2021-03-31-accounts

Company number: 2940712 Charity Number: 1040713

Community Housing and Therapy

Report and financial statements For the year ended 31 March 2021

Community Housing and Therapy

Contents

For the year ended 31 March 2021

Reference and administrative information ......................................................................................................... 1 Trustees’ annual report ...................................................................................................................................... 2 Independent auditor’s report ............................................................................................................................ 11 Statement of financial activities (incorporating an income and expenditure account) ..................................... 15 Balance sheet .................................................................................................................................................. 16 Statement of cashflows………………………………………………………………………………………………. 17 Notes to the financial statements .................................................................................................................... 18

Community Housing and Therapy

Reference and administrative information

For the year ended 31 March 2021

Company number 2940712 Charity number 1040713 Registered office and operational address Unit WG10 Vox Studios 1-45 Durham Street London SE11 5JH Trustees The trustees, who are also directors under company law, who served during the year up to the date of this report were as follows: Rev George Bush Dean James CBE Lynsey Rowe Katrina Liao (Treasurer) Michael Watson Lisa Johnson (resigned 19 April 2021) Sebastian Oram Laura Chesham (appointed 26 July 2021) Stephen Riley (appointed 26 July 2021) Principal staff Peter Cockersell MSc DPsych FRSA Chief Executive Bankers Lloyds TSB Bank PLC 10 Hanover Square London WIS IHJ Solicitors Wilsons Law Alexandra House St Johns Street Salisbury SP1 2SB Auditor Sayer Vincent LLP Chartered Accountants and Statutory Auditors Invicta House 108-114 Golden Lane LONDON EC1Y 0TL

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Community Housing and Therapy

Trustees’ annual report

For the year ended 31 March 2021

The trustees present their report and the audited financial statements for the year ended 31 March 2021.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Objectives and activities

Purposes and aims

Community Housing and Therapy's objectives are set out in the objects contained in the charity’s memorandum of association. We work for the benefit of the public by treating people experiencing mental illhealth and emotional distress. We provide care, support and psychotherapy within residential accommodation, in which the living environment itself is therapeutic, to enable beneficiaries to make changes in their life in order to engage with society in a way they find more fulfilling.

Our projects welcome people from all backgrounds. The charity operates a thorough and structured needs assessment to determine if a referral will benefit from the service we offer. We are committed to a working environment that is free from any form of discrimination on the grounds of colour, race, ethnicity, religion, sex, sexual orientation or disability.

The trustees review the aims, objectives and activities of the charity each year. This report looks at charity’s achievements and outcomes in the reporting period. The trustees report the success of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. The review also helps the trustees ensure the charity's aims, objectives and activities remained focused on its stated purposes.

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set.

Strategic report

Key Achievements:

We:

• treated 84 Clients during the course of this year

• admitted 23 new clients into its therapeutic services

• over half of those who moved on went to lower-support or independent accommodation

• successfully managed our communities through the pandemic with no onward transmission of the few residents or staff testing positive for covid-infection; we maintained PPE levels, and varied our guidance and practice as required to keep our residents safe at different stages of the pandemic. We had no residents hospitalised due to covid throughout the pandemic.

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Community Housing and Therapy

Trustees’ annual report

For the year ended 31 March 2021

• secured a total of charitable fund for £46k

• acquired a new supported living service and training centre in Richmond

• supported beneficiaries’ continued involvement in the charity’s operations

• presented a video of our residents and staff discussing ‘therapeutic communities through the pandemic’ at the virtual ‘Windsor Conference’ of therapeutic communities

• one of our communities participated in an international discussion group with residents and staff of therapeutic communities in three other countries via INDTC

• successfully moved our training to online only

The charity has worked to the following targets (in bold) in the past year:

To develop our core therapeutic services

This year was a difficult year with all of our services impacted by the pandemic. We had to adapt and run a modified therapeutic programme with few or no outside activities; internal activities were also constrained by staff availability as we had at times up to 20% of our staff either sick or isolating.

We managed to find and then maintain the necessary levels of PPE throughout the pandemic despite no statutory assistance for the first three months, and we had no onward infections in our communities despite twice having people discharged covid-positive to the community from hospital. We managed to attract local authority and charitable funding to make up some of the costs of PPE and of additional agency staff where we were unable to meet rota requirements with permanent staff.

