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2021-06-30-accounts

Charity Registration No. 1067483

Company Registration No. 03489376 (England and Wales)

EMMAUS GLOUCESTERSHIRE

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

EMMAUS GLOUCESTERSHIRE

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr M. Heap
Mr M. Hudson
Ms A. Beddoes
Mr N. Mantle
Mr C. Thomas
Mrs M. Cheeseman (Appointed 30 March
2021)
Secretary Mr J. Feeley
Charity number 1067483
Company number 03489376
Principal address Chequers Road
Gloucester
GL4 6PN
Auditor Pitt Godden & Taylor LLP
Unit 3 Ambrose House
Meteor Court
Barnett Way
Barnwood
Gloucester
GL4 3GG
Bankers Lloyds TSB Bank plc
High Street
Cheltenham
GL50 1EW
CAF Bank Limited
25 Kings Hill Avenue
Kings Hill
West Malling
Kent
ME19 4JQ

EMMAUS GLOUCESTERSHIRE

CONTENTS

Page
Trustees' report 1 - 4
Statement of trustees' responsibilities 5
Independent auditor's report 6 - 8
Statement of financial activities 9
Balance sheet 10
Statement of cash flows 11
Notes to the financial statements 12 - 21

EMMAUS GLOUCESTERSHIRE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 JUNE 2021

The Trustees, who are also directors of the charity for the purposes of the Companies Act, submit their annual report and the audited financial statements of Emmaus Gloucestershire (the charity) for the year ending 30 June 2020.

The Trustees confirm the annual report and financial statements of the charity comply with current statutory requirements, the requirements of the charity’s governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice” applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Our Vision and Mission

Our Vision is a world in which everyone has a home and a sense of belonging.

Our Mission is to work together to overcome homelessness and social exclusion while using our voice to achieve social change.

Objectives and activities

In setting objectives and planning for activities, the Trustees have given due consideration to guidance published by the Charity Commission relating to public benefit, and in particular to its supplementary public benefit guidance.

The objects of the charity are the alleviation of homelessness and relief of poverty, hardship and the distress they cause to those in need. The objects are specifically restricted to the alleviation and relief of poverty, hardship and distress arising therefrom, in conformance with the principles of the Emmaus Movement as published from time to time by Emmaus UK, to those in need without distinction by:

The provision of accommodation, or assistance in such provision, for homeless people in the Gloucestershire area and such other places as may seem appropriate from time to time (the beneficiaries).

The rehabilitation of the beneficiaries as appropriate and the provision of education, training (including, without limitation, employment training) and work opportunities and satisfaction for the beneficiaries with the purpose of developing their skills to enable them to gain employment in the future and thereby develop a sense of self -worth and dignity through having a self-supporting life.

The support of the work of other Emmaus Communities and Emmaus Groups or other agencies in the relief of poverty and homelessness whether in the United Kingdom or elsewhere in the world and in particular (without limitation) by the exchange of resources, information and expertise with other Emmaus Movement projects worldwide.

The fulfilling of such other purposes as may from time to time be recognised by English Law as being charitable and which the Charity shall from time to time determine.

Approach to achieving Charitable objects

Emmaus Gloucestershire provides a home, 40 hours of meaningful activity in our social enterprise each week, training and support for previously homeless or socially excluded individuals, known as ‘Emmaus companions’. An unemployed, homeless or vulnerably housed person becomes a companion upon joining Emmaus Gloucestershire as a resident. Companions work together with volunteers and employees collecting, upcycling and selling donated goods in our five retail outlets. All companions have the opportunity to gain new skills and experiences in a working enterprise and, most importantly, regain self-respect, esteem and purpose whilst working to support others in greater need than themselves.

Emmaus Gloucestershire currently offers 26 bed spaces for companions. Companions sign off primary benefits and receive accommodation, food, clothing, a weekly allowance, resettlement support and access to structured support and personal development.

Opportunities are provided to gain new skills, undergo training and work as part of a team to achieve personal goals, contribute to the success of the business activities and provide assistance to others who are in need.

EMMAUS GLOUCESTERSHIRE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

Achievements and performance

The ongoing Covid-19 pandemic during 2021-2 and the resulting government restrictions has made this financial year very challenging for everyone.

