The trustees present their annual report and financial statements for the year ended 30 September 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 charity's objects are:
a) To advance the Christian faith in accordance with the statement of beliefs in such ways and in such parts of the United Kingdom or the world as the Trustees may from time to time think fit
b) To fulfil such other purposes which are exclusively charitable according to the law of England and Wales and are connected with the charitable work of the Charity.
Vision and objectives
Chair of Trustees – David Barratt
As we prepare this report for the year just ended I find it helpful to look back in order that we might look forward to a new year ahead.
At its simplest level, the aim of KWT is to help people who are struggling for whatever reason, to discover that their lives have value and meaning, and to support them with the practical tools needed as part of their recovery so they may take positive steps forward.
I am reminded of the parable of the lost sheep. The lost sheep in the story, despite straying away, is not abandoned. Instead, the shepherd goes to great lengths to bring it back to the fold. This lesson translates into our lives in a profound way. It's a reminder that even when we stray from our paths or make mistakes, there's always an opportunity for redemption. This story offers profound insights about God’s grace and our own personal journeys. It teaches us the importance of empathy, compassion, and perseverance. The life lessons derived from this parable are not just spiritual. They also offer practical guidance for leading a fulfilling life, overcoming obstacles, and finding true happiness.
Working with homeless and vulnerable people does of course present many challenges, but it also provides for new opportunities to find different solutions to often difficult situations. This has certainly proven true with our partnership agreements, of working together with our local authority and other agencies. Our emergency accommodation is having a very positive impact on reducing homelessness locally and providing a first step to the move-on ladder to more permanent accommodation. We are indeed ever grateful for the honest and transparent relationships with our local government partners that has enabled us to deliver our accommodation services to those in need.
Our work can only thrive because of the commitment and dedication of our staff and volunteers and supporters in the wider community. This includes the many churches who support us magnificently and generously. We simply say a big thank you to you all but recognise that your motivation comes from your own faithful commitment to God and to “loving your neighbour…”
One of our founder members, Brian Arnott resigned his trusteeship with KWT on the last day of our financial year (30 Sep 24) after serving with KWT since the foundation of the charity in September 2010. Brian’s experience and his presence with us will of course be sadly missed but we retain the many attributes of what he has brought to us over the last 14 years.
We are delighted to welcome Julian Dale as trustee from July of this year. Julian has first hand experience of working with homeless and vulnerable people in the community and we look forward to his insight and wisdom adding strength to our board.
We are extremely grateful to all our trustees for their dedication in support of the staff of KWT and in ensuring excellent governance and oversight of the charity.
Organisation Review CEO – Roland Brown
Emergency Housing
Following the change to offering a few single rooms as emergency accommodation in place of the previous communal Night Shelter, we have been able to establish this as our new way of offering Emergency Housing. During the year, with the help of funding from DHLUC (Department of Levelling -Up, Housing & Community) we were able to lease two 5-bed properties to offer as short term accommodation for rough sleepers. With a dedicated support worker we have been able to successfully house and support many individuals with the aim of helping them find longer-term housing within a 3-month period. In the 9 months we were operational up to the year end we housed over 30 people with an average move-on time of 76 days.
During the year we were allocated additional funding and are in the process of increasing the capacity from 10 to 15 beds.
The Bridge
We are very thankful that it has been a relatively calm year at The Bridge. It is encouraging to witness the mutual support between residents in addition to the support given by members of staff.
There were 10 people housed and supported during the year, 7 of whom moved on positively to longer term accommodation. Only one couldn’t abide sufficiently by the requirement we have of not using drugs or alcohol and so was asked to leave.
The staff create a support plan with each resident and with good connections with other agencies and organisations it has been very positive to see residents engaging with training programmes, volunteer activities and a good number have secured part-time work. These all help them moving forward towards a more stable lifestyle. Support has also been given with helping rebuild family relationships and connections. A number have chosen to explore the Christian faith and participated in local church activities.
Hope into Action Eastbourne
As much as we love supporting people in our houses, the aim is always to see them move on to longer term accommodation. Typically with Hope into Action, the hope is that tenants move within two years. For families, this is often a challenge. Finding appropriate houses in the right area and the right price with a landlord who is willing to take someone who may not have a guarantor is complicated. We are very thankful that the two families that we were housing were able to move on during the year. One to a council property the other, who had been with us for nearly four years, found a place to rent privately. One house now has another family in and the other we are planning on using for single tenants, sharing.
