Company Number 01940104
## **DOORSTEP OF HULL**
## **A company limited by guarantee and**
**a registered charity no. 518713**
## **REPORT AND ACCOUNTS**
**for the year ended**
**31 March 2023**
**HPH Chartered Accountants 54 Bootham York YO30 7XZ**
## **DOORSTEP OF HULL**
## **REPORT AND ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
|**CONTENTS**|**_page_**|
|---|---|
|Report of the Directors and Trustees|_1 to 6_|
|Auditor's Report|_7 to 10_|
|Statement of Financial Activities and Income and Expenditure Account|_11_|
|Balance Sheet|_12_|
|Cash Flow Statement|_13_|
|Notes to the Accounts|_14 to 21_|
|_The following pages do not form part of the statutory accounts_||
|Summary Income and Expenditure Accounts|_22 and 23_|
## **DOORSTEP OF HULL**
## **REPORT OF THE DIRECTORS AND TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023**
The directors, who form part of the Management Committee and are Trustees of the Charity, have pleasure in presenting their report and the accounts for the year ended 31 March 2023.
## **Reference and Administrative Information**
Charity name: Doorstep of Hull Charity Registration Number: 518713 Company Number: 01940104 Board of Directors and Emma Fox Trustees Denis Scanlon Company Secretary: Gwyneth Sargent Management Committee: Emma Fox (Chair) Denis Scanlan (Treasurer) Karl Robinson Roz Smith Robbie Olsen Project Director: Peter Drinkell Registered Office and 151 Fairfax Avenue Administration Office: Kingston upon Hull HU5 4QZ Telephone: 01482 345006 Bankers: Santander Lloyds TSB plc Bridle Road 63-67 Newland Avenue Bootle Hull Merseyside HU5 3BG L30 4GB Auditor: HPH Chartered Accountants 54 Bootham York YO30 7XZ Solicitors: Andrew Jackson Solicitors LLP Marina Court Castle Street Hull
1
## **DOORSTEP OF HULL**
## **REPORT OF THE DIRECTORS AND TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023**
## **Structure, Governance and Management**
The Charitable Company is limited by guarantee No. 01940104 and itself and its officers are governed by the Memorandum and Articles of Association dated 16 August 1985, as amended by special resolutions passed on 21 August 1986 and 14 November 2001. The Company received charitable status, No. 518713, on 8 January 1987. In the event of the Company being wound up members are required to contribute an amount not exceeding £5.
The Directors and Trustees confirm that they believe they have complied with the duty in section 17(5) of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission.
## **Recruitment and Appointment of Management Committee**
The officers in office during the year were:
|Emma Fox - Chair|Director and Trustee|Roz Smith|Management Committee|
|---|---|---|---|
|Denis Scanlan|Director and Trustee|Robbie Olsen|Management Committee|
|Karl Robinson|Management Committee|Gwyneth Sargent|Company Secretary|
The Directors are appointed by the Management Committee at any time, provided that a maximum of fifteen is not exceeded. Directors are required to seek re-election at the first annual general meeting following election, and one third by rotation must seek re-election at every annual general meeting.
No remuneration or benefits were received by any Directors or Trustees during the year in respect of their services to the Charitable Company.
The Directors and Trustees confirm that the attached accounts comply with current statutory requirements, the requirements of its governing document and the requirements of the FRS102 Charities SORP.
## **Training of Directors/Trustees**
All Directors/Trustees are expected to be familiar with the objectives of the Charity, the practical work of the Charity, the financial position of the Charity, and the obligations of Directors/Trustees.
Trustees are appointed based on their experience in other fields and their commitment to the objectives of the Charity. New Trustees are familiarised with the work of the Charity by the Charity’s Project Director and visits to the Charity’s projects. They are also provided with information on their obligations as Charity Trustees.
## **Risk Management**
The Directors/Trustees have examined the principal areas of the Charitable Company’s operations and considered the major risks which may arise in each of these areas. In their opinion the Charitable Company has established resources and reviewed systems, which under normal conditions should allow the risks identified by it to be mitigated to an acceptable level in its day-to-day operations.
Policies and procedures are in place to ensure the health and safety of staff, and of services users and visitors to the Charitable Company's premises. Controls and procedures are in place for the authorisation of all transactions and projects.
