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2024-03-31-accounts

Registered Charity No: 1061344 Registered Company No: 3317563

Annual Report 2023-24 Incorporating the report and financial statements for period ended 31 March 2024

Reference & Administrative Details for the year ended 31 March 2024

Trustees

The Trustees who served during the financial year and to the date the Report of the Trustees was signed were as follows:

Madeline Thomson (Chair since April 2021) Rosemary Milner (Resigned May 2024) Timothy Cotterall (Vice Chair) Ayub Khan Selina Lau (Resigned February 2024) Timothy Roberts (Hon. Treasurer) Nicholas Johnson Nicholas Leggett Rebecca Stockman Stefan Cantore Ian Bird

Trustees are appointed by the Board of Trustees in a general meeting. The number nearest to one third of Trustees shall retire by rotation at each Annual General Meeting and they may offer themselves for re-election.

Senior Leadership Team

Chief Executive, Benjamin Downing (since 1 December 2022) Head of Finance, Sharon Jackman (until September 2023) Director of Finance, Jeremy Simpson (from March 2024) Director of Operations, Graeme Gentry (from September 2023) Interim Head of Operations, Rebecca Chaplin (until September 2023) Director of Strategic Partnerships, Rebecca Chaplin (from September 2023) Facilities Business Manager, Peter Clark

Address and registered Office: 5 St George’s Mews, 43 Westminster Bridge Road, London SE1 7JB

Auditors

Sayer Vincent LLP 110 Golden Lane London EC1Y 0TG

Bankers

Barclays Bank plc, 29 Borough High Street, London SE1 1LY NatWest Bank plc 1 Penn Road, Beaconsfield, Buckinghamshire HP9 2PU

Solicitors

Lodders Solicitors LLP, 10 Elm Court, Arden Street, Stratford Upon Avon, Warwickshire CV37 6PA Russell-Cooke LLP, 2 Putney Hill, London, SW15 6AB

Company No: 3317563

Charity No: 10061344

Company Secretary

Sharon Jackman (until September 2023) Hazel Scarlett (from September to December 2023) Benjamin Downing (from December 2023)

Contents

A word from the Chair of Trustees 2
Jesus at the heart 4
Keychange voices 5
Trustees’ Report 11
Audit Report 19
Financial Statements 23

A word from the chair

Keychange is a Christian charity, and as such is inspired by the example of Christ to love and serve others, specifically by creating caring communities.

This annual report is slightly different in format to the 2023 version, in that it has been redesigned to incorporate stories of impact from across our communities. The report also includes all of the formal and legal reporting requirements of the Charity, and Company in terms of Governance, Finance, Policies, Activities, Audit, Risks and Reserves.

Keychange is currently undergoing some exciting changes which will inform the future work of the organisation. Part of this work has included revisiting the messaging of the Charity, to fine tune this and ensure consistency across future communications. At the heart of this messaging remains our focus on creating caring Christian communities, and specifically the transformational impact of such a community on the lives of those we serve. Work has also started on the brand architecture, which draws together our marketing discussions.

The care sector continues to experience its challenges including rising living costs, staff shortages etc, which in part led to our difficult decision to close two of our communities. Whilst this has been challenging for all involved, God continues to provide for the charity. Our housing communities are strengthening their staff teams and continue to work to support and equip the members of their communities. We are researching new opportunities for community sites which will benefit the local communities and the organisation. We have also experienced an improvement in occupancy rates across the organisation and are working hard to sustain this success.

Christ remains at the centre of all we do, and this year we’ve worked particularly hard to live this out. Our weekly team meetings are structured around universally relatable bible teachings, and our Christian Faith and Spirituality working group has been strengthening its external connections. Through this outreach, we are able to raise awareness to our non-Christian leaders about our faith, to ensure they feel comfortable and confident in supporting the faith of our Christian residents.

As Chair of Trustees, I am pleased about the achievements of CEO Benjamin Downing in his first full year in the role, and the clear vision and plan we have in mind for the future of Keychange. I am thankful to our strong and cohesive group of Trustees who continue to work enthusiastically to support our mission. We are taking action in relation to the fact that one of our valued Trustees moved on this financial year and two more will be leaving early in the next. We are appointing an agency to source high quality candidates related to finance, people and culture, and social care to refresh the Board this year. I look forward to the year ahead.

Madeline Thomson

Chair of Trustees

2

OUR IMPACT

PEOPLE AGED 60+ 256 SUPPORTED IN OUR CARE HOMES

EMERGENCY BED SPACES 10 PROVIDED AT ESTHER

KEYCHANGE EMPLOYEES WORKED ACROSS OUR 357 COMMUNITIES

WOMEN & YOUNG PEOPLE SUPPORTED IN OUR HOUSING 78 COMMUNITIES

YOUNG PEOPLE EMPLOYED 21% WHILST STAYING AT ESTHER

11

WOMEN LIVING INDEPENDENTLY FROM WAYSIDE

3

Jesus at the heart

Our identity as a Christian organisation remains at the heart of Keychange, and efforts throughout the year have further strengthened this.

We continue to have a consistent turnout at our Christian Faith and Spirituality meetings which are held regularly. Within these meetings we work together to empower leaders to support their staff and residents with their Christian faith.

Prayer, Praise and Togetherness has continued to meet the Christian faith needs of those living in our communities through an online fortnightly service. This is where communities meet together to read scripture, sing hymns and pray for each other and includes some modern songs and prose. Links have also been strengthened with Anna Chaplaincy who visit care homes in person to run services, offer spiritual support and prayer.

Relationships with local churches are being established, and some links re-established following a period of quiet post COVID-19.

Christian literature is made available within each Keychange community to share amongst staff and residents, and following a renewed focus on marketing, this is being reviewed.

Our weekly online organisational meetings have a Christian focus, whilst still appealing to those of no faith, and continue to include a time of reflection and prayer.

" - Jeremiah 29:11 For I know the plans I have for you,” declares the LORD, “plans to prosper you and not to harm you, plans to give you hope and a future."

“I love the impact that I see Keychange making to transform the lives of the vulnerable adults that we work with. Staff consistently ‘step beyond’ in order to walk alongside and advocate for community members across all of our sites. This desire of staff members to serve in this way is both humbling and impacting.”

4

We care about people

Keychange voices - from those who lead our communities

Sarah Mainwaring - Care Manager

I love working at Keychange and helping to provide safe and caring communities that put the wellbeing of those who live with us at the forefront of everything we do. I love that, whilst we do need to break even, the people in our communities come first.

We have so many different characters and personalities who live in our homes and it makes everyday different. I enjoy the team I work with, and we’re all there for those we care for.

Jenny Harber - Housing Manager

I love the authenticity of Keychange. What we say in our mission and marketing statements is true to what happens. I also love the togetherness that exists between staff and residents.

Everyone has a part to play in making the house safe and welcoming which is a common desire of all who live and work here. This means that people enjoy being here, feel secure, make progress and achieve personal goals.

Image above: Jenny pictured receiving an award for Outstanding Team Achievement, presented by Trustee Stefan Cantore in 2021.

