Home Start St Albans City and District
Home-Start St Albans City & District
Annual Report 2014-2015
Annual Report 2014-15 Home-Start St Albans City & District Registered Charity no. 1108978 Company Limited by Guarantee, registered in England and Wales no. 5391896
CONTENTS
Page
Foreword by the Chair……………………………………………...………….….……3-4
Senior Coordinator’s report..………………………………….……..………..…...…5-6
Fundraising…………………………………………………….……….….……………...7-8
Family referrals and volunteers……..…………………….….……….…………..…9-11
Caught in Action!……………………….……………………………….………...….…..12
Trustees’ annual report for the year ended 31 March 2015…………..…….13-19
Independent Examiner’s Report………………………..…………….…….………20-21
The Charity’s accounts for 2014-15………………………………….…..………22-35
Thanks……………………………………………………………………….….………36-37
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Foreword by the Chair During the past year we have again focused on our primary aim of working with families in times of difficulty, to strengthen them and prevent future crises. We have seen the demand for our volunteers who provide practical and emotional support to local families increase. All parents themselves, our trained volunteers understand the issues families face. The increase in demand and in the complexity of cases referred to us is a reflection of the challenges and budget pressures being faced by the statutory agencies. Traditionally, we have relied heavily upon core funding from Hertfordshire County Council, St Albans District Council and the NHS in Hertfordshire to provide our services. We are very grateful for their continued support and acknowledge that changes to these key organisations have meant that long-term funding for Home-Start’s core service is not secured beyond September 2015, leaving us with increased demands for HomeStart but not the means to provide. To maintain our services and adapt to the changing world we live in, last year saw us focusing on secure funding from sources other than our core funders. We were fortunate to be selected by the Mayor of Harpenden Councillor Mary Maynard as one of her Charities of the year. It has been a great honour and the highlight of the year was a Burns Night Supper. We also joined with a number of local business and community networks including the St Albans and District Chamber of Commerce and FAB women’s Networking group. As a result we have had interest from local business supporters and offers of support in kind. By a combination of community events, discretionary grants and direct funding raising, we raised over £18,000 during the year. Thanks must go to County Councillors Sandy Walkington, Dreda Gordon, Theresa Heritage, David Williams and Chris White, Cerco, Alteera, Lussmanns, the Clarion Collection Hotel , Herts Chamber Orchestra , Magician’s Nephew Band and The Brickyard for all their support. A full list of those who have in some way supported our work over the past year is contained on page 36. Many thanks to you all for enabling us to continue our work. We could not provide our services without our excellent home visiting volunteers who provide regular support to their assigned families. Thanks must go to them for their work, dedication and willingness to take on new challenges. A huge thank you must also go to our staff team. Suzy joined us as Senior Coordinator and Emily and Preeti as Job Share Scheme Administrator and Finance Assistant. Together with Clare and Donna they are an experienced and committed staff team and their contribution to the development and success of the scheme cannot be underestimated Thanks also to our trustee board that provides sound governance to the scheme. We were very pleased to welcome to the trustee board Chris Cloke, Sam Gardner and Vanessa Jaeger. We also saw Paul Elvidge, Lara Davis and Faye Brook leave the Board due to work commitments. We will miss their experience, wisdom and insight. Our thanks go to them all for their service to the families of Home-Start St Albans City and District. Finally a big thank you to everyone involved with our scheme for their continued support. We remain hopeful that despite the uncertainty around our funding that Home-3-
Start St Albans City and District will be around for many years to come, providing much needed support to local families. For and on behalf of the trustees
Jill Rothwell Chair of trustees
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Senior Coordinator’s Report – A year of change and development! It is coming up to a year since I joined the Home Start team – what a year it has been for us all! The year started with the implementation of a new staffing structure and the recruitment of three new team members. Claire and Donna, both long standing coordinators, were joined by myself, Preeti (finance administrator) and Emily (office administrator). Naturally, coming in with a fresh perspective and different experiences, operational changes followed, with the aim of building on what was already in place, and making the service that Home Start deliver even more efficient for us, our families and our referrers. With the staff team and trustees’ involvement, key systems such as the referral process, data collection methods, and monitoring and recording systems were reviewed and adapted. As with any changes, there have been some hitches and frustrations along the way but we are now seeing improvements in efficiency and practice in several areas, which are reflected in our end of year statistics and also through positive feedback from some of our referrers. We re-opened our books to referrals in January with the launch of our new referral system and have supported 98 families with over 210 children this year. Looking back across the years, it is apparent that the demand and complexity of referrals is continuing to increase, with some concerning trends in certain areas such as mental ill health and domestic violence and abuse. This year only 30% of our referrals have been low level e.g. supporting parents with several children under 3; and the other 70% have been medium to high level need, presenting with several complex issues. We continue to work closely with statutory and community agencies such as the Children’s Centres, Health Visitors, Children’s Disability team, Housing Associations, Herts Asian Women’s Association, Children and Family Services and the St Albans refuge. We are also active members of the Local Multi Agency Safeguarding Board, Domestic Abuse Forum, Children’s Centre advisory boards and the CAB multiagency project board. I have enjoyed getting to know our team of volunteers and it has amazed me how some of them manage to fit Home Start in around their own busy lifestyles and families. The range of skills, qualities and experiences that they bring are vast, and their dedication and commitment are fantastic; I can see why so many of our families give such positive feedback about the support they've received. All 40 of our volunteers are currently matched with families. Sadly some volunteers have retired during the year, and they will be missed, but we are excited to have 15 new volunteers recently completing their training who will be ready to start supporting families in the summer. -5-
Staff and volunteers have undertaken a variety of training courses such as safeguarding, use of CAB resources, resilience and endings and National Home Start UK courses. We have also held some social events for volunteers, trustees and new staff to get to know each other. Fundraising is vital to enable Home Start to continue meeting the increasing needs of our local families, however it demands a lot of time, which can impact on staff’s capacity to support families. For this reason, I formed a Campaigns and Events group, made up of volunteers/trustees, and they have helped to organise and run a number of events through the year. This is my first experience of fundraising and there have been ups and downs, some of my highlights have been, flipping pancakes up the High Street and chasing speedy Santa’s sleigh around Chiswell Green. In addition to the funds we raise, we are very privileged to receive donations from individuals and community groups and several organisations have done a great job of raising money on our behalf. With the fantastic support of our local community and business’, the Campaigns & Events group, the office staff team, and the trustees, we have raised a grand total of £18,000 this year – exceeding our target by £5,000. Our drive to raise our profile in the business community has also been successful in establishing some good relationship and as a result we have received professional support with our marketing, promotion, digital communications and accounting, in addition to securing some corporate donors. The year has been eventful and has had its up and downs, however the commitment, dedication and support from the staff team has been invaluable. Overall we have made good progress this year with some really positive achievements. The team is now established and settled and we are ready to tackle the next year with its new challenges!
