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2022-06-30-accounts

DocuSign Envelope ID: 24A6C9DE-E589-4088-8C71-2A2B2CBBA743

Charity registration number 1077805

Company registration number 03805699 (England and Wales)

EMMAUS COLCHESTER

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

DocuSign Envelope ID: 24A6C9DE-E589-4088-8C71-2A2B2CBBA743

EMMAUS COLCHESTER

LEGAL AND ADMINISTRATIVE INFORMATION

Registered Charity name Emmaus Colchester
Charity number 1077805
Company registration number 03805699
Principal and Registered office 175 Magdalen Street
Colchester
Essex CO1 2JX
Trustees Robert Sugden (resigned 7 July 2022)
Charles Ince (resigned 16 August 2021)
James McElhinney ACA
Andrew Craig (resigned 6 June 2022)
Francis Perera
Laura Petford (resigned 28 July 2021)
Victoria Fuller
Jamie Riddell (resigned 26 November 2021)
Thomas Empson
Gaynor Bell (appointed 4 January 2022)
Tribhuwan Singh (appointed 17 May 2022)
Sean Connolly (appointed 1 September 2022)
Chief Executive Officer Brian Cooke
Independent Examiner Richard Lane of LB Group (Stratford)
Number One
Vicarage Lane
Stratford
London
England
E15 4HF
Bankers National Westminster Bank PLC
25 High Street
Colchester CO1 1DG
CAF Bank Limited
25 Kings Hill Avenue
Kings Hill
West Malling
Kent ME19 4JQ
Solicitors Trowers & Hamlins
3 Burnhill Row
London EC1Y 8YZ

DocuSign Envelope ID: 24A6C9DE-E589-4088-8C71-2A2B2CBBA743

EMMAUS COLCHESTER

CONTENTS

Page
TrusteesTrustees' Annual Report 1 - 6
Independent examiner's report 8
Statement of financial activities 9
Balance sheet 10 - 11
Statement of cash flows 12
Notes to the financial statements 13 - 27

DocuSign Envelope ID: 24A6C9DE-E589-4088-8C71-2A2B2CBBA743

EMMAUS COLCHESTER

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022

The trustees present their annual report and financial statements for the year ended 30 June 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charitable company's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

The aims of the charitable company are the alleviation and relief of poverty and hardship for those in need without distinction. The principal activities in the period were the recycling of donated household goods for the benefit of homeless people in the area.

Review of activities and achievements: July 2021 to June 2022

The results of the year's operations are set out in the attached financial statements.

Trading income for the year was £414,296 compared to last year £302,659, an increase of £111,637. Rental income receipts from Housing Benefit were down by £8,957 to £152763 a 5.54% decrease from 2020/21. Income from grants and donations was £ 61,651 (a decrease of 70.42% from 2020/21).

After providing for charitable services, the Charity had a surplus of £9,532 compared to a surplus of £87,009 in the previous year.

The Trustees noted the difficult trading conditions associated with High Street outlets generally that has affected Emmaus Colchester as well.

Financial review

During the year we:

DocuSign Envelope ID: 24A6C9DE-E589-4088-8C71-2A2B2CBBA743

EMMAUS COLCHESTER

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022

Community

During the year we had an average of 17.85 Companions in residence compared with and average of 17.44 the previous year. Since the year end our companion numbers have increased to an average of 21.8 The average length of stay was 52 weeks and the stability of living in the Community resulted in many positive outcomes. Of those who left, 2 found work, 10 moved into private accommodation, 4 moved to another Emmaus Community, several chose not to disclose where they were moving on to.

Our community staff has developed close relationships with local services, which are the main source of referrals. We select candidates who are prepared to live and volunteer in a community environment and comply with our rules concerning drugs and alcohol. We are working closely with Joint Referral Panel that has fortnightly meetings with all housing providers in Colchester to meet the needs of the applicants and to increase the incoming referrals to join our community.

We would like to thank all the Companions, staff and volunteers for their support and contribution to the stability of the Community and to another successful year's trading.

Companion Support

All our Companions continue to receive one-to-one support sessions, carried out by the Community Manager and support staff.

We continue to provide courses in Food Hygiene, First-aid, Health & Safety, Manual Handling and PAT testing for Companions and staff. Companions are also encouraged to attend evening/weekend training courses provided by the local Community College to learn or improve their skills. Online courses are being promoted on a regular basis for the companions to work on during their free time to enable them to improve their skills and enhance their CV‘s. We continue to promote training programmes to our companions.

