portsmouth area regeneration trust (limited...

Charity Registration No. 1079454

Company Registration No. 03794640 (England and Wales)

PORTSMOUTH AREA REGENERATION TRUST

(LIMITED BY GUARANTEE)

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2017

PORTSMOUTH AREA REGENERATION TRUST(LIMITED BY GUARANTEE)LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Linda McCormackRoy ScanlonD'Arcy Myers (Chair)Hereward Drummond (Vice Chair)Dr Elizabeth RogersPhilip YetmanJames Culverwell (Appointed 24 April 2017)

Secretary SJ Davis

Charity number 1079454

Company number 03794640

Principal address East Wing1000 LakesideNorth HarbourPortsmouthHampshirePO6 3EN

Registered office East Wing1000 LakesideNorth HarbourPortsmouthHampshirePO6 3EN

Auditor Jones Avens Limited53 Kent RoadSouthseaPortsmouthHampshirePO5 3HU

Bankers Lloyds Bank plcHedge End SouthamptonSt John's CentreHedge EndSouthamptonHampshireSO30 4QU

Solicitors Coffin Mew LLP3rd FloorCumberland House15-17 Cumberland PlaceSouthamptonHampshireSO15 2BG

PORTSMOUTH AREA REGENERATION TRUST(LIMITED BY GUARANTEE)CONTENTS

Page

Trustees' report 1 - 4

Statement of trustees' responsibilities 5

Independent auditor's report 6 - 7

Statement of financial activities 8

Balance sheet 9

Notes to the accounts 10 - 20

PORTSMOUTH AREA REGENERATION TRUST(LIMITED BY GUARANTEE)TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)FOR THE YEAR ENDED 31 MARCH 2017

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The trustees who are also directors of Portsmouth Area Regeneration Trust (hereinafter referred to as the "Charity") for the purposes of the Companies Act present their report and accounts for the year ended 31 March 2017. The Charity also operates und the name of Parity Trust.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's Articles and Memorandum of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016)

Objectives and activitiesThe Charity's objects are the promotion, for the public benefit, of urban or rural regeneration in areas of social and economic deprivation in the United Kingdom by all or any of the following means:

The relief of poverty;The relief of unemployment;The advancement of education, training or retraining, particularly among unemployed people;The provision of financial assistance, technical assistance or business advice or consultancy in order to provide training and employment opportunities for unemployed people in cases of financial or other charitable need through help in setting up their own business or to existing businesses;The provision or assistance in the provision of recreational facilities for the public at large or those who by reason of their youth, age, infirmity or disablement, poverty or social and economic circumstances, have need of such facilities;The provision of advice and services to those in receipt of benefits and those who are both low waged and un-waged;The provision and improvement of housing and any associated amenities for persons in necessitous circumstances upon terms appropriate to their means provided that such power shall not extend to relieving any local authorities or other bodies of a statutory duty to provide or improve housing.

Charity's aims and public benefitThe Charity is committed to providing affordable loans and management services to people and communities who are marginalised from accessing mainstream finance. The trustees have complied with the duty in s17(5) of the Charities Act 2011 to have regard to the public benefit guidance published by the Charity Commission.

Charity's main objectives for the yearThe Charity's strategic objectives may be summarised as follows:

Investing in community assets, buildings and development projects, working with other partners;Provision of mortgage finance to prospective homeowners, marginalised from mainstream providers; andLending to financially excluded homeowners through the provision of mortgage finance.

Structure, governance and managementThe charity is a company limited by guarantee incorporated on 24 June 1999 and a registered charity. The trustees, officers professional advisers and address of the charity are as listed on the Legal and Administration information pages at the beginning of these financial statements.

The charity is governed by its Articles and Memorandum of Association.

PORTSMOUTH AREA REGENERATION TRUST(LIMITED BY GUARANTEE)TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)FOR THE YEAR ENDED 31 MARCH 2017

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Relationships with other organisationsThe Charity works alongside Portsmouth Area Regeneration Trust (IPS) Limited (hereinafter referred to as "the IPS") and Portsmouth Area Regeneration Trust (Guarantee) Limited (hereinafter referred to as "Guarantee").