2
## **DOORSTEP OF HULL**
## **REPORT OF THE DIRECTORS AND TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023**
## **Risk Management (continued)**
However, it should be recognised that the complexity of issues and challenging behaviour of our clients continues to escalate to the point both our day staff and night cover are stretched to capacity. Welfare of and retention of staff has to be considered a priority going forward both from the point of view of the Health and Safety of staff and the continued operation of the Charity.
## **Organisational Structure**
The Directors and Trustees are known collectively as The Management Committee and they meet six times a year. Latterly by "virtual" meetings, to administer the Charitable Company, setting and monitoring the strategic direction of the Charitable Company.
The Project Director, Mr Peter Drinkell, is delegated by the Directors/Trustees to manage the operations of the Charity. The Project Director is responsible for ensuring that the Charity delivers the services specified in the contracts that the Charity has entered into and that performance indicators are met, including performance against budget. The Project Director also attends Management Committee meetings but has no voting rights. The Practice Manager, Neil Scott, is responsible for the day-to-day operational management of the Charity’s projects, including staff supervision and the further development of skills and working practices in line with good practice.
## **Related Parties**
The Charity works within the Hull City Council’s Homeless Strategy, Housing Strategy and Prevention of Rough Sleeping Strategy. It continues to play a significant role in the strategies, especially in the provision of Supported Accommodation.
The Project Director is a member of the Hull Hostel Forum.
## **Objectives and Activities**
The principal activity of the Charitable Company is to provide, and work with other agencies for the provision of, suitable accommodation for young homeless persons.
The Charitable Company also manages hostel accommodation for a national housing association (Places for People), collecting rents and meeting expenses. This association also provides accommodation for special needs and elderly people.
The charitable objectives of the Charitable Company are the care and support of young persons and others, who are homeless and in need, or where by reasons of adverse circumstances are in need of help in acquiring a settled way of life, by providing, developing and or maintaining residential accommodation or similar facilities and to further assist those so accommodated who by reasons of any physical, psychological, emotional or social infirmity are in need of advice, counselling and any other form of aid to acquire employment, more permanent accommodation, education, training and any other benefit to assist them towards a more settled way of living in the community.
The day to day running of the Charitable Company is delegated to Peter Drinkell, Project Director, and Gwyneth Sargent, Deputy Project Director, who are appointed directly by the Directors/Trustees. Major decisions and expenditure are agreed by the management committee who meet on a regular basis.
3
## **DOORSTEP OF HULL**
## **REPORT OF THE DIRECTORS AND TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023**
## **Objectives and Activities (continued)**
## **Ensuring our work delivers our aims**
The Charitable Company reviews its aims, objectives and activities annually to ensure that that the work remains focussed on its purposes; and that its activities and the benefits achieved through those activities are continuing to meet the needs of the customers that the Charity was set up to help. We have referred to the Charity Commission's guidance on public benefit when undertaking our review and planning future activities.
## **Achievements and Performance**
During the year, Doorstep have continued to provide a comprehensive service through its own resources and in partnership with other agencies. The Charity has maintained and developed working relationships and protocols with other specialist agencies providing services which complement those provided by the Charity and meet the support needs of our residents.
There has been no reversal of cuts in Government Funding to the Local Authority and so the lack of ancillary services we referred to last year continues and we continue to attempt to "plug the gaps" where possible. With the upcoming “autumn statement” we expect this situation to worsen. Again, we have seen a significant increase in the complexity of issues of people who are referred to us.
It continues to be quite difficult to move people on into their own accommodation. Young single people are especially at risk of re-occurring homelessness as their benefit level make it almost impossible to manage the cost of living independently and budgeting their money to cover heating and light costs, council tax, water rates and food etc. Recent geopolitical events have conspired to exacerbate this problem.
## **Plans for Future Periods**
We have gone someway to achieving our plans to purchase properties having purchased five, two bed properties over the past 10 months. We have used the reserves of the Charity to fund this. This is not entirely satisfactory as financially, two bed properties are challenging as there are no economies of scale. We are still finding that many properties which appear on the market, when we investigate, do not have the relevant planning consent or cannot be purchased with vacant possession. We will however continue to attempt to buy properties going forward. we are still around 20 bedspaces short of our optimal number. We still feel in the long-term, reducing our reliance on leased properties will benefit the charity, as we will be more able to control costs.
