TURNING LIVES AROUND LTD (A company limited by guarantee) Trustees, Report and Financial Statements For the year ended 31 March 2024 Charity number $15300 Company number 1790817
TURNING LIVES AROUND (A Company limited by guarantee) Financial statements for the year ended 31 March 2024 CONTENTS PAGE Legal and Administrative Infornlation Report of the Supervisory Board 4-10 Report of the Independent Auditors Charity only Statement of Financial Activities 15 Consolidated Statement of Financial Activities 16 Charity only Balance Sheet 17 Consolidated Balance Sheet 18 Consolidated Cash Flow Statement 19 Notes on the Financial Statements 20-44
Legal and administrative information Charity name Turning Lives Around Ltd Charity registration number 515300 Company registration number 1790817 Registered office and Administration address Photon House Percy Street Leeds LS12 IEL Supervisory Board Mr. M. Ford Mrs. M. A. Ballance Mr. M. White Mr. A. Shahab Mrs. S. Pauley Mr. S. H¢ffeman (appointed 0511212023) Mrs. J. Maples (appointed 0511212023) Mrs. S.D.W. Nyirenda (appointed 0511212023) Mrs. H. Quinlan (appointed 0511212023) Mrs. R. White (appointed 0511212023) Mr. G. Gallacher (appointed 2310412024) Chair Chief Executive Mr. S. Hoey Finance Director and Company Secretary Mr. A D Marriott BA FCCA Auditors Brown Butler Chartercd Accountants Leigh House 28 - 32 St. Paul's Street LEEDS LSI 2JT Bankers Lloyds Bank pl PO Box 128 69 Albion Street LEEDS LSI IYX Solicitors Weightmans Ilp 100 Old Hall Street, LIVERPOOL, L3 9QJ
Report of the Supervisory Board The members of the Supervisory Board present their report and the audited financial statements for the year ended 31 March 2024. Members of the Supervisory Board The members of the Supervisory Board during the year were as follows. Mr. M. Ford Mrs. M. A. Ballance Mr. M. White Mr. A. Shahab Mrs. S. Pauley Mr. M. Kerr (resigned 2210812023) Mr. I. Livingstone (resigned 0910512023) Mrs. E.R. Tebbs-ogotu (resigned 2210812023) Mr. S. Heffernan (appointed 0511212023) Mrs. J. Maples (appointed 0511212023) Mrs. S.D.W. Nyirenda (appointed 0511212023) Mrs. H. Quinlan (appointed 0511212023) Mrs. R. White (appointed 0511212023) Members of the Supervisory Board are dir¢ctors of the company for the purpose of company law, and trust¢¢s for the purpose of charity law. Accounts The members of the Supervisory Board submit the audited financial statements of the group for the year ended 31 March 2024. As set out on page 16, the net incoming resources for the year amount to a surplus of £410,362 (a deficit of £439,469 in 2023) and are dealt with as shown in the statement of financial activities. General funds are reporting a surplus for the year of £469,866. Restricted funds showed a surylus for the year of £41,818. Designated funds showed a deficit for the year of £101,322. Impaet Statement As a result of the company having to comply with the requirements of FRS102 regarding Retirement Benefits within the financial statements, we are required to report the pension liabilities for the legacy staff from Leeds City Council that are members of the West Yorkshire Pension Fund (WYPF). The WYPF scheme is presently reporting a surplus, however. as recognition of the asset is governed by FRS102 and due to the uncertainty of gaining any economi¢ benefit the trustees havc concluded to report neither an asset nor a liability at the y¢ar-end date which more accwately reflects the position. Status Tuming Llves Around is a company limited by guarantee and has no share capital. At 31 March 2024, there were 35 members (2023 - 27), each of whom has guaranteed to contribute an amount not exceeding £1 in the event of the winding up of the company. The company is a r¢gist¢red charity number 515300. The company has one wholly owned subsidiary Buslness 900 Community Interest Company, the subsidiary's results are consolidated into the financial staternents. The company is governed by its Memorandum and Articles of Association which outlines the objects and powers of the charitable company. Under the company's Articles of Association, one third of the members of the Supervisory Board retires by rotation at the AGM and are eligible for re-election.
Report of the Supervisory Board (continued) GoverniDg body- Skills of SupeiS0ry Board The charity's work focuses upon accommodating and supporting vulnerable homeless people. The Supervisory Board seeks to ensure that the needs of the service users are appropriately r¢flected through the diversity of membership. To enhance the potential pool of trustees, the charity has, through selective advertising, sought to identify potential trustees. The more traditional business skills ar¢ well represented on the Supervisory Board. In an effort to maintain this broad skill mix, members of the Supervisory Board are r¢quested to provide a list of their skills (and update it each year). In the event of particular skills being lost due to retirement, the charity will seek to recruit new members 10 the Board possessing those skills. Pay and remuneration of key management personnel is set by reviewing the markel rates for those positions and also to compare rates with competition in the same locality and sector. Trustee induction and training New trustees are ¢ncouraged to attend an induction programme, which includes meetings with the Chief Executive (explanation of operational procedures) and Finance Director (explanation of budgets and accounts). This would be followed by visits to each of the charity's schemes. Operational Structure TLA has a Supervisory Board of up to five members who meet quarterly and are responsible for the strategic direction and policy of the charity. At present the Board has five members from a variety of professional backgrounds, relevant to the work of the charity. The Secretary also sits on the Board but has no voting rights. The Supervisory Board is supported by an Executive Board that meets monthly. A scheme of delegation is in place and day-to-day responsibility for the provision of the services rest with the Chief Executive and Finance Director. The Chief Executive is responsible for ensuring that the charity delivers the services specified and that key perfonnance indicators are met. Senior Managers who report directly to the Chief Executive, have responsibility for day-to-day operational care of the charity, individual supervision of the staff team and also for ensuring that the teams continue to develop their skills and working standards in line with good practice. Insurance In accordance with nornlal commercial practice, the charitabl¢ company has purchased insurance to protect the directors and officers from claims arising from negligent acts, errors or omissions occurring whilst on charitsble company business. The insurance provides cover up to £1,000,000 on any claim. It is not possible to quantify the directors and officers indemnity element from the overall cost of the commercial insurance policy. The cost of this insurance forms part of the total insurance cost. Objectives and Activities Th¢ charity's objectives are: To relieve poverty, sickness, infirn)ity, in old age in particular, but not exclusively by means of a provision of accommodation and the provision of advice and counseling. The advancement of education, including by (but not limited to) the provision of advice and training and advancing the educational development and care of children especially those under the age of five and advancing th¢ education of those responsible for their day to day care.
Report of the SUpei$0ry Board (continued) Activities The principal activities of Turning Lives Around during the year continued to be the provision of supported housing for single homeless people. Turning Lives Around continues to provide supported housing and floating support services throughout the cities of Leeds and Wakefield, for which demand remains high. From April 2023 the activities of Business 900 CIC were transferred to TLA under the name Cleanstart. During the year no material goods or services were donated to the charity to further its objectives or activities. The strategies employed to assist the charity to meet its objectives includ¢ the following: Providing a range of services that are reflective of relevant quality standards and addressing the potential issues related to drug and alcohol misuse. Providing a floating support service to men and women at risk of losing their tenanci¢s as a result of drug and alcohol abuse. Providing accommodation with support, advice and basic skills traÉning for young people. Providing accommodation and support to men and women who display a number of long standing support needs, which prevent them from living safely and independently within the community. Partner Agencies Accent Group Leeds Federated Housing Association Children in Vulnerable Accommodation (CHIVA) Leeds Metropolitan University Connect Housing Leeds University Drugs & Offender Management Unit (DOMU) Leeds Youth Offending Team (YOT) Huddersfield University Places for People Leeds Children's Fund Sanctuary Housing Association West Yorkshire Probation Service Foundation UK Gipsil Invest North Ltd Unity Homes Touchstone Leeds City Council Wakefield City Council Financial Review and Funding Sources The year 2023-2024 was still ¢xperiencing problems in recruitment and retention and although the influence was not as financially severe as the previous year the problem has not gone away. After a very intense review of the organisation's funding it was apparent a necessary change was required so that TLA could properly recover the costs associated with managing all the properties utilised throughout its services, The financial year to 31 March 2024 benefitted from an uplift in funding for the support contracts, a detailed rent review was undertaken and from improvements made in managing voids and controlling costs where possible. The majority of services generated a surplus during the year to 31 March 2024. A welcome return to an overall surplus for the organization after previous years deficits begins to rebuild the charity's reserves from a very depleted position. Each service continues to deal with increasingly challenging clients and to their credit mostly successfully.
