. Sussex emmaus iiorklng togèthér- to 'end hoth8106an868 usse?& us 23124 'rity number: 10533 Year ended 31 March 2024 I. TRUSTEE REPORT. It has been a delight to see how the community has continued to move forward over the last year towards achieving the goals set out in our strategic plan. The dedication of Companions (our community members who have previously been homeless), staff, volunteers and trustees is something that warrants a particular mention as they strive to help more people and make our community a better place to live and work. We set our standards high and try to achieve so much each year to constantly move forward, we sometimes need to step back to see how far we have come. This report gives us the opportunity to do just that, to showcase the impact we are making not just to the lives of Companions but to others within our wider community. I hope by reading this review of the year you will be inspired by our work and our ambition to move further forward to ending homelessness because the need for Emmaus is never greater. Statistics released in March 2023 stated that street homelessness was up by 23 % in Brighton, and this is just the tip of the iceberg with so many more people sofa surfing. With your support we can have a positive impact and make a lasting difference to the lives of those that have experienced homelessness. Karen Chapman. Chief Executive SUSSEX EMMAUS ANNUAL REVIEW 23124 2. IfyIPACT IN NUMBERS 2 Companiotyo; eeelved tknndin for tralnlng + development 80 trainlng course8 1,, provided to .Companlons o• SUSSEX EMMAUS ANNUAL REVIEW 23124 OUR PURPO . To provide fonDerly homeless individuals (Companions) with a home - a place of L*¥ warmth, safety and security for as long as they need it. It starts with the welcome. By providing a warm, well decorated room that is Comfortab￿ fumished Companions can begin to relax feeling safe and secure in their own personal space. Welcome packs are provided with everything they need to settle in and a buddy who is always on hand, so they have someone to go to for help and advice. 661 have been part of the Brighton Emmaus communlty for seven weeks now. My room is a good slze wlth plenty of Ilght from lar9e wlndows, a mish mash of flrnlture but It was no problem to be glven an armchalr and laundry basket from the superstore - even had help gettlng the armchair up to My room. 99 We start with a home and through support and purpose enable Companions to achieve their full potential. Companion Kingsley SUSSEX EMMAUS ANNUAL REVIEW 23124 b. OUR, YU.RPOS 2. To give each Companion the chance to settle and take stock, then benefit from our support and personal development opportunities through trainingi work experlence and acts of Solidarity. We encourage Companions to look to the future and identify their aspirations. During regular meetings with their project worker, they can discuss what personal development or training opportunities they would like to pursue. This can range from driving lessons, literacy and numeracy course, ESObeL (English as a Second Language) or Vocational Qualifications. These support sessions also provide an opportunity to celebrate successes. One of the advantages of being in an Emmaus community is the ability to build skills and confidence through the work experience that forms part of the support package. This ranges from being part of the catering team, assessing and preparing goods for sale, serving customers in our social enterprises or maintaining the site. Solidarity is the term we use when we create an opportunity to give back to others less fortunate than yourselves. You can't underestimate how good that makes someone feel. Not Judging people on their pasts? tnisting them and helping them achieve tbelr fvll potential. SUSSEX EMMAUS ANNUAL REVIEW 23124 c.'OUR YURPOS . To enable a happy? thriving and resilient Community that helps people to help themselves - building confidence, a sense of worth and dignity on a journey towards employment and independent living in the fiiture. Isolation is something experienced by most people that have an experience of homelessness. Providing communal spaces where Companions can cook, eat and socialise together reduces isolation and lifts their spirits. The thriving Leisure Group here is run by Companions for Companions and is a great way to socialise and connect with others. From pool tournaments, bingo nights and music events to visiting museums and art galleries there is something for everyone. Peer support is another example of building resilience, confidence and a sense of self-worth, this is seen in the buddying system and how Companions rally round each other when they see someone is struggling or unwell. 66 Eleven of us went on a fishlng trlp from Brlghton Marlna. The weather was good and we all caught some flsh. Tlwnkfully the sea was calm so only one person felt 4 blt 4L4easyl It was a fun day out. ••', Companion Pat 99 SUSSEX EMMAUS ANNUAL REVIEW 23124 4a. COMPANION SUPPOR & OUR OFFER Jr..: Accessing external services can be key to improving Companions, wellbelng and mental health and we continue to expand this offer. In the past year we had regular visits from in-reach nurses, oral health nurses, pranic healers, a hairdresser and a barber, counsellors and homeopathic practitioners. Project workers also signpost Companions to other seNices and groups including addition seNices, mental health services and LGBTQIA+ groups. Collaborating with University of Brighton we provided a placement for two Occupational Therapists. The DentAid bus came back for a second visit providing emergency and much needed dental care to six Companions. Fresh air and working with nature also enhance Companion wellbeing. Our extensive grounds provide a great space for Companions to sit and take in the fresh air in a peaceful and relaxing setting. We also have several allotments for them to grow fruit, vegetables and flowers, not only can they learn new skills, but it is also incredibly therapeutic. 66. The carrots and beetroot Iwve already been used in the kitchen to Make food for the communlty. Some OP the chlllles hAve also been used and the rest are stlll growlng. The sweetcorn Is comin9 on a treat and will be ready In September. working on the allotment Is good for my mental health and anxlety. If you are feellng down It Is good to come down and get on wlth gardenlng and aPterwards you feel happy that you have done Something for the Communlty. I love gardenlng. Companion Simon 99 SUSSEX EMMAUS ANNUAL REVIEW 23124 4b. COMPANION SUPPOR & OUR OFFER In addltlon to the allotments we also have a couple of bee hives that produce honey not just for use in the community but also for sale in the retails spaces. 66 Th18 8eason started In a wet way. too much rain. and the blossom started late. Only two hlves retyklined and we had lost a Queen due to the cold! Both hlves had a hlgh get up and 90 but splittin9 a hlve at the start of the season helped. Like all seasons the bees tell you ww they want and a8 4 beekeeper It Is your Job to understand what the bees are saylng to you. with three hlves we had to breed a new Queen to Make up for the loss over the wlnter. Desplte the wet sprlng and spllttlng hive the bees were stiii maklng honey albelt not as fast ds other seasons. But wlthln a few weeks the hives plcked up welght and numbers wlth the arrival of the new Queen who had tralt8 of her Mother and a good breeding line. Back on form for the start of the summer wlth the added bonus of Some hot and sunny days and a hlnt of raln we had a late harvest In hugust of 60 kilos of honey. story of loss and of chance and of new blrth. I new blood Ilne from a le9endary Queen and her new slster. Companlon Joseph Training is a key part of the Emmaus support package. Companions received training in Manual Handling, IT skills, First Aid, Maths and English Skills, Van training, ESOL training, budgeting, food hygiene and Level 2 counselling. SUSSEX EMMAUS ANNUAL REVIEW 23124 5. SOLIDARITY r• Emmaus wouldn't be Emmaus without solidarity led by Companions. Earlier this year we were approached by another service in the city asking if we knew any organisations that would paint a room for one of their clients who was bedbound and had been diagnosed with terminal cancer. Vfjthout hesitation two Companions offered their services. A quick visit to assess the job and discuss paint colours and then the work started - four days later the work was complete. The ability to help make someone else's life better has had a lasting effect on the Companions who undertook the project. 66 Just went to see Rl¢har(r and he Is $0 80 Iwppy wlth the palntlng and everythln9 thays IKqppened for him. Ifs changed hls mood dramatlcally and he fee18 Ilke h18 flat Is more peaceful. i Just wanted to Say agaln how grateful i am to Brlan. and Philip. as they Iwve been so klnd throughout and have even cleAned hls balcony wlndow - he hasn't been able to see out of It for over a year! They are both wonderful 1nd1v1d￿15 who have made such a lastlng Impfesslon on both htyself and my cllent - Its good to know that klndness stlll exists in small pockets of the worldl 'n￿eS changed -Emma 99 The ever-popular quiz night hosted by Emmaus is a great opportunity to raise money for other charities. The most recent quiz night raised money for Look Sussex, a local charity that supports families who have a child who is blind or visually impaired. SUSSEX EMMAUS ANNUAL REVIEW 23124 4. TALK{ & TO Talks and Tours delivered by Companions are more popular than ever. Over the last 12 months Graeme and Liam have delivered these to many groups on request or at our Open days. They are also available to visit groups and churches to give talks. Details are available on our website at: li Its* SUSSEX EMMAUS ANNUAL REVIEW 23124 10 7a. SOCIAL ENTERPRISES , 2023 Saw some changes to our social enterprise operations: The lease at Emmaus by the Sea in Southwick ended in June, so we decided to look for a new shop in the heart of Brighton. In July we signed the lease ori Ourfit London Road which opened its doors In September. Thls Is an opportunlty to connect with new customers In thls up-and-comlng part of the clty. We have already started collaborating with textile students from Brighton University and A level students at Varndean School showcased some incredible knltwear creations with a focus of sustainability. SUSSEX EMMAUS ANNUAL REVIEW 23124 11 7b. SOCIAL ENTERPRISE4 The seven social enterprises (Cafe@Emmaus, Outfit@Emmaus, Greenhouse, Secondhand Superstore, The Bedroom Store, Emporium and Outflt London Road) provide vxtal resources that contribute to the running of our Community in addition to the training opportunities and work experlence for Companions. The Cafe ,'OVT14T', Bedroom store SEQONDHAIID SUSSEX EMMAUS ANNUAL REVIEW 23124 12 7c. SOCIAL ENTERPRISE£ Companlons Say that routine is one of the most valuable aspects of belng at Emmaus. Not only that but It 18 also good for the envlronment as it BUPPOrts sustainable retall. Companlons are able to take the opportunlty to praetlce what they have learnt and develop thelr skllls as Andy explalns: Durlng My time at Emmaus I have worked In retall. van dellverles and the Cafe. Whilst in the cafe I was glven the freedom to experiment wlth bakin9 agaln and started to produce my homemade brownies. I loved the creatlvlfy and provldlng the local community with a hit of chocolate goodness. Companion Andy Customers love Andy's brownies as these TrlpAdvlsor revlews show: "Flr8t trlp here today. Staff are totally amazlng. Had an a fantastlc Brownle Made by a stdff biember, thlnk It was hn&ewP Most dellclous thing ever. The coffee and tea were perfect.. "klong With ty coffee, I had a chocolate brownle. Thls looked Ilke a very ShwII plece but It was truly deliclous, very rlch. And 9008y Just as the perfect Brownle should be." "Great coffee lovely welcomlng envlronment wlth the added bonus OP looking around the charity bargqlns and kndy's brownles are the best.. SUSSEX EMMAUS ANNUAL REVIEW 23124 13 8. CONTINUAL GROWTH & IMPROVEMENT At Sussex Emmaus we are continually aiming to be the best that we can. Examples of areas that we have worked on over the past year include". Feasibility Study Accessibility Following on frorn the impact of Ihe increase in energy costs and aligning with one of our strategic priorities we employed the setvices of BHESCO, a nationally renowned community green energy adviser, to conduct a feasibility Study. They provided a detailed report highlighting opportunities improvements and recommendations for the most cost- effective solutions to reduce heat loss and generate our own renewable energy. Importantly it also provided an example of payback for each area that has enabled us to focus on the most cost-efficient solutions first. Vthilst this is a long- term project that will require considerable investment, work has already begun on implementing some of the quick wins. One of our wonderful wheelchair using customers look us on a tour of our retail spaces to point out how to make these more user-friendly. From simple solutions that could be quickly implemented like removing a chair from one of the changing rooms to give more space for a wheelchair and increasing the spaces bebNeen displays to those that might take a little longer like making our meeting and training room accessible. Client Relationship Management system (CRM) Fire Risk Assessment A review of our current CRM highllghted that A new Fire Risk assessment was considerable changes and