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2022-06-30-accounts

Company no. 03579001 Charity no. 1071538

Emmaus Bristol

Report and Unaudited Financial Statements

30 June 2022

Emmaus Bristol

Reference and administrative details

For the year ended 30 June 2022

Company number 03579001 Charity number 1071538 Registered office and Backfields House operational address Upper York Street Bristol BS2 8QJ Trustees Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows:

R Parker Chair
D Spottiswoode
R Moore
M Quinn
J Ryan Resigned 17 August 2022
L McCreery
K Nwaorgu
K Williams Resigned 21 August 2022
J Skuce
Chief executive officer J Hodge
X Carey (Interim) From 1 September 2022
Bankers Triodos Bank NV Lloyds Bank
Deanery Road Business Banking
Bristol BX1 1LT
BS1 5AS
Cooperative Bank plc
PO Box 101
1 Balloon Street
Manchester
M60 4EP
Solicitors DAC Beachcroft LLP
Portwall Place
Portwall Lane
Bristol
BS99 7UD
Independent examiner Joshua Kingston BSc ACA
Burton Sweet Limited
The Clock Tower
Old Weston Road
Flax Bourton
Bristol
BS48 1UR

1

Emmaus Bristol

Report of the trustees

For the year ended 30 June 2022

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice - Accounting and Reporting by Charities (effective from January 2019).

The Trustees of Emmaus Bristol, who are the members and directors of Emmaus Bristol, present their annual report and financial statements for the year ended 30 June 2022. The Trustees confirm that the annual report and financial statements of the charity comply with current statutory requirements, the requirements of the charity’s governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS102). These statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements.

Objectives and Activities

History and Purpose of the Emmaus Movement

The Emmaus movement was founded in France just after the Second World War by Abbé Pierre, a priest and former member of the French Parliament, to combat poverty and homelessness. He began by sharing his presbytery with homeless people, collectively earning enough to live by recycling and selling things that others had thrown away. The movement has grown worldwide and there are now 425 groups in 41 different countries: emmaus-international.org/en/who-we-are/.

Emmaus Bristol is a member of the Emmaus movement through its memberships of Emmaus International, Emmaus Europe and Emmaus UK. The movement seeks to support each individual community through cooperation and association within the wider movement. In the UK, all Emmaus communities are separate charities working on a national strategic plan the expression of which is at a local level.

Emmaus in the UK exists to provide hope and a sense of belonging to those who have experienced poverty and homelessness. The Emmaus mission is to empower people affected by homelessness and poverty to change their lives for the better, whilst using their voice to achieve social change.

In the UK, communities operate as independent incorporated charities. Most communities combine residential accommodation with primary purpose social enterprises, based largely on the collection and sale of donated goods, as well as refurbishment and repairs. Members of each community, known as ‘Companions’, have the opportunity, regardless of ability or skills, to help themselves through meaningful work, and thereby rediscover their self-worth and take steps towards their own personal development and re-integration into society.

There are only three conditions for a homeless person joining a community - firstly, to sign off from all benefits with the exception of housing benefit, secondly, not to bring drink or drugs into the community and thirdly, to agree to contribute, to the best of that person’s ability, for up to 37.5 hours each week. Each Companion receives food, clothing, shelter and spending money of £40 per week plus a further £10 a week saved for when they leave, plus holiday allowances. Companions also have access to funds for personal development and training.

2

Emmaus Bristol

Report of the trustees

For the year ended 30 June 2022

Charitable Aims and Objects

The principal objectives of the charity are:

The alleviation and relief of poverty, hardship and distress arising therefrom to those in need without distinction by:

Strategies for Achieving Objectives

Emmaus Bristol is committed to expand and improve the work that we do to help people out of homelessness and poverty. The strategic objectives for 2020-2023 of the charity are:

The charity operates predominantly from a single office. The policy of the charity is to keep the size of the administration to the minimum necessary to be able to promote actively and deliver its main functions in an effective way. The charity is governed by the Trustees (who meet six times a year) and managed by employees. The charity relies on volunteers; in addition to the Trustees (who are all volunteers) and the Companions, we also have a pool of regular and occasional volunteers who help in many ways such as maintenance, research, finance and supporting Companions.

3

Emmaus Bristol

Report of the trustees

For the year ended 30 June 2022

Activities for Achieving Objectives

Public Benefit

The Trustees are satisfied that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the Charity Commission guidance on public benefit in providing home and work for those who are homeless and destitute under its objects, these being the alleviation of poverty, hardship and distress.

The activities that demonstrate public benefit are to be found in this Trustees’ Report.

Achievements and Performance

Community

At a time of rising homelessness in Bristol and nationally, it is important that we increase the number of homes we provide as well as the range of homes. In May 2021 we gained planning permission for 15 new eco homes on the roof of Backfields House. Average occupancy of companion and companion move-on homes over the year was 95% (83% in 2021 and 100% pre-pandemic in 2019). 5 Companions moved on into safe external or move-on accommodation (seven in 2021) and 3 gained paid employment externally (five in 2021). Move-on to employment is always difficult and the pandemic made it more so. A Companion moving out for a minimum wage job would be financially worse off than staying at Emmaus and would face considerably higher risks. The loss of a private rental tenancy is currently the biggest cause of homelessness and in September 2021 we lost one of our peppercorn rent, three-bed properties due to the property owner needing to sell.