Report of the supeiS0ry Board (continued) The future is still going to be challenging, contract renewals and the negotiations associated with those renewals will be important for the future success of the charity. TLA is currently in the process of extending some of these contracts for a further 3 years, these are anticipated to be renewed by the end of 2024. The organization continues with fundrdising activities aimed at the private sector, philanthropic organizations and also from individuals. The Statement of Financial Activities (SOFA) for both the main charity and the group made a surplus of £410,362 in the year. See reserves policy set out below for the impact this has had on the charities reserves. Principal FuDding Sources Leeds City Council Neighbourhoods and Housing Department Leeds City Council Social Services Department Wakefield City Council Housing Sustainrnent Pathway Capital Funding Right to Buy Replacement Program Funding Other Charity Funding Henry Smith Charity Basis Achievements and Performance The Services The main area of charitable activities continues to be provision of accommodation with support and outreach work for vulnerable homeless people. TLA works across all the geographical locations in Leeds and Wakefield. TLA provides housing and support services to people struggling to cope with a broad range of issues includtng mental health, learning difficulties, drug and alcohol abuse, dom¢stic violence, refugees and offending integration. Our aim is to support people in developing the skills, knowledge and confidence necessary to live successfujly and safely in their own homes and to engage effectively within their comrnunity. Every year we regularly seek the views of all our stakeholders by means of a questionnaire. The returned questionnaires are analysed and any suggested improvements to our services are addressed. Perfornlance in all contracts has been successful and the charity continues to strive for and safeguard healthy reserves. Measures or indicators to assess performance include: monthly Management Accounts compared to budgets, cash flow management and forecasts, void perfonnance by service and for the organisation, planned outcomes, client outcomes, complaints and incidents, utilisation levels of properties and stsff attendance.
Report of the Supervisory Board (continued) Safeguarding TLA continues to place the Safeguarding of adults and children central to all the work we do. We have highly experienced and well trained Senior Managers who lead on Safeguarding issues and all staff regularly receives Safeguarding training. Future Plans TLA is investing in the purchase of propertics to increase it's own stock. TLA is working towards becoming a Registered Provider of Social Housing. TLA also plans to further its work in related arcas and to extend its services further into differcnt regions within Yorkshire. TLA seeks to advance its Commitment to a social ent¢ry)risc and now operates a work-focus¢d initiative to employ and train existing service users. Fixed assets Movements in fixed assets are shown in note 14 in the financial ststements. Reserves policy In line with the Charity Commission guidelines the Members of the Supervisory Board have fomiulated a reserves policy to ensure that a minimum level of reserves is maintained to ensure that Turning Lives Around can continue to provide a level of service having regard to possible future fluctuations in both income and expenditure. As set out and explained in note 21, the charity has a number of designated reserves to meet specific expenditure as well as an unrestricted general reserve. These reserves are set out below; 2024 Consol'd 2023 Consol'd Charity Charity Restricted Funds (note 20) Designated Reserves (note 21) General Reserv¢s (note 21) 354,368 111,448 496,661 354,368 111,448 496,661 312,550 74,141 119,358 312,550 74,141 119.503 Total before pension liability Pension R¢serv¢ (not¢ 21) 962,477 962,477 506,049 506,194 962,477 962,477 506,049 506,194 The WYPF scheme is presently reporting a surplus, however, as recognition of the asset is govemed by FRS J 02 and due to the uncertainty of gaining any economic benefit the trustees have concluded to report neither an asset nor a liability at the year-end date which more accurately reflects the position.
Report of the Supervisory Board (continued) Risk management The Supervisory Board has conducted its own review of the major risks to which the Charity is exposed and systems have been established to mitigat¢ those risks. Significant external risks to funding have led to the development of a forward plan which has allowed and will allow for the diversification of funding and activities. Int¢rnal risks are minimised by the implementation of procedures for authorisation of all transactions and projects and to ensure consistent quality of delivery for all operational aspects of the Charitable Company. These procedures are continuingly being reviewed to ensure that they still meet the needs of the Charity and also to identify new areas in which the Charity could contribute to the disadvantaged of the city. Statement of the responsibilities of tbe members of the Supervisory Board The trustees (who are also directors for the purposes of company law) are responsible for preparing the Trustees. Annual Report and the financial ststements in accordance with applicable law and regulations. Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial ststements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 charitable company and of the income and expenditure of the charitable company for that period. In preparing these financial statements, the trustees are required to: select suitable accounting policies and then apply them consistently. observe the methods and principles in the Charities SORP" make judgments and accounting estimates that are r¢asonabl¢ and prudent. prepare the financial ststements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. and state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial stat¢ments. The trustees are responsible for keeping adequate accounting records that arc sufficient to show and explain the charitsble company's transactions and disclose with reasonable accuracy at any time the fmancial position of the charitable company and enabl¢ them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the corporate and financial infomation included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
10 Report of the Supervisory Board (continued) Statement as to disclosure of information to auditors In accordance with company law, as the company's directors, we certify that: so far as we are aware, there is no relevant audit information of which the company's auditors are unaware. and w¢ have taken all the steps that we ought to have taken as directors in order to make oursclves aware of any relevant audit infonnation and to establish that thc company's auditors are aware of that inforniation. Auditors A resolution proposing that Brown Butler Chartered Accountants be reappointed as auditors of the charity will be put to the Annual General Meeting. Public benefit The Supervisory Board have had regard to the Charity Commission's guidance on public benefit and confimi that this guidanc¢ fonns the basis of planning decisions at both strategic and operational levcls. The report of the members of the Supervisory Board was approved on 22. October 2024 and signed on their behalf by: D Marriott BA FCCA Secretsry
Independent Auditor?s Report to the Members of Turning Lives Around Ltd Opinion We hav¢ audited the financial statements of Turning Lives Around Ltd (the "charitable parent company") and its subsidiaries (the "group") for the year ended 31 March 2024, which comprise the Consolidated and Company Statement of Financial Activities, the Consolidated and Company Balance Sheets, the Consolidated Cash Flow Statement 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 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: give a true and fair view of the state of the group's and charitable parent company's affairs as at 31 March 2024 and of the group's incoming resources and application of resources, including its income and expcnditurc, 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 Companies Act 2006" hav¢ been properly prepared in accordance with the Charities SORP FRS102 (October 2019) and the Charities Act 2011. Basis of 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 ststements section of our report. We are independent of the group and charitable parent company in accordance with the ethical requirements that are relevant to our audit of the fknancial 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 appropriat¢ 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 perforn]cd, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group, s or charitable parent company, s ability to continue as a going concern for a period of at least twelvc months from when the financial ststements 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. Continued on next page