updates were conducted by an external specialist. required. Over the last two years we have The extensive report identified actions improved our working practices and we need the required to ensure we were complying tools to support this. At Sussex Emmaus we with the Fire Safety (England) have been working closely with Emmaus UK to Regulations 2022 and the Building identify the best provider that meets our Safety Act. This work is currently requirements. Implementation of the new CRM underway with much already completed. will commence in Summer 2024. SUSSEX EMMAUS ANNUAL REVIEW23124 14 . FUNDRAISING & •. • Like most charities we are reliant on supporters to enable us to fulfil our objectives. We are incredibly grateful to everyone that has supported us this year from the regular donors, church collections to the trusts and foundations. We hope you will continue to give your vital support in future to provide the resources to enable us to continue our important work to fight homelessness. Through the generosity of our supporters, we have raised funds to replace our old and tired kitchen with a new fit-for-purpose facility. Work on this project commenced in Spring 2024. Another fabulous donation came from a local IT company who provided new laptops for all Companions helping them to undertake training and maintain contact with friends and family. Funds to allow the re-decorating of Companion rooms and the corridors, including paint and carpet tiles provided by Dulux and Heckmondwike respectively has transformed the accommodation and now looks bright and homely. Other funding supported counselling, food, Insulation and an Environmental Feasibility Study. SUSSEX EMMAUS ANNUAL REVIEW 23124 15 J) b. FUNDJIAISING • Our website has details on making donations, regular givingi and signing up to gift and newBletters. Volunteering is another way that you can support us - details are on our website. We are always indebted to our volunteers for the work that they do and would be lost without them. Thank you. Thank you: Dr. Bronner. Queen Mothers Clothing Guild. CRhSM. Meckmondwlke. HSBC. Ernest Kleinwort. Charltable Trust. Garfield Weston. The Pebble Trust. Edward Gostllng Foundatlon. Lennox Mannay Charltable Trust, Beatrlce Lalng Trust. The Albert Munt Trust. Morrisons Foundation, sussex Community Foundation. Fine and Country Foundation. 29th May 1961 Charitable Trust. Medley Foundation. Yorkshlre Building society. Momity Trust, Hobson Charity. Rampion Foundation. Emmaus UK and Many More! SUSSEX EMMAUS ANNUAL REVIEW 23124 16 10. STRATEGIC PLAN&_ The Board revisit our strategic document, Directxon 2030, every year by conducting a consultation wlth Companions, staff, volunteers and trustees to keep It up to date. Our commitments We will equlp Companions with: Improve our environmental f ootprint by: comfortable accommodation support work experience, training and personal development respecting wildlife and nature on our site. supporting Emmaus's position on Environmental Justice saving tons from landfill Make the best use of our unique slte to: house our social enterprises become a hub for the local community attract more customers Maintain our assets by; developing our staff maintaining our building ensuring our IT infrastructure is flt for purpose foster relationships with linked organisation Become f inanclally resilient by: seeking additional premises grow our social enterprises SUSSEX EMMAUS ANNUAL REVIEW 23124 17 4*. Ila. OUR STRATEGIC PRIORITIES Companion experience Business growth The provision for Companions to have the best experience we can offer is central to our core purpose and existence. Their journey begins with a warm welcome into our Community and a home that is safe, provides comfortable living conditions, and offers the opportunity to grow through work experience, personal development, and support. Our role is to help people to help themselves and support Companions to build their confidence, skills, and ability to live independently, achieve their potential, and prosper. We will increase and optimise revenues, based on a 3-year business plan, and forecast, to provide the maximum possible opportunities to deliver on our charitable objectives. We need to provide the best donor and customer experience we can, along with value-for-money products, sold through innovative and popular channels. There will be a continued focus on publicising our USP through social media and our website, alongside more traditional methods. Companions are indispensable to the running of our social enterprises. These roles help equip them to grow, prosper, and upskill. It is, therefore, essential to balance business growth with maximising our Companion experience ethos. To underpin this, we will develop the skills and expertise of our staff. The use of volunteers will also be key to providing the help and support we need and supplying sufficient workforce numbers. Staff and volunteers are also critical to our success and their contributions are valued immensely. Our core offer to them is a home and work experience for as long as they need it along with support to 'move on, when they are ready. They contribute fully to the success of our Community and will be widely consulted as we move towards 'co-production' in running our Community. We aim to use best practice development techniques and thinking, using an evidence-based approach decision making process. SUSSEX EMMAUS ANNUAL REVIEW 23124 18 Ilb. OUR STRAtEGIC . I)RIORITIES Financxal resilienee Asset Management We aim to be able to provide services to Companions in the long term and so demonstrate financial resilience, agility, compliance, and best practice. now and in the future. We will continue to seek funding from the government, regular fundraising activities, and other sources, whilst progressively maximising the independent generation towards our running costs from our social enterprises. Our aim is Resilience, Reliability, and Agility. We must maintain all areas of our infrastructure in good order so that the community can operate well and to ensure we are not building up costly problems for the future. These must be treated with equal priority to other short, medium, and long term priorities. Assets cover our Portslade site, together with any subsidiary places. After providing and maintaining the best facilities we can for Companions to call home, this means utilising the remaining space effi'ciently, for the running of our social enterprises. Those who know and love Emmaus think it is a special place. A unique Community, not just an organisation. Funds will be earned or raised to invest in projects and supporting work, provided these are aligned to our strategy, have been agreed via our budgeting process, and are backed by solid business cases. The current economic environment (following on from the restrictions of Covid) is 'harder' than ever, following a period of significant inflation and utility costs increases. This requires increased vigilance and rigour in our approaches. However, we will not lose sight of our aim to expand and develop our Community as a whole and the quality of Companion Experience we wish to provide. Resources need to be well cared for and managed. Our staff, volunteers, workforce, IT infrastructure, policies and procedures, compliance, and financial operations are critical to delivery of our charitable objectives. Our staffing structure will be affordable and fit for purpose.However, staff recruitment is challenging, as it is across the nation at the moment. We will need to be flexible, creative and supportive to give us the best chance of building and retaining our team. SUSSEX EMMAUS ANNUAL REVIEW 23124 19 IIC. OUR STRATEGIC k•-, PRIORITIES Effective External Relationshxps We continue to develop effective stakeholder and supporter relationships, both locally and nationally. We aim to foster understanding of our mission much more broadly and involve a wider group of people and organisations. These include the local Portslade community, financial, public, private, and third sector bodies, donors, customers, and volunteers. Current marketing, website, and social medial channels are being developed and enhanced to assist. We also take our role in the wider Emmaus movement very seriously, both nationalty with Emmaus UK (EUK) and internationally. Solidarity remains a core part of what we do, especially as it IS largety Companion led. There are opportunities to expand these activities after the limitations of the last few years. Environmental Impact We are improving our own environmental footprint resulting frotn daily operations, honouring our role with the Emmaus Movement's Position on Environmental Justice, and using our land mindfully to respect nature, ecological diversity, and wildlife. A Green policy and strategy will be developed (building on current activities) and form the basis of current and future plans to reduce our carbon footprinL As well as guarding our reputation and good name, one of the reasons for this is to expand our 'referral' network (so we reach people we can help effectively) and review our services so they adapt to the changing face of hornelessness. Being more of a 'community hub, will attract new visitors to our site, be it through events, activities, work, acts of Solidarity, partnerships, collaborations, education, entertainment, or inspiration. We can build on that, expanding the number and diversity of people who participate in, value, and benefit from our Community, auditing to our Companion experience ethos. We will continue to develop, recognise, evaluate and publicise the benefits from our social enterprises, which come from recycling and reuse of donated goods. It is a great example of the 'circular economy,. SUSSEX EMMAUS ANNUAL REVIEW 23124 20 MAIN ACTIVITIES UNDE FURTHER THE CHARITY FOR THE •uBLIC BENE ES The Trustees confirm that they have complied with the duty in seetion 4 of the Charities Aet 2006 to have due regard to the Charity Comn)Issions' general guidance on public benefit. The following are noted: The Charity provides a home, shelter, and meaningful work experience for Companions. Companions come to Emmaus as a result of homelessness, social exclusion and povety-related issues. The site provides a 'community hub, _ a place in which members from the local comrnunity- residents, schools, businesses, Charities, and volunteers, can find a sense of belonging, make new connections and build new relationships, through work, collaborations, partnerships, events or inspiration. The environmental benefits to the public are that Emmaus Communities encourage reuse and recycling and save many hundreds of tons of waste from landfill each year. Solidarity projects undertaken and supported which benefit the wider community. All Trustees give their time voluntarily and receive no financial benefit from the Charity. Any expenses reclaimed from the Charity by Trustees are set out in Note 9 to the Financial Statements. SUSSEX EMMAUS ANNUAL REVIEW 23124 21 Isa. ACHIEVEMENTS "-' . & PERFORMANCE Review of actAVlties The surplus for the year is £151,935 (2023: £218,587) of which £125,995 is unrestricted. After deducting capital expenditure and loan and mortgage capital repayments the deficit is £54,633 (2023: surplus £7,227). Although overall income increased, the financial climate impacted on the performance of our social enterprises which failed to achieve budget. That coupled with one-off expenditure items such as the purchase of a new van, to improve our processes and investing in the maintenance of our assets resulted in the deficit of £54,633. However, our resetves are at the targeted level, so we are achieving a balance between financial sustainability and expenditure on our charitable objective. Income and resources from generating funds The overall income for the year was £1,887,913 (2023: £1,780,970). 2024 income 12Yo The Charity received grants and donations totalling £225,845 during the period (2023: £226,199) of which £123,772 was restricted (2023: £179,033). 497. Investment Income , l Donaty'ons & granls Irhvestmeni Inco Tradina actmdes A¢comrNjda￿Oft contributions The Charity benefited from investment income totalling £47,852 (2023: £54,095). This came from commercial rents from those parts of its propety that it is unable to use for its charitable mission, the whole of the Manor is let out as offices. The Charity also benefits from interest on reserves and cash deposits. 