Suzy Moody Senior Coordinator
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Fundraising In the current climate of increasing pressure on statutory funding, we’re very grateful to receive statutory grants from St Albans District Council, Hertfordshire County Council and the NHS Hertfordshire. A key success in 2014-15 was the approval of our bid for continued funding from St Albans & City District Council through 201518, at historic levels. However, we must increase our fundraising activity year on year if we are to mitigate the cut to our statutory funding from Hertfordshire County Council from September 2015. This year has been a successful one in fundraising terms, with over £18,000 raised via discretionary grants and direct fundraising. Our fundraising strategy is to reduce the mix of resource-intensive, low-yield activity, whilst increasing bid activity, regular donations and self-running events/initiatives. This year we have made significant progress in building the foundations for this work, particularly in forging closer links with local businesses and community organisations.
Partnerships with local businesses: We have joined a number of local business and community networks, including the St Albans & District Chamber of Commerce and FAB women’s Business Networking group. We had the opportunity to address a Chamber Lunch, which prompted interest from local business supporters and a number of local businesses have pledged regular monthly donations. This is something we aim to develop in the future, through the implementation of a formal Corporate Supporters programme.
Community events: We continue to raise funds and build our profile through community events, which this year included:
Presence at St Albans City football club match – collection raised £270 and a we were chosen by SACFC to receive a donation of £1,000 from the FA
Fielded two teams at the annual St Albans Pancake Race
Accompanying the Rotary Club’s Santa’s sleigh on its tour of Chiswell Green, raising £170
Taking part in the Dragon’s Apprentice Challenge in which our team from The Samuel Ryder Academy raise just over £1,000
Our Events & Campaigns sub-committee, formed in late 2014 and ably led by Suzy, Sam and Chris are focused on coordinating and delivering a varied programme of events.
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Community supporters: Other organisations who choose to support us through their own events included several members of the St Albans Mums Facebook group who offered to design, print and sell tea-towels, which raised over £1,090 We’ve also strengthened links with FACE (Faith and Cultural Enterprise), the Centre for Voluntary Services (CVS) and St Albans District Council (SADC) in order to ensure future funding opportunities.
Discretionary grants: The bid team, led by myself had a steady year, with our most significant result being securing continued funding from St Albans City & District Council from 2015-18. We also successfully bid for £4,400 from the St Albans Community Grant funding to support a project to develop our Equality & Diversity. We earned £900 from St Albans Citizens Advice Bureau through our ongoing partnership project to provide an information hub in the city centre. This year was the second year of our £5,000 2 year funding from the Blandford Trust for the volunteers’ preparation course and volunteer supervision. In addition, it was the second of 5 years from the Cooperative Community Fund to replace our office photocopier. We were successful in securing £1,400 from Sylvia Adams trust for development of the scheme. Our key challenge in preparing funding bids is one of capacity. Recognising this, Trustees have agreed to fund a part-time Bid-Writer, which will help us to ramp up bid activity as needed. We also continue to be involved in the Hertfordshire HomeStart Collaborative, which is expected to pursue higher-value regional and national funding bids.
Future Funding The Charity has recently been informed by Hertfordshire County Council (HCC) that half of its funding grant of £63,000 will be withdrawn for the current year and that services offered by the Charity will be absorbed into other services, namely the Children’s Centres and Health Visitors. The Charity is reliant on this funding and unless it can be replaced, it puts the future viability of the Charity in doubt. The Charity has sufficient funds to continue to March 2016.
Thanks As ever, a huge thank you to all those who have supported us this year and to the staff, trustees and fundraising volunteers who make this happen. We’re always looking for new people to join our fundraising team, so please do get in touch if you can help.
