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2021-03-31-accounts

Company Number: 03638571 Charity Number: 1078945

PRAXIS COMMUNITY PROJECTS

TRUSTEES’ ANNUAL REPORT & FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

PRAXIS COMMUNITY PROJECTS

TRUSTEES’ ANNUAL REPORT For the year ended 31 March 2021

The Trustees present their report and financial statements of Praxis Community Projects (“Praxis”) for the year ended 31 March 2021.

REFERENCE & ADMINISTRATIVE DETAILS

Trustees serving during the year:

The Trustees of the Charity, who are also the Directors of the Company, have held office since 1 April 2020 as follows:

Barbara Roche ( Chair) Elijah Agwom Sambo (Resigned 12 November 2020) Pasha Michaelsen (Vice Chair) Jumana Rahman Raphael Perret (Treasurer and Chair of Finance and Resources Committee) Martin Cosarinsky Campos Dylan Matthews Ruby Giblin Kemi Ogunlana (Appointed 12 November 2020) Tom Brand Constance Cullen

Chief Executive:

Sally Daghlian OBE

Principal Office:

Pott Street, London, E2 0EF

Charity Number:

3638571

Auditors:

Haysmacintyre LLP, 10 Queen Street Place, London, EC4R 1AG

Bankers:

HSBC plc, 465 Bethnal Green Road, London, E2 9QW

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PRAXIS COMMUNITY PROJECTS

TRUSTEES’ ANNUAL REPORT For the year ended 31 March 2021

OUR CHARITABLE OBJECTS

Praxis’ charitable objects are to:

Our five strategic objectives build on the objects of the charity and the current context and set the framework for our activities.

a) Migrants at-risk will be able to access services recognising their human rights and needs.

We provided specialist immigration advice and a range of welfare services and interventions targeted at those facing the highest risks, including homelessness, ensuring pathways out of destitution. Acting in collaboration with other charities and service providers, we improved access to legal advice and support services for migrants in need.

b) Destitute migrants will be able to access safe accommodation and support.

Praxis provided safe, temporary homes and support to migrants at-risk with ‘no recourse to public funds’ (NRPF) through our housing projects; we used our experience and expertise to influence local authorities and the homelessness sector to improve the wider provision of accommodation and support for NRPF families and single migrants.

c) The challenges faced by undocumented, destitute migrants and those with uncertain immigration status will be more widely understood

We shared our knowledge and expertise through training, networking, alliance building and events. We use the evidence gathered through our front-line work to lead, influence and create change at local and national level and contributed to improving the public narrative on migration and fostering support for migrants.

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d) Service users find resilience, voice and a sense of belonging

Praxis helped create community and social connectedness through our peer support groups, providing opportunities to develop confidence, skills, knowledge and potential. We supported our service users to speak up about the issues that affect them and contribute to public and policy debates, and to shaping our own work.

e) A robust and sustainable charity, able to champion the needs of our beneficiaries

Praxis developed its infrastructure, strategic management and thinking capacity to increase sustainability and impact.

OUR ACTIVITIES

Praxis work and priorities are set out by the trustees in the Strategic Plan 2018-21 as summarised below.

Praxis’ Vision is for a world where people are not defined by their immigration status; a world where people who have migrated are treated with dignity and respect.

Praxis’ core purpose is to work with migrants in crisis or at risk, to ensure that they can live in safety, overcome the barriers they face and have control over their own destinies. We provide specialist services, build community, challenge exclusion and inspire solidarity with migrants.

We focus our activities on three main areas: advice and support; homelessness and destitution; and group work to build community, resilience and voice. We target our advice and group work services at the people most at risk, with the greatest need, and where we can achieve the most impact. Our beneficiaries include people with insecure status or without documentation to prove their status, those who have experienced trafficking or enslavement, asylum seekers and refugees, homeless and destitute migrants and victims of exploitation and gender violence.

We seek ways to use the evidence from our service delivery to influence policy, improve service provision and build a more welcoming community in which people can integrate and thrive. Supporting people to speak for themselves is an integral part of this strategy.

Our direct services are pan-London but we share our expertise and influence nationally and internationally.

We provided an interpreting service working under contract to the GP Care Group to deliver specialist language support in 10 GP surgeries across East London.

ACHIEVEMENTS AND PERFORMANCE

Achievements and performance during the period have been set against the strategic objectives.

With the support of funders, over the last year Praxis has met its organisational objectives, while responding to the urgent and emerging needs of the people we support in the face of the global pandemic. The following section details our activities and impact in 2020 -2021.

Responding to Covid-19

“My immigration matter was solved within three months… before [I came to] Praxis [there was] Covid and no one, nobody helped me and my children, I was totally helpless.” - Ida

In 2020 the Government’s response to the Windrush Lessons Learned Review acknowledged ‘institutional failings at the heart of the Home Office’ . On the frontline, Praxis has seen the human impact of these failings every day as

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TRUSTEES’ ANNUAL REPORT For the year ended 31 March 2021

Legal Aid cuts, restrictive immigration policies and cuts to frontline services have left people without access to the advice and support they need and forced them into needless poverty and crisis.

Covid-19 has both exposed and exacerbated these issues. Increasingly, people have presented to Praxis facing destitution and homelessness, vulnerability to declining health and severe safeguarding issues, while lockdown has isolated them from the communities and networks that could help them.