The Emmaus UK Companion Training Fund continues to be a valuable resource to fund training opportunities for our companions. During the year, it has funded, CBT Specialist driving courses, driving lessons, contributed to the purchase of laptops to enable companions to search for work and connect with their friends and family, and contributed to the purchase of bicycles for companions.

Companions have continued to be trained in the process of restoring/upcycling furniture in the shabby chic style.

DocuSign Envelope ID: 24A6C9DE-E589-4088-8C71-2A2B2CBBA743

EMMAUS COLCHESTER

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 30 JUNE 2022

Companions are given time off to find work and attend job interviews. In cases where they find work, Companions agree a person-centered move on support plan which includes assistance in finding accommodation, budgeting etc. Once a companion starts working outside the community, they can stay living here for up to 3 months and are being asked to pay a subsidised rent and food fee. Companions continue to be supported whilst they are on the move on scheme, our policy being to encourage Companions to move out of the Community once they have re-gained their confidence and found an external job, without pressurizing the more vulnerable who may want to stay in the Community for an extended period. Furthermore, we continue to support ex-Companions where appropriate.

Companions receive two weeks holiday and two long weekends a year and are encouraged to leave the community, visit friends and family or explore other Emmaus Communities.

Health and Welfare

Social events have started up again, companions have enjoyed go karting, air soft, a Chinese meal and enjoyed a trip to a water park as a group.

Solidarity with others in need

We continue to provide support for people & families in crisis and in need of basic furniture. We work with other support agencies to which those most in need can appeal and supply those in need with beds, table and chairs and other essential items which are delivered free. Over the year we provided around £1,200 worth of free furniture to 8 people/families. Whilst the average value of donated items per person is £120, this has to be taken in the context that we sell very low priced items. We also found that many peoples’ need is much greater and it is not unusual for the donation to be in excess of £150.

We were unable to carry out our usual Operation Christmas project this year which supports local families in donating gifts to children whose families use the local food bank. We did however donate lots of gifts to another local group who were organizing a similar scheme. We continue to stay in touch with Lexden Springs School pupils who have learning disabilities. Although activities with the school were suspended during the pandemic, we are planning to resume work with Lexden Springs in the new school year. We continue to collect and donate tools to the charity Workaid, a charity that collect refurbish and ship used tools to communities in need to help them to earn a living.

Emmaus UK and Emmaus International

As a member of the national organisation, we continue to benefit from advice and assistance on a number of matters including, marketing, recruitment and HR. We are grateful to the Emmaus UK staff for their readily available assistance.

We continue to play a role in the development and growth of Emmaus in the UK by welcoming visitors and potential funders from other Emmaus Communities and Groups, including Emmaus International. We also actively participate in the Emmaus UK debates on the future direction of the Emmaus Federation and enjoyed being part of the formation of the 5-year strategic plan and now its implementation.

Social Enterprise

The primary objective of Emmaus Colchester is to provide a home and work for previously homeless people. The sale of donated household goods, furniture, electrical appliances and clothes provides a substantial part of the community's income with the balance made up from support from donors and Companions run these trading activities in conjunction with staff and volunteers.

The work undertaken by Companions in the retail of Second-hand goods is central to the Community's ethos of giving the Companions' dignity and self-respect. Many Companions regain control of their lives and some move on to paid employment. For some, living and working in the Community gives their lives stability and reduces the risk of returning to alcohol and illegal drugs.

We operated from a retail warehouse, a High Street shop and New Life Shop and Cafe, the latter closed at the year end.

DocuSign Envelope ID: 24A6C9DE-E589-4088-8C71-2A2B2CBBA743

EMMAUS COLCHESTER

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022

Our Supporters

We express our grateful thanks for the generous financial support of our corporate and charitable supporters, both for their past and future commitments, to the many individual donors of furniture and household goods who keep the social enterprise supplied and to the volunteers who have donated many hours of their time.

Reserves Policy

It is the policy of the charitable company that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charitable company’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Our policy is to hold an expense reserve to cover 3 months expenditure, and an investment reserve to fund capital investment in the community and expansion of the business.

