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2022-06-30-accounts

Company number: 03422341 Charity Number: 1064470

Emmaus UK

Report and financial statements For the year ended 30 June 2022

Emmaus UK

Contents

For the year ended 30 June 2021

Reference and administrative information ...................................................................................... 1 Trustees’ annual report .................................................................................................................. 3 Independent auditor’s report ....................................................................................................... 20 Statement of financial activities (incorporating an income and expenditure account) ................... 24 Balance sheet ............................................................................................................................... 25 Statement of cash flows ................................................................................................................ 26 Notes to the financial statements ................................................................................................. 27

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 Regus Apex House Calthorpe Road Edgbaston Birmingham B15 1TR

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 Taylor Chair Amanda Stekly Co-Vice Chair until 26/05/2022 Katrina Mattock Co-Vice Chair until 26/05/2022, Vice-Chair from 26/05/2022 Richard Paterson Treasurer Geraldine Tsakirakis Resigned 22/06/2022 Hazel Warwick John Clark Resigned 24/09/2021 Keith Jeffrey Resigned 30/05/2022 Kelly Finnis Resigned 05/04/2022 Tony Ferrier Lucia Smith Resigned 15/06/2022 Andrea Clemons Resigned 24/09/2021 John Harrison Sara Creech Andrew Kilburn Appointed 22/06/2022 Joanne Henney Appointed 01/11/2022

Key management Charlotte Talbott Chief Executive Appointed 06/09/2021 personnel Simon Grainge Chief Executive Resigned 31/05/2021 Clare Hunter Head of Communications and Fundraising Duncan Gall Head of Federation Support Linda Drury Head of Business Development

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Emmaus UK

Reference and administrative information

For the year ended 30 June 2021

Sanja Kalik Head of Finance, Company Secretary Head of Finance, Company Secretary
Bankers CAF Bank Limited 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 1st 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

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Emmaus UK

Trustees’ annual report

For the year ended 30 June 2022

Chair’s introduction

Chair’s Introduction 2021-2022 accounts

As was the case for so many charities, the pandemic placed Emmaus into “survival mode” – focusing on our immediate needs, rather than our plans for the future. Prioritising as we did, meant we managed to weather the impact of the pandemic and now that we are through it, 20212022 has been a year filled with opportunities and optimism for Emmaus UK. We have used the past 12 months to work with our members to review and rebuild our plans for the future, building our vision for a sustainable world where everyone has a home and a sense of belonging.

Our new CEO, Charlotte Talbott, has been instrumental in making this happen. Her fresh approach and enthusiasm has united our federation of charities behind this collective ambition. Charlotte has led on the Evolving Emmaus programme which focusses on reviewing and re-establishing our priorities for the next five years. This has given the federation a renewed energy, with a focus on how we help more people, work smarter, shout louder about what we do and work together better.

None of what we do, or our plans for the future, would be possible without our supporters. Their loyalty and commitment to Emmaus is what enables us to continue to make a difference to the lives of the people we support.

This year we have seen a significant increase in support from corporate donors, with a number of new companies partnering with us. These partnerships provide financial support to Emmaus alongside the added benefit of the staff volunteering their time and skills to help us to deliver our services.

Emmaus has always put a lot of value on the benefits community can offer, and the supporters and partners who work with us become part of that community, working together to make a difference to the lives of the people we support.

In the coming year, we will undoubtedly face further challenges. The cost-of-living crisis will not only increase the costs to run our communities, it will also increase the demand on our services. This is why now, more than ever, it is essential that we look at what we can do to make even more of a difference to the lives of people we support.

We want to be able to rise to the challenge and I have every confidence that, with help from our partners and supporters, Charlotte and the Emmaus UK team will do just that.

Thank you for your continued support

Best wishes

Susan Taylor Chair of Trustees, Emmaus UK

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Emmaus UK

Trustees’ annual report

For the year ended 30 June 2022

Trustees Report

About Emmaus

Emmaus is a homelessness charity with a difference. We don’t just offer a bed for the night, we offer a stable home, meaningful work and the opportunity to get back on your feet again.

Having something to do every day and a sense of purpose in your life is so important. Every day at Emmaus we see the impact this has, taking people who feel as if they have lost everything and giving them hope for the future.

About Emmaus UK

Emmaus UK is the federal body which supports 34 Emmaus member charities in the UK. Each of these member charities is an independent charity, governed by a local board of trustees

The role of Emmaus UK is to support its member organisations and encourage the growth of Emmaus in the UK. To do this, Emmaus UK offers a range of in-house services to its members in areas such as; companion support and referrals, business development, fundraising and communications.

In addition, Emmaus UK procures the following services, which are available for all member organisations to use:

Emmaus UK also provides financial support to member organisations, through a range of loan and grant funds. These are:

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Emmaus UK

Trustees’ annual report

For the year ended 30 June 2022

Evolving Emmaus – Developing our strategic plan

Just before the pandemic hit, Emmaus was ready to launch its 2020-2025 strategic plan. However, so much changed during the course of the pandemic that it was felt that plan had to be reviewed and revisited in 2021-22.

Following extensive consultation, a new strategic plan for 2022-27 was developed by the federation of Emmaus charities in the UK to ensure that we are in the best possible position to thrive in a post-pandemic world.