Many people had been living in poverty before the pandemic started and received no public support because of insecure immigration status or the No Recourse to Public Funds condition on their visa. Lockdowns, loss of work, reduced access to services and the closure of community projects left people hungry and without essentials. People have struggled to meet Home Office requirements in lockdown with reduced access to advice, support, and the documents they need. Delays in decision making by the Home Office has extended periods of destitution. Digital exclusion, isolation and language barriers have intensified these issues, impacting on mental health and compounding existing traumas.

In April 2020, Praxis responded quickly to the Covid-19 pandemic, implementing business continuity plans and redesigning activities and services to ensure we could address the existing and emerging needs of those we support, while adhering to health guidelines to maintain the safety of staff, service users and wider public:

The following section details progress towards our organisational objectives in the period 2020/2021.

Objective 1: Migrants in crisis are able to access services that recognise their human rights Immigration and Welfare Advice:

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“Everybody at Praxis is so wonderful, whatever they’ve done for me I’ll never forget it in my whole life… even if we couldn’t meet, they always tried their best to help all of us.” – Lucy

In April 2020 as the UK went into its first lockdown, Praxis quickly redesigned our drop-in advice services to be delivered remotely, online and over the phone. Expert advisers continued to work closely with individuals, supporting them to understand their options, delivering casework, advocating on their behalf and ensuring access to the immigration, housing, benefits, healthcare and family advice. Over the last year Praxis has provided advice to 2254 people.

Praxis continued its partnerships with leading homelessness organisations, providing an essential legal lifeline for migrants experiencing homelessness. We delivered innovative projects across London with Crisis, the Connection at St. Martin’s, Pathways and St Mungo’s and joined a pan-London partnership led by Shelter. We provide expert, specialist immigration advice and support within these projects, while delivering ongoing training to support homelessness organisations better understand and holistically address the barriers faced by migrants experiencing homelessness.

We worked closely with partners to ensure migrants were included in the ‘Everybody In' initiative. We facilitated a coalition of six frontline organisations, led by Crisis, to ensure the provision of immigration advice to support destitute migrants sheltering in hotels. This model was successfully adopted across all 11 hotels funded by the Greater London Authority, where we supported 276 people, offering advice and securing long term routes out of homelessness.

With emergency response funding from The Coronavirus Community Fund and Respond and Adapt, we launched The Covid Inclusion Project making 1,160 welfare calls to those most at risk, conducting triage needs assessments to ensure that they had access to the guidance, support and information they needed to live safely. We also launched a new Destitution Service, providing hardship grants and referrals into complementary services. We dedicated resources to monitoring and evaluating our response, analysing emerging trends and consulting services users to ensure that our work remained rooted in their experiences and needs. Throughout we supported people to understand their rights and entitlements and advocate for themselves.

Housing:

“When I was homeless and I had my child with me, with no food, and no home, that’s when I moved into Praxis’ house…Praxis also helped me with my immigration case…It didn’t take very long time to get a visa then, just three or four months! Before that I had been stuck for more than two years.” – Lucy

In 2020 our award-winning housing project provided 10,514 nights of safe accommodation, continuing to be a lifeline for women and children at risk. This year 26 adults and 27 children stayed in Praxis accommodation, with access to specialist advice, casework and support to enable them to find sustainable pathways out of destitution.

To comply with government guidelines, we stopped taking new referrals into the Housing Project, and instead focused on supporting the existing residents through the crisis and subsequent lockdowns. We delivered weekly calls to support wellbeing and identify needs, and supported families with activities and learning opportunities for the children. For those moving on from the project thanks to a positive response to their immigration case, we provided support with the transition to having secure status, delivering casework to enable access to benefits, support with the move and resettlement in the new home. With many Local Authorities operating reduced services, this support was critical.

As a result of our intervention, 16 people were able to leave the project with secure immigration status and access to statutory support. The project has demonstrated the effectiveness of providing accommodation alongside immigration advice. The average stay for these families was 364 days in comparison to a 629-day average stay for

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families supported by local authorities in other accommodation, resulting in both quicker positive outcomes for families and significant savings to local authorities. Praxis will use evidence and learning from the project to advocate for commissioning to include increased holistic provision.

Objective 2: Service users find resilience, voice and a sense of belonging

“I knew my voice would get heard, regardless of what was going on in my life.” – Maya

This year Praxis has delivered four peer-led community groups: Brighter Futures a creative group for 18 – 30-yearolds; WINGS, a group for young children and their mothers; GIANTS a space for migrant men who are fighting isolation and poor mental health and Language of Wellbeing, a group for women to build social connections through yoga practice and English learning.

These groups all have set objectives to reduce isolation, build resilience and solidarity and strengthen voices. This year Praxis supported over 200 people through these groups, and feedback from group members below demonstrates the success of the groups in meeting objectives and the positive impact they have on people’s lives:

In April 2020, we quickly moved our group work online, doubling the number of sessions to meet increased need. We provided additional 1:1 calls to members to ensure they had access to the support and advice they needed to live safely. In the first six months of the pandemic, Praxis provided 92 care packages to group members which included hygiene essentials, wellbeing products for parents and education activities such as books, games, and pens and colouring pencils for children. We delivered 59 tablets and smartphones to reduce digital exclusion and make sure that families could access vital support online and children could keep up with schoolwork.

