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2021-03-31-accounts

Company number: 03734793 Charity number: 1075947

Spitalfields Crypt Trust

Report and financial statements For the year ended 31 March 2021

Spitalfields Crypt Trust

Contents

For the year ended 31 March 2021

Reference and administrative information ...................................................................................... 1 Trustees’ annual report .................................................................................................................. 3 Independent auditor’s report ....................................................................................................... 28 Statement of financial activities (incorporating an income and expenditure account) ................... 32 Balance sheet ............................................................................................................................... 33 Statement of cash flows ................................................................................................................ 34 Notes to the financial statements ................................................................................................. 35

Spitalfields Crypt Trust

Reference and administrative information

For the year ended 31 March 2021

Company number 03734793 Country of incorporation United Kingdom Charity number 1075947 Country of registration England & Wales

Registered office and operational address 116-118 Shoreditch High, Street, London, E1 6JN

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:

Philip J. Young Chair Sarah Brufal Resigned 9 August 2021 David C. Ely Andrew D. Enga Jean-Baptiste Petard Corin Pilling Matthew Ubogagu Rajul Gill Clare Williamson Company Secretary Daniel Hilton Key management Steve Coles Chief Executive (resigned 16 July 2021) personnel Tony Chasteauneuf Chief Executive (appointed 16 August 2021) Daniel Hilton Director of Operations Leah Johnson Director of Retail Louisa Snow Director of Services (appointed October 2020) Bankers HSBC Bank plc 75 Whitechapel Road London E1 1DU Solicitors Gowling WLG (Pro Bono support) 4 More London Riverside London SE1 2AU

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Spitalfields Crypt Trust

Reference and administrative information

For the year ended 31 March 2021

Auditor Sayer Vincent LLP Chartered Accountants and Statutory Auditor Invicta House 108-114 Golden Lane LONDON EC1Y 0TL Accountants JS2 Limited One Crown Square Church Street East Woking Surrey GU21 6HR

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Spitalfields Crypt Trust

Trustees’ annual report

For the year ended 31 March 2021

The Trustees, who act in the role of directors, present their report together with the financial statements of the Trust for the year ended 31 March 2021.

The reference and administrative information set out on pages 1 to 2 form 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 (SORP applicable to charities preparing their accounts in accordance with FRS 102).

Welcome/Introduction

Welcome to our 2020-21 Annual Report. We are an East London charity helping our local community to recover from drug or alcohol addictions and other complex needs. We help people to achieve lasting recovery and a more fulfilling life.

From our Chair of Trustees, Philip Young

As we look back on the 2020-2021 financial year, it is the challenges of Covid-19 that shaped it so significantly.

March 2020 began as normal, with our drop-in centres, counselling groups, classes, courses, and social enterprises all busy as usual, and our charity shops earning £25,000 or so each week. And then the world changed. The drop-in had to close, counselling groups stopped while one-to-one sessions doubled and moved online, training ceased, second-hand phones and laptops were bought or borrowed to get as many students and residents online as possible, and the income from the shops dropped to zero in two weeks.

However, as I write in July 2021, we’ve got through it. Our shop staff have worked incredibly hard between lockdowns, our fundraisers raised more than ever before, our housing and counselling staff have worked longer shifts to keep travel and handovers to a minimum when needed, our drop-in team have found new ways to meet the immediate needs of people living on the street, and our training and development team have kept all our students informed and involved online. And in the middle of all that, we started a Housing First project, working in partnership with Poplar HARCA and the NHS, which aims to house ten long-term rough sleepers by October 2021. Our finances are in good shape and, in many ways, our culture and working practices stronger than ever.

This year will bring some change at SCT as Steve Coles, our CEO, moves on to new things after four and a half years. We say a big ‘thank you’ to Steve for his hard work over his time with us and particularly for leading and supporting SCT through the last 15 months. We will welcome Tony Chasteauneuf to the team in August 2021 and look forward to his leadership.

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As ever, I’m grateful for all of SCT’s Trustees, staff, volunteers, funders and other supporters. Thank you for all you do – we couldn’t have done it all without you.

Philip Young, Chair of Trustees, July 2021

From our CEO, Steve Coles

It has been a year like none other and I would not have believed you in early 2020 if you had told me that we were on the verge of a global pandemic, leading to previously unheard-of things such as ‘lockdowns’, ‘social distancing’, ‘lateral flow tests’ and much, much more. However, we’ve got through it…

I am immensely grateful to SCT’s dedicated team for everything they have done over the last year. Each one of them went the extra mile in providing support for residents, students, customers and colleagues. Each one of them showed extraordinary patience. Each one of them brought SCT’s ethos to life in and through their compassion, generosity and commitment. My heartfelt thanks go to all of them.

I often think of a description of recovery, which is used in the ‘Recovery Capital’ methodology that underpins SCT’s work:

‘…the essence of recovery is a lived experience of improved life quality and a sense of empowerment; that the principles of recovery focus on the central ideas of hope, choice, freedom and aspiration that are experienced rather than diagnosed and occur in real life settings… Recovery is a process rather than an end state, with the goal being an ongoing quest for a better life.’

In a year in which hope, choice, freedom and aspiration have felt in short supply, if not quite literally constrained, I am absolutely certain that Covid-19 has not extinguished or diminished those things but has, in fact, shown them to be the most important of things. I am also absolutely certain that SCT’s work helps bring about a better life for those who find themselves in great need.

There is change ahead as I prepare, with sadness, to say goodbye to my colleagues and friends at SCT. I’ll be handing over the reins to Tony Chasteauneuf, in whom I have every confidence. There is something timely and profound about the changing of this ‘season’ and I look forward to hearing about all that lies ahead for SCT in the coming months and years.

I conclude with another thanks to my colleagues, and also to all of SCT’s trustees, funders, partners, corporate supporters and volunteers. I couldn’t have got through the last year without you.

Steve Coles, CEO, July 2021

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About SCT

SCT was founded in 1965 to address the growing problems caused by homelessness, poverty, mental illness, and the criminal justice system.

We aim to address people’s needs holistically - working on long-term improvements to housing, employability, health, and social connections.

We believe many aspects of people’s lives need careful attention in order to help people achieve lasting recovery. To support our whole-person, place-based approach to recovery, we run a residential recovery hostel, supported housing, a Training and Development centre, a Housing First project, drop-in facilities for homeless people, two social enterprises offering a supportive training ground for those who want to take the next step, and several charity shops, all in East London.

Our Vision, Mission, and Principles

Vision

Our vision is a society where anyone with drug or alcohol addictions and complex needs can transform their life.

Mission

Our mission is to enable people with drug or alcohol addictions and complex needs to achieve lasting recovery and a more fulfilling life. Through our services, and by working with others, we aim to provide the UK’s most effective and compassionate recovery program.

Principles

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Why we are needed

As homelessness increases and people continue to face addiction, SCT takes on the two issues together.

We help people to find purpose in their lives and participate in their communities. SCT was born over 55 years ago, when the then vicar of Christ Church, Spitalfields opened up the doors of his church’s crypt to local men in the area who were homeless and struggling with alcohol addiction. This legacy of practical compassion lives on in Shoreditch where we continue to support hundreds of people each year. Unfortunately, the harm caused by homelessness and addiction in England continues to rise.

Addiction and complex needs:

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Housing:

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From across the sector, statistics show a consistent growth in harm caused by addictions and lack of proper housing, particularly in London. The pandemic has exacerbated existing complex needs and we are braced for a renewed crisis in addictions, mental health, and housing.

That’s why SCT tackles these issues together. We provide holistic services with creativity and compassion to help people recover from addiction, homelessness, mental health problems, and other complex needs.

Covid-19 and its impact on SCT

This report outlines the impact Covid-19 has had upon our work at SCT. In general, the effects of the pandemic upon health, housing, unemployment, and other complex needs have been farreaching.

For people already in recovery, lockdown has brought new, complex challenges, such as prolonged isolation, disruption of regular routines, and worsening mental health.

