Charlty Reglstratlon No. 1058536 Company Registration No. 3255850 (England and Wales) THE NEHEMIAH PROJECT ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 f4ehemiah ProFG+
THE NEHEMIAH PROJECT CONTENTS Page Trustees. report Independent auditovs report 8-10 Slalemenl of financial activities Balance sheet Slalement of cash flows 14 Motes to the financial ststements 15-30
THE NEHEMIAH PROJECT LEGAL AND ADMINISTRATIVE INFORMATION Charity number 1058536 Company number 3255850 Rggistered office 47 Tooting Bec Gardens London SW16 1RF Audltor Begbies 9 Bonhill Street London EC2A4DJ Bankers Natwest plc Natwest Bank PIC 145 Clapham High Street London SW4 7SN
THE NEHEMIAH PROJECT TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021 The Trustees present their report and accounts for the year ended 31 December 2021. The financial slalemenls have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charitable company's Memorandum and Articles of Association. the Companies Act 2006 and "Accounting and Reporting by Charities.. Ststemenl of Recommended Practice applicable lo charities preparing their accounts in accordan with the Financial Reporting Standard applicable in the UK and Republi¢ of Ireland IFRS 1021" las amended for ac¢oLJnting periods commencing from 1 January 20191 Objectives and activities The Nehemiah Project has over 25 years, experience of working with men with a history of addiction. Our clients are arguably some of the most marginalised and excluded individuals in society, with multiple and complex needs. Vlslon A centre of eXllen for rehabilitating men from crime and addiction through the transformation of their lives lo become fulfilled, valuable members of the community. Mlsslon To enable vulnerable men who are ex-offenders to break free from crime and addiction and to help them rebuild their lives To offer men, On released from prison, the reSoUrS to set new goals and give them hope for the future To assist in their reintegration into the community through the provision of supported housing immediately after release and beyond as well as the provision of rehabilitation programmes. A key aim is lo build resilience in our Residents so that when they move on they can deal with unexpected and challenging lrfe events without resorting lo old behaviours, and lo provide coping strategies lo avoid relapse. The Board and all Nehemiah staff believe that anyone can change their life, and this underpins all our work. Our holistic, peer-group approach to recovery creates a safe place where men Can go through the painful process of reviewing their lives and establishing a new foundation on which lo build their future. We support each man to reach his potential, and we lebrate their Sucss. 2021 In the past twelve rnonlhs we= Completed subslanlial refurbishment work at 47 Tooling Bec Gardens, Streatham, our freehold firsl-stage house and main offi. Remained operational, supporting 48 men despite Covid-19 and ongoing restrictions. Commenced our volunteering programme with volunteers and Residents working together to clean up our gardens and decorate rooms in one of our move on houses. 2022 Our priorities are to.. Implement our strategy for growih and development towards the "Nehemiah Vision 100" 1100 rooms by 20301. FLJlly retum to our normal operations from the effects of Covid. Determine the location and liming of our next phase of growth. Continue to improve programme delivery and aftercare with the introduction of peer mentoring. Further develop an online programme lo be offered lo and delivered lo other organisations.
THE NEHEMIAH PROJECT TRUSTEES, REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021 1 - Ovarviaw of 2021 We achieved our 2021 objectives with the following outcomes.. We remained operational, supporting Residents despite further Covid-19 restrictions Whilst our financial figures are clearly affected by Covid, throughout the period we retained our staff and service, while improving our support in a number of areas and celebrating several graduations The loss we suffered in 2021 was as a direct effect of Covid, beginning in February 2020 with the tailing off of funding while we continued to operate. The Trustees believe that, as a result of the challenges created by the pandemi¢, both years 2020 and 2021 should be considered together as a one-off historical event. If viewed in this way the Charity lost just over £20,000 in the two years. We completed substantial refurbishment works al 47 Tooling Bec Gardens, Slrealham, our freehold house used as a first stage house and offices. We have continued to explore our potential to operate beyond London, seeking additional properties. This is an aa that we would like to move on more quickly as we emerge from the restrictions of Covid. 11 remains a complex area of work for us as we seek to achieve our ambition to have 100 rooms by 2030. Our new volunteering programme commenced with volunteers and Residents working together to clean up our gardens and decorate rooms in one of our move on houses. 2- Perforniance Delivery Nehemiah has an excellent cOrd of both reducing reoffending and reducing drug and alcohol dependency. In 2021 we endeavoured to continue to improve our ServIS and our outcomes. 2014 2015 2016 2017 2018 2019 2020 2021 No. of Residents completing the first stsge of the programme or still with us 19 14 21 28 26 31 27 28 No. of men worked with 28 40 31 37 39 48 41 42 Percentage of men remaining abstinent for one year 68010 640/0 740/0 75Q/o 71 Q/0 520/0 450A' Residents obtaining full time employment 14 11 11 Residents in work, vocational training or voluntary work 12 19 10 20 14 10 21 No of Residents reoffending or recalled within one year of leaving Nehemiah ** ** A New Future is a rolling programme which men can join at any point and complete the twelve modules. It is 8 12-week programme éelivereé each weekday morning al our firsl-slage houses, focusing on recovery ané resetdemenl through prOsS groups and education sessions. We encourage the participating cohort to work through issues tether, sharing experiences, Challenging one another and learning to resolve conflict. This has helped build resilience to in¢rease the men's ability lo cope with the dsy-lo-day social, emotional and practical pressures. We consider this decrease to be a direct resuts of Covid-79 All were recalls of new Residents who did not seftle into Nehemiah and relapsed in the first week,. we have reviewed these and we suspect that this relates to the substanti81 changes lo the prison regime (23-hour
