EMMAUS OXFORD FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST, 2024 Company No. 3422350 Charity No. 1066618 EMMAUS OXFORD The trustees present their report and the financial statements ofthe charityfor the year ended 31 August 2024. Trustees, Report Auditors, Report Statement of Fina ncial Activities Balance Sheet Cash Flow Statement Notes to the Financi81 Statements Additional Information page page page page page page 14to 19 page 20 1to6 7t010 li The charity registration number is 1066618 and the company registration number is 3422350. The company is registered in England. Registered Off ice Emmaus Oxford 171 Oxford Road Cowley Oxford OX4 2ES The trustees who served duringthe year, and the dates of any appointments and resignations during the year, were as follows: A Hipkin E Mckay B. Moloney A Morgan-Giles N Rose D Maitland M O'sullivan M Hallam A Clark C Macfarlane lappointed 19 December2023} {appointed 02June 20241 {appointed 09 April 20241 {resigned 02 August 20241 {resigned 08 October 20241 {resigned 11 Sept 20231 Bankers Barclays Bank PLC PO Box 333 Auditors Gravita Audit Oxford LLP Park Central 40-41 Park End Street Oxford, OX1 1JD Structure, Governance and Management The organisation is a charitable company limited by guarantee, incorporated on 20 August, 1997. and registered as a charity. The company was incorporated under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association which were last amended on 1stJuly2012. The charity is administered bythe trustees, with day-to-day management responsibility delegated to the CEO. Edward Blaze. The organisation recruits new trustees from a combination of national advertisingthrough the Emmaus UK website and personal recommendation. The trustees have committed themselves to an open and inclusive engagement policy and all trustees are recruited and retained on the basis of the needs of the organisation and an objective assessment of the skills required. This assessment is carried out annually and is compared with a review of the skills and competencies of the trustees. Resource shortfalls are addressed bythe recruitment of further trustees and selective training provided to existing trustees. Risk M8n8gement The trustees have carried out a detailed review ofthe charity's activities and produced a comprehensive strategic plan setting out the major opportunities available to the charity and the risks to which it is exposed. The trustees monitor progress annually against the strategic objectives set out i n the plan. As part of their review, the trustees have implemented a risk management strategy which comprises.. 8 continuous review ofthe risks which the charity mayface,. establishing systems and procedures to mitigate those risks identified in the plan. and the implementation of procedures designed to minimise any potential impact on the charity should any of those risks materialise. The principal financial risks to the organisation remain its dependence on its two main income streams, the store and housing benefit which continue to be supplemented by generous donations from supporters. The second- hand furniture store has been expected to increase trading revenue substant1811y over the next few years. partlGularlythrough on-line sales, and whilst we have seen some incre8se in revenues, it has fallen short of expectations and so remains a particular focus. The organisation's long-term viability depends on this growth being achieved. The other main income stream is the Companions, housing benefitwhich will be subject to review as part of the government's ongoingwelfare reforms. The trustees are aware of their responsibilities to ensure compliance with all statutory legislation and the main areas considered are as follows: Charity law Company law Trustees, Act Data Protection Act & GDPR Disability Discrimination Act Employment and National Minimumwage laws WorkingTime Regulations Human Rights Act Race relations Health & Safety Office, Shops and Railway Premises Act Compliance with taxation regulations relatingto employees and donors Objectives of Emmaus Oxford The charity's objects are the alleviation of poverty and hardship, and distress arising therefrom. for those i n need, without distinction. The principal aim ofthe organisation is to provide accommodation, support, learning and development and work activity f or homeless persons, and to achieve the financial sustai nability necessary to underpin this by i ncreasing trading revenues and trading surpluses to supportthis Emmaus Community in Oxford. The charity has also received much-needed donations in support ofthe Community. Continuing contributions in the form of housing benefit and donations will be required in addition to the trading income. Achievements & Performance Emm8us Oxford continues to develop the Community and establish it on a sound basisforthe long term. There is generally a full complement of 28 Companions, with homeless people recruited when vacancies arise. The Charity continues to use 169 Oxford Road as a transitional facilityfor Companions seekingto 'move on. in the near f uture and the Charity is developing plans and fund-raising for an additional transitional facility at 167 Oxford Road. Key Companion outcomes were: 9 companions positively move on 5 Companions moved into employment Average length of staywas 2.75 years The Charity is also executing a strategy and focus on training and development this year. not only is this a core mission ofthe Charity. but it also recognises that in orderfor Companions to move on successfully, there is a need to build a wider range of skills a nd experience; we have developed a plan involving a mix of skills development a nd work experience outside of the social enterprise. Whilst it is too early to demonstrate clear outcomes, there are positive signs from the programme where Companions have been able to obtain good jobs on the back of specific skills training under the programme. We are excited to see a more formal review ofthis programmes outcomes in due course. Emmaus Oxford continues to grow its second-hand furniture retail operation. and other social enterprise activities, as a means whereby Companions can work and atthe same time generate funds to finance the on- going running of the Community. Sales of second-hand furniture and other goods were flat this year after several years of growth and there is a f ocus on this area of the social enterprise to re-establish its previous trajectory of growth by looking at on line and other related activities. Plans for the future Emmaus Oxford will seekto support and encourage all Companions to move-on to independent living as soon as they are able to, and has resources dedicated to assisting companions in making this transition. The f uture strategy is to increase the number of Companions or Aff iliates that can be supported by Emmaus Oxford and who may be potentially in external employment. The acquisition of 167 Oxford Road will be one ofthe elements which supports this strategy. Plans for developing 167 Oxford Road are underway. with construction works planned ahead of opening the new facility. Fundraising Emmaus Oxford is registered with the Fundraising Regulator and complies with their Code of Fundraising Practice. The charity received no complaints about its fundraising this year. All fundraising campaigns were run by one member of staff directly employed by Emmaus Oxford using communications by direct mail, email and social media. Emmaus Oxford is signed up to the Fundraising Preference Service. butthis year received no requests from this service. Supporters of Emmaus Oxford can elect. through the website. to receive the newsletter and have the opportunityto review and change their communication preferences similarlyfor all mass communications. Emmaus Oxford continues to apply its supporters. privacy policy and its ethical fundraising policy to maintain high standards in our fundraising. Both are available on the website. The ethical fundraising policy describes the steps it takes if offered 8 donation from someone who is potent1811yvulnerable and gives details on howto make a complaint about our fundraising. The privacy policy for supporters contai ns details on the steps the charity takes to protect supporters, data. In the year 2023-2024, ourfundraising continued to be successful, and Emmaus Oxford received strong support in the form of grants and donations. Equalityg diverslty and inclusion Emmaus Oxford wants to offer an environmentwhich invites and welcomes diversity amongst the staff, volunteers and companions. This year Emmaus Oxford tookthe following steps towards that goal: Appointed an'Equality and Inclusion Champion, from amongst the board of trustees Arranged for all staff to undertake mandatory training in Equality and Diversity Monitored equality and diversity within applicants and companions through an annual anonymous survey Encouraged applicants with lived experience of homelessness to applyfor paid and volunteer roles Introduced a new Domestic Abuse Policy and appointed a Domestic Abuse Champion from within the staff. Safeguarding and serious incidents Emmaus Oxford are committed to supporting the safety and wellbeing of our companions, many of whom have care and support needs. All staff undertake mandatorytraining in Safeguarding Adults Ilevels 1 and 21 and Safeguarding Children, with annual refresher courses. A Trustee Lead on Safeguarding has been appointed. Safeguarding is referenced and tested in recruitment. Emmaus Oxford reported no serious incidents to the Charity Commission duringthis year. Public Benefit Emmaus Oxford is committed to helping homeless people make a new start. The charity operates two community buildings which allow it to provide a home for a number ofthem. Overthe past 10 years it has accepted many homeless people as 'Companions' who are living in the Community and workingthere and at the second-hand furniture store. The charity provides affordable furniture and household goods in the second-hand furniture store for the general public, much of which might otherwise go into landf ill. The charity is therefore providing a public benefit in accordance with its objectives. The trustees have complied with their duty under Section 1715 of the Charities Act 2011 having regard to the guidance on public benefit issued by the Charity Commission. Financial Review The results for the year and the charity's f inancial position at the end of the year are shown in the attached financial statements. The trustees have adopted the provisions of the Statement of Recommended Practice {SORPI"Accounting and Reporting by Charities" in preparingthe annual report and financial statements ofthe charity. Reserves Policy The trustees review of the reserves of the charity encompassed the nature ofthe income and expenditure streams, the need to match variable income with fixed commitments, and the nature ofthe reserves. The review concluded that to allow the charityto be managed eff iciently, there is a requirement for £300,000 ofworking capital. In addition. the trustees want to ensure that compa nions have suff icient time in case of a severe issue and look to provide a bufferfor uninterrupted seNices, a general reserve, equating to around three months, expenditure1£300.0001. held in unrestricted funds, and not committed or invested in tangible fixed assets. The charity's total unrestricted reserves as of 31 August 2024 are 21,410,37212023: £1.260,4301. The balance of the unrestricted reserves is allocated to its long-term projectto provide further'move-on, accommodation for Companions who are readyfor more independence. This is estimated to require an investment of approximately £900,000, and so the charity is actively seekingfurther fundingfor'move-on, accommodation while retaining its contingency reserve and working capital. Investment Approach Emmaus Oxford's investment policy sets out the trustees, approach to investing. It is a frameworkfor making investment decisions, managing our f inancial resources, and meeting our governance responsibilities. The trustees will review the investment policy annually to ensure that it continues to align with the charitable mission and objectives. Emmaus Oxford will invest in a diversif led range of asset classes and regions. The trustees will consider investment in stocks, bonds. propety, and other investment vehicles that are not inconsistent with our charitable mission. The charity's investment objectives are to achieve growth and income. The trustees aim to generate sustainable returns that allow the charity to achieve its charitable objectives while protecting the capital value of its investments. The trustees recognize that every investment carries risk and will manage these risks to ensure that they are commensurate with the charity's objectives and the financial resources available. The risk appetite is determined to be moderate, but the trustees are willing to accept f luctuations in the value of the assets in pursuit of the investment objectives. The trustees will manage Emmaus Oxford's financial resources in li ne with its objectives, risk appetite, and investment policy. The amount available for i nvestment will be