5

We care about people

Building caring communities

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We care about people

Building caring communities

7

Providing hope to the homeless Keychange voices - from the residents we care for Ilana - resident at Wayside Ilana joined Wayside in December 2023, after leaving the foster care system. Following a period which involved moving back in with her birth family, and then sofa surfing, she was directed to Wayside by her care leaver worker. “I love how kind and welcoming everyone is at Wayside, and the staff really respect you as individuals. Whilst the goal is for us all to be independent, we all move forwards at different rates, and they respect that. I feel a sense of peace whilst being at Wayside, something which I’d lost before, and I’m excited for my future.” oe e (64 Z t, Vy, Be j y : Se GH »* Ay dM f Fg 4 W/ yy hA 4%: TVie f nha . 4 r p74 F E ail \ 7 " 4 . 8

We care about people

Keychange voices - from the residents we care for

Mary - resident at Fair Havens

Before Mary joined Fair Havens, she enjoyed a very active lifestyle which involved long walks in the countryside. Her love of exercise and having a healthy lifestyle is what inspired her to join Chairobics each week...

“My family do not have to worry about me. They know and I know that I am very well looked after, and encouraged to do things for myself. I frequently say Grace before meals, as it is a time to thank God for our friends, relatives and the carers who support us.”

9

We care about people

Keychange voices - from the families of the residents we support in care

108

Keychange Charity Trustees’ Report For the year ended 31 March 2024

The Trustees, being the company's directors, present their annual report on the affairs of the charity, together with the Accounts and Auditor's Report for the year ended 31st March 2024. The information included on Page 2 forms part of the Trustees’ Report. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” issued in January 2015 in preparing the annual report and financial statements of the charity. The financial statements comply with all statutory requirements and the requirements of the charity’s governing document.

What we do

Our objects, as stated in our Memorandum of Association, are:

Governing Documents

Keychange is a registered charity and a registered company limited by guarantee. It is governed by its memorandum and articles of association dated 23 November 1996. Keychange Charity is affiliated to the Evangelical Alliance.

Trustees and Leadership Team

Trustees are appointed by the Board of Trustees in general meeting. One third of Trustees retire by rotation at each Annual General Meeting and may offer themselves for re-election. Our individual Trustees share a broad mix of skills appropriate to the governance responsibilities of the Board and the objectives and activities of Keychange. We complete a regular audit of these skills to ensure ongoing effective governance, leadership and working with the Senior Leadership Team.

Potential new Trustees are invited to attend a Trustees meeting as an observer, visit one of our communities, and be interviewed by the Chair. On acceptance of a formal invitation there is an induction program led by the CEO, and if relevant referral to the Charity Commission’s relevant guidance.

Keychange is a Christian Charity, creating caring communities. We fulfil our objective by providing care and support for older people and young homeless people. Our values and behaviours are based on Christian principles and linked to the Bible. We try to follow Jesus Christ’s example of giving practical love and compassion in our residential care communities for the elderly and residential supported accommodation for young adults. We firmly believe that creating a caring community for all people to live and work alongside one another improves their physical, emotional, mental and spiritual well-being. We provide care and support in seven care homes and two homeless housing settings for a maximum of 203 vulnerable adults.

Selina Lau, who served as a Trustee since 2018, resigned on 19 February 2024. Benjamin Downing who was appointed as the new CEO from 1 December 2022, continued in post. The Senior Leadership Team included Peter Clark (Facilities Business Manager), Graeme Gentry (Director of Operations), Jeremy Simpson (Director of Finance), and Rebecca Chaplin (Director of Strategic Partnerships).

11

Keychange Charity Trustees’ Report For the year ended 31 March 2024

Organisational Structure

The Board of Trustees meets four times a year. The Trustees determine the strategy and policy of the charity and get more involved in specific areas by being part of a Trustee Working Group. Working groups (details below) review progress against existing plans and formulate potential new recommendations to the Board. Each group comprises Trustees and Senior Leadership Team (SLT) members with the appropriate skill sets. At present the four Working Groups and the Trustees involved in each are as follows:

Quality and Safety

To monitor, review care and support operations, care policy, quality improvement and inspection reports.

Nicholas Johnson (Chair); Rosemary Milner; Nicholas Leggett and Stefan Cantore (SLT lead: Rebecca Chaplin then Graeme Gentry).

People and Organisational Development

To focus on development of people and culture within the organisation including policy, retention etc.

Stefan Cantore (Chair); Selina Lau; Rosemary Milner and Nicholas Johnson (SLT lead: Sharon Jackman then Rebecca Chaplin).

Finance & Facilities

To monitor, review and report on financial performance and risk, and the state of property, facilities, IT, Health and Safety. Timothy Roberts (Chair); Timothy Cotterall; Ayub Khan and Ian Bird (SLT lead: Sharon Jackman then Jeremy Simpson).

Strategy

Day to day management is delegated to the Senior Leadership Team with regular contact to the Chair. The Senior Leadership Team oversee the strategic plan delivery, developments, as well as the operational day to day leadership and management of our mission, policies and performance. The wider Keychange Leadership group includes SLT along with our community managers and key leaders.

This leadership delivers the core mission and work of creating caring communities for high quality care and support. Registered Managers lead their team of staff in each location. Our Central Office Team seeks to support, enable, empower and equip our communities’ leaders in terms of Quality Improvement, Leadership, HR, Facilities, Finance, Health & Safety, Recruitment, Administration, Communications, amongst many other areas.

There are role descriptions and person specification and pay scales for all staff, which are reviewed annually as part of the budget process. Where appropriate these take account of London based salaries in the charity sector for similar positions.

Related Parties and Connected Charities

Under various uniting directives issued by the Charity Commission, the following communities are seen as linked charities and their financial activities have been amalgamated into Keychange Charity in the following financial statements:

To develop and focus organisational vision, strategy, functions and governance and develop our future direction.

Timothy Cotterall (Chair); Madeline Thomson; Ayub Khan; Rebecca Stockman and Timothy Roberts (SLT lead: Benjamin Downing).

12

Keychange Charity Trustees’ Report For the year ended 31 March 2024

Objectives and Activities

The objects of the Charity are as stated in its Memorandum of Association and are listed under ‘What we do’ on page 11. The mission of Keychange Charity is to create caring communities by providing care, support, acceptance, and Christian community to people in need. This forms the basis of our vision and the strategy that supports it.

The Board and the Working Groups regularly review our vision, strategy, achievements, and update details and targets for the future, across the strategic themes:

Public Benefit

The Trustees have taken account of the Charity Commission’s guidance and demonstrate public benefit has been provided to beneficiaries through the following activities:

•Our community vision recognises that we support strong connections with the local communities and encourage volunteers to support us

•Housing young people who would otherwise be homeless, and supporting them into education and employment

•Providing support and guidance for young people in our housing communities which benefits society as well as enabling residents to gain independence

•Providing a wide range of care and support including activities for our residents

•Offering work experience opportunities for young people

13

Keychange Charity Trustees’ Report For the year ended 31 March 2024

Organisational Update

Across the Keychange communities we continue to deliver safe care, create processes and equip staff to support community members as well as develop their own self-care.