THE NEHEMIAH PROJECT TRUSTEES, REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021 lockups Mth no programmes running within prisons since March 20). As a consequen, the applicants are adjusting to this sudden change on release and this is further compounded by Nghemiah staff not being abl to interview candidates in person prior to entry. Therefore, we have adjusted our entry process lo try to ensure that candidates are bellerprepared for what Nehemiah involves, and a Aleel and Greet system is helping new Residents to settle in. 3- Flnanclal Prudence and Sustalnablllty Mainiaining financial prudence is a key element of the success of any charity.. We continued to build relationships with key funders, in a very challenging environment. A number of our mulli-year grant funders came lo an end in 2021. We maintained light financial control with regular reporting to Trustees. Covid has continued lo have a negative effect on our financial position.. trust income was low in the last quarter, and Housing Benefit has been lower than anlicipaled due to lower occupancy and retention. A major trust was inactive in 2021, and although our latest application is being considered in 2022, the effect of this carlle at a lime where emergency Covid grants were much more limited and trusts themselves were reassessing their future strategy. In 2021 the Charity had a total income of £644,418 and a total expenditure of £827,048, showing a deficit of £182,630. Income decreased 320/. from 2020, while expenditure increased by 5 10, reflecting the addition of a new house, Lodge Rd, and the capital works to 47 Tooting Bec Gardens. Designated funds indude the £814,198 property capital fund, which is our investment in the freehold of the Charity's main property in Streatham. It is anticipated that these funds will remain invested in the propety for the foreseeable future. Unless the property is sold or re-mortgaged, these funds are not directly accessible. However, il should be noted that the propety is stated in the accounts at cost and Trustees believe that there is scope for a significant increase if compared lo a Current valuation. Nehemiah's general unrestricted funds at the end of 2021 stand at £6,630, a decrease of £115,859 from 2020. Restricted funds held al the year end lolalled £34,054, a decrease of £119,918 from £153,972 mostly due to fundraising in advan of the works lo Tooting Bec Gardens. Total funds at the year end Sto al £854,882. Management will focus over the next two years on building these reserves back to meet the desired level of three months, operating funds. Other events of note: In September 2021, we held a house refurbishment opening Ceremony and Residents, Graduation, officiated by Terry Waite CBE Three Resident Graduations took place, two during lockdown, complying with Covid-19 restrictions. We continued to be active members of Prisons Week. As a Charity we ntInued to benefit from the Lloyds Enhance programme. Reserves Policy The majority of our funding for operational costs comes from grants and donations, for which we are grateful. Budgeting for these is difficult as it depends on unpredictable timescales. For liquidity purposes, the Trustees would like to attain £245,000 cash reseNes (three months, operating costsl, which will be made up of reslricled and unrestricted funds. The Charity has a strategy lo continue lo build its reserves as and when that becomes possible. Strategic Overview In 2022, with the support from our partners, our aim is to continue to implement our strategy for growth and development towards 'Nehemiah Vision 100" This will be achieved by identifying our first out-of-London first- stage and second-slage properties. The needs of the men coming lo Nehemiah are complex, and we wish to continue to offer an improved programme with a variety of seNices lo give them the best recovery for themselves, their families and the wider community.
THE NEHEMIAH PROJECT TRUSTEES, REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021 1- Growth- enhance our housing provision Nehemiah's growth strategy has been to seek to add one new house per year. Our immediate focus in 2022 is to identify premises in Suffolk or North Kent. building on relationships developed during 2021, where there is a demand for our Servi Close to a cluster of releasing prisons. 2 Nehemiah has an excellent record of both reducing reoffending and reducing drug and alcohol dependency with our five-year average abstinence rate of 690/0 since 2000. however in 2021-22 this has d8creased to just undèr 50 /• duo to the effècts of the pandemic. In 2022, we intend to continue lo improve our ServIS and the outcomes we deliver. To achieve this, we will.. Continue lo offer Family Support to those Residents who need lo reconnect with their families, and to establish an external support group to offer to family members. Further develop our relationships within releasing prisons lo make sure that Nehemiah is clearly 'signposted' lo those who may benefit. Provide all Residents with an opportunity lo secure meaningful employmenl or training through the 'Nehemiah Works, employment and training support. Implement a new peer mentoring programme through which former Nehemiah Residents support new Residents, especially at evenings and weekends. Implement an online recovery programme accessible to other partner organisalions. Continue lo develop a programme for staff wellbeing that will create resilien and effectiveness in our staff, resulting in a positive, rewarding, and creative work environment. Continue to update the IT infrastructure and equipment, including new Residents and Fundraising datsbases Integrate into our work the results of independent research based on our programme and outcomes. 3 - Financial Prudence and Sustainability The aim of our growih is lo increase the number of men we help annually, and lo enhance our sector influence. At the same lime we wish lo ensure the Charity remains financially sound while recognising the need for continued external funding. Maintsining financial pruden and developing sustainability is a key element of the success of Nehemiah. To achieve this in 2022 we will.. Closely monitor the achiev8menl of our quarterly revenue and expenditure targets lo sustain our growth. Fully implement Donorfy, our new CRM (Customer Relationship Management) database in order to steward our donors more effectively and improve our communications. Continue lo collaborate with The British Association of the Sovereign Order of Malla lo achieve our joint objectives. Build longer-lem relationships with core funders, as well as recognising the contribution of our individual donors. Continue to raise the profile of Nehemiah through a variety of communication channels with a view to recruiting further supporters. 4- Davalop and initiata planning to implom8nt "Nohamiah Wision 100" Where we wish to go Continue to develop 'Vision 100, which seeks to offer 100 bed spaces by no later than 2030. Ensure that we maintain the ethos of Nehemiah in each of our properties. When we reach that largel, we will be helping a possible 300 residents every year and we believe that growth beyond that is possible. We seek lo increase our reach by refining 'remote' delivery of our course in partnership with others who provide accommodation. What gives us the confidence lo attempt this? We have a stable platform which has withstood the ravages of the pandemic, lockdown and social distancing. 'A New Future, produces a high proportion of positive outcomes lindependenuy assessed and evaluated). Our product is replicable and is cost-effeclive lil costs c.£1 Ok per successful graduate compared with the cost of keeping someone in prison of £45k per person p.a.}