reviewed annually, and the trustees will adjust the investment strategy as necessary to ensure that the charity continues to meet its objectives. The trustees will ensure that the charity has suff icient liquidity to meet its financial commitments,. it will invest in liquid assets and maintain an appropriate level of cash reserves to ensure that it can have access to moneywhen needed. The trustees have a legal obligation to secure the best financial return, within the appropriate level of risk, to be spent on the cha rity's aims. They have a duty to consider investment suitability and diversif ication. to t8ke advice unless there is good reason for not doing so, and to review the investments periodically. Trustees, Responsibilities The trustees are responsible for preparing the annual report and f inancial statements in accordance with applicable law and regulations. Company law requires the trustees to prepare financi81 statements for each financial year. Underthat law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accountingstandards and applicable lawl. Under company lawthe trustees must not approve the financial statements unless they are satisfied thatthey give a true and fair view of the state of affairs of the charity and of the i ncomi ng resources and application of resources of the charity for that period. In preparing these f inancial statements the trustees are required to: select suitable accounting policies and then a pply them consistently. make judgements and accounting estimates that are reasonable and prudent. prepare the f i nancial statements on the goi ng concern basis unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with any reasonable accuracy at a ny time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of f raud and other irregularities. So far as the trustees are aware, there is no relev8nt audit information of which the charitable company's auditors are unaware, and each trustee has taken allthe steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the charitable company's auditors are aware ofthat information. This Report has been prepared in accordance with the small companies. regime underthe Companies Act 2006. Approved bythe trustees on the 24" February2025 Andrew Morgan-Giles Chairof Emmaus Oxford INDEPENDENT AUDITORS. REPORTTOTHE MEMBERS OF EMMAUS OXFORD We have audited the financial statements of Emmaus Oxford Ithe"Charity"I forthe year ended 31 August 2024 which comprise the Statement of Financial Activities, Balance Sheet, Cash Flow Statements and notes to the financial statements, including a summary of signif icant accounting policies. The f inancial reporting f ramework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102.. The Financi81 Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom GenerallyAccepted Accounting Practicel. In ouropinion. thefinancialstatements: give a true and fairview ofthe state ofthe Charity's affairs as at 31 August 2024 and of its income and expenditure fortheyear then ended- have been properly prepared in accordance with United Kingdom GenerallyAccepted Accounting Practice. have been prepared in accordance with the requirements ofthe Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those sta ndards are f urther described in the Auditor's responsibilities for the audit ofthe financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the f inancial statements in the UK, including the FRC'S Ethical Standard, and we have fulf illed our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is suff icient and appropriate to provide a basisfor our opinion. Conclusions relating to going concern In auditingthe financial statements, we have concluded thatthe trustees, use of the going concern basis of accounting in the preparation of the f inancial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relatingto events or conditions that. individually or collectively. may cast significant doubt on the charity's ability to continue as a going concern for a period of at least 12 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 trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. Our opinion on the financi81 statements does not cover the other information and, except to the extent otherwise explicitly stated in our report. we do not express anyform of assurance conclusion thereon. In connection with our audit of the f inancial statements, our responsibility is to read the other information and. in doing so, consider whether the other information is materially inconsistent with the f inancial statements, or our knowledge obtained in 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If. based on the workwe have performed, we conclude thatthere is a material misstatement of this other information. we are required to report that fact. We have nothingto 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 ofthe audit: the information given in the trustees, report (incorporating the directors. report) for the financial year for which the f inancial statements are prepared is consistent with the f inancial statements. and the trustees, report lincorporatingthe directors, report) have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light ofthe knowledge and understanding of the company and its environment obtained in the course of the audit. we have not identified material misstatements in the trustees. report. We have nothingto report in respect of the following matters in relation to which the Companies Act 2006 requires usto reporttoyou if. in our opinion: suff icient accounting records have not been kept. the financial statements are not in agreementwith the accounting records and returns: certain disclosures of trustees, remuneration specified by law are not made. or we have not obtained all the information and explanations necessaryforthe purposes of our audit. thetrustees were not entitled to take advantage of the small companies, exemptions in preparing the directors, report and from the requirement to prepare a strategic report. Responsibilities of the trustees As explained more f ully in the trustees, responsibilities statement [set out on page 51, the trustees are responsible f or the preparation of the financial statements and for being satisf led that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of f inancial statements that are free from material misstatement. whether due to fraud or error. In preparing the f inancial statements. the trustees are responsible for assessing the Charity'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 Charity or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the flnancial statements Our objectives are to obtain reasonable assurance about whetherthe financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's reportthat includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misstatements can arise f rom f raud or error and 8re considered material if. individually or in the aggregate. they could reasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements. Irregularities. including f raud, are instances of non-compliance with laws a nd regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including f raud. The extent to which our procedures are capable of detecti ng irregularities, including f raud is detailed below: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities. includingfraud and non-compliance with laws and regulations. was as follows.. the senior statutory auditor ensured thatthe engagementteam collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. we identif led the laws and regulations applicable to the charity through discussions with trustees and other management, and from our knowledge and experience. we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity,. We assessed the extent of compliance with the laws and regulations identified above through making enquiries of m8nagement' and identified laws and regulations were communicated within the auditteam regu18rly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of howfraud might occur, by: making enquiries of management as to where they considered there was susceptibilityto fraud. their knowledge of actual. suspected and alleged fraud. and considering the internal controls in place to mitigate risks of f raud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: performed analytical procedures to identify any unusual or unexpected relationships: tested journal entries to identify unusual transactions. assessed whetherjudgements and assumptions made in determiningthe accounting estimates were indicative of potential bias; and investigated the rationale behind signif icant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations. we designed procedures which included, but were not limited to.. agreeing financial statement disclosures to underlying supporting documentation; readingthe minutes of meetings of those charged with governance. and enquiring of management as to actual and potential litigation and claims. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are f rom f inancial tr8nsactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry ofthe trustees and other management and the inspection of regulatory and legal correspondence. if any. Material misstatements that arise due to fraud can be harder to detect than those that arise f rom error as they may involve deliberate concealment or collusion. A further description of our responsibilities is available on the Financial Reporting Council's website at: www.frc.org.uklauditorsresponsibilities. This description forms part of our auditor's report. Use of our report This report is made solelyto the Charity's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work h8s been undertaken so thatwe might state to the Charity'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 responsibilityto anyone otherthan the Charity's members as a body, for our audit work, forthis report, orforthe opinions we have formed. Gary Pready (Senior Statutory Auditor} For and on behalf of Gravita Audit Oxford LLP Istatutory Auditor) Park Central, 40-41 Park End Street, Oxford, OX11JD Date: 18 March 2025 10 EMMAUS OXFORD STATEMENT OF FINANCIAL ACTIVITIES Forthe year ended 31 August, 2024 Total Total 2023 Note unre8ir1￿ed RoStrl¢ted 2024 Unrestricle R88tricted Income Donations & Lega¢les 156,487 171,398 327,885 597,975 93.915 691.890 Othertrgclinga¢tivltles 2.710 2,710 Investrnent in¢om8 42,225 42,235 613,475 34,559 668,521 34,559 Charlt8ble activitie8- Furniture store 613,475 668,521 Housingb8nefit for Companions Other income- GIft￿d 287,002 42,317 267.002 257,302 257,302 54.342 42,317 54,342 Total Income 1,124,225 171,398 1,295,e24 1.612.699 93,915 1,706,613 expendltur6 RalsSngfunds 74,864 74,864 67.187 67,187 Eventscosts 3.103 3,103 2.928 2,926 Charitable activities 947.575 130,902 1,078,477 880,235 94.938 975,173 TotaLexpenditure 1.025.542 130.902 1,156.444 950,347 94,939 1.045,286 Net g8lnslllosseslon investments Net incotne lexpenditurelfor theyeei before transfers 4e,666 145.349 46,666 185,846 2,092 664.444 2,092 663,420 40,497 11.0241 Transfer of fund$frorn restrictedtounrestrlct Fund balanc88 Net mverrent Infunds 145.349 40,497 185,846 664,444 11,0241 663,420 Brought forwar(J at 1 Sept8mb8r, 2023 2.493,234 12.662 2,505.897 1.828,791 13,686 1,842,477 C8rried forw8rdat 31 August, 2024 2.638.584 53,159 2.691,743 2.493,234 12,682 2,505,897 EMMAUS OXFORD (Co number 3422350) BALANCE SHEET 31 st August 2024 Note8 2024 2023 Flxed Assets Leasehold Property Freehold Properly Equipment Motorvehicles 537,264 690,948 12,517 16,189 541,856 690,948 2.674 28.253 T8ngible assets Investment$ Intangible as8et$ 1,256,918 478,845 1.263,731 432,178 3&11 10 Totalfixèdasseis 1.735.763 1.695,909 Curreni assets C8sh at Bank 978.617 84.780 820,161 53,164 Debrors 12 1.043,396 873,326 Credltors due within one year 13 187.4161 163,3381 Net current a8sets 955,980 809.988 Totalassets 19¥5 current Ilabllltles 2.691.743 2,505,897 Credltor$ due after more than one year.'158e note 141 Net asset8 2.691,743 2,505.897 Funds Restrict8d funds 16 Unrestricted fundsldesignatedl 16.17 & 18 Unrestricted fund8lotherl 16 53.159 1.228.212 1,410.372 12.662 1,232.80A 1,260.430 Total charltyfunds 2,691.743 2,505.897 These accounts were approved and authorised for issue bythe directors on the24 February 2025 Andrew Morgan-Giles Chair of Emmaus Oxford EMMAUS OXFORD CASH FLOW STATEMENT Forthe year ended 31 August, 2024 2024 2023 Cash flows from operating actlvities: Net cash provided by lused inl operatingactiviti8s 130.235 207,471 Cash flow3 from Investlng activities: Dividends. interest and rontstrom invgstments Proceedsfrorrithe sale of property Proceedsfrom the sale of plant and equipment Purchase of property Purchase of plant and tsquipment Proceedsfrom sale ol investments Purchase ol investments Net cash provided by (used inl investingactivities 42.235 34.353 114,0151 12,6751 28.220 31,678 Resultant ¢8shfLow 158.455 239.149 Rgconcillatlon of net ineomellexpenditur•lto net cash flow Cash and cash equivalents at the beg'nning of the Reporting Period Cash and cash equivalents at the end of the ReportingPeriod Net cash inflowslloutflowsl 820.161 978,617 158,455 581.012 820.161 239,149 