Fortunatus Housing Solutions - Charities report - 18.1

REGISTERED COMPANY NUMBER: 07744211 (England and Wales)

REGISTERED CHARITY NUMBER: 01144246

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED

31 AUGUST 2018

FOR

FORTUNATUS HOUSING SOLUTIONS

FORTUNATUS HOUSING SOLUTIONS

CONTENTS OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2018

Page

Report of the Trustees

1 to 4

Report of the Independent Auditors

5 to 7

Statement of Financial Activities

8

Balance Sheet

9

Notes to the Financial Statements

10 to 15

FORTUNATUS HOUSING SOLUTIONS

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 AUGUST 2018

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 31 August 2018. 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 2015).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The charity's objective is to house vulnerable adults in the community, whilst providing them with weekly

support to manage their bills and any other housing related issues.

The charity aims to do this with the aid of local government funding and any other fund raising activities that

it sees fit.

Significant activities

The charity's main activity is the sourcing of individual properties, within respectable areas of the

community, which enable successful independent living for its tenants. Once these properties are sourced,

the charity's weekly activity includes the support of these individuals in their home.

Grantmaking

The charity is funded by local government funding, in the form of Housing Benefit for supported and exempt

accommodation. This funding is received when certain criteria are met with regard to the vulnerability of the

tenants and the fact that the charity is a not for profit organization.

The funding for supported accommodation was reviewed and the results of that review were published in

May 2018. The decision has been made centrally to leave the funding of supported accommodation as it

currently is, providing a stable and ongoing funding structure for the charity. From 2020 the charity will be

required to provide management information to show that it's housing is not a short-term solution (longevity

of tenants) and also that I provides Value For Money.

To this aim, the charity already collates data of the savings provided by a tenant being housed with

Fortunatus, by comparing the weekly costs of living with Fortunatus compared to the weekly costs of where

they lived previously (eg, long term hospital). The savings to the public purse per annum currently exceeds

£2,000,000 just for the new tenants housed in 2017/2018.

Fortunatus are having a new system developed, due to go 'live' in the spring of 2019, which will record all

referrals into the charity and record the length of time for the process of receiving a referral to housing

someone, how long they live with Fortunatus and the weekly savings provided. This will enable reports to be

produced and provided to both local authorities and central government.

In addition, the charity currently has a waiting list of 14 individuals awaiting housing, the upfront cost to

housing each of these is approximately £42,000.

The charity has also committed to another 5 year lease on its premises and has acquired new vehicles to

lease for a 3 year period. The total of all its commitments is supported by the reserves it has gradually built

and these reserves will also enable the charity to further enhance the quality of life of its tenants.

In 2018, the charity employed two more full-time Housing Support Officers and 1 more full-time

Maintenance Engineer. This has enabled the charity to improve its performance regarding weekly visits to

tenants and maintenance jobs outstanding.

Volunteers

The charity currently has no volunteers on a daily basis, although two of the trustees are paid expenses only

The charity continues to sell Christmas Cards each year and also has become the charity of choice of a local

business. However, its main funding remains grants from local government

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The charity has increased its number of houses by 8 in 2017/18 which was 2 more than the target. There had

been 47 house moves to facilitate this growth. With the complexity of mental health and moves for a variety

of health and social reasons, the board has recognised that a growth of 6 (one every over month) is

achievable and provides a better quality service. This is reflected in the budget for 2018/2019

The charity has further expanded its housing support team in 2017/18 to ensure all tenants are visited on a

weekly basis and given more time to help them with both housing related support and any problems they

may have. This has again seen an increase in visits and a fall in the number of failed visits

Some maintenance services continue to be contracted out (gardening, window cleaning, decorating) to

enable the in-house maintenance team to spend more time with each individual when carrying out other

repairs. This has continued throughout the year and is used whenever necessary.

A local 'one-man' company has started to do rubbish removals for the charity, which has reduced costs from

using larger firms and preventing build-up of rubbish at the warehouse

The Communications Officer continues to provide concentrated resources into building the charity's

presence on the web and within social media, to help build an audience that will work hand in hand with the

fundraising team to build both awareness of mental health but also to encourage supporters to support us

financially. The Communications Officer also continues to work with the Business Development Manager to

raise awareness of fundraising events.