“At the beginning of lockdown people found it difficult to go online, so Praxis sent us tablets and phones – they have gone the extra mile to make us feel comfortable and connected.” David

Objective 3: The challenges faced by undocumented, destitute migrants and those with uncertain immigration status are more widely understood

Training:

Over the year we continued to build awareness of the issues affecting destitute migrants, model innovative solutions and share knowledge and good practice, supporting other organisations to understand the complex and frequently changing landscape of services and entitlements. Delivering this work online, we delivered training and presentations to over 200 organisations. We participated in several networks to increase awareness, share learning and resources. Networks include NRPF working group, NACCOM, Tower Hamlets Community Advice Network, Migrant Rights Network, Refugee and Migrant Children’s Consortium, Housing and Immigration Group, Refugee Legal Group, the Migrants and Refugees Advisory Panel and the GLA Homeless Migrant and Refugee Panel.

In March 2021 Praxis facilitated a conference called ‘Homelessness and migration – working towards better solutions together’ with Homeless Link and the Frontline Network. The conference provided a joint platform for

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homelessness and migrant organisations across the country to explore challenges and showcase solutions to migrant destitution. Over 1000 people registered, and workshops provided an overview of the current picture of migrant homelessness in England, including the effects of Covid-19 and Brexit. It showcased good practice by services and commissioners and expertise from Praxis and people with lived experience. It also offered practical advice on how the homelessness and migration sector can work better together to achieve shared goals.

Campaigning:

Praxis continued to support people to speak out about the issues that affect them. During the year Brighter Futures presented at the launch of the All-Party Parliamentary Group on No Recourse to Public Funds, to the Mayor of London’s Digital Digest on food insecurity for young people and to the Covid-19 House of Lords Select Committee. They used this work to create a booklet, outlining their hopes and fears in the context of Covid 19 . Members were also featured in a BBC News article on the barriers faced by those who are young and undocumented, which was engaged with by over 1 million people.

WINGS members spoke in parliament at the APPG on No Recourse to Public Funds, and later turned their intervention into a series of blogs, exposing the many ways no recourse to public funds impacts their families in the context of Covid .

This year Praxis began work on a three-year campaign co-produced with people with first-hand experience of the immigration system. The campaign will challenge the no recourse to public funds condition and aims to secure national changes in policy and practice to ensure that everyone has a safety net in times of crisis.

Objective 4: A robust and sustainable charity, able to champion the needs of our beneficiaries

In 2020-21 we continued to build the infrastructure of the charity to strengthen our governance. In 2020 a management review was undertaken with the aim of ensuring Praxis has a sound operating structure to meet the challenges ahead. This review led to the creation of two new posts, a head of finance and resources and a head of fundraising and communications. The existing head of services role was revised to become the head of operations and business development. A review of the fundraising and communications team and structure was carried out in early 2021 and changes implemented over the year to strengthen the organisation and enable delivery against the new strategic plan.

A key challenge for Praxis has been enabling staff members to undertake their day-to-day work in the most efficient way remotely while ensuring accessible services for our service users. To deliver services in different and more flexible ways we embarked on a digital transformation project which has included moving from Office 2007 to Office 365 and the implementation of Microsoft Teams across the organisation. The implementation of this was brought forward to help us meet the challenges of remote working necessitated by the pandemic. Implementation is ongoing, and we will continue to roll out new tools including Modern Management and SharePoint. Over 2020 we learnt a great deal about being an agile, flexible, paperless organisation and this is something we intend to consolidate in 2021.

As for many organisations, health and safety and supporting staff wellbeing and resilience has been a key priority this year. All staff have been consulted throughout the year on remote working and how Praxis can best support them, and we widened access to monthly reflective practice sessions facilitated by a clinical psychologist, supervisions with a fixed agenda item on wellbeing and support needs, weekly yoga and mindfulness practice and access to a full Employee Assistance Programme. This work has been supported by the appointment of the new Head of Finance and Resources.

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This year also saw the harrowing and public killing of George Floyd in the US and the exposure of the violent and deep-rooted nature of racism that sparked the Black Lives’ Matter movement in the US, the UK and across the world. As a human rights’ organisation Praxis challenges racism and discrimination daily, but have challenged ourselves this year to examine our obligations and behaviours to ensure that we are addressing the injustices of racism, the structures and thinking that perpetuates it. In 2020 we began an organisation-wide learning exercise to ensure that an anti-racist approach is embedded within our strategy and across the organisation and this work will continue in 2021.

CHARITY STRUCTURE, GOVERNANCE & MANAGEMENT

Status

Praxis Community Projects is a registered charity and a company limited by guarantee, not having share capital. Every member undertakes to contribute an amount not exceeding £1 to the assets of the charity in the event of the charity being wound up during the period of membership, or within one year thereafter.

The members of the company comprise individuals, who are the trustees of the charity and the directors of the company, and certain groups that have a specific interest in the charitable activities of Praxis. The current members groups are: Arewa Association, SACC - Salvador Allende Cultural Centre, Vamos Juntos, Diaspora Support Network and the Uganda Social Justice Arena.

Constitution

The company was incorporated on 25 September 1998 and is registered at Companies House under number 03638571. It took over the assets, liabilities and activities of The Robert Kemble Christian Institute (“RKCI”) from 1 April 1999. It was registered as an incorporated charity with the Charity Commissioners under registration number 1078945 on 13 January 2000.

RKCI was originally established by a Deed of Declaration of Trust dated 6 June 1983 following the premature death of the Reverend Robert Kemble, a minister of the United Reformed Church, who had worked extensively with displaced people in Central London. Initial funding for the charity came from a bequest in Reverend Kemble’s will. There were no restrictions attached to the use of this legacy.

The incorporated charity is now governed by the rules and regulations set down in its company Memorandum and Articles of Association which were originally dated 25 September 1998 and were subsequently amended on 29 November 1999 and 13 July 2006. In March 2018 the Memorandum of Articles and Association were amended to bring them into line with current legislation and the current context of the charity’s work.