2025 ineome 5190 SUSSEX EMMAUS ANNUAL REVIEW 23124 22 13b. ACHIEVEMENTS . & PERFORMANCE." i*bV Trading Activities The Charity's trading activities are undertaken by staff, volunteers, and Companions, who are the beneficiaries of the Charity, in the shops and café, as part of the Charity's operations. We generated income of £912,264 (2023: £916,333) from these activities. Accommodation Contrxbutions Companions contribute to the housing costs by paying an accornmodation contribution. Those who have insufficient income are eligible to claim Housing Benefit. Accommodation contributions produced an income of £672,179 (2023: £584,323). Expenditure Overall expenditure on continuing operations was £1,735,978 (2023: £1,562,383. There were capital additions totalling £167,107 (2023: £255,436). sooooo ZOZ3 2024 SUSSEX EMMAUS ANNUAL REVIEW 23124 23 14. F￿ANcIAL. kEVIEW Going concern After making appropriate inquiries, the Trustees have a reasonable expectation that the Company has adequate resource5 to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies. Financial risk management objectives and policies The budget setting process for 2023-24 took into consideration the current economic climate and the impact of the Russia-ukraine war that had resulted in increased costs and in particular the impact on fuel and utility prices. This situation was still uncertain, and the board approved the budget in full knowledge of this unpredictability and that a flexible approach to risks and variances throughout the year may be required. The Board reviews three year fO￿ard projections of likely budget outcomes. These include calculations of forecast cash available to service debt and engage in essential regular spending and capital projects known. Building upon the previous years, experiences, the Board has adopted a comprehensive Budget Preparation and Implementation Policy to aid the budget process which is regularly reviewed and updated. Any risks identified are added to the risk register and reviewed at regular General Purposes committee meetings and Board meetings. Where risks were judged to be either particularly high or where the consequences of such risks were deemed to be particularly serious, measures were put in place to ensure that the risks were properly managed. ••', SUSSEX EMMAUS ANNUAL REVIEW 23124 24 . STRUCTURE, GOV & MANAGEMEN Constitution The Company is registered as a Charitable Company limited by guarantee and was set up and is constituted by a Memorandum of Association dated 2711111995.lts registered Charity number is 1053354. The Company is constituted under the Articles of Association dated October 2018. Each member is required to contribute £1 in the event of winding up. The Company has no share capital. The Charity and is a full member of both Emmaus UK and Emmaus International. Its registered name is Sussex Emmaus, but it also operates under the name of Emmaus Brighton and Hove, and its main site and residents are commonly referred to as'the Community" or'our Community" Method of appointment or election of Trustees The management of the Company is the responsibility of the Trustees who are elected and coopted under the terms of the Articles of Association. The process of recruiting new Trustees is a continuous one and given particular attention by the Chair and members of the Board to undertake a review of the skills and experience it needs to guide the Community and to identify any skills gaps. As a result, a recruitment drive has taken place throughout the year and has resulted, to date, in Iwo new members joining the Board. Policies adopted for the induction and training of Trustees It is vitally important that new Trustees can take advantage of an appropriate and up-to- date induction programme so they can become aware of all facets of the Community and also visit other Communities and understand the working of Emmaus UK and Emmaus International. The programme continues to be developed in conjunction with guidelines provided by the Emmaus UK Federation officealong with Charity Commission guidelines. Trustees are provided with relevant local information for our Community, whilst being kept informed of the national and international movement through regular updates, newsletters, and Emmaus Net. SUSSEX EMMAUS ANNUAL REVIEW 23124 25 5b. STRUCTURE, GOV4 . l-.F. & MAWAGEMEN Reserves policy The Charity's policy is to maintain a level of reserves (referred to as funds in the accounts) sufficient to enable it to deal with the consequences of unexpected events or contingencies and when required precautionary steps are implemented to ensure that the normal policy level of reserves. Our aim is to achieve a ratio of l (equivalent to 4.5 months) so that we are not 'hoarding' money we should be spending on our core purpose. Likely areas of risk have been identified as unexpected maintenance or health and safety expenditure, difficult or volatile trading conditions, and the risk of sudden reduction of income from accommodation contributions if there were to be further change in the benefits system. Under the policy in force during the year, reseNes are defined as the unrestricted funds, balance, adjusted to exclude fixed assets, without credit for unsecured long-term liabilities owed to charitable institutions. In 2022-23, following the Covid-19 pandemic, the Board increased the reseNes target from 3-4 months to 4-5 months of expenditure, or a ratio where reserves divided by 4.5 months of expenditure equals one. The charity met the new objective at the year-end. Secured long-term liabilities have not been deducted in calculating reserves and they are repayable under the terms of a set repayment schedule. These payments themselves are included in planned expenditure. Under this definition, reserves stood at £921,540 at 31 March 2024 (2023 £709,321) which equates to approximately 4 months. The Board has the policy under regular review. SUSSEX EMMAUS ANNUAL REVIEW23124 26 sc. STRucfuRB, GO & MANAGEMEN Employment of staff After a year of holding back on staff recruitment due to the financial climate we were able this year to strengthen our staff team making the following appointments: Finance Manager, Kaya; Volunteer Co-ordinator, Nicki; Fundraising Manager, Miranda; Facilities Manager, Dave., Outtit Managers, Emma and Max; Van Driver, Francis; Project Worker, Joanna. We said goodbye to Dawn (Finance Manager) and Jane (Retail Manager) and Teresa (Retail Assistant) at Emmaus by the Shop who will all be greatly missed. The staff team manages the Community home, and trading activities, and maintains the premises. Liaison takes place with Companions through the morning meetings which precede each working day and by means of specially convened gatherings to deal with specific issues. Working alongside the staff team and Companions is a team of volunteers who work in both business and Community activities. The appointment of a Volunteer Co-ordinator has resulted in an increase in our volunteer team improving our eff iciency and productivity. SUSSEX EMMAUS ANNUAL REVIEW 23124 27 16a, ORGANISATIONAL STRUCTURE & DECISION MAKING Rosemary Friggens (Chair) Pam Mitchell (Vice Chair & Company Secretary) Fiona Morris (Vice Chair - resigned 18th October 2023) Philip Daniel (Treasurer- resigned 18th October 2023) Frank Bucher Ernily Cronin (resigned April 2024) - on temporary leave from the Board Frances Harrison Vikki Hayward Cripps (appointed Vice Chair 18th October 2023) Christopher Wheeler (appointed Treasurer 18th October 2023) Jacquie Findlay (appointed 18th October 2023) Mark Richardson (resigned 20th November 2023) Aidan Berry (appointed Company Secretary 18th October 2023) The following trustees were CO•OPted in the year and are expected to be formally appointed in October 2024: Giles Witcomb James Cunningham Slnce the year end: Emily Cronin has stood down temporarily from her trustee role to undertake a short term piece of consultancy approved by the board in compliance with the Charity commission advice. It is stipulated that the number of Trustees shall be no fewer than three but shall not be subject to any maximum. Trustees serve terms of three years after which they may stand for re-election. Trustees are typically expected to serve two three-year terms although they may serve a maximum of three three-year terms. In exceptional circumstances, a Trustee may serve for an additional one-year term beyond that maximum. None of the Trustees, who are also Directors for Company Law purposes, held any beneficial interest in the Company at any time during the year. SUSSEX EMMAUS ANNUAL REVIEW 23124 28 16b, ORGANISATIONAL STRUCTURE & DECISION MAKING The Board has established a number of committees of which Trustees are members. These include the following: General Purposes (covers finance. governance, risk, and site rnatters) Strategy Companion Strategy Human Resources Health & Safety Income Generation and Communications All committees provide feedback and recommendations to the Board. For some years now, the Board has followed good practice and met annually outside of the normal Board framework to review the past year and its achievement of the Strategic Objectives against the Community's Strategic Plan. The Board, as in previous years, continues to review its effectiveness, and review the way it operates in order to meet the increasing challenges facing Charities such as ours. This will include adapting, wherever necessary, to the new governance arrangements set out in the Charity Governance Code. The Board supports and applies the seven principles which make up the Code. We continue to review our processes and procedures against the recommended practices set out in the Code which underpin each of such principles. Save where it is not beneficial or proportionate for us to do so at our stage of development and maturity, we wlll be looking to adopt during the course of 2024 any of the recommended practices not currently followed. The Board remains committed to the involvement of Companions in the development and governance of the Community, which is their home. SUSSEX EMMAUS ANNUAL REVIEW 23124 29 16c. ORGANISATIONAL STRUCTURE & DECISION MAKING Membership of the Company, of which the Board of Trustees is the governing body, Is open to Companions, volunteers, and employees who have served six months with the Community. Trustees are admitted as members on appointment. At the time of the Annual General Meeting in October 2023, there were 79 members, comprising: 23 Companions 12 Trustees 13 employees 10 volunteers 21 others including Emmaus UK and former Trustees The Board acknowledges its responsibility to identify, assess and manage risks. During the year, at their normal quarterly meetings, the Trustees reviewed the risks entailed in the management and governance of the Community. The Charity maintains a risk register and reviews it on a regular basis. Wthin the register, Trustees identify risks, the severity and likelihood of each, mitigating actions, responsibility for monitoring and action, residual risk after taking mitigation measures, and frequency of review. Trustees group the Charity's risks into the following categories: governance, operational, financial, legal, and external. Among the key risks identified at the year-end are: Increase in fuel costs Increase in utility costs Challenges in recruiting staff Maintaining business and fundraising income Each of these risk areas was under review for the design of mitigation measures by the year-end. SUSSEX EMMAUS ANNUAL REVIEW 23124 30 16d, ORGANISATIONAL STRUCTURE & DECISION MAKING Management The executive team is accountable to the Board. Under the direction of Chief Executive, Karen Chapman, they are responsible for implementing policy and strategy. Karen is assisted by Karen Gordon, Community Manager, and Joel Lewis, Business Manager, to design. oversee and deliver the Community and business operational plans and to manage risk on a day-to-day basis. During the year, 20 members of staff were employed, of which 7 were part-time posts. Plans for future periods and development8 A Blue-sky Thinking Day was held in addition to the annual strategic consultation involving input from the whole community. The outcome identified a desire to work on more Companion learning and development, improving move on support and increasing our positive environmental impact. Our current focus is on the maintenance of our buildings. We are faced with issues around the condition of our site: our best asset and, at the same time, our largest challenge, which will require money and attention. We are two years into a rolling five-year plan of repairs to the exterior of the site. this work will continue this coming year.ln addition, we will continue with other site upgrades including increasing parking facilities, a new Companion kitchen and exploring opportunities to install solar panels. SUSSEX EMMAUS ANNUAL REVIEW 23124 31 16e, ORGANISATIONAL STRUCTURE & DECISION MAKING Emmaus takes its duties seriously about fundraising under Data Privacy and Protection regulation and per The Code of Fundraising Practice. The Code of Fundraising Practice outlines the standards expected of all charitable fundraising organisations across the UK. Those standards were developed by the fundraising cornmunity through the work of the Chartered Institute of Fundraising (CloF) and the Fundraising Regulator. Trustees have overall accountability for fundraising standards at Emmaus, with management and the Income Generation and Communications Committee responsible for ensuring that related policies and procedures are followed. Any material issues that arise are reviewed by the Income Generation and Communications Committee in the first instance, before escalation to the Board as appropriate. We rely on fundraising received as Restricted and unrestricted donations from Individuals or Members; Corporate donations; Sponsorship; Legacy or donating in memory; and Trusts and Foundation giving. Our fundraising activities are delivered by our in-house fundraising team, who are obliged to obseNe our policies and the highest standards in fundraising. We received no complaints about fundraising activities in the 2022123 financial year. The Income Generation & Communications Committee had no cause to review any non- compliance with any area of fundraising activity. Should we ever suspect that someone we engage with through our fundraising activity is lacking capacity or is in vulnerable circumstances, we will take steps to terminate any contract or commitment in a way that seeks to protect