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2021-06-30-accounts

DocuSign Envelope ID: 54FEA71B-746B-4E16-8E47-095B8EE464C1

EMMAUS ST ALBANS Financial Statements For the Year Ended 30 June 2021

Charity Registration No: 1073808 Company Registration No: 03692409

DocuSign Envelope ID: 54FEA71B-746B-4E16-8E47-095B8EE464C1

EMMAUS ST ALBANS CONTENTS

Page
Trustees’ report 1-7
Independent auditors’ report 8-10
Statement of financial activities 11
Balance sheet 12
Statement of cashflows 13
Notes to the financial statements 14-24

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EMMAUS ST ALBANS

REFERENCE AND ADMINISTRATIVE DETAILS

Trustees: John Richard Belt (Appointed 10 June 2021)
Samantha Drury
Julia Sharon Elson
Richard Anthony Exact
Rosemary Susan Fraser
Heather Margaret Hurford
Chloe Mann (Appointed 10 June 2021)
Robert James Prynn
Claire Holloway (Resigned 21 January 2021)
Ivan Marshall (Resigned 21 January 2021)
Keith Neill Tolladay (Resigned 21 January 2021)
Jonathan Landau (Resigned 20 July 2020)
Company Secretary: Julia Sharon Elson
Registered Office: Hill End Lane
St Albans
Hertfordshire
AL4 0FE
Registered Company Number: 03692409 (England and Wales)
Registered Charity Number: 1073808
Auditors: Mercer & Hole Chartered Accountants
Batchworth House
Batchworth Place
Church Street
Rickmansworth
Hertfordshire
WD3 1JE
Principal Office: Hill End Lane
St Albans
Hertfordshire
AL4 0FE
Bankers: CAF Bank
25 Kings Hill Avenue
West Malling
Kent
ME14 4JQ

DocuSign Envelope ID: 54FEA71B-746B-4E16-8E47-095B8EE464C1

EMMAUS ST ALBANS TRUSTEES’ REPORT

The trustees, who are also directors of Emmaus St Albans for the purposes of the Companies Act 2006, submit their annual report and financial statements of the charity for the year ended 30 June 2021. The trustees confirm that the annual report and financial statements of the charity comply with current statutory requirements, the requirements of the charity's governing document, the Companies Act 2006 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 Republic of Ireland (FRS 102), as amended for accounting periods commencing from 1 January 2019.

Objectives and activities

The objectives are the alleviation and relief of poverty, hardship, and distress across Hertfordshire. The policies adopted in furtherance of these objectives are the provision of accommodation, assistance, and meaningful work for homeless people within a community run in accordance with the concepts and principles of Emmaus and its international manifesto.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

About Emmaus St Albans

Emmaus is a homelessness charity with a difference. We are the charity that works. We do not just give people a bed for the night; we offer a home for as long as someone needs it, meaningful work, and a sense of belonging.

For many people who have experienced homelessness, losing their self-esteem can be the most damaging part of their experience. Being on your own, with no support around you can be soul destroying, leaving you feeling worthless.

Emmaus gives companions, as we call our residents, the opportunity to take stock of their lives, deal with any issues they might have, and often re-establish relationships with loved ones. The community is one of 29 currently operating in the UK. There are currently bed spaces for 40 companions to live on site. Each companion has their own room and their own front door key. In return for accommodation and meals, companions are expected to undertake 40 hours of volunteering for the second-hand furniture social enterprise. Companions volunteer in our 4 shops, on our vans, collecting, delivering, and renovating donated furniture. Companions also cook the meals, clean the home and maintain the community building.

Covid-19 has continued to have a huge impact on the charity this year with continued lockdowns and trading restrictions hitting our ability to generate income through our social enterprise activity. The end of the year saw us take some tentative steps back towards normality, however the future is still incredibly uncertain. Government initiatives sparked by the pandemic such as ‘everyone in’ have also temporarily distorted the homelessness landscape by dramatically reducing rough sleeping and this has had an impact on short-term demand for our services although as the scheme comes to an end we expect this to unwind.

The over-riding factor in all our efforts was managing the uncertainty within the companion group and the staff team and ensuring the health and well-being of all concerned. But it did not stop the excellent work we do, nor prevent finding opportunities in adversity, and we reacted as an organisation to help both our own and the wider community wherever possible.

We have continued to support a range of other charities and voluntary organisations including ongoing partners Hertfordshire Association for the Care and Rehabilitation of Offenders (“HACRO”) and St Albans Foodbank.

