The trustees present their annual report and financial statements for the year ended 31 March 2025.
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 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) (effective 1 January 2019)".
Chester Aid to the Homeless (CATH) primarily exists to meet the needs of homeless people in Chester and the
surrounding area. It is a well-established service provider of day services and supported accommodation; the charity works with other partner agencies to ensure the best available service options for individuals.
The charity works with individuals to achieve stability and to progress accommodation options. CATH structures client support plans that encourage positive outcomes, improve circumstances and thereby increasing pathway opportunities to success.
Staff engage with clients to increase self–esteem including individual and group sessions which form the basis of
development programmes. A continued focus on trauma informed practice also underpins the programmes giving clients an opportunity to begin to deal with their individual circumstances and improve their outcomes to work towards achieving a more settled future. Improved access to counselling and mental health provision has helped with this aim.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding the activities that should be undertaken as part of the service model.
Chester Aid to the Homeless is the longest established homeless charity in Chester that also serves the surrounding area. This year the importance of the role that the charity plays has been obvious in the increase in service demand and the modern-day presenting issues of homelessness have now changed. Homelessness is no longer just about people in temporary accommodation, ‘sofa-surfing ‘or ‘rough sleeping’; the cost-of-living crisis combined with the housing crisis has meant that we are regularly supporting people in accommodation. In short, if you were struggling to make ends meet before COVID, financial conditions and housing options are definitely more challenging now. This has meant that from a very human perspective the accessibility and in-person support that the CATH team provides has been more needed than ever before.
Our face-to-face, group and partnership work are all in place for the benefit of the individuals who look to access our day services and our managed accommodation with support. This in-person delivery has been particularly important for individuals who are new to homelessness and are trying to navigate and cope with their changing circumstances and also for individuals that need a high level of support. In a world of telephone options, email and electronic referrals; being able to speak to someone about your issues is key to beginning to gain some stability and progress.
With the increase in service demand and a broader range of people looking to access our services we have had to increase our capacity by strengthening our working partnerships. The General Practice health provision provided by St Werburghs that has been in place since The Harold Tomlins Centre opened in September 2001 has continued and been further supplemented with Mental Health support and access to counselling. This access to health provision has been invaluable as financial and housing insecurity are in themselves drivers for poor physical and mental health and health and safeguarding concerns have made up a big proportion of our support workload.
Partnership work with Spider Work Café 71, that provides additional resource for people struggling with emotional and psychological distress has been critical to manage the load and a joint art therapy session allows people a safe space to deal with issues. Likewise, Soul Kitchen that runs catering sessions provides people with a place to learn new skills, be social and feel that they can contribute in a meaningful way has led to them setting up ‘Sunset Café’ a working kitchen and café open to the public. These initiatives provide individuals who access homeless services a real opportunity and place of change and show the strength of partnership working to mitigate the factors driving the increase in people accessing our services.
Noting the examples above CATH has again had to adapt to all these changes in demand while managing the increasing operating costs to every aspect of providing services. Maintaining service delivery has again been achieved by making the most of every relationship we have with charitable and statutory services and The Harold Tomlins Centre continues to be used by most services as a hub to meet and work with individuals.
As stated in the previous years’ accounts CATH has become a well-established ‘community resource’, not just in terms of longevity, but as a place that a broader group than ever before are accessing to find their way. This ‘community resource’ aspect of our service is reflected in the continued support that CATH benefits from local individuals, community groups and the wider business community and despite the on-going financial pressures donations for the reporting year remained extraordinarily generous at £113,726.
Financial support for CATH’s work for the homeless continued to benefit from public and corporate donations, totalling £113,726 for 2024-25, an increase of £21,977 from 2023-24, which noting the economic climate is a very tangible show of support for CATH.
The Aviva investment holding at the start of the year was £234,479 and at the year-end was £242,402. This continues to be held in a portfolio managed by an Aviva Platform, the oversight of it by an investment is with Ludlow Wealth Management. The portfolio held is low risk but has been impacted by economic instability
.