12 Independent Auditor's Report to the Members of Turning Lives Around Ltd Continued from previous page Other information The other inforniation comprises the inforn]ation included in the trustces, annual report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other inforniation contsin¢d within the annual report. Our opinion on the financial statements does not cover the other infonnation and, except to the extent oth¢nvise explicitly stated in our report, we do not express any forn] of assurance conclusion thereon. Our responsibility is to read the other nformation and, in doing so, consider whether the other infonnation is materially inconsistent with the financial statements, or our knowjedgc obtsined in the course of the audit, or otherwise appears to b¢ materially misststed. If we identify such material inconsistencies or apparent material mASStat¢ments, we are required to dcterniine whether this gives rise to a material misstatement in the financftal ststements themselves. If, based on the work we have perfornied, we conclude that ther¢ is a material misstatement of this other infornlation, we ar¢ required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: the inforniation given in the trustees, annual report (incorporating the strategic report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and the trustees, annual report has been prepared in accordance with applicable legal requirements, Matters on which we are required to report by exception In the light of the knowledge and understanding of the group and charitable parent company and their environment obtained in the course of the audit, we have not identified material misstatcments in the trnst¢es' annual report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities Act 201 I requir¢s us to report to you if, in our opinion: adequate accounting records have not been kept by the charitable parent company, or returns adequate for our audit have not been received from branches not visited by us. or the charitsble parent company's fjnancial statements are not in agreement with the accounting records and returns. or certain disclosures of trustees, remuneration specified by law are not made; or we have not received all the infOrnll0n and explanations we require for our audit. Continued on next page
13 Independent Auditor's Report to the Members of Turning Lives Around Ltd Continued from previous page Responsibilities of trustees As explained more fully in the trustees, responsibilities statement set out on page 9, the trustees (who are also the directors of the charitsble company for thc purpose of company law) are responsible for the pr¢paration of the financial statements and for being satisfied that they give a true and fair vicw, and for such intemal control as the trustees deterniine is necessary to enable the preparation of financial statem¢nts that are free from material misstatement, whether duc to fraud or error. In Preparing the financial statements, the trustees are responsible for assessing the group's and charitable parent company's ability to continue as a going Conce disclosing, as applicable, matters related to going concem and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or ceas¢ operations, or have no realistic alternative but to do so. Auditor's rnsponsibilities for th¢ audit of the financial statements We have been appointed auditor under th¢ Companies Act 2006 and report in accordance with this ACL 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. A further description of our responsibilities for the audit of the financial statements is available on the Financial Reporting Council, s website at www.frc.org.uldauditorsresponsibilities. This description fornis part of our auditor's report. Capability of the audit in detecting irregularities, including fraud Irregulariti¢s, 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 key laws and regulations we have considered in this context included the Companies Act 2006, the Charities Act 2011, pension and tax legislation together with the Charities SORP FRS102 (October 2019). In addition, we have 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 group, s and charitable parent company's ability to operate or to avoid a material penalty. The extent to which our procedures are capable of detecting irregularities. including fraud is detailed below: Using our general commercial and sector experience and through discussions with the trustees and other management, we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements as well as those arising from management, s own assessment of the risks that irregularities may occur either as a result of fraud or error. We examined the group, s and charitable parent company's regulatory and legal correspondence and discussed with the trustees and other management any known or suspected instances of fraud or non-compliance with laws and regulations. Continued on next page
14 Independent Auditor's Report to the Members of Turning Lives Around Ltd Continued from previous page Capability of the audit in detecting irregularities, including fraud - continued We communicated identified laws and regulations and potentiat fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. In addressing the risk of management override of controls, we tested the appropriateness of journal entries and we perfomied analytical procedures to identify any unusual or unexpected relationships. We also challenged assumptions and judgements made by management in their signifEcant accounting estimates and judgements. We also discussed related paty relationships and transactions involving them. There are inherent limitations in the audit procedures described above and the further removed non- compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentstion, or through collusion. Use of our report This report is made solely to the charitable parent 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 parent company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent pennitted by Law, we do not accept or assume responsibility to anyone other than the charitable parent company and the charitable parent company, s members, as a body, for our audit work, for this report, or for the opinions we have fom]ed. Nicola Taylor (Senior Statutory Auditor) For and on behalf of Brown Butler Chartered Accountants and Statutory Auditor Leigh House 28-32 St Paul, s Street Leeds LSI 2Jr
15 Charity onty Statement of Financial Aetivities (incorporating an Income and Expenditure Account) For the year ended 31 March 2024 Unrestricted Designated Restricted Funds Funds GeDerAI Funds TOTAL 2024 TOTAL 2023 Notes INCOME FROM: Donations and legacies Charitable aetivitles: Contra¢1 funding Income from rent Other Trading Activlties Investments 45,575 63,862 109,437 114,334 2,893,511 4,508,181 51,677 49,783 2,943,294 4,508,181 51.677 2,765,214 3,743,931 Totsl 7,498946 63,862 49,783 7,612,591 6,623,484 EXPENDITURE ON . Raising funds Charitable activities: Support S¢rYices Housing Management Other Chariiable Services 93.453 93.453 36.590 3,273,132 3.662,350 8,733 156,451 7,965 3,289,830 3.818.801 3,138,159 3,855.070 Total 7.028 35 165,184 7965 7202 084 7,029,819 Net Income l (Expenditure) Gross transfer between funds Net Ineome l (Expenditure) 470,011 138,629 331J82 (101,322) 138,629 37J07 41,818 410,507 (406,335) 41,818 410,507 (406J35) Other recognised gains & losses Gains on revaluation of assets Actuarial gains on defined benefit p¢nsion scheme Exceptional Item Impairnicnt Business 900 22,921 22,921 16,482 23,000 23,000 571,000 (17,068) Net mov¢ment in Funds Reconciliotion offunds Funds at l April 2023 377J03 37,307 41,818 456,428 164,079 119,358 74,141 312,550 506,049 341.970 496,661 111,448 354J68 962,477 506,049 Funds at 31 M*reh 2024 All the charitable company's activities derive from continuing operations during the above financial periods. The notes on pages 20 to 44 form part of these financial statements.
16 Consolidated Statement of Financial Activities (incorporating an Income and Expenditure Account) For the year ended 31 March 2024 Unrestrieted D1gted Restricted Fund8 Funds G¢neral Funds TOTAL 2024 TOTAL 2023 Notes INCOME FROM: Donations and legacies Charitable activities: Contract fitnding Income from rent Other trading aetivitffies Investments Total 45,575 63,862 109,437 114.334 2.893,511 4,508,181 51,677 49,783 2.943,294 4,508,181 51,677 2,765,214 3,743,931 34,791 7 498 946 63062 7 612J91 6,658 275 EXPENDrruRE ON . Raising funds Cbaritable Activities: Support S¢rvices Housing Management Other Charitsble Services Other costs Corporation tsx 93,455 93,455 184.953 3.273.140 3.662,485 8.733 156.451 7,965 3,289.838 3,818.936 3,138,159 3,774,632 7.10 Total 7,029 080 165 184 7.965 7 202229 7,1197 744 Net Income l (Expenditure) Gross transfer betwe¢n funds Net In¢ome l (Expenditure) 469,866 138 629 331237 (101,322) 138,629 37J07 41,818 410,362 (439.469) 41,818 410,362 {439,469) Other reeognised gains & losse5 Gains on revaluation of assets Actuarial gains on defined benefit pension scherne Exccptional Item Impaimient Business 900 Net movement in Funds Reconciliatlon offun&¥ Funds at l April 2023 22,921 22,921 16,482 23,000 23,000 571,000 377,158 37J07 41818 456,283 148,(J13 119,503 74,141 312,550 506,194 358,181 506,194 Funds 8t 31 March 2024 496,661 111,448 354J68 962,477 All the Charitsble company's activities derive from continuing operations during the above financial periods. The notes on pages 20 to 44 form part of these financial slatements.