Trading shortfalls have been partially offset by support from a range of donors, trusts and foundations as well as the grants from the government. We are grateful to everyone who has supported us during another year dominated by the pandemic.

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EMMAUS ST ALBANS TRUSTEES’ REPORT

The Emmaus St Albans team have continued to respond positively, with flexibility, a can-do attitude and significant reserves of stamina given the ongoing nature of the disruption. The companions have remained resilient, although prolonged restrictions have inevitably led to a degree of weariness. Our trustees and key stakeholders have continued to be very supportive during an unprecedented period and we extend our thanks to them all.

Achievements and performance

The main achievement this year has been keeping the community safe and virus free. This in turn has enabled us to make the most of those periods in the year where trading was possible and minimise loss of income. The loss of the Harpenden store at the end of the year will present challenges in 2021/2 as we seek to replace both storage space and a retail outlet in a tough and uncertain market.

Work continued throughout the year to scope how we may best undertake major improvements to the existing facilities at our site in Hill End, St Albans. We have occupied this building for nearly 20 years and as well as a pressing need to make good the utilities and other infrastructure items, we also want to make better use of space to provide more training activity, upcycling, and to expand our work with partner organisations. We would like to provide more non-resident opportunities for people at risk of homelessness in the local community, as well as supporting our resident companions. Whilst we have received planning permission for a potential redevelopment scheme, any decision to press ahead will be subject to the availability of funding and the balancing of the need to maintain existing premises versus the desire to expand and improve on the Hill End site.

Towards the end of the year the small staff team underwent a period of transition with a new Business Development Manager and CEO joining the organisation. Both settled into their roles swiftly and disruption was minimal.

We continue to be most grateful to our Patrons, Lord and Lady Cecil, for their support in so many ways. Our trustees and other volunteers remain a core part of our work and we were delighted to receive a steady flow of new supporters, stakeholders, politicians, local and county council officers, and many others as visitors to our community as Covid allowed. We are confident that our ability to do more will be greatly enhanced by further strengthening our local partnerships

We continue to enjoy strong support from businesses, including regular donations of food, which has helped us to feed our companions a varied and high-quality diet. Our thanks in particular go to Ocado Group plc who remain a key supporter.

Solidarity

A big part of the work Emmaus does focuses on solidarity, both locally and more widely. We believe we have a great deal more to offer. We continue to support all parts of the wider Emmaus movement with solidarity payments.

Our companions

The primary focus of all new areas of trading is to ensure that it allows us to create new opportunities for companions in everything that we do. We remain proud to be supporting companions as they progress in their lives, with support for those ready for employment into full-time jobs and we are pleased these aims are increasingly successful.

This year we have continued to face challenges in achieving full occupancy. There are still the barriers we have faced in previous years, such as the reluctance among some homeless people to reject Universal Credit or to participate in the work of the community. However, in addition, the pandemic has constrained both referrals to our service and the opportunities for companions to move on into external employment and accommodation. There are clear signs that this situation will improve for the year 2021/22.

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EMMAUS ST ALBANS TRUSTEES’ REPORT

Companion Data Table

2019/2020
 2020/21
Average age 48 49
Gender: Male 88% 86%
Female 12% 14%
Positive Move-Ons 53% 40%
Number of rooms 42 39
Occupancy rate 78% 66%

We believe that the reduction in occupancy levels is the result of various government initiatives put in place to reduce rough sleeping and evictions during the pandemic. The number of rooms has reduced slightly because we have repurposed some for wider community use.

Referrals & New Companions

We continue to receive referrals from multiple sources, with many from mental health, prison and addiction services. As ever, we try to balance the needs of the new companions with those of the established community.

We received 117 referrals across the year and 22 new companions joined the community. This figure has been impacted by the pandemic and compares to 148 referrals / 23 new companions in 2019/20.

Move-On

Over the year we have had 15 companions move-on. 9 of those were asked to leave the community by way of a Notice To Quit for breaches of no-alcohol on site, drug use etc. The other 6 were positive move-ons. This compares to 17 positive move-ons for the 2019/2020 period. Opportunities for positive move-on were undoubtedly constrained by the effects of the pandemic. However, as with our occupancy, there are clear signs that this situation will improve in 2021/22.

Solidarity

Over the year we have provided solidarity rooms to those who have no recourse to public funds and are ineligible to claim housing benefit. We have supported four people during the year at a cost of some £23,000. The skills, knowledge, experience, and work ethos these companions bring with them is vital to the community, as well as bringing welcome cultural diversity.