The management team of the MD, Housing Manager, Property and Lettings Manager (previously Operations

Manager) and Business Development Manager (previously Fundraising Manager) continue to ensure that all

parts of the business work within a tight and transparent framework of procedures that enable the charity to

house individuals promptly and safely in the community.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company,

limited by guarantee, as defined by the Companies Act 2006.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

07744211 (England and Wales)

Registered Charity number

01144246

Registered office

Unit 9

Colville Court

Winwick Quay

Warrington

Cheshire

WA2 8QT

Trustees

Mrs C Nicholson

I D Theobold

Mrs S Ellison

Mrs S Pimblett

Mrs J Dentith

Company Secretary

Ms R Langhorn

Auditors

WatkinsonBlack

1st Floor

264 Manchester Road

Warrington

Cheshire

WA1 3RB

STATEMENT OF TRUSTEES RESPONSIBILITIES

The trustees (who are also the directors of Fortunatus Housing Solutions 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

-

select suitable accounting policies and then apply them consistently;

-

observe the methods and principles in the Charity SORP;

-

make judgements and estimates that are reasonable and prudent;

-

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

-

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, WatkinsonBlack, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

Approved by order of the board of trustees on 5 February 2019 and signed on its behalf by:

Mrs C Nicholson - Trustee

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

FORTUNATUS HOUSING SOLUTIONS

Opinion

We have audited the financial statements of Fortunatus Housing Solutions (the 'charitable company') for the year ended 31 August 2018 which comprise the Statement of Financial Activities, the Balance Sheet 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 31 August 2018 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 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.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us

to report to you where:

-

the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

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 there is a material misstatement in the financial statements or a material misstatement of the other

information. 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.

Opinion on other matters prescribed by the Companies Act 2006

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

-

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

-

the Report of the Trustees has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the 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:

-

adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; 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 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.

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.

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.

David J Watkinson (Senior Statutory Auditor)

for and on behalf of WatkinsonBlack

1st Floor

264 Manchester Road

Warrington

Cheshire

WA1 3RB

5 February 2019

FORTUNATUS HOUSING SOLUTIONS

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 AUGUST 2018

31.8.18

31.8.17

Unrestricted fund

Restricted fund

Total funds

Total funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

1,757

-

1,757

10,114

Charitable activities

Activites for generating funds

2,407,752

-

2,407,752

2,165,919

Total

2,409,509

-

2,409,509

2,176,033

EXPENDITURE ON

Charitable activities

Activites for generating funds

2,355,173

-

2,355,173

2,146,927

NET INCOME

54,336

-

54,336

29,106

RECONCILIATION OF FUNDS

Total funds brought forward

116,171

-

116,171

87,065

TOTAL FUNDS CARRIED FORWARD

170,507

-

170,507

116,171

FORTUNATUS HOUSING SOLUTIONS

BALANCE SHEET

AT 31 AUGUST 2018

31.8.18

31.8.17

Unrestricted fund

Restricted fund

Total funds

Total funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

6

19,302

-

19,302

10,928

CURRENT ASSETS

Debtors

7

214,721

-

214,721

172,258

Cash at bank and in hand

91,124

-

91,124

62,921

305,845

-

305,845

235,179

CREDITORS

Amounts falling due within one year

8

(154,640

)

-

(154,640

)

(129,936

)

NET CURRENT ASSETS

151,205

-

151,205

105,243

TOTAL ASSETS LESS CURRENT LIABILITIES

170,507

-

170,507

116,171

NET ASSETS

170,507

-

170,507

116,171

FUNDS

9

Unrestricted funds

170,507

116,171

TOTAL FUNDS

170,507

116,171

These financial statements have been prepared in accordance with the special provisions of Part 15 of the

Companies Act 2006 relating to charitable small companies.

The financial statements were approved by the Board of Trustees on 5 February 2019 and were signed on its behalf by:

Mrs C Nicholson -Trustee

FORTUNATUS HOUSING SOLUTIONS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2018

1.	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 2015)', 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.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to

the funds, it is probable that the income will be received and the amount can be measured reliably.

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.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its

estimated useful life.