The 2024-25 financial year resulted in a surplus of £24,807 (2023-24, deficit of £22,152) bringing reserves to £650,101 at 31 March 2025. The main driver from the previous year’s deficit to a surplus position was the ending of local authority policy where people were temporarily accommodated due to COVID 19 public health emergency and
the general increase in demand for supported and managed accommodation in this reporting year.
The Board decision regarding the unrestricted reserves policy remains that we should ideally hold a minimum of 75% of an average one year’s operating costs in reserve amounting to £306,296 in 2024-25.
The aim is to maintain a suitable level of reserves consistent with the ongoing activities of the charity, such that negative fluctuations in funding do not have an immediate adverse impact on clients or staff. In addition, reserves are provided to make good any deficits arising from duly authorised projects.
The unrestricted reserves of £650,101 as at 31 March 2025 represents approximately two years of current expenditure of the charity.
Designated funds
Brief details of the charity's designated funds are as follows:
Care and Development Fund
This is the principal reserve fund for supporting the ongoing general activities of CATH.
IT/IS Fund
A fund to ensure that CATH can obtain and run efficient and effective administration processes as required by the regulatory authorities and to the ultimate benefit of the client group.
Contents Replacement Reserve
The nature of the CATH services and client groups results in a short life and heavy utilisation of furniture and effects in the hostels, houses and the Harold Tomlins Centre. This reserve facilitates replacement of this equipment to maintain an adequate, if basic, standard of accommodation.
Redundancy Reserve
With no guarantee of ongoing funding for some of the activities of CATH this reserve is necessary to protect the interests of staff in the event of redundancies.
Development Fund
The fund permits the expansion of CATH activities where consistent with the aims of the charity.
Dilapidations Reserve
CATH does not own any of the properties it uses. This fund is necessary to provide any dilapidation payments that may arise for which CATH is responsible under the terms of the lease should buildings be returned to the landlords. There was no spend from this fund during 2024-25 (2023-24 - no spend).
Legacies Fund
There is currently one potential legacy which is long-standing and showing no signs of producing further income. The legacy fund is therefore reduced to a more realistic value and the balance added to the new property purchase fund.
Buildings Reserve
As all of the buildings occupied by CATH are relatively old this fund is necessary to provide for any costs that may arise in connection with any significant repairs maintenance or upgrading of the buildings or their facilities for which CATH is responsible under the terms of the lease.
During 2024-25 all repairs were funded from general reserves.
Contingency Reserve
A reserve fund for unexpected events or other adverse financial situations.
New Property Purchase Fund
This fund is being created to enable the Charity to purchase a house designated as a “house in multiple occupation”. Until now all our properties have been rented from landlords, which has been a very beneficial model over the years, but the Board believes it would be prudent to have at least one property owned outright when market conditions for purchase are more favourable in the future.
Cash reserves are held in in a portfolio with Aviva Platform plus a current account with Lloyds Bank and a charity account with Virgin Money. The investment funds can be made available within a short lead time should the need arise.
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.
With the advent of COVID 19 the onset of another exceptional disruption cannot be ruled out. The charity is well placed with sufficient reserves but has reviewed its working practices and outlined a business contingency plan to offset any possible future negative impact. The trustees will monitor and review any other factors as they arise.
Our previous year had a focus on health and access to housing and it was right that those two aspects were front and centre as they dominated the workload of the charity for the year especially with the rise of health and safeguarding issues. However, with a backdrop of increasing service demand and resources that have limits it is clear that the modern day presenting of homelessness require local collaboration and partnership working on a bigger scale than ever before.
CATH will continue to provide essential services such as access to health, information, advice and guidance, accommodation options, food, clothing, laundry and showers, but we need to work together to solve the
individual and complex issues that cause homelessness and improve accommodation and support options.
We will work with statutory and non-statutory partners to influence service design so that individuals can access more intensive support and a route to progress can be encouraged and supported. The Café 71: Art Group and Soul Kitchen: Sunset Café are working examples of projects changing how people feel about themselves and improving their options. CATH will look to promote engagement from both the local and wider community for the benefit of the individual and the City and surrounding area as a whole.
The challenge for CATH is in an environment where service-demand is rising and related services are at capacity is about managing costs whilst continuing to provide the support and service required. We will focus on expanding and utilising our volunteer base and to work with other groups to increase capacity and manage costs.
