2022-03-31-accounts

Company number: 2940712 Charity Number: 1040713

Community Housing and Therapy

Report and financial statements For the year ended 31 March 2022

Community Housing and Therapy

Contents

For the year ended 31 March 2022

Reference and administrative information ......................................................................................................... 1 Trustees’ annual report ...................................................................................................................................... 2 Independent auditor’s report ............................................................................................................................ 10 Statement of financial activities (incorporating an income and expenditure account) ..................................... 14 Balance sheet .................................................................................................................................................. 15 Statement of cashflows………………………………………………………………………………………………. 16 Notes to the financial statements .................................................................................................................... 17

Community Housing and Therapy

Reference and administrative information

For the year ended 31 March 2022

Company number	2940712	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 (resigned February 2022)
	Michael Watson
	Sebastian Oram
	Lisa Johnson (resigned 19 April 2021)
	Laura Chesham (appointed 26 July 2021)
	Stephen Riley (appointed 26 July 2021)
	Laura Eeles(appointed 28 February 2022)
	Dr Sue Mizen (appointed 22nd April 2022)
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

1

Community Housing and Therapy

Trustees’ annual report

For the year ended 31 March 2022

The trustees present their report and the audited financial statements for the year ended 31 March 2022.

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 ill-health 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 81 Clients during the course of this year

• admitted 24 new clients into its therapeutic services

• Two-third of those who moved on went to lower-support or independent accommodation

• successfully managed our communities through the final severe phase of the pandemic and ensured the vaccination of all our staff in line with legislation. We had no residents hospitalised due to covid throughout the pandemic.

• re-opened the crisis/respite service at LGH

2

Community Housing and Therapy

Trustees’ annual report

For the year ended 31 March 2022

• published an online exhibition of residents’ art

• delivered a workshop on CHT’s ‘formulation’ approach to case management at the international online The Consortium for Therapeutic Communities (TCTC )conference

• co-presented a workshop on trauma-informed care at the Royal College of Psychiatrists’ international conference

• successfully moved our in-house training back to in-person as well as continuing to deliver some online trainings externally

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

To develop our core therapeutic services

This year continued to be difficult with all our services impacted by the pandemic, particularly in terms of staff sickness and absences due to self-isolation. However, we were able to resume most of our internal activities, especially in the second part of the year, and we could again welcome visitors and support external placements of, for example, trainee social workers, nurses and assistant psychologists.

Although Croydon lifted their ‘provider concerns’ notice about Lilias Gillies House (LGH) in June 2021 following improvements to reporting and changes to staffing that we made, this had a lasting impact on referrals and occupancy levels throughout the financial year 2021-2022; this was compounded by a ‘requires improvement’ rating from CQC which was only changed to ‘good’ following a re-inspection in June 2022 and as a result occupancy levels have only risen significantly in the second quarter of 2022. Referrals and occupancy were low across CHT during 2021-2022 and, although there are individual reasons for each service as outlined above for LGH, we believe there was also a downturn because so much management time was spent in managing staffing levels and the various impacts of the pandemic and the fluctuations in the legislation and guidance surrounding care services.

As a result of this widespread low occupancy throughout the year, CHT posted a deficit of £132k for 20212022.

Despite this, CHT treated 81 clients during the reporting period, 18 moved out, 12 of these stepping down to lower support accommodation. Sadly, two residents died during the year.

We returned our Diploma training programme to in-person from September 2021, but external training remained online and much more limited though we did deliver a series of trainings in-person to one housing association, including a special training day for their Heads of Service and Directors.

We collaborated with Your Life Your Story (YLYS) in an art and story-telling programme across all the communities which led to many new works of art on the walls of our services and the training centre and contributed to a book of writings and art to be published by YLYS; several of our residents are attending YLYS’ annual conference.

3

Community Housing and Therapy

Trustees’ annual report

For the year ended 31 March 2022

To develop our international network

CHT continued to play an active role into the development of International Network of Democratic Therapeutic Communities (INDTC) and facilitated a collaboration between INDTC and TCTC which led to the appointment as a Director of TCTC of one of the Directors of INDTC; Peter Cockersell is already on the Boards of both.

To maintain high quality staff

We are pleased to say that we continued to have good staff retention and that where we have needed to recruit we have had candidates of a high calibre. We have managed to recruit and retain many excellent staff over the year, though we also bade fond farewells to several very long-standing members of staff who have individually made decisions to move into new directions.

We reviewed our senior management and reduced the number of Senior Managers and Lead Psychotherapists and introduced the role of Lead Social Worker in readiness for full CQC registration for Treatment of Disease, Disorder or Injury (TDDI).