that person and their dignity, having due regard for any desire they have expressed to support Emmaus. SUSSEX EMMAUS ANNUAL REVIEW 23124 32 16f., ORGANISATIONAL STRUCTU & DECISION MAKING The Trustees (who are also directors of Sussex Emmaus for the purposes of company law) are responsible for preparing the Trustees, report and the financial statements In accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting practi￿). Company law requires the Trustees to prepare financial statements for each financlal year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they 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 policles and then apply them consistently. observe the methods and principles in the Charities SORP. make judgments and accounting estimates that are reasonable and prudent. prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. The Trustees are responsible for keeping adequate accounting records that are suff icient to show and explain the charitable company's transactions and 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. SUSSEX EMMAUS ANNUAL REVIEW 23124 33 16g. ORGANISATIONAL STRUCTU & DECISION MAKING Each of the persons who are Trustees at the time when this Trustees, report is approved has confirmed that: so far as that Trustee is aware, there is no relevant audit information of which the charitable company's auditors are unaware, and that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable company's auditors are aware of that information. Disclosure of information to auditors The auditors, Kreston Reeves LLP, have indicated their willingness to continue in off ice. At the Annual General Meeting, Kreston Reeves LLP was reappointed as Auditors. This report was approved by the Trustees, on 23rd October 2024 and signed on their behalf by: Rosemary Friggens Chair of Trustees SUSSEX EMMAUS ANNUAL REVIEW 23124 34 **Sussex Emmaus** ## **(A Company limited by guarantee)** ## **Independent auditors' report to the Members of Sussex Emmaus** ## **Opinion** We have audited the financial statements of Sussex Emmaus (the 'charitable company') for the year ended 31 March 2024 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 2024 and of its incoming resources and application of resources, including its income and expenditure for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Charities Act 2011. ## **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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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 the charitable company'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. Page 35 **Sussex Emmaus** **(A Company limited by guarantee)** ## **Independent auditors' report to the Members of Sussex Emmaus (continued)** ## **Other information** The other information comprises the information included in the Annual report other than the financial statements and our Auditors' 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. ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: - the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or - sufficient accounting records have not been kept; or - the financial statements are not in agreement with the accounting records and returns; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of trustees** As explained more fully in the Trustees' responsibilities statement, 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. 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. Page 36 **Sussex Emmaus** **(A Company limited by guarantee)** ## **Independent auditors' report to the Members of Sussex Emmaus (continued)** ## **Auditors' responsibilities for the audit of the financial statements** We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 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 Auditors' 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 is detailed below: ## _Capability of the audit in detecting irregularities, including fraud_ Based on our understanding of the charity and the sector as a whole, and through discussion with the Trustees and other management (as required by auditing standards), we identified that the principal risks of noncompliance with laws and regulations related to health and safety, GDPR and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities SORP (FRS 102) Second Edition (released October 2019), the Companies Act 2006 and other relevant charity legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated Trustees' and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks related to posting inappropriate journal entries to manipulate the desired financial results and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the engagement team included: - Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety) and fraud, and review of the reports made by management; and - Assessment of identified fraud risk factors; and - Challenging assumptions and judgements made by management in its significant accounting estimates; and - Performing analytical procedures to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and - Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and - Reading minutes of meetings of those charged with governance, reviewing internal audit reports and reviewing correspondence with relevant tax and regulatory authorities; and - Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting the transactions; and - Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation. Page 37 **Sussex Emmaus** ## **(A Company limited by guarantee)** ## **Independent auditors' report to the Members of Sussex Emmaus (continued)** 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 non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the charitable company's internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees. - Conclude on the appropriateness of the Trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' report. However, future events or conditions may cause the charitable company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Page 38 **Sussex Emmaus** ## **(A Company limited by guarantee)** ## **Independent auditors' report to the Members of Sussex Emmaus (continued)** ## **Use of our report** This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed. ## **Kreston Reeves LLP** Chartered Accountants Statutory auditors Brighton Date: 6 November 2024 Kreston Reeves LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006. Page 39 Sussex Emmaus (A Company Ilmlted by guarantee) Statement of flnanclal acllvltles {Incorporatlng InGomo and expendlture account) for the year ended 31 March 2024 R•$trlct•d Unrestrfcted funds funds 2024 2024 Total funds 2024 Total funds 2023 Note Income from: Donations, legacies and grants Charitable actlvitles.. Shop income Cafe Income Accommodation contrlbutlons Investment8 Oth8r incom8 123,772 102,073 225,845 228,199 764,159 148,285 671,772 47,852 30,000 764,159 148,286 671,772 47,852 30,000 808,484 109,849 584,343 54,095 Total Income 123,772 1,784,141 1,8B7,913 1,780,970 Expendlture on: Charitable activities 63,786 1,672,192 1,736,978 1,562,383 Total expendlture 63,786 1,672,192 1,735,978 1,562,383 Net Incomo Transfers be￿een funds 59,986 134,046) 91,949 34,046 151,935 218,587 20 Net movement in funds 18urplus for lh• yoar 25,940 125,995 161,936 218,587 Reconclllatlon of fund¥: Total funds broughl forward Net movement In funds 101,951 25.940 1,909,190 125.995 2,011,141 151,935 1.792,554 218,587 Total funds carrled lorward 127.891 2.036,185 2,163,076 2,011,141 Th8 Statement of financlal activilies Sncludes all gains and losses recognised in the yaar. The notes on pages 44 to 63 form part of Ihese financial statements. Page 40 Sussex Emmaus (A Company IlmSted by guarantee) Registered number: 03130876 Balance sheet as at 31 March 2024 2024 2023 Note Flxad 8888ts Tangible assets 14 1,413.511 1,350,692 1,413,511 1,350,692 Current assets Stocks D8btor8 Inv88tment8 Cash at bank and in hand 15 18 17 7,249 173,880 564,401 460,236 4,148 98,712 555,981 536,557 1,205,766 1,193,378 Creditors: amount3 falling due within one year 18 (323,2271 (302,850> Not current 8888ts 882,539 890,528 Total assets less current Ilabllltles 2,296,050 2,241,220 Creditors.. amounls lallin9 due after more than one year (132,974) (230,079) Total nat as80ts 2.183,076 2,011,141 Charlty fund• Restricted funds Unrestricted funds 20 20 127,891 2.036,185 101,951 1,909,190 Total fund8 2,163,076 2,011,141 Page 41 Sussex Emmaus (A Company Ilmlted by guaranteè) Registered number: 03130876 Balance 8h88t (continued) as at 31 March 2024 The entity was entil￿d to exemplion from audit under section 477 of the Companies Act 2006. The memb8r8 have nol required the enlty to obtain 8n audit lor lh8 year in qu851ion in accordance with section 476 of the Companies Act 2006. How8v8r, an audit 18 required in accordanc* with section 144 of Ihe Chariti88 Acl 2011. Th6 Trustees acknowledge thelr responslbilitles for complylng wtth Ihe requirements of the Act with re8pect to accounting records and preparation of financial 8tat8ment8. The financlal statements have been prepared in accordance wlth the provlslons applicabl& to entities subject to the small companies regime. The financlal statements were approved and authorlsed for Issue by the Trustees and 51gned on their behalf by,. Ro8oma Frlgge (Chair of Trustees) Date: 23 October 2024 The notes on pages 44 to 63 form part of these financial statement$. Page 42 Sussex Emmaus (A Company limitad by guarantee) Statom8nt of cash flow8 for the year onded 31 March 2024 2024 2023 Noto Cash flows from operatlng acllvltle8 Not cash used in operating activities 22 164,716 229,581 Cash flows from Investlng actlvltles Dividends, int8r8918 and r8nl8 from investmen18 Intere8t paid Purch88e of tangibl8 r￿ed 888el8 47,852 (21,343) (167,107) (255,436) 54,095 Nat cash u8ed In Invo8llng acllvlt108 (140,598> (201,341) Ca8h flow8 from financlng actlvltleB Repayments of borrowing 192,282} (91,883) Net ¢ash used In Ilnanclng actlvlttes 192,262) (91,683) Chango In cagh and cash aquival8nts in Iho year Cash and cash equtvalents at the beginning of the year 168,144) 1.092,518 (63,443) 1,155,961 Ca8h and cash equlvalents at the end of the year 23 1,024,374 1,092,518 The noles on pages 44 to 63 fonn part of these financial statements Page 43 Sussex Emmaus (A Company Ilmlted by guarantee) Notes to the flnanclal statements for the yoar ended 31 Illarch 2024 Goneral Inforniatk•n The Company 18 8 Company limited by guarant88. Th8 m8mb8rs ofthe Company are the Trustees named on page 1, Membership of the Company is also open to Companions, volunteers and employees who have served six months with the Community. In the evenl of the Company being wound up, the liability in re8pect of the guaranlee is limited to £1 per member of the Company. The registered office and principal place of the Charity is: Emm8US Drove Road Portslade Ea8t Su88ex 8N412PA Aceountlng pollcles 2.1 Ba818 of proparallon of flnanclal statements The financial stalements have been prepared in accordance with the Ch8rili88 SORP (FRS 102> Accounting and Reporting by Charities: Slatemenl of Recommended Practice applicable to charlties preparing their accounts In accordance wilh the Financlal Reporting Standard applicable in the UK and Republic of IreIar￿ {FRS 102) (effective 1 January 2019). the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Compani8s Act 2006. Sussex Emmaus meets the definltlon of a public benefit entity under FRS 102. Assets and liabiliti8$ are initialty recognised at hislorical cost or transaction value unless otherwi8e 81ated in the r818vant accounling policy. 2.2 Golng concern At the time of approving the financi81 statements. the Trustees h8ve reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus Ihe Truslees continue to adopt the going concem basis of accountin9 in preparing the financial 8talement8. 2.3 Income All income is recognised in the Stat8ment of Financial Activit188 once the charity has entltlement to the income, It is probable that the income will be received and the amount of income receivable can be measured reliably. For18gaci88, entitlement is taken as the e8r118r of the date on which either: the charity Ss aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to Ihe Trust that a distribution will be made, or when a distribution 18 received from the estate. Receipt of a legacy. in whol8 or in part, is only considered probable when the amount can be measured reliably and Ihe charity has been notified of the executorfs intention to make a distribution, Where legacies have been notIf￿d to the charity, or Ihe charity is aware of the granting of probat8, and the criteria for income recognition have not been mel, then th818gacy 18 treated a8 a contingent asset and disclosed if malerial. Income tax ￿e0Verable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of Ihe donation. Income tax recoverable in relation to investment income is recognised at the lime the investment income is receivable. Page 44 Su880x Emmau8 (A Company Ilmlted by guarantee) Notes to the flnanclal stalemenls for th• year endod 31 March 2024 Ac¢ountlng pollcl•• {contInu￿) 2.3 Income (conllnued) Shop and café incom8 18 recognised on 8 receipts basis. Dona18d goods for resal8 are Included as Income when they are sold. No amounts are included In the financial statements for servlces donated by volunteers. Companlons, accommcmyation contributions relate to amounts received in respect of Companlons. accommodation costs and are accounted for on a receivable basis. Rental Income Is accounted for on a receivable basls. Grant8 receivable are Irealed in accordanc8 with the Stal8m8nt of Recomm8nd8d Practic8, 'Accounting and Reporting by Charities" and are not recognlsed until the condition9 for entitlement, measure and certainty have been met. 2A Expendlturo Costs are induded in the statement of financial activities on an awrual basi8 inclu8iv8 of irrecoverabl8 VAT. Charitable activities and Govemance costs are costs incurred on the companV8 charitab18 Operations. including 8UPPOrt Costs and costs relating lo the govarnance of the company apportioned to charitable activities. 