Fortunatus Housing Solutions - Charities report - 22.2
Fortunatus Housing Solutions - Charities report - 22.2
| REGISTERED COMPANY NUMBER: |
| REGISTERED CHARITY NUMBER: |
| REPORT OF THE TRUSTEES AND |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 AUGUST 2023 |
| FOR |
| FORTUNATUS HOUSING SOLUTIONS |
| FORTUNATUS HOUSING SOLUTIONS |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 AUGUST 2023 |
| Page |
| Report of the Trustees | 1 | to | 8 |
| Report of the Independent Auditors | 9 | to | 12 |
| Statement of Financial Activities | 13 |
| Balance Sheet | 14 |
| Cash Flow Statement | 15 |
| Notes to the Cash Flow Statement | 16 |
| Notes to the Financial Statements | 17 | to | 26 |
| FORTUNATUS HOUSING SOLUTIONS (REGISTERED NUMBER: 07744211) |
| REPORT OF THE TRUSTEES |
| FOR THE YEAR ENDED 31 AUGUST 2023 |
| 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 2023. 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 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. |
| In the short term, the charity's aims are to continue to house 165 vulnerable adults in the community successfully following a difficult period over the last couple of years caused by the global pandemic of Covid 19, with ramifications of this continuing in to 2022/23.These ramifications continue into 2023/24 due to rising interest rates and inflation nationally. |
| The charity carried out a review of it charges and restructured its charging formula in April 2022 and this new charging formula and increases were accepted by the local authorities Housing Benefit departments that the charity works within. Based on 170 tenants, this generated a further approximate £120,000 per year income (at year end August 2023, there were less than 170 tenants) which enabled a robust budget to be written in September 2023 to incorporate rising costs within the charity. |
| In the longer term, the charity's main objective is to maintain stability for its tenants and ensure that the charity is always working within the remits of the housing benefit regulations. |
| The charity's managing director continues to play a key part in the current reform of supported housing funding that is currently being legislated in parliament and in her position as President of the lobbying organisation the IRRV (Institute of Rating, Rents and Valuation) is again speaking at several prominent conferences in the coming year about the challenges faced in this sector in the coming year. In 2022, the charity were the winners of the IRRV's national social inclusion award at their Annual Conference Performance Awards and the Managing Director continues to speak about this success at national events in 2023 and going forward in to 2024 |
| FORTUNATUS HOUSING SOLUTIONS (REGISTERED NUMBER: 07744211) |
| REPORT OF THE TRUSTEES |
| FOR THE YEAR ENDED 31 AUGUST 2023 |
| OBJECTIVES AND ACTIVITIES |
| 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. |
| The charity's tenants are vulnerable adults, referred to the charity by local authorities and NHS trusts for specialist housing. |
| Working with local authorities and NHS trusts to receive referrals for housing that meet the criteria required for funding, ensures that there is continuity of funding and a best practice method adopted. |
| The main aim and therefore activity of the charity is that each vulnerable adult is housed for life and often for the first time stays in 1 property for longer than 6 months. This is done by a method of wrap around support available 24 hours a day and a methodology of funding whatever is needed to make that tenancy a success. This includes a fully furnished home, support with bills, replaced furnishings if damaged due to poor mental health, books, specific beds, bedding etc - the list is unlimited. |
| The majority of the charity's tenants have been housed with the charity for 5 years or more, a very quantifiable success for the individuals housed and for the savings to the wider community. |
| The charity's achievements are therefore measured by the success of vulnerable adults living with them for longer than 6 months and the money saved therein to the public purse. See Measuring of Success for how these achievements are recorded. |
| The charity's measure of success is with regards to the meeting of its objectives, as follows: |
| * Housing vulnerable adults for a period of 6 months or longer |
| * Securing funding to house vulnerable adults by adhering to the housing benefit regulations criteria and keeping abreast of legislation changes |