4

Emmaus Bristol

Report of the trustees

For the year ended 30 June 2022

Last year we reviewed and improved our system of giving warnings over licence breaches and help for the issues responsible, in order to better support those at risk of eviction. As a result, this year 99% of Companions and other residents successfully managed their licence agreement and/or moved on successfully with no-one leaving in chaotic circumstances or being asked to leave, compared to 85% prior to these changes in 2020. We received 44 referrals over the year, from people wanting to live in the Emmaus Bristol community, of which 5 moved in (43 referrals in 2021 of which 14 moved in). This reflects the challenge of move on in Bristol, with few opportunities for companions to move out due to high rents and insecure jobs.

Emmaus Bristol uses the Homelessness Outcomes Star as a way for Companions to measure their own progress towards a range of personal objectives. A Companion scores themselves on the following scale: Stuck, Accepting Help, Believing, Learning and Self Reliance. This year, 65% of outcomes star reviews were scored at the highest levels. In 2021 it was 50%. The highest scoring category was 'Mental Health' and the lowest ‘Motivation & Taking Responsibility’. This reflects the significant work done to support individuals navigate the after effects of the pandemic on their mental health.

Social Enterprises

The income from shop sales and the provision of other services for the year was £284,999 (2021: £194,434). This 47% increase in sales reflects the effects of reopening our shops post-pandemic lockdowns in the previous year.

At the end of this year, we reviewed the way in which we manage our Warehouse income processes as this income stream did not see the strong growth we had predicted. Overall, Warehouse income was £34,194 (2021: £32,783).

Our social enterprises are primary purpose, so as well as generating an income for the charity, they provide work experience, linked training, structure and an opportunity to help others, for people who have experienced homelessness.

Our latest enterprise, two eco holiday pods, have now been installed and are already generating income.

Business Incubator

The Business Incubator continues to offer affordable office space for grass roots charity Babassa as well as international medical aid charity Legs for Africa and local organisation Bristol Energy Network.

Volunteers and Donors

The work of Emmaus Bristol would not be possible without the generous amount of time given by, and donations received from, individuals, groups and companies.

We are particularly grateful to the regular volunteers who gave their time throughout the year and who bring a wealth of skills and experience to help Emmaus Bristol.

Financial Review

The main costs are employee costs, the operating costs of the premises and Companion allowances.

5

Emmaus Bristol

Report of the trustees

For the year ended 30 June 2022

The results for the year are set out on page 13. The net income for the year amounted to a surplus of £3,424 (2021: deficit £71,122). Total funds at 30 June 2022 amounted to £1,992,802 (2021: £1,989,378).

The current cost of living crisis is impacting dramatically on our available financial resources with heat, energy and lighting bills increasing by more than £17,500 (62%) on last year due to price changes.

The cost of construction/building work and materials is also impacting on us with major repairs required at the main community house as well as at several of our leased properties.

The expenditure during the year has supported homeless persons to receive a home, training and purposeful activity through the charity and its social enterprises in accordance with its objectives. In addition, the charity has further provided affordable business incubator spaces for those who are disadvantaged within Bristol to enable them to start and/or maintain their own businesses.

Reserves Policy

The group aims to retain adequate reserves to fund both fixed assets and working capital. It is the Trustees’ view that working capital reserves amounting to three months’ expenditure are adequate. The amounts held at 30 June 2022 totalled £1,992,802 (2021: £1,989,378). Of these, restricted funds amounted to £366,353 (2021: £354,396). Designated funds amounted to £1,454,591 (2021: £1,391,878), of these, £1,421,608 relate to the net book value of Shaftesbury House and Backfields House together with an amount from general funds for the balance of the purchase price and the net book value of all other fixed assets. This designated fund will be spent down over the useful life of the assets. £20,625 is held in designated funds as income from Lloyds Bank Foundation and will likely be spent down over the next 12 months. Free reserves i.e. those not tied up in fixed assets, designated funds or restricted funds, amounted to £171,859 (2021: £243,104). Three months’ expenditure (excluding depreciation) at 2022/21 levels is £159,773, as such, we are meeting our reserves policy.

Leasehold Commitments

In April 2008 we entered into a lease for 72 Bedminster Parade. This lease is now running on a rolling one month basis, as is the lease for our shop on Gloucester Road. We have peppercorn leases with Bristol City Council for four three-bed houses locally. We have a lease on a 2-bed in St George for which we pay rent based on the LHA rate.

Principal Funding

The charity’s main sources of income have been social enterprise income £284,999, 40% (2021: 194,434, 33%), rent receivable £210,606, 30% (2021: £176,847, 30%), donations £92,022, 13% (2021: £100,474 17%) and grants £124,195 17% (2021: £116,104 (20%). Social enterprise income has increased on last year, however, donations and have fallen by 8%.

6

Emmaus Bristol

Report of the trustees

For the year ended 30 June 2022

Fundraising

During the financial year, Emmaus Bristol did not use third parties for any fundraising on its behalf. The charity accepts donations from individuals, organisations and trusts and keeps in touch with donors with their express permission in compliance with the general data protection regulations (GDPR). The charity has not voluntarily subscribed to any fundraising standards or scheme for fundraising regulation. No complaints have been received by the charity in respect of its fundraising activity for the year. Emmaus Bristol protects vulnerable and other persons from undue pressure to donate, unreasonably persistent fundraising and unreasonable intrusion on their privacy by only contacting people we have their consent to, for example sending our newsletter with a donation request to those people who have requested to receive it, and limiting the use of collection tins to our own premises and events being held on our behalf.

