PRIORITY YOUTH
HOUSING LIMITED
ACCOUNTS
31 MARCH 2006
PRIORITY YOUTH HOUSING LIMITED
ACCOUNTS
YEAR ENDED 31 MARCH 2006
CONTENTS PAGE
Report of the Board of Management 1
Statement of the responsibilities of the Board of Management 4
Independent Auditors’ report to the Members 5
Income and Expenditure account 7
Statement of total recognised gains and losses 7
Balance sheet 8
Notes to the financial statements 9
PRIORITY YOUTH HOUSING LIMITED
REPORT OF THE BOARD OF MANAGEMENT
FOR THE YEAR ENDED 31 MARCH 2006
The Board of Management present their report and audited financial statements for the year ended 31 March 2006.
Principal activities
The company’s principal activity during the year was to provide housing, support and other associated amenities for young persons in necessitous circumstances upon terms appropriate to their means.
Review of the year
Priority Youth Housing is not a Registered Social Landlord, however we operate in the same sector. In accordance with best practice, these accounts have been prepared to the standard required by the Housing Act 1996 and Registered Social Landlords General Determination 2000 including all the relevant disclosures required by that legislation.
In the year 2005/06 Priority continued to operate Housing and Support services, Training, Education and Employment services in South Gloucestershire and to manage supported accommodation in Bristol. During the year, Priority ceased to operate Training, Education and Employment services in Bristol, when the funding to do so was stopped.
Priority Youth Housing’s services are funded through rents and service charges, Supporting People funding, Bristol and South Gloucestershire Social Services, Connexions West of England and voluntary grants and donations. Priority also works in partnership with local Registered Social Landlords, including Solon South West, Knightstone Housing Association and Places For People, to provide 75 units of supported accommodation in shared and self contained properties.
During the year, Priority prepared for the opening of a new 25 bed young person’s project, in conjunction with Jephson Housing Association and began the recruitment of the 13 strong staff team. The start up costs of this new project were funded by Bristol City Council Neighbourhood and Housing Services and voluntary grants and donations. The project will offer a home to 25 young people aged 16 and 17, previously housed in Bed and Breakfast accommodation, enabling them to take the first step towards independence. The project opened its doors in June and is staffed 24 hours a day, 365 days a year.
Priority owns its head office premises based in Bedminster and also operates from rented office space in Patchway, Kingswood, Southmead and Withywood. This ensures that the organisation can be responsive to the needs of the communities within which it operates and provide drop in advice sessions in the local area.
In 2005/06, Priority continued to run activities funded by the Prince’s Trust, enabling young people to organise and participate in events. Private individuals and other Trust funds also donated towards the welfare fund, which is used to assist young people setting up in their own home for the first time.
Page 2
PRIORITY YOUTH HOUSING LIMITED
REPORT OF THE BOARD OF MANAGEMENT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2006
The Board of Management and Executive Officers
The Board of Management, who are all Non-Executive Officers of the company and who served throughout the year, unless otherwise stated, are listed below.
Mr Ed Plowden (left September 2005)
Mrs Maggi Pryce (left September 2005)
Mr Adam Metcalfe (left September 2005)
Mr Paul Hale (joined September 2005)
Each member of the Board held one share in the Company throughout the year.
The Executive Officers of the company hold no interest in the company’s share capital and, although they do not have the legal status of Directors, they act as Executive Officers within the authority delegated by the Board.
Page 3
REPORT OF THE BOARD OF MANAGEMENT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2006
Bankers
HSBC Bank plc
2 Cannon Street
Bedminster
Bristol
BS3 1BW
Auditors
Solomon Hare Audit LLP
Chartered Accountants
Registered Auditors
Oakfield House
Oakfield Grove
Clifton
Bristol
BS8 2BN
Secretary: Date: ………………
Page 4
PRIORITY YOUTH HOUSING LIMITED
STATEMENT OF THE RESPONSIBILITIES OF THE BOARD OF MANAGEMENT
FOR THE YEAR ENDED 31 MARCH 2006
The Industrial and Provident Societies Acts 1965 to 1978 requires the Board of Management to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company as at the financial year end and of the surplus or deficit of the company for that year. In preparing those financial statements the Board of Management is required to:
(a) select suitable accounting policies, apply them consistently and state them in the financial statements;
(b) make judgements and estimates that are reasonable and prudent;
(c) prepare the financial statements on a going concern basis, unless it is inappropriate to assume that the company will continue in business.
