2023-03-31-accounts

Hopestead

A Charitable Incorporated Organisation (‘CIO’)

Annual Report and Financial Statements for the Year Ended 31 March 2023

31 King Street | Norwich | Norfolk | NR1 1PD

Registered Charity Number: 1190324

www.hopestead.org

Hopestead

Registered Charity Number: 1190324

Contents

Trustees and Advisors .................................................................................................................................................. 1	Trustees and Advisors .................................................................................................................................................. 1
Trustees Annual Report for the year ended 31 March 2023 ........................................................................................ 2
Independent auditor’s report to the Trustees of Hopestead ......................................................................................... 7
Statement of Financial Activities for the year ended 31 March 2023 ......................................................................... 10
Balance	sheet as at 31 March 2023 ........................................................................................................................... 11
Notes to	the financial statements for the year ended 31 March 2023 ........................................................................ 12
1.	General information .................................................................................................................................... 12
2.	Statement of compliance ............................................................................................................................ 12
3.	Summary of significant accounting policies ................................................................................................ 12
4.	Critical accounting judgements and estimation uncertainty........................................................................ 15
5.	Grants and donations ................................................................................................................................. 16
6.	Income from fundraising ............................................................................................................................. 16
7.	Expenditure on raising funds ...................................................................................................................... 16
8.	Expenditure on charitable activities ............................................................................................................ 17
9.	Income tax .................................................................................................................................................. 18
10.	Other – support costs ................................................................................................................................. 18
11.	Employees and trustees ............................................................................................................................. 18
12.	Creditors: amounts falling due within one year ........................................................................................... 19
13.	Unrestricted funds ....................................................................................................................................... 19
14.	Commitments .............................................................................................................................................. 19
15.	Related party disclosures ........................................................................................................................... 19
16.	Ultimate controlling party ............................................................................................................................ 20

31 King Street | Norwich | Norfolk | NR1 1PD

Registered Charity Number: 1190324

www.hopestead.org

Hopestead

Registered Charity Number: 1190324

Trustees and Advisors

Trustees Barker K (appointed 1 February 2023) Burton P (Chair) (resigned 1 April 2023) Golding D Jamieson D Tredget C (Chair) (appointed 1 April 2023) Yuill A (resigned 1 February 2023) Registered Office 31 King Street, Norwich, Norfolk NR1 1PD Charity Number 1190324 Auditors PKF Littlejohn LLP, 15 Westferry Circus, London E14 4HD Bankers National Westminster Bank, 21 Gentleman’s Walk, Norwich, Norfolk NR2 1NA

1

Hopestead

Registered Charity Number: 1190324

Trustees Annual Report for the year ended 31 March 2023

The Trustees present their Annual Report for the audited financial statements of Hopestead (‘the Charity’) for the year ended 31 March 2023.

This report has been prepared in accordance with the Charity’s governing documents, applicable law and the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (‘FRS 102’) (effective 1 January 2019).

The ultimate parent undertaking and sole member of Hopestead is Flagship Housing Group Limited, whose financial statements are publicly available.

Objectives and activities

Hopestead is a charity dedicated to ending homelessness in the East of England. Ending homelessness is not just about providing a roof over someone's head, but about addressing underlying socio-economic drivers of homelessness, which make it immensely challenging for individuals to break a cycle of homelessness.

We know that there is often more than one reason why someone becomes homeless. It could be due to financial hardship, mental health problems, addiction, or domestic violence. Whatever the reason, homelessness can be a devastating experience that can have a lasting impact on people's lives.

That is why Hopestead offers a holistic approach to supporting people who are homeless working in conjunction with partners. We provide not only accommodation, but also the skills and support they need to rebuild their lives. We offer financial resilience and tenancy management training as well as provide essential household items to make a house feel like a home. We also provide tailored support to individuals to address specific social-economic causes leading to a repeated position of homelessness.

We believe that everyone deserves a place to call home. We can end homelessness in the East of England and give people the chance to rebuild their lives.

The underlying drivers of homelessness are very powerful, and a multi-faceted multi-agency support package has been shown to have the best outcomes for those seeking to break the cycle of homelessness.

Public benefit

The Board of Trustees have referred to the guidance contained in the Charity Commission’s published guidance on the Public Benefit requirement under the Charities Act 2011 when reviewing Hopestead’s aims and objectives and when planning future activities.