Rgconclllatlon of incomè to cashfiow Operatingcash flow intere* depreciation charges donated Investments gBins/llossesl on investments profitlllossl on the sale of fixed asset$ Increaselldecreasel in stocks Increase/ldecreasel in debtors Iln¢re8sel/decrease in ¢reditors Incomts wven in Statement ol Financial Activities 130,235 42,235 120.8281 207,471 34.353 120,5741 430.086 2,092 46,666 11.616 124.0791 185.845 2,022 7,970 663A20 AnaLysis of Cash and cash gquivaLents Cash in hand Notic8 deposits Iless than 3 months) Overdraft facility repayable on (Jemand Total cash and cash equivalents 978,617 820,161 978.617 820.161 Analysls of changes in nèt debt at start ¢osh flows other non-ca$h ehanges at end of year of year Cash Loansfallingdue within one year Loansfallingdu8 after one year Total 820.161 158,455 978,616 820.161 158A55 978,618 13 EMMAUS OXFORD NOTES TO THE FINANCIAL STATEMENTS Forthe year ended 31 August, 2024 ACCOUNTING POLICIES Basis of accounting The f ina ncial statements have been prepared under the historical cost convention, and in accordance with the Financial Reporting Standard 102 , the Companies Act 2006 and followthe recommendations in "Accounting and Reporting by Charities.. Statement of Recommended Practice IFRS 1021" Emmaus Oxford is a charitable company limited by guarantee. The charity is a public benefit entity. The registered address is 171 Oxford Road, Cowley, Oxford, OX4 2ES. b. Going Concern The accounts have been drawn up on a going concern basis. The charity meets its dayto day capital requirements through positive cash balances held on deposit. There are no m8terial uncertainties related to events or conditions which cast signif icant doubt on the charity's ability to continue as a going concern. Fund accounting Unrestricted funds comprise accumulated surpluses and deficits on general funds. They are available for use at the discretion of the trustees in furtherance of the general charitable objectives. Restricted funds are amounts for specific purposes as defined by the donor. The charity does not currently have any endowment funds or capitalfunds which have been transferred from restricted funds. d. Income Incoming resources represent the total income receivable during the year comprising sales from the second-hand furniture store, housing benefit for companions living in the Emmaus Community in Oxford. grants, donations and gifts, investment income and gifts in kind. All incoming resources are recognised at the point of receipt of monies except where earlier recognition is prudent, for example, investment income and monies from grants made in respect of the accounting period. Incoming resources are deferred where the conditions for receipt are not met at the end of the accounting period. Income from donated goods is recognised when those goods are sold because it is impractical to assess their value on donation. Expenditure Those costs which are directly attributable to diff erent functions of the charity are allocated as such. Thetrustees apportion aggregated costs in proportions which they consider to be 8 fair estimate of their f unctional division. Support costs are allocated to the charitable activities of operating the Emmaus Community in Oxford and the second-hand furniture store, based on an estimate of time spent by the staff concerned. Depreciation offixed assets and amortisation of goodwill Depreciation is provided to write off the cost of f ixed assets over their estimated usef ul lives using the following rates.. Freehold land and buildings Leasehold buildings Fixtu res, f ittings and equipment Motorvehicles NIL straight line - over the lifetime of the lease 250/0 Straight line 200/0 Straight line Assets are not capitalised unless the purchase cost or value assessed at acquisition is greater than £2,000. 14 Depreciation will be provided forthe leasehold superstore in Barns Road commencing in 2016-17. on a straight-line basis. £574,000 over 125 years. Pension costs Emmaus Oxford operates a defined contribution pension scheme and contributions are charged to the Statement of Financial AGtivities as they become payable. Investments Fixed asset investments are i nitially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised as other gains or losses and are included in net income/expenditure for the year. Transaction costs are expensed as incurred. 2. CRITICAL ACCOUNTING ESTIMATES In the process of applying the charity's accounting policies, the trustees make judgements and estimates. Thesejudgements and estimates are evaluated regularly and are based on historical experience and other factors including expectations of future events. The trustees consider there are no signif icant accounting judgments or estimates to report in this period. INVESTMENT INCOME 2024 2023 Bank interest Dividends receivable 12,076 30,159 7,286 27,273 Investment income total 42.235 34,559 Bank Intere* has been eerned on bank a¢¢ounts heldwithin th$ United Kingdom. 4. CHARITABLE ACTIVITIES Emmaus FuYnltur¢ Store Toial 2024 Emmaus Furniture Total Commvnlty Community Store 2023 Costs of activities undertaken dlrectly Indireci 8UPPQrt cost5 190,790 464,925 252,457 170,305 443.247 635.230 175.851 390,458 237.91 S 170,951 413,767 561,407 Totals 655,715 422,762 1.078.477 566,307 408.866 975.173 Emmaus Communlty Furniture Store Total 2024 Emm8US Furniture Store Total 2023 Community Actlvltles undertaken dir8etlyrepresent'. Salaries &wages- Note 8 Materials Vehicle runningcosts Expensesfor Companions 175.108 13,144 51,196 13,008 175,108 13,144 51.551 203.443 185,203 13,233 32.934 6.546 185.203 13.233 34.830 180.501 355 190.435 1,897 173,955 Totals 190.790 252,457 443,247 175.851 237.915 413,767 15 5. SUPPORT COSTS Emmaus Communlly Furniture Stor8 TotaL 2024 Emmaus Communlty Furniture Store Total 2023 Salaries & wages- Note 8 Expenses for volunteers Recruitment Advertising Marketing IT Travellingexpen8e8 Telephone Rent, rates & water Light & heat Printing, postage & stationery Other office costs Maintenance and repairs Oth6r premises costs Insurance Professional Fees Governance ¢osts- Note 6 Bankcharges Depreciation Amortisation Miscellaneous Totals 224,593 58,369 352 1,462 10.062 4,784 282,963 352 2,447 12.695 6.720 1,886 9.899 113.917 49.660 6.613 23.662 2,881 38,819 18,678 23.708 4.500 590 20.828 201,560 61.734 120 396 9,218 4,619 642 4,380 6.525 10.094 3.549 22.054 1.699 12,738 13.242 1,265 2,250 442 263,294 127 2,574 11.718 6.077 2,682 8.212 104.683 33.246 7.426 39,271 2,202 28,153 1 5,496 10.511 4.500 657 20.574 985 2.633 1,936 1,882 4,433 108,311 36,049 3.583 4.396 126 26,383 4,548 22.748 2.250 327 5.261 2,178 2,500 1.458 2,040 3,832 98,158 23.152 3.877 17,216 503 15,416 2,253 9.246 2,250 215 5.466 5.606 13,611 3.030 19,267 2,555 12,436 14,130 960 2.250 263 15.567 4.592 15.982 14.481 464.925 132 14.613 635.230 170.305 390,456 170.951 561.407 GOVERNANCE COSTS 2024 2023 Auditors, remuneration Auditors. account8ncyfee5 4,500 4,500 4,500 4,500 NET MOVEMENT IN FUNDS 2024 2023 The net movement in funds is stated after charging.. depreciation oftangible fixed assets owned by the charity 20,828 20,574 8. EMPLOYEES AND STAFF COSTS No. 14 The 8oregBte FTE number of ftJLI and part time personsemployed duringth8 y8arw8S= Staff costswere asfollows.. Dlrect cost$ G¥nèrating Furniturè Funds Store Support Cost5 Community Furniturè Store Total 2024 Total 2023 Salaries &WaEes National Insurance Pension contributions 67,160 5.050 2,654 158,659 11,390 5,058 201,480 15.151 7.963 52,886 3.797 1.686 480,185 35.389 17.361 464,891 33,582 17.212 Totals.. 2024 74,864 175,108 224.593 58.369 532.935 515.684 Totals.. 2023 67,187 185,203 201,560 61,734 No employee earned more than £60,000 in the year. 16 9. REMUNERATION OFTRUSTEES AND KEY MANAGEMENT In aggregate the trustees and key management received remuneration of £60.866fortheir services1£58.104 in 2022-231. 10. FIXED ASSETS Leasehold asset Flxtuies Flttings & Equlpment Motoi Vehlcles Fre¥hoLd Total Cost As at 1 September, 2023 Additions Disposals 574.000 690,948 10,987 14.015 88,827 1.364.762 14,015 As at 31 August, 2024 574.000 690.948 25,002 88,827 1.378.777 Depreclation at 1 September, 2023 Ch8rge for the year Disposals 32,144 4,592 8,313 4,172 60.574 12.064 101,031 20.828 As at 31 August, 2024 36.736 12,485 72,638 121,859 Net Book Valu8 As at 31 August, 2024 As at 31 August. 2023 537,264 541.856 690,948 690,948 12,517 2,674 16,189 28,253 1.256,918 1.263,731 Intangiblè assets Goodwill Amorrisation 15,800 15.800 Net bookv8lue as at 31 August, 2024 Net bookv81ue as 8t 31 August. 2023 Emmaus Oxford has granted a leasehold interest in the propety at 171 Oxford Road to Dominion Housing Group for 125 years. In return. Dominion Housing Group assisted in funding construction of the Community propety on the site. 11. INVESTMENTS Investmont Portfollo M & G Equities Investment Fund for Charities Initial valuation £430,086 Inve5tm$nt Summary Brought fDrward Additions Disposals Revaluation Carried forward £432,179 £46.667 £478,845 17 12. DEBTORS 2024 2023 Accrued interest on deposits VATrepayment Gift 8id reclaimed from HM Revenue & Custo Sundry deL)tors and prepayments Housi ng ben81it from Oxford City Council Donations 10,966 6,292 7,480 29,095 10,947 7,618 545 7,265 25,924 11.812 64.780 53,164 13. CREDITORS DUE WITHIN ONE YEAR 2024 2023 Taxes and social security Companion funds Trade creditors and accruals 23,217 64,199 25,751 37,587 87,416 63.338 14. CREDITORS DUE AFTER ONE YEAR None 15. SHARE CAPITAL Emmaus Oxford is a company limited by guarantee with no share capital. The liability of each member is limited to£1. 16. ANALYSIS OF NET ASSETS BETWEEN FUNDS Unrestrlcted Restricted Total Fixed assets 1.735,763 902,821 2,638.584 1,735,763 955,980 2,691.743 Net current assets 53,159 53,159 Creditors due after more than one year Net assets.. 2024 Net 8ssets'. 2023 2,638.584 2,493,234 53,159 12.662 2,691,743 2.505,897 In the year 2023-24, restricted donations were given to Emmaus Oxford to the value of £171,398. Afurther £53,159 has been carried forward to year 2024-25 from 2023-24, mainly related to facilities. Restricted funds amountingto a total of £12,662 were carried forward atthe end of 2022-23 (see note 171 In the year 2013-14, £289,000 was paid to Greensquare Group for the purchase and construction of the new furniture store, and a further £285,000 was paid in 2015-16, amountingto £574,000 in total. 18 17. ANALYSIS OF CHARITABLE FUNDS Analysis of Movement in R88tricted Funds Balance 1 Sept 2023 Funds 31 AuJ7USt 2024 Income Transfers Expenditure Facilities fund 5,500 49,709 3.990 51,219 Companion wellbeingfund 7,162 121,689 126,911 1,940 12,662 171,398 130,901 53.159 18. DESIGNATED FUNDS Designated funds are unrestricted funds which the trustees have set aside for particular purposes. The trustees have set up a designated fund equal to the net bookvalue ofthe charity's freehold and leasehold propety. 19. COMMITMENTS On 21st February. 2008 Emmaus Oxford entered into a management agreement with Dominion Housing Group in relation for a 125 year lease of 171 Oxford Road underwhich Emmaus Oxford has to payforthe use of the building. The amount currently payable is £74,300 per annum. The lease can be terminated by Emmaus Oxford by givingtwo ye8rs' notice. On 15 April. 2013 Emmaus Oxford entered into an Agreementfor Lease with Oxford City Housing Association Limited and Greensquare Group Limited for the grant of a lease to Emmaus Oxford of property at Barns Road, Oxford for a term of 125 years in consideration of a premium of £574.000. Isee Leasehold Asset in note 9 20. TRUSTEES Trustees were not reimbursed for expenses duringthe period and received no remuneration. Donations to the value of £120 were received from trustees and related parties in 2023-241£120 in 2022-231. No related party transactions took place in the year. 21. OTHER NOTES- PRIOR YEARS Grants from Emmaus UKto Emmaus Oxford. received in previous years. which amountto £140.000 in total, will be immediately refund8ble if Emmaus Oxford ceases. forwhatever reason. to be a Member ofthe Federation of Emmaus in the UK. The purchase ofthe freehold propety at 167. Oxford Road was completed on 3rd February 2022 for a total consideration of £490,000. 