Housing
1,298,226
Other
849
Total
1,299,075
NET INCOME
1,526
RECONCILIATION OF FUNDS
Total funds brought forward
361
TOTAL FUNDS CARRIED FORWARD
1,887
11.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Other debtors
Restricted
fund
£
-
-
-
-
-
-
-
-
-
30.6.22
£
450,080
92,841
542,921		 Total
funds
£
61,802
1,238,799
1,300,601
1,298,226
849
1,299,075
1,526
361
1,887
30.6.21
£
153,710
1,911
155,621

At 30th June 2022 the charity had a trade debtor of £263,510 recognised for a property at Lawson Street where housing and support is offered. This is currently subject to a tribunal hearing in November 2023 and is expected to be received in full.

continued...

Page 19

CUMBRIA COMMUNITY HOMES

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 JUNE 2022

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.6.22
£
Bank loans and overdrafts (see note 14)
10,004
Other loans (see note 14)
6,850
Trade creditors
418,512
Social security and other taxes
132,676
Other creditors
10,339
Accrued expenses
25,658
604,039
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
30.6.22
£
Bank loans (see note 14)
33,330
Other loans (see note 14)
-
33,330
LOANS
An analysis of the maturity of loans is given below:
30.6.22
£
Amounts falling due within one year on demand:
Bank loans
10,004
Other loans
6,850
16,854
Amounts falling between one and two years:
Bank loans - 1-2 years
10,010
Amounts falling due between two and five years:
Bank loans - 2-5 years
23,320
Other loans - 2-5 years
-
23,320
Amounts falling due in more than five years:
Repayable by instalments:
Bank loans more 5 yr by instal
-		 30.6.21
£
6,312
17,000
12,530
65,369
3,006
9,120
113,337
30.6.21
£
43,688
1,800
45,488
30.6.21
£
6,312
17,000
23,312
9,666
30,491
1,800
32,291
3,531

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

14. LOANS

continued...

Page 20

CUMBRIA COMMUNITY HOMES

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 JUNE 2022

15. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year
Between one and five years		 30.6.22
£
2,299,592
3,169,309
5,468,901		 30.6.21
£
832,710
1,598,160
2,430,870

16. MOVEMENT IN FUNDS

Unrestricted funds
General fund
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
TOTAL FUNDS		 At 1.7.21
£
1,887
1,887
Incoming
resources
£
3,061,765
3,061,765		 Net
movement
in funds
£
(92,351)
(92,351)
Resources
expended
£
(3,154,116)
(3,154,116)		 At
30.6.22
£
(90,464)
(90,464)
Movement
in funds
£
(92,351)
(92,351)

Comparatives for movement in funds

Net
movement At
At 1.7.20 in funds 30.6.21
£ £ £
Unrestricted funds
General fund 361 1,526 1,887
TOTAL FUNDS 361 1,526 1,887

continued...

Page 21

CUMBRIA COMMUNITY HOMES

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 JUNE 2022

16. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 Incoming
resources
£
1,300,601
1,300,601		 Resources
expended
£
(1,299,075)
(1,299,075)		 Movement
in funds
£
1,526
1,526

A current year 12 months and prior year 12 months combined position is as follows:

Net
movement At
At 1.7.20 in funds 30.6.22
£ £ £
Unrestricted funds
General fund 361 (90,825) (90,464)
TOTAL FUNDS 361 (90,825) (90,464)

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 Incoming
resources
£
4,362,366
4,362,366		 Resources
expended
£
(4,453,191)
(4,453,191)		 Movement
in funds
£
(90,825)
(90,825)

17. RELATED PARTY DISCLOSURES

During the period, the charitable company entered into the following related party transactions.

Fees and expenses paid to trustees: Mr G C Asbury £948 (2021: £1,000) Mr P Sheldon £Nil (2021 : £1,000) Mrs E Stones £61,328 (2021 : £33,632)

As at the balance sheet date the charitable company owed £3,675 (2021 : £2,090) to Mrs E Stones.

During the period, the charity entered into transactions with Stones ISH Holdings Limited. Mrs E Stone is a trustee of the charity and is a shareholder and director of this company. The charity received consultancy services in the amount of £56,033 (2021 : £38,950) which was for working with various landlords to grow the portfolio of properties available for the growing number of vulnerable tenant referrals needing social housing. The Charity received services in the amount of £139,897 (2021 : £Nil) for rent for properties owned by Stones ISH Holdings Limited.

continued...

Page 22

CUMBRIA COMMUNITY HOMES

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 JUNE 2022

17. RELATED PARTY DISCLOSURES - continued

As at the balance sheet date the charitable company is owed £26,955 (2021 : £1,911) by Mrs Christine Bee, an employee of the charity. This is an employee loan. This loan interest free, unsecured, and due to be repaid within one year.

During the year the charity had transactions with Cumbria Community Person Centred Approach Limited (CCPCA), a company controlled by Mrs Christine Bee, an employee of the charity. During this period, the charity received income of £45,452 (2021 : £Nil) on CCPCA's behalf, paid wages, and related taxes of £108,407 (2021 : £Nil) and received funds of £2,930 (2021 : £Nil) from CCPCA leading to a net debtor due to the charity of £65,885 (2021 : £Nil).

18. GENERAL INFORMATION

Cumbria Community Homes is a company limited by guarantee and incorporated in England and Wales. It's registered office is 37 Riverside Gardens, Barrow-in-Furness, Cumbria, LA13 0DD. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

The financial statements are presented in sterling, which is the functional currency of the company.

Page 23

CUMBRIA COMMUNITY HOMES

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 JUNE 2022

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Grants
Charitable activities
Rent contributions
Total incoming resources
EXPENDITURE
Charitable activities
Wages
Social security
Pensions
Rent
Maintenance
Donations
Other
Bank interest
Bank loan interest
Support costs
Management
Hire of plant and machinery
Other operating leases
Insurance
Light and heat
Telephone
Postage and stationery
Advertising
Sundries
Cleaning
Office rent
Travel and subsistence
Motor expenses
Storage
Computer expenses
Accountancy
Professional fees
Carried forward		 30.6.22
£
19,898
15,669
35,567
3,026,198
3,061,765
689,073
45,780
8,029
1,906,107
194,411
-
2,843,400
10,958
1,201
12,159
-
3,363
4,550
1,786
17,475
6,937
2,679
5,138
10,797
19,616
25,863
46,685
2,137
41,988
15,887
3,567
208,468		 30.6.21
£
3,534
58,268
61,802
1,238,799
1,300,601
330,663
17,575
1,950
569,191
133,474
160
1,053,013
-
849
849
367
12,544
3,398
6,465
7,236
6,098
575
1,641
6,260
10,950
38,197
16,658
957
23,325
3,367
10,316
148,354

This page does not form part of the statutory financial statements

Page 24

CUMBRIA COMMUNITY HOMES

DETAILED STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 30 JUNE 2022
30.6.22
£
Management
Brought forward
208,468
Consultancy fees
75,592
284,060
Finance
Bank charges
1,151
Statutory interest
4,346
5,497
Governance costs
Auditors' remuneration
9,000
Total resources expended
3,154,116
Net (expenditure)/income
(92,351)		 30.6.21
£
148,354
87,829
236,183
1,328
1,702
3,030
6,000
1,299,075
1,526

This page does not form part of the statutory financial statements

Page 25