REGISTERED COMPANY NUMBER: 03643570 (England and Wales) REGISTERED CHARITY NUMBER: 1073677
## **Emmaus Preston**
**Report of the Trustees and Unaudited Financial Statements for the Year Ended 30 June 2022**
McMillan & Co LLP Chartered Accountants 28 Eaton Avenue Matrix Office Park Buckshaw Village Chorley Lancashire PR7 7NA
**Emmaus Preston**
## **Contents of the Financial Statements for the year ended 30 June 2022**
||**Page**|
|---|---|
|**Reference and Administrative Details**|1|
|**Report of the Trustees**|2 to 5|
|**Independent Examiner's Report**|6|
|**Statement of Financial Activities**|7|
|**Balance Sheet**|8 to 9|
|**Cash Flow Statement**|10|
|**Notes to the Cash Flow Statement**|11|
|**Notes to the Financial Statements**|12 to 20|
|**Detailed Statement of Financial Activities**|21 to 22|
## **Emmaus Preston**
## **Reference and Administrative Details for the year ended 30 June 2022**
## **TRUSTEES**
JA Baggaley (resigned 25/1/2022) JA Caldwell MG Conlon JR Dean KC Derbyshire PR Leeming S Savage (resigned 18/11/2022) J Swindells S Parker JJB Rawkins DJ Mein NJ Edwards KH Widdicks (appointed 6/1/2023)
## **REGISTERED OFFICE**
The Birches 165 Ribbleton Lane Preston Lancashire PR1 5ST
**REGISTERED COMPANY** 03643570 (England and Wales) **NUMBER**
**REGISTERED CHARITY** 1073677 **NUMBER**
**INDEPENDENT EXAMINER** McMillan & Co LLP Chartered Accountants 28 Eaton Avenue Matrix Office Park Buckshaw Village Chorley Lancashire PR7 7NA
Page 1
## **Emmaus Preston**
## **Report of the Trustees for the year ended 30 June 2022**
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 30 June 2022. The trustees have adopted the provisions of 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).
## **OBJECTIVES AND ACTIVITIES**
## **Objectives and aims**
Emmaus Preston provides a home, work training and development for people who have been homeless or socially excluded. People who become homeless do so for a variety of complex reasons. Many of the community members have slept rough. Emmaus offers stability, companionship, support and security for people to rebuild their lives. Accommodation is available for 26 people in the Community Home.
The Community is fully inclusive. Companions are encouraged to play an active role in the day to day running of the Community.
The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives.
Page 2
## **Emmaus Preston**
## **Report of the Trustees for the year ended 30 June 2022**
## **ACHIEVEMENT AND PERFORMANCE Charitable activities**
## **Emmaus across Lancashire**
Emmaus Preston has been supporting Emmaus Burnley through a Joint Working Partnership Agreement since 2016 but in April 2022 the two charities came together with the agreement of both Boards, members and supporters to merge. The assets of Emmaus Burnley were transferred to Emmaus Preston and the lease of the Rochdale Department Store was renewed by Emmaus Preston. This merger now means we have one wider staff team across Lancashire and the option of accommodation in either Preston or Burnley for Companions as well as an even stronger, skilled and diverse Board to support us through the next few years.
We now have accommodation for up to 50 formerly homeless people, whom we call Companions, in our house on Ribbleton Lane, Preston and our house in Old Hall Street, Burnley. This is supported by four retail outlets including the two largest charity stores in the country, a former B&Q in Preston and a three floor Department Store in Rochdale. The money from these stores pays for a lot of the work we do supporting Companions and we are unique in that it is the Companions themselves who work in our stores, so customers money spent in our store directly helps the person serving them in our shop.
Free Streets is our homeless outreach project with a paid staff member plus Companions who visit up to three towns nightly across the Old County Palatine of Lancashire giving out clothing, toiletries, blankets and items such as underwear to support the people living on the streets. The project was an Emmaus Burnley one funded initially in April 2021 for 12 months by the East Lancashire Free Masons and then subsequently in this financial year and throughout 2022 a mix of funding from the William Jackson Food Group and our own funds. Whilst supporting people in the streets is great moving them off it has proved more difficult with long wait times to get people into drug, alcohol and mental health services and so we will look at options with our colleagues across Emmaus in the North West and UK to see if there is more we could deliver together to support these issues.
