The trustees, who are also the directors of Project 34 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 Project 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 Project 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 Project 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 Project and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees present their annual report and financial statements for the year ended 31 October 2024.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Project's governing document, 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 Project's objects are to provide social housing accommodation, care and support for the vulnerable homeless. From 4 December 2014 Project 34 is also a Registered Provider with the ‘Regulator of Social Housing’ (RSH) – Registration number 4800 and is required to comply with their Regulatory Framework. There has been no change in activities during the year.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Project should undertake.
At the main hostel, Project 34 provides fully-furnished individual rooms, with cleaning services and laundry, together with communal kitchen, dining and lounge facilities, for 27 vulnerable homeless people. There is also a ‘move on’ hostel with duplicate communal services, but much lighter supervision, this can accommodate a further 8 individuals. Occupancy levels are usually over 95%.
Project 34 sees the demonstration of Value for Money (VfM) as an important factor in ensuring that our Commissioners and Regulators are able to take a view on the investment made of public monies. We already monitor against various VfM indicators and are looking to identify how we can adapt our systems so as to reflect some of the new Standards that the RSH have introduced, even though these are mainly geared towards ‘large Registered Providers with bed-units of 1,000 or more.
Tenant Satisfaction Survey
Project 34 has always had high regard to what its tenants think of the overall service it provides, The Regulator of Social Housing (RSH) now require all Registered Providers to carry out a formal survey to ascertain this - in Project 34's case, every two years.
Accordingly, we have surveyed all Tenants using the following relevant questions suggested by the RSH
a) Overall satisfaction? |
b) Satisfaction with repairs? |
c) Satisfaction with time taken to complete most recent repair? |
d) Satisfaction that the home is well maintained? |
e) Satisfaction that the home is safe? |
f) Satisfaction that the landlord listens to tenant views and acts upon them? |
g) Satisfaction that the landlord keeps tenants informed about things that matter to them? |
h) Agreement that the landlord treats tenants fairly and with respect? |
i) Satisfaction with the landlord’s approach to handling complaints? |
j) Satisfaction that the landlord keeps communal areas clean and well maintained? |
k) Satisfaction that the landlord makes a positive contribution to neighbourhoods? |
l) Satisfaction with the landlord’s approach to handling anti-social behaviour? |
Some of the questions were not relevant to individual tenants as they hadn't experienced certain aspects of the service (eg b), c) and i)) and after taking these in account, the satisfaction levels averaged 98%. For the small minority who expressed non-satisfaction (ie 2%), further discussions took place and the respective issues were resolved.
The Housing Ombudsman have subsequently confirmed that they are satisfied that we have provided and
published all necessary documents as part of its submission. Their Duty to Monitor team will in due course carry out an assessment of the annual submission to determine if the landlord demonstrates compliance
with the Complaint Handling Code and will contact the landlord once this is commenced. It is worth noting that in the various press releases that the Housing Ombudsman have recently issued, there has been a very mixed response to other organisation’s performance in carrying out this Tenant’s Satisfaction survey and therefore it is very encouraging that the initial Housing Ombudsman’s report is positive in that we have fully complied with submission requirement requirements. Its however important not to become complacent regarding Tenants Satisfaction and if any actions points are required following the Duty Monitor assessment, these will be immediately actioned.
Income from room rentals was up this year. In total, incoming resources rose by 8% to £713,114.
Increases in the costs of wages, repairs and depreciation were the main reasons why expenditure rose by 8% so that income exceeded expenditure by £51,013.
Also as the building is aging and with its specific usage, the frequency and cost of 'standard/annual repairs' is increasing but also the need for additional ad-hoc repair costs which though they may not occur every year, do need to be 'saved for' (i.e. 'contingency provision') so that they can be afforded when they happen.
The total funds at 31 October 2024 amounted to £675,622, so the project is still well able to fund its day to day operations and to seek new opportunities for its expertise while remaining completely self-supporting and without having to resort to public appeals.
It is the policy of the Project that unrestricted funds which have not been designated for a specific use should be maintained at a level to give it an adequate safety margin and that will enable it to consider running other hostels as and when the opportunity arises. 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 Project’s current activities while consideration is given to ways in which additional funds may be raised. The trustees have maintained the £300,000 capital building fund in order to support the proposed new building development. This level of reserves has been maintained throughout the year.
The project's primary source of income is currently Housing Benefit claimed on behalf of the client group. We are however continually looking at opportunities to diversify with other income streams whilst maintaining the overall aims and objectives of the Charity and also complying fully with RSH registration and standards.
The Charity is currently liaising with Salford City Council rough sleeper team with a view to locating sleeping pods on land owned by the Charity which is currently vacant. This would be utilised for entrenched rough sleepers with extensive needs and issues that would make it difficult to accommodate them within the main Project. This would be a useful source of future income.