Unfortunately we had to close the Crisis service at LGH for the duration of the pandemic because of the limited availability and slow turnaround of testing; this service resumed in February 2021.

CHT’s three residential services continued to receive a high number of referrals from established relationships with local authorities and NHS trusts, and average occupancy was high until the middle of the year. Unfortunately Croydon posted a ‘provider concerns’ notice about LGH in September 2020, and placed an embargo on new referrals; they agreed to lift the embargo in January 2021 following improvements to reporting and changes to staffing that we made, but they did not change their website until March 2021. This seriously affected occupancy levels, compounded by the crisis service being closed. The provider concerns status continues pending a new CQC inspection.

There was also a problem at Mount Lodge with CQC classifying our registration for nursing and personal care as ‘dormant’ because we do not routinely provide either, but having not yet processed our application for registration under TDDI. This is ongoing as we are still waiting for CQC to process the TDDI applications.

Despite these obstacles, and low occupancy in the latter part of the year, CHT posted a surplus of around £73k for 2020-2021.

Also despite these obstacles, CHT treated 84 clients during the reporting period, 14 moved out, 7 beneficiaries stepping down to lower support accommodation.

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Community Housing and Therapy

Trustees’ annual report

For the year ended 31 March 2021

We managed to transpose our entire diploma training to online instead of in-person courses, which required the modification of all the courses; and we also continued to deliver training externally to one local authority, online rather than in-person. However, the pandemic has meant that our external training provision, and therefore income, in this financial year were significantly down on the previous year.

On 24[th] April 2020 CHT acquired a 10-bedroom house in Richmond, partly donated by its owner Elly Jansen OBE, and partly purchased with an increased loan from Charity Bank. This will provide CHT with another small supported living community for adults (18+) and a training centre: because of the pandemic, opening the new service was delayed but the first residents moved in in April 2021; the training centre has begun to be used from September 2021.

To develop our international network

INDTC held a successful virtual international conference attracting attendees from as far as Japan and Argentina, Canada and India, which was co-facilitated by CHT.

We also held, in partnership with INDTC, a successful event in which the residents and staff of four communities, including our LGH community, in four different countries met and swopped ideas and experiences.

To maintain high quality staff

We are pleased to say that we had very high staff retention throughout the pandemic and the staff showed a tremendous commitment in coming in on public transport and working through some very difficult time and conditions. We paid the frontline staff a ‘thank you bonus’ of £25 per week throughout the pandemic.

We also reviewed the roles of different staff and have begun the process of implementing clarifications of the specific tasks each type of staff is responsible for, and, following a democratic process, we renamed the Recovery Practitioners as Therapeutic Support Workers. We also changed our remuneration bandings to reflect better individual levels of experience and seniority.

Additionally, we successfully piloted the use of closely supervised trainee therapists and this will now be rolled out across the organisation in 2021-2022.

Financial review

Total income for the year amounted to £3.1m. This was 13% above from the previous year, we reported a surplus of £73k after depreciation and interest.

The trustees confirm that to the best of their knowledge, there is no information relevant to the audit of which the auditor is unaware and the trustees also confirm that they have taken all necessary steps to ensure that they themselves are aware of all relevant audit information and that this information has been communicated to the auditor.

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Community Housing and Therapy

Trustees’ annual report

For the year ended 31 March 2021

The trustees maintain an extremely close oversight of both costs and cash flow. The trustees meet five times a year and review the finances by means of management accounts, which are presented to the Chair and Treasurer each month.

Principal risks and uncertainties

The risk register, in which potential risks have been identified, is divided into the following categories:

• Clinical standards

• Personnel

• Income streams

• Demand for services

• Infrastructure

• Public relations

• Finance and administration

• Fraud

• Other (including development)

The risks are divided into low, medium and high depending on the likelihood of occurrence and their potential impact on the charity. Each risk is followed by an appropriate action aimed at minimizing the risk. The trustees review the risk register annually.

The following key risks were identified:

▪ Fee Levels and Cash Flow

• Cuts in Public Budgets have in the past resulted in a reduction in fees. It is essential to ensure that fee levels achieved are sufficient to meet operational costs.

• This year we have again managed to increase fee levels negotiated on new spot purchase arrangements and have negotiated a fee uplift on some existing contracts.

• CHT has a strategy of increasing capacity through the development of new services, spreading overheads and increasing potential surpluses.

• Our cash in hand increased as a result of increased occupancy, and cashflow remained steady.

