REGISTERED cOmPAy NUMBER: 121168336 (England and Wale$) REGISTERED CHARITY NUMBER.. 1184991 REPORT OF THE TRUSTEES AND AUDITED FINA]YCIAL STATEMENTS FOR THE YEAR ENDED3(IJUNE 2023 FOR CUMBRIA COfvIMUNITY HOMES llmllllll llmlllll 1310mS COMPANIES HWSE
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CUMBRIA COMMUNITY HOMES CONTENTS OF THE FINANCIALsfATEMENTS FOR THE YEAR ENDED 3(1 JUNE 2023 Page Report oftht Trns¢¢es Ryirt of the Independent Avdilor5 Stt¢me•t of FiDntil Activities io BaJnte Sheet Csb Flow Sttement 13 Notes to the C15h Flow Statement 14 Ntstes to the Finfycil Stt¢m¢ts 15 to 23
CUMBRIA COMMUNITY HOMES REPORTOFTHE TRUSTEES FOR THE YEAR ENDED 30 JiJNE 2023 The trustees who ar¢ aiso dIlor$ of the charity for thc purposes of the Companies A 26, pr¢sent their report with the financial statements of the ¢harity for the year ended 30 June 2023. The tru5tee5 have adopted the provisions of Accounting and Reporting by Charities.. Staternent of Recommended Prn¢ti¢e applicable io charities preparing their accounts in ¢cordan¢e wilh ihe Finan¢ial Reporting Standard applicablt in the UK athd Republic of Ir¢land {FRS 102) {effeciive I January 2019). OWECTIVES AND AcfiviTIES Objtttives 8nd aims The charity's objeciive contsined within the MemoTandum aThl articles of association. is to ¢ary out for the benefit of the etsmmunity. the business of pmviding and managing housin8. includin8 Social Housing. and providing assisian¢e io help house people and associated faGilitie& amenities and s¢rvic¢s for persons in need FKcause of youth. age. ill-hea]th, disability, financial hardship or Oth disadvantage. Signifitant #eiivities W¢ provid¢ good quality accommodatitin to vulnerable adults in the commuDity meeting their individual needs. We provide tenancy related ear< supp)rt and supeTvision in a person-¢¢ntr¢d way enabling the enhancernent and dev¢lopm¢nt of lif¢ Jkills. p¢rsonal 8rnwth. independence. cl1¢¢. and control. We help those who are hom¢l¢ss or ai risk of homelessness. individuals who stru88le with rneft or physical health or wtth a learnin8 difficulty. those who are in recovery fmm substsn¢e misuse and people who are fleeiTh8 domestic violence. We offer one to one financial support with personal budgets and provide 4 mentor for helping plan daily activities Surrounding their tenancies such as meal planning, dom¢s¢i¢ duties and we signp)st and support indtviduals with opportunities to )CialiSe within the I( community. Our underpinnin8 Cth05 IS to develop an individual's capaciry to live independently in the e<)mmurtity and to develop or sustain basic lift skills needed to hold down a tenancy or maintain a home. Valu Trust We build relationships on trusi and keep our promises. to mtet the txpectations of tCTHnts and be hortest if w¢ ¢anl. Integrity We pra¢ii¢e providing a quality s¢Thi¢¢ with integrity and sensitivity. NoTh-jud8ementsl We listen to and meet lh¢ needs of everyone in a non-judgerncnta] way. Teamwork We ¢onsthnily look at ways to impTOV¢ and deliver our service. Empathy We put ourselves in other people's shoes. Positive allityde We practice with a problem-solving approach. Hlstory The business WLS ineorporated on 25ih June 2019. and bec8me Tegistered as a charrty on 21st August 2019. CCH has sinc¢ growt) into one of lh¢ kading Housing Support providers across Cumbri4 parts of Lanctshire. the North-East, Lincolnshire and West Yorkshire. Page I
CUMBRIA COMMUNITY HOMES REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 21123 STRATEGIC REPORT Achievement And performance Strat¢gi¢ Growth Currently CCH have over 300 homes in management. The strategic plan for the next 12 months is to ¢onsolidate the cUent service bein8 provided and ¢n5ure that the day to day operation5 run smoothly. We continue to r¢view the structures and controls across the bu5ine5S. CCH ¢urr¢ntly employ 38 people across the busin including housing rnanag¢m¢nt, tenancy officers, maintenan¢e, admin, compliance and finance and where necessary rely on a T*twork of suppliers f ad-h s¢rvi¢es. Public Benefit The Trustees are aware of Charity Commission guidance on public bencfit re)rtifig as Set out in Sectbon 17 of the Charitits Aet 2011. They believe Cwnbria Communiry Homes fijlfils a filndamental public benefit by providing and managing housing together with providing assiswJ¢¢ to pPIc in need. Review of aetivities The service providtd by the company to its ieTtants was very mu¢h busift¢s5 as usual. T•iancy offi¢ers sp¢nd regular timc with each of their tenants to help them work through their supw>rt nttds ft>llowiTh8 an agreed support plan which id¢DtifJes spe¢ifi¢ needs that the tenani requires help with. In addiiion an on-call 24n 15 available forout of hours support. The cost of mainlainitig the prop¢flies has inCred as the com of living. malerials and labour have all increased durÈng this lime but strict policies of obtaining quotes and esiimates have helped redLhce third party supplier costs. The introduction of more stringent internal operational pr(wses and procedures has helped to impmv¢ the smwth daily opernt50rts of running the company. Relationships with councils. in panicle the Housing Ben¢fit ieam& have ensured claim5 gre being processed and paid in a timely manner which has a $ll1Ve effe¢1 on the llow of the business. Page 2
