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2023-03-31-accounts

Registered number: 01984863 Charity number: 293721

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE)

CONTENTS

Page
Trustees' report 1 - 6
Independent auditors' report on the financial statements 7 - 10
Statement of financial activities 11
Balance sheet 12
Statement of cash flows 13
Notes to the financial statements 14 - 29

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2023

Reference and administrative details of the Charity, its trustees and advisers

Trustees Mr C J F Andrews
Ms J Carroll (deceased 9 October 2023)
Ms H Hart
Mr A White
Dr B Jameson
Mrs A Clements
Mrs J Yeates
Mrs E P Bleazard (appointed 1 November 2022)
Mr J D Burt (appointed 11 October 2022)
Company registered
number
01984863
Charity registered
number
293721
Registered office
Hyde Park House
Mutley Plain
Plymouth
Devon
England
PL4 6LF
Company secretary
Mrs J Howes
Chief executive officer
Mrs J Howes
Independent auditors
Bishop Fleming LLP
Chartered Accountants
Salt Quay House
4 North East Quay
Sutton Harbour
Plymouth
PL4 0BN

Page 1

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

(CONTINUED)

INTRODUCTION

The Harbour Centre (Plymouth) is a company limited by guarantee and a registered charity governed by its memorandum and articles of association. The Board of Directors of the charity are its Trustees for the purposes of charity law and throughout this report are collectively referred to as Trustees. The Trustees present their annual report together with the audited financial statements of the organisation for the year ended 31 March 2022.

The Trustees confirm that the Annual report and financial statements of the company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Charities Statement of Recommended Practice (SORP) FRS102. The organisation qualifies as small company under section 383 of The Companies Act 2006 and therefore a Strategic Report and Director's Report is not required.

OBJECTS

The Harbour Centre (Plymouth) implements operational policies and procedures that are in line with UK national treatment guidelines and standards for drug and alcohol treatment services. The organisation has been ISO 9001 Certified since 2015 and has a robust clinical governance and quality assurance framework.

The principal objects of the company as set out in its governing documents are:

a) to promote the prevention of the abuse of alcohol and other substances and to assist individuals and their families suffering therefrom through the provision of services that address their multiple needs associated with recovery from addiction or dependence on substances.

b) to help the prevention of the abuse of alcohol and other substances through the provision of education and training of professionals and volunteers in the field; and

c) to advance the education of the public about the incidence and effect on society of the use, abuse and dependence upon alcohol and other substances.

These objects are encapsulated within Harbour’s Mission Statement: Harbour supports people suffering from the harm caused by the misuse of drugs and alcohol by providing education, prevention and integrated treatment and recovery services.

ACTIVITIES TO ACHIEVE OBJECTS

We plan and review our strategic aims and activities through our annual business planning cycle.

Our primary activities include:

Page 2

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

(CONTINUED)

PERFORMANCE

All data on structured treatment for adults and young people is uploaded to the National Drug Treatment Monitoring System. A snapshot of Harbour’s key outputs and outcomes in 2022/23 are detailed below.

Adult Community Access Service (exc. CJIT)

In total 1493 clients were open to tier 3 treatment in 2022/23

Sharp Young People’s Service

In total 86 young people were open to tier 3 treatment with SHARP in 2022/23

FUNDING AND INVESTMENT

Harbour’s primary activities are commissioned by Public Health and Plymouth City Council as part of The Plymouth Alliance. The organisation owns two properties, Ermington Terrace, and Hyde Park House, both of which generate unrestricted income via rental.

FINANCIAL REVIEW

The Trustees have a reasonable expectation that the company has adequate resources to continue in operation for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

Page 3

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

(CONTINUED)

The organisation has achieved a surplus of income over expenditure of £150,190. This surplus is mainly attributable to rental income.