Principal Risks and Uncertainties

Risk Mitigants and Controls
Health and Safety Regular maintenance of buildings and infrastructure.
Training provided to several staff and Companions in first aid and fire
marshalling and to all workers in safe lifting.
Annual health and safety audit of the re-use business by the Reuse
Network.
Each referral risk assessed and risk assessment is updated six weeks
after someone moves in and then following any serious incident. Certain
behaviours flagged in risk assessment necessitate CEO or Trustee
involvement in the referral decision.
Regular inspections of all premises and vehicles by a dedicated staff
member.
Inability
to
recruit
and
retain
key
personnel,
including
staff,
CEO,
Trustees.		 Review of staff structure and requirements as part of business planning.
Skills audit review of Board aspart of businessplanning.
Recruitment
and
induction
process,
annual
salary
review,
salary
benchmarking when we create a new role, benefits package including
pension and employee assistance programme.
Reputational Key strategic decisions are approved at Board level.
Significant donors are approved at Board level.
Use of Emmaus branding is strictly controlled.
Review conducted following any incidents to understand and share
lessons learned.

7

Emmaus Bristol

Report of the trustees

For the year ended 30 June 2022 For the year ended 30 June 2022
Financial Stability Quarterly management accounts review at Board level.
Quarterly budget re-forecast.
Financial review at each Board meeting.
Expenditure commitments are matched with incoming funding.
Weekly circulation of sales data and bank balances to key people.
Diverse income streams.
Payments of £1,000 and above require Trustee approval and two
signatories are required for all bank payments.
Expenditure of items over £750 and renewal of contracts over £750 per
annum requires obtaining three quotes where practicable. Both of these
are being reviewed in the financial year 2022/23 and will be increased to
reflect the increasing cost and demand for building and maintenance
work. Staff and Trustee approval is still required.
Review of bank balances to determine the need to increase protection of
funds held.
Budgets for the forthcoming year are submitted and approved at Board
level.
Cost
of
Living:
energy
price increases.		 Contract reviews undertaken annually, or in advance of contract end
date, and used to inform budget.
Cost of energy usage to be discussed with Companions and staff with
energy
saving
behaviours
encouraged
through
greater
information/awareness.
EPC and other professional surveys carried out to ascertain potential
energysavingworks to improve ShaftsburyHouse.
IT Ongoinginvestment in new hardware and software.
Daily backups of data to the cloud as well as twice weekly server
backups.

8

Emmaus Bristol

Report of the trustees

For the year ended 30 June 2022

Covid-19 Our newest enterprise, the Eco Pods, has been developed as a contact-
free enterprise to mitigate againstpotential virus outbreaks.
Each area of the organisation has been risk assessed and the risk
assessment validated by our insurers. Whilst these are no longer
required or enforced by law, we continue to follow sensible guidance
around maintaining distance from those with symptoms and encourage
all staff, volunteers and companions not to come to work if they are
experiencing symptoms.
Our approach has been informed by guidance from Emmaus, the Charity
Retail Association and other membership organisations we are part of.
The risks to service users have been adequately mitigated by ongoing
provision of Covid-safe support and activities.

Plans for the Future

Our plans for the next five years include working to:

Structure, Governance and Management

Structure of Emmaus Bristol

Emmaus Bristol is a company limited by guarantee. It was incorporated on 10 June 1998 and was registered as a charity on 15 September 1998 (Registered Charity No 1071538). It is part of a national federation of which Emmaus UK is the national legal body. Its governing instrument is its Memorandum of Association dated 30 April 1998.

Decisions of significant matters of both policy and finance are made by the Trustees. Papers are presented to the Board of Trustees by either a Trustee or senior Emmaus staff, and voted upon by the Trustees. Professional advice is sought where appropriate.

Trustees and Directors

The Trustees shown on page 1 have held office since 1 July 2020 to date, other than where indicated.

Emmaus Bristol seeks to provide a sufficient balance of skills to run a charity of its nature. When the need for an additional skill arises, appropriate people are interviewed and their CVs considered. An invitation to come to Trustees meetings for a trial period would then be made in order to provide familiarisation with the ethos of the charity, and in due course a vote would be taken on Trustee appointment. Trustee appointments are subject to review.

9

Emmaus Bristol

Report of the trustees

For the year ended 30 June 2022

Emmaus works on the principles Good Governance: a Code for the Voluntary and Community Sector. All Trustees are asked to familiarise themselves with the code. Trustees are offered governance training either locally or through Emmaus UK when these become available. All Trustees are encouraged to visit other communities and attend an Emmaus UK induction programme.

Key Management Personnel Remuneration

The Trustees consider that the Board of Trustees and the Chief Executive comprise the key management personnel of the charity in charge of directing, controlling and operating the charity on a day-to-day basis. All Trustees give of their time freely. The pay of all staff including the Chief Executive is reviewed annually by the Trustees, taking into account a number of factors such as the present cost of living index, the financial position of the charity and remuneration for equivalent roles within the charity sector in organisations of a similar size and income.

Subsidiaries

Emmaus Bristol owns 100% of the share capital of Emmaus Bristol (Enterprises) Limited. The principal activity of the company is to provide accommodation for the Companions of Emmaus Bristol but also includes provision of accommodation for other formerly homeless persons and former Companions. During the year the company made a surplus of £74,248 (2021: £55,338). The company made distributions to the charity of £55,338 (2021: £61,902) from current profits.

Statement of trustees’ responsibilities

The Trustees (who are also directors of Emmaus Bristol for the purposes of company law) are responsible for preparing the Trustees’ Report (incorporating the strategic report and directors’ report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Accepted Accounting Practice).

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

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

10

Emmaus Bristol

Report of the trustees

For the year ended 30 June 2022

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

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Independent examiners

Burton Sweet Limited were re-appointed as independent examiners to the group and parent charity during the year and have expressed their willingness to continue in that capacity.

