The trustees, who are also directors of the Charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2024. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
The Objectives of the Charity are as stated below:
‘Beacon House Ministries exists to provide Christ-centred love, hope and acceptance to those who are homeless or without permanent accommodation. By engaging with them, and working together, we aim to positively impact and transform their lives, enabling them to realise their full potential - bringing hope to the lost through the love of Jesus.’
The work at Beacon House started in March 1996 and a team of paid and volunteer workers carry out the functions of the Charity. All staff are committed to the principles of the Christian faith in accordance with the Charity policy. At the end of the year there were 10 employed staff and 26 regular volunteers working at Beacon House. The work was also supported by student placements from Colchester Institute and Essex, Suffolk, and Anglia Ruskin Universities.
It is important to state that although we are a ‘faith based’ Christian charity, we welcome Guests of all faiths, or no faith, and treat everyone exactly the same. That approach applies equally to all the other eight protected characteristics, i.e. age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, sex, and sexual orientation.
The Day Centre and Primary Health Centre are conveniently located on Crouch Street and offer a very wide range of services, tailored to each individual. Healthcare services include two drop-in clinics, vaccinations, nurse consultations, sexual health services, cervical screening and needle exchange. Welfare services include breakfast and hot lunch, tea and coffee throughout the day, a barber, postal services, a computer suite, showers, laundry facilities and help with alcoholism and smoking cessation. Through our association with the Essex Law Clinic, we are also able to offer our Guests a degree of legal guidance.
Given that our aim is to walk with, and empower, our Guests on the journey towards self-fulfilled and independent lives, through our Occupational Therapy team (Senior OT plus an OT Assistant) we provide help with their personal development which includes life skill training and occupational therapy (both internal and external activities). Full health and wellbeing assessments are also provided using the nationally recognised Outcomes Star programme and this enables our Guests to move forward into healthier and more stable lives.
Beacon House also works very closely with a number of other organisations including Colchester Emergency Night Shelter, Emmaus, NACRO, Sanctuary Housing, Essex Law Clinic, Colchester Food Bank, Phoenix Futures, Alcoholics Anonymous, Colchester Borough Homes, Open Door, Open Road, STaRS and Job CentrePlus. We also interact, as appropriate, with the Police and Probation Service, with whom we enjoy a very good working relationship.
Public benefit
The directors have regard to the public benefit general guidance issued by the Charity Commission. They believe that the description of the Company's activities in this annual report evidence that those activities carry out the Company's objects for the public benefit.
Developments in the Current Year
Over the past 4 years we have been gradually shifting our model from one that was predominantly based on free handouts, without too many questions asked, to one of significant Guest engagement.
Given that our goal for every Guest is to help them move from a position of being ‘stuck’ (whatever ‘stuck’ looks like for that particular individual) to living a self-fulfilled, independent life, everything we say and everything we do must contribute positively towards that goal.
We will walk the road with anybody, but we absolutely will not walk it for them – and that means they have to be honest, and they have to engage in a very positive way.
Doing things for people who can do those same things themselves is not helpful at all – it simply disempowers them, creates dependencies and fails to take them forward in life. Only by participation and contribution is real transformation made and, time and time again, we are proving that by the approach we now take.
One of the most significant developments during 2023/2024 has been the introduction of Guest Volunteers. These roles are exactly as they sound, i.e. individuals who came to Beacon House as Guests and are now volunteering.
Many Guests wish to say ‘thank you’ for the help they received at Beacon House in a tangible way, and, for some, this is how they express their thanks. Not only do these roles allow them to show that thanks in a practical way, they also provide much needed help on a day to day basis and, far more importantly, enable the Guest Volunteers to grow in confidence and self-esteem in the knowledge that at the same time they are helping others who are where they were not so long ago.
Additionally, during 2023/2024, we have formed new alliances, for example with Changing Lives, a charity who operate a gym just across the road from us on Crouch Street. More and more of our Guests are getting involved in the various activities they offer (not just pure gym, but allied activities that stimulate Well-being), and reaping the benefits of that involvement.
Perhaps the most exciting development, certainly in terms of desired outcomes, is our new partnership with Hope House (the Adam Project) in Lowestoft. This is a residential rehabilitation charity for men, run by a very dedicated team, all of whom have lived experience of addiction. At the time of this report being written, we have six of our Guests resident at Hope House, with another two soon to join them. Lives have already been changed in really positive ways as a result of being there and we look forward to this continued partnership resulting in permanent freedom from addiction and lives being transformed as a direct result.