This reporting period has almost entirely been encompassed by the Covid-19 pandemic. The first lockdown was announced in London on March 23[rd] 2020, and after a turbulent year of changing restrictions, by mid-April 2021, non-essential shops were just reopening again.

As a result, all of our services have been greatly affected by the pandemic. Although we were able to open some shops, social enterprises, and services when the numbers of infections were low and the restrictions were lifted, our work has been significantly more challenging during this period.

SCT’s highlights of 2020-21

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Our recovery pathway

We take a unique approach to recovery, focusing on long-term, compassionate, and holistic goals. Taking the whole person into account, we believe we can effectively address the complex needs of the people who use our services. Over our 56 years of experience, we have developed what we call a ‘Recovery Pathway’ – a series of practical steps to help people move forward from addiction and homelessness.

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Those at the start of the pathway can visit our homeless drop-in, where we help people who may be still using drugs and alcohol. We also run a Housing First project which offers unconditional housing to people at any stage of their journey.

For those ready for recovery, we offer a residential (abstinence-based) program, along with supported move-on housing, and addictions counselling.

As part of mid-stage recovery, our Training and Development centre provides education and training opportunities, helping people to establish a routine, build new skills, boost their selfesteem, make friends, and engage with their local community.

The next step is work experience, which people can access through our social enterprises and charity shops, as well as finding further opportunities with partner organisations.

For those in long-term recovery, we also co-ordinate our peer-led recovery community, Choices, who meet regularly for support, understanding, and friendly guidance.

Drop-In Centre

We provide a consistent, face-to-face presence for homeless people or those at risk of homelessness in Shoreditch (and now Poplar).

Our busy day centres support people with practical necessities, such as food and clothing, and further support. We respond according to what people need, whether that involves practical support work, healthcare, food and drink, or simply offering a friendly community space.

News

This year our centres have had to close several times, but we’ve been supporting people face-toface as much as possible, working alongside our partners at THCC in Poplar, and The Tab and St. Leonard’s in Shoreditch. Our team have been helping with benefit claims, floating support, tenancy sustainment, money management, life skills, housing, applying for grants and loans, and supporting people with their settled status applications, assisting with resolving ID issues, and so on.

This year, the drop-in has not been able to benefit from volunteer help. Usually, the drop-in has regular support from members of the public, community groups, and our corporate partners.

The team have also been adjusting to the opening of SCT’s Housing First project in Tower Hamlets. Along with several new staff members, the team work together on both projects, and some of our Housing First residents became known to us through the drop-in centre. We have also accepted referrals from a range of other partners, such as Crisis and the Pathway team at the Royal London Hospital.

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At the same time, mental health conditions and harmful drug and alcohol use in the local area have become more challenging. With increased need in the local area and reduced resources, our workload has never been heavier.

Since our new drop-in centre at Poplar opened at the beginning of the pandemic, during this reporting period we have not been able to run our service at its full potential, but the team are feeling motivated for the next stage as restrictions are lifted.

Looking ahead

In general, we are hopeful that as we come out of the pandemic, more AA and NA groups will reopen and provide regular support to people struggling with harmful drug and alcohol use.

Similarly, we will be able to open the day programme and provide regular structure and support to people who are struggling with other complex needs.

The team feel positive about reopening and bringing back regular activities and group sessions. There will be a renewed focus on progression and helping people move on through different services, including SCT’s own programmes at Acorn House and the Training and Development centre.

The most uplifting thing about this year has been the team stepping in to lift each other up when things become difficult.

“We have all had moments but we have been there for each other. I could not ask for more.” – Drop-In Manager

Housing First

Housing First is based on the idea that housing is a human right. It is an approach which places homeless people directly into long-term, self-contained housing with no requirement that they progress through transitional housing programmes, such as hostels, shared housing, or timelimited tenancies based on special conditions.

Our Housing First project is supported by Crisis and DD McPhail, and is run in partnership with Poplar HARCA. This partnership allows us to offer up to ten tenancies a year over the course of the three-year project.

News

We launched our Housing First project in September 2020. Since then, we’ve been able to house 8 people in 9 months.

Several of our Housing First residents have been known to SCT for a long time, and it has been incredibly uplifting to help them into a safe home.

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Aaron* has been known to the support teams at SCT for over a decade. Last year, he’d spent six months in prison, and during the other six months he was seeing emergency services 3-4 times a week. In March 2021, he moved into his first flat with our Housing First project. Since then, he’s only had two incidents with emergency services.

While some of the current Housing First residents came to us through our own drop-in Centre, we have generally been working with people referred to us externally. Through Housing First, we have been able to build up good partnerships with ELFT, St Mungo’s, and other organisations in the local area.

Tyler* was previously using drugs approximately twice a month. He moved into his flat with our Housing First project in December 2020, since then he has only used three times. The team say he is feeling houseproud, clear-headed, and doing really well.

Practical challenges were brought by Covid-19. We moved the office from Shoreditch to Poplar as a result of lockdown restrictions, but this has turned out to be a positive step, as the new space better meets the needs of the people we work with.

With lockdowns, uncertainty, settling in new team members, and handling the increased need for support, it’s not been easy embarking on a new Housing First project at such a difficult time. However, the team have also been motivated by the effectiveness of the Housing First method.

“This has been a very good step in the right direction.” – Housing First Manager

Through working with our partners we have been successful in our project goals, and we are feeling positive about the project’s future. Housing First is an effective approach which best meets the needs of some of our service users.

Looking ahead

The pandemic brought a crisis for rough sleepers in London. While it’s been extremely challenging, we’ve welcomed the solidarity and hard work shown by the homelessness sector in supporting people and helping them off the streets. We are grateful for having this new opportunity to partner with other organisations who share our vision and mission, and we’re hopeful for the future.

Our aim for the next year is to provide a safe home for a further 10 people, and to continue providing support as and when people need it.

Therapeutic Programme (Acorn House)

The therapeutic programme at Acorn House offers abstinence-based residential treatment to homeless men with substance addiction issues. We provide group and one-to-one counselling to

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the residents in our 16-bed hostel. We work with hard-to-reach clients with complex needs, often those with a history of street homelessness.

We deliver a group programme three days a week, a further community group once a fortnight and one-to-one counselling to 16 residents. The programme includes groups relating to issues such as cross-addiction, trauma, identity, and insecure attachment. We facilitate residents presenting a life story to their group and support them in completing the first three steps of the 12-step programme. We also focus on challenging behaviour which may trigger a return to active addiction, such as associating with those still using or drinking.

News

During the year, we continued to explore improvements to the support we provide. We have therefore relaunched a more concentrated six-month programme. This allows residents to complete their time in group therapy, spend another month at Acorn House engaging with Aftercare and Progression, build a structure in their lives, and move on with a plan.

We are still in the early stages of the change but there is already a sense that residents feel they have more control over their lives. They seem more motivated in treatment and able to plan for their future. We have a more goal-orientated approach.

The secure base of Acorn House means the transition to supported housing without the usual 12step meetings, volunteering options, and even visits back to Acorn House due to Covid-19 restrictions has been very difficult. In the light of the challenges and learning of the past year, we are now looking at how to improve the outcomes for our residents transitioning to our supported housing.

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The transition to a six-month programme has allowed us to begin working more closely with our Training and Development team. The graduation of residents at six months now requires a referral to Training and Development, Progression and volunteering in social enterprises, which also connects us more closely with retail services at SCT. This supports the feeling of collaborative and multi-disciplinary work within the organisation.

Residents have started to present a life story to their group after one month of treatment. This has allowed the group to get to know them better early in treatment. We have seen the evidence of increased connection within the group through this intervention.

The challenge remains to deliver a high level of addiction treatment with limited resources. This was further exacerbated by the lack of support outside SCT due to the pandemic. The structures which we usually rely on when working in addiction treatment have not been in place. The 12-step fellowships which our residents rely upon had shut down face-to-face meetings, and online meetings were not an option for everyone. Medical services, mental health services, and even dentists had closed. Residents started to rely on us for all their support.