Project 34 is still mindful that the Government may still at sometime in the near future look to impose restrictions on social housing funding and is therefore will continue to explore ways in which can demonstrate Value for Money.
Project 34 has also purchased a plot of land immediately adjacent to the main building with a view to immediate development. Full planning permission is now in place for 9 one bed room flats for affordable rent. This decision was made to increase the Project's operating surplus and also mitigate against any potential future funding changes. The trustees are aware that this building project will absorb some cash reserves, but do not expect this will put undue pressure on their reserves policy. Trustees are also looking to further improve upon ‘Tenants Satisfaction Measures (TSM)’ monitoring in order to ensure that they are able to demonstrate a greater transparency concerning landlord performance and are also able to inform the RSH in its efforts to improve ‘consumer standards’ nationally.
Project 34 is a company limited by guarantee, incorporated on 30 July 1999 and registered as a charity from that time. The Memorandum of Association sets out the powers and objects of the charitable company which is governed under its Articles of Association. In the event of a winding up, members have guaranteed to contribute an amount not exceeding £10.
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 Articles prescribe that these shall be a minimum of 3 and a maximum of 12 Trustees and that one third of their number shall retire at each Annual General Meeting. Only a retiring Trustee, or a person nominated by the Trustees, is eligible for election.
The trustees, networking with the local authority, the police, the probation service and other interested parties, are continuing to seek new candidates to join their ranks, and particularly, younger people with appropriate specialist knowledge. Trustee numbers and responsibility awareness will remain a key feature in the Project’s governance arrangements.
Trustee Induction and Training
The legal, financial and managerial framework, together with the obligations of a Trustee, are thoroughly explained to each candidate, before he or she accepts office. After that, the new Trustee, in the company of the very experienced hostel manager, spends time at the hostels, seeing at first hand, how operations are conducted and how the day to day problems are dealt with in order to gain a reasonable understanding of the breadth of the social business This is followed by discussions with other trustees as to the contribution the newcomer can make and how this fits into the future plans for the development of the Charity. Trustees also receive external training so as to better understand their role and responsibilities.
Risk Management
Risks, Risk Management and Stress Testing is a frequent agenda item at staff and Trustee Meetings and risks such as:
Funding- both current and future funding;
Safeguarding;
Issues affecting RSH Standards;
Business Continuity, including dealing with public health emergencies such as Covid 19;
Relevant changes in legislation and/or Salford Council policy;
Continuing to meet the National Housing Federation’s ‘Code of Governance’ (2020);
Maintaining Tennant and other Stakeholder Satisfaction.
are assessed and mitigation options considered.
A thorough assessment of the risks to which the charity is exposed, is also regularly undertaken externally by a professional risk assessment firm, covering the risks faced by the Charity, its staff and its users in all departments. Their recommendations have been implemented and risks are kept under constant review.
There have been no collections from the public and cash receipts are small, so risks to the Charity’s funds from dishonesty are minimal. With 4 trustees it has been possible to institute a simple, but robust system of internal control, as recommended by the Charity’s independent examiner.
Trustees and Senior Staff also state ‘Declarations of Interest’ at any discussion/decision making process (eg Trustee meetings)
Organisational Structure
The trustees meet formally or informally, whenever necessary, in order to manage the Charity's affairs. Administration is delegated to a full-time Project Manager (reporting to the Trustee Chairman as required) and he and his staff, look after the day to day operation of the hostel. The Trustees provide their services on a voluntary basis; the manager and other staff are paid.
The Project's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting performance.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Project 34 (the Project) for the year ended 31 October 2024.
Having satisfied myself that the financial statements of the Project are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the Project’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
Since the Project’s gross income exceeded £250,000, the independent examiner must be a member of a body listed in section 145 of the Charities Act 2011. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, 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 Project as required by section 386 of the Companies Act 2006.
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 Companies Act 2006 other than any requirement that the financial statements 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 financial statements 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.
Project 34 is a private company limited by guarantee incorporated in England and Wales. The registered office is 32-34 Weaste Road, Salford, M5 5FW.
The accounts have been prepared in accordance with the Project's governing document, 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 Project is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the Project. 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 Project 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.
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 Project 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 Project 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 Project's balance sheet when the Project 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 Project’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 Project is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
In the application of the Project’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.
Property rental costs
Council tax and insurance
Light, heat and water
Cleaning
Repairs and maintenance
Printing, postage and stationery
Telephone
Motor running expenses
Travelling expenses
Consultancy fees
Accounting and payroll services
Sundry expenses
Food
Computer running costs
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.
The Project operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Project in an independently administered fund.
These are restricted funds which are material to the Project's activities.
The unrestricted funds of the charity comprise the unexpended balances of income which are not subject to specific conditions 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.
There were no disclosable related party transactions during the year (2023 - none).
The Project had no material debt during the year.