We have continued to develop our staff team and brought in a Head of Support alongside four Companion Development Workers, two based in Preston and two based in Rochdale/Burnley to increase the support we can offer our Companions.
We also developed a support vision which we will work on to deliver over the coming year and into the future.
MAKE A LASTING, POSITIVE IMPACT ON OUR COMPANIONS THAT ENSURES THEIR FUTURE PATH IS SAFER, HAPPIER, FULFILLING AND MORE PRODUCTIVE FOR THEM AND SOCIETY
Walk with them on their journey - sometimes in front, sometimes alongside, sometimes behind .........until eventually they walk the journey without us. Focus our work to challenge them, supporting them to overcome barriers, achieve their realistic goals and look at a new future. Make their time with us rewarding, hopeful, inspirational, transformative and successful.
## **Companions**
The Companion numbers have increased but we have seen people in both Preston and Burnley move on positively as more work becomes available, albeit accommodation outside of Emmaus doesn't always match the need or the price our Companions can afford. The six move on flats in Burnley have been a great asset with former Companions gaining paid work outside the community and renting these from the community.
Activities have increased again from playing pool against other Emmaus to Go Karting and enjoying a Christmas party night, these have brought the community closer together.
We have widened our available courses and we have seen Companions gain accreditation in everything from Installing Cookers, Portable Appliance Testing, First Aid, Food Hygiene, Mental Health First Aid to attending College for a year to complete Health and Social Care Level 2. There is no doubt if we can increase Companion skills and learning, in particular to match the job market, we will see more positive move-on as paid work becomes readily available. The fear will be can they afford to live outside the community with the rising cost of living.
Page 3
## **Emmaus Preston**
## **Report of the Trustees for the year ended 30 June 2022**
## **Business**
The Social Enterprises we run, mainly retail, support the running costs of our Emmaus including paying for food, support, training courses, move-on and some of the accommodation costs of our Companions. The more money we can generate the more support we can offer to Companions and our Companions are proud that as a charity we do not chase grants and are predominantly self-funding through our own work. Compared to some of the big national charity retailers where twenty pence or less per pound of shop income goes to support the charity we are dependent on our retail income.
This financial year trading has been very good and we have seen a large number of new customers through our doors and whilst the initial resurgence of customer spending in store after Covid did not continue, stores have predominantly held their own.
Our E-commerce unfortunately has seen a downturn as people return to in store shopping for larger items and we will be reviewing how we operate this next year.
We have started to feel the increase of costs for both energy - gas and electric plus diesel for our vans and this affects not only our retail stores but the large houses we own where we house our Companions. We have finished this year with rising costs and with the expectation of costs continuing to rise throughout 2022 and into 2023 we are going to have a very tough few years financially.
## **Finally**
A thank you to my fellow Board of Trustees who have worked tirelessly throughout the year with a special mention to Simon Parker who, as a Trustee at Preston and Chair at Emmaus Burnley, has devoted a great deal and energy to support the Board and merger. Thank you to our staff team led by Stephen Buchanan, who always do their very best and to all our volunteers who support us weekly. Thanks to all our Supporters from those who give us shops to trade from, for which we are eternally grateful, to those who donate us items to sell and those who donate us items we can give to people in the streets. Our Companions work exceptionally hard and we would like to thank those that have been with us during the year and wish them as much success as possible in the future.
## **FINANCIAL REVIEW**
## **Financial position**
Grants received (excluding Covid support) totalled £4,044 (2021: £2,193) and Gifts and Donations totalled £19,297 (2021: £29,003).
Rents and Housing Benefits were £138,194 (2021: £123,399).
The net movement in funds was a reduction of £564,169 (2021: £47,041). This is stated after a writedown of the value of the Preston property of £1,008,898 (2021: £nil) (see note 13) and after an extraordinary credit of £503,894 (2021: £nil) relating to the write back of negative goodwill that arose on the transfer of Emmaus Burnley (see note 12).