Free reserves are defined as unrestricted reserves not represented by fixed assets. A large part of the charity’s overall reserves consists of fixed assets (such as Hyde Park House and Ermington Terrace) rather than actual bank/cash balances that it can spend immediately. The fixed asset fund represents the value of such assets and has been calculated with reference to the book value less any loans relating to the properties. It is excluded from the total value of unrestricted reserves in the calculation of free reserves. Thus, free reserves represent those assets that could be liquidated quickly to settle liabilities that arise because of one-off events e.g., termination of a contract. The Free Reserves Policy has been increased to reflect an increase in risks to the charity.The trustees aim is now to hold free reserves of between £375,000-450,000.

At the start of the year the charity had free reserves of £421,664 and at the year end the charity had £449,792 of free reserves.

An analysis of free reserves can be seen at note 17 of the financial statements.

GOVERNANCE AND MANAGEMEN T

Board of Directors

The oversight of the organisation’s assets and strategic direction is the responsibility of its Trustees, whose membership on the Board is approved by vote following a robust recruitment, referencing and criminal records checking process. The Trustees elect a Chair to lead on governance and convene meetings. The Trustees have complied with their duty outlined in section 4 of the Charities Act 2006 to have due regard to public benefit guidance issued by The Charity Commission.

All Trustees engage in an induction programme that involves Trustee training on the organisation’s work. The Chair of the Board and the Chief Executive Officer (CEO) coordinate this. Continued training and development are regularly reviewed and offered to the Trustees as needs are identified.

Senior Leadership Team

The CEO is responsible for the strategic management of the organisation. A Senior Leadership Team (SLT) was convened in August 2016, comprised of the CEO, the Head of Operations, and a representative senior manager from partner agency Livewell. The SLT works together to agree and action organisational priorities.

Risk Management

A risk management framework guides the decision making of the Trustees and SLT. Over the last five years the organisation has strengthened its policies and structures to manage the increasing levels of professional risk. This has been achieved primarily through the continual review and improvement of recruitment and training standards of employees at all levels.

FUTURE DEVELOPMENTS

The Trustees signed off the Strategic Business Plan for 2019/20 onwards in 2019. In light of COVID-19, The strategic vision has had to be adapted. Staff, partners, and the people who use our services have been consulted with regarding future organisational and Alliance aims. The key strategic aims included in this plan are detailed below.

What We Do

Page 4

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

(CONTINUED)

How We Fund It

How We Promote It

How We Resource It

How We Involve

Page 5

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

(CONTINUED)

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company 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 its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

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 the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Auditors

The auditors, Bishop Fleming LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees and signed on their behalf by:

Mr A White

Trustee Date: 13 December 2023

Page 6

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE HARBOUR CENTRE (PLYMOUTH)

OPINION

We have audited the financial statements of The Harbour Centre (Plymouth) (the 'charity') for the year ended 31 March 2023 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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:

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 charitable company'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 Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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.

Page 7

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE HARBOUR CENTRE (PLYMOUTH) (CONTINUED)

OPINION OF OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

In our opinion, based on the work undertaken in the course of the audit:

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

RESPONSIBILTIES OF TRUSTEES

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

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

Page 8

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE HARBOUR CENTRE (PLYMOUTH) (CONTINUED)

AUDITORS REPSONSIBILITIES OF THE AUDIT OF THE FINANCIAL STATEMENTS

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 Auditors' 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 non-compliance 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:

As a result of these procedures, we have considered the opportunities and incentives that may exist within the Charity for fraud and identified the highest area of risk to be in relation to income recognition, with a particular risk in relation to the funds held as custodian. In common with all audits under ISAs (UK) we are also required to perform specific procedures to respond to the risk of management override.

We have also obtained an understanding of the legal and regulatory frameworks that the Charity operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Charities Act 2011, Charity SORP 2019, UK Companies Act, FRS 102, the Federation of Drugs and Alcohol Professionals and the terms and conditions attaching to material grants received by the Charity.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Charity’s ability to operate or avoid a material penalty. These included the Health & Social Care Act, data protection legislation, health and safety regulations, and employment legislation.