We have been welcoming residents with very complex needs and often with a long history of rough sleeping, focusing on how to support both emotional development and behavioural change. In a time when alcohol and drug use is increasing in the general population due to anxiety and loss of connection, these individuals are very vulnerable.

We were initially required to close the group programme due to Covid-19 restrictions. This meant that we had to support residents in filling up their time, often in their rooms to avoid transmission. We moved all one-to-one sessions onto online platforms and increased the number of sessions offered. After three months we opened groups again but had to keep numbers very small, so would run several groups in a day. As the pandemic unfolded, we assessed and reassessed levels of risk around transmission, starting to wear masks in group as the advice changed. We have continued to wear masks.

We have found that reducing the group programme to three times a week and increasing the oneto-one support, residents who may have otherwise felt over-exposed in group therapy every day have benefitted from more time alone with their counsellor providing individualised, specific support and guidance. It does, though, have an impact on resources as running group-based support is less intensive in terms of staff time. This has also created more space for residents to take part in classes offered in Training and Development, especially literacy which has been an issue for nearly half of our residents. We have seen individuals grow in confidence through these interventions, be it working in the garden or in the wood workshop.

We have been unable to allow volunteers to work at Acorn House in the past year due to Covid-19 restrictions. This has been a real loss to the service as we have always used volunteer placement counsellors to enrich our programme.

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Looking ahead

We would like to re-consider our staffing complement, and possibly expand to include a third counsellor, as 16 residents with very high support needs means a large caseload for our small team.

We also hope that as restrictions are relaxed, we will be able to access more external support and residents will have more access to AA and NA meetings.

We have already seen an increase in referrals as people try to access treatment for addiction. As the world opens-up more and more, so the anxiety seems to be increasing. We have learned many things working through the pandemic, and this will continue to inform our practice in the future. We will certainly try and maintain the increase in one-to-one therapy for our residents and try to offer a more individualised plan for each.

We will continue to deliver the six-month programme and review the impact this has on outcomes. We will also start to provide more mindfulness support to the residents and begin to offer auricular acupuncture to complement this practice. We will return to offering daily, client-led reflections every morning to the house. We will continue to liaise closely with Training and Development to provide a comprehensive graduate programme for those that have completed the therapeutic programme, maintaining structure in their day and options for their continued progression.

Supported Housing

SCT has three supported housing projects where we continue to support residents and prepare them for transitions to independent living accommodation.

Supported housing provides intensive housing management with well-coordinated support for people struggling with chronic addictions and other complex needs.

We also help residents to access local community organisations, signpost them to other agencies, get them involved in decision-making at SCT, and support them in seeking appropriate independent living for the future.

News

The average length of stay in Acorn House is 143 days and in our supported housing the average length of stay is 345.5 days. Most of the supported housing residents have been with SCT for up to 4 years, which is a testament to the quality of service being provided. During this reporting period, we had 43 service users come through our supported housing projects. Overall, 44% of the residents moved on in a planned way, 53% moved on in an unplanned way, and 3% were evicted.

The team have continued to support people in various ways; providing guidance on life and social skills, behaviour management, and support with physical, emotional, and mental health. We also provide practical support, signposting residents to legal and debt support, setting up and

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maintaining tenancies, financial management, supervising medication, and monitoring health and safety.

We conducted a resident survey during this reporting period, which found that 92% of residents feel safe in their home. Similarly, 80% said their home is a supportive environment, and we were heartened to read that 100% said that staff are very supportive, and 100% said support provided makes a difference in various aspects of their lives. However, 50% of residents were satisfied with maintenance response time, 76% felt their home is clean and tidy, and 64% felt there is a community spirit within the houses. While the results are positive on the whole, we will continue to use resident feedback to guide our work.

Low occupancy has been a challenge, while the regular services and programmes were disrupted this also had a knock-on effect on our supported housing occupancy rates.

A similar challenge has been brought by our usual partners and referral agencies not working at full capacity. Former Acorn House residents were not encouraged to visit Acorn House due to Covid-19 restrictions. At the same time, the self-help fellowship closing due to Covid-19 meant our residents have not been able to physically attend fellowships which encourage them to build network of friends and support.

During the pandemic, the Registered Provider’s Service and Property Assessments have been carried out virtually. This has been a positive change, as less time is required for inspection preparation. We have also enjoyed regular food donations which mean daily fresh supplies for healthy meals.

We also had difficulties with staff shortages due to job vacancies, staff being furloughed, and adjusting to flexible working patterns. While restrictions meant many of us have been working from home where possible, support work became more challenging for those staff and residents who find face-to-face meetings preferable or more accessible.

However, the team have remained positive and resilient while dealing with changing working hours, longer shifts, and staff shortages. It has been a turbulent period and we are looking forward to increasing stability over the next year.

Similarly, lockdown has helped some residents to become creative in finding structured activities as well as tapping into their hidden or dormant talents. We have residents who are computer and bike technicians, gardeners, carpenters, and artists. Most of them also got involved in exercising, and everyone has been looking out for and supporting their peers who are struggling.

Looking ahead

Now that we have adjusted to flexible working, the improvements to our staff’s work-life balance can continue. We are also looking at further ways to effectively work digitally and remotely, with more hot-desking for staff.

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As things return to “normal” we will be able to focus more on working with clients with complex mental health problems. They will be facing delayed appointments and a lack of consistent support, so additional care and attention will be required. We will also focus on ensuring constant referral and admissions into our projects and maintaining high occupancy.

Over the next year we will benefit from additional staff support and new staff settling in, we will also be paying close attention to Covid-related risk assessments and associated policies, while continuing our close collaborative work with the Housing Benefit department.

“I would just like to say how professional this place is being run. The adaptation of their staff and their routines due to Covid rules has been brilliant. Covid has not impacted the level of services on offer too much. I would like to thank the staff for their service to the rehab. It is very much appreciated. The level of services here and the staff have made this place an oasis for me and others. It has been a life saver. I would recommend this place”. – One of our supported housing residents.

Training & Development

The Training and Development centre offers a regular programme of activities and training to men and women in recovery from addictions.

We run a range of classes and activities to improve self-esteem, develop creativity, and provide people with the tools and skills to help them move forward in their recovery journey. We also support residents and students to gain work experience through our social enterprises and charity shops, providing a safe and accessible working environment to help build the confidence and skills needed to move on.

Our Progression service offers one-to-one support and advice to help people explore opportunities external to SCT such as volunteering, education, and employment. We also run Choices, a peer-led recovery community who meet two evenings a week.

News

In March 2020, Jess took over as Training and Development Manager. We also welcomed Louisa, our new Director of Services, in October 2020, after several months of the position being vacant. The greatest challenge during this reporting period was having the majority of staff on furlough for the majority of the year. The centre mostly remained closed between March 2020 and April 2021 – in mid-April we were able to start running classes for Acorn House residents only. Unfortunately, we have not been able to run our service as usual over the past year. We have recently introduced reflective practice for the Training and Development team which has been going well.

“It’s a great space to come together as a team as a source of support but also to reflect on the work we do and space to discuss how to best work and deal with situations that arise – it’s been super positive.” – Training and Development Manager

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Despite our gardening tutor being furloughed for much of this reporting period, SCT’s community garden won a Green Flag Award for the second year in a row. We also started recording a podcast in the gardens with staff and students discussing all things recovery.

During the summer months when Paper & Cup could reopen, we also had some dedicated volunteers; from July 2020 – October 2020 we had 8 people volunteer with us, which totalled 299 hours. We are also very grateful to our volunteers who have done an amazing job keeping the garden alive and thriving throughout the lockdown periods. Similarly, students and residents who have progressed through woodwork classes have also been volunteering in Restoration Station.

We did host a programme of activities online during lockdown. It was great to see the support and creativity of individuals across the community during those difficult months. We did virtual quizzes, yoga, coffee mornings, art classes, and more. However, particularly at the start of the year, some people did not have the benefit of access to internet and devices at home. It was also difficult to re-create the community and connection that people gain from being together in person.

