2021-06-30-accounts

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Company number: 03422341 Charity Number: 1064470

Emmaus UK

Report and financial statements For the year ended 30 June 2021

Emmaus UK

For the year ended 30 June 2021

Reference and administrative information .................................................................................. 1 Trustees’ annual report .............................................................................................................. 2 Independent auditor’s report ................................................................................................... 27 Statement of financial activities (incorporating an income and expenditure account) ............... 31 Balance sheet ........................................................................................................................... 32 Statement of cash flows ............................................................................................................ 33 Notes to the financial statements ............................................................................................. 34

Emmaus UK

Reference and administrative information

For the year ended 30 June 2021

Company number 03422341 Country of incorporation United Kingdom Charity number 1064470 Country of registration England & Wales

Registered office and operational address Emmaus UK Unit 302 Scott House The Custard Factory Gibb Street Birmingham B9 4AA

Trustees Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows:

Susan Brooksbank-Taylor Chair Amanda Stekly Vice Chair Katrina Mattock Vice Chair Richard Paterson Treasurer Hazel Warwick John Clark Resigned 24 September 2021 Keith Jeffrey Reappointed 30 July 2020 Sara Creech Appointed 07 October 2020 Andrea Clemons Appointed 07 October 2020, resigned 24 September 2021 Geraldine Tsakirakis Reappointed 09 December 2020 Kelly Finnis Reappointed 09 December 2020 Tony Ferrier Reappointed 09 December 2020 Lucia Smith Appointed 09 December 2020 John Harrison Appointed 09 December 2020 Pauline Curl Resigned 21 September 2020 David Cooper Resigned 09 December 2020

Key Management Personnel

Simon Grainge Chief Executive Resigned 28 May 2021 Charlotte Talbott Chief Executive Appointed 6 September 2021 Clare Hunter Head of Communications and Fundraising Maternity leave 30 March 2021 Helen Brandley Acting Co-Head of Communications and Fundraising Sarah Butlin Acting Co-Head of Communications and Fundraising Duncan Gall Head of Federation Support Linda Drury Head of Business Development Sanja Kalik Head of Finance, Company Secretary

Emmaus UK

Reference and administrative information

For the year ended 30 June 2021

Bankers CAF Bank Ltd United Trust Bank Kings Hill One Ropemaker Street West Malling London Kent EC2Y 9AW ME19 4TA National Westminster Bank PLC Hampshire Trust Bank Cambridge Market St Branch 55 Bishopsgate 23 Market Street London Cambridge EC2N 3AS CB2 3PA Cambridge & Counties Aldermore Charnwood Court 1[st] Floor, Block B, Western House 5b New Walk Lynch Wood Leicester Peterborough LE1 6TE PE2 6FZ Auditor Sayer Vincent LLP Chartered Accountants and Statutory Auditor Invicta House 108-114 Golden Lane London EC1Y 0TL

Emmaus UK

Trustees’ annual report

For the year ended 30 June 2021

Chair’s introduction

This has been the full first year that I have had the pleasure of being chair of Emmaus UK. It has been a tumultuous year for the UK and the world, and through these continued unforeseen challenges, Emmaus UK continues to support federation members and try to understand and deal with the impact of the coronavirus pandemic and subsequent lockdowns.

We have all had to change our priorities overnight and have experienced the need to adapt from our usual day-to-day operations to respond to the urgency of the COVID-19 crisis. Like many of us, I have been humbled and taken inspiration from the way the Emmaus UK team stepped up to support each other as well as our communities and groups. Our companions, and the survival of our communities and groups, remain our priority. Federation members, their employees, trustees, supporters and partners came together to ensure we stayed safe, were supported and viable. We demonstrated our long history and ethos of resilience and dignity, even in times of significant challenge.

At the time the pandemic hit it was uncertain and often scary, but we stepped up to respond to the extraordinary times. Coronavirus posed a life-threatening situation to those living on the streets or in shelters and the Government was forced to change its homelessness policy, introducing the Everyone In campaign. Now, policy has reverted and we are all now considering the longer term impact of the pandemic. It will be a long recovery creating long-term challenges such as the impact on education, rising demand at food banks, increased evictions, the mental health of the nation, adjusting to life outside the EU, the scale of the challenges on public finances and the ongoing knocks to an economy rocked by lockdowns. This will be a significant time for the Emmaus movement in the UK as we try to steer a way through these issues, and consider our role in helping more people.

Emmaus supports more than 850 companions across the UK with a home for as long as it is needed, meaningful work in a social enterprise, training and support in a community setting. Throughout the pandemic, our number one priority has been helping our federation members to keep our community homes COVID-free, protecting the companions we support.

Despite the challenges they faced, Emmaus companions and staff have worked hard to do what they can to support their local community during the pandemic; using their vans to distribute food to other charities and food banks, supporting local schools with food poverty and IT equipment, donating furniture and essentials to people being rehoused during the pandemic who had little or no belongings, donating fabric to hospitals to make scrubs or making much needed PPE.

The Companion Training and Wellbeing Fund (CTF) supported 213 companions to attend work and personal training courses, take part in sports and hobbies, complete driving lessons and tests, and attend activities to improve wellbeing. An additional 50 companions were supported through nine group CTF applications: including walking clubs, running clubs, model building clubs, fishing membership, music room, and computer rooms at their communities.

Emmaus UK

Trustees’ annual report

For the year ended 30 June 2021

Emmaus UK staff have focussed their efforts on helping communities and groups to thrive. We have adapted well to new ways of working, only visiting the office when essential. Peer groups and staff meetings have all been held online and more frequently in order to ensure everyone is kept up to date with developments. A new online sales peer group has also been set up, with the support of the Rayne Foundation, to ensure communities and groups can continue to trade when their shops are closed.

Emmaus UK supporters have been extremely generous with their donations, and it has been an excellent year for fundraising. We have been overwhelmed by the generosity shown and we are grateful for this ongoing and much needed support.

Sadly, we also lost one of Emmaus’s long-standing communities, Emmaus Medway, which closed this year. This was due to their lease ending and being unable to find financially viable alternative premises in the area. All companions were supported to move on to other Emmaus communities or alternative accommodation in the local area.

Simon Grainge our Chief Executive has chosen to depart Emmaus after many years of being part of the Emmaus federation. I would like to take this opportunity to thank him for his hard work and dedication over the years.

This year marks the anniversary of 30 years of Emmaus in the UK, and although our celebrations have been somewhat muted due to the pandemic, we have begun to pull together 30 extraordinary stories from around the federation which focus on where Emmaus has really made a difference at a critical point in people’s lives. Reading the stories makes me very proud to be part of the movement here in the UK, and I look forward to sharing them with you soon.

The last twelve months has taught us the importance of being resilient, and while we have overcome many challenges, we fear there may be more to come. For this reason, we continue to set aside a £500k emergency fund for members to access should they need it. Whatever happens in the future we need to make sure we are in a strong position to manage. With the continued support of our donors and supporters, we’re confident that we will be able to help even more people to find a route out of homelessness.

Our new Chief Executive, Charlotte Talbott, started in September. Charlotte was Deputy Chief Executive of The Connection at St- Martin’s-in-the-Fields in London. Charlotte brings with her a wealth of experience working in the charity sector. Her career has been focussed on drug and alcohol recovery, homelessness and criminal justice.

When Charlotte started and in light of the changing environment post-pandemic, we are taking time to thoroughly examine what we do as a federation; ensuring we continue to meet the needs of those we support in the most effective way and making exciting plans for the future. Using the headings of our new strategic plan, our priorities will be to help more people, work smarter and shout louder.

Emmaus UK

Trustees’ annual report

For the year ended 30 June 2021

The future remains precarious, and the challenges should not be underestimated. The country faces the most significant strategic issues that it has been presented with in several generations and tackling these will take years of work. We don’t yet know how this will impact Emmaus and how we support, grow and work together in the future. Emmaus UK will continue to strive to support communities and groups so they become more resilient, self-sustainable and environmentally friendly. Emmaus is used to finding ways to support people with a home and reason to get out of bed, making a difference to lives and tackling injustice. We are a strong movement based on core values and principles and along with our committed supporters we can achieve more and help more people

Thank you for your continued support. I look forward to working with our communities and groups, companions and supporters in building back better, with strong recovery plans and finding more opportunities in the year ahead.

Susan Brooksbank-Taylor Chair of Trustees

Emmaus UK

Trustees’ annual report

For the year ended 30 June 2021

The trustees, who are also directors of Emmaus UK (The Charity) for the purposes of the Companies Act, submit their annual report and financial statements of the Charity for the year ended 30 June 2021.

The Trustees confirm that the annual report and financial statements of the charity comply with current statutory requirements, the requirements of the Charity’s governing document, the requirements of the directors’ report as required under company law, and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Objectives and activities

Purposes and aims

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

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

About Emmaus

Emmaus is a homelessness charity with a difference. We do not just give people a bed for the night; we offer a home, meaningful work and a sense of belonging.

For many people who have experienced homelessness, losing their self-esteem can be the most damaging part of their experience. Being on your own, with no support around you can be soul destroying, leaving you feeling worthless.

Emmaus is different because it provides a home for as long as someone needs it, in an Emmaus community. This gives companions, as we call our residents, the opportunity to take stock of their lives, deal with any issues they might have, and often re-establish relationships with loved ones.

About Emmaus UK – Aims and activities

Emmaus UK is the federal body for Emmaus in the UK. Each member of Emmaus UK - either a community or group - is an independent charity, governed by a local board of trustees.