17 Company Number 1790817 Charity only Balance sheet as at 31 March 2024 Note 2024 2023 FIXED ASSETS Intangible aSts Tangible assets Investments 13 14 15 1,157,599 1,026,995 1,157,599 1,026,995 CIJRRENT ASSETS Debtots Cash at bank and in hand 16 657,844 366,215 1,024.059 553,201 65,358 618,559 CiJRRENT LIABILrriES Creditors - amounts falling due within one year 17 787,043 787,043 891,192 891,192 NET CURRENT ASSETSI(LIABILrrIES) 237,016 272,633 TOTAL ASSETS LESS CURREIYT LIABILITIES 1,394,615 754,362 Creditors- amounts falling due after one year Provisions for liabilities 18 19 297,257 134,881 248,314 NET ASSETS excludlng pension lfiability 962,477 506,049 Defined pension s¢heme liability 28 NET ASSETS incl pension liabllity 962,477 506,049 THE FUNDS OF THE CHARITY Restricted Funds 20 354,368 312,550 Unrestricted Funds 21 608,109 193,499 Pension Reserve 21 Total Funds 962 477 506,049 These fmancial statrments were approved and authorised for issue by th¢ Supervisory Board on 22. October 2024 and signed on it behalf by Martin Ford The notes OD pages 20 to 44 form part of these financial statements.
18 Company Number 1790817 Consolidated Balance sheet as at 31 March 2024 Note 2024 2023 XED ASSETS Intangible assets Tangible assets 13 14 1,157,599 1,157,599 1,033,388 1,033,388 CURRENT ASSETS Debtors Cash at bank and in hand 16 657,844 366,215 1,024,059 552,986 73,228 626,214 CURRENT LIABILrrIEs Creditors - amounts falling due within one year 17 787,043 787,043 901,392 901,392 IYET CURRENT ASSETSI(LIABILITES) 237,016 275,178 TOTAL ASSETS LESS CURRENT LIABILITIES 1,394,615 758,210 Credilors - amounts falling due after one year Provisions for liabilities 18 19 297,257 134,881 252.016 IYET ASSETS excluding pension liability 962,477 506,194 Defined pension scheme liability 28 NET ASSETS incl pension liabillty 962 477 506,194 THE FUNDS OF THE CHARITY Restricted Funds 20 354,368 312.550 Unrestri¢ted Funds 21 608,109 193,644 Pension Reserve 21 Total Funds 962,477 506,194 Th¢se financial statements were approved and authorised for issue by the Supervisory Board on nd 22 October2024 and signed on its behalf by Martin Ford The notes on pages 20 to 44 form part of these financial statements.
19 Consolidated cash flow statement for the year ended 31 March 2024 Note 2024 2023 Net cash flow from operating activlties 26 442,094 (56,005) Corporation tax Cash flow from investing activities Payments to acquire tangible fjxed &8sets Interest received (149,334) (94,547) Net cash flow frorn investing activities 149,332 94,542) 292,762 {150,547) Cash flow from financing activitles New loans Loan repayments Finance lease repayments Hire purchase repayments Interest paid 66,000 (14,736) (14,734) (8,512) (27,792) (12,078) (16,326) (4,810) (15,762) Net cash flow from financing activities 226 48,976 Net increasel(decrease) in cash 292,988 (199,523) Cash at l April 2023 73,227 272,750 Cash at 31 March 2024 366,215 73.227 The notes on pages 20 to 44 form part of these finAncir41 statements.
20 Not to financial statements for the year ended 31 March 2024. General information Turning Lives Around is a company limited by guarantee and has no share capitsl. The liability of each member in the event of a winding up is limited to £ l. The charity is incorporated in England & Wales, is registered as a charity with the Charity Commissioners and is also a public benefit entity as defined by Financial Reporting Standard 102 the "Financial Reporting Slandard Applicable in the UK and Republic of Ireland" (FRS 102). Its registered office and principal place of business is:_ Photon House Percy Street Leeds LS12 IEL Summary of significant accounting policies 2.1 Basis of preparation The fmancial statements hav¢ been prepared in accordance with applicable accounting standards including FRS 102 (2022), the Accounting and Reporting by Charities: Statemcnt of Recommended Practice applicable to charitics preparing their accounts in accordance with the Financial R¢porting Standard applicable in the UK and Republic of Ireland (FRS 102) (SORP (FRS 102) issued October 2019) and the Companies Act 2006, The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The presentation currency is £ sterling and the financial statements have been rounded to the nearest £1 . The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented, unless otherwise stated. 2.2 Funds Unrestricted funds 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 s¢t out in the notes to the financial ststements. Restricted funds ar¢ 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 cost of raising and administering such funds are charged against the specifi¢ fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Note 2 is continued on page 21
21 Notes to financial statements for the yvar ended 31 MArch 2024. 2J Income recognition All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to the income after any perfomiance conditions have been met, the amount can be measured reliably, and it is probable that the income will be received. For donations to be rccognised. the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and these require a level of performance before entitlement van be obtained, then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled. Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, they can be measured reliably, and the charity has control over the item. Fair value is det¢nnined based on the basis of the value of the gift to the charity. For example, the amount th¢ charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure. For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity however it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed. Grants are recognised at fair value when the charity has entitl¢ment after any performance conditions have been met, it is probable that the income will be received, and th¢ amount can be measured reliably. If entitlement is not me¢ then these amounts are deferred. Grants received for the acquisition of fixed assets are accounted for as restricted funds. The restricted fund is reduced by the depreciation or amortisation charges made over the expected useful life of the asset concemed. Other grants are treated as income and, where applicable, they are accounted for as restricted funds. Where the grant covers future accounting periods, the amount relating to filture periods is deferred and recognised in the correct period. 2.4 Expenditure recognition All expenditure is account¢d for on an accruals basis and has been classified under headings that aggregate all costs related to th¢ category. Expenditure is recogniscd where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required, and thc amount of the obligation can be measured reliably. 2.5 Support costs allocation Support costs are those costs that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, and administrative payroll costs. Where support costs cannot be directly attributed to particular headings, they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources. The analysis of these costs is included in note 7. Note 2 is continued on page 22
22 Notes to financial statements for the year ended 31 March 2024. 2.6 Intangible fixed assets Intangible fixed assets are measured at Cost less accumulated amortisation and any accumulated impairnient losses. Amortisation is charged so as to allocate the cost of intangible assets less their residual values over their estimated useful lives. The annual rates and method of amortisation are as follows:. Asset class Website Amortisation method and rate 20 % straight line basis 2.7 Tangible fixed assets Freehold property and leasehold property are measured at fair value at each reporting date with changes in fair value recognised in the SOFA. Other tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairnient losses. Cost includ¢s costs directly attributable to making the asset ¢apable of operating as intended. Oth¢r than freehold and leasehold properties, depreciation is provided on tsngible fixed assets on a straight line basis, at rates calculated to write off the cost. less estimated residual value, of each asset on a systematic basis over its expected useful life as follows. Leasehold improvements Motor Vehicles Furniture and equipment 5 years 4 years 2-1 O years 2.8 Impairment of fixed assets Fixed assets are assessed at each reporting date to detemine whether there is any indication that the assets ar¢ impaired. If there is an indication of possible impairment, the recoverable amount of any affectcd asset is estimated and compared to its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impainnent loss is recognised in the SOFA. The reversal of an impairnient loss is recognised immediately in the SOFA. 2.9 Investments Investments in subsidiaries are measured at cost less impaimi¢nt. 2.10 Debtors Short term debtors are measured at transaction price. less any impairn]ent. Loans receivable are measur¢d initially at fair value, n¢t of transaction costs, and are subsequently measured at amortised cost using the effective interest method, l¢ss any impaim]¢nt. 2.11 Creditors Short terni Creditors are measured at transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are subsequently measured at amortised cost using the effective interest method. Note 2 is continued on page 23