| * Recording Value for Money savings to the public purse |
| These successes are recorded using a piece of software from Destin Solutions. This enables the charity to record every individual it houses, where they were housed previously, the longevity of their tenancy and the savings provided to the public purse for the period housed with the charity. These saving figures are provided to the individual local authorities. |
| Continued membership of the IRRV, Chartered Institute of Housing and participation in government reform ensures that legislation is always adhered to. |
| Public benefit |
| In setting our objectives and planning our activities our trustees have given careful consideration to the Charity Commission's general guidance on public benefit and, their guidance on fee-charging regarding services provided. |
| FORTUNATUS HOUSING SOLUTIONS (REGISTERED NUMBER: 07744211) |
| REPORT OF THE TRUSTEES |
| FOR THE YEAR ENDED 31 AUGUST 2023 |
| OBJECTIVES AND ACTIVITIES |
| Grant income |
| 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 regarding 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 was required to provide management information to show that it's housing is not a short-term solution (longevity of tenants) and that it 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 (e.g., long term hospital). The savings to the public purse per annum currently exceeds £2,000,000 per annum. |
| Fortunatus went 'live' with a new system from Destin Solutions in early 2019, which it has continued to develop since, producing reports for local government funding decision makers of the savings to the public purse and wider community. The system records all referrals into the charity and records 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 enables reports to be produced and provided to both local authorities and central government. |
| In 2020 a further consultation took place that resulted in a new government bill in October 2023. This bill gives local authorities the powers to regulate supported accommodation further with regards to value for money and quality of support. |
| This has been piloted in 5 local authorities in England and is due further public consultation in 2024. |
| The Managing Director has been involved in this consultation throughout and the charity already records value for money savings and quality inspections to the local authorities it works within. The Managing Director has spoken nationally about these changes in late 2023 and continues to do so going in to 2024. |
| In addition, the charity currently has a waiting list of 23 individuals awaiting housing, the upfront cost to housing each of these is approximately £3,000 per head. |
| The charity has also committed to another 10-year lease in 2018, with a rent break clause in 2023 to be negotiated. This was agreed from August 2023 and the lease for Unit 9 Colville Court has increased by almost 100%, however rent modelling from 2023 had already incorporated this expected rise in the service charge included in the service user's rent charges. Information regarding commercial market rents was already available before this lease increase. The charity has acquired new vehicles to lease for a 3-year period and where prudent has extended some leases to 5 years. 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. |
| The Housing Support team continue to be based from home and go out in the community and carry out their fortnightly meetings virtually (with an in person meeting once a month). |
| FORTUNATUS HOUSING SOLUTIONS (REGISTERED NUMBER: 07744211) |
| REPORT OF THE TRUSTEES |
| FOR THE YEAR ENDED 31 AUGUST 2023 |
| OBJECTIVES AND ACTIVITIES |
| The decision was made again by trustees to carry forward a provision at year end, totalling £43,000 - this is for known dilapidations on the 31st of August 2023 and a provision for this work (as per the same modelling as the previous year) and is a model that the charity has used for a number of years. |
| Volunteers |
| The charity currently has no volunteers on a daily basis, although two of the trustees are paid expenses only. |
| Recruitment for 3 more trustees began in September 2022 (they were appointed in November 2022) |
| The charity continues to use the Unity lottery; however, its main funding remains housing benefit from local government. |
| ACHIEVEMENT AND PERFORMANCE |
| Charitable activities |