Ultimately each Emmaus community aims to become self-funding through social enterprise. Emmaus UK supports its member organisations as they work towards this goal, sharing best practice, coordinating federation-wide meetings and providing direct capacity building and support in areas such as

Emmaus UK

Trustees’ annual report

For the year ended 30 June 2021

governance, business development and companion support. The charity also offers fundraising and publicity support and provides grants and loans to enable further development of existing Emmaus communities and groups, and the expansion of Emmaus in the UK.

Emmaus UK offers a range of different funds to support communities and groups:

Companion Room Expansion Grant Fund – used to increase the number of companion rooms Emmaus communities are able to offer in the UK
Capacity Development Grant Fund – used to build the capacity of communities and groups and strengthen them
Community and Enterprise Investment Loan Fund – offers loans from Emmaus UK and external funders to help communities grow and develop
Companion Training Fund – provides grants to companions for training, personal development or the equipment needed to take part in these opportunities. Individual or group funds are available
COVID Emergency Fund – a ringfenced fund of £500,000 to support communities facing significant financial difficulties as a result of COVID – 19. The Government job retention scheme, support with non-domestic rates and trust and foundation income helped Emmaus communities. The Board will review the COVID Emergency fund in light with ending the furlough scheme and the impact of the pandemic during the winter 2021.
Building Alternative Social Enterprises (BASE) – grants to pilot alternative social enterprises that can then, if successful be replicated throughout the federation

Emmaus UK is also responsible for co-ordinating and measuring development towards achieving the goals set out in the federation strategic plan and is formally recognised as the national organisation representing Emmaus International in the UK.

In 2019-2020 a new strategic plan for 2020-2025 was developed in consultation with the federation. The plan was due to be launched at the postponed Annual Assembly in March 2020. However due to the pandemic this was delayed. Since then, the plan has been revisited to ensure it remains relevant for Emmaus movement despite the changing external environment. On 24[th] September 2021 The Board approved the new programme Engage, Review and Transform to address four issues identified: the pandemic, the appointment of a new Chief Executive at EUK, the work of the Task and Finish Group on Universal Credit and the Strategic Plan.

Strategic Plan

The Emmaus strategic plan 2020-2025 has been developed with input from across the federation, it is written in an easy-to-understand format, without business jargon, and reflects a return to Emmaus’s original founding values, to be more in line with those used by Emmaus International.

Emmaus UK

Trustees’ annual report

For the year ended 30 June 2021

Why do we exist?

We exist to give hope and a sense of belonging to those who have experienced homelessness or social exclusion

How do we make a difference?

We create communities and opportunities to develop

Our values

Sharing
Welcoming
Respect
Openness
Solidarity

What we do

We help people

We provide a safe home and community for as long as people need it
We support people to achieve their aspirations
We help others through acts of solidarity

We work

We engage people in meaningful activities through a range of social enterprises
We help the environment and recycle and repurpose donations

We use our voice

To promote who we are, what we do and how we do it

We are part of an international movement and our members and trustees are actively involved.

Our strategic plan 2020-2025

The strategic plan (2020-2025) outlines three strategic priority areas.

1. We will help more people by

Delivering a wider range of social activities to address social exclusion
Creating more homes

Emmaus UK

Trustees’ annual report

For the year ended 30 June 2021

Developing a range of employment and move-on housing options

2. We will work smarter by

Improving our processes and making better use of technology
Developing and growing our social enterprises
Actively seeking opportunities to improve our environmental impact

3. We will shout louder about

What we do and how we make a difference

Achievements and performance

Emmaus UK’s activities are described below. As a support organisation, all charitable activities focus on providing support and advice to members of the federation and are undertaken to further Emmaus UK’s charitable purposes for public benefit. Due to the COVID-19 pandemic Emmaus UK has focused its efforts on overcoming the challenges faced to ensure the stability of the federation. We have adapted to new ways of working, making the most of virtual opportunities to host peer meetings and providing advice and support to members.

Emmaus UK provides expert support to Emmaus communities and groups who work with people who have experienced homelessness and social isolation, known within Emmaus as companions. Companions are provided a home for as long as it is needed, meaningful work within social enterprises, support and training opportunities to help them work towards a brighter future. The social enterprises in turn help support members of the wider community, by offering low-cost furniture and goods and, in some areas, food to those on low incomes. Acts of solidarity from companions also help the wider community, through fundraising and volunteering for local, national and international charities.

In addition to this, Emmaus UK runs a national referral gateway which enables easier access for potential companions to communities.

In order to deliver the federation’s strategic plan priorities, Emmaus UK has been working with its members to provide support and offer a range of federation-wide activities, such as an IT service, a regional communications service, fundraising support, training planning, staff training and development, improving governance, health and safety and business support and development.

The following sets out the achievements of Emmaus UK, the charity, and how they have supported members of the Emmaus federation in the UK.

We will help more people

213 companions have received individual support for training and development. A further 50 companions have taken part in group training. Total training funding from the Companion Training Fund was £66,478

Emmaus UK

Trustees’ annual report

For the year ended 30 June 2021

Development support to two new groups aspiring to become part of the Emmaus federation
Emmaus Lambeth have received £34,000 from the Companion Room Expansion Grant to develop three new rooms
177 people were accommodated in Emmaus communities through the national referral service
The Capacity Development Fund awarded 18 applications from communities the total amount of £224,007, to help increase their capacity and an additional £117,555 in to meet demands for Rayne Foundation grants.

We will work smarter

We have provided COVID-19 recovery support to members – including shop reopening info and guides, how to access retail grants information and guidance, sourced Personal Protective Equipment (PPE) from corporate partners and provided funds to purchase PPE at local level, and represented the federation at Charity Retail Association
Created resources for online trading to help bring in income when social enterprise are closed
Delivered external eBay training to 16 members
Although no retail reviews were performed in person this year due to the pandemic, the process has been redeveloped to ensure it is reflective of the different ways in which members trade
Business development support was given to 14 communities including recruitment support, and project planning
Business planning support was delivered to three communities
More than 2/3 of communities are now on Charity log system
Four members received BASE grants for new alternative social enterprise ideas that can be scaled up across the federation, totalling £ £29,409
1965 iHASCO e-learning courses, organised and funded by Emmaus UK, were completed by 556 learners (staff, volunteers, trustees, and companions from across the federation) to improve skills across a range of subjects including health and safety, HR and compliance
15 Bespoke training courses were delivered, including professional boundaries, safeguarding for staff and trustees, board effectiveness and essential trustee skills, presentation skills, and facilitation skills
Intensive mentoring on companion support to three communities including one full support review and general companion support to 12 others
Monthly policy updates and more frequent COVID-19 updates and resources
Attendance of the APPG (All Party Parliamentary Group) for Ending Homelessness and Homeless Link Policy Forum
Procurement and roll out of Health and Safety support service to 25 members

Emmaus UK

Trustees’ annual report

For the year ended 30 June 2021

Supported existing peer groups, Business managers, Chairs, Exec Leads and companions and developed three new groups; online sales peer group, finance peer group and a peer group for emerging groups aiming to become communities
Emmaus UK secured £250,000 of funding from the Rayne Foundation to help support communities during COVID-19 pandemic. This funding was topped up by an additional £117,455 from the Capacity Development Fund to support a total of 13 communities, including creation of seven new posts

We will shout louder about

Emmaus UK offered half a day of the dedicated Regional Communications (RCO) Service to each of the members free of charge.
10 communities paid for additional time over and above this to promote their community or group locally
29 members in total benefitted from the RCO service and four additional staff were recruited to meet the increased demand
The RCO service generated 730 pieces of regional news coverage
62 pieces of national coverage achieved, including Countryfile, BBC Morning Live, BBC Radio 4, and the Big Issue
Engagement plans for each of the main social media platforms (Facebook, Instagram, Twitter and LinkedIn) were developed to ensure content was relevant and interesting to the different audiences.
Continued website development to maximize visitors and income donated online (62% increase of unique users and 53% increase in views)
Reviewed and redeveloped email communications to supporters, personalising content and making the content more interesting and visually appealing
Supported companions to develop a peer-led newsletter – Companion Voice

Emmaus in the UK (consolidated information Emmaus members in the UK)

Emmaus UK only exists to support communities and groups across the UK, helping them to strengthen their social enterprises and ensure they are in the best possible position to support companions when they need it most. We also keep track of member’s achievements.

Despite this bad news there have been plenty of highlights this year, here are a few of them:

Emmaus offers 859 accommodation places to companions across 28 communities
• Emmaus Suffolk opened its first accommodation for tenants who have previously experienced homelessness
Emmaus Colchester opened seven new ensuite rooms for move-on companions
Emmaus Norfolk and Waveney has opened 10 new rooms

Emmaus UK

Trustees’ annual report

For the year ended 30 June 2021

Fundraising income

Direct Marketing continues to be the largest source of income to Emmaus UK, thanks to the generosity of individual donors. Overall fundraised income £2,660,358 in 2020/2021 (£2,153,934 2019/2020)

The coming year

The unstable economic situation and ongoing pandemic mean Emmaus is likely to face more challenges in the upcoming year. It is anticipated that the full economic impact of the pandemic has not yet hit our generous supporters. We will continue to support the federation and respond to the increasing demand and changing needs of people who have experienced homelessness and social isolation in the UK.

Our new Chief Executive started in September and we use the opportunity to reflect on the work we do and ensure our priorities and plans are still the most effective and appropriate way to meet the needs of those we support, and to ensure our long-term survival as a federation.

Financial Review

The total income for the year was £3,142,757 (£2,592,228 2019/2020), restricted income was £538,059, (£498,763 2019/2020). Of this £378,312 (£468,763 2019/2020) was donations and grants fundraised for communities and groups and passed directly to them, with support from the general fundraising. The principal funding sources for the year were donations from direct marketing, legacies, grants from trusts and foundations and funds raised through corporate partnerships.

