REGISTERED COMPANY NUMBER: 02432547 (England and Wales) REGISTERED CHARITY NUMBER: 702269
Report of the Trustees and Financial Statements for the Year Ended 31st March 2024
for
Humbercare Limited
(A Company Limited by Guarantee)
Smailes Goldie Chartered Accountants Statutory Auditor Regent's Court Princess Street Hull East Yorkshire HU2 8BA
Humbercare Limited
Contents of the Financial Statements for the year ended 31st March 2024
| Page | ||
|---|---|---|
| Reference and Administrative Details | 1 | |
| Report of the Trustees | 2 to | 4 |
| Report of the Independent Auditors | 5 to | 7 |
| Statement of Financial Activities | 8 | |
| Balance Sheet | 9 | |
| Cash Flow Statement | 10 | |
| Notes to the Cash Flow Statement | 11 | |
| Notes to the Financial Statements | 12 to | 24 |
| Detailed Statement of Financial Activities | 25 to | 26 |
Humbercare Limited
Reference and Administrative Details for the year ended 31st March 2024
TRUSTEES P Robinson (resigned 29.9.2023) A Young (resigned 26.3.2024) J E Malyon J M Sharpley FCA H J Spencer S Young (appointed 27.9.2023) COMPANY SECRETARY R McKinnon REGISTERED OFFICE 81 Beverley Road Hull East Yorkshire HU3 1XR REGISTERED COMPANY 02432547 (England and Wales) NUMBER REGISTERED CHARITY 702269 NUMBER INDEPENDENT AUDITORS Smailes Goldie Chartered Accountants Statutory Auditor Regent's Court Princess Street Hull East Yorkshire HU2 8BA KEY MANAGEMENT R Mckinnon M Mercer K Allman C Hornsby
Page 1
Humbercare Limited
Report of the Trustees for the year ended 31st March 2024
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31st March 2024. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES
Statement of Purpose
We will provide information, advice, guidance, care, and support services that are tailored to individuals needs and aspirations.
We will source and provide a range of accommodation that will meet the needs of those experiencing homelessness be that as a result of offending, leaving care or due to suffering complex needs or severe and multiple disadvantages.
Belief
That every individual has the opportunity to access a safe place that they can call home, within which they can realise their full potential, optimise their life chances, improve their skills, and achieve responsible and achieve independent living and become active and responsible members of the community.
Strategic Aims
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To provide quality and value driven services;
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To provide services that contribute to the safety and wellbeing of our community;
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To utilise the organisation's resources, expertise and reputation in its skill base using Care Quality Commission accreditation, Investors in People and Matrix awards to be an employer of choice in the voluntary sector.
Values
- Provide Providing quality accommodation, innovative services, choices and appropriate information, advice and guidance.
Prevent Preventing homelessness, reoffending, reliance on acute and long-term health and social care services. Promote Promoting potential, opportunity, and independence.
Significant activities
Humbercare delivers a range of person-centred services to vulnerable young people and adults. Our innovative community-based support packages include mentoring and volunteering, accommodation based and non-accommodation-based, including mental health crisis support, housing-related support services and supported lodgings. All our services are outcome focussed. Humbercare supply services on behalf of the following local authorities and organisations Hull City Council, Northeast Lincolnshire Council & Clinical Commissioning Group, East Riding of Yorkshire Council, University of Hull Humber Trust, National Probation Service and the University of Hull.
Public benefit
During the past financial year, Humbercare has worked with over 3,500 people by helping them to maintain their accommodation, by helping them motivate themselves regarding learning and employment, by acting as role models and advocates, to enable them to become valuable members of the community and therefore to reduce offending and improve the community for everyone.
Contribution of Volunteers
Management Committee
Humbercare's Management Committee are volunteers and they commit themselves to at least 6 meetings per year with the possibility of more for those who are involved in a sub-committee.
Mentors/Volunteers
Humbercare had 45 mentors/volunteers per year. They have completed 3,440 voluntary hours in the following areas: life skills and budgeting, literacy and numeracy, befriending/role modelling, employment and training support, education support, accommodation support.
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Humbercare Limited
Report of the Trustees for the year ended 31st March 2024
ACHIEVEMENT AND PERFORMANCE Fundraising activities
The charity does not carry out significant fundraising activities.