▪ Referrals

• Sustainable levels of referrals of new clients are critical. CHT aims to mitigate this risk by:

• Diversifying its service model to include younger clients, placements for whom are in extreme short supply nationally; moving towards a treatment rather than a long-term care model, with registration as a treatment provider rather than a care provider; facilitating more referrals at higher fee levels.

• Improving marketing to widen its portfolio of referral agencies.

• Forming strategic alliances with a range of partner agencies to enable CHT to acquire new properties and services.

• Recruiting to a new Referrals Coordinator role

• Occupancy was high for the majority of 2020-2021, but with a significant drop in the second half of the year, largely due to the inability to take in new referrals at LGH.

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Community Housing and Therapy

Trustees’ annual report

For the year ended 31 March 2021

The charity has a risk strategy comprising:

• Regular, weekly oversight of occupancy and cashflow levels by CEO.

• Fortnightly meetings on referrals and occupancy between Service Managers and the Senior staff

• The establishment of a risk register.

• Annual Review of the risks the charity faces.

• Introduction of systems to mitigate the risks identified and minimize any potential impact on the charity should any risks materialize.

The most significant risk to CHT in 2020-2021 was the coronavirus pandemic, and then the suspension of referrals into LGH. CHT has robust risk management measures and managed to acquire a good supply and stock of personal protective equipment (PPE) as well as installing a heightened hygiene regime; we have continuously updated our internal guidance in line with Government, public health and NHS guidance and we have had no known cases of onward transmission within our communities. We have had several members of staff and a few residents with confirmed covid-19 but all have recovered; one member of agency staff required hospital treatment but has also recovered. We have over 90% double vaccination in both staff and resident groups now, and all new staff must be double-vaccinated by law. Coronavirus continues to be a risk for both our staff and our residents, and we continue to mitigate the risk through good hygiene practices including additional thorough night cleaning, stocks of PPE, reduced staff travel, testing as much as possible, reducing inter-community interactions, and continuous audit and awareness-raising.

The risk to LGH has now been relieved as we are once again able to take in referrals and the occupancy is increasing; as of February 2021 we have also reopened the crisis/respite beds.

Reserves policy and going concern

We maintain our day-to day cash balance at around three times monthly outgoings. It is our belief that, with continued close and diligent management, and a focus on diversifying our services, improving our marketing, and diversifying our funding streams, we can operate successfully in what continues to be a difficult environment.

The reserves policy of the trustees is as follows:

• 1) To maintain, as a minimum, reserves sufficient to fund day to day business commitments: £250k. 2) To have reserves, on top of the above minimum, sufficient to provide cover in the event of shortfalls arising from normal trading variations: £100k.

• 3) To grow new development reserves to allow further capital or other new projects.

The trustees believe that the level of reserves is £392k at the end of this year.

As a going concern, CHT’s services for 2020/21 were budgeted to operate at a breakeven; however we ultimately had a surplus of £73k.

Our strategic objective is to increase our reserves to 25% of our turnover: we anticipate breaking even in 2020-2021. At least 50% of any surplus will be put into our reserves until our strategic objective is met. Our strategic objective is to increase our reserve to £750k.

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Community Housing and Therapy

Trustees’ annual report

For the year ended 31 March 2021

Plans for the future

Plans for 2021-2022 and further years are:

• To modernise our therapeutic communities so that they offer highly relevant care, treatment and recovery services.

• To fully implement our new quality assurance system.

• To keep all our resident and clinical records in an NHS-level secure electronic system.

• To change the CQC registration of individual services to Treatment of Disease, Disorder and Injury.

• To manage our services to the highest possible standard, both financially and clinically.

• To achieve national accreditation of our Diploma training course.

• To expand the number of supported living and community services in response to demand.

• To establish new partnerships with housing providers and other agencies.

• To raise the profile of CHT through enhanced marketing.

• To take forward the planned growth of the charity through partnerships, improved marketing, redefinition of our work, and a diversification of funding streams, client base, and services offered.

• To expand our charitable fundraising capacity.

The impact of the coronavirus pandemic on CHT has not threatened our viability as an ongoing concern; on the contrary, the impact has been in some ways beneficial.

• There has been an increase in referrals and speed of funding and move-in decisions because of a desire from the NHS to reduce the number of people in hospitals.

• Vulnerable staff were placed on the furlough scheme, and their costs were recovered; they have all returned to work.