We continue to get requests for solidarity although we are limited in the number of rooms we can offer. Typically, a solidarity companion will stay for 2.5 – 3 years.

Looking ahead

The key aim for 2021/22 will be to ensure that we increase the number of people we can help. Key to achieving this will be a number of factors including catch-up on much needed maintenance to our existing premises, growing the social enterprise – scaling up our house clearance and online operations and - if the cost and availability of premises permits - expanding our retail network. This should help us to increase the work we are able to offer companions, maximising occupancy of the rooms at Hill End and building valuable partnerships with local charities and groups who share similar purposes to our own. Improving processes, particularly recycling, will enable us to further reduce waste sent to landfill. This is one factor which will help to increase our financial resilience as we will be offering more ‘premium’ products to customers but also crucially increases the range of skills and activities available to companions. We particularly want to increase the number of non-resident companions who we can support by developing partnerships with other local charities and organisations.

DocuSign Envelope ID: 54FEA71B-746B-4E16-8E47-095B8EE464C1

EMMAUS ST ALBANS TRUSTEES’ REPORT

Impact

We strongly believe that the inherent value of our support and the positive progress made by our companions far exceeds our annual costs. As well as the direct benefits for individuals, the reduction in demands on local health, housing, employment, criminal justice, and other services is considerable. Alongside the evidence from personal success stories amongst our individual companions, we continue to assess the potential to undertake an in-depth evaluation of the direct added value an Emmaus community can bring to a locality.

Principal funding sources

The principal unrestricted funding sources for the charity are currently retail income, gift aid, legacies, donations, and housing benefit.

Financial review

Overall, gross income for the year was, £881,981, just over £200k (or 20%) down from the £1,099,482 achieved during the prior year. This decrease had been driven by the ongoing financial impact of the Covid-19. Generous supporters again contributed donations and legacies of £41,676 (2020 £78,913).

Costs continued to be tightly controlled with overall spend of £934,175 down £182,773 (or 16%) from the prior year figure of £1,116,948. The impact of Covid generated an operating loss which was partly offset by the receipt of Government Retail Support Grants of £101,293 (2020 - £125,000), Government Job Support Grants of £27,934 (2020 - £18,029) and shop rent and business rates concessions.

The overall deficit for the year was £52,194 (2019-2020 - £17,466).

The charity continues to be run efficiently while seeking to achieve high standards of governance. No member of staff was paid more than £60,000 p.a.

Reserves

The charity has considerable fixed operating costs amounting to £934,175 in the year ended 30 June 2021. The trustees’ policy is to maintain a minimum level of reserves, in cash equivalent to three months expenditure estimated at £233,00 based on the actual costs for the year to 30 June 2021.

At 30 June 2021, total unrestricted funds were £848,095 of which £435,603 was the net current asset position and £485,288 was held in cash or cash equivalents.

The Charity Governance Code

The trustees are aware of the refreshed version of the Charity Governance Code which was published in 2020 and the guidance published in the new EDI principle will be incorporated into the board’s ongoing governance review process. The Charity Governance Code sets out the principles and recommended practice for good governance within the sector. The board confirmed our intention to comply with the code and an analysis of this was completed in 2020/21 and will be regularly reviewed thereafter.

Equality, Diversity, Inclusion

Equality, Diversity, and Inclusion (“EDI”) are essential pillars for an organisation focused on reducing stigma, promoting wellbeing, and sustaining positive change. Our view of our equality performance is that there are improvements we can make to ensure we have a diverse, representative organisation, and that our services are inclusive and welcoming to people from currently under-represented groups. We recognise that we can always do more to be representative of the communities we serve and this will continue to be factored into our recruitment policy (although as we are a small organization with relatively low staff turnover change will of necessity be gradual).

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EMMAUS ST ALBANS TRUSTEES’ REPORT

Strategy and Risk Management

We will continue to review the performance and challenges faced by the social enterprise and retail environments in which we operate and ensure the charity extends its support and works with those most in need. Our guiding strategic ambition is to have a more comprehensive and better targeted development proposition for more companions which we deliver from better facilities in an environment which is safer, greener and more friendly.

Responsibility for the organisation's strategic direction rests with the trustees who invite the input of other stakeholders. The risk register is continually reviewed by both the Risk Committee and the board, as well as the systems and procedures established to identify and mitigate the risks the charity faces. The risk register is prepared in accordance with the Charity Commission document (CC26 dated June 2010).