Faye Brook Fundraising Trustee -8-
FAMILY REFERRALS AND VOLUNTEERS
Referral demographics: Years
Families supported
Children supported
Volunteers
2012-2013 3013-2014 2014-2015
96 103 98
231 200 210
74 74 60
Mental Health (%)
Learning Disability (%) 9 6 15
Presenting Issues: Years 2012-2013 2013-2014 2014-2015
Physical Disability (%) 11 10 34
17 9 42
45 40 35
Physical Disability (%)
30 Mental Health (%)
25 Learning Disability (%)
20 15 10 5 0 2012-2013
2013-2014
2014-2015
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How Home Start compares with local demographics: Ethnicity
St Albans County %
Home Start %
White British Bangladeshi Other white Indian
81.1 1.9 5.5 1.6
73.6 5.6 3.7
St Albans County %
Home Start %
White British
White British
Bangladeshi
Bangladeshi
Other white
Other white
Indian
Indian
The families we supported
The families we supported this year
during the year lived in:
were referred by:
St Albans
52
Harpenden
17
Redbourn
1
Wheathampstead
5
Park Street
8
London Colney
8
Colney Heath
7
Self
32
Health Visitor or GP
34
Children’s Services - Social Worker
6
Other health
4
Other
5
Housing support
3
Children’s Centre
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VOLUNTEERS The volunteers who have supported families this year are: Kate, Sue J, Janie, Julie, Pat, Antonia, Yvonne D, Alison, Annabelle, Catherine, Jessie, Lynne, Margaret, Philippa, Rachele, Chris, Judith, Lindsay, Rachel C, Sam, Sarah, Jo C , Joe, Lauren, Andrea, Farzana, Sally, Valerie, Peter, Serena, Karolina, Ruth, Erica, Katie, Elizabeth, Laura, Vanessa, Janet, Clare D, Louise, Alex, Claire B, The volunteers we have said goodbye to this year include: Susanne, Vickie, Cathie, Susanna, Debbie, Polly, Penny, Sue C, Jade, Sharon, Fiona, Yvonne B, Charlotte, Rachel B, Lou, Nadia
Caught in action!
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Caught in Action!
‘Next Steps’ session introducing new team members to the volunteers and planning the way forwards
‘Team Ryder’ raised over £1000 in the Dragon’s apprentice challenge, with our team dragon Alex from Debenhams Ottaway solicitors
We were the chosen charity for a SACFC match – sadly the Saints lost, but the crowd were very generous!
Dance and Fitness fundraising event organised by World Rhythms
Collecting with the Round Table’s Santa sleigh
Mayor of Harpenden’s Burns night celebration -12-
Home-Start St Albans City & District Report of the trustees and financial statements for the year ended 31 March 2015 Home-Start St Albans City & District is administered by the
Trustee Board,
the members of which are trustees for the purpose of Charity Law and directors for the purpose of Company Law. They are referred to throughout this report as trustees. The Trustee Board comprised, on 14 July 2015, the following: Trustees:
Jill Rothwell
- Chair
Susan Waite ACA
- Treasurer
David Reynolds Christopher Cloke Samantha Gardner Vanessa Jaeger
Company Secretary:
Susan Waite
Company Number:
5391896
Charity Registered No:
1108978
Registered Office:
31 Spencer Street St Albans, Hertfordshire AL3 5EH
Advisers:
Rose Geraghty, Cllr Mary Maynard (from July 2015), Cllr Gill Clark (until December 2014)
Scheme Staff:
Suzy Moody- Senior Co-ordinator Claire Bates, Co-ordinator Donna McMillan, Co-ordinator Emily Hornsby – Administrator and Finance Assistant Preeti Chaudhary – Administrator and Finance Assistant
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Professional Advisers: Independent Examiner:
Beverley Turner Lamburn & Turner Chartered Accountants Riverside House 1 Place Farm Wheathampstead Hertfordshire AL4 8SB
Bankers:
HSBC St Albans Branch 1 Chequer Street St Albans Hertfordshire AL1 3YN
The trustees have pleasure in submitting their report together with the financial statements for the year ended 31 March 2015. These financial statements comply with current statutory requirements and the requirements of the Charity’s governing document. Structure, governance and management
Organisational structure Home-Start St Albans City & District is a charity registered with the Charity Commissioners, Charity No. 1108978 and a Company Limited by Guarantee, Company No. 5391896, has no share capital and is governed by the Memorandum and Articles of Association signed on 15th February 2005. The policy and general management of Home-Start St Albans City & District is directed by the Trustee Board (required to meet not less than four times in each financial year) which meets every second month. The Memorandum and Articles of Association requires the Trustee Board to have between 5 to 12 directors (trustees) comprising its officers, representatives from its members and volunteers as well as representatives from other voluntary agencies working with the under-fives in the area. This facilitates good professional back-up and communication, to the ultimate advantage of the families. One third of all trustees (to the nearest third) must retire at each AGM, those longest in office retiring first and the choice between any equal service being made by drawing lots. The trustees may at any time co-opt any person duly qualified to be appointed as a trustee to fill a vacancy in their number or as an additional trustee, but a co-opted trustee holds office only until the next AGM. -14-
Where there is a requirement for new trustees, they are identified and invited to become a trustee by the remaining trustees. The Trustee Board has the power to accept or reject an application. The Memorandum and Articles of Association gives the trustees the power to apply funds in such a manner as they think fit to or for the benefit of HomeStart St Albans City & District objectives.
Trustees The trustees holding office during 2014-15 were: Jill Rothwell
- Chair
Susan Waite ACA
- Treasurer
David Reynolds Christopher Cloke
– from 10 February 2015
Samantha Gardner
- from 10 February 2015
Vanessa Jaeger
- from 16 June 2015
Faye Brook
- to 16 June 2015
Paul Elvidge
- to 10 March 2015
Lara Davis
- to 26 September 2014
Rose Geraghty
- to 7 April 2014
The trustees of the Company have no interest in any contract with the Company nor do they receive any remuneration for their service or personal expenses. Membership of Home-Start is open to:
any individual or organisation interested in promoting the Objects of the Charity who applies to the Charity in the form required by the trustees and is approved by the trustees.