4
## **DOORSTEP OF HULL**
## **REPORT OF THE DIRECTORS AND TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023**
## **Plans for Future Periods (continued)**
The regulatory oversight bill for supported accommodation has received royal ascent. It is quite concerning that this bill appears to hand a great deal of power to local authorities and we feel there is a danger that they will weild this power in quite a draconian manner. The full effects of this will probably not be known until next year.
## **Financial Review**
The Charity has been able to fulfil all its commitments and submits a satisfactory financial report.
## **Principal Funding Sources**
The Charity is now principally dependent on the rental income for its core work, which totalled £1,832,981. The majority of other income consists of grants income totalling £75,065.
## **Investment Policy**
Under the Memorandum and Articles of Association, the Charitable Company has the power to make any investments which the Directors/Trustees see fit. The Charitable Company held two Time Deposit investments with the company's bankers, Santander during the year ended 31 March 2023.
## **Reserves Policy**
It is the policy of the Charitable Company to hold reserves. Reserves are held in accordance with the Charitable Company’s charitable objects, in order that the Charitable Company can continue to provide accommodation and support for young homeless persons. As advised in the report last year, the Reserves Policy has been reviewed by the Trustees and it now states that Reserves should be equal to 12 month's operating costs.
At 31st March 2023 unrestricted general purpose funds amounted to £3,617,756, which includes £1,868,664 relating to fixed assets. Free reserves available as working capital amounted to £1,749,092 which represents approximately 10 months running expenditure. This falls short of the Trustees' policy of having 12 months running costs. The charity is building back up capacity through property purchases, after handing back leased propertes last year, which it hopes will result in the charity making surpluses and increase the reserves position.
5
## **DOORSTEP OF HULL**
## **REPORT OF THE DIRECTORS AND TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023**
## **Responsibilities of the Management Committee**
Company and charity law requires the directors and trustees respectively to prepare financial statements which give a true and fair view of the Charitable Company's state of affairs at the end of the year and of its financial activities for that year. In preparing those financial statements the directors and trustees are required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to assume that the charitable company will continue in operation.
The directors and trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charitable Company and to enable them to ensure that the financial statements comply with the Companies Act 2006 and applicable charity law. 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 or other irregularities.
## **Members of the Management Committee**
Members of the Management Committee who served during the year and up to the date of this report are set out on page 1.
## **Provision of Information to the Auditor**
So far as the Directors and Trustees are aware, there is no relevant audit information of which the Charitable Company's auditor is unaware and we have taken all the steps that we ought to have taken as Directors/Trustees in order to make ourselves aware of any relevant audit information and to establish that the Charitable Company's auditor is aware of that information.
## **Auditor**
HPH were re-appointed as the Charitable Company’s auditor during the year and have expressed their willingness to continue in that capacity.
## **Exemption**
This report has been prepared in accordance with the small companies regime under the Companies Act 2006.
Approved by the Management Committee on 17 November 2023 and signed on its behalf by:
Denis Scanlan _Director and Trustee_
6
**HPH**
**Chartered Accountants**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF**
## **DOORSTEP OF HULL**
## **Opinion**
We have audited the financial statements of Doorstep of Hull for the year ended 31 March 2023 which comprise the Statement of Financial Activities and Income and Expenditure Account, the Balance Sheet, the 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 charitable company’s affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In 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 trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
7
**HPH**
**Chartered Accountants**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF**
## **DOORSTEP OF HULL**
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion based on the work undertaken in the course of our audit
- the information given in the trustees’ report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In light of the 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 directors’ report included within the trustees’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept; or
- the financial 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 information and explanations we require for our audit or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the trustees’ report.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement 5, 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.
8
**HPH**
**Chartered Accountants**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF**
## **DOORSTEP OF HULL**
## **Auditor’s responsibilities for 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 auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of 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:
- We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 together with the Charities SORP (FRS102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
- 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 might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. The laws and regulations we considered in this context were various housing and homelessness acts, Health and Safety legislation, Employment legislation, Charity Commission regulations and General Data Protection Regulation (GDPR).
- Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.
- We also considered the opportunities and incentives that may exist within the charitable company for fraud.
- We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and income recognition.
In response to the risk of irregularities and non-compliance with laws and regulations and risk of fraud, we designed procedures which included but were not limited to: sample testing on the posting of journals, timing of recognition of commercial income, review of trustee’s minutes and any correspondence with regulators.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion, or the provision of intentional misrepresentations. We are not responsible for preventing fraud and cannot be expected to detect all fraud.