Firstly, and most importantly all of our companions are safe and in remarkably good spirits given their freedoms and ability to engage fully in the running of our social enterprise has been severely limited.

None of our companions have contracted Covid-19 whilst within the community.

The work of all employees, but in particular the support staff and Chief Executive made a significant contribution maintaining the well-being of all in our Community. A special acknowledgement should be made to the continued contributions made by our volunteers whose collective and individual efforts helped keep our shops trading when permitted by government regulations.

Emmaus Gloucestershire has continued to learn many lessons from Covid-19. At an operational level these have been documented and actions implemented to make improvements to the future well-being of Companions and employees as we progress through the pandemic.

At a strategic level it has emphasised the imperative to diversify our income streams away from High Street Retail and in so doing increase the range of skills and activities available to the Companions.

Financial review

The total income for year ending 30 June 2021 was £872,563 which was £251,018 less than the income for the previous year.

The total expenditure for year ending 30 June 2021 was £796,366 which was £104,885 less than the expenditure for the previous year.

The net surplus for the year to 30 June 2021 was £76,197 which was £146,133 less than the previous year.

This operational surplus represents 8.7% of total income which compares favourably with similar organisations during this period. This is an exceptional financial result given that many High Street retailers ceased trading or made losses during this period.

Reserves

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a minimum of three months expenditure (at current expenditure levels this equates to £199,092).

At the renewal of our business continuity insurance (which included pandemic insurance up to £250,000) we were advised this was withdrawn. Trustees took a decision to self-insure and set aside £250,000 designated for this purpose.

While the level of reserves held currently far exceeds this level, the trustees are conscious that one of their properties is going to require some major investment in the near future and the need to diversify income to reduce the reliance on High Street retail and the surplus funds will be vital when the time arrives. The pandemic and its economic impacts have tested the financial resilience of many businesses; our healthy reserves give us the confidence that Emmaus Gloucestershire will emerge from the pandemic in a strong financial position. This will allow us to adjust to changes needed to succeed in the changed economic environment.

Operational performance

Emmaus Gloucestershire generated 50% of its income through its social enterprise business in 2020/21. The remainder 16% came from housing benefit, 34% from general donations, grants and legacies.

During the year 9894 daily bed spaces were provided. 1460 daily bed spaces were set aside on a solidarity basis (for which no housing benefit was claimed).

EMMAUS GLOUCESTERSHIRE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

Risk management

Trustees have in place risk management procedures, policies and a risk register which aims to manage and mitigate foreseeable risks that the charity might face.

The risk register is used as a dynamic tool by the management team. It is reviewed regularly by all Committees and the Board of Trustees. The chief executive has overall responsibility for monitoring the risks and ensuring appropriate and timely mitigations are put in place.

Good risk management is not about paperwork and expansive risk registers it is about a contemporary thorough knowledge of the business and wider environment it operates in. Early identification of the threats and timely responses are crucial to mitigating or avoiding threats.

Solidarity

The Emmaus movement established by Abbé Pierre was founded on the concept of “Solidarity” - this means helping and working for others who are less fortunate than ourselves. Solidarity works at three levels: local, national and international. Emmaus Gloucestershire contributes at each of these levels with companions, volunteers, staff and Trustees all being involved. These contributions are not only financial but also include sharing, expertise, experience, moral support and encouragement.

Unfortunately Covid-19 has had a severe impact on activities in this area as restrictions locally, nationally and internationally have curtailed many activities, where possible donations to Solidarity have continued.

Financially our solidarity support for 2020/21 is set out below:

Local
Soup run in Gloucester £3,269
Listening Post £2,000
National
Emmaus UK Membership £4,894
International (including Europe)
Membership of Emmaus International and Europe £16,039
International Sale Day £2,041
Total Solidarity: £28,243

Future plans

The new structure for the support team is agreed and implemented apart from one post that is vacant due to the Covid-19 pandemic. The outcomes as reported by Companions are significantly improved support to them.

Emmaus UK have agreed a revised UK 5-year strategy, we were part way through developing a new strategy when Covid-19 struck. The very important lessons from Covid-19 and the accelerated decline of the High Street retail market will inform the strategy for taking Emmaus Gloucestershire forward over the next ten years.