Our values

Our values underpin everything that we do:

Respect - for others, ourselves and our environment

Sharing – our resources, skills, challenges and successes

Openness – to ideas, challenges and to other points of view

Solidarity – helping those in greatest need and opposing injustice Welcoming – friendly, approachable and inclusive to all

Our Purpose: We exist to give hope and a sense of belonging to those who have experienced homelessness and poverty

Our Vision: A sustainable world in which everyone has a home and a sense of belonging

Our Mission: To empower people affected by homelessness and poverty to change their lives for the better whilst using our voice to achieve social change

Our Strategic Objectives 2022-2027

We will:

We will help more people by:

We will work smarter by:

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Emmaus UK

Trustees’ annual report

For the year ended 30 June 2022

We will shout louder by:

We will work together better by

Our Achievements

Like any federal body, most of Emmaus UK’s work is focused on supporting the federation of Emmaus charities in the UK to realise their potential. This year much of our work has been focused on planning for the future, ensuring Emmaus is in the strongest possible position to handle the challenges that lie ahead.

The team at Emmaus UK has also:

Fundraised income

Gifts from individual donors, secured via direct marketing, continue to be the largest source of income for Emmaus UK, although this year has also seen an increase in corporate giving, thanks to an increase in corporate partnerships. Total fundraised income was £2,753,071

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Emmaus UK

Trustees’ annual report

For the year ended 30 June 2022

The coming year

We know the coming year is going to be tough for so many people and Emmaus will not be immune to the impact of the cost-of-living crisis, which will not only increase our own costs but is also likely to place increased demand on our services and potentially reduce the donations our generous supporters are able to give. As ever, our priority will be to do everything we can to support those who need it most and we will aim to deliver this through our new strategic plan.

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Emmaus UK

Trustees’ annual report

For the year ended 30 June 2022

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 2022. 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 a 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.

Financial review

The total income for the year was £2,911,596 (2021: £3,142,757), restricted income was £294,621 (2021: £538,059). The principal funding sources for the year were donations from direct marketing, legacies, grants from trusts and foundations and funds raised through corporate partnerships.

Expenditure was £2,627,572 (2021: £2,772,931). This was lower than last year due to the Covid appeal in 2020-21 supporting communities through pandemic.

The community and enterprise investment loan fund received loan repayments from members of £53,200 (2021: £50,685) and issued new loan to Emmaus Bradford value of £310,000 (2021: £0).

Grants totalling £249,486 (2021: £341,562) were paid out of the Capacity Development Grant Fund (previously Legacy Fund) with an additional £165,000 (2020: £311) paid from the Companion Room Expansion Grant (previously 25th Anniversary Fund) in order to fund an increase in the number of companion rooms in the UK (see note 6).

Emmaus UK also works directly with members of the federation to raise funds and in-kind support, which are given directly to the communities and are therefore not reflected in these financial statements. The cost of this activity is included in the fundraising and publicity resources as detailed in note 5. Emmaus UK offers a range of other services to support the members of the federation, these include; IT support, HR advice and support, a regional communications service, provision of a website, a companion support database, referral gateway, access to training and support to develop their business and community.

Principal risks and uncertainties

Risk Management

Risk management is taken very seriously by the Trustees at Emmaus, the risk management register is a standing item on both the Resources 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

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Emmaus UK

Trustees’ annual report

For the year ended 30 June 2022

faced by the Charity, prioritises them in terms of likelihood of occurrence and potential impact, and identifies the means of mitigating those risks. These risks are regularly considered by the Board and its committees and mitigating actions are in place. The registers are regularly updated, with systems being amended as appropriate. A disaster Recovery Policy is also in place.

The highest risks currently identified in the Charity’s strategic risk register, are listed below with the control measures:

The highest risks currently identified in
the control measures:		 the Charity’s strategic risk register, are listed below with
Risk Control Measures
Loss of Trustees and committee
members as a result of governance
transformation process leading to
inability of Board and Committees to
function		 Board recruitment and succession planning
Transformation plan to run in stages to reduce potential
issues
Communications plan
Operate if quorate outside of membership arrangements
Strategicplan Emmaus UK
Governance transformation process
destabilises the work of the Board
and Committees impacting EUK
performance and services to
federation members		 Develop a communications plan to explain the changes
to members
Full consideration of any changes
Regular consultation meetings
Performance review
Inability to recruit Trustees with
necessary skills and experience to
effectively govern EUK		 Take a skills-based approach to recruitment with a
robust recruitment process
Develop a strong trustee recruitment pack, selling the
benefits of joining the EUK Board
Get external support with specialist recruitment
Consider accessibility of EUK Board meetings to trustees
with different work and personal commitments
Monitor impact of new term limits on applications for full
memberplaces
Inadequate planning for disaster
recoveryand business continuity.		 Business continuity plan and Disaster Recovery Plan
(reviewed Oct 22)
Failure to raise sufficient funding to
deliver the EUK strategy and
federation strategic plan		 Robust fundraising strategy underpinned by team plan,
KPIs and fundraising protocols
Regular monitoring of income and expenditure through
management accounts to flag issues
Reviewgoingconcern
Inadequate management of funds
and inappropriate/inadequate
investment in federation services
and projects		 A robust funds structure, aligned to the federation
strategic priorities and EUK strategy
Challenge and support through the committee structure
Funds review and implementation of new funds structure
Fraud, corruption, and bribery policies
Insurancepolicy