Our procedures to respond to risks identified included the following:

Page 9

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE HARBOUR CENTRE (PLYMOUTH) (CONTINUED)

We also communicated identified laws and regulations and potential fraud risks to all members of the engagement team and remained alert to possible indicators of fraud or non-compliance with laws and regulations throughout the audit.

As a result of the inherent limitations of an audit, there is a risk that not all irregularities, including a material misstatement in the financial statements or non-compliance with regulation, will be detected by us. This risk increases the further removed compliance with a law and regulation is from the events and transactions reflected in the financial statements, given we will be less likely to be aware of it, or should the irregularity occur as a result of fraud rather than a one-off error, as this may involve 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 Auditors' report.

USE OF OUR REPORT

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Pamela Tuckett FCA DChA (Senior statutory auditor)

for and on behalf of

Bishop Fleming LLP Chartered Accountants Statutory Auditors Salt Quay House 4 North East Quay Sutton Harbour Plymouth PL4 0BN

Date: 14 December 2023

Page 10

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2023

Note
INCOME FROM:
Donations and legacies
4
Charitable activities
6
Investments
5
TOTAL INCOME
EXPENDITURE ON:
Raising funds
Charitable activities
7
TOTAL EXPENDITURE
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total funds brought forward
Net movement in funds
TOTAL FUNDS CARRIED FORWARD		 Restricted
funds
2023
£
-
-
-
-
-
2,120
2,120
(2,120)
2,120
(2,120)
-		 Unrestricted
funds
2023
£
9,506
2,548,844
53,998
2,612,348
89,991
2,370,047
2,460,038
152,310
1,572,551
152,310
1,724,861		 Total
funds
2023
£
9,506
2,548,844
53,998
2,612,348
89,991
2,372,167
2,462,158
150,190
1,574,671
150,190
1,724,861		 Total
funds
2022
£
20,759
2,145,639
52,413
2,218,811
101,407
2,012,571
2,113,978
104,833
1,469,838
104,833
1,574,671

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 14 to 29 form part of these financial statements.

Page 11

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE) REGISTERED NUMBER:01984863

BALANCE SHEET AS AT 31 MARCH 2023

Note
FIXED ASSETS
Tangible assets
12
Investment property
13
CURRENT ASSETS
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within one
year
15
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
Creditors: amounts falling due after more
than one year
16
TOTAL NET ASSETS
CHARITY FUNDS
Restricted funds
17
Unrestricted funds
17
TOTAL FUNDS		 226,621
819,699
1,046,320
(297,972)		 2023
£
1,052,693
217,500
1,270,193
748,348
2,018,541
(293,680)
1,724,861
-
1,724,861
1,724,861		 13,144
802,579
815,723
(236,069)		 2022
£
1,085,559
217,500
1,303,059
579,654
1,882,713
(308,042)
1,574,671
2,120
1,572,551
1,574,671

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Mr A White Trustee Date: 13 December 2023

The notes on pages 14 to 29 form part of these financial statements.

Page 12

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

CASH FLOWS FROM OPERATING ACTIVITIES
Net cash used (in)/from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Dividends, interests and rents from investments
Purchase of tangible fixed assets
NET CASH PROVIDED BY INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of borrowing
NET CASH USED IN FINANCING ACTIVITIES
CHANGE IN CASH AND CASH EQUIVALENTS IN THE YEAR
Cash and cash equivalents at the beginning of the year
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
The notes on pages 14 to 29 form part of these financial statements		 2023
£
(20,939)
53,998
-
53,998
(15,939)
(15,939)
17,120
802,579
819,699		 2022
£
180,669
52,413
(36,613)
15,800
(94,343)
(94,343)
102,126
700,453
802,579

Page 13

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1. GENERAL INFORMATION

The Charity is a company limited by guarantee. The members of the Charity are the Trustees named on page 1. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity.