In our flats, there is also a challenge to encourage people to move-on to the next stage of their lives. It is very easy for them to get settled in their little flats and the support worker has the task of trying to get them to address whatever issues they may be facing. Having said that, there are always signs of hope even with what might be considered small steps or minor achievements. Volunteers from local churches continue to offer invaluable friendship and support to each tenant.
We have developed a partnership with another local church to support a new house and have secured investment to purchase an additional property.
Weekend Drop-In
The weekend drop-in continues to provide a warm and safe space for up to 60 of the street community on two weekends each month. Operating from The Way, our town centre premises, warm refreshments are served and there are activities and conversation. Our supervisors also signpost people to other local organisations as appropriate. We are grateful for faithful volunteers who give up their time at weekends to help provide this service. It is a challenge to maintain the number of volunteers required and although it is our hope to open more frequently, a shortage of volunteers does not currently allow this.
Hope Woodwork
It was a very challenging year at Hope Woodwork primarily due to running the Lordship Chairs business. There is no doubt that it generated welcome income, however the work involved in fulfilling the orders generated by the website was relentless. The high quality nature of the product limited the number of people who were able to contribute to the production process. In addition the administration, logistics and customer service resulted in the business dominating the time and energy of the manager and key volunteer. After a year of operation it was decided that the business was not sustainable with our current structure. One option would be to employ more staff, but the additional expense would nullify the financial contribution to the charity. The process was started to return the business to the Bruderhof community who had donated it to us.
The plan is to return to focus on the core mission of Hope Woodwork, offering training and support which will be done at a more central location for the cohort of people we serve. The plan is to transfer operations to The Way, which is owned by the charity, thus significantly reducing the overhead of the project. There are a regular number of people attending to receive the training and who benefit from the support offered by our committed team of volunteers.
Sadly we have seen an increase in the number of people needing our support, particularly those who are street homeless in Eastbourne. We are thankful for the resources we have available to provide housing and support to people who are often vulnerable or marginalised and have faced or are facing difficult challenges in their lives. Our dedicated team of staff and volunteers offer support and care to each individual, motivated by our Christian faith to serve others and share God’s love with them in an appropriate way.
Public Benefit
Through our range of projects we interact with a large number of people who are often vulnerable or marginalised and have faced or are facing difficult challenges in their lives. We strive to support those that engage with us to enable them to fulfil their potential and live a life with purpose and hope.
Our meal provision and drop-in services provide for those who struggle to meet their own basic needs. Our residential supported accommodation provide safe homes and support to help many overcome the barriers they face to living more independently. Our workplace training provides the opportunity for those that want to learn a new skill or become more confident in their life skills to empower them to find employment or other meaningful activity. Our involvement of volunteers in the projects provides the opportunity for the wider community to contribute to, and learn from, another section of society, hopefully leading to better integration and a breakdown of stigma towards the homeless and marginalised.
The trustees believe that the activities, objectives and vision, as outlined above are in accordance with the Charity Commission requirements for public benefit.
There was a surplus after transfers on unrestricted funds for the year of £24,675 (2023: surplus of £15,318), leaving unrestricted reserves of £1,290,516 (2023: £1,265,841).
There was a surplus after transfers on restricted funds for the year of £675 (2023: deficit of £28,245), leaving restricted funds of £39,039 (2023: £38,364) at the balance sheet date.
Reserves policy
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 equivalent to six month’s operating expenditure, equivalent to approximately £120,000. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. Free reserves of £280,644 at 30 September 2024 cover this figure adequately.
Risk policy
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The charity is a company limited by guarantee incorporated on the 17 September 2010.
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:
New trustees are approved by the majority votes of the members.
New trustees are identified as those with spiritual maturity and suitable training and induction is provided as necessary.
None of the trustees has any beneficial interest in the company. Each member of the company guarantees to contribute £10 in the event of a winding up.
The trustees' report was approved by the Board of Trustees.
The trustees, who are also the directors of Kingdom Way Trust 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 year.
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.
I report to the trustees on my examination of the financial statements of Kingdom Way Trust (the charity) for the year ended 30 September 2024.