## **Reserves policy**
The reserve policy is kept under review by trustees.
In line with advice from Emmaus UK we at least hold the equivalent of three months costs in reserves to cover overheads in event of closure.
The landlord of our main outlet anticipates that he will redevelop it in the near future and we hold a reserve to cover the cost of removal.
The proceeds of the sale of a property previously rented out are to be used on a long term project to teach companions useful skills in building and property maintenance.
Page 4
## **Emmaus Preston**
## **Report of the Trustees**
## **for the year ended 30 June 2022**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
The Charity was incorporated as a company limited by guarantee on 2 October 1998. The company's Memorandum of Association established its objectives and powers and it is governed under its Articles of Association. The directors of Emmaus Preston are also the Trustees for the purpose of Charity law. In the event of the company being wound up, members are required to contribute an amount not exceeding £1.
## **Induction and training of new trustees**
Each new Trustee is briefed about the Community, their legal responsibilities and ethical responsibilities and an induction programme is in place which included visiting other communities and attending Emmaus UK Federation induction day. Periodic appraisals are undertaken of trustee's skills and suitable training is offered.
## **Related parties**
Emmaus Preston is a member of the Emmaus Federation in the UK. Emmaus UK is a federation of all the Emmaus Groups and Communities in the UK.
Emmaus Preston's Chair, Director and Community manager participate in Federation peer group meetings where best practice is shared. Emmaus Preston receives support from the Federation staff on recruitment, training, publicity, policy development, best practice and fund raising.
Approved by order of the board of trustees on 26 January 2023 and signed on its behalf by:
JR Dean - Trustee
Page 5
## **Independent Examiner's Report to the Trustees of Emmaus Preston**
## **Independent examiner's report to the trustees of Emmaus Preston ('the Company')**
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 your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of 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:
1. accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).
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.
Neil McMillan FCA Institute of Chartered Accountants in England and Wales McMillan & Co LLP Chartered Accountants 28 Eaton Avenue Matrix Office Park Buckshaw Village Chorley Lancashire PR7 7NA
26 January 2023
Page 6
## **Emmaus Preston**
## **Statement of Financial Activities for the year ended 30 June 2022**
|Unrestricted
fund
Notes
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
3
**23,341**
**Charitable activities**
6
Emmaus Community
**138,194**
Friends of Fishwick and St Matthew
**-**
Other trading activities
4
**508,706**
Investment income
5
**8,385**
**Total**
**678,626**
**EXPENDITURE ON**
Raising funds
7
**311,030**
**Charitable activities**
Emmaus Community
**392,965**
Friends of Fishwick and St Matthew
**-**
Other
**3,300**
**Total**
**707,295**
**Net (expenditure) / income before**
**investment (losses) / gains**
**(28,669)**
Net (losses) / gains on investments
**(25,992)**
**Net (expenditure) / income before**
**Extraordinary Items**
**(54,661)**
Extraordinary items
8
**213,503**
**NET (expenditure) / income for year**
**158,842**
**RECONCILIATION OF FUNDS**
Total funds brought forward
**802,033**
**TOTAL FUNDS CARRIED FORWARD**
**960,875**||Restricted
funds
£
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**4,372**
**72**
**-**
**4,444**
**(4,444)**
**-**
**(4,444)**
**(718,567)**
**(723,011)**
**1,093,675**
**370,664 **||**2022**
**Total**
**funds**
**£**
**23,341**
**138,194**
**-**
**508,706**
**8,385**
**678,626**
**311,030**
**397,337**
**72**
**3,300**
**711,739**
**(33,113)**
**(25,992)**
**(59,105)**
**(505,064)**
**(564,169)**
**1,895,708**
**1,331,539**||2021
Total
funds
£
119,556
123,399
16,275
365,857
4,954
630,041
248,729
341,538
22,647
3,476
616,390
13,651
33,390|
|---|---|---|---|---|---|---|
||||||||
||||||||
||||||||
||||||||
||||||||
|||||||47,041