Organisational structure, governance and management

The overall strategic direction of the charity is determined by the trustees who meet formally six times a year for quarterly board meetings, an AGM and a strategy away day. The trustees agree the strategic and operational priorities and annual budget. They also establish policies and procedures for the running of the charity. There are two sub-groups, the Finance and Resources Committee which meets six times a year and reports to each of the main board meetings and a Premises Committee, formed to assist the organisation to find new premises in advance of the end of its lease in 2025. The finance and resources committee takes responsibility for monitoring and reporting to the Board on key areas including financial planning and management, fundraising, human resources and risk management. From time to time, small groups of trustees and staff work together to consider relevant strategic or operational issues. In addition to attending board meetings the board deploys the expertise

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and interest of individual trustees to support the chief executive and staff in agreed ways, including as champions for a particular issue or service. The organisation has a Service User Forum designed to engage service users in the planning and governance of the organisation and give feedback on services. Two of the trustees attend the service–user forum and two service-user representatives attend trustee meetings in an advisory capacity. Praxis has begun a review of governance using the Governance Code as a reference point and will complete this during 2021.

The day-to-day management of Praxis is delegated to the Chief Executive and the senior management team. The Chief Executive presents an overview report to each board meeting, along with reports on service delivery, quality assurance and performance. The trustees receive quarterly financial reports and management accounts, including cash flows.

Method of recruitment, appointment, induction and training of trustees

Recruitment

Trustees are normally selected through an open recruitment and search process led by the chair and a trustee recruitment panel which includes the chief executive. Trustees are selected based on criteria established by the Board, comprising relevant skills and experience, knowledge of the areas of work in which the charity is engaged, understanding of governance and an understanding of the communities with which the charity works. In November 2020 Kemi Ogunlana was appointed as a trustee, having served one year as a service user representative, attending the trustee board in an advisory capacity.

Appointment

Trustees hold office for a period of three years from the date of appointment (or such shorter period as the Trustees may agree) and, if qualified, are eligible for reappointment for further terms of three years, not exceeding three terms in total.

Induction and training

New trustees receive formal induction, including meetings with the CEO and chair, key documents including the Memorandum and Articles of Association, the strategic plan, and opportunities to meet staff and shadow work. Individual trustees are eligible for governance related training courses and are encouraged to attend. The board reviews its own performance, skills and composition annually at the strategic review day.

Diversity

The Board has not set diversity targets, but is diverse, in terms of gender, age, nationality and ethnicity and maintaining diversity is a factor in board recruitment. The board currently comprises 50% women and 50% men, includes three trustees with Asian or black African backgrounds, two trustees with refugee backgrounds and trustees of mixed European and other backgrounds. The age profile is mixed. There is stakeholder representation on the Board and the board is supporting the Service User Forum to develop stronger engagement of beneficiaries in governance and appointed a former service-user representative to the board as a trustee in November 2020. The ongoing governance review will include a review of performance in relation to the diversity, inclusion and equality principles set out in the Governance Code. Trustees are also involved in the organisational anti-racist programme of learning and have begun considering their leadership and governance obligations in relation to these matters in facilitated sessions with an expert consultant.

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Related parties and related party transactions

Remuneration policy for key management personnel.

Trustees are responsible for setting remuneration levels for the charity’s senior staff; the Chief Executive, Head of Operations and Business Development, Head of Fundraising and Communications and Head of Finance and Resources.

In setting their remuneration, the trustees consider the skills, experiences and competencies required for the post; salary levels for comparable roles elsewhere in the sector; the charity’s ability to pay and its track record in attracting and retaining committed and motivated employees. Salary levels are reviewed periodically by the trustees using independent advice.

Grant making policy

Praxis does not give grants directly as a method of furthering its charitable objectives. The charity applies for and distributes welfare payments according to need and the criteria of the donors. We are particularly grateful to London Catalyst Samaritan Grant and Wendy Quill. We also provide hardship payments to destitute residents in our housing projects. In 2020/21 Praxis distributed £36,575 in welfare payments.

PUBLIC BENEFIT

The charitable purposes, objectives and activities, which Praxis undertakes for the public benefit, and achievement in delivering these are set out in the relevant sections of this report. The Trustees ensure that the services delivered by Praxis are not unreasonably restricted and are relevant to the needs of our beneficiaries, thereby enabling them to settle effectively in the UK and contribute positively to society. The Trustees have complied with their duty to have due regard to public benefit guidance published by the Charity Commission in determining the activities undertaken by the charity.

Fundraising

A significant proportion of Praxis's funds come from charitable trusts and foundations. In recent years we have received a growing number of donations from individuals and are working to increase our individual donor base. We are registered with the Fundraising Regulator and abide by their Fundraising Promise and the Code of Fundraising Practice. We comply with the General Data Protection Regulation which became law in 2018. We do not contact people unknown to us or without their permission. We do not use any commercial participators or professional fundraisers. We do not use any intrusive or persistent approaches. We have not received any complaints about our fundraising.

RISK & CORPORATE GOVERNANCE MATTERS

Praxis trustee board normally meets six times a year, including a strategic review day and AGM. We have regular meetings of the Finance and Resources Committee and monitor the financial position, including cash flow, report on risk and report on fundraising at every meeting. During the course of the pandemic all trustee meetings have been held over Zoom, including strategic discussions following on from the away-day held in 2020. We held frequent meetings, reporting on health and safety and how we were managing the risks of Covid-19.

