Report and accounts 2004–05 - Shelter Scotland...business risk in both the short term, as the organisation continues to grow, and in the medium term, owing to increasing competition

Report and accounts 2004–05

ContentsReport of the Trustees 4Governance and internal control 9Independent Auditors’ Report 14Consolidated statement of financial 16activitiesBalance sheets 17Consolidated cash flow statement 18Notes to the financial statements 19Thanks from Shelter 32Legal and administrative information 33

Report and accounts 2004–05

4 Shelter report and accounts 2004–05

Report of the Trustees for the year ended 31 March 2005

also work in conjunction with the housing sector, to promote good practice, publish reports, and provide professional training.

Review of activities and future developmentsThe Consolidated statement of financial activities for the year is set out on page 16 of the financial statements. Shelter recorded a surplus of just under £2.8 million in the 2004–05 financial year. This has enabled us to increase our reserve levels to meet greater perceived business risk in both the short term, as the organisation continues to grow, and in the medium term, owing to increasing competition in both the voluntary and statutorily funded sectors. Alongside this, we had an excellent year for legacy donations and a designated reserve has been established to spend £1 million on strategic opportunities to further the impact of our work in the short term. A summary of the work of the charity is set out in the following pages.

The Trustees, who are also directors of the charity for the purposes of the Companies Act, submit their annual report and the financial statements for the year ended 31 March 2005. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities’ issued in October 2000 in preparing the annual report and financial statements of the charity. The company is a charitable company limited by guarantee and was set up in 1966.

Shelter believes that everyone should have a home. We help people find and keep a home. We campaign for decent housing for all. We help 100,000 people in housing

need each year, through our Housing Aid Centres and practical projects, and via our free housing advice helpline and website.

We campaign for new laws and policies – as well as more investment – to improve the lives of homeless and badly housed people, now and in the future.

We develop practical solutions to address the housing crisis. We

Adam Sampson’s reportThe old Chinese curse ‘May you live in interesting times’ has now perhaps become something of a cliché. But what I have never really understood is why interesting times were to be seen as a curse. For a campaigner, the enemy to be feared is not public interest in an issue but its opposite: public apathy. It has been the public’s blindness to the housing crisis and its social, economic and above all, human costs with which Shelter has been grappling for many years.

But there are signs that public and political interest in housing is now growing. Sadly, this is often for reasons that are largely driven by self interest; the seemingly inexorable rise in house prices is now excluding an increasing number of people from accessing the wealth that comes from home-ownership. But increasingly, too, there is an awareness that the impact of the housing crisis is greatest on those at the bottom of the housing ladder: the millions of people who are living in overcrowded, insanitary or unsuitable housing, or are unable to find a home at all.

The growth in public and political interest over the past 12 months – partly

Shelter report and accounts 2004–05 5

fuelled by the success of our own million children campaign – has given Shelter some huge opportunities; opportunities that we have been only too happy to seize. Our policy and campaign work has shown significant success, helping to shape the recommendations of the ground-breaking Barker Review of Housing Supply and win a 50 per cent increase in the number of social homes to be built, and forcing through key changes to the Housing Act 2004 in England. Our services continued to increase in coverage and quality; today in Shelter we are helping more people in housing need than ever before.

But more still needs to be done. We know that we can be even more successful, even more effective in achieving what we need to achieve. Like the institutions whose work we scrutinise, we need to be self-critical and strive for improvement. Over the past year, we have continued examining our own practice and have driven through new changes to equip us to have even more impact in the future than we have had in the past. To be anything less than the best we can be would be to betray the people who so desperately need our help.

Campaigns and Policy2004–05 was a year of enormous activity, with campaigns and policy helping to deliver major advances towards Shelter’s strategic goals.

Shelter was the most influential group lobbying on the 2004 Housing Act in England, implementing our longstanding campaign aim of introducing a licensing scheme for Houses in Multiple Occupation. Following successful Shelter lobbying, the Act now introduces a national tenancy deposit scheme and also includes a power to change the overcrowding standard.

We also secured a number of other significant amendments to the Bill during its passage through Parliament, and were part of the successful campaigns to include stronger powers to tackle empty homes and secure new rights for Gypsies and travellers.

Our good-practice work with young people and street homelessness led to a series of good-practice guides plus reports, educational resources, training packages and seminars for professionals working in these fields.

Following concerted Shelter advocacy

and media coverage, a new target to halve the number of homeless households in temporary accommodation was included in the Office of the Deputy Prime Minister’s (ODPM’s) Five Year Plan in January 2005. We also played a significant role in shaping the ODPM Select Committee Report in January, which strongly endorsed many of Shelter’s recommendations for action in giving the Government a strong message that it needs to do more to tackle homelessness and provide more social housing.

Publicly, our presence and influence are also growing. The launch of our million children campaign in April 2004 represented a highly ambitious cross-organisational, pan-British drive to increase and mobilise public concern about bad housing. Our aims are to secure a firm commitment from government to end bad housing for the next generation of children, to build an active public support base, and to advance policy changes. In this first year we have recruited more than 40,000 campaigners, run a high-profile press and billboard advertising campaign, and completed a major national investigation


into the housing crisis, generating widespread media coverage.

ServicesThis year, we have expanded and developed our services for homeless and badly housed people, particularly in the areas of housing advice, tenancy sustainment and specialist support. Our free housing advice telephone helpline is the first point of call for thousands of people seeking our help each month, and we have reorganised this service to better meet the high demand for telephone advice. Our tenancy sustainment services have continued to grow, helping more previously homeless families to settle successfully into their new homes and avoid the cycle of repeat homelessness. Antisocial behaviour has become a focus of our work, with our Inclusion Project in Rochdale receiving an endorsement from Parliament and providing a good-practice example for similar services setting up across the country.

We have also increased our work with offenders and ex-offenders. Some projects help prison staff offer housing advice; others work with prisoners to

improve their housing prospects and increase their chances of integration. We also advise prisoners’ families.

We are very grateful for funding from the Vodafone (UK) Foundation, which has allowed us to start work using technology to reach young people, providing them with the advice and support they need to prevent homelessness or tackle it quickly if it does occur. We have improved and developed the advice content on our website and begun offering services via email and mobile phone.

FundraisingDonations from the general public form the bedrock of Shelter’s income. More than 116,000 people now support us with a regular gift, donating just under £9 million before Gift Aid per annum. Shelter remained one of the top 10 most supported charities through Payroll Giving, and we also received over £3 million from gifts in Wills.

Trusts and Foundations continued to provide generous backing for some of Shelter’s most innovative work. Trusts such as the Tudor Trust, Bridge House Trust, Henry Smith Charity, and

Northern Rock Foundation supported projects working with some of Shelter’s most disadvantaged clients, including ex-offenders, older people, and those from black and minority ethnic (BME) communities. Shelter’s Ricochet Project, working with young people at risk of homelessness, was supported by the Big Lottery Fund.

The Vodafone (UK) Foundation is working with us to develop Shelter Networks, an important initiative to utilise web and mobile technology to provide information services for young people. The Royal Institute of British Architects and the Royal Incorporation of Architects in Scotland continue their loyal support and raised vital funds through the Architect in the House promotion. Bradford & Bingley continue to sponsor our free housing advice helpline that provides much-needed information and support every day of the year. We should also like to thank BM Solutions as a key corporate supporter and look forward to the prospect of establishing a close relationship with them.

A major success this year was winning the staff and member vote to be the


adopted charity for The Co-operative Group. Our biggest employee-focused partnership to date, it has huge potential to add benefits across Shelter and aims to raise £1 million during 2005–06.

Shelter has continued to benefit from the support of schools, universities, churches and other community organisations across the UK. Their imagination, energy and enthusiasm have raised significant sums to support our vital work.

The Charity of the Year partnership with Marsh raised £250,000 over 18 months and came to an auspicious close with a Summer Ball at the Hurlingham Club attended by a raft of high-profile business leaders, celebrities and Shelter supporters.

Shelter fielded 423 runners in the 2005 Flora London Marathon and more than £600,000 was raised (which will be reflected in the 2005–06 accounts).

ScotlandThe Homelessness etc (Scotland) Act 2003 continues to have an impact on Shelter’s work in Scotland. This landmark piece of legislation, which

In independent research, MSPs ranked Shelter as one of Scotland’s three most effective campaigning charities.

Shelter Scotland continued to develop its capacity as a leading provider of training for the housing and homelessness sector. In particular, the capacity in distance learning options has been expanded to meet increasing demand and this will be further enhanced through the creation of e-learning options.