Plant and machinery

- 33% on cost

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the

trustees.

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.

Further explanation of the nature and purpose of each fund is included in the notes to the financial

statements.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight

line basis over the period of the lease.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to

the charitable company's pension scheme are charged to the Statement of Financial Activities in the

period to which they relate.

2.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

31.8.18

31.8.17

£

£

Auditors' remuneration

4,020

3,744

Depreciation - owned assets

9,007

8,323

Hire of plant and machinery

70,876

57,781

Other operating leases

1,159,875

1,095,298

3.	TRUSTEES' REMUNERATION AND BENEFITS

31.8.18

31.8.17

£

£

Trustees' salaries

84,161

81,691

Trustees' social security

10,444

10,134

94,605

91,825

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2018 nor for the year ended

31 August 2017.

4.	STAFF COSTS

The average monthly number of employees during the year was as follows:

31.8.18

31.8.17

Average employees

28

25

No employees received emoluments in excess of £60,000.

5.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted fund

Restricted fund

Total funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

10,114

-

10,114

Charitable activities

Activites for generating funds

2,165,919

-

2,165,919

Total

2,176,033

-

2,176,033

EXPENDITURE ON

Charitable activities

Activites for generating funds

2,146,927

-

2,146,927

Total

2,146,927

-

2,146,927

NET INCOME

29,106

-

29,106

RECONCILIATION OF FUNDS

Total funds brought forward

87,065

-

87,065

TOTAL FUNDS CARRIED FORWARD

116,171

-

116,171

6.	TANGIBLE FIXED ASSETS

Plant and machinery

£

COST

At 1 September 2017

52,465

Additions

17,381

At 31 August 2018

69,846

DEPRECIATION

At 1 September 2017

41,537

Charge for year

9,007

At 31 August 2018

50,544

NET BOOK VALUE

At 31 August 2018

19,302

At 31 August 2017

10,928

7.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.18

31.8.17

£

£

Trade debtors

139,509

98,576

Other debtors

47

42

Bonds recoverable

20,995

21,045

Employee loans

4,817

7,809

Prepayments

49,353

44,786

214,721

172,258

8.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.18

31.8.17

£

£

Trade creditors

40,686

35,005

Social security and other taxes

20,591

16,736

Pensions

2,642

-

Other creditors

13,269

5,140

Net wages

-

883

Factoring loan

51,986

54,603

Accrued expenses

25,466

17,569

154,640

129,936

9.	MOVEMENT IN FUNDS

At 1.9.17

Net movement in funds

At 31.8.18

£

£

£

Unrestricted funds

General fund

116,171

54,336

170,507

TOTAL FUNDS

116,171

54,336

170,507

Net movement in funds, included in the above are as follows:

Incoming resources

Resources expended

Movement in funds

£

£

£

Unrestricted funds

General fund

2,409,509

(2,355,173

)

54,336

TOTAL FUNDS

2,409,509

(2,355,173

)

54,336

Comparatives for movement in funds

At 1.9.16

Net movement in funds

At 31.8.17

£

£

£

Unrestricted Funds

General fund

87,065

29,106

116,171

TOTAL FUNDS

87,065

29,106

116,171

Comparative net movement in funds, included in the above are as follows:

Incoming resources

Resources expended

Movement in funds

£

£

£

Unrestricted funds

General fund

2,176,033

(2,146,927

)

29,106

TOTAL FUNDS

2,176,033

(2,146,927

)

29,106

A current year 12 months and prior year 12 months combined position is as follows:

At 1.9.16

Net movement in funds

At 31.8.18

£

£

£

Unrestricted funds

General fund

87,065

83,442

170,507

TOTAL FUNDS

87,065

83,442

170,507

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming resources

Resources expended

Movement in funds

£

£

£

Unrestricted funds

General fund

4,585,542

(4,502,100

)

83,442

TOTAL FUNDS

4,585,542

(4,502,100

)

83,442

10.	RELATED PARTY DISCLOSURES

During the year the charity paid consultancy fees to IDAT Services Limited of which Ian Theobold, a

trustee of the charity, is a director.

The charity also paid accountancy fees to Sue Ellison who is a trustee of the charity.

Both of these engagements were carried out on normal commercial terms.