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Emmaus UK

Trustees’ annual report

For the year ended 30 June 2022

Risk Control Measures
Cost of living crisis, volatility of
financial environment and impact on
current income streams in
communities’ places demands on
Emmaus funds and EUK services that
cannot be met		 Regular monitoring of financial performance of the
federation
Monitoring market changes
Maintaining adequate level of reserves
Monitoring liquidity
Monitoring demands from Emmaus communities
Monthlymanagement accounts
Impacts of restructure process at
EUK including
•
Loss of staff
•
Legal challenge
•
Morale and effectiveness and
efficiency		 Clear communication with staff
A fair and transparent restructure process
Demonstrating staff are valued through remuneration
and benefits offer
A robust people, EDI and wellbeing strategy
Commitment and accountability from the board and it’s
committees to supportingand valuingstaff
Inability to recruit and retain key
staff with the skills necessary to
deliver the strategic plan.		 Comprehensive recruitment and induction process, staff
recruitment and retention policy in place.
Benchmarked staff reward package.
Commitment to ongoing staff support through 1-2-1s,
appraisals, training and wellbeing measures
Identify succession and development opportunities
Firm commitment to EDI with demonstrable benefits to
staff
Wellbeing group
Cross working group
Inadequate systems to ensure legal
and regulatory compliance and
adherence to charity governance
code and charity commission best
practice		 Annual returns to regulatory bodies.
Effective health and safety policies and training.
CE’s report to board.
Suite of organisational policies.
Standing Orders and Financial Regulations.
Annual audit.
Review of gift aid procedures.
Annual review of risk register.
Annual review of data protection policy and procedures,
alongwith refresher trainingfor all staff
Inadequate systems for
safeguarding, incident management
and reporting		 Regular reviews of policies and procedures relating to
safeguarding
Safeguarding incidents and responses reviewed by SMT
and the relevant EUK committee.
Regular training for safeguarding, incident management
and reporting.

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Emmaus UK

Trustees’ annual report

For the year ended 30 June 2022

Risk Control Measure
Legal challenge to companion status
and/or changes to relevant
legislation i.e. national minimum
wage regulation exemption.		 Legal advice on companion status and NMW is updated
and kept under review.
Failure to effectively monitor and
respond to changes in the external
environment e.g. Exempt
accommodation review or similar
changes that are critical to the
current Emmaus model		 Regular monitoring of external environment including
legislation and policy to the Board and committees as
standing items on the agendas
Links to appropriate networks.
Loss of confidence in Emmaus UK
through failure to deliver services or
represent the federation effectively.		 Regularly review services provided and service needed
through Chairs and EL Peer groups.
Annual Service Review.
Reputational risk to Emmaus UK
caused by failure of any of its
members e.g. safeguardingor
significant loss of members from the
UK federation		 Regular discussions on issues affecting members
through SMT and federation support meetings
Regular reports to Operations Committee on members
presenting risks including safeguarding or other serious
incidents.

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Emmaus UK

Trustees’ annual report

For the year ended 30 June 2022

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. As set out below, there are no concerns about the charity’s ability to continue and there is no deficit on unrestricted funds.

The trustees consider that three months operating costs should be held in unrestricted reserves (Based on future budget spend £643,603). Unrestricted general funds at 30 June 2022 were £648,577 (2021: £329,519). More information on the funds is provided in Note 18.

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 2022 the Community and Enterprise Investment Loan Fund stood at £,112,740 (2021: £1,093,385) of which £678,869 (2021: £422,070) 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, created specifically to increase capacity in communities and groups, ended the year at £640,468 (2021: £389,954) after releasing £500,000 from the Emergency fund created during the pandemic. The Companion Room Expansion fund created to support increase capacity to accommodate homeless people at Emmaus communities, decreased to £525,989 (2021:£621,836). The fund was supported by the corporate partnership. The income received through partnership with Evri initially intended to this fund was reallocated to the new Environment Fund (£88,839). The cost and opportunities to build new companion rooms are affected by the economy and the demand for the fund is lower. The fuel cost and the wider environmental initiatives emerged in 2022 and the fund is created to support these.

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 that chosen banks have a good reputation and rating.

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

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 in order to provide financial sustainability. Grants may be funded over varying periods of time, therefore

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Emmaus UK

Trustees’ annual report

For the year ended 30 June 2022

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 by providing financial support to access a range of training and development opportunities.

The Investment Committee is responsible for the governance of the major loan and grant-making funds held by Emmaus UK (‘EUK Funds’), ensuring that 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 appropriate monitoring on their behalf .

In April 2020 The Board agreed to defer all capital repayments for all communities with outstanding Emmaus UK loans until 31 December 2020 after which was reviewed on a community by community basis. The Board agreed all communities with outstanding Emmaus UK loans are given an interest free period until 31 December 2021 and March and June quarter interest are not invoiced either as the charity is going through funds review with Emmaus community. The process will be completed by 31[st] December 2022 .

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’.

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 and 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.

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Emmaus UK

Trustees’ annual report

For the year ended 30 June 2022

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 June 2022.

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.

All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 8 to the accounts.

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, selfsupporting 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:

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Emmaus UK

Trustees’ annual report

For the year ended 30 June 2022

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 fixed 3 years term and may serve no more than 9 years in total.