We expanded the use of trainee therapists to all the services and through this we were able to provide access to art and movement therapy groups to a wider range of our residents.

We also brought in some consultancy, Natalie Scales (a former employee) and Cause4 to assist us in developing a successful and sustainable fundraising capacity.

Financial review

Total income for the year amounted to £2.8m. This was 10% lower than the previous year, we reported a deficit of £132k 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.

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

4

Community Housing and Therapy

Trustees’ annual report

For the year ended 31 March 2022

• 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 decreased slightly as a result of decreased occupancy, but cashflow remained relatively 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.

  • Having occupancy and referrals as standing items on the agenda at all meetings of senior and frontline management

  • Occupancy was depressed for the majority of 2021-2022, with significant shortfall at LGH and widespread though smaller shortfalls elsewhere. Despite this, Fairhall increased its occupancy and Richmond House filled faster than budget after its opening

The charity has a risk strategy comprising:

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

• 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.

5

Community Housing and Therapy

Trustees’ annual report

For the year ended 31 March 2022

The most significant risks to CHT in 2021-2022 were the ongoing coronavirus pandemic, and the suspension of referrals into LGH and the wider drop in referrals across most of our services.

Reserves policy and going concern

We maintain our day-to day cash balance at around £400k. 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 level of reserves is £407k at the end of this year. Based on the reserve policy, the trustees believe that the reserve is sufficient to run the business.

As a going concern, CHT’s services for 2021/22 were budgeted to operate at a breakeven; however we ultimately had a deficit of £132k due to the depressed occupancy.

Plans for the future

Plans for 2022-2023 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 better target and to expand the number of charitable fundraising bids.

As of September 2022, some of the work to mitigate risk set in motion in 2021-2022 seems to be bearing fruit. CHT has occupancy of 92% and a good number of referrals in the pipeline across all services; all our large communities are now CQC-registered for TDDI and we have begun the process of deregistering for accommodation with care; all our services with CQC ratings are rated ‘good’; we have submitted all the documentation for the accreditation of our Diploma training; and we have improved our data collection and reporting systems .

6

Community Housing and Therapy

Trustees’ annual report

For the year ended 31 March 2022

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.

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 successfully recruited a new Psychiatrist and treasurer 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.

7

Community Housing and Therapy

Trustees’ annual report

For the year ended 31 March 2022

We are in conversation with other organisations, notably Housing Associations and Charitable Trusts, about other potential partnership working that might benefit CHT, and we have strong relationships with Brighton and Hove Council and Look Ahead Housing and Care as training providers.

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.

We are planning a staff structure and pay review during 2022 for implementation in 2023-2024.

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.

8

Community Housing and Therapy

Trustees’ annual report

For the year ended 31 March 2022

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 on 31 March 2022 was 11 (2021:7). 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.

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 26 September 2022 and signed on their behalf by

Laura Eeles Treasurer

9

Independent auditors’ 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 2022 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 2022 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.

10

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.

11

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.

12

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)

14 October 2022

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

13

Community Housing and Therapy

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

For the year ended 31 March 2022

	Restricted £ 5,908 - - -	2022 Total £ 15,908 2,643,570 3,240 167,171	Unrestricted £ 7,844 2,970,428 1,507 133,564	Restricted £ 35,613 - - -	2021 Total £ 43,457 2,970,428 1,507 133,564
2,823,980	5,908	2,829,889	3,113,343	35,613	3,148,956
14,660 2,931,814 9,435	5,908 - -	20,568 2,931,814 9,435	10,380 3,022,158 7,414	35,613 - -	45,993 3,022,158 7,414
2,955,909	5,908	2,961,817	3,039,952	35,613	3,075,565
(131,929) (131,929) 2,217,248	- - 220,348	(131,928) (131,928) 2,437,596	73,391 73,391 2,143,857	- - 220,348	73,391 73,391 2,364,205

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.

