Homeless Action Scotland Ltd - Charities report - 21.2
Homeless Action Scotland Ltd - Charities report - 21.2
| REGISTERED COMPANY NUMBER: |
| REGISTERED CHARITY NUMBER: |
| Report of the Trustees and |
| Unaudited Financial Statements For The Year Ended 31 March 2021 |
| for |
| Homeless Action Scotland Ltd |
| Homeless Action Scotland Ltd |
| Contents of the Financial Statements |
| For The Year Ended 31 March 2021 |
| Page |
| Report of the Trustees | 1 | to | 4 |
| Independent Examiner's Report | 5 |
| Statement of Financial Activities | 6 |
| Balance Sheet | 7 |
| Notes to the Financial Statements | 8 | to | 13 |
| Homeless Action Scotland Ltd (Registered number: SC077026) |
| Report of the Trustees |
| For The Year Ended 31 March 2021 |
| 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 March 2021. 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 |
| Objectives and aims |
| The company's overall objective is to improve the conditions of homeless people and those vulnerable to becoming homeless through three main strands of activity: |
| · Promoting effectiveness of services by the provision of training, conferences, information, advice, other services and support. |
| · Bringing together agencies involved with homeless people and providing a focus for mutual contact and co-operation amongst organisations involved with homeless people. |
| · Making representations in the best interests of homeless people and people vulnerable to becoming homeless. |
| In undertaking these activities Homeless Action Scotland works with its membership and the people who use their service. |
| The main outcomes from these activities are: |
| · That homeless people's interests are effectively represented in a range of social and housing policies and practices resulting in improved opportunities for them. |
| · That the concerns of services which prevent and tackle homelessness are reflected in policies and practices on homelessness, enabling better services for homeless people and those at risk of homelessness. |
| · That homelessness services are well informed about policy, practice and the causes and nature of homelessness enabling them to provide better services to homeless people. |
| In the past year, despite the particular challenges raised by the Covid 19 pandemic, Homeless Action Scotland has made considerable progress in pursuing these activities and achieving the stated outcomes, the main elements of which are described below. In its objectives and activities, Homeless Action Scotland operates for the public benefit. |
| Significant activities |
| An overview of the main activities: |
| · Given evidence to the Scottish Parliament which led to the amendment of key legislation. |
| · Given input and advice to statutory, voluntary and regulated bodies on improving practice and attitudes. |
| · Contributed directly to the Scottish Government's Homeless Prevention Strategy Group. |
| · Shared experience from across the UK and Europe on strategy and best practice to enhance understanding of homelessness and its causes. |
| · Issued targeted communications in various formats to thousands of readers. |
| · Took part in many groups, forums, networks and steering groups. |
| · Led a cross sectoral policy forum to inform wider work on debt, poverty and issues around specifics groups including older people, young people, women experiencing violence and those working on the frontline |
| · Played a key role in changing aspects of proposed government policy that may otherwise have had a deleterious effect on people's housing rights. |
| Homeless Action Scotland Ltd (Registered number: SC077026) |
| Report of the Trustees |
| For The Year Ended 31 March 2021 |
| ACHIEVEMENT AND PERFORMANCE |
| Looking forward |
| In the last year, with the dominance of Covid 19 in the policy responses to homelessness, Homeless Action Scotland has worked to ensure that the issues around poverty, debt and crucially evictions have been more prominent in public debate. We have used our platforms and the media to regularly put forward policy options and possibly solutions in consultation with our membership. |
| The pandemic has crisis has changed the horizon for many organisations and HAS will respond flexibly to do whatever it can do to support effective change and regulation to improve the chances of homeless people but crucially continue to carefully monitor the performance of public bodies in carrying out their legal duties. Homeless Action will continue to work in partnership and mutual cooperation with the Scottish Government and its associated agencies as well as colleagues in local government. |
| Volunteering |
| Homeless Action Scotland relies on the input from its Board of Directors which takes an active role in many aspects of its work. The company has also benefitted from a regular volunteer, who continues to make a significant contribution to the achievement of our activities. |