Membership of Board and committees (on 30 June 2022)

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, mission, vision and strategic aims of Emmaus in the UK.

Chair: Susan Brooksbank-Taylor – Independent (Emmaus Coventry & Warwickshire until April 2022)

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Emmaus UK

Trustees’ annual report

For the year ended 30 June 2022

Vice Chair : Katrina Mattock - Independent Treasurer: Richard Paterson - Independent Members: Amanda Stekly - Emmaus Norfolk & Waveney Andrew Kilburn – Emmaus Mossley Hazel Warwick - Emmaus Hampshire John Harrison – Emmaus North East Sara Creech - Independent Tony Ferrier – Emmaus Glasgow Secretary: Charlotte Talbott, Chief Executive

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 – Emmaus UK Vice Chair Vice Chair: Rachael Burton – Emmaus SLC Members: Frances Hirst – Emmaus South Manchester Gary Barton – Emmaus Mossley Hannah Hutchings – Emmaus Oxford Steve James – Emmaus Oxford John Harrison – Emmaus North East/Emmaus UK trustee Tony Ferrier – Emmaus Glasgow/Emmaus UK trustee Ex-Officio: Susan Taylor - Emmaus UK Chair Secretary : Duncan Gall, Head of Federation Support

Investment Committee

The role of the Investment Committee is to govern the Emmaus Funds and to ensure that decision-making 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: Hazel Warwick – Emmaus Hampshire/Emmaus UK Trustee Joe Feeley – Emmaus Gloucestershire John Bromley – Independent John Webbe – Emmaus North Staffs Samantha Tubb – Independent Ex-Officio : Susan Taylor - Emmaus UK Chair

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Emmaus UK

Trustees’ annual report

For the year ended 30 June 2022

Katrina Mattock – Emmaus UK Chair of Operations Committee Secretary: Bev Lovemartin, Fund Manager

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. 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 CE.

Chair: Sara Creech – Emmaus UK trustee Members:

Amanda Stekly – Emmaus Norfolk & Waveney/Emmaus UK trustee Katrina Mattock – Emmaus UK Vice Chair

Richard Paterson – Emmaus UK Treasurer

Susan Brooksbank-Taylor - Emmaus UK Chair Secretary: Clare Hunter, 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

Members:

Andrew Kilburn – Emmaus Mossley/Emmaus UK Trustee Hazel Warwick – Emmaus Hampshire/Emmaus UK Trustee John Harrison – Emmaus North East/Emmaus UK Trustee Ex-Officio : Susan Taylor - Emmaus UK Chair Secretary: Sanja Kalik, Head of Finance

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.

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Emmaus UK

Trustees’ annual report

For the year ended 30 June 2022

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 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:

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:

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.

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Emmaus UK

Trustees’ annual report

For the year ended 30 June 2022

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 2022 was 9 (2021: 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 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 20 December 2022 and signed on their behalf by

Susan Taylor Chair of Trustees

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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 2022 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

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

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Independent auditor’s report

To the members of

Emmaus UK

report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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:

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

21

Independent auditor’s report

To the members of

Emmaus UK

to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

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

Capability of the audit in detecting irregularities

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

22

Independent auditor’s report

To the members of

Emmaus UK

tested significant transactions that are unusual or those outside the normal course of business.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of 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) 04 January 2023

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

23

Emmaus UK

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

For the year ended 30 June 2022

Restricted
£
239,528
55,000
-
-		 2022
Total
£
2,633,416
230,603
26,422
21,155		 Unrestricted
and
Designated
£
2,282,046
256,501
35,131
31,021		 Restricted
£
378,312
159,747
-
-		 2021
Total
£
2,660,358
416,248
35,131
31,021
2,617,069 294,528 2,911,596 2,604,698 538,059 3,142,757
331,211
2,054,596		 -
241,765		 331,211
2,296,361		 515,459
1,687,630		 -
569,842		 515,459
2,257,472
2,385,807 241,765 2,627,572 2,203,089 569,842 2,772,931
231,261
-		 52,763
-		 284,024
-		 401,609
(16,858)		 (31,782)
16,858		 369,826
-
231,261
3,640,952		 52,763
9,653		 284,024
3,650,605		 384,751
3,256,201		 (14,924)
24,578		 369,826
3,280,779

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.

24

Emmaus UK

Company no. 03422341

Balance sheet

As at 30 June 2022

As at 30 June 2022
Balance sheet		 Company no. 03422341
Note
Fixed assets:
12
13
Current assets:
14
Liabilities:
15
18a
Total unrestricted funds
General funds
Total charity funds
The funds of the charity:
Creditors: amounts falling due within one year
Net current assets
Total net assets
Restricted income funds
Unrestricted income funds:
Designated funds
Social investments: Emmaus Fund
Cash at bank and in hand
Short term deposits
Tangible assets
Debtors		 £
144,207
3,090,541
691,891		 2022
£
8,479
678,870		 £
120,834
3,389,391
233,817		 2021
£
9,556
422,070
687,349
3,247,281		 431,626
3,218,979
3,926,640
(679,359)		 3,744,041
(525,063)
3,223,637
648,576		 3,311,433
329,519
3,934,629 3,650,605
62,416
3,872,213		 9,653
3,640,952
3,934,629 3,650,605