Our close partnership with the Essex Law Clinic continues to provide much needed, and very welcome, advice on all aspects of law, both for Guests on an individual level, but also for Beacon House as a whole.
Because we constantly strive to improve the ministry and services provided by Beacon House, we continually re-evaluate what we do, and how we do it, in order to ensure the services we offer are relevant to the need as it presents itself at any given time.
Statistics for the year ending March 2024
Number Percentage
Total number of people accessing services 405
New registrations during the year 311 77%
Males 232 75%
Females 79 25%
18 years 5 1%
19 - 25 years 28 9%
26 - 40 years 116 37%
41 - 60 years 128 42%
61 years + 34 11%
Housing Status
Rough Sleeping (inc. in car) 88 29%
Night Shelter 54 17%
Sofa Surfing 132 42%
Temporary Accommodation 37 12%
Clinical Appointments 1,750
Issues Resolved Entirely 'In House' 1,701 97%
GP Referrals 49 3%
Number of people housed 220
Beacon House is by no means an island and we could not achieve all we currently do without the help of our volunteers, the partner organisations we work with and those who support us financially - individuals, churches, groups, companies and grant making bodies. I would like to record our grateful thanks to each and every one who has played their part in helping us seek to transform lives through the work of Beacon House.
Although the budget for 2023/2024 anticipated a significant financial loss, we are pleased to report that the year finished with a small surplus, equivalent to approximately 6 weeks operating costs. Part of this is down to a careful and considered restructuring of paid roles, and partly because some areas of income, namely grants and accommodation income, performed better than expected.
The budget for 2024/2025 again predicts a significant financial loss and given that the greatest proportion of any organisations cost, i.e. staff, was restructured during 2023/2024, that option does not exist for 2024/2025. Therefore, unless donations and/or grants increase significantly, we will be dipping into our financial reserves in a significant way during 2024/2025.
Our policy is to retain free reserves equivalent to six months total operating costs.
The accounts for the year ended 31st March 2024 are set out in pages 7 to 22.
Investment policy and objectives
There are no long-term investment policies due to the uncertainty of our funding income. There is an aspiration to grow income and to continue to grow our services, and this policy will continue to be reviewed.
Beacon House is a registered charity and is a company limited by guarantee. As set out in our Memorandum and Articles of Association the Company is managed by its directors, who determine its functions and policy and act as charity Trustees. Management and direction of routine operations, external relations and income generation is undertaken by the Chief Executive Officer, Steve Brown.
The trustees regularly review the skills, aptitudes and experiences that are required to ensure there is good governance. When vacancies occur, or skill gaps are identified the trustees approach individuals from the community who are known to meet the necessary criteria. There is an application and assessment process, after which new trustees are invited to join the board.
The trustees meet bi-monthly with the CEO to manage the strategic and operational aspects of the charity. Sub-committees, who report back to the main board, are formed where more in depth consideration of specific subjects is required. Trustees are required to visit the charity regularly in order to maintain strong and meaningful relationships with team members.
Risk Management
The directors regularly review the major risks which the Charity faces and confirm that systems are in place to mitigate such risks, supported by regular reporting.
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:
The trustees report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Beacon House Ministries (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.
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of , which is one of the listed bodies.
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.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Beacon House Ministries is a private company limited by guarantee incorporated in England and Wales. The registered office is 36 Lexden Road, Colchester, Essex, CO3 3RF, England.
The financial statements have been prepared in accordance with the 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)” (as amended for accounting periods commencing from 1 January 2016). 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 applying FRS 102 Update Bulletin 1 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 and to include investment properties and certain financial instruments at fair value. 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.
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.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
The following specific policies are applied to particular categories of income:
Voluntary income is received by way of grants and donations and is included in full when receivable.
Gift Aid recoveries on donations from individuals are recognised in the same period as the donation.
Unrestricted grants, where entitlement is not conditional on the delivery of a specific performance
by the charity, are recognised when the charity becomes unconditionally entitled to the grant.
Restricted grants are recognised on receipt except to the extent where the grant is time related to the
delivery of a service in a future period it is carried forward as deferred income.
Investment income is included when receivable.
Donated goods are included at the value to the charity where this can be quantified, and relates to food etc donated from supermarkets. The value of services provided by volunteers has not been included in these financial statements.
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Expenditure includes non-recoverable VAT, and is reported as part of the expenditure to which it relates.
Charitable 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 costs include those costs associated with meeting the constitutional and statutory
requirements of the charitable company; this includes the preparation and examination of this
annual report and financial statements, and costs linked to the strategic management of the charity.
