OpenCharities

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2023-06-30-accounts

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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 2023

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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)
James Brian McElhinney ACA
Francis Gerard Perera
Victoria Louise Fuller
Thomas Empson (resigned 1 September 2023)
Tribhuwan Prasad Bidyasagar Singh (appointed 17 May 2022 and
resigned 31 March 2023)
Gaynor Bell
Sean Thomas Connolly (appointed 1 September 2022)
Antony James Baker (appointed 1 November 2022)
Chief Executive Officer Brian Cooke (appointed 1 Decmember 2022)
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

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EMMAUS COLCHESTER

CONTENTS

Page
TrusteesTrustees' Annual Report 1 - 8
Independent examiner's report 10
Statement of financial activities 11
Balance sheet 12 - 13
Statement of cash flows 14
Notes to the financial statements 15 - 27

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EMMAUS COLCHESTER

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 30 JUNE 2023

The trustees present their annual report and financial statements for the year ended 30 June 2023. This report is also a Directors’ report required by Section 417 of the Companies Act as all Trustees are Directors.

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

Emmaus supports formerly homeless people by giving them a home, meaningful work in a social enterprise and an opportunity to get back on their feet again.

For many who ever experience homelessness one of the biggest obstacles they must overcome is a loss of selfesteem. Emmaus provides people with a stable home and the opportunity to regain their self-worth, making a real contribution to their community.

Research shows that for every £1 invested in a community, there is an £11 social, environmental and economic return, with savings to the benefits bill, health services and a reduction in crime reoffending.

Reference and administration details

Reference and administrative details are shown in the schedule of members of the board and professional advisers on page 1 of the financial statements.

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EMMAUS COLCHESTER

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2023

Constitution

The Charitable Company, incorporated as a company limited by guarantee is directed by a Board of Trustees and governed by its Memorandum and Articles of Association.

Method of appointment or election of Trustees

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 10 to the accounts. None of the trustees has any beneficial interest in the Charitable Company.

Induction and training of trustees

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.

Organisational structure and decision making

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.

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

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EMMAUS COLCHESTER

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2023

Review of activities and achievements: July 2022 to June 2023 .

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

Trading income for the year was £391,157 compared to last year £414,296, a decrease of £231,139. Rental income receipts from Housing Benefit were up by £45,584 to £198,347 a 29.84% increase from 2021/22.

After providing for charitable services, the Charity had a loss of £24,427 compared to a surplus of £109,532 in the previous year.

During the year we:

Extended the range of agencies making referrals to us and provided clearer eligibility criteria. Regular email updates and telephone conversations with referring agencies ensure that they keep us in mind. If we cannot assist with a referral we try to signpost them to another Emmaus Community that can. Feedback is provided on occasions that we cannot help, explaining why this is.

Community

During the year we had an average of 23 companions in residence compared with an average of 17.85 the previous year. Since the year end our companion numbers have increased to an average of 24. The average length of stay is 52 weeks and the stability of the community has lead to many positive outcomes.

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.

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EMMAUS COLCHESTER

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2023

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 CVs. 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, a driving licence renewal, a metal detector and a bicycle for companions.

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

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 in their first year with us, which is extended to four weeks holiday for following years. They are given an additional holiday subsistence allowance and travel allowance and are encouraged to leave the community, visit friends and family or explore other Emmaus Communities.

Health and Welfare

Companions are encouraged to become members of the local gym, which we help to fund. We also encourage companions to register with local doctors and dentists.

During the year the companions have enjoyed a visit to Colchester Zoo and a Chinese meal.

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 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 have helped 2 Ukrainian families to furnish their homes when they were housed. We helped RAMA – formerly Refugee Action Colchester to furnish their offices.

Operation Christmas was relaunched this year this year which supports local families in donating gifts to children whose families use the local food bank, children in hospital and this year, Ukrainian and Afghanistan refugee children housed in local hotels .

We also had a very successful Operation Easter, mainly due with thanks to Reed Employment Agency for their egg donations. These Eggs were distributed via our very own easter Bunny, to Children of families struggling with the cost of living crises.

We work closely with Market Field School pupils who have learning disabilities and enjoy working in our workshop, learning upcycling skills.