Approved by the trustees on 20 December 2022 and signed on their behalf by

Susan Taylor Chair of Trustees, Emmaus UK

25

Emmaus UK

Statement of cash flows

For the year ended 30 June 2022

For the year ended 30 June 2022
Cash flows from operating activities
Net income for the reporting period
(as per the statement of financial activities)
Depreciation charges
Increase in debtors
Increase/(decrease) in creditors
Social investment loan
Short term deposits
Cash at bank and in hand
Total cash and cash equivalents
Bank and investment interest
Reclassification of social investments
Net cash provided by operating activities
Analysis of cash and cash equivalents
Cash and cash equivalents at the end of the year
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Receipt of Emmaus Fund loan repayments
Cash flows from financing activities:
Cash and cash equivalents at the beginning of the year
Net cash provided by investing activities
Cash flows from investing activities:
Purchase of fixed assets
Bank and investment interest		 £
£
284,024
-
(26,422)
6,918
(23,373)
154,296
395,443
(5,840)
26,422
(310,000)
(289,419)
53,200
53,200
159,225
3,623,207
3,782,432
At 1 July 2021
£
3,389,391
233,817
3,623,207
2022		 £
£
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
Cash flows
At 30 June
2022
£
£
(298,850)
3,090,541
458,075
691,891
159,225
3,782,432
2021
395,443
(289,419)
53,200		 506,891
27,151
50,685
53,200 50,685
Cash flows
£
(298,850)
458,075
159,225
3,623,207		 584,726
3,038,481
3,782,432 3,623,207
At 1 July 2021
£
3,389,391
233,817		 At 30 June
2022
£
3,090,541
691,891
3,623,207 159,225 3,782,432

26

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2022

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.

27

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2022

h) Fund accounting

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.

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:

4 years straight line 4/5 years straight line 3 years straight line 4 years straight line

28

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2022

n) Social investments

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

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

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

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.

Income from donations and legacies
Donations for Emmaus UK
Legacies
Donations to Emmaus UK for federation
members		 Unrestricted
£
-
1,546,402
847,486		 Restricted
£
239,528
-
-		 2022
Total
£
239,528
1,546,402
847,486		 Unrestricted
£
-
1,472,297
809,748		 Restricted
£
378,312
-
-		 2021
Total
£
378,312
1,472,297
809,748
2,393,889 239,528 2,633,416 2,282,046 378,312 2,660,358

29

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2022

For the year ended 30 June 2022
3
Grants from trusts and foundations
4
Total income from charitable activities
Subscription income from federation
members
Repayment of solidarity grants
Interest receivable
Bank interest
Loan interest
Income from charitable activities
Government grant: Coronavirus Job retention
Regional Communication Services		 Unrestricted
£
37,500
64,655
54,100
19,348
-		 Restricted
£
-
55,000
-
-
-		 2022
Total
£
37,500
119,655
54,100
19,348
-		 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
175,603 55,000 230,603 256,501 159,747 416,248
Unrestricted
£
26,416
6		 Restricted
£
-
-		 2022
Total
£
26,416
6		 Unrestricted
£
35,080
50		 Restricted
£
-
-		 2021
Total
£
35,080
50
26,422 - 26,422 35,131 - 35,131

Loan interest includes interest receivable from Social investment in Emmaus communities . Emmaus UK Board decided not to charge the interest on loans during the Covid pandemic.

30

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2022

the year ended 30 June 2022
Analysis of expenditure (current year)
Staff costs (Note 8)
Marketing costs
Major donor event
Emmaus International participation
Website development
Transfer of donations received on behalf of federation members
Support to federation members
Grants paid out of Companion Room Expansion Grant (Note 6)
Grants paid out of Community development Grant (Note 6)
Grant paid out of Community and Enterprise Loan Fund (Note 6)
Transfer of trust income received on behalf of federation
members
Other direct costs
National Assembly, Travel, Mobile phones and data cost
Trustee meetings, expenses, training and insurance
Premises and office administration
Financial processing and insurance, including audit fee
Recruitment
Other
Depreciation
Professional fees
Support costs
Governance costs
Total expenditure 2022		 Raising
funds
£
175,992
121,363
1,902
-
-
-
-
-
-
-
-
-
4,690
-
-
14,678
-
1,462
-
1,452		 Charitable
activities		 Governance
costs
£
88,510
-
-
-
-
-
-
-
-
-
-
187,714
7,067
2,559
-
-
11,616
-
-
-		 Support
costs
£
166,165
-
-
-
-
-
-
-
-
-
-
-
2,908
-
105,598
33,924
-
-
6,917
6,902		 2022
Total
£
1,067,774
133,046
1,902
53,976
39,707
242,015
214,932
165,000
249,486
-
-
187,714
86,914
2,559
105,598
48,602
11,616
1,462
6,917
8,353
Support to
federation and
communities
£
637,106
11,683
-
53,976
39,707
242,015
214,932
165,000
249,486
-
-
-
72,249
-
-
-
-
-
-
-
321,539
9,672
-		 1,686,153
312,742
297,466		 297,466
-
(297,466)		 322,414
(322,414)
-		 2,627,572
-
-
331,211 2,296,361 - - 2,627,572