The support team has agreed and implemented apart from one post that is vacant due to the Covid-19 pandemic. The outcomes as reported by Companions are significantly improved support to them.

Emmaus Gloucestershire were part way through developing a new strategy when Covid-19 struck. The very important lessons from Covid-19 and the accelerated decline of the High Street retail market will inform the strategy for taking Emmaus Gloucestershire forward over the next ten years. The short-term focus has been on operational continuity and ensuring the safety of companions, volunteers and staff.

EMMAUS GLOUCESTERSHIRE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

Structure, governance and management

The Board is responsible for the strategic direction and policy of the charity. The board meets at least quarterly and is underpinned by a committee structure. The Business and Finance Committee, HR Committee, Policy and Practice Committee and External Affairs Committee met at least quarterly to review performance and to agree priorities for the quarter ahead.

The Board of Trustees has adopted the NCVO Code of Good Governance, and reviews the structures and workings accordingly.

The HR Committee meets annually to agree the remuneration of the Chief Executive and all employees, so as to reward and motivate employees to an affordable extent.

A delegation framework is in place, with the day to day responsibility for the operations of the charity resting with the Chief Executive. The Chief Executive is responsible for ensuring that the charity delivers the activities specified in an annual operational plan and hat key performance indicators are met.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mr M. Heap Mr M. Hudson Ms A. Beddoes Mr N. Mantle Mr C. Thomas Mrs M. Cheeseman (Appointed 30 March 2021)

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

An annual skills audit of the Board of Trustees identifies gaps, and an open recruitment process for new Trustees takes place. This involves advertisement on Emmaus websites, and through specialist volunteering websites such as Volunteering Glos, Trustees Unlimited and REACH. An application and interview process takes place. Proposed appointments of new trustees must be approved by the Board of Trustees; following a successful application references and a DBS check are taken up.

The trustees' r eport was approved by the Board of Trustees and signed on their behalf by:

Mr C. Thomas

Trustee Dated: 16 March 2022

EMMAUS GLOUCESTERSHIRE

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 30 JUNE 2021

The trustees, who are also the directors of Emmaus Gloucestershire for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

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

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

EMMAUS GLOUCESTERSHIRE

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF EMMAUS GLOUCESTERSHIRE

Opinion

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

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

We have nothing to report in this regard.

EMMAUS GLOUCESTERSHIRE

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF EMMAUS GLOUCESTERSHIRE

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the s tatement of trustees' r esponsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the 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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations was as follows:

We assess the susceptibility of the charity financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

EMMAUS GLOUCESTERSHIRE

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF EMMAUS GLOUCESTERSHIRE

To assess the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, 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 of the directors and other management and the inspection of any relevant regulatory correspondence.

Material misstatements that arise due to fraud can be harder to detect than those that arise from 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: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the Charityʼs trustees, as a body, in accordance with section 144* of the Charities Act 2011 and the regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the Charityʼs trustees those matters we are required to state to them in an auditorʼs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charityʼs trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Pitt Godden & Taylor LLP

16 March 2022

Chartered Accountants Statutory Auditor

Unit 3 Ambrose House Meteor Court Barnett Way Barnwood Gloucester GL4 3GG

Pitt Godden & Taylor LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

EMMAUS GLOUCESTERSHIRE

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 JUNE 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income and endowments from:
Donations
3
292,517
40,700
H ousing benefit s
4
144,136
-
Other trading activities
5
392,112
-
Investment income
6
2,548
-
Other income
7
550
-
Total income
831,863
40,700
Expenditure on:
Charitable activities
8
796,366
-
Net income for the year/
Net movement in funds
35,497
40,700
Fund balances at 1 July 2020
2,107,225
-
Fund balances at 30 June
2021
2,142,722
40,700		 Total Unrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
333,217
274,389
10,000
144,136
168,741
-
392,112
619,972
-
2,548
2,990
-
550
47,489
-
872,563
1,113,581
10,000
796,366
891,251
10,000
76,197
222,330
-
2,107,225
1,884,895
-
2,183,422
2,107,225
-		 Total
2020
£
284,389
168,741
619,972
2,990
47,489
1,123,581
901,251
222,330
1,884,895
2,107,225
Donations
3
H ousing benefit s
4
Other trading activities
5
Investment income
6
Other income
7
Total income
Expenditure on:
Charitable activities
8
Net income for the year/
Net movement in funds
Fund balances at 1 July 2020
Fund balances at 30 June
2021