For most of the year the team took on pastoral work, checking in with people over the phone, keeping contact through messages, and sending out a weekly newsletter. During the early months of 2021, we took time to reflect on what we do and plan for a new Training and Development, using the time as an opportunity to assess and make changes.

The most uplifting thing has been the creativity, support, and determination people have shown to themselves and to each other. We really enjoyed seeing residents re-engage positively when we were able to start running classes again in April 2021.

Looking ahead

We are also happy that our team are all doing well and we are able to reopen in September 2021. We are keeping busy and we have a lot to look forward to.

In September we will be re-introducing the Chaplaincy role at SCT, and in the summer we will bring on a new Progression Worker to offer continued ETE support through 1:1 coaching, group workshops, and an academy programme to our residents and students when they return. We are also starting a running club for the residents of Acorn House to promote fitness and wellbeing. In general, the pandemic has given us time to reflect on how we do things, what we do, and why. The team are working to ensure that we have a clear offering and pathway for anyone wishing to enrol upon reopening. We will take more of a person-led, strengths-based approach and create more opportunities to ensure that we support people along a pathway.

Retail

SCT retail comprises seven charity shops and two social enterprises. This provides regular, unrestricted funding for the organisation, a presence at the heart of our local community, and opportunities for volunteering, work experience, and career development for service users.

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News

As well as opening our newest charity shop in Hackney Central, we recently closed our lowest performing shop at the end of its lease. We now have seven shops, with plans to open an eighth shop in a higher-footfall location over the next year. These changes have been positive. Freeing up the staff from the eighth shop has allowed for extra support across the organisation to prevent closures while staff have needed to isolate.

After the Winter lockdown, we reopened Paper & Cup with a new concept, incorporating a curated selection of donated clothing and accessories whilst still keeping up the coffee shop element. The new “Paper & Cup X SCT” is slowly gaining momentum with the donations from the local community being of exceptional standard. While footfall has been lower than usual in the area, as understanding of the new concept grows, so do the sales. The feedback is now largely positive with a growing army of donors and shoppers discovering the hidden gem in Shoreditch.

We currently have around 50 volunteers who support us in the running of all the shops and social enterprises. Collaborations with the services team have meant that more residents are able to volunteer and gain experience through the progression pathway. Similarly, collaborations with the fundraising team have seen new opportunities grow from existing corporate supporters to create an exciting future for SCT retail.

“The retail staff have demonstrated a team spirit to be proud of, working to support each other to achieve our shared goal of helping as many people as possible and it’s a lovely thing to see and experience.” – Retail Director

We were greatly impacted by the closure of our shops and social enterprises for more than half of the reporting period. The turbulent nature of this year of lockdowns has been difficult for our staff, who have dealt with low morale during periods of furlough, and exhaustion when shops reopen again to a higher influx of customers and donations.

Like other retailers in the UK, we have also had to limit the numbers of customers in shops and try to encourage social distancing and mask wearing. Unfortunately, another challenge for our staff has been the additional stress of enforcing Covid-related rules with reluctant members of the public. Another challenge has come with staff needing to self-isolate, which we have responded to by planning closures of the least successful shops and rotating staff between the open shops.

Nonetheless, we have been motivated by the strength and spirit of the entire team.

“The shop staff and their volunteer teams have risen to every challenge they have faced and exceeded all income targets whilst supporting each other to achieve more than anyone could ask of them. New staff have been recruited to replace those that chose to move on during lockdowns and the team continues to demonstrate their tenacity and resilience through their success.” – Retail Director

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Spitalfields Crypt Trust

Trustees’ annual report

For the year ended 31 March 2021

Looking ahead

In the aftermath of the pandemic, we envisage a shift to online retailing with plans underway to ensure we can continue to trade as the Covid-19 situation evolves. This year we aim to launch an online sales platform in addition to our Depop shop which was opened and operated by a small team during lockdown. This will grow our business virtually while we are continuing to expand physically. We would also like to open a replacement shop and another further outlet towards the end of the year.

Sustainable shopping and ethical retailing are growing in support and popularity, SCT intends to be part of the revolution in pioneering new ways of trading in charity retail.

Long-Term Recovery

Choices is our social recovery community (which has been closed since March 2020). We have taken this opportunity to refresh/evaluate the programme, and we will be returning in the next year.

Recovery During Lockdown

We know that the recovery pathway is not simple and the pandemic brought brand new challenges to people at every stage of their recovery journey. Over the past year, we’ve been collecting stories which highlight the first-person experience of being in recovery during lockdown.

Vaughan’s Story

Vaughan* joined Acorn House in November 2020, just as the country was heading back into another lockdown.

“I don’t know how I coped. Well, I do, I isolated myself from the world, being here made me feel isolated but safe. The staff were working so hard, juggling things, sorting out the rules, and I felt for them. I felt safe enough here to continue on. We had no cases of Covid in the house.

Some people struggled more than me. I didn’t care if the pubs were open or not. For some of the guys in the house, those discussions in the papers were quite difficult I think.

When the pandemic first started, I was so paranoid, I was under a sort of siege mentality, going to the shops in gloves, washing everything, stockpiling, I was very worried. Then I found myself homeless during the pandemic too, it was awful, and we were hearing so much stuff about care homes, we were more vulnerable than anyone really, in the hostels and on the streets I kept thinking I could get Covid and die here, but what other choice have I got? You just had to take your chances with it.

But I felt so safe at Acorn House. My only concern was that the place would fold, what if it closed down? What would I do then?

20

Spitalfields Crypt Trust

Trustees’ annual report

For the year ended 31 March 2021

The support here, the kindness, the professionalism, and the camaraderie of being downstairs and having everyone around and busy doing their thing, everyone here has played a part in my recovery. I feel really grateful. They’ve brought the laughter back to my life, the community of the place.”

“…I’m just still surprised on a daily basis, there’s so much on offer, the artwork, reading and writing, counselling, one-to-one sessions, group therapy, the chance to work in the gardens, doing woodwork, helping me with forms and healthcare, there are so many layers to all this, it feels special. It’s amazing to be part of it. It’s nice to look outside yourself and see nice things going on. Ten months isn’t a long time, it’s been a complete turnaround.”

Financial review

Performance

Total income for this year was £2,415,613 (2020: £2,564,162) and total expenditure was £2,405,963 (2020: £2,594,328) which has meant an overall surplus of £9,650 (2020: £30,166 deficit). Of this there was a surplus to restricted funds of £38,598 (2020: £1,043) and a deficit in unrestricted funds of £28,948 (2020: £31,209).

Reserves policy

The Trustees calculate the free reserves, net of designated funds, at the balance sheet date at £450,342. Our long-term objective is to maintain free reserves of at least 25% of unrestricted expenditure excluding charity shop running costs, in order to ensure that the Trust is able to fund working capital, fund unexpected expenditure when unplanned events occur and fund shortfalls in anticipated income. Trustees also consider the risk of closure and, if required, would anticipate an organised closure over a period of time, so the free reserves do not need to include full closure costs. The Trustees consider that in order to meet these needs, and to operate as effectively as possible under the strategy, SCT should hold free reserves of approximately £212,500 in 2020/21. Free reserves at 31 March 2021 represent 52.9% (2020 - 32.2%) of unrestricted expenditure, excluding charity shops. Designated funds represent the value of unrestricted funds invested in fixed assets, which are not readily available for other purposes, and are therefore excluded from the calculation of free reserves. The Board keeps the reserves position under regular review.

Investment policy

Surplus cash is held in either a 1-year fixed term deposit account or instant access accounts, spread across banks to minimise risk.

21

Spitalfields Crypt Trust

Trustees’ annual report

For the year ended 31 March 2021

Principal risks and uncertainties

The Board of Trustees is responsible for the management of risks faced by the Charity. Detailed consideration of risk is delegated to the managers of departments who are responsible, with the Chief Executive Officer, for documenting identifiable risks and taking active steps to manage them. The main risks facing the charity are:

Financial risks

The financial challenges facing the voluntary and community sector are well known and continue. SCT operates within that context, where the resources of grant makers are increasingly stretched and in demand, where local authority budgets have been cut, and where individual giving may be under pressure in the current economic climate. SCT is fortunate to have its charity shops that make an important contribution to the operating costs of the organisation and we are looking to expand this enterprise, whilst also continuing to face rising overheads, particularly the possibility of increased rents as east London continues its regeneration and property values continue to rise.