We collect and donate bicycles to a charity that collect, refurbish and ship used bikes to communities in need to help them get to work.

We donated one days takings from the social enterprise to the DEC supporting the Turkey/Syria earthquake

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EMMAUS COLCHESTER

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2023

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 discussions 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 illegal drugs and alcohol.

We operate from a Retail Warehouse, a High Street shop and an Online shop and provide a House Clearance service.

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

Trustees must ensure that the charity’s funds are used appropriately, prudently, lawfully and in accordance with the charity’s purposes for the public benefit. The general principle of trust law is that funds received as income should be spent within a reasonable period of receipt. Trustees are justified in exercising their power to hold income reserves in the charity’s best interest.

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EMMAUS COLCHESTER

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2023

Our policy is to hold an expense reserve to cover 3 months expenditure, a sinking fund to cover repairs and renewals on the Community House building and an investment reserve to fund capital investment in the community and expansion of the business.

The designated funds reserves relate to capital assets less all related debt.

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

30.6.2023 30.6.2022
Restricted funds (note 15) (87)
Unrestricted funds
Capital revenue £1,471,765 £1,337,163
Total Designated Funds (note 16) £1,471,765 £1,337,163
General unrestricted funds £90,740 £249,856
Total income funds £1.562.505 £1,586,932

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.

Responsibilities of the trustees

The trustees (who are also the directors for the purposes of company law) are responsible for preparing the Trustees Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees must prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the trustees must not approve the financial statements unless they are satisfied that they 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:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and 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.

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EMMAUS COLCHESTER

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2023

Who benefits from our work?

Emmaus Colchester started the year with accommodation available for 27 Companions, increasing to 29 at the end of the 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. 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.

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EMMAUS COLCHESTER

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2023

The trustees report was approved by the Board of Trustees.

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

James McElhinney ACA Trustee Registered office: 175 Magdalen Street Colchester Essex CO1 2JX 10-10-23 Date: .............................................

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EMMAUS COLCHESTER

STATEMENT OF TRUSTEES RESPONSIBILITIES

FOR THE YEAR ENDED 30 JUNE 2023

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 reappointed 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.

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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 2023.

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 FCA BA (Hons) For and on behalf of LB Group (Stratford)

11-10-23

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

Number One Vicarage Lane Stratford London England E15 4HF

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EMMAUS COLCHESTER

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 JUNE 2023

Unrestricted
Restricted
funds
funds
2023
2023
Notes
£
£
Income and endowments from:
Donations and legacies
3
32,659
23,703
Charitable activities
4
589,504
-
Investments
5
1,029
-
Other income
6
6,662
-
Total income
629,854
23,703
Expenditure on:
Expenditure on raising
funds
7
9,721
-
Charitable activities
8
644,647
23,616
Total expenditure
654,368
23,616
Net (expenditure)/income for
the year/
Net movement in funds
(24,514)
87
Gross transfers between funds
-
-
Fund balances at 1 July 2022
1,587,019
(87)
Fund balances at 30 June
2023
1,562,505
-		 Total Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
56,362
166,329
22,706
589,504
563,209
-
1,029
110
-
6,662
4,714
-
653,557
734,362
22,706
9,721
9,440
-
668,263
605,443
32,653
677,984
614,883
32,653
(24,427)
119,479
(9,947)
-
100,000
(100,000)
1,586,932
1,367,540
109,860
1,562,505
1,587,019
(87)		 Total
2022
£
189,035
563,209
110
4,714
757,068
9,440
638,096
647,536
109,532
-
1,477,400
1,586,932

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.

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EMMAUS COLCHESTER

BALANCE SHEET

AS AT 30 JUNE 2023

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		 2023
£
£
1,571,939
50,179
61,346
111,525
(50,344)
61,181
1,633,120
(70,615)
1,562,505
-
1,471,765
1,471,765
90,740
1,562,505
1,562,505		 2022
as restated
£
£
1,591,683
42,474
236,601
279,075
(53,712)
225,363
1,817,046
(230,114)
1,586,932
(87)
1,337,163
1,337,163
249,856
1,587,019
1,586,932

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EMMAUS COLCHESTER

BALANCE SHEET (CONTINUED)

AS AT 30 JUNE 2023

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 2023.