| The charity did not increase its number of houses and tenants, the housing market is quite volatile at the moment and some owners of properties had decided to sell due to rising mortgage rates. These are now gradually being replaced again. Due to the nature of the charity's tenants, unavoidable voids due to deaths, severe mental health breakdown and other factors also play a part. It has been agreed by the board that growth for 2023/24 will be 0 and the charity will attempt to stay at the same size. |
| 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 and Business Development 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 |
| What charity did achieve in this period was: |
| * It maintained weekly contact with all its vulnerable tenants throughout several lockdowns and working within government guidelines |
| * It continued to work with local authorities regarding best practice and legislation reform |
| * It continued to receive referrals for housing for vulnerable adults and accept these and successfully maintain its stock level |
| * It maintained its stock level despite a volatile housing market. |
| FORTUNATUS HOUSING SOLUTIONS (REGISTERED NUMBER: 07744211) |
| REPORT OF THE TRUSTEES |
| FOR THE YEAR ENDED 31 AUGUST 2023 |
| FINANCIAL REVIEW |
| Reserves policy |
| The Trustees have considered the amount that would be required to administer the organisation in the event of a crisis. This would include potential costs of redundancy, notice periods, accounting, legal fees and repayment of any long-term contracts on closure. A prudent sum would equate to three months operating costs with within the unrestricted general reserve - around £600,000 |
| The unrestricted reserves at the year-end totalled £372,235. |
| Principle risks and uncertainties |
| The principles risk and uncertainties within the charity lie within certain key areas. |
| * Changes in Housing Benefit Funding. Changes in the legislation around the funding of supported accommodation could impact on the income of the charity. The Managing Director has 35 years of experience in the Housing Benefit field and is both a member of the main lobbying group (the IRRV) in this area and also a key contributor to the government's agenda on reform. Reports are regularly given to the management team and the trustees regarding any potential legislation changes and adaptations needed within the working practices of the charity. The Managing Director is already involved in the 2023/2024 public consultation re: funding and all proposed future changes are processes already in place at the charity. |
| * Rising costs of leasing properties. These rising costs are reviewed annually, and the rents charged to tenants and therefore the local authority are reviewed and amended annually. |
| * Rising costs of materials. These rising costs are reviewed annually, and the rents charged to tenants and therefore the local authority are reviewed and amended annually. |
| FUTURE PLANS |
| The charity's aim is to continue to provide housing for vulnerable adults in compliance with its funding stream |
| This requires: |
| * Continued involvement in the government review by the charity's Managing Director |
| * The review of costings again in April 2024 in conjunction with local authorities to allow for increases in rental costs and inflation |
| * Working closely with the police, local authorities and the NHS going forward |
| * Voids management, this is managed by a specialised team |
| * Acceptance of referrals. Referrals are now only accepted by the Managing Director as the final say and any previous neighbourhood anti-social behaviour has become a red flag regarding housing. |
| * The number of tenants each member of staff can support has been reviewed and the structure of this team changed. |
| Any future developments will only involve a solidification of the quality provided to the charity to its tenants. |
| 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. |
| FORTUNATUS HOUSING SOLUTIONS (REGISTERED NUMBER: 07744211) |
| REPORT OF THE TRUSTEES |
| FOR THE YEAR ENDED 31 AUGUST 2023 |
| STRUCTURE, GOVERNANCE AND MANAGEMENT |
| Directors |
| C Nicholson |
| S Pimblett |
| Induction and appointment of new trustees |
| Trustees are appointed based on 3 key principles - Skills, Knowledge, and Experience |