As we enter 2021-22, SCT will be investing in and hoping to grow that income for the future with the Director of Retail role (introduced in early 2019-20) and a new vision to draw together the seven charity shops with the two social enterprises, and to look towards increasing Gift Aid contributions and the numbers of volunteers. To mitigate risk, SCT has in place a comprehensive system of strategic planning, budgeting, quarterly forecasting and management accounting, and the Board ensures that the Fundraising team and charity shops are well-managed and operating to their full potential. The Board regularly reviews financial performance, and is supported by a Finance and Operations Committee that includes four Trustees.

Reputational Risks

Safeguarding the charity’s reputation is a primary duty of the Trustees and SCT has taken steps to ensure that specific reputational risks are managed proactively. SCT has formal written policies and procedures, including Crisis Communications, a clear chain of communication, and a programme of staff training, to mitigate the risk to the charity’s reputation. SCT is also increasingly inviting external evaluation of its services and programmes, to gather objective, external opinion and benchmarks.

Health, safety, and safeguarding

Risks arising from Health & Safety and Safeguarding – SCT takes seriously its responsibility to provide an environment for staff, service users and volunteers that is safe and free from discrimination, harassment and victimisation. To mitigate this risk, SCT has formal policies in place covering Health & Safety, Equalities and Safeguarding, which are reviewed regularly, as well as specific risk assessments relating to different areas of service delivery.

22

Spitalfields Crypt Trust

Trustees’ annual report

For the year ended 31 March 2021

Data risks

SCT recognises the risk posed by the possibility of data management issues to its reputation and operations and the need to comply with the General Data Protection Regulation (GDPR), which came into effect in May 2018. To mitigate against the risks arising from data management issues, SCT’s data is hosted remotely by Fluid IT. SCT is registered with the Information Commissioner, and is also registered with the Fundraising Regulator, which has implemented the Fundraising Preference Service to enable individuals to opt out of communications from charities.

Organisational Updates

CEO

We are delighted to welcome Tony Chasteauneuf in August 2021 as our new CEO. Tony takes over leadership of SCT after 14 years with The Salvation Army in Australia and the UK, and 12 years at Turning Tides (formerly Worthing Churches Homeless Projects).

“I’m very excited to be joining the SCT family. I’m so looking forward to getting to know everyone, seeing what we can achieve together and beginning to play my part in the togetherness, creativity and love that is Spitalfields Crypt Trust.” – Tony Chasteauneuf

Fundraising

The financial year 2020-21 has been unusual to say the least. The pandemic has created enormous disruption to the UK funding landscape and has affected nearly all of SCT’s income streams. At the beginning of the lockdown the original team target was scaled down to account for the financial uncertainty that we expected would undermine every income stream, with Corporate, Events and Individual Giving hit hardest. As such the revised budget predicted an 100% reduction in Events income with roughly 50% reductions for Community, Corporate and Individual Giving.

However, with the exception of Community income, all other streams performed much better than expected and, in some cases, ended on double what had been reforecast in April.

Further to the lockdown, the financial year opened with all of our charity shops and social enterprises closed. Given that Retail activity generates around a third of total income to the charity this could have been a devastating blow to SCT’s finances. Luckily, the substantial losses caused by these closures were offset significantly by the government’s furlough scheme (we furloughed around 70% of staff) and the receipt of small business grants.

At the beginning of last year the fundraising team were under new leadership, with a new Head of Fundraising and Communications taking over in January 2020. Several new team members followed – we welcomed a new Trusts and Foundations Manager in February, our new Communications Officer in May, and our Individual Giving Manager in October.

23

Spitalfields Crypt Trust

Trustees’ annual report

For the year ended 31 March 2021

Despite the upheaval caused by the lockdown measures and working remotely, the relatively new fundraising team stepped up to the challenge and performed better than any previous year in SCT’s history. Overall, the team raised around twice as much as was forecast at the beginning of the financial year and they were also able to help close the funding gap (caused by the shop closures).

Our fundraising involves running a chain of charity shops and applying for grants and donations from concerned businesses as well as Trusts and Foundations. We do not engage with third parties to actively fundraise on our behalf and we have not received any complaints in the year. We adhere to the Code of Fundraising Practice which ensures we work responsibly in our fundraising practices.

Income raised this year came from the following sources:

The restricted income was allocated in the following ways:

Volunteers

Our volunteers are the bedrock of everything we do, from making sandwiches at our drop-in centres, to sorting clothes at the charity shops, and helping us with important administrative tasks, we knew we would struggle without them.

This reporting period saw fewer opportunities for volunteers to support us operationally. However, we were delighted that so many of our partners continued to fundraise for us during the pandemic. Our corporate supporters took part in activities such as pancake days, fancy dress, walking and running competitions, and 80s aerobics to raise money and awareness for SCT. Meanwhile, our partners in the community held bake sales, craft sessions, and sold homemade Christmas decorations for SCT. We would like to thank all of our supporters who have kept us in good spirits with their fundraising over the past year.

24

Spitalfields Crypt Trust

Trustees’ annual report

For the year ended 31 March 2021

Structure, governance and management

Governance

Spitalfields Crypt Trust (‘the Charity’), also known as SCT, is a registered charity (Number 1075947) and was incorporated as a company limited by guarantee and not having a share capital (Number 03734793) on 17 March 1999. The guarantee of each member is limited to £10.

The Trust has a wholly-owned non-charitable subsidiary, Spitalfields Crypt Trading Limited, which is currently dormant.

The governing document is the Memorandum and Articles of Association of the charitable company (updated and adopted by Special Resolution on 10 December 2012).

All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 6 to the accounts.

Recruitment and training of trustees

Trustees are appointed by the existing Board, with due consideration to the inclusive Christian ethos of the Charity, the skills and experience that each prospective Trustee can contribute to the Charity, and a skills audit of the existing Board members. A new Trustee is introduced to the work of the Charity and is given a copy of the governing document, latest annual report, minutes of recent meetings and other documents in line with the Charity Commission’s ‘Finding New Trustees’ guide. The Trustee is then briefed on the vision, mission, strategy and objectives, and fully advised on the financial position of the Charity. He or she will be encouraged to visit operational departments to become acquainted with the range of work carried out by the Charity. Trustees are advised about training courses and resources that may help them to discharge their responsibilities more effectively.

Organisational structure

The Board meets four times a year, or as required, and all heads of department submit Briefing Reports in advance of each meeting to the Board. The main business of such meetings is:

The Chair of the Board of Trustees meets regularly with the Chief Executive Officer to review operations in relation to the agreed Strategic Plan.

The day to day running of the Charity is devolved to the Chief Executive Officer.

25

Spitalfields Crypt Trust

Trustees’ annual report

For the year ended 31 March 2021

Inclusive Christian ethos

At SCT, we see a clear connection between best practice in addictions recovery and in our inclusive Christian ethos, and we’re committed to continually learning and growing by engaging with both.

Since its inception, SCT’s work has been inspired and motivated by Christian faith and values. The life and teaching of Jesus is characterised by love – a love which is honest and challenging, accepting and healing. Our staff demonstrate similar characteristics, showing warmth and kindness while being clear and direct.

We are committed to working with people of any faith or none, and to helping them at their point of immediate need. We aim to provide a variety of pathways to recovery, wholeness and new life, tailored to individual needs and aspirations. In some of these pathways we offer opportunities to explore the relevance of the Christian faith, which are always optional.

We recognise that the long term effects of homelessness, addiction, poverty, and other forms of social isolation are deeply damaging to the human body, mind and spirit, but we are passionate in our belief that people can experience real and lasting change in their lives.