-
47,041
1,848,667
1,895,708|
||||||||
||||||||
The notes form part of these financial statements
Page 7
## **Emmaus Preston**
## **Balance Sheet 30 June 2022**
|Unrestricted
fund
Notes
£
**FIXED ASSETS**
Tangible assets
13
**38,254**
Investments
14
**310,628**
**348,882**
**CURRENT ASSETS**
Stocks
15
**67,739**
Debtors
16
**134,852**
Cash at bank and in hand
**474,047**
**676,638**
**CREDITORS**
Amounts falling due within one year
17
**(64,645)**
**NET CURRENT ASSETS**
**611,993**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
**960,875**
**NET ASSETS**
**960,875**
**FUNDS**
18
Unrestricted funds
Restricted funds
**TOTAL FUNDS**|Restricted
funds
£
**331,997**
**-**
**331,997**
**-**
**-**
**38,667 **
**38,667**
**-**
**38,667 **
**370,664**
**370,664 **|**2022**
**Total**
**funds**
**£**
**370,251**
**310,628**
**680,879**
**67,739**
**134,852**
**512,714**
**715,305**
**(64,645)**
**650,660**
**1,331,539**
**1,331,539**
**960,875**
**370,664 **
**1,331,539**|2021
Total
funds
£
1,169,325
336,620
1,505,945
48,591
66,455
352,258
467,304
(77,541)
389,763
1,895,708
1,895,708
802,033
1,093,675
1,895,708|
|---|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2022.
The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2022 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
- (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
- (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The notes form part of these financial statements
Page 8
continued...
## **Emmaus Preston**
## **Balance Sheet - continued**
## **30 June 2022**
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 26 January 2023 and were signed on its behalf by:
JR Dean - Trustee
The notes form part of these financial statements
Page 9
## **Emmaus Preston**
## **Cash Flow Statement for the year ended 30 June 2022**
|Notes
**Cash flows from operating activities**
Cash generated from operations
1
Net cash (used in)/provided by operating activities
**Cash flows from investing activities**
Purchase of tangible fixed assets
Purchase of fixed asset investments
Sale of tangible fixed assets
Amortisation of negative goodwill
Interest received
Net cash provided by/(used in) investing activities
**Change in cash and cash equivalents**
**in the reporting period**
**Cash and cash equivalents at the**
**beginning of the reporting period**
**Cash and cash equivalents at the end**
**of the reporting period**|**2022**
**£**
**(130,233) **
**(130,233) **
**(221,530)**
**-**
**-**
**503,834**
**8,385**
**290,689**
**160,456**
**352,258**
**512,714**|2021
£
61,326
61,326
(2,323)
(100,000)
23,316
-
4,954
(74,053)
(12,727)
364,985
352,258|
|---|---|---|
The notes form part of these financial statements
Page 10
## **Emmaus Preston**
## **Notes to the Cash Flow Statement**
## **for the year ended 30 June 2022**
|**1.**|**RECONCILIATION OF NET (EXPENDITURE)/INCOME**|**TO NET CASH**|**FLOW FROM**|**OPERATING**|
|---|---|---|---|---|
||**ACTIVITIES**||||
||||**2022**|2021|
||||**£**|£|
||**Net (expenditure)/income for the reporting period (as per the**||||
||**Statement of Financial Activities)**||**(564,169)**|47,041|
||**Adjustments for:**||||
||Amortisation and depreciation (credits)/charges||**(492,128)**|52,048|
||(Losses) / gains on investments||**25,992**|(33,390)|
||Profit on disposal of fixed assets||**-**|(16,214)|
||Interest received||**(8,385)**|(4,954)|
||Property Impairment||**1,008,898**|-|
||(Increase)/decrease in stocks||**(19,148)**|1,525|
||Increase in debtors||**(68,397)**|(13,626)|
||(Decrease)/increase in creditors||**(12,896)**|28,896|
||**Net cash (used in)/provided by operations**||**(130,233) **|61,326|
|2.|**ANALYSIS OF CHANGES IN NET FUNDS**||||
|||At 1/7/21|Cash flow|**At 30/6/22**|
|||£|**£**|**£**|
||**Net cash**||||
||Cash at bank and in hand|**352,258**|**160,456**|**512,714**|
|||**352,258**|**160,456**|**512,714**|
||**Total**|**352,258**|**160,456**|**512,714**|
The notes form part of these financial statements
Page 11
## **Emmaus Preston**
## **Notes to the Financial Statements for the year ended 30 June 2022**
## **1. GENERAL INFORMATION**
The charity is a registered charity in England and Wales and is incorporated. The address of the principal office is The Birches, 165 Ribbleton Lane, Preston, Lancashire, PR1 5ST.