| Any recruitment of trustees is carried out by the chairman of the board and two key managers, and the methodology is to seek trustees who have skills in change management, overseeing projects, HR skills and skills that would enhance the charity. Knowledge in housing, local authority funding and mental health services would also be a desirable and experience in any or all of these fields, as well as experience in working within a financial environment that includes budgets. |
| Any recruitment of trustees is carried out via a verified recruitment path (LinkedIn etc) and a shortlist is produced by the management team and chairman and a series of interviews takes place prior to appointment. |
| REFERENCE AND ADMINISTRATIVE DETAILS |
| Registered Company number |
| Registered Charity number |
| Registered office |
| Trustees |
| Company Secretary |
| FORTUNATUS HOUSING SOLUTIONS (REGISTERED NUMBER: 07744211) |
| REPORT OF THE TRUSTEES |
| FOR THE YEAR ENDED 31 AUGUST 2023 |
| REFERENCE AND ADMINISTRATIVE DETAILS |
| Auditors |
| 8 Winmarleigh St |
| Warrington |
| Cheshire |
| WA1 1JW |
| Accountants |
| WatkinsonBlack |
| 1st Floor, 264 |
| Manchester Road |
| Warrington |
| Cheshire |
| WA1 3RB |
| Key Management Personnel |
| Catherine Nicholson - Managing Director |
| Sara Pimblett - Business Development Manager |
| Rachel Langhorn - Property and Lettings Manager |
| Stephen Sweeney - Housing Manager |
| 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. |
| FORTUNATUS HOUSING SOLUTIONS (REGISTERED NUMBER: 07744211) |
| REPORT OF THE TRUSTEES |
| FOR THE YEAR ENDED 31 AUGUST 2023 |
| STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued |
| 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, Voisey & Co LLP, will be proposed for re-appointment at the forthcoming Annual General |
| Meeting. |
| Approved by order of the board of trustees on |
| 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 2023 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 31 August 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
| Basis for opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 |
| 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| FORTUNATUS HOUSING SOLUTIONS |
| Opinions 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| FORTUNATUS HOUSING SOLUTIONS |
| 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. |
| Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| 1 - We enquired of management and those charged with governance about actual and potential litigation and claims in the context of the company, including review of relevant nominal ledger accounts |
| 2 - We obtained an understanding of laws, regulations and guidance that affect the company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on their operations. Key laws, regulations and guidance that we identified included the Companies Act 2006, Charities Act 2011,Housing Benefit Regulations 1989, health and safety legislation and employment legislation. |
| 3 - We enquired of management and those charged with governance to identify any instances of non-compliance with laws and regulations. We also reviewed meeting minutes where available for evidence of non-compliance with relevant laws and regulations. |
| 4 - We reviewed the company's financial statement disclosures, and agreed all to supporting documentation to assess compliance with the applicable laws and regulations discussed above. |
| 5 - We gained an understanding of the controls that management have in place to prevent and detect fraud. We enquired of management about any incidences of fraud that had taken place during the accounting period. |
| 6 - The risk of fraud and non-compliance with laws and regulations was discussed within the audit team and tests were planned and performed to address these risks. |
| 7 - In addressing the risk of fraud due to management override of controls, we performed testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. |
| 8 - We also challenge management assumptions with regard to accounting estimates. |
| Despite appropriate planning and performing our work in accordance with International Auditing Standards, there are always inherent limitations that non-compliance is not detected. Non-compliance with laws and regulations is often further removed from the events and transactions reflected in the financial statements and material misstatements due to fraud can be deliberately concealed from auditors, for example through misrepresentation, forgery or collusion. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| FORTUNATUS HOUSING SOLUTIONS |
| 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. |