Full details concerning the cost of charitable activities are shown in Note 5a to the accounts. The total cost of charitable activities has increased by £333,908 to £2,257,472 in 2020/2021 from £1,923,564 in 2019/2020. This is primarily due to an increased amount of financial support paid to communities and groups (Rayne Foundation and Capacity Development Fund grants).

Total charity expenditure increased to £2,772,931 2020/2021 (from £2,401,382 in 2019/2020) The primary factors behind this include increased support to communities and groups from the Capacity Development Fund and co funding communities with Rayne Foundation donation which Emmaus administers, increased spending on IT support, a federation-wide Health & Safety contract, increased training and HR costs for the federation, end of our office lease, a move to monthly payments and the recruitment costs for the new Chief Executive.

The Community & Enterprise Investment Loan Fund (see Note 13) received loan repayments from members of £50,685 (£30,050 2019/2020).

Grants totalling £341,562 (£71,754 2019/2020) and an additional £250,000 from the Rayne Foundation, administrated by Emmaus UK, were paid out of the Capacity Development Grant fund with an additional £34,000 (£190,000 2019/2020) paid from the Companion Room Expansion grant in order to fund an increase in the number of available rooms in the UK. £29,409 (£15,000 2019/2020) was also granted to

Emmaus UK

Trustees’ annual report

For the year ended 30 June 2021

communities through the Building Alternative Social Enterprise (BASE) fund to help pilot new social enterprise ideas.

Emmaus UK also works directly with members of the federation to raise funds, which are paid directly and are therefore not reflected in these financial statements. The costs of this activity are included in the fundraising and publicity resources as detailed in note 6a Emmaus UK offers a range of other free services to support the members of the federation, these include marketing, HR advice and support, communications and PR, events management, and business development.

Principal risks and uncertainties

Risk management

Risk management is taken very seriously by the Trustees at Emmaus, identifying risk is a standing item on both the Resources Committee and Operations Committee agendas. The trustees have a formal risk management policy in place and strategic and operational risk registers to assess risks and implement risk mitigation strategies. These identify the type of risks faced by the charity, prioritises them in terms of likelihood of occurrence and potential impact, and identifies the means of mitigating those risks. The registers are regularly updated, with systems being amended as appropriate.

The top 10 key strategic risks currently identified in the charity’s strategic risk register, are:

Risk	Control Measures
Failure to effectively monitor and respond to changes in the external environment	Regular monitoring of external environment including legislation and policy Links to appropriate networks Brexit advice circulated to members COVID-19 briefings monitored and disseminated to members Cyber security advice circulated to members and opportunities for training provided
A significant event at community or group has an adverse effect on the public perception of the federation	Communications strategy Supportive interventions process Monitoring and liaison between lead staff and chairs

Emmaus UK

Trustees’ annual report

For the year ended 30 June 2021

Risk	Control Measures
	Regular reports to Operations Committee on members presenting risks Legacy fund for capacity building MIR data collection and analysis Effective community risk management
Communities taking Universal Credit in the short term may create problems in the long term	Briefing note prepared for members setting out pros and cons Board statement issued Task & finishgroupset upto advise board
Failure of communities & groups to repay	Robust due diligence checks before approval is granted by the investment committee.
	Security/charge taken on loan where appropriate.
	Quarterly monitoring of recipient’s financial performance, cash position and risk attached to repayments.
	Liaison with Head of Federation Support to act on any issues surrounding repayments
loans from the Emmaus Fund (EUK balance sheet) and/or meet interest aments	Legacyfund created to build capacity
py	Monitoring of external environment & assessing impact
	Business Development Team working closely with members
	Freeze on capital repayments and interest during period of COVID-19 crisis
	Emergency Fund created to support members in difficulty
Failure of communities and groups to repay loans from 3rdparties via the Emmaus Fund (and/or meet interest payments)	Robust due diligence checks before approval is granted by the investment committee

Emmaus UK

Trustees’ annual report

For the year ended 30 June 2021

Risk	Control Measures
	Framework agreements with 3rdparty loan providers ensure that Emmaus UK is not liable for capital repayments to 3rdparties Quarterly monitoring of recipient’s financial performance, cash position and risk attached to repayments. Liaison with Head of Federation Support to act on any issues surrounding repayments Business Development Team working closely with members Freeze on capital repayments and interest during COVID- 19 crisis
The federation loses confidence in Emmaus UK through failure to deliver services or represent the federation effectively	Federation wide strategic plan in place Robust federal governance structure Implementation plan in place Regular communications with members Peer group meetings Revised MoU agreed by members at 2018 AGM Monthly Chairs and Executive Leadership peer group conferences Regular briefings on COVID-19 matters
Reputational risk to Emmaus UK caused by failure of any of its members	Head of Communications & Fundraising regularly updated on significant events Head of Federation Support regularly monitors federation issues Regular communications with members Reviews conducted following incidents to understand and share lessons learned

Emmaus UK

Trustees’ annual report

For the year ended 30 June 2021

Risk	Control Measures
	COVID-19 situation regularly monitored
Failure to raise sufficient funding through traditional and social investment routes to deliver the strategic plan, meet members’ requests, fund new social enterprises, support communities and groups and meet the federation office costs	Written fundraising strategy Agreement by the resources committee on the fundraising protocols Effective management of donor base Strong relations with funding trusts and foundations Membership subscriptions Effective management of donated funds Regular audit
Reputational risk due to a lack of diversity and inclusion	Unconscious bias training delivered to staff and trustees Equality & Diversity working group set up Diversity& Inclusionpolicyinplace
	Annual returns to regulatory bodies. Effective health and safety policies
	Regular health and safetytraining
	Chief executive’s report to board
	Suite of organisationalpolicies
Failure to ensure Emmaus UK is compliant with current and future legislative and	Standing orders and financial regulations
regulatory requirements	Annual audit
	Review ofgift aidprocedures
	Annual review of risk register
	Charity Commission has relaxed some requirements due to pandemic

Emmaus UK

Trustees’ annual report

For the year ended 30 June 2021

Reserves policy and going concern

The present level of funding is adequate to support the charity’s activities, and the trustees consider the financial position of the charity to be satisfactory based on the budgeted projection, cash flow forecast, analyses of current movement needs and donor’s expectation. The fundraising strategy is adopted and regularly reviewed in line with the strategic plan. There are no concerns about the charity’s abilities to continue as explained below, and there is no deficit.

The trustees consider that three months operating cost should be held in unrestricted reserves (based on future budget spend this equates to approximately £425,000). Unrestricted general funds at 30 June 2021 were £329,519 (£424,179 2019/2020). The Board set up the group of trustees to review financial performance and the regular reviews at the Board and committee meetings. The group include the treasurer, the chair of the Resources Committee, trustees and senior management. The group has agreed that solid performance by the fundraising team, cash flow and level of working capital is adequate to manage short and medium risk. More information on the funds is provided in Note18a.

The charity raises funds to cover its own costs and those of the Community and Enterprise Investment Loan Fund (formerly Emmaus Fund) as well as funds in direct support of members of the federation. On 30 June 2021 the Emmaus Fund stood at £1,093,385 (£1,010,105 2019/2020) of which £422,070 (£696,198 2019/2020) is on loan to communities. The remainder is available for allocation in the form of financial support to members, subject to receipt of qualifying applications. The Capacity Development Grant fund, created specifically to increase capacity in communities and groups, ended the year at £389,954 (£731,517 2019/2020) Emmaus UK continue to hold £500,000 as designated fund as emergency fund available for communities and groups dealing with COVID-19 related financial challenges after the end of the furlough scheme. This fund will be reviewed at the end of 2021.

Investments policy and returns

Under the Articles of Association, the charity has the power to make any investment which the trustees see fit. The trustees have considered the most appropriate policy for investing funds and have found that savings and deposit accounts meet their requirements that the investments are secure and at the competitive market rates. The trustees consider the return on investments achieved during the year to be satisfactory in the current economic climate and the chosen banks have a good reputation and rating.

The Investment committee is responsible for the governance of the major loan and grant making funds held by Emmaus UK, ensuring that the decision making around the distribution of funds and subsequent monitoring is appropriately independent, consistent and transparent. This committee is also responsible for the governance of loans made by Emmaus UK’s social investment partners, providing independent due diligence and monitoring on their behalf.

The Community & Enterprise Investment Loan fund is established to support Emmaus communities and groups to grow, implement change or survive. Guidance by the Investment Committee has made it clear that communities with a clear focus on reaching financial sustainability will be prioritised.

Emmaus UK

Trustees’ annual report

For the year ended 30 June 2021

In April 2020 the board agreed to defer all capital repayments for all communities with outstanding loans until December 2020. This was reviewed again in June 2021 and will continue until December 2021. The board also agreed that communities with outstanding Emmaus UK loans are given an interest free period until December 2021.

Emmaus UK grant funds:

Companion Room Expansion grants, used to increase accommodation spaces
Capacity Development Grant, used to expand business opportunities in order to increase financial sustainability
Emergency Fund

These grants are awarded and monitored (costs and progress) on a continual basis by the Investment Committee.

In addition to these the smaller grant funds:

Companion Training Fund (CTF) grants, paid for companions to access training and necessary tools to move on or access training
Building Alternative Social Enterprise (BASE) to pilot different social enterprise ideas. Grants are monitored at SMT level.