9
**HPH**
## **Chartered Accountants**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF**
## **DOORSTEP OF HULL**
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **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 auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Sarah Wearing
Senior Statutory Auditor
For and on behalf of
## **HPH**
Statutory Auditor 54 Bootham York YO30 7XZ
17 November 2023
10
## **DOORSTEP OF HULL**
## **STATEMENT OF FINANCIAL ACTIVITIES AND INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2023**
|_Notes_
**Income and endowments from:**
Donations and legacies
_2_
Charitable activities
_3_
Other trading activities
_4_
Investments
_5_
**Total income**
**Expenditure on:**
Charitable activities
**Total expenditure**
_7_
**Net expenditure**
Transfers between funds
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|_Unrestricted_
_Fund_
_£_
1,605
74,310
1,832,981
12,985
1,921,881
2,031,873
2,031,873
(109,992)
-
(109,992)
3,727,748
**£ 3,617,756**|_Endowment_
_Funds_
_£_
-
-
-
-
-
1,360
1,360
(1,360)
-
(1,360)
169,118
**£ 167,758**|**_Total_**
**_31 March_**
**_2023_**
**_£_**
**1,605**
**74,310**
**1,832,981**
**12,985**
**1,921,881**
**2,033,233**
**2,033,233**
**(111,352)**
**-**
**(111,352)**
**3,896,866**
**£ 3,785,514**|_Total_
_31 March_
_2022_
_£_
5,262
70,452
1,865,955
3,151|
|---|---|---|---|---|
|||||1,944,820|
|||||2,000,905|
|||||2,000,905|
|||||(56,085)
-|
|||||(56,085)
3,952,951|
|||||**£ 3,896,866**|
_The notes on pages 14 to 21 form part of these accounts._
11
## **DOORSTEP OF HULL**
## **BALANCE SHEET AT 31 MARCH 2023**
**Registration number: 01940104**
|_Notes_
**Fixed assets**
Tangible fixed assets
_9_
**Current assets**
Debtors
_10_
Bank balances and cash
**Creditors : amounts falling due**
**within one year**
_11_
**Net current assets**
**Total assets less current liabilities**
**Net assets**
**Capital and reserves**
**Endowment funds**
**Unrestricted funds**
General purpose fund
**Funds**
_12_|_2023_
_2022_
_£_
_£_
_£_
_£_
1,868,664
1,636,721
95,569
55,852
1,912,557
2,379,499
2,008,126
2,435,351
91,276
175,206
1,916,850
2,260,145
3,785,514
3,896,866
£ 3,785,514
£ 3,896,866
167,758
169,118
3,617,756
3,727,748
£ 3,785,514
£ 3,896,866|_2023_
_2022_
_£_
_£_
_£_
_£_
1,868,664
1,636,721
95,569
55,852
1,912,557
2,379,499
2,008,126
2,435,351
91,276
175,206
1,916,850
2,260,145
3,785,514
3,896,866
£ 3,785,514
£ 3,896,866
167,758
169,118
3,617,756
3,727,748
£ 3,785,514
£ 3,896,866|
|---|---|---|
|||3,896,866|
|||£ 3,896,866|
|||169,118
3,727,748|
|||£ 3,896,866|
The accounts have been prepared in accordance with the provisions applicable to small companies subject to the small companies regime under the Companies Act 2006 and are for circulation to members of the company.
_Approved by the Board on 17 November 2023 and signed on its behalf by:_
Denis Scanlan _Director and Trustee_
Kingston upon Hull
_The notes on pages 14 to 21 form part of these accounts._
12
## **DOORSTEP OF HULL CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2023**
|**Note**
17
**Cash flow from investing activities:**
Proceeds from the sale of fixed assets
Purchase of tangible fixed assets
17
**Net cash (used in) / provided by**
**operating activities**
Dividends, interest and rents from
investments
**Net cash (used in) / provided by**
**investing activities**
**Change in cash and cash equivalents**
**in the year**
**Cash and cash equivalents at**
**beginning of the year**
**Cash and cash equivalents at end of**
**the year**|**£**
**£**
**£**
**£**
(197,818)
166,613
12,985
3,151
-
1,500
(282,109)
-
(269,124)
4,651
(466,942)
171,264
2,379,499
2,208,235
£1,912,557
£2,379,499
**2023**
**2022**|
|---|---|
_The notes on pages 14 to 21 form part of these financial statements._
13
## **DOORSTEP OF HULL**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023**
## **1. ACCOUNTING POLICIES**
## **Legal entity**
Doorstep of Hull is regulated by the Charities Commission (518713), limited by guarantee and is registered in England and Wales. The address of the registered office and principal place of business is 151 Fairfax Avenue, Kingston upon Hull, HU5 4QZ.