22. OTHER NOTES- CURRENTYEAR None EMMAUS OXFORD ADDITIONAL INFORMATION Forthe year ended 31 August 2024 2024 2023 Charitabia acllvltles Overall cost$ W8Ees, salaries, Employer's Nl & Pension Contributions Materials Vehicle running costs Comp8nions' allowances &food costs Volunteer expenses &training Recruitment Advert18ing Marketing IT Travelling expenses Telephone Rent, rates & water ght & heat Pri nting postaEe & stationery Other office costs Maintenance and repairs Other premises costs Insurance Professional Fees Bank charges Depreciation Amortisation Miscellaneous 458,071 13,144 51,551 203.443 352 448,497 13,233 34,830 180,501 127 2.447 12,695 6,720 1,886 9,899 113,917 49,660 6,613 23,662 2,681 38,819 18,678 23,708 590 2,574 11,718 6,077 2,682 8,212 104,683 33,246 7,426 39,271 2,202 28,153 15,496 10,511 657 20.828 20.574 14,613 1,073,977 970,673 Cost of generating f unds Fund-raising costs Salaries and Employer's Nation81 Insurance Event ch8rge8 74,864 3,103 77,967 67,187 2,926 70,112 Governance costs Audit and accountancyfees 4,500 4,500 20 EMMAUS OXFORD FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST, 2024 Company No. 3422350 Charity No. 1066618 EMMAUS OXFORD The trustees present their report and the financial statements ofthe charityfor the year ended 31 August 2024. Trustees, Report Auditors, Report Statement of Fina ncial Activities Balance Sheet Cash Flow Statement Notes to the Financi81 Statements Additional Information page page page page page page 14to 19 page 20 1to6 7t010 li The charity registration number is 1066618 and the company registration number is 3422350. The company is registered in England. Registered Off ice Emmaus Oxford 171 Oxford Road Cowley Oxford OX4 2ES The trustees who served duringthe year, and the dates of any appointments and resignations during the year, were as follows: A Hipkin E Mckay B. Moloney A Morgan-Giles N Rose D Maitland M O'sullivan M Hallam A Clark C Macfarlane lappointed 19 December2023} {appointed 02June 20241 {appointed 09 April 20241 {resigned 02 August 20241 {resigned 08 October 20241 {resigned 11 Sept 20231 Bankers Barclays Bank PLC PO Box 333 Auditors Gravita Audit Oxford LLP Park Central 40-41 Park End Street Oxford, OX1 1JD Structure, Governance and Management The organisation is a charitable company limited by guarantee, incorporated on 20 August, 1997. and registered as a charity. The company was incorporated under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association which were last amended on 1stJuly2012. The charity is administered bythe trustees, with day-to-day management responsibility delegated to the CEO. Edward Blaze. The organisation recruits new trustees from a combination of national advertisingthrough the Emmaus UK website and personal recommendation. The trustees have committed themselves to an open and inclusive engagement policy and all trustees are recruited and retained on the basis of the needs of the organisation and an objective assessment of the skills required. This assessment is carried out annually and is compared with a review of the skills and competencies of the trustees. Resource shortfalls are addressed bythe recruitment of further trustees and selective training provided to existing trustees. Risk M8n8gement The trustees have carried out a detailed review ofthe charity's activities and produced a comprehensive strategic plan setting out the major opportunities available to the charity and the risks to which it is exposed. The trustees monitor progress annually against the strategic objectives set out i n the plan. As part of their review, the trustees have implemented a risk management strategy which comprises.. 8 continuous review ofthe risks which the charity mayface,. establishing systems and procedures to mitigate those risks identified in the plan. and the implementation of procedures designed to minimise any potential impact on the charity should any of those risks materialise. The principal financial risks to the organisation remain its dependence on its two main income streams, the store and housing benefit which continue to be supplemented by generous donations from supporters. The second- hand furniture store has been expected to increase trading revenue substant1811y over the next few years. partlGularlythrough on-line sales, and whilst we have seen some incre8se in revenues, it has fallen short of expectations and so remains a particular focus. The organisation's long-term viability depends on this growth being achieved. The other main income stream is the Companions, housing benefitwhich will be subject to review as part of the government's ongoingwelfare reforms. The trustees are aware of their responsibilities to ensure compliance with all statutory legislation and the main areas considered are as follows: Charity law Company law Trustees, Act Data Protection Act & GDPR Disability Discrimination Act Employment and National Minimumwage laws WorkingTime Regulations Human Rights Act Race relations Health & Safety Office, Shops and Railway Premises Act Compliance with taxation regulations relatingto employees and donors Objectives of Emmaus Oxford The charity's objects are the alleviation of poverty and hardship, and distress arising therefrom. for those i n need, without distinction. The principal aim ofthe organisation is to provide accommodation, support, learning and development and work activity f or homeless persons, and to achieve the financial sustai nability necessary to underpin this by i ncreasing trading revenues and trading surpluses to supportthis Emmaus Community in Oxford. The charity has also received much-needed donations in support ofthe Community. Continuing contributions in the form of housing benefit and donations will be required in addition to the trading income. Achievements & Performance Emm8us Oxford continues to develop the Community and establish it on a sound basisforthe long term. There is generally a full complement of 28 Companions, with homeless people recruited when vacancies arise. The Charity continues to use 169 Oxford Road as a transitional facilityfor Companions seekingto 'move on. in the near f uture and the Charity is developing plans and fund-raising for an additional transitional facility at 167 Oxford Road. Key Companion outcomes were: 9 companions positively move on 5 Companions moved into employment Average length of staywas 2.75 years The Charity is also executing a strategy and focus on training and development this year. not only is this a core mission ofthe Charity. but it also recognises that in orderfor Companions to move on successfully, there is a need to build a wider range of skills a nd experience; we have developed a plan involving a mix of skills development a nd work experience outside of the social enterprise. Whilst it is too early to demonstrate clear outcomes, there are positive signs from the programme where Companions have been able to obtain good jobs on the back of specific skills training under the programme. We are excited to see a more formal review ofthis programmes outcomes in due course. Emmaus Oxford continues to grow its second-hand furniture retail operation. and other social enterprise activities, as a means whereby Companions can work and atthe same time generate funds to finance the on- going running of the Community. Sales of second-hand furniture and other goods were flat this year after several years of growth and there is a f ocus on this area of the social enterprise to re-establish its previous trajectory of growth by looking at on line and other related activities. Plans for the future Emmaus Oxford will seekto support and encourage all Companions to move-on to independent living as soon as they are able to, and has resources dedicated to assisting companions in making this transition. The f uture strategy is to increase the number of Companions or Aff iliates that can be supported by Emmaus Oxford and who may be potentially in external employment. The acquisition of 167 Oxford Road will be one ofthe elements which supports this strategy. Plans for developing 167 Oxford Road are underway. with construction works planned ahead of opening the new facility. Fundraising Emmaus Oxford is registered with the Fundraising Regulator and complies with their Code of Fundraising Practice. The charity received no complaints about its fundraising this year. All fundraising campaigns were run by one member of staff directly employed by Emmaus Oxford using communications by direct mail, email and social media. Emmaus Oxford is signed up to the Fundraising Preference Service. butthis year received no requests from this service. Supporters of Emmaus Oxford can elect. through the website. to receive the newsletter and have the opportunityto review and change their communication preferences similarlyfor all mass communications. Emmaus Oxford continues to apply its supporters. privacy policy and its ethical fundraising policy to maintain high standards in our fundraising. Both are available on the website. The ethical fundraising policy describes the steps it takes if offered 8 donation from someone who is potent1811yvulnerable and gives details on howto make a complaint about our fundraising. The privacy policy for supporters contai ns details on the steps the charity takes to protect supporters, data. In the year 2023-2024, ourfundraising continued to be successful, and Emmaus Oxford received strong support in the form of grants and donations. Equalityg diverslty and inclusion Emmaus Oxford wants to offer an environmentwhich invites and welcomes diversity amongst the staff, volunteers and companions. This year Emmaus Oxford tookthe following steps towards that goal: Appointed an'Equality and Inclusion Champion, from amongst the board of trustees Arranged for all staff to undertake mandatory training in Equality and Diversity Monitored equality and diversity within applicants and companions through an annual anonymous survey Encouraged applicants with lived experience of homelessness to applyfor paid and volunteer roles Introduced a new Domestic Abuse Policy and appointed a Domestic Abuse Champion from within the staff. Safeguarding and serious incidents Emmaus Oxford are committed to supporting the safety and wellbeing of our companions, many of whom have care and support needs. All staff undertake mandatorytraining in Safeguarding Adults Ilevels 1 and 21 and Safeguarding Children, with annual refresher courses. A Trustee Lead on Safeguarding has been appointed. Safeguarding is referenced and tested in recruitment. Emmaus Oxford reported no serious incidents to the Charity Commission duringthis year. Public Benefit Emmaus Oxford is committed to helping homeless people make a new start. The charity operates two community buildings which allow it to provide a home for a number ofthem. Overthe past 10 years it has accepted many homeless people as 'Companions' who are living in the Community and workingthere and at the second-hand furniture store. The charity provides affordable furniture and household goods in the second-hand furniture store for the general public, much of which might otherwise go into landf ill. The charity is therefore providing a public benefit in accordance with its objectives. The trustees have complied with their duty under Section 1715 of the Charities Act 2011 having regard to the guidance on public benefit issued by the Charity Commission. Financial Review The results for the year and the charity's f inancial position at the end of the year are shown in the attached financial statements. The trustees have adopted the provisions of the Statement of Recommended Practice {SORPI"Accounting and Reporting by Charities" in preparingthe annual report and financial statements ofthe charity. Reserves Policy The trustees review of the reserves of the charity encompassed the nature ofthe income and expenditure streams, the need to match variable income with fixed commitments, and the nature ofthe reserves. The review concluded that to allow the charityto be managed eff iciently, there is a requirement for £300,000 ofworking capital. In addition. the trustees want to ensure that compa nions have suff icient time in case of a severe issue and look to provide a bufferfor uninterrupted seNices, a general reserve, equating to around three months, expenditure1£300.0001. held in unrestricted funds, and not committed or invested in tangible fixed assets. The charity's total unrestricted reserves as of 31 August 2024 are 21,410,37212023: £1.260,4301. The balance of the unrestricted reserves is allocated to its long-term projectto provide further'move-on, accommodation for Companions who are readyfor more independence. This is estimated to require an investment of approximately £900,000, and so the charity is actively seekingfurther fundingfor'move-on, accommodation while retaining its contingency reserve and working capital. Investment Approach Emmaus Oxford's investment policy sets out the trustees, approach to investing. It is a frameworkfor making investment decisions, managing our f inancial resources, and meeting our governance responsibilities. The trustees will review the investment policy annually to ensure that it continues to align with the charitable mission and objectives. Emmaus Oxford will invest in a diversif led range of asset classes and regions. The trustees will consider investment in stocks, bonds. propety, and other investment vehicles that are not inconsistent with our charitable mission. The charity's investment objectives are to achieve growth and income. The trustees aim to generate sustainable returns that allow the charity to achieve its charitable objectives while protecting the capital value of its investments. The trustees recognize that every investment carries risk and will manage these risks to ensure that they are commensurate with the charity's objectives and the financial resources available. The risk appetite is determined to be moderate, but the trustees are willing to accept f luctuations in the value of the assets in pursuit of the investment objectives. The trustees will manage Emmaus Oxford's financial resources in li ne with its objectives, risk appetite, and