| FINANCIAL REVIEW |
| The accounts have been prepared in accordance with the Companies Act 2006, Charity and Trustee Investment (Scotland) Act 2005 and Regulation 8 of the charities Accounts (Scotland) Regulations 2006. This includes the primary Statement of Financial Activities. |
| The surplus for the year is £42,612 (2020: £650,477 surplus). The surplus in the prior year relating to charitable activities, excluding adjustments for the value of the pension fund, for the year was £9,477. Total unrestricted funds as at 31 March 2021 were a surplus of £111,716 (2020: £69,104 surplus). |
| Funding sources |
| The charity is dependent on grant funding from third party organisations for a significant proportion of its resources. The Directors took mitigating action through the year to ensure efficiencies and that has led to an improved reserves position. The Directors have directed that the organisation should attempt to diversify its grant funding going forward and this is the aim. |
| Reserves policy |
| The directors have established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets (the 'free reserves') held by the charity should be equivalent to six months of the resources expended. This has now been achieved. At this level the Directors are confident that the current activities of the charity would be able to continue in the event of a significant drop in funding. If this were to occur it would be necessary to consider how the funding would be replaced or activities changed. |
| In the light of the level of free reserves in hand and continuing vigilance on overheads, the Directors are confident that the charity is a going concern for the year 2021/22 and beyond. |
| STRUCTURE, GOVERNANCE AND MANAGEMENT |
| Governing document |
| The company was established by Articles of Association for charitable purposes. Its principal objective is improving the conditions of homeless people, particularly in Scotland, but also elsewhere, and those vulnerable to becoming homeless and to advance education on issues associated with homelessness for the public benefit. |
| The charitable company is limited by guarantee and has no share capital. Every member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up, such sum as may be required not exceeding £1. |
| Recruitment and appointment of new trustees |
| Management of the charitable company is the responsibility of the Directors who are elected at the Annual General Meeting in accordance with the Articles of Association. The Directors who served through the year are set out in the administrative section. |
| Homeless Action Scotland Ltd (Registered number: SC077026) |
| Report of the Trustees |
| For The Year Ended 31 March 2021 |
| STRUCTURE, GOVERNANCE AND MANAGEMENT |
| Risk management |
| The Directors have conducted their own review of the major risks to which the charitable company is exposed and have adopted measures to mitigate those risks. They have developed a Risk Register which identified the main risks to which the charity may be exposed which is considered regularly by the Board, and appropriate mitigation action is approved and monitored. The charitable company has taken measures to ensure it has in place transparent and accountable governance. |
| REFERENCE AND ADMINISTRATIVE DETAILS |
| Registered Company number |
| Registered Charity number |
| Registered office |
| Trustees |
| Company Secretary |
| Independent Examiner |
| Robb Ferguson Chartered Accountants |
| Regent Court |
| 70 West Regent Street |
| Glasgow |
| G2 2QZ |
| Solicitors |
| Shepherd & Wedderburn WS |
| Saltire Court |
| 20 Castle Terrace |
| Edinburgh |
| EH1 2ET |
| Bankers |
| The Royal Bank of Scotland Plc |
| 61 Forrest Road |
| Edinburgh |
| EH1 2QP |
| Approved by order of the board of trustees on |
| Homeless Action Scotland Ltd (Registered number: SC077026) |
| Report of the Trustees |
| For The Year Ended 31 March 2021 |
| Independent Examiner's Report to the Trustees of |
| Homeless Action Scotland Ltd (Registered number: SC077026) |
| I report on the accounts for the year ended 31 March 2021 set out on pages six to thirteen. |
| Respective responsibilities of trustees and examiner |
| The charity's trustees are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). The charity's trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the Accounts Regulations does not apply. It is my responsibility to examine the accounts as required under Section 44(1)(c) of the Act and to state whether particular matters have come to my attention. |
| Basis of the independent examiner's report |
| My examination was carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts. |
| Independent examiner's statement |
| In connection with my examination, no matter has come to my attention : |
| (1) | which gives me reasonable cause to believe that, in any material respect, the requirements |