FINANCIAL REVIEW
Financial position
The results for the year and the financial position of the company are shown in the annexed financial statements. Overall, excluding gains on pension schemes, the company made a surplus in this operating year of £499,630 (2023: £172,070) before a dilapidation provision of £355,000 (2023: £nil). This represents a surplus of £3,387 (2023: deficit £2,519) on restricted funds and a surplus of £141,243 (2023: £174,589) on unrestricted funds.
The surplus is a result of the Senior Management Team investing in infrastructure to support 3 of the organisation's most demanding services to deliver the highest standard possible and to ensure that the organisation can respond and be competitive in future procurement exercises. This includes investment in our property portfolio, personnel, on-going upgrades to internal software and information technology. The investments will assist the organisation in increasing its annual income over the next 3-5 years and continuing to deliver high-quality services meeting the requirements of the communities the organisation works with. During this financial year, there has been continued investment into the Finance team in terms of on-going updates to systems and infrastructure to meet the growing demands of the organisation.
As at 31 March 2024 unrestricted reserves were £451,872 (2023: £283,664) whilst restricted reserves were £31,162 (2023: £27,775).
Grant Making Policy
Humbercare is only able to provide grants to individuals who are using our projects or are referred by statutory or other voluntary organisations.
Investment Policy
All surplus funds are invested with the Charity's bankers either on deposit or in a current account with the exception of a number of shares and unit trusts (market value £31,162 as at 31 March 2024) transferred to Humbercare from HACRO (Hull & East Riding Association for the Care and Resettlement of Offenders) in May, 2001.
Reserves policy
The Trustees have established a policy whereby unrestricted funds not committed or invested in tangible fixed assets ('the free reserves') held by the charity will be expended at the Trustees' discretion in furtherance of any of the Charity's objects. Reserves are required to cover:
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any redundancy costs that become due, together with winding up and associated legal costs;
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working capital for running the core;
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exceptional and unforeseen expenditure; and
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grants received in arrears to ensure cash flow remains healthy.
The trustees propose to build free reserves and strengthen the financial position of the charity by reducing debtor repayment days and by continued close control of spending and regular monitoring against prudent budgets. Due to the charity's ongoing successful expansion, it is felt that the charity is able to continue its ongoing funded activities, or in the event of a significant drop in funding and the charity being wound up meet redundancy and associated legal costs.
FUTURE STRATEGY
Humbercare Limited has in place a five year business strategy and yearly plans which set out to continue the activities as outlined above in the forthcoming years subject to satisfactory funding arrangements. These projects may be subject to further development and expansion in the future.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Charity constitution and governing document
The charity was established in September 1989 under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. The charity constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
Page 3
Humbercare Limited
Report of the Trustees for the year ended 31st March 2024
STRUCTURE, GOVERNANCE AND MANAGEMENT
Members of the management committee
Trustees and key management who served during the year and up to the date of this report are set out on page 1. Members of the charitable company guarantee to contribute an amount not exceeding £1 to the assets of the charitable company in the event of winding up. The total number of such guarantees at 31st March 2024 was 5 (2023 - 5).
Recruitment, appointment, induction and training of new trustees
The directors of the Management Committee are elected at the AGM to serve a period of 3 years with one third of all directors retiring annually, and being eligible, offering themselves for re-election at the forthcoming Annual General Meeting. To ensure induction to Humbercare Limited, Management Committee Trustees receive all relevant documentation and information relating to their role as a Trustee and all relevant information relating to Humbercare.
Key management remuneration
Key management remuneration is set by the board, based on market rates commensurate with level of sector experience. The company does not offer a company car scheme.
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The trustees (who are also the directors of Humbercare Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The 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. 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.
In so far as the trustees are aware:
-
there is no relevant audit information of which the charitable company's auditors are unaware; and
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the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
AUDITORS
The auditors, Smailes Goldie, will be proposed for re-appointment at the forthcoming Annual General Meeting.
This report was approved by the Board on ............................................. and signed on its behalf by:
.................................................................
R McKinnon - Secretary
Page 4
Report of the Independent Auditors to the Members of Humbercare Limited
Opinion
We have audited the financial statements of Humbercare Limited (the 'charitable company') for the year ended 31st March 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (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 31st March 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.
Material uncertainty related 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. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors 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.
In connection with our audit of the financial statements, 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 the audit:
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the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the Report of the Trustees has been prepared in accordance with applicable legal requirements.