The charitable company constitutes a public benefit entity as defined by FRS 102.
The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and in the preceding year.
## **Basis of Accounting**
The accounts have been prepared under the historical cost convention and in accordance with;
- i) the provisions applicable to companies subject to the small companies regime under the Companies Act 2006; and
- ii) the Statement of Recommended Practice ("SORP(FRS102)") iii) Financial Reporting Standard 102.
## **Going concern**
The Trustees/Directors have prepared financial projections, taking into consideration the current economic climate and its potential impact on the sources of income and planned expenditure. They have a reasonable expectation that adequate financial resources are available to enable the Charitable Company to continue in operational existence for the foreseeable future, and have adequate contingency plans in the event that income streams are reduced. Consequently the financial statements have been prepared on the basis that the Charitable Company is a going concern.
## **Depreciation**
Depreciation is provided on all tangible fixed assets in use, other than freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset over its expected useful life, as follows:
|Freehold buildings|- over 50 years|
|---|---|
|Office equipment|- over 1 year|
|Fixtures and fittings|- over 1 year|
|Motor vehicles|- over 4 years|
A full year's depreciation is charged in the year the asset is first brought into use.
## **Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **Cash at bank and in hand**
Cash at bank and cash in hand includes cash and any short term deposit accounts with a maturity of three months or less from the date of opening.
## **Creditors and provisions**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
14
## **DOORSTEP OF HULL**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023**
## **1. ACCOUNTING POLICIES (continued)**
## **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.
## **Income and endowments**
Other trading activities and investments
Rents and interest receivable are recorded in the financial year in which they are earned. Interest is received on the bank deposits.
Grants and other income
Grants from Government and Public Bodies are credited as income received in the period in which the conditions for receipt have been satisfied.
Local authority and Lottery grants
- i) Revenue grants
These grants are credited directly to the statement of financial activities (income and expenditure).
- ii) Capital grants These grants are credited directly to the statement of financial activities (income and expenditure account) as an endowed fund. This fund is reduced by a transfer of amounts equivalent to any depreciation charges over the useful life of the assets to which the grants relate. The amount of the fund which has not been spent at the end of the financial year is carried forward in that fund.
Income from donations and funding grants, is included in incoming resources when these are receivable, except as follows:
- When donors specify that donations and grants given to the Charitable Company must be used in future accounting periods, the income is deferred until those periods
- When donors impose conditions which have to be fulfilled before the Charitable Company becomes entitled to use such income, the income is deferred and not included in incoming resources until the pre-conditions for use have been met.
## **Expenditure**
Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer-term liabilities. Expenditure attributable to more than one cost category is apportioned to them on the basis of the estimated amount attributable to each activity in the year, either by reference to staff time or the use made of the underlying assets, as appropriate. The irrecoverable element of VAT is included with the item of expense to which it relates.
Charitable expenditure includes all expenditure directly relating to the objects of the Charitable Company and costs are charged on the basis of the accruals concept, including irrecoverable value added tax where applicable.
## **Funds structure**
Unrestricted funds consists of the general purpose fund and designated funds. Designated funds are funds established by the Trustees from time to time for specific purposes. They are not in any way restricted and any surplus or deficit will be transferred to/from the general purpose fund when the designated fund is closed.
The endowed fund shows monies received from the National Lottery Charities Board for the purchase of land and buildings to enable the Charitable Company to provide accommodation in line with its objectives. Incoming resources from endowed funds are treated as unrestricted.