Approved by the trustees on 9 March 2023 and signed on their behalf by

Richard Parker - Chair of Trustees

David Spottiswoode - Trustee

11

Emmaus Bristol

Independent examiner's report

For the year ended 30 June 2022

I report to the charity trustees on my examination of the accounts of the Company for the year ended 30 June 2022.

Responsibilities and basis of report

As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner’s statement

Since the Company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Date: 9 March 2023

Joshua Kingston BSc ACA Burton Sweet Chartered Accountants The Clock Tower 5 Farleigh Court Old Weston Road Flax Bourton Bristol BS48 1UR

12

Emmaus Bristol

Consolidated statement of financial activities (incorporating an income and expenditure account)

For the year ended 30 June 2022

Restricted
Note
£
Income from:
Donations and grants
3
22,751
Charitable activities
4
-
Other trading activities
5
-
Investments
-
Total income
22,751
Expenditure on:
Raising funds
-
Charitable activities
11,901
Total expenditure
7
11,901
Net income / (expenditure)
10,850
Transfers between funds
19
1,107
Net movement in funds
8
11,957
Reconciliation of funds:
Total funds brought forward
19
354,396
Total funds carried forward
19
366,353		 Unrestricted
£
193,466
495,605
2,126
12
691,209
15,510
683,125
698,635
(7,426)
(1,107)
(8,533)
1,634,982
1,626,449		 2022
Total
£
216,217
495,605
2,126
12
713,960
15,510
695,026
710,536
3,424
-
3,424
1,989,378
1,992,802		 2021
Total
£
216,578
371,281
574
25
588,458
13,766
645,814
659,580
(71,122)
-
(71,122)
2,060,500
1,989,378

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 19 to the accounts.

See note 2 for fund accounting comparative figures.

The notes on pages 17 to 34 form part of these financial statements.

13

Emmaus Bristol

Consolidated balance sheets

As at 30 June 2022

Note
Fixed assets
Tangible assets
11
Investments
Current assets
Debtors
14
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within 1 year 15
Net current assets
Total assets less current liabilities
16
Net assets
18
Funds
19
Restricted funds
Unrestricted funds
Designated funds
General funds
Total charity funds
Creditors: amounts falling due after more
than 1 year		 The group
2022
£
1,757,013
-
1,757,013
33,948
259,033
292,981
(57,192)
235,789
1,992,802
-
1,992,802
366,353
1,454,591
171,858
1,992,802		 The group The charity
2021
2022
£
£
1,715,800
1,757,013
-
1,000
1,715,800
1,758,013
32,093
43,619
300,849
212,746
332,942
256,365
(46,864)
(55,823)
286,078
200,542
2,001,878
1,958,555
(12,500)
-
1,989,378
1,958,555
354,396
366,353
1,391,878
1,454,591
243,104
137,611
1,989,378
1,958,555		 The charity
2021
£
1,715,800
1,000
1,716,800
129,443
186,250
315,693
(45,954)
269,739
1,986,539
(12,500)
1,974,039
354,396
1,391,878
227,765
1,974,039

The directors are satisfied that the company is entitled to exemption from the provisions of the Companies Act 2006 (the Act) relating to the audit of the financial statements for the year by virtue of section 477(2), and that no member or members have requested an audit pursuant to section 476 of the Act.

The directors acknowledge their responsibilities for:

14

Emmaus Bristol

Consolidated balance sheets

As at 30 June 2022

These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

Approved by the trustees on 9 March 2023 and signed on their behalf by

Richard Parker - Chair of Trustees

David Spottiswoode - Trustee

The notes on pages 17 to 34 form part of these financial statements.

15

Emmaus Bristol

Consolidated statement of cash flows

For the year ended 30 June 2022

Cash used in operating activities:
Net movement in funds
Adjustments for:
Depreciation charges
Dividends, interest and rents from investments
Loss / (profit) on the sale of fixed assets
Decrease / (increase) in debtors
Increase / (decrease) in creditors
Net cash provided by / (used in) operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Proceeds from the sale of property, plant and equipment
Purchase of tangible fixed assets
Net cash used in investing activities
Decrease in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2022
£
3,424
71,445
(12)
113
(1,855)
(2,172)
70,943
12
250
(113,021)
(112,759)
(41,816)
300,849
259,033		 2021
£
(71,122)
60,608
(25)
(250)
7,392
(10,245)
(13,642)
25
250
(83,736)
(83,461)
(97,103)
397,952
300,849

Cash flow restrictions

Charity law forbids the use of net cash inflows on any endowed or other restricted fund to offset net cash outflows on any fund outside its own Objects, except on special authority. In practice this restriction has not had any effect on cash flows for the year.

The notes on pages 17 to 34 form part of these financial statements.

