Living Springs - Charities report - 22.2

REGISTERED COMPANY NUMBER: 04014173 (England and Wales)

REGISTERED CHARITY NUMBER: 1082726

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2023

FOR

LIVING SPRINGS

(A COMPANY LIMITED BY GUARANTEE)

Page

Report of the Trustees

1

to

4

Independent Examiner's Report

5

Statement of Financial Activities

6

Balance Sheet

7

to

8

Cash Flow Statement

9

Notes to the Cash Flow Statement

10

Notes to the Financial Statements

11

to

18

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 30 September 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 principals are based on the Christian ideal, but our services are available to anyone regardless of gender, ethnic origin, religion or personal beliefs. Living Springs provides accommodation and support to families, young pregnant women and mothers/fathers with their babies. Assistance with parenting skills and life skills is given including assertiveness, budgeting, menu planning, cooking and social skills.

There has been no change in the charity's objects or policies during the period.

Significant activities

In planning our activities for the year, we kept in mind the Charity Commission's guidance on public benefit at our trustee meetings.

There is no change in the charity's activities, which remains as:

Living Springs is a safe place where families experience love and community to enable healing and growth for a better future. We provide supported housing in self-contained flats for parents with young children as a temporary placement, as well as additional support packages and day activities to build confidence, well-being, and practical life skills.

Living Springs Trading (Stourbridge) Limited - after a challenging period and reducing profitability the Trustees made the difficult decision to close Café 105, with its final day being 23 July 2023. The property was put up for sale, with a sale agreed on 29 July 2023 and completion on 8 March 2024.

Volunteers

We have continued to build our volunteer team and now have 12 volunteers who do a variety of roles which are either directly working with residents or supporting site maintenance and development. Current roles include befriending, allotment coordination, running activities and courses for residents, preparing welcoming flats for new residents, bee-keeping and 'ad hoc' projects and events. These all provide help, support and mentoring in the life of Living Springs and reflect our values and vision. We also have occasional volunteer teams for one off days, supporting Living Springs with outdoor projects.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

Set in a peaceful rural location, supported housing at Living Springs is a unique environment offering a space away from distractions to experience well-being, healing, positive activities and learning for vulnerable families and young people in need of housing. This may include: young people with a support need; people with mental ill health; people fleeing domestic abuse and their children; families at risk of or who have experienced homelessness. Living Springs offers a safe place to find personal value and worth, contribution and purpose. 'A demonstration of the love of God whilst being accepted for who you are and your own faith or experience.'

We assess each application on a case by case basis to ensure they will benefit from support at Living Springs and a unique plan will be made for each family to help them by early invention support, respite and recovery support, confidence building, with the aim to gain skills and move onto independent accommodation.

Living Springs works in partnership with other agencies and professionals to ensure holistic support. We provide onsite activities run by volunteers and community groups and signpost to external providers as appropriate.

Safeguarding Statement

Living Springs has not had any serious safeguarding concerns or allegations of recent or historical abuse against officers, staff or volunteers or service users during this financial year.

Internal and external factors

This is the first full financial year that Living Springs has been running in its focus on early intervention and supported housing, since relaunching in May 2022.

We have a complete staff team of a full-time Chief Officer and 4 part-time staff (in roles of Site Manager, Cleaner, Senior Support Worker and Admin Coordinator), as well as our onsite care-taker family providing a chaplaincy service, church and fundraising networking and out of hours emergency support.

Our main focus has continued as Supported Housing. All nine flats have been fully occupied with only a few days void between family transitions. We have also made available an emergency room with shared facilities for short stays. We receive referrals from various professionals as well as family and self-referrals. Each family moves here voluntarily, and they agree to engage with support and the community onsite. We have developed additional support through our staff, volunteers, local churches and service providers to build confidence, well-being, and practical life skills. Our aim is to enable individuals to develop their full potential in mind, body and spirit, inspired by our Christian values. Living Springs' supported housing is holistic through person-centred and trauma-informed support, with intentional modelling of our ethos and values.