Public benefit

The trustees confirm that they have complied with the duty in section 4 of the Charities Act 2006 to have due regard to the Charity Commission’s general guidance on public benefit, ‘Charities and Public Benefit’. All trustees give their time voluntarily and receive no financial benefit from the charity. Any expenses reclaimed from the charity are set out in note 8 to the financial statements.

Trustees and individual liability insurance covers up to £500,000 of liability.

Fundraising

The majority of Emmaus UK’s fundraising income is generated via individual giving. Emmaus UK primarily uses media inserts and direct mail to recruit and maintain a database of individual donors, as well as generating income from sponsored challenge events, regular giving (via direct debits and standing orders) and from gifts left as legacies.

The fundraising team also uses corporate fundraising to maximise income, non-financial support from corporates for Emmaus UK and federation members, and trust fundraising to generate income from trust and foundation applications.

Third parties, including copywriters and commercial printers, are used to produce and distribute materials by the most efficient and cost-effective means. Any third parties working with Emmaus UK on its fundraising activities are subject to due diligence before they begin delivering work. This includes ensuring data protection controls are in place, seeking references and conducting tender processes.

Emmaus UK

Trustees’ annual report

For the year ended 30 June 2021

Emmaus UK is registered with the Fundraising Regulator and adheres to the Code of Fundraising Practice which the regulator maintains. Emmaus UK also maintains and publishes an Ethical Fundraising Policy which sets out the approach to transparent and honest fundraising practice, including how donors are contacted, how donor data is protected, how vulnerable people are protected and how to feed back or make a complaint. Alongside the Ethical Fundraising Policy, the Vulnerable Persons Policy also details the approach to protecting vulnerable people within Emmaus UK’s fundraising activities.

Emmaus UK received no fundraising-related complaints for year ending 30[th] June 2021.

Structure, governance and management

The organisation is a charitable company limited by guarantee, incorporated on 20 August 1997 and registered as a charity on 18 September 1997.

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

The charity is a company limited by guarantee and a registered charity in England and Wales. Its governing documents are its Articles of Association, Rules and Byelaws. The board and Emmaus UK act as a focus for members of the federation to enable them to work together in pursuit of the movement’s stated aims and objectives, whilst at the same time functioning as independent, self-supporting and sustaining communities.

The charity’s principal objectives, as set out in its Articles of Association, are the alleviation and relief of poverty, hardship and distress for those in need, without distinction, by:

Laying down and promoting the principles of the movement, both in the UK and world-wide, furthering its growth within the terms of these objectives by acting as a national federal body for all the charity’s members.
Preserving, defending and enhancing the Emmaus name for the good of the movement.
Acting as a central coordinating body for the exchange of views, information and publicity with the aim of promoting unity within the movement.
Being the UK-wide voice and representative of the movement.
Educating the public in the needs of poor and marginalised people through whatever means of publicity or education the charity deems fit.
Developing communities and other initiatives either directly or through supporting the work of members of the charity or other organisations within the movement.
Providing or assisting in providing accommodation and work for poor and homeless people at locations in the UK as may seem appropriate from time to time.
Providing and encouraging appropriate training and development throughout the movement.
Encouraging good practice on the part of federation members, and other organisations or agencies working or involved in communities, and publishing codes of recommended practice, guidance manuals and other educational and training material.

Emmaus UK

Trustees’ annual report

For the year ended 30 June 2021

Acting as a channel of communication and co-operation with Emmaus International.
Supporting the work of other agencies in the relief of poverty and homelessness whether in the UK or elsewhere in the world; in particular (but without limitation) by the exchange of resources, information and expertise with other Emmaus groups world-wide.

The charity supports the federation, the full members of which elect its Board of Trustees. The board may co-opt up to four additional trustees. A majority of the charity's elected trustees must be trustees or employees of full members and, prior to the AGM, all members are invited to make nominations for new trustees. When choosing trustees for co-option, the board considers the need for any specialist skills. New trustees are provided with an induction pack, the contents of which include the governing documents, the current federation and Emmaus UK plans, recent financial information and a number of relevant policies. They are also invited to attend an induction day where they are briefed on their obligations under company and charity law as well as the activities of Emmaus UK. Those who have not already done so are encouraged to visit a number of members of the federation - both communities and groups. Ongoing training is given to trustees in line with the requirements of the Charities SORP.

The trustees are responsible for providing direction, strategy and governance to the charity. Responsibility for the implementation of this guidance is delegated to the Chief Executive. Four committees help to increase the board's effectiveness.

Appointment of trustees

The board has, and regularly considers, the mix of skills, knowledge and experience it needs to govern, lead and deliver the charity’s purposes effectively. It reflects this mix in its trustee appointments, balancing the need for continuity with the need to refresh the board. The constitution allows for regular refreshing of the board but also enables the board to retain needed skills. There is a formal, rigorous and transparent procedure to appoint new trustees to the board, which includes advertising vacancies widely. Trustees are appointed for a fixed three year term and may serve no more than nine years in total.

Membership of board and committees (on 30 June 2021)

Emmaus UK Board

The Board of Trustees governs Emmaus UK and is the ambassador for the federation and its members, safeguarding and promoting, both internally and externally, the values, and strategic aims of Emmaus in the UK.

Chair: Susan Brooksbank-Taylor - Emmaus Coventry & Warwickshire Vice-Chairs: Amanda Stekly – Emmaus Norfolk & Waveney Katrina Mattock - Independent Treasurer: Richard Paterson - Independent

Emmaus UK

Trustees’ annual report

For the year ended 30 June 2021

Trustees:

Andrea Clemons – Independent Geraldine Tsakirakis – Emmaus Coventry & Warwickshire Hazel Warwick – Emmaus Hampshire John Clark – Emmaus Greenwich John Harrison – Emmaus North East Lucia Smith – Emmaus Village Carlton Keith Jeffrey – Independent Kelly Finnis – Emmaus Hull & East Riding Sara Creech - Independent Tony Ferrier – Emmaus Glasgow

Operations Committee

The role of the Operations Committee is to oversee and review the work of the federation of Emmaus communities and groups in the UK, on behalf of the Emmaus UK Board, in order to ensure that its members demonstrate strength, quality, operate in line with good practice and are working together to achieve the federation’s strategic objectives.

Chair: Katrina Mattock - Independent/Emmaus UK Vice Chair Members: Andrea Clemons – Independent/Emmaus UK trustee Frances Hirst – Independent John Harrison – Emmaus North East Kelly Finnis – Emmaus Hull & East Riding/Emmaus UK Trustee Rachael Burton – Emmaus Lambeth Steve James – Emmaus Oxford Tony Ferrier – Emmaus Glasgow/Emmaus UK Trustee Ex-Officio: Susan Brooksbank-Taylor - Emmaus Coventry & Warwickshire/Emmaus UK Chair Secretary: Duncan Gall - Emmaus UK Head of Federation Support

Investment Committee

The role of the Investment Committee is to govern the Emmaus funds and to ensure that decisionmaking around the distribution of funds and subsequent monitoring is appropriately independent, consistent and transparent.

Chair: Keith Tolladay – Independent Vice-Chair: David Cooper – Emmaus Hastings & Rother Members: Geraldine Tsakirakis – Emmaus Coventry & Warwickshire/Emmaus UK Trustee Hazel Warwick – Emmaus Hampshire/Emmaus UK Trustee Joe Feeley – Emmaus Gloucestershire John Bromley – Independent John Webbe – Emmaus North Staffs

Emmaus UK

Trustees’ annual report

For the year ended 30 June 2021

Keith Jeffrey – Independent/Emmaus UK Trustee Lucia Smith – Emmaus Village Carlton/Emmaus UK Trustee Samantha Tubb – Independent

Ex-Officio: Susan Brooksbank-Taylor - Emmaus Coventry & Warwickshire/Emmaus UK Chair Katrina Mattock – Emmaus Leeds/Emmaus UK

Secretary: Linda Drury - Emmaus UK Head of Business Development

Resources Committee

The Resources Committee exists to manage and oversee the financial and human resources of Emmaus UK, the charity, on behalf of the Emmaus UK Board of Trustees. Within this remit it ensures that the charity: adopts appropriate and effective human resource policies in the employment of its staff; effectively manages and monitors its financial resources and adopts appropriate strategies in relation to fundraising and finance; and has the capacity to deliver the annual office plan that delivers the federation strategic plan. It also recommends to the board the annual budgets (including the staff and remuneration budgets) and reviews the annual objectives and performance of the Chief executive

Chair: Amanda Stekly – Emmaus Norfolk & Waveney/Emmaus UK Vice Chair Vice Chair: Sara Creech – Independent/Emmaus UK Trustee Members:

Katrina Mattock – Independent/Emmaus UK Vice Chair John Clark – Emmaus Greenwich/Emmaus UK Trustee Richard Paterson - Independent/Emmaus UK Trustee Susan Brooksbank-Taylor – Emmaus Coventry & Warwickshire/Emmaus UK Chair Secretary: Helen Brandley, Acting Head of Communications & Fundraising

Audit, Risk and Governance Committee

The main role of the Audit, Risk and Governance Committee is to ensure that the charity adopts appropriate and effective frameworks for robust internal control, audit and risk management, as well as maintaining high levels of good governance and scrutinising performance in these key areas.