The objects of Hopestead are to relieve people who are in need by reason of homelessness by the prevention, reduction and alleviation of homelessness and the causes of homelessness and by the creation of sustainable communities primarily in but not limited to the East of England by engaging in the following:

• making of grants;

• the provision of services to individuals and organisations in need;

• engaging in partnerships with organisations working to prevent, reduce, relieve or alleviate homelessness and its causes and to create sustainable communities; and

• by any other means as the Trustees may from time to time decide which are aligned to the objective of addressing the causes of or alleviating homelessness.

Structure, governance, and management

Hopestead is a Charitable Incorporated Organisation (‘CIO’) with registered no. 1190324 and is governed by a Constitution dated 8 July 2020 and was incorporated on that date.

The registered address and principal office at which Hopestead can be contacted and the trustees who have served during the year are set out on page 1 of these financial statements.

The constitution provides for up to 12 trustees with a minimum of one trustee at all times. Each trustee is appointed for a term of three years and a trustee may be re-elected upon this expiry of their term of office. The members may at any time decide to appoint or remove a trustee. New trustees are identified by having particular skills relevant to the Charity’s activities or for effective administration and governance of the CIO.

Existing trustees of the Charity are already familiar with its governing structure, financial affairs and activities. At meetings, trustees are briefed by the Chair on any current or long-standing issues with which they may not be familiar.

2

Hopestead

Registered Charity Number: 1190324

Trustees Annual Report for the year ended 31 March 2023 (continued)

Structure, governance, and management (continued)

On or before appointment all new trustees are sent a copy of Hopestead’s constitution, a copy of the latest trustees Annual Report, copies of the minutes of recent trustee meetings and a copy of the Charity Commission’s guidance “The essential trustee: what you need to know”. They are also advised to regularly consult the Charity Commission website.

The administration of Hopestead is in the hands of the trustees, who meet a minimum of four times a year. The day-to-day operation of Hopestead is overseen by Marie-Claire Delbrouque (Chief Executive Officer).

Employees and volunteers

During the year ended 31 March 2023 Hopestead had an average of three employees to deliver the Charity’s day-to-day operations. The pay of employees is reviewed annually in March, and salary levels are determined by the trustees taking into account the skill sets required, the level of responsibility involved, and hours needed.

Hopestead places considerable value on the involvement of its employees and volunteers and has continued to keep them informed on matters affecting them and on the various factors affecting the performance of the Charity. This is achieved through formal and informal meetings and employees and volunteers are consulted regularly on a wide range of matters affecting their current and future interest. Hopestead is committed to equal opportunities. Its people are diverse and are chosen for their experience, potential and personal attributes regardless of gender, sexual orientation, marital status, age, race, nationality, ethnic origin, religion or disability. Hopestead is committed to giving full and fair consideration to applications for employment that disabled individuals make to the Charity and is committed to equal training opportunities, career development, and promotion of such individuals. With regard to individuals who become disabled, Hopestead will take all reasonable steps, including retraining, to ensure that they can remain in employment wherever practicable.

Hopestead remains committed to equality of opportunity in all its employment policies, practices, and procedures. All employees should be given equal

opportunity and are appraised solely on performance against objectives, personal attributes and potential.

Achievements and performance

Hopestead believes that everyone deserves a place to call home, in a sustainable, connected community where the cycle of homelessness can be broken and Hopestead is committed to tackling the cause and the impact, as well as homelessness itself.

Hopestead is focussed on three areas to deliver its charitable objectives – prevent and resolve homelessness; build empowering partnerships; and create sustainable communities.

Hopestead’s partnership with Eastern Savings and Loans Credit Union empowers individuals to build greater financial resilience for the future through responsible saving under the Hope Assists initiative. Hope Assists has incentivised 11 service users to save £2,518 since inception with 6 service users qualifying for their 12-month incentive payment. Whilst Hopestead continues to promote this initiative, new sign-ups have remained low due to the rising cost-ofliving impacting the disposable income of households.

Hopestead has established successful partnerships with white goods and furniture suppliers to provide individuals starting a new tenancy after a period of homelessness with the essential items they need to set up their home. This helps to manage their debt risk and remove them from the poverty premium, both of which can lead to re-homelessness.

However, cost inflation over the past 12 months has impacted the cost of these goods and has invariably impacted the number of individuals and families that Hopestead can support. Hopestead is working with its partners to manage this cost inflation and continue to support as many individuals and families as possible.

Hope Essentials has supported tenants struggling to access or afford essential white goods items. During the year Hopestead gifted cookers, washing machines, supporting 163 households with 262 white goods. This project was closed in October 2022 and its scope was transferred to Hope at Home.

