Charity registration number NIC109804
Company registration number NI688932 (Northern Ireland)
SIMON COMMUNITY CREATING HOMES
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
SIMON COMMUNITY CREATING HOMES
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Ms T McAreavey
(Appointed 13 June 2022)
Mr M O'Kane
(Appointed 13 June 2022)
Mr C Milligan
(Appointed 14 November 2022)
Charity number
NIC109804
Company number
NI688932
Principal address
4th Floor
Arthur Place
24-26 Arthur Street
Belfast
BT1 4GF
Registered office
4th Floor
Arthur Place
24-26 Arthur Street
Belfast
BT1 4GF
Bankers
Danske Bank
Donegall Square West
Belfast
BT1 6JS
Solicitors
Agnew, Andress, Higgins & Co
92 High Street
Belfast
BT1 2BG
SIMON COMMUNITY CREATING HOMES
CONTENTS
Page
Trustees' report
1 - 2
Independent auditor's report
3 - 8
Statement of financial activities
9
Balance sheet
10
Notes to the financial statements
11 - 15
SIMON COMMUNITY CREATING HOMES
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE PERIOD ENDED 31 MARCH 2023
- 1 -

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

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

Simon Community Creating Homes Limited is a wholly owned subsidiary of Simon Community NI. The charity aims to own and manage rental properties in order to provide good quality, secure and affordable housing for clients of Simon Community NI who are experiencing or are at risk of homelessness. This offering facilitates people’s journey out of homelessness aligning to our vision of a society where everyone has a place to call home.

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

Achievements and performance

The charity was incorporated on 13 June 2022. In its first accounting period the charity secured a loan from which it will acquire properties in subsequent periods in order to provide good quality, secure and affordable housing for those who are experiencing or are at risk of homelessness.

Financial review

At the period end the charity had cash reserves of approximately £1.5m that will be utilised to acquire properties in line with its charitable objectives. The charity's sole member is Simon Community Northern Ireland, which provides admin and management support.

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level that is sufficient to meet the ongoing requirements of the organisation.

Structure, governance and management

The charity is a company limited by guarantee governed by its memorandum and articles of association. The charity was incorporated on13 June 2022 and was registered as a charity with the Charity Commission for Northern Ireland on 28 February 2024.

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

Ms T McAreavey
(Appointed 13 June 2022)
Mr M O'Kane
(Appointed 13 June 2022)
Ms C O'Neill
(Appointed 13 June 2022 and resigned 26 September 2023)
Mr C Milligan
(Appointed 14 November 2022)

The member may appoint any person to be a trustee by notice in writing delivered to a meeting of the trustees and every trustee must sign a declaration of willingness to act as a trustee of the charity before he or she is eligible to vote at any meeting of the trustees.

 

Each trustee shall retire from office on the third anniversary of the date of their appointment. They are immediately eligible for re-election provided that no trustee may serve more than nine consecutive years in office.

 

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

 

The day to day management of the charity is delegated to the senior management team of the parent charity, Simon Community Northern Ireland, led by Chief Executive Mr J Dennison.

SIMON COMMUNITY CREATING HOMES
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 2 -
Statement of trustees' responsibilities

The trustees, who are also the directors of Simon Community Creating Homes for the purpose of company law, are responsible for preparing the Trustees' Report 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.

 

In preparing these financial statements, 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;

 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

 

- prepare the financial statements 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 financial statements 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.

Auditor

were appointed as auditor to the company and a resolution proposing that they be re-appointed will be put at a General Meeting.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

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

Mr M O'Kane
Trustee
12 March 2024
SIMON COMMUNITY CREATING HOMES
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SIMON COMMUNITY CREATING HOMES
- 3 -

Opinion

We have audited the financial statements of Simon Community Creating Homes (the ‘charity’) for the period ended 31 March 2023 which comprise the statement of financial activities, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (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 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the period 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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 charity’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.

SIMON COMMUNITY CREATING HOMES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SIMON COMMUNITY CREATING HOMES
- 4 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. 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. 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 course of 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

-

the information given in the trustees' report for the financial period for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and

-

the directors' report included within the trustees' report 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 charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.

We have nothing to report in respect of the following matters in relation to which 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 prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.

SIMON COMMUNITY CREATING HOMES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SIMON COMMUNITY CREATING HOMES
- 5 -
Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity’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.

Auditor's 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 an auditor's report 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

SIMON COMMUNITY CREATING HOMES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SIMON COMMUNITY CREATING HOMES
- 6 -
Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing potential risks of material misstatement in respect of irregularities, including fraud and non-compliances with laws and regulations, we considered the following:

As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in management override. In common with all audits under ISAs (UK), we are required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006, and local tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

SIMON COMMUNITY CREATING HOMES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SIMON COMMUNITY CREATING HOMES
- 7 -
Audit response to risks identified

Our procedures to respond to the risks identified included the following:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. In addition, as with any audit, there remains a higher risk of non-detection of irregularities, as they may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

SIMON COMMUNITY CREATING HOMES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SIMON COMMUNITY CREATING HOMES
- 8 -

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 auditor's 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.