THE NEHEMIAH PROJECT TRUSTEES, REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021 We have an experienced management team supported by a board with wide and relevant experience. We are encouraged and supported by the British Association of the Sovereign Order of Malta. Our priorities in implementing Nehemiah Vision 100.. N&w houses in the London area and in new areas outside London. Building strong relationships with local prisons. Acquire al least one freehold property to add to our portfolio. Identify supporters and funders in those new are8S. Connect with individuals who will promote us in our target areas. Access to local referral organisations, local officials. wmmunity leaders, churches and charities who are willing lo help us al national, regional and local level. Nehemiah's approach to fundraising Our supporters are key lo everything we do. Each year they enable us lo help vulnerable men recover their lives. We are committed to being fully transparent and accountable about how their gifts are used. Our fundraising costs are kept to a minimum, with 90A of revenue being spent on the cost of raising funds. AJI fundraising is done in-house with no Ihird-paty involvement. We are members of the Fundraising Regulator and as members we follow the Code of Fundraising Practi and the policy of dealing with vulnerable people. In the financial year ending 31 December 2021 we did not receive any complaints about our fundraising. We keep up to dale on changing regulation and ensure we comply with il by changing processes where neSsary. Structurei governance and management The Nehemiah Project is a Company Limited by Guarantee, governed by its Memorandum as amended and adopted by Special Resolution in 2009, and Articles of Association dated 4th September 2019. The new Articles adopted in 2019 were drafted lo streamline the procedural running of the Charity, bul had no effect on the Charity's existing objects or purpose. The Nehemiah Project is a registered Charity with the Charity Commission of England and Wales. In the event of winding up, members, liabilities are limited to £1 each. The Trustees, who are the Directors for the purposes of company law, and who served during the year were.. Mr. T. B. Aikens Mr. W. Ansell Mr. R. M. Atwater Mr. G. S. Boyle Mrs. K. P. Hunter Johnston Mr. A. T. R. Nell {Chairl Mr. A. P. Walson Miss J. S. Whitaker Trustees are appointed by resolution of the existing Trustees. Most new Trustees will be familiar with the practical work Df Nehemiah and all Trustees attend information events to keep up-to4ate. New Trustees re1ve all relevant information relating to Nehemiah, and undergo a thorough induction covering decision- making processes, key ernployees and future plans and objectives. They are also advised of their legal obligations as Trustees. The Trustees meet quarterly and ad hoc as events dictate. Since March 23rd 2020 the Board has met electronically on a monthly basis due lo Covid-19. Trustees have continued lo receive regular financial reports and updates on Nehemiah's activities and fundraising despite the move to primarily electronic operation. The Board of Trustees is responsible for the overall legal, financial and strategic directs'on and development of Nehemiah.
THE NEHEMIAH PROJECT TRUSTEES, REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021 Public Benefit The Trustees consider that they have complied with the duty lo have due regard lo public benefit guidan published by the Charity Commission. Management Team Dr J. Patien, Chief Executive Officer Mrs L. Ravenscroft, Developmenl Director Mrs L. Hawthorne, Operations Director Miss A. Sissuh, Supported Housing Manager Day-to-day management, including finance, HR and operations, is the responsibility of the CEO. He is supported by the other members of the management team, who have been meeting weekly during 2021, and who lake sponsibl11tY for the assets of Nehemiah, supported housing and fundraising. The Board of Trustees is responsible for setting the remuneration of the employees including the CEO. Risks The Trustees VIeW Nehemiah's main risks quarterly. They sre responsible for approving and then overseeing the implementation of any changes to pr0dUreS, training or other actions lo miligale the risks Nehemiah faces. All areas are RAG rated, with high priority areas separately highlighted and reported. A Risk Register is maintained and presented al each Directors, Meeting. Two risks were identified as High between February 2021 and December 2021,. both of these were direct result of Covid-19.. Predicted financial shortfall in 2021 due to the offects of Covid-19 on the funding environment. An immediate review of the 2021 budget was undertaken, expenditure was cul, and fundraising and Housing Benefit revenue revised downwards to account for the changing level of activity in the fundraising environment and lockdown restrictions on the admission of new Residents. This enabled the Charity to manage cash flow better during the crisis. That we may be unable to fill the properties due to Covid-19. As a result of Covid-19 virtU8lly all programmes and support activities within prisons ceased over the last two years and as such men were not prepared for release and had not completed any recovery programmes. We responded to this in a number of ways in refocussing our support and actively targeting potential referrers. All other risks were assessed lo be of medium or low severity. Relatlonshlp wlth other charltles Two of the Charity's move-on homes, The Chase and Pountney Road, both in South London, are owned by Sanctuary Housing. Since 2013 Nehemiah has been Managing Agent for these properties. As such the Residents are Sanctuary Housing Licensees, managed by Nehemiah. The Charity's fourth and frfth houses, 1-3 Frederick Gardens and 98 Lodge Road, Croydon, are owned by Croydon Churches Housing Association ICCHAI. The Charity has signed a five-year lease with CCHA for these properties terminating in January 2024. This has enabled Nehemiah to support a greater number of vulnerable adults recovering from drLJgl alcohol addiction.