16

Emmaus Bristol

Notes to the financial statements

For the year ended 30 June 2022

1. Accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Emmaus Bristol meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

b) Group accounts

These financial statements consolidate the results of the charitable company and its whollyowned (controlled) subsidiary on a line by line basis. Transactions and balances between the charitable company and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two companies are disclosed in the notes of the charitable company's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charitable company itself is not presented because the charitable company has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

c) Going concern basis of accounting

The accounts have been prepared on the assumption that the charity is able to continue as a going concern, which the trustees consider appropriate having regard to the current level of unrestricted reserves. There are no material uncertainties about the charity's ability to continue as a going concern.

d) Income

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

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

Income received in advance of provision of housing is deferred until criteria for income recognition are met.

e) Interest receivable

17

Emmaus Bristol

Notes to the financial statements

For the year ended 30 June 2022

1. Accounting policies (continued)

f) Funds accounting

g) Expenditure and irrecoverable VAT

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

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

h) Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Governance costs are the costs associated with the governance arrangements of the charity, including the costs of complying with constitutional and statutory requirements and any costs associated with the strategic management of the charity’s activities. These costs have been allocated in full to charitable activities.

i) Tangible fixed assets

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

Freehold property 50 years
Leasehold property 10 years
Computer equipment 3 years
Fixtures and fittings 3 years
Motor Vehicles 3 years
Holiday pods 3 years - 30 years

Items of equipment are capitalised where the purchase price exceeds £1,000.

j) Debtors

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

k) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

l) Creditors

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

18

Emmaus Bristol

Notes to the financial statements

For the year ended 30 June 2022

1. Accounting policies (continued)

m) Financial instruments

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

n) Pension costs

The company operates a defined contribution pension scheme for its employees. There are no further liabilities other than that already recognised in the SOFA.

o) Accounting estimates and key judgements

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are depreciation as described in note i) above.

p) Leases

Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

19

Emmaus Bristol

Notes to the financial statements

For the year ended 30 June 2022

2. Prior period comparatives: statement of financial activities

Income from:
Donations
Charitable activities
Other trading activities
Investments
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
3.
Income from donations and grants
Individual donations
Corporate donations
Grants
Lloyds Bank Foundation
Emmaus UK
Nisbet Trust
Enterprise Development Fund
Quartet
Bristol City Council (note 6)
Charityworks
Albert Hunt
Grants < £1,000
Coronavirus Job Retention Scheme (note 6)
Gift aid
Total income from donations and grants
Net income / (expenditure) and net
movement in funds		 Restricted
£
£
42,540
174,038
-
371,281
-
574
-
25
42,540
545,918
-
13,766
116,685
529,129
116,685
542,895
(74,145)
3,023
Restricted
£
£
-
69,608
-
14,043
-
27,500
6,851
18,067
-
22,500
15,900
-
-
10,000
-
9,148
-
6,076
-
5,000
-
1,500
-
1,653
-
8,371
22,751
193,466
Unrestricted
Unrestricted		 2021
Total
£
216,578
371,281
574
25
588,458
13,766
645,814
659,580
(71,122)
2022
Total
£
69,608
14,043
27,500
24,918
22,500
15,900
10,000
9,148
6,076
5,000
1,500
1,653
8,371
216,217

20

Emmaus Bristol

Notes to the financial statements

For the year ended 30 June 2022

3.
Income from donations and grants (continued)
Prior period comparative:
Restricted
£
£
Individual donations
-
69,075
Corporate donations
10,000
16,498
Grants
Bristol City Council (note 6)
-
45,410
Lloyds Bank Foundation
-
27,500
National Lottery Community Fund (note 6)
14,153
-
Nationwide Colleagues Fund
10,000
-
Homes England Community Housing Fund
5,585
-
Emmaus UK
2,802
2,590
Coronavirus Job Retention Scheme (note 6)
-
8,064
Gift aid
-
4,901
Total income from donations and grants
42,540
174,038
4.
Income from charitable activities
2022
Restricted
Total
£
£
£
Social enterprises income
-
284,999
284,999
Rent receivable
-
210,606
210,606
Total income from charitable activities
-
495,605
495,605
Unrestricted
Unrestricted		 2021
Total
£
69,075
26,498
45,410
27,500
14,153
10,000
5,585
5,392
8,064
4,901
216,578
2021
Total
£
194,434
176,847
371,281

All income from charitable activities in the prior year was unrestricted.

5. Income from other trading activities

Other income Restricted
£
£
-
2,126
Unrestricted		 2022
Total
£
2,126		 2021
Total
£
574

All income from other trading activities in the prior year was unrestricted.

6. Government grants

The charitable company receives government grants, defined as funding from the National Lottery Community Fund, the Coronavirus Job Retention Scheme and Bristol City Council to fund charitable activities. The total value of such grants in the period ending 30 June 2022 was £10,801 (2021: £67,627). There are no unfulfilled conditions or contingencies attaching to these grants in 2021/22.

21

Emmaus Bristol

Notes to the financial statements

For the year ended 30 June 2022

7. Total expenditure

Total expenditure
Cost of goods sold
Staff costs (note 9)
Other staff costs
Companion allowances
Sundry expenses
Bank charges
Online fees
Computer supplies
Licenses and subscriptions
Supplies
Waste recycling
Training
Premises expenses
Motor expenses
Printing, postage and stationary
Travel and subsistence
Publicity
Professional fees
Depreciation
Governance
Bad debts
Sub-total
Total expenditure
Allocation of support and
governance costs		 Raising
funds
£
£
£
£
-
-
5,586
-
15,510
90,359
78,348
117,064
-
17
275
7,698
-
108,687
(31)
15
-
19
231
951
-
240
1,840
1,331
-
-
2,626
655
-
705
1,130
4,966
-
67
3,210
7,259
-
11,435
7,398
590
-
1,138
-
-
-
125
195
-
-
54,241
74,736
1,449
-
2
7,518
17
-
10
5,384
1,144
-
2,032
2,839
693
-
-
2,570
3,254
-
173
375
4,072
-
-
-
71,445
-
-
-
3,578
-
5,365
-
-
15,510
274,615
194,230
226,181
-
139,805
86,376
(226,181)
15,510
414,420
280,606
-
Charitable
activities:
community
Charitable
activities:
social
enterprises
Support and
governance
costs		 2022
Total
£
5,586
301,281
7,990
108,671
1,201
3,411
3,281
6,801
10,536
19,423
1,138
320
130,426
7,537
6,538
5,564
5,824
4,620
71,445
3,578
5,365
710,536
-
710,536

Total governance costs were £3,578 (2021: £2,366)

Charitable activities have been combined in the consolidated statement of financial activities.