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.

10-10-23

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

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

James McElhinney ACA

Trustee

Company registration number 03805699

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EMMAUS COLCHESTER

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2023

2023 2022
Notes £ £ £ £
Cash flows from operating activities
Cash (absorbed by)/generated from 21
operations (18,848) 38,912
Investing activities
Purchase of tangible fixed assets - (18,538)
Investment income received 1,028 110
Net cash generated from/(used in)
investing activities 1,028 (18,428)
Financing activities
Repayment of borrowings - (182,458)
Repayment of bank loans (157,435) (6,476)
Net cash used in financing activities (157,435) (188,934)
Net decrease in cash and cash equivalents (175,255) (168,450)
Cash and cash equivalents at beginning of year 236,601 405,051
Cash and cash equivalents at end of year 61,346 236,601

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EMMAUS COLCHESTER

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

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 175 Magdalen Street, Colchester, Essex, CO1 2JX.

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.

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EMMAUS COLCHESTER

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

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 1% 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: 6C598A8E-3A02-4845-94F8-3F50B1C0B2CBDocuSign Envelope ID: BED819AC-0EA5-4467-A85B-E10C415C7504

EMMAUS COLCHESTER

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

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: 6C598A8E-3A02-4845-94F8-3F50B1C0B2CBDocuSign Envelope ID: BED819AC-0EA5-4467-A85B-E10C415C7504

EMMAUS COLCHESTER

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2023
2023
£
£
Donations and gifts
32,659
23,703
Grant receivable
-
-
32,659
23,703		 Total
Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
56,362
114,329
22,706
-
52,000
-
56,362
166,329
22,706		 Total
2022
£
137,035
52,000
189,035

DocuSign Envelope ID: 6C598A8E-3A02-4845-94F8-3F50B1C0B2CBDocuSign Envelope ID: BED819AC-0EA5-4467-A85B-E10C415C7504

EMMAUS COLCHESTER

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

4 Charitable activities

Shops and
House		 Housing Total Shops and
House		 Housing Total
warehouse
clearance and		 benefit 2023 warehouse
clearance and		 benefit 2022
sales clearing received sales clearing received
income income
2023 2023 2023 2022 2022 2022
£ £ £ £ £ £ £ £
Unrestricted funds 369,361 21,796 198,347 589,504 382,475 31,821 148,913 563,209

DocuSign Envelope ID: 6C598A8E-3A02-4845-94F8-3F50B1C0B2CBDocuSign Envelope ID: BED819AC-0EA5-4467-A85B-E10C415C7504

EMMAUS COLCHESTER

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

5
6
7		 Investments
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Interest receivable
1,029
110
Other income
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Other income
6,662
4,714
Expenditure on raising funds
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Trading costs
Shabby Chic costs and credit card charges
5,446
6,142
Prinitng, postage and stationery
4,275
3,298
Trading costs
9,721
9,440
9,721
9,440		 Investments
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Interest receivable
1,029
110
Other income
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Other income
6,662
4,714
Expenditure on raising funds
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Trading costs
Shabby Chic costs and credit card charges
5,446
6,142
Prinitng, postage and stationery
4,275
3,298
Trading costs
9,721
9,440
9,721
9,440
9,440
9,440

DocuSign Envelope ID: 6C598A8E-3A02-4845-94F8-3F50B1C0B2CBDocuSign Envelope ID: BED819AC-0EA5-4467-A85B-E10C415C7504