14

Community Housing and Therapy

Balance sheet

Balance sheet	Balance sheet
As at 31 March 2022			Company no. 2940712
Note £ Fixed assets: 9 Current assets: 10 469,999 442,466 912,465 Liabilities: 11 (505,226) 12 15 2,085,319 Total unrestricted funds Cash at bank and in hand Tangible assets Restricted income funds Unrestricted income funds: General funds Total charity 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		2022 £ 3,898,254	£ 441,832 445,104	2021 £ 3,999,835
		3,898,254 407,239		3,999,835 392,391
	912,465 (505,226)		886,936 (494,546)
	2,085,319		2,217,248
		4,305,493 (1,999,826)		4,392,226 (1,954,630)
		2,305,667		2,437,596
		220,348 2,085,319		220,348 2,217,248
		2,305,667		2,437,596

Approved by the trustees on 26 September 2022 and signed on their behalf by

Laura Eeles Treasurer

15

Community Housing and Therapy

Statement of cash flows

For the year ended 31 March 2022

For the year ended 31 March 2022
Cash flows from operating activities Cash flows from financing activities: Net cash (used in) investing activities Net cash (used in)/ provided by operating activities Cash flows from investing activities: Payments for Furniture and Leasehold improvement Net (expenditure)/income for the reporting period (as per the statement of financial activities) Depreciation charges (Increase) in debtors Increase in creditors 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	£ £ (131,928) 119,502 (28,167) 8,595 (31,998) (17,920) (17,920) (52,719) 100,000 47,281 (2,638) 445,104 442,466 2022		£ £ 73,391 96,691 (77,277) 101,914 194,718 (950,692) (950,692) (1,340) 850,000 848,660 92,687 352,417 445,104 2021
	(17,920)		(950,692)
	(52,719) 100,000		(1,340) 850,000
		(2,638) 445,104		92,687 352,417
		442,466		445,104

16

Community Housing and Therapy

Notes to the financial statements

For the year ended 31 March 2022

• 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 current performace of CHT, 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.

17

Community Housing and Therapy

Notes to the financial statements

For the year ended 31 March 2022

• 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.

18

Community Housing and Therapy

Notes to the financial statements

For the year ended 31 March 2022

1 Accounting policies (continued)

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.

2 Donations and legacies

Donations and legacies
Unrestricted £ 10,000 - - - - - - 10,000 Croydon relief in need charity Co-operative Vernon N Ely Charitable Settlement Total Edward Gostling Foundation Donation from City of London Postcode Local Trust Other donations	£ 3,988 1,920 - - - - 5,908 Restricted	2022 Total £ 10,000 3,988 1,920 - - - -	Unrestricted £ 4,000 - - - - - 3,844	£ - - - 10,000 14,062 11,201 350 Restricted	2021 Total £ 4,000 - - 10,000 14,062 11,201 4,194
		15,908	7,844	35,613	43,457

19

Community Housing and Therapy

Notes to the financial statements

For the year ended 31 March 2022

3a Analysis of expenditure (current year)

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 2022 Total expenditure 2021	Cost of raising funds £ 12,400 - - 6,870 - - - - - - - - - 1,298 - -	Charitable activities		Governance costs £ 44,193 - - - 12,960 10,771 - - - - - - - - - -	Support costs £ 463,587 4,999 1,395 4,715 - - 32,140 2,803 61,828 10,045 - - - 1,662 17,586 -	2022 Total £ 2,113,947 84,313 64,156 117,707 12,960 10,771 49,456 11,092 156,739 81,863 71,257 14,845 9,435 26,188 17,586 119,502	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
		Care costs £ 1,593,767 79,314 62,761 106,122 - - 17,316 8,289 94,911 71,818 71,257 14,845 - 23,228 - 119,502	Training costs £ - - - - - - - - - - - - 9,435 - - -
	20,568 - -	2,263,130 600,760 67,925	9,435 - -	67,924 (67,925)	600,760 (600,760) -	2,961,817 - -	3,075,565 - -
	20,568	2,931,815	9,435	-	-	2,961,817	-
	45,993	3,022,158	7,414	-	-	3,075,565	-

20

Community Housing and Therapy

Notes to the financial statements

For the year ended 31 March 2022

3b Analysis of expenditure (prior year)

Analysis of expenditure (prior year) the year ended 31 March 2022
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	Cost of raising funds £ 24,264 - - 18,485 - - - - - - - - - 3,244 - - 45,993 - - 45,993	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	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	Training costs £ - - - - - - - - - - - - 7,414 - - - 7,414 - - 7,414
							2,869,222 - -
							-

21

Community Housing and Therapy

Notes to the financial statements

For the year ended 31 March 2022

• 4 Net (expenditure) / income for the year

This is stated after charging:

This is stated after charging:
	2022	2021
	£	£
Depreciation	119,502	96,691
Interest payable	71,257	65,657
Operating lease rentals:
Property	100,913	104,613
Other	7,117	6,720
Auditors' remuneration (excluding VAT):
Audit	10,300	9,800

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

Staff costs were as follows:

Staff costs were as follows:
Employer’s contribution to defined contribution pension schemes Salaries and wages Social security costs Other staff costs	2022 £ 1,428,855 142,948 55,406 486,737	2021 £ 1,702,296 160,560 60,420 377,170
	2,113,947	2,300,446

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

year between:
	2022	2021
	No.	No.
£70,000 - £79,999	-	-
£80,000 - £89,999	-	1
£90,000 - £99,999	1	-
£100,000 - £109,999	-	-

The total employee benefits including pension contributions of the key management personnel were £231,723 (2021:£221,892).