22

Emmaus Bristol

Notes to the financial statements

For the year ended 30 June 2022

7. Total expenditure (continued)

Prior period comparative
Staff costs (note 9)
Other staff costs
Companion allowances
Sundry expenses
Bank charges
Online fees
Computer supplies
Licenses and subscriptions
Supplies
Waste recycling
Telephone and internet
Training
Premises expenses
Motor expenses
Printing, postage and stationary
Travel and subsistence
Publicity
Professional fees
Depreciation
Governance
Bad debts
Equipment
Work spaces
Sub-total
Total expenditure
Allocation of support and
governance costs		 Raising
funds
£
12,509
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,257
-
-
-
-
-
-
13,766
-
13,766		 £
£
£
91,809
55,782
100,732
303
195
969
69,198
-
-
380
156
1,355
-
1,923
906
-
2,754
-
853
5,283
973
-
4,254
8,477
50,832
11,939
-
-
2,563
-
-
1,134
-
1,627
1,107
468
89,630
49,926
189
-
10,759
-
396
1,234
502
1,652
932
-
-
2,449
-
216
-
1,626
-
-
60,608
-
-
2,366
-
-
54
-
1,791
-
-
5,512
-
306,896
159,693
179,225
97,958
81,267
(179,225)
404,854
240,960
-
Charitable
activities:
social
enterprises
Charitable
activities:
community
Support and
governance
costs		 2021
Total
£
260,832
1,467
69,198
1,891
2,829
2,754
7,109
12,731
62,771
2,563
1,134
3,202
139,745
10,759
2,132
2,584
3,706
1,842
60,608
2,366
54
1,791
5,512
659,580
-
659,580

23

Emmaus Bristol

Notes to the financial statements

For the year ended 30 June 2022

8. Net movement in funds

This is stated after charging:

Depreciation
Operating lease payments
Trustees' remuneration
Trustees' reimbursed expenses
Independent examiner's remuneration:
Independent examination (incl VAT)		 2022
£
71,445
15,508
Nil
-
2,052		 2021
£
60,608
21,386
Nil
-
1,950

9. Staff costs and numbers

Staff costs were as follows:

Salaries and wages
Social security costs
Pension costs		 2022
£
266,192
17,517
17,572
301,281		 2021
£
232,777
14,351
13,704
260,832

No employee earned more than £60,000 during the year.

The key management personnel of the charitable company comprise the Trustees and Chief Executive Officer. The total employee benefits of the key management personnel were £53,531 (2021: £48,691).

Average number of employees 2022
No.
12		 2021
No.
11

10. Taxation

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

24

Emmaus Bristol

Notes to the financial statements

For the year ended 30 June 2022

11. Tangible fixed assets Group and charity

Tangible fixed assets
Group and charity
Cost
At 1 July 2021
Additions in year
Disposals in year
At 30 June 2022
Depreciation
At 1 July 2021
Charge for the year
Disposals in year
At 30 June 2022
Net book value
At 30 June 2022
At 30 June 2021		 Freehold
properties
£
2,075,450
-
-
2,075,450
505,169
40,412
-
545,581
1,529,869
1,570,281		 Leasehold
properties
£
133,662
-
-
133,662
22,117
13,366
-
35,483
98,179
111,545		 Computer
equipment
£
15,523
2,285
-
17,808
10,474
2,322
-
12,796
5,012
5,049		 Fixtures and
fittings
£
86,681
15,647
-
102,328
74,050
8,659
-
82,709
19,619
12,631		 Motor
vehicles
£
34,694
9,423
(13,300)
30,817
22,846
6,686
(12,937)
16,595
14,222
11,848		 Holiday pods
£
4,446
85,666
-
90,112
-
-
-
-
90,112
4,446		 Total
£
2,350,456
113,021
(13,300)
2,450,177
634,656
71,445
(12,937)
693,164
1,757,013
1,715,800

25

Emmaus Bristol

Notes to the financial statements

For the year ended 30 June 2022

12. Subsidiary undertakings

Emmaus Bristol (Enterprises) Limited

The charitable company owns the whole of the issued share capital (1,000 ordinary £1 shares) of Emmaus Bristol (Enterprises) Limited, a company registered in England and Wales (number: 04889148). The subsidiary is used for non-primary purpose trading activities. All activities have been consolidated on a line by line by basis in the statement of financial activities. Available profits are donated to the charitable company. A summary of the results of the subsidiary is shown below:

Turnover
Cost of sales
Gross profit
Other operating income
Administrative expenses
Operating profit
Corporation tax
Profit for financial year
The aggregate of the assets, liabilities and funds was:
Assets
Liabilities
Funds		 2022
£
147,883
(62,500)
85,383
(11,135)
74,248
-
74,248
2022
£
53,006
(17,758)
35,248		 2021
£
127,005
(62,500)
64,505
(9,167)
55,338
-
55,338
2021
£
119,979
(103,641)
16,338

13. Parent charity

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

Gross income
Results for the year		 2022
£
693,610
(15,483)		 2021
£
594,041
(64,557)