The Board of Management is responsible for maintaining an adequate system of internal control and keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company. The Board of Management is also responsible for ensuring that the financial statements comply with the Industrial and Provident Societies Acts 1965 to 1978. It is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The report of the Board of Management was approved on its behalf by
Secretary: ……………………….. Date:……………………….
Page 5
PRIORITY YOUTH HOUSING LIMITED
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS
YEAR ENDED 31 MARCH 2006
We have audited the financial statements on pages 7 to 15, which have been prepared under the historical cost convention and the accounting policies set out on pages 9 and 10.
This report is made solely to the company’s members, as a body, in accordance with the Industrial and Provident Societies Acts 1965 to 1978. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
RESPECTIVE RESPONSIBILITIES OF THE BOARD OF MANAGEMENT AND THE AUDITORS
As described on page 4, the Board of Management are responsible for the preparation of the financial statements in accordance with applicable law and United Kingdom Accounting Standards.
It is our responsibility to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Industrial and Provident Societies Acts 1965 to 1978. We also report to you if, in our opinion, the Board of Management report is not consistent with the financial statements, if the company has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information specified by law regarding directors’ remuneration and transactions with the company is not disclosed.
We read the Board of Management report and consider the implications for our report if we become aware of any apparent misstatements within it.
BASIS OF AUDIT OPINION
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the Board of Management in the preparation of the financial statements, and of whether the accounting policies are appropriate to the company’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.
Page 6
PRIORITY YOUTH HOUSING LIMITED
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS (CONTINUED)
YEAR ENDED 31 MARCH 2006
OPINION
In our opinion the financial statements give a true and fair view of the company’s state of affairs as at 31 March 2006 and of its surplus for the year then ended, and have been properly prepared in accordance with the Industrial and Provident Societies Acts 1965 to 1978.
Solomon Hare Audit LLP
Chartered Accountants
Registered Auditors
Oakfield House
Oakfield Grove
Clifton
Bristol
BS8 2BN Date: ………………
Page 7
PRIORITY YOUTH HOUSING LIMITED
INCOME AND EXPENDITURE ACCOUNT
YEAR ENDED 31 MARCH 2006
2006 2005
Note £ £
|
TURNOVER |
3. |
969,740 |
1,014,729 |
|
Operating costs |
3. |
(1,015,955) |
(994,085) |
|
|
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────────────── |
|||
|
OPERATING (DEFICIT)/SURPLUS |
4. |
(46,215) |
20,644 |
|
|
Interest receivable |
5. |
2,966 |
3,388 |
|
|
─────────── |
─────────── |
|||
|
(DEFICIT)/SURPLUS ON ORDINARY ACTIVITIES |
|
(43,249) |
24,032 |
|
Transfer from/(to) restricted reserves |
9,908 |
(6,374) |
||
|
Transfer to designated reserves |
29,691 |
(17,000) |
||
|
─────────── |
───────── |
|||
|
RETAINED (DEFICIT)/SURPLUS FOR THE YEAR |
(3,650) |
658 |
|
Balance brought forward |
3,650 |
2,992 |
||
|
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─────────── |
|||
|
As restated |
- |
2,992 |
||
|
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─────────── |
|||
|
Balance carried forward |
- |
3,650 |
||
|
═══════════ |
═══════════ |
|||
STATEMENT OF TOTAL RECOGNISED
GAINS AND LOSSES
|
(Deficit)/Surplus for the financial year |
(3,650) |
658 |
||
|
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─────────── |
|||
|
Total gains and losses recognised since the last annual report |
(3,650) |
658 |
||
|
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─────────── |
|||
All of the activities of the company are classed as continuing.