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TRUSTEES’ ANNUAL REPORT For the year ended 31 March 2021

Trustees reviewed their own performance and carried out a trustee skills audit, leading to the appointment of a new trustee with lived experience of the issues facing Praxis service users.

Trustees reviewed the overall funding environment and considered potential short-, medium- and long-term impacts on the Charity. This included risks from new ways of working, and staff welfare issues. We sought external expertise to review our detailed building plans to enable safe, socially distanced on-site working for the skeleton staffing used to keep operations going through the first lock-down. We then developed further plans to enable more staff and limited face-face client contact as required to progress legal cases. We invested in additional cleaning and building works to promote a Covid-secure environment, as well as investing in new technologies and reviewing data protection given the predominance of offsite working. We were pleased that Praxis staff were able to access the vaccine programme at an early stage being designated as social care workers providing essential services. We continue to monitor and review the situation, responding to changing health advice and the needs of staff and service users. We have created a part-time post of people manager to strengthen HR functions and minimise risk.

In November 2021 our long-standing chair Barbara Roche will retire from the board of trustees. We have begun an open search process for a new chair to lead the trustees and support the delivery of the ambitious new plan.

We continue to face building related risks, particularly in relation to potential repair costs arising from working in an old building where we have a two thirds liability for repairs. We are in discussions with our landlord the United Reformed Church, about future plans for the building. Our current lease ends in 2025 and we are assessing our future building needs given changing working patterns and exploring options to find a new home for Praxis. Trustees have invested in a premises reserve to help us with the costs of a future move, and we have established a premises committee. The Robert Kemble Trust Limited continues to hold the lease on the Pott Street premises as Trustee for Praxis.

FINANCIAL REVIEW

The total income of the Charity for the year was £2,378,165 (2020: £2,007,735) and total expenditure amounted to £2,203,126 (2020: £1,834,495). Overall, the charity delivered a surplus of £175,039 across the 2020-21 financial year. Despite the unprecedented challenges posed in year by Covid-19, the charity was able to build on prior years’ successes and has ended the financial year in a strong position to further grow and develop its financial sustainability as we start to come out of the global pandemic. As at 31 March 2021, the charity held £626,162 in general reserves, with an additional £190,131 unrestricted reserves designated for specific purposes.

We are very grateful for all the support we receive, both financial and non-financial. We would like to thank the following supporters in particular as well as those who wish to remain anonymous:

BBC Children in Need, Ben & Jerry's Tides Foundation, Esmee Fairbairn Foundation, French Huguenot Church of London Charitable Trust, Justice Together Initiative, Lloyd's of London, London Catalyst, London Legal Support Trust, Milton Dameral Trust, Oak Foundation, Paul Hamlyn Foundation, Respond and Adapt, Southwark Cathedral, The AB Charitable Trust, The Arpad & Alena Rosner Foundation, The Aurum Charitable Trust, The Henry Smith Charity, The National Lottery Community Fund, The Pilgrim Trust, The Souter Charitable Trust, Trust for London, Wendy Quill; Migration Foundation, Great London Authority, London Councils, St Mungo’s, St Martin in the Field Front Line Network, LB Tower Hamlets, LB of Newham and Homeless Link.

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Reserves Policy

The Policy is to maintain sufficient reserves to enable operating activities to continue over a reasonable period should a shortfall in income occur and to take account of potential risks and contingencies that may arise. These included the following elements:

Trustees have undertaken a thorough review of the level of reserves required to meet the requirements outlined above, paying particular attention to the projected medium- and long-term impacts of the COVID-19 pandemic, as well as the realised growth in Praxis’s activity, and the organisation’s plans as laid out in the Strategic Plan.

Given the uncertainty over the long-term changes in the funding environment, the charity’s ambitious plans and the significant investment required to deal with the aftermath of COVID-19 and a move to new premises, the Trustees revised the calculation methodology for required reserves in 2019-20. Consequently, the level of reserves Praxis is required to hold is greater than in previous years. This methodology has been reviewed and has been considered to be appropriate as of 31 March 2021.

Designated reserves were not utilised in 2020-21, primarily due to exceptional, unplanned funding being received in year to help with the running costs of the charity during the Covid-19 pandemic and delays in implementation of other plans due to the pandemic. The business development reserves are however much needed in the 202122 financial year alongside the delivery of the Strategic Plan and plans for utilisation of these funds to support the growth and development of the charity have been approved by the Board. Designated funds relating to the premises will support the organisation in costs associated with the search for new premises and the end of the current lease agreement, which will end by 2025, and reflect the fact that current annual rent paid by the charity is significantly below market rate for the area. As at 31 March 2021, the total level of designated reserves was £190,131.

Excluding these designated funds, general reserves at 31 March 2021 were £626,162 which is in line with the level determined by the Trustees consideration of the reserves policy.

Cash balances at 31 March 2021 represent just over 4 months of expenditure at budgeted levels for the 2021-22. The reserves are considered to be adequate based on current levels of activity, and the charity continues to operate as a going concern, with robust forward planning in place for the medium and long term.

PLANS FOR FUTURE PERIODS

The social, economic and health environment is very uncertain and we anticipate that the needs of the people we support will become further entrenched and the number of people facing difficulties related to immigration status will continue to grow. Independent reports highlight the growth of inequality and the barriers to justice faced by thousands of people unable to access legal advice and therefore blocked from accessing the services that they need to live safely and in dignity. In April 2021 Praxis launched a new five-year strategy which will guide us through what promises to be a challenging external context, from ever more restrictive asylum and immigration

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policies to the unfolding impact of Brexit on the lives of many long-standing European residents in the UK, new refugee crises and the continuing impact of Covid-19. Under our new strategy, we will continue to deliver expert advice and holistic support to meet the complex needs of our service users, while investing in our ability to achieve wider impact through our training programme, campaigning, influencing, advocacy and strategic litigation.