The Charity was incorporated in the United Kingdom. Details regarding the Charity's information can be seen on the Charity information page

2. ACCOUNTING POLICIES

2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Harbour Centre (Plymouth) meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 FUND ACCOUNTING

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

2.3 GOING CONCERN

The accounts have been prepared on the going concern basis. The Trustees consider that the Charity has sufficient resources available to meet all commitments as they fall due and the Charity continues as a going concern.

Page 14

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

2. ACCOUNTING POLICIES (continued)

2.4 INCOME

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

2.5 EXPENDITURE

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

2.6 INTEREST RECEIVABLE

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.7 TANGIBLE FIXED ASSETS AND DEPRECIATION

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of financial activities incorporating income and expenditure account.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .

Depreciation is provided on the following bases:

Page 15

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

2. ACCOUNTING POLICIES (continued)

2.8 INVESTMENT PROPERTY

Fixed asset investments and investment property are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless fair value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading ‘Gains/(losses) on investments’ in the Statement of financial activities incorporating income and expenditure account.

2.9 CASH AT BANK AND IN HAND

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

The Charity holds cash on behalf of the associated organisation. Control of these funds is not by the Charity but by the senior leadership team of that organisation. Accordingly, this cash is not recognised in the Charity's accounts.

2.10 LIABILITIES AND PROVISIONS

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

2.11 FINANCIAL INSTRUMENTS

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.12 PENSIONS

The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.

2.13 PROGRAMME RELATED INVESTMENTS

Programme related investments are made exclusively to further the charitable aims by funding specific activities of related tangible fixed assets of a third party which, in turn, contribute to the Charity's own charitable purposes. Property that is let out in order to further charitable aims of the Charity as well as the lessor are classified as tangible fixed assets and are accounted for in the accordance with the tangible fixed asset policy.

Page 16

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

3. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGMENT

Estimates and judgments 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 accounting estimates and assumptions:

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results.

Critical areas of judgment:

Valuation of Investment Property - The investment property held is a percentage of the freehold property owned which is let out. The percentage of the building tenanted will impact the value of the investment aspect of the property.

Treatment of funds held for an associated organisation - Included in the Charity's bank account is cash being held on behalf of an associated organisation. Control of these funds is not held by the Charity but by the senior leadership team of that organisation.

4. INCOME FROM DONATIONS AND LEGACIES

Unrestricted
funds
2023
£
Donations
9,506
TOTAL 2022
20,759		 Total
funds
2023
£
9,506
20,759		 Total
funds
2022
£
20,759

5. INVESTMENT INCOME

Unrestricted
funds
2023
£
Rental income
52,319
Investment income
1,679
53,998
TOTAL 2022
52,413		 Total
funds
2023
£
52,319
1,679
53,998
52,413		 Total
funds
2022
£
52,380
33
52,413

Page 17

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

6. INCOME FROM CHARITABLE ACTIVITIES

Unrestricted
funds
2023
£
Core funding
1,709,952
Other funding
12,732
Sharp funding
188,825
Alcohol service
77,695
Training courses
8,640
Supplementary Drug and Alcohol Treatment grant (formerly
Universal Drug service)
230,000
Rough Sleeping Drug and Alcohol Treatment grant
321,000
2,548,844
TOTAL 2022
2,145,639		 Total
funds
2023
£
1,709,952
12,732
188,825
77,695
8,640
230,000
321,000
2,548,844
2,145,639		 Total
funds
2022
£
1,704,722
15,419
184,777
54,793
13,428
172,500
-
2,145,639

7. ANALYSIS OF EXPENDITURE BY ACTIVITIES

Charitable expenditure
TOTAL 2022		 Activities
undertaken
directly
2023
£
2,315,032
1,963,926		 Governance
costs
2023
£
57,135
48,645		 Total
funds
2023
£
2,372,167
2,012,571		 Total
funds
2022
£
2,012,571

Page 18

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

8. GOVERNANCE COSTS

Unrestricted
funds
2023
£
Auditors' remuneration
8,330
Auditors' non-audit costs
2,220
Company secretarial and professional fees
1,236
Wages and salaries
41,214
Pension costs
4,135
57,135		 Total
funds
2023
£
8,330
2,220
1,236
41,214
4,135
57,135		 Total
funds
2022
£
6,905
2,220
1,425
34,891
3,204
48,645

9.