Care Communities

We have worked locally and across the organisation to increase occupancy through increased partnerships, networking, word of mouth recommendations and marketing. We are better utilising the feedback and experience of community members, so our reputation, our mission, and our positive regulatory standing achieve our desired goal of impacting more vulnerable adults with quality care.

Housing Communities

We operate housing communities where we provide support, hope and opportunity to homeless young men and women from 16 years old.Our goal is to offer a safe place to live, grow, develop and help them restore, and to them find ongoing purpose for their lives. We have two housing communities and our teams in Surrey and Devon maintained and expanded links with the community and churches. We are appreciative of our whole staff team that invests and advocates for the residents in each Housing community site.Their work and service allow Keychange to achieve our mission and goals to impact the lives of vulnerable adults.

Partnerships

We’re investing in partnerships for the organisation to be better connected. With this in mind our membership of the National Care Forum is key to being connected and understanding best practice in the sector.

We are also investing time and capacity in being in relationship with local authorities so we can better deliver the impact we want alongside their needs. We are working actively with Faith in Later Life to foster collaboration with other like minded organisations.

We also continue to grow our knowledge and partners in the supported housing sector.

Leadership

The leadership team continued to review the organisation and each community in terms of impact, quality of care and financial viability. We made the difficult decision to close two communities in FY23/24. The first to close was Overdale community, Sheffield and the second was Walmer House, Torquay. After a huge investment to increase the number of residents, and following discussions with Trustees, it became apparent that we were unable to continue to operate these care communities sustainably.

All residents were relocated successfully, and we give thanks that the process was completed well and for the leaders that were present and guided the staff and communities.

Cross organisational working

We have strengthened connections between the Central Office and Registered Managers in a group called the Leadership Cohort. Our crossorganisational engagement approach allowed leaders to share and learn regularly which gave opportunity for leaders to speak about their current reality and the challenges that they face.

14

Keychange Charity Trustees’ Report For the year ended 31 March 2024

Our regular gathering called Praise, Prayer and Togetherness has been a great time together and will continue as we go forward.

During the financial year FY23/24 there was a large amount of change in our leadership team. This included the recruitment of Graeme Gentry as the Director of Operations, and Jeremy Simpson as the Director of Finance.

In order to support staff and managers in each community, we have continued to invest in People and Culture, and Communication capacity. This has helped us in the recruitment of good staff and developing healthy partnerships.

This year we have strengthened the governance of the organisation and the Board of Trustees. Trustees continue to complete an evaluation at the end of year to review their own performance. These evaluations are collated and reviewed to ensure continuous improvement of governance functions and performance. This year we have provided Governance training to our Board on Safeguarding.

Marketing and Communications

In order to ensure consistency across its future communications, and clarity throughout the organisation of our core identity, Keychange began working to clarify its messaging. This process helped to emphasise some of the values already inherent within Keychange, but brought them to light in a new and exciting way.

The messaging for the Keychange umbrella organisation is as follows:

Fundraising Standards Information

We adhere to the UK Fundraising Regulator and its Fundraising Code. We have not had any breaches of these during 2023-24.

Our People

Keychange is committed to diversity within recruitment processes and assesses all candidates on their merits and abilities. We work hard with employees to provide training and development opportunities.

We are mindful of how we engage with vulnerable people, ensure we work within the Data Protection Laws and Fundraising Code of Practice, and seek advice from the Safeguarding Leads when needed. The charity does not employ outside or commercial fund-raisers.

November saw the introduction of the Keychange Cares Award; an Award that acknowledges the work of staff who have gone above and beyond in their roles. This Award is presented monthly and ensures that staff receive recognition for their contributions.

Keychange seeks to engage all staff through increased internal communications.

We ensure that our supporters are kept up to date with our work and that they can give to support it. No complaints have been received in the year about our fundraising.

Risk Management

The Board and Senior Leadership Team (SLT) conducted risk assessments and identified the priority risks to which the Charity is exposed, due to our areas of work they are focussed in operations and finances.

15

Keychange Charity Trustees’ Report For the year ended 31 March 2024

Current organisational risks are assessed by the Senior Leadership Team (SLT) and within the Board Working Groups on a cyclical basis. Immediate operational risks are considered at the SLT meeting with relevant strategies put in place. The Trustees are satisfied that systems are in place to mitigate the charity’s exposure to the major risks.

Finally, a revaluation of properties scheduled for sale resulted in a £1.4m increase in asset values, credited where applicable to the appropriate reserves.

Future

We are developing a strategic organisational plan to better achieve our vision and mission.

Due to the various years of transition the initial focus of this plan was the coming year. Going forward a longer-term strategy will be developed as better business information is researched.

Our Vision is to Create Christian Caring Communities. Our new strategy plan focuses on increasing the number of people we impact, financial health & sustainability, and strengthen organisational systems. Our priority for the future is that Keychange increases the reach and number of vulnerable adults supported.

Financial Review

Total turnover from our care homes and housing communities for the year ending March 31, 2024, was £9.1 million (up 1.8% from £8.9 million). Despite significant cost pressures from energy, food, and staffing, we managed expenditures well and reduced total costs by 0.8%. The closure of the Overdale site in Sheffield helped cut overall losses, bringing this year’s operating loss to £453k compared to last year’s loss of £698k. We've taken further steps to achieve a balanced budget in the following operating year (2024-25).

16

Keychange Charity Trustees’ Report For the year ended 31 March 2024

Going Concern

The Charity's Trustees confirm that, after� recognising the deterioration in net current assets� position as of 31 March 2024 and after reviewing� the 2024-25 budget and cash flow estimates, they� remain confident in the achievability of the� outcome and that the organisation is financially� viable in short to medium term. They reaffirm the� Charity's compliance with the CQC and Ofsted� operating frameworks and find no other financial or� regulatory issues that could lead to the charity� ceasing operations. Therefore, the Trustees have� decided to continue preparing the financial� statements on a Going Concern basis. Please take a� look at the Accounting Policies section (see 1) for� more information about this basis.

Reserves

The Trustees of Keychange have�Eadopted the following policies regarding�unrestricted reserves (free reserves) to accomplish�the following goals:

For 2023-24, this value is in the range of £4.9m to £9.8m. The actual value for the year ended March 2024 is £1.5m, representing just under two month’s of operating cost.

The Trustees are committed to rebuilding the unrestricted reserves to the minimum level. This is a priority.

The existing Estates & Capital fund is renamed the Capital Reserve Fund. This fund represents the net book value of Tangible Fixed Assets employed by the Charitable group, excluding those held in Restricted Funds. A further £620k is a contingency designation to cover the losses currently suffered on the linked charities, should it not be possible to apply property proceeds against the Restricted Fund income losses. Discussions continue with the Charity Commission.

Restricted reserves are those for which a specific charitable purpose has been attached to the gift. We recognise that they cannot be used in the charity's general operations without the donor's explicit permission.

When considering the nature of care/refuge operations, the Trustees consider a range equivalent to six to twelve months of operating costs, a reasonable value.