We will continue to work with Cheshire West and Cheshire Council and look to gain bids or funding to support projects and initiatives that help individuals and benefit the wider community.
We have gone some way to utilise social media to highlight issues and gain support, but work is still to be completed on Website and widening individual and local business support.
The Harold Tomlins Centre is due to mark its 25th anniversary in 2026 since being opened by the Duke of Westminster in September 2001 and we will use the opportunity to strengthen our relationships and our place as a community resource.
Our current Chair, Mr Neil Wallace is stepping down in a planned way September 2025 and the new CATH Chair of Trustees and the Board as a whole will take the opportunity to review the CATH strategy.
CATH will continue to provide day services and accommodation with support that aligns with the emerging changes in homelessness. This individual and responsive approach has its origin in 1972 when CATH was first established and the Charity will continue to provide a key role in helping people to help themselves.
The charity is a company limited by guarantee, incorporated on the 21 December 1998 and is therefore governed by a Memorandum and Articles of Association.
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:
CATH endeavours to ensure that the board has a wide range of skills and experience such as finance, human resources, fundraising etc and considers this prior to appointing new trustees.
The trustees are collectively responsible for the governance of the organisation. The CEO reports directly to the chair at monthly supervision sessions and to the full Board of Trustees at quarterly meetings. Additionally, the Board of Trustees hold strategic planning away days which all trustees attend. A strong commitment prevails in respect of the trustee development programme which manifests itself through training in areas such as trustee responsibilities, internal audit, information security and any other topical areas of governance.
The CEO works with one service manager to deliver services and accommodation with support. Continuous improvement of service delivery remains key to CATH’s success. The operational teams work to outcome measures to ensure the economy, efficiency and effectiveness of service. Performance indicators, client feedback mechanisms and peer-to-peer review ensure true client engagement remains a priority.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The remuneration of key management personnel is determined annually by the trustees. Traditionally the level of remuneration has been determined by reference to the annually revised pay scales of the union Unison for workers in similar positions to CATH's employees. For the last few years the trustees have considered key economic indicators such as performance of RPI and average level of pay increases in the previous 12 months.
The trustees' report was approved by the Board of Trustees.
The trustees, who are also the directors of Chester Aid To The Homeless 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 Chester Aid To The Homeless (the charity) for the year ended 31 March 2025.
Having satisfied myself that the financial statements of the charity 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 charity’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 charity’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 Institute of Chartered Accountants in England and Wales (ICAEW), 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 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.
Chester Aid To The Homeless is a private company limited by guarantee incorporated in England and Wales. The registered office is The Bluecoat, Upper Northgate Street, Chester, CH1 4EE.
The financial statements have been prepared in accordance with the charity'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) (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 accounts have been prepared on the historical cost convention, modified to include 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.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors 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.
Expenditure is recognised when a liability is incurred.
Charitable activities include expenditure associated with the operation and managed residential accommodation and welfare support services.
Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources.
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.
Capital expenditure that does not in reality produce a saleable asset or an increase in value of an existing asset will be written off totally in the year the expenditure is incurred.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Defined contribution pension scheme
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Governance costs includes payments to the auditors of £nil (2024 - £nil) for audit fees.
The average monthly number of employees during the year was:
The remuneration of key management personnel was as follows:
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
The leasehold property recognised at £1 in the accounts relates to Crispin House, 56 Nicholas Street, Chester. This was bought and refurbished with the help of a grant of £139,000 from the Resettlement Agency. Certain covenants and restrictions were imposed and in particular, the grant will be repayable should the usage of the building be other than for the existing resettlement activities. In addition, the Resettlement Agency has a first charge over the property.
The historical cost of the investments was £199,000 (2024 - £199,000) and all investments are measured at the traded market value at the year end.
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purpose:
Legacies
The charity is a co-beneficiary of some land in Cheshire. This has not been included in the financial statements as no notification of further distribution has been received. The charity does not yet have a reliable estimate of the value of the legacy. Costs associated with bringing the legacy income to fruition are allocated to a designated fund (see note 18) as they fall due.
There were no disclosable related party transactions during the year (2024 - none).