Mr Nigel Moore FCA (Senior Statutory Auditor)
for and on behalf of
12 March 2024
Chartered Accountants
Statutory Auditor
SIMON COMMUNITY CREATING HOMES
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE PERIOD ENDED 31 MARCH 2023
- 9 -
Unrestricted
Restricted
Total
funds
funds
2023
2023
2023
Notes
£
£
£
Income from:
Charitable activities
2
-
652,231
652,231
Expenditure on:
Charitable activities
3
315
-
315
Net (expenditure)/income for the period/
Net movement in funds
(315)
652,231
651,916
Fund balances at 13 June 2022
-
-
-
Fund balances at 31 March 2023
(315)
652,231
651,916

The statement of financial activities includes all gains and losses recognised in the period.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
SIMON COMMUNITY CREATING HOMES
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 10 -
2023
Notes
£
£
Current assets
Cash at bank and in hand
1,499,985
Creditors: amounts falling due within one year
8
(300)
Net current assets
1,499,685
Creditors: amounts falling due after more than one year
9
(847,769)
Net assets
651,916
Income funds
Restricted funds
11
652,231
Unrestricted funds
(315)
651,916
The financial statements were approved by the Trustees on 12 March 2024
Mr M O'Kane
Trustee
Company registration number NI688932
SIMON COMMUNITY CREATING HOMES
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
- 11 -
1
Accounting policies
Charity information

Simon Community Creating Homes is a private company limited by guarantee incorporated in Northern Ireland. The registered office is 4th Floor, Arthur Place, 24-26 Arthur Street, Belfast, BT1 4GF.

1.1
Reporting period

The company was incorporated on 13 June 2022. These financial statements relate to the period from 13 June 2022 to 31 March 2023. The period was shortened to align with the parent charity, Simon Community Northern Ireland.

1.2
Accounting convention

The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

 

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.

1.3
Going concern

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

1.4
Charitable funds

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

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

1.5
Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

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

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
SIMON COMMUNITY CREATING HOMES
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies (Continued)
- 12 -
1.6
Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

 

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

1.7
Cash and cash equivalents

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

Basic financial assets

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

Basic financial liabilities

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

 

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

 

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

Derecognition of financial liabilities

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

1.8
Employee benefits

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

 

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

SIMON COMMUNITY CREATING HOMES
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 13 -
2
Charitable activities

Charitable Income

2023
£
Other income
652,231
3
Charitable activities

Charitable Expenditure

2023
£
Share of support costs (see note 4)
15
Share of governance costs (see note 4)
300
315
4
Support costs
Support costs
Governance costs
2023
£
£
£

Bank charges

15
-
15
Audit fees
-
300
300
15
300
315
Analysed between
Charitable activities
15
300
315

Governance costs includes payments to the auditors of £300 for audit fees.

5
Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the period.
SIMON COMMUNITY CREATING HOMES
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 14 -
6
Employees

The average monthly number of employees during the period was:

2023
Number
Total
-
0
There were no employees whose annual remuneration was more than £60,000.
7
Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

8
Creditors: amounts falling due within one year
2023
£
Accruals and deferred income
300
9
Creditors: amounts falling due after more than one year
2023
£
Borrowings
847,769
10
Loans and overdrafts
2023
£
Other loans
847,769
Payable after one year
847,769
Amounts included above which fall due after five years:
Payable by instalments
662,514

The long-term loans are secured by fixed charges over specific properties of the parent charity, Simon Community Northern Ireland, and a floating charge in respect of all the assets of the charity.

In accordance with FRS 102 the loan has been recognised at the net present value of the future repayments and a notional interest rate charge of 5% will be applied to the loan in future years.

SIMON COMMUNITY CREATING HOMES
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 15 -
11
Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
Movement in funds
Movement in funds
Incoming resources
Balance at
13 June 2022
Incoming resources
Balance at
31 March 2023
£
£
£
£
Loan fund
-
-
652,231
652,231

In future years, a notional interest charge will be applied as expenditure against this fund.

12
Analysis of net assets between funds
Unrestricted funds
Restricted funds
Total
2023
2023
2023
£
£
£
Fund balances at 31 March 2023 are represented by:
Current assets/(liabilities)
(315)
1,500,000
1,499,685
Long term liabilities
-
(847,769)
(847,769)
(315)
652,231
651,916
13
Related party transactions

The charity's sole member is Simon Community Northern Ireland, a charitable company registered in Northern Ireland.

 

Simon Community Northern Ireland has included the results of Simon Community Creating Homes in its group financial statements, copies of which are available from the registered office at 4th Floor Arthur Place, 24-26 Arthur Street, Belfast, BT1 4GF.

2023-03-312022-06-13falseCCH SoftwareiXBRL Review & Tag 2022.2NI6889322022-06-132023-03-31NI688932bus:Director12022-06-132023-03-31NI688932bus:Director22022-06-132023-03-31NI688932bus:Director42022-06-132023-03-31NI688932bus:Director32022-06-132023-03-31NI6889322023-03-31NI688932bus:FRS1022022-06-132023-03-31NI688932bus:Audited2022-06-132023-03-31NI688932bus:FullAccounts2022-06-132023-03-31xbrli:purexbrli:sharesiso4217:GBP