The IPS 'belongs' to its members, who have subscribed to shares as a means of financially supporting the group objectives.

In line with best practice the majority of loans that are made are regulated by the Financial Conduct Authority ("FCA"). The FCA registration is in the name of Guarantee, a wholly owned subsidiary of the charity. For a fuller understanding of the work undertaken by the charity it is also necessary to consider the financial statements of the IPS and Guarantee.

TrusteesA board of trustees governs the Charity. The number of trustees shall not exceed fifteen and shall not be less than two. At every annual general meeting one-third of the trustees shall retire from office. IPS has the right to appoint or remove any board member of the company under standing orders. These standing orders must be revoked if there is any conflict with the legal obligations of the company and/or the board of trustees as charitable trustees and as company directors under the Companies or Charities Acts.

In practice the boards of all three constituent organisations comprise the same individuals because we believe it is efficient to govern Parity Trust in this manner. In practice, we seek to ensure that the boards comprise individuals with a range of skills and experience. This includes placing a strong emphasis on those with a knowledge of the community that we serve. At 31 March 2017 there were seven trustees/directors.

The charity maintains insurance policies on behalf of all the trustees against liability arising from negligence, breach of duty and breach of trust in relation to the charity.

The following trustees, who served during the year were:

Linda McCormackRoy ScanlonD'Arcy Myers (Chair)Hereward Drummond (Vice Chair)Dr Elizabeth RogersPhilip YetmanJames Culverwell (Appointed 24 April 2017)

All new trustees are provided with an introductory training session within the first three months of their appointment. This session includes: Background to the establishment of the Group; mission, aims and objectives; primary business plan objective; and governance and trustee responsibilities. Regular briefing events are also held to which trustees are invited to improve and increase their knowledge of the groups activities.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.


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Management TeamSJ Davis is the Chief Executive and is responsible to the Board for all aspects of performance management.

The group operates a flat management structure, for the purposes of efficiency and accountability. All employees have a range of differing skills and experience to bring to the needs of the organisationscustomers.

Employee involvementApplications for employment by disabled persons are always fully 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 within the charity continues and that the appropriate training is arranged. It is the policy of the charity that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Programme related investmentsInvestments have been made in organisations which further the Charity's aims in helping to provide advice and finance.

Achievements and performance

The Charity has continued to have a major impact on the lives of hundreds of people in the South of England, helping vulnerable people to improve their homes.

2016 saw the launch of the mortgage extension product, aimed at those with maturing interest only mortgages without the capital to repay the loan and lenders are not extending the term. This provides an option for those that wish to stay in their home and maintain 100% ownership.

During the year the Charity and its subsidiary company, Portsmouth Area Regeneration Trust (Guarantee) Limited, made 43 new advances totalling £243,906. As at 31 March 2017 there were 292 live loans. The entire loan book comprises asset backed loans.

Financial reviewNet movement in funds for the year were in surplus of £18,460 (2016: surplus of £82,064) and there were total funds carried forward of £771,556 (2016: £753,096).

Portsmouth Area Regeneration Trust (Guarantee) Limited, a subsidiary, generated profits for the year after tax of £21,967 (2016: £115,863) out of which it paid gift aid of £15,000 (2016: £100,872) to the charity. Capital and reserves at the year end amounted to £86,517 (2016: £79,550).

Reserves policyIt is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised.

Risk assessmentThe trustees has assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

AuditorIn accordance with the company's articles, a resolution proposing that Jones Avens Limited be reappointed as auditor of the company will be put at a General Meeting.


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Disclosure of information to auditorEach of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' report was approved by the Board of Trustees.

D'Arcy Myers (Chair) Hereward Drummond (Vice Chair)Trustee TrusteeDated: 3 July 2017 Dated:3 July 2017

PORTSMOUTH AREA REGENERATION TRUST(LIMITED BY GUARANTEE)STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2017

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The trustees, who are also the directors of Portsmouth Area Regeneration Trust for the purpose of company law, are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these accounts, the trustees are required to:

- select suitable accounting policies and then apply them consistently;

- observe the methods and principles in the Charities SORP;

- make judgements and estimates that are reasonable and prudent;

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and

- prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

PORTSMOUTH AREA REGENERATION TRUST(LIMITED BY GUARANTEE)INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PORTSMOUTH AREA REGENERATION TRUST

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We have audited the accounts of Portsmouth Area Regeneration Trust for the year ended 31 March 2017 set out on pages 8 to 20. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102.

