HOME-START_ARUN,_WORTHING - Accounts

Seeing the worst of the pandemic behind us was a relief but one short-lived as families who scraped through that difficult time are now faced with the cost-of-living crisis.

A survey sent to our families in January found:

• 93% of respondents were reducing money spent on food

• 96% will change the way they heat their home

• 32% already used foodbanks and 29% said they may do soon

• 61% were in receipt of benefits

• 46% of children received school meals

Alongside emotional support, our volunteers and staff have provided more practical support than ever, either with goods donated directly to us, or by acting as a conduit with services such as the Foodbanks, Baby Bundles, Citizens Advice and local Housing Departments.

Remaining sustainable and able to deliver a meaningful service in a time of great need for families with young children, has meant some hard decisions for our trustee board. With our Chief Executive, we have had to plan for the continuing cost-of-living crisis, not just for the families we support, but also for our service. A planned reduction in resources to meet our projected income, affects our team and the number of families we can support. Our aim though is one of re-growth once multi-year funding has been secured.

The coming winter period will see secured funding enabling us to support families to save energy and to make the most of the food budgets. Local knitters are preparing Warm Packs for children and parents, and we will regularly speak to families about how they are coping.

We continue to upskill our staff team, with everyone having completed Equity, Equality, Diversity and Inclusion training, which is now being rolled out to our volunteers.

The financial climate does pose some concerns, but the proactive approach taken by our board gives the staff and volunteer team, our referrers, funders and, most importantly, families that we will be here for the foreseeable time ahead, helping to build happier futures for children in our community.

The trustees present their annual report and financial statements for the year ended 31 March 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "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).

Home-Start Arun, Worthing & Adur (HSAWA) support families that most need help and engages those who feel isolated from their community. We provide a preventative and early intervention service, focusing on the strengths of the family and encouraging the uptake of relevant support. All our services are free at the point of access.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding the activities of the charity.

Volunteers and families

During 2022/23 52 volunteers, 10 trustees and 13 members of staff ensured 400 children in 202 families were supported over the year.

Other facts from the year include:

• 86% felt more involved in their children's development, early learning and socialisation

• 97% felt better able to listen to children and manage their behaviour

• 95% felt more able to manage the household budget

• 94% said they felt less isolated

• 92% told us their mental health had improved

• 97% felt more able to cope with multiple births or multiple children under 5

• 100% felt children had benefited from their (parents') counselling

Referrers

Referrers tell us how our support “can often prevent escalation to social care services, therefore saving money further down the line”, and that “without their expertise, knowledge and compassion many families would be in dire situations”.

Their own resources are stretched to capacity and so “the (Home-Start) support given reassures us as professionals that the family is having extra input on a practical basis which we are unable to offer, this in turn supports mental health which is vitally important”.

Funding

At the beginning of 2023, we were facing a high deficit. Whilst a real challenge for our fundraiser, her dogged determination saw us ending 2022/23 with an almost balanced budget. Indications are that the coming few years are going to see further challenges in the fundraising landscape, which includes seeing many small charities closing. Our trustees have taken the difficult decision to reduce our costs in order to ensure the sustainability of our service, with the aim of growth once funding has been secured.

The trustees have considered the required level of reserves, appropriate to the charity’s need. The aim is to hold 5 months of expenditure as a reserve. This is based on the charity’s size and the level of financial commitments. The trustees aim to ensure that the charity will be able to continue to fulfil its charitable objective even if there is a temporary shortfall in income or increase in expenditure. The trustees endeavour not to set aside funds unnecessarily. At the end of the year the charity had a total fund value of £140,354. The free reserve of the charity was £114,503 - this includes the designated fund we hold as part of the Reserves Policy. The trustees aim to hold 5 months of Reserves and the charity budgets this to have been £103,846 in 2022/23.