We are building our communications and campaigning capacity, alongside our fundraising for sustainability and are committed to becoming a catalyst for systemic national change. We will continue to forge partnerships and alliances with others to deliver services and create wider change. We will do this in partnership with service-users ensuring that they have a strong voice and are at the centre of all that we do.

We will consult staff and service users about future operational delivery given that we are likely to retain a hybrid model of remote and office-based working into the future. This will maximise flexibility for staff and for the organisation, enabling us to use our premises more efficiently and cost-effectively. Our commitment is to maintain a physical hub to facilitate the building of community, solidarity and shared learning that comes from staff and service users working in physical proximity, as well as maintaining the benefits of remote working and remote access to services that Covid 19 has enabled us to develop. We will also explore the delivery of services from other premises to increase access points and reduce travel for service users.

TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS

The charity trustees are responsible for preparing a Trustees’ Annual Report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, of the charity for that period. In preparing the financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities.

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The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements.

Approved by the trustees on Tuesday 16 November 2021 and signed on their behalf by:

B. Roche

CHAIR OF TRUSTEES

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PRAXIS COMMUNITY PROJECTS

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PRAXIS COMMUNITY PROJECTS For the year ended 31 March 2021

Opinion

We have audited the financial statements of Praxis Community Projects for the year ended 31 March 2021 which comprise of the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

Page 16

PRAXIS COMMUNITY PROJECTS

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PRAXIS COMMUNITY PROJECTS For the year ended 31 March 2021

work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees Report (which incorporates the strategic report and the directors’ report).

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 14, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

Page 17

PRAXIS COMMUNITY PROJECTS

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PRAXIS COMMUNITY PROJECTS For the year ended 31 March 2021

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

Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to Charity Law and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such the Companies Act 2006 and the Charities Act 2011, and consider other factors such as relevant taxation.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to revenue recognition. Audit procedures performed by the engagement team included:

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

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Murtaza Jessa (Senior Statutory Auditor) 10 Queen Street Place
For and on behalf of Haysmacintyre LLP, Statutory Auditor London
EC4R 1AG

Date: 25 November 2021

Page 18

PRAXIS COMMUNITY PROJECTS

Financial Statements for the year ending 31 March 2021 STATEMENT OF FINANCIAL ACTIVITIES (Including Income and Expenditure Account)

Notes
INCOME FROM:
Donations & Legacies
1
Investments
Raising funds:
Income from lettings
2
Charitable activities:
Advice & Group Activities
3
Housing & Homelessness
3
Interpreting
3
TOTAL INCOME
EXPENDITURE ON:
Charitable expenditure:
Advice Services & Group Activities
4,7
Housing & Homelessness
5,7
Interpreting
6,7
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE)
Transfer between funds
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
Fund balances brought forward at 1 April 2019
14
FUND BALANCES CARRIED FORWARD 31 MARCH 2020		 Unrestricted
Funds
Restricted
Funds
Total Funds
Total Funds
2021
2021
2021
2020
£
£
£
£
380,725
-
380,725
243,512
3,380
-
3,380
805
-
-
-
2,151
11,875
964,051
975,926
701,602
200,927
525,477
726,404
760,636
291,730
-
291,730
299,029
888,637
1,489,528
2,378,165
2,007,735
419
1,072,506
1,072,925
737,622
247,142
630,105
877,247
821,763
252,954
-
252,954
275,110
500,515
1,702,611
2,203,126
1,834,495
388,122
(213,083)
175,039
173,240
(286,925)
(286,925)
-
-
101,197
73,842
175,039
173,240
715,096
121,061
836,157
662,917
816,293
194,903
1,011,196
836,157

All activities are from continuing operations. The notes on pages 22 to 36 form part of these financial statements.

Page 19

PRAXIS COMMUNITY PROJECTS Financial Statements for the year ending 31 March 2021 BALANCE SHEET AS AT 31 MARCH 2021

Notes
FIXED ASSETS
Tangible assets
9
CURRENT ASSETS
Debtors
10
Cash in hand and in bank
CREDITORS
Amounts falling due within one year
11
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS
Amounts falling due after one year
12
NET ASSETS
FUNDS
Restricted Funds
13/15
Unrestricted Funds
General Reserves
13/15
Designated
13/15
TOTAL FUNDS		 2021
2020
£
£
35,625
33,820
568,632
278,841
739,264
730,880
1,307,896
1,009,721
(300,030)
(166,790)
1,007,866
842,931
1,043,491
876,751
(32,295)
(40,594)
1,011,196
836,157
194,903
121,061
626,162
524,965
190,131
190,131
1,011,196
836,157

The financial statements have been prepared in accordance with the special provision relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

The financial statements were approved by the trustees and authorised for issue on Tuesday 16 November 2021 and signed on their behalf by:

……………………………........ Barbara Roche, Chair …………………………………… Raphael Perret, Treasurer

Page 20

PRAXIS COMMUNITY PROJECTS Financial Statements for the year ending 31 March 2021 STATEMENT OF CASH FLOWS