Page 5
Report of the Independent Auditors to the Members of Humbercare Limited
Matters on which we are required to report by exception
In the 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 Report of the Trustees.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.
Responsibilities of trustees
As explained more fully in the Statement of Trustees' Responsibilities, 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.
Our 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 a Report of the Independent Auditors 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, tax legislation, data protection, anti-bribery, employment, environmental and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
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performed analytical procedures to identify any unusual or unexpected relationships;
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tested journal entries to identify unusual transactions; assessed whether judgements and assumptions made in determining the accounting estimates
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wereindicative of potential bias; and
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investigated the rationale behind significant or unusual transactions.
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 Report of the Independent Auditors.
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Report of the Independent Auditors to the Members of Humbercare Limited
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Stephen Bramall BSc FCA (Senior Statutory Auditor) for and on behalf of Smailes Goldie Chartered Accountants Statutory Auditor Regent's Court Princess Street Hull East Yorkshire HU2 8BA
Date: ............................................. 11 Sep 2024
Page 7
Humbercare Limited
Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the year ended 31st March 2024
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies 4 Charitable activities 6 Accommodation, advice and support Investment income 5 Total EXPENDITURE ON Charitable activities 7 Accommodation, advice and support Net gains/(losses) on investments NET INCOME Other recognised gains/(losses) Actuarial gains on defined benefit schemes Net movement in funds RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted fund £ 3,313 9,799,668 942 9,803,923 9,662,680 - 141,243 26,965 168,208 283,664 451,872 |
Restricted funds £ 20,000 - - 20,000 20,000 3,387 3,387 - 3,387 27,775 31,162 |
2024 Total funds £ 23,313 9,799,668 942 9,823,923 9,682,680 3,387 144,630 26,965 171,595 311,439 483,034 |
2023 Total funds £ 18,950 8,423,158 898 8,443,006 8,268,417 (2,519) 172,070 41,706 213,776 97,663 |
|---|---|---|---|---|
| 311,439 |
The notes form part of these financial statements
Page 8
Humbercare Limited
Balance Sheet 31st March 2024
| Notes FIXED ASSETS Tangible assets 13 Investments 14 CURRENT ASSETS Debtors 15 Cash at bank and in hand CREDITORS Amounts falling due within one year 16 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES PROVISIONS FOR LIABILITIES 18 PENSION LIABILITY 21 NET ASSETS/(LIABILITIES) FUNDS 20 Unrestricted funds Restricted funds TOTAL FUNDS |
2024 £ 208,935 31,162 240,097 538,753 823,169 1,361,922 (619,014) 742,908 983,005 (355,000) (144,971) 483,034 451,872 31,162 483,034 |
2023 £ 183,571 27,775 211,346 337,470 588,811 926,281 (612,649) 313,632 524,978 - (213,539) 311,439 |
|---|---|---|
| 283,664 27,775 311,439 |
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:
............................................. J E Malyon - Trustee
The notes form part of these financial statements
Page 9
Humbercare Limited
Cash Flow Statement for the year ended 31st March 2024
| Notes Cash flows from operating activities Cash generated from operations 1 Net cash provided by operating activities Cash flows from investing activities Purchase of tangible fixed assets Dividends received Net cash used in investing activities Cash flows from financing activities Hire purchase repayments in year Net cash used in financing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period |
2024 £ 338,835 338,835 (103,753) 942 (102,811) (1,666) (1,666) 234,358 588,811 823,169 |
2023 £ |
|---|---|---|
| 122,898 122,898 (143,902) 898 (143,004) (2,499) (2,499) (22,605) 611,416 588,811 |
The notes form part of these financial statements
Page 10
Humbercare Limited
Notes to the Cash Flow Statement for the year ended 31st March 2024
1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
| 2024 | 2023 | ||
|---|---|---|---|
| £ | £ | ||
| Net income for the reporting period (as per the Statement | of | ||
| Financial Activities) | 144,630 | 172,070 | |
| Adjustments for: | |||
| Depreciation charges | 78,390 | 55,954 | |
| (Gain)/losses on investments | (3,387) | 2,519 | |
| Dividends received | (942) | (898) | |
| Dilapidation provision | 355,000 | - | |
| (Increase)/decrease in debtors | (201,283) | 73,480 | |
| Increase/(decrease) in creditors | 8,031 | (122,032) | |
| Difference between pension charge and cash contributions | (41,604) | (58,195) | |
| Net cash provided by operations | 338,835 | 122,898 | |
| ANALYSIS OF CHANGES IN NET FUNDS | |||
| Net cash | At 1/4/23 £ |
Cash flow £ |
At 31/3/24 £ |
| Cash at bank and in hand | 588,811 | 234,358 | 823,169 |
| 588,811 | 234,358 | 823,169 | |
| Debt | |||
| Finance leases | (1,666) | 1,666 | - |
| (1,666) | 1,666 | - | |
| Total | 587,145 | 236,024 | 823,169 |
2. ANALYSIS OF CHANGES IN NET FUNDS
The notes form part of these financial statements
Page 11
Humbercare Limited
Notes to the Financial Statements for the year ended 31st March 2024
1. COMPANY INFORMATION
Humbercare Limited is a charitable company limited by guarantee and was incorporated in the United Kingdom on 16th October 1989 and registered as a charity on 7th December 1989. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 1 of these financial statements.
2. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.
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.
Going concern
The Senior Management Team, having considered Humbercare's contracts, housing portfolio and budget for the period 1 April 2024 - 31 March 2025, have a reasonable expectation that the organisation has adequate resources to continue in operational existence for a period of 12 months from the date of approval of these financial statements and therefore have been prepared the financial statements on a going concern basis.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds and any perfromance conditions have been met, it is probable that the income will be received and the amount can be measured reliably.
Income from government and other grants, whether capital or revenue, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
Income received in advance of the delivery of specific deliverables is deferred until the criteria for income recognition are met.
The value of services provided by volunteers are not included.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Allocation and apportionment of costs
All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly and general costs are apportioned on an appropriate basis e.g. number of staff employed on each project.
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Humbercare Limited
Notes to the Financial Statements - continued for the year ended 31st March 2024
2. ACCOUNTING POLICIES - continued
Allocation and apportionment of costs
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include audit fees and accounting costs.
Tangible fixed assets
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.
Depreciation is provided on all tangible fixed assets, 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:
| Depreciation is provided on all estimated residual value, of each |
tangible fixed assets, at rates calculated to write off the cost, les asset on a systematic basis over its expected useful life as follows: |
|---|---|
| Long leasehold | - over 50 years for structural improvements |
| - over the length of the lease for other improvements | |
| Westbourne improvements | - over 10 years |
| Fixtures and fittings | - over 3 years |
| Motor vehicles | - over 5 years |
| Computer equipment | - over 3 years |
Taxation
Humbercare Limited is a UK registered charity and all of its income is applied to the achievement of its charitable objects. The charitable company is therefore exempt under current legislation from most forms of taxation.
Fund accounting
Unrestricted funds
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the management committee.
Restricted funds
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Impairment
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in the statement of financial activities unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.
Pension costs and other post-retirement benefits
The company operates both a defined contribution pension scheme and a defined benefits scheme. The assets of the schemes are held separately from those of the company in independently administered funds. Contributions are charged to the Statement of Financial Activities as they become payable in accordance with the rules of the scheme.There is no liability under the defined benefit scheme other than the payment of those contributions.
Debtors and creditors receivable / payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
Lease obligations
Rentals payable under operating leases are charged to the Statement of Financial Activities over the period of the lease on a straight line basis.
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Humbercare Limited
Notes to the Financial Statements - continued for the year ended 31st March 2024
2. ACCOUNTING POLICIES - continued
Other contractual obligations that arise under operating leases, namely reinstating properties to their pre-lease condition, are recognised based on the trustees' best estimate of the expected cost of reinstatement at the end of the lease term by reference to the condition of the portfolio of properties at each balance sheet date. The expected future cost is discounted back to its present value at each balance sheet date.
3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
The trustees recognise significant judgement and estimation uncertainty exist in calculating the level of provision required in respect of obligations to restore its portfolio of rented properties to their pre-lease condition.
The key sources of estimation uncertainty are as follows:
Average cost to restore each property - £1,500. This has been estimated based on the proportion of properties in the portfolio having met the Decent Homes Standard and an even distribution profile of scheduled property restoration works.
Discount rate - 9.25%. This has been calculated by reference to the expected cost of borrowing, being bank base rate +4%.
To reduce estimation uncertainty in future the trustees have commissioned a surveyor to calculate the current cost to restore each property in the portfolio.