As a Home-Start organisation we belong to the national body Home-Start UK which is a charitable Trust. As a member of this body we follow Home-Start UK’s Standards and
Methods of Practice. Trustee, employee and volunteer induction and training The Chair is responsible for the induction of any new trustee, which involves awareness of a trustee’s responsibilities, the Memorandum and Articles of Association, governance policy, administrative procedures, history and philosophical approach of the Charity. New trustees receive copies of the previous year’s annual report and accounts, minutes of the past four management and trustee meetings, a copy of the Charity Commission leaflet ‘The Essential Trustee - What You Need To Know’, a Trustee handbook and have access to the Home-Start UK Intranet. Home-Start St Albans City & District and Home-Start UK operate training courses for trustees, employees and volunteers and will source from outside agencies any training that is deemed necessary to operate effectively within the parameters of the Memorandum and Articles of Association. -15-
Objectives and activities of the Charity Home-Start is a voluntary organisation committed to promoting the welfare of families with at least one child under five years of age. Volunteers offer regular support, friendship and practical help to families under stress in their own homes, helping to prevent family crisis and breakdown. A Home-Start scheme is a voluntary organisation with charitable status; Home-Start UK, the national body, is a Charitable Trust.
The voluntary ethic permeates the whole
organisation.
each community chooses to develop a Home-Start scheme
volunteers choose to work for Home-Start
families choose to have Home-Start support
The relationship between the Home-Start volunteer and the family is established by choice. All relationships are based on good communication, respect and trust. This scheme, Home-Start St Albans City & District, is one of more than 300 Home-Start Schemes across the UK and with British Forces families in Germany and Cyprus. The objectives of Home-Start St Albans City & District are: to safeguard, protect and preserve the good health, both mental and physical of
children and parents of children
to prevent maltreatment of children
to relieve sickness, poverty and need amongst children and parents of children
to promote the education of the public in better standards of childcare within the area of St Albans City & District and its environs
The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Charity’s aims and objectives and in planning future activities. They are confident that the Charity’s work, as described in this report, meets the public benefit requirement. As stated in the Standards and Methods of Practice for Home-Start schemes, Home-Start aims to increase the confidence and independence of the family by:
offering support, friendship and practical assistance.
visiting families in their own homes, where the dignity and identity of each adult and child can be respected and protected.
reassuring parents that difficulties in bringing up children are not unusual and encouraging them to enjoy family life.
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developing a relationship with the family in which time can be shared and understanding can be developed: the approach is flexible to take account of different needs.
encouraging parents’ strengths and emotional well-being for the ultimate benefit of their children.
encouraging families to widen their network of relationships and to use effectively the support and services available within the community.
Very few other organisations concerned with the under-fives provide a service whereby families are visited at home. Home-Start has the advantage of reaching those families who initially are unable to make use of other community services. The Charity’s support is sought across the board by families in large cities, small towns, rural areas and by Social Services.
The areas in which Home-Start St Albans City & District supports families St Albans, Harpenden, Redbourn, Wheathampstead, London Colney, Colney Heath, Sandridge and Park Street.
Achievements and performance During the year 98 families, including 210 children, were helped by a team of one fulltime and four part-time paid staff and 40 volunteers who together ensured that good service was provided to those children and their families. The average cost per year of supporting a family is approximately 2014-15 £912, (2013-14 £1,220) per family. It has been a challenging year, with the scheme needing bridge the gap in our in funding. We were able to meet this challenge, by raising £18,000, cutting expenditure, and therefore ending the year in credit. Our work has been recognised by the local community and reflected in the range of organisations as mentioned in the Senior Co-ordinator’s report. We have been able to offer on-going training to all our volunteers on a variety of subjects, again referred to in the Senior Co-ordinator’s report. The Scheme is subject to Home-Start UK’s Quality Assurance System (QA) which was originally developed in conjunction with the Charities Evaluation Service, and introduced in 2005 with the aim of promoting safe and consistent services across the UK. The system has 12 QA areas, against which Home-Start schemes conduct self-assessments to measure their progress. We were assessed in January 2015 and achieved 95 of the possible 100 indicators, our final assessment in July 2015 resulted in the achievement of 100% of the indicators.
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Risk policy The Trustees and Trustee Board conduct regular reviews of the major risks to which the Charity is exposed. Where appropriate, systems or procedures have been established to mitigate the risks the Charity faces. Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures are in place to ensure compliance with health and safety of staff, volunteers and families being supported. A child protection (Safeguarding Children) policy is in place and Disclosure and Barring Service (DBS) checks are carried on all volunteers and employees. These checks are carried out every three years in line with statutory requirements.