THE NEHEMIAH PROJECT TRUSTEES, REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021 statement of Trustees. responsibilities The Trustees, who are also the directors of The Nehemiah Project for the purpose of company law, a responsible for preparing the Trustees, Report and the financial siatements in accordance with applicable law and United Kingdom Ac¢ounling Standards (United Kingdom Generally Accepted Accounting Pra¢ticel. Company Law requires the Trustees lo prepare financial ststements for each financial year which give a true and fair view of the stale of affairs of the Charitable Company and of the incoming resources and application of resources, including the inwme and expenditure, of the Charitable Company for that year. In preparing these financial stalemenls, the Trustees are required to.. select suitable accounting policies and then apply them consistently., observe the methods and principles in the Charities SORP., make judgements and estimates that are reasonable and prudent., and prepare the financial statements on the going concem basis unless il is inappropriate to presume that the charitsble company will continue in operation. The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any lime the financial position of the Charitable Company and enable them lo ensure that the rinancial 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. Auditor In accordance with Nehemiah's Articles, Trustees will appoint suitably-qualified Auditors. Dlsclosure of Infomatlon to audltor Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, bul of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information. The Trustees. repo was approved by the Board of Trustees. Mr A. T. R. Nell (Chairman) Trustee Dated.. 3010612022
THE NEHEMIAH PROJECT INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE NEHEMIAH PROJECT Oplnlon We have audited the financial statements of The Nehemiah Project Ithe 'charitsble company'l for the year ended 31 December 2021 which comprise the slalemenl of financial activities, the balan sheet, the slalemenl of cash flows and the notes lo the financial slalements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland. (United Kingdom Generally Accepted Accounting Practice}- In our opinion, the financial slalemenls.. give a true and fair view of the slate of the charitable company's affairs as al 31 December 2021 and of its incoming resources and application of resources, for the year then ended., have been properly prepared in accordan with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordanc8 with the requirements of th8 Companies Act 2006. Basls for oplnlon We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for the audit of the accounts section of our report. We are independent of the charitable company in accordan with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC'S Ethical standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Conclusions relating to going concern In 8udiling the financial slalemenls, we h8ve concluded that the Trustees, use of the going concern basis of accounting in the preparatson 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 ¢ollectively, may cast significant doubt on the ¢haritable company's ability to continue as 8 going conrn for a period of St least twelve months from when the financial slalemenls are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concem are described in the relevant se¢tions of this report. Other information The other information cornprises the information included in the annual report other than the financial ststements and our auditorfs report Ihereon. The Trustees are responsible for the other information contained within the annLJal report. Our opinion on the financial statements does not cover the other information and, except lo the exlenl otherwise explicitly slated 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 slalemenls or our knowledge obtained in the Course of the audit, or otherwise appears lo be materially misslaled. If we identify such material inconsistencies or apparent material misstalemenls, 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 lo report in this regard.
THE NEHEMIAH PROJECT INDEPENDENT AUDITOR'S REPORT {CONTINUED) TO THE TRUSTEES OF THE NEHEMIAH PROJECT Oplnlons on other matters prescrlbed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of our audit.. the infomalion given in the Trustees, report, which includes the directors, report prepared for the purposes of company law, for the financial year for which the financial slalemenls are prepared is consistent with the rinancial statements., and the directors, report included within the Trustees. report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the charitable company and ils environment obtained in the course of the audit, we have not identified material misstatements in the directors, report included within the Trustees, report. We have nothing lo report in respect of the following matters in relation to which the Companies Act 2006 requires us lo report to you if, in our opinion.. adequate accounting records have not been kept, or relums adequate for our audit have not been received from branches not visited by us., or the financial statements are not in agreement with the accounting records and returns., or certain disclosLJres of truslees, remuneralion specified by law are not made,. or we have not reiVed all the information and explanations we require for our audit., or the Trustees were not entitled lo prepare the financial statements in accordance with the small companies regime and take advantage of the small companies, exemptions in preparing the Trustees, report and from the requirement to prepare a strategic report. Responsibilitias of Trusteas As explained more fully in the ststement of Trustees. responsibilities, the Trustees, who are also the directors of the charitable company for the purpose 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 lo enable the preparation of financial stslements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charitsble company's ability to continue as a going concern, disclosing, as applicable, matters related lo going con¢em 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. Auditorfs responsibilities for tha audit of tho financial statements OLJr objectives are to obtain reasonable assurance about whether the financial statements as a whole are fe from material misslatemenl, whether due to fraud or error, and lo issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always delecl a material misstalemenl when il exists. Misslalemenls 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.