Chair: Frank McMahon – Independent Vice-Chair: John Clark – Emmaus Greenwich/Emmaus UK Trustee Members: Anna McKain – Independent Graham Haynes – Emmaus Cambridge Keith Jeffrey – Independent/Emmaus UK Trustee Ex-Officio: Susan Brooksbank-Taylor – Emmaus Coventry & Warwickshire/Emmaus UK Chair Secretary: Sanja Kalik – Emmaus UK Head of Finance

Emmaus UK

Trustees’ annual report

For the year ended 30 June 2021

Related parties and relationships with other organisations

As listed above and as stated in articles many Emmaus UK’s trustees are also members of staff or trustees of Emmaus communities or groups. There are no additional relationships between the charity and related parties including its subsidiary undertakings, and with any other charities and organisations with which it cooperates in the pursuit of its charitable objectives. Emmaus UK administers loans on behalf of The Rayne foundation to Emmaus communities or groups. Emmaus UK bears no liability for repayment of principal. This rests with the loan recipient.

Funds held as a custodian trustee on behalf of others

Emmaus UK did not act as a custodian trustee during this accounting period

Statement of responsibilities of the trustees

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

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

Select suitable accounting policies and then apply them consistently
Observe the methods and principles in the Charities SORP
Make judgements and estimates that are reasonable and prudent
State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements
Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation

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

In so far as the trustees are aware:

There is no relevant audit information of which the charitable company’s auditor is unaware
The trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information

Emmaus UK

Trustees’ annual report

For the year ended 30 June 2021

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

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 30 June 2021 was 14 (2020:11). The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Auditor

Sayer Vincent LLP was re-appointed as the charitable company's auditor during the year and has expressed its willingness to continue in that capacity.

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

The trustees’ annual report has been approved by the trustees on 8 December 2021 and signed on their behalf by

Amanda Stekly Vice Chair of Trustees

Independent auditor’s report

To the members of

Emmaus UK

Opinion

We have audited the financial statements of Emmaus UK (the ‘charitable company’) for the year ended 30 June 2021 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Give a true and fair view of the state of the charitable company’s affairs as at 30 June 2021 and of its incoming resources and application of resources, including its income and expenditure for the year then ended
Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice
Have been prepared in accordance with the requirements of the Companies Act 2006

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other Information

The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information

Independent auditor’s report

To the members of

Emmaus UK

and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

The information given in the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The trustees’ annual report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
The financial statements are not in agreement with the accounting records and returns; or
Certain disclosures of trustees’ remuneration specified by law are not made; or
We have not received all the information and explanations we require for our audit; or
The directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ annual report and from the requirement to prepare a strategic report.

Responsibilities of trustees

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

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

Independent auditor’s report

To the members of

Emmaus UK

Auditor’s responsibilities for the audit of the financial statements

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

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

Capability of the audit in detecting irregularities

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

We enquired of management and the audit, risk and governance committee, which included obtaining and reviewing supporting documentation, concerning the charity’s policies and procedures relating to:
Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;
Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud;
The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
We inspected the minutes of meetings of those charged with governance.
We obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the charity from our professional and sector experience.
We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit.
We reviewed any reports made to regulators.
We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations.
We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.

Independent auditor’s report

To the members of

Emmaus UK

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

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

Use of our report

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

Fleur Holden (Senior statutory auditor) 17 December 2021

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

Emmaus UK

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

For the year ended 30 June 2021

	Restricted £ 378,312 159,747 - -	2021 Total £ 2,660,358 416,248 35,131 31,021	Unrestricted and Designated £ 1,685,171 347,920 50,614 9,760	Restricted £ 468,763 30,000 - -	2020 Total £ 2,153,934 377,920 50,614 9,760
2,604,698	538,059	3,142,757	2,093,464	498,763	2,592,228
515,459 1,687,630	- 569,842	515,459 2,257,472	477,818 1,372,933	- 550,631	477,818 1,923,564
2,203,089	569,842	2,772,931	1,850,751	550,631	2,401,382
401,609 (16,858)	(31,782) 16,858	369,826 -	242,713 -	(51,868) -	190,846 -
384,751 3,256,201	(14,924) 24,578	369,826 3,280,779	242,713 3,013,486	(51,868) 76,447	190,846 3,089,933

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 18a to the financial statements.

Emmaus UK

Company no. 03422341

Balance sheet

As at 30 June 2021

£ 120,834 3,389,391 233,817	2021 £ 9,556 422,070	£ 113,896 2,816,305 222,176	2020 £ 8,300 696,198
	431,626 3,218,979		704,498 2,576,281
3,744,041 (525,063)		3,152,377 (576,096)
3,311,433 329,519		2,832,022 424,179
	3,650,605		3,280,779
	9,653 3,640,952		24,578 3,256,201

	3,650,605		3,280,779

Approved by the trustees on 8 December 2021 and signed on their behalf by

Amanda Stekly Vice Chair of Trustees, Emmaus UK

Emmaus UK

Statement of cash flows

For the year ended 30 June 2021

£ £ 369,826 223,444 (35,131) 6,724 (6,938) (51,033) 506,891 (7,980) 35,131 27,151 50,685 50,685 584,726 3,038,481 3,623,207 At 1 July 2020 £ 2,816,305 222,176 3,038,481 2021	£ £ 369,826 223,444 (35,131) 6,724 (6,938) (51,033) 506,891 (7,980) 35,131 27,151 50,685 50,685 584,726 3,038,481 3,623,207 At 1 July 2020 £ 2,816,305 222,176 3,038,481 2021	£ £ 190,846 - (50,614) 6,606 (1,419) (309,492) (164,072) (3,621) 50,614 46,993 30,050 30,050 (87,030) 3,125,511 3,038,481 Cash flows At 30 June 2021 £ £ 573,086 3,389,391 11,641 233,817 584,726 3,623,207 2020	£ £ 190,846 - (50,614) 6,606 (1,419) (309,492) (164,072) (3,621) 50,614 46,993 30,050 30,050 (87,030) 3,125,511 3,038,481 Cash flows At 30 June 2021 £ £ 573,086 3,389,391 11,641 233,817 584,726 3,623,207 2020
	506,891 27,151 50,685		(164,072) 46,993 30,050
50,685		30,050
		Cash flows £ 573,086 11,641
	584,726 3,038,481		(87,030) 3,125,511
	3,623,207		3,038,481
	At 1 July 2020 £ 2,816,305 222,176		At 30 June 2021 £ 3,389,391 233,817
	3,038,481	584,726	3,623,207

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2021

1 Accounting policies

a) Statutory information

Emmaus UK is a charitable company limited by guarantee and is incorporated in England and Wales. The registered office address (and principal place of business) is Unit 302 Scott House, The Custard Factory, Gibb Street, Birmingham, B9 4AA.

b) Basis of preparation

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

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

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.

The accounts are prepared as full values however are presented to the nearest £1. This may cause small discrepancies in the financial statements.

c) Public benefit entity

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

d) Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. This is discussed in the trustees' annual report.

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.

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.

Income from 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.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

Solidarity grant income is the repayment of grants given to groups and communities when they are in the process of developing. The income is paid into the Emmaus Fund to be re- distributed to groups and communities as a grant or loan.

f) Donations of gifts, services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution.

On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

g) 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. In exceptional circumstances when a loan is converted to a grant, any outstanding interest will be written of at conversion date.

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2021

1 Accounting policies (continued)

h) Fund accounting

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

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

The designated Emmaus Fund is held for payments to be made in the future to Emmaus groups and communities, to support Emmaus International movement and development projects at Emmaus UK. The trustees have the power to reallocate such funds within unrestricted funds. Note 18 provides detail on the balances of the designated funds.

i) Expenditure and irrecoverable VAT

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

Costs of raising funds relate to the costs incurred by the 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
Other expenditure represents those items not falling into any other heading

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

j) Grants payable

Grants payable are made to third parties in furtherance of the charity's objects. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and that any condition attaching to the grant is outside of the control of the charity. Emmaus UK operates three grants funds: Companion room expansion grants, formerly known as 25th Anniversary Grants, used to increase number of bed spaces across Emmaus communities. Capacity Development Grant, former Legacy fund, used to expand business opportunities. Grants may be funded over varying periods of time, therefore cost and progress is monitored on continuous bases by the Investment Committee. The companion training fund is direct support for companions request for learning and necessary tools to move on.

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.

k) Allocation of support costs

All support and governance costs are allocated to the charitable activity.

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

l) Operating leases

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

m) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £250. 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.

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

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

Leasehold improvements 4 years straight line
Office furniture and equipment 4/5 years straight line  Computers 3 years straight line  Motor vehicles 4 years straight line

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2021

1 Accounting policies (continued)

n) Social investments

The Community Investment and Enterprise Loan fund, previously called The Emmaus Fund, is a loan-making fund with the intention of providing funds to support communities to change, grow or survive. Priority is given to communities that are expressly working towards financial self-sustainability. The Investment Committee ensures that decision-making around the distribution of funds and subsequent monitoring is appropriately independent, consistent and transparent. The committee overseas that the governance of loans made by Emmaus UK's social investment partners, providing independent due diligence and appropriate monitoring including quarterly risk review for each investment. In exceptional circumstances The Emmaus Board could convert loans to grants.

o) Debtors

Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.

p) Short term deposits

Short term deposits includes cash balances that are invested in accounts with a maturity date of between 3 and 24 months.

q) Cash at bank and in hand

Cash at the current bank account, PayPal account and cash in hand are included as cash at bank and in hand.

r) 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.

s) Financial instruments

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

t) Pensions

The company operates a money purchase pension scheme under which the amount charged to the statement of financial activities is the contributions payable in the year. Differences between contributions payable in the year and the contributions paid are shown as either creditors, accruals or prepayments in the balance sheet.

u) Foreign currencies

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. All differences are taken to the statement of financial activities.