There are no material uncertainties about the charity's ability to continue.
The presentational currency of the financial statements is the Pound Sterling (£).
The amounts in the financial statements have been rounded to the nearest £1.
## **2. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.
## **Income**
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
## **Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Grants offered subject to conditions which have not been met at the year-end date are noted as a commitment but not accrued as expenditure.
## **Goodwill**
Goodwill, being the negative goodwill arising on the transfer of Emmaus Burnley has been fully amortised in the current year.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
|Freehold land|- not provided|
|---|---|
|Freehold buildings|- not provided|
|Plant and machinery|- 25% on cost|
|Fixtures, fittings and equipment|- 20% - 33% on cost|
|Motor vehicles|- 33% on cost|
Freehold land is not depreciated. No depreciation is provided on the company's freehold and long leasehold buildings as the directors consider that the lives of these assets are so long and residual values, based on prices prevailing at the time of acquisition, are sufficiently high that any depreciation would be immaterial. Provision is made in the profit and loss account in the event of any permanent diminution in the value of the properties.
Page 12
continued...
## **Emmaus Preston**
**Notes to the Financial Statements - continued for the year ended 30 June 2022**
## **2. ACCOUNTING POLICIES - continued**
## **Stocks**
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
## **Taxation**
The charity is exempt from corporation tax on its charitable activities.
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **Financial instruments**
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument. Basic financial assets, which include debtors, prepayments and bank balances, are initially measured at transaction price and are subsequently carried at cost unless the arrangement indicates otherwise and then the asset is measured at the present value of the future receipts discounted at a market rate of interest. Basic financial liabilities, which include creditors, accruals, bank loans and group borrowings, are initially recognised at transaction price and are subsequently carried at cost unless the arrangement indicates otherwise and then the liability is measured at the present value of the future obligations discounted at a market rate of interest.
## **Government Grants**
CJRS and small business local authority grants are accounted for under the accruals model. Where the grant is classed as revenue, it is recognised in income on a systematic basis over the periods in which the company recognises the related costs.
## **3. DONATIONS AND LEGACIES**
|Donations and gifts
Grants
Small business local authority grant
CJRS grant
Grants received, included in the above, are as follows:
Other grants|**2022**
**£**
**19,297**
**4,044**
**-**
**-**
**23,341**
**2022**
**£**
**4,044**|2021
£
29,003
2,193
71,966
16,394
119,556
2021
£
2,193|
|---|---|---|
||||
Page 13
continued...
## **Emmaus Preston**
|**Notes to the Financial Statements - continued**
**for the year ended 30 June 2022**
**4.**
**OTHER TRADING ACTIVITIES**
Shop and other sundry income
Welfare scheme
**5.**
**INVESTMENT INCOME**
Interest receivable
**6.**
**INCOME FROM CHARITABLE ACTIVITIES**
Activity
Rents and housing
benefits received
Emmaus Community
Grants
Friends of Fishwick and St Matthew
Grants received, included in the above, are as follows:
Big Local Trust
**7.**
**RAISING FUNDS**
**Other trading activities**
Operating costs
**8.**
**NET (EXPENDITURE) / INCOME**
Net (expenditure) / income is stated after charging / (crediting):
Depreciation - owned assets
Surplus on disposal of fixed assets
**Extraordinary items;**
Goodwill amortisation
Property impairment|**2022**
**£**
**444,502**
**64,204 **
**508,706**
**2022**
**£**
**8,385**
**2022**
**£**
**138,194**
**-**
**138,194 **
**2022**
**£**
**-**
**2022**
**£**
**311,030**
**2022**
**£**
**11,706**
**-**
**(503,834)**
**1,008,898**||2021
£
286,121
79,736
365,857
2021
£
4,954
2021
£
123,399
16,275
139,674
2021
£
16,275
2021
£
248,729
2021
£
52,048
(16,214)
-
-|
|---|---|---|---|
Page 14
continued...