EMMAUS COLCHESTER

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

8 Charitable activities

Unrestricted
Funds
Restricted
Funds
2023
2023
£
£
Staff costs
307,906
-
Depreciation and
impairment
24,434
-
Warehouse Expenditure
35,680
-
Community House
63,281
23,616
Crouch Street
1,458
-
Works Expenditure
16,257
-
Home Shop
17,866
-
Motor Expenses
17,136
-
Office expenses, repairs
and maintenance
4,399
-
Marketing
520
-
Telephone
17,854
-
Accountancy
4,475
-
Solidarity Payments
11,078
-
Other charitable
expenditure
122,303
-
644,647
23,616
644,647
23,616
Analysis by fund
Unrestricted funds
644,647
-
Restricted funds
-
23,616
644,647
23,616		 Total
2023
Unrestricted
Funds
Restricted
Funds
2022
2022
£
£
£
307,906
266,895
9,690
24,434
26,195
-
35,680
33,257
-
86,897
58,279
22,963
1,458
36,264
-
16,257
15,306
-
17,866
19,008
-
17,136
16,069
-
4,399
1,786
-
520
703
-
17,854
18,915
-
4,475
3,900
-
11,078
11,263
-
122,303
97,603
-
668,263
605,443
32,653
668,263
605,443
32,653
644,647
605,443
-
23,616
-
32,653
668,263
605,443
32,653		 Total
2022
£
276,585
26,195
33,257
81,242
36,264
15,306
19,008
16,069
1,786
703
18,915
3,900
11,263
97,603
638,096
638,096
605,443
32,653
638,096

9 Employees

The average monthly number of employees during the year was:

Number of administrative staff
Charitable activities
Total		 2023
Number
1
12
13		 2022
Number
1
12
13

DocuSign Envelope ID: 6C598A8E-3A02-4845-94F8-3F50B1C0B2CBDocuSign Envelope ID: BED819AC-0EA5-4467-A85B-E10C415C7504

EMMAUS COLCHESTER

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

9
Employees
Employment costs
Wages and salaries
Social security costs
Other pension costs		 (Continued)
2023
2022
£
£
284,671
255,035
16,186
16,371
7,049
5,179
307,906
276,585		 (Continued)
2023
2022
£
£
284,671
255,035
16,186
16,371
7,049
5,179
307,906
276,585
276,585

No employee received remuneration of more than £60,000 during the year (2022: £Nil).

No Trustee received any remuneration or benefits in kind. During the year £Nil was reimbursed to trustees for out of pocket expenses (2022: £Nil).

The charitable company considers its key management personnel comprises the Trustees only. The aggregate remuneration of key management personnel was £Nil (2022: £Nil).

DocuSign Envelope ID: 6C598A8E-3A02-4845-94F8-3F50B1C0B2CBDocuSign Envelope ID: BED819AC-0EA5-4467-A85B-E10C415C7504

EMMAUS COLCHESTER

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

10 Tangible fixed assets

Freehold land
and buildings
£
Cost
At 1 July 2022
749,864
At 30 June 2023
749,864
Depreciation and impairment
At 1 July 2022
9,427
Depreciation charged in the year
-
At 30 June 2023
9,427
Carrying amount
At 30 June 2023
740,437
At 30 June 2022
743,995		 Leasehold
land and
buildings
Fixtures and
fittings
IT Equipment Motor vehicles
£
£
£
£
927,556
39,552
34,098
59,628
927,556
39,552
34,098
59,628
104,274
27,087
24,413
52,568
7,727
6,323
793
6,147
112,001
33,410
25,206
58,715
815,555
6,142
8,892
913
823,282
17,346
-
7,060		 Total
£
1,810,698
1,810,698
217,769
20,990
238,759
1,571,939
1,591,683

DocuSign Envelope ID: 6C598A8E-3A02-4845-94F8-3F50B1C0B2CBDocuSign Envelope ID: BED819AC-0EA5-4467-A85B-E10C415C7504

EMMAUS COLCHESTER

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

11 Debtors

Amounts falling due within one year:
Other debtors
Prepayments and accrued income		 2023
£
23,541
26,638
50,179		 2022
£
17,985
24,489
42,474

12 Creditors: amounts falling due within one year

Notes
Bank loans
14
Trade creditors
Other creditors		 2023
£
13,611
9,882
26,851
50,344		 2022
£
6,858
3,028
43,826
53,712

The bank loan is secured by a legal charge over the freehold property, 99 High Street Colchester, Essex.

13 Creditors: amounts falling due after more than one year

2023 2022
Notes £ £
Bank loans 14 70,615 230,114

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 £70,615 (2022: £230,114) 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 above base rate and the year of maturity currently forecasted is 2029.