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and regulations made under that Act. Our audit work has been undertaken so that we might state to the charitable 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 permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of trustees and auditorAs explained more fully in the statement of trustees' responsibilities set out on page 5, the trustees, who are also the directors of Portsmouth Area Regeneration Trust for the purposes of company law, are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the accounts in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the accountsAn audit involves obtaining evidence about the amounts and disclosures in the accounts sufficient to give reasonable assurance that the accounts are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charitable company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the accounts. In addition, we read all the financial and non-financial information in the Trustees' Annual Report to identify material inconsistencies with the audited accounts and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on accounts.In our opinion the accounts:- give a true and fair view of the state of the charitable company's affairs as at 31 March 2017 and of its

incoming resources and application of resources, including its income and expenditure, for the year then ended;

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

- have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006In our opinion the information given in the Trustees' Report for the financial year for which the accounts are prepared is consistent with the accounts.

PORTSMOUTH AREA REGENERATION TRUST(LIMITED BY GUARANTEE)INDEPENDENT AUDITOR'S REPORT (CONTINUED)TO THE MEMBERS OF PORTSMOUTH AREA REGENERATION TRUST

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Matters on which we are required to report by exceptionWe have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:- adequate accounting records have not been kept, or returns adequate for our audit have not been received

from branches not visited by us; or- the accounts are not in agreement with the accounting records and returns; or- certain disclosures of trustees' remuneration specified by law are not made; or- we have not received all the information and explanations we require for our audit.

Timothy Millett ACA (Senior Statutory Auditor)for and on behalf of Jones Avens Limited 3 July 2017

Chartered AccountantsStatutory Auditor 53 Kent Road

SouthseaPortsmouthHampshirePO5 3HU

PORTSMOUTH AREA REGENERATION TRUST(LIMITED BY GUARANTEE)STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNTFOR THE YEAR ENDED 31 MARCH 2017

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2017 2016Notes £ £

Income and endowments from:Donations and legacies 2 - 10,000Charitable activities 3 - 10,287Investments 4 25,833 105,886Other income 5 2,717 -

Total income 28,550 126,173

Expenditure on:Charitable activities 6 10,090 44,109

Net income for the year/Net movement in funds 18,460 82,064

Fund balances at 1 April 2016 753,096 671,032

Fund balances at 31 March 2017 771,556 753,096

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

PORTSMOUTH AREA REGENERATION TRUST(LIMITED BY GUARANTEE)BALANCE SHEET AS AT 31 MARCH 2017

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2017 2016Notes £ £ £ £

Fixed assetsTangible assets 12 25,758 29,256Programme related investments 13 299 9,486

26,057 38,742

Current assetsDebtors falling due after one year 15 331,972 -Debtors falling due within one year 15 - 468,644Investments 16 220,000 220,000Cash at bank and in hand 201,364 75,272

753,336 763,916Creditors: amounts falling due within one year

17(7,837) (49,562)

Net current assets 745,499 714,354

Total assets less current liabilities 771,556 753,096

Income fundsUnrestricted funds 771,556 753,096

771,556 753,096

The accounts were approved by the Trustees on 3 July 2017

D'Arcy Myers (Chair) Hereward Drummond (Vice Chair)Trustee Trustee

Company Registration No. 03794640

PORTSMOUTH AREA REGENERATION TRUST(LIMITED BY GUARANTEE)NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017

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1 Accounting policies

Company informationPortsmouth Area Regeneration Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is East Wing, 1000 Lakeside, North Harbour, Portsmouth, Hampshire, PO6 3EN.

1.1 Accounting conventionThe accounts have been prepared in accordance with the charity's [governing document], the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable tocharities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The accounts have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The accounts are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The accounts have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The charity has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the charity as anindividual entity and not about the group.