CUMBRIA COMMUNITY HOMES REPORT OF THE TRusfEES FOR THE YEAR ENDED 3• JUNE 2023 STRATEGIC REPORT Financial rtview Financial posilion 202212023 was a challen8in8 year from a financial point of view for the Choriry. Th¢ yatement of financial activities shows a deficit of expenditure over income of £294,008. As a result of various issues arisin8 throughout the year. the Chief Executiv¢ resigned in Decembtr 2023. At that time the tru5tee5 were added as signatories on th¢ Company's bank account and a mandatory dual authorisation was put in place for all p3yrn¢nts. The trustees are now in the course of restruauring th¢ management of the bu5ine55. Debtors were l¢aCted from Novemr 2023 onward5 and payment plan$ put in pla¢e where n¢cessary which have all been adhered to and all fully paid. There ar¢ two bank loans that continue to bc paid bock monthly and on time. and there is an agreed monthly payment plan which pays off a]1 outstsnding debts to HMRC by June 2026. however the trustees anti¢ipat¢ Ihis will be fully settled prior to that date. A tribunal hearing con¢eTning disputed reni for a properry in tAwson Street, Barrow-in-Furness. took place in November 2023 and rwh¢d a favourable outcome for the Company. Rent owed io the company w&s paid in April 2024. The funds re¢eived were used to pay off the reni arrears to our landlords who are now all up (o date and receiving payments of rent as and when they fall due. The exceptional items dctailed in the accounts below have been re¢ognise41 as ¢haritsbl¢ expenditure and are included in the defi¢ii figures. A large proportion of these related expenses were payments made on behalf of Cumbria Community Person Centred Approach Limited ICCPCAI. CCPCA used LO run alongside CCH and offer tenants additional care packages outside of the normal tenancy supp)rt offered by Cumbria Community Homes (CCH). This is no longer the case and any asso¢iaiion b¢ten ihe two companies were tcrrninat in Dc¢ember 2023. There We also loan5 mad¢ to ernployees which were writtrn off as iTre¢overabl¢ wh¢n they left the Company. Due to the Strict financial controls pui in place by th¢ Finance Director Since December 2023. the Company is now in a much stron8er financial position arhd recovering its fvnd d¢fi¢iL The accouniing period ending Jun¢ 2024 will show that the Chvity is running within its means. Our curr¢nt financial objective is to WOTk with our accountsnts aTrJ auditors to upgrade fLn8ncial systems ar]d internal ntrols. Reserve5 po5icy The charity's tx)licy is to build up its reserves for the purp4) of the developmeni and sustsinability of the charity. The larg¢ expansion over ihis period lead to a deficit of funds at the end of 30th June 2023 of £384.472 Compared ¢0 £90.464 the previous year. The trustees have put in place procedure5 for the deficit to be revetsed. As at the date of the signing of the accounts. the defirit ha5 been reduced by around 70%. As a $V[l of the above, the aceounts have been prepared on a going ¢on¢em basis and the trustees are confident that mea5ure5 tsk¢n will CTwrr fiNan¢ial sthbility in future years. Finneil and risk min#gement t)bjectives and 11¢1¢$ The trustees have &sses5ed the major risks to which the Charity is exposed. in particular those r¢laied io th¢ op¢rations and finance of the charity and are saiisfied that systems aT¢ now in plac¢ w mitigate it5 exrA)5ures to these risks. The Board of Trustees review the annual budget paying particular attenti¢)n to the balance berween income and expendifyre and the arnount needed to be retsined itt reserves. Page 3
CUMBIUA COMMUNITY HOMLS REPORT OF THE TRUSTEES FOR THE YEAR ENDED3DJUNE 2023 STRUCTURE. COVERNANCE AND MANAGEMENT Governing dotument The chariry is eontrolled by its governing documenL Arti¢ks of As%Jciation, and constitutes a lirnited company. limited by 8uardnt¢¢. as dcfincd by the Companie5 2006. Recruitrnent and appointment of trusttts The current tsijstees are aware that at Present there ate ¢)nty two trustees which is in 8ccordance with the governing document. They are in the process of looking to appoint new trustees that will help drive the Charity forward and ensure that those who are appointed demonstrat¢ Televant expeTieo¢e from within the sector. for exarnple landloTd5. ex-council metnbeTS and individuals with finance and pyoperty development experieTh¢e. New trusiees will be appointed under lh¢ ternis of the Articlcs of A$)Ciall0n by a resolution of the existing tTYSL¢es. who are also Directots of the Company. All trustees are and will be made aware of their r¢5ponsibilitKs before appointh)enL Orggni$tionJ structure Christine