| - | to keep accounting records in accordance with Section 44(1)(a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and |
| - | to prepare accounts which accord with the accounting records and to comply with Regulation 8 of the 2006 Accounts Regulations |
| have not been met; or |
| (2) | to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. |
| Graham M Cantlay CA |
| Robb Ferguson Chartered Accountants |
| Regent Court |
| 70 West Regent Street |
| Glasgow |
| G2 2QZ |
| 9 November 2021 |
| Homeless Action Scotland Ltd |
| Statement of Financial Activities |
| For The Year Ended 31 March 2021 |
| 2021 | 2020 |
| Unrestricted | Restricted | Total | Total |
| funds | funds | funds | funds |
| Notes | £ | £ | £ | £ |
| INCOME AND ENDOWMENTS FROM |
| Donations and legacies |
| Other trading activities | 2 | ( |
) | ( |
) |
| Total |
| EXPENDITURE ON |
| Charitable activities |
| Net gains on investments |
| NET INCOME |
| RECONCILIATION OF FUNDS |
| Total funds brought forward | ( |
) |
| TOTAL FUNDS CARRIED FORWARD | 69,104 |
| Homeless Action Scotland Ltd (Registered number: SC077026) |
| Balance Sheet |
| 31 March 2021 |
| 2021 | 2020 |
| Notes | £ | £ |
| FIXED ASSETS |
| Tangible assets | 7 |
| CURRENT ASSETS |
| Debtors | 8 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 9 | ( |
) | ( |
) |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| NET ASSETS |
| FUNDS | 12 |
| Unrestricted funds | 111,716 | 69,104 |
| TOTAL FUNDS | 111,716 | 69,104 |
| The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2021. |
| The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2021 in accordance with Section 476 of the Companies Act 2006. |
| The trustees acknowledge their responsibilities for |
| (a) | ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and |
| (b) | preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company. |
| 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 |
| Homeless Action Scotland Ltd |
| Notes to the Financial Statements |
| For The Year Ended 31 March 2021 |
| 1. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Homeless Action Scotland Ltd is a charitable company limited by guarantee incorporated in Scotland, United Kingdom. The address of the registered office is given in the company information - details of which can be found in the report of the trustees. The nature of the company's operations and principal activities are set out in the report of the trustees. |
| These financial statements have been prepared in accordance with the Charities SORP (FRS 102) "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 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. |
| The financial statements are presented in pounds sterling which is the functional currency of the company. |
| The significant accounting policies applied in the preparation of the financial statements are set out below. The policies have been consistently applied to all years presented unless otherwise stated. |
| Income |
| All income is recognised in the Statement of Financial Activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income: |
| - Voluntary income is received by the way of grants, donations and gifts and is included in full in the Statement of Financial Activities when receivable. Grants, where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity become unconditionally entitled to the grant. |
| - Incoming resources from charitable trading activity are accounted for when earned. |
| - Incoming resources from grants, where related to performance and specific deliverables, are accounted for as the charity earns the right to consideration by its performance. |
| Expenditure |
| 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. |
| Improvements to property | - |
| Fixtures and fittings | - |
| Computer equipment | - |
| 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. |
| Designated funds are investment funds which have been earmarked by the trustees for particular purposes. |
| 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. |
| Homeless Action Scotland Ltd |
| Notes to the Financial Statements - continued |
| For The Year Ended 31 March 2021 |
| 1. | ACCOUNTING POLICIES - continued |
| Defined benefit pension scheme |
| The charitable company was previously an admitted body of the Local Government Pension Scheme and therefore operated a defined benefit scheme administered by the Lothian Pension Fund. Contributions were charged to the Statement of Financial Activities as they became payable in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". |
| On 31 March 2020, the Scottish Ministers have agreed the request from Homeless Action Scotland for the substitution of funds. This means that the assets and liabilities will now be apart of the Scottish Homes Pension Fund,. As such, no payment towards the previously advised deficit will be required by Homeless Action Scotland the balance has been written off during the year. |