At the end of the financial year our reserves stood at:

30.6.2022 30.6.2021
Community House Capital Fund
 823,282 831,008
General Funds
 763,737 636,532
Total Unrestricted Income Funds (per note 16) 1,587,019 1,467,540

Risk management

The Trustees regularly review their policy and procedures to minimise the risks which the Charitable Company, its employees, Companions, volunteers and customers might encounter. Where appropriate systems or procedures have been established to mitigate such risks.

Internal control risks are minimised by the implementation of procedures for authorisation of financial transactions. The Community is committed to effective health and safety risk management. Risk assessments and specific procedures are completed, reviewed and maintained. New activities and potential risks are also assessed. Staff, Companions and volunteers participate in a health and safety induction, with additional training offered when desirable or necessary.

Structure, governance and management

The charitable company is a company limited by guarantee is directed by a Board of Trustees and governed by its Memorandum and Articles of Association.

DocuSign Envelope ID: 24A6C9DE-E589-4088-8C71-2A2B2CBBA743

EMMAUS COLCHESTER

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 30 JUNE 2022

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

Robert Sugden (resigned 7 July 2022) Charles Ince (resigned 16 August 2021) James McElhinney ACA Andrew Craig (resigned 6 June 2022) Francis Perera Laura Petford (resigned 28 July 2021) Victoria Fuller Jamie Riddell (resigned 26 November 2021) Thomas Empson Gaynor Bell (appointed 4 January 2022) Tribhuwan Singh (appointed 17 May 2022) Sean Connolly (appointed 1 September 2022)

The Charitable Company is directed by a Board of Trustees who are elected and co—opted under the terms of the Memorandum and Articles of Association. Trustee nominations must be approved by existing Trustees. Trustees give their time voluntarily and received no benefits from the Charity. Any expenses reclaimed from the Charity are set out in note 9 to the accounts. None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

The Board of Trustees meets 8 times per year and is responsible for the strategic direction and policy of the Charitable Company.

Day to day responsibility for the operation of the Charity are delegated to the Chief Executive Officer who is responsible for ensuring that the Charitable Company delivers the activities specified and that key performance indicators are met. The CEO is also responsible for ensuring that the team continues to develop their skills and working practices in line with good practice.

A fundamental principle of the Emmaus ethos is that the Companions are central to the existence of the organisation. Emmaus Colchester continually seeks to promote this in the organisational structure and decision making. A Community meeting takes place each week to discuss and agree decisions which affect the community as a whole. In addition we actively encourage Companions to take responsibility for each other and some undertake operational tasks in the capacity of the Responsible Companion.

Each new Trustee is briefed about the Community, their legal and ethical responsibilities and an induction programme is in place which includes visiting other Communities. Periodic appraisals are undertaken of Trustee's skills and experience and suitable training is offered.

DocuSign Envelope ID: 24A6C9DE-E589-4088-8C71-2A2B2CBBA743

EMMAUS COLCHESTER

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022

Who benefits from our work?

Emmaus Colchester started the year with accommodation available for approximately 23 Companions, expanding to 27 within the financial year. Our current funding structure relies on Housing Benefit and on revenue generated from our business activities as the main sources of income. We rely on grants and donations as the main sources of income for capital expenditure and to cover any revenue deficit. Emmaus Colchester claims basic Housing Benefit on behalf of the Companions which is paid directly into the Community's account, Companions do not claim any other benefits which they would otherwise be entitled to. Potential Companions can either refer themselves or can be referred by a third party (probation officer, support worker for example) with their permission. Emmaus Colchester actively develops relationships with other services, charities, and churches locally and nationally to generate referrals, and encourages Companions and other homeless people to contact us by word of mouth. Applicants must be unemployed and homeless or otherwise vulnerably housed. Emmaus Colchester's success depends on creating and maintaining a welcoming, supportive, and stable community and therefore before anyone is accepted detailed assessments of need and risk are undertaken. Emmaus Colchester will take applicants who present complex needs provided the community as a whole is able to support them. The charity has complied with the duty in section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the charity commission.

The trustees report was approved by the Board of Trustees.

..............................

James McElhinney ACA Trustee Registered office: 175 Magdalen Street Colchester Essex CO1 2JX

22-03-23 Date: .............................................

DocuSign Envelope ID: 24A6C9DE-E589-4088-8C71-2A2B2CBBA743

EMMAUS COLCHESTER

STATEMENT OF TRUSTEES RESPONSIBILITIES

FOR THE YEAR ENDED 30 JUNE 2022

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

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

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

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the 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.