THE NEHEMIAH PROJECT INDEPENDENT AUDITOR'S REPORT {CONTINUED) TO THE TRUSTEES OF THE NEHEMIAH PROJECT Extent lo whl¢h the audlt was capable of detectlng Irregularltles, Includlng fraud Irregularities, including fraud, are instanS of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, lo delecl material misslalemenls in respect of irregularities, including fraud. The extent to which our procedures are capable of detecb'ng irregularities, including fraud is detsiled below.. Agreement of the financial ststement disclosures lo underfying supporting documentation lo assess complian with those laws and regulations having an impact on the financial statements and disclosure requ1mentS. In particular, Accounting and Reporting by Charities.. Statement of Recommended Practice., Enquiries and confirmation of management and the trustees as to their idenlificalion of any non-complian with laws or regulations, or any actual or potential Claims., Review of minutes of the Board meetings during the period., incorporating unpredictability into the nature, timing andlor exlenl of testing. Evaluation of the selection and application of the accounting policies chosen by the charity. In relation to the risk of management override of internal controls, by undertaking procedures to review joumal entries and evaluating whether there was evidence of bias that represented a risk of material misslalemenl due to fraud., and We assessed the susceptibility of the charity's financial statements to material misstatement, including how fraud might occur by considering the key risks impacting the financial slalemenls. Our audit procedures were designed to respond to risks of material misslalemenl in the financial slalements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit prOdureS performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial slalemenls, the less likely we are to become aware of it. A further description of our responsibilities for the audit of the finanal slalements is located on the Financial Reporting Council's website al.. http'.Ilwww.frc.org.uklaudilorsresponsibilities. This description forms part of our auditor's report. Use of our report This report is made solely lo the company's members, as a body, in accordan with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might slate lo the company's members those matters we are required to slate lo them in an auditor's report and for no other purpose. To the fullest extent permitted by law. we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this Ptsrt, or for the opinions we have formed. Katherine Dee FCA (Senior Statutory Auditor) for and on behalf of Begbies 08107122 Chartered Accountants Statutory Auditor 9 Bonhill Slreel London EC2A4DJ 10
THE NEHEMIAH PROJECT STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021 Curronl financial ygar Unrastricted Rastrictad funds funds 2021 2021 Total Total 2021 2020 Notes Income from: Donations and IaCleS Charitable activities Investments- bank interest 120,409 276,878 247,123 367,532 276,878 657,224 292,204 88 Total income 397,295 247,123 644,418 949,516 Raising funds 55,685 55,685 51,976 Charitable activities Supported Housing Programme A New Future Online 462,469 7.123 301,771 764,240 7,123 734,817 Total charltable expendlture 469,592 301,771 771,363 734,817 Total resources expended 525,277 301,771 827,048 786,793 Net loutgoingllincoming resources before transfers 1127,9821 154,6481 1182,6301 162,723 Gross transfers between funds 65,270 {65,2701 Net lexpenditurellincome for the yearl Net movement in tunds 162,7121 1119,9181 1182,6301 162,723 Fund balances at 1 January 2021 883,540 153,972 1,037,512 874,788 Fund balances at 31 December 2021 820,828 34,054 854,882 1,037,511 The statement of financial activities includes all gains and losses recognised in the year. All income and exp8nditure derive from continuing aclivits'es. The statement of financial activities also Complies with the requirements for an income and expenditure a¢¢ounl under the Companies Act 2006.
THE NEHEMIAH PROJECT STATEMENT OF FINANCIAL ACTIVITIES {CONTINUED} INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021 Prior financial year Unrestricted Restrictad funds funds 2020 2020 Total 2020 Notes Income from: Donations and IaCleS Charitable activities Investments 154,741 292,204 88 502,483 657,224 292,204 88 Total income 447,033 502,483 949,516 Raising funds 51,976 51,976 Charitable activities SLJPPOrted Housing Programme 330,082 404,735 734,817 Total charitable expenditure 330,082 404,735 734,817 Total resources expended 382,058 404,735 786,793 Gross transfers between funds 12,209 {12,2091 Net lexpenditure}lin¢ome for the yearl Net movement in funds 77,184 85,539 162,723 Fund balances at 1 January 2021 806,355 68,433 874,788 Fund balances at 310ecember 2021 883,539 153.972 1,037,511 The slalemenl of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. 12
THE NEHEMIAH PROJECT BALANCE SHEET ASAT31 DECEMBER 2021 2021 2020 Notes Fixed assets Tangible assets 904,198 851,050 Current assets Debtors Cash at bank and in hand 10 24,139 240,522 79,522 410,454 264,661 489,976 Creditors: amounts falling due within ono year 11 1187,0501 {167,6821 Net current assets 77,611 322,294 Total assets less current Ilabllltles 981,809 1,173,344 Creditors- amounts falling due after more than one year 12 1126,9271 1135,8331 Net assets 854,882 1,037,511 Income funds Restricted funds 17 34,054 153,972 Unrestricted funds Designated funds General unrestricted funds 16 814,198 6,630 761,050 122,489 820,828 883,539 854,882 1,037,511 These financial StateentS have been prepared in accordan wrfth the provisions applicable lo companies subject to the small companies regime. The accounts were approved by the Trustees on 3010612022 MrA. T. R. Nell Twstee Company Reglstratlon No. 3255850 13-
THE NEHEMIAH PROJECT STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021 2021 2020 Notes Cash flows from opgrating activities Cash labsorbed byllgenerated from operations 23 199,9311 179,483 Investing activities Purchase of tsngible fixed assets Intest received 165,2701 112,2091 88 Net cash used in investing activities 165,2621 112,1211 Financing activities Proceeds of new bank loans Repayment of bank loans 50,000 147,9041 14,7391 Net cash (used inllgenerated from financlng actlvltles 14,7391 2.096 Net Idecreasellincrease in cash and cash equivalents 1169,9321 169,458 Cash and cash equivalents at beginning of year 410,454 240,996 Cash and cash oquivalents at end ofyoar 240,522 410,454 14