| for and on behalf of |
| Warrington |
| Cheshire |
| WA1 1JW |
| FORTUNATUS HOUSING SOLUTIONS |
| STATEMENT OF FINANCIAL ACTIVITIES |
| FOR THE YEAR ENDED 31 AUGUST 2023 |
| 31.8.23 | 31.8.22 |
| Unrestricted | Restricted | Total | Total |
| fund | fund | funds | funds |
| Notes | £ | £ | £ | £ |
| INCOME AND ENDOWMENTS FROM |
| Donations and legacies | 2 |
| Charitable activities | 3 |
| Activites for generating funds | 2,791,446 | - | 2,791,446 | 2,562,432 |
| Total |
| EXPENDITURE ON |
| Charitable activities | 4 |
| Activites for generating funds | 2,497,482 | - | 2,497,482 | 2,506,868 |
| Other |
| Total |
| NET INCOME |
| RECONCILIATION OF FUNDS |
| Total funds brought forward |
| TOTAL FUNDS CARRIED FORWARD | 231,449 |
| FORTUNATUS HOUSING SOLUTIONS (REGISTERED NUMBER: 07744211) |
| BALANCE SHEET |
| 31 AUGUST 2023 |
| 31.8.23 | 31.8.22 |
| Unrestricted | Restricted | Total | Total |
| fund | fund | funds | funds |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 11 |
| CURRENT ASSETS |
| Debtors | 12 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 13 | ( |
) | ( |
) | ( |
) |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| NET ASSETS |
| FUNDS | 14 |
| Unrestricted funds | 231,449 |
| TOTAL FUNDS | 231,449 |
| 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 |
| FORTUNATUS HOUSING SOLUTIONS |
| CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 AUGUST 2023 |
| 31.8.23 | 31.8.22 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 223,047 | (54,744 | ) |
| Interest element of hire purchase or finance lease rental payments paid |
- |
(7,224 |
) |
| Net cash provided by/(used in) operating activities | 223,047 | (61,968 | ) |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | (9,766 | ) | (3,740 | ) |
| Net cash used in investing activities | (9,766 | ) | (3,740 | ) |
| Change in cash and cash equivalents in the reporting period |
213,281 |
(65,708 |
) |
| Cash and cash equivalents at the beginning of the reporting period |
150,840 |
216,548 |
| Cash and cash equivalents at the end of the reporting period |
364,121 |
150,840 |
| FORTUNATUS HOUSING SOLUTIONS |
| NOTES TO THE CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 AUGUST 2023 |
| 1. | RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES |
| 31.8.23 | 31.8.22 |
| £ | £ |
| Net income for the reporting period (as per the Statement of Financial Activities) |
140,786 |
17,766 |
| Adjustments for: |
| Depreciation charges | 8,492 | 9,383 |
| Interest element of hire purchase and finance lease rental payments | - | 7,224 |
| Decrease in debtors | 26,199 | 70,303 |
| Increase/(decrease) in creditors | 47,570 | (159,420 | ) |
| Net cash provided by/(used in) operations | 223,047 | (54,744 | ) |
| 2. | ANALYSIS OF CHANGES IN NET FUNDS |
| At 1.9.22 | Cash flow | At 31.8.23 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 150,840 | 213,281 | 364,121 |
| 150,840 | 213,281 | 364,121 |
| Total | 150,840 | 213,281 | 364,121 |
| FORTUNATUS HOUSING SOLUTIONS |
| NOTES TO THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 AUGUST 2023 |
| 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 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. |
| The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £. |
| 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. |
| 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. |
| 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. |
| FORTUNATUS HOUSING SOLUTIONS |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 AUGUST 2023 |
| 1. | ACCOUNTING POLICIES - continued |
| Grant income |
| Grants relating to revenue are recognised in the statement of financial activities on a systematic basis over the periods in which the charity recognises the related costs for which the grant is intended to compensate. |
| Cash and cash equivalents |
| Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with bank, other short term liquid investments with original maturities of three months or less, and bank overdrafts. |
| Significant judgements and estimates |
| In the application of the company's accounting policies, the directors 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. |
| The key assumptions concerning the future and other key sources of estimation include uncertainties at the reporting date, which may have a risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial periods, are discussed below. |
| Provisions |