2.5 Government grants Grants of a revenue nalure are recognised in the ststement of comprehensive income In the same period as the related expenditure. 2.8 Interegt receivabla Interest on fund8 helj on deposit is included when receivable and the amount can be measured reliably by the Company; this 18 normally upon notification of th8 interest paid or payab18 by the Bank. 2.7 Taxatlon The Company is considered to pass th8 tests set out in Paragraph 1 Schedul8 e of the Flnance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Company is potentially exempt from taxation in respect of income or capital gains r8ceiv8d within categorie8 covered by Chapter 3 Part 11 of th8 Corporation Tax Act 2010 or Section 258 of the Taxation of Chargeable Gains Act 1992, to the e>Xent that such Income or gains are applied exclusively to charitable purposes. Pag8 45 Sussex Emmaus (A Company Ilmlted by guarantee) Notes to the flnanclal statements for the year ended 31 March 2024 Accountlng pollcles (contlnued) 2.8 Tanglble flxod assets and doprnclatlon Tangible fixed as88t8 are carried at C08t, net of depreciation and any provision for impaimient. Depreciation is provided at rates calculated to write off the cost of fixed asset$, less thelr estlmated resldual value, over thelr expected useful Ilves on the following bases.. Freehokl propety consisling ot, Freehold propety 2.5% 8tr8ight line Cottage 50A straight line Carpark 10% straight line Emmaus by the Sea 18.67% 81raighl line Motor v8hicl88 20% straight line Flxlures, frttings and equipment 33.33% straight line Th8 Company capitali888 taryibl8 fixed as88t addition8 in exc8S8 of the value of £750. 2.9 Stocks Stocks are valued at the lower of cost and net realisable valued on a weighted average cost basis. stock does not include goods donated for sale as it is impractical lo measure reliably the fair value of these donated items. 2.10 Debtors Trade and olher deblors are recognised at the s8tt18m8nl amount after any trade discount offered. Prepayment8 are valued at th8 amount prepaid n8t of any tr8de discounts due. 2.11 Cash at bank and In hand C88h 8t b8nk and in hand indudeg cash and short term highly liquld Investments with a short maturlty ofthree months or less from the date of acquisition or opening of the deposit or similar account. 2.12 Llabllltlo8 and provl8lon8 Llabilitles are recognised when there is an obligats'on al the Balance sheet date as a result of a past event, it is probable Ihat a transfer of economic benefit will b8 r8quir8d in 88tt18m8nt, and the amount of the settlement can b8 88timaled reliably. Li8biliti88 8f8 recogni88d 81 the amount that the company anticipates it will pay lo settle the debt or the amount il has received as advanced payments for the goc*Js or services it musl provide. Provisions are measured at the best e8timate of the amount8 required to Settle the obligation. Where the 8ffect of the lim8 value of money is material, th8 provision 18 based on the present value of those amounts, discounted at the pre-tax dlscounl rate that reflect8 the risks specific to the liability. The Unwir￿lng of the discount is recognised wilhin interest payable and similar charges. 2.13 Financial In8trum•nt8 The Company only has financial assets and financial liabilities of a kind Ihal qualify as basic financial instruments. 8asic financial instruments are initially recognised at transaction value and subsequently measured at their selllement value with the exception of bank loans which are subsequently measured al amortised cost using the effective inlerest melhod. Page 46 Sussex Emmaus {A Company Ilmlted by guarantee) Notes to tha flnanclal statements for tho year ended 31 March 2024 Accountlng pollcl8s (¢ontInu￿) 2.14 Operating 108809 Rentals under operaling leases are charged to the Statement of financlal activitles incorporating income and 8XP8ndilure account on a slraighl line basi8 over the lea88 term. 2.16 Penslons The charity operateg a defined contribution p8nsion schem8 and th8 P8n8ion ch8rg8 T8pf888nts the amounts payable by the charity to the fund in respect of the year. 2.16 Fund accountlng G8n8ral funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been de8i9nated for other purposes. Designated funds compri88 unr8Stricl8d funds that have been set a3ide by the Tru8tees for particular purposes. The aim and use of each designated fund is set out in the notes lo the financial statements. Restricted funds are funds which ore to be used in accordance with specific r8Strictions imposed by donors or whtch have been raised by the charlty lor particular purposes. The costs of raislng and administering such funds are charged against the specrfic fund. The aim and use of each restricted fund is 89t out in th8 nole8 to the financial 8tatement8. 2.17 Voluntary work All the Trustees donate their time spent running the charity on 8 voluntary basis and do not r8c&ive any remuneralion for their work. The charity also relies on volunteers to assist with its activities. Crltlcal accountlng estlmates and areas of Judgment E81imat88 and judgments ar8 continually evaluated and are based on historical experience and other factors, including expectation8 of future event8 thal are beli8ved lo be re880nabl8 under the circumstances. Critical accounting e8timat88 and 888umption8- The Company makes estimales and assumptions conceming the future, The resulting accounting 881imat88 and 88sumptMJn8 will, by definition, 88ldom equal the related actual results. The estimate8 and assumptions that have a sbanif￿anI risk of causing a malerial adjustment to th8 carrying amount8 of assels and liabilities within the next financial year are dlscussed below. Depreciation - Th8 Company h8s a policy to depreciate fixed as88ts over their useful economic liv88 which are listed within accounting policy 2.8. Management deem the associated depreciation rates attached to each fixed asset category to be an accurate reflection of each fixed assets useful economic Ilfe. Prepayments - The Company has a policy to recogni88 exp8nditur8 in th8 P8riod il r81at8s to. Page 47 Sussex Emmaus (A Company Ilmlted by guarantee) Note8 to the financial 8tatemonls for the year ended 31 March 2024 Incomo from donatlon8 and legacl08 Re9trlcted Unre$trlct•d funds fund8 2024 2024 Total fund8 2024 Donations and gifts Legacles Grants 67,716 83,073 39,000 130,789 39,000 $6,056 56,056 123,772 102,073 225,845 Restricted Unre8trict8d funds funds 2023 2023 Tolal funds 2023 Donations Legacies Grants Government grants 145,190 42,166 5,000 187,356 5,000 30,763 3,080 30,763 3,080 179,033 47,166 228,199 Incom• from charftable activltle8 Unr88tricl8d funds 2024 Total funds 2024 Shops, Cafe and Accommodation Contribution8 1,584,218 1,584.216 Unraslricted funds 2023 Total funds 2023 Shops, Cafe and Accommodation Contribulions 1,500,678 1,500,876 Page 48 Sussex Emmaus {A Company Ilmlted by guarantee) Notes to the flnanclal statements for tho yoar onded 31 March 2024 Analysls of Income from charltable actlvftles by type of Income Unrestrlcted funds 2024 Total fund8 2024 Shop Income Cafe income Accommodation conlributions 763.979 148,285 872,179 763.979 148,286 672,179 1,584,443 1,584.443 Unrestricted funds 2023 Total funds 2023 Shop income Caf8 incom8 Accommodalion contribution8 806.484 109,849 584,343 806,484 109,849 584,343 1,500,676 1,500,676 Inv881m8nt incom8 Unrn8trlclod funds 2024 Total funds 2024 Rental income Interest receivable 40,575 7,277 40.576 7,277 47,852 47,852 Unr881ricted funds 2023 Total funds 2023 Rental income Interest receivable 50,450 3,645 50,450 3,645 54,095 54,095 Page 49 Sussex Emmaus (A Company Ilmlted by guarantee) Notes to the flnanclal statements for Ihe year ended 31 March 2024 Other Incomlng resources Unr•$trlct•d funds 2024 Total fund8 2024 Total funds 2023 Other Income 30,000 30,000 Analysls of expendlture on charftable actlvltle5 Summary by fund type R08trl¢tod Unre8trlcted funds funds 2024 2024 Total 2024 Shops, Cafe and Accorffliodalion Contribution8 63,788 1,672,192 1,735.978 Restricted Unre8tricl8d funds funds 2023 2023 Total 2023 Shops, Cafe and Accommodalion Contributions 79,963 1.482,420 1,582,383 10. Analy81s of expendlture by actlvltl88 Actlvltlos undortakon dlrectly 2024 Support costs 2024 Total funds 2024 Shops, Cafe and Accommodalion Contribution8 705,917 1.030,081 1,735,978 Page 50 Sussex Emmaus IA Company Ilmlted by guarantee) Notes to the flnanclal stalements for th8 year ended 31 March 2024 10. Anatysls of expendlture by actlvltles Icontlnued) Activities undertaken direclty 2023 Support CO818 2023 Total funds 2023 Shops, Cafe and Accommodation Conlributions 719.915 842,468 1,562,383 Analysls of dlrect costs Shops, Cafe and Companion 2024 Total funds 2024 Staff cosls Companlons expenses Cafe & shops Other direct Costs Communty 8XP8ns8S 143,829 260,879 241,542 14,521 45,146 143,829 260,879 241,642 14,521 46,146 705,917 705,917 Shops, Cafe and Companion 2023 Total fund8 2023 Staff c08t8 Companion exp8n888 Caf8 & 8hop8 other direct cosls Community expenses 184,427 198,677 205,157 22,009 131.645 164,427 196,677 205,157 22,009 131,645 719,915 719,915 Page 51 Sussex Emmau$ (A Company Ilmlted by guarantee) Notes to the flnanclal statements for tho year onded 31 laarch 2024 10. Analysls of •xpendltur• by actlvltl•s Icontlnued) Analy818 of 8UPPOrt C08ts Shops, Cafo and Companlon 2024 Total fund8 2024 Sl8ff costs Depreciation Premises c08t8 Management and 8dmini8tration Solidarity Audit and accountancy fees VAT annual adjustment 380,106 104.289 279,587 141,486 56.224 14.645 53.724 380,106 104,289 279,587 141,486 58,224 14,645 53,724 1,030,061 1,030,061 Shops, Cafe and Companion 2023 Total funds 2023 staff costs Depreciation Premi888 C08t8 Management and administration Solidarity Audit and accountancy VAT annual adjustment 298,408 83,858 243,690 118,993 51,371 7.584 38,584 298,408 83,858 243,690 118,993 51,371 7,564 38,584 842,468 842,468 11. Auditor8, romuneratlon 2024 2023 Fees payable to the Companls auditor for the audit of the Company's annual accounts 9,000 7,975 Page 52 Sussex Emmaus IA Company Ilmlted by guarantee) Notes to the flnanclal statements for the year ènded 31 March 2024 12. Staff costs 2024 2023 Wages and salaries Soclal security costs Contribution to defined conlribulion p8n8ion 8ch8meB 477,035 31,B92 15.008 403,682 40,467 18,686 523,936 462,835 The av8rag8 number of per80n8 employed by the Company during Ihe year was as follows.. 2024 No. 2023 No. staff 19 17 No ernployee received remuneration amounting to more than £60,000 in either year. The charity deems key management personnel to b8 T¥u8t888 arKI members of staff that attend Board meetings. The staff that do, comprise.. Karen Ch8pman Joel Lewis Dawn Watson-Jones (reslgned 15 June 2023) Karen Gordon Shameer Maradikk81 (appoinled 25 April 2023 and rgsigned 29 September 2023) Kaya Mesnard (appointed S September 2023) Tot81 remuneration ol key managem8nt personnel: £202,285 {2023'. £144.730). 13. Tru8teBs' remunerallon and expenses Durlng the year, no Trustees received any remun8r8tion or other b8n8filB (2023 - £NIL). During the year ended 31 March 2024, there was no Trustee expenses reimbursed12023 - £158 to 2 Truslees). Page 53 Sussex Emmaus (A Company limited by guarantee) Notes to tho financlal statements for tha year ended 31 March 2024 14. Tangible fixed a888t8 Freehold property Motor Flxtures and v6hlcles flttlngs Total Cost At 1 Aprll 2023 Additions 1,921,893 77.065 113,017 37,619 395,003 02,523 2,429.913 167,107 At 31 March 2024 1,99B,958 150,536 447,526 2,597,020 Depreclatlon At 1 Aprll 2023 Charge for the year 611.142 41,308 112,989 7.604 365,090 55,476 1,079,221 104,288 At 31 March 2024 652A60 120,493 410,566 1,183,509 Net book valuo At 31 March 2024 1,346,608 30,043 36,960 1,413,511 At 31 March 2023 1,310,751 28 39,913 1,350,692 The property was valued for insurance purposes at £7,545,834 in 2012. However as per the accounting policy the propety has been included at cost less accumulated d8pr8ciation. In the event of the undeveloped land being dlsposed of or the charity being wound up. the former Dwner has the right lo receive a proportion of the proceeds. The fr88hold property with the net book value of£1,346,508 (2023: £1,310,751) is provided as security on the loans, please see note 19. 