• Costs of employing additional agency staff have been covered by grants from various bodies such as the London Response Centre, and have now been taken on by local authorities.

• Costs for additional PPE have also been covered by grants from various bodies such as the London Response Centre and by local authorities.

• Travel and associated costs have reduced because of restrictions in staff movement as risk mitigation during the pandemic.

• We have reduced the amount of office space we need because of reduced staff travel and less inperson meetings, which has reduced our overheads.

Structure, governance and management

The organisation is a charitable company limited by guarantee, incorporated on the 15[th] of June 1994 and registered as a charity on the 9[th] of September 1994.

The company was established under a memorandum of association which established the objects and powers of the charitable company and is governed under its articles of association.

The trustees are planning to change the charity’s articles of association in the next financial year to reflect changes in the model of care and to bring them more up to date. Charity Commission support for these changes will be obtained before any changes are made; they will then be notified to Companies House. All trustees give their time voluntarily and receive no benefits from the charity.

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Community Housing and Therapy

Trustees’ annual report

For the year ended 31 March 2021

Appointment of trustees

Patrons and Trustees are recruited by personal contact through the business of the charity or through the trustees, or by advertising in appropriate media.

Where the board identifies a skill gap it recruits trustees to fill it. Potential trustees are suggested to the Board, an interviewing panel is arranged and information such as annual report, annual accounts and publicity leaflets are sent. After a positive interview potential trustees are invited to visit one of the residential projects and to attend a Board meeting after which trustees decide whether or not to appoint. The new trustee is then invited to join the Board. Following this there is an induction and then further information on the activities of the charity will be available through Board meetings, further visits and meetings with staff and through attendance at conferences which the charity organizes from time to time.

We recruited two new Trustees in July 2021 and we hope to recruit an identified new Psychiatrist to the Board in 2022.

Related parties and relationships with other organisations

Fairhall Court and George Dooley House are supported living services run in partnership with Central and Cecil Housing Trust (CCHT). These services provide supported housing for up to sixteen clients. CHT is responsible for providing support and therapeutic services, and CCHT maintain responsibility for the housing management.

Onkar House is leased from a private owner, and housing management is done by Thinkcare Housing Ltd; CHT provides the support and manages the day-to-day activities and maintenance of the property.

We are working with pro-bono consultants on the accreditation of our Diploma in Relational Practice in Mental Health.

We are in conversation with other organisations, notably Housing Associations and Charitable Trusts, about other potential partnership working that might benefit CHT.

Fundraising compliance

CHT does not engage in public fundraising and does not use professional fundraisers or commercial participators. CHT nevertheless observes and complies with the relevant fundraising regulations and codes. During the year there was no non-compliance of these regulations and codes and CHT received no complaints relating to its fundraising practice.

Remuneration policy for key management personnel

CHT aims to benchmark all salaries against equivalent size organisations in the charity sector. Pay is reviewed annually; increments for individual staff are within pre-set pay bands and according to performance and skill criteria. CHT is compliant with new national pension legislation, and living wage agreements.

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Community Housing and Therapy

Trustees’ annual report

For the year ended 31 March 2021

Statement of responsibilities of the trustees

The trustees (who are also directors of Community Housing and Therapy for the purposes of company law) are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

• Select suitable accounting policies and then apply them consistently.

• Observe the methods and principles in the Charities SORP.

• Make judgements and estimates that are reasonable and prudent.

• State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements.

• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

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

In so far as the trustees are aware:

• There is no relevant audit information of which the charitable company’s auditors are unaware.

• The trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the charity guarantee to contribute an amount not exceeding £10 each to the assets of the charity in the event of winding up. The total number of such guarantees at 31 March 2021 was 7 (2020:8). The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Auditors

Sayer Vincent LLP were re-appointed as the charitable company's auditors during the year and have expressed their willingness to continue in that capacity.