23 Notes to financial statements for the year ended 31 March 2024. 2.12 Lea Fixed assets acquired under finance lease and hire purchase contracts ar¢ included in the balance sheet at cost and an appropriate provision made for depreciation. The outstanding liabilities under such agreements less interest not yet due are included in creditors. Interest attributsble to each period is Charged to the SOFA. Operating lease rentals are charged to the SOFA as incurred. 2.13 Pensions The charity operat¢s a defined benefit pension scheme with the Local Government Pension Scheme (LGPS) and a defined contribution pension scheme. The assets of both schemes are held in separate trustee administered funds and those in the LGPS are subject to actuarial valuation. The assets and liabilities of the LGPS are measured using the roll forward approach. This approach 15 a method of approximately ca]culating pension scheme assets and liabilities by making adjustments to the results of the last full actuarial valuation exercise. The last full actuarial valuation was perfornied at 31 March 2022. The amounts charged to the SOFA are the current service costs and the costs of scheme introductions, benefit changes, settlements and curtailments. They are included as part of staff costs as incurred. Net interest on the net defin¢d benefit liability/asset is also recognised in the SOFA and comprises the interest cost on the defined b¢nefit obligation and interest income on the scheme assets, calculated by multiplying the fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations. The difference between the interest income on the scheme assets and the actual r¢turn on the scheme assets is recognised in other recognised gains and losses. Actuarial gains and losses are recognised immediately in other recognised gains and losses. The pension costs charged to the SOFA regarding the defined contribution scheme are the premiums payable in respect of the accounting period. 2.14 Taxation The charity considers that it meets the definition of a charitabl¢ company for UK corporation tax purposes and is accordingly potentially exempt from tax in respect of its income and gains. 2.15 Going concern The financial ststements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for a minimum of 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern. 1¥4ote 2 is continued on page 24
24 Notes to financial statements for the year ended 31 March 2024. 2.16 Critical accounting estimates and assumption The charity makes estimat¢s and assumptions concerning the future and the resulting accounting estimates and assumptions will, by definition. seldom equal the related actual results. The main area of estimates and assumptions that have a significant risk of causing a material adjustment to th¢ carrying amount of assets and liabilities within the next financial yvar relate to the estimates used in valuing the Local Government Pension Scheme {LGPS) and the properties held at fair value. The present value of the LGPS defjned benefit assetlliability depends on a number of factors that are d¢tern]ined on an actuarial basis using a variety of assumptions. The assumptions used in detem1ining the net cost/income for pensions include the discount rate. Any Changes in these assumptions. which are disclosed in note 28, will impact the carrying amount of the pension assevliability. Furtherniore a roll forward approach which projects results from the latest full actuarial valuation perfonned at 31 March 2022 has been used by the actuary in valuing the pensions assets and liabilities at 31 March 2024. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension asset/liability. The carrying amount of the properties held at fair value are disclosed in note 14. Donations and legacies Charity and Consolidated Unrestricted General Designated Restricted Total 2024 Total 2023 Donations Other grants Sundry income 56,461 7.401 56,461 52,976 4,237 108,970 1,127 114J34 45,575 45,575 63,862 109,437 Income from donations and legacies in the year ended 31 March 2023 was £114,334 of which £89,942 was attributable to general funds and £24,392 attributable to designated funds.
25 Notes to financial statements for the year ended 31 Mar¢h 2024. Charitable activities Charity and Consolidated Unrestricted General Designated Restricted Total 2024 Total 2023 Contract funding Leeds City Council Neighborhood's and Housing Strategy & Commissioning Wakefield City Council Housing Sustainment Pathway Other grants 2,263,962 2,263,962 2,170,763 627,638 1,911 2,893,511 627,638 49,783 51,694 49,783 2,943,294 495,400 99,051 2 765,214 Income from contract funding in the year ended 31 March 2023 was £2,765,214 of which £2,694,613 was attributable to general funds and £70,601 was attributable to restricted funds. Ineome from rent Turning Lives Around provides accommodation for single homeless people. For the majority of residents their only financial support is state benefit. Turning Lives Around charges rents to its residents. The rate at which rent is charged is regulated by the housing associations that it works in partnership with. Total Total 2024 2023 Unrestrieted General Desfignated Restricted Rent recelvable Voids Bad debts written-off 4,945,672 4,945,672 4,266,057 (347.173) (347,173) (430,812) 90,318 90,318 91,314 4,508,181 4,508,181 3,743,931 Income from rent in the year ended 31 March 2023 was £3,743,931 all of which was attributable to general funds. Other trading activities Charity only Unrestrieted General Designated Restricted Total 2024 Total 2023 Cleaning services Grant income 51,677 51,677 51,677 51,677 Other trading activities Consolidated Unrestricted General DesignAted Restricted Total 2024 Total 2023 Cleaning services Grant income 51,677 51,677 34,791 51,677 51,677 34,791 Other trading activities in th¢ year ended 31 March 2023 was £34,791 all of which was attributable to general funds.
26 Notes to financial statements for the year ended 31 Mareh 2024. Income from investments Charity and Consolidated Unrestricted General Designated Restricted Total 2024 Total 2023 Bank interest received Income from investments in the year ended 31 March 2023 was £5 all of which was attributable to general funds. Expenditure on Charity only Unrestrieted General Designated Restricted Total 2024 Total 2023 Raising funds Costs re investment properties Fund raising activities Charitable Activities: Contract Funding Support Services Hoxsing Management Other Charitable Activities 93,453 93,453 36,590 3,273,132 3,662,350 8,733 156,451 7.965 3,289,830 3,138,159 3,818,801 3,855,070 7,028,935 165,184 7 965 7,202,084 7,029,819 Expenditure for the year ended 31 March 2023 was £7,029,819 of which £6,977,785 was attributable to general funds, £44,069 was attributable to designated reserves and £7,965 was attributable to restri¢ted reserves. Gov¢rnance Costs included within support costs 2024 2023 Audit and accountancy fees Legal and professional fees Annual general meeting costs 16,800 l9,433 1,379 37,612 13,980 23,081 38,071 Note 7 is continued on page 27
27 Notes to financial statements for the year ended 31 March 2024. ,141'111'., th88 t&*p ¢4 ty-•Sffj el %x- 111È1111'21È11 Note 7 is continued on page 28