THE NEHEMIAH PROJECT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Accounllng pollcles Charity information The Nehemiah Project is a private company limited by guarantee in¢orporaled in England and Wales. The registered office is 47 Tooling Bec Gardens, London, SW16 1 RF. 1.1 Accounting convention The financial slalements have been prepared in accordance with the charitable company's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities.. ststement of Recommended Practice applicable lo ch8rilies pparIng their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 20191" The charitsble company is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in slerfing, which is the functional currency of the charitable company. Monetsry amounts in these financial ststements are rounded lo the nearest £. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are sel out below. 1.2 Golng concern At the time of approving the accounts, the Trustees have a reasonable expectation that the charitable company has adequate resou$ to continue in operational existen for the next 12 months. Thus the Trustees, continue to adopt the going conrn basis of accounting in preparing the accounts. The free reserves of the charity are very low. However the charity has cash available lo meet day lo day activities due to the stru¢lure of long term borrowing. The charity also owns the freehold premises al 47 Tooting Bec Gardens which is stsled in these accounts al cost. The Iruslees are of the opinion that were the charity in need of funds, further borrowing could be secured in the short term or the propety could be sold. 1.3 Charllable funds Unrestricted funds are available for us8 at the discretion of the Trustees in furtherance of their charitsble objectives. Designated funds are a category of unrestricted fund sel aside by the Iruslees for a specific purpose. The designated funds of The Nehemiah Project reflect the funds invested in the fixed assets of the charity and not available for day lo day use, and the funds sel aside by the Iruslees as detailed in the reserves policy. Restricted funds are subject lo specific conditions by donors as lo how they may be used. The purposes and uses of the restricted fLJnds are set out in the notes to the financial statements. 1.4 Incoming rasources Income is recognised when the charitable company is legally enlilled lo it after any performan¢e conditions have been mel, the amounts can be measured reliably, and il is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the charitable company has been notified of the donation, unless performance Conditions require deferral of the amount. Income lax recovefftble in relation lo donations received under Gift Aid or deeds of ¢ovenanl is recognised al the time of the donation. Legacies are rec(nISed on receipt or otherwise if the charitable company has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. 15-
THE NEHEMIAH PROJECT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Accounting policies Icontinued) Grants are recognised al the point when the charity is notified of the grant and the charity is enlilled lo the income. Grants shown as donations are only deferred if they relate lo a specific future time period as identified by the donor or the charity has received the income, but there is no entiuement to spend the funds at the year end. If the charity is not enlilled to the funds without first meeting Criteria which are yel lo be rnel al the year end, and the funds have not been received, the funds will not be recognised in the accounts. Grants are renISed as restricted if they are donated for a purpose more restrictive than the ongoing activities of the charity. Grants are recognised as unrgslricled if the donor eilher does not slate any restriction on use or the restriction is lo use funds for the supported housing project, as this is the only activity undertaken by the charity. Grants that are received for the general operation of the charity, rather than on the basis of a contract for sery1S or for meeting a specified level of servIs, the grant is shown as a donation. Were a grant lo be received with performance wnditions it would be shown as income from charitable activities and would be deferred to the extent the charity has yel to fulfil the performance obligations. Housing benefits and other rental contributions are accounted for when ceivable. Income from fundraising activities includes ticket sales, reiptS from charity auctions and other income which is earned in the course of events run by the charity. Sponsorships for marathons, fLJn runs and other events a shown in donations as these are in effect gifts. Income from events is included in the year in which the event has taken place. 1.5 Resources expended Liabilities for costs are recognised in the ststement of financial activities as they ar8 incurred. The charity has two charitable activities, being the operation of a supported housing programme and A New Future Online. The administrative activities are run from one of the supported housing buildings which is owned by the charity, and accordingly there is little general overhead cost. The costs of fundraising activities and reporting lo fLJnders are separately identifiable and directly allocated. General office costs are all allocated to the supported housing activity due lo the immaterial size of those attributable to ftjndraising and online activities. 1.6 Tanglble flxed assets Tangible fixed assets costing over £500 are initially measured at cost and subsequently m8asurgd at cost, nel of depreciation and any impairment losses. Depreciation is recognised so as lo write off the cost or valuation of assets less their residual values over their useful lives on the following bases.. Land and buildings Leasehold improvements Fixtures, fittings & equipment Cornputers Over the life of the lease 250/0 Straight line 330/0 Straight line 16-
THE NEHEMIAH PROJECT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Accounting policies Icontinued) Freehold land and buildings, representing one of the supported housing homes, is not depreciated as the trustees consider the sIdual value lo be higher than carrying value. The land and property is slated al cost and at the year end the open market value was considered lo exceed the carrying value. The value of the home is reviewed annually for impairment. The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net incomellexpenditurel for the year. 1.7 Impalm)ent of flxed a$sel$ At each reporting end date, the charitable company reviews the carying amounts of its tangible and intsngible assets lo delemine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order lo determine the extent of the impairment loss lif any). 1.8 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held al call with banks, other short-lerm liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.9 Financial instruments The charitable company has elected lo apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 '0ther Financial Instruments Issues. of FRS 102 to all of ils financial instruments. Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the nel amounts presented in the financial slalemenls, when there is a legally enforceable right lo set off the recognised amounts and there is an intention to settle on a nel basis or lo realise the asset and settle the liability simultaneously. 8aslc flnanclal assets Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequenuy carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised. 8asl¢ flnanclal Ilabllltles Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised. Trade creditors are obligations to pay for goods or SONI$ that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective InteSt method. Derecognition of financial liabilities Financial liabilities are derecognised when the charitable company's contractual obligations expire or are discharged or cancelled. 17-