## **Emmaus Preston**
## **Notes to the Financial Statements - continued for the year ended 30 June 2022**
## **9. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 30 June 2022 nor for the year ended 30 June 2021.
## **Trustees' expenses**
There were no trustees' expenses paid for the year ended 30 June 2022 nor for the year ended 30 June 2021.
## **10. STAFF COSTS**
The average monthly number of employees during the year was as follows:
|Staff
No employees received emoluments in excess of £60,000.
**11.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
Unrestricted
fund
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
119,556
**Charitable activities**
Emmaus Community
123,399
Friends of Fishwick and St Matthew
-
Other trading activities
365,857
Investment income
4,954
**Total**
613,766
**EXPENDITURE ON**
Raising funds
248,729
**Charitable activities**
Emmaus Community
318,968
Friends of Fishwick and St Matthew
-
Other
3,476
**Total**
571,173
Net gains on investments
33,390
**NET INCOME/(EXPENDITURE)**
75,983
**RECONCILIATION OF FUNDS**
Total funds brought forward
726,050
**TOTAL FUNDS CARRIED FORWARD**
802,033|**2022**
**10**
Restricted
funds
£
-
-
16,275
-
-
16,275
-
22,570
22,647
-
45,217
-
(28,942)
1,122,617
1,093,675||
|---|---|---|
||||
||||
||||
||||
Page 15
continued...
## **Emmaus Preston**
## **Notes to the Financial Statements - continued for the year ended 30 June 2022**
|**12.**
**INTANGIBLE FIXED ASSETS**
**COST**
Additions
**AMORTISATION**
Charge for year
**NET BOOK VALUE**
At 30 June 2022
At 30 June 2021|Goodwill
£
**(503,834)**
**(503,834)**
**-**
-|
|---|---|
On 30 April 2022 Emmaus Preston and Emmaus Burnley merged their operations and assets and liabilities of Emmaus Burnley were transferred to Emmaus Preston at that date.
In accordance with the Charities SORP, the combination has been accounted for as an acquisition, with the corresponding negative goodwill of £503,834 being written back to the Statement of Financial Activities in the period of acquisition.
The fair value of assets and liabilities is set out below and were transferred from Emmaus Burnley at nil consideration:
|Fixed Assets
Debtors
Cash
Creditors
Negative Goodwill|**£**
**217,594**
**137,952**
**183,531**
**(35,243) **
**503,834 **|
|---|---|
Page 16
continued...
## **Emmaus Preston**
## **Notes to the Financial Statements - continued for the year ended 30 June 2022**
## **13. TANGIBLE FIXED ASSETS**
|**COST**
At 1 July 2021
Additions
Impairments
At 30 June 2022
**DEPRECIATION**
At 1 July 2021
Charge for year
At 30 June 2022
**NET BOOK VALUE**
At 30 June 2022
At 30 June 2021|Freehold
property
£
**1,568,500**
**193,074**
(**1,008,898) **
**752,676**
**409,602**
**-**
**409,602 **
**343,074**
1,158,898|Plant and
machinery
£
**5,223**
**-**
**-**
**5,223**
**4,639**
**583**
**5,222**
**1**
584|Fixtures,
fittings &
equipment
£
**62,862**
**7,401**
**-**
**70,263**
**53,019**
**10,246**
**63,265**
**6,998**
9,843|Motor
vehicles
£
**50,335**
**21,055**
**-**
**71,390**
**50,335**
**877**
**51,212**
**20,178**
-|Totals
£
**1,686,920**
**221,530**
**(1,008,898) **
**899,552 **
**517,595**
**11,706**
**529,301 **
**370,251 **
1,169,325|
|---|---|---|---|---|---|
During the course of the year a formal open market valuation for the Birches, 115 Ribbleton Lane, Preston was completed by Armitstead Barnett LLP on 20 April 2022 and this has been confirmed at £150,000. Subsequently, in accordance with professional advice, the directors have approved an impairment of £1,008,898 which reflects the reduction in the carrying value of The Birches.