15
## **DOORSTEP OF HULL**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023**
## **1. ACCOUNTING POLICIES (continued)**
## **Pension cost**
The Charitable Company makes contributions to personal pension schemes for employees. Contributions are charged to the SOFA for the year in which they are payable.
|_Unrestricted_
_Fund_
_£_
**2.**
**DONATIONS AND LEGACIES**
Donations and covenants
£ 1,605
**3.**
**CHARITABLE ACTIVITIES**
James Reckitt grant
25,000
Hull University
2,964
Places for People management fee
46,346
Other
-
£ 74,310
**4.**
**OTHER TRADING ACTIVITIES**
Rental income
£ 1,832,981
**5.**
**INVESTMENTS**
Bank & other interest
**6.**
**NET INCOME FOR THE YEAR**
Net income for the year is stated after charging:
Auditor's remuneration
-
audit
-
other services|_Endowment_
_Funds_
_£_
£ -
-
-
-
-
£ -
£ -|_Total_
_2023_
_£_
£ 1,605
25,000
2,964
46,346
-
£ 74,310
£ 1,832,981
£ 12,985
_2023_
_£_
3,000
4,207|_Total_
_2022_
_£_
£ 5,262|
|---|---|---|---|
||||17,000
3,400
47,146
2,906|
||||£ 70,452|
||||£ 1,865,955|
||||£ 3,151|
||||_2022_
_£_
3,000
7,530|
16
## **DOORSTEP OF HULL**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023**
|_Basis of_
_allocation_
**TOTAL RESOURCES EXPENDED**
**Costs directly allocated to activities**
Staff costs
direct
Property insurance
direct
Property repairs and renewals
direct
Other property expenses
direct
Other operating expenses
direct
Depreciation and profit on sale
direct
Dilapidations
direct
**Support costs allocated to activities**
Staff costs
staff time
General office costs
usage
Legal and professional
usage
Depreciation
usage
Audit and accountancy
usage
Bank charges and interest
usage|_Charitable_
_activities_
_£_
449,187
36,807
362,357
767,845
152,124
48,767
-
172,442
13,009
21,715
1,399
7,207
374
£ 2,033,233|_Governance_
_costs_
_£_
-
-
-
-
-
-
-
-
-
-
-
-
-
£ -|_Total_
_2023_
_£_
449,187
36,807
362,357
767,845
152,124
48,767
-
172,442
13,009
21,715
1,399
7,207
374
£ 2,033,233|_Total_
_2022_
_£_
508,312
40,395
237,856
743,278
160,735
41,624
110,000
117,663
17,546
10,615
1,399
10,530
952|
|---|---|---|---|---|
|||||£ 2,000,905|
**7. TOTAL RESOURCES EXPENDED**
## **8. EMPLOYEE INFORMATION**
The aggregate payroll costs of the Charitable Company for the period are as follows:
|Salaries
Social security costs
Other pension costs
**Average number of employees for the period**
Services
Management and administration|_£_
538,526
45,820
37,283
£ 621,629
16
3
19|_£_
542,330
48,395
35,250|
|---|---|---|
|||£ 625,975|
|||16
3|
|||19|
During the year no employees were paid emoluments amounting to £60,000 or more.
The key management personnel of the charity, comprise the Project Director, Deputy Project Director, Administrator and Practice Manager. The total employee benefits of the key management personnel of the charity were £172,442 (2022 £160,607 comprising the Project Director, Administrator and Practice Manager).
17
## **DOORSTEP OF HULL**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023**
## **9. FIXED ASSETS**
|Cost
At 1 April 2022
Additions
At 31 March 2023
Depreciation
At 1 April 2022
Charge for year
At 31 March 2023
Net Book Value
At 31 March 2023
At 31 March 2022|_Land and_
_Buildings_
_£_
2,424,867
282,109
2,706,976
788,146
50,166
838,312
£ 1,868,664
£ 1,636,721|_Plant and_
_machinery etc._
_£_
191,814
-
191,814
191,814
-
191,814
£ -
£ -|_Total_
_£_
2,616,681
282,109|
|---|---|---|---|
||||2,898,790|
||||979,960
50,166|
||||1,030,126|
||||£ 1,868,664|
||||£ 1,636,721|
All fixed assets held are for charitable use.
There were no freehold property additions made from the endowed funds during the year. Under the terms of the endowed funds received from the National Lottery Charities Board (the board) the land and buildings acquired with those funds may not be disposed of, nor used as security for a loan or any other financial purpose without the prior written approval of the board. This restriction is in force for a period of 80 years from the date of acquisition. £1,700,906 of fixed assets relates to unrestricted funds and £167,758 to endowed funds.
## **10. DEBTORS**
|**DEBTORS**|||
|---|---|---|
|Income debtors
Other debtors
Prepayments and accrued income|_£_
-
53,156
42,413
£ 95,569|_£_
7,973
45,561
2,318|
|||£ 55,852|
An amount of £6,710 (2022 £7,274) is included in the above in respect of debtors due after more than one year. All debtors relate to unrestricted funds.