The Housing Aid Centre in Glasgow has successfully negotiated the development of a dedicated advocacy post with North Lanarkshire Council and two additional Housing Aid posts with the Council in Glasgow. Together, these will significantly enhance the level and range of advice services in areas of particular need and demand. In the Families Support Project in Glasgow, additional financial support has been secured from the local authority to create a post dedicated to addressing the educational problems affecting homeless children.

A major opportunity to pilot models of housing support for families in rural areas has been created through support provided by the Robertson Trust. Initially,

Shelter influenced heavily, sets out an ambitious set of reforms on homelessness that impacts on both our services and campaigns.

During the year we had important policy wins on ending the use of bed and breakfast hotels for homeless children and on improving rights for people in hostels. We also lobbied the Government on the need for better emergency accommodation for homeless people.

We were very active in campaigning on the Anti-social Behaviour Bill and in the detailed discussions and preparation for a Bill on private sector housing in Scotland.

The million children campaign had a significant impact in Scotland as well, with over 4,000 supporters recruited over the year. Highlights included welcoming Members of the Scottish Parliament (MSPs) to the new Scottish Parliament building, with packs and a very well attended event; a whole series of events using Shelter’s red chair, and an eye-opening event involving an external panel of experts, which focused on housing inequality in Edinburgh and was published as Shelter’s investigation report Generation squalor.


this will be focused on the expansion of the Single Persons’ Support Project in Dumfries and Galloway, to enable support to include homeless families.

This has been a particularly exciting year for the Information Team in Scotland, with the launch of Legal as a web-based facility, and major progress in the development of the Scottish content for web advice.

RetailShelter’s nationwide chain of shops embarked on a major refurbishment programme as part of the charity’s repositioning campaign. The new corporate identity was adapted to a retail environment. Layouts were redesigned to attract as diverse a range of customers as possible with special emphasis given to the communication of Shelter messages and raising awareness. Over 30 refits were completed and the resultant sales growth was significant. We also had some notable success with our first dedicated bookshop offering.

Difficulties in high street sales were widely reported last year and post-Christmas income was disappointing

in the shops that were not selected for refits, with lost income falling through to bottom line profits. We will be building on the success of our refit work this year by completing further refits in 2005–06. In addition, we continued our strategy to reduce the number of less profitable shops, closing seven stores over the period.

Despite the reduction in the number of shops in the portfolio, retail sales rose to record levels of just under £7 million. Net profits (before recharges), having funded significant refit activity, were just under £790,000.

None of our achievements would have been possible without the support and dedication of our excellent team of volunteers and staff.

Thousands of individuals and businesses supported Shelter by purchasing cards and gifts. These were available from our shops and mail-order catalogues, as well as from hundreds of other retail outlets and catalogues. Thanks are also due to the companies that we worked with during the year, particularly card suppliers who supported Shelter through sales of their charity cards.

TrainingShelter Training provides a training service to people working in the housing sector and related fields, to support their development and improve their understanding of housing issues. Our courses cover areas such as housing- and homelessness-related law and skills-based training. All training offered is available to Shelter staff, and all profits help to fund Shelter’s work.

In 2004–05 we ran over 950 training days and trained around 11,500 delegates. These courses were run in London, at two regional venues and at clients’ premises across the UK. We continued the programme of ‘breakfast’ seminars launched last year, and added a number of early evening events. We also ran a successful conference, in partnership with the project ‘Sexuality and Housing’, which was being run by Shelter. Our courses continue to be up to date, relevant, and cost-effective, and we are proud of our increasing numbers of regular customers and client organisations.


Governance and internal control

Board of Trustees The Board of Trustees has overall responsibility for the direction, management and control of Shelter. As discussed below, some of these responsibilities are delegated under formal terms of reference to sub-committees of the Board.

Applications for Board membership are invited by external advertisement. Applicants are interviewed by a panel comprising members of the Board and the Senior Management Team and are appointed according to relevant skills and experience. The Chair serves a three-year period and may be re-elected for a further three years. The Board of Trustees meet seven times a year, including one residential meeting.

As corporate governance guidance continues to develop, the Trustees are continuing to review the policies regarding Board membership, composition, effectiveness and the overall terms of reference. The Trustees aim to ensure that, while most governance guidance is aimed at corporates, they are applying

best practice and complying with the Charity Commission’s own guidelines.

CommitteesThe Finance Committee, which usually meets seven times a year, the Audit Committee, which usually meets four times a year, and the Scottish Advisory Committee, which meets four times a year, are made up of Trustees and other individuals with relevant skills and experience. All three committees operate under specific terms of reference, which delegate certain functions from the Board of Trustees. Each committee has its decisions ratified by the Board. Both external and internal auditors also attend the Audit Committee.

Trustees’ responsibilitiesUK company and charity law requires the Trustees to prepare annual financial statements that give a true and fair view of the state of affairs of the group and of the surplus of the group for that period. In preparing those financial statements, the Trustees have: selected suitable accounting policies

and then applied them consistently

made judgements and estimates that are reasonable and prudent

stated that applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements

prepared the financial statements on the going concern basis.

The Trustees are responsible for keeping proper accounting records which disclose, with reasonable accuracy at any time, the financial position of the group, and enable them to ensure that the financial statements comply with the Companies Act 1985. They are also responsible for safeguarding the assets of the group and, hence, for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Risk management and internal controlThe Trustees have overall responsibility for ensuring that the organisation operates an appropriate system of controls, financial and otherwise, to provide reasonable assurance that: the charity is operating efficiently

and effectively


its assets are safeguarded against unauthorised use or disposal

proper records are maintained and financial information, used within the charity or for publication, is reliable

the charity complies with relevant laws and regulations.

The Audit Committee, on behalf of the Trustees, is responsible for reporting to the Trustees on the effectiveness of the internal controls. This is achieved through: reviewing and approving the

annual audit plan, considering and approving the areas of the organisation that are subject to review, approving the scope of such reviews, considering any findings that arise and agreeing changes to audit plans to take account of emerging risks and new areas of business

reviewing the nature and scope of the external audit, and any matters raised for the attention of management. Any significant findings or identified risks are examined so that appropriate action can be taken.

The systems of financial control are

designed to provide reasonable, but not absolute, assurance against material misstatement or loss. The Finance Committee reviews such systems. They include: a rolling three-year strategic plan and

cash flow a business plan and annual budget regular consideration by the Trustees of

actual results compared with budgets, forecasts and trends, cash flow and reserve levels

formal delegation of authority to spend within clearly defined limits as part of detailed financial regulations and procedures

regular review of the system of financial procedures and regulations

segregation of duties identification and management of risks.

While the guidance contained within the Combined Code on Corporate Governance is not mandatory for Shelter, the Trustees believe that the organisation should, as a public-interest body, adopt these guidelines as best practice.

The Trustees monitor risk through a formal risk management process,

which assesses risks and implements risk-management strategies. As part of this process the Trustees have instituted policies on internal controls, which cover: identification of the risks Shelter faces the level of risks regarded as acceptable the likelihood of these risks

materialising Shelter’s ability to reduce the incidence

and impact on the organisation of the risks that do materialise through the level of reserves held.

These policies have also clarified the responsibility of management to implement the Trustees’ policies and to identify and evaluate risks for their consideration.

Risk-management systems are absorbed into the organisation’s daily operations, ensuring that they become part of Shelter’s culture through regular discussion by the Senior Management Team.

In addition: Staff are encouraged to develop

their understanding of and their responsibility for internal control in relation to achieving Shelter’s aims and objectives.


Systems, such as the involvement of managers in the reporting process, have been developed to respond quickly to new and evolving risks that Shelter may face from internal factors and changes in the external environment.

Procedures to report control failings immediately to management and the Trustees are now reviewed annually to ensure that new or changed risks are dealt with effectively, together with details of corrective action being undertaken.

The Board of Trustees is satisfied that Shelter’s internal financial controls comply with guidelines issued by the Charity Commission.

EmployeesShelter continues to be committed to employing skilled people and ensuring their development through a wide range of initiatives. This year, we have spearheaded a management change programme that has included training, the establishment of Management Action Learning Sets and coaching skills. We have introduced

a competency framework for all staff to promote and ensure high performance. And, Shelter was listed as number 38 in the 2004 Financial Times annual survey of the Top 100 companies to work for.