investment policy. The amount available for i nvestment will be reviewed annually, and the trustees will adjust the investment strategy as necessary to ensure that the charity continues to meet its objectives. The trustees will ensure that the charity has suff icient liquidity to meet its financial commitments,. it will invest in liquid assets and maintain an appropriate level of cash reserves to ensure that it can have access to moneywhen needed. The trustees have a legal obligation to secure the best financial return, within the appropriate level of risk, to be spent on the cha rity's aims. They have a duty to consider investment suitability and diversif ication. to t8ke advice unless there is good reason for not doing so, and to review the investments periodically. Trustees, Responsibilities The trustees are responsible for preparing the annual report and f inancial statements in accordance with applicable law and regulations. Company law requires the trustees to prepare financi81 statements for each financial year. Underthat law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accountingstandards and applicable lawl. Under company lawthe trustees must not approve the financial statements unless they are satisfied thatthey give a true and fair view of the state of affairs of the charity and of the i ncomi ng resources and application of resources of the charity for that period. In preparing these f inancial statements the trustees are required to: select suitable accounting policies and then a pply them consistently. make judgements and accounting estimates that are reasonable and prudent. prepare the f i nancial statements on the goi ng concern basis unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with any reasonable accuracy at a ny time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of f raud and other irregularities. So far as the trustees are aware, there is no relev8nt audit information of which the charitable company's auditors are unaware, and each trustee has taken allthe steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the charitable company's auditors are aware ofthat information. This Report has been prepared in accordance with the small companies. regime underthe Companies Act 2006. Approved bythe trustees on the 24" February2025 Andrew Morgan-Giles Chairof Emmaus Oxford INDEPENDENT AUDITORS. REPORTTOTHE MEMBERS OF EMMAUS OXFORD We have audited the financial statements of Emmaus Oxford Ithe"Charity"I forthe year ended 31 August 2024 which comprise the Statement of Financial Activities, Balance Sheet, Cash Flow Statements and notes to the financial statements, including a summary of signif icant accounting policies. The f inancial reporting f ramework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102.. The Financi81 Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom GenerallyAccepted Accounting Practicel. In ouropinion. thefinancialstatements: give a true and fairview ofthe state ofthe Charity's affairs as at 31 August 2024 and of its income and expenditure fortheyear then ended- have been properly prepared in accordance with United Kingdom GenerallyAccepted Accounting Practice. have been prepared in accordance with the requirements ofthe Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those sta ndards are f urther described in the Auditor's responsibilities for the audit ofthe financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the f inancial statements in the UK, including the FRC'S Ethical Standard, and we have fulf illed our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is suff icient and appropriate to provide a basisfor our opinion. Conclusions relating to going concern In auditingthe financial statements, we have concluded thatthe trustees, use of the going concern basis of accounting in the preparation of the f inancial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relatingto events or conditions that. individually or collectively. may cast significant doubt on the charity's ability to continue as a going concern for a period of at least 12 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 trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. Our opinion on the financi81 statements does not cover the other information and, except to the extent otherwise explicitly stated in our report. we do not express anyform of assurance conclusion thereon. In connection with our audit of the f inancial statements, our responsibility is to read the other information and. in doing so, consider whether the other information is materially inconsistent with the f inancial statements, or our knowledge obtained in 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If. based on the workwe have performed, we conclude thatthere is a material misstatement of this other information. we are required to report that fact. We have nothingto 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 ofthe audit: the information given in the trustees, report (incorporating the directors. report) for the financial year for which the f inancial statements are prepared is consistent with the f inancial statements. and the trustees, report lincorporatingthe directors, report) have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light ofthe knowledge and understanding of the company and its environment obtained in the course of the audit. we have not identified material misstatements in the trustees. report. We have nothingto report in respect of the following matters in relation to which the Companies Act 2006 requires usto reporttoyou if. in our opinion: suff icient accounting records have not been kept. the financial statements are not in agreementwith the accounting records and returns: certain disclosures of trustees, remuneration specified by law are not made. or we have not obtained all the information and explanations necessaryforthe purposes of our audit. thetrustees were not entitled to take advantage of the small companies, exemptions in preparing the directors, report and from the requirement to prepare a strategic report. Responsibilities of the trustees As explained more f ully in the trustees, responsibilities statement [set out on page 51, the trustees are responsible f or the preparation of the financial statements and for being satisf led that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of f inancial statements that are free from material misstatement. whether due to fraud or error. In preparing the f inancial statements. the trustees are responsible for assessing the Charity'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 Charity or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the flnancial statements Our objectives are to obtain reasonable assurance about whetherthe financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's reportthat includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misstatements can arise f rom f raud or error and 8re considered material if. individually or in the aggregate. they could reasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements. Irregularities. including f raud, are instances of non-compliance with laws a nd regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including f raud. The extent to which our procedures are capable of detecti ng irregularities, including f raud is detailed below: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities. includingfraud and non-compliance with laws and regulations. was as follows.. the senior statutory auditor ensured thatthe engagementteam collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. we identif led the laws and regulations applicable to the charity through discussions with trustees and other management, and from our knowledge and experience. we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity,. We assessed the extent of compliance with the laws and regulations identified above through making enquiries of m8nagement' and identified laws and regulations were communicated within the auditteam regu18rly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of howfraud might occur, by: making enquiries of management as to where they considered there was susceptibilityto fraud. their knowledge of actual. suspected and alleged fraud. and considering the internal controls in place to mitigate risks of f raud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: performed analytical procedures to identify any unusual or unexpected relationships: tested journal entries to identify unusual transactions. assessed whetherjudgements and assumptions made in determiningthe accounting estimates were indicative of potential bias; and investigated the rationale behind signif icant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations. we designed procedures which included, but were not limited to.. agreeing financial statement disclosures to underlying supporting documentation; readingthe minutes of meetings of those charged with governance. and enquiring of management as to actual and potential litigation and claims. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are f rom f inancial tr8nsactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry ofthe trustees and other management and the inspection of regulatory and legal correspondence. if any. Material misstatements that arise due to fraud can be harder to detect than those that arise f rom error as they may involve deliberate concealment or collusion. A further description of our responsibilities is available on the Financial Reporting Council's website at: www.frc.org.uklauditorsresponsibilities. This description forms part of our auditor's report. Use of our report This report is made solelyto the Charity's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work h8s been undertaken so thatwe might state to the Charity'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 responsibilityto anyone otherthan the Charity's members as a body, for our audit work, forthis report, orforthe opinions we have formed. Gary Pready (Senior Statutory Auditor} For and on behalf of Gravita Audit Oxford LLP Istatutory Auditor) Park Central, 40-41 Park End Street, Oxford, OX11JD Date: 18 March 2025 10 EMMAUS OXFORD STATEMENT OF FINANCIAL ACTIVITIES Forthe year ended 31 August, 2024 Total Total 2023 Note unre8ir1￿ed RoStrl¢ted 2024 Unrestricle R88tricted Income Donations & Lega¢les 156,487 171,398 327,885 597,975 93.915 691.890 Othertrgclinga¢tivltles 2.710 2,710 Investrnent in¢om8 42,225 42,235 613,475 34,559 668,521 34,559 Charlt8ble activitie8- Furniture store 613,475 668,521 Housingb8nefit for Companions Other income- GIft￿d 287,002 42,317 267.002 257,302 257,302 54.342 42,317 54,342 Total Income 1,124,225 171,398 1,295,e24 1.612.699 93,915 1,706,613 expendltur6 RalsSngfunds 74,864 74,864 67.187 67,187 Eventscosts 3.103 3,103 2.928 2,926 Charitable activities 947.575 130,902 1,078,477 880,235 94.938 975,173 TotaLexpenditure 1.025.542 130.902 1,156.444 950,347 94,939 1.045,286 Net g8lnslllosseslon investments Net incotne lexpenditurelfor theyeei before transfers 4e,666 145.349 46,666 185,846 2,092 664.444 2,092 663,420 40,497 11.0241 Transfer of fund$frorn restrictedtounrestrlct Fund balanc88 Net mverrent Infunds 145.349 40,497 185,846 664,444 11,0241 663,420 Brought forwar(J at 1 Sept8mb8r, 2023 2.493,234 12.662 2,505.897 1.828,791 13,686 1,842,477 C8rried forw8rdat 31 August, 2024 2.638.584 53,159 2.691,743 2.493,234 12,682 2,505,897 EMMAUS OXFORD (Co number 3422350) BALANCE SHEET 31 st August 2024 Note8 2024 2023 Flxed Assets Leasehold Property Freehold Properly Equipment Motorvehicles 537,264 690,948 12,517 16,189 541,856 690,948 2.674 28.253 T8ngible assets Investment$ Intangible as8et$ 1,256,918 478,845 1.263,731 432,178 3&11 10 Totalfixèdasseis 1.735.763 1.695,909 Curreni assets C8sh at Bank 978.617 84.780 820,161 53,164 Debrors 12 1.043,396 873,326 Credltors due within one year 13 187.4161 163,3381 Net current a8sets 955,980 809.988 Totalassets 19¥5 current Ilabllltles 2.691.743 2,505,897 Credltor$ due after more than one year.'158e note 141 Net asset8 2.691,743 2,505.897 Funds Restrict8d funds 16 Unrestricted fundsldesignatedl 16.17 & 18 Unrestricted fund8lotherl 16 53.159 1.228.212 1,410.372 12.662 1,232.80A 1,260.430 Total charltyfunds 2,691.743 2,505.897 These accounts were approved and authorised for issue bythe directors on the24 February 2025 Andrew Morgan-Giles Chair of Emmaus Oxford EMMAUS OXFORD CASH FLOW STATEMENT Forthe year ended 31 August, 2024 2024 2023 Cash flows from operating actlvities: Net cash provided by lused inl operatingactiviti8s 130.235 207,471 Cash flow3 from Investlng activities: Dividends. interest and rontstrom invgstments Proceedsfrorrithe sale of property Proceedsfrom the sale of plant and equipment Purchase of property Purchase of plant and tsquipment Proceedsfrom sale ol investments Purchase ol investments Net cash provided by (used inl investingactivities 42.235 34.353 114,0151 12,6751 28.220 31,678 Resultant ¢8shfLow 158.455 239.149 Rgconcillatlon of net ineomellexpenditur•lto net cash flow Cash and cash equivalents at the beg'nning of the Reporting Period Cash and cash equivalents at the end of the ReportingPeriod Net cash