28 Notes to financial statements for the year ended 31 March 2024. Expenditure on, continued from page 27 Consolidated Unrestricted General Designated Restricted Total 2024 Total 2023 Raising funds Trading costs Fund raising activities Charitable Activities: Contract Funding Support Services Housing Maxagement Other Charitable Activities 148,363 36,590 93,455 93,455 3,273,140 3,662,485 8,733 156,451 7,965 3,289,838 3,138,159 3,818,936 3,774,632 7,029,080 165,184 7,965 7.202,229 7,097,744 Other costs Corporation Tax 7,029,080 165,184 7,965 02,229 7,097,744 Expenditure for the year ended 31 March 2023 was £7,097,744 of which £7.045,710 was attributable to general funds, £44,069 was attributable to designated reserves and £7,965 was attributable to restricted reserves. Consolidated governance Costs included within support costs 2024 2023 Audit and accountancy fees Legal and professional fees Annual general meeting costs 16,800 19,433 1,379 37,612 18,008 23,081 1,010 42,099 Note 7 is continued on page 29
29 Notes to financial statements for the year ended 31 March 2024. •è wi ¢Nth* sisTrY 111111111111111111 Illkllllllllllll Jllj I Ill Iliilli I li
30 Notes to financial statements for the year ended 31 March 2024. Net in¢omingl(outgoing) resources for the year 2024 Consol'd 2023 Consol'd Charity Charity Depreciation Amortisation Operating lease charges Interest on loans Interest on finance leases Interest on hire purchase Finance costs on LGPS Pension 48,044 48,044 47,386 2.433 48,419 11,685 2,710 52,984 2,433 48,419 11.685 2,710 1,367 14,000 49.096 22,535 2,710 2,547 17.000 49,096 22,535 2,710 2,547 17,000 14,000 Auditor's remuneration 2024 2023 Audit fee in respect of the financia] statements 14,025 12,825 Other fees payable to auditor . Audit of the charity, s subsidiaries Tax compliance services Non audit services 3,490 180 3,475 7,145 3,315 3,315 10 Tax on net income Consolidated 2024 2023 Current Taxation UK Corporation Tax Adjustment to prior year Deferred taxation OTigination and reversal of timing differences Tax on net income The tsx charge for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of 250/0 (2023: 19 %). The differences are reconciled below: 2024 2023 Net income before tax 495,243 (439,469) Corporation tax at standard rate Effects of net (income)lexpenditure exempt from taxation Effects of expenses not deductible for tax purposes Effect of taxation losses Adjustment to prior year Totsl tax ¢harg¢ 123,811 {123,811) (83,499) 89,795 (904) (5,392)
31 ly0t to financial statements for the year ended 31 March 2024. 11 Material transfers between funds There was a £134,881 transfer from general funds to the newly fornied Dilapidation fund to cover the in year £134.881 provision charge and any future costs. 12 Staff cost5 and numbers 2024 Charity Consol'd 2023 Consol'd Charity Salaries and wages Social Security Costs Pension contributions Contributions to defined contribution scheme Operating costs re defined benefit scheme 3.547,082 3,547,082 3,123,002 310,824 310,824 279,400 3,222,882 287,024 91,163 91,163 83,369 86,179 40,000 40,000 59,000 59,000 3,989,069 3,989,069 3,544,771 3,655,085 The above figures include £23.930 made in respect of redundancy and tern]ination payments. (2023: £28,000) 2024 2023 Employees paid between £60,00 l and £70,000 £70,001 and £80,000 £80,001 and £90,000 No remuneration was paid during the yvar to any member of the Supervisory Board, nor were there any expenses reimbursed to them. In addit20n, during the year, M White charged the charitsble company £17,150 (2023: £11,050) in respect of consultancy fees. The average weekly number of employees during the year, analysed by function, was: 2024 2023 Charity Consol'd Charity Consol?d 124 124 118 118 Number of employees Support Services & Housing Management Other Charitable Services Support costs 135 135 129 135
32 Notes to financial statements for the year ended 31 March 2024. 13 Intangible red assets Parent & Consolidated Website Total Cost At 31 March 2023 At 31 March 2024 Amortisation At 31 March 2023 Charge for the year At 31 March 2024 Net Book Value At 31 March 2023 At 31 March 2024 12,162 12,162 12,162 12,162 12,162 12.162 12,162 The amorti7Ation charge for the year is included within the SOFA heading of expenditure on charitable activities. The intangible fixed assets have been pl¢dged as security for liabilities of the charity. 14 Tangible red assets Freehold Leasehold Leasehold Motor Property Property Improvements Vehicles Furniture & Equipment Total Cost I valuation At l April 2023 Additions during yvar Disposals during the year Revaluation At 31 March 2024 Depreciation At l April 2023 Charge for year Relating to disposals At 31 March 2024 730,000 170,000 122,079 10.977 518,501 1,429,478 18,896 155,727 14,752 17,921 5,000 870,000 175,000 22,921 537.397 1,608,126 10.977 14,752 10,977 391,506 44,795 402,483 48,044 3,249 10,977 3,249 436,301 450,527 Net Book Value At l April 2023 730,000 170,000 126,995 1,026,995 At 31 March 2024 870 000 175 000 11,503 101,096 1,157,599 The tangible fixed assets have been pledged as security for liabilities of the charity. The freehold properties and the leasehold property were revalued on 31 March 2024 by an independent valuer, Bramleys LLP. who ar¢ RICS registered. The basis of this valuation is fair value using the vacant possession method.
33 otes to financial statements for the year ended 31 March 2024. 14 Tangible rued assets, continued from page 32 The historical cost of the properties included at valuation is as follows:. Freehold L*asehold properties Property Total Cost Accumulated d¢pre¢iation 799,051 15,449 194,041 11,912 993,092 27,361 783,602 182,129 965,731 Consolidated Furniture Freehold Leasebold Le8sehDld Properties Property Imprnv¢ments Total Motor Vehicles Equipment C05t I valuation At l April 2023 Additions during year Disposals during year Revaluation At 31 March 2024 730,000 122,079 170,000 10,977 21,600 8,394 519,307 1,451,884 18,861 149,334 17,921 870,000 5,IM)O 175,000 22,921 538,168 1,624,139 10,977 29,994 DepreciatloD At l April 2023 Charge for year Relating to disposals Impairnient At 3 l March 2024 Net Book Value At l April 2023 10,977 15,242 3,249 392,277 44,795 418,496 48,044 10,977 18,491 437,072 466,540 730,000 170,000 6J58 127,030 1,033,388 At 31 March 2024 870,000 175,000 11,503 101,096 1,157,599 The tangible fixed assets have been pledged as security for liabilities of the charity. Note 14 is continued on page 34
34 Notes to finaneial statements for the year ended 31 March 2024. 14 Tangible fixed assets, continued from page 33 The freehold properties and leasehold property were valued on 31 March 2024 by an independent valuer, Bramley's LLP, who are IUCS registered. The basis of this valuation is fair value using the vacant possession method. The historical cost of the properties included at valuation is as follows. Freehold Leasehold property Property Total Cost AccumuEated depreciation 799,051 15,449 194,041 11,912 993,092 27,361 783,602 182.129 965,731 15 Investments held as fixed assets Charity only Subsidiary undertakings Total Cost At l April 2023 Transfers Revaluation Addition5 At 31 March 2024 Net book value At l April 2023 At 31 March 2024 Note 15 is continued on page 35
35 Notes to financial statements for the year ended 31 March 2024. 15 Investments held as fixed assets, continued from page 34 Charity only Details of undertakings In the opinion of the trustees, the aggregate value of the company's investment in the subsidiary undertaking is not less than the amount included in the balance sheet. From l April 2023 the activities of Business 900 CIC were transferred to Turning Lives Around Ltd. On 23 April 2024 Business 900 CIC was dissolved. Business 900 Community Interest Company Undertaking Company number Holding Proportion of voting rights and shares held 06913644 The undertaking had the following regist¢red office address :. 4 Ashbrooke Business Park Parkside Lane Leeds West Yorkshire LSII 5SF 16 Debtors 2024 2023 Charity Consol'd Charity Consol'd 482,178 482,178 344,853 344,853 29,632 40,917 40,917 37,022 134,749 134,749 141,694 657,844 657,844 553,201 Due within one year: Net rents in arrears Amounts owed by group undertaking Other debtors Prepaid expenses 63,602 144,531 552,986 The debtor balances of £657,844 (Charity) (2023: £553,201) have been pledged as security for liabilities of the charity.