Bee stood down as Chief Ex¢¢uli¥¢ in De¢ember 2023 and the day to day operations of the businegs are now being managed by Amat)da Stevens, for which she receives a f4 and the senior management team. Risk mgTrAgemeni The TnJ5tees continue io asses5 the risk and uncertainties facing the Charity and how these may impact the finan¢ial position of the Charity. Ri5k5 are identified in the Trustees meetings and any risks thai are feli io pr¢vent the Charity achieving its objectives are revitwed with the nior manageMt team. REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 12068336 (England and Wales) Registered Charity nurnb¢r 1184991 Registered otri¢¢ 37 Riverside Gardens Barrtsw In Fumess Cumbria LA13 ODD Tru$tee$ Mr P Sheldon {resi8ned 30.10.24) Mrs E Stones M5 A Stev¢ns Auditors G)Ilards Chartertd Accouniants Ststuiory Auditors 5-9 Eden Sireel Kingston-Up)n - Thames SuTTey KTI IBQ Bankers Barclays Bank pl¢ Leicester LE87 2BB Page 4
CUMBRIA COMMUNITY HOMES REPORT OF THE TRUSTEES FOR THE YEAR ENDED JO JUNE2(123 STATEMENT OF TRUSTEES, RESPONSIBILITIES The trustees (who arc also the directors of Cumbria Comrnunity H¢)rnes for the purtM)ses of company law) are responsible for preparing the Report of the Trustee5 and ihe financial stsiements in a¢¢ordanc¢ with applicable law and United Kingdom Accouniing Swidards (United Kingdom Generdlly Acceptrd Ac¢4)unting P1¢£). Company law requires the tn]stees to prepare financial stsiements for each financial year which give a true and fair view of the state of affairs of the charitabl¢ company and of the incoming resour$ and appliotion of.resour¢¢s. including the income and expenditure, of the charitable company foi that period. In preparing those financial ststements. the trustees are required to select suitable accounting TxTrlicie5 and then apply them consis*ntly' - observe the methIS and principles in the Charity SORP- rnake judgcmcnts and estirnates that are r¢asonable and prudenl state whether applicable accountirbg srandards have been followed, subject to any material departures disclosed at)d ¢xplain¢d in ihe financial statements., prepare the financial stst¢rn¢rbiS on th¢ going concern basis unles5 it 15 inappropriate to prtsume that the charitsble ¢ompany will continue in business. The trusiees are responsible for k¢¢ping proper accounting records which disclose wilh reasonabl¢ accuracy ai any time the financial position of the charitable company and eoabl¢ them to ensure that the financial statements romply with the Companies Aci 2006. They are a15ts res]x)nsible for safeguarding the ass¢ts of th¢ charitable company and hence for thking reasonabl¢ steps for th¢ pr¢v¢ntion and detection of frdud and other inegularilies. In so far the trustees are aware.. - there is no relevant audii infonnation of which th¢ charitable company's auditors are unaware. and the trnstees have taken all steps that they ought to have tsken io mak¢ ih¢ms¢lv¢5 aware of any relevant'audit inftsrn)aiion and io esthblish thai the aUdIr$ are aware of that information. Report of the trustees. incorporaiing * strategic approved by OTd¢r of th¢ IM)ard of trustee4 as the cornpany director on I I" Mar¢h 2025 and signed on the board's behalf by: Mrs E Stones- Trustee Page 5
REPORT OFTHE INDEPEP4DENT AUDITORSTO THE TRUSTEES OF CUMBRIA COMMUNATY HOMES OpiDion Disclaimer of opinion We were engaged to audit the financial ststtrnents of Cumbria Cornrnunity Homes (the 'charithbl¢ ¢ompanyJ for the year ended 30 June 2023 which comprise ihe Statement of Financial Activbties. the Balance Sheet. the Cash Flow Staiement and notes w the financial $tstements, Including a summary of significant accounting policies. The financial reporting framework that has b¢¢n applied in ih¢ir pr¢paration is applicable law and United Kin8dom Accounting Standards {Uttited Kingdom Generally A¢¢epted Ac¢ounling Pra¢ti¢e). We do noi ¢xpr¢ss an opinion on the accompanying financial'51atements of the company. Because of the signifi¢an¢e of th¢ mattel described in the basis for dis¢laim¢r of opirtion $tIOn of our report. we have not been able to obtain sufficient appropriate audit tvidence to provide a basis for an audit opinion on these financial $eMents. Basis ffjr opinio BA$is for distlaimer of opinirjn During th¢ y¢ar for whi¢h ihe audit W&3 T¢quired, a breakdown in financial rnana8emcnt and ToI within the Charity led to a defi¢ien¢y of fittattcial infomiation required to verify most aspects of the accounts presented to us. Whilst the Trustees addr¢s5cd the lack of Gontrol and sysr¢rns in operdtion, action was not taken until after the end of financial year to which this re)rt applies. Our audit WOTk came across deficiencies im all areas of the a¢counting sYern, including the rewrding of wages and salaries. payrnents to suppliets and the management and superyision of costs and expenses. In addition. in tnultiple areas, we WeTC unable to ¢onfinn the rA)rnpleteness or acojracy of entries in the