inflowslloutflowsl 820.161 978,617 158,455 581.012 820.161 239,149 Rgconclllatlon of incomè to cashfiow Operatingcash flow intere* depreciation charges donated Investments gBins/llossesl on investments profitlllossl on the sale of fixed asset$ Increaselldecreasel in stocks Increase/ldecreasel in debtors Iln¢re8sel/decrease in ¢reditors Incomts wven in Statement ol Financial Activities 130,235 42,235 120.8281 207,471 34.353 120,5741 430.086 2,092 46,666 11.616 124.0791 185.845 2,022 7,970 663A20 AnaLysis of Cash and cash gquivaLents Cash in hand Notic8 deposits Iless than 3 months) Overdraft facility repayable on (Jemand Total cash and cash equivalents 978,617 820,161 978.617 820.161 Analysls of changes in nèt debt at start ¢osh flows other non-ca$h ehanges at end of year of year Cash Loansfallingdue within one year Loansfallingdu8 after one year Total 820.161 158,455 978,616 820.161 158A55 978,618 13 EMMAUS OXFORD NOTES TO THE FINANCIAL STATEMENTS Forthe year ended 31 August, 2024 ACCOUNTING POLICIES Basis of accounting The f ina ncial statements have been prepared under the historical cost convention, and in accordance with the Financial Reporting Standard 102 , the Companies Act 2006 and followthe recommendations in "Accounting and Reporting by Charities.. Statement of Recommended Practice IFRS 1021" Emmaus Oxford is a charitable company limited by guarantee. The charity is a public benefit entity. The registered address is 171 Oxford Road, Cowley, Oxford, OX4 2ES. b. Going Concern The accounts have been drawn up on a going concern basis. The charity meets its dayto day capital requirements through positive cash balances held on deposit. There are no m8terial uncertainties related to events or conditions which cast signif icant doubt on the charity's ability to continue as a going concern. Fund accounting Unrestricted funds comprise accumulated surpluses and deficits on general funds. They are available for use at the discretion of the trustees in furtherance of the general charitable objectives. Restricted funds are amounts for specific purposes as defined by the donor. The charity does not currently have any endowment funds or capitalfunds which have been transferred from restricted funds. d. Income Incoming resources represent the total income receivable during the year comprising sales from the second-hand furniture store, housing benefit for companions living in the Emmaus Community in Oxford. grants, donations and gifts, investment income and gifts in kind. All incoming resources are recognised at the point of receipt of monies except where earlier recognition is prudent, for example, investment income and monies from grants made in respect of the accounting period. Incoming resources are deferred where the conditions for receipt are not met at the end of the accounting period. Income from donated goods is recognised when those goods are sold because it is impractical to assess their value on donation. Expenditure Those costs which are directly attributable to diff erent functions of the charity are allocated as such. Thetrustees apportion aggregated costs in proportions which they consider to be 8 fair estimate of their f unctional division. Support costs are allocated to the charitable activities of operating the Emmaus Community in Oxford and the second-hand furniture store, based on an estimate of time spent by the staff concerned. Depreciation offixed assets and amortisation of goodwill Depreciation is provided to write off the cost of f ixed assets over their estimated usef ul lives using the following rates.. Freehold land and buildings Leasehold buildings Fixtu res, f ittings and equipment Motorvehicles NIL straight line - over the lifetime of the lease 250/0 Straight line 200/0 Straight line Assets are not capitalised unless the purchase cost or value assessed at acquisition is greater than £2,000. 14 Depreciation will be provided forthe leasehold superstore in Barns Road commencing in 2016-17. on a straight-line basis. £574,000 over 125 years. Pension costs Emmaus Oxford operates a defined contribution pension scheme and contributions are charged to the Statement of Financial AGtivities as they become payable. Investments Fixed asset investments are i nitially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised as other gains or losses and are included in net income/expenditure for the year. Transaction costs are expensed as incurred. 2. CRITICAL ACCOUNTING ESTIMATES In the process of applying the charity's accounting policies, the trustees make judgements and estimates. Thesejudgements and estimates are evaluated regularly and are based on historical experience and other factors including expectations of future events. The trustees consider there are no signif icant accounting judgments or estimates to report in this period. INVESTMENT INCOME 2024 2023 Bank interest Dividends receivable 12,076 30,159 7,286 27,273 Investment income total 42.235 34,559 Bank Intere* has been eerned on bank a¢¢ounts heldwithin th$ United Kingdom. 4. CHARITABLE ACTIVITIES Emmaus FuYnltur¢ Store Toial 2024 Emmaus Furniture Total Commvnlty Community Store 2023 Costs of activities undertaken dlrectly Indireci 8UPPQrt cost5 190,790 464,925 252,457 170,305 443.247 635.230 175.851 390,458 237.91 S 170,951 413,767 561,407 Totals 655,715 422,762 1.078.477 566,307 408.866 975.173 Emmaus Communlty Furniture Store Total 2024 Emm8US Furniture Store Total 2023 Community Actlvltles undertaken dir8etlyrepresent'. Salaries &wages- Note 8 Materials Vehicle runningcosts Expensesfor Companions 175.108 13,144 51,196 13,008 175,108 13,144 51.551 203.443 185,203 13,233 32.934 6.546 185.203 13.233 34.830 180.501 355 190.435 1,897 173,955 Totals 190.790 252,457 443,247 175.851 237.915 413,767 15 5. SUPPORT COSTS Emmaus Communlly Furniture Stor8 TotaL 2024 Emmaus Communlty Furniture Store Total 2023 Salaries & wages- Note 8 Expenses for volunteers Recruitment Advertising Marketing IT Travellingexpen8e8 Telephone Rent, rates & water Light & heat Printing, postage & stationery Other office costs Maintenance and repairs Oth6r premises costs Insurance Professional Fees Governance ¢osts- Note 6 Bankcharges Depreciation Amortisation Miscellaneous Totals 224,593 58,369 352 1,462 10.062 4,784 282,963 352 2,447 12.695 6.720 1,886 9.899 113.917 49.660 6.613 23.662 2,881 38,819 18,678 23.708 4.500 590 20.828 201,560 61.734 120 396 9,218 4,619 642 4,380 6.525 10.094 3.549 22.054 1.699 12,738 13.242 1,265 2,250 442 263,294 127 2,574 11.718 6.077 2,682 8.212 104.683 33.246 7.426 39,271 2,202 28,153 1 5,496 10.511 4.500 657 20.574 985 2.633 1,936 1,882 4,433 108,311 36,049 3.583 4.396 126 26,383 4,548 22.748 2.250 327 5.261 2,178 2,500 1.458 2,040 3,832 98,158 23.152 3.877 17,216 503 15,416 2,253 9.246 2,250 215 5.466 5.606 13,611 3.030 19,267 2,555 12,436 14,130 960 2.250 263 15.567 4.592 15.982 14.481 464.925 132 14.613 635.230 170.305 390,456 170.951 561.407 GOVERNANCE COSTS 2024 2023 Auditors, remuneration Auditors. account8ncyfee5 4,500 4,500 4,500 4,500 NET MOVEMENT IN FUNDS 2024 2023 The net movement in funds is stated after charging.. depreciation oftangible fixed assets owned by the charity 20,828 20,574 8. EMPLOYEES AND STAFF COSTS No. 14 The 8oregBte FTE number of ftJLI and part time personsemployed duringth8 y8arw8S= Staff costswere asfollows.. Dlrect cost$ G¥nèrating Furniturè Funds Store Support Cost5 Community Furniturè Store Total 2024 Total 2023 Salaries &WaEes National Insurance Pension contributions 67,160 5.050 2,654 158,659 11,390 5,058 201,480 15.151 7.963 52,886 3.797 1.686 480,185 35.389 17.361 464,891 33,582 17.212 Totals.. 2024 74,864 175,108 224.593 58.369 532.935 515.684 Totals.. 2023 67,187 185,203 201,560 61,734 No employee earned more than £60,000 in the year. 16 9. REMUNERATION OFTRUSTEES AND KEY MANAGEMENT In aggregate the trustees and key management received remuneration of £60.866fortheir services1£58.104 in 2022-231. 10. FIXED ASSETS Leasehold asset Flxtuies Flttings & Equlpment Motoi Vehlcles Fre¥hoLd Total Cost As at 1 September, 2023 Additions Disposals 574.000 690,948 10,987 14.015 88,827 1.364.762 14,015 As at 31 August, 2024 574.000 690.948 25,002 88,827 1.378.777 Depreclation at 1 September, 2023 Ch8rge for the year Disposals 32,144 4,592 8,313 4,172 60.574 12.064 101,031 20.828 As at 31 August, 2024 36.736 12,485 72,638 121,859 Net Book Valu8 As at 31 August, 2024 As at 31 August. 2023 537,264 541.856 690,948 690,948 12,517 2,674 16,189 28,253 1.256,918 1.263,731 Intangiblè assets Goodwill Amorrisation 15,800 15.800 Net bookv8lue as at 31 August, 2024 Net bookv81ue as 8t 31 August. 2023 Emmaus Oxford has granted a leasehold interest in the propety at 171 Oxford Road to Dominion Housing Group for 125 years. In return. Dominion Housing Group assisted in funding construction of the Community propety on the site. 11. INVESTMENTS Investmont Portfollo M & G Equities Investment Fund for Charities Initial valuation £430,086 Inve5tm$nt Summary Brought fDrward Additions Disposals Revaluation Carried forward £432,179 £46.667 £478,845 17 12. DEBTORS 2024 2023 Accrued interest on deposits VATrepayment Gift 8id reclaimed from HM Revenue & Custo Sundry deL)tors and prepayments Housi ng ben81it from Oxford City Council Donations 10,966 6,292 7,480 29,095 10,947 7,618 545 7,265 25,924 11.812 64.780 53,164 13. CREDITORS DUE WITHIN ONE YEAR 2024 2023 Taxes and social security Companion funds Trade creditors and accruals 23,217 64,199 25,751 37,587 87,416 63.338 14. CREDITORS DUE AFTER ONE YEAR None 15. SHARE CAPITAL Emmaus Oxford is a company limited by guarantee with no share capital. The liability of each member is limited to£1. 16. ANALYSIS OF NET ASSETS BETWEEN FUNDS Unrestrlcted Restricted Total Fixed assets 1.735,763 902,821 2,638.584 1,735,763 955,980 2,691.743 Net current assets 53,159 53,159 Creditors due after more than one year Net assets.. 2024 Net 8ssets'. 2023 2,638.584 2,493,234 53,159 12.662 2,691,743 2.505,897 In the year 2023-24, restricted donations were given to Emmaus Oxford to the value of £171,398. Afurther £53,159 has been carried forward to year 2024-25 from 2023-24, mainly related to facilities. Restricted funds amountingto a total of £12,662 were carried forward atthe end of 2022-23 (see note 171 In the year 2013-14, £289,000 was paid to Greensquare Group for the purchase and construction of the new furniture store, and a further £285,000 was paid in 2015-16, amountingto £574,000 in total. 18 17. ANALYSIS OF CHARITABLE FUNDS Analysis of Movement in R88tricted Funds Balance 1 Sept 2023 Funds 31 AuJ7USt 2024 Income Transfers Expenditure Facilities fund 5,500 49,709 3.990 51,219 Companion wellbeingfund 7,162 121,689 126,911 1,940 12,662 171,398 130,901 53.159 18. DESIGNATED FUNDS Designated funds are unrestricted funds which the trustees have set aside for particular purposes. The trustees have set up a designated fund equal to the net bookvalue ofthe charity's freehold and leasehold propety. 19. COMMITMENTS On 21st February. 2008 Emmaus Oxford entered into a management agreement with Dominion Housing Group in relation for a 125 year lease of 171 Oxford Road underwhich Emmaus Oxford has to payforthe use of the building. The amount currently payable is £74,300 per annum. The lease can be terminated by Emmaus Oxford by givingtwo ye8rs' notice. On 15 April. 2013 Emmaus Oxford entered into an Agreementfor Lease with Oxford City Housing Association Limited and Greensquare Group Limited for the grant of a lease to Emmaus Oxford of property at Barns Road, Oxford for a term of 125 years in consideration of a premium of £574.000. Isee Leasehold Asset in note 9 20. TRUSTEES Trustees were not reimbursed for expenses duringthe period and received no remuneration. Donations to the value of £120 were received from trustees and related parties in 2023-241£120 in 2022-231. No related party transactions took place in the year. 21. OTHER NOTES- PRIOR YEARS Grants from Emmaus UKto Emmaus Oxford. received in previous years. which amountto £140.000 in total, will be immediately refund8ble if Emmaus Oxford ceases. forwhatever reason. to be a Member ofthe Federation of Emmaus in the UK. The purchase ofthe freehold propety at 167. Oxford Road was completed on 3rd February 2022 for a total consideration of £490,000. 22. OTHER NOTES- CURRENTYEAR None EMMAUS OXFORD ADDITIONAL INFORMATION Forthe year ended 31 August 2024 2024 2023 Charitabia acllvltles Overall cost$ W8Ees, salaries, Employer's Nl & Pension Contributions Materials Vehicle running costs Comp8nions' allowances &food costs Volunteer expenses &training Recruitment Advert18ing Marketing IT Travelling expenses Telephone Rent, rates & water ght & heat Pri nting postaEe & stationery Other office costs Maintenance and repairs Other premises costs Insurance Professional Fees Bank charges Depreciation Amortisation Miscellaneous 458,071 13,144 51,551 203.443 352 448,497 13,233 34,830 180,501 127 2.447 12,695 6,720 1,886 9,899 113,917 49,660 6,613 23,662 2,681 38,819 18,678 23,708 590 2,574 11,718 6,077 2,682 8,212 104,683 33,246 7,426 39,271 2,202 28,153 15,496 10,511 657 20.828 20.574 14,613 1,073,977 970,673 Cost of generating f unds Fund-raising costs Salaries and Employer's Nation81 Insurance Event ch8rge8 74,864 3,103 77,967 67,187 2,926 70,112 Governance costs Audit and accountancyfees 4,500 4,500 20 Management letter to the Board of Trustees of Emmaus Oxford Gravita Audit Oxford LLP First Floor Park Central 40-41 Park End Street Oxford OX1 1JD T:01865 261100 www.gravita.com Year ended 31 August 2024 Page | 1 Management Letter 2024 **Contents Introduction .............................................................................................................................................3** Purpose of the document ...................................................................................................................... 