4. DONATIONS AND LEGACIES
| DONATIONS AND LEGACIES | |||
|---|---|---|---|
| Other income Donations Sir James Reckitt Charity INVESTMENT INCOME Dividends received |
2024 £ 758 2,555 20,000 23,313 2024 £ 942 |
2023 £ |
|
| 940 3,010 15,000 18,950 |
|||
| 2023 £ 898 |
5. INVESTMENT INCOME
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Humbercare Limited
Notes to the Financial Statements - continued for the year ended 31st March 2024
6. INCOME FROM CHARITABLE ACTIVITIES
| 6. INCOME FROM CHARITABLE ACTIVITIES |
||
|---|---|---|
| Insurance claims Grants University of Hull Supporters Lodgings Providers Rents received Grants received, included in the above, are as follows: Hull City Council North East Lincolnshire Council Humberside Probation Service Social Services 7. CHARITABLE ACTIVITIES COSTS Accommodation, advice and support 8. SUPPORT COSTS Accommodation, advice and support |
2024 2023 Accommodation, advice and Total support activities £ £ 147,194 - 2,347,015 2,314,488 - 6,280 101,694 98,573 7,203,765 6,003,817 9,799,668 8,423,158 2024 2023 £ £ 1,732,912 1,751,244 535,633 451,735 33,446 50,669 45,024 60,840 2,347,015 2,314,488 Support Direct costs (see Costs note 8) Totals £ £ £ 8,814,874 867,806 9,682,680 Governance Administration costs Totals £ £ £ 801,626 66,180 867,806 |
|
| 2023 £ 1,751,244 |
||
| 451,735 50,669 60,840 2,314,488 |
||
| Totals £ 9,682,680 Totals £ 867,806 |
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Humbercare Limited
Notes to the Financial Statements - continued for the year ended 31st March 2024
8. SUPPORT COSTS - continued
Support costs, included in the above, are as follows:
Governance costs
| Governance costs | |||
|---|---|---|---|
| 2024 | 2023 | ||
| Accommodation, | |||
| advice | |||
| and | Total | ||
| support | activities | ||
| £ | £ | ||
| Legal and professional fees | 27,038 | 10,274 | |
| Audit and accountancy fees | 39,142 | 40,412 | |
| 66,180 | 50,686 | ||
9. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
| Depreciation - owned assets Auditors' remuneration Operating lease rentals - land and buildings |
2024 £ 78,389 14,667 2,691,023 |
2023 £ 55,954 12,576 2,639,590 |
|---|---|---|
10. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31st March 2024 nor for the year ended 31st March 2023.
Trustees' expenses
Travel costs amounting to £151 (2023: £nil) were reimbursed to one trustee.
11. STAFF COSTS
| Wages and salaries Social security costs Other pension costs |
2024 £ 3,056,316 268,499 174,938 3,499,753 |
2023 £ 2,993,777 257,322 158,243 3,409,342 |
|---|---|---|
The average monthly number of employees during the year was as follows:
| Management and administration Project co-ordinators and workers |
2024 15 131 146 |
2023 15 128 143 |
|---|---|---|
Page 16
continued...
Humbercare Limited
Notes to the Financial Statements - continued for the year ended 31st March 2024
11. STAFF COSTS - continued
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
| £60,001 - £70,000 £80,001 - £90,000 £100,000-£110,000 |
2024 1 - 1 2 |
2023 1 1 - 2 |
|---|---|---|
Total remuneration for key management personnel is £353,489 (2023: £361,128).
| 12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted fund £ INCOME AND ENDOWMENTS FROM Donations and legacies 3,950 Charitable activities Accommodation, advice and support 8,423,158 Investment income - Total 8,427,108 EXPENDITURE ON Charitable activities Accommodation, advice and support 8,252,519 Net gains/(losses) on investments - NET INCOME/(EXPENDITURE) 174,589 Other recognised gains/(losses) Actuarial gains on defined benefit schemes 41,706 Net movement in funds 216,295 RECONCILIATION OF FUNDS Total funds brought forward 67,369 TOTAL FUNDS CARRIED FORWARD 283,664 |
Restricted funds £ 15,000 - 898 15,898 15,898 (2,519) (2,519) - (2,519) 30,294 27,775 |
Total funds £ 18,950 8,423,158 898 8,443,006 8,268,417 (2,519) 172,070 41,706 213,776 97,663 311,439 |
|---|---|---|
Page 17
continued...
