I report to the trustees on my examination of the financial statements of The Open Door (Taunton) (the charity) for the year ended 31 March 2024.
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
J M Farkas ACA
Lentells Limited
Ash House
Cook Way
Bindon Road
Taunton
TA2 6BJ
The trustees present their annual report and financial statements for the year ended 31 March 2024.
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 Memorandum and 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).
The objects of the charity, as set out in the governing document are:
To relieve need, hardship, or distress within Taunton, in the County of Somerset, providing shelter and associated facilities and providing care, meals and such Other similar benefits as are from time to time considered to be appropriate for persons who have need of such by reason of their situation in life.
We welcome anyone who is homeless in the Taunton area and in need of a regular and consistent source of practical help not available elsewhere, regardless of personal background, faith, gender, age, or personal circumstances.
The charity is very reliant on help from our many volunteers, and we wish to thank all those who donate their time, expertise, and money for the benefit of clients who come to our Centre.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
During the financial year 2023/24 the day centre remained open for 52 weeks to support people who were rough sleeping and those who were newly homeless. During the year we have again supported clients with highly complex needs and continue to see an increase in the proportion of clients with multiple needs. We work closely with partner agencies to support and maximise outcomes for our clients.
Throughout the year we supported a total of 294 Individual clients and served 6000 meals.
After reviewing our strategy document, we enhanced and improved our policies and procedures such as employing contractors, use of OneDrive/Microsoft 365, food hygiene training and created an improved database of the support services that we offer to clients.
New job descriptions of staff roles were designed to align with the support needs of our clients.
During the year we appointed one new trustee to help with overall business management and strategy, and we appointed a new Charity Manager and Centre Support Worker.
A start was made on a major project to survey the physical condition of the 140-year-old premises to identify and plan for both short-term and long-term building repairs. We took professional advice from a historic building surveyor and a structural engineer, and we took advice from the local planning department. In 2023 some immediate and urgent repairs were carried out on the roof to secure the building from water ingress, and to repair internal damage. The scope of this project continues to be a major focus and will progress in stages, well beyond the current financial year (2024-25).
Improvements were made to our security measures with the installation of a comprehensive CCTV system at the centre, including exterior cameras. The internal ventilation system serving the client shower block was replaced and significantly upgraded.
We continue to be reliant on the £15,000 per annum we receive from Somerset Council and the regular and ad hoc financial support we receive from many individuals, local churches and organisations. During the year, the Charity benefitted from an award from the National Lottery Community Fund of £35,498 to support staff costs and overheads.
We are also very grateful for the steady supply of donated food, clothes and bedding that comes through our door every day. We estimate that the value of donated goods received in the year is in the region of £3,000.
In October 2023, the charity launched a Roof Appeal campaign via its online giving platform (CAF), backed up by social media. The campaign raised £14,240 in the last 6 months of 2023/24, and this targeted fund-raising continues to help support the cost of building maintenance.
We received significant donations from the following Charitable Trusts:
The Albert Hunt Charitable Trust
The 31st May Charitable Trust
Help the Homeless Charitable Trust
Corporate donors:
Tesco Stronger Starts
Taylor Woodrow
There was a surplus for the year on unrestricted funds of £14,546 a decrease of £7,490 on the previous year.
In view of the financial commitments and the uncertain nature of voluntary donations, the trustees consider that free reserves equal to twelve months of normal expenditure are necessary. This equates to £151,000 based on the budget for the year to 31 March 2024.
Free reserves are those reserves not tied up in fixed assets or in restricted funds or in funds designated by the trustees for a specific purpose. The level of the free reserves at 31 March 2024 amounted to £213,686.
The charity is a charitable company limited by guarantee registered on 18 December 2007 under charity number 1122040. The governing document is the company's Memorandum and Articles of Association drafted 17 October 2007.
Responsibility for setting policy and for determining the parameters within which the charity should operate rests with the trustees who meet regularly to monitor the activities of the charity.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
In November and December 2023 Susie Peeler temporarily stepped down from her role as a Trustee and board member while she provided short term cover for a part-time staff vacancy. Total remuneration related to S R Peeler during this time was £2109.33. Except for this emergency cover of centre staffing, none of the trustees had any beneficial interest in the company. The company's Memorandum and Articles of Association were amended to reflect this change and registered with the Charity Commission and Companies House.
The charity may by ordinary resolution appoint a person who is willing to act to be a trustee either to fill a vacancy or as an additional trustee and may also determine the rotation in which any additional trustees are to retire. All of the trustees are members of the company and guarantee to contribute £10 in the event of a winding up.
The number of trustees shall not be less than three but there is no maximum number.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £10 in the event of a winding up.
During the year we have continued to:
Update policies and procedures of the centre to ensure effective and safe delivery of services.
Update the charity 5-year strategy document.
Seek new funding streams to support staff costs and capital projects.
Improve the structural integrity and repair of the premises.
The charity is exposed to various risks be they operational, financial or reputational. The director trustees review the charity’s activities regularly to identify significant risks and, where possible, they take appropriate measures to mitigate those risks. The risk register is updated 3 monthly and considered at each Board meeting. Premises and finance sub committees meet regularly and report findings and recommendations to the board. The trustees consider that the most significant risk to the charity at this time is the potential of insufficient funds to provide for necessary or urgent repairs to the premises, and therefore a liquidity plan is in place in case of exceptional costs incurred in maintaining the building.
The trustees' report was approved by the Board of Trustees.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The Open Door (Taunton) is a private company limited by guarantee incorporated in England and Wales. The registered office is Ash House, Cook Way, Bindon Road, Taunton, Somerset, TA2 6BJ.
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, 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. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
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 financial statements.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
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.
Government grants are recognised in the Statement of Financial Activities when there is reasonable assurance that the charity has complied with the conditions attached to the grant and there is reasonable assurance that the grant will be received. Grants received that do not have specified performance-related conditions attached will be recognised upon receipt, otherwise grants will be recognised when the performance related criteria has been met.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Government grants
The average monthly number of employees during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
Letting of three flats
Management fees and charges
Repairs and maintenance
Insurance
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
In the year, S Peeler, temporarily stood down from her role as a Trustee whilst she provided short term cover for a part-time staff vacancy. Total remuneration received amounted to £2,109.
Except for this emergency cover of centre staffing, there were no other disclosable related party transactions during the year (2023 - none)..