## **11.**
|**CREDITORS**
Trade creditors
Other creditors
Accruals|_£_
49,010
8,979
33,287
£ 91,276|_£_
30,770
113,286
31,150|
|---|---|---|
|||£ 175,206|
All creditors relate to unrestricted funds.
18
## **DOORSTEP OF HULL**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023**
|**12.**|**ACCUMULATED FUNDS**|_Opening_|_Incoming_|_Resources_|||_Closing_|
|---|---|---|---|---|---|---|---|
|||_balance_|_Resources_|_expended_||_Transfers_|_balance_|
||**2023**|_£_|_£_|_£_||_£_|_£_|
||**Unrestricted:**|||||||
||General purpose fund|3,727,748|1,921,881|(2,031,873)||-|3,617,756|
||**Endowment fund - Lottery**|169,118|-|(1,360)||-|167,758|
||**Total funds**|£ 3,896,866|£ 1,921,881|£( 2,033,233)|£|-
|£ 3,785,514|
|||_Opening_|_Incoming_|_Resources_|||_Closing_|
|||_balance_|_Resources_|_expended_||_Transfers_|_balance_|
||**2022**|_£_|_£_|_£_||_£_|_£_|
||**Unrestricted:**|||||||
||General purpose fund|3,782,473|1,944,820|(1,999,545)||-|3,727,748|
||**Endowment fund - Lottery**|170,478|-|(1,360)||-|169,118|
||**Total funds**|£ 3,952,951|£ 1,944,820|£( 2,000,905)|£|-
|£ 3,896,866|
|**13.**|**ANALYSIS OF THE CHARITY'S NET**|**ASSETS BY**|**FUND**|||||
||**2023**||_Fixed Assets_|_Current_||_Current_||
||||_(charity use)_|_assets_||_liabilities_|_Total_|
||||_£_|_£_||_£_|_£_|
||Endowment funds||167,758|-||-|167,758|
||Unrestricted funds - general purpose fund||1,700,906|2,008,126||(91,276)|3,617,756|
||||£ 1,868,664|£ 2,008,126||£ ( 91,276)|£ 3,785,514|
||**2022**||_Fixed Assets_|_Current_||_Current_||
||||_(charity use)_|_assets_||_liabilities_|_Total_|
||||_£_|_£_||_£_|_£_|
||Endowment funds||169,118|-||-|169,118|
||Unrestricted funds - general purpose fund||1,467,603|2,435,351||(175,206)|3,727,748|
||||£ 1,636,721|£ 2,435,351|£ ( 175,206)||£ 3,896,866|
19
## **DOORSTEP OF HULL**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023**
## **14. TRANSACTIONS WITH DIRECTORS, TRUSTEES AND RELATED PARTIES**
The project director, Peter Drinkell occupies the first floor of the Charitable Company's offices under a tenancy agreement at a market rate. During the year he paid rent to the Charitable Company amounting to £2,987 (2022 £3,031).
No remuneration, benefits or expenses were received by any directors or trustees during the year in respect of their services to the Charitable Company.
There are no other related parties or related party transactions.
## **15. CONSTITUTION**
Doorstep of Hull is a company limited by guarantee, number 01940104. In the event of the Charitable Company being wound up, the liability of the members is limited to five pounds. The Memorandum of Association of the Charitable Company prohibits the distribution of any properties to members upon winding up or dissolution of the Charitable Company.
## **16. TAXATION**
As a registered charity, Doorstep of Hull is exempt from the tax on income falling within sections 466 to 493 of the Corporation Tax Act 2010 to the extent that this is applied to its charitable objects. No tax charges have arisen in the Company.