The most immediate and significant risk continues to be the potential impact of Covid-19, either directly through an infection within the community, or indirectly, as we have experienced with lockdowns and the loss of income. Our focus is on the safety and health of all the companions, staff and all visitors to the shops and community, but also on mitigation of the potential loss of income.

The risk identified in the charity’s risk register regarding the uncertainty over the government proposal to reduce Housing Benefit has receded somewhat but longer-term remains a key concern. We are also alert to our potential vulnerability arising from reliance on retail for most of our income. the intent is to continue to expand and diversify the social enterprise to minimise such a risk.

Structure, governance, and management

The charity is a company limited by guarantee, incorporated on 6th January 1999, and registered as a charity on 3rd February 1999. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association, which were last revised in 2019. A copy is available on request from the Company Secretary.

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

The trustees, who are also the directors for the purpose of company law, who served during the year were:

John Richard Belt (Appointed 10 June 2021)
Samantha Drury
Julia Sharon Elson
Richard Anthony Exact
Rosemary Susan Fraser
Heather Margaret Hurford
Chloe Mann (Appointed 10 June 2021)
Robert James Prynn
Claire Holloway (Resigned 21 January 2021)
Ivan Marshall (Resigned 21 January 2021)
Keith Neill Tolladay (Resigned 21 January 2021)
Jonathan Landau (Resigned 20 July 2020)

Recruitment and Appointment of Trustees

Under the requirements of the Memorandum and Articles of Association each trustee is elected for a fixed three-year term of office, which will expire at the conclusion of an Annual General meeting, but then shall be eligible for re-election. Any trustee having completed nine years continuous service shall not be eligible for re-appointment for at least one year unless there are exceptional circumstances.

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EMMAUS ST ALBANS TRUSTEES’ REPORT

The charity seeks to ensure that the trustee body includes individuals with experience of the needs of homeless individuals as well as the more traditional business skills. Recruitment of trustees has been undertaken and is planned to ensure that sufficient skills are in place as long-standing trustees complete their period of tenure.

Trustees are required to provide a list of their skills, (and update it each year), and in the event of particular skills being lost due to retirements, individuals are approached to offer themselves for election to the trustee body. Emmaus St Albans is a member of the National Council for Voluntary Organisations (NCVO) and positively recruits for trustees with specific skills and/or life experience.

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EMMAUS ST ALBANS TRUSTEES’ REPORT

Statement of Trustees’ Responsibilities

Company and charity law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the surplus or deficit of the charity for that period. In preparing those financial statements the trustees have:

Connected Charities

The charity is a member of Emmaus UK Federation, together with 28 other Emmaus groups and communities. The charity is also a member of Emmaus Europe and Emmaus International.

The Directors of Emmaus St Albans control a dormant company, Emmaus Hertfordshire (No: 10687735). The original intention was that this company would be used for promotion, publicity, and fundraising, but it remained dormant throughout the period to 30 June 2021.

Declaration

In accordance with company law, as the company's directors we certify that:

Auditor

The auditor, Mercer and Hole Chartered Accountants, was appointed under section 487(2) of the Companies Act 2006. A resolution regarding the appointment of the auditor will be proposed at the Annual General Meeting.

This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (January 2015).

This report has been prepared in accordance with the special provisions of S414 (3) of the Companies Act 2006 relating to small companies.

7/3/2022

This report was approved by the trustees on .................... and signed on their behalf by:

................................. R S Fraser Co-Chair Trustee

................................. H.M.Hurford Co-Chair Trustee

7/3/2022 Dated: .........................

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EMMAUS ST ALBANS INDEPENDENT AUDITOR’S REPORT

Opinion

We have audited the financial statements of Emmaus St Abans (the 'charitable company') for the year ended 30 June 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is 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 Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

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EMMAUS ST ALBANS INDEPENDENT AUDITOR’S REPORT

We have nothing to report in this regard.

Matters on which we are required to report by exception

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 6, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

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EMMAUS ST ALBANS INDEPENDENT AUDITOR’S REPORT

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

We gained an understanding of the legal and regulatory framework applicable to the charitable company and the hospitality sector in which it operates and considered the risk of acts by the charitable company that were contrary to applicable laws and regulations, including fraud. These included, but were not limited to, the Companies Act 2006 and the Charities SORP 2019.