31

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2022

Analysis of expenditure (prior year)
the year ended 30 June 2022
Staff costs (Note 8)
Marketing costs
Major donor event
Emmaus International participation
Website development
Transfer of donations received on behalf of federation members
Support to federation members
Grants paid out of Companion Room Expansion Grant (Note 6)
Grants paid out of Community development Grant (Note 6)
Grant paid out of Community and Enterprise Loan Fund (Note 6)
Transfer of trust income received on behalf of federation
members
Other direct costs
National Assembly, Travel, Mobile phones and data cost
Trustee meetings, expenses, training and insurance
Premises and office administration
Financial processing and insurance, including audit fee
Recruitment
Other
Depreciation
Professional fees
Support costs
Governance costs
Total expenditure 2021		 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

32

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2022

e year ended 30 June 2022
Grant making (current year)
2022
£
-
-
310,000
-
310,000
-
100,000
30,000
-
35,000
165,000
-
10,000
-
19,000
-
39,000
-
-
-
-
-
-
-
50,000
-
-
-
-
51,486
40,000
40,000
-
249,486
724,486
Emmaus Bradford
The Emmaus UK Board issued the loan to Emmaus Bradford at 4% interest payable after March 2023.
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
At the end of the year
Cost
Emmaus Brighton
Emmaus Glasgow
Emmaus South Manchester
Emmaus Bolton
Grants made from Community and Enterprise Investment Loan Fund (formerly Emmaus Fund)
Emmaus Burnley
Interest due to social investors
Emmaus Mossley
Emmaus Brighton and Hove - grant awarded in prior year not fully spent
Emmaus Leeds
Emmaus Bradford
Emmaus Suffolk
Emmaus Suffolk
Emmaus Dover
Emmaus Bradford
Emmaus North Staffordshire
Emmaus Cornwall
Emmaus Sheffield
Emmaus Gloucestershire
Emmaus Cambridge
Emmaus Oxford
Emmaus Lambeth
Emmaus Norfolk
Emmaus Salford		 2022
£
-
-
310,000
-		 2021
£
223,443
-
-
-
223,443
(29,068)
-
-
34,000
(4,620)
165,000
-
10,000
-
19,000
-
39,000
-
-
-
-
-
-
-
50,000
-
-
-
-
51,486
40,000
40,000
-		 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
249,486 341,562
724,486 565,317

33

Emmaus UK

Notes to the financial statements

9

For the year ended 30 June 2022

This is stated after charging:

This is stated after charging:
2022 2021
£ £
Depreciation 6,917 6,725
Operating lease rentals payable:
Property 43,704 34,066
Auditor's remuneration (excluding VAT):
Audit 9,275 8,845
Other services 6,972 2,382

Staff costs were as follows:

Staff costs were as follows:
Other forms of employee benefits
Social security costs
Salaries and wages
Employer’s contribution to defined contribution pension schemes		 2022
£
920,378
77,126
45,585
24,684		 2021
£
953,170
76,158
47,057
34,879
1,067,774 1,111,264

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:

2022 2021
No. No.
£60,000 - £69,999 1 -

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £262,298 (2021: £287,280) as a consequence of the internal cover for maternity leave.

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2021: £nil). No charity trustee received payment for professional or other services supplied to the charity (2021: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £1045 (2021: £12) incurred by 8 (2021: 1) members relating to attendance at meetings of the trustees.

Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 34 (2021: 28).

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

Staff are split across the activities of the charity as follows (full time equivalent basis):
Raising funds
Support and governance
Charitable activities		 2022
No.
6.0
17.0
5.0		 2021
No.
5.0
18.0
5.0
28.0 28.0

34

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2022

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:

Emmaus Norfolk
Emmaus Mossley
Emmaus Glasgow
Emmaus Coventry
Emmaus Cambridge
Emmaus Hastings and Rother
Emmaus Leicester and Rutland
Emmaus Hampshire
Emmaus Gloucestershire		 2022
£
-
-
19,000
-
-
-
-
50,000
-		 2021
£
834
4,350
-
1,700
3,500
4,350
2,000
41,032
100,000
69,000 157,766

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 start of the year
Charge for the year
At the start of the year
Net book value
Cost
At the end of the year
Additions in year
At the end of the year
Depreciation
At the end of the year
At the start of the year		 Leasehold
improvements
£
6,245
-		 Fixtures and
fittings
£
49,180
-		 Computer
equipment
£
55,575
5,840		 Total
£
111,000
5,840
6,245 49,180 61,415 116,841
6,245
-		 48,655
525		 46,544
6,393		 101,444
6,918
6,245 49,180 52,937 108,362
- - 8,479 8,479
- 525 9,031 9,556

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
Loan issued in the year		 2022
£
422,070
(53,200)
-
310,000		 2021
£
696,198
(50,685)
(223,443)
-
678,870 422,070

The Investment Committee decides upon the interest rate charged; this can vary from nil, 1% or 4% on case by case basis. During 2021/22 loans of £52,000 for Emmaus Mossley and £20,000 for Emmaus Bradford were committed but not drawn down.