finan¢ia] sMemenis, &$ sufficient audit evidenee was not available to us. As a result of these matters, we were unable to deiennine wheiher any adjustments might have been fout)d ne¢essary in iesp¢¢t of recorded or Urerd¢d ¢osts or income, the elements making up the Ststernent of fioan¢ial a¢iiviii¢s, the bal¢¢ sheet or cash flow statement. Opinion on other rngtteTS prescribed by the Companies Att 21)•6 Because of ihe significance of the matter described in the b&sis for disclaimer of opinion se¢iion of our r¢pori we have been unabl¢ to fom) an opirtion, whether based on the work undertaken in the course of our audit: - The infornation in the trustees, Teport for the fJnan¢iaJ ye8r for which the fmancial statements are prepared is nsiStent with the financial 51atements' and - The Trustees report h&s been properly prepartd in accordance with applKable legal requiremeThLS. Matters on whith we *re required ¢0 report by exception Notwithstanding our dis¢laimeT of an opinion on the fin#n¢i81 swemenw in th¢ light of the knowledge aTbd undeTStsnding of the cornpany and its environrnent obtsincd in the course of the audit rforni¢d subj¢ct to the pervasive limitation described above, we have not identified material rnisststtrncnts in the Trustee5' Repo Arising from the limitaiion of our work refted to abov¢= - We have not obtained all the information and explanations th we considered necessary for the purF4)se of our audit. and - We were unable to detennine whether adequatt 8¢¢ounting wecords have be¢n k¢pt. P8ge 6
REPORTOFTHE INDEPENDENT AUDITORSTO THE TRUSTEES OF CUMBRIA COMMUNATY HOMES Responsibilities of trustees As explairt¢d more fvlly in the Statement of Trnstees. ResponsibilitiC5. the trustee5 (wkn are also the directors of the charitable ¢ompany for the purposes of cofflpany law) are responsible for the preparation of the financial statements and for being saiisfled that they give a true and fair view. and ftsr such intemal wntrol as the trustees detemiine Is ne¢essary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial Sthments, the trusrees are rtsponsible for assessing the ¢haTitable company's 8bility to continue a5 a going concem. disclosing. as applicable. rnatters related going ¢on¢trn and using the going concern basis of accounting unless ihe trusi¢¢s either intend to liquidat¢ th¢ charitsble CPanY or to ceas¢ operations. or have no realistic alternative but to do so_ Our re5pfyn$ibilities for the audit of tbe finAn£il slxtemtnts We have been app)inted as auditors under Section 144 of the Chariiies Act 2011 and report in aCrdan¢e whih the Act and i¢l¢vat)t regulations made or having effect ihereunder. Our responsibility is wnduct an audit of th¢ Clwity. fllwicial staternents ¥¢ordance with International Standards on Auditing (UK) and issue an Auditorfs rew)rt. However, because of the matter described in the basis for disclairner of opinion section of our report we were not able to obtain sUtTi¢i¢ni appropriate audit evidence to provide a b15 for an audit opinion on these financial 5tatemcnts. We are independent of the company in a¢cordan¢t with the ethi1 requirements that are relevani io our audit of ihe financial statements in the UK. including the FRC'S Ethical StaTMlard and we have fulfilled our other ethical responsibilities in accordon¢e with these requirements. P#ge 7
REPORT OF THE IP4DEPENDENT AUDITORS TO THE TRusfEES OF CUMBRIA COMMUNITY HOMFS Detecting IrreglritIeS The extent io which our procdltres are capable of detecting trregularities, includin8 fraud is detailed below". OUT objcciives are to obtain reasonable assuran¢¢ thLLi whether lh¢ firw)¢ia] statements as a whole are free frorn material misstatemeni. wh¢¢her due fraud or erTor. and to issue a Report of the Ind¢p¢nd¢nt Audilols that in¢lvdes our opÈnion. Reasonable assuranc¢ is a high level of a5SUTance. bul 15 not a guanntee that an audii condu¢ied ITh accA)rdance with ISA5 will always ddcct a material misstatcrnent when it exisis. Mis5ra*ments arise from fraud or error and ar¢ Considered material if. individually or in the aggr¢gate. they could reasonably be expected io intluen¢e the economic de£i5ions of user5 taken on the basis of these financial stat¢ments. The extent io which our pro¢aures are capabl¢ of detecting ittegularitits, including fraud is dttailed below.. We assessed ihe susceptibility of the compatty's finan¢ia] st•¢ments material Miternent. including obtaining an undersiandrng of how fraud rHrght oc¢ur, by.. - making efjquiries of managemeni as to where th¢y considertd ther¢ was swiibility to fraud. their knowledge of actual. suspe¢ted and alleged fraud. Considering the internal controls in pla¢e to mitigate risks of fraud and ntsn-complian¢e with laws and regulaiion5' To address the risk of fraud through Tnanagement bias and override of control& we.. pcrforned analytical procedures to identify any unu5uaJ or unexpectcd ttlation5hips- tested journal entries to identify unusual