2021
2020
£
£
21,251
27,710
3,381
805
(16,247)
(27,457)
Cash flows from operating activities:
Net Cash provided by operating activities
Cash flows from investing activities:
Dividends & interest
Purchase of fixed assets
Net cash (used in)/investing activities
Cash flows from financing activities
Change in cash & cash equivalents in the reporting period
Cash & cash equivalents at the beginning of the reporting
period
Cash & cash equivalents at the end of the reporting period
Reconciliation of net income to net cash flow from operating
activities
Net income as per SOFA
Adjustments
Depreciation
Dividends and interest
(Increase)/Decrease in debtors
Increase/(Decrease) in creditors
Net Cash provided by operating activities
Analysis of cash & cash equivalents
Cash in hand
Notice deposits (less than 3 months)
Total cash & cash equivalents
(12,867)
(26,652)
-
-
8,384
1,058
730,880
729,822
739,264
730,880
175,039
173,240
14,442
9,176
(3,380)
(805)
(289,791)
(86,528)
124,941
(67,373)
21,251
27,710
646,493
637,683
92,771
93,197
739,264
730,880

Page 21

PRAXIS COMMUNITY PROJECTS Financial Statements for the year ending 31 March 2021 ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of financial statements are as follows:

a) Basis of Accounting

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the UK and Republic of Ireland (FRS 102)(effective 1 January 2019) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Praxis Community Projects meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes(s).

b) Preparation of the accounts on a going concern basis

Having considered future budgets and cash flows, the trustees confirm that they have no material uncertainties about the entity’s ability to continue as a going concern for the foreseeable future.

c) Fixed assets

Expenditure on fixed assets is capitalised where the cost (or the value if donated) is in excess of £5,000; otherwise it is written off through the Statement of Financial Activities. Costs of replacements of major equipment may be charged to designated funds set aside for that purpose by appropriations from Revenue.

Tangible fixed assets are depreciated at rates calculated to write off the cost, less estimated residual value of each asset evenly over its expected life, as follows:

d) Funds

The different funds are defined as follows:

It is the policy of the trustees to retain unrestricted funds, amounts in which in their judgement, can help to mitigate the short term effect of income volatility and retain funds to generate sufficient income to meet current and future operational activities of the charity.

Page 22

PRAXIS COMMUNITY PROJECTS Financial Statements for the year ending 31 March 2021 ACCOUNTING POLICIES

e) Income recognition

This comprises fees receivable from the various activities and investment income. All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income can be measured reliably.

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

Legacies are recognised on a case by case basis following the grant of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy with the title of the asset having been transferred to the charity.

Income from government and other grants, whether ‘capital’ or ‘revenue’ grants. Is recognised when the charity has entitlement to the funds, any performance conditions attached to the grant have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Investment income is credited to income when it is receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

f) Expenditure

Liabilities are recognised as expenditure as soon as there is legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of obligation can be measured reliably.

Expenditure is recognised on an accruals basis as a liability is incurred, inclusive of VAT, which cannot be recovered.

Charitable activities comprise mainly of the provision of accommodation including welfare and catering, premises and administrative costs.

Support costs have been allocated to charitable activities. Governance activities comprise organisational administration and compliance with constitutional and statutory requirements. Costs include direct costs of external audit, legal fees and other professional advice

g) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

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PRAXIS COMMUNITY PROJECTS Financial Statements for the year ending 31 March 2021 ACCOUNTING POLICIES

h) Cash at bank and in hand

Cash at bank and in hand includes bank accounts, cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

i) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

j) Pension Scheme

The charity makes contributions into a defined contribution scheme on behalf of all employees who have enrolled in the scheme. The assets of the scheme are held separately from those of the charity in independently administered funds. The amount charged to the statement of financial activities in respect of pension costs is the total contribution payable for the year.

k) Estimation uncertainty

In the view of the trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year.

l) Financial instruments

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

Page 24

PRAXIS COMMUNITY PROJECTS Financial Statements for the year ending 31 March 2021 NOTES TO THE ACCOUNTS

Total Funds
Total Funds
2021
2020
£
£
1.
DONATIONS & LEGACIES
Donations from individuals, trusts and
other similar institutions
2.
INCOME FROM LETTINGS
Rent receivable under operating Leases
3.
GRANTS & CONTRACT INCOME
Grants & Contract income
4.
ADVICE & GROUP ACTIVITIES
Direct costs
Staff costs (note 8)
Other costs
Support costs (Note 7)
5.
HOUSING & HOMELESSNESS
Direct costs
Staff costs (note 8)
Other costs
Support costs (Note 7)		 380,725
243,512
-
2,151
1,994,060
1,761,267
730,802
485,622
141,705
134,330
872,507
619,952
200,418
117,670
1,072,925
737,622
566,023
541,447
155,996
149,120
722,019
690,567
155,228
131,196
877,247
821,763

Page 25

PRAXIS COMMUNITY PROJECTS Financial Statements for the year ending 31 March 2021 NOTES TO THE ACCOUNTS

£
£
Advice
Housing
Interpreting
Total 2021
Total 2020
£
£
£
£
£
64,166
49,698
17,155
131,019
76,133
43,543
33,725
11,641
88,910
65,325
7,073
5,478
1,891
14,442
9,175
6,230
4,825
1,665
12,720
10,800
426
330
114
870
3,728
78,980
61,172
21,115
161,267
137,066
Total Funds
Total Funds
2021
2020
195,381
220,220
3,991
1,529
199,372
221,749
53,582
53,361
252,954
275,110
7.
SUPPORT COSTS 2021
Staff Costs (note 8)
Premises Costs
Depreciation - Owned Assets
Audit Fee
Governance Costs
Other Costs
SUPPORT COSTS 2020
Staff Costs (note 9)
Premises Costs
Depreciation - Owned Assets
Audit Fee
Governance Costs
Other Costs
6.
INTERPRETING
Direct costs
Staff costs (note 8)
Other costs
Support costs (Note 7)
200,418
155,228
53,382
409,227
302,227
Advice
Housing
Interpreting
Total 2020
£
£
£
£
29,642
33,049
13,442
76,133
25,434
28,357
11,534
65,325
3,572
3,983
1,620
9,175
4,205
4,688
1,907
10,800
1,451
1,619
658
3,728
53,366
59,500
24,200
137,066
117,670
131,196
53,361
302,227

Support costs consist of premises and office costs and are distributed by staff ratio.