17

Keychange Charity Trustees’ Report For the year ended 31 March 2024

Statement of Trustees’ Responsibilities

The Trustees (who are also directors of Keychange Charity for the purposes of company law) are responsible for preparing the Trustees’ annual report including the strategic report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company or group for that period.

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

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

In so far as the Trustees are aware:

In preparing these financial statements, the Trustees are required to:

•There is no relevant audit information of which the charitable company’s auditor is unaware

•Select suitable accounting policies and then apply them consistently

•Observe the methods and principles in the Charities SORP

•Make judgements and estimates that are reasonable and prudent

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

•The Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information

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

Both the Trustees’ Report and the Strategic Report were approved by the Trustees and signed on 25th July 2024 on their behalf by

…………………………. Timothy Roberts, Trustee

18

Independent Auditor’s Report to the members Keychange Charity For the year ended 31 March 2024

Opinion

We have audited the financial statements of Keychange Charity (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 March 2024 which comprise the consolidated statement of financial activities, the group and parent charitable company balance sheets, the consolidated statement of cash flows and the notes to the financial statements, 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

•Give a true and fair view of the state of the group’s and of the parent charitable company’s affairs as at 31 March 2024 and of the group’s 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

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on Keychange Charity'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.

•Have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.

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Independent Auditor’s Report to the members Keychange Charity For the year ended 31 March 2024

Other Information

The other information comprises the information included in the Trustees’ annual report, including the strategic report, other than the group financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the group 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 group 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 group financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ annual report, including the strategic report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of Trustees

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

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Independent Auditor’s Report to the members Keychange Charity For the year ended 31 March 2024

In preparing the financial statements, the Trustees are responsible for assessing the group’s and the parent 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 group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charites Act 2011 and report in accordance with those Acts.

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

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

Capability of the audit in detecting irregularities

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

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

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Independent Auditor’s Report to the members Keychange Charity For the year ended 31 March 2024

We reviewed any reports made to regulators

Use of our report

This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Judith Miller (Senior statutory auditor)

Date: 21 August 2024

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 noncompliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of noncompliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

for and on behalf of Sayer Vincent LLP, Statutory 110 Golden Lane, London, EC1Y 0TG

Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006.

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

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Keychange Charity Consolidated Statement of Financial Activities (incorporating an income and expenditure account) For the year ended 31 March 2024

Total income
Income from:
Donations and government support
Charitable activities
Expenditure on:
Charitable activities
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
Net income / (expenditure) for the year
Total expenditure
Net income / (expenditure) before net gains / (losses) on
investments and revaluation of fixed assets
Transfers between funds
Care for the Elderly
Support for the Homeless
Care for the Elderly
Support for the Homeless
Grants
Investments
Net gains / (losses) on investments and revaluation of fixed
5
5
6
Note
2
3
3
4		 Unrestricted
£
99,408
5,436,130
742,037
-
49024
Restricted
£
-
2,777,739
-
-
1904		 2024
Total
£
99,408
8,213,869
742,037
-
50928
Endowment
£
-
-
-
-
-
Unrestricted
£
30,744
5,648,150
692,155
-
39813
Restricted
£
5,818
2,502,042
-
16,186
4636
Endowment
£
-
-
-
-
-		 2023
Total
£
36,562
8,150,192
692,155
16,186
44449
,
,		 ,

-
,
6410862
,
2528682
-		 ,
8939544
6326600
2779643
,,
,,		 9,106,243

,,
,,
 ,,
6,187,146
736166
2,621,265
14055		 8,808,411
750,221
-
-
6,198,961
720840
2,717,736
-
-
-		 8,916,697
720840
,

,
 ,

 ,
6,923,312
2,635,320		 9,558,632
-
6,919,801
2,717,736
-		 9,637,537
(596,713)
1135855
144,323
259466		 -
(452,390)
1,395,320
-
-
-
(508,939)
2
(189,054)
-		 (697,993)
2
,,
,
539,142
93386
403,789
(93386)		 942,931
-
-
-
(508,937)
166320
(189,054)
(166320)
-
-		 (697,991)
-
,
,		 ,
,
942,931
632,528
310,403
-
(342,617)
(355,374)
-
9,533,148
(930,122)
360,778
8,963,804
9,875,765
(574,748)
360,778		 9,661,795
(697,991)
10,165,676
(619,719)
360,778
9,906,735
9,533,148
(930,122)
360,778		 8,963,804

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 17 to the financial statements.

23

Keychange Charity Balance Sheet For the year ended 31 March 2024

Registered Charity No: 1061344 Registered Company No: 3317563

Liabilities:
Creditors: amounts falling due within one year
Fixed assets:
Tangible assets
Current assets:
Debtors
Current assets investments
Cash at bank and in hand
Short-term deposits
Total net assets
Total charity funds
The funds of the charity:
Endowment funds
Restricted funds
Unrestricted income funds:
Designated funds
General funds
Total unrestricted funds
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after one year
13
12
14
15
16a
Note
11		 The group
2024
£
10,511,506
2023
£
9,066,870		 The charity
2024
£
10,316,654
2023
£
8,864,376		 The charity
2024
£
10,316,654
2023
£
8,864,376
8864376
10511506
9066870		 10316654
,,
304,456
1,107
498,815
,,
399,168
1,107
482,139
 ,,
323,808
1,107
423,716		 ,,
411,699
1,107
469,339
-
550,000		 - 550,000
804,378
(1,012,496)
1,432,414
(1,036,847)		 748,631
(921,408)		 1,432,145
(985,118)
(208,118)
395567		 (172,777) 360,778
(981,314)
1,465,000
7,997,564
9,462,564
8,842,028
447,027
9,311,404
(469,376)
8,842,028
,
10,303,388
(396653)
9,462,438
(498634)		 10,143,877
(377543)
,

,		 ,
9,906,735
8963804		 9,766,334
,,
360,778
(619,719)
8,665,968
1499708
360,778
(930,122)
1,465,000
8068148		 360,778
(652,995)
8,665,968
1392583
,,
1017
,,
9533148		 ,,
10081
,65,66
,,		 ,5,55
9,906,735
8,963,804		 9,766,334

Approved by the Trustees on 25 July 2024 and signed on their behalf by:

.............................................

Madeline Thomson

Chair of Trustees

.............................................