2 Income from donations and legacies

Income from donations and legacies
Donations for Emmaus UK Legacies Donated services Donations to Emmaus UK for federation members	Unrestricted £ - 1,472,297 809,748 -	Restricted £ 378,312 - - -	2021 Total £ 378,312 1,472,297 809,748 -	Unrestricted £ - 1,313,808 367,363 4,000	Restricted £ 468,763 - - -	2020 Total £ 468,763 1,313,808 367,363 4,000
	2,282,046	378,312	2,660,358	1,685,171	468,763	2,153,934

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2021

For the year ended 30 June 2021
3 Grants from trusts and foundations 4 Income from charitable activities Interest receivable Bank interest Loan interest Total income from charitable activities Subscription income from federation members Repayment of solidarity grants Government grant: Coronavirus Job retention Regional Communication Services	Unrestricted £ 22,083 119,756 51,891 42,897 19,874	Restricted £ - 159,747 - - -	2021 Total £ 22,083 279,503 51,891 42,897 19,874	Unrestricted £ 53,615 160,393 60,771 73,141 -	Restricted £ - 30,000 - - -	2020 Total £ 53,615 190,393 60,771 73,141 -
	256,501	159,747	416,248	347,920	30,000	377,920
	Unrestricted £ 35,080 50	Restricted £ - -	2021 Total £ 35,080 50	Unrestricted £ 41,007 9,607	Restricted £ - -	2020 Total £ 41,007 9,607
	35,131	-	35,131	50,614	-	50,614

Loan interest includes interest receivable from Social investment in Emmaus communities and proportion of interest collected on behalf of The Rayne Foundation. Emmaus UK administrates grants on behalf on The Rayne Foundation and will bear no liability for repayments of principal. This sits with the Emmaus communities as the loan recipients.

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2021

5a Analysis of expenditure (current year)

Raising funds £ 321,603 132,809 3,840 - 31,519 - - - - - - - 4,039 - - 11,258 - 222 - 1,520	Charitable activities	Governance costs £ 95,233 - - - - - - - - - - 11,097 2,695 12 - 27,343 - - -	Support costs £ 140,061 - - - - - - - - - - - 407 - 96,835 28,837 - - 6,725 15,445	2021 Total £ 1,111,264 132,809 3,840 35,000 31,519 340,169 200,924 311 341,562 213,579 145,000 11,097 17,662 12 96,835 40,095 27,343 222 6,725 16,965
	Support to federation and communities £ 554,367 - - 35,000 - 340,169 200,924 311 341,562 213,579 145,000 10,520 - - - - - - -
506,810 8,649 -	1,841,432 279,660 136,379	136,379 - (136,379)	288,310 (288,310) -	2,772,931 - -
515,459	2,257,472	-	-	2,772,931

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2021

5a Analysis of expenditure (prior year)

		Charitable
		activities
		Support to
	Raising	federation and	Governance	Support	2020
	funds	communities	costs	costs	Total
	£	£	£	£	£
Staff costs (Note 8)	300,586	489,027	97,562	120,532	1,007,707
Marketing costs	135,682	-	-	-	135,682
Major donor event	8,009	-	-	-	8,009
Emmaus International participation	-	18,193	-	-	18,193
Website development	-	33,372	-	-	33,372
Donations received on behalf of federation members	-	407,632	-	-	407,632
Support to federation members	-	192,985	-	-	192,985
Grants paid out of Companion Room Expansion Grant (Note 6)	-	190,000	-	-	190,000
Grants paid out of Community development Grant (Note 6)	-	71,753	-	-	71,753
Grant paid out of Community and Enterprise Loan Fund (Note 6)	-	19,613	-	-	19,613
Other direct costs	-	390	637	353	1,380
National Assembly, Travel, Mobile phones and data cost	6,397	75,977	41,602	-	123,976
Trustee meetings, expenses, training and insurance	-	-	3,369	-	3,369
Premises and office administration	-	-	-	123,730	123,730
Financial processing and insurance, including audit fee	12,546	-	-	35,883	48,429
Recruitment	-	37	1,068	-	1,105
Other	-	390	637	-	1,027
Depreciation	-	-	-	6,606	6,606
Professional fees	1,603	4,000	-	1,211	6,814
	464,823	1,503,370	144,875	288,315	2,401,382
Support costs	8,649	279,666	-	(288,315)	-
Governance costs	4,346	140,529	(144,875)	-	-
Total expenditure 2020	477,818	1,923,564	-	-	2,401,382

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2021

6a Grant making (current year)

2021 2020 £ £ 223,443 - - 18,864 - 749 223,443 19,613 (29,068) - - 90,000 - 100,000 34,000 - (4,620) - 311 190,000 3,897 1,889 62,575 - 2,000 30,000 - 30,000 3,500 - - 34,000 100,000 - 4,350 - 927 - 15,166 - 4,350 - 27,528 - 2,171 (10,000) 41,032 - 834 - 1,700 1 23,000 - 10,000 - - (280) 10,000 - - (13,856) 28,532 - 341,562 71,754 565,317 281,367 Emmaus Brighton and Hove - grant awarded in prior year not fully spent Emmaus Leeds - grant awarded in prior year not fully spent Emmaus Sheffield Emmaus Gloucestershire Emmaus Cambridge Emmaus Oxford Emmaus Lambeth Emmaus Norfolk Emmaus Salford Emmaus Suffolk Emmaus Dover Emmaus Bradford Emmaus Greenwich Emmaus Cornwall Grants made from Community and Enterprise Investment Loan Fund (formerly Emmaus Fund) Emmaus Burnley Interest due to social investors Emmaus Mossley Emmaus Glasgow Emmaus South Manchester Emmaus Greenwich Emmaus North East Emmaus Bolton At the end of the year Cost Emmaus Burnley The Emmaus UK Board agreed to convert outstanding loans for Emmaus Burnley into the grant to support merger between Emmaus Preston and Burnley. Grants made from Companion room expansion grants (formerly 25th Anniversary Fund) Grants made from Capacity Development Grants (formerly Legacy Fund) Emmaus Lambeth Emmaus Bristol Emmaus Leicester and Rutland Emmaus Leeds Emmaus Hampshire Emmaus Coventry Emmaus Hastings and Rother	2021 2020 £ £ 223,443 - - 18,864 - 749 223,443 19,613 (29,068) - - 90,000 - 100,000 34,000 - (4,620) - 311 190,000 3,897 1,889 62,575 - 2,000 30,000 - 30,000 3,500 - - 34,000 100,000 - 4,350 - 927 - 15,166 - 4,350 - 27,528 - 2,171 (10,000) 41,032 - 834 - 1,700 1 23,000 - 10,000 - - (280) 10,000 - - (13,856) 28,532 - 341,562 71,754 565,317 281,367 Emmaus Brighton and Hove - grant awarded in prior year not fully spent Emmaus Leeds - grant awarded in prior year not fully spent Emmaus Sheffield Emmaus Gloucestershire Emmaus Cambridge Emmaus Oxford Emmaus Lambeth Emmaus Norfolk Emmaus Salford Emmaus Suffolk Emmaus Dover Emmaus Bradford Emmaus Greenwich Emmaus Cornwall Grants made from Community and Enterprise Investment Loan Fund (formerly Emmaus Fund) Emmaus Burnley Interest due to social investors Emmaus Mossley Emmaus Glasgow Emmaus South Manchester Emmaus Greenwich Emmaus North East Emmaus Bolton At the end of the year Cost Emmaus Burnley The Emmaus UK Board agreed to convert outstanding loans for Emmaus Burnley into the grant to support merger between Emmaus Preston and Burnley. Grants made from Companion room expansion grants (formerly 25th Anniversary Fund) Grants made from Capacity Development Grants (formerly Legacy Fund) Emmaus Lambeth Emmaus Bristol Emmaus Leicester and Rutland Emmaus Leeds Emmaus Hampshire Emmaus Coventry Emmaus Hastings and Rother	2020 £ - 18,864 749
	311 3,897 62,575 2,000 - 3,500 - 100,000 4,350 927 15,166 4,350 27,528 2,171 41,032 834 1,700 23,000 10,000 - 10,000 - 28,532	190,000 1,889 - 30,000 30,000 - 34,000 - - - - - - (10,000) - - 1 - - (280) - (13,856) -
	341,562	71,754
	565,317	281,367

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2021

6b Grant making (prior year)