In 2004 we launched a Diversity Strategy for the organisation, which saw the introduction of further training for all staff, Learning Sets to embed action, a community profiling exercise and the establishment of a BME project in London. We continue to provide a flexible working package for all staff and to challenge all forms of discrimination.

Applications for employment from disabled people are always considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment with the group continues and that appropriate support and training are arranged. It is the policy of Shelter that the training, career development and promotion of disabled people should, as far as is possible, be identical to that of other employees.

VolunteersThroughout Shelter, volunteers are contributing their time and enthusiasm in very real and practical ways, making a positive difference to the lives of homeless and badly housed people, while also developing their own skills and enjoying themselves.

Shelter embraces volunteer support in our shops (where there are currently more than 700 volunteers and scheme-based staff), at our Homeless to Home projects, in our Housing Aid Centres and at our head offices. Volunteers might be serving the public in a Shelter shop, helping a newly rehoused family with some decorating or gardening, or offering casework or administrative support.

Shelter has a volunteer manual on good practice, which sets out our policies and procedures and contains an action toolkit, and we have developed a training package for volunteer housing advisers. We also recruit many hard-working, committed and enthusiastic volunteers who work in a wide variety of roles throughout the organisation.

Information for potential volunteers is now available through our Customer


Services Helpline or via Shelter’s website, where volunteer task descriptions can be downloaded and online application forms filled in.

GrantsShelter awards grants to organisations engaged in activities that promote Shelter’s charitable objectives. These grants are made on an annual basis and are monitored closely against conditions specified at the time of the initial award. All grants are evaluated annually by Shelter’s Senior Management Team to ensure activities continue to share Shelter’s aims and objectives and meet Shelter’s value-for-money targets. In the last year, Shelter awarded grants to a total value of £542,000 (2003–04: £624,000). Details of grants awarded during the year are given in Note 10 to the financial statements.

InvestmentsShelter invests in Common Investment Funds (CIFs), specialised unit trusts that are regulated and monitored by the Charity Commission and benefit from charitable tax exemptions. These funds enable Shelter to take full advantage of

economies of scale and opportunities for diversification by essentially ‘pooling’ our investments with other charities. Shelter invests in both equity growth and bond income CIFs in a ratio not exceeding 70:30. The ratio as at 31 March 2005 was 66:34 (63:37: 31 March 2004). During the year, the value of our funds increased by £116,000, from £1,540,000 to £1,656,000. Shelter’s Memorandum and Articles of Association permit investment in CIFs, and the Board of Trustees regularly reviews the performance of these funds against comparative CIFs and the stock market in general.

ReservesThe aim of Shelter’s reserves policy is to ensure that its ongoing and future activities are reasonably protected from unexpected variances in income and expenditure, because around two thirds of Shelter’s income comes from donations, which are potentially volatile. This needs to be balanced against spending on our campaigns and our services to those in housing need. Our strategy over the last few years has been to increase reserve levels to mitigate the

increasing risks of a growing business, as well as building up funds for investment and to provide stability for challenges likely to be experienced in the medium term, as the sector experiences more competition for funds both in voluntary and statutory income.

The Board regularly reviews the level of unrestricted reserves and performs a full review of reserve levels annually. The latest review considers the financial risks associated with different income streams, expenditure categories and balance sheet items, together with Shelter’s ability to meet them from realisable funds.

Unrestricted reserves comprise both designated funds and general funds, as disclosed in Note 25, and free reserves are those general and designated funds not held as fixed assets. The last Board review concluded that we should aim to have free reserves of about £5.1 million.

During 2004–05, total funds increased by just under £2.8 million in the light of this objective but also as a result of exceptional fundraising performance, with a significant increase in the amount raised from legacies, as well as a number of savings made across the organisation


reducing costs. This has meant that free reserves have reached £6.8 million.

The target for the 2005–06 financial year will be to achieve a small operating surplus alongside investing these surplus reserves into strategically important areas of our business to improve the effectiveness of our services and campaigning. Therefore, a £1 million strategic investment fund has been set up during the year within designated funds.

Designated funds of £5.4 million are withheld by the Trustees to mitigate specific business risks, develop new solutions, guarantee Shelter’s ongoing support of projects and recognise its continued need to finance its day-to-day operations. Designated funds are included in the free reserves (above) where they are not held as fixed assets.

Restricted reserves must be spent as specified by the donors. They include the Vodafone (UK) Foundation-funded Shelter Networks Project and Shelter’s Big Lottery Fund-funded projects as well as some funding towards the Families Projects in Scotland. A full list of restricted funds can be found in Note 25 to the financial statements.

As a charitable company limited by guarantee, no dividends are paid.

AuditorsA resolution will be proposed at the Annual General Meeting to re-appoint Deloitte & Touche LLP as auditors to the group for the ensuing year.

Signed on behalf of the Board:

Professor Peter Robson, Chair of the Board of Trustees22 August 2005


We have audited the financial statements of Shelter, the National Campaign for Homeless People Limited for the year ended 31 March 2005 which comprise the Consolidated statement of financial activities, the Balance sheets, the Consolidated cash flow statement and the related Notes 1 to 32, which have been prepared under the accounting policies set out therein.

This report is made solely to the charitable company’s members, as a body, in accordance with section 235 of the Companies Act 1985. 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 auditors’ report and for no other purpose. To the fullest extent

accordance with relevant United Kingdom legal and regulatory requirements and auditing standards.

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 Companies Act 1985. We also report if, in our opinion, the Trustees’ report is not consistent with the financial statements, if the charitable 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 Trustees’ remuneration and transactions with the company and other members of the group is not disclosed.

We read the Trustees’ report and

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 Trustees and AuditorsAs described in the statement of Trustees’ responsibilities, the Trustees, who are also the directors of the charitable company for the purposes of company law, are responsible for the preparation of financial statements, which are required to be prepared in accordance with applicable United Kingdom law and accounting standards. Our responsibility is to audit the financial statements in

Independent Auditors’ Report to the members of Shelter, The National Campaign for Homeless People Limited


other information contained within the annual report as described in the contents section for the above year and consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial statements.

Basis of opinionWe conducted our audit in accordance with United Kingdom auditing standards issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and estimates and judgements made by the Trustees in the preparation of the financial statements and of whether the accounting policies are appropriate to the circumstances of the charitable company

and the group, 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.

OpinionIn our opinion, the financial statements give a true and fair view of the state of affairs of the charitable company and

group as at 31 March 2005 and of the incoming resources and application of resources, including the income and expenditure of the group, in the year then ended and have been properly prepared in accordance with the Companies Act 1985.

Deloitte & Touche LLPChartered Accountants and Registered AuditorsLondonUnited Kingdom6 September 2005

16 Sh

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Notes Unrestricted funds

£’000

Restricted funds

£’000

Total funds 2005

£’000

Total funds restated (see Note 1) 2004

£’000

Incoming resourcesDonations and gifts 2 15,667 2,986 18,653 16,564Legacies 3 2,552 917 3,469 2,155Government grants 4 - 4,849 4,849 4,973Grants from other agencies 5 - 879 879 465Charitable activitiesTraining 1,233 - 1,233 941Publications 383 - 383 440Legal Services Contracts 2,631 - 2,631 2,711Housing Support Contracts - 3,230 3,230 3,050Campaigns 30 - 30 39Activities to generate fundsRetail sales 6 6,999 - 6,999 6,948Rent and service charges 29 - 29 14Investment income 7 183 - 183 99Net gain on disposal of fixed assets - - - 93Other incoming resources 36 - 36 145Total incoming resources 29,743 12,861 42,604 38,637

Resources expendedCost of generating funds: 8Fundraising and publicity costs 6,517 - 6,517 6,282Retail costs 6 6,589 - 6,589 6,350

13,106 - 13,106 12,632

Net incoming resources available for charitable application

16,637 12,861 29,498 26,005

Charitable expenditure 9Housing Aid Service 6,039 12,603 18,642 17,598Housing Aid Grants 10 542 - 542 624Campaigning and education 5,050 - 5,050 4,703Support costs 1,587 - 1,587 1,407Management and administration 1,012 - 1,012 961

14,230 12,603 26,833 25,293

Total resources expended 27,336 12,603 39,939 37,925Net incoming resources 2,407 258 2,665 712Property revaluation - - - 492Net gain on investments 116 - 116 159Net movement in funds 2,523 258 2,781 1,363

Fund balances at 1 April 7,579 679 8,258 6,895Fund balances at 31 March 10,102 937 11,039 8,258

Restricted funds include a £19,000 endowment fund, which is shown in detail in Note 25. There are no recognised gains or losses other than as disclosed above. There is no significant difference between the net incoming resources/surplus, above, and the historical cost equivalents. All results in both years derive from continuing operations. The Notes on pages 19–31 form part of these financial statements.