Timothy Roberts Treasurer

24

Keychange Charity Consolidated Statement of Cash Flows For the year ended 31 March 2024

Note 2024 2023
£ £ £ £
Cash flows from operating activities
Net income/(expenditure) for the reporting period (as per the (452,390) (697,993)
statement of financial activities)
(Gains)/losses on investments - -
Depreciation charges 380,375 392,507
(Profit) / Loss on the disposal and revaluation of fixed assets 73,970 13,295
Impairment of fixed assets -
-
Transfer of fixed assets from mergers and new subsidiary - -
Interest from investments (50,928) (44,449)
Interest paid 35,901 23,066
(Increase)/decrease in stock - -
(Increase)/decrease in debtors 94,712 (83,113)
Increase/(decrease) in creditors (38,534) (159,140)
Net cash provided by / (used in) operating activities
43,107 (555,828)
Cash flows from investing activities:
Interest from investments 50,928 44,449
Interest paid (35,901) (23,066)
Proceeds from the sale of fixed assets - -
Proceeds from the sale of current asset investments - 10,356
Purchase of fixed assets (503,661) (423,826)
Proceeds from sale of investments - -
-
Purchase of investments -
Net cash (used in) investing activities (488,634) (392,087)
Cash flows from financing activities:
Repayments of borrowing (87,798) (117,130)
Cash inflows from new borrowing - -
Receipt of endowment - -
Net cash (used in) financing activities (87,798) (117,130)
Change in cash and cash equivalents in the year (533,325) (1,065,045)
Cash and cash equivalents at the beginning of the year 1,032,139 2,097,184
Change in cash and cash equivalents due to exchange rate - -
Cash and cash equivalents at the end of the year 498,815 1,032,139
Analysis of cash and cash equivalents and of net debt At 31 March
At 1 April 2023 Cash flows 2024
£ £ £
Cash at bank and in hand 1,032,139 (533,324) 498,815
Total cash and cash equivalents 1,032,139 (533,324) 498,815
Loans falling due within one year (107,589) (14,183) (121,772)
Loans falling due after more than one year (498,634) 101,981 (396,653)
Total 425,916 (445,526) (19,610)

25

Keychange Charity Notes to the financial statements

1. Accounting policies

a) Statutory information

Keychange Charity is a charitable company limited by guarantee and is incorporated in the United Kingdom.

The registered office address (and principal place of business) is 5 St George's Mews, 43 Westminster Bridge Road, London, SE1 7JB.

b) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)and the Companies Act 2006.

These financial statements consolidate the results of the charity and its wholly-owned subsidiary Stumpwell Housing Limited on a line by line basis. Transactions and balances between the charity and its subsidiary have been eliminated from the consolidated financial statements. The charity is also the sole Trustees and owner of Christian Alliance Trust Limited which is a dormant company. Balances between the entities are disclosed in the notes of the charity's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006 as a summary of the result for the year is disclosed in the notes to the accounts.

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

In applying the financial reporting framework, the Trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

These financial statements of the company are the accounts of Keychange Charity amalgamating a number of charities where uniting directions have been obtained from the Charity Commission - see note 19.

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

c) Public benefit entity

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

d) Going concern

The Charity's Trustees confirm that, after recognising the deterioration in net current assets position as of 31 March 2024...

26

Keychange Charity Notes to the financial statements

and after reviewing the 2024-25 budget and cash flow estimates, they remain confident in the achievability of the outcome and that the organisation is financially viable in short to medium term. They reaffirm the Charity's compliance with the CQC and Ofsted operating frameworks and find no other financial or regulatory issues that could lead to the charity ceasing operations. Therefore, the Trustees have decided to continue preparing the financial statements on a Going Concern basis. Please take a look at the Accounting Policies section (see 1) for more information about this basis.

e) Income

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

g) Fund accounting

Endowment funds are funds to be used for specific purposes as laid down by the donor and where there is no power to convert the capital donated into income.

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund. Included within restricted funds are details of the income and expenditure of each of the linked charities - see note 1b) and note 17.

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

Designated funds are unrestricted funds earmarked by the Trustees for particular purposes.

h) Expenditure and irrecoverable VAT

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

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

f) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

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

'Costs of raising funds relate to the costs incurred by the charity in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose. 'Expenditure on charitable activities includes the costs of delivering services undertaken to further the purposes of the charity and their associated support costs...

27

Keychange Charity Notes to the financial statements

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

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life.

i) Allocation of support costs

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

Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.

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

The depreciation rates in use are as follows:

Freehold property Land - not Buildings - 50 years Building Installations - 10 years

Furniture, fittings and equipment Fixtures and fittings - 8 years Computers - 4 years

l) Debtors

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

m) Current asset investments

Includes balances that are invested in a mixture of accounts and investment holdings.

j) Operating leases

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

k) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities.

Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Major components are treated as a separate asset where they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life.

n) Cash at bank and in hand

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

o) Creditors and provisions

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

28

Keychange Charity Notes to the financial statements

p) Financial instruments

The charity only has both basic and non-basic financial assets and financial liabilities. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. Non-basic financial instruments (which comprise derivatives) are measured at fair value with any gain or loss going to the statement of financial activities.

q) Pensions

The company operated pension schemes for the benefit of its employees. The funds of the schemes are administered by Trustees and are separate from the company. The schemes are defined contribution schemes and the contributions are charged to the Statement of Financial Activities. when incurred.

3
Income from charitable activities
Donations, legacies and government support
Local authority
Private care fees
Other income
Sub-total for care for the elderly
Local authority
Private care fees
Sub-total for support for homelessness
Total income from charitable activities
2		 Unrestricted
£
99,408		 2024
Total
£
99,408
Restricted
£
-		 2024
Total
£
99,408
Restricted
£
-		 Unrestricted
£
30,744
Restricted
£
5,818		 Unrestricted
£
30,744
Restricted
£
5,818

2023
T otal
£
36,562
36562
99408 - 99408 30744 5818
, , , , ,
Unrestricted
£
1,107,375
4,325,389
2260		 Restricted
£
963,294
1,814,445
-		 2024
Total
£
2,070,669
6,139,834
2,260		 Unrestricted
£
1,163,948
4,437,882
46320		 Restricted
£
511,520
1,984,860
5663
2023
T otal
£
1,675,468
6,422,742
51,983
,
 8212763 ,
 ,


8150192
5,435,023 2,777,739 ,, 5,648,150 2,502,042
,,
719,584
22,453
742037		 -
-
-		 719,584
22,453
742037		 638,116
54,038
692155		 -
-
-
638,116
54,038
692155
, , , ,
6,177,060 2,777,739 8,954,800 6,340,305 2,502,042
8,842,347
4
Income from investments
Dividends on listed Stock Exchange
investments and bank interest
Rent receivable
Feed in Tariff		 2024
Total
£
11,835
37,198
1,895
Unrestricted
£
11,826
37,198
-
Restricted
£
9
-
1,895
Unrestricted
£
3,301
36,512
-
Restricted
£
-
-
4,636
2023
T otal
£
3,301
36,512
-
50,928
49,024
1,904
39,813
4,636
44,449

29

Keychange Charity Notes to the financial statements

5a Analysis of expenditure (current year)

St t
Staff costs (Note 7)
Other staff costs
Agency and consultancy
Repairs and maintenance
Utilities Depreciation
Office costs
Audit and accountancy
Legal and professional
Food costs
Care home direct costs
Other costs		 Charitable activities Charitable activities
Governance
costs
£
-
-
-
-
-
-
-
-
-
-
-
-		 Support costs
£
645,842
114,884
-
32,760
4,923
11,451
102,399
85,319
44,950
66
2,650
(991)		 2024
Total
£
6,320,464
179,329
575,563
573,809
528,988
380,375
287,764
137,487
99,911
240,429
157,320
77,193		 2023
Total
£
6,037,256
196,987
992,084
612,609
559,104
392,507
139,577
79,504
96,398
242,909
149,123
139480
Care for the
Elderly
£
5,245,473
59,887
574,791
485,413
473,063
290,532
157,646
52,168
47,749
235,726
147,195
78056		 Support for the
Homeless
£
429,148
4,558
772
55,636
51,002
78,392
27,719
-
7,212
4,638
7,475
129
, ,
9637537
7847700 666681 - 1044251 9558632
,,
 ,
 ,,
 ,,
-		 ,,
Total expenditure 2024
uppor coss
Governance costs		 960,711
-		 83,540
-		 -
-		 (1,044,251)
-		 - -
-
8,808,411 750,221 - - 9,558,632