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Community Housing and Therapy

Trustees’ annual report

For the year ended 31 March 2021

The trustees’ annual report has been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

The trustees’ annual report has been approved by the trustees on 27 September 2021 and signed on their behalf by

Katrina Liao

Treasurer

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Independent auditors’ report

To the members of

Community Housing and Therapy

Independent auditor’s report to the members of Community Housing and Therapy

Opinion

We have audited the financial statements of Community Housing and Therapy (the ‘charitable company’) for the year ended 31 March 2021 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

• Give a true and fair view of the state of the charitable company’s affairs as at 31 March 2021 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

• Have been prepared in accordance with the requirements of the Companies Act 2006

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on Community Housing and Therapy’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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Independent auditors’ report

To the members of

Community Housing and Therapy

Other Information

The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

• The information given in the trustees’ annual report, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• The trustees’ annual report, has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report. We have nothing to report in respect of the following matters in relation to which 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 financial statements 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; or

• The directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ annual report and from the requirement to prepare a strategic report.

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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Independent auditors’ report

To the members of

Community Housing and Therapy

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

• We enquired of management, which included obtaining and reviewing supporting documentation, concerning the charity’s policies and procedures relating to:

• Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;

• Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud;

• The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.

• We inspected the minutes of meetings of those charged with governance.

• We obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the charity from our professional and sector experience.

• We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit.

• We reviewed any reports made to regulators.

• We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations.

• We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.

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Independent auditors’ report

To the members of

Community Housing and Therapy

• In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of noncompliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities . This description forms part of our auditor’s report.

Use of our report

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. 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 auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Noelia Serrano (Senior statutory auditor) 4 October 2021

for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

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Community Housing and Therapy

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2021

Note Income from: 2 Other Income 3 Reconciliation of funds: Net movement in funds Raising funds Total expenditure Charitable activities Care Training Net income/ (expenditure) for the year Transfers between funds Total funds brought forward Total funds carried forward Donations and legacies Charitable activities Care Training Total income Expenditure on:	Unrestricted £ 7,844 2,970,428 1,507 133,564	Restricted £ 35,613 - - -	2021 Total £ 43,457 2,970,428 1,507 133,564	Unrestricted £ 4,000 2,748,682 15,825 11,247	2020 Restricted Total £ £ 4,094 8,094 - 2,748,682 - 15,825 - 11,247 4,094 2,783,848 4,094 23,507 - 2,828,015 - 17,700 4,094 2,869,222 - (85,374) - - - (85,374) 220,348 2,449,579 220,348 2,364,205
	3,113,343	35,613	3,148,956	2,779,754
	10,380 3,022,158 7,414	35,613 - -	45,993 3,022,158 7,414	19,413 2,828,015 17,700
	3,039,952	35,613	3,075,565	2,865,128
	73,391 -	- -	73,391 -	(85,374) -
	73,391 2,143,857	- 220,348	73,391 2,364,205	(85,374) 2,229,231
	2,217,248	220,348	2,437,596	2,143,857

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 15 to the financial statements.

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Community Housing and Therapy

Company no. 2940712

Balance sheet

As at 31 March 2021

Note Fixed assets: 9 Current assets: 10 Liabilities: 11 12 15 Total unrestricted funds Debtors The funds of the charity: Creditors: amounts falling due within one year Net current assets Total net assets Creditors: amounts falling due after one year Total assets less current liabilities Restricted income funds Unrestricted income funds: General funds Total charity funds Cash at bank and in hand Tangible assets	£ 441,832 445,104	2021 £ £ 3,999,835 3,999,835 364,555 352,417 716,972 (371,823) 392,391 4,392,226 (1,954,630) 2,437,596 220,348 2,143,857 2,217,248 2,437,596	2020 £ 3,145,837
			3,145,837 345,148
	886,936 (494,546)
	2,217,248
			3,490,985 (1,126,780)
			2,364,205
			220,348 2,143,857
			2,364,205

Approved by the trustees on 27 September 2021 and signed on their behalf by

Katrina Liao Treasurer

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Community Housing and Therapy

Statement of cash flows

For the year ended 31 March 2021

Repayments of borrowing Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year Net cash provided by / (used in) financing activities Change in cash and cash equivalents in the year Cash in flows from new borrowing Cash flows from operating activities Cash flows from financing activities: Net cash (used in) investing activities Net cash provided by / (used in) operating activities Cash flows from investing activities: Payments for Furniture and Leasehold improvement Net income/ (expenditure) for the reporting period (as per the statement of financial activities) Depreciation charges (Increase) in trade debtors Increase in trade creditors	£ £ £ £ 73,391 (85,374) 96,691 93,358 (77,277) (63,138) 101,914 10,962 194,719 (44,193) (950,692) (24,590) (950,692) (24,590) (1,340) (28,842) 850,000 - 848,660 (28,842) 92,687 (97,625) 352,417 450,042 445,104 352,417 2021 2020
	(950,692)
	(1,340) 850,000