ANALYSIS OF EXPENDITURE BY EXPENDITURE TYPE

Expenditure on property
investment management
COSTS OF RAISING FUNDS
Expenditure on charitable
activities
Expenditure on governance
TOTAL 2022		 Staff costs
2023
£
-
-
1,868,253
45,349
1,913,602
1,604,347		 Deprec'n
2023
£
-
-
32,866
-
32,866
37,086		 Other costs
2023
£
89,991
89,991
413,913
11,786
515,690
463,420		 Total
funds
2023
£
89,991
89,991
2,315,032
57,135
2,462,158
2,104,853		 Total
funds
2022
£
101,407
101,407
1,954,801
48,645
2,104,853

Page 19

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

10. NET INCOME/(EXPENDITURE)

2023 2022
£ £
This is stated after charing:
Depreciation of tangible fixed assets: - owned by the charity 32,866 37,086
Auditors' remuneration - audit 8,330 6,905
Auditors' remuneration - other services 2,220 2,220

During the year, no Trustees received any remuneration (2022: £Nil). During the year, no Trustees received any benefits in kind (2022: £Nil). During the year, no Trustees received any reimbursement of expenses (2022: £Nil).

11. STAFF COSTS

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2023
£
1,631,199
143,952
138,451
1,913,602		 2022
£
1,364,262
116,134
123,951
1,604,347

The average number of persons employed by the Charity during the year was as follows:

Full-time
Part-time		 2023
No.
46
26
72		 2022
No.
38
25
63

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2023 2022
No. No.
In the band £70,001 - £80,000 - 1
In the band £80,001 - £90,000 1 -

All Trustees and certain senior employees who have authority and responsiblility for planning, directing and controlling the activities of the Charity are considered to be key management personnel as listed on page 1. Total remuneration, including employer pension contributions, in respect of these individuals is £87,402 (2022: £76,581).

Page 20

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

12. TANGIBLE FIXED ASSETS

COST OR VALUATION
At 1 April 2022
At 31 March 2023
DEPRECIATION
At 1 April 2022
Charge for the year
At 31 March 2023
NET BOOK VALUE
At 31 March 2023
At 31 March 2022		 Freehold
property
£
1,653,050
1,653,050
605,179
17,712
622,891
1,030,159
1,047,871		 Office
equipment
£
180,990
180,990
143,302
15,154
158,456
22,534
37,688		 Total
£
1,834,040
1,834,040
748,481
32,866
781,347
1,052,693
1,085,559

A net book value amount of £495,000 (2022: £495,000) is included within freehold property which represents a building used as a programme related investment.

13. INVESTMENT PROPERTY

VALUATION
At 1 April 2022
At 31 March 2023		 Freehold
investment
property
£
217,500
217,500

The 202 valuations were made by the Trustees, on an open market value for existing use basis.

Page 21

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

14. DEBTORS

DUE WITHIN ONE YEAR
Trade debtors
Other debtors
Prepayments and accrued income		 2023
£
29,962
12,114
184,545
226,621		 2022
£
3,660
5,841
3,643
13,144

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loans
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 2023
£
13,397
37,608
46,172
54,629
146,166
297,972		 2022
£
14,974
28,688
34,062
21,749
136,596
236,069

The above balance of bank loans and overdrafts is secured against the Charity's freehold property.

Deferred income at 1 April 2022
Resources deferred during the year
Amounts released from previous periods		 2023
£
79,010
13,194
(79,010)
13,194		 2022
£
-
79,010
-
79,010

Included within the deferred income balance at the year end are funds received in advance in respect of Safer Streets totalling £13,194 (2022: £Nil). Amounts released from 2022 during the year include funds received in advance in respect of Universal Drug Money totalling £57,000 and funds received in advance from Plymouth City Council totalling £21,510.