The notes on pages 9 to 15 form part of these accounts
Page 8
PRIORITY YOUTH HOUSING LIMITED
BALANCE SHEET
YEAR ENDED 31 MARCH 2006
2006 2005
Note £ £ £ £
FIXED ASSETS
|
Tangible fixed assets |
8. |
96,941 |
113,499 |
CURRENT ASSETS
|
Debtors |
9. |
65,073 |
65,165 |
|
|
Cash at bank and in hand |
217,402 |
220,206 |
||
|
─────────── |
─────────── |
|||
|
282,475 |
285,371 |
CREDITORS: Amounts falling due
|
Within one year |
10. |
(111,615) |
(87,273) |
||
|
─────────── |
─────────── |
||||
|
NET CURRENT ASSETS |
170,860 |
198,098 |
|||
|
─────────── |
────────── |
||||
|
TOTAL ASSETS LESS CURRENT LIABILITIES |
267,801 |
311,597 |
|||
|
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═════════ |
||||
CAPITAL AND RESERVES
|
Called-up share capital |
12. |
62 |
58 |
||
|
Revenue reserve |
13. |
- |
3,650 |
||
|
Restricted reserves: |
|||||
|
Welfare |
14. |
1,437 |
2,020 |
||
|
Residents social fund |
15. |
1,038 |
10,363 |
||
|
Designated reserves: |
|||||
|
Staffing |
16. |
67,606 |
72,136 |
||
|
Office property |
17. |
103,658 |
126,819 |
||
|
Office and IT equipment |
18. |
33,853 |
34,404 |
||
|
Future repairs and refurbishment of the office premises |
19. |
50,147 |
50,147 |
||
|
Vehicle |
20. |
10,000 |
10,000 |
||
|
Residents welfare fund |
21. |
- |
2,000 |
||
|
─────────── |
───────── |
||||
|
267,801 |
311,597 |
||||
|
═══════════ |
═════════ |
These financial statements were approved by the Board of Management on the ………………….., and are signed on its behalf by:
Chairperson Treasurer Secretary
The notes on pages 9 to 15 form part of these accounts
Page 9
PRIORITY YOUTH HOUSING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 MARCH 2006
1. LEGAL STATUS
The company is registered under the Industrial and Provident Societies Acts 1965 to 1978 number 26703R.
2. ACCOUNTING POLICIES
Basis of accounting
The accounts have been prepared under the historical cost convention, in accordance with applicable accounting standards and the Statement of Recommended Practice for Registered Housing Associations (SORP) and comply with the Accounting Requirements for Registered Social Landlords General Determination 2000.
Turnover
The turnover shown in the income and expenditure account represents rental income receivable, fees and grants from local authorities and the Supporting People funding and other income.
Depreciation
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:
Property straight line over 40 years
Improvements to property straight line over 40 years
Fixtures and fittings straight line over 15 years
Office equipment straight line over 3 years
Motor vehicles straight line over 4 years
Welfare reserve – see note 14
A welfare reserve has been established to set aside funds as assistance for tenants who move on to alternative accommodation. This money is specifically fundraised.
Residents welfare fund reserve – see notes 15 and 21
A residents social fund reserve has been established to set aside funds for residents’ social activities. This money is specifically fundraised.
Staffing reserve – see note 16
As surpluses from previous years have been accumulated partly as a result of understaffing and voluntary assistance, a staffing reserve has been set up to provide for staff cover due to long term sick leave, maternity/paternity leave, redundancies etc.
Office property reserve – see note 17
An office property reserve has been established to set aside funds for future relocation or expansion.
Office and IT equipment reserve – see note 18
An office and IT equipment reserve has been established to earmark funds for the future purchases of office and IT equipment.
Future repairs and refurbishment of the office premises reserve – see note 19
An office maintenance reserve has been established to set aside funds for the future repairs of the new office premises.
Vehicle reserve – see note 20
A vehicle reserve has been established to set a side funds for the future purchase of a new van.
Page 10
PRIORITY YOUTH HOUSING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 MARCH 2006
2. ACCOUNTING POLICIES (continued)
Cashflow statement
Under the Statement of Recommended Practice – “Accounting by Registered Housing Associations”, the company is not required to produce a cash flow statement.
Operating leases
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against income as incurred.
Pension scheme
The company operates a defined contribution pension scheme and contributes 7% of employee’s gross salary into the employee’s private personal pension fund.
Value Added Tax
The company is not registered for Value Added Tax. In these financial statements, where applicable, expenditure is shown inclusive of VAT.
Operating lease agreements
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight-line basis over the period of the lease.