## **14. FIXED ASSET INVESTMENTS**
|**FIXED ASSET INVESTMENTS**||
|---|---|
||Listed|
||investments|
||£|
|**MARKET VALUE**||
|At 1 July 2021|**336,620**|
|Revaluations|**(25,992)**|
|At 30 June 2022|**310,628**|
|**NET BOOK VALUE**||
|At 30 June 2022|**310,628**|
|At 30 June 2021|336,620|
There were no investment assets outside the UK.
The historic cost of investments is £300,000 (2021: £300,000).
Page 17
continued...
## **Emmaus Preston**
## **Notes to the Financial Statements - continued**
**for the year ended 30 June 2022**
|**15.**
**STOCKS**
Stocks
**16.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Trade debtors
VAT
Prepayments and accrued income
**17.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Trade creditors
Social security and other taxes
VAT
Accruals and deferred income
**18.**
**MOVEMENT IN FUNDS**
At 1/7/21
£
**Unrestricted funds**
General fund
**802,033**
**Restricted funds**
Fixed assets
**1,073,318**
Friends of Fishwick and St Matthew
**20,357**
Burnley Property
**-**
Free Streets
**-**
**1,093,675**
**TOTAL FUNDS**
**1,895,708**|**2022**
**£**
**67,739**
**2022**
**£**
**11,516**
**1,616**
**121,720**
**134,852 **
**2022**
**£**
**21,035**
**8,065**
**-**
**35,545**
**64,645**
Net
movement
in funds
£
**158,842**
**(934,395)**
**(72)**
**193,074**
**18,382 **
**(723,011)**
**(564,169) **|2021
£
48,591
2021
£
34,566
-
31,889
66,455
2021
£
41,202
3,800
2,282
30,257
77,541
At 30/6/22
£
**960,875**
**138,923**
**20,285**
**193,074**
**18,382 **
**370,664 **
**1,331,539**|
|---|---|---|
Page 18
continued...
## **Emmaus Preston**
## **Notes to the Financial Statements - continued for the year ended 30 June 2022**
## **18. MOVEMENT IN FUNDS - continued**
Net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
**Restricted funds**
Fixed assets
Friends of Fishwick and St Matthew
Burnley Property
Free Streets
**TOTAL FUNDS**
**Comparatives for movement in funds**
**Unrestricted funds**
General fund
**Restricted funds**
Fixed assets
Friends of Fishwick and St Matthew
**TOTAL FUNDS**|Incoming
resources
£
**678,626**
**-**
**-**
**-**
**-**
**-**
**678,626**|Resources
expended
£
**(493,792)**
**(934,395)**
**(72)**
**193,074**
**18,382 **
**(723,011)**
**(1,216,803) **
At 1/7/20
£
726,050
1,095,888
26,729
1,122,617
1,848,667|Gains and
losses
£
**(25,992)**
**-**
**-**
**-**
**-**
**-**
**(25,992)**
Net
movement
in funds
£
75,983
(22,570)
(6,372)
(28,942)
47,041|Movement
in funds
£
**158,842**
**(934,395)**
**(72)**
**193,074**
**18,382 **
**(723,011)**
**(564,169) **
At 30/6/21
£
802,033
1,073,318
20,357
1,093,675
1,895,708|
|---|---|---|---|---|
Comparative net movement in funds, included in the above are as follows:
||Incoming|Resources|Gains and|Movement|
|---|---|---|---|---|
||resources|expended|losses|in funds|
||£|£|£|£|
|**Unrestricted funds**|||||
|General fund|613,766|(571,173)|33,390|75,983|
|**Restricted funds**|||||
|Fixed assets|-|(22,570)|-|(22,570)|
|Friends of Fishwick and St Matthew|16,275|(22,647)|-|(6,372)|
||16,275|(45,217)|-|(28,942)|
|**TOTAL FUNDS**|630,041|(616,390)|33,390|47,041|
The restricted funds relate to the purchase and development of The Birches property which was used to create an Emmaus community in Preston.