35

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2022

14 Debtors

For the year ended 30 June 2022
14
Debtors
15
Creditors: amounts falling due within one year
Accruals
Deferred income (note 16)
Trade creditors
Grants payable
Taxation and social security
Other creditors
Accrued income (including gift aid tax recoverable)
Trade debtors
Other debtors
Prepayments		 2022
£
54,385
983
54,404
34,435		 2021
£
42,654
4,628
43,016
30,537
144,207 120,834
2022
£
103,655
24,776
362,363
110,836
73,081
4,646		 2021
£
53,129
19,977
377,037
19,866
32,553
22,500
679,359 525,063

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
Tangible fixed assets
Net assets at 30 June 2020
Net assets at 30 June 2022
Social investments
Net current assets
Analysis of net assets between funds (current year)
Tangible fixed assets
Social investments
Net current assets
Analysis of net assets between funds (prior year)		 General
unrestricted
£
8,479
-
640,097		 Designated
£
-
678,870
2,544,767		 2022
£
22,500
(22,500)
4,646		 2021
£
15,000
(15,000)
22,500
4,646 22,500
Restricted
£
-
-
62,416		 Total funds
£
8,479
678,870
3,247,280
648,576 3,223,637 62,416 3,934,629
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

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

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

36

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2022

18a Movements in funds (current year)

e year ended 30 June 2022
Movements in funds (current year)
Note
Restricted funds:
c
d
ag
aj
ah
ap
ak
ai
g
i
k
l
m
n
o
Total restricted funds
Emmaus Hastings and Rother
Barratt Foundation
Emmaus Hampshire
Communities
Emmaus Bolton
Emmaus Colchester
John Laing Charitable Trust
Emmaus Dover
Emmaus Glasgow
Emmaus Gloucestershire
Base John Laing Charitable Trust BASE
Calypso Browning Trust
Aldo Trust
Anon
Alfred and Dorothy Shorney Memorial
Trust
Companion training fund
The Broyst Foundation
Anonymous
Ukraine appeal
Anonymous donor
Emmaus Greenwich
Emmaus South Manchester
Smallwood Trust
Persula Foundation
Emmaus Sheffield
Emmaus Village Carlton (Turvey)
Emmaus Bradford
Emmaus Cornwall
Emmaus Rugby
Emmaus Staffordshire
Emmaus Bristol
Emmaus Burnley
Emmaus Brighton & Hove (Sussex)
Emmaus Coventry & Warwickshire
The Freemasons' Grand Charity
Emmaus Preston
Emmaus Salford
Emmaus Hull & East Riding
Emmaus Lambeth
Emmaus Leeds
Emmaus Leicestershire and Rutland
Emmaus Merseyside
Emmaus Medway
Emmaus North East
Emmaus Mossley
Emmaus Oxford
Emmaus Norfolk and Waveney
Emmaus Cambridge
Emmaus Hertfordshire (St Albans)
Emmaus South Wales (Bridgend)
Affiliated Groups
Emmaus Suffolk (Ipswich)
Other restricted funds		 At 1 July 2021
£
-
84
1
6
1
-
-
-
-
-
-
103
26
166
-
-
1,211
-
-
1
-
750
-
-
10
33
88
289
453
1		 Income &
gains
£
8,287
4,138
1,807
3,993
38,557
3,430
9,136
862
11,089
7,583
4,142
11,330
5,271
3,562
6,318
5,318
13,703
4,662
4,077
-
7,020
11,452
4,664
8,912
5,809
6,528
3,246
278
6,988
9,564		 Expenditure &
losses
£
(8,227)
(4,138)
(1,688)
(4,018)
(37,530)
(3,425)
(8,838)
(862)
(11,029)
(7,643)
(4,102)
(11,130)
(5,271)
(3,692)
(6,318)
(5,518)
(13,838)
(4,642)
(4,102)
-
(7,060)
(11,452)
(4,664)
(9,052)
(5,994)
(6,548)
(3,216)
(278)
(6,788)
(9,564)		 Transfers
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 At 30 June
2022
£
60
84
120
(19)
1,028
5
298
-
60
(60)
40
303
26
36
-
(200)
1,076
20
(25)
1
(40)
750
-
(140)
(175)
13
118
289
653
1
3,220
100
-
101
13
-		 211,727
6,852
13,383
-
45
10,901		 (210,628)
(6,802)
(13,383)
-
(45)
(10,908)		 -
-
-
-
-
-		 4,319
150
-
101
13
(8)
215
-
6
-
-
500
-
1,058
-
2,657
2,000
-
-
-
-
-		 31,180
-
-
-
-
-
-
-
-
-
-
-
2,000
40,000
5,843
3,780		 (31,137)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 257
-
6
-
-
500
-
1,058
-
2,657
2,000
-
2,000
40,000
5,843
3,780
6,221 51,622 - - 57,843
9,652 294,529 (241,765) - 62,416