2020 £ - 18,864 749 19,613 - - - - 90,000 100,000 - - 190,000 - - 1,889 - 30,000 30,000 34,000 - (10,000) - 1 - (280) (13,856) - 71,754 281,367 7 2021 £ 6,725 34,066 8,845 2,382 Property Interest due to social investors Emmaus Greenwich Emmaus North East Emmaus Glasgow Emmaus Mossley Emmaus South Manchester Grants made from Companion room expansion grants (formerly 25th Anniversary Fund) Emmaus Cornwall Emmaus Medway Emmaus Staffordshire Emmaus Bristol Emmaus Coventry Emmaus Hastings and Rother Emmaus Suffolk Emmaus Burnley Grants made from Capacity Development Grants (formerly Legacy Fund) Emmaus Hampshire Emmaus Norfolk and Waveney Emmaus Leeds Emmaus Suffolk Emmaus Dover Emmaus Greenwich Other services Emmaus Medway Emmaus Lambeth At the end of the year Audit Net income / (expenditure) for the year Operating lease rentals payable: Auditor's remuneration (excluding VAT): This is stated after charging: Depreciation Emmaus Brighton and Hove Emmaus Colchester Grants made from Community and Enterprise Investment Loan Fund (formerly Emmaus Fund) Grants repaid from Companion room expansion grants (formerly 25th Anniversary Fund) Emmaus Hertfordshire	2020 £ - 18,864 749 19,613 - - - - 90,000 100,000 - - 190,000 - - 1,889 - 30,000 30,000 34,000 - (10,000) - 1 - (280) (13,856) - 71,754 281,367 7 2021 £ 6,725 34,066 8,845 2,382 Property Interest due to social investors Emmaus Greenwich Emmaus North East Emmaus Glasgow Emmaus Mossley Emmaus South Manchester Grants made from Companion room expansion grants (formerly 25th Anniversary Fund) Emmaus Cornwall Emmaus Medway Emmaus Staffordshire Emmaus Bristol Emmaus Coventry Emmaus Hastings and Rother Emmaus Suffolk Emmaus Burnley Grants made from Capacity Development Grants (formerly Legacy Fund) Emmaus Hampshire Emmaus Norfolk and Waveney Emmaus Leeds Emmaus Suffolk Emmaus Dover Emmaus Greenwich Other services Emmaus Medway Emmaus Lambeth At the end of the year Audit Net income / (expenditure) for the year Operating lease rentals payable: Auditor's remuneration (excluding VAT): This is stated after charging: Depreciation Emmaus Brighton and Hove Emmaus Colchester Grants made from Community and Enterprise Investment Loan Fund (formerly Emmaus Fund) Grants repaid from Companion room expansion grants (formerly 25th Anniversary Fund) Emmaus Hertfordshire	2019 £ 95,000 - -
	19,613 - - - - 90,000 100,000 - -	95,000 100,000 100,000 89,786 120,000 - - 141,000 60,000
	190,000	610,786
	-	(3,937)
	-	(3,937)
	1,889 - 30,000 30,000 34,000 - (10,000) - 1 - (280) (13,856) -	38,156 - - - - 9,750 10,000 6,000 16,729 3,328 10,000 13,856 28,532
	71,754	136,351
	281,367	838,200
	2021 £ 6,725 34,066 8,845 2,382	2020 £ 6,606 20,968 8,670 -

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2021

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

Staff costs were as follows:

Staff costs were as follows:
Salaries and wages Social security costs Employer’s contribution to defined contribution pension schemes Other forms of employee benefits	2021 £ 953,170 76,158 47,057 34,879	2020 £ 875,794 81,441 43,385 7,087
	1,111,264	1,007,707

Other forms of employee benefits include travelling, subsistence and personal development costs.

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

		2021	2020
		No.	No.
£70,000	- £79,999	-	1

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £287,280 (2020: £282,810) as a consequence of increased management to separate federations support services from social enterprise support and development services.

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2020: £nil). No charity trustee received payment for professional or other services supplied to the charity (2020: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £12 (2020: £3,369) incurred by 1 (2020: 9) members relating to attendance at meetings of the trustees.

9 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 28 (2020: 31).

Staff are split across the activities of the charity as follows (full time equivalent basis):

Charitable activities Raising funds Support and governance	2021 No. 5.0 18.0 5.0	2020 No. 5.0 16.0 5.0
	28.0	26.0

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2021

10 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 repayment of the solidarity grants have been recognised as income from charitable activities (Note 3), rather than as donations, and these have been included within the designated Emmaus Fund.

Grants and Loans were made to the following communities, which have trustees in common with Emmaus UK during this year:

year:
Emmaus Hampshire Emmaus Gloucestershire Emmaus Coventry & Warwickshire Emmaus Cambridge Emmaus Hastings and Rother Emmaus Greenwich Emmaus Glasgow Emmaus Mossley Emmaus Leicester and Rutland	2021 £ 834 4,350 - - 1,700 3,500 4,350 2,000 100,000	2020 £ - - 90,000 30,000 - - - - -
	116,734	120,000

11 Taxation

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

12 Tangible fixed assets

Tangible fixed assets
At the end of the year Additions in year At the start of the year Charge for the year At the start of the year Net book value At the end of the year Depreciation Cost At the end of the year At the start of the year	Leasehold improvements £ 6,245 -	Fixtures and fittings £ 49,180 -	Computer equipment £ 47,595 7,980	Total £ 103,020 7,980
	6,245	49,180	55,575	111,000
	6,245 -	47,661 994	40,814 5,730	94,720 6,724
	6,245	48,655	46,544	101,444
	-	525	9,031	9,556
	-	1,519	6,781	8,300

All of the above assets are used for charitable purposes.

13 Social investments: Community and Enterprise Investment Loan Fund (formerly Emmaus Fund)

Balance at the beginning of the year Loans repaid during the year Balance at the end of the year Reclassification to a grant	2021 £ 696,198 (50,685) (223,443)	2020 £ 726,248 (30,050) -
	422,070	696,198

The Investment Committee decides upon the interest rate charged; this can vary from nil, 1% or 4% on case by case basis. During 2020/21 loans of £52k for Emmaus Mossley and £20k for Emmaus Bradford were committed but not drawn down.

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2021

14 Debtors

14 Debtors
15 Grants payable Trade debtors Other debtors Prepayments Accruals Deferred income (note 16) Trade creditors Accrued income (including gift aid tax recoverable) Creditors: amounts falling due within one year Taxation and social security Other creditors	2021 £ 42,654 4,628 43,016 30,537	2020 £ 24,664 24,627 27,695 36,910
	120,834	113,896
	2021 £ 53,129 19,977 377,037 19,866 32,553 22,500	2020 £ 122,485 23,259 340,522 1,909 72,921 15,000
	525,063	576,096

16 Deferred income

Deferred income comprises grant income received in year and deferred to future periods.

Balance at the beginning of the year Amount released to income in the year Amount deferred in the year Balance at the end of the year	2021 £ 15,000 (15,000) 22,500	2020 £ - - 15,000
	22,500	15,000

17a Analysis of net assets between funds (current year)

Analysis of net assets between funds (current year)
Tangible fixed assets Social investments Net current assets Net assets at 30 June 2021	General unrestricted £ 9,556 - 319,963	Designated £ - 422,070 2,889,363	Restricted £ - - 9,653	Total funds £ 9,556 422,070 3,218,979
	329,519	3,311,433	9,653	3,650,605

17b Analysis of net assets between funds (prior year)

Analysis of net assets between funds (prior year)
Social investments Net current assets Tangible fixed assets Net assets at 30 June 2020	General unrestricted £ 8,300 - 415,879	Designated £ - 696,198 2,135,824	Restricted £ - - 24,578	Total funds £ 8,300 696,198 2,576,281
	424,179	2,832,022	24,578	3,280,779

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2021

18a Movements in funds (current year)

At 1 July 2020 £ (87) 84 (5) 6 1,145 500 229 - 266 (328) 23 93 56 (96) (593) 101 1,241 (1,589) (548) 13 (43) 76 (2,980) (858) 10 33 108 289 181 (465)	Income & gains £ 8,704 6,675 4,026 19,964 43,884 6,439 7,176 19,495 4,277 16,618 5,070 10,538 20,723 4,370 15,615 27,057 22,865 2,280 4,282 2,491 6,442 18,775 16,006 6,506 5,355 6,770 13,031 212 8,030 7,027	Expenditure & losses £ (8,704) (6,675) (4,315) (19,964) (47,534) (7,894) (7,696) (19,495) (6,000) (17,634) (5,110) (10,528) (20,753) (4,108) (15,690) (28,354) (22,895) (2,290) (4,282) (2,544) (6,532) (18,101) (16,583) (6,616) (5,355) (6,770) (13,051) (212) (7,759) (7,027)	Transfers £ 87 - 295 - 2,506 955 291 - 1,456 1,344 17 - - - 668 1,196 - 1,599 548 41 133 - 3,557 968 - - - - - 465	At 30 June 2021 £ - 84 1 6 1 - - - - - 103 26 166 - - 1,211 - - 1 - 750 - - 10 33 88 289 453 1
(3,139) 150 - 101 13 (203)	340,704 12,175 15,632 - 291 7,007	(350,471) (12,225) (15,632) - (291) (7,536)	16,126 - - - - 732	3,220 100 - 101 13
61 - - 25,000 - - - - - 2,657 - - -	35,106 15,000 1,500 - 120,000 500 5,000 1,250 15,000 - 2,000 2,000 -	(35,684) (15,000) (1,494) (25,000) (120,000) - (5,000) (192) (15,000) - - (2,000) -	732 - - - - - - - - - - -	215 - 6 - - 500 - 1,058 - 2,657 2,000 - -
27,657	162,250	(183,686)	-	6,221
24,578	538,060	(569,842)	16,858	9,652

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2021

18a Movements in funds (current year) (continued)

At 1 July 2020 £ 1,010,105 731,517 - 50,000 48,400 10,000 25,000 - - - - - -	Income & gains £ 42,947 - - - - - - - - - - - -	Expenditure & losses £ (213,579) (341,562) - (54,148) - (10,000) - - - - - - -	Transfers £ 253,912 - - 50,000 166,600 - (25,000) 50,000 30,000 75,000 100,000 50,000 15,000	At 30 June 2021 £ 1,093,385 389,954 - 45,852 215,000 - - 50,000 30,000 75,000 100,000 50,000 15,000
-	-	-	19,874	19,874
30,000 72,742 149,258 80,000 500,000 5,000 90,000 5,000 25,000	- - 105,683 - - - - - -	(4,409) (57,002) (311) - - - (75,800) (2,604) -	25,000 - 367,206 (80,000) - 20,000 - (2,396) (25,000)	50,591 15,740 621,836 - 500,000 25,000 14,200 - -
2,832,022	148,630	(759,415)	1,090,196	3,311,433
424,179	2,456,068	(1,443,674)	(1,107,054)	329,519
3,256,201	2,604,698	(2,203,089)	(16,858)	3,640,951
3,280,779	3,142,757	(2,772,931)	-	3,650,605