Financial review Total income received by Home-Start St Albans City & District during the financial year ended 31 March 2015 amounted to £112,564 (2014 - £124,685). Core funding was received from Hertfordshire County Council, (formerly West Herts Primary Care Trust) and St Albans City & District Council and was supplemented by donations, fund-raising and smaller grants. The charity spent £89,437 (2014 - £118,644) to finance Home-Start St Albans City & District’s activities and achieve its objectives, resulting in a surplus for the year of £23,127 (2014 – surplus of £6,041). Such a large surplus was because the charity was staffed for only part of the year because of staff changes and thus fewer families received our services. Wages and salaries and volunteer expenses and training were underspent this year by £20,000. For the financial year 2015-16, wages and salaries and volunteer costs will be at normal levels and a small surplus is expected. The Charity accounts have been prepared on the going concern basis. However the charity is entirely dependent on continuing grant aid from Hertfordshire County Council, NHS Hertfordshire, which amounts to £68,000 per annum. The charity has secured funding to 30 September 2015. St Albans City & District Council granted funding for a further three years for £23,000 pa. At the end of the year the charity had free reserves of £23,972 (2014 - £4,234) available to carry forward to future periods. It is the policy of the trustees to designate funds in a Contingency Fund which allows the charity to continue its' current activities in the event of a shortfall of funds whilst consideration is given to ways in which additional funds may be raised. The amount set aside caters for six months salaries and overheads plus redundancy and cessation costs if we were not able to recover from a funding shortfall. The designated fund of £91,389 is sufficient to cover these costs, thanks to a successful fundraising year and due to a
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reduction in the level of costs for future years. The Trustees are aiming to maintain the current designated fund balance through continual fundraising. Plans for the future The financial future is still unstable as Hertfordshire County Council has determined that it will cease its’ funding with effect from 30 September 2015. Meanwhile our high quality, well received support for families continues. Independent Examiner The Trustee Board appointed Lamburn and Turner Chartered Accountants as the charity’s Independent Examiner. Statement of Trustees' Responsibilities The trustees, who are also the directors of Home-Start St. Albans City & District for the purpose of company law, are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing these accounts, the trustees are required to:
select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP;
make judgements and estimates that are reasonable and prudent; and
prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. For and on behalf of the trustees
Jill Rothwell, Chair Dated: 14 July 2015
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Independent examiner’s report to the trustees of Home-Start (St Albans & District) I report on the accounts of the company for the year ended 31 March 2015, which are set out on pages 22 to 35. Respective responsibilities of trustees and examiner The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. Although the charity’s gross income has not exceeded £250,000, the trustees have opted for an independent examination and I am qualified to undertake the examination by being a qualified member of The Institute of Chartered Accountants in England and Wales. Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:
examine the accounts under section 145 of the 2011 Act
to follow the procedures laid down in the general Directions given by the Charity
Commission under section 145(5)(b) of the 2011 Act
to state whether particular matters have come to my attention
Basis of independent examiner’s report My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the next statement. Independent examiner’s statement In connection with my examination, no matter has come to my attention: (1) which gives me reasonable cause to believe that in any material respect the requirements:
to keep accounting records in accordance with section 386 of the Companies Act 2006 and
to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities
have not been met or -20-
(2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached
Beverley Turner FCA CTA Lamburn & Turner Chartered Accountants Riverside House 1 Place Farm Wheathampstead Herts AL4 8SB Date:
14 July 2015
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STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2015
Notes
Unrestricted £
Restricted £
Total
Total
2015
2014
£
£
INCOMING RESOURCES Incoming Resources from Generated Funds Voluntary income
14,466
-
14,466
19,126
3,315
-
3,315
8,975
158
-
158
571
Total Incoming Resources from generated funds
17,939
-
17,939
28,672
Incoming Resources from Charitable Activities
91,030
3,595
94,625
96,013
-
-
-
-
108,969
3,595
112,564
124,685
1,004
-
1,004
2,632
81,507
3,595
85,102
112,716
3,331
-
3,331
3,296
TOTAL OUTGOING RESOURCES
85,842
3,595
89,437
118,644
NET MOVEMENT IN FUNDS
23,127
-
23,127
6,041
Funds brought forward
92,234
-
92,234
86,193
115,361
-
115,361
92,234
Activities for generating funds Investment income
Other Incoming Resources TOTAL INCOMING RESOURCES
RESOURCES EXPENDED Costs of generating voluntary income Charitable activities Governance costs
Funds carried forward
11
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BALANCE SHEET AS AT 31 MARCH 2015 Notes
2015
2014
£
£
£
£
FIXED ASSETS Tangible fixed assets
7
-
173
CURRENT ASSETS Debtors and prepaid expenses
8
Cash at hand and in bank
CREDITORS: Amounts falling due within one year
9
2,525
3,424
123,015
97,083
125,540
100,507
(10,179)
(8,446)
NET CURRENT ASSETS
115,361
92,061
NET ASSETS
115,361
92,234
23,972
4,234
91,389
88,000
INCOME FUNDS Unrestricted Funds Designated Funds
12
Restricted Funds TOTAL FUNDS
-
11
115,361
92,234
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 2015. No member of the company has deposited a notice, pursuant to section 476, requiring an audit of these accounts. The directors acknowledge their responsibilities for ensuring that the company keeps accounting records which comply with section 386 of the Act and for preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year and if its incoming resources and application of resources, including its income and expenditure, for the 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 accounts, so far as applicable to the company. The accounts were approved by the Board on 14 July 2015.
Jill Rothwell
Sue Waite ACA
Chair of trustees
Trustee, Treasurer -23-
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2015
1. Company limited by guarantee Home-Start St Albans City & District is a Company incorporated in England Limited by Guarantee No. 5391896 and is a Registered Charity No. 1108978. There are 73 members each guaranteeing £1. 2.
Accounting policies The following accounting policies have been applied consistently in dealing with items that are considered material in relation to Home-Start St Albans City & District:
2.1
Basis of preparation These financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standards for Smaller Entities (effective April 2008) and the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” issued in March 2005.
2.2
Going concern The Charity is entirely dependent on continuing grant aid. The charity has secured full funding to 30 September 2015.
2.3
Incoming resources All incoming resources are included in the statement of financial activities when the charity is entitled to, and virtually certain to receive, the income and the amount can be quantified with reasonable accuracy. The following policies are applied to particular categories of income:
Donations, legacies and other forms of voluntary income are recognised as incoming resources when receivable, except insofar as they are incapable of financial measurement. Gifted assets received are included at valuation if material.