Hopestead's Hope at Home initiative, launched in 2021, provides essential household items to help individuals and families thrive in their home and sustain their tenancy. Flooring, white goods, and furniture packages can be expensive when starting a new tenancy and can be a barrier to progress for people who are trying to rebuild their lives.

3

Registered Charity Number: 1190324

Hopestead

Trustees Annual Report for the year ended 31 March 2023 (continued)

Achievements and performance (continued)

Hope at Home has been very successful. Since November 2021 Hope at Home has supported 245 households with 242 of those continuing to maintain their tenancy at 31 March 2023, a tenancy retention rate of 98.8%. 43% of the individuals and families supported were in temporary accommodation prior to their current tenancy and 20% were staying with friends and family. In 2022/23 67% of individuals supported were female, challenging the stereotype that homelessness people tend to be older men.

During the year, Hopestead supported 219 households with £634,681 of essential household items. This has had a positive impact on the lives of the individuals and families supported, helping them to live a more fulfilling life and stay in their home.

Hopestead awarded over £235,000 of funding to 19 local charities, organisations and community groups during the year ended 31 March 2023 through its Hope Funds initiative. Hopestead awarded the following grants during the year:

grants during the year:
Emmaus Suffolk Limited	£185,000
Citizens Advice East Suffolk	£10,000
YMCA Norfolk	£9,997
Empanda Care & Support CIC Access Community Trust Lighthouse Women’s Aid	£8,500 £6,950 £6,000
Homeful – Chartered Institute of
Housing	£5,000
Leeway Domestic Violence and
Abuse Services	£4,500
Changing Pathways	£4,500
Cambridge Women’s Aid	£3,000
St Martins Housing Trust	£1,500

Hopestead has facilitated events during the year to create opportunities for its partners to come together and build like-minded connections because we know that a collaborative approach to resolving homelessness is the best way forward. We call this Hope in Action.

During the year Hope in Action has collaborated closely with five organizations that support individuals and families experiencing homelessness as a result of fleeing domestic abuse, having refugee status, and transitioning from supported accommodation. Working together we can solve homelessness.

Future plans

Prevent and resolve homelessness – Hopestead intends to continue its Hope at Home initiative for the year ahead. Hopestead has seen the positive impact that the provision of essential housing items and early tenancy support has had on tenancy retention rates, having a lasting impact on breaking the cycle of homelessness. Hopestead is seeking to further streamline the application process to maximise the number of service users it can support. Hopestead is also seeking to further localise the service provision to meet the needs of specific communities utilising the wider community knowledge held by the wider Flagship Group.

Build Empowering Partnerships – Hopestead believes that it can use its capability and competence to partner with regional and national organisations that share Hopestead’s objectives to add value to their work. Homelessness charities are facing significant challenges with 49% of services at risk of closing their doors. Hopestead intends to continue its Hope Funds initiative to support more local organisations during the next financial year.

Create Sustainable Communities – Hopestead is continuing to work with our local communities to imagine, think through and then do things that build resourceful, connected communities, providing them with the team building and leadership skills to drive positive improvements.

Financial review

During the period Hopestead received income of £1,016,664 (year ended 31 March 2022: £656,918), of which £1,000,000 (year ended 31 March 2022: £625,000) was income received from Flagship Housing Group Limited, the sole Member of Hopestead.

Hopestead spent £1,138,822 (year ended 31 March 2022: £530,455) on charitable and fundraising activities during the year and carried forward reserves of £270,887 (year ended 31 March 2022: £393,065) at 31 March 2023.

Hopestead has a detailed budget for 2023/24 which forecasts £1.5m of spend to prevent and resolve homelessness, build empowering partnerships, and create sustainable communities.

Hopestead has seen a significant increase in demand for Hope at Home amidst the cost-of-living crisis. The Trustees intend to utilise designated funding in the next financial year to further support delivering more Hope at Home packages.

4

Registered Charity Number: 1190324

Hopestead

Trustees Annual Report for the year ended 31 March 2023 (continued)

Fundraising

Hopestead organises fundraising activities to collect financial resources and goods for local distribution. All resources collected from fundraising activities are designated to be used for specific support for individuals at risk of or experiencing homelessness, either directly through Hopestead or from partner activities rather than being used to fund Hopestead projects directly.