The charity trustees were not paid or received any other benefits from employment with the charity in the year (2021: £nil). No charity trustee received payment for professional or other services supplied to the charity (2021: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £17 (2021: nil).

6 Staff numbers

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

Charitable activities Support	2022 No. 44.0 4.0	2021 No. 53.0 4.0
	48.0	57.0

22

Community Housing and Therapy

Notes to the financial statements

For the year ended 31 March 2022

7 Related party transactions

There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties (2021: none).

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
Charge for the year At the end of the year At the start of the year At the end of the year At the end of the year At the start of the year Cost or valuation Depreciation Net book value Additions in year At the start of the year	Freehold buildings £ 5,016,483 - 5,016,483 1,060,983 100,330 1,161,312 3,855,170 3,955,500	Furniture, fittings and equipment £ 41,469 - 41,469 26,232 4,093 30,325 11,144 15,237	Leasehold improvements £ 68,394 17,920	Total £ 5,126,346 17,920
			86,314	5,144,266
			39,296 15,079	1,126,511 119,502
			54,375	1,246,012
			31,939	3,898,254
			29,098	3,999,835

All of the above assets are used for charitable purposes.

10 Debtors

Debtors
Trade debtors Other debtors Accrued income Prepayments	2022 £ 361,597 50,039 2,562 55,800	2021 £ 196,473 42,770 2,177 200,411
	469,999	441,832

23

Community Housing and Therapy

Notes to the financial statements

For the year ended 31 March 2022

11 Creditors: amounts falling due within one year

11 Creditors: amounts falling due within one year
12 Due after five years Due between two to five years Bank loans Due between one to two years Trade creditors Creditors: amounts falling due after one year Bank loans and overdraft Accruals Other creditors	2022 £ 53,039 90,945 217,682 143,561	2021 £ 50,954 50,940 254,230 138,421
	505,226	494,546
	2022 £ 1,999,826	2021 £ 1,954,630
	1,999,826	1,954,630
	54,207 177,965 1,767,654	57,278 183,611 1,713,741
	1,999,826	1,954,630

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 £3,898,254.

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 2022 £8,077 was owed to the pension company (2021: £8,542). The pension charge for the year was £55,406 (2021: £60,420).

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

Analysis of net assets between funds (current year)
Net assets at the end of the year Tangible fixed assets Analysis of net assets between funds (prior year) Long term liabilities Long term liabilities Net current assets Net assets at the end of the year Tangible fixed assets Net current assets	General unrestricted £ 3,677,906 407,239 (1,999,826) 2,085,319 General unrestricted £ 3,779,487 392,391 (1,954,630) 2,217,248	Restricted £ 220,348 - -	Total funds £ 3,898,254 407,239 (1,999,826)
		220,348	2,305,667
		Restricted £ 220,348 - -	Total funds £ 3,999,835 392,391 (1,954,630)
		220,348	2,437,596

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

24

Community Housing and Therapy

Notes to the financial statements

For the year ended 31 March 2022

15a Movements in funds (current year)

15a For the year ended 31 March 2022 Movements in funds (current year)
Total restricted funds Total funds 15b Total restricted funds Total funds Bridget Bordewich Bursary Fund General unrestricted funds: Restricted funds: Bridget Bordewich Bursary Fund General unrestricted funds: Restricted funds: Donation from City of London Postcode Local Trust Kartina Liao Donation from Co-operative Croydon relief in need charity Movements in funds (prior year) Edward Gostling Foundation	At 1 April 2021 £ 2,217,248 220,348 - - 220,348	Income & gains £ 2,823,980 - 3,988 1,920 5,908	Expenditure & losses £ (2,955,909) - (3,988) (1,920) (5,908)	Transfers between funds - - - - -	At 31 March 2022 £ 2,085,319 220,348 - - 220,348
	2,437,596	2,829,889	(2,961,817)	-	2,305,667
	At 31 March 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

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.

25

Community Housing and Therapy

Notes to the financial statements

For the year ended 31 March 2022

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:

as follows for each of the following periods:
Within one year Two to five years	2022 2021 £ £ 83,701 107,145 57,593 168,602 141,295 275,747 Property
	141,295	275,747

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.

26