5b Analysis of expenditure (prior year)

Charitable activities
Care for the
Support for the
Elderly
Homeless
£
£


Governance
costs
£
 Charitable activities
Care for the
Support for the
Elderly
Homeless
£
£


Governance
costs
£
 Charitable activities
Care for the
Support for the
Elderly
Homeless
£
£


Governance
costs
£
 Support costs
£
 2023
Total £
Care for the
Elderly
£
Total expenditure 2023
Support costs
Governance costs
Staff costs (Note 7)
Other staff costs
Agency and Consultancy
Repairs and Maintenance
Utilities
Depreciation
Office costs
Audit and Accountancy
Legal and Professional
Food Costs
Care Home Direct Costs
Other costs		 5,156,627
88,784
868,405
445,116
491,816
322,536
79,701
12,712
53,215
237,941
122,020
922		 418,014
6,816
19,688
52,223
47,153
61,469
11,948
-
1,531
4,113
11,033
 35,232
-
-
-
-
1,700
-
960
-
-
-
9		 427,384
101,387
103,991
115,270
20,135
6,801
47,927
65,831
41,653
854
16,069
 6,037,256
196,987
992,084
612,609
559,104
392,507
139,577
79,504
96,398
242,909
149,123
5,8 1,807 5,88 71,863 139,480
7,938,696
937,632
40,370		 635,796
81,533
3,510		 43,880
-
(43,880)		 1,019,165
(1,019,165)
-		 9,637,537
9,637,537
-
-
8,916,697 720,840 - -

30

Keychange Charity Notes to the financial statements

6 Net income / (expenditure) for the year

This is stated after charging / (crediting):

Net income / (expenditure) for the year
This is stated after charging / (crediting):
2024 2023
£ £
Depreciation 380,375 392,507
Profit on disposal of fixed assets - -
Interest payable 35,901 23,066
Auditor's remuneration (excluding VAT):
Audit 26,800 24,900
Other services 6,400 4,000

7 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel Staff costs were as follows:

Analysis of staff costs, trustee remuneration and expenses, and the cost of key
personnel Staff costs were as follows:		 management
2024 2023
£ £
Salaries and wages 5,539,521 5,440,479
Redundancy and termination costs
Social security costs
Employer’s contribution to defined contribution pension schemes		 137,142
395,819
247,982		 22,879
395,146
178,753
6,320,464 6,037,256
Agency costs 575,563 992,084
Other staff expenses 179,329 196,987
7,075,356 7,226,328

The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:

uring the year between:
2024 2023
No. No.
£60,000 - £69,999 1 1
£70,000 - £79,999 - -
£80,000 - £ 89,000 1 -

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £346,942 (2023: £284,875)

The charity Trustees were neither paid nor received any other benefits from employment with the charity in the year (2023: £nil).

No charity Trustee received payment for professional or other services supplied to the charity (2023: £nil). Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £4,880 (2023: £5,988) incurred by 11 (2023: 11) members relating to attendance at meetings of the Trustees. The charity also purchased directors indemnity insurance for a premium of £866 (2023: £795).

31

Keychange Charity Notes to the financial statements

8 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 268 (2023: 274). Staff

are split across the activities of the charity as follows (head count basis):

Charitable activities
Administration		 2024
No.
255
13
2023
No.
262
12		 2024
No.
255
13
2023
No.
262
12
274
268

9 Related party transactions

There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.

The Christian Alliance Trust Corporation Limited

Christian Alliance Trust Corporation Limited (CATC), which is a company limited by guarantee, is the custodian Trustee for all properties owned by Keychange. It also secures through the directors of Keychange that the work of Keychange shall be carried on in strict compliance with the objects and aims of the constitution.

10 Taxation

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

11 Tangible fixed assets for the group

Tangible fixed assets for the group
Furniture,
Freehold fittings and
Cost or valuation property equipment Total
£ £ £
At the start of the year
Additions in year
Disposals in year		 11,968,371
446,438
-		 1,232,963
57,223
(197,811)		 13,201,334
503,661
(197,811)
Revaluations 1,469,290 (73,970) 1,395,320
At the end of the year 13,884,099 1,018,584 14,902,504
Depreciation
At the start of the year 3,245,982 888,482 4,134,464
Charge for the year 332,173 48,202 380,375
Eliminated on disposal - (123,841) (123,841)
At the end of the year 3,578,155 812,843 4,390,998
Net book value
At the end of the year 10,305,944 205,561 10,511,506
At the start of the year 8,722,389 344,481 9,066,870

Land with a value of £1,108,750 (2023: £1,108,750) is included within freehold property and not depreciated. Professional valuations for freehold and leasehold property and improvements were undertaken at 31 March 1997. The valuations undertaken in 1997 represent the deemed cost of the asset.

32

Keychange Charity Notes to the financial statements

11 Tangible fixed assets (continued)

Tangible fixed assets (continued)
Debtors
Depreciation
At the start of the year
Charge for the year
Eliminated on disposal
At the end of the year
Net book value
At the end of the year
Current asset investments
The charity
Cost
At the start of the year
Additions in year
Disposals in year
Revaluations
At the end of the year
At the start of the year
Trade debtors
Other debtors
Prepayments and accrued income
Fair value at the start of the year
Disposal proceeds
Net gain / (loss) on change in fair value
Fair value at the end of the year
All of the above assets are used for charitable purposes.		 The group
2024
£
1,107
-
-
10,114,302
8,530,747
2023
£
11,461
(10,356)
2
3,235,318
332,173
-
3,567,491
Freehold
property
£
11,766,065
446,438
-
1,469,290
13,681,793		 Freehold
property
£
11,766,065
446,438
-
1469290		 Total
£
12,980,568
503,661
(197,811)
1395320
Fixtures and
fittings
£
1,214,503
57,223
(197,811)
73970
,, ,,

(,)
13,681,793 14,681,738
999,944
3,235,318
332,173
-		 4,116,192
372,733
(123,841)
880,874
40,560
(123841)
,
3,567,491 4,365,084
797,593
10,114,302 202,531
10,316,654
8530747 333629
8,864,376
,, ,
The charity
2024
£
1,107
-
-
2023
£
11,461
(10,356)
2
1,107
1,107		 1,107
1,107
The group
2024
£
213,906
-
90,550
2023
£
258,156
22,408
118604		 The charity
2024
£
86,470
155,634
81,704
2023
£
185,249
114,411
112039
, ,
304,456
399,168		 323,808
411,699