Consolidated statement of financial activitiesIncorporating a consolidated income and expenditure account for the year ended 31 March 2005

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Notes Group Charity

2005£’000

2004£’000

2005£’000

2004£’000

Fixed assetsTangible fixed assets 15 4,666 3,979 4,666 3,979Investments 16 1,656 1,540 1,736 1,620

6,322 5,519 6,402 5,599

Current assetsStock 17 180 210 - -Debtors 18 4,436 3,145 4,305 3,155Cash at bank 905 972 840 933Cash on short-term deposit 19 4,025 2,523 4,025 2,523

9,546 6,850 9,170 6,611

Current liabilitiesCreditors: amounts falling due within one year

20 4,365 3,702 4,084 3,558

Net current assets 5,181 3,148 5,086 3,053Total assets less current liabilities 11,503 8,667 11,488 8,652Creditors: amounts falling due after more than one year

21 91 140 91 140

Provisions for liabilities and charges

22 373 269 373 269

Net assets 11,039 8,258 11,024 8,243

Capital fundsPermanent endowment 25 19 19 19 19

Income fundsRestricted funds 25 918 660 918 660

Unrestricted funds *Designated funds 25 5,441 4,058 5,441 4,058General funds 25 4,661 3,521 4,646 3,506

11,039 8,258 11,024 8,243 *Included in the designated funds is £2,992,000 unrealised property gain (2004: £2,992,000) and included in the general funds is £712,000 unrealised investment gain (2004: £596,000).

Signed on behalf of the Board:

The financial statements on pages 16–31 were approved by the Board on 22 August 2005.

Notes Unrestricted funds

£’000

Restricted funds

£’000

Total funds 2005

£’000

Total funds restated (see Note 1) 2004

£’000

Incoming resourcesDonations and gifts 2 15,667 2,986 18,653 16,564Legacies 3 2,552 917 3,469 2,155Government grants 4 - 4,849 4,849 4,973Grants from other agencies 5 - 879 879 465Charitable activitiesTraining 1,233 - 1,233 941Publications 383 - 383 440Legal Services Contracts 2,631 - 2,631 2,711Housing Support Contracts - 3,230 3,230 3,050Campaigns 30 - 30 39Activities to generate fundsRetail sales 6 6,999 - 6,999 6,948Rent and service charges 29 - 29 14Investment income 7 183 - 183 99Net gain on disposal of fixed assets - - - 93Other incoming resources 36 - 36 145Total incoming resources 29,743 12,861 42,604 38,637

Resources expendedCost of generating funds: 8Fundraising and publicity costs 6,517 - 6,517 6,282Retail costs 6 6,589 - 6,589 6,350

13,106 - 13,106 12,632

Net incoming resources available for charitable application

16,637 12,861 29,498 26,005

Charitable expenditure 9Housing Aid Service 6,039 12,603 18,642 17,598Housing Aid Grants 10 542 - 542 624Campaigning and education 5,050 - 5,050 4,703Support costs 1,587 - 1,587 1,407Management and administration 1,012 - 1,012 961

14,230 12,603 26,833 25,293

Total resources expended 27,336 12,603 39,939 37,925Net incoming resources 2,407 258 2,665 712Property revaluation - - - 492Net gain on investments 116 - 116 159Net movement in funds 2,523 258 2,781 1,363

Fund balances at 1 April 7,579 679 8,258 6,895Fund balances at 31 March 10,102 937 11,039 8,258

Restricted funds include a £19,000 endowment fund, which is shown in detail in Note 25. There are no recognised gains or losses other than as disclosed above. There is no significant difference between the net incoming resources/surplus, above, and the historical cost equivalents. All results in both years derive from continuing operations. The Notes on pages 19–31 form part of these financial statements.

Balance sheetsAs at 31 March 2005

18 Sh

elter repo

rt and

accou

nts 2004

–05

Notes Group

2005£’000

2004£’000

Cash flow from operating activities 29 (25) 280Returns on investment and servicing of finance

Investment income received 34 59Interest received 149 40Interest paid (14) (14)Net cash inflow for returns on investment and servicing of finance

169 85

TaxationIncome Tax recovered 2,471 2,127

Capital expenditure and financial investment

Proceeds from sale of fixed assets - 93Purchase of tangible fixed assets (1,118) (744)

Net cash outflow for capital expenditure and financial investment

(1,118) (651)

Net cash inflow before management of liquid resources and financing

1,497 1,841

Management of liquid resourcesNet decrease in fixed-asset investments

- -

Net increase in short-term deposits (1,502) (1,635)Net cash outflow from management of liquid resources

(1,502) (1,635)

FinancingLoans repaid (21) (28)Capital element of finance lease rental payments

(41) (56)

Net cash outflow from financing (62) (84)

Increase/(decrease) in cash 27 (67) 122

Consolidated cash flow statementYear ended 31 March 2005


1 Principal accounting policiesThe report and financial statements aim to set out the financial position of Shelter, together with the results for the financial year, in a clear and concise manner. However, some understanding of accounting concepts on the part of the reader is assumed. For further information on accounting by charities, please refer to the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities’ published by the Charity Commissioners in October 2000.

Basis of accountingThe financial statements have been prepared under the historical cost convention, whereby assets are shown at their original purchase cost, with the exception of the Old Street freehold property (see Note 15) and listed investments (see Note 16) that have been valued using alternative accounting rules. The financial statements have been prepared in accordance with the Companies Act 1985, the Statement of Recommended Practice and applicable Accounting Standards.

Group financial statementsGroup financial statements have been prepared for Shelter, The National Campaign for Homeless People Limited, and its wholly owned subsidiary companies, Shelter Trading Limited and Shelter Merchandising Limited, in accordance with the requirements of the SORP. Shelter Merchandising Limited was dormant during the year. These financial statements have been consolidated on a line-by-line basis and the results of the active subsidiary, Shelter Trading Limited, are presented in Note 30.

Shelter operates 31 Housing Aid Centres throughout England and Scotland. The income and expenditure relating to these Housing Aid Centres is included in the consolidated financial statements. Individual unaudited reports are produced for some of the centres, copies of which can also be obtained from 88 Old Street, London EC1V 9HU.

In accordance with section 230 of the Companies Act 1985, no individual income and expenditure financial statement has been prepared for the parent company, Shelter, The National Campaign for Homeless People Limited. Of the

group surplus for the year, £2,665,000 (2004: £712,000) relates to the financial statements of the parent company.

Incoming resourcesAll income is accounted for on an accruals basis. Donations are included in the financial statements when the conditions of receipt are met. Our method of estimating legacy income for the year has changed so that only income that is actually received or income in cases where probate is settled shortly after the year-end is included. Previously, legacy income was estimated to include all those legacies that had been notified, and situations where an estimate of probate value was both possible and felt to be reasonably certain.

The Consolidated statement of financial activities has been restated for 2004, reallocating £997,000 income from government grants to housing support contracts, as certain income had been mis-allocated. This does not change total income in the year.

Gifts in kind are included as incoming resources at their estimated market value.

Notes to the financial statements


ExpenditureExpenditure is analysed between that relating to direct charitable activities and other indirect expenditure. Direct charitable expenditure includes the provision of the following services: Housing Aid Centres National Housing Advisory Service Our free housing advice helpline Legal Services Commission franchise

contracts Community Legal Service Homeless to Home projects and other

tenancy-sustainment projects Grants to other charitable

organisations providing housing aid Campaigning and education, involving

the production of educational materials, and campaigning to raise public awareness of the causes and effects of homelessness.

Support costs represent the cost of administrative support provided to assist the direct charitable work.

Other expenditure includes the cost of national and regional fundraising, Shelter shops, other merchandising and central costs. The costs of the Resources Division

for the year ended 31 March 2005 have been reallocated across expenditure headings according to usage of the service provided. The basis of the reallocation is related to the type of expenditure, and includes number of personnel, floor space, annual budget and use of equipment. The balance of the resources expenditure is disclosed as central costs and represents the central management and administrative costs of the charity.