| Operating leases |
| The total cost of assets held under operating leases is charged to the Statement of Financial Activities as they fall due. |
| 2. | OTHER TRADING ACTIVITIES |
| 2021 | 2020 |
| £ | £ |
| Membership fees | (430 | ) | 2,665 |
| 3. | NET INCOME/(EXPENDITURE) |
| Net income/(expenditure) is stated after charging/(crediting): |
| 2021 | 2020 |
| £ | £ |
| Depreciation - owned assets |
| Examiner's fee | 2,700 | 2,520 |
| 4. | TRUSTEES' REMUNERATION AND BENEFITS |
| There were no trustees' remuneration or other benefits for the year ended 31 March 2021 nor for the year ended 31 March 2020. |
| Trustees' expenses |
| During the year the following amount was reimbursed to one trustee during the year: |
| 2021 | 2020 |
| £ | £ |
| Travel and subsistence | - | 49 |
| Homeless Action Scotland Ltd |
| Notes to the Financial Statements - continued |
| For The Year Ended 31 March 2021 |
| 5. | STAFF COSTS |
| 2021 | 2020 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| 115,118 | 117,542 |
| The average monthly number of employees during the year was as follows: |
| 2021 | 2020 |
| Core staff |
| During the year, total remuneration of £43,512 (2020 - £43,512) was paid to key management personnel who are senior management. |
| 6. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES |
| Unrestricted | Restricted | Total |
| funds | funds | funds |
| £ | £ | £ |
| INCOME AND ENDOWMENTS FROM |
| Donations and legacies |
| Other trading activities |
| Total |
| EXPENDITURE ON |
| Charitable activities |
| Net gains on investments |
| NET INCOME |
| RECONCILIATION OF FUNDS |
| Total funds brought forward | (581,373 | ) | - | ( |
) |
| TOTAL FUNDS CARRIED FORWARD | 69,104 | - | 69,104 |
| Homeless Action Scotland Ltd |
| Notes to the Financial Statements - continued |
| For The Year Ended 31 March 2021 |
| 7. | TANGIBLE FIXED ASSETS |
| Improvements | Fixtures |
| to | and | Computer |
| property | fittings | equipment | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 April 2020 and 31 March 2021 |
| DEPRECIATION |
| At 1 April 2020 |
| Charge for year |
| At 31 March 2021 |
| NET BOOK VALUE |
| At 31 March 2021 |
| At 31 March 2020 |
| 8. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2021 | 2020 |
| £ | £ |
| Trade debtors |
| Social security and other tax |
| Prepayments |
| 9. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2021 | 2020 |
| £ | £ |
| Trade creditors |
| Social security and other taxes |
| Accrued expenses |
| 10. | LEASING AGREEMENTS |
| Minimum lease payments under non-cancellable operating leases fall due as follows: |
| 2021 | 2020 |
| £ | £ |
| Within one year |
| Homeless Action Scotland Ltd |
| Notes to the Financial Statements - continued |
| For The Year Ended 31 March 2021 |
| 11. | ANALYSIS OF NET ASSETS BETWEEN FUNDS |
| 2021 | 2020 |
| Unrestricted | Restricted | Total | Total |
| funds | funds | funds | funds |
| £ | £ | £ | £ |
| Fixed assets | 753 | - | 753 | 1,692 |
| Current assets |
| Current liabilities | ( |
) | ( |
) | ( |
) |
| 111,716 | - | 111,716 | 69,104 |
| 12. | MOVEMENT IN FUNDS |
| Net |
| movement | At |
| At 1.4.20 | in funds | 31.3.21 |
| £ | £ | £ |
| Unrestricted funds |
| General fund | 69,104 | 42,612 | 111,716 |
| TOTAL FUNDS | 69,104 | 42,612 | 111,716 |
| Net movement in funds, included in the above are as follows: |
| Incoming | Resources | Movement |
| resources | expended | in funds |
| £ | £ | £ |
| Unrestricted funds |
| General fund | 191,671 | (149,059 | ) | 42,612 |
| TOTAL FUNDS | ( |
) | 42,612 |
| Comparatives for movement in funds |
| Net | Transfers |
| movement | between | At |
| At 1.4.19 | in funds | funds | 31.3.20 |
| £ | £ | £ | £ |
| Unrestricted funds |
| General fund | 29,627 | 14,477 | 25,000 | 69,104 |
| Defined benefit pension | (641,000 | ) | 641,000 | - | - |
| Building, equipment & repairs reserve | 30,000 | (5,000 | ) | (25,000 | ) | - |
| (581,373 | ) | 650,477 | - | 69,104 |
| TOTAL FUNDS | (581,373 | ) | 650,477 | - | 69,104 |
| Homeless Action Scotland Ltd |
| Notes to the Financial Statements - continued |
| For The Year Ended 31 March 2021 |
| 12. | MOVEMENT IN FUNDS - continued |
| Comparative net movement in funds, included in the above are as follows: |
| Incoming | Resources | Gains and | Movement |
| resources | expended | losses | in funds |
| £ | £ | £ | £ |
| Unrestricted funds |
| General fund | 173,846 | (159,369 | ) | - | 14,477 |
| Defined benefit pension | - | - | 641,000 | 641,000 |
| Building, equipment & repairs reserve | - | (5,000 | ) | - | (5,000 | ) |
| 173,846 | (164,369 | ) | 641,000 | 650,477 |
| TOTAL FUNDS | 173,846 | (164,369 | ) | 641,000 | 650,477 |
| 13. | RELATED PARTY DISCLOSURES |
| There were no related party transactions for the year ended 31 March 2021 (2020: none). |