transactions- assessed whether judgements and &ssumpiion5 made tn determinin8 the accounting estinates were ittdicative of potrniial bias.. irtv¢stiga¢ed the talionale behind $igThifi¢ant or unusual tTansa¢tions- In r¢$pon5e to the risk of irregularities and t)on-¢omplian¢¢ wilh laws and r¢Bulations. we designed procedur¢5 which included, but were not ltm1t .. - agreeing financial siaternent disclosures to underlying Supporting thxumethwion- - readirjg thc minutes of rneetings of thosc charge41 wilh governan¢e: - enquiring of management as to actual and Potenti liliwion and Claims. There are inherent lirnitalions in our audit procedure5 described above. The more removed thai laws and regulations ar¢ from flnancial transactions. the les5 likely it 15 that wc would bccorne aware of nort.wmplian¢¢. Audiling standards also limit the audit procedures required to identify non-compliattce with law5 and regul•kons to ¢Dquiry of ihe dir¢ctors and other management and th¢ inspection of regulatory and legal corre5wndence. if any. Material misststements that orise due to fraud can be harder to detect than those that arise from error a5 they may involve deliberdt¢ ¢oncealment or wllusion. A fvrther des¢ription of ow responsibili¢i¢s for the audit of ihe financial statements i5 located on th¢ Finath¢i81 Rep)rtinB Council's website * www.fr¢.org.ukJauditorsresponsibililies. This descriplion forn5 part of our Rwrt of the Independent Auditors. Page 8
REPORT OFTHE INDEPENDENT AUDITORSTO THE TRUSTEESOF CUMBRIA COMMUP41TY HOMES A further description of our responsibilities for the audit of ihe financial 51atemcnts is I0¢d on the Financial Reporting Council's websitr at www.frc.org.uklauditorsr¢sponsibilities. This des¢ription fonns part of our R¢pon of the Ind¢pend¢nt Auditors. Ust of our repfrrt This report ig made solely io the charitsble MpanY'S trusiees, as a Ihxly. in accordance wilh Part 4 of the Charities {Accounts and RepTrrtsl Regulations 2008. Our audil work has FKen undertaken so that we might state to the charitsble company's trustet5 those matters wt are required to stste kn them in an auditors, report and for no otheT purpose. To ihe fullest extent pemitted by law. we do Doi a¢¢epi or assume responsibility anyone othtr than the charitable company and the charitable company's trustees a5 4 body. for our audil worK for this rew*Q or for th¢ opinions we have fomi¢d. Christopher Juli Brigstocke FCA for and on behalf of Collards Chart¢r¢d Accountants Statutory Auditors EIi8Lbl¢ to act as arh audiior Iti tenns of Section 1212 of ihe Companies A¢t 2006 5-9 Eden Street Kingston-Upon- Thame5 Surrey KTI IBQ i ith March 2025 Pag¢ 9
CUMBRIA COMMUiYITY HOMES STATEME OF FINANCIAL AcfiviTIES (INCORPORATIliG AN INCOME AND EXPENDITURE ACCOUND FOR THE YEAR ENDED30 JUNE 2023 30.6.23 Total fvnds 30.6.22 Total fund5 Unrestricted Restricted fi]nd fund JNCOME AND ENIK)WMENTS FROM Donations and Icgacies 15.499 15.499 35,567 Chrit•ble 8Ctivities Housirtg 4.111.304 4 111.304 3.026.198 Tot1 4.126 803 4 126.803 3061.765 EXPENDITURE ON Charit*ble #ctiwities Charirabl¢ a¢iivity Housing 1.244.950 1.897.007 4J93,630 4,393,630 Other 27.181 T¥Jtsl 4420811 4 420.811 3,154 116 NET INCOMEI(EXPENDITURE) (294.008) (294.008) 192.351) RECONCILIATION OF FUNDS Totsl funds brought forward (9),464) (90,464) 1.887 TOTAL FUNDS CARRIED FORWARD 384.472) 384 472) The notes fowm part of these financial statements Page 10
CUMBRIA COMMUNITY HOMES BALANCE SHEET 30JUNE 2023 30.6.23 Total fvnds 30.6.22 Total funds Unrestri¢trd R¢5trTrCt¢d fvnd filnd CURRENT ASSETS Debiors Cash at bank 12 379.968 379.968 542,921 381.863 381,863 546,905 CREDITORS Amounts falling due within one yeAr 13 {743.010) (743.010) {604,039) NET CURRENT ASSET&(LIABILITIES) 361.147 361 147) 57,134) TOTAL ASSETS LESS CURRENT LIABILITIES {36l,147) (361.147) (57.134) CREDITORS Amounts falling due after more than one year 14 (23,325) (23 J25) (33.330) NET ASSETSI(LIABILITIES) 384 472) 384 472 90.464 FUNDS Unr¢stri¢ied funds 17 384 472) TOTAL FUNDS 384 472) The charitable eompany is entitled to exempiion fiDm audit wider S¢aion 477 of th¢ Companies Act 2006 for the year ended 30 June 2023. The members have noi deposited noiice, pursuant Section 476 of th¢ Companie5 Act 2006 requiring an audit of these financial statements. The trustees acknowledge the r¢sponsibilities for (a) ensuring that the charitablc company keeps a¢cowiting records that Comply with Se¢tions 386 and 387 of the Companies Act 2006 and pr¢pariThg finon¢io] statements which give a trne and fair view of the state of affairs of the charitable company as at the end of ea¢h financial year and of its swplus or d¢fi¢it for ¢ach financial year in aceordance with thc requirements of Section5 394 and 395 and which otherwise comply with the requirements of the Companie5 Act 2006 r¢l*ing to financial stst¢ments. so far &5 appli¢able #) th¢ ¢haritabl¢ company. Ibl The notes forni part of these financial staternents Pagell ntinu¢d...