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Community Housing and Therapy

Notes to the financial statements

For the year ended 31 March 2021

• 1 Accounting policies

a) Statutory information

• Community Housing and Therapy is a charitable company limited by guarantee and is incorporated in the United Kingdom. The registered office address and principal place of business is Unit WG10 Vox Studios, 1-45 Durham Street, London, SE11 5JH.

b) Basis of preparation

The financial statements have been prepared in accordance with 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)- (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

• c) Public benefit entity

The charitable company meets the definition of a public benefit entity under FRS 102.

• d) Going concern

• After assessing the impact of the coronavirus pandemic on CHT so far, the trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern. Further detail is provided in the trustees' annual report.

e) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Grants and donations are recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

f) Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

g) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

• Costs of raising funds relate to the costs incurred by the charitable company in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose

• Expenditure on charitable activities includes the costs of provision of residential accommodation, care and support for people experiencing mental health problems or emotional distress undertaken to further the purposes of the charity and their associated support costs

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

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Community Housing and Therapy

Notes to the financial statements

For the year ended 31 March 2021

• 1 Accounting policies (continued)

h) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity.

Support and governance costs are re-allocated to each of the activities based on an estimate of the amount of staff time or usage attributable to each activity.

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

i) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

j) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £1,500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Where fixed assets have been revalued, any excess between the revalued amount and the historic cost of the asset will be shown as a revaluation reserve in the balance sheet.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

	Land	nil
	Freehold buildings	50 years
	Fixtures and fittings	5 years
	Leasehold improvements	5 years

k) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

l) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Cash balances exclude any funds held on behalf of service users.

m) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

n) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

o) Pensions

The charitable company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charitable company in an independently administered fund. The pension cost charge represents contributions payable under the scheme by the charitable company to the fund. The charitable company has no liability under the scheme other than for the payment of those contributions.

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Community Housing and Therapy

Notes to the financial statements

For the year ended 31 March 2021

2 Donations and legacies

Donations and legacies
Unrestricted £ 4,000 - - - - - - - 3,844 7,844 Edward Gostling Foundation Donation from City of London Postcode Local Trust Other donations Total The Percy Bilton Charity Maudsley charity Fund from LB of Waltham Forest Souter Charitable Trust Vernon N Ely Charitable Settlement	£ - - - - - 10,000 14,062 11,201 350 35,613 Restricted	2021 Total £ 4,000 - - - - 10,000 14,062 11,201 4,194 43,457	Unrestricted £ 4,000 - - - - - - - - 4,000	£ - 409 2,000 686 999 - - - - 4,094 Restricted	2020 Total £ 4,000 409 2,000 686 999 - - - -
					8,094

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Community Housing and Therapy

Notes to the financial statements

For the year ended 31 March 2021

3a Analysis of expenditure (current year)

Staff costs (Note 5) Food and consumables Lights and heat Furniture, equipment and maintenance Accounting and Audit fees Legal and professional Travel and motor Printing, postage and stationery Rent and rates Telephone and insurance Loan interest Bad debts Staff training, conference and welfare General Consultancy Depreciation Support costs Governance costs Total expenditure 2021 Total expenditure 2020	Cost of raising funds £ 24,264 - - 18,485 - - - - - - - - - 3,244 - - 45,993 - - 45,993 23,507	Charitable activities	Charitable activities	Governance costs £ 41,999 - - - 10,800 15,334 - - - - - - - - - - 68,133 - (68,133) - -	Support costs £ 468,842 591 2,636 4,105 - - 21,991 3,146 68,001 9,815 - - - 2,662 2,760 - 584,549 (584,549) - - -	2021 Total £ 2,300,446 81,171 60,144 117,031 10,800 15,334 37,820 12,849 141,366 71,386 65,657 6,761 7,414 47,935 2,760 96,691 3,075,565 - - 3,075,565 2,869,222	2020 Total £ 2,077,792 88,586 52,251 98,018 10,800 21,645 68,524 14,350 162,689 62,896 47,039 9,167 17,700 19,083 25,324 93,358
		Care costs £ 1,765,342 80,580 57,508 94,441 - - 15,829 9,703 73,365 61,571 65,657 6,761 - 42,029 - 96,691 2,369,476 584,549 68,133 3,022,158 2,828,015	Training costs £ - - - - - - - - - - - - 7,414 - - - 7,414 - - 7,414 17,700
							2,869,222 - -
							-
							-