Support costs are allocated to charitable activities based on floor space and estimated resources used.
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 net income/(expenditure) for the year.
Freehold property consists of residential properties that have been converted by the charity from commercial use and are included at valuation at the time of the conversion. Depreciation is not provided on the freehold buildings as they are required to be maintained to a high standard, resulting in a residual value which would make any depreciation charges immaterial.
Assets costing less than £1,000 are written off in the year of purchase.
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
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 charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
The pension cost is allocated between activities and between restricted and unrestricted funds based on the analysis of the employee cost to which it relates.
Redundancy and termination payments are measured at the best estimate of the expenditure required to settle the obligation at the reporting date.
The costs in the year are allocated between the activities and between restricted and unrestricted funds based on the analysis of the employee cost to which it relates.
Investments
Investments are treated as current asset investments where they are held in readily accessible funds.
Listed investments are stated at market value less provision for any permanent diminution in value. The market value of listed investments is based on the closing middle market price on the London Stock Exchange. The SOFA includes the net gains and losses arising on revaluations and disposals throughout the year.
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.
Healthcare Services
Housing Services
Welfare Services
...Development Services
Healthcare Services
Housing Services
Welfare Services
Development Services
Other payroll costs
Clinic costs
Laundry
Miscellaneous
Donated goods
Café costs
Bursary for client
Occupational therapy
Housing costs
Nursing costs
Fees
Cleaning and waste
Licences
Travel expenses
Volunteer expenses
Staff training
Postage, stationery and telephone
IT expenses
Sundries
Advertising and annual report
Support costs includes £30,933 (2023: £31,306) for other operating leases.
Governance costs includes Independent Examiners remuneration of £1,080 (2023: £1,116) for the examination of the accounts and £1,520 (2023: £1,674) for other financial services.
The average monthly number of employees during the year was:
The full time equivalent number of employees was 7.5 (2023 - 7.5).
As required by FRS102, the trustees consider that the charity has 1 key manager who received a salary of £62,504 and employer pension contributions of £3,125 (2023: 3 key management with remuneration of £130,899).
Included within Wages and salaries are redundancy costs of £5,474.
The Freehold property was valued on 14 January 2019 and this value has been used. The Charity owns 70% of the Freehold property with the remaining 30% held by The Colin Bennett Charitable Trust for the Homeless.
The Freehold property is now used for generating income for use by the Charity and has been transferred to Investment property.
Investment property comprises the property at East Hill. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 14 January 2019 by a firm of Chartered Surveyors, who are not connected with the charity. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. The Trustees consider the current valuation to not be materially dissimilar.
The deferred income relates to grants received in advance. All of the £155,997 deferred income brought forward was recorded as income during the year ended 31st March 2024.
Property
Restricted Fund grants had been received in prior periods for the purchase of 90 East Hill, Colchester, for the purchase, refurbishment and adaptation of 91 East Hill, Colchester, and the conversion of the Freehold property at East Hill.
Additionally a grant had been received in prior periods to improve the leased property at Norfolk House. The costs are being written off in line with the amortisation of the expenditure.
Grants
Colchester Borough Homes for Homeless Prevention
NHS Suffolk & North Essex CCG for Nurse Led Drop-in-service and Spirometry Screenings
Garfield Weston for Café Plus (Welfare Services)
Community 360 Hyperlocal Fund for Activities for Homeless People to improve wellbeing
Essex Community Foundation for Welfare Services
Nationwide Building Society for Housing
Essex Association of Local Councils for Food and Winter Warmth
Colchester Catalyst for Clinic Spirometry Screenings and OTA
NHS Suffolk & North East Essex for Occupational Therapist
Police & Crime Commissioner for Community Safety
Essex County Council for Guest Skill Enhancement
Provide CIC for Smoking Cessation
NHS England for Immunisation and Bowel Screening clinics
Unrestricted
Restricted
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Colin Bennett is a Trustee of the Charitable Company and also a Trustee of The Colin Bennett Charitable Trust for the Homeless.
The Colin Bennett Charitable Trust for the Homeless own the remaining 30% of the Freehold/Investment property.
The Colin Bennett Charitable Trust for the Homeless own other properties which are managed by the Charity.
The Charity receives a management fee in respect of the properties managed on behalf of the Colin Bennett Charitable Trust for the Homeless.
During the year the Charity paid for decorating services provided by the wife of the CEO - the amount paid for the services was £767.