Grants from government and other agencies are included in the Statement of Financial Activities as and when the Charity is entitled to the income and the amount can be quantified with reasonable accuracy.
Bank interest is included in the income and expenditure account on a receivable basis.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2015 (continued)
2.4
Resources expended Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates:
Costs of generating funds comprise the costs associated with attracting voluntary income.
Charitable activities expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Governance constitutional
costs and
include statutory
those
costs
requirements
associated of
the
with Charity
meeting and
the
include
independent examiner's fees and costs linked to the strategic management of the Charity.
Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis.
2.5
Fund Accounting Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts. Designated funds comprise funds which have been set aside at the discretion of the Trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the accounts. Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the Charity.
2.6
Recognition of liabilities Liabilities are recognised on the accruals basis in accordance with normal accounting principles, modified where necessary in accordance with the guidance given in the Statement of Recommended Accounting and Reporting issued by the Charity Commissioners for England & Wales.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2015 (continued)
2.7
Tangible fixed assets and depreciation Tangible fixed assets are stated at cost less depreciation. Depreciation has been provided at the following rates in order to write off the cost of the assets (less their expected residual value) evenly over their useful economic lives, which is three years in all cases.
2.8
Taxation As a registered charity, the Company is exempt from income and corporation tax to the extent that its income and gains are applicable to charitable purposes only.
2.9
Leasing and hire purchase commitments Rentals payable under operating leases are charged against income on a straight line basis over the period of the lease.
2.10 Volunteers The Charity relies on the support from volunteers who are unpaid. The value of volunteers’ time is not included in the accounts. 2.11 Pension contributions The regular cost of providing retirement pensions and related benefits is charged to the statement of financial activities over the employees' service lives on the basis of a constant percentage of earnings. Any difference between the charge to the statement of financial activities and the contributions paid to the scheme is shown as an asset or liability in the balance sheet. 2.12 Winding up or dissolution of the Charity If upon winding up or dissolution of the Charity there remains any assets, after the satisfaction of all debts and liabilities, the assets represented by the reserves shall be transferred to some other charitable body or bodies having similar objects to the Charity.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2015 (continued) 3. Detailed income & expenditure Account Un-
Total
Total
Restricted
restricted
Funds
Funds
Funds
Funds
2015
2014
£
£
£
£
3,595
91,030
94,625
96,013
Donations
-
14,466
14,466
19,126
Fund Raising
-
3,315
3,315
8,975
Interest
-
158
158
571
Restricted Fund
-
-
-
-
3,595
108,969
112,564
124,685
2,430
60,098
62,528
92,952
-
2,283
2,283
1,271
2
1,422
1,424
2,694
468
2,185
2,653
2,846
Office running costs
-
10,165
10,165
9,606
Telephone
-
926
926
918
Insurance
-
737
737
816
1,004
1,004
2,632
-
2,334
2,334
-
695
792
1,487
165
Training: volunteers
-
98
98
565
Families
-
294
294
709
Home-Start fees
-
2,245
2,245
1,993
Professional fees
-
1,086
1,086
1,303
Depreciation
-
173
173
174
3,595
85,842
89,437
118,644
-
23,127
23,127
6,041
Income Grants
Total Income
Expenditure Salaries and on-costs Expenses for Trustee Board & Staff Volunteer expenses Printing, postage & stationery
Fund Raising Recruitment Training: staff & Trustee Board
Total Expenditure
Surplus
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2015 (continued)
4.
Net incoming (outgoing) resources for the year Net incoming (outgoing) resources for the year are stated after charging: 2015
2014
£
£
-
550
Examination fees Depreciation
173
174
7,000
7,000
447
447
2015
2014
3
4
£
£
59,060
81,019
Social security
1,228
5,468
Pension costs
1,827
6,465
62,528
92,952
Operating leases – Land and Buildings – Plant and equipment
5.
Staff numbers and costs Average number of people employed by the Charity
Salaries
The Charity employed five staff: one full-time scheme manager, two part-time coordinators and two part-time administrators. There were no employees with emoluments above £50,000. 6.
Directors emoluments and related party transactions None of the directors (trustees) received any remuneration directly or indirectly. None of the directors or other persons related to the Charity had any personal interest in any contract or transactions entered into by the Charity during the year. Travel expenses totalling £595 were claimed by 3 trustees. (2014: £200 2 Trustees) -28-
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2015 (continued) 7.
Tangible fixed assets Tangible fixed assets comprise fixtures, equipment and computer equipment 2015
2014
£
£
At 1 April
4,553
4,553
Additions
-
-
4,553
4,553
4,380
4,206
173
174
4,553
4,380
-
173
2015
2014
£
£
2,525
3,424
2015
2014
£
£
Trade creditors and accruals
1,464
3,433
Deferred income
6,751
3,616
Taxation and social security
1,964
1,397
10,179
8,446
Cost:
At 31 March
Depreciation: At 1 April Charge for the year
At 31 March
Net book value: At 31 March
8.
Debtors
Other debtors & prepayments
9.
Creditors: amounts falling due within one year
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2015 (continued) 10.