36 Notes to financial statements for the year ended 31 March 2024. 17 Creditors 2024 2023 Charity Consol9d Charity Consol'd 13,981 14,734 4,810 Amounts falling due within one year: Bank loans OblAgations under finance leases Hire purchase creditors Amounts owed to group undertaking Trade creditors Other creditors Social security and other tsxes Accruals and deferred income 16,301 16,301 13,981 14,734 16,010 263,566 263,566 407,964 169,158 169,158 161,652 73,495 73,495 64,238 264,523 264,523 212,613 787,043 787,043 891,192 412,639 164,432 74,419 216,377 901 J92 The bank loans ar¢ secured by way of fixed and floating charges over the assets of the company. 18 Creditors - Amounts falling due after one year: 2024 2023 Charity Consol'd Charity Consol'd 297,257 297,257 248,314 248,314 Bank loans Finance loan creditors Hire purchase creditors 3,702 297,257 297,257 248,314 252,016 The bank loans are secured by way of fixed and floating charges over the assets of the company. Thc bank loans include £250,890 (2023: £203,515) which fall due after five years and are rcpayable by instalm¢nts. 19 Provisions for liabilities: 2024 2023 Charity Consol'd Charity Consol>d At l April 2023 Increase in provision At 31 March 2024 134,881 134.881 134,881 134,881 Analysis of provisions for liabijities Dilapidations The charity expects £50,000 of the provision to be Consumed during the year ending 31 March 2025, with the remaining amount recalculated on an annual basis. 134,881 134,881
37 Iyotes to financial statements for the year ended 31 March 2024. 20 Restricted funds Charity and Consolidated Gains, Incoming Outgoing losses and Funds Funds transfers Balance 01.04.2023 B812nce 31.03.2024 (i) Dewsbury Road Day C¢ntre Fund (li) Sahara Nationality Fund (iii) Sahara Women Without R¢course Fund (iv) Sinclair DAT Fund (v) LCC Refurbishm¢nt Fund (vi) Tempest Road Development Fund (vii) Right to Buy Fund (viii) ComputerllT Fund 155,060 155,060 666 666 5,092 127,838 23,894 5,092 177,621 15,929 49,783 (7,965) 312,550 49,783 (7,965) 354J68 Gains, Incoming Outgoing losses and Funds Funds tran$fer5 BalaDce 1)1.04.2022 Balance 31.03.2023 (i) Dewsbury Road Day Centre Fund (li) Sahara Nationality Fund (iii) Sahara Women Without Recourse Fund (iv) Sin¢lair DAT Fund (v) LCC Refurbishment Fund (vi) Tempest Road Development Fund (vii) Right to Buy Fund (viii) Computer/IT Fund 155,060 155,060 3,500 (3,500) 11,118 29,120 666 (11118) (29,120) 666 5,092 5,092 57,237 41,950 70.601 127,838 23,894 (7,965) (10,091) 303,743 70,601 (7,965) {53,829) 312,550 (i) The Dewsbury Road Day Centre Fund is created to account for capital grants received from the Community Fund and Leeds City Council, in connection with the construction and equipping of the new Day Centre premises. (li) The Sahara Nationality Fund is to provide funding for the assistance of women with problems relating to th¢ir nationality and immigration status. (iii) The Sahara Women Without Recollrse Fund is used to assist women without recourse to any state benefits and/ or those women whose applications for state benefits are still pending. (iv) The Sinclair DAT Fund relates to a grant received from ' Drugs Action Team, to pay towards the cost of setting up new offices for the Sinclair scheme. The LCC Refurbishment Fund has been set up to provide funds for the refurbishment and setting up of properties to be acquired from Leeds City Council. (vi) The Tempest Road Development Fund is created to account for a donation received from Harrogate Grammar School to assist in the refurbishment of12 Tempest Road. (vii) The Right to Buy Fund is created to account for grants received to assist with the purchase of new social housing projects. (viii) The Computer I IT Fund is created to account for funding received from the Lottery and BT to assist with IT upgrades. (v)
38 Notes to financial statements for the year ended 31 March 2024. 21 Unrestricted Funds Charity only Balance Incoming Outgoing Gains and Transfers 01.04.2023 Funds Funds losses Balance 31.03.2024 (a) General Maintenance Fund (b) Furniture Renewals Fund {c) Redundancy Fund (d) Welfare Fund (¢) Scheme Funding (D Registered Providcr Application Fund (g) Dilapidation Fund 1,180 3.072 52,067 1,180 3,072 107,196 63.862 (8,733) 17,822 (21,570) 134.881 74,141 63,862 (165,184) 119,358 7.498,946 (7.005,935) 3,748 134,881 138,629 22,921 (138,629) 111,448 496,661 GeneTal Funds Revaluation reserv¢ 193,499 7,562.808 (7,171,119) 22,921 23,000 23,000 193,499 7,562,808 7,194,119 45,921 Balance Incoming Outgoing Gains and Transfers 01.04.2022 Funds Funds losses 608,109 Pension reserve 608,109 Balance 31.03.2023 (a) General Maintenance Fund (b) Furniture Renewals Fund (c) Redundancy Fund (d) Welfare Fund (e) Scheme Funding (fj Registered Provider Application Fund 1,180 3,072 54.666 1,180 3,072 52,067 24,392 (26.991) 34,900 17,078 93,818 24,392 (44,069) 442,409 6,528,491 (6,904,785) 17,822 74,141 119,358 General Funds Revaluation reserve (586) 53,829 536,227 652,883 (6,948,854) 498,000 73,000 38,227 6,552,883 7,021.854 (586) 571,000 570,414 53,829 193,499 Pension reserve 53,829 193,499 Unrestricted Funds Consolidated Balance Incoming Outgoing Gains and Transfers 01.04.2023 FuDds Funds losse5 Balance 31.03.2024 (a) General Maintenance Fund (b) Furniture Renewals Fund (c) Redundancy Fund (d) Welfare Fund (e) Scheme Funding (fj Registered Provider Application Fund (g) Dilapidation Fund 1,180 3,072 52,067 1,180 3,072 107,196 63,862 (8,733) 17,822 (21,570) 134,881 74,141 63,862 (165,184) 119,503 7,498,946 7.006,080 193,644 7,562,808 (7,171,264) (23,000) 7 194,264 3,748 134 881 138,629 138,629 111,448 496,661 608,109 General Funds 22,921 22,921 23,000 45,921 Pension reserve 193,644 7,562 808 608,109 Note 21 is continued on page 39
39 Notes to financial statements for the year ended 31 March 2024. 21 UDrestri¢ted funds, eontinu¢d from page 38 BalaDee Incoming Outgofing Gains and Transfers 01.04.2022 Funds Funds losses Balance 31.03.2023 (a) General Maintenanc¢ Fund (b) Furniture Renewals Fund (c) Redundancy Fund (d) Welfare Fund (e) Scheme Funding (D Registered PovAder Application Fund 1,180 3,072 54,666 1,180 3,072 52,067 24,392 (26,991) 34,900 17,078 93,818 24,392 (44,069) 458,620 6,563,282 6,972,710 552,438 6,587,674 (7,016,779) 498,000 73,000 54 438 6 587 674 7 089,779 17,822 74,141 119,503 193,644 Generaj Funds 16,482 16,482 571,000 53,829 53,829 Pension reserve 53,829 193,644 (a) General Malntenance Fund is designated to provide for the cost of property and cyclica] maintenance, for which the rnpanY may be liable under management agr¢ements with third parties. FurniturelRenewals Fund is designated to cover the cost of essential refurbishment of properties including a g¢n¢ral furniture provision. Redund#ncy Fund is designated to provide towards redundancy costs in the event of a staff restructure or reduction in staffing numbers. Welfare Fund is designated to cover exceptional payments, made within the established policy of th¢ company, to residents who are in financial difficulty. Scheme Funding the net funds of schemes that are designated to Ix utilised by those schemes whose efforts raised those funds. Registered Provider Applicatfion Fund is designed to cover the cost of assistance in the application for the company to achieve Registered Provider of Social Housing status. Dil#pidation Fund is designed to cover the cost of repairs on the return of properties to a landlord that are managed by the charity. (b) (c) (d) (e) ifj (g) Pension ReSee The WYPF scheme is presently reporting a surplus, however, as recognition of the asset is governed by FRS102 and due to the uncertainty of gaining any e¢onomi¢ benefit the trustees have concluded to report neither an asset nor a liability at the year-end date which more accurately reflects the position. 22 Analysis of net assets between funds excluding pension liability Charity onty Total 2024 General FuDd$ Restricted Funds Tot81 2023 Fixed assets Current assets Creditors, falling due within one year Creditors, falling due more than one year Provisions for liabilities Net Assets 982,599 844,691 (787,043) (297,257) 134,881 608,109 175,000 1.157,599 1,026,995 179,368 1,024,059 618,559 (787,043) (891,192) (297,257) (248,314) (134,881 962,477 354,368 506,049 Note 22 is continued on page 40