Humbercare Limited
Notes to the Financial Statements - continued for the year ended 31st March 2024
13. TANGIBLE FIXED ASSETS
| 13. TANGIBLE FIXED ASSETS |
||
|---|---|---|
| COST At 1st April 2023 Additions At 31st March 2024 DEPRECIATION At 1st April 2023 Charge for year At 31st March 2024 NET BOOK VALUE At 31st March 2024 At 31st March 2023 COST At 1st April 2023 Additions At 31st March 2024 DEPRECIATION At 1st April 2023 Charge for year At 31st March 2024 NET BOOK VALUE At 31st March 2024 At 31st March 2023 14. FIXED ASSET INVESTMENTS MARKET VALUE At 1st April 2023 Revaluations At 31st March 2024 NET BOOK VALUE At 31st March 2024 At 31st March 2023 |
Long Westbourne leasehold Improvements £ £ 40,851 69,018 46,266 - 87,117 69,018 1,100 33,169 4,567 6,891 5,667 40,060 81,450 28,958 |
|
| 39,751 | 35,849 | |
| Motor vehicles £ 14,994 - 14,994 14,994 - 14,994 - |
Computer equipment £ 333,279 39,593 372,872 245,909 54,878 300,787 72,085 |
|
| - | 87,370 | |
Page 18
continued...
Humbercare Limited
Notes to the Financial Statements - continued for the year ended 31st March 2024
14. FIXED ASSET INVESTMENTS - continued
There were no investment assets outside the UK.
The historical cost of the investments as at 31 March 2024 was £10,273 (2023: £10,273).
15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | ||
|---|---|---|
| Trade debtors Other debtors Prepayments and accrued income CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Hire purchase (see note 17) Trade creditors Social security and other taxes Other creditors Accruals and deferred income |
2024 £ 100,744 75,671 362,338 538,753 2024 £ - 326,527 57,228 25,878 209,381 619,014 |
2023 £ 73,378 4,800 259,292 337,470 |
| 2023 £ 1,666 |
||
| 342,141 49,614 30,745 188,483 612,649 |
16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
17. LEASING AGREEMENTS
Minimum lease payments fall due as follows:
| Net obligations repayable: Within one year |
Hire purchase contracts 2024 2023 £ £ - 1,666 |
Hire purchase contracts 2024 2023 £ £ - 1,666 |
Hire purchase contracts 2024 2023 £ £ - 1,666 |
|
|---|---|---|---|---|
| 2023 £ |
||||
| 1,666 | ||||
| Non-cancellable operating leases |
||||
| 2024 | 2023 | |||
| £ | £ | |||
| Within one year | 1,429,932 | 2,683,499 | ||
| Between one and five years | 677,032 | 1,899,684 | ||
| More than 5 years | - | 1,378 | ||
| 2,106,964 | 4,584,562 | |||
Page 19
continued...
Humbercare Limited
Notes to the Financial Statements - continued for the year ended 31st March 2024
| 18. PROVISIONS FOR LIABILITIES Dilapidation provision (undiscounted) Discount Discounted provision 19. ANALYSIS OF NET ASSETS BETWEEN FUNDS Unrestricted Restricted fund funds £ £ Fixed assets 208,935 - Investments - 31,162 Current assets 1,361,922 - Current liabilities (619,014) - Provision for liabilities (355,000) - Pension liability (144,971) - 451,872 31,162 20. MOVEMENT IN FUNDS At 1/4/23 £ Unrestricted funds General fund 283,664 Restricted funds HACRO 27,775 TOTAL FUNDS 311,439 Net movement in funds, included in the above are as follows: Incoming Resources resources expended £ £ Unrestricted funds General fund 9,803,923 (9,662,680) Restricted funds J. Reckitt - Restricted 20,000 (20,000) HACRO - - 20,000 (20,000) TOTAL FUNDS 9,823,923 (9,682,680) |
||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | |||||
| £ | £ | |||||
| 577,492 | - | |||||
| (222,492) | - | |||||
| 355,000 | - | |||||
| 2024 Total funds £ 208,935 31,162 1,361,922 (619,014) (355,000) (144,971) 483,034 Net movement in funds £ 168,208 3,387 171,595 Gains and losses £ 26,965 - 3,387 3,387 30,352 |
||||||
| 2023 Total funds £ 183,571 27,775 926,281 (612,649) - (213,539) 311,439 |
||||||
| At 31/3/24 £ 451,872 31,162 483,034 Movement in funds £ 168,208 - 3,387 3,387 171,595 |
Page 20
continued...