Page 22

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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

Bank loans
Included within the above are amounts falling due as follows:
BETWEEN ONE AND TWO YEARS
Bank loans
BETWEEN TWO AND FIVE YEARS
Bank loans
OVER FIVE YEARS
Bank loans		 2023
£
293,680
2023
£
13,397
40,092
240,191		 2022
£
308,042
2022
£
14,794
44,922
248,326

The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is:

Payable or repayable by instalments 2023
£
240,091
240,091		 2022
£
248,326
248,326

The balance above is made up of one loan (2022: one loan). The loan is repayable over 120 months from drawdown at a fixed interest rate of 4.44% per annum.

The above balance for bank loans and overdrafts is secured against the Charity's freehold and investment property.

Page 23

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

17. STATEMENT OF FUNDS

STATEMENT OF FUNDS - CURRENT YEAR

UNRESTRICTED FUNDS
DESIGNATED FUNDS
Fixed Asset Fund
Investment Property
Sinking Fund
Business Development
Hardship Fund
Hyde Park House Repair
GENERAL FUNDS
Charitable Funds
TOTAL UNRESTRICTED
FUNDS
RESTRICTED FUNDS
Naloxone
TOTAL OF FUNDS		 Balance at 1
April 2022
£
762,543
217,500
48,850
81,994
40,000
-
1,150,887
421,664
1,572,551
2,120
1,574,671		 Income
£
-
-
-
-
-
-
-
2,612,348
2,612,348
-
2,612,348		 Expenditure
£
(32,866)
-
-
(18,891)
-
-
(51,757)
(2,408,281)
(2,460,038)
(2,120)
(2,462,158)		 Transfers
in/out
£
15,939
-
10,000
-
-
150,000
175,939
(175,939)
-
-
-		 Balance at
31 March
2023
£
745,616
217,500
58,850
63,103
40,000
150,000
1,275,069
449,792
1,724,861
-
1,724,861

Page 24

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

17. Statement of funds (continued)

DESIGNATED FUNDS

Fixed assets/Investment property

In previous years, Charity funds have been used to purchase the premises at Ermington Terrace and other fixed assets that are shown in the Statement of Financial Position. The cost of these assets is charged against income over their useful life. The income is therefore not available to spend immediately. Hence, an amount equal to the net book value of fixed assets and investment properties, after deduction of mortgage creditors has been designated. A transfer has been made to represent loan repayments and capital purchases in the year.

Sinking Fund

This fund is set aside for the maintenance of the rental property and is funded by annual contributions from tenants of the property, including the Charity.

Business Development

This represent funds for training, consultancy and social enterprise activities.

Hardship Fund

This represents a fund set up to provide support for employees and clients suffering Hardship in the current challenging climate.

Hyde Park House Repair

This fund is to be used to carry out large one off repairs to Hyde Park House not covered by the Sinking Fund contributions from tenants.

RESTRICTED FUNDS

Naloxone

Funding received to provide Naloxone to users.

Page 25

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

17.
Statement of funds (continued)
STATEMENT OF FUNDS - PRIOR YEAR
Balance at
1 April 2021
£
UNRESTRICTED FUNDS
DESIGNATED FUNDS
Fixed Asset Fund
668,673
Investment Property
217,500
Sinking Fund
50,000
Complex Lives Tender
Reorganisation
14,729
Business Development
90,438
Hardship Fund
-
1,041,340
GENERAL FUNDS
Charitable Funds
421,378
Investment Funds
-
421,378
TOTAL UNRESTRICTED
FUNDS
1,462,718
RESTRICTED FUNDS
Naloxone
7,120
TOTAL OF FUNDS
1,469,838		 Income
£
-
-
-
-
-
-
-
2,166,398
52,413
2,218,811
2,218,811
-
2,218,811		 Expenditure
£
(37,086)
-
(11,150)
-
(8,444)
-
(56,680)
(1,950,891)
(101,407)
(2,052,298)
(2,108,978)
(5,000)
(2,113,978)		 Transfers
in/out
£
130,956
-
10,000
(14,729)
-
40,000
166,227
(215,221)
48,994
(166,227)
-
-
-		 Balance at
31 March
2022
£
762,543
217,500
48,850
-
81,994
40,000
1,150,887
421,664
-
421,664
1,572,551
2,120
1,574,671