15. stocks 2024 2023 Flnished goods and goods for resaje 7,249 4,148 Pag8 54 Sussex Emmaus (A Company Ilmlted by guaranlee) Notes to the flnanclal statements for Iho yoar ondod 31 March 2024 16. Debtor8 2024 2023 Due wlthln one year Other debtors Prepayments and accrued income 106,616 67,264 44,726 51,986 173.880 96,712 17. Current assot Investments 2024 2023 Deposit accounts 664,401 555,961 18. Creditors: Amount8 falling duo wlthin one year 2024 2023 RRLF loan Bank overdraft8 Charity Bank loan Trade creditors other taxatlon and soclal security other creditors Accruals and deferred Incom8 1,797 263 8,442 108,967 62,891 41,289 9,S98 86.940 8,456 76,096 41,765 47,781 41.812 323,227 302,850 Page 55 Sussex Emmaus (A Company limlted by guarantea) Notes to the flnanclal statements for the year andod 31 March 2024 19. Crodltors: Amounts falllng due after more than one yoar 2024 2023 Charity Bank loan RRLF loan 49,270 83.704 54,024 176,055 132.974 230.079 Includ@d within the above ar8 amounts falling due as follows: 2024 2023 Between one and two years Charity Bank loan RRLF loan 9,172 83,704 8,852 93,277 Betwean two and flve years Charity Bank108n RRLF loan 27,517 29,088 82,778 Over fivo yearn Charity Bank loan 12,681 16,104 The bank loan is secured by way of first fix legal charge, dated 29 September 2009, with full title guarantee over the freehold Interest in the freehold property known as 18 & 20 Drove Road, Portslade, Brighton, BN412PA. In th8 prior year the charity obtalned a loan (Resilience and Recovery Loan Fund) offered by the Social Investment Bank. The loan was designed to help charit18s who experienced disruption to their usual buslness model as a result of Covid-19. It is 88cured by way of 8 mortgage debenture coverlng all the charity8 as88t8.' the d8bentur8 comprises a first fixed charge with full title guarantee as a continuing security lor the payment and discharge of the secured liabilities, dated 17 Decemb8r 2020, with a t]oating charge covering all propety or undertaking of the company. Page 56 Sussex Emmaus (A Company Ilmlted by guardnteel Notes to the flnanclal statements for Iho year onded 31 March 2024 20. Statement of funds Statement of funds - curront yoar Balance at 31 March 2024 Balanco at 1 Aprll 2023 Transfers Inlout Income Expendlture Unrestrlcted funds DeBlgnated funds Flxed asset fund C.Mares Fund 1,199,519 350 (86,2241 1,113.295 360 1,199.869 (88,224) 1,113.646 G8neral funds General Funds 709,321 1,764,141 (1,672,192) 120,270 921,540 Total Unrestrict8d fund8 1,909,190 1,764,141 11,672,192) 34,046 2,035.185 Page 57 Sussex Efflmaus (A Company Ilmfted by guarantee) Notes to the flnanclal statemenls for the year ended 31 March 2024 20. Stalement of funds Icontlnued) Reslrlcted funds Companion Kitchen Sundial fund Solitary beds 18 Drove Road renovalions Falrmark- new entrance Fridge1F￿eZer Building project Food co8t8 Support 8taff Coun8elling Insulation & fire audrt Laptops for company 64,905 (28,509) 36,396 100 100 5,000 (6,0001 81.041 12,600 2,940 2.960 (4.2521 76,789 12,500 1,656 (1,2861 6.000 17,000 18,151 4A66 7,260 2,000 (7,9601 (17,0001 (18,1511 (8,8761 17,2501 11,6491 2,410 451 101.951 123,772 (83,7861 134,0461 127,891 Total of fund8 2,011,141 1.887.913 (1,735,978) 2,183,078 Page 58 Sussex Emmaus (A Company Ilmfted by guaranlee) Notes to the flnanclal statements for the year endod 31 March 2024 20. Statement of funds (contlnued) Statemant of funds - prlor yoar Balance at 31 March 2023 Balance at 1 April 2022 Transfers i￿out Income Expenditure Unregtrlcled funds Deslgnated funds Fixed asset fund Comp8nion8 (Peter Goldsmith) fund C.Mares Fund 1,028,414 171,105 1,199,519 368 350 (368) 350 1.029,132 170,737 1,199,869 Gonoral fund8 General Funds 638,665 1.601,937 (1,482,420) (48,861) 709.321 Tolal Unro8tricted fund8 1.667,797 1.601,937 {1,482,420) 121,876 1,909.190 Regtrlcted funds Greenhou80 fund Sundial fund Training Solltary beds Boiler fund 18 Drov8 Road renovations IT upgrad8 Fairmaik- new entrance FridgelFreezer Building proje¢t Food costs Commercial composter Companion expenses Internal decoration Support 818ff Counselling Insulation & fire audrt Laptops for company 1,435 100 (1,435) 100 3,000 3,500 (3,000) {3,5001 (1.0451 (4,2521 (7,1851 1.045 85,293 7.185 12,500 81,041 12,500 2,940 2,960 2,940 41,302 3,412 (38,3421 58 5,676 1.032 4,634 {3,470} (5,67e) (27,725) (4,634) (7,731) (10,310) 26,693 7,731 9.000 3,080 78,375 3,720 2,079 2,410 (5,159) (78,375) Page 59 Sussex Emmaus (A Company limitod by guarantee) Notes to the financial statements for th• year ènded 31 March 2024 20. Ststoment of fund8 (contlnued) Statement of funds - prfor year {contlnuad) Balance at 31 March 2023 Balance at 1 April 2022 Transfers inlout Income Expenditure 124,757 179,033 {79,963) (121,8761 101,951 Tolal of fundg 1,792.554 1.780,970 (1,562.383) 2,011,141 Detalls of funds Fixed asset fun This fund represents the value of the freehold propety less the assoclated loans. 18 Drove Road Fund Funding to renovate and tum the propety into an HMO. Fairmark Funding towards new permanent car park as part of the arrivals project, pre planning application ha5 been carried out and pa88ed. We ar8 aboul to apply for full planning. 21. Analy818 of net as8818 between funds Analysls of net assels between funds - current perlod Restrlcted Unre8trlcled fund8 funds 2024 2024 Total funds 2024 Tangible fixed assets Current assets Creditors due within one year Creditors due in more Ihan one year 1,413,511 1.413,511 1,077,875 1,205,766 (323,2271 (323,227> (132,9741 (132,974) 127,891 Total 127,891 2,035,185 2,163,OT6 Page 60 Sussex Emmaus (A Company Ilmlted by guarantee) Notes to the flnanclal statements for the yoar ended 31 March 2024 21. Analysls of net assets between funds (contlnued) Analy818 of net a88atg botweon funds - prlor perfod Endowment funds 2023 Restricted Unr88trict8d funds funds 2023 2023 Tolal funds 2023 Tangible fixed assets Current 8s8ets Creditors due within one year Creditor8 du8 in more th8n one y88r 86,338 15,613 1,264.354 1,350,692 1,177,141 1,193,378 1302.226) (302,850) 1230,079) (230,079) 624 (624) Total 101,951 1.909.190 2,011,141 22. Roconclllatlon ol net movwnent In funds to net cash flow from operatlng actlvltles 2024 2023 Nel incom8 for the period (as per Statement of Financial Activities) 161,935 218,587 Adjustments for: Depreclalion charges Dividends, interests and ￿nts from Investments Interest paid Increase in stock8 Increase in debtor8 Increa8el(dgcrea8e) in credilors 104,288 147,B521 21,343 (3.101 } (27,1181 (34,779) 78,510 (54,095) {2,448) (37.4651 26,492 Not cash provlded by operatlng actlvllles 164,716 229,581 23. Analy818 of cash and cash equlvalent8 2024 2023 Ca8h in h8nd Liquid investments Overdraft faciSity 18payable on demand 460,236 564,401 1263) 536,557 565,961 Total cash and cash equivalents 1,024,374 1,092,518 Page 61 Sussex Emmaus (A Company Ilmited by guaranteo) Notes to the financial stal8ments for the year ended 31 March 2024 Analy818 of change8 In nat debt Othèr non- ca8h At 31 March ¢hange$ 2024 At 1 Aprll 2023 Cash flows Ca8h 81 b8nk and in hand Bank ov8rdraft8 repayabl8 on demand Debt du8 Within 1 year Debt due after 1 year Liquid investments 536,557 (76,321) (263) 95,396 460,236 (263 (100,239) (100,239) 97,105 (132,974 564,401 (95,3961 1230,079) 656,961 8,440 767,043 27,262 13.134) 791,161 25. Penslon commltmonts The charty operates a defined contribution penslon scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. Pension contributions due at the end of the year amounted to £1,410 (2023.. £1,351). Total contributions payable by the charity for the yaar totalled £15,008 (2023: £18,686). 26. Operatlng lea88 commltments At 31 March 2024 the Company had commitments to make future minimum lease payments under non- cancellable operating leases as follows: 2024 2023 Not later th8n 1 y88r Later than 1 year and not later than 5 year8 13,089 79,103 92,192 The followlng lease payments have been recognised a8 an expense in the Statement of financial activilie5'. 2024 2023 Operating lease renlals 9,337 27. Related party transacllons There were no related party transactlons during the year. Page 62 Sussex Emmaus (A Company Ilmlted by guarantee> Notes to the flnanclal statements for the year ended 31 Ma￿h 2024 28. Controlllng party The charty 18 controlled by its Tru8tees. Page 63 **Sussex Emmaus** ## **(A Company limited by guarantee)** ## **Independent auditors' report to the Members of Sussex Emmaus** ## **Opinion** We have audited the financial statements of Sussex Emmaus (the 'charitable company') for the year ended 31 March 2024 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 2024 and of its incoming resources and application of resources, including its income and expenditure for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Charities Act 2011. ## **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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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 the charitable company'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. Page 35 **Sussex Emmaus** **(A Company limited by guarantee)** ## **Independent auditors' report to the Members of Sussex Emmaus (continued)** ## **Other information** The other information comprises the information included in the Annual report other than the financial statements and our Auditors' 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. ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: - the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or - sufficient accounting records have not been kept; or - the financial statements are not in agreement with the accounting records and returns; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of trustees** As explained more fully in the Trustees' responsibilities statement, 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. 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. Page 36 **Sussex Emmaus** **(A Company limited by guarantee)** ## **Independent auditors' report to the Members of Sussex Emmaus (continued)** ## **Auditors' responsibilities for the audit of the financial statements** We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 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 Auditors' 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 is detailed below: ## _Capability of the audit in detecting irregularities, including fraud_ Based on our understanding of the charity and the sector as a whole, and through discussion with the Trustees and other management (as required by auditing standards), we identified that the principal risks of noncompliance with laws and regulations related to health and safety, GDPR and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities SORP (FRS 102) Second Edition (released October 2019), the Companies Act 2006 and other relevant charity legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated Trustees' and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks related to posting inappropriate journal entries to manipulate the desired financial results and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the engagement team included: - Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety) and fraud, and review of the reports made by management; and - Assessment of identified fraud risk factors; and - Challenging assumptions and judgements made by management in its significant accounting estimates; and - Performing analytical procedures to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and - Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and - Reading minutes of meetings of those charged with governance, reviewing internal audit reports and reviewing correspondence with relevant tax and regulatory authorities; and - Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting the transactions; and - Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation. Page 37 **Sussex Emmaus** ## **(A Company limited by guarantee)** ## **Independent auditors' report to the Members of Sussex Emmaus (continued)** 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 non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the charitable company's internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees. - Conclude on the appropriateness of the Trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' report. However, future events or conditions may cause the charitable company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Page 38 **Sussex Emmaus** ## **(A Company limited by guarantee)** ## **Independent auditors' report to the Members of Sussex Emmaus (continued)** ## **Use of our report** This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed. ## **Kreston Reeves LLP** Chartered Accountants Statutory auditors Brighton Date: 6 November 2024 Kreston Reeves LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006. Page 39 Sussex Emmaus (A Company Ilmlted by guarantee) Statement of flnanclal acllvltles {Incorporatlng InGomo and expendlture account) for the year ended 31 March 2024 R•$trlct•d Unrestrfcted funds funds 2024 2024 Total funds 2024 Total funds 2023 Note Income from: Donations, legacies and grants Charitable actlvitles.. Shop income Cafe Income Accommodation contrlbutlons Investment8 Oth8r incom8 123,772 102,073 225,845 228,199 764,159 148,285 671,772 47,852 30,000 764,159 148,286 671,772 47,852 30,000 808,484 109,849 584,343 54,095 Total Income 123,772 1,784,141 1,8B7,913 1,780,970 Expendlture on: Charitable activities 63,786 1,672,192 1,736,978 1,562,383 Total expendlture 63,786 1,672,192 1,735,978 1,562,383 Net Incomo Transfers be￿een funds 59,986 134,046) 91,949 34,046 151,935 218,587 20 Net movement in funds 18urplus for lh• yoar 25,940 125,995 161,936 218,587 Reconclllatlon of fund¥: Total funds broughl forward Net movement In funds 101,951 25.940 1,909,190 125.995 2,011,141 151,935 1.792,554 218,587 Total funds carrled lorward 127.891 2.036,185 2,163,076 2,011,141 Th8 Statement of financlal activilies Sncludes all gains and losses recognised in the yaar. The notes on pages 44 to 63 form part of Ihese financial statements. Page 40 Sussex Emmaus (A Company IlmSted