| The value of provisions in the accounts reflects obligations at the reporting date as a result of a past event from which it is probable the company will be required to transfer economic benefits. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements. |
| Going concern |
| The accounts have been prepared on the going concern basis. In the Trustees' opinion the charity has adequate resources to continue in operational existence and there are no material uncertainties that affect the charity's ability to operate on the going concern basis for the foreseeable future. |
| Financial Instruments |
| The following assets and liabilities are classified as financial instruments - trade debtors, other debtors, prepayments, trade creditors, other creditors, accruals and deferred income. |
| Financial instruments are measured at the undiscounted amount of the cash or other consdieration expected to be paid or received. |
| FORTUNATUS HOUSING SOLUTIONS |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 AUGUST 2023 |
| 1. | ACCOUNTING POLICIES - continued |
| Grant income |
| Financial assets and liabilities that are measured at amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Financial Activity, and the historic cost is included in the notes to the accounts. |
| 2. | DONATIONS AND LEGACIES |
| 31.8.23 | 31.8.22 |
| £ | £ |
| Donations |
| 3. | INCOME FROM CHARITABLE ACTIVITIES |
| 31.8.23 | 31.8.22 |
| Activity | £ | £ |
| Housing benefit receivable | Activites for generating funds | 2,791,446 | 2,562,432 |
| 4. | CHARITABLE ACTIVITIES COSTS |
| Support |
| Direct | costs (see |
| Costs | note 5) | Totals |
| £ | £ | £ |
| Activites for generating funds | 1,487,982 | 1,009,500 | 2,497,482 |
| 5. | SUPPORT COSTS |
| Information |
| Management | Finance | technology |
| £ | £ | £ |
| Activites for generating funds | 912,075 | 26,990 | 32,093 |
| FORTUNATUS HOUSING SOLUTIONS |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 AUGUST 2023 |
| 5. | SUPPORT COSTS - continued |
| Human | Governance |
| resources | costs | Totals |
| £ | £ | £ |
| Activites for generating funds | 28,417 | 9,925 | 1,009,500 |
| 6. | NET INCOME/(EXPENDITURE) |
| Net income/(expenditure) is stated after charging/(crediting): |
| 31.8.23 | 31.8.22 |
| £ | £ |
| Auditors' remuneration | 6,210 | 5,400 |
| Depreciation - owned assets |
| Hire of plant and machinery | 78,419 | 78,066 |
| Other operating leases | 1,282,934 | 1,224,217 |
| 7. | TRUSTEES' REMUNERATION AND BENEFITS |
| 31.8.23 | 31.8.22 |
| £ | £ |
| Trustees' salaries |
| Trustees' fees |
| Trustees' social security |
| Trustees' pensions paid |
| Trustees' expenses |
| Trustees fee compromise a £50 fee paid per meeting, in addition to £18,000 paid to IDAT Services Limited in relation to Ian Theobolds Consultancy Fees and £5,400 paid to Susan Ellison for Accountancy Services. Both of these engagements are carried out on normal commercial terms. |
| FORTUNATUS HOUSING SOLUTIONS |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 AUGUST 2023 |
| 8. | STAFF COSTS |
| 31.8.23 | 31.8.22 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| 956,278 | 883,775 |
| The average monthly number of employees during the year was as follows: |
| 31.8.23 | 31.8.22 |
| Average employees |
| The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was: |
| 31.8.23 | 31.8.22 |
| £100,000 - £110,000 | 1 | 1 |
| Included within staff costs is salaries relating to two directors. The total employment benefits of these directors was £139,038 (2022: £135,377). |
| During the year both the Managing Director and the Business Development Director were provided with a car. The lease payments in relation to these vehicles totalled £7,642 and £4,455 respectively. |
| The key management personnel of the charity comprise the trustees, MD, Housing Manager, Property and Lettings Manager (previously Operations Manager) and Business Development Manager (previously Fundraising Manager). The total employment benefits of these personnel was £222,188 (2022: £212,943). |
| 9. | LEASING COMMITMENTS |
| At the balance sheet date the charity had several financial commitments such as vehicle and property leases. |
| The total amount contracted for but not provided in the financial statements was £315,398 (2022 - £117,787). |
| The most significant lease commitment being a new 5 year property lease that was signed on 2nd August 2023. |
| FORTUNATUS HOUSING SOLUTIONS |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 AUGUST 2023 |
| 10. | EMPLOYEE LOANS |