We evaluated trustee’s incentives and opportunities for fraudulent manipulation of the financial statements and the financial report (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate entries including journals to overstate revenue or understate expenditure and management bias in accounting estimates.

Audit procedures performed by the engagement team included:

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non- compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

……………………………………

Jolene Upshall FCA (Senior Statutory Auditor) For and on behalf of Mercer & Hole, Chartered Accountants

Batchworth House Batchworth Place Church Street Rickmansworth Hertfordshire 7/3/2022 WD3 1JE Date: ……………………………………

Mercer & Hole is eligible to act as auditor in terms of section 1212 of the Companies Act 2006.

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EMMAUS ST ALBANS

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

Statement of Financial Activities (including Income and Expenditure Account)

For the year ended 30 June 2021

Notes
Income
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
Other income
7
Total income
Expenditure
Raising funds
8
Charitable activities
9
Total expenditure
Net income/(expenditure)
Transfers
Net movement in funds for the
year
Reconciliation of funds
Fund balance brought forward at
1 July 2020
Fund balance carried forward
at 30 June 2021		 Total
Unrestricted
Funds
£
31,076
241,639
462,342
901
114,526
850,484
322
930,724
931,046
(80,562)
18,648
(61,914)
910,009
848,095		 Total
Restricted
Funds
£
10,600
-
-
-
20,897
31,497
-
3,129
3,129
28,368
(18,648)
9,720
484,139
493,859		 Total
Funds
2021
£
41,676
241,639
462,342
901
135,423
881,981
322
933,853
934,175
(52,194)
-
(52,194)
1,394,148
1,341,954		 Total
Funds
2020
£
78,913
274,739
594,061
1,135
150,634
1,099,482
28,979
1,087,969
1,116,948
(17,466)
-
(17,466)
1,411,614
1,394,148

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

All income and expenditure derives from continuing activities.

The split of funds for the comparative year is included in note 23 of the accounts.

DocuSign Envelope ID: 54FEA71B-746B-4E16-8E47-095B8EE464C1

EMMAUS ST ALBANS

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

Balance Sheet as at 30 June 2021

Notes
Tangible Fixed Assets
14
Current Assets
Debtors
15
Cash at bank and in hand
Creditors
Amounts falling due within 1 year
16
Net Current Assets
Net Assets
Accumulated Funds
Unrestricted funds
Restricted funds
17
Total Charity Funds
17		 30 June 2021
£
902,770
102,959
485,288
588,247
(149,063)
439,184
1,341,954
848,095
493,859
1,341,954		 30 June 2021
£
902,770
102,959
485,288
588,247
(149,063)
439,184
1,341,954
848,095
493,859
1,341,954		 30 June 2020
£
943,662
73,397
505,020
578,417
(127,931)
450,486
1,394,148
910,009
484,139
1,394,148		 30 June 2020
£
943,662
73,397
505,020
578,417
(127,931)
450,486
1,394,148
910,009
484,139
1,394,148
588,247
(149,063)		 578,417
(127,931)
1,341,954 1,394,148
848,095
493,859		 910,009
484,139
1,341,954 1,394,148

The trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the 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 accounts, so far as applicable to the company.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime within Part 15 of the Companies Act 2006 and with the Financial Reporting Standard (FRS 102).

7/3/2022

Approved by the Board of Trustees and Directors on………………………and signed on their behalf by:

…………………………………………………… ……………………………………………
R Fraser H Hurford
Co-Chair Trustee Co-Chair Trustee
Date: ………………………………………
3/3/2022		 Date: …………………………………
7/3/2022

The notes on pages 14 to 24 form part of these financial statements.

DocuSign Envelope ID: 54FEA71B-746B-4E16-8E47-095B8EE464C1

EMMAUS ST ALBANS

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

Statement of Cash Flows

For the year ended 30 June 2021

Note
Cash flows from operating activities
22
Cash flows from investing activities
Sale of disposed assets
Interest income
Purchases of tangible fixed assets
Net cash from investing activities
Cash flows from financing activities
Cash used in financing activities
Net cash from financing activities
(Decrease) / Increase in cash and cash
equivalents in the year
Total cash and cash equivalents at 1 July
2020
Total cash and cash equivalents at 30 June
2021		 2021
£
(15,633)
-
901
(5,000)
(4,099)
-
-
(19,732)
505,020
485,288		 2020
£
95,524
500
1,135
1,635
-
-
97,159
407,861
505,020

DocuSign Envelope ID: 54FEA71B-746B-4E16-8E47-095B8EE464C1

EMMAUS ST ALBANS

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

1. Accounting policies

Charity information

Emmaus St Albans is a private company limited by guarantee incorporated in England and Wales. The registered office is Hill End Lane, St Albans, Herts, AL4 OFE.