Tangible assetsFixed assets are included at cost with the exception of the Old Street freehold property, which has been included at market value, based on a valuation undertaken on 15 March 2004. Depreciation is charged in equal annual amounts in order to write off the asset over its estimated useful life. The depreciation rates applied are as follows:

Freehold buildings 2.0%Long leasehold buildings 2.0%Freehold improvements 10.0%Furniture and fittings 25.0%Computer and office equipment 33.3%Motor vehicles 25.0%

Dilapidations provisionProvision is made for dilapidations that occurred on leasehold properties where Shelter has a contractual obligation to bear such costs. The provision for these costs is based on the results of an external Chartered Surveyor’s review and is reviewed periodically. Movements on the provisions are included in the expense headings to which they relate.

InvestmentsListed investments (such as shares, bonds etc) are stated at market value as at 31 March 2005. Any realised or unrealised gain resulting from movements in investments and changes in valuation are reflected in the statement of gains and losses on investment assets and are accounted for in the relevant fund (see note on Fund accounting on next page).

Investments in subsidiary companies in the balance sheet of Shelter, The National Campaign for Homeless People Limited, and unlisted investments, in the form of donated shares, are stated at cost.

StockStock is valued at the lower of cost and


net realisable value. Stock consists of new goods held by Shelter Trading Limited.

Fund accountingGeneral funds represent the accumulated surplus on income and expenditure and are available for use at the discretion of the Board in pursuing the general charitable objectives of the charity (see Report of the Trustees).

Designated funds are funds that have been set aside by the Board for a specific purpose, such as implementing a new accounting system. An analysis of designated funds is provided in Note 25 to the financial statements.

Included in designated funds is a freehold property fund that represents the net book value of Shelter’s freehold property. A decision was made to separate this fund from the general fund in recognition of the fact that the freehold property is used in Shelter’s day-to-day work, and the fund value would not be easily realisable if needed to meet future liabilities.

Restricted funds represent income received where the donor or the nature of the appeal generating the income has

imposed restrictions as to how the monies shall be used.

The nature and purpose of the designated and restricted funds are also set out in Note 25 to the financial statements.

Finance and operating leasesRentals applicable to operating leases are charged to the statement of financial activities in the period to which the cost relates.

Assets held under finance lease and lease purchase agreements are capitalised as fixed assets. Obligations under such agreements are included in creditors. The difference between the capitalised cost and the total obligation under the lease represents the finance cost.

Finance charges are written-off to the statement of financial activities over the period of the lease so as to produce a constant periodic rate of charge on the remaining capital balance outstanding at each accounting period.

Pension costsContributions to the company’s defined contribution pension scheme are charged

to the statement of financial activities in the year in which they are payable to the scheme.


2 Donations and gifts

2005£’000

2004£’000

Individuals 16,002 15,195Charitable foundations 689 624Corporate donors 1,962 745

18,653 16,564

3 LegaciesThe charity has been notified of certain legacies that are difficult to quantify and therefore have not been included in the financial statements on the basis of prudence. An estimated value of these legacies is £602,000 (2004: £236,000).

4 Government grants

2005£’000

2004£’000

Office of the Deputy Prime Minister 2,218 2,180Department for Education and Skills 33 93Scottish Executive 466 415Communities Scotland 161 295District, Borough, County Council and Scottish local authorities 1,719 1,701The Association of London Government 252 289

4,849 4,973

5 Grants from other agencies

2005£’000

2004£’000

Big Lottery Fund 99 167Others 780 298

879 465

6 income from retail activities

Shops Mail order

£’000

Total 2005

£’000

Total 2004

£’000

Donatedgoods£’000

New

£’000

Othergoods£’000

Sales 5,602 996 27 374 6,999 6,948Costs (5,273) (617) - (321) (6,211) (6,113)Incoming resources available (before cost reallocation)

329 379 27 53 788 835

Cost reallocation (see Note 1) (157) (182) - (39) (378) (237)Incoming resources available 172 197 27 14 410 598

7 Investment income

2005£’000

2004£’000

Interest receivable 149 40Other investment income 34 59

183 99

8 Cost of generating funds

2005 2004

Staff£’000

Other£’000

Total£’000

Staff£’000

Other£’000

Total£’000

Fundraising and publicity costs

1,854 4,663 6,517 1,664 4,618 6,282

Shelter shops 2,453 3,776 6,229 2,209 3,695 5,904Mail order 65 295 360 65 381 446Total expenditure 4,372 8,734 13,106 3,938 8,694 12,632


9 Charitable expenditure

2005 2004

Staff£’000

Other£’000

Total£’000

Staff£’000

Other£’000

Total£’000

Housing aid service 15,223 3,419 18,642 14,022 3,576 17,598Housing aid grants (see Note 10)

- 542 542 - 624 624

Campaigns 3,140 1,910 5,050 2,844 1,859 4,703Support costs 1,276 311 1,587 1,375 32 1,407Management and administration

173 839 1,012 176 785 961

19,812 7,021 26,833 18,417 6,876 25,293

10 Housing aid grants

2005£’000

2004£’000

Housing Aid Centres 229 208Housing projects 51 134Shelter Wales/Cymru 164 164Gloucestershire Forum for Young Single Homeless 56 56Cheltenham Aid Centre support to Gloucestershire YoungPeople’s Advice Service

42 62

542 624

11 Staff costs

2005£’000

2004£’000

Wages and salaries 20,013 18,401Social Security costs 1,895 1,787Pensions 1,384 1,171Other staff-related costs 892 996

24,184 22,355

Average full-time staff2005

No.2004

No.

Fundraising 34 35

Services 466 451

Resources 61 64

Communications and Policy 54 31

Scotland 102 93

Shops 190 174

907 848

The average full-time equivalent number of employees who received emoluments in the following ranges were:

2005No.

2004No.

£50,001 to £60,000 6 3£60,001 to £70,000 2 1£70,001 to £80,000 - 1£80,001 to £90,000 1 -

All of the higher paid employees shown belong to a defined contribution scheme that Shelter operates for employees. The assets of the scheme are held separately from those of the charity, being invested with Scottish Equitable plc. The pension cost shown above represents contributions payable by Shelter to Scottish Equitable. Of the total, £53,000 related to the higher paid employees and £116,000 was outstanding to Scottish Equitable at the year-end.

Trustees are not entitled to and did not receive any remuneration in respect of their services throughout the year. Travel expenses incurred by Trustees in respect of Shelter meetings amounted to £3,691 (2004: £3,892) during the year. The number of Trustees receiving expense reimbursement during the year was five (2004: 5).

The charity provides insurance to indemnify the Trustees and directors against the consequences of any neglect or default on their part. The cost of providing this insurance was £2,644 (2004: £1,953).


12 Resources used for the purchase of tangible fixed assets

Un -restricted

funds£’000

Restricted funds

£’000

Total

£’000

Net movement in funds for the year 2,523 258 2,781Net (increase)/decrease in fixed assets for direct charitable purposes

(687) - (687)

Net movement in funds available for future activities 1,836 258 2,094

13 Net incoming resourcesThe net incoming resources to funds is stated after charging:

2005£’000

2004£’000

Interest payable on long-term loan (Note 21) 6 12Auditors’ remuneration:Audit work (charity £23,169; 2003: £20,563) 30 30Non-audit work - -Depreciation of tangible fixed assets 431 533Rental costs relating to operating leases 2,315 2,282

Rental costs of £2,315,000 comprise £126,000 on plant and machinery and £2,189,000 on other.

14 TaxationThe company is a registered charity and as such is entitled to the exemptions under the Income and Corporation Taxes Act 1988.

During the year, the group incurred VAT of £860,000 (2004: £981,000) which it was unable to recover from HM Customs and Excise under current VAT legislation. This resulted in a commensurate reduction in the resources of the charity.

15 Fixed assets – group and charity

Freehold buildings

£’000

Longleasehold buildings

£’000

Freeholdimprove-

ments£’000

Furnitureand

fittings£’000

Computerand office

equipment£’000

Total

£’000

Cost or valuationAt 1 April 2004 3,400 50 - 2,525 2,587 8,562Additions - - 199 723 196 1,118Disposals/transfers - - - - - -At 31 March 2005 3,400 50 199 3,248 2,783 9,680

DepreciationAt 1 April 2004 - 13 - 2,254 2,316 4,583Charge for the year 48 1 11 181 190 431Disposals/transfers - - - - - -At 31 March 2005 48 14 11 2,435 2,506 5,014

Net book valuesAt 31 March 2005 3,352 36 188 813 277 4,666At 31 March 2004 3,400 37 - 271 271 3,979

Freehold buildings include £1,000,000 of land that is not depreciated. The Old Street property is included at market value, based on a valuation undertaken on 15 March 2004 by HSBV Chartered Surveyors acting as independent valuers. The valuation was undertaken in accordance with the Practice Statements of the RICS Appraisal and Valuation Manual. The charity undertakes an independent professional valuation every five years. The net book value of assets held under finance leases is £51,000 (2004: £81,200).