| The charity has provided interest free loans to some employees. These loans are all repayable over more than 1 year. |
| The total balance on these loans at the year end was £19,289, and the amount repayable after more than 1 year was £12,656. |
| 11. | TANGIBLE FIXED ASSETS |
| Fixtures |
| Plant and | and | Motor | Computer |
| machinery | fittings | vehicles | equipment | Totals |
| £ | £ | £ | £ | £ |
| COST |
| At 1 September 2022 |
| Additions |
| At 31 August 2023 |
| DEPRECIATION |
| At 1 September 2022 |
| Charge for year |
| At 31 August 2023 |
| NET BOOK VALUE |
| At 31 August 2023 |
| At 31 August 2022 |
| 12. | DEBTORS |
| 31.8.23 | 31.8.22 |
| £ | £ |
| Amounts falling due within one year: |
| Trade debtors |
| Other debtors |
| Bonds recoverable | 27,239 | 28,393 |
| Employee loans | 6,633 | 4,693 |
| Prepayments and accrued income |
| FORTUNATUS HOUSING SOLUTIONS |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 AUGUST 2023 |
| 12. | DEBTORS - continued |
| 31.8.23 | 31.8.22 |
| £ | £ |
| Amounts falling due after more than one year: |
| Employee loans | 12,656 | 13,396 |
| Aggregate amounts |
| 13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 31.8.23 | 31.8.22 |
| £ | £ |
| Trade creditors |
| Social security and other taxes |
| Pensions | 4,912 | 4,728 |
| Provisions | 42,890 | 40,332 |
| Accrued expenses |
| A provision is provided in order to cover the costs incurred in relation to property dilapidation. This is provided for at £220 per property for a general provision, where a property requires smaller remedial work or for specific provisions a calculated estimate is made. |
| As at 31st August 2023, the provision was made up of £34,750 specific provisions and £8,140 general provisions. |
| Analysis of provisions: |
| Brought forward balance: £40,223 |
| Amount utilised in the year: £24,583 |
| Amount provided for in the year: £27,250 |
| Carried forward: £42,890 |
| FORTUNATUS HOUSING SOLUTIONS |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 AUGUST 2023 |
| 14. | MOVEMENT IN FUNDS |
| Net |
| movement | At |
| At 1.9.22 | in funds | 31.8.23 |
| £ | £ | £ |
| Unrestricted funds |
| General fund | 231,449 | 140,786 | 372,235 |
| TOTAL FUNDS | 140,786 | 372,235 |
| Net movement in funds, included in the above are as follows: |
| Incoming | Resources | Movement |
| resources | expended | in funds |
| £ | £ | £ |
| Unrestricted funds |
| General fund | 2,792,670 | (2,651,884 | ) | 140,786 |
| TOTAL FUNDS | ( |
) | 140,786 |
| Comparatives for movement in funds |
| Net |
| movement | At |
| At 1.9.21 | in funds | 31.8.22 |
| £ | £ | £ |
| Unrestricted funds |
| General fund | 213,683 | 17,766 | 231,449 |
| TOTAL FUNDS | 213,683 | 17,766 | 231,449 |
| FORTUNATUS HOUSING SOLUTIONS |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 AUGUST 2023 |
| 14. | MOVEMENT IN FUNDS - continued |
| Comparative net movement in funds, included in the above are as follows: |
| Incoming | Resources | Movement |
| resources | expended | in funds |
| £ | £ | £ |
| Unrestricted funds |
| General fund | 2,563,243 | (2,545,477 | ) | 17,766 |
| TOTAL FUNDS | 2,563,243 | (2,545,477 | ) | 17,766 |
| A current year 12 months and prior year 12 months combined position is as follows: |
| Net |
| movement | At |
| At 1.9.21 | in funds | 31.8.23 |
| £ | £ | £ |
| Unrestricted funds |
| General fund | 213,683 | 158,552 | 372,235 |
| TOTAL FUNDS | 213,683 | 158,552 | 372,235 |
| A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows: |
| Incoming | Resources | Movement |
| resources | expended | in funds |
| £ | £ | £ |
| Unrestricted funds |
| General fund | 5,355,913 | (5,197,361 | ) | 158,552 |
| TOTAL FUNDS | 5,355,913 | (5,197,361 | ) | 158,552 |
| FORTUNATUS HOUSING SOLUTIONS |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 AUGUST 2023 |
| 15. | RELATED PARTY DISCLOSURES |
| Julian Nicholson is the husband of a director and in a role of prominence. |
| Included within employee loans is an amount owed from a director, Sara Pimblett. The outstanding balance total £1,700 with £1,200 of this being payable in the next 12 months. |
| Also included within employee loans, is a loan to key management personnel, totalling £3,200 with £1,200 of this being payable in the next 12 months |
| 16. | PENSION COMMITMENTS |
| The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £38,258 (2022: £36,392). |
| Contributions totalling £4,912 (2022: £4,728) were payable to the scheme at the end of the year and are included in creditors. |