1.1

Accounting convention

The financial statements have been prepared in accordance with the charity’s governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

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

The accounts have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2

Going concern

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

1.3

Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

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

1.4 Incoming resources

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

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

Assets for distribution are recognised only when distributed. Assets given for use by the charity are recognised only when receivable.

Income from 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.

1.5

Resources expended

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.

All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings.

DocuSign Envelope ID: 54FEA71B-746B-4E16-8E47-095B8EE464C1

EMMAUS ST ALBANS

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

1. Accounting polices

(Continued)

1.6 Tangible fixed assets

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

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Land and buildings leasehold 2% straight line / lease term Fixtures, fittings & equipment 20% straight line Motor vehicles 20% straight line

1.7 Stocks

The Charity held undistributed assets, principally donated goods awaiting resale, at the year end that have not been recognised in these financial statements. The value of these is dependent on what a willing buyer would pay and hence it is not practical to estimate.

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

1.9 Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

1.10 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

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

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

DocuSign Envelope ID: 54FEA71B-746B-4E16-8E47-095B8EE464C1

EMMAUS ST ALBANS

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

3. Donations and legacies

.
Donations and legacies
Donations and gifts
For the year ended 30 June 2020
Donations and gifts
Hill End Multifunction Room:
Clothworks Foundation
Hertfordshire Community
Foundation
St Albans Community Foundation
The Albert Hunt Trust
Freemasons’ Community Fund
Covid-19 Emergency Fund:
2.6 Challenge – Little Lilly
Carluccio Foundation
eBay
Emmaus UK
Herts Community Foundation
Neighbourly
Prudential/Charities Trust
Tesco Bags of Help
CAF Charities Aid
Other Donations and Gift aid
Other Donations and Gift aid		 Unrestricted
Funds
£
31,076
55,913
-
-
-
-
-
-
-
-
3,036
-
-
1,320
500
200
26,020
31,076		 Restricted
Funds
£
10,600
23,000
-
-
-
-
10,000
-
-
-
-
550
-
-
-
50
-
10,600		 Total
2021
£
41,676
-
-
-
-
10,000
-
-
-
3,036
550
-
1,320
500
250
26,020
41,676		 Total
2020
£
78,913
78,913
8,000
5,000
5,000
5,000
-
825
9,980
8,687
5,270
5,000
400
1,500
500
-
23,751
78,913

4. Charitable Activities

Housing Benefit 2021
2020
£
£
241,639
274,739

DocuSign Envelope ID: 54FEA71B-746B-4E16-8E47-095B8EE464C1

EMMAUS ST ALBANS

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

5. Other trading activities

Sales of donated furniture and household items 2021
2020
£
£
462,342
594,061

6. Investments

Interest receivable 2021
2020
£
£
901
1,135

7. Other income

Net gain on disposal of tangible fixed
assets
Rental
Benefits received from delivery/volunteer
usage to St Albans & District Foodbank
Sundry deposits
Government support
IT Suite income		 Unrestricted
Funds
£
-
45
5,000
141
109,339
-
114,525		 Restricted
Funds
£
-
-
-
-
19,888
1,009
20,897		 Total
2021
Total
2020
£
£
-
500
45
7,105
5,000
-
141
-
129,227
143,029
1,009
-
135,422
150,634

Government support

During the year the Charity received Government Retail Support Grants of £101,293 (2020 - £125,000) and Government Job Support Grants of £27,934 (2020 - £18,029).