THE NEHEMIAH PROJECT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Accounting policies Icontinued) 1.10 Employee benefits The cost of any unused holiday entitlement is recognised in the period in which the employee's servi$ are re¢eived. Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed lo terminate the employment of an employee or lo provide lerminalion benefits. 1.11 Retirement benefits Payments lo defined contribution retirement benefit schemes are charged as an expense as they fall due. Donatlons and legacles Total Total 2021 2020 Donations and gifts Grants towards ongoing operations Less.. deferred income Other 44,341 428,777 1106,3691 783 43,058 609,633 110,0001 14,533 367,532 657,224 Note 21 contains details of donations by related parties. 18-
THE NEHEMIAH PROJECT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Donations and legacies Icontinued) Total Total 2021 2020 Grants racèivable for core activitiès Alchurches Trust B&Q Neighboudy Foundation Bernard Sunley Foundation Cicely Northcote Charles Hayward Foundation CRASH Croydon Relief in Need Drapers, Charitable Funds Help the Homeless Hinchley Charitable Trust Lloyds Bank Foundation London Borough of Lambeth Maurice & Hilda Lang Charitable Trust National Lottery Community Fund Nationwide Community Fund Screwfix Foundation Tara Getty Foundation The 29th May 1961 Charitable Trust The Clothworkers. Foundation The Global Fund for Forgotten People The Edward Gosuing Foundation The Henry Smith Charity The Lealhersellers, Company Charitsble Fund The London Community Response Fund The Merchant Taylors, Livery and Freemen Fund The Jerusalem Trust The Albert Hunt Trust The Garfield Weston Foundation The Souter Charitable Trust The Worshipful Company of Mercers The Worshipful Company of Vintners The Tony and Sheelagh Williams Charitable Foundation Repayment of unused grants Other £3,000 and below 5,000 5,000 25,000 14,600 25,000 10,602 10,000 20,000 25,000 6,294 20,000 5,000 30,000 25,000 33,000 5,000 5,000 50,000 50,000 5,000 10,000 5,000 5,000 20,000 113,068 5,000 58,100 15,000 74,963 9,900 40,000 5,000 30,000 5,000 20,000 10,000 104,948 59,100 20,000 10,000 10,435 33,400 428.777 609,633 19-
THE NEHEMIAH PROJECT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Charltable actlvllles Supported houslng income Supported housing income 2021 2020 Housing benefit and other rental income 276,878 292,204 Raising funds 2021 2020 Seeking donations, grants and legacies Staff costs 5,738 49,947 5,818 46,158 Costs of operating fundraising events 55,685 51,976 Description of charitable activitias Su orted Housin Pro In recent years the Charity has solely provided residential supported housing ServIS for those recovering from addiction. In 2021, the Charity has stsrted to create a programme which can be delivered online, either directly or through partner organisations. ramme 20-
THE NEHEMIAH PROJECT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Charltable actlvllles Supported Housing Programmo 2021 ANew Future Onlin 2021 Total Supported 2021 Housing Programmg 2020 Staff costs Depreciation and impairment Staff and volunteer expenses, recruitment and training Rent and rates Repairs and renewals Light and heat Motor and travel Residents needs Consultsncy, dinical supervision and other professional fees Subscriptions and licences Cleaning materials and refuse disposal FcK)d Special projects Insurance Programme costs Sundry costs Temporary & agency staff costs 371,305 12,122 371.305 12,122 330,665 9,548 163 115,874 63,413 28,468 939 2.571 163 115,874 63,413 28,468 939 2,571 119 76,708 125,336 24,262 568 5,497 18,205 1,441 3,935 1,961 8,769 18,699 3,709 1,079 7,123 25,328 1,441 3,935 1,961 8,769 18,699 3,709 1,079 15,281 630 3,508 1,378 10,987 15,520 2,347 332 7,892 652,653 7.123 659,776 630,578 Share of support costs (see note 71 Share of governance Costs (see note 7} 99,830 11,757 99.830 11,757 92,938 11,301 764,240 7,123 771,363 734,817 Analysis by fund Unrestricted funds Restricted funds 462,469 301,771 7,123 469,592 301,771 330,082 404,735 764,240 7.123 771,363 734,817 2021 supported housing consultancy fees includes £13,832 for counselling and £2,080 clinical supervision. 2021 A New Future Online consultancy comprises the initial costs of wriling the online programme. 2020 consultancy fees included £4,616 connected lo the leasing of the additional residential home for the 2020 expansion plan, £4,980 of programme monitoring and evaluation and £2.033 of HMO licencing costs. 21
THE NEHEMIAH PROJECT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Support costs Support Governance costs costs 2021 2020 Staff costs Printing, postsge and stationery Telephone Staff recruitment HR support and professional fees Computer expenses Loan interest Sundry expenses Training and staff subscription costs 50,862 15,334 6,250 2,756 4,617 17,009 585 1,003 1,414 50,862 15,334 6,250 2,756 4,617 17,009 585 1,003 1,414 51,413 9,924 7,847 790 7,357 10,060 2,722 918 1,907 Audit fees Accountancy Legal and professional 5.880 2,292 3,585 5,880 2,292 3,585 5,880 2,520 2,901 99,830 11,757 111,587 104,239 Analysed between Charitable acb"vilies 99,830 11,757 111,587 104,239 Support costs are allocated lo charitable activities in proportion to salary costs incurred. Govemance costs includes payments lo the auditors of £5,880 including VAT12020- £5,880) for audit fees and £2,292 including VAT {2020- £2,520) for the provision of management accounts during the year. 22-
THE NEHEMIAH PROJECT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Employees Number of employees The average monthly number of employees during the year was.. 2021 Number 2020 Numbar 14 13 Employment costs 2021 2020 Wages and salaries Social Security Costs Defined contribution pension costs 426,641 38,094 7,379 387,188 34,253 6,795 472,114 428,236 The number of employees whose annual remuneration, excluding employers, national insurance and pension contributions, was £60,000 or more were.. 2021 Number 2020 Number £60,001Q70,000 Tangiblg fixed assèts Land and Leasehold buildings improvements Fixtures, fittings & equipment Computers Totsl Cost At 1 January 2021 Additions 827,600 56,494 15,845 155,080 3,256 38,168 5,520 1,036,693 65,270 At 31 Dernber 2021 884,094 15,845 158,336 43,688 1.101,963 Depreciation and impairment At 1 January 2021 Depreciation charged in the year 6.338 3,169 142,860 5,565 36,445 3,388 185,643 12,122 At 31 December 2021 9,507 148,425 39,833 197,765 Carrying amount At 31 December 2021 884,094 6,338 9,911 3,855 904,198 At 31 Dember 2020 827,600 9,507 12,220 1,723 851,050 -23-