FINANCIAL REVIEW

Principal funding sources

Housing Benefit from the Local Authority provides the main proportion of our running costs. Much of our well-being and community support is possible through our volunteers and local partnerships. At the end of this period we have allocated some staffing capacity to fundraising through grant applications and individual and church donations, this is in early development. We have not had capacity to develop any additional services that could bring in finances. There still remains further work to be done to increase income to balance expenditure. Reserves are meeting the shortfall at the moment. Living Springs currently have reserves to support activities in the short to medium term.

The Trustees continue to be vigilant, but are very optimistic that from our firm foundation, we can meet any challenges ahead. Therefore, with the internal structures and facilities available, the charity is in an excellent position to continue fulfilling its aims and objectives into the year ahead.

Reserves policy

The charity's policy on reserves is that their level should be maintained to the extent required to finance working capital requirements for the next 4 months.This is more than achieved.

The charitable fund's at 30th September 2023 were as listed below.

£

General funds invested in fixed assets

1,467,557

General funds in current assets - free reserves

230,307

1,697,864

FUTURE PLANS

We will continue to build partner relationships to strengthen our services and offer to supported housing licensees. We will continue to explore options to increase income and enable financial stability.

Alongside Supported Housing we will continue to look into the provision of additional services that could bring in finances, such as day activities onsite; hiring out rooms for meetings and retreat days; renting out office space for like-minded small organisations or services.

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.

Organisational structure

The charity's name is Living Springs.

The organisational structure consists of a group of Trustees/Directors who are actively involved in all the policy and decision-making activities of the charity.

The charity has a Chief Officer, Anna Burden, who reports directly on a regular basis to the Trustees/Directors. The Chief Officer is supported by an Admin Coordinator, Senior Support Worker, Site Manager and Cleaner.

Induction and training of new trustees

All prospective new Trustees, prior to appointment, are interviewed by the existing Trustees to ensure that they are made aware of their roles and responsibilities. Appropriate safeguarding checks are undertaken and all new Trustees are then trained appropriately so that the objectives and aims of the charity are properly controlled and managed.

Key management remuneration

The salaries of Key Management are reviewed annually and approved by the Board of Trustees.

Wider network

Living Springs is very much a part of the local community, receiving interest and support from local residents, businesses, schools, churches and other organisations. We work closely with Social Workers, Health Visitors, Midwives, G.P.'s, Education and Housing Departments and Health and Family Centres.

We are members of the Support Staffordshire, an independent voice for voluntary, community and social enterprise organisations (VCSE) in Staffordshire.

Related parties

Note 19 on page 19 of the notes to the financial statements discloses related party information.

Risk management

The trustees have examined the major strategic, business and operational risks which the charity faces and confirm that systems have been established to mitigate those risks.

There are nominated senior staff responsible for Health and Safety compliance, qualified first aiders & regular staff and management team meetings. Formal policies e.g. Safeguarding, Health & Safety, Data Protection, Lone Working, Financial Procedures are regularly reviewed and updated where necessary.

The charity has purchased third party indemnity insurance for the trustees against liability arising from wrongful acts in relation to the charity. The cost for the year ended 30 September 2023 was £Nil (2022 - £520).

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

04014173 (England and Wales)

Registered Charity number

1082726

Registered office

Barratts Coppice Farmhouse

Bridgnorth Road

Stourton

Stourbridge

West Midlands

DY7 6QY

Trustees

R E Chapman Trustee/director

I Nicholls Trustee/director

A Walsh Trustee/director (resigned 6/7/2023)

Rev J P Grant Trustee/director (resigned 5/7/2023)

Ms S J Knight Trustee/director (resigned 11/12/2023)

Mrs A R Grennan Trustee (appointed 17/7/2023)

M J Gregory Trustee (appointed 17/7/2023)

Company Secretary

A L Burden

Independent Examiner

BK Plus Limited

Chartered Certified Accountants

Churchfield House

36 Vicar Street

Dudley

West Midlands

DY2 8RG

Bankers

HSBC Bank Plc

Coventry DSC

Harry Weeton Road

Bingley

Coventry

CV3 2TQ

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 7 June 2024 and signed on its behalf by:

R E Chapman - Trustee

Independent examiner's report to the trustees of Living Springs ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 30 September 2023.