Our fundraising approach is underpinned by:

• all fundraising is co-ordinated by, and the majority carried out by, our in-house team. Our team support and provide direction to our volunteer fundraisers (often employees of Flagship Group) to ensure that Hopestead complies with the Code of Fundraising Practice at all times;

• no external professional fundraisers work on behalf of Hopestead;

• Hopestead complies with the Fundraising Regulator and the Code of Fundraising Practice. There have been no compliance issues in the year; and

• No complaints were received in the year relating to fundraising.

Key risks and uncertainties

Safeguarding of employees and service users has become a key operational risk for Hopestead. The nature of services provided by Hopestead exposes both employees and service users to an elevated risk of physical, emotional and psychological harm. This could have a detrimental impact on staff availability and therefore Hopestead’s capacity to continue delivering services, and Hopestead’s reputation. Hopestead is managing this risk through additional staff training, comprehensive safeguarding policies, lone worker safety devices, and risk assessments undertaken prior to property visits.

Hopestead is currently focussed on developing strategic partnerships to further its charitable objectives. Reputational damage arising from a serious event or by association with a partner is a risk for Hopestead. Hopestead performs thorough due diligence on new partners and maintains robust channels of communication to manage risk exposure.

A risk exists whereby Hopestead could make operational commitments which cannot be fulfilled due to financial resource constraints resulting in commitments being abandoned. Hopestead has a five-year funding commitment from Flagship Housing Group Limited (which commenced in 2020/21) and prepares a robust roadmap of activities covering an 18-month period supported by a detailed budget for the year ahead. This ensures Hopestead manages its reserves sufficiently to deliver its charitable objectives.

There is a risk that Hopestead could engage in activities that do not meet its charitable objectives or activities that are contentious and high profile. All projects are planned using a project plan template which requires assessment against Hopestead’s three primary objectives. Senior management and trustees have fostered a strong culture of understanding how day-to-day working aligns with Hopestead’s objectives to ensure that Hopestead’s charitable objectives form the centre of all Hopestead’s activities.

Reserves policy

The establishment and maintenance of reserves is primarily controlled through the annual budget process. As part of the annual budget approval process, the Trustees review the risk of the Charity’s proposed activities for the year ahead and confirm that the Charity not only has sufficient reserves to meet its approved reserves policy but also has sufficient reserves to meet the perceived risk to the Charity from the activities it is undertaking.

Hopestead seeks to maintain ‘free’ reserves sufficient to cover three months of overhead operational expenditure at any given time.

The trustees consider that the unrestricted funds are sufficient to finance on-going charitable expenditure for the foreseeable future. The reserves policy is reviewed by the trustees on an annual basis and updated to reflect the risk profile of the Charity’s activities as required.

Investment policy

Cash that is surplus to immediate requirements is held in interest bearing accounts or on time deposits.

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Registered Charity Number: 1190324

Hopestead

Trustees Annual Report for the year ended 31 March 2023 (continued)

Statement of Trustees’ responsibilities

The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations.

The Charities Act 2011 requires the trustees to prepare financial statements for each financial year in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 “The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland”.

Under charity law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the Charity for that period.

In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and apply them consistently;

• observe the methods and principles in the ‘Charities SORP (FRS102)’

• make judgments and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue to operate.

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity’s transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that its

financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the constitution. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps to prevent and detect fraud and other irregularities.

Disclosure of information to the auditor

In the case of each trustee in office at the date the Trustees’ Report is approved:

• so far as the trustee is aware, there is no relevant audit information of which the Charity’s auditors are unaware; and

• they have taken all the steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit.

Independent auditors

Mazars LLP resigned as auditor of the company on 2 November 2022 citing a lack of ‘resource capacity’ as the reason for their resignation.

PKF Littlejohn LLP were appointed as auditor on 26 January 2023, following a competitive tender process.

PFK Littlejohn LLP, have indicated their willingness to continue in office and a resolution concerning their reappointment will be proposed at Flagship Housing Group Limited’s Annual General Meeting.

By order of the Board of Trustees

Cecilia Tredget (Aug 21, 2023 12:40 GMT+1)

C Tredget

Chair of the board of trustees 11 July 2023

Hopestead 31 King Street | Norwich | Norfolk | NR1 1PD

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Registered Charity Number: 1190324

Hopestead

Independent auditor’s report to the Trustees of Hopestead

Opinion

We have audited the financial statements of Hopestead (the ‘charity’) for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the charity’s affairs as at 31 March 2023, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 2011.

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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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 auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events

or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the trustees’ annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of 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.

Matters on which we are required to report by

exception

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

• the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or

• sufficient accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records; or

• we have not received all the information and explanations we require for our audit.