Staff are expected to comply with the highest standards, and will be given opportunities to develop their professional skills. We aim to offer a safe environment and a sense of community for all our service users and staff, and to maintain a culture of openness, respect, trust and accountability.

Remuneration policy

Trustees set the salary of the Chief Executive, using market-benchmarking and other data to inform their decision. The Chief Executive sets the salaries of all other staff, using marketbenchmarking and other data to review pay levels.

Statement of Trustees’ responsibilities

The trustees (who are also directors of Spitalfields Crypt Trust for the purposes of company law) are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

26

Spitalfields Crypt Trust

Trustees’ annual report

For the year ended 31 March 2021

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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

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 £10 to the assets of the charity in the event of winding up. The total number of such guarantees at year end 31 March 2021 was 9 (2020: 9). The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Auditor

Sayer Vincent LLP was re-appointed as the charitable company's auditor during the year and has expressed its willingness to continue in that capacity.

The trustees’ annual report has been approved by the trustees on 29 November 2021 and signed on their behalf by

Philip J. Young Chairman

27

Independent auditor’s report

To the members of

Spitalfields Crypt Trust

Opinion

We have audited the financial statements of Spitalfields Crypt Trust (the ‘charitable company’) for the year ended 31 March 2021 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the 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

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

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

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

28

Independent auditor’s report

To the members of

Spitalfields Crypt Trust

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the charitable company for the purposes of

29

Independent auditor’s report

To the members of

Spitalfields Crypt Trust

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

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

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

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

30

Independent auditor’s report

To the members of

Spitalfields Crypt Trust

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available 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 Chapter 3 of Part 16 of the Companies Act 2006. 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.

Joanna Pittman (Senior statutory auditor) 17 December 2021

for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

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Spitalfields Crypt Trust

Statement of Financial Activities (incorporating an Income and Expenditure Account)

For the year ended 31 March 2021

Note Restricted
£
Income
Donations and legacies
2
Drop In Services
71,676
Residential Recovery Support
142,500
Personal Development & Training Centre
32,811
Long-Term Recovery/Employment
158,600
Other donations and legacies
288,212
3
Residential Recovery Support
-
Long-Term Recovery/Employment
-
-
Income from investments
-
Other income
-
Total income
693,799
Expenditure
Expenditure on raising funds:
Costs of generating voluntary income
284,153
-
Expenditure on charitable activities
Drop In Services
78,561
Residential Recovery Support
52,957
Personal Development & Training Centre
36,843
Long-Term Recovery/Employment
202,687
Total expenditure
4
655,201
6
38,598
Reconciliation of funds
Total funds brought forward
105,141
Total funds carried forward
12
143,739
Other trading activities
Income from charitable activities
Charity Shops
Charity Shops
Net (expenditure)/income for the year
before transfers		 Unrestricted
£
70
170
-
-
751,882
420,141
25,306
521,734
1,045
1,466
1,721,813
7,489
900,469
25,577
569,264
73,765
174,198
1,750,762
(28,949)
1,223,006
1,194,057		 2021
Total
£
71,746
142,670
32,811
158,600
1,040,094
420,141
25,306
521,734
1,045
1,466		 2020
Total
£
41,950
-
56,364
187,063
483,092
442,772
182,672
1,162,449
2,626
5,174
2,415,613 2,564,162
291,642
900,469
104,138
622,221
110,608
376,885		 307,795
952,302
122,094
722,407
198,498
291,232
2,405,963 2,594,328
9,650
1,328,147		 (30,166)
1,358,313
1,337,797 1,328,147

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 shown in note 13.

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Spitalfields Crypt Trust

Company no. 03734793

Balance sheet

As at 31 March 2021

Note
Fixed assets
Tangible fixed assets
9
Investment in subsidiary
1(b)
Current assets
Stock
Debtors
10
Short term deposits
Cash at bank and in hand
Liabilities
Creditors: amounts due within one year
11
Net current assets
Liabilities
Creditors: amounts due after one year
12
Net assets
13
The funds of the charity
Restricted funds
Unrestricted funds
Designated funds - fixed asset fund
General funds
Total charity funds
14		 £
15,124
121,027
110,873
709,488		 2021
£
743,715
1		 £
13,813
344,049
110,263
219,637		 2020
£
791,761
1
743,716
812,831
(218,750)		 791,762
536,385
-
956,512
(143,681)		 687,762
(151,377)
1,337,797 1,328,147
143,739
743,716
450,342		 105,141
791,761
431,245
1,337,797 1,328,147

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

Approved by the trustees on 29 November 2021 and signed on their behalf by

Philip J. Young Chairman

33

Spitalfields Crypt Trust

Statement of Cashflows

For the year ended 31 March 2021

Note
Cash flows from operating activities:
Net income / (expenditure) for the year
6
Adjustments for:
Depreciation charges
9
Interest
(Increase)/decrease in stocks
(Increase)/decrease in debtors
Increase in creditors
Net cash provided by operating activities
Cash flows from investing activities:
Interest
Purchase of tangible fixed assets
9
Net cash used in investing activities
Change 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
Cash and cash equivalents consist of:
Short term deposits
Cash at bank		 2021
£
9,650
60,824
(1,045)
(1,311)
223,022
211,054		 £
502,194
(11,733)		 2020
£
(30,166)
58,708
(2,626)
2,001
(206,728)
26,191		 £
(152,620)
(17,700)
1,045
(12,778)		 2,626
(20,326)
490,461
329,900		 (170,320)
500,220
820,361 329,900
110,873
709,488		 110,263
219,637
820,361 329,900

34

Spitalfields Crypt Trust

Notes to the financial statements

For the year ended 31 March 2021

1 Accounting policies

Statuory information

Spitalfields Crypt Trust is a charitable company limited by guarantee and is incorporated in England and Wales. Registered office: Acorn House, 116-118 Shoreditch High Street, London, E1 6JN.

a) Basis of preparation

These financial statements have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and Companies Act 2006. The Charity is a public benefit entity for the purposes of FRS 102 and therefore has also prepared the financial statements in accordance with the 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 (The FRS 102 Charities SORP) and the Charities Act 2011.

b) Going concern

The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the Charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the Charity’s forecasts and projections. After making enquiries the trustees have concluded that there is a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. The Charity therefore continues to adopt the going concern basis in preparing its financial statements.

c) Subsidiary company

Spitalfields Crypt Trust owns 100% of the issued share capital of Spitalfields Crypt Trust Trading Company Limited, a company incorporated in England. The issued share capital of 1 ordinary £1 share is included at £1. The principal activity of the Spitalfields Crypt Trust Trading Company Limited is to carry out trading activities associated with the activities of the Spitalfields Crypt Trust. During the prior and the current year the Trading Company remained dormant.

d) Income

All income is included in the statement of financial activities when the charity is entitled to, it is probable that the income will be received and the amount can be measured reliably and is not deferred. The following policies are applied to particular categories of income:

Donations are recognised as income when the charity has control over, or received, the donation, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution.

Clothing and other items donated for resale through the charity's shops are included as incoming resources within activities for generating funds when they are sold.

Incoming resources from charitable trading activity are accounted for when earned.

Revenue grants are credited to the statement of financial activities when receivable.

Where unconditional entitlement to grants receivable is dependent upon fulfilment of conditions within the charity's control, the incoming resources are recognised when there is sufficient evidence that conditions will be met. Where there is uncertainty as to whether the charity can meet such conditions the incoming resource is deferred.

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Spitalfields Crypt Trust

Notes to the financial statements

For the year ended 31 March 2021

e) Expenditure

Expenditure is recognised in the period in which it are incurred. Expenditure includes attributable VAT which cannot be recovered.

Expenditure is allocated to the particular activity where the cost relates directly to that activity. Support and governance costs which cannot be directly attributed to particular activities have been allocated between expense headings on the basis of time spent.

Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.

Where such information about the aims, objectives and projects of the charity is also provided to potential donors, activity costs are apportioned between fundraising and charitable activities on the basis of area of literature occupied by each activity.