14 Loans and overdrafts

Bank loans
Payable within one year
Payable after one year		 2023
£
84,226
13,611
70,615		 2022
£
236,972
6,858
230,114

DocuSign Envelope ID: 6C598A8E-3A02-4845-94F8-3F50B1C0B2CBDocuSign Envelope ID: BED819AC-0EA5-4467-A85B-E10C415C7504

EMMAUS COLCHESTER

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

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:


r
Emmaus UK CTF
E UK AF19-2 Grant (Building project 99 HS)
Postcode Lottery for Drivers salary		 Movement in funds
Incoming
esources
Resources
expended
Transfers
Balance at
1 July 2022
r
£
£
£
£
23,703
(23,616)
-
(87)
100,000
-
(100,000)
-
-
-
-
-
123,703
(23,616)
(100,000)
(87)		 Movement in funds
Incoming
esources
Resources
expended
£
£
667
(657)
-
-
-
-
667
(657)		 Transfers
Balance at
30 June 2023
£
£
(32)
-
-
-
109
-
77
-		 Transfers
Balance at
30 June 2023
£
£
(32)
-
-
-
109
-
77
-
-

Emmaus UK CFT - For Companion personal development. E UK AF19-5 Grant (Building project 99 HS) - Contribution to the creation of additional companion rooms. PostCode Lottery - From the PostCode Neighbourhood Trust fund and drivers salary.

DocuSign Envelope ID: 6C598A8E-3A02-4845-94F8-3F50B1C0B2CBDocuSign Envelope ID: BED819AC-0EA5-4467-A85B-E10C415C7504

EMMAUS COLCHESTER

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

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:

Capital fund Balance at
1 July 2021
Depreciation
as restated
£
£
1,332,774
(11,284)
1,332,774
(11,284)		 Transfers
£
15,673
15,673		 Balance at
1 July 2022
Depreciation
as restated
£
£
1,337,163
(11,284)
1,337,163
(11,284)		 Transfers
Balance at
30 June 2023
£
£
145,886
1,471,765
145,886
1,471,765		 Transfers
Balance at
30 June 2023
£
£
145,886
1,471,765
145,886
1,471,765
1,471,765

The designated funds balance represents the net book value of freehold and leasehold land and buildings at the year end. The purpose of the fund is to represent separately the portion of the Charity's unrestricted funds that are not free for general use. Each year an amount is transferred to or from the fund representing movement in the net book value of fixed assets for the year.

17 Analysis of net assets between funds

Unrestricted
funds
Restricted
funds
2023
2023
£
£
Fund balances at 30
June 2023 are
represented by:
Tangible assets
1,571,939
-
Current assets/(liabilities)
61,181
-
Long term liabilities
(70,615)
-
1,562,505
-		 Total
Unrestricted
funds
2023
2022
£
£
1,571,939
1,591,683
61,181
225,450
(70,615)
(230,114)
1,562,505
1,587,019		 Restricted
funds
2022
£
-
(87)
-
(87)		 Total
2022
£
1,591,683
225,363
(230,114)
1,586,932

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: 6C598A8E-3A02-4845-94F8-3F50B1C0B2CBDocuSign Envelope ID: BED819AC-0EA5-4467-A85B-E10C415C7504

EMMAUS COLCHESTER

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

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:

2023 2022
£ £
Within one year - 14,212

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 2023 2022
£ £
(Deficit)/surpus for the year (24,427) 9,532
Adjustments for:
Investment income recognised in statement of financial activities (1,029) (110)
Depreciation and impairment of tangible fixed assets 24,434 26,195
Movements in working capital:
(Increase) in debtors (7,705) (2,726)
(Decrease)/increase in creditors (10,121) 6,021
Cash (absorbed by)/generated from operations (18,848) 38,912
22 Analysis of changes in net (debt)/funds
At 1 July 2022 Cash flows At 30 June 2023
£ £ £
Cash at bank and in hand 236,601 (175,255) 61,346
Loans falling due within one year (6,858) (6,753) (13,611)
Loans falling due after more than one year (230,114) 159,499 (70,615)
(371) (22,509) (22,880)