1.2 Going concernAt the time of approving the accounts, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the accounts.

1.3 Charitable fundsUnrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts.

The board of trustees carefully monitor the application of those funds in accordance with the restrictions placed upon them.

There is no formal policy of transfer between funds or on the allocation of funds to designated funds, other than that described above.

Any other proposed transfer between funds would be considered on the particular circumstances.

1.4 Incoming resourcesIncome is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

PORTSMOUTH AREA REGENERATION TRUST(LIMITED BY GUARANTEE)NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)FOR THE YEAR ENDED 31 MARCH 2017

1 Accounting policies (Continued)

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Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Grants are credited as income in the year in which they are receivable. Grants received for specific purposes are accounted for as restricted funds. Grants are not recognised as receivable until all conditions for receipt have been complied with. Where donor imposed restrictions apply to the timing of related expenditure as a pre-condition for its use, the grant is deferred income until those restrictions are met.

Interest income is recognised on receipt.

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.

1.5 Resources expendedLiabilities are recognised on an accruals basis.

The policy for including items within the relevant activity categories of resources expended is to apply costs to the appropriate category where identified and to apportion overheads on an appropriate basis.

Charitable expenditure shall include all expenditure directly related to the objects of the charity. It also includes support and governance costs relating to the objects of the charity.

Governance costs comprise all costs attributable to ensuring the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit together, were relevant, with an apportionment of overhead and support costs.

1.6 Tangible fixed assetsTangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Computer equipment (including software) 10% - 33.33% Straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Impairment of fixed assetsAt each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).



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Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/(expenditure for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset isincreased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8 Cash and cash equivalentsCash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.

1.9 Financial instrumentsThe charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assetsBasic financial assets, which include loan interest, fees and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receiptsdiscounted at a market rate of interest.

Basic financial liabilitiesBasic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.



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Derecognition of financial liabilitiesFinancial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.10 Employee benefitsThe cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

2 Donations and legacies

2017 2016

£ £

Donation - 10,000

3 Charitable activities

Loan Management

Total 2016

£ £ £

Services provided under contract - - 4,510Customer interest - - 5,777

- - 10,287


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4 Investments

2017 2016

£ £

Income from unlisted investments 25,833 105,622Interest receivable - 264

25,833 105,886

Investment income includes loan interest from subsidiary undertaking of £10,833 (2016: £4,750) and a gift aid payment of £15,000 (2016: £100,872),

5 Other income

2017 2016

£ £

Other income 2,717 -


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6 Charitable activities

Loan Management

Total 2016

£ £ £

Staff costs 9,835 9,835 27,794Depreciation and impairment 3,497 3,497 5,718Bad debts recovered (7,387) (7,387) (1,370)

5,945 5,945 32,142

Share of support costs (see note 8) 1,272 1,272 9,567Share of governance costs (see note 8) 2,873 2,873 2,400

10,090 10,090 44,109

Analysis by fundUnrestricted funds 10,090 10,090

10,090 10,090

For the year ended 31 March 2016Unrestricted funds 44,109 44,109

44,109 44,109

7 Description of charitable activities

Loan ManagementThe sole charity activity is to provide fairly priced loans to those people and organisations who cannot access the mainstream banks.


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8 Support costsSupport

costsGovernance

costs2017 2016 Basis of allocation

£ £ £ £

Travel & Subsistence costs

- - - 2,186 All charitable activityProfessional fees 1,034 - 1,034 3,745 All charitable activityAdministration expenses 173 - 173 1,396 All charitable activityIT expenses - - - 60 All charitable activityPremises costs - - - 744 All charitable activityInterest and charges 65 - 65 387 All charitable activitySubscription costs - - - 1,049 All charitable activity

Audit fees - 2,873 2,873 2,400 Governance

1,272 2,873 4,145 11,967

Analysed betweenCharitable activities 1,272 2,873 4,145 11,967

The Trustee's consider all support and governance costs should be allocated to the charitable activates of the charity.

Governance costs includes payments to the auditors of £2,873 (2016- £2,400) for audit fees.

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year. No trustees were reimbursed for expenses during the year. (2016: One trustees was reimbursed £316 for travel expenses).