Costs of generating funds relate to the costs incurred by the charitable company in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose.

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

f) Funds

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

g) Fixed assets and depreciation

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 expected useful life of each class of asset is as follows:

Long term leasehold property 50 years
Short term leasehold property Life of the lease
Motor vehicles 4 years
Furniture, fixtures and equipment 3 years

Items of equipment are capitalised where the purchase price exceeds £1,000. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

36

Spitalfields Crypt Trust

Notes to the financial statements

For the year ended 31 March 2021

h) Stock

Stocks are stated at the lower of cost and net realisable value. In general, cost is determined on a first in first out basis and includes transport and handling costs. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation. Provision is made where necessary for obsolete, slow moving and defective stocks.

i) 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.

j) Pensions

The charitable company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charitable company in an independently administered fund. The pension cost charge represents contributions payable under the scheme by the charitable company to the fund. The charitable company has no liability under the scheme other than for the payment of those contributions.

k) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

l) Cash and cash equivalents

Cash and cash equivalents includes cash at bank and in hand, 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. Cash balances exclude any funds held on behalf of service users.

m) Short term deposits

Short term deposits includes cash with a maturity of three to twelve months

n) Creditors and provisions

Creditors and provisions are recognised where the charity has 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.

o) 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.

37

Spitalfields Crypt Trust

Notes to the financial statements

For the year ended 31 March 2021

2 Donations and legacies

Drop In Services
Trusts, Foundations & Corporates
Individual donations
Residential Recovery Support
Trusts, Foundations & Corporates
Individual donations
Personal Development & Training Centre
Trusts, Foundations & Corporates
Individual donations
Long-Term Recovery/Employment
Trusts, Foundations & Corporates
Individual donations
Other Donations & Legacies
Trusts, Foundations & Corporates
Individual donations		 Restricted
£
71,676
-		 Unrestricted
£
-
70		 2021
Total
£
71,676
70
71,676
142,500
-		 70
-
170		 71,746
142,500
170
142,500
32,811
-		 170
-
-		 142,670
32,811
-
32,811
150,800
7,800		 -
-
-		 32,811
150,800
7,800
158,600
286,162
2,050		 -
-
751,882		 158,600
286,162
753,932
288,212 751,882 1,040,094
693,799 752,122 1,445,921

38

Spitalfields Crypt Trust

Notes to the financial statements

For the year ended 31 March 2021

2 Donations and legacies (continued)

Drop In Services
Trusts, Foundations & Corporates
Individual donations
Residential Recovery Support
Trusts, Foundations & Corporates
Individual donations
Personal Development & Training Centre
Trusts, Foundations & Corporates
Individual donations
Long-Term Recovery/Employment
Trusts, Foundations & Corporates
Individual donations
Other Donations & Legacies
Trusts, Foundations & Corporates
Individual donations		 Restricted
£
41,250
700		 Unrestricted
£
-
-		 2020
Total
£
41,250
700
41,950
-
-		 -
-
-		 41,950
-
-
-
51,945
4,419		 -
-
-		 -
51,945
4,419
56,364
187,000
63		 -
-
-		 56,364
187,000
63
187,063
20,000
-		 -
134,266
328,826		 187,063
154,266
328,826
20,000 463,092 483,092
305,377 463,092 768,469

Included in Other Donations is £326,249 (2020: £14,895) for Government grants relating to the Job Retenetion scheme & £zero (2020: £145,000) relating to the Retail, Hospitality and Leisure grant scheme.

39

Spitalfields Crypt Trust

Notes to the financial statements

For the year ended 31 March 2021

3 Income from charitable activities

Residential Recovery Support
Housing Benefit
Individual Charge
Long-Term Recovery/Employment
Fees/Charges
Residential Recovery Support
Housing Benefit
Individual Charge
Long-Term Recovery/Employment
Fees/Charges		 Restricted
£
-
-
-		 Unrestricted
£
399,898
20,243
25,306		 2021
Total
£
399,898
20,243
25,306
- 445,447 445,447
Restricted
£
-
-
-		 Unrestricted
£
408,450
34,322
182,672		 2020
Total
£
408,450
34,322
182,672
- 625,444 625,444

40

Spitalfields Crypt Trust

Notes to the financial statements

For the year ended 31 March 2021

4 Expenditure

Costs of generating voluntary
income
Charity Shops
Drop In Services
Residential Recovery Support
Personal Development &
Training Centre
Long-Term Recovery/
Total expenditure 2021
Costs of generating voluntary
income
Charity Shops
Drop In Services
Residential Recovery Support
Personal Development &
Training Centre
Long-Term Recovery/
Total expenditure 2020		 £
198,567
490,056
64,449
260,333
70,326
226,818
Direct Staff
costs		 £
23,375
238,397
17,065
270,508
15,596
70,451
Other Direct
Costs		 £
69,700
172,016
22,623
91,380
24,685
79,616
Support &
Governance
costs		 2021
Total
£
291,642
900,469
104,138
622,221
110,608
376,885
1,310,550 635,393 460,020 2,405,963
£
185,250
506,194
73,201
326,097
124,337
126,132
Direct Staff
costs		 £
54,337
259,732
21,941
276,243
28,381
118,659
Other Direct
Costs		 £
68,208
186,376
26,952
120,067
45,780
46,441
Support &
Governance
costs		 2020
Total
£
307,795
952,302
122,094
722,407
198,498
291,232
1,341,211 759,293 493,824 2,594,328

41

Spitalfields Crypt Trust

Notes to the financial statements

For the year ended 31 March 2021

5 Support costs

5
Support costs
Governance:
Allocated staff costs
Audit Fees
Other support costs:
Allocated staff costs
General Office Supplies & Purchases
Premises Costs
Travel, Subsistence & Motor Expenses
Food
Consultancy & Training
Welfare & Therapy Costs
Depreciation
Insurance
Telephone
Bank Charges
Legal
Bad debts provision
Sundry
Outsourced Finance
Irrecoverable VAT
6
Net income/expenditure for the year
This is stated after charging:
Depreciation
Operating lease rentals: property
Auditors' remuneration (excluding VAT):
- current year audit fee		 2021
£
18,330
11,750		 2020
£
17,384
11,500
30,080
173,312
27,072
51,203
4,194
1,566
33,015
7,787
52,073
6,547
3,489
4,458
1,375
8,000
469
39,218
16,161		 28,884
196,585
40,145
34,982
2,256
3,282
41,623
6,872
58,707
9,118
1,492
8,576
2,100
-
2,494
39,092
17,616
460,020 493,824
2021
£
60,824
378,693
12,000		 2020
£
58,708
342,742
11,500

Trustees received no remuneration or expenses.

There were no unrestricted donations of £500 from Trustees in the year (2020 :£500). There were no other related party transactions during the year (2020: none)

42

Spitalfields Crypt Trust

Notes to the financial statements

For the year ended 31 March 2021

7 Staff costs and numbers

Staff costs were as follows:

Salaries and wages
Social security costs
Pension contributions
Redundancy costs
Volunteer workers' expenses
Other staff costs		 2021
£
1,346,849
103,983
50,680
-
681
-		 2020
£
1,370,079
105,477
54,051
19,444
3,576
2,553
1,502,193 1,555,180

No employee earned more than £60,000 in the year or the previous year.

The key management personnel of the Charity comprise of the Chief Executive and three members of the Senior Management team. The total amounts paid for salaries, fees and expenses in respect of the key management personnel of the Charity were £173,302 (2020 - £201,286). The increase is due to two members being employed for the full 12 month period.

The average number of employees during the year was 71 (2020 - 74).

The average number of employees (full-time equivalent) during the year was as follows:

Generating Voluntary Income
Shop staff
Drop In Services
Residential Recovery Support
Personal Development & Training Centre
Long-Term Recovery/Employment
Support and governance		 2021
5
23
2
7
4
9
6		 2020
5
23
2
7
4
9
6
56 56

8 Taxation

The charitable company is exempt from corporation tax for income arising from its charitable activities. The charitable company is subject to corporation tax for non-charitable or trading income exceeding the charity limit of £80,000 per annum. All its income is applied for charitable purposes.