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

EMMAUS GLOUCESTERSHIRE

BALANCE SHEET

AS AT 30 JUNE 2021

Notes
Fixed assets
Tangible assets
11
Current assets
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within
one year
14
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
15
Unrestricted funds
Designated funds
16
General unrestricted funds		 2021
£
£
1,182,233
59,612
986,215
1,045,827
(44,638)
1,001,189
2,183,422
40,700
250,000
1,892,722
2,142,722
2,183,422		 2020
£
£
1,118,675
49,070
996,952
1,046,022
(57,472)
988,550
2,107,225
-
250,000
1,857,225
2,107,225
2,107,225

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 June 2021, although an audit has been carried out under section 144 of the Charities Act 2011.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 16 March 2022

Mr C. Thomas Trustee

Company Registration No. 03489376

EMMAUS GLOUCESTERSHIRE

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2021

Notes
Cash flows from operating activities
Cash generated from operations
19
Investing activities
Purchase of tangible fixed assets
Proceeds on disposal of tangible fixed
assets
Interest received
Net cash used in investing activities
Net cash used in financing activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
(86,704)
(21)
2,548		 £
73,440
(84,177)
-
(10,737)
996,952
986,215		 2020
£
(19,355)
181
2,990		 £
270,110
(16,184)
-
253,926
743,026
996,952

EMMAUS GLOUCESTERSHIRE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

1 Accounting policies

Charity information

Emmaus Gloucestershire is a private company limited by guarantee incorporated in England and Wales. The registered office is Chequers Warehouse, Chequers Road, Gloucester, GL4 6PN.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

1.5 Expenditure

Resources expended are accounted for on an accruals basis.

EMMAUS GLOUCESTERSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

1 Accounting policies

(Continued)

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Expenditure on fixed assets is capitalised except for expenditure incurred on the replacement of assets of low value with a short life. Repair, renovation and replacement expenditure is written off as expenditure in the statement of financial activities. Items costing less than £1,000 are written off as an expense as acquired.

Tangible fixed assets are included in the Balance Sheet at cost less accumulated depreciation, or at estimated value at the date of donation less the associated accumulated depreciation.

Depreciation is calculated to write off the cost or valuation of fixed assts, less their estimated residual values, over their estimated useful economic lives, at the following rates :-

Land and buildings Freehold is depreciated by nil. Leasehold is depreciated over the term of the lease. Plant and machinery 25% straight line Fixtures, fittings & equipment 10/20% straight line Motor vehicles 25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

1.8 Stocks

Shop stock comprises of donated items, some of which have been refurbished for sale by companions. As these items are donated, they are not held at any value on the financial statements.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

EMMAUS GLOUCESTERSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

1 Accounting policies

(Continued)

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

EMMAUS GLOUCESTERSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

3 Donations

Unrestricted
Restricted
funds
funds
£
£
Donations and gifts
69,815
-
Grants received
222,702
40,700
292,517
40,700
For the year ended 30 June 2020
274,389
10,000
Donations and gifts
Donations
48,343
-
Gift aid donations
21,472
-
69,815
-
Grants receivable for core activities
COVID-19 support
82,261
-
Coronavirus Job Retention Scheme
55,441
-
Ebay grant
-
-
The Julia and Hans Rausing Trust
80,000
-
Rayne Fund
-
40,700
Schroder Charity Trust
5,000
-
222,702
40,700		 Total
2021
£
69,815
263,402
333,217
48,343
21,472
69,815
82,261
55,441
-
80,000
40,700
5,000
263,402		 Total
2020
£
41,221
243,168
284,389
284,389
12,628
28,593
41,221
90,000
29,056
4,112
120,000
-
-
243,168

4 H ousing benefit s

H ousing H ousing
benefit s benefit s
2021 2020
£ £
Housing benefit 144,136 168,741

EMMAUS GLOUCESTERSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

5 Other trading activities

Shop income
Fundraising events
Other trading activities
6
Investment income
Rental income
Interest receivable
7
Other income
Net gain on disposal of tangible fixed assets
Other income
Insurance received
8
Charitable activities
Staff costs

Depreciation and impairment
Other costs

Governance costs

Included in governance costs is auditors remuneration of £4,000 (2020: £4,000)

EMMAUS GLOUCESTERSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

Trustees indemnity insurance was purchased during the year at a cost of £433 (2020- £413).