by guarantee) Registered number: 03130876 Balance sheet as at 31 March 2024 2024 2023 Note Flxad 8888ts Tangible assets 14 1,413.511 1,350,692 1,413,511 1,350,692 Current assets Stocks D8btor8 Inv88tment8 Cash at bank and in hand 15 18 17 7,249 173,880 564,401 460,236 4,148 98,712 555,981 536,557 1,205,766 1,193,378 Creditors: amount3 falling due within one year 18 (323,2271 (302,850> Not current 8888ts 882,539 890,528 Total assets less current Ilabllltles 2,296,050 2,241,220 Creditors.. amounls lallin9 due after more than one year (132,974) (230,079) Total nat as80ts 2.183,076 2,011,141 Charlty fund• Restricted funds Unrestricted funds 20 20 127,891 2.036,185 101,951 1,909,190 Total fund8 2,163,076 2,011,141 Page 41 Sussex Emmaus (A Company Ilmlted by guaranteè) Registered number: 03130876 Balance 8h88t (continued) as at 31 March 2024 The entity was entil￿d to exemplion from audit under section 477 of the Companies Act 2006. The memb8r8 have nol required the enlty to obtain 8n audit lor lh8 year in qu851ion in accordance with section 476 of the Companies Act 2006. How8v8r, an audit 18 required in accordanc* with section 144 of Ihe Chariti88 Acl 2011. Th6 Trustees acknowledge thelr responslbilitles for complylng wtth Ihe requirements of the Act with re8pect to accounting records and preparation of financial 8tat8ment8. The financlal statements have been prepared in accordance wlth the provlslons applicabl& to entities subject to the small companies regime. The financlal statements were approved and authorlsed for Issue by the Trustees and 51gned on their behalf by,. Ro8oma Frlgge (Chair of Trustees) Date: 23 October 2024 The notes on pages 44 to 63 form part of these financial statement$. Page 42 Sussex Emmaus (A Company limitad by guarantee) Statom8nt of cash flow8 for the year onded 31 March 2024 2024 2023 Noto Cash flows from operatlng acllvltle8 Not cash used in operating activities 22 164,716 229,581 Cash flows from Investlng actlvltles Dividends, int8r8918 and r8nl8 from investmen18 Intere8t paid Purch88e of tangibl8 r￿ed 888el8 47,852 (21,343) (167,107) (255,436) 54,095 Nat cash u8ed In Invo8llng acllvlt108 (140,598> (201,341) Ca8h flow8 from financlng actlvltleB Repayments of borrowing 192,282} (91,883) Net ¢ash used In Ilnanclng actlvlttes 192,262) (91,683) Chango In cagh and cash aquival8nts in Iho year Cash and cash equtvalents at the beginning of the year 168,144) 1.092,518 (63,443) 1,155,961 Ca8h and cash equlvalents at the end of the year 23 1,024,374 1,092,518 The noles on pages 44 to 63 fonn part of these financial statements Page 43 Sussex Emmaus (A Company Ilmlted by guarantee) Notes to the flnanclal statements for the yoar ended 31 Illarch 2024 Goneral Inforniatk•n The Company 18 8 Company limited by guarant88. Th8 m8mb8rs ofthe Company are the Trustees named on page 1, Membership of the Company is also open to Companions, volunteers and employees who have served six months with the Community. In the evenl of the Company being wound up, the liability in re8pect of the guaranlee is limited to £1 per member of the Company. The registered office and principal place of the Charity is: Emm8US Drove Road Portslade Ea8t Su88ex 8N412PA Aceountlng pollcles 2.1 Ba818 of proparallon of flnanclal statements The financial stalements have been prepared in accordance with the Ch8rili88 SORP (FRS 102> Accounting and Reporting by Charities: Slatemenl of Recommended Practice applicable to charlties preparing their accounts In accordance wilh the Financlal Reporting Standard applicable in the UK and Republic of IreIar￿ {FRS 102) (effective 1 January 2019). the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Compani8s Act 2006. Sussex Emmaus meets the definltlon of a public benefit entity under FRS 102. Assets and liabiliti8$ are initialty recognised at hislorical cost or transaction value unless otherwi8e 81ated in the r818vant accounling policy. 2.2 Golng concern At the time of approving the financi81 statements. the Trustees h8ve reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus Ihe Truslees continue to adopt the going concem basis of accountin9 in preparing the financial 8talement8. 2.3 Income All income is recognised in the Stat8ment of Financial Activit188 once the charity has entltlement to the income, It is probable that the income will be received and the amount of income receivable can be measured reliably. For18gaci88, entitlement is taken as the e8r118r of the date on which either: the charity Ss aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to Ihe Trust that a distribution will be made, or when a distribution 18 received from the estate. Receipt of a legacy. in whol8 or in part, is only considered probable when the amount can be measured reliably and Ihe charity has been notified of the executorfs intention to make a distribution, Where legacies have been notIf￿d to the charity, or Ihe charity is aware of the granting of probat8, and the criteria for income recognition have not been mel, then th818gacy 18 treated a8 a contingent asset and disclosed if malerial. Income tax ￿e0Verable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of Ihe donation. Income tax recoverable in relation to investment income is recognised at the lime the investment income is receivable. Page 44 Su880x Emmau8 (A Company Ilmlted by guarantee) Notes to the flnanclal stalemenls for th• year endod 31 March 2024 Ac¢ountlng pollcl•• {contInu￿) 2.3 Income (conllnued) Shop and café incom8 18 recognised on 8 receipts basis. Dona18d goods for resal8 are Included as Income when they are sold. No amounts are included In the financial statements for servlces donated by volunteers. Companlons, accommcmyation contributions relate to amounts received in respect of Companlons. accommodation costs and are accounted for on a receivable basis. Rental Income Is accounted for on a receivable basls. Grant8 receivable are Irealed in accordanc8 with the Stal8m8nt of Recomm8nd8d Practic8, 'Accounting and Reporting by Charities" and are not recognlsed until the condition9 for entitlement, measure and certainty have been met. 2A Expendlturo Costs are induded in the statement of financial activities on an awrual basi8 inclu8iv8 of irrecoverabl8 VAT. Charitable activities and Govemance costs are costs incurred on the companV8 charitab18 Operations. including 8UPPOrt Costs and costs relating lo the govarnance of the company apportioned to charitable activities. 2.5 Government grants Grants of a revenue nalure are recognised in the ststement of comprehensive income In the same period as the related expenditure. 2.8 Interegt receivabla Interest on fund8 helj on deposit is included when receivable and the amount can be measured reliably by the Company; this 18 normally upon notification of th8 interest paid or payab18 by the Bank. 2.7 Taxatlon The Company is considered to pass th8 tests set out in Paragraph 1 Schedul8 e of the Flnance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Company is potentially exempt from taxation in respect of income or capital gains r8ceiv8d within categorie8 covered by Chapter 3 Part 11 of th8 Corporation Tax Act 2010 or Section 258 of the Taxation of Chargeable Gains Act 1992, to the e>Xent that such Income or gains are applied exclusively to charitable purposes. Pag8 45 Sussex Emmaus (A Company Ilmlted by guarantee) Notes to the flnanclal statements for the year ended 31 March 2024 Accountlng pollcles (contlnued) 2.8 Tanglble flxod assets and doprnclatlon Tangible fixed as88t8 are carried at C08t, net of depreciation and any provision for impaimient. Depreciation is provided at rates calculated to write off the cost of fixed asset$, less thelr estlmated resldual value, over thelr expected useful Ilves on the following bases.. Freehokl propety consisling ot, Freehold propety 2.5% 8tr8ight line Cottage 50A straight line Carpark 10% straight line Emmaus by the Sea 18.67% 81raighl line Motor v8hicl88 20% straight line Flxlures, frttings and equipment 33.33% straight line Th8 Company capitali888 taryibl8 fixed as88t addition8 in exc8S8 of the value of £750. 2.9 Stocks Stocks are valued at the lower of cost and net realisable valued on a weighted average cost basis. stock does not include goods donated for sale as it is impractical lo measure reliably the fair value of these donated items. 2.10 Debtors Trade and olher deblors are recognised at the s8tt18m8nl amount after any trade discount offered. Prepayment8 are valued at th8 amount prepaid n8t of any tr8de discounts due. 2.11 Cash at bank and In hand C88h 8t b8nk and in hand indudeg cash and short term highly liquld Investments with a short maturlty ofthree months or less from the date of acquisition or opening of the deposit or similar account. 2.12 Llabllltlo8 and provl8lon8 Llabilitles are recognised when there is an obligats'on al the Balance sheet date as a result of a past event, it is probable Ihat a transfer of economic benefit will b8 r8quir8d in 88tt18m8nt, and the amount of the settlement can b8 88timaled reliably. Li8biliti88 8f8 recogni88d 81 the amount that the company anticipates it will pay lo settle the debt or the amount il has received as advanced payments for the goc*Js or services it musl provide. Provisions are measured at the best e8timate of the amount8 required to Settle the obligation. Where the 8ffect of the lim8 value of money is material, th8 provision 18 based on the present value of those amounts, discounted at the pre-tax dlscounl rate that reflect8 the risks specific to the liability. The Unwir￿lng of the discount is recognised wilhin interest payable and similar charges. 2.13 Financial In8trum•nt8 The Company only has financial assets and financial liabilities of a kind Ihal qualify as basic financial instruments. 8asic financial instruments are initially recognised at transaction value and subsequently measured at their selllement value with the exception of bank loans which are subsequently measured al amortised cost using the effective inlerest melhod. Page 46 Sussex Emmaus {A Company Ilmlted by guarantee) Notes to tha flnanclal statements for tho year ended 31 March 2024 Accountlng pollcl8s (¢ontInu￿) 2.14 Operating 108809 Rentals under operaling leases are charged to the Statement of financlal activitles incorporating income and 8XP8ndilure account on a slraighl line basi8 over the lea88 term. 2.16 Penslons The charity operateg a defined contribution p8nsion schem8 and th8 P8n8ion ch8rg8 T8pf888nts the amounts payable by the charity to the fund in respect of the year. 2.16 Fund accountlng G8n8ral funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been de8i9nated for other purposes. Designated funds compri88 unr8Stricl8d funds that have been set a3ide by the Tru8tees for particular purposes. The aim and use of each designated fund is set out in the notes lo the financial statements. Restricted funds are funds which ore to be used in accordance with specific r8Strictions imposed by donors or whtch have been raised by the charlty lor particular purposes. The costs of raislng and administering such funds are charged against the specrfic fund. The aim and use of each restricted fund is 89t out in th8 nole8 to the financial 8tatement8. 2.17 Voluntary work All the Trustees donate their time spent running the charity on 8 voluntary basis and do not r8c&ive any remuneralion for their work. The charity also relies on volunteers to assist with its activities. Crltlcal accountlng estlmates and areas of Judgment E81imat88 and judgments ar8 continually evaluated and are based on historical experience and other factors, including expectation8 of future event8 thal are beli8ved lo be re880nabl8 under the circumstances. Critical accounting e8timat88 and 888umption8- The Company makes estimales and assumptions conceming the future, The resulting accounting 881imat88 and 88sumptMJn8 will, by definition, 88ldom equal the related actual results. The estimate8 and assumptions that have a sbanif￿anI risk of causing a malerial adjustment to th8 carrying amount8 of assels and liabilities within the next financial year are dlscussed below. Depreciation - Th8 Company h8s a policy to depreciate fixed as88ts over their useful economic liv88 which are listed within accounting policy 2.8. Management deem the associated depreciation rates attached to each fixed asset category to be an accurate reflection of each fixed assets useful economic Ilfe. Prepayments - The Company has a policy to recogni88 exp8nditur8 in th8 P8riod il r81at8s to. Page 47 Sussex Emmaus (A Company Ilmlted by guarantee) Note8 to the financial 8tatemonls for the year ended 31 March 2024 Incomo from donatlon8 and legacl08 Re9trlcted Unre$trlct•d funds fund8 2024 2024 Total fund8 2024 Donations and gifts Legacles Grants 67,716 83,073 39,000 130,789 39,000 $6,056 56,056 123,772 102,073 225,845 Restricted Unre8trict8d funds funds 2023 2023 Tolal funds 2023 Donations Legacies Grants Government grants 145,190 42,166 5,000 187,356 5,000 30,763 3,080 30,763 3,080 179,033 47,166 228,199 Incom• from charftable activltle8 Unr88tricl8d funds 2024 Total funds 2024 Shops, Cafe and Accommodation Contribution8 1,584,218 1,584.216 Unraslricted funds 2023 Total funds 2023 Shops, Cafe and Accommodation Contribulions 1,500,678 1,500,876 Page 48 Sussex Emmaus {A Company Ilmlted by guarantee) Notes to the flnanclal statements for tho yoar onded 31 March 2024 Analysls of Income from charltable actlvftles by type of Income Unrestrlcted funds 2024 Total fund8 2024 Shop Income Cafe income Accommodation