16 Fixed-asset investments – group and charity

2005£’000

2004£’000

Listed investments:Investments at market value at 1 April 1,540 1,381Additions - -Disposal proceeds - -Net (loss)/gain for the year 116 159Investments at 31 March 1,656 1,540Cost at 31 March 944 944Total unrealised gain at 31 March 712 596

1,656 1,540Being Common Investment Funds:CAF Equity Growth Fund 1,096CAF Bond Income Fund 560

1,656

Neither of the Common Investment Funds shown above has an individual holding with a value more than five per cent of the value of the total fund. In addition to the investments shown above, the company owns the entire issued ordinary share capital (£80,100; 2004: £80,100) of its group undertakings, Shelter Merchandising Limited and Shelter Trading Limited. Both companies are incorporated in England and Wales.

17 Stock

Group Charity

2005£’000

2004£’000

2005£’000

2004£’000

New goods 180 210 - -

18 Debtors

Group Charity

2005£’000

2004£’000

2005£’000

2004£’000

Trade debtors 929 616 735 543Amounts due from subsidiary companies - - 349 424Taxation recoverable 551 549 551 473Other debtors 209 141 197 124Prepayments and accrued income 1,414 847 1,140 599Accrued legacy income 1,333 992 1,333 992

4,436 3,145 4,305 3,155

Included in prepayments and accrued income is £528,149 (2004: £Nil) accrued income for the National Homelessness Advisory Service.

19 Cash on short-term deposit

Cash on short-term deposit includes £1 million received from Vodafone (UK) Foundation in both 2004–05 and 2005–06 covering the costs of our project to reach young people either in, or at risk of being in, housing need during the following financial year.

20 Creditors: amounts falling due within one year

Group Charity

2005£’000

2004£’000

2005£’000

2004£’000

Trade creditors 1,338 1,310 1,277 1,240Amounts payable under finance leases (Note 24) 23 34 23 34Amounts due for taxation and Social Security 540 483 501 457Other creditors 316 129 279 87Loans 42 35 42 35Accruals 425 222 281 216Deferred income 1,681 1,489 1,681 1,489

4,365 3,702 4,084 3,558 Loans include an amount of £35,000 (2004: £28,000), which is the amount payable within one year of the long-term loan described in Note 21.

Deferred income relates to income received in advance of its proper recognition in the accounts. This includes £1,000,000 received from Vodaphone in both years. All deferred income brought forward is released in the following year and the carry forward relates to new deferrals.


21 Creditors: amounts falling due after more than one year – group and charity

2005£’000

2004£’000

Amounts payable under finance leases (Note 24) 4 24Long-term loan 87 116

91 140

The long-term loan is secured on the freehold property by means of a fixed charge and is the amount repayable after one year of a loan originally repayable by instalments over 15 years. Interest is charged at one per cent above the bank base rate. The total loan is now repayable as follows:

2005£’000

2004£’000

Within one year 35 28

One to two years 28 28Two to five years 59 88

122 144

22 Provision for liabilities and charges – group and charity

Dilapidations£’000

Other£’000

Total£’000

Balance at 1 April 2004 220 49 269Utilised during the year - (1) (1)Charged in the year 70 35 105Balance at 31 March 2005 290 83 373

23 Leasing commitments – group and charityAt 31 March 2005 the group had annual commitments under non-cancellable operating leases of:

2005 2004

Land and buildings

£’000

Other

£’000

Land andbuildings

£’000

Other

£’000

Operating leases which expire:Within one year 423 17 69 9Within two to five years 839 93 691 109After more than five years 593 3 1,153 -

1,855 113 1,913 118

24 Finance lease and hire purchase agreements – group and charityAt 31 March 2005 the future minimum payments to which the group was committed under non-cancellable finance lease and hire purchase agreements were:

2005£’000

2004£’000

Within one year 25 39Within two to five years 5 25

30 64Amount representing interest (3) (5)

27 59

Amount repayable within one year 23 35Amount repayable after more than one year 4 24

27 59

25 Statement of funds

Balance01/04/04

£’000

Incomingresources

£’000

Resourcesused

£’000

Transfers

£’000

Balance31/03/05

£’000

General fundsGeneral funds 2,925 29,743 (27,288) (1,431) 3,949Unrealised investment gain 596 116 - - 712Total general funds 3,521 29,859 (27,288) (1,431) 4,661

Designated fundsNew accounting system 29 - - - 29Property fund 3,400 - (48) - 3,352Risk reserve account 350 - - 350 700New projects fund 269 - - 81 350Scottish election campaign 10 - - - 10Strategic investment fund - - - 1,000 1,000Total designated funds 4,058 - (48) 1,431 5,441

Restricted fundsFamilies Project Scotland 299 - (104) - 195Neighbourhood Renewal Fund - 105 - - 105Powergen - 107 (10) - 97


Balance01/04/04

£’000

Incomingresources

£’000

Resourcesused

£’000

Transfers

£’000

Balance31/03/05

£’000

Rent Deposit Scheme - 66 - - 66Drugs Intervention Programme - 39 (2) - 37Legal Methods of Delivery 72 198 (234) - 36Wyre District Council 26 8 (2) - 32East Lothian Project 30 64 (63) - 31Outreach Worker - 90 (60) - 30Housing Rights Co-ordinator - 110 (84) - 26East Lancashire Advice 7 54 (35) - 26Lloyds TSB Foundation for England and Wales

- 25 - - 25

Scottish Rough Sleepers 23 19 (19) - 23West Dorset - 21 - - 21Cleveland Fund 11 31 (22) - 20Bridge House Trust 42 - (42) - -Choice-based lettings policy 24 - (24) - -Colchester Army Project 24 - (24) - -Lord Ezra - 20 (20) - -Slough Estates plc - 10 (10) - -Capital International - 6 (6) - -Birmingham Midshires - 6 (6) - -Northern Foods plc - 5 (5) - -Alice Ellen Cooper Dean Charitable Trust

- 5 (5) - -

Zochonis Charitable Trust - 10 (10) - -Bradford & Bingley - 175 (175) - -BPB plc - 32 (32) - -Anonymous - 40 (40) - -CHK Charities Limited - 5 (5) - -Yorkshire Building Society Charitable Trust

- 2 (2) - -

Coutts Charitable Trust - 2 (2) - -Hugh Norton - 5 (5) - -Domnick Hunter plc - 1 (1) - -Northern Rock Foundation - 46 (46) - -Westminster Foundation - 20 (20) - -Vodafone (UK) Foundation - 1,000 (1,000) - -Calouste Gulbenkian Foundation - 12 (12) - -

Balance01/04/04

£’000

Incomingresources

£’000

Resourcesused

£’000

Transfers

£’000

Balance31/03/05

£’000

Sylvia Adams Charitable Trust - 25 (25) - -Adint Charitable Trust - 10 (10) - -Albert Hunt Trust - 5 (5) - -Rank Foundation - 20 (20) - -Rayne Foundation - 15 (15) - -Drapers’ Charitable Trust - 10 (10) - -Tudor Trust - 30 (30) - -Building Societies Trust - 15 (15) - -The Ingram Trust - 35 (35) - -John Moores Foundation - 5 (5) - -Comic Relief - 10 (10) - -JLD Charitable Trust - 15 (15) - -Batchworth Trust - 10 (10) - -Big Lottery Fund for Ricochet - 56 (56) - -Big Lottery Fund for Shelter Housing Action with Rural Communities

- 27 (27) - -

Big Lottery Fund for South Lanarkshire Families Project

- 8 (8) - -

Big Lottery Fund for Edinburgh Families Project

8 (8) - - -

Families Project Local Authority Contract

59 - (59) - -

Other restricted funds (under £20,000) 43 118 (13) - 148Other restricted funds fully utilised in year

- 10,100 (10,100) - -

John Rees Fund* 19 - - - 19Total restricted funds 679 12,861 (12,603) - 937

*The John Rees Fund is a permanent endowment fund.