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Community Housing and Therapy

Notes to the financial statements

For the year ended 31 March 2021

3b Analysis of expenditure (prior year)

Staff costs (Note 5) Food and consumables Lights and heat Furniture, equipment and maintenance Accounting and Audit fees Legal and professional Travel and motor Printing, postage and stationery Rent and rates Telephone and insurance Loan interest Bad debts Staff training, conference and welfare General Consultancy Depreciation Support costs Governance costs Total expenditure 2020	Cost of raising funds £ 19,323 2,987 - 475 - - - 722 - - - - - - - - 23,507 - - 23,507	Charitable activities	Charitable activities	Governance costs £ 40,722 - - - 10,800 21,645 - - - - - - - - - - 73,167 54,387 (127,554) -	Support costs 2020 Total £ £ 350,108 2,077,792 4,646 88,586 871 52,251 5,562 98,018 - 10,800 - 21,645 39,194 68,524 5,254 14,350 85,323 162,689 10,670 62,896 - 47,039 - 9,167 - 17,700 4,528 19,083 25,324 25,324 - 93,358 531,480 2,869,222 (531,480) - - - - 2,869,222
		Care costs £ 1,667,639 80,954 51,380 91,981 - - 29,330 8,374 77,366 52,226 47,039 9,167 - 14,555 - 93,358 2,223,368 477,093 127,554 2,828,015	Training costs £ - - - - - - - - - - - - 17,700 - - - 17,700 - - 17,700

22

Community Housing and Therapy

Notes to the financial statements

For the year ended 31 March 2021

4 Net income / (expenditure) for the year

This is stated after charging:

This is stated after charging:
	2021	2020
	£	£
Depreciation	96,691	93,358
Interest payable	65,657	47,039
Operating lease rentals:
Property	104,613	125,405
Other	6,720	5,725
Auditors' remuneration (excluding VAT):
Audit	9,800	9,000

5 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

Social security costs Other staff costs Employer’s contribution to defined contribution pension schemes Salaries and wages	2021 2020 £ £ 1,702,296 1,445,440 160,560 137,292 60,420 52,848 377,170 442,213 2,300,446 2,077,792

The following number of employees received employee benefits (excluding employer pension costs) during the year between:

between:
	2021	2020
	No.	No.
£70,000 - £79,999	-	-
£80,000 - £89,999	1	1
£90,000 - £99,999	-	-
£100,000 - £109,999	-	-

The total employee benefits including pension contributions of the key management personnel were £221,892 (2020 £236,774).

The charity trustees were not paid or received any other benefits from employment with the charity in the year (2020: £nil). No charity trustee received payment for professional or other services supplied to the charity (2020: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling nil (2020: nil).

6 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was as follows:

Charitable activities Support	2021 2020 No. No. 53.0 50.0 4.0 3.0 57.0 53.0

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Community Housing and Therapy

Notes to the financial statements

For the year ended 31 March 2021

7 Related party transactions

Intapsych Ltd is a company co-owned by CEO and his partner. This company provided a training on suicidal risk reduction for Lilias Giles House staff. The cost of the transaction was £500 (2020: 1,300).

Trustee - Katrina Liao donated £350 towards the purchase of PPE equipment. There were no other donations from related parties in the year (2020:£nil).

8 Taxation

The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

9 Tangible fixed assets

Tangible fixed assets
Cost or valuation Depreciation Net book value Additions in year At the start of the year At the end of the year At the start of the year Charge for the year At the end of the year At the start of the year At the end of the year	Freehold buildings £ 4,083,965 932,518 5,016,483 979,304 81,679 1,060,983 3,955,500 3,104,661	Furniture, fittings and equipment £ 31,798 9,672 41,469 23,589 2,643 26,232 15,237 8,209	Leasehold improvements £ 59,894 8,500	Total £ 4,175,657 950,690
			68,394	5,126,346
			26,927 12,369	1,029,820 96,691
			39,296	1,126,511
			29,098	3,999,835
			32,967	3,145,837

All of the above assets are used for charitable purposes.