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Hopestead

Registered Charity Number: 1190324

Independent auditor’s report to the Trustees of Hopestead (continued)

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of financial statements which 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 charity’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 charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 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 an auditor’s report 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.

Irregularities, including fraud, are instances of noncompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

• We obtained an understanding of the charity and the sector in which they operate to identify laws and regulations that could reasonably be expected to have a direct effect on the financial statements. We obtained our understanding in this regard through discussions with management, sector research and application of relevant knowledge and experience.

• We determined the principal laws and regulations relevant to the charity in this regard to be those arising from the Charities Act 2011, Financial Reporting Standard 102 and relevant employee legislation.

• We designed our audit procedures to ensure the audit team considered whether there were any indications of non-compliance by the charity with those laws and regulations. These procedures included, but were not limited to enquiries of management, review of minutes and review of legal and regulatory correspondence.

• We also identified the risks of material misstatement of the financial statements due to fraud. We considered, in addition to the nonrebuttable presumption of a risk of fraud arising from management override of controls, that there was potential for management bias in the recognition of grants payable. We addressed this through review of the minutes of meetings and grants documentation and testing the accuracy and completeness of inputs to their calculations.

• We also identified potential for management bias in the accrual of expenditure. We addressed this through examination of post year end invoices and payments.

• As in all of our audits, we addressed the risk of fraud arising from management override of controls by performing audit procedures which included, but were not limited to: the testing of journals; reviewing accounting estimates for evidence of bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 auditor’s report.

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Hopestead

Registered Charity Number: 1190324

Independent auditor’s report to the Trustees of Hopestead (continued)

Use of our report

This report is made solely to the charity’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 charity’s trustees those matters we are required to state to them in an auditor’s 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Alastair S Duke (Senior Statutory Auditor) For and on behalf of PKF Littlejohn LLP Statutory Auditor

15 Westferry Circus Canary Wharf London E14 4HD

05/09/2023

PKF Littlejohn LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

9

Hopestead

Registered Charity Number: 1190324

Statement of Financial Activities for the year ended 31 March 2023

		Unrestricted funds	Unrestricted funds
	Notes	Year ended 31 March 2023	Year ended 31 March 2022
		£	£
Income
Grant and donations	5	1,011,413	645,972
Income from fundraising activities	6	5,231	10,946
Total income		1,016,664	656,918
Expenditure
Operating expenditure on charitable activities	8 / 10	1,134,377	526,220
Operating expenditure on fundraising activities	7	4,445	4,235
Total expenditure		1,138,822	530,455
Net income for the period and net movement in funds for the period		(122,178)	126,463
Reconciliation of funds
Fund balances brought forward	13	393,065	266,602
Fund balances carried forward	13	270,887	393,065

The statement of financial activities includes all gains and losses recognised in the year ended 31 March 2023. All income and expenditure derive from continuing activities.

All income and expenditure were unrestricted in the years ended 31 March 2023 and 31 March 2022.

The notes on pages 12 to 20 form an integral part of the financial statements.

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Hopestead

Registered Charity Number: 1190324

Balance sheet as at 31 March 2023

	Notes	31 March 2023	31 March 2022
Current assets		£	£
Debtors		-	37,226
Cash at bank and in hand		426,582	525,766
Total current assets		426,582	562,992
Creditors – amounts falling due within one year	12	(155,695)	(169,927)
Net current assets		270,887	393,065
Net assets		270,887	393,065
Funds
Unrestricted	13	270,887	393,065
Total funds		270,887	393,065

The notes on pages 12 to 20 form an integral part of the financial statements.

The financial statements were authorised for issue by the board of trustees on 11 July 2023 and signed on its behalf by:

Cecilia Tredget (Aug 21, 2023 12:40 GMT+1)

C Tredget Trustee

Hopestead

31 King Street | Norwich | Norfolk | NR1 1PD Registered Number: 1190324

11

Hopestead

Registered Charity Number: 1190324

Notes to the financial statements for the year ended 31 March 2023

1. General information

The principal activity of Hopestead (‘the Charity’) is provision of relief to people in need due to homelessness with the objective of ending homelessness in the East of England.

Hopestead is a Charitable Incorporated Organisation (‘CIO’) under the Charities Act 2011 (charity number 1190324).

The address of its registered office is 31 King Street, Norwich, Norfolk, NR1 1PD.