THE NEHEMIAH PROJECT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 10 Debtors 2021 2020 Amounts falllng due wlthln one year: Other debtors Prepayments and accrued income 11,665 12,474 64,077 15,445 24,139 79,522 11 Creditors: amounts falling due within one year 2021 2020 Notes Bank loans Other taxation and social security Deferred income Trade creditors Other creditors A¢cruals 13 8,333 10,083 116,369 34,153 4,167 28,276 10,000 57,151 1,319 66,769 14 18,112 187,050 167,682 Accruals al 2020 included a provision of £53,811 for the wsls of the refurbishment of 47 Tooling Bec Gardens carried out al the balance sheet date, and trade creditors included a further £38.211. The refUishMent was completed in 2021, and at the 2021 balance sheet date there were no equivalent trade creditors and an accrual of £4,125 relating lo a contractor retention. 12 Credltors: amounts falllng due after more than one year 2021 2020 Notes Bank loans Brilland Charitsble Trust loan 13 36,927 90,000 45,833 90,000 126,927 135,833 13 Loans and overdrafts 2021 2020 Bank and trust funding 135,260 140,000 Payable within one year Payable after one year 8,333 126,927 4,167 135,833 -24-
THE NEHEMIAH PROJECT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 13 Loans and overdrafts Icontinued) During the 2020 year the Charity repaid its Charity Bank loan with a Natwest Bounce Back loan. The loan has 8 fixed interest rale of 2.50/0 and is repayable over six years. with no interest or repayments for the first twelve months. The Bounce Back loan is unsecured. The £90,000 Brilland Trust loan is unsecured, non interest bearing and has no fixed repayment date. No amounts have been recognised in the accounts for the donation in kind of interest forgone or in respect of discounting lo nel present value due lo no aged schedule of repayments. 14 Deferred Income 2021 2020 Performance related grants Grants for a future lime period 16,000 100,369 10,000 116,369 10,000 All deferred income is expected to reverse within one year. 15 Retirement benefit schemes Defined contribution schemes The charitable company operates a defined contribution pension scheme for all qualifying employees under an auto enrolment pension scheme. The assets of the scheme are held separately from those of the Charitable company in an independently sdministered fund. The charge lo profil or loss in respect of defined contribution schemes was £7,37912020- £6,795) 16 Designated funds The unrestricted income funds of the charity include the following designated funds which have been sel aside out of unrestricted funds by the trustees for specific purposes.. Balance at 1 January 2020 Resources exppnded Transfers Balance at 1 January 2021 Resources expended Transfers Balance at 31 De¢ember 2021 Property capital fund 758,389 19,5491 12,209 761,050 112,1221 65,270 814,198 758,389 19,5491 12,209 761,050 112,1221 65,270 814,198 Property capital fund - Income invested in the charity's residential homes, furnishings and equipment. The Britland Trust loan was made lo the charity to fund the purchase of 47 Tooling Bec Gardens and has been allocated lo this fund to identify where resources are used. -25-
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THE NEHEMIAH PROJECT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 19 Llmlted by guarantee The Charitable Company's legal stru¢ture is that of a company limited by guarantee. In the event of the company winding-up each member is liable to ¢ontribute lo any deficit to a maximum of £1 per member. 20 Operatlng lease Commltments Lessee The 'Move On, house and Pounlney Road are rented from Sanctuary Housing Trust under a management agreement. The agreed prevailing rent is £28,198 and £12,862 respectively and requires that the Charity provide support services to the residents. No adjustment to the rent is made in these accounts for the support provided lo the residents. In April 2020 a two year agreement was signed, and this has been extended for a further two years in 2021. There is a one year notice peri in the event either party wishes to lerminale the agreement. Fredrick Gardens is occupied from January 2019 under a five year lease with an annLJally reviewed rent The agreed prevailing rent stands al £20,740 al the balance sheet dale. The lease does not contain a break clause and so at the year end the charity was commilled to a further two years of rental charge. 98 Lodge Road is occupied from September 2020 under a 4 year three month lease. The agreed prevailing rent stands at £34,000 and at the year end the charity was committed to a further three years of rental charge. The charity has also committed lo redecoration of the property al the end of the lease to a maximum cost of £10,000. The lolal of the above payments is £194,540. During 2017 the charity signed a lease agreement for photocopier and telephone system rentsl. Al the year end there were 3 quarterly inslalments remaining of an initial 5 years and 3 months agreement, with a totsl wsl of £22,680 including VAT of which £3,240 is outstanding at the year end. -28-
THE NEHEMIAH PROJECT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 21 Related party transa¢tlon$ Mr R. AbNater is a Trustee of Sovereign Militsry Hospitaller Order of St John of Jerusalem, of Rhodes and of Malla {the Order of Mallal. The Nehemiah Project has ceiVed significant financial assistance from The Global Fund for Forgotten People, a fund with close ties to the Order of Malla, but has not received funding from the Order of Malts itself. The Trustees Report contains details of the work carried out with this funding and the income is disclosed in note 2. During the year the charity received £1,57812020- £2,300) in giving from Trustees. These funds We not sutijecl to any restrictions to activities beyond those normally undertaken by the charity. The charity purchased Iruslees liability insurance as part of a combined insurance package and accordingly no cost has been attributed to governan and support costs. None of the Trustees lor any persons connected with them) received any remuneration, travel expenses or benefits from the charitable company during the year. Remuneration of key management personnel The remuneration of key management personnel is as follows. 2021 2020 Aggregate compensation including pension and employers, national insurance 76,317 75,755 No financial guarantees have been given or received by related parties. 22 Analysis of changes in net funds At 1 January 2021 Ca8h tlows At 31 D8¢emb8r 2021 Cash at bank and in hand 410,454 1169,9321 240,522 Loans falling due within one year Loans falling due after more than one year 14,167} 145,833} 14,1661 8,906 18,3331 136,9271 360,454 1165,1921 195,262 -29-
THE NEHEMIAH PROJECT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 23 Cash generated from operatlons 2021 2020 IDefi¢illlsurpus for the year 1182,6301 162,723 Adjustments for= Investment income recognised in slalemenl of financial activities Depreciation and impairment of tangible fixed assets {81 12,122 1881 9,548 Movements in working capital-. Decreasellincreasel in debtors (Decreaseyincrease in creditors Increaselldecreasel in deferred income 55,383 191,1671 106,369 160,9801 97,330 129,0501 Cash {absorbed by)Igenerated from operations 199,9311 179,483 30-