CUMBRIA COMMUNITY HOMES BALANCE SHEET- ¢on¢inu¢d 3• JUNE 2023 The financial 5tatemeTrt5 have b¢en ¥udii¢d und¢r th¢ r¢quir¢m¢nts of Seaion 145 of the Charitie5 Act 2011. The financial statements were approved by the Board of Trustees and authorised for issue on I l March 2025 wer¢ sigrbed on its behalf by= Mr5 E Stones- Trnstee Th¢ rt¢S forn part of these financial statements Page 12
CUMBRIA COMMUNITY HOMES CASH Finw STATEMENT FOR THE YEAR ENDED311 JUNE 2023 30.623 30.6.22 Notes Csh floiws from opernting ietlvhies Cash generdted from operations Interest paid (71,342) 27.181 29.668 Net cash (used inyprovided by operating activities 17.509 C4$h flows from financing ctivities New loan$ in year Loan repayments in year 113.284 16.850 18,616 Net cash provided byl(used irl) financing a¢tiviijes 18.6161 Ch¥ngt in t$h ¢sh llivAlents in the reporting period Csh and cash equivalents at the begimtsi•g of tbe reporting period (2.089) (1.107) Cash and c95h equivltnts 8t the eAd of the reporting period Th¢ notes fonn part of these finan¢ial 5tstements Pag¢ 13
CUMBIUA COMMUNITY HOMES NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED30JUNE 2D23 RECONCILIATION OF NET EXPENDITiJRE TO NET CASH FLOW FROM OPERATING ACTIVITIES 30.6.23 30_622 Net txpeTrditure for the reporting period (as per the Sta¢emeAt Of FinanciAI ActLVlties) Adjustments for: Jnteresi paid De¢reasellin¢rease) ith debtors In¢reas¢ in crditois (294.(K18) 192,351) 27.181 162.953 12,159 {387,300) 497 160 Net cash iMVprovided by oper*tions ANALYSIS OF CHANGES IN NET DEBT At 1.7.22 Cash flow At 30.6.23 Ntt $h Cash at bank 3.984 2,089 Debt Debts falling due within l year Debts falling due after l year (16.854) 33.330 (106,4411 10.005 {123,293) 23.325 146618) Total 144723 The n0tr5 forn part of these financial staternenL4 Page 14
CUMBIUA COMMUNrrY HOMES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 Ju£ 2023 ACCOUNTTNG POLlCIts Bsis of prepriDg the fJnaDei#l sttem¢Dts The financial sthiements of the charitable wmpany. which is 8 public benefit entity under FRS 102. have beert prepard in aOrdance with the Charities SORP (FRS 102) 'Ac¢ounting and Reporting by Chariiies: ststemr of Recornrnended Praciice applicable tt) charities preparing th¢ir accounts in accordance with the Fin8ncial Reporting Stsndard applieable irt the UK and R¢public of Ireland (FRS 102) (¢ffe¢tiv¢ l January 20191,. Financial Reporting Standard 102 The Frnancial Rewrtirtg Stsndard applicable in the UK and R¢publi¢ of Ireland, and the Companies AGt 2006. The financial swements have been prepared uttder the historical c4)51 wnveniiort. Going concern The Charity had reFnrted a deficit 0 £294.008 in th¢ 2022r23 yt4r and £92J51 in the 2021r22 year. The deficii arose due charitsble expenditi]re being commilled withoui the n¢ce&sary fundittg and made in excess of th¢ funds available 10 SUPPOrt such charitsble expendity dyring the year. This És more fjjlly set out in the Trnstres Report. As a resylt of the issues arising. the CEO has rcsa8ned from the Charity. In the meantime the Tnte¢S hav¢ been overseeing the operation5 of the Charity 8rtd have ensured that fijnds have beeTE onty snI in cxct5s of expenditutt incutted and that the defi¢i¢ fmm the PTeviou5 two years has been substantially reduced. Under new management thE Trustees have also ensured thai properfinartcial controls have been put irt place and that the OTganisation has opera ensuring that a surplus of fiJndiTrg has bttn generated. They are confident that such measures will allow the organisaiion 10 wrttinue to its owations &surplu& The aUnts hav¢ therefore been ppared on a going concern basi In¢om¢ All income is recogni5ed in the Statement of Financial Aaivities once th¢ charity has ¢ntidemeni to the fvrtds. it 1$ probable that the income will be received and the amouni can be meastsred reliably. Grants received are crediied the in(x)me and expthditure ac(•unt in the fin3n¢ial period in which they are rec¢ived. Exptnditur¢ Liabilities are Teco8nis¢d as expendi¢ure as SODn a5 there 15 a legal or Constru1 obligation ¢otnmittin8 th¢ clwity to th expenditur< 1¢ is Probable that a transfer of economic ben¢fits will be requited in settlernent and the amount of the obligation C b¢ measured reliably. Expenditure is accounted for on an accrua]s b&%15 and h&5 been ¢18ssified under headin85 that a8gate all cost related to the category. whe costs cannot be directly attributed to particular headin8$ th¢y have been a]Icted to activiiies on a basis ¢s)nsist¢nt with the use of resources. Taxation Th¢ ¢harity is exempi from corp)ration tax on its ¢lMritsble xtivities. Fund aeeountltt8 Unrestricted funds can b¢ u5¢d in cOrdanCe with the charitable objectives * th¢ discretion of the tru5tee$. Restricied fvnds can Only be ud for partiujlar stricted puryN)s¢s within the objects of the ¢harity. Restrictions arise when specified by the donor or when funds are raised for parti¢ular restri¢*d puo)oses. Further explanation of the natyjre and purpjse of fund is included in the not¢5 to the fmancial staiemelrts. Page 15 continued...