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2021

18b Movements in funds (prior year)

At 1 July 2019 £ 73 109 1 6 1,515 155 (61) - 266 (228) (117) 103 56 214 (493) 101 1,291 (1,579) (548) 13 2 (114) 79 (838) 10 33 83 289 140 (40)	Income & gains £ 3,381 4,469 1,261 4,130 35,760 3,058 9,306 1,184 4,938 6,640 4,086 7,666 3,125 5,181 2,628 6,186 16,126 6,545 2,955 3,337 7,726 19,957 4,753 5,262 1,986 5,281 23,641 73 2,495 9,209	Expenditure & losses £ (3,541) (4,494) (1,267) (4,130) (36,130) (2,713) (9,016) (1,184) (4,938) (6,740) (3,946) (7,676) (3,125) (5,491) (2,728) (6,186) (16,176) (6,555) (2,955) (3,337) (7,771) (19,767) (7,811) (5,282) (1,986) (5,281) (23,616) (73) (2,454) (9,634)	Transfers £ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	At 30 June 2020 £ (87) 84 (5) 6 1,145 500 229 - 266 (328) 23 93 56 (96) (593) 101 1,241 (1,589) (548) 13 (43) 76 (2,980) (858) 10 33 108 289 181 (465)
519 150 (1,894) 101 13 63	212,345 654 32,785 - 225 6,494	(216,003) (654) (30,891) - (225) (6,760)	- - - - - -	(3,139) 150 - 101 13 (203)
(1,568) 6,820 1,000 - - - 2,657 2,000 46,352 18,666			- - - - - - - - - -	61 - - 25,000 - - 2,657 - - -
77,495 76,446	246,260 498,763	(296,098) (550,631)	- -	27,657 24,578

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2021

18b Movements in funds (prior year) (continued)

At 1 July 2019 £ 1,446,906 425,237 5,000 55,000 59,028 45,000 20,900 10,000 - 30,000 50,000 268,565 80,000 - - - - -	Income & gains £ 81,998 - - - - - - - - - 25,149 70,693 - - - - - -	Expenditure & losses £ (18,799) (71,753) - (53,022) (26,564) (18,193) (20,900) - - - (2,407) (190,000) - - - - - -	Transfers £ (500,000) 378,032 (5,000) 48,022 15,936 (16,807) 25,000 (10,000) - - - - - 500,000 5,000 90,000 5,000 25,000	At 30 June 2020 £ 1,010,105 731,517 - 50,000 48,400 10,000 25,000 - - 30,000 72,742 149,258 80,000 500,000 5,000 90,000 5,000 25,000
2,495,636	177,841	(401,638)	560,183	2,832,022
517,851	1,915,624	(1,449,113)	(560,183)	424,179
3,013,487	2,093,465	(1,850,751)	-	3,256,201
3,089,933	2,592,227	(2,401,382)	-	3,280,779

Purposes of restricted funds

a Charles Russell LLP
b Anonymous funder
c John Laing Charitable Trust
d The Broyst Foundation
e The Dulverton Trust
f Companion room expansion grant (25th Anniversary Fund)
g Smallwood Trust
h Corporates for Companion training
i Persula Foundation

Charles Russell LLP contributed to the training fund for companions.

Anonymous funder contributed to the Companion Core Offer project development and delivery.

John Laing Charitable Trust contributed to the training fund for companions and to the Data Warehouse Project.

The Broyst Foundation contributed to the training fund for companions.

The Dulverton Trust contributed to the training fund for companions.

Fund contributes to the provision of new rooms at Emmaus communities.
Smallwood Trust contributed to research and analyse provision for homeless women.

Corporate donations were made for the training fund for companions.

Restricted fund towards companion training.

j Garfield Weston Foundation Garfield Weston Foundation donated towards costs of the Companion Core Offer project.
k Anonymous Funder
l Beatrice Laing Trust m Community and enterprise investment loan fund (Emmaus Fund)

Donation for Emmaus Norfolk and Waveney

Beatrice Laing fund contributed towards salary of business development See note 6

n Capacity development grants (Legacy Provides grants to support communities and groups with specific capacity Fund) development needs (see note 6).

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2021

Purposes of designated funds	Purposes of designated funds
o	HR project	Project now closed. In 2019/20 it was used to strengthen and maximise the
		potential of our existing staff teams and to streamline our recruitment
		process.
p	IT project	Emmaus UK funded communities IT equipment and network development
		and maintenance. In 2020-21, designated fund will contribute towards basic
		IT maintenance cost for Emmaus communities and equitments to the new
		communities who want to join our IT infrastructure.
q	Business planning	This project is created as part of strategic planning, gender equality research
		and development, development of social return to investment.
r	Emmaus International	Emmaus International has funds designated for £10,000 contribution to the
		president's costs, Emmaus Solidarity fund of £25,000 which contributes
		towards solidarity initiatieves or appeals from Emmaus International and
		Europe. Emmaus UK contribution towards trip to France for Emmaus
		communities.
s	Staff training	Emmaus UK is committing toward staff professional development through
		Psychologically Informed Environment training delivery to all staff with
		reflective practise over two years. 2019-20 was the final year of PIE training
		project. Emmaus UK has provided general resources to improve EDI
		awareness and staff wellbeing.
t	Web development	The emmaus.org.uk website is currently in need of renewal, having been
		developed five years ago.
u	Safeguarding consultancy	Research into safeguarding policies and implementation
v	Strength based approach	Monitoring and availabition project based on strenght.
w	Base grants	Funding for new models of social enterprises.
x	Companion training fund	Designated fund to support trainings and development opportunity for
		companions
y	Companion room expansion grant	Funding to increase number of companion rooms that are available within
		communities
z	Federation emergency fund	Designated funds to support the restructure of its communities
aa	General fund	The general fund incorporates a reserve being approximately equivalent to 3
		months' operating costs.
ab	Emergency fund	Designated to support communities through Covid-19 pandemic
ac	Equipment for companions	Designated for IT equipment to support companions engagement with
		training and the peer group
ad	Federation Health and safety	Designated to support communities with Health and Safety advice and
		guidance.
ae	Tablets for trustees	Designated for trustees communication and engagement.
af	Training for Executive leaders peer	Designated to facilitate training and development of the Emmaus
	group	communities Executive leaders peer group
ag	Base John Laing Charitable Trust	Support for new models of social enterprises in Emmaus communities.
ah	Anon	Campaign specific online donations launched to help Emmaus companions in
		communities with training and development
ai	Health and Hygiene Equipment	Campaign specific donations for supporting Emmaus communities to fund
		their PPE equipment
aj	The Freemasons's Charitable Trust	Support for communities for PPE
ak	Aldo Trust	Campaign specific online donations launched to help Emmaus companions in
		communities with training and development
ap	Calypso Browing Trust	Donation towards Covid emergency fund for communities
al	Environment Audit	New project across all communities
am	Strategic plan	Monitoring, coordination and evaluation of the strategic plan 2020-2025
an	IT tender	Consultancy support for tendering for IT services
ao	Women's group	New project to explore female access to services
ap	Anonymous donor	Donation for Emmaus Lambeth
aq	Recycling and environmental initiatives	In memory of colleague

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2021

19 Operating lease commitments payable as a lessee

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

following periods
Less than one year	2021 2020 £ £ - 21,298 - 21,298 Property
	-	21,298

20 Capital commitments

At the balance sheet date, the charity had no capital commitments (2020: £nil).

21 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.

22 Post Balance Sheet Events

Following the year end, Emmaus UK has received the residual legacy income value of £361,709 which will be recognised in accordance with the accounting policy in 2021/22 financial year.

Emmaus UK

Contents

For the year ended 30 June 2021

Reference and administrative information

For the year ended 30 June 2021

Key Management Personnel

Reference and administrative information

For the year ended 30 June 2021

Trustees’ annual report

For the year ended 30 June 2021

Chair’s introduction

Trustees’ annual report

For the year ended 30 June 2021

Trustees’ annual report

For the year ended 30 June 2021

Trustees’ annual report

For the year ended 30 June 2021

Objectives and activities

Purposes and aims

About Emmaus

About Emmaus UK – Aims and activities

Trustees’ annual report

For the year ended 30 June 2021

Strategic Plan

Trustees’ annual report

For the year ended 30 June 2021

Why do we exist?

How do we make a difference?

Our values

What we do

We help people

We work

We use our voice

Our strategic plan 2020-2025

Trustees’ annual report

For the year ended 30 June 2021

2. We will work smarter by

3. We will shout louder about

Achievements and performance

We will help more people

Emmaus UK

Trustees’ annual report

For the year ended 30 June 2021

We will work smarter

Trustees’ annual report

For the year ended 30 June 2021

We will shout louder about

Trustees’ annual report

For the year ended 30 June 2021

Fundraising income

The coming year

Financial Review

Trustees’ annual report

For the year ended 30 June 2021

Principal risks and uncertainties

Risk management

Trustees’ annual report

For the year ended 30 June 2021

Trustees’ annual report

For the year ended 30 June 2021

Trustees’ annual report

For the year ended 30 June 2021

Trustees’ annual report

For the year ended 30 June 2021

Reserves policy and going concern

Investments policy and returns

Trustees’ annual report

For the year ended 30 June 2021

Public benefit

Fundraising

Trustees’ annual report

For the year ended 30 June 2021

Structure, governance and management

Trustees’ annual report

For the year ended 30 June 2021

Appointment of trustees

Membership of board and committees (on 30 June 2021)

Emmaus UK Board

Trustees’ annual report