Pension and other post-retirement benefit commitments Home-Start St. Albans City & District participates in The Pensions Trust’s Growth Plan (the Plan). The Plan is funded and is not contracted-out of the State scheme. The Plan is a multi-employer pension plan. Contributions paid into the Plan up to and including September 2001 were converted to defined amounts of pension payable from Normal Retirement Date. From October 2001 contributions were invested in personal funds which have a capital guarantee and which are converted to pension on retirement, either within the Plan or by the purchase of an annuity. The rules of the Plan allow for the declaration of bonuses and/or investment credits if this is within the financial capacity of the Plan assessed on a prudent basis. Bonuses/investment credits are not guaranteed and are declared at the discretion of the Plan’s Trustee. The Trustee commissions an actuarial valuation of the Plan every three years. The purpose of the actuarial valuation is to determine the funding position of the Plan by comparing the assets with the past service liabilities as at the valuation date. Asset values are calculated by reference to market levels. Accrued past service liabilities are valued by discounting expected future benefit payments using a discount rate calculated by reference to the expected future investment returns. The rules of the Plan give the Trustee the power to require employers to pay additional contributions in order to ensure that the statutory funding objective under the Pensions Act 2004 is met. The statutory funding objective is that a pension scheme should have sufficient assets to meet its past service liabilities, known as Technical Provisions. If the actuarial valuation reveals a deficit, the Trustee will agree a recovery plan to eliminate the deficit over a specified period of time either by way of additional contributions from employers, investment returns or a combination of these. The rules of the Plan state that the proportion of obligatory contributions to be borne by the member and the member’s employer shall be determined by agreement between them. Such agreement shall require the employer to pay part of such contributions and may provide that the employer shall pay the whole of them. Home-Start St. Albans City & District paid contributions at the rate of 7.8% during the accounting period. Members paid contributions at the rate of 6% during the accounting period. As at the balance sheet date there were four active members of the Plan employed by Home-Start St. Albans City & District. Home-Start St. Albans City & District has closed the Plan to new entrants.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2015 (continued) 10.
Pension and other post-retirement benefit commitments (continued) It is not possible in the normal course of events to identify on a reasonable and consistent basis the share of underlying assets and liabilities belonging to individual participating employers. The Plan is a multi-employer scheme, where the assets are co-mingled for investment purposes, and benefits are paid out of the Plan’s total assets. Accordingly, due to the nature of the Plan, the accounting charge for the period under FRS17 represents the employer contribution payable. The valuation results at 30 September 2011 were completed in 2012 and have been formalised. The valuation of the Plan was performed by a professionally qualified Actuary using the Projected Unit Method. The market value of the Plan’s assets at the valuation date was £780 million and the Plan’s Technical Provisions (i.e. past service liabilities) were £928 million. The valuation therefore revealed a shortfall of assets compared with the value of liabilities of £148 million, equivalent to a funding level of 84%. The financial assumptions underlying the valuation as at 30 September 2011 were as follows: % p.a. Rate of return pre-retirement
4.9
Rate of return post retirement: 4.2
Active/Deferred
4.2
Pensioners Bonuses on accrued benefits
0.0
Inflation: Retail Prices Index (RPI)
2.9
Inflation: Consumer Prices Index (CPI)
2.4
In determining the investment return assumptions the Trustee considered advice from the Scheme Actuary relating to the probability of achieving particular levels of investment return. The Trustee has incorporated an element of prudence into the pre and post retirement investment return assumptions; such that there is a 60% expectation that the return will be in excess of that assumed and a 40% chance that the return will be lower than that assumed over the next 10 years. The Scheme Actuary is currently finalising the 2014 valuation and results will be communicated in due course. At 30 September 2013, the market value of the Plan’s assets was £772 million and the Plan’s Technical Provisions (i.e. past service liabilities) was £927 million. The update, therefore, revealed a shortfall of assets compared with the value of liabilities of £155 million, equivalent to a funding level of 83%.If an actuarial valuation reveals a shortfall of assets compared to liabilities, the Trustee must prepare a recovery plan setting out the steps to be taken to make up the shortfall.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2015 (continued) 10.
Pension and other post-retirement benefit commitments (continued) The Pensions Regulator has the power under Part 3 of the Pensions Act 2004 to issue scheme funding directions where it believes that the actuarial valuation assumptions and/or recovery plan are inappropriate. For example, the Regulator could require that the Trustee strengthens the actuarial assumptions (which would increase the Plan liabilities and hence impact on the recovery plan) or impose a schedule of contributions on the Plan (which would effectively amend the terms of the recovery plan). A copy of the recovery plan in respect of the September 2011 valuation was forwarded to The Pensions Regulator on 2 October 2012, as is required by legislation. Following a change in legislation in September 2005 there is a potential debt on the employer that could be levied by the Trustee of the Plan and The Pensions Act 2011 has more recently altered the definition of Series 3 of the Growth Plan so that a liability arises to employers from membership of any Series except Series 4.The debt is due in the event of the employer ceasing to participate in the Plan or the Plan winding up. The debt for the Plan as a whole is calculated by comparing the liabilities for the Plan (calculated on a buy-out basis i.e. the cost of securing benefits by purchasing annuity policies from an insurer, plus an allowance for expenses) with the assets of the Plan. If the liabilities exceed assets there is a buy-out debt. The leaving employer’s share of the buy-out debt is the proportion of the Plan’s liability attributable to employment with the leaving employer compared to the total amount of the Plan’s liabilities (relating to employment with all the currently participating employers). The leaving employer’s debt therefore includes a share of any ‘orphan’ liabilities in respect of previously participating employers. The amount of the debt therefore depends on many factors including total Plan liabilities, Plan investment performance, the liabilities in respect of current and former employees of the employer, financial conditions at the time of the cessation event and the insurance buy-out market.
The amounts of debt can
therefore be volatile over time. When an employer withdraws from a multi-employer defined benefit pension scheme which is in deficit, the employer is required by law to pay its share of the deficit, calculated on a statutory basis (known as the buy-out basis). The calculation basis that applies to the Growth Plan was amended due to a change in the definition of money purchase contained in the Pensions Act 2011 but the regulations that will determine exactly how the change will apply in practice are still awaited. As the law stands, it is not yet clear whether the statutory calculation should include or exclude Series 3 liabilities. However, based upon current advice, the most likely interpretation is that Series 3 liabilities will have to be included in the calculation of an employer’s debt on withdrawal.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2015 (continued) 10.