CUMBRIA COMMUNITY HOMES OTES TO THE FINANCIAL STATEMENTS- ntInUed FOR THE YEAR ENDED 3(1 JUNE 2023 ACCOUNTING POLICIES- ¢ontitio¢d Hire pur¢bas¢ xnd leasing ct)mmitnbeDts Renthls paid under operntirtg leases are dwged the Srament of Finan¢i81 Activiti on a str8r8itt line basis over the period of the lease. PensioB costs aDd other pfyst-r¢tirwu¢llt benefits The charirable cornpany operales a deftned contributitin pthsion scheme. ContributioDS payabl¢ to the charitable tompany's pension scheme are charged to the Ststemeot of Fin¢181 Activities in the period io which they Telate. DONATIONS AND LEGACIES 30.6.23 30.622 tbnatlons 19,898 10.500 35.567 Grants Te1ved. in¢luded in the above. arE follows: 30.623 30.6.22 Other grants INCOME FROM CHARITABLE ACTIVITIES 30.623 30.6.22 Activity Housing Housing R¢nt Mntributions Suppon char8e5 4.051.103 3,026.198 04 3.026 198 CHARITABLE ACTIVITIES COSTS Support ¢osts {see note 5) Direct Costs Tol8ls Hoysing 3384811 1 008 819 4 393 630 Pa8e 16 ¢ontinued...
CiJMBRIA COMMUNITY HOMES NOTES TO THE FIJYANCIAL STATEMENTS- coth11thQd FOR THE VEAR E]YDED 30 JUNE 2023 SUPPORT COSTS Governan¢¢ st5 Manag¢m¢nt Financ¢ Totals Housing 442.030 554 789 12.000 1.008.819 NET INCOMEI(EXPENDITURE} Net incomeJ(expenditur¢) is swed after Chargin{creditI8)'. 30.6.23 30.6.22 Other 0ratIng leases 13.124 AUDITORS, REMUNERATION 30.6.23 F¢¢$ payable to the ¢harity'5 auditors and their 0clateS for the audit of the charity's financial ststements 12.0(M) TRVSTEES. REMUNERATION AND BENEFITS Trustees were paid as follows.. 30.623 30.6.22 Arnanda Stevens Emma Stones 29.960 32.500 4,430 In addition Emma Stones receive41 £6.112 exp5¢$ during ihe year ended 30 June 2023 (30 June 2022- nil). Furth¢r d¢thils of p8ym¢nis to related parties of the Trustees is sIK>wn in noie 17 to the &counis. Pe 17 continued...
CUMBRIA COMMUNITY HOMES NOTES TO THE FINANCIAL STATEMENTS- eontiThued FOR THE YEAR ENDED 30 JUNE2023 STAFF COSTS 30.623 30.6.22 Wages and salaries Social security costs Other pension Costs 631,808 49.251 689.073 45.780 8,029 691074 742 882 Th¢ averag¢ monthly number of employees during the year as follows: 30.623 30.6.22 28 Sthff No employec5 received emoluments in exce$5 of £60.(th. io. EXCEPTIONAL ITEMS During the year the Charity has recognised exception items of £550,126 (2022.. £Nil). This relaies ihe followin8 items= £124.072 Un-categorised expenses paid to employe¢s in the year £331.781 Fundtng pmvided to Cumbria Cornmynity P¢wson Cvntred Approxh Limited treatd as expenditure in the accounts £31,421 loan provision to a fonner employce tr¢ated as expertdity iTh the accounts £62.852 loan provision to the forrner CEO treated as exp¢nditurt in the accounts ii. COMPARATIVES FOR THE STATEMENT OF FINANCIAL AcfiviTIES Unr¢skncte41 fund Restricted nd Total fund5 INCOME AND ENDOWMENTS FROM [Ratt0$ and legacies 35.567 3S.567 Ch#rit#ble divhies Housing 3026198 3 026.198 Tot1 3 061765 3 061.765 EXPENDITURE ON Chritble activitie5 Charitable activity Housing 1244,950 .897.007 1.244.950 1.897.007 Other Tot*1 3154116 3.154 116 NET INCOMEI(EXPENDITURE) (92.351) (92.35 1) Pa8e 18 continued.-.
CUMBRIA COMMUNITY HOMES NOTES TO THE FIiYANCIAL STATEMENTS- etsntinued FOR THE YEAR ENDED 30 JVJVE 2(123 ii. COMPARATIVES FOR THE sfATEMENT OF FINANCIAL ACTIVITIES- continued Unrestricted Restricted fund fund Total funds RECONCILIATION OF FUNI)S TO1 funds brought fon¥ard 1.887 1.887 TOTAL FUNDS CARRIED FORWARD 90.464) 12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 30.6.23 30.6.22 Trade debtors Other debtors 351,993 27.975 450,080 379.968 542,921 At 30th June 2023 the charity h1 a trade debtor of £94.917 re¢ognised for a prop¢ty w Lawson Street where housing and support is offered. This w&s subject to a thbunal hearing in November 2023 in which the Chwity was su¢cessful. These fvnds are expected to be received in April 2024 per the coun decision. This debtor is comprised of £846,987 of unpaid rent dut to the Charity less £720.430.79 of rent due to landlord& 13. CREDITORS: AMOUNTS FALLING DUE WITHIIY ONE YEAR 30.623 30.6.22 Bank loans and overdrafts (see no* 15) Other loans (see note 15) Trade creditors So¢Èal seeLtrtty artd oth¢r taxes Other creditors AccTued expen5e5 123,294 10.004 6.850 418,512 132,676 10.339 344,854 142,801 52,761 743 010 604 039 Page 19 continued...