conlributions 763.979 148,285 872,179 763.979 148,286 672,179 1,584,443 1,584.443 Unrestricted funds 2023 Total funds 2023 Shop income Caf8 incom8 Accommodalion contribution8 806.484 109,849 584,343 806,484 109,849 584,343 1,500,676 1,500,676 Inv881m8nt incom8 Unrn8trlclod funds 2024 Total funds 2024 Rental income Interest receivable 40,575 7,277 40.576 7,277 47,852 47,852 Unr881ricted funds 2023 Total funds 2023 Rental income Interest receivable 50,450 3,645 50,450 3,645 54,095 54,095 Page 49 Sussex Emmaus (A Company Ilmlted by guarantee) Notes to the flnanclal statements for Ihe year ended 31 March 2024 Other Incomlng resources Unr•$trlct•d funds 2024 Total fund8 2024 Total funds 2023 Other Income 30,000 30,000 Analysls of expendlture on charftable actlvltle5 Summary by fund type R08trl¢tod Unre8trlcted funds funds 2024 2024 Total 2024 Shops, Cafe and Accorffliodalion Contribution8 63,788 1,672,192 1,735.978 Restricted Unre8tricl8d funds funds 2023 2023 Total 2023 Shops, Cafe and Accommodalion Contributions 79,963 1.482,420 1,582,383 10. Analy81s of expendlture by actlvltl88 Actlvltlos undortakon dlrectly 2024 Support costs 2024 Total funds 2024 Shops, Cafe and Accommodalion Contribution8 705,917 1.030,081 1,735,978 Page 50 Sussex Emmaus IA Company Ilmlted by guarantee) Notes to the flnanclal stalements for th8 year ended 31 March 2024 10. Anatysls of expendlture by actlvltles Icontlnued) Activities undertaken direclty 2023 Support CO818 2023 Total funds 2023 Shops, Cafe and Accommodation Conlributions 719.915 842,468 1,562,383 Analysls of dlrect costs Shops, Cafe and Companion 2024 Total funds 2024 Staff cosls Companlons expenses Cafe & shops Other direct Costs Communty 8XP8ns8S 143,829 260,879 241,542 14,521 45,146 143,829 260,879 241,642 14,521 46,146 705,917 705,917 Shops, Cafe and Companion 2023 Total fund8 2023 Staff c08t8 Companion exp8n888 Caf8 & 8hop8 other direct cosls Community expenses 184,427 198,677 205,157 22,009 131.645 164,427 196,677 205,157 22,009 131,645 719,915 719,915 Page 51 Sussex Emmau$ (A Company Ilmlted by guarantee) Notes to the flnanclal statements for tho year onded 31 laarch 2024 10. Analysls of •xpendltur• by actlvltl•s Icontlnued) Analy818 of 8UPPOrt C08ts Shops, Cafo and Companlon 2024 Total fund8 2024 Sl8ff costs Depreciation Premises c08t8 Management and 8dmini8tration Solidarity Audit and accountancy fees VAT annual adjustment 380,106 104.289 279,587 141,486 56.224 14.645 53.724 380,106 104,289 279,587 141,486 58,224 14,645 53,724 1,030,061 1,030,061 Shops, Cafe and Companion 2023 Total funds 2023 staff costs Depreciation Premi888 C08t8 Management and administration Solidarity Audit and accountancy VAT annual adjustment 298,408 83,858 243,690 118,993 51,371 7.584 38,584 298,408 83,858 243,690 118,993 51,371 7,564 38,584 842,468 842,468 11. Auditor8, romuneratlon 2024 2023 Fees payable to the Companls auditor for the audit of the Company's annual accounts 9,000 7,975 Page 52 Sussex Emmaus IA Company Ilmlted by guarantee) Notes to the flnanclal statements for the year ènded 31 March 2024 12. Staff costs 2024 2023 Wages and salaries Soclal security costs Contribution to defined conlribulion p8n8ion 8ch8meB 477,035 31,B92 15.008 403,682 40,467 18,686 523,936 462,835 The av8rag8 number of per80n8 employed by the Company during Ihe year was as follows.. 2024 No. 2023 No. staff 19 17 No ernployee received remuneration amounting to more than £60,000 in either year. The charity deems key management personnel to b8 T¥u8t888 arKI members of staff that attend Board meetings. The staff that do, comprise.. Karen Ch8pman Joel Lewis Dawn Watson-Jones (reslgned 15 June 2023) Karen Gordon Shameer Maradikk81 (appoinled 25 April 2023 and rgsigned 29 September 2023) Kaya Mesnard (appointed S September 2023) Tot81 remuneration ol key managem8nt personnel: £202,285 {2023'. £144.730). 13. Tru8teBs' remunerallon and expenses Durlng the year, no Trustees received any remun8r8tion or other b8n8filB (2023 - £NIL). During the year ended 31 March 2024, there was no Trustee expenses reimbursed12023 - £158 to 2 Truslees). Page 53 Sussex Emmaus (A Company limited by guarantee) Notes to tho financlal statements for tha year ended 31 March 2024 14. Tangible fixed a888t8 Freehold property Motor Flxtures and v6hlcles flttlngs Total Cost At 1 Aprll 2023 Additions 1,921,893 77.065 113,017 37,619 395,003 02,523 2,429.913 167,107 At 31 March 2024 1,99B,958 150,536 447,526 2,597,020 Depreclatlon At 1 Aprll 2023 Charge for the year 611.142 41,308 112,989 7.604 365,090 55,476 1,079,221 104,288 At 31 March 2024 652A60 120,493 410,566 1,183,509 Net book valuo At 31 March 2024 1,346,608 30,043 36,960 1,413,511 At 31 March 2023 1,310,751 28 39,913 1,350,692 The property was valued for insurance purposes at £7,545,834 in 2012. However as per the accounting policy the propety has been included at cost less accumulated d8pr8ciation. In the event of the undeveloped land being dlsposed of or the charity being wound up. the former Dwner has the right lo receive a proportion of the proceeds. The fr88hold property with the net book value of£1,346,508 (2023: £1,310,751) is provided as security on the loans, please see note 19. 15. stocks 2024 2023 Flnished goods and goods for resaje 7,249 4,148 Pag8 54 Sussex Emmaus (A Company Ilmlted by guaranlee) Notes to the flnanclal statements for Iho yoar ondod 31 March 2024 16. Debtor8 2024 2023 Due wlthln one year Other debtors Prepayments and accrued income 106,616 67,264 44,726 51,986 173.880 96,712 17. Current assot Investments 2024 2023 Deposit accounts 664,401 555,961 18. Creditors: Amount8 falling duo wlthin one year 2024 2023 RRLF loan Bank overdraft8 Charity Bank loan Trade creditors other taxatlon and soclal security other creditors Accruals and deferred Incom8 1,797 263 8,442 108,967 62,891 41,289 9,S98 86.940 8,456 76,096 41,765 47,781 41.812 323,227 302,850 Page 55 Sussex Emmaus (A Company limlted by guarantea) Notes to the flnanclal statements for the year andod 31 March 2024 19. Crodltors: Amounts falllng due after more than one yoar 2024 2023 Charity Bank loan RRLF loan 49,270 83.704 54,024 176,055 132.974 230.079 Includ@d within the above ar8 amounts falling due as follows: 2024 2023 Between one and two years Charity Bank loan RRLF loan 9,172 83,704 8,852 93,277 Betwean two and flve years Charity Bank108n RRLF loan 27,517 29,088 82,778 Over fivo yearn Charity Bank loan 12,681 16,104 The bank loan is secured by way of first fix legal charge, dated 29 September 2009, with full title guarantee over the freehold Interest in the freehold property known as 18 & 20 Drove Road, Portslade, Brighton, BN412PA. In th8 prior year the charity obtalned a loan (Resilience and Recovery Loan Fund) offered by the Social Investment Bank. The loan was designed to help charit18s who experienced disruption to their usual buslness model as a result of Covid-19. It is 88cured by way of 8 mortgage debenture coverlng all the charity8 as88t8.' the d8bentur8 comprises a first fixed charge with full title guarantee as a continuing security lor the payment and discharge of the secured liabilities, dated 17 Decemb8r 2020, with a t]oating charge covering all propety or undertaking of the company. Page 56 Sussex Emmaus (A Company Ilmlted by guardnteel Notes to the flnanclal statements for Iho year onded 31 March 2024 20. Statement of funds Statement of funds - curront yoar Balance at 31 March 2024 Balanco at 1 Aprll 2023 Transfers Inlout Income Expendlture Unrestrlcted funds DeBlgnated funds Flxed asset fund C.Mares Fund 1,199,519 350 (86,2241 1,113.295 360 1,199.869 (88,224) 1,113.646 G8neral funds General Funds 709,321 1,764,141 (1,672,192) 120,270 921,540 Total Unrestrict8d fund8 1,909,190 1,764,141 11,672,192) 34,046 2,035.185 Page 57 Sussex Efflmaus (A Company Ilmfted by guarantee) Notes to the flnanclal statemenls for the year ended 31 March 2024 20. Stalement of funds Icontlnued) Reslrlcted funds Companion Kitchen Sundial fund Solitary beds 18 Drove Road renovalions Falrmark- new entrance Fridge1F￿eZer Building project Food co8t8 Support 8taff Coun8elling Insulation & fire audrt Laptops for company 64,905 (28,509) 36,396 100 100 5,000 (6,0001 81.041 12,600 2,940 2.960 (4.2521 76,789 12,500 1,656 (1,2861 6.000 17,000 18,151 4A66 7,260 2,000 (7,9601 (17,0001 (18,1511 (8,8761 17,2501 11,6491 2,410 451 101.951 123,772 (83,7861 134,0461 127,891 Total of fund8 2,011,141 1.887.913 (1,735,978) 2,183,078 Page 58 Sussex Emmaus (A Company Ilmfted by guaranlee) Notes to the flnanclal statements for the year endod 31 March 2024 20. Statement of funds (contlnued) Statemant of funds - prlor yoar Balance at 31 March 2023 Balance at 1 April 2022 Transfers i￿out Income Expenditure Unregtrlcled funds Deslgnated funds Fixed asset fund Comp8nion8 (Peter Goldsmith) fund C.Mares Fund 1,028,414 171,105 1,199,519 368 350 (368) 350 1.029,132 170,737 1,199,869 Gonoral fund8 General Funds 638,665 1.601,937 (1,482,420) (48,861) 709.321 Tolal Unro8tricted fund8 1.667,797 1.601,937 {1,482,420) 121,876 1,909.190 Regtrlcted funds Greenhou80 fund Sundial fund Training Solltary beds Boiler fund 18 Drov8 Road renovations IT upgrad8 Fairmaik- new entrance FridgelFreezer Building proje¢t Food costs Commercial composter Companion expenses Internal decoration Support 818ff Counselling Insulation & fire audrt Laptops for company 1,435 100 (1,435) 100 3,000 3,500 (3,000) {3,5001 (1.0451 (4,2521 (7,1851 1.045 85,293 7.185 12,500 81,041 12,500 2,940 2,960 2,940 41,302 3,412 (38,3421 58 5,676 1.032 4,634 {3,470} (5,67e) (27,725) (4,634) (7,731) (10,310) 26,693 7,731 9.000 3,080 78,375 3,720 2,079 2,410 (5,159) (78,375) Page 59 Sussex Emmaus (A Company limitod by guarantee) Notes to the financial statements for th• year ènded 31 March 2024 20. Ststoment of fund8 (contlnued) Statement of funds - prfor year {contlnuad) Balance at 31 March 2023 Balance at 1 April 2022 Transfers inlout Income Expenditure 124,757 179,033 {79,963) (121,8761 101,951 Tolal of fundg 1,792.554 1.780,970 (1,562.383) 2,011,141 Detalls of funds Fixed asset fun This fund represents the value of the freehold propety less the assoclated loans. 18 Drove Road Fund Funding to renovate and tum the propety into an HMO. Fairmark Funding towards new permanent car park as part of the arrivals project, pre planning application ha5 been carried out and pa88ed. We ar8 aboul to apply for full planning. 21. Analy818 of net as8818 between funds Analysls of net assels between funds - current perlod Restrlcted Unre8trlcled fund8 funds 2024 2024 Total funds 2024 Tangible fixed assets Current assets Creditors due within one year Creditors due in more Ihan one year 1,413,511 1.413,511 1,077,875 1,205,766 (323,2271 (323,227> (132,9741 (132,974) 127,891 Total 127,891 2,035,185 2,163,OT6 Page 60 Sussex Emmaus (A Company Ilmlted by guarantee) Notes to the flnanclal statements for the yoar ended 31 March 2024 21. Analysls of net assets between funds (contlnued) Analy818 of net a88atg botweon funds - prlor perfod Endowment funds 2023 Restricted Unr88trict8d funds funds 2023 2023 Tolal funds 2023 Tangible fixed assets Current 8s8ets Creditors due within one year Creditor8 du8 in more th8n one y88r 86,338 15,613 1,264.354 1,350,692 1,177,141 1,193,378 1302.226) (302,850) 1230,079) (230,079) 624 (624) Total 101,951 1.909.190 2,011,141 22. Roconclllatlon ol net movwnent In funds to net cash flow from operatlng actlvltles 2024 2023 Nel incom8 for the period (as per Statement of Financial Activities) 161,935 218,587 Adjustments for: Depreclalion charges Dividends, interests and ￿nts from Investments Interest paid Increase in stock8 Increase in debtor8 Increa8el(dgcrea8e) in credilors 104,288 147,B521 21,343 (3.101 } (27,1181 (34,779) 78,510 (54,095) {2,448) (37.4651 26,492 Not cash provlded by operatlng actlvllles 164,716 229,581 23. Analy818 of cash and cash equlvalent8 2024 2023 Ca8h in h8nd Liquid investments Overdraft faciSity 18payable on demand 460,236 564,401 1263) 536,557 565,961 Total cash and cash equivalents 1,024,374 1,092,518 Page 61 Sussex Emmaus (A Company Ilmited by guaranteo) Notes to the financial stal8ments for the year ended 31 March 2024 Analy818 of change8 In nat debt Othèr non- ca8h At 31 March ¢hange$ 2024 At 1 Aprll 2023 Cash flows Ca8h 81 b8nk and in hand Bank ov8rdraft8 repayabl8 on demand Debt du8 Within 1 year Debt due after 1 year Liquid investments 536,557 (76,321) (263) 95,396 460,236 (263 (100,239) (100,239) 97,105 (132,974 564,401 (95,3961 1230,079) 656,961 8,440 767,043 27,262 13.134) 791,161 25. Penslon commltmonts The charty operates a defined contribution penslon scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. Pension contributions due at the end of the year amounted to £1,410 (2023.. £1,351). Total contributions payable by the charity for the yaar totalled £15,008 (2023: £18,686). 26. Operatlng lea88 commltments At 31 March 2024 the Company had commitments to make future minimum lease payments under non- cancellable operating leases as follows: 2024 2023 Not later th8n 1 y88r Later than 1 year and not later than 5 year8 13,089 79,103 92,192 The followlng lease payments have been recognised a8 an expense in the Statement of financial activilie5'. 2024 2023 Operating lease renlals 9,337 27. Related party transacllons There were no related party transactlons during the year. Page 62 Sussex Emmaus (A Company Ilmlted by guarantee> Notes to the flnanclal statements for the year ended 31 Ma￿h 2024 28. Controlllng party The charty 18 controlled by its Tru8tees. Page 63