Humbercare Limited
Notes to the Financial Statements - continued for the year ended 31st March 2024
20. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| Unrestricted funds General fund Restricted funds HACRO TOTAL FUNDS Comparative net movement in funds, included in the above Incoming resources £ Unrestricted funds General fund 8,427,108 Restricted funds J. Reckitt - Restricted 15,000 HACRO 898 15,898 TOTAL FUNDS 8,443,006 |
At 1/4/22 £ 67,369 30,294 97,663 are as follows: Resources expended £ (8,252,519) (15,000) (898) (15,898) (8,268,417) |
Net movement in funds £ 216,295 (2,519) 213,776 Gains and losses £ 41,706 - (2,519) (2,519) 39,187 |
At 31/3/23 £ 283,664 27,775 311,439 Movement in funds £ 216,295 - (2,519) (2,519) 213,776 |
|
|---|---|---|---|---|
21. EMPLOYEE BENEFIT OBLIGATIONS
Humbercare Limited operates various pension schemes resulting in a pensions charge in the Statement of Financial Activities of £174,938 (2023: £158,243). There were outstanding contributions of £27,217 (2023: £30,806) at the year end.
Details of the various schemes are as follows:
TPT Retirement Solutions - The Growth Plan
The company participates in the scheme, a multi-employer scheme which provides benefits to some 638 non-associated participating employers. The scheme is a defined benefit scheme in the UK It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.
The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.
The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.
Page 21
continued...
Humbercare Limited
Notes to the Financial Statements - continued for the year ended 31st March 2024
21. EMPLOYEE BENEFIT OBLIGATIONS - continued
A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:
Deficit contributions
From 1 April 2022 to 31 January 2025 - £3,312,000 per annum (payable monthly)
Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies.
The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.
Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.
PRESENT VALUES OF PROVISION
| PRESENT VALUES OF PROVISION | |||
|---|---|---|---|
| 2024 | 2023 | ||
| £ | £ | ||
| Present value of provision | 1,386 | 2,967 | |
| RECONCILIATION OF OPENING AND CLOSING PROVISIONS | |||
| 2024 | 2023 | ||
| £ | £ | ||
| Provision at start of period | 2,967 | 4,654 | |
| Unwinding of the discount factor (interest expense) | 114 | 88 | |
| Deficit contribution paid | (1,696) | (1,696) | |
| Remeasurements - impact of any change in assumptions | 1 | (79) | |
| Remeasurements - amendments to the contribution schedule | - | - | |
| Provision at end of period | 1,386 | 4,654 | |
| INCOME AND EXPENDITURE IMPACT | |||
| 2023 | 2023 | ||
| £ | £ | ||
| Interest expense | 114 | 88 | |
| Remeasurements - impact of any change in assumptions | 1 | (79) | |
| Remeasurements - amendments to the contribution schedule | - | - | |
| ASSUMPTIONS | |||
| 2024 | 2023 | ||
| % | % | ||
| Rate of discount | 5.31 | 5.52 |
The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.
Page 22
continued...
Humbercare Limited
Notes to the Financial Statements - continued for the year ended 31st March 2024
21. EMPLOYEE BENEFIT OBLIGATIONS - continued
TPT Retirement Solutions - Career Average Revalued Earnings ("CARE") Pension Scheme
The company participates in the scheme, a multi-employer scheme which provides benefits to some 37 non-associated employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.
The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.
The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.
A full actuarial valuation for the scheme was carried out at 30 September 2022. This valuation showed assets of £49.6m, liabilities of £57.1m and a deficit of £7.5m. To eliminate this funding shortfall, the Trustee asked the participating employers to pay additional contributions to the scheme as follows:
Deficit contributions
From 1 April 2024 to 31 March 2027 - £1,672,000 per annum (payable monthly and increasing by 3% each 1st April)
The recovery plan contributions are allocated to each participating employer in line with their estimated share of the scheme liabilities.
Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.
| PRESENT VALUES OF PROVISION | |||
|---|---|---|---|
| 2024 | 2023 | ||
| £ | £ | ||
| Present value of provision | 143,821 | 210,809 | |
| RECONCILIATION OF OPENING AND CLOSING PROVISIONS | |||
| 2024 | 2023 | ||
| £ | £ | ||
| Provision at start of period | 210,809 | 264,983 | |
| Unwinding of the discount factor (interest expense) | 9,650 | 6,093 | |
| Deficit contribution paid | (49,672) | (48,225) | |
| Remeasurements - impact of any change in assumptions | 453 | (12,042) | |
| Remeasurements - amendments to the contribution schedule | (27,419) | - | |
| Provision at end of period | 143,821 | 210,809 | |
| INCOME AND EXPENDITURE IMPACT | |||
| 2024 | 2023 | ||
| £ | £ | ||
| Interest expense | 9,650 | 6,093 |
Page 23
continued...
Humbercare Limited
Notes to the Financial Statements - continued for the year ended 31st March 2024
21. EMPLOYEE BENEFIT OBLIGATIONS - continued
| Remeasurements - impact of any change in assumptions | 453 | (12,042) |
|---|---|---|
| Remeasurements - amendments to the contribution schedule | (27,419) | - |
| ASSUMPTIONS | ||
| 2024 | 2023 | |
| % | % | |
| Rate of discount | 4.95 | 5.18 |
The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.
22. RELATED PARTY DISCLOSURES
Parasol Homes
J Malyon was previously the Chair for Parasol Homes, later resigning in July 2022. Total transactions with Parasol Homes amounted to purchases of £465,309 (2023: £455,886), of which £80,856 (2023: £77,421) was outstanding at the year end.
23. ULTIMATE CONTROLLING PARTY
The charitable company, being limited by guarantee, has no share capital and was controlled throughout the period by its members and therefore no one party had ultimate control.
24. INDEMNITY INSURANCE
The current cover for indemnity insurance for the charity and charity trustees is £1,000,000 (2023: £1,000,000).
Page 24
Humbercare Limited
Detailed Statement of Financial Activities for the year ended 31st March 2024
INCOME AND ENDOWMENTS Donations and legacies Other income Donations Sir James Reckitt Charity Investment income Dividends received Charitable activities Insurance claims Grants University of Hull Supporters Lodgings Providers Rents received Total incoming resources EXPENDITURE Charitable activities Wages Social security Pensions Client properties rent Client properties rates, utilities and cleaning Client properties repairs Payments to carers Consultancy fees Client properties dilapidation provision Other staff costs Staff recruitment Staff travel and subsistence Staff training Fines and penalties Depreciation of tangible fixed assets Interest on pension scheme liabilities Support costs Administration Bad debts Office rent, rates, utilities and cleaning Carried forward |
2024 £ 758 2,555 20,000 23,313 942 147,194 2,347,015 - 101,694 7,203,765 9,799,668 9,823,923 3,056,316 268,499 174,938 2,883,642 216,609 874,939 26,064 516,505 355,000 233,642 49,069 53,800 23,908 691 71,488 9,764 8,814,874 - 177,864 177,864 |
2023 £ 940 3,010 15,000 18,950 898 - 2,314,488 6,280 98,573 6,003,817 8,423,158 8,443,006 2,993,777 257,322 158,243 2,570,219 192,529 585,152 34,525 495,872 - 80,172 49,158 62,596 22,031 15,368 50,479 9,226 7,576,669 2,218 132,775 134,993 |
|---|---|---|
This page does not form part of the statutory financial statements
Page 25
Humbercare Limited
Detailed Statement of Financial Activities for the year ended 31st March 2024
Administration Brought forward Insurances Telephones Printing, stationary and postage IT support Memberships and subscriptions Health and safety Motor expenses Sundry expenses Depreciation of tangible and heritage assets Governance costs Legal and professional fees Audit and accountancy fees Total resources expended Net income before gains and losses Realised recognised gains and losses Realised gains/(losses) on fixed asset investments Net income |
2024 £ 177,864 246,021 102,879 93,424 122,099 37,492 7,559 4,313 3,073 6,902 801,626 27,038 39,142 66,180 9,682,680 141,243 3,387 144,630 |
2023 £ 134,993 179,161 94,466 54,819 129,886 28,299 7,009 3,315 3,640 5,474 641,062 10,274 40,412 50,686 8,268,417 174,589 (2,519) 172,070 |
|---|---|---|
This page does not form part of the statutory financial statements
Page 26