43

Spitalfields Crypt Trust

Notes to the financial statements

For the year ended 31 March 2021

9 Tangible fixed assets

Tangible fixed assets
Cost
At the start of the year
Additions in year
At the end of the year
Depreciation
At the start of the year
Charge for the year
At the end of the year
Net book value
At the end of the year
At the start of the year		 Long
Leasehold
property
£
509,466
-		 Short
Leasehold
property
£
833,580
10,650		 Motor
Vehicles
£
14,025
2,128		 £
77,984
-
Furniture,
fixtures and
equipment		 Total
£
1,435,055
12,778
509,466 844,230 16,153 77,984 1,447,833
113,542
10,690		 447,399
44,372		 14,025
532		 68,328
5,230		 643,294
60,824
124,232 491,771 14,557 73,558 704,118
385,234 352,459 1,596 4,426 743,715
395,924 386,181 - 9,656 791,761

10 Debtors

10
Debtors
Trade debtors
Other debtors
Prepayments & Accrued Income
Taxation and social security
11
Creditors: amounts due within one year
Trade creditors
Other creditors
Accruals & Deferred Income
Loan
12
Creditors: amounts due after one year
Loan		 2021
£
591
33,741
73,450
13,245		 2020
£
33,099
26,366
280,406
4,178
121,027 344,049
2021
£
38,858
7,026
66,547
31,250		 2020
£
57,961
9,708
83,708
-
143,681 151,377
2021
£
218,750		 2020
£
-
218,750 -

44

Spitalfields Crypt Trust

Notes to the financial statements

For the year ended 31 March 2021

13 Analysis of net assets between funds

Restricted
funds
£
Fixed assets
-
Net current assets
143,739
Creditors: amounts due after one year
-
Net assets at the end of the year
143,739
Prior year analysis of net assets between funds
Restricted
funds
£
Fixed assets
-
Net current assets
105,141
Net assets at the end of the year
105,141
Movements in funds
At the start
of the year
Income
£
£
Restricted funds:
Personal Development &
Training Centre
22,401
32,811
Residential Recovery Support
820
142,500
Drop In Services
16,560
71,676
Back to Work Scheme/Long
term recovery support
65,360
158,600
Other
-
288,212
Total restricted funds
105,141
693,799
Unrestricted funds:
Designated fund:
Fixed Assets
791,761
-
General fund
431,245
1,721,813
Total unrestricted funds
1,223,006
1,721,813
Total funds
1,328,147
2,415,613		 Restricted
funds
£
Fixed assets
-
Net current assets
143,739
Creditors: amounts due after one year
-
Net assets at the end of the year
143,739
Prior year analysis of net assets between funds
Restricted
funds
£
Fixed assets
-
Net current assets
105,141
Net assets at the end of the year
105,141
Movements in funds
At the start
of the year
Income
£
£
Restricted funds:
Personal Development &
Training Centre
22,401
32,811
Residential Recovery Support
820
142,500
Drop In Services
16,560
71,676
Back to Work Scheme/Long
term recovery support
65,360
158,600
Other
-
288,212
Total restricted funds
105,141
693,799
Unrestricted funds:
Designated fund:
Fixed Assets
791,761
-
General fund
431,245
1,721,813
Total unrestricted funds
1,223,006
1,721,813
Total funds
1,328,147
2,415,613		 Restricted
funds
£
-
143,739
-		 Designated
fund
£
743,716
-
-		 General
funds
£
-
669,092
(218,750)		 Total
funds
£
743,716
812,831
(218,750)
143,739 743,716 450,342 1,337,797
Designated
fund
£
791,762
-		 General
funds
£
-
431,244		 Total
funds
£
791,762
536,385
105,141 791,762 431,244 1,328,147
Income
£
32,811
142,500
71,676
158,600
288,212		 £
(36,843)
(52,957)
(78,561)
(202,687)
(284,153)
Expenditure		 Transfers
between
funds
£
-
-
-
-
-		 At the end of
the year
£
18,369
90,363
9,675
21,273
4,059
105,141
791,761
431,245		 693,799
-
1,721,813		 (655,201)
-
(1,750,762)		 -
(48,046)
48,046		 143,739
743,715
450,342
1,223,006 1,721,813 (1,750,762) - 1,194,057
1,328,147 2,415,613 (2,405,963) - 1,337,797

14 Movements in funds

Purposes of restricted funds:

Personal Development & Training Centre - New Hanbury Project

Funding towards the salary of the training and development manager.

Residential Recovery Support

Specific donations for dealing with alcohol/drug addiction of residents at Acorn House.

45

Spitalfields Crypt Trust

Notes to the financial statements

For the year ended 31 March 2021

Movements in funds (continued)

Drop In Services

Specific donations for the ongoing work at the Drop-In Centre, the Shoreditch Community Project.

Back to Work Scheme / Long-Term Recovery Support

Specific donations towards the development of a recovery community.

Other

Specific donations for organisational capacity building, particulary staff training and development.

Purposes of designated Fixed Asset Fund

This fund represents the value of unrestricted funds invested in fixed assets which are not, by the nature of fixed assets, readily available for other purposes.

Prior Year Movements in funds

Restricted funds:
Personal Development &
Training Centre
Residential Recovery Support
Drop In Services
Back to Work Scheme/Long
term recovery support
Other
Total restricted funds
Unrestricted funds:
Designated fund:
Fixed Assets
General fund
Total unrestricted funds
Total funds		 At the start
of the year
£
-
29,700
36,500
27,898
10,000		 Income
£
56,364
-
41,950
187,063
20,000		 £
(33,963)
(28,880)
(61,890)
(149,601)
(30,000)
Expenditure		 Transfers
between
funds
£
-
-
-
-
-		 At the end of
the year
£
22,401
820
16,560
65,360
-
104,098
830,144
424,071		 305,377
-
2,258,785		 (304,334)
-
(2,289,994)		 -
(38,383)
38,383		 105,141
791,761
431,245
1,254,215 2,258,785 (2,289,994) - 1,223,006
1,358,313 2,564,162 (2,594,328) - 1,328,147

15 Operating lease commitments

At the year end date the Charity had the following future minimum lease payments under non-cancellable operating leases (all for property) which fall due as follows:

Less than 1 year
1 - 5 years
Over 5 years		 2021
£
303,587
489,410
261,910		 2020
£
283,798
663,544
351,000
1,054,907 1,298,342

46

Spitalfields Crypt Trust

Notes to the financial statements

For the year ended 31 March 2021

16 Prior Year Statement of Financial Activities

Income
Donations and legacies
Drop In Services
Residential Recovery Support
Personal Development & Training Centre
Long-Term Recovery/Employment
Other donations and legacies
Capital Project fund
Income from charitable activities
Residential Recovery Support
Long-Term Recovery/Employment
Other trading activities
Charity Shops
Income from Investments
Other income
Total income
Expenditure
Expenditure on raising funds:
Costs of generating voluntary income
Charity Shops
Expenditure on charitable activities
Drop In Services
Residential Recovery Support
Personal Development & Training Centre
Long-Term Recovery/Employment
Total expenditure
Transfer between funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
Net income/ (expenditure) resources
before transfers		 Restricted
£
41,950
-
56,364
187,063
20,000
-
-
-
-
-
-		 Unrestricted
£
-
-
-
-
-
463,092
-
442,772
182,672
1,162,449
2,626
5,174		 2020
Total
£
-
41,950
-
56,364
187,063
483,092
-
442,772
182,672
1,162,449
2,626
5,174
2,564,162
307,795
952,302
122,094
722,407
198,498
291,232
2,594,328
(30,166)
-
1,358,313
1,328,147
305,377 2,258,785
30,000
-
61,890
150,520
33,963
27,961		 277,795
952,302
60,204
571,887
164,535
263,271
304,334 2,289,994
1,043
-
104,098		 (31,209)
-
1,254,215
105,141 1,223,006

47