Independent examiner

Richard Lane of LB Group (Stratford) was appointed as Independent Examiner of the charitable company.

Accounting exemptions

In preparing this report the directors have taken advantage of small companies exemptions provided by section 415 of the Companies Act 2006.

DocuSign Envelope ID: 24A6C9DE-E589-4088-8C71-2A2B2CBBA743

EMMAUS COLCHESTER

INDEPENDENT EXAMINER'S REPORT TO THE MEMBERS OF EMMAUS COLCHESTER

I report to the trustees on my examination of the financial statements of Emmaus Colchester (the charitable company) for the year ended 30 June 2022.

Responsibilities and basis of report

As the trustees of the charitable company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

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

Independent examiner's statement

Since the charitable company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.

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

accounting records were not kept in respect of the charitable company as required by section 386 of the 2006 Act; or

the financial statements do not accord with those records; or

the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

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

Richard Lane (Senior Statutory Auditor) For and on behalf of LB Group (Stratford)

Date: .........................

Chartered Accountants Statutory Auditor

Number One Vicarage Lane Stratford London England E15 4HF

DocuSign Envelope ID: 24A6C9DE-E589-4088-8C71-2A2B2CBBA743

EMMAUS COLCHESTER

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 JUNE 2022

Unrestricted
Restricted
funds
funds
2022
2022
£
£
Income and endowments from:
Donations and legacies
3
166,329
(77,294)
Charitable activities
4
563,209
-
Investments
5
110
-
Other income
6
4,714
-
Total income
734,362
(77,294)
Expenditure on:
Expenditure on raising
funds
7
9,440
-
Charitable activities
8
605,443
32,653
Total expenditure
614,883
32,653
Net income/(expenditure) for
the year/
Net movement in funds
119,479
(109,947)
Fund balances at 1 July 2021
1,467,540
109,860
Fund balances at 30 June
2022
1,587,019
(87)		 Total Unrestricted
Restricted
funds
funds
2022
2021
2021
£
£
£
89,035
136,881
71,528
563,209
464,379
-
110
94
-
4,714
2,005
-
657,068
603,359
71,528
9,440
7,734
-
638,096
433,852
146,292
647,536
441,586
146,292
9,532
161,773
(74,764)
1,577,400
1,305,767
184,624
1,586,932
1,467,540
109,860		 Total
2021
£
208,409
464,379
94
2,005
674,887
7,734
580,144
587,878
87,009
1,490,391
1,577,400

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

All income and expenditure derive from continuing activities.

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

DocuSign Envelope ID: 24A6C9DE-E589-4088-8C71-2A2B2CBBA743

EMMAUS COLCHESTER

BALANCE SHEET

AS AT 30 JUNE 2022

Notes
Fixed assets
Tangible assets
10
Current assets
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within
one year
12
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
13
Net assets
Income funds
Restricted funds
15
Unrestricted funds
Designated funds
16
General unrestricted funds		 2022
£
£
1,591,683
42,474
236,601
279,075
(53,712)
225,363
1,817,046
(230,114)
1,586,932
(87)
1,587,019
-
1,587,019
1,586,932		 2021
£
£
1,599,344
39,748
405,051
444,799
(60,030)
384,769
1,984,113
(406,713)
1,577,400
109,860
831,008
636,532
1,467,540
1,577,400

DocuSign Envelope ID: 24A6C9DE-E589-4088-8C71-2A2B2CBBA743

EMMAUS COLCHESTER

BALANCE SHEET (CONTINUED)

AS AT 30 JUNE 2022

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 June 2022.

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

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

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

22-03-23

The financial statements were approved by the Trustees on .........................

..............................