Home-Start AWA is a registered charity and a company limited by guarantee. It is regulated by the Charity Commission. The charity is governed by a board of 10 trustees, at the time of signing (who, for the purpose of company law, are also directors of the company), which oversees Home-Start AWA in the public interest in accordance with the charitable objects and powers contained within the Memorandum of Association and Articles of Association. The board has responsibility for setting the strategic direction of the charity, ensuring that proper financial arrangements are in place, and ensuring that Home-Start AWA remains focused on delivering its outcomes for the benefit of the public. The board appoints a Chief Executive to manage the day-to-day operations of the charity.

The trustees confirm that they have referred to the Charity Commission’s guidance on public benefit and the Charity Governance Code (for smaller charities). In 2023/24 the board intends to continue benchmarking its governance against the principles in the Charity Governance Code. The annual trustee skills audit will see the recruitment of new trustees through an open and competitive process. New trustees receive an induction to brief them on their responsibilities, the charity’s strategy and business plans, and key activities. Trustees are offered the opportunity to attend additional training events, which in 2022/23 included governance related tropics, safeguarding and data protection.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

Managing Risk

We continue to analyse risks to the charity at every bi-monthly board meeting. The top four risks on the charity’s risk register, along with summary mitigations, at the end of 2022/23 financial year were as follows:

The charity’s priorities are driven by its Strategy and Operational Plans. Our overarching priorities for 2022/23 are:

• Here for everyone

Work with a diverse range of families who find themselves in challenging circumstances

• Improve our offer

Continually review and improve our services to meet the individual needs of more families

• Financially sound

Maintain a balanced budget supporting small and local infrastructure

• Early support

Focus on early intervention and prevention support - resisting pressure to work with families with more complex needs

• Volunteer led

Grow and develop our volunteer network, ensuring we continue to deliver most of our support through volunteers

• Greater awareness

Raise our local profile while increasing engagement with the wider community

• Develop responsibly

Become an even more resourceful and sustainable organisation

Our Strategic Plan is currently being reviewed and a refreshed version will be shared on our website.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

The trustees' report was approved by the Board of Trustees.

I report to the trustees on my examination of the financial statements of Home-Start Arun, Worthing & Adur (the charity) for the year ended 31 March 2023.

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or

the financial statements do not accord with those records; or

the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2023.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Home-Start Arun, Worthing & Adur is a private company limited by guarantee incorporated in England and Wales. The registered office is 5C Park Farm, Chichester Road, Arundel, West Sussex, BN18 0AG, United Kingdom.

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, the principal accounting policies adopted are set out below.

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

The trustees accept there is increased uncertainty, but given the track record of the organisation to provide social impact to its beneficiaries, they believe that there are no material uncertainties about the Charity's ability to continue as a going concern.

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Designated funds are set aside by the trustees out of unrestricted general funds for specific purposes or projects.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Charitable grants

Administrative expenses

Property costs

Activities (inc FACT)

Counselling

Family groups

Travel and subsistence - staff

Volunteer costs

Administrative expenses

Telephone and IT

Training and recruitment

Travel and subsistence

Website

Consultancy

The average monthly number of employees during the year was:

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £4,811 (2022 - £3,607).

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

The trustees have reviewed the charity's needs for reserves last year in line with guidance issued by the Charity Commission and consider it prudent that designated reserves should be sufficient to cover:

• We aim to hold five months running costs in order to negate any problems with cash flow due to late payments of grants etc. to ensure there will be no interruptions to the service provided to the families. If funds become available we will increase the Designated Fund accordingly.

• All necessary expenses for the closure of the scheme in the event that this proves necessary - to include staff redundancies, outstanding rent on the office accommodation and other associated closure costs.

The trustees believe that reserves should be at least at this level to ensure the charity can run efficiently and meet the needs of the beneficiaries. Trustees monitor the level of unrestricted reserves at each Management Board meeting. The Designated Funds are wholly represented by the Charity's cash reserves.

There were no disclosable related party transactions during the year (2022 - none).