The charity maintains insurance policies on behalf of all the trustees against liability arising from negligence, breach of duty and breach of trust in relation to the charity.


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10 Employees

Number of employeesIn total 8 members of staff are employed across the group of companies.

The average monthly number employees during the year was:2017 2016

Number Number

Administration 1 1

Employment costs 2017 2016£ £

Wages and salaries 11,388 24,918Social security costs (1,898) 1,767Other pension costs 345 1,109

9,835 27,794

There were no employees whose annual remuneration was £60,000 or more.

11 Taxation

As a registered charity, the company is exempt from income and corporation tax to the extent that its income and gains are applicable to charitable purposes only.

12 Tangible fixed assetsComputers

£CostAt 1 April 2016 44,273

At 31 March 2017 44,273

Depreciation and impairmentAt 1 April 2016 15,018Depreciation charged in the year 3,497

At 31 March 2017 18,515

Carrying amountAt 31 March 2017 25,758

At 31 March 2016 29,256


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13 Programme related investmentsEquity

investment£

At 1 April 2016 9,485Recovered amounts (9,186)

At 31 March 2017 299

The investment relating to Joint Venture Social Enterprise Limited who offer expertise and support for parish development projects was recovered during the year.

14 Financial instruments 2017 2016£ £

Carrying amount of financial assetsDebt instruments measured at amortised cost 551,972 688,155

Carrying amount of financial liabilitiesMeasured at amortised cost 3,232 45,260

15 Debtors2017 2016

Amounts falling due within one year: £ £

Amounts due from subsidiary undertakings - 468,155Prepayments and accrued income - 489

- 468,644

2017 2016Amounts falling due after more than one year: £ £

Amounts due from subsidiary undertakings 331,972 -

Total debtors 331,972 468,644

16 Current asset investments2017 2016

Notes £ £

Loans to subsidiaries 19 220,000 220,000

Current asset investment relates to intercompany loans to the subsidiary Portsmouth Area Regeneration Trust (Guarantee) Limited.


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17 Creditors: amounts falling due within one year2017 2016

£ £

Other taxation and social security 4,605 4,302Trade creditors - 74Amounts due to associate undertakings - 39,251Other creditors - 2,718Accruals and deferred income 3,232 3,217

7,837 49,562

18 Related party transactions

The following amounts were owed by the Charity at the reporting end date:

Amounts owed to related parties

2017 2016£ £

Portsmouth Area Regeneration Trust (IPS) Limited - 39,251

The following amounts were owed to the Charity at the reporting end date:



2017 2016Balance Net Balance Net

£ £ £ £

Portsmouth Area Regeneration Trust (Guarantee) Limited 551,972 551,972 688,155 688,155

551,972 551,972 688,155 688,155

The charity is acting as guarantor on a funding facility available to Portsmouth Area Regeneration Trust (Guarantee) Limited from Esmee Fairbairn Foundation of £100,000.


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19 Subsidiaries

These financial statements are separate company financial statements for Portsmouth Area Regeneration Trust (Guarantee) Limited (Company number 03977373).

Separate company financial statements are required to be prepared by law. Consolidated financial statements are not prepared as the group is small.

Details of the charity's subsidiaries at 31 March 2017 are as follows:

Name of undertaking and country of Nature of business Class of % Heldincorporation or residency shareholding Direct Indirect

Portsmouth Area Regeneration Trust (Guarantee) Limited

England Loan management Limited by guarantee

100.00 -

The aggregate capital and reserves and the result for the year of subsidiaries excluded from consolidation was as follows:

Name of undertaking Profit/(Loss) Capital and Reserves

Portsmouth Area Regeneration Trust (Guarantee) Limited 21,967 86,517

The financial year end of Portsmouth Area Regeneration Trust (Guarantee) Limited is 31 March 2017 which saw income of £361,818 (2016: £391,771) and expenditure of £316,059 (2016: £251,887).

20 Auditors' Ethical Standards

The relevant circumstances requiring disclosure in accordance with the requirements of APB EthicalStandard - Provisions Available for Small Entities are that, in common with many charities of our size and nature we use our auditors to assist with the preparation of the accounts.

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