J McElhinney Trustee

Company registration number 03805699

DocuSign Envelope ID: 24A6C9DE-E589-4088-8C71-2A2B2CBBA743

EMMAUS COLCHESTER

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2022

2022 2021
Notes £ £ £ £
Cash flows from operating activities
Cash generated from operations 21 38,912 163,826
Investing activities
Purchase of tangible fixed assets (18,534) (188,210)
Investment income received 110 94
Net cash used in investing activities (18,424) (188,116)
Financing activities
Repayment of borrowings (182,458) (23,892)
Proceeds from new bank loans - 219,000
Interest paid (6,480) (15,213)
Net cash (used in)/generated from
financing activities (188,938) 179,895
Net (decrease)/increase in cash and cash
equivalents (168,450) 155,605
Cash and cash equivalents at beginning of year 405,051 249,446
Cash and cash equivalents at end of year 236,601 405,051

DocuSign Envelope ID: 24A6C9DE-E589-4088-8C71-2A2B2CBBA743

EMMAUS COLCHESTER

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

1 Accounting policies

General information

Emmaus Colchester is a private company limited by guarantee without share capital, incorporated in England and Wales, registration number 03805699. The address of the registered office is Emmaus Colchester, 175 Magdalen Street, Colchester, Essex, C01 2JX.

The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year.

Charity information

Emmaus Colchester is a private company limited by guarantee incorporated in England and Wales. The registered office is .

1.1 Accounting convention

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

Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees' in furtherance of the general objectives of the charitable company and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors which have been raised by the charitable company for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

DocuSign Envelope ID: 24A6C9DE-E589-4088-8C71-2A2B2CBBA743

EMMAUS COLCHESTER

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022

1 Accounting policies

(Continued)

1.2 Income

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

Gifts in kind donated for distribution are not recognised in the financial statements. Gifts donated for resale are included as income when they are said. Donated facilities are included at the value to the charitable company where this can be quantified and a third party is bearing the cost. No amounts are included in the financial statements for services donated by volunteers.

Intangible income, which comprises donated services, is included in income at a valuation which is an estimate of the financial cost borne by the donor where such a cost is quantifiable and measurable. No income is recognised where there is no financial cost borne by a third party.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charitable company; this is normally upon notification of the interest paid or payable by the bank.

1.3 Expenditure

All expenditure is accounted for on an accruals basis and is recognised when there is a legal or constructive obligation to pay. Expenditure has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of resources. Overheads have been allocated on the basis of staff costs - inputs.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the of disseminating information in support of the charitable activities. Support costs are those costs incurred directly in support of expenditure on the objects of the charitable company and include project management carried out at Headquarters. Governance costs are those incurred in connection with administration of the charitable company and compliance with constitutional and statutory requirements.

1.4 Tangible fixed assets

Tangible fixed assets costing more than £500 are capitalised, including any incidental acquisition expenses. All fixed assets are initially recorded at cost.

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

Freehold land and buildings 2% straight line Leasehold land and buildings 0.833% straight line Fixtures and fittings 25% straight line IT Equipment 20% straight line Motor vehicles 25% straight line

DocuSign Envelope ID: 24A6C9DE-E589-4088-8C71-2A2B2CBBA743

EMMAUS COLCHESTER

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022

1 Accounting policies

(Continued)

No depreciation is provided on the original purchase of freehold land and freehold buildings. This treatment is in the opinion of the trustees, necessary in order to give a true and fair view of the position of the charitable company. The charitable company’s policy is to maintain the property in a continual state of sound repair and accordingly the Trustees are of the opinion that the life of the property is So long and residual value so high that any depreciation would be insignificant. Subsequent property works which are specific to the nature of the charity are depreciated over 50 years.

1.5 Cash and cash equivalents

Cash and cash equivalents include cash and short term highly liquid investments with a maturity of three months or less from the date of acquisition or the opening of the deposit or similar account.

1.6 Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets or financial liabilities. The charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

1.7 Taxation

Emmaus Colchester is a charity within the meaning of the Charities Acts 2011 and as such is a charity within the meaning of Part 11, Corporation Tax Act 2010. Accordingly, it is potentially exempt from taxation in respect of income or gains received within categories covered by Part 11, Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that such income or gains are applied exclusively to its charitable purpose

1.8 Pension's costs

Emmaus Colchester operates a defined contribution pension scheme to which certain employees of the charitable company contribute. The assets of the scheme are held separately from those of the charitable company. The annual contributions payable are charged to the profit and loss account.

1.9 Operating lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

2 Significant judgements and estimates

Preparation of the financial statements requires management to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and assumptions are based on experiences and other factors that are considered to be relevant. Actual results may differ from these estimates. There were no key assumptions or areas of estimation uncertainty that the Trustees believe have a significant risk of causing a material adjustment to the carrying amount of assets or liabilities within the next financial year.