37

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2022

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

Note
m
n
p
q
u
v
al
am
an
ao
aq
w
x
y
ab
ac
ad
ag
ai
ah
Total designated funds
General funds
aa
Environment fund (Environment audit)
IT project
Companion room expansion grant
Emergency fund
Equipment for companions
Federation Health and safety
Safeguarding consultancy
Base Grants ( Emmaus UK)
Companion training fund
Community and Enterprise Investment
Loan Fund
Capacity development Grants
Strength based approach
Unrestricted funds:
Strategic plan
IT tender
Women's Group
Business planning and development
Total unrestricted funds
IT
infrastructure
and
digital
development
Mentoring, evaluation and reasearch
Fedration training, development and
wellbeing
Designated funds:
Recycling and environmental initiatives
Total funds		 At 1 July 2021
£
1,093,385
389,954
45,852
215,000
50,000
30,000
75,000
100,000
50,000
15,000
19,874
50,591
15,740
621,836
500,000
25,000
14,200
-
-
-		 Income &
gains
£
19,355
-
-
-
-
-
-
-
-
-
-
-
-
157,993
-
-
-
-
-
-		 Expenditure &
losses
£
-
(249,486)
(45,852)
(136,722)
(31,500)
(14,603)
-
-
-
-
-
-
(15,740)
(165,000)
-
-
(14,200)
-
-		 Transfers
£
-
500,000
-
48,357
-
34,602
138,839
-
(50,000)
(15,000)
-
-
-
(88,839)
(500,000)
(25,000)
-
75,000
90,000
200,000		 At 30 June
2022
£
1,112,740
640,468
-
126,635
18,500
50,000
213,839
100,000
-
-
19,874
50,591
525,990
-
-
-
75,000
90,000
200,000
3,311,433 177,348 (673,103) 407,959 3,223,637
329,519 2,439,720 (1,712,704) (407,959) 648,576
3,640,951 2,617,068 (2,385,807) - 3,872,213
3,650,605 2,911,596 (2,627,572) - 3,934,629

38

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2022

18b Movements in funds (prior year)

e year ended 30 June 2022
Movements in funds (prior year)
Note
Restricted funds:
Total restricted funds
Emmaus Colchester
The Freemasons' Grand Charity
Emmaus Brighton & Hove (Sussex)
Emmaus Burnley
Emmaus Village Carlton (Turvey)
Emmaus Mossley
Emmaus Suffolk (Ipswich)
Emmaus Leicestershire and Rutland
Affiliated Groups
Emmaus South Manchester
Emmaus Cambridge
Smallwood Trust
Emmaus Leeds
Anon
Emmaus Dover
Emmaus Glasgow
Emmaus Gloucestershire
Emmaus Hampshire
Emmaus Hastings and Rother
Emmaus Staffordshire
Emmaus Oxford
Emmaus Bradford
Aldo Trust
Emmaus Sheffield
Emmaus South Wales (Bridgend)
John Laing Charitable Trust
The Broyst Foundation
Other restricted funds
Base John Laing Charitable Trust BASE
Calypso Browning Trust
Anonymous donor
Beatrice Laing Trust
Persula Foundation
Anonymous
Emmaus Salford
Emmaus Hertfordshire (St Albans)
Emmaus Merseyside
Emmaus Preston
Emmaus North East
Emmaus Norfolk and Waveney
Emmaus Medway
Emmaus Hull & East Riding
Emmaus Lambeth
Emmaus Coventry & Warwickshire
Emmaus Bristol
Emmaus Greenwich
Communities
Emmaus Bolton
Emmaus Rugby
Emmaus Cornwall		 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
24,578		 162,250
538,060		 (183,686)
(569,842)		 -
16,858		 6,221
9,652

39

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2022

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

Note
Total designated funds
General funds
aa
Business planning and development
Safeguarding consultancy
Strength based approach
Designated funds:
Community and Enterprise Investment
Loan Fund
Base Grants ( Emmaus UK)
Companion room expansion grant
Total unrestricted funds
Total funds
Recycling and environmental initiatives
Companion training fund
Emmaus International
Environment audit
Strategic plan
Unrestricted funds:
Women's Group
IT tender
Federation emergency fund
Emergency fund
Equipment for companions
Federation Health and safety
Staff training
Capacity development Grants
IT project
Tablets for trustees
Training for Executive leaders peer		 At 1 July 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		 Income &
gains
£
42,947
-
-
-
-
-
-
-
-
-
-
-
-
-
-
105,683
-
-
-
-
-
-		 Expenditure &
losses
£
(213,579)
(341,562)
(54,148)
-
(10,000)
-
-
-
-
-
-
-
-
(4,409)
(57,002)
(311)
-
-
-
(75,800)
(2,604)
-		 Transfers
£
253,912
-
50,000
166,600
-
(25,000)
50,000
30,000
75,000
100,000
50,000
15,000
19,874
25,000
-
367,206
(80,000)
-
20,000
-
(2,396)
(25,000)		 At 30 June
2021
£
1,093,385
389,955
45,852
215,000
-
-
50,000
30,000
75,000
100,000
50,000
15,000
19,874
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

Charles Russell LLP contributed to the training fund for companions.

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.

Garfield Weston Foundation donated towards costs of the Companion Core Offer project.

Donation for Emmaus Norfolk and Waveney

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

40

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2022

e year ended 30 June 2022 e year ended 30 June 2022
Purposes of designated funds
p IT project Emmaus UK funded communities IT equipment and network development and
maintenance. In 2022-23, designated fund will contribute towards development
of CRM system and improving 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.
s Staff training Emmaus UK is committing toward staff professional development 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 communities
group 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

41

Emmaus UK

Notes to the financial statements

For the year ended 30 June 2022

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

The charity's total future minimum lease payments under non-cancellable operating leases is as
following periods		 follows for each of the follows for each of the
Less than one year 2022
2021
£
£
35,471
-
35,471
-
Property
35,471 -

20 Capital commitments

At the balance sheet date, the charity had nil capital commitments (2021: £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 residual legacy income value of £52,980 which will be recognised in accordance with the accounting policy in 2022/23 financial year.

42