3. TURNOVER, OPERATING COSTS AND OTHER OPERATING INCOME
|
[RN1] 88. |
Turnover |
Operating Costs |
Operating deficit |
|||||
Income and Expenditure |
£ |
£ |
£ |
|||||
From: Lettings |
219,211 |
(237,904) |
(18,693) |
|||||
Supporting People |
595,459 |
(614,037) |
(18,578) |
|||||
Other |
155,071 |
(164,014) |
(8,943) |
|||||
|
|
─────────── |
─────────── |
─────────── |
|||||
|
969,740 |
(1,015,955) |
(46,214) |
||||||
|
═══════════ |
═══════════ |
═══════════ |
||||||
Particulars of income andexpenditure from lettings |
||||||
Rent receivable |
231,615 |
|||||
Less: Voids |
(31,752) |
|||||
|
|
─────────── |
|||||
Net rents receivable |
199,862 |
|||||
|
|
||||||
Retained management charges |
19,349 |
|||||
|
Other income |
||||||
|
|
─────────── |
|||||
|
219,211 |
||||||
|
Expenditure on letting activity: |
||||||
|
Management costs |
(39,107) |
|||||
|
Overheads |
||||||
|
Direct costs |
(141,278) |
|||||
|
Property costs |
(42,649) |
|||||
|
Increase in bad debts |
(7,004) |
|||||
|
Bad debts |
(7,866) |
|||||
|
|
─────────── |
|||||
|
Total expenditure on lettings |
(237,904) |
|||||
|
─────────── |
||||||
Operating (deficit) on letting activity |
(18,693) |
|||||
|
═══════════ |
||||||
Page 11
PRIORITY YOUTH HOUSING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 MARCH 2006
3. TURNOVER, OPERATING COSTS AND OTHER OPERATING INCOME (cont.)
|
Particulars of income and expenditure from supporting people |
|||||||
|
|
|||||||
|
BCC Dispersed Property |
329,659 |
||||||
|
BCC Floating Support |
81,708 |
||||||
|
SGC Floating Support |
184,092 |
||||||
|
|
─────────── |
||||||
|
Total income from Supporting People |
595,459 |
||||||
|
Total expenditure on Supporting People |
(614,037) |
||||||
|
═══════════ |
|||||||
Operating (deficit) on supporting people |
(18,578) |
||||||
|
═══════════ |
|||||||
4. OPERATING SURPLUS
2006 2005
£ £
This is arrived at after charging:
|
Depreciation |
16,559 |
17,397 |
|
|
Auditors remuneration |
2,300 |
2,300 |
|
|
Bad debts |
15,299 |
12,045 |
|
|
═════════ |
═════════ |
5. INTEREST RECEIVABLE
2006 2005
£ £
|
Bank interest receivable |
2,966 |
3,337 |
|
|
Interest received on Inland Revenue repayment |
- |
51 |
|
|
───────── |
───────── |
||
|
2,966 |
3,388 |
||
|
═════════ |
════════ |
6. TAXATION
The company has charitable status for tax purposes and no liability to Corporation Tax arises.
PRIORITY YOUTH HOUSING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 MARCH 2006
7. EMPLOYEES
2006 2005
Average number of employees:
|
Administration |
4 |
3 |
|
|
Housing |
8 |
8 |
|
|
Non – housing |
14 |
13 |
|
|
───── |
───── |
||
|
26 |
24 |
||
|
═════ |
═════ |
2006 2005
Staff costs: £ £
|
Wages and salaries |
557,234 |
548,205 |
|
|
Social security costs |
52,303 |
53,607 |
|
|
Pension costs |
34,890 |
34,311 |
|
|
───────── |
───────── |
||
|
644,427 |
636,123 |
||
|
═════════ |
═════════ |
No emoluments were paid to members of the Board of Management during the current or previous year, and no other expenses were paid.
8. [RN2] 88. TANGIBLE FIXED ASSETS
|
Office premises |
Improve-ments to office |
Office equipment |
Motor Vehicles |
Fixtures & fittings |
Total |
||
|
£ |
£ |
£ |
£ |
£ |
£ |
||
|
COST At 1 April 2005 and 31 March 2006 |
45,180 |
50,274 |
43,977 |
11,695 |
32,789 |
||