3 Acknowledgements .................................................................................................................................. 3 Limitations ................................................................................................................................................ 3 **Executive Summary ..................................................................................................................................4** Further assistance .................................................................................................................................... 4 **Audit Status ..............................................................................................................................................5 Areas of Audit Focus .................................................................................................................................6 Audit differences ......................................................................................................................................7** Summary of adjusted differences from draft numbers provided by management ............................. 7 Summary of unadjusted differences in the final financial statements for approval ............................ 7 **Potential Control Weaknesses ...................................................................................................................8** Update on matters raised in previous reports ....................................................................................... 8 New matters arising in this year .............................................................................................................. 9 **Proposed Letter of Representation .......................................................................................................... 10 Other audit matters ................................................................................................................................ 11** Detailed comments on the financial statements and audit opinion ................................................... 11 Qualitative aspects of accounting practices ......................................................................................... 11 Judgements made by management ...................................................................................................... 11 Related parties ........................................................................................................................................ 11 Independence matters ........................................................................................................................... 11 Serious incident reporting...................................................................................................................... 11 **Current and future issues in the sector .................................................................................................... 12** Page | 2 Management Letter 2024 ## Introduction ## Purpose of the document In accordance with our normal practice and the International Standards on Auditing (UK) 260, we are writing to draw your attention to various matters which arose during the course of our audit of your financial statements for the year ended 31 August 2024. This letter includes an executive summary of the key findings below which are supported by the detailed sections thereafter. The purpose of the audit is to enable us to express an opinion on the financial statements. Our audit included consideration of internal controls relevant to the preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal controls. The matters reported are limited to those deficiencies that the auditor has identified during the audit and that the auditor has concluded are of sufficient importance to merit being reported to those charged with governance. Our audit included obtaining sufficient and appropriate audit evidence to support our opinion. We use a variety of audit techniques to obtain audit evidence, including tests of design of controls; analytical review; verification of specific transactions and balances; and third party verification. We also assessed the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our audit involved a risk-based approach and included an examination of evidence on a sample basis. Because of the sample nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, there is an unavoidable risk that some errors and material misstatements may remain undiscovered. Any errors and irregularity identified have been included within this report. ## Acknowledgements We would also like to take this opportunity of expressing our thanks to your staff for their assistance during the course of our audit. A substantial amount of preparation work was required in order to be fully ready for the audit and we appreciate the efforts of David, Eddie and Jeanne. ## Limitations Please note that this report has been prepared for the sole use of Emmaus Oxford and it must not be disclosed to third parties, quoted or referred to, without our prior written consent. No responsibility is assumed by us to any other person or entity. Page | 3 Management Letter 2024 ## Executive Summary We are pleased to attach our report and our key findings are summarised below. - Audit report outcome – unmodified. Page 11. - The number of audit adjustments identified and their impact. Page 7. - The number of potential control weaknesses identified and their significance. Page 8. - Any audit matters still outstanding with potential impact. Page 5. - Any specific points within the proposed letter of representation. Page 10. ## Further assistance Should Members of the Board of Trustees or management wish to ask any questions regarding the matters raised in this letter or if we can be of any further assistance, please contact Gary Pready. ## **Gary Pready** Responsible Individual Gary.Pready@gravita.com 01865 261132 **----- Start of picture text -----**
ail
**----- End of picture text -----**
Page | 4 Management Letter 2024 ## Audit Status Our audit is substantially complete. There have been no significant changes to our audit plan, dated 19 February 2024. The following matters are outstanding to be resolved prior to issuing our audit opinion: ||**Outstanding matter**|**Details**| |---|---|---| |1.|None|| Page | 5 Management Letter 2024 ## Areas of Audit Focus As detailed in our audit plan, dated 15 January 2025, we identified the following significant risk areas during our audit planning and have included a brief summary of the work carried out and our findings below. ||**Focusarea**|**Work carriedout**|**Conclusion**| |---|---|---|---| |1.
|Completeness of
Furniture Store
income/cash sales|A sample of transactions were vouched from
supporting documentation (daily till reports)
to the nominal ledger, with checks for any
significant cash discrepancies.|No issues noted on the
completeness of income.| |2.
|Ensuring restricted
income and expenditure
are allocated to the
correct fund|
A sample of income and expenditure items were
vouched to documentation to ensure that
conditions have been recognised.|Recognition accounted for
correctly and no issues noted
during testing.| |3.
|Related Party
Transactions|The related party transactions were
discussed, and the declarations of interest
and nominal ledger transactions were
reviewed for any related party transactions.|No undisclosed related party
transactions identified.| |4.
|Potential Management
override of controls
(required focus area for
all audits)|The controls in place at Emmaus Oxford were
discussed and documented. A sample of
transactions tested during the audit to ensure
there was no management override. We also
reviewed the significant judgements and
estimates made by management.|No management override of
controls identified from
testing.| Our audit procedures go beyond the above higher risk areas to cover material areas of the financial statements. No issues were noted during the procedures. Page | 6 Management Letter 2024 ## Audit differences In the normal course of an audit, we can identify misstatements in the financial data provided to us at the start of the audit. Where individual errors or their aggregation exceed our materiality level of £32,000 we are required to modify our audit report if they are not adjusted in the final financial statements. For the interest of board of trustees and management, we have summarised both the errors that have been corrected and those that have not. In accordance with ICAEW guidance on triviality limits for audit, we report all items exceeding 5% of the materiality, which for this year is £1,600. ## Summary of adjusted differences from draft numbers provided by management |No.|Descriptionof error||Impacton SOFA|Impact on| |---|---|---|---|---| |||||Balance sheet| ||||(£)|(£)| |1|Additional investment income|Accrued interest income||3,265| ||accrued|Investment income|3,265|| |2|Investment valuation adjustment|Investment value||6,743| |||Revaluation gain|6,743|| |3|Rental charge accrual|Accruals||(12,383)| |||Rent expense|(12,383)|| |4|Presentational adjustments|Bank interest|10,749|| |||Dividend income|(10,749)|| |||Trade creditors||1,926| |||Companion funds||(1,926)| |**TOTAL**|||**(2,375)**|**(2,375)**| Summary of unadjusted differences in the final financial statements for approval |No.|Descriptionof error||Impacton|Impact on|Reason for not| |---|---|---|---|---|---| ||||SOFA|Balance|amending| |||||sheet|| ||||(£)|(£)|| |1|Presentational|Bank||7,939|Presentation only;| ||Adjustment|Other creditors – Barclaycard||(7,939)|immaterial| |2|Costs of assets not|Premises expenses|4,427||Management| ||capitalised|Fixed asset additions||4,427|does not wish to| ||||||adjust, immaterial| |**TOTAL**|||**4.427**|**4.427**|| Page | 7 Management Letter 2024 ## Potential Control Weaknesses Your management is responsible for identification, assessment and monitoring of risk, and for developing, operating and monitoring the systems of internal control. Our audit procedures are designed primarily for the purpose of expressing an opinion on the financial statements and therefore do not constitute a full and detailed review of all aspects of the systems and controls and therefore cannot be relied upon to identify all actual and potential weaknesses. We have included a summary of the issues that we have identified below. ## Update on matters raised in previous reports |**Observation**|**Implications& risk**|**Recommendation**|**Management response**| |---|---|---|---| |We noted that several journals are being posted with blank
descriptions.|Errors in postings or incorrect transactions may be
easily missed. It is also more difficult to follow an
audit trail for transactions.|We recommend all transactions posted
to Sage have a description completed.|| |**2023 update:**Still significant numbers of transactions posted with no descriptions, though most journals posted with some description.
**2024 update:**Whilst there were still a small number of journals with blank descriptions, and many with just slip id numbers, as these can be traced to detailed petty cash slips, the matter is considered
closed|||| |We noted that the related party declarations do not list close
family members.|There is a risk undisclosed related party
transactions will be missed.|We recommend related party forms
include a list of all close family
members relationships of each trustee.|| |**2023 update:**Most of the declarations provided now include a section for the activities of the close family members, except for 3 trustees, although the full list of such members is still not included.
**2024 update:**Updated declaration forms now cover close family members, however several declarations had not been updated recently. We note that it is important that these are updated regularly
in order to ensure that potential conflicts of interest and related party interactions are acknowledged.|||| |We noted transactions in sage where credit card receipts for the
year were not received in the bank until after year end, but
these were not included as cash in transit. Whilst the values this
year were not material, cut-off had not been correctly applied.|There is a risk that cut off is not correctly applied.|We recommend that a review of after-
date bank transactions is completed in
order to identify any debtors or cash in
transit at the year end.|| |**2023 update**: This was still noted as occurring. We reiterate this point.