CUMBRIA COMMUNITY HOMES NOTES TO THE FINANCIAL sfATEMENTS- eontin•ed FOR THE YEAR ENDED30JUNE 2023 14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 30.6.23 30.6.22 Bank loans (see note 15) 23.325 15. LOANS An analysis of the maturity of loans is given below-. 30.623 30.6.22 Amouthts fallittg due within one year on demand: Bank loans Other loans 123.294 10,004 Amounts falling belween one and two years.. Bank loans- 1-2 years 10.010 10.oio Amounts falling due beh¥een two and fjve yeaTS= Bat)k loans- 2-5 years 23.320 16. LEASING AGREEMENTS Minimum lease paym¢nts under non4an¢¢llable operntin8 le&ses fall due as follows: 30.6.23 30.6.22 Wiihin one y¢ar Between on¢ and five years 2.225.710 3.082 891 2.299.592 3 169309 5 468 901 17. MOVEMENT IN FUNDS N¢t rnovement in funds Ai 30.6.23 At 1.7.22 UTrTestri¢ted funds General fund (.464) (294.008} (384,472) TOTAL FUNDS 294 0081 384 472) Pa8e 20 conlinued...
CUMBRIA COMMUNITY HOMES NOTESTO THE FINANCIAL STATEMENTS- CODtin•ed FOR THE YEAR ENDED 30JUNE 2923 MOVEMENT IN FUNDS- ntInued Net movement in fvnd& Incl irt the above are as follows: Inwrning Resources expended Movement in funds Unre$trltted funds General fund 4.126,803 (4,420,811) {294,008) TOTAL FUNDS 4 126 803 4.420.811 294 008) Cornparatives for Thovemet funds Net mov¢m¢ni in funds At 30.6.22 At 1.7.21 Unrestricted funds G¢neral fund 1.887 (92,351) (90,464) TOTAL FUNDS 92.351 90.464) Comparative net movement in funds. included in the ai*•ve are as fol]ows: Jn¢oming resources . Resources expertded Movement in funds Unre5trieted funds Generdl fund 3.061.765 (3.154,116) {92.351) TOTAL FUNDS 3 061765 3 154 116 92.351) A Gurrent ycar 12 months and prior year 12 moE)ths comb1nl p)sition is as follows: Net rnovement in funds At 30.6.23 At 1.7.21 Unrestricted funds G¢neral fund 1.887 {386.359) (384,472) TOTAL FUNDS 1,887 386,339) 384 472) Page21 continued...
CUMBRIA COMMUNITY HOMES NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 30 JUNE 2033 17. MOVEMENT IIY FUNDS- continued A ¢urrent year 12 months and prior year 12 months combined net movement in fvnds. included in the ab)ve a as folbows: In¢oming resources Resources expended Movement in funds Unre5tritted funds Gentral fftd 7.188,568 (7,574.7) {386.359) TOTAL FUNDS 7.188.568 7.574 9271 386 359 J& RELATED PARTY DISCLOSURES During th¢ p¢riod. the charitabl¢ cornpany enr¢d into the followiTh8 related party tiansa¢tion& See s¢parately no 8 in relion io payments rnade to Trustees. As at the balan¢¢ sheei date the charitable conJp•)y owed £16.(KK) (2022.. £3.675) to Emma Stones. a Trustee in r¢spe¢i of fees Ow. This amount bs in¢luded in the Trade Credttors of th¢ ¢omp3ny. Mrs.Stones has a debit balance on her loan account w the company of £27.975 so owed to the Charity at balan¢e sheet date a total of £1 1.975. That loan is interest fret and all due within one year. During ihe year the Charity received services in the amount of £35.825 (2023.. £40.850) for Mt for prop¢rtie5 owned by Se$ ISH Holdings Limited. Durin8 the year, a d¢bt owed by Mrs Christine Bee. an employee of th¢ Charity. totalling £62.852 was provided for as exceptional expenditure in the accounts. &$ a resuli of herdepanure from the Charity. During the year the Charity had traDtiOnS with Cumbria Community Person Centred Approaeh Limited (CCPCA), a company rontrollcd by Mr5 Christine B¢c, the fomi¢r CEO of the charity- During this period, the Charity received funds of £98,369 (2022.. £45,452) from n¢11S ott CCPCA'S behalf. and £47,002 (2022= £2.930) in retum of funds from CCPCA. The company fvnded wages. taxes and other co4$ of CCPCA totalling £411,266 (2022: £108,407) from CCPCA leading to a nd debtor du¢ w the charity of £331,782 (2022.. £65.885). The balanre of money transferred to CCPCA has now been written off to exceptio1 items (see note 10). due to the (1 that CCPCA appears to be insolvent and not in a w51tion tt• reium any of the funds. Included it) maintenance costs are payrnents totalling £22.350 made kn the maint¢nance manog¢T is a relaiive of Amanda Stevens. These fees were for maintenance services provided to the Charity's rented properties during the y¢ar at)d are therefore included in th¢ charitable expenses of the company. Page 22 continued...
CUMBRIA COMMUNITY HOMES NOTES TO THE FINANCIAL STATEMENTS- to15ed FOR THE YEAR ENDED 30 JUNE 2023 19. GENERAL INFORMATION Cumbria Community Homes is a company limited by guarantee and incorp)rnted in England and Wales. li's Tegisiered office 1$ 37 lknverside Gardens. BaTfow• jii-Fumess. Cumbri4 LA13 ODD. In the event of the charity being wound UPJ th¢ liability in respect of the 8iiardntee is limited to £1 per member of th¢ ¢hariry- The finan¢ial slatements are presented in 5terlin& which is the funlOnal currency of the company. Page 23