10 Debtors

Trade debtors Other debtors Accrued income Prepayments	2021 2020 £ £ 196,473 176,742 42,770 66,897 2,177 44,603 200,411 76,313 441,832 364,555

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Community Housing and Therapy

Notes to the financial statements

For the year ended 31 March 2021

11 Creditors: amounts falling due within one year

11 Creditors: amounts falling due within one year
12 Bank loans and overdraft Accruals Other creditors Due between two to five years Bank loans Due between one to two years Trade creditors Creditors: amounts falling due after one year Due after five years	2021 £ 50,954 50,940 254,230 138,421	2020 £ 30,145 63,781 156,331 121,567
	494,546	371,823
	2021 £ 1,954,630	2020 £ 1,126,780
	1,954,630	1,126,780
	57,278 183,611 1,713,741	31,373 101,881 993,526
	1,954,630	1,126,780

Interest is payable at 3.25% above the base rate.

The company has one loan from Charity Bank and the loan is secured by a charge on the freehold properties with a net book value of £3,995,500.

13 Pension scheme

The company operates a group defined contribution scheme for all employees, the assets of which are held by Royal London. At 31 March 2021 £8,541.54 was owed to the pension company (2020: £8,278.61). The pension charge for the year was £60,420.1(2020: £52,847.66).

14a Analysis of net assets between funds (current year)

Long term liabilities Net assets at the end of the year Tangible fixed assets Net current assets	General unrestricted £ 3,779,487 392,391 (1,954,630) 2,217,248	Restricted Total funds £ £ 220,348 3,999,835 - 392,391 - (1,954,630) 220,348 2,437,596

14b Analysis of net assets between funds (prior year)

Long term liabilities Net current assets Net assets at the end of the year Tangible fixed assets	General unrestricted £ 2,925,489 345,148 (1,126,780) 2,143,857	Restricted Total funds £ £ 220,348 3,145,837 - 345,148 - (1,126,780) 220,348 2,364,205

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Community Housing and Therapy

Notes to the financial statements

For the year ended 31 March 2021

• 15a Movements in funds (current year)

15a Movements in funds (current year)
Total restricted funds Total funds 15b Total restricted funds Total funds Souter Charitable Trust Maudsley charity Fund from LB of Waltham Forest Donation from City of London Postcode Local Trust Edward Gostling Foundation Movements in funds (prior year) The Percy Bilton Charity Kartina Liao Bridget Bordewich Bursary Fund General unrestricted funds: Restricted funds: Bridget Bordewich Bursary Fund General unrestricted funds: Restricted funds:	At 1 April 2020 £ 2,143,857 220,348 - - - - 220,348	Income & gains £ 3,113,343 - 10,000 14,062 11,201 350 35,613	Expenditure & losses £ (3,039,952) - (10,000) (14,062) (11,201) (350) (35,613)	Transfers between funds - - - - - - -	At 31 March 2021 £ 2,217,248 220,348 - - - - 220,348
	2,364,205	3,148,956	(3,075,565)	-	2,437,596
	At 1 April 2019 £ 2,229,231 220,348 - - - - 220,348	Income & gains £ 2,779,754 - 409 2,000 686 999 4,094	Expenditure & losses £ (2,865,128) - (409) (2,000) (686) (999) (4,094)	Transfers between funds - - - - - - -	At 31 March 2020 £ 2,143,857 220,348 - - - - 220,348
	2,449,579	2,783,848	(2,869,222)	-	2,364,205

As the purchase of Lilias Gillies' House will enable Community Housing and Therapy to increase its ability to support people with a diagnosis of bi-polar disorder, the trustees agreed that the Bridget Bordewich Bursary Fund would be used to part fund the purchase of the house. The situation will be reviewed periodically to ensure that the restriction of the funds is observed.

Edward Gostling Foundation- half of the fund was used for garden project in Highams lodge and the other half was spent on additional staffing cost during Covid-19 pandemic.

Donation from City of London - we received donation from City of London in two rounds. The fund received on the first round was for £4,062 and spent on PPE and tables. The second was fully spent on additional staffing cost during the Covid-19 pandemic.

Postcode Local Trust-the grant was used to build garden room in Mount lodge.

Katrina Liao- the grant used to cover part of PPE cost.

26

Community Housing and Therapy

Notes to the financial statements

For the year ended 31 March 2021

16 Operating lease commitments

The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:

Within one year Two to five years	2021 2020 £ £ 107,145 121,231 168,602 296,564 275,747 417,795 Property

17 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £10.

27