12 Current asset investments

13 Debtors

33

Keychange Charity Notes to the financial statements

14 Creditors: amounts falling due within one year

15
Creditors: amounts falling due after one year
Repayable in 1-2 years
Repayable in 2-5 years
Repayable after 5 years
Bank loans
Trade creditors
Taxation and social security
Other creditors
Accruals		 The group
2024
£
121,772
167,765
139,838
465,481
117,640
2023
£
107,589
145,651
164,737
465,485
153,385		 The charity
2024
£
113,359
162,515
119,970
432,959
92,605
2023
£
102,247
142,560
156,566
465,485
118,260		 The charity
2024
£
113,359
162,515
119,970
432,959
92,605
2023
£
102,247
142,560
156,566
465,485
118,260
1,012,496
1,036,847		 921,408
985,118
The group
2024
£
110,660
285,993
-
2023
£
107,589
322,766
68279		 The charity
2024
£
102,247
275,296
-
2023
£
102,247
306,740
60389
, ,
396,653
498,634		 377,543
469,376

Total group bank loans of £518,425 (2023: £606,223 ) include the following bank loans. All charity loans are also secured by debentures on the assets of the Christian Alliance Trust Corporation and Keychange Charity, with interest being charged at the bank's lending rate:

16a Analysis of group net assets between funds (current year)

Analysis of group net assets between funds (current
year)
Net assets at 31 March 2024
Net assets at 31 March 2023
Analysis of group net assets between funds (prior year)
Tangible fixed assets
Net current assets
Long term liabilities
Tangible fixed assets
Net current assets
Long term liabilities		 Total funds
£
10,511,506
(209,118)
(396653)
Unrestricted
£
8,046,249
2,119,427
-
Restricted
£
2,104,479
(2,327,545)
(396653)
Endowment
£
360,778
-
-
,
,
10,165,676
(619,719)
360,778
9906735
,,
Total funds
£
9,066,870
395,567
(498634)
Unrestricted
£
7,119,023
2,414,125
Restricted
£
1,947,847
(2,018,558)
(498634)
Endowment
£
360,778
-
-
,
,
9,533,148
(930,122)
360,778
8,963,804

16b Analysis of group net assets between funds (prior year)

34

Keychange Charity Notes to the financial statements

17a Movements in funds (current year)

Movements in funds (current year)
Total restricted funds
Unrestricted funds:
Unrestricted - general
Designated funds:
Linked charities support
Capital reserve
Total unrestricted funds
Total funds
Permanent endowment funds:
Keychange funds:
Reigate
Linked charities' funds:
Alexander House
Erith House
Total endowment funds
Restricted funds:
Keychange capital funds:
Reigate
Linked charities' capital funds
Alexander House
Cressingham House
Erith House
Other restricted funds:
Stumpwell Housing
Linked charities' income funds
Alexander House
Cressingham House
Erith House
Total designated funds		 150,230
20,413
190135
At 1 April
2023
£
Income & gains
£
-
-
-
-
-
-
Expenditure &
losses
£		 Transfers
£
-
-
-		 150,230
20,413
190135
At 31 March
2024
£
, ,
360,778
-
-		 - 360,778
53,249
1,283,342
173,001
77,477
51,192
(1,258,646)
(953,575)
(356162)
259,466
895,244
900,026
2,182
982191
(14,055)
(50,276)
-
(38,503)
(819,774)
(975,258)
(19,518)
(717936)
-
-
-
-		 39,194
1,233,066
432,467
38,974
33,276
(1,333,878)
(970,911)
(91906)
(93,386)
-
-
-
-
-
-
-
,
,
,		 ,
(930122)
3039109
(2635320)		 (619719)
(93386)
,
,,
,,		 ,
,
99
8,068,148
7,462,455
(6,923,312)		 1,4,708
(7,107,582)
1,000,000
465000
-
-
-
-		 619,719
8046249
(380,281)
7581249
, ,,

,,
1465000
-
-		 8,665,968
7200968
,, ,,
9,533,148
7,462,455
(6,923,312)
 10,165,676
93,386 -
8,963,804
10,501,564
(9,558,632)		 9,906,735

The narrative to explain the purpose of each fund is given at the foot of the note below.

35

Keychange Charity Notes to the financial statements

Total restricted funds
Unrestricted funds:
Unrestricted - general
Designated funds:
Linked charities support
Estates renewal fund
Capital maintenance fund
Estates and capital fund
Total designated funds
Other restricted funds:
Reigate
Exeter
Stumpwell Housing
Linked charities' income funds
Alexander House
Cressingham House
Erith House
Inter-fund loan
Total unrestricted funds
Total funds
Permanent endowment funds:
Keychange funds:
Reigate
Linked charities' funds:
Alexander House
Erith House
Total endowment funds
Restricted funds:
Keychange capital funds:
Reigate
Linked charities' capital funds
Alexander House
Cressingham House
Erith House
17b
Movements in funds (prior year)		 150,230
20,413
190135
At 1 April
2022
£
Income & gains
£
-
-
-
-
-
-
Expenditure &
losses
£		 Transfers
£
-
-
-		 150,230
20,413
190135
At 31 March
2023
£
, ,
360,778
-
-		 - 360,778
67,067
1,334,259
184,437
100,841
58,327
98,770
97,373
(1,297,341)
(866,330)
(329,972)

-
-
1,784
-
-
-
827,751
875,311
29,242
794,594
(13,818)
(50,917)
(13,220)
(23,364)
-
-
(842,529)
(836,616)
(116,487)
(820,784)		 -
-
-
-
(58,327)
(98,770)
(31,403)
-
-
-
 53,249
1,283,342
173,001
77,477
-
-
-
51,192
(1,258,646)
(953,575)
(356,162)
(22,180)

-

-
 22,180
 -
(574748)
2528682
(2717736)		 (166320) (930122)
,
,,
,,		 , ,
808148
9,527,698
6,410,864
(6,826,751)		 (1,043,663) ,6,
-
132,396
215,671
-
-
-
-
-
-
(88,139)
(4,911)
-		 1,000,000
(44,257)
(210,760)
465,000		 1,000,000
-
-
465,000
348067
-
(93,050)		 1,209,983 1465000
,
 ,,
9875765
6410864
(6919801)		 166320 9,533,148
,,
,,
,,		 ,
9,661,795
8,939,546
(9,637,537)		 - 8,963,804

36

Keychange Charity Notes to the financial statements

17. Movements in funds continued

Purposes of transfers

Purposes of endowment funds

Reigate Fund

This fund represents the residual value of the Reigate building donated to the charity.

Alexander House

This fund represents the residual value of the original endowment of Alexander House, Wimbledon.

Erith House

This fund represents the residual value of the original endowment of Erith House, Torquay.

Transfers have been made from restricted funds to unrestricted funds in the year. These transfers are in order to represent the management charge from the parent charity to the trading subsidiary which is removed on consolidation. The transfer ensures that the restricted fund carried forward matches the individual entity reserves.

18. Linked charities

These financial statements of the company are the accounts of Keychange Charity amalgamating the following charities where uniting directions have been obtained from the Charity Commission.

Purposes of restricted funds

Stumpwell Housing Association This fund represents the reserves (aggregate of assets and liabilities) at the end of the operating period.

Reigate Fund

This money was spent on an extension to the hostel at Reigate and will be expended in line with the depreciation of the extension.