Pension and other post-retirement benefit commitments (continued) The Growth Plan is a “last man standing” multi-employer scheme. This means that if a withdrawing employer is unable to pay its debt on withdrawal the liability is shared amongst the remaining employers. The participating employers are therefore, jointly and severally liable for the deficit in the Growth Plan. Owing to this situation, we have included 2 figures/calculations, namely:
The cost of withdrawal if we include Series 3 liabilities in the calculation
The cost of withdrawal if we exclude Series 3 liabilities from the calculation
If an employer withdraws from the Growth Plan prior to the implementation of the regulations, the debt will be calculated on both bases and we would request payment of the higher amount with any adjustment being made when the regulations are implemented. Home Start St. Albans City & District has been notified by The Pensions Trust of the estimated employer debt on withdrawal from the Plan based on the financial position of the Plan as at 30 September 2014. As of this date the estimated employer debt for Home Start St. Albans City & District was £25,180, (2014: £21,458). Home Start St. Albans City & District has provided for the potential employer debt on withdrawal from the Plan as disclosed in note 12. 11.
Fund analysis 2015 Herts.
Unrestricted
Designated
Co-op
Training
Community
Total
funds
reserves
community
grants
Foundation
Funds
£
£
£
£
£
£
4,234
88,000
-
-
-
92,234
Income
108,969
-
468
695
2,432
112,564
Expenditure
(85,842)
-
(468)
(695)
(2,432)
(89,437)
(3,389)
3,389
-
-
-
-
At 31 March
23,972
91,389
-
-
-
115,361
Fixed assets
-
-
-
-
-
-
At 1 April
Transfer between funds
Current assets Current liabilities
34,151
91,389
-
-
-
125,540
(10,179)
-
-
-
-
(10,179)
27,36102222 23,972
91,389
-
-
-
115,361
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2015 (continued) 11.
Fund analysis (continued) 2014 Co-op
Herts.
Unrestricted
Designated
communit
Parenting
Community
Total
funds
reserves
y
programme
Foundation
funds
£
£
£
£
£
£
6,193
80,000
-
-
-
86,193
119,650
-
117
2,583
2,335
124,685
(113,609)
-
(117)
(2,583)
(2,335)
(118,644)
(8,000)
8,000
-
-
-
-
At 31 March
4,234
88,000
-
-
-
92,234
Fixed assets
173
-
-
-
-
173
Current assets
12,507
88,000
-
-
-
100,507
Current liabilities
(8,446)
-
-
-
-
(8,446)
4,234
88,000
-
-
-
92,234
At 1 April Income Expenditure Transfer between funds
12.
Designated funds The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for special purposes:
At 1 April 2014
Reserves
Pension
Total
Fund
Fund
designated funds
£
£
£
66,542
21,458
88,000
(333)
3,722
3,389
66,209
25,180
91,389
Transfer between funds At 31 March 2015
The Reserves Fund has been created to set aside funds in line with the charity's reserves policy, as described in the Trustees Report. This figure will be reviewed annually. The Pension Fund has been created to set aside funds towards the potential pension fund deficit, as described in note 10.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2015 (continued) 13.
Operating leases Operating lease rentals payable during the next year are as follows: Land and buildings
Within one year Between two and five years
Other equipment
2015
2014
2015
2014
£
£
£
£
3,500
-
-
-
-
7,000
764
764
3,500
7,000
764
764
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SACFC and the FA ~ World Rhythms dance & Fitness ~ Aldwickbury School Samuel Ryder Academy & Dragon’s Apprentice Challenge Soroptimist Institute of St Albans ~ Councillor Mary Maynard, Mayor of Harpenden 2014/5 Hertfordshire Chamber Orchestra ~ FAB Women’s Networking group St Albans Mums group ~ Cunningham Infant School~ Cerco German Lutheran Church of St Albans / Luton ~ St Albans 41 club Mother and Toddler group, Marlborough Road Methodist Church Sainsbury’s London Colney ~ Harpenden Lions ~ St Albans Girls School Cathedral and Abbey Church of St Albans ~ Magician's Nephew Band Herts community Foundation/ Blandford trust ~ Waitrose Harpenden St Alban’s Chamber of Commerce ~ Alterra ~ St Albans Bach choir Chris Thorpe Associates ~ Clarion Collection Hotel Clinic ~ Sylvia Adams Trust The flower box ~ St Albans Tangent Club ~ Lamburn & Turner Accountants Raring2Go ~ Mercer & Hole Accountants ~ The Skin to Love ~ Pampered Chef The Brickyard ~ Sandridge baby & toddler group Hatfield Road Methodist Church Round Table ~ The Hertfordshire Business Independent magazine Flagship Wine ~ Debenhams Ottaway Solicitors ~ Boots St Albans
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We are always looking for volunteers and trustees, and have plenty of exciting roles to suit you, such as: Events organisation, business support, bid writing, fundraising, family support, trustee positions Alternatively if you would like to become a corporate donor, set up a regular donation, or sponsor an event, please get in touch
Home-Start St Albans City & District 31, Spencer Street, St Albans, AL3 5EH Tel and Fax: 01727 833810 office@homestartstalbans.org.uk www.homestartstalbans.org.uk Patrons: Lady Verulam and Dr Julian Godlee Company Limited by Guarantee No 5391896, Charity No. 1108978
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