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 the Association of Chartered Certified Accountants, 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.
Kingdom Way Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is Chantry House, 22 Upperton Road, Eastbourne, East Sussex, BN21 1BF. The operating address is 128 Royal Parade, Eastbourne, East Sussex, BN22 7JY.
The financial statements have been prepared in accordance 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 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. 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.
Donated assets are recognised in the financial statements at market value.
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.
Expenditure is included in the Statement of Financial Activities on an accruals basis and includes irrecoverable VAT.
Charitable expenditure comprises expenditure related to direct furtherance of the charity's objects.
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
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’ 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.
The trustees consider that the company is not liable to United Kingdom corporation taxation due to all it's income being applied to charitable activities.
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.
The charity has a defined pension contributions contractual agreement with staff. Contributions are charged in the accounts as they become payable in accordance with the agreement.
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.
Donations and legacies
Grants receivable
Emergency Housing
The Bridge
Hope Woodwork
Hope into Action
Wannock House
The Way &
WE Drop in
Bedding, clothes and food
Travel and motor expenses
Rent, rates, telephone and utilities
Insurance
Small equipment, supplies and repairs
Admin support and other costs
Key work consultations and professional support
Hope Into Action Investors return
Franchise
Subscriptions
Materials
Delivery costs
The Bridge
Hope Woodwork
Hope into Action
Wannock House
Bedding, clothes and food
Travel and motor expenses
Rent, rates, telephone and utilities
Insurance
Small equipment, supplies and repairs
Admin support and other costs
Key work consultations and professional support
Hope Into Action Investors return
Franchise
Subscriptions
Materials
Delivery costs
None of the trustees (or any persons connected with them) received any remuneration during the year. Two trustees were reimbursed a total of £605 for travel and subsistence expenses during the year (2023: two trustees were reimbursed £660).
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.
During the year ending 30 September 2018 Kindgom Way Trust participated with a group of investors to purchase a property in Eastbourne to be used for the Hope into action project. The consortium of investors have entered into a Trust deed which requires investment in the project for a minimum period of 5 years, after which investors can withdraw their capital or remain part of the project for a further 5 years,
There was a revaluation of the property at 28 November 2023 to release investors and enable new investors to take part. As a result the Trust's share increased £2,950 by being revalued. At the same time one of the existing investors donated their share to the Trust resulting in increase of £7,714.
Hope into Action is a nationally recognised project designed to house and support vulnerable individuals and families. Each property is partnered by a Church who provide support to the tenants. This investment by Kingdom Way Trust helps to fulfil the charitable objects
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.
DLUHC Emergency Housing Grant - A grant from the Department for Levelling Up, Housing & Communities to provide winter emergency housing. The small remaining balance will be carried forward to use in 2023-24.
Emergency Housing - Other donations and grants received specifically to assist with the costs of running the WNS project.
Hope Woodwork - income and expenditure related to this project which provides training, education and helps to restore self worth and build confidence in individuals.
Hope into Action
• Investment: £25,000 was received in 2017-18 for the charity to invest in a Hope Into Action property as described in note 14. Two further gifts totalling £8,250 were received in 2023-24 to be invested in the next Hope Into Action property purchase. Along with the balance of the revaluation of Attfield Walk of £3,459 treated as donations and held for future use.
• Eastbourne Property: This represents income and expenditure relating to the Hope Into Action property located in Eastbourne managed by the charity. During the year the original 5 year investment term ended. Under the Hope into Action agreement any surplus monies held relating to the property belong to KWT. A transfer was therefore made to general funds in accordance with this agreement.
• Salaries: This fund contains grants received to cover the salary of an employee who started November 2021.
Weekend Drop-in - grants and donations to be put towards the cost of providing a weekend drop-in service for vulnerable members of the community.
Support worker salaries - this fund included grants which were used to pay for support worker salaries for the Bridge and Hope into Action projects.
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.
Wannock House Property
This property was donated to the trust, valued at the time of the gift at £575,000. No restriction was placed on the use of the property and it is being utilised in the core charitable activities. The value of the property has been placed into a separate designated fund to identify it separately from the General funds. Depreciation is charged to the fund so that it represents the net book value of the property.
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:
There were no disclosable related party transactions during the year (2023 - none).