Trustees travel expenses of £72 (2020- £578) have been met by the charity.

10 Employees

Number of employees

The average monthly number of employees during the year was:

Shop/warehouse
Office/admin
Companion support
Employment costs
Wages and salaries		 2021
Number
6
5
3
14
2021
£
386,987		 2020
Number
6
4
3
13
2020
£
371,424

There were no employees whose annual remuneration was £60,000 or more.

EMMAUS GLOUCESTERSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

11
Tangible fixed assets
Cost
At 1 July 2020
Additions
Disposals
At 30 June 2021
Depreciation and impairment
At 1 July 2020
Depreciation charged in the year
Eliminated in respect of disposals
At 30 June 2021
Carrying amount
At 30 June 2021
At 30 June 2020		 Land and
buildings
£
1,104,524
45,507
-
1,150,031
24,081
1,804
-
25,885
1,124,146
1,080,443		 Plant and
machinery
£
7,081
-
-
7,081
7,081
-
-
7,081
-
-		 Fixtures,
fittings &
equipment
Motor vehicles
£
£
51,241
91,167
28,202
12,995
(4,030)
(7,022)
75,413
97,140
31,735
72,441
10,681
10,682
(3,903)
(7,170)
38,513
75,953
36,900
21,187
19,506
18,726		 Total
£
1,254,013
86,704
(11,052)
1,329,665
135,338
23,167
(11,073)
147,432
1,182,233
1,118,675

The Nailsworth leasehold included in land and buildings is depreciated over its lease term which expires in 2115.

EMMAUS GLOUCESTERSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

12
Financial instruments
Carrying amount of financial assets
Debt instruments measured at amortised cost
Carrying amount of financial liabilities
Measured at amortised cost
13
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
14
Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2021
£
13,361
44,638
2021
£
2,361
17,189
40,062
59,612
2021
£
-
20,516
2,991
21,131
44,638		 2020
£
9,431
50,654
2020
£
1,035
14,416
33,619
49,070
2020
£
6,818
13,898
2,980
33,776
57,472

15 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds
Balance at 1 Incoming Resources
Balance at 30
July 2020 resources expended
June 2021
£ £ £
£
The Peoples Shed - 40,700 -
40,700
- 40,700 -
40,700

EMMAUS GLOUCESTERSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

16 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Property and Development Fund
Continuity Fund		 Balance at
1 July 2019
£
432,423
-
432,423		 Transfers
£
(432,423)
250,000
(182,423)		 Movement
in funds
Balance at
1 July 2020
Incoming
resources
Balance at
30 June 2021
£
£
£
-
-
-
250,000
-
250,000
250,000
-
250,000

During the previous year the board decided the the Property and Development Fund was no longer required. Instead, in light of the pandemic, a Continuity Fund was been deemed more appropriate.

17 Analysis of net assets between funds

Unrestricted
funds
Restricted
funds
2021
2021
£
£
Fund balances at 30
June 2021 are
represented by:
Tangible assets
1,141,533
40,700
Current assets/
(liabilities)
1,001,189
-
2,142,722
40,700		 TotalUnrestricted
funds
2021
2020
£
£
1,182,233
1,118,675
1,001,189
988,550
2,183,422
2,107,225		 Restricted
funds
2020
£
-
-
-		 Total
2020
£
1,118,675
988,550
2,107,225

18 Related party transactions

There were no disclosable related party transactions during the year (2020 - none) .

EMMAUS GLOUCESTERSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

19
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Gain on disposal of tangible fixed assets
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase)/decrease in debtors
(Decrease) in creditors
Cash generated from operations		 2021
£
76,197
(2,548)
-
23,167
(10,542)
(12,834)
73,440		 2020
£
222,330
(2,990)
(181)
20,190
37,685
(6,924)
270,110