Page 19
continued...
## **Emmaus Preston**
## **Notes to the Financial Statements - continued for the year ended 30 June 2022**
## **18. MOVEMENT IN FUNDS - continued**
The restricted Friends of Fishwick and St Matthew fund is in relation to grants received from Big Local Trust Charity for the regeneration of Green space in Preston.
The restricted Burnley Property fund relates to the Burnley Emmaus House property which was used to create the Emmaus Community in Burnley.
## **19. CONTINGENT LIABILITIES**
Grants received from the Emmaus UK Solidarity Fund between 2001 and 2021 totalled £295,000 (2021: £295,000). These would become repayable in the event that Emmaus Preston ceased to be a member of the Emmaus UK Federation to the extent that donations to Emmaus UK Federation did not equal this sum.
On 30 April 2022 Emmaus Preston and Emmaus Burnley merged. The contingent liability from Burnley of £145,000 was added to Prestons’ along with the £224,000 loan from Emmaus UK from Burnley.
Therefore the total contingent liability in Preston now stands at £664,000.
## **20. RELATED PARTY DISCLOSURES**
There were no related party transactions for the years ended 30 June 2022 or 30 June 2021.
Page 20
## **Emmaus Preston**
## **Detailed Statement of Financial Activities**
## **for the year ended 30 June 2022**
|**INCOME AND ENDOWMENTS**
**Donations and legacies**
Donations and gifts
Grants
Small business local authority grant
CJRS grant
**Other trading activities**
Shop and other sundry income
Welfare scheme
**Investment income**
Interest receivable
**Charitable activities**
Rents and housing benefits received
Grants
**TOTAL INCOMING RESOURCES**|2022
£
**19,297**
**4,044**
**-**
**-**
**23,341**
**444,502**
**64,204 **
**508,706**
**8,385**
**138,194**
**-**
**138,194 **
**678,626**|2021
£
29,003
2,193
71,966
16,394
119,556
286,121
79,736
365,857
4,954
123,399
16,275
139,674
630,041|
|---|---|---|
This page does not form part of the statutory financial statements
Page 21
## **Emmaus Preston**
## **Detailed Statement of Financial Activities for the year ended 30 June 2022**
|**EXPENDITURE**
**Other trading activities**
Shop warehouse and vehicle costs
Families in need costs
**Charitable activities**
Wages
Companion housekeeping and sundry costs
Companion allowances
Companion move on fund
Maintenance and utility costs: The Birches
Recruitment expenses
Other overheads
Friend of Fishwick and St Matthew costs
Free Streets costs
Depreciation of tangible fixed assets
Loss on sale of tangible fixed assets
Solidarity payment
Total charitable costs
**Other costs**
Accountancy and legal fees
**TOTAL RESOURCES EXPENDED**
**Net (deficit) / surplus before investment (losses) / gains**
(Losses) / gains on fixed asset investments
**Net (deficit) / surplus before extraordinary items**
**Extraordinary items**
Impairment losses for tangible fixed assets
Amortisation of negative goodwill
**NET (DEFICIT) / SURPLUS FOR YEAR**|2022
£
**273,187**
**37,843**
**311,030**
**207,064**
**37,973**
**46,391**
**7,893**
**50,860**
**231**
**15,847**
**72**
**4,372**
**11,706**
**-**
**15,000**
**397,409**
**3,300**
**711,739**
**(33,113)**
**(25,992)**
**(59,105)**
**(1,008,898)**
**503,834**
**(564,169) **|2021
£
199,060
49,669
248,729
148,398
19,831
37,778
7,523
41,438
-
18,736
22,647
-
52,048
(16,214)
32,000
364,185
3,476
616,390
13,651
33,390
47,041
-
-
47,041|
|---|---|---|
This page does not form part of the statutory financial statements
Page 22