26

Emmaus Bristol

Notes to the financial statements

For the year ended 30 June 2022

14. Debtors

Debtors
Trade debtors
Prepayments
Accrued income
Other debtors
Amounts owed by subsidiary
undertaking		 2022
2021
£
£
13,194
11,074
16,373
14,180
1,114
2,300
3,267
4,539
-
-
33,948
32,093
The group		 2022
2021
£
£
6,475
5,693
16,373
14,180
1,114
2,300
3,267
4,539
16,390
102,731
43,619
129,443
The charity
129,443

15. Creditors : amounts due within 1 year

Trade creditors
Accruals
Other taxation and social security
Deferred income (see note 17)
Other creditors
Other loans		 2022
2021
£
£
24,278
11,742
8,321
9,332
9,090
-
3,010
3,310
12,493
9,980
-
12,500
57,192
46,864
The group		 2022
2021
£
£
24,278
11,742
8,321
9,332
9,090
-
3,010
3,310
11,124
9,070
-
12,500
55,823
45,954
The charity		 2022
2021
£
£
24,278
11,742
8,321
9,332
9,090
-
3,010
3,310
11,124
9,070
-
12,500
55,823
45,954
The charity
45,954

16. Creditors : amounts due more than 1 year

The group The charity
2022 2021 2022 2021
£ £ £ £
Other loans - 12,500 - 12,500

Other loans comprise an unsecured loan from Emmaus UK charged at 4% fixed rate of interest per annum and repayable by 30 November 2022. The loan was repaid in full in the year ended 30 June 2022.

27

Emmaus Bristol

Notes to the financial statements

For the year ended 30 June 2022

17. Deferred income

At 1 July 2021
Deferred during the year
Released during the year
At 30 June 2022		 2022
2021
£
£
3,310
3,500
3,010
3,310
(3,310)
(3,500)
3,010
3,310
The group		 2022
2021
£
£
3,310
3,500
3,010
3,310
(3,310)
(3,500)
3,010
3,310
The charity		 2022
2021
£
£
3,310
3,500
3,010
3,310
(3,310)
(3,500)
3,010
3,310
The charity
3,310

Deferred income relates to housing income received in advance of provision.

18. Analysis of net assets between funds The group

The group
Tangible fixed assets
Current assets
Current liabilities
Net assets at 30 June 2022
Prior year comparative
Tangible fixed assets
Current assets
Current liabilities
Non-current liabilities
Net assets at 30 June 2021		 £
335,405
30,948
-
366,353
£
343,465
10,931
-
-
354,396
Restricted
funds
Restricted
funds		 £
1,421,609
32,982
-
1,454,591
£
1,372,336
19,542
-
-
1,391,878
Designated
funds
Designated
funds		 £
(1)
229,051
(57,192)
171,858
£
(1)
302,469
(46,864)
(12,500)
243,104
General
funds
General
funds		 Total
funds
£
1,757,013
292,981
(57,192)
1,992,802
Total
funds
£
1,715,800
332,942
(46,864)
(12,500)
1,989,378

28

Emmaus Bristol

Notes to the financial statements

For the year ended 30 June 2022

18. Analysis of net assets between funds (continued) The charity

Tangible fixed assets
Investments
Current assets
Current liabilities
Net assets at 30 June 2022
Prior year comparative
Tangible fixed assets
Investments
Current assets
Current liabilities
Non-current liabilities
Net assets at 30 June 2021		 £
335,405
-
30,948
-
366,353
£
343,465
-
10,931
-
-
354,396
Restricted
funds
Restricted
funds		 £
1,421,609
-
32,982
-
1,454,591
£
1,372,336
-
19,542
-
-
1,391,878
Designated
funds
Designated
funds		 £
(1)
1,000
192,435
(55,823)
137,611
£
(1)
1,000
285,220
(45,954)
(12,500)
227,765
General
funds
General
funds		 Total
Funds
£
1,757,013
1,000
256,365
(55,823)
1,958,555
Total
Funds
£
1,715,800
1,000
315,693
(45,954)
(12,500)
1,974,039

29

Emmaus Bristol

Notes to the financial statements

For the year ended 30 June 2022

19. Movements in funds

Restricted funds
Minibus Appeal
Holiday Pods
Emmaus UK
Other
Total restricted funds
Designated funds:
General Fixed Asset Fund
Lloyds Foundation 2020
Holiday Pods
Ethical
Total designated funds
General funds
Total unrestricted funds
Total funds
European Regional
Development Fund
Unrestricted funds		 At 1 July
2021
£
343,465
2,735
5,904
670
1,622
354,396
1,372,336
6,875
5,000
7,667
1,391,878
243,104
1,634,982
1,989,378		 Income
£
-
-
20,900
1,851
-
22,751
-
27,500
-
-
27,500
663,709
691,209
713,960		 £
(8,060)
(213)
-
(3,628)
-
(11,901)
(63,385)
(13,750)
(310)
-
(77,445)
(621,190)
(698,635)
(710,536)
Expenditure		 £
-
-
-
1,107
-
1,107
112,658
-
-
-
112,658
(113,765)
(1,107)
-
Transfers
between
funds		 £
335,405
2,522
26,804
-
1,622
At 30 June
2022
366,353
1,421,609
20,625
4,690
7,667
1,454,591
171,858
1,626,449
1,992,802