Designated fundsThe income funds of the charity include the following designated funds, which have been set aside out of unrestricted funds by the Trustees for specific purposes:

New accounting systemThis fund was established to cover the costs involved in developing a new accounting system.

Property FundThe Property Fund represents the net book value of Shelter’s Old Street property.


Risk Reserve AccountThe Risk Reserve Account is held against general business risks faced by the organisation.

New Projects FundThis fund is used to develop new, innovative projects.

Scottish election campaignThis fund will be used to produce good-practice guidance materials.

Strategic Investment FundThis fund has been set up to provide funding for investment opportunities helping Shelter to deliver its long-term strategy.

Restricted fundsThe income funds of the charity include restricted funds comprising the unexpended balances of donations and grants held on trust to be applied for specific purposes, as shown earlier on the previous page.

The John Rees FundThe John Rees Fund was established to enable Shelter to award a prize to the person who, in the opinion of the Trustees, has done most to eradicate problems of homelessness in England. Under the terms of the trust, income is accumulated to fund the cost of the prize. The fund is represented by cash deposits.

26 Analysis of group net assets between funds

Un-restricted

funds£’000

Restrictedfunds

£’000

Endow-mentfunds£’000

Totalfunds

£’000

Fund balances at 31 March 2005 are represented by:Tangible fixed assets 4,666 - - 4,666Investments 1,656 - - 1,656Current assets 8,609 918 19 9,546Current liabilities (4,358) - - (4,358)Long-term liabilities (471) - - (471)Total net assets 10,102 918 19 11,039

27 Reconciliation of net cash flow to movement in net funds

2005£’000

2004£’000

Increase/(decrease) in cash in the period (67) 122Cash outflow from decrease in debt and lease financing 62 84Cash outflow from increase in liquid resources 1,502 1,635Changes in net funds resulting from cash flows 1,497 1,841New finance leases - (14)Movement in net funds in the period 1,497 1,827Net funds as previously stated 3,278 1,451Net funds at end of period 4,775 3,278

28 Analysis of net funds

At 1April2004

£’000

Cashflow

£’000

Non-cash

changes£’000

At 31 March

2005£’000

Cash on short-term deposit 2,523 1,502 - 4,025Cash at bank 972 (67) - 905Loans due (149) 21 - (128)Finance leases (68) 41 - (27)

3,278 1,497 - 4,775

29 Reconciliation of net incoming resources before transfers to operating cash flows

2005£’000

2004£’000

Surplus/(deficit) in funds before transfers 2,665 712Depreciation charges 431 533Surplus on sale of fixed assets - (93)Movement in provision for liabilities and charges 104 -Interest payable 14 14 Interest receivable (149) (40)Investment income receivable (34) (59)(Increase)/decrease in stock 30 (80)(Increase)/decrease in debtors (1,289) 1,171(Decrease)/increase in creditors 667 423 Income Tax recoverable (2,464) (2,301) Net cash inflow/(outflow) from activities (25) 280


30 Trading subsidiariesShelter Merchandising Limited was dormant in both 2004 and 2005. The results for Shelter Trading Limited are shown below. Shelter Trading Limited has two operations: selling donated goods on behalf of Shelter and for which it receives a management fee charged to Shelter, and sales of new goods and royalty income. Audited financial statements have been prepared for Shelter Trading Limited and all taxable profit is gifted to Shelter.

Shelter Trading Limited

2005£’000

2004£’000

Total income 4,318 4,165Cost of sales (674) (662)

3,644 3,503Administration costs (3,223) (2,993)Net profit gifted to Shelter 421 510

Included in total income for the year is a management fee from the parent company of £2,936,292 (2004: £2,966,000).

As at 31 March 2005, Shelter Trading Limited had total assets of £721,000 (2004: £663,000) and total liabilities of £626,000 (2004: £568,000).

31 Connected charityThe financial statements do not include the activities of Shelter Wales/Cymru, which is connected to Shelter by way of common objectives, but which is an autonomous organisation and a separately registered charity. Shelter paid a grant of £164,300 (2004: £164,416) to Shelter Wales/Cymru during the financial year. During the current financial year, Shelter continued to guarantee Shelter Wales/Cymru’s overdraft facility of £50,000. The address of Shelter Wales/Cymru is: 25 Walter Road, Swansea, SA1 5NN.

32 Grants, financial assistance and contracts from statutory bodies and local authoritiesListed below are grants and contracts in excess of £2,000 receivable in respect of the year ended 31 March 2005. This list is prepared in compliance with section 37 of the Local Government and Housing Act 1989.

Funding amount£’000

Funding purpose

District, Borough and County Councils in England and Wales:Sheffield City Council 927 Tenancy Sustainment Projects, Children’s

Projects and an Older Persons’ Project, Sheffield

Bristol City Council 405 Tenancy Sustainment Bristol Rochdale Metropolitan Borough Council 290 Shelter Inclusion ProjectAssociation of London Government 252 London Services and Campaign for Bedsit

RightsGloucester City Council 219 Gloucester Housing Aid CentreNottingham City Council 217 Nottingham Tenancy Sustainment ProjectBirmingham City Council 212 Birmingham Tenancy Sustainment ProjectSouth Gloucestershire County Council

201 Tenancy Sustainment Project and Gloucestershire Housing Aid Centre

Milton Keynes Borough Council 117 Milton Keynes Housing Aid CentreLeeds City Council 113 Leeds Outreach ProjectBournemouth Borough Council 74 Dorset Housing Aid CentreSt Albans District Council 50 Hertfordshire Housing Aid CentreSomerset County Council 44 Somerset Housing Aid Centre and

Gateway ProjectLancashire County Council 41 Lancashire Housing Aid CentreWest Dorset District Council 35 Dorset Housing Aid CentreWyre Borough Council 33 Lancashire Housing Aid CentreSevenoaks District Council 32 Kent Housing Aid CentrePendle Borough Council 28 Lancashire Housing Aid CentreHalton Borough Council 22 Cheshire Housing Aid CentreCumbria County Council 16 South Cumbria Offender Scheme

– Tenancy SustainmentGreat Yarmouth Borough Council 15 Great Yarmouth Housing Aid CentreNewcastle City Council 15 North East Housing Aid CentrePlymouth City Council 15 Devon Housing Aid CentreBrent Council 14 Quality Team



Funding purpose

Welwyn Hatfield District Council 13 Hertfordshire Housing Aid CentreGreenwich Council 12 Quality TeamTewkesbury Borough Council 12 Gloucestershire Housing Aid CentreCornwall County Council 7 Cornwall Housing Aid CentreRossendale Borough Council 7 Lancashire Housing Aid CentreStockport Metropolitan Borough Council 7 Choice-based lettingsSomerset County Council 7 Somerset Housing Aid CentreForest of Dean District Council 7 Gloucestershire Housing Aid CentreCrewe and Nantwich Borough Council 7 Cheshire Housing Aid CentreCaradon District Council 6 Cornwall Housing Aid CentreSlough Borough Council 6 Southern Counties Housing Aid CentreCity of Chester Council 6 Cheshire Housing Aid CentreSouth Somerset District Council 5 Somerset Housing Aid CentreCrawley Borough Council 5 West Sussex and Surrey Housing Aid

CentreCheshire County Council 5 Cheshire Housing Aid CentreSt Edmundsbury Borough Council 5 Quality TeamDacorum Borough Council 4 Quality TeamCongleton Borough Council 4 Cheshire Housing Aid CentreEllesmere Port and Neston 4 Cheshire Housing Aid Centre – Borough Council Multi-agency monitoring projectMacclesfield Borough Council 4 Cheshire Housing Aid Centre –

Multi-agency monitoring projectVale Royal Borough Council 4 Cheshire Housing Aid Centre –

Multi-agency monitoring projectWarrington Borough Council 4 Cheshire Housing Aid Centre –

Multi-agency monitoring projectAlnwick District Council 4 North East Housing Aid CentreKerrier District Council 4 Cornwall Housing Aid CentreNorth Cornwall District Council 4 Cornwall Housing Aid CentrePenwith District Council 4 Cornwall Housing Aid CentreRotherham Metropolitan Borough Council