Page 26

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

18. SUMMARY OF FUNDS

SUMMARY OF FUNDS - CURRENT YEAR

Balance at
Balance at 1 Transfers 31 March
April 2022 Income Expenditure in/out 2023
£ £ £ £ £
Designated funds 1,150,887 - (51,757) 175,939 1,275,069
General funds 421,664 2,612,348 (2,408,281) (175,939) 449,792
Restricted funds 2,120 - (2,120) - -
1,574,671 2,612,348 (2,462,158) - 1,724,861
SUMMARY OF FUNDS - PRIOR YEAR
Balance at
Balance at Transfers 31 March
1 April 2021 Income Expenditure in/out 2022
£ £ £ £ £
Designated funds 1,041,340 - (56,680) 166,227 1,150,887
General funds 421,378 2,218,811 (2,052,298) (166,227) 421,664
Restricted funds 7,120 - (5,000) - 2,120
1,469,838 2,218,811 (2,113,978) - 1,574,671

19. ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR

Unrestricted
funds
2023
£
Tangible fixed assets
1,052,693
Investment property
217,500
Current assets
1,046,320
Creditors due within one year
(297,972)
Creditors due in more than one year
(293,680)
TOTAL
1,724,861		 Total
funds
2023
£
1,052,693
217,500
1,046,320
(297,972
(293,680
1,724,861

Page 27

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

19.
ANALYSIS OF NET ASSETS BETWEEN FUNDS (continued)
ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR
Restricted
funds
2022
Unrestricted
funds
2022
£
£
Tangible fixed assets
-
1,085,559
Investment property
-
217,500
Current assets
2,120
813,603
Creditors due within one year
-
(236,069)
Creditors due in more than one year
-
(308,042)
TOTAL
2,120
1,572,551
20.
Reconciliation of net movement in funds to net cash flow from operating activities
2023
£
Net income for the year (as per Statement of Financial Activities)
150,190
ADJUSTMENTS FOR:
Depreciation charges
32,866
Dividends, interests and rents from investments
(53,998)
Decrease/(increase) in debtors
(213,477)
Increase in creditors
63,480
NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES
(20,939)
21.
Analysis of cash and cash equivalents
2023
£
Cash in hand
819,699
TOTAL CASH AND CASH EQUIVALENTS
819,699		 Total
funds
2022
£
1,085,559
217,500
815,723
(236,069)
(308,042)
1,574,671
2022
£
104,833
37,086
(52,413)
28,715
62,448
180,669
2022
£
802,579
802,579

Page 28

THE HARBOUR CENTRE (PLYMOUTH) (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

22. Analysis of changes in net debt

Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year		 At 1 April
2022
£
802,579
(14,974)
(308,042)
479,563		 Cash flows
£
17,120
1,577
14,362
33,059		 At 31 March
2023
£
819,699
(13,397)
(293,680)
512,622

23. PENSION COMMITMENTS

The Charity operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the Charity to the fund and amounted to £136,356 (2022: £123,150). Contributions totalling £13,708 (2022: £11,748) were payable to the fund at the balance sheet date and are included in creditors.

24. RELATED PARTY TRANSACTIONS

The Harbour Centre (Plymouth) has not entered into any related party transaction during the year, nor are there any outstanding balances owing between related parties and the The Harbour Centre (Plymouth) at 31 March 2023.

25. CONTROLLING PARTY

The Charity is controlled by the Trustees.

Page 29