Linked charities' restricted funds

1061344-1 Alexander House as amended by special resolutions dated 29 June 1999 and 4 December 2001.

1061344-2 Cressingham House Wallasey a uniting direction made under s.96 of the charities act 1993 and dated 27 November 2006. This home was closed in may 2022.

1061344-6 Erith House indenture dated 22 October 1862, as amended by a fully regulating scheme dated 16 December 1996 and amended by a scheme dated 16 July 2009.

Further details of linked charities' funds are disclosed in notes 18 and 19.

Purposes of designated funds

In line with the Charities Statement of Recommended Practice the results and balances of the linked charities are included in these financial statements as restricted funds.

1 - Linked Charities Support - The Trustees have designated a fund in order to facilitate operational support to the linked charities. The value may change dependant on operational outcomes.

2 - Capital Reserve - The Trustees have identified functional assets (at net book value less restricted funds) employed by the Charitable Group to deliver its operational outcomes.

37

Keychange Charity Notes to the financial statements

19a Analysis of net assets between funds for linked charities (current year)

Alexander House

Erith House
Tangible fixed assets
Net current assets
Net assets at 31 March 2024
Tangible fixed assets
Net current assets
Net assets at 31 March 2024
Tangible fixed assets
Net current assets
Long term liabilities
Net assets at 31 March 2024
Cressingham House, Wallasey		 Unrestricted
£
-
-
-
Restricted
£
1,233,066
(956,335)
(377543)		 Endowment
£
20,413
-
-		 Total funds
£
1,253,479
(956,335)
(377543)
, ,
-
(100,812)		 20413 (80399)
, ,
Unrestricted
£
-
-
Restricted
£
432,467
(970911)		 Endowment
£
-
-		 Total funds
£
432,467
(970,911)
-
,
(538444)		 - (538444)
, ,
Unrestricted
£
-
-
Restricted
£
38,974
(91906)		 Endowment
£
190,135
-		 Total funds
£
229,109
(91906)
-
,
(52933)		 190135 ,
137202
, , ,
-

Going concern of linked charities with net liabilities

Alexander House

This fund represents the net assets of the Free Church Federal Council’s Alexander House. The capital and income of this fund is to be used for the upkeep and general management of Alexander House. The Trustees are satisfied with the going concern status of this linked charity based on the fact that selling the fixed assets will cover any liabilities.

Cressingham House, Wallasey

This fund represents the net liabilities of Cressingham House, Wallasey which was acquired by Keychange Charity on 27th November 2006. The assets were amalgamated with those of Keychange Charity from that date under a uniting directive.

The capital and income of this fund

is to be used for the upkeep and general management of Cressingham House. The Trustees made the decision to close Cressingham House which occurred in May 2022.

Erith House

This fund represents the net liabilities of Erith House, Torquay which was acquired by Keychange Charity on 24th July 2009. The assets were amalgamated with those of Keychange Charity from that date under a uniting directive. The capital and income of this fund is to be used for the upkeep and general management of Erith House.

38

Keychange Charity Notes to the financial statements

19b Analysis of net assets between funds for linked charities (prior year)

Alexander House
Tangible fixed assets
Net current (liabilities)
Net assets at 31 March 2023
Erith House
Tangible fixed assets
Net current (liabilities)
Net assets at 31 March 2023
Tangible fixed assets
Net current (liabilities)
Long term liabilities
Net assets at 31 March 2023
Cressingham House, Wallasey		 Unrestricted
£
-
-
-
Restricted
£
1,283,342
(760,012)
(498634)
Endowment
£
20,413
-		 Unrestricted
£
-
-
-
Restricted
£
1,283,342
(760,012)
(498634)
Endowment
£
20,413
-		 Total funds
£
1,303,755
(760,012)
(498634)
,
-		 ,
-
24696
 45109
,
20,413		 ,
Unrestricted
£
-

Restricted
£
173,001
953575
Endowment
£
-
 Total funds
£
173,001
(953575)
-
(,)

-		 ,
-
(780,574)
-		 (780,574)
Unrestricted
£
-

Restricted
£
77,477
356162
Endowment
£
190,135		 Total funds
£
267,612
(356162)
-
(,)

-
 ,
-
(278,685)
190,135		 (88,550)

39

Keychange Charity Notes to the financial statements

20. Subsidiary undertaking

The charity owns the whole of the issued ordinary share capital of Stumpwell Housing Association Limited, a charitable company registered in England. The company number is 14614011 and charity number 1205894. The registered office address is the same as the parent charity. Stumpwell Housing Association owns Alde House, a care home in Buckinghamshire, which is managed by Keychange.

During 2023/24 the legal form of Stumpwell Housing Association was changed. The old Industrial and Provident Society registration was closed with final accounts prepared for the 15 months to 31 March 2023. A new charitable company was established from 24 January 2023 with results for the 14 month period to 31 March 2024 also reported below.

The new charity's gross income and the results for the period are disclosed as follows:
Gross income
Result for the year
Funds brought forward from previous entity
Funds carried forward
Turnover
Cost of sales
Gross profit/(loss)
Administrative expenses
Profit/(loss) on ordinary activities before interest and taxation
Other operating income
Operating loss
Interest receivable and similar income
Interest payable
Profit / (loss) on ordinary activities before taxation
Taxation on profit on ordinary activities
Profit / (loss) for the financial year
Retained earnings
Total retained earnings brought forward
Profit / (loss) for the financial year
Total retained earnings carried forward
The aggregate of the assets, liabilities and reserves was:
Assets
Liabilities
Reserves		 14 months to 31
March
2024
£
895,245
(17,916)
51,192
33,276
15 months to 31
March 2023
£
272,126
(220,934)
51,192
971,083
(389,481)
581,602
(661,821)
(80,219)
4,637
(75,582)
21
(1,297)
(76,858)
-
(76,858)
128,050
(76,858)
51,192		 14 months to 31
March
2024
£
895,245
(17,916)
51,192
33,276
15 months to 31
March 2023
£
272,126
(220,934)
51,192
971,083
(389,481)
581,602
(661,821)
(80,219)
4,637
(75,582)
21
(1,297)
(76,858)
-
(76,858)
128,050
(76,858)
51,192		 14 months to 31
March
2024
£
895,245
(17,916)
51,192
33,276
15 months to 31
March 2023
£
272,126
(220,934)
51,192
971,083
(389,481)
581,602
(661,821)
(80,219)
4,637
(75,582)
21
(1,297)
(76,858)
-
(76,858)
128,050
(76,858)
51,192
33,276
128,050
(76,858)
51,192
272,126
(220,934)
51,192

40

Keychange Charity Notes to the financial statements

21 Parent charity

The parent charity's gross income and the results for the year are disclosed as follows:

Gross income
Result for the year		 2024
£
8,116,083
(575,583)
2023
£
8,119,586
(745,146)

22 Operating lease commitments payable as a lessee

The charity's does not hold any operating lease payment commitments.

23 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

41

5 St Georges Mews, 43 Westminster Bridge Rd, London, SE1 7JB keychange.org.uk Charity No: 10061344