## **17. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES**
|**Net expenditure for the reporting period**
Depreciation of tangible fixed assets
Profit on disposal of fixed assets
Dividends, interest and rents from investments
(Increase) / decrease in debtors
(Decrease)/increase in creditors
**_Net cash (used in) / provided by operating activities_**|_2023_
_£_
(111,352)
50,166
-
(12,985)
(39,717)
(83,930)
£ (197,818)|_2022_
_£_
(56,085)
44,523
(1,500)
(3,151)
47,999
134,827|
|---|---|---|
|||£ 166,613|
20
## **DOORSTEP OF HULL**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023**
## **17. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES (continued)**
|**ANALYSIS OF CASH AND CASH EQUIVALENTS**
Cash at bank and in hand
**Total cash and cash equivalents**
**ANALYSIS OF CHANGES IN NET DEBT**|_2023_
_£_
1,912,557|_2022_
_£_
2,379,499|
|---|---|---|
||£ 1,912,557|£ 2,379,499|
||||
|**ANALYSIS OF CHANGES IN NET DEBT**||||
|---|---|---|---|
|Cash|_At_
_01/04/2022_
_£_
2,379,499
£ 2,379,499|_Cash-flows_
_£_
(466,942)|_At_
_31/03/2023_
_£_
1,912,557|
|||(466,942)||
|||£ (466,942)|£ 1,912,557|
## **18. COMPARATIVE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES AND INCOME AND EXPENDITURE ACCOUNT**
|_Income and endowments from:_
_Donations and legacies_
_Charitable activities_
_Other trading activities_
_Investments_
_Total income_
_Expenditure on:_
_Charitable activities_
_Total expenditure_
Net (expenditure) / income
_Transfers between funds_
_Net movement in funds_
_Reconciliation of funds:_
_Total funds brought forward_
_Total funds carried forward_|_Unrestricted_
_Fund_
_£_
_5,262_
_30,452_
_1,905,955_
_3,151_
_1,944,820_
_1,999,545_
_1,999,545_
_(54,725)_
_-_
_(54,725)_
_3,782,473_
_£ 3,727,748_|_Endowment_
_Funds_
_£_
_-_
_-_
_-_
_-_
_-_
_1,360_
_1,360_
_(1,360)_
_-_
_(1,360)_
_170,478_
_£ 169,118_|_Total_
_31 March_
_2022_
_£_
_5,262_
_30,452_
_1,905,955_
_3,151_|
|---|---|---|---|
||||_1,944,820_|
||||_2,000,905_|
||||_2,000,905_|
||||_(56,085)_
_-_|
||||_(56,085)_
_3,952,951_|
||||_£ 3,896,866_|
21
_The following pages do not form part of the statutory accounts and contain unaudited information_
## **DOORSTEP OF HULL**
## **DETAILED TRADING ACCOUNT FOR THE YEAR ENDED 31 MARCH 2023**
|**Income**
Rents
Donations
Other income
James Reckitt grant
Hull University grant
Places for People management fee
Bank interest receivable
**TOTAL INCOMING RESOURCES**|_2023_
_2022_
_£_
_£_
1,832,981
1,865,955
1,605
5,262
-
2,906
25,000
17,000
2,964
3,400
46,346
47,146
1,908,896
1,941,669
12,985
3,151
£ 1,921,881
£ 1,944,820|
|---|---|
22
## **DOORSTEP OF HULL**
## **DETAILED INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2023**
|**TOTAL INCOMING RESOURCES**
**Direct charitable expenditure**
Night cover
Bad debts
General rates
Water rates
Heat and light
Insurance
Repairs and renewals
Health and safety compliance
Motor and travel expenses
Depreciation
Profit on disposal of fixed assets
Staff costs
Training
Telephone
Gardening and equipment hire
Fees including NBHA and Unicom
Cleaning, consumables and sundries
Miscellaneous expenses
Dilapidations
**Administrative expenditure**
Heat and light
Insurance
General rates
Water rates
Depreciation
Staff costs
Telephone
Printing, stationery and postage
Computer costs
Bank charges
Auditor's remuneration
Accountancy fees
Donations
Cleaning, consumables and sundries
Subscriptions
Legal and professional fees
**TOTAL EXPENSES**
**NET OUTGOING RESOURCES**|_2023_
_2022_
_£_
_£_
_£_
_£_
1,921,881
1,944,820
74,240
70,348
21,780
40,895
46,706
57,247
27,801
30,031
253,369
192,893
36,807
40,395
362,357
237,856
7,290
7,639
26,710
24,249
48,767
43,124
-
(1,500)
449,187
465,368
2,820
900
17,184
14,559
5,216
10,312
385,471
430,787
49,282
22,008
2,100
2,145
110,000
1,817,087
1,799,256
1,831
881
150
943
1,355
347
232
1,399
1,399
172,442
160,607
569
3,153
6,501
4,500
1,074
1,620
374
952
3,000
3,000
4,207
7,530
489
1,653
551
4,002
704
-
21,715
10,615
216,146
201,649
2,033,233
2,000,905
£ ( 111,352)
£ ( 56,085)|
|---|---|
23