DocuSign Envelope ID: 24A6C9DE-E589-4088-8C71-2A2B2CBBA743

EMMAUS COLCHESTER

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2022
2022
£
£
Donations and gifts
114,329
(77,294)
Grant receivable
52,000
-
The National Lottery
Community Fund
-
-
166,329
(77,294)		 Total
Unrestricted
Restricted
funds
funds
2022
2021
2021
£
£
£
37,035
45,989
-
52,000
90,892
46,565
-
-
24,963
89,035
136,881
71,528		 Total
2021
£
45,989
137,457
24,963
208,409

DocuSign Envelope ID: 24A6C9DE-E589-4088-8C71-2A2B2CBBA743

EMMAUS COLCHESTER

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022

4 Charitable activities

Shops and
House		 Housing Total Shops and
House		 Housing Total
warehouse
clearance and		 benefit 2022 warehouse
clearance and		 benefit 2021
sales clearing received sales clearing received
income income
2022 2022 2022 2021 2021 2021
£ £ £ £ £ £ £ £
Unrestricted funds 382,475 31,821 148,913 563,209 254,030 48,629 161,720 464,379

DocuSign Envelope ID: 24A6C9DE-E589-4088-8C71-2A2B2CBBA743

EMMAUS COLCHESTER

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022

5 Investments

6
7		 Unrestricted
Unrestricted
funds
funds
2022
2021
£
£
Interest receivable
110
94
Other income
Unrestricted
Unrestricted
funds
funds
2022
2021
£
£
Other income
4,714
2,005
Expenditure on raising funds
Unrestricted
Unrestricted
funds
funds
2022
2021
£
£
Trading costs
Shabby Chic costs and credit card charges
6,142
4,466
Prinitng, postage and stationery
3,298
3,268
Trading costs
9,440
7,734
9,440
7,734		 Unrestricted
Unrestricted
funds
funds
2022
2021
£
£
Interest receivable
110
94
Other income
Unrestricted
Unrestricted
funds
funds
2022
2021
£
£
Other income
4,714
2,005
Expenditure on raising funds
Unrestricted
Unrestricted
funds
funds
2022
2021
£
£
Trading costs
Shabby Chic costs and credit card charges
6,142
4,466
Prinitng, postage and stationery
3,298
3,268
Trading costs
9,440
7,734
9,440
7,734
7,734
7,734

DocuSign Envelope ID: 24A6C9DE-E589-4088-8C71-2A2B2CBBA743

EMMAUS COLCHESTER

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022

8 Charitable activities

Unrestricted
Funds
Restricted
Funds
2022
2022
£
£
Staff costs
266,895
9,690
Depreciation and
impairment
26,195
-
Warehouse Expenditure
33,257
-
Community House
58,279
22,963
Crouch Street
36,264
-
Annex 4
-
-
Works Expenditure
15,306
-
Emporium Shop
-
-
Home Shop
19,008
-
Motor Expenses
16,069
-
Office expenses, repairs
and maintenance
1,786
-
Marketing
703
-
Telephone
18,915
-
Accountancy
3,900
-
Solidarity Payments
11,263
-
Other charitable
expenditure
97,603
-
605,443
32,653
605,443
32,653
Analysis by fund
Unrestricted funds
605,443
-
Restricted funds
-
32,653
605,443
32,653		 Total
2022
Unrestricted
Funds
Restricted
Funds
2021
2021
£
£
£
276,585
111,135
132,974
26,195
21,959
-
33,257
26,811
-
81,242
36,419
3,207
36,264
40,461
-
-
4,527
-
15,306
12,306
-
-
6,317
-
19,008
19,698
4,782
16,069
12,912
-
1,786
6,118
-
703
5,397
-
18,915
18,360
-
3,900
4,545
-
11,263
11,374
-
97,603
95,513
5,329
638,096
433,852
146,292
638,096
433,852
146,292
605,443
433,852
-
32,653
-
146,292
638,096
433,852
146,292		 Total
2021
£
244,109
21,959
26,811
39,626
40,461
4,527
12,306
6,317
24,480
12,912
6,118
5,397
18,360
4,545
11,374
100,842
580,144
580,144
433,852
146,292
580,144

9 Employees

The average monthly number of employees during the year was:

Number of administrative staff
Charitable activities
Total		 2022
Number
1
12
13		 2021
Number
1
9
10

DocuSign Envelope ID: 24A6C9DE-E589-4088-8C71-2A2B2CBBA743

EMMAUS COLCHESTER

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022

9
Employees
Employment costs
Wages and salaries
Social security costs
Other pension costs		 (Continued)
2022
2021
£
£
255,035
224,545
16,371
15,186
5,179
4,378
276,585
244,109		 (Continued)
2022
2021
£
£
255,035
224,545
16,371
15,186
5,179
4,378
276,585
244,109
244,109

No employee received remuneration of more than £60,000 during the year (2021: £Nil).