2. Statement of compliance

The financial statements of Hopestead have been prepared in compliance with applicable law, United Kingdom Accounting Standards, including Financial Reporting Standard 102, “The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland” (“FRS 102”), Charities SORP (FRS 102) and the Charities Act 2011. Hopestead meets the definition of a public benefit entity under FRS 102, and applies the relevant paragraphs prefixed “PBE” in FRS 102.

3. Summary of significant accounting policies

The principal accounting policies applied in the preparation of the financial statements are set out below. The policies have been consistently applied to all periods presented, unless otherwise stated. The Charity has adopted ‘FRS 102’ in these financial statements.

a. Basis of preparation

These financial statements are prepared on a going concern basis, under the historical cost convention.

The preparation of financial statements in conformity with ‘FRS 102’ requires the use of certain critical accounting estimates. It also requires management exercise its judgement in the process of applying the Charity’s accounting policies. The areas involving a higher degree of judgement or complexity, or area where assumptions and estimates are significant to the financial statements are disclosed in note 4.

b. Going concern

The Charity meets its day-to-day working requirements primarily through the cash generated from its fund-raising activities and through its agreed annual grant funding from Flagship Housing Group Limited.

Hopestead has agreed grant funding from Flagship Housing Group Limited for the next two financial years, with £1,500,000 per year of general funding committed for 2023/24 and 2024/25.

The trustees have performed a detailed review of future forecasts and projections, and the Charity should be able to operate within the level of its current facilities for the foreseeable future.

After making enquiries, the trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. The Charity therefore continues to adopt the going concern basis in preparing its financial statements.

c. Exemptions for qualifying entities under FRS 102

FRS 102 allows a ‘qualifying entity’ certain disclosure exemptions, subject to conditions.

The Charity has taken advantage of the following exemptions in its individual financial statements on the basis that it is a qualifying entity and its ultimate parent, Flagship Housing Group Limited, includes the Charity in its consolidated financial statements:

• from preparing a statement of cash flows, in accordance with paragraph 1.12(b); and

• from the financial instrument disclosures, required under FRS 102 paragraphs, 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b), 11.48(c), 12.26, 12.27, 12.29(a), 12.29(b) and 12.29(A), in accordance with paragraph 1.12(c).

d. Financial statements

These financial statements are the Charity’s separate financial statements.

e. Functional and presentational currency

The Charity’s functional and presentational currency is pound sterling.

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Hopestead

Registered Charity Number: 1190324

Notes to the financial statements for the year ended 31 March 2023 (continued)

f. Income recognition

All income resources are included in the Statement of Financial Activities when the Charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received, and the amount can be measured reliably.

Income from grants whether ‘capital’ grants or ‘revenue’ grants, is recognised when the Charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received, and the amount can be measured reliably and is not deferred.

Income received in advance of a specified service being performed is deferred and carried forward as deferred income in creditors until the criteria for income recognition is met.

g. Donated services and facilities

Donated professional services, goods and facilities are recognised as income when the Charity has control over the item, any conditions associated with the donation have been met, receipt of economic benefit by the Charity is probable and economic benefit can be measured reliably. In accordance with the SORP (FRS 102), general volunteer time is not recognised as income.

On receipt, donated services and facilities are recognised on the basis of the value of the gift to the Charity which is the amount the Charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market and a corresponding amount is then recognised in expenditure in the period of receipt.

Donated second-hand goods, or small value donated goods for Hopestead appeals, are not recognised as income because the economic benefit for the Charity is not reliably measurable.

h. Expenditure

Expenditure is recognised on an accruals basis.

Raising funds expenditure comprises costs directly associated within fundraising activities.

Charitable expenditure comprises costs directly attributable to the delivery of Hopestead charitable objectives.

Other support costs comprises indirectly attributable overhead costs incurred to support the delivery of the Charity’s objectives.

i. Grants payable

Grants are recognised as expenditure in the period in which they are approved by the Trustees. Grants which are unpaid at the period end are carried forward as creditors.

j. Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

k. Fund accounting

General funds are unrestricted and can be spent on any activities that further Hopestead’s charitable objectives and also provide the requisite funding to maintain the Charity’s overhead costs.

Designated funds are unrestricted funds which the Trustees have decided at their discretion to set aside to use for specific purpose.

Restricted funds are resources received with performance conditions specified by the provider. These are to be used only in accordance with the performance condition attached to the fund.

l. Provisions and contingencies

Provisions

Provisions are recognised when the Charity has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are not made for future operating losses.

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Registered Charity Number: 1190324

Hopestead

Notes to the financial statements for the year ended 31 March 2023 (continued)

l. Provisions and contingencies (continued)

Provisions (continued)

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised as a finance cost.