**2024 update:**Credit card receipts for the last few days of August and received in September were included in the bank account balance for the year, this matter is considered closed.|||| |We noted that there is no authorisation regarding use of the
credit card, and that the credit card is used, and transactions are
uploaded by the same person.|This may lead to the credit card being used for
purchases that are not within the charity’s objects
or best interests.|We recommend that credit card
statements are reviewed for
appropriateness when filing.|| |**2024 update:**We noted the same point this year. Whilst the credit card transactions are reviewed, the lack of segregation of duty leads to a potential control weakness.|||| |We noted that a legacy was accounted for when it arrived at the
bank and not when the charity was entitled to the funds.|There is a risk that the accounts don’t comply with
the Charities SORP recognition criteria on legacy
recognition.|We recommend that legacies are
recognised in the financial statements
when the charity is entitled to the
income, it can be reliably measured
and the income is probable.|| Page | 8 Management Letter 2024 |**2024 update:**Whilst no similar items were identified this year, we noted that the same procedure is still followed for the recognition of legacy income so this point is still applicable|**2024 update:**Whilst no similar items were identified this year, we noted that the same procedure is still followed for the recognition of legacy income so this point is still applicable|**2024 update:**Whilst no similar items were identified this year, we noted that the same procedure is still followed for the recognition of legacy income so this point is still applicable|**2024 update:**Whilst no similar items were identified this year, we noted that the same procedure is still followed for the recognition of legacy income so this point is still applicable| |---|---|---|---| |We noted that no reconciliation is performed when producing
quarterly VAT returns.|This may mean that VAT returns do not
appropriately reflect the status of the charity and
that amounts due to or from HMRC may be
incorrect.|We would recommend that VAT
reconciliations are regularly prepared.|| |**2024 update**: We noted that there was still no VAT reconiliations so we reiterate the above point.|||| |We noted that one trustee who had resigned after the year end,
and two trustees who had joined since the year end, had not
been appropriately included/removed from the Charity
Commission.|This may mean the data the commission holds on
the charity may be incorrect. One of the
responsibilities of trustees is to make sure the
charities commission details are up to date.|We would recommend that charities
commission details are updated as they
happen in the future.|| |**2024 update:**Charity Commission was appropriately updated this year, however one trustee was not removed as director on Companies House. Whilst this was likely due to the responsibility changing
handsinthe year,itisimportant that bothsites are updatedwhenchanges occur.|||| New matters arising in this year |**Observation**|**Implications& risk**|**Recommendation**|**Management response**| |---|---|---|---| |We noted that the investment valuation for the accounts was
taken from the value at 30thSeptember rather than at the end
of the year.|In order that the accounts reflect the resources
available to the charity at the date of the
accounts it is important that the accounts reflect
the value at the correct date|We recommend that the valuation as at 31
August is used.|| |We noted that the investment income for August was not
accrued for in the accounts.|Whilst the amount is not material, accounting for
the correct amounts in the correct period allows a
clearer understanding of the performance of the
investments|
We recommend that when notification of income
for the period August to October is received, the
income for august is accrued|| |We noted that no accrual was made for rental expenses not
invoiced at the year end. Whilst this was due to the rent
payable being disputed, an estimate should be included where
possible.|
If expense accruals are missing from the accounts,
the accounts will not reflect the resources used
during the year|
Accruals should be made for known expenses,
and estimates used where invoices are not
available|| Page | 9 Management Letter 2024 ## Proposed Letter of Representation In accordance with standard practice for such an audit and based on the work carried out to date, we will ask the board of trustees to approve and sign the attached letter of representation to accompany the signed final financial statements. We draw your attention to the specific representations contained within point 9, otherwise the letter is routine. The following are the specific representations included: - All restricted income has been correctly identified in the financial statements and all the other donations received in the year was for the general purposes of the charity. - Restricted fund balances are correctly shown in the financial statements. All the restricted funds have been appropriately utilised. - It continues to be impractical to assess the value of donated goods as at the time of the donation, consequently income from donated goods is only recognised when the goods are sold. - The expected useful economic life of the superstore building is 125 years and this is the appropriate period over which to depreciate it. - It is appropriate to allocate 25% of community staff costs to fundraising costs within the financial statements. - In relation to the contingent liability in respect of the Emmaus UK grants there is no intention or expectation that Emmaus Oxford will cease to be a member of the Federation of Emmaus in the UK in the foreseeable future. - The value of £74,300 for the yearly rent due to A2 Dominion is a reasonable estimate of the amount that will be charged - The £200,948 on the accounts for freehold property includes the land at both 169 and 171 Oxford Road Page | 10 Management Letter 2024 ## Other audit matters ## Detailed comments on the financial statements and audit opinion Based upon our work carried out to date, and subject to no significant events occurring prior to the signing of the audit report, we anticipate issuing an unmodified audit report in your statutory financial statements. ## Qualitative aspects of accounting practices We have no comments to make concerning the qualitative aspects of the Emmaus Oxford’s accounting practices and financial reporting, including accounting policies, accounting estimates and financial statement disclosures. ## Judgements made by management During the course of our audit we are required to review the main judgements or estimates made by management, which would have a material or significant impact on the financial statements. We have identified the following main judgement areas and our comments thereon. ## Depreciation of fixed assets The annual depreciation charge for fixed assets is sensitive to change in the estimated useful economic lives and residual value of assets. ## Accruals Accruals are based expected amounts due, calculated amounts using rates for companions, less amount used at the year end and managements knowledge of amounts outstanding that relate to the financial year not yet paid. These are compared to previous years accruals and unpaid invoices for completeness. ## Related parties The Charity is required to disclose all related party transactions, per the Charities SORP, within its financial statements. Other ## than an immaterial amount of Trustees’ donations no related party transactions were identified. ## Independence matters All Gravita Audit Oxford LLP must adhere to strict regulatory, professional and internal independence requirements related to investments or business relationships with clients. All staff must confirm such compliance on an annual basis. ## Serious incident reporting All trustees are responsible for identifying and reporting, in a timely fashion, any serious incidents to the Charity Commission, in accordance with their requirements for all registered charities. Whilst our audit scope does not specifically require us to identify any such matters, we report to the members that there were no such actual or potential matters that came to our attention. Page | 11 Management Letter 2024 ## Current and future issues in the sector We wish to draw your attention to the following items that may be of interest and we will be happy to discuss their impact on your specific situation in more detail. ## **Sector-wide landscape** The past couple of years have been extremely challenging for the charity sector. However, it’s not all doom and gloom – charity registrations have increased together with the number of adults volunteering, and 2023 was a record year for JustGiving donations to charities. 2024 could be an interesting year, potentially a challenging one, but there is some opportunity out there too. We expect some charities will unfortunately not survive whereas others will thrive despite the threat of recession. Some donors will benefit from national insurance cuts and income tax freezes. It will be increasingly important for charities to use their resources wisely to maximise their impact. The pending general election is postponing many decisions until the political landscape is known. It is more important than ever that the charity sector speaks out about the issues it faces – many voices increase the power of the messages, especially during what could be a very pivotal year. ## **Accounting and reporting** Although the impact of the revisions to FRS 102 (FRED 82) will not impact charity accounts until 2026 when we expect the new SORP to be effective. We have been made aware for some time of the notable changes arising from FRED 82 in relation to revenue and operating leases. There are also numerous other minor changes from FRED 82. Two which are worthy of note for charities are: _**Heritage assets -**_ Clearer guidance on when an asset is a heritage asset plus separate disclosure for heritage assets held by a lessee as a right-of-use asset. _**Related parties -**_ Amendments the disclosures regarding related parties which would require the amount of outstanding balances and commitments to be disclosed in addition to the terms and conditions and details of any guarantees given or received. Currently, the paragraph just requires the amount of outstanding balances, terms and conditions and guarantees given or received. ## **Refusing a donation** In exceptional circumstances the trustees of a charity may choose not to accept a donation in the best interests of a charity, for example, if it falls outside the scope of the charity’s objectives or would bring an unacceptable burden to the charity. In some circumstances trustees have a legal obligation to refuse donations such as those from illegal sources or those with illegal conditions, and therefore it is really important to know who your donations come from. Trustees must also refuse to accept donations from donors who lack the mental ability to donate or when the donor doesn’t actually own what is being donated. The Charity Commission has recently updated its guidance on the topic and includes some helpful steps on what to do next the trustees need to refuse a donation. Accepting, refusing and returning donations to your charity ## **Making changes to your governing documents** The Charity Commission has recently updated its guidance on making changes to governing documents. Trustees must only make changes to the governing documents - that are in the best interests of the charity Page | 12 Management Letter 2024 - follow the right rules to make the changes - have received Charity Commission authority before certain changes can take effect such as changing the charity’s purpose, allowing connected individuals to benefit from the charity and deciding where the charity’s money or property goes on wind-up. Trustees should also keep a record of any information or evidence they have used to make the decision and, where appropriate, consult the charity’s members, beneficiaries and other stakeholders about the change being made. Don’t forget to tell Companies House/Charity Commission about all the changes you make to your governing documents. ## Charitable companies: changing your governing document ## **What can you pay trustees for?** Trusteeships are voluntary positions and are therefore unpaid. However, trustees are entitled to claim reasonable expenses in performing the role of trustee. Only in exceptional circumstances should a trustee be paid for being a trustee. Charities can now pay trustees for the supply of goods and services providing their personal interests do not conflict with their duty to act in the interests of the charity and that the governing documents do not prohibit it. If a charity decides to employ a trustee in a role within the charity, it must firstly ensure that the governing documents allow for this type of arrangement, and if not, the Charity Commission or the Courts should be approached. In all these decisions, the trustees should assess any potential risks, carefully manage any conflicts arising and ensure the appropriate policies are in place. It’s also important for trustees to be open and transparent about such arrangements. More information can be found at Trustee expenses and payments ## **Charity mergers** Merging two charities can be beneficial for many reasons including: - cost savings - complementary service offerings - reduce duplication - wider impact - reduce administration - increased bargaining power - additional skill sets - learning from each other’s knowledge and experience A merger will involve two separate legal entities combining to form one charity under one governing document and one trustee body for the future. In practical terms, one charity will transfer its assets and liabilities into the other charity which is the charity that is retained for the future. Good planning will help you achieve a good merger. There are also a huge number of areas to consider and deal with as part of the merger. You may also need to gain the Charity Commission’s permission to merge. More guidance is available at How to merge charities. ## **Changing charity structures** Page | 13 Management Letter 2024 As charities grow, they may want to employ staff or enter into contracts and the existing charitable structure may be a hindrance to this. Charities may consider changing their structure to accommodate this growth – typically changing from an unincorporated charity to either a CIO or incorporated charity/charitable company. The trustees first need to decide to make the change in the best interest of the charity. It is also important to consult the Charity Commission to gain their permission. Detailed guidance is available at Change your charity structure ## **Charities Act 2022 changes – phase 3** On 7 March 2024 the latest Charities Act 2022 came into force. These changes cover the following area: Guidance making it easier for unincorporated charities to change their governing documents, making it consistent with changing governing documents for other types of entities. New rules about gifts left to charities that have merged mean gifts such as legacies will be passed onto the merged charity. Selling, leasing and otherwise disposing of charity land provisions were due to come into force in June 2023 but have been postponed until now. These include changes about what must be included in statements and certification for both disposals and mortgages and exemptions for liquidators, receivers, and administrators from having to comply with the restrictions on dispositions and mortgages. ## **Charity Commission strategy 2024-2029** On 26 February 2024 the Charity Commission issued its 5 year strategy focusing on fairness, balance, independence, digital and data, and people, set within the context of its statutory remit, functions and powers. Charities will need to be dynamic over the next 5 years to deal with an ever-changing world, and demonstrate resilience both in their leadership and in their finances. The Charity Commission is there to support this and to promote trusteeships as an attractive proposition. To add context: - Charity sector income - £89.85 billion - Charity sector spend - £87.53 billion - Number of charities on the register – 169,255 - Number of trustee positions filled – 921,924 - Nearly half of the charities on its register (75,520) have an income below £10,000, equalling £188.2 million - Two thirds of the income of the sector comes from the public, as donations, legacies, and other charitable activities - £58.4 billion The Charity Commission has set out its priorities as - 1) We will be fair and proportionate in our work and clear about our role. 2) We will support charities to get it right but take robust action where we see wrongdoing and harm. Page | 14 Management Letter 2024 3) We will speak with authority and credibility, free from the influence of others. 4) We will embrace technological innovation and strengthen how we use our data. 5) We will be the expert Commission - where our people are empowered and enabled to deliver excellence in regulation. ## **Charity Commission’s new CEO** David Holdsworth has been appointed as the next Chief Executive of the Charity Commission for England and Wales and will take up his role on 1 July 2024, succeeding Helen Stephenson whose seven year’s term comes to an end this summer. David returns to the Charity Commission having previously served as Deputy Chief Executive and Registrar, having led the Commissions data handling, digital capability and risk assessment. ## **Budget and charities** The Chancellor set out his budget on 6 March 2024, but there was little good news for charities. It is helpful that income tax hasn’t been reduced for charities as this preserves the level of gift aid that can be claimed. Class 1 National Insurance will decrease from 10% to 8% which helps with household disposable income. The VAT threshold will increase from £85,000 to £90,000 which should reduce the number of charities (and their trading subsidiaries) needing to register for VAT. There was however no change to VAT partial exemption rules meaning many charities cannot reclaim their full input VAT. ## **Companies House reform – charitable companies** The Economic Crime and Corporate Transparency Bill received Royal Assent in October 2023 and became the Economic Crime and Corporate Transparency Act 2023 (ECCTA). Through this, the UK Government is reforming how and what companies report to Companies House. This legislation widens the powers of the Registrar of Companies House and aims to improve the quality of data held. The legislation introduces: - identity verification for all new and existing registered company directors, people with significant control and those who file on behalf of companies; - wider powers for Companies House to become a more active gatekeeper over company creation and a custodian of more reliable data; - improved financial information on the register so that the register is more reliable and accurate, reflects the latest digital advancements and enables better business decisions; - more effective investigation and enforcement powers along with increasing the ability to share relevant information with partners; and - enhanced protection of personal information from fraud and other harms. Currently there is no timetable set for implementing these changes. However, it’s expected that the following changes will be implemented in 2024: - increased powers for Companies House to query information; • more robust checks on company names; Management Letter 2024 Page | 15 - new rules for registered office addresses meaning all companies must have an appropriate address at all times. The use of a PO Box as their registered office address will be prohibited; - a requirement for all companies to supply a registered email address; - a requirement to confirm the company is being formed for a lawful purpose on incorporation and an annual confirmation that its future activities will be lawful on their confirmation statement; - annotations on the register about potential issues with the information that has been supplied; - taking steps to clean up the register and the use of data matching to identify and remove inaccurate information; and sharing data with other government departments and law enforcement agencies. Page | 16 Management Letter 2024