No Trustee received any remuneration or benefits in kind. During the year £Nil was reimbursed to trustees for out of pocket expenses (2021: £Nil).

The charitable company considers its key management personnel comprises the Trustees only. The aggregate remuneration of key management personnel was £Nil (2021: £Nil).

DocuSign Envelope ID: 24A6C9DE-E589-4088-8C71-2A2B2CBBA743

EMMAUS COLCHESTER

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022

10 Tangible fixed assets

Freehold land
and buildings
£
Cost
At 1 July 2021
741,171
Additions
8,694
At 30 June 2022
749,865
Depreciation and impairment
At 1 July 2021
2,313
Depreciation charged in the year
3,557
At 30 June 2022
5,870
Carrying amount
At 30 June 2022
743,995
At 30 June 2021
738,858		 Leasehold
land and
buildings
Fixtures and
fittings
IT Equipment Motor vehicles
£
£
£
£
927,556
34,590
24,413
59,628
-
9,844
-
-
927,556
44,434
24,413
59,628
96,547
5,355
24,413
43,011
7,727
21,733
-
9,557
104,274
27,088
24,413
52,568
823,282
17,346
-
7,060
831,008
12,861
-
16,617		 Total
£
1,787,358
18,538
1,805,896
171,639
42,574
214,213
1,591,683
1,599,344

DocuSign Envelope ID: 24A6C9DE-E589-4088-8C71-2A2B2CBBA743

EMMAUS COLCHESTER

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022

10 Tangible fixed assets

(Continued)

A mortgage to secure the charitable company's investment in the Community building is held over leasehold land on 175 Magdalen Street, Colchester in the name of Paddington Churches Housing Association Limited.

11 Debtors

Debtors
Amounts falling due within one year:
Other debtors
Prepayments and accrued income
Creditors: amounts falling due within one year
Notes
Bank loans
14
Mortgage
Trade creditors
Other creditors		 2022
£
17,985
24,489
42,474
2022
£
6,858
-
3,028
43,826
53,712		 2021
£
9,379
30,369
39,748
2021
£
6,360
12,837
599
40,234
60,030

12 Creditors: amounts falling due within one year

The bank loan is secured by a legal charge over the freehold property and the mortgage was repaid in the year.

13 Creditors: amounts falling due after more than one year

Notes
Bank loans
14
Mortgage		 2022
£
230,114
-
230,114		 2021
£
237,092
169,621
406,713

The bank loan is secured by a legal charge over the freehold property.

Included within creditors falling due after more than one year is an amount of £230,114 (2021: £406,713) respect of a bank borrowings which falls due for repayment after more than five years from the balance sheet date.

The bank loan incurs interest of 3.77% which has increased to 4.42% on March 2022. The year of maturity currently forecasted is 2045.

The mortgage was repaid within the year.

DocuSign Envelope ID: 24A6C9DE-E589-4088-8C71-2A2B2CBBA743

EMMAUS COLCHESTER

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022

14
Loans and overdrafts
Bank loans
Mortgage
Payable within one year
Payable after one year		 2022
£
236,972
-
236,972
6,858
230,114		 2021
£
243,452
182,458
425,910
19,197
406,713

DocuSign Envelope ID: 24A6C9DE-E589-4088-8C71-2A2B2CBBA743

EMMAUS COLCHESTER

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022

15 Restricted funds

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

Movement in funds
Balance at
1 July 2020
Incoming
resources
Resources
expended
Balance at
1 July 2021
r
£
£
£
£
Emmaus UK CTF
861
2,407
(3,207)
61
Essex Community Foundation Income
5,000
-
(5,000)
-
E UK AF19-2 Grant (Building project 99 HS)
100,000
-
-
100,000
The National Lottery Community Fund
78,763
24,963
(103,726)
-
Postcode Lottery for Drivers salary
-
19,158
(9,577)
9,581
Freemason Grant Income
-
20,000
(20,000)
-
FSJ Grant for 99 HS Furniture
-
5,000
(4,782)
218
184,624
71,528
(146,292)
294,484		 Movement in funds
Incoming
esources
Resources
expended
Transfers
Balance at
30 June
2022
£
£
£
£
22,924
(22,963)
-
22
-
-
-
-
-
-
(100,000)
-
-
-
-
-
-
(9,690)
-
(109)
-
-
-
-
-
-
(218)
-
22,924
(32,653)
(100,218)
(87)