3 South and West Yorkshire Housing Aid Centre

Ashford Borough Council 3 Kent Housing Aid Centre


Funding purpose

Mid Devon District Council 3 Devon Housing Aid CentreMendip District Council 3 Somerset Housing Aid CentreNorth Hertfordshire District Council 3 Hertfordshire Housing Aid CentreLincolnshire County Council 2 Lincoln Housing Aid CentreEast Hertfordshire District Council 2 Hertfordshire Housing Aid CentreDevon County Council 2 Quality TeamHertsmere Borough Council 2 Hertfordshire Housing Aid CentreHorsham District Council 2 West Sussex and Surrey Housing Aid

CentreSouth Lakeland District Council 2 Cumbria Housing Aid Centre –

Multi-agency monitoring projectTeignbridge Borough Council 2 Devon Housing Aid Centre

Government departments:Office of the Deputy Prime Minister (section 73 : 1985 Housing Act)

2,174 National Homelessness Advisory Service

Office of the Deputy Prime Minister (section 73 : 1985 Housing Act)

44 Homeless to Home Development Manager

Scottish Executive 466 Scottish Homelessness Advisory Service and Scottish Housing Law Service

Communities Scotland 161 Scottish Homelessness Advisory ServiceDepartment for Education and Skills 33 Merseyside Youth Work

Scotland: Glasgow City Council 507 Families Projects Scotland, Glasgow

Rough Sleepers, and Glasgow Housing Aid Centre

Edinburgh City Council 256 Families Projects ScotlandSouth Lanarkshire Council 254 Families Projects ScotlandDumfries and Galloway Council 203 Single Person Homeless Support ServiceEast Lothian Council 91 East Lothian ProjectScottish Borders Council 6 Edinburgh Housing Aid CentreNorth Lanarkshire Council 3 Scottish Housing Aid



Funding purpose

Other:HM Prison Service 449 North East, Humberside, and

Kent and Sussex Prison ProjectsBig Lottery Fund for Ricochet 56 Ricochet Project Big Lottery Fund for Shelter Housing 27 Shelter Housing Action with Rural

CommunitiesBig Lottery Fund for South Lanarkshire Families Project

8 South Lanarkshire Families Project

Big Lottery Fund for Edinburgh Families Project

8 Edinburgh Families Project

Barnardo’s 93 Child Support South Gloucestershire and Bristol

Open Door 62 Milton Keynes Rent Deposit SchemeNew Deal for Communities 61 North East Housing Aid CentreHertfordshire Crime Reduction 49 Hertfordshire Housing Aid CentreHousing Corporation 35 ResearchEssex Probation Service 28 Essex and Suffolk Housing Aid CentreArmed Forces Colchester Project 28 Essex and Suffolk Housing Aid CentreCumbria Probation Service 8 Cumbria Housing Aid CentreMoat Home Owners 6 Kent Housing Aid CentreWest Kent Housing Association 6 Kent Housing Aid CentreNew Connection 5 Cornwall Housing Aid CentrePenwith Housing Concern 4 Kent Housing Aid CentreNorth Cornwall PCT 4 Tenancy Sustainment BristolBeevers Solicitors 3 Kent Housing Aid Centre

Grants less than £2,000 in value 247

Total grants received 8,958


Shelter would particularly like to thank the following for their support during the year:

29th May 1961 Charitable TrustadidasAdint Charitable TrustAnglo Irish BankBank of IrelandBarclays plcBaroness Rendell of BaberghBatchworth TrustBeat 106beCogentBerkeley HomesBig Lottery FundBirmingham MidshiresBishop LochBPB plcBradford & Bingley plcBridge House TrustBritannia Building SocietyBrixton plcBuilding Societies Trust LimitedCalford Seadon (H&S) LtdCalouste Gulbenkian FoundationCapital InternationalChris IngramCloser magazineClydesdale BankComic ReliefCrest Nicholson plcD G Charitable Trust

DevCoDiet CokeDrapers’ Charitable FundDunfermline Building SocietyDurham CathedralElle magazineFootball FoundationGapGrainger Trust plcGreat Portland Estates plcHASBROHenry Smith CharityHogg RobinsonIngram TrustInstitute of Our Lady of Mercy, LeedsLockers Park School, Hemel HempsteadLondon Marathon Ltd and all our runners and teamsLord McNallyMarshMidsummer Homes H AMiss Agnes H Hunter’s TrustMiss E M Johnson’s Charitable TrustNationwide Building SocietyNestlé TrustNew City VisionNewcastle Building SocietyNorthern FoodsNorthern Rock FoundationNorton RoseOddbinsOldham Mayor’s Office

OracleOreck UKOrthocare UKProperty WeekPrudentialRail Freight GroupRank FoundationRayne Foundationrealrunner.comRichard HollowayRita and David Slowe Charitable TrustRobertson TrustRoyal Incorporation of Architects in ScotlandRoyal Mail Holdings plcSavoir BedsShareGiftSlough Estates plcSmiths Group plcSpirit GroupStandard LifeStolt-NielsenStrathclyde HomesSylvia Adams Charitable TrustTaylor Woodrow plcTendring Technology College, EssexThe FAThe FixThe Royal Institute of British ArchitectsThe Ultimate ExperienceThe Vodafone UK FoundationTolkien Trusttotallyfinancial.com

totallylegal.comTriton AdvisersTudor TrustW J Weston 1996 Discretionary TrustWarren JamesWestminster AbbeyWestminster CouncilWestminster FoundationWhitemeadow Furniture LtdWinterfold House School, WorcestershireXFMYorkshire Building SocietyYour MortgageYSG and TSG GroupsYule Catto & Co plcZochonis Charitable Trust

We would also like to express our gratitude to all those individuals who left us generous gifts in their Wills.

Thanks from Shelter


PresidentVacant

Vice-presidentsBishop Richard HollowayTom McNallyChris IngramRuth Rendell

Board of TrusteesProfessor Peter Robson (Chair)Michael NorthwoodProfessor A Crook Hugh Norton Madeline DrakeJeff PhillipsSally Hunt (resigned 17/9/04)Robert Porter Professor Colin JonesElizabeth Rantzen (Vice-chair)Maggie Jones Don SimpsonAnil KumarAnthony TaussigDr Martin Read (appointed 6/12/04)

Finance CommitteeElizabeth Rantzen (Chair) Richard AllanJonathan Brooks Michael JaysonAnil KumarJeff PhillipsNicolas ReynaudProfessor Peter Robson

Audit Committee Jeff Phillips (Chair)Richard Allan Deborah FowlerJohn Rogerson (appointed 24/2/05)

Scottish Advisory CommitteeDi AlexanderProfessor Peter RobsonJan BanisterDenis Robertson SullivanProfessor Colin JonesAlf YoungHarry O’Donnell

DirectorAdam Sampson

Company SecretaryHenny Braund

Registered Office88 Old StreetLondon EC1V 9HU

SolicitorsBates Wells and Braithwaite2–6 Cannon StreetLondon EC4M 6YH

Investment ManagersUBS Global Asset Management (UK) Limited21 Lombard StreetLondon EC3V 9AH

Insight Investment Management (Global) Limited33 Old Bond StreetLondon EC2N 1HZ

Legal and administrative information

AuditorsDeloitte & Touche LLP1 Little New StreetLondon EC4A 3TR

Principal BankersBarclays Bank plc29 Borough High StreetLondon SE1 1LY

Constitution and objectivesThe company is limited by guarantee and registered in England and Wales and is governed by its Memorandum and Articles of Association. It is engaged in the relief of hardship and distress among homeless people and those in need who are living in adverse housing conditions.

Bad housing wrecks lives

We are the fourth richest country in the world, and yet millions of people in Britain wake up every day in housing that is run-down, overcrowded, or dangerous. Many others have lost their home altogether. Bad housing robs us of security, health, and a fair chance in life.

Shelter believes everyone should have a home.

We help 100,000 people a year fight for their rights, get back on their feet, and find and keep a home. We also tackle the root causes of bad housing by campaigning for new laws, policies, and solutions.

88 Old Street Scotiabank House London 6 South Charlotte Street EC1V 9HU Edinburgh EH2 4AW Telephone 0845 458 4590 or visit www.shelter.org.uk

© Shelter, October 2005. All rights reserved. This document is only for your personal, non-commercial use. You may not copy, reproduce, republish, post, distribute, transmit or modify it in any way.

Shelter, The National Campaign for Homeless People Ltd

88 Old Street London EC1V 9HU

www.shelter.org.uk

Charity number 263710 Company number 1038133

Documents

Report and accounts 2004–05 - Shelter Scotland...business risk in both the short term, as the organisation continues to grow, and in the medium term, owing to increasing competition