DocuSign Envelope ID: 54FEA71B-746B-4E16-8E47-095B8EE464C1

EMMAUS ST ALBANS

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

8. Raising funds

2021 2020
£ £
Fundraising and Publicity 322 28,979

9. Expenditure on Charitable Activities

Staff costs
Companion costs
Premises costs
Vehicle fleet and travel costs
Equipment Hire and workshop
Accounting, legal and banking
Administration
Support to others
Contribution to Emmaus Fund (Note 19)
Exceptional costs (Note 10)
Share of support costs (Note 11)
Share of governance costs (Note 11)
Analysis by Fund
Unrestricted funds
Restricted funds
Analysis by fund 30 June 2020
Unrestricted funds
Restricted funds		 Community
Running
Costs
£
374,675
171,155
214,992
47,451
24,658
31,981
33,729
-
-
898,641
-
11,243
10,054
919,938
916,809
3,129
919,938
1,002,872
51,321
1,054,193		 Solidarity
Payments
£
-
-
-
-
-
-
-
13,915
-
13,915
-
-
-
13,915
13,915
-
13,915
33,776
-
33,776		 Total
2021
£
374,675
171,155
214,992
47,451
24,658
31,981
33,729
13,915
-
912,556
-
11,243
10,054
933,853
930,724
3,129
933,853		 Total
2020
£
403,403
149,542
296,560
52,261
56,886
22,083
20,354
13,379
20,397
1,034,865
36,246
6,789
10,069
1,087,969
1,036,648
51,321
1,087,969

Support to others (including other Emmaus communities: £13,915 (2020: £13,379)

DocuSign Envelope ID: 54FEA71B-746B-4E16-8E47-095B8EE464C1

EMMAUS ST ALBANS

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

10. Exceptional costs

Write off of fixed assets
Consultancy fees		 2021
£
-
-
-		 2020
£
26,354
9,892
36,246

11. Support costs

Administration
Accountancy
Audit Fee
Analysed between
Charitable activities		 Support
costs
£
11,243
-
-
11,243
11,243		 Governance
costs
£
-
6,437
3,617
10,054
10,054		 2021
£
11,243
6,437
3,617
21,297
21,297		 2020
Basis of
Allocation
£
6,789
25%
5,544
25%
4,525
Full Cost
16,858
16,858

Governance costs includes payments to the auditors of £3,617 (2020 - £4,525)

12. Trustees

None of the trustees, (or any persons connected with them), received any remuneration or reimbursement of expenses during the year.

The Charity provides supplementary indemnity insurance cover for all trustees £300 (2020: £300)

DocuSign Envelope ID: 54FEA71B-746B-4E16-8E47-095B8EE464C1

EMMAUS ST ALBANS

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

13. Salary Costs

Salaries (Gross)
Employers NI
Pension costs
Recruitment, training and other costs		 2021
£
336,073
24,515
9,574
4,513
374,675		 2020
£
362,984
27,448
11,754
1,217
403,403

The average number of employees during the year was: 12 (2020: 15).

There were no employees (2020 - 0) whose annual remuneration was £60,000 or more.

14. Fixed Assets

Land and
buildings
leasehold
£
Cost
1 July 2020
1,347,321
Additions
-
Disposals
-
30 June 2021
1,347,321
Depreciation
1 July 2020
432,548
Charge
31,083
Disposals
-
30 June 2021
463,631
NBV
30 June 2021
883,690
1 July 2020
914,773
5. Debtors
Trade debtors
Prepayments and accrued income
Other debtors		 Fixture,
fittings &
equipment
Motor
vehicles
£
£
95,112
152,447
-
5,000
(81,081)
(100,617)
14,031
56,830
90,662
128,008
2,169
12,640
(81,081)
(100,617)
11,750
40,031
2,281
16,799
4,450
24,439
2021
£
19,860
64,913
18,186
102,959		 Fixture,
fittings &
equipment
Motor
vehicles
£
£
95,112
152,447
-
5,000
(81,081)
(100,617)
14,031
56,830
90,662
128,008
2,169
12,640
(81,081)
(100,617)
11,750
40,031
2,281
16,799
4,450
24,439
2021
£
19,860
64,913
18,186
102,959		 TOTAL
£
1,594,880
5,000
(181,698)
1,418,182
651,218
45,892
(181,698)
515,412
902,770
943,662
2020
£
18,559
30,596
24,242
73,397

15. Debtors

DocuSign Envelope ID: 54FEA71B-746B-4E16-8E47-095B8EE464C1

EMMAUS ST ALBANS

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

16. Creditors: Amounts falling due within one year

Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income
17
Movement in funds
30 June 2021
Unrestricted funds:
General fund
Restricted funds:
Hill End Community Fund:
Hill End Development Fund
Multifunction Suite
Various improvements
Shop extension
Flat conversion
National Lottery Grant
Beatrice Laing Fund:
Property improvements
Misc Funds (6)
Portland Donation
Total funds
30 June 2020
Unrestricted funds:
General fund
Restricted funds:
Hill End Community Fund
Beatrice Laing Fund
Misc Funds (4)
Total funds		 As at
1 July
2020
£
910,009
-
880
20,273
80,774
44,864
314,145
20,222
2,981
-		 2021
£
3,504
46,784
50.114
48,661
149,063