40 Notes to financial statements for the year ended 31 March 2024. 22 Analysis of Det assets between funds excluding pension liability, continued from page 39 Consolidated General Funds Restrieted Funds Totsl 2024 Total 2023 Fixed assets Current assets Creditors, falling due within one yeaT Creditors, falling due more than one year Provisions for liabilities Net Assets 982,599 844,691 (787,043) (297,257) 134 881 608,109 175,000 1,157,599 1,033,388 179,368 1,024,059 626,214 (787,043) (901,392) (297,257) (252.016) 134,881} 962,477 354,368 506,194 23 Charitable status The company is a registered charity no 515300 and is exempt from income tax and corporation tax. The company is a limited company by guarantee and has no share capital. In the event of the winding up of the company, the liability of members is limited to a maximum of £1 each. 24 Commitments At 31 March 2024 the company had future minimum operating leases payments as follows: 2024 2023 Within one year Between one and five years Ov¢r five years 22,460 49,096 22,460 22,460 71,556 25 Related party transaction The company has taken advantage under FRS 102 not to disclose detsils of its transactions of its subsidiary. During the year, M White charged the charitable company £17,150 (2023: £ I I,050) in respect of consultancy services. 2024 2023 Key management personnel compensation
41 Notes to fmAncial statements for the year ended 31 March 2024. 26 Reconciliation of net expenditure to net ¢ash flow from operating activities 2024 2023 Net incomel(expenditure) for the year Pension scheme adjustment Interest paid Depreciation and amortisation charges and provisions (Increase)Idecrease in debtors (De¢rease)lincrease in creditors 410,362 (439,469) 23,000 73,000 27,790 15,762 182,925 55,417 (104,858) 26,236 97,125 213,049 442,094 56,005 27 Analysis of ehanges in net debt 01.04.2023 Net cash floivs Non cash movemeDts 31.03.2024 Cash 73,227 292,988 366,215 Debt due within one year Debt due after one year (33,525) {252,016) (212,314) 17,224 (45 241 264,971 (16,301) (297,257) 52,657 28 Pensions As explained at note 2.13 the company operates both a defined benefit pension scheme and a defined contribution pension scheme. The company is a member of the West Yorkshire Pension Fund (the Fund) which is part of the Local Govemment Pension Scheme (LGPS). The funded nature of the LPGS requir¢s participating employers and its employees to pay contributions into the Fund, calculated at a lev¢1 intended to balance the pension liabilities with investment assets. Inforniation on the framework for calculating contributions to be paid is set out in LPGS Regulations 2013 and the Funds Funding Strategy ststement. The last actuarial valuation was at 31 March 2022. At the year-end date, under the FRS 102 basis of calculation, the Fund Actuary has calculated the FRS102 valuation of the pension fund position to be a surplus of circa £512,000. The recognition of this asset is governed by FRS102 by the arnount of economic benefit the Trustees believe will be received by the charity either through a direct refund or through a reduction in future contributions. The Local Govemment Pension Scheme Regulations do not pern]it the re-payment of contributions or surplus assets to employers whilst they are an ongoing employer in the fund as was the position at the year<nd date. However, the Regulations do pemiit a payment of an "exit credit '*0 an employer who exits the Fund. Therefore, the Trustees have the option to consider the possibility of exiting the fund in order to obtain this economic benefit for the charity whilst market conditions are favourable. The basis on which an exit position is calculated is very different from the basis used for FRS102 calculations and could possibly be a Ilability, once calculated by the actuary. Note 28 is continued on page 42
42 Notes to financial statements for the year ended 31 March 2024. 28 Pensions, continued from page 41 Under FRS102, for recognition of the asset, we also need to consider the second basis for recognition being whether economic benefit could be gained from a reduction in future contributions. Future contributions by the charity are expected to be nil, therefore no benefit could be gained. Therefore, as the asset recognition criteria cannot be supported with certainty, the Trustees do not believe it is appropriate to recognise the FRS 102 calculated asseL as realisation of such an asset is uncertain. The Trustees have therefore concluded, due to the uncertainty detailed above, to report ncither an assct nor a liability at the year-end date which more accurately reflects the position. The Fund Administering Authority, City of Bradford Metropolitan Council, is responsible for the governance of the Fund. Th¢ key assumptions used by the actuary in updating the latest valuation of the Fund for FRSI 02 purposes were:_ 2024 2023 Discount rate for liabilities Pension increases Pension accounts revaluation rate Salaries increases CPI Inflation 4.80 2.60 2.60 3.85 2.60 4.70 2.70 2.70 3.95 2.70 Mortality assumption The mortality assumptions are based on the actual mortality experience of members within the Fund based on analysis carried out as part of the 2022 valuation and allow for expected future mortality improvements. Sample life expectsncies at age 65 resulting from these mortality assumptions are shown below. Males 2024 2023 Meniber aged 65 at accounting date 21.0 21.6 Member aged 45 at accounting date 22.3 22.9 Females M¢mber aged 65 at accounting date Member aged 45 at accounting date 24.2 24.6 25.2 25.7 Note 28 is Continued on page 43
43 Notes to financial statements for the year ended 31 March 2024. 28 Pensions, CODtinued from page 42 The approximate split of the assets of the Fund is as set out below:. 2024 2023 Equities Property Govemment bonds Corporate bonds Cash Other 79.4 80.8 100.0 100.0 The actual returns on assets are set out below: 2024 2023 Interest income on assets Gain/(loss) on assets 111,000 84.000 64,000 (28,000) Actual return on assets 195,000 36,000 The changes in the fair values of the assets were: 2024 2023 Opening fair value of assets Int¢rest income on assets Re-measurement gains/(losses) on assets Members contributions Net benefits paid out 2,412,000 111,000 84,000 11,000 (97,000) 2,394,000 64,000 (28,000) 9.000 (27,000) Closing fair value of assets 2,521,000 2,412,000 The changes in the present values of the defined benefit obligations:. 2024 2023 Opening present value of liabilities Current service costs Interest expense on defined benefit obligations Members contributions Actuarial gains on liabilities Net benefits paid out 2,032,000 40,000 94,000 11,000 (71,000) (97.000) 2,892,000 59,000 78,000 9,000 (979,000) (27,000) Closing present value of liabilities 2,009,000 2,032,000 Note 28 is continued on page 44
44 NotL8 to financial statements for the year ended 31 March 2024. Pensions, continued from page 43 The reconciliation of the funded ststus of the Fund to the balance sheet is as follows: 2024 2023 Fair value of assets Present value of funded defined benefit obligations Unr¢cognis¢d asset 2,521,000 2,412,000 (2,009,000) (2,032,000) (512,000) (380,000) Net pension asset/(liability) The split of the liabilities at the last valuation between the various categories of members is as follows: Active members Deferred Pensioners Pensioners 22% The pension costs recognised in the statement of financial activities are made up as follows:_ 2024 2023 Operating Costs :. Current service cost Finance costs :. Inter¢st costs on pension liabilities 40,000 59,000 (17.000) 14,000 23,000 (155,000) 73,000 (951,000) Actuarial gains Total pension costs recognised (132,000) (878,000) Sensitivity Analysis Base fIgure +0.1 % Discount Rate Present value of total obligation Projected service cost 2,009,000 39,000 1,975,000 38,000 2,043,000 40,000 Rate of increase in salaries Present value of total obligation Projected service cost 2,009,000 39,000 2.015,000 39,000 2,003,000 39,000 Rate of increase in pensions Present value of total obligation Projected service cost 2,009,000 39,000 2,037,000 40,000 1.981.000 38,000 Post retirement mortality assumption Present value of total obligation Projected service cost -1 year 2,061,000 40,000 +1 year 1,959,000 38,000 2,009,000 39,000