Responsibilities and basis of report

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

Having satisfied myself that the accounts of the Company 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 your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.

Independent examiner's statement

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:

1.	accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or

2.	the accounts do not accord with those records; or

3.	the accounts 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

4.

the accounts 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 accounts to be reached.

Mrs C Jones

BK Plus Limited

Chartered Certified Accountants

Churchfield House

36 Vicar Street

Dudley

West Midlands

DY2 8RG

7 June 2024

2023

2022

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

3

13,383

-

13,383

16,722

Charitable activities

5

Residential Assessment

202

-

202

219,261

Supported Housing

137,287

10,000

147,287

35,627

Investment income

4

3,836

-

3,836

282

Total

154,708

10,000

164,708

271,892

EXPENDITURE ON

Raising funds

6

3,245

-

3,245

4,771

Charitable activities

7

Residential Assessment

-

-

-

463,419

Supported Housing

243,023

6,605

249,628

-

Total

246,268

6,605

252,873

468,190

NET INCOME/(EXPENDITURE)

(91,560

)

3,395

(88,165

)

(196,298

)

RECONCILIATION OF FUNDS

Total funds brought forward

1,786,029

-

1,786,029

1,982,327

TOTAL FUNDS CARRIED FORWARD

1,694,469

3,395

1,697,864

1,786,029

2023

2022

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

13

1,467,556

-

1,467,556

1,488,168

Investments

14

1

-

1

1

1,467,557

-

1,467,557

1,488,169

CURRENT ASSETS

Debtors

15

22,817

-

22,817

24,181

Cash at bank and in hand

213,850

3,395

217,245

282,901

236,667

3,395

240,062

307,082

CREDITORS

Amounts falling due within one year

16

(9,755

)

-

(9,755

)

(9,222

)

NET CURRENT ASSETS

226,912

3,395

230,307

297,860

TOTAL ASSETS LESS CURRENT LIABILITIES

1,694,469

3,395

1,697,864

1,786,029

NET ASSETS

1,694,469

3,395

1,697,864

1,786,029

FUNDS

17

Unrestricted funds

1,694,469

1,786,029

Restricted funds

3,395

-

TOTAL FUNDS

1,697,864

1,786,029

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 September 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 September 2023 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 7 June 2024 and were signed on its behalf by:

R E Chapman - Trustee

Cash flows from operating activities

Cash generated from operations

1

(83,992

)

(87,631

)

Net cash used in operating activities

(83,992

)

(87,631

)

Cash flows from investing activities

Purchase of tangible fixed assets

-

(1,238

)

Sale of tangible fixed assets

14,500

-

Loan to subsidiary

-

600

Interest received

3,836

282

Net cash provided by/(used in) investing activities

18,336

(356

)

Change in cash and cash equivalents in the reporting period

(65,656

)

(87,987

)

Cash and cash equivalents at the beginning of the reporting period

282,901

370,888

Cash and cash equivalents at the end of the reporting period

217,245

282,901

1.	RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES

2023

2022

£

£

Net expenditure for the reporting period (as per the Statement of Financial Activities)

(88,165

)

(196,298

)

Adjustments for:

Depreciation charges

18,600

19,324

(Profit)/loss on disposal of fixed assets

(12,488

)

2

Interest received

(3,836

)

(282

)

Decrease in debtors

1,364

127,067

Increase/(decrease) in creditors

533

(37,444

)

Net cash used in operations

(83,992

)

(87,631

)

2.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/10/22

Cash flow

At 30/9/23

£

£

£

Net cash

Cash at bank and in hand

282,901

(65,656

)

217,245

282,901

(65,656

)

217,245

Total

282,901

(65,656

)

217,245

1.	STATUTORY INFORMATION

Living Springs is a private company, limited by guarantee without share capital, registered in England and Wales.