Income
Expenditure
£
£
850,484
(931,046)
10,000
-
1,009
(3,129)
-
-
-
-
-
-
-
-
-
-
600
-
19,888
-		 2020
£
6,893
29,701
38,598
52,739
127,931
Transfer
between
As at
funds
30 June
2021
£
£
18,648
848,095
-
10,000
1,240
-
-
20,273
-
80,774
-
44,864
-
314,145
-
20,222
-
3,581
(19,888)
-
-
1,341,954
Transfer
between
As at
funds
30 June
2020
£
£
-
910,009
-
460,936
-
20,222
-
2,981
-
1,394,148
1,394,148 881,981
(934,175)
As at
1 July
2019
£
899,154
487,359
21,980
3,121
Income
Expenditure
£
£
933,453
(922,598)
23,000
(49,423)
-
(1,758)
-
(140)
1,411,614 956,453
(973,919)

DocuSign Envelope ID: 54FEA71B-746B-4E16-8E47-095B8EE464C1

EMMAUS ST ALBANS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

18. Analysis of net assets between funds

Fund balances as at 30 June 2021 represented by:
Tangible assets
Current assets/(Liabilities)
Fund balances as at 30 June 2020 represented by:
Tangible assets
Current assets/(Liabilities)		 Unrestricted
Funds
412,492
435,603
848,095
Unrestricted
Funds
463,384
446,625
910,009		 Restricted
Funds
490,278
3,581
493,859
Restricted
Funds
480,278
3,861
484,139		 Total
902,770
439,184
1,341,954
Total
943,662
450,486
1,394,148

19. Contingent Liabilities

During its formative years Emmaus St Albans received development funding of £214,286 from the Emmaus Fund. These sums were advanced without an interest coupon or a repayment requirement. The Emmaus ethos of solidarity is based on the practice that once a community becomes fully established it too is encouraged to contribute its surplus funds to the Emmaus Fund so that other communities may have access to similar funding benefits. Emmaus St Albans fully supports this concept and whenever its total funds exceeded its own internal and reserve requirements it has contributed reimbursements.

During the year ended 30 June 2021 no such contributions, (2020 - £20,397), as the original development funding was completed in 2020.

20. Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Operating leases which expire:
Within 1 year
Within 2 – 5 years
Over 5 years
Total		 2021
£
104,000
370,000
181,000
655,000		 2020
£
104,000
370,000
285,000
759,000

DocuSign Envelope ID: 54FEA71B-746B-4E16-8E47-095B8EE464C1

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

EMMAUS ST ALBANS

21. Related Party Transactions

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

22. Reconciliation of net movement in funds to net cash flow from operating activities

Net movement in funds
Adjustments for:
Deduct interest income classified under investing activities
Gain on disposal of tangible fixed assets
Depreciation / impairment of tangible fixed assets
Sundry
Movement in working capital:
Decrease / (increase) in debtors
Increase / (decrease) in creditors
Net cash (used in) / from operating activities		 2021
£
(52,194)
(901)
-
45,892
(1)
(29,562)
21,133
(15,633)		 2020
£
(17,466)
(1,135)
(500)
81,080
-
49,248
(15,703)
95,524

DocuSign Envelope ID: 54FEA71B-746B-4E16-8E47-095B8EE464C1

EMMAUS ST ALBANS

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

23. Statement of Financial Activities – Prior year (including an Income and Expenditure Account)

For the year ended 30 June 2020

Income
Donations and legacies
Charitable activities
Other trading activities
Investments
Other income
Total income
Expenditure
Raising funds
Charitable activities
Total expenditure
Net income/(expenditure)
Transfers
Net movement in funds for the year
Reconciliation of funds
Fund balance brought forward at 1 July 2019
Fund balance carried forward at 30 June 2020		 Total
Unrestricted
Funds
£
55,913
274,739
594,061
1,135
150,634
1,076,482
28,979
1,036,648
1,065,627
10,855
-
10,855
899,154
910,009		 Total
Restricted
Funds
£
23,000
-
-
-
-
23,000
51,321
51,321
(28,321)
-
(28,321)
512,460
484,139		 Total Funds
2020
£
78,913
274,739
594,061
1,135
150,634
1,099,482
28,979
1,087,969
1,116,948
(17,466)
-
(17,466)
1,411,614
1,394,148