Page 26

PRAXIS COMMUNITY PROJECTS Financial Statements for the year ending 31 March 2021 NOTES TO THE ACCOUNTS

7. SUPPORT COSTS (continued)

Net income resources for the year are stated after charging:

Total 2021
Total 2020
£
£
Fees payable to the charity’s auditor for
the audit of the charity’s annual accounts
Depreciation		 12,720
10,800
14,442
7,850
27,162
18,650

8. STAFF COSTS

The average monthly number of employees employed during the year was:

Charitable Activities
Support & Governance
Staff costs for the above persons:
Wages and Salaries
Social Security Costs
Pension Costs
Temporary Staff Costs
Staff costs by service area:
Advice & Group Activities
Housing & Homelessness
Interpreting
Support
Of which attributable to key management
personnel (excluding consultancy fees)		 2021
2020
36
32
10
8
46
40
£
£
1,388,888
1,101,455
131,777
101,939
41,916
35,771
60,644
84,257
1,623,225
1,323,422
730,802
485,622
566,023
541,447
195,381
220,220
131,019
76,133
1,623,225
1,323,422

219,683
145,694

One Employee received emoluments between £70,000 and £80,000 in the current year (2019-20, none). No employees received emoluments between £60,000 and £70,000 in the current year (2019-20, one).

Page 27

PRAXIS COMMUNITY PROJECTS Financial Statements for the year ending 31 March 2021 NOTES TO THE ACCOUNTS

The Trustees neither received nor waived any emoluments for their services to the Charity and were not reimbursed for any expenses incurred on behalf of the Charity during the current or previous year.

The Charity holds an insurance policy that provides professional insurance cover for the Trustees.

9.
TANGIBLE FIXED ASSETS – FURNITURE,
FIXTURES & EQUIPMENT		 2021
2020
£
£
Cost:
Balance brought forward as at 1 April
Additions
Value at 31 March
Depreciation:
Balance brought forward as at 1 April
Provided in year
Depreciation at 31 March
Net Book Value at 31 March
Net Book Value at 1 April
10.
DEBTORS		 114,639
87,182
16,247
27,457
130,886
114,639
80,819
71,643
14,442
9,176
95,261
80,819
35,625
33,820
33,820
15,539
2021
2020
£
£
Trade Debtors
Loans to staff
11.
CREDITORS DUE WITHIN ONE YEAR		 568,632
278,341
-
500
568,632
278,841
2021
2020
£
£
Amounts due within one year:
Trade Creditors
Other taxes & social security
Defined Benefit Pension Plan deficit
Accruals, including provisions (see below)
Deferred Income		 57,377
54,410
32,479
48,056
10,515
10,619
66,326
53,705
133,333
-
300,030
166,790

Page 28

PRAXIS COMMUNITY PROJECTS Financial Statements for the year ending 31 March 2021 NOTES TO THE ACCOUNTS

11.
CREDITORS DUE WITHIN ONE YEAR
(continued)
Provision movements are as follows:
Provisions at 1 April
Provisions made in the year
Release in the year
Provision at 31 March
12.
CREDITORS DUE AFTER ONE YEAR
Defined Benefit Pension plan deficit
13
FUNDS 2021
Restricted Income Funds
Advice Services & Group Activities
Housing & Homelessness
Interpreting
Central Costs
Total Restricted Funds		 2021
2020
£
£
21,565
31,200
-
10,000
-
19,635
21,565
21,565
32,295
40,594
At 1 April
2020
Income
Expenditure
Transfers
At 31 March
2021
£
£
£
£
£
113,818
964,051
(1,072,506)
145,963
151,327
7,243
525,477
(630,105)
140,962
43,577
-
-
-
-
-
-
-
-
-
-
121,061
1,489,528
(1,702,611)
286,925
194,903

Page 29

PRAXIS COMMUNITY PROJECTS Financial Statements for the year ending 31 March 2021 NOTES TO THE ACCOUNTS

13
FUNDS 2021 (continued)
Restricted Income Funds
London Borough of Tower Hamlets
Homeless Link
Migration Foundation
Oak Foundation
East End CAB (LBTH-MSG)
St Mungos
The Big Lottery
Paul Hamlyn Foundation
The Act for Change
Henry Smith Foundation
London Borough of Hackney
BBC Children in Need
St Martins in the Fields
Greater London Authority
London Borough of Newham
Crisis
Shelter
Trust for London
Ben & Jerrys (TIDES) Foundation
The Pilgrim Trust
Globe Trust
Refugee Action - Respond & Adapt
Other Trusts
Other Income
Total Restricted Funds
Unrestricted Income Funds
Designated Funds
General Reserves
Total Unrestricted Funds
TOTAL CHARITY FUNDS		 