The presentation currency of the financial statements is the Pound Sterling (£).

The financial statements are rounded to the nearest £.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.

The statement of financial activities on page 7 incorporates the income and expenditure account.

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.

Allocation and apportionment of costs

Costs are allocated between direct charitable and other expenditure according to the nature of the cost. Where items involve more than one category they are apportioned between the categories according to the nature of the cost; staff costs are allocated on the basis of staff time. A detailed analysis of the allocation of costs is given in notes 7 and 8.

The charity is exempt from VAT and any irrecoverable VAT is included in the relevant expenditure category.

Tangible fixed assets

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

Freehold property

-

1% on cost

Plant and machinery

-

10% on cost

Fixtures and fittings

-

50% on cost and 33% on cost

Motor vehicles

-

25% on reducing balance

Capital items costing less than £1000 are written off in the year of purchase.

No depreciation is provided on land.

Taxation

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

Fund accounting

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

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

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

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.

Liabilities

Liabilities in the accounts are for costs arising in the year that were unpaid at the balance sheet date.

3.	DONATIONS AND LEGACIES

2023

2022

£

£

General gifts and donations

13,383

16,722

4.	INVESTMENT INCOME

2023

2022

£

£

Deposit account interest

3,836

282

5.	INCOME FROM CHARITABLE ACTIVITIES

2023

2022

Activity

£

£

Service fees

Residential Assessment

-

218,417

Transport recharged

Residential Assessment

202

844

Other income

Supported Housing

10,000

-

Housing income & key deposits

Supported Housing

137,287

35,627

147,489

254,888

6.	RAISING FUNDS

Raising donations and legacies

2023

2022

£

£

Fundraising costs

3,245

4,771

7.	CHARITABLE ACTIVITIES COSTS

Support

Direct

costs (see

Costs

note 8)

Totals

£

£

£

Supported Housing

163,720

85,908

249,628

8.	SUPPORT COSTS

Governance

Management

costs

Totals

£

£

£

Supported Housing

33,771

52,137

85,908

9.	NET INCOME/(EXPENDITURE)

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

2023

2022

£

£

Depreciation - owned assets

18,600

19,324

Surplus/(deficit) on disposal of fixed assets

(12,488

)

2

10.	TRUSTEES' REMUNERATION AND BENEFITS

Trustees' expenses

There were no trustees' expenses paid for the year ended 30 September 2023 nor for the year ended 30 September 2022.

11.	STAFF COSTS

The total benefits received by key management personnel during the year was £36,460 (2022 - £70,562).

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

2023

2022

Charitable activities

4

16

Management and administration

1

2

5

18

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

12.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

funds

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

16,722

-

16,722

Charitable activities

Residential Assessment

219,261

-

219,261

Supported Housing

35,627

-

35,627

Investment income

282

-

282

Total

271,892

-

271,892

EXPENDITURE ON

Raising funds

4,771

-

4,771

Charitable activities

Residential Assessment

463,419

-

463,419

Total

468,190

-

468,190

NET INCOME/(EXPENDITURE)

(196,298

)

-

(196,298

)

RECONCILIATION OF FUNDS

Total funds brought forward

1,982,327

-

1,982,327

TOTAL FUNDS CARRIED FORWARD

1,786,029

-

1,786,029

13.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

Motor

property

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1 October 2022

1,735,642

2,400

200,135

20,975

1,959,152

Disposals

-

-

-

(20,975

)

(20,975

)

At 30 September 2023

1,735,642

2,400

200,135

-

1,938,177

DEPRECIATION

At 1 October 2022

264,159

2,400

185,462

18,963

470,984

Charge for year

16,356

-

2,244

-

18,600

Eliminated on disposal

-

-

-

(18,963

)

(18,963

)

At 30 September 2023

280,515

2,400

187,706

-

470,621

NET BOOK VALUE

At 30 September 2023

1,455,127

-

12,429

-

1,467,556

At 30 September 2022

1,471,483

-

14,673

2,012

1,488,168