30

Emmaus Bristol

Notes to the financial statements

For the year ended 30 June 2022

19. Movements in funds (continued)

Prior year comparative
Restricted funds
Minibus Appeal
Holiday Pods
Emmaus UK
Other
Homes England
Crisis UK
National Lottery Covid Grant
BrisDoc
Renovation Appeal 20-21
Total restricted funds
Designated funds:
General Fixed Asset Fund
Lloyds Foundation 2020
Holiday Pods
Ethical
EUK Emergency Appeal
Nationwide Community
Total designated funds
General funds
Total unrestricted funds
Total funds
BCC Retail, Hospitality &
Leisure Grant Fund
Coronavirus Job Retention
Scheme
Unrestricted funds
European Regional
Development Fund		 At 1 July
2020
£
351,525
-
15,204
1,429
1,622
29,333
21,409
-
-
8,019
428,541
1,341,148
11,250
-
7,667
-
-
-
26,345
1,386,410
245,549
1,631,959
2,060,500		 Income
£
-
15,000
-
2,802
-
5,585
-
14,153
5,000
-
42,540
-
27,500
5,000
-
45,410
8,064
2,590
-
88,564
457,354
545,918
588,458		 £
(8,060)
(12,265)
(9,300)
(3,561)
-
(34,918)
(21,409)
(14,153)
(5,000)
(8,019)
(116,685)
(52,548)
(31,875)
-
-
(45,410)
(8,064)
(2,590)
(26,345)
(166,832)
(376,063)
(542,895)
(659,580)
Expenditure		 £
-
-
-
-
-
-
-
-
-
-
-
83,736
-
-
-
-
-
-
-
83,736
(83,734)
-
-
Transfers
between
funds		 £
343,465
2,735
5,904
670
1,622
-
-
-
-
-
At 30 June
2021
354,396
1,372,336
6,875
5,000
7,667
-
-
-
-
1,391,878
243,104
1,634,982
1,989,378

Purposes of restricted funds

European Regional Development Fund

A capital fund spent on the purchase of Backfields House (net of depreciation) relating to the European Regional Development Fund grant. A deed of covenant between Emmaus Bristol and The Secretary of State for Local Government relating to Backfields House has been agreed for a period of 15 years from 31 March 2014.

31

Emmaus Bristol

Notes to the financial statements

For the year ended 30 June 2022

19. Movements in funds (continued) Purposes of restricted funds

Minibus Appeal

Funding received in respect of an appeal to replace the minibus.

Holiday Pods

The Holiday Pods restricted fund relates to donations and grants received for the purchase of eco holiday pods in the back yard of Backfields House, which will assist in the diversification of the charity’s social enterprises.

Emmaus UK

Funding for Companion training and expenditure on hygiene and safety.

Other

Funding for an e-cargo bike.

Homes England

A grant for carrying out a feasibility study and survey to explore developing the roof of Backfields House for affordable accommodation.

Crisis UK

To cover one year’s costs of three places for Companions who have no recourse to public funds (e.g. housing benefit) during the Covid-19 pandemic.

National Lottery Covid Grant

To employ a Support Worker for six months during the Covid-19 pandemic.

BrisDoc

To help fund the replacement hot water system at Shaftesbury House.

Renovation Appeal 20-21

Monies raised were used for the renovation of the fourth vacant house owned by Bristol City Council which has been let rent-free to the charity for a period of ten years, for housing purposes in line with the charitable objects of the charity.

Purpose of designated funds

General Fixed Asset Fund

The designated fixed asset fund comprises the transfer from unrestricted donations for the purchase of Shaftesbury House and Backfields House together with an amount from general funds for the balance of the purchase price and the net book value of all other fixed assets.

Lloyds Foundation 2020

Funding which is being assigned to core costs over twelve months.

Holiday Pods

Funding assigned to the Holiday Pods.

32

Emmaus Bristol

Notes to the financial statements

For the year ended 30 June 2022

19. Movements in funds (continued) Purpose of designated funds

Ethical

The Ethical fund is being held to set against expenditure on new or leased vehicles for use in our social enterprises as replacement is required.

BCC Retail, Hospitality & Leisure Grant Fund

Hospitality and Leisure Grant Fund in respect of the various Covid-19 periods of lockdown.

Coronavirus Job Retention Scheme

Funds claimed under the Coronavirus Job Retention Scheme.

EUK Emergency Appeal

Funding from Emmaus UK's Covid-19 Emergency Appeal.

Nationwide Community

The Nationwide Community Fund was received in 2020 as a restricted grant to enable Companions to move on from Emmaus Bristol. In response to Covid-19, Nationwide removed the restrictions on this grant and deemed that it could be used to support the charity and its beneficiaries in whatever way the charity thought would be the best use of these funds.

Transfers

The transfer from general funds to restricted funds is to cover the overspend of a restricted project.

The transfer from general funds to designated funds represents the net movement of tangible fixed asset additions and disposals.

20. Operating lease commitments

The group and charity had operating leases at the year end with total future minimum lease payments as follows:

payments as follows:
Amount falling due:
Within 1 year
Within 1 - 5 years		 2022
2021
£
£
3,328
15,508
9,570
13,130
12,898
28,638
The group		 2022
2021
£
£
3,328
15,508
9,570
13,130
12,898
28,638
The charity
28,638

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Emmaus Bristol

Notes to the financial statements

For the year ended 30 June 2022

21. Related party transactions

The charitable company's wholly owned subsidiary undertaking is Emmaus Bristol (Enterprises) Limited, a registered company in England and Wales (number: 04889148). The company gifts available taxable profits to its parent undertaking. The balance owing to Emmaus Bristol at 30 June 2022 was £16,390 (2021: £102,731). Transactions between the entities during the year have not been disclosed in accordance with section 33 of FRS 102.

D Spottiswoode, R Moore, and M Quinn, trustees of Emmaus Bristol, are also directors of Emmaus Bristol (Enterprises) Limited.

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