Emmaus UK CFT - For Companion personal development. Essex Community Foundation Income - To fund staff salaries.

E UK AF19-5 Grant (Building project 99 HS) - Contribution to the creation of additional companion rooms. The National Lottery Community Fund - To support core work.

PostCode Lottery - From the PostCode Neighbourhood Trust t fund a driver salary.

Freemasons Grant Income - From the Freemason's Covid-19 Community Fund to fund a support worker.

FSJ Grant for 99 HS Furniture - Grant from Fowler Smith and Joes Trust for the furnishing of our new accommodation.

DocuSign Envelope ID: 24A6C9DE-E589-4088-8C71-2A2B2CBBA743

EMMAUS COLCHESTER

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022

16 Designated funds

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


Community House Capital Fund
Maintenance Sinking Fund
General Funds		 Balance at
1 July 2020
£
838,735
74,928
392,104
1,305,767		 Movement in funds
Incoming
resources
Resources
expended
Transfers

£
£
£
-
-
(7,727)
-
-
(74,928)
603,359
(441,586)
82,655
603,359
(441,586)
-		 Balance at
1 July 2021
£
831,008
-
636,532
1,467,540		 Movement in funds
Incoming
resources
Resources
expended
Transfers
£
£
£
-
-
(7,726)
-
-
-
734,362
(607,157)
-
734,362
(607,157)
(7,726)		 Balance at
30 June
2022
£
823,282
-
763,737
1,587,019

The designated funds represent the net book value of the Community House leasehold property, totalling £823,282 (2021: £831,008).

DocuSign Envelope ID: 24A6C9DE-E589-4088-8C71-2A2B2CBBA743

EMMAUS COLCHESTER

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2022

17
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2022
2022
£
£
Fund balances at 30
June 2022 are
represented by:
Tangible assets
1,591,683
-
Current assets/(liabilities)
225,450
(87)
Long term liabilities
(230,114)
-
1,587,019
(87)		 Total
Unrestricted
funds
2022
2021
£
£
1,591,683
1,599,344
225,363
274,909
(230,114)
(406,713)
1,586,932
1,467,540		 Restricted
funds
2021
£
-
109,860
-
109,860		 Total
2021
£
1,599,344
384,769
(406,713)
1,577,400

18 Company limited by guarantee

The charitable company is a company limited by guarantee. The members of the company are the Trustees named on page one. In the event of the charitable company being wound up, the liability in respect of the guarantee is limited to £1 per member of the charitable company.

DocuSign Envelope ID: 24A6C9DE-E589-4088-8C71-2A2B2CBBA743

EMMAUS COLCHESTER

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022

19 Operating lease commitments

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

Within one year
Between two and five years		 2022
£
14,212
-
14,212		 2021
£
40,046
30,250
70,296

20 Related party transactions

The related parties of Emmaus Colchester are the Trustees of the charitable company. The charitable company is controlled by the Trustees.

There were no related party transactions identified which should be disclosed under the Financial Reporting Standard 102.

21 Cash generated from operations 2022 2021
£ £
Surplus for the year 9,532 87,009
Adjustments for:
Investment income recognised in statement of financial activities (110) (94)
Depreciation and impairment of tangible fixed assets 26,195 21,959
Movements in working capital:
Interest charge 15,213
(Increase)/decrease in debtors (2,726) 149,400
Increase/(decrease) in creditors 6,021 (109,661)
Cash generated from operations 38,912 163,826
22 Analysis of changes in net (debt)/funds
At 1 July 2021 Cash flows At 30 June 2022
£ £ £
Cash at bank and in hand 405,051 (168,450) 236,601
Loans falling due within one year (19,197) 12,339 (6,858)
Loans falling due after more than one year (406,713) 176,599 (230,114)
(20,859) 20,488 (371)