Contingencies

Contingent assets are not recognised. Contingent assets are disclosed in the financial statements when inflow of economic benefits is probable.

Contingent liabilities are not recognised. Contingent liabilities arise as a result of past events when (i) it is not probable that there will be an outflow of resources or that the amount cannot be reliably measured at the reporting date or (ii) when the existence will be confirmed by the occurrence or non-occurrence of uncertain future events not wholly within the Charity’s control. Contingent liabilities are disclosed in the financial statements unless the probability of an outflow of resources is remote.

m. Financial instruments

The Charity has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances and investments in commercial paper, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is

impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the statement of financial activities.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in the statement of financial activities.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price.

Such assets are subsequently carried at fair value and the changes in fair value are recognised in the statement of financial activities, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans and loans from fellow group companies are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

14

Hopestead

Registered Charity Number: 1190324

Notes to the financial statements for the year ended 31 March 2023 (continued)

o. Financial instruments (continued)

Financial liabilities (continued)

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Offsetting

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

p. Related party transactions

Hopestead discloses transactions with related parties in accordance with Section 9 of the SORP (FRS 102). Note 13 presents the nature of related party relationships during the period.

4. Critical accounting judgements and estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical judgements in applying the entity’s accounting policies

Going concern

The going concern assumption is one of the core principles of financial reporting. The Charity has completed its third period of activity and continues its formative growth as its funding continues to increase. The trustees have used their judgement to review the expected future performance of the Charity, taking into account available forecasts and projections, and continue to form a reasonable expectation that the Charity will continue in existence for the foreseeable future.

15

Hopestead

Registered Charity Number: 1190324

Notes to the financial statements for the year ended 31 March 2023 (continued)

5. Grants and donations

	Year	ended 31 March	2023	Year ended 31 March 2022	Year ended 31 March 2022	Year ended 31 March 2022
	Unrestricted funds			Unrestricted funds
	General funds	Designated funds	Total	General funds	Designated funds	Total
	£	£	£	£	£	£
Grant from Flagship
Housing Group	1,000,000	-	1,000,000	625,000	-	625,000
Limited
Donations from other parties	-	11,413	11,413	-	20,972	20,972
	1,000,000	11,413	1,011,413	625,000	20,972	645,972

The trustees have designated donations received from the general public and from fundraising activities (that is donations other than from Flagship Housing Group Limited) to be used for specific support for individuals at risk of or experiencing homelessness, either directly through Hopestead or from partner activities rather than being used to fund Hopestead projects directly.

6. Income from fundraising

	Year ended	Year ended
	31 March 2023	31 March 2022
	£	£
Hope at Christmas	363	1,526
Hope on the Move	-	4,887
Silent Auction	-	4,533
Charity Golf Day	4,868	-
	5,231	10,946

All income from fundraising activities is unrestricted but has been designated by the trustees to be used for the purpose explained in note 5.

7. Expenditure on raising funds

	Year ended	31 March 2023		Year ended	31 March 2022
	Designated Funds	General Funds	Total	Designated Funds	General Funds	Total
	£	£	£	£	£	£
Advertising	-	1,213	1,213	-	1,080	1,080
Fundraising event materials	-	3,232	3,232	-	3,155	3,155
	-	4,445	4,445	-	4,235	4,235

All expenditure on raising funds is unrestricted.

16

Hopestead

Registered Charity Number: 1190324

Notes to the financial statements for the year ended 31 March 2023 (continued)

8. Expenditure on charitable activities

	Year ended	31 March 2023
	Designated Funds	General Funds	Total
	£	£	£
Grants / donations paid to partner charities	-	245,085	245,085
Provision of household goods to support settling into a home	30,000	665,179	695,179
‘Your own place’ training	-	4,950	4,950
Homeless support at Christmas	363	-	363
Hopestead Savings Scheme	-	305	305
Support toward poverty alleviation	-	7,127	7,127
	30,363	922,646	953,009

	Year ended	31 March 2022
	Designated Funds	General Funds	Total
	£	£	£
Grants / donations paid to partner charities	500	237,612	238,112
Homeless support at Christmas	1,483	-	1,483
Provision of household goods to support settling into a home	-	49,775	49,775
‘Your own place’ training	-	20,070	20,070
Hopestead Savings Scheme	-	2,760	2,760
Support toward fuel poverty alleviation	-	50,000	50,000
Community cohesion and development	-	7,588	7,588
	1,983	367,805	369,788

During the year ended 31 March 2023 Hopestead allocated designated funds to its Hope at Home initiative to support additional provision of household essential items to homeless individuals starting their first tenancy.

Donations made by Hopestead during the year ended 31 March 2023 are presented in the Trustees Report on page 4.

During the year ended 31 March 2023 Hopestead donated £695,179 (31 March 2022 £49,775) of flooring, furniture and white goods packages to individuals and families starting new social housing tenancies or experiencing hardship to help improve quality of life within the home and reduce the risk of a return to homelessness.

17

Hopestead

Registered Charity Number: 1190324

Notes to the financial statements for the year ended 31 March 2023 (continued)

9. Income tax

Hopestead is a charity within the meaning of the Taxes Act and is, therefore, eligible to claim certain exemptions to income tax and capital gains tax. Consequently, no charge to taxation has arisen for the period. Hopestead is not registered for Value Added Tax (VAT) and cannot reclaim any VAT cost incurred.

10. Other – support costs

10. Other – support costs
	Year ended	Year ended
	31 March 2023	31 March 2022
	£	£
Staff costs	148,347	124,394
Strategic development consultancy	26,973	30,734
Training	646	803
Other overhead expenditure	5,402	501
	181,368	156,432

The audit fee of £8,500 was borne by Flagship Housing Group Limited for the year ended 31 March 2023 (year ended 31 March 2022: £7,500).

11. Employees and trustees

Employees

The average monthly number of full-time equivalent persons employed by the company during the period was:

		Year ended	Year ended
		31 March 2023	31 March 2022
		Number	Number
Employees		3	3
Operating expenditure includes the following:
	Note	Year ended 31 March 2023	Year ended 31 March 2022
		£	£
Wages and salaries		124,476	95,490
Social security costs		12,047	9,575
Other pension costs		11,824	11,438
Staff costs		148,347	116,503

No employees were remunerated more than £60,000 during the year ended 31 March 2023 (year ended 31 March 2022: none).

Trustees

The trustees did not receive any remuneration or expenses in relation to their trusteeship of the charity (year ended 31 March 2022: £nil).

18

Hopestead

Registered Charity Number: 1190324

Notes to the financial statements for the year ended 31 March 2023 (continued)

12. Creditors: amounts falling due within one year

	31 March 2023	31 March 2022
	£	£
Trade creditors	52,832	262
Taxation and social security	1,667	2,898
Other creditors	-	22,500
Accruals and deferred income	101,195	144,267
	155,694	169,927

13. Unrestricted funds

		Year ended 31 March 2023	Year ended 31 March 2023
	Balance at 1 April 2022	Income	Expenditure	Balance at 31 March 2023
	£	£	£	£
Unrestricted fund	355,150	1,000,000	(1,108,459)	246,691
Designated fund	37,915	16,644	(30,363)	24,196
	393,065	1,016,644	(1,138,822)	270,887
		Year ended 31 March 2022
	Balance at 1 April 2021	Income	Expenditure	Balance at 31 March 2022
	£	£	£	£
Unrestricted fund	258,622	625,000	(528,472)	355,150
Designated fund	7,980	31,918	(1,983)	37,915
	266,602	656,918	(530,455)	393,065

14. Commitments

Hopestead’s Hope Funds initiative provides funding to local charities, organisations, and community groups to develop multi-faceted agency support packages to address the wider drivers of homelessness. At 31 March 2023 Hopestead’s Trustees had approved no donations (31 March 2022 £26,447) for which a contractual funding agreement had not been signed between the parties.

15. Related party disclosures

The sole Member of Hopestead is Flagship Housing Group Limited. During the year ended 31 March 2023 Flagship Housing Group Limited provided a donation to Hopestead. The nature of transactions between Hopestead and Flagship Housing Group Limited during the year meet the criteria of paragraph 9.18 of SORP (FRS 102) and do not require further disclosure within these financial statements.

There are no other related party transactions that require disclosure in these financial statements.

19

Hopestead

Registered Charity Number: 1190324

Notes to the financial statements for the year ended 31 March 2023 (continued)

16. Ultimate controlling party

The sole Member and controlling party of Hopestead is Flagship Housing Group Limited (Registration Number: 31211R). Flagship Housing Group Limited’s principal purpose is to provide homes and create sustainable communities for its social housing tenants. The smallest and largest group to consolidate these financial statements is Flagship Housing Group Limited. Copies of the Flagship Housing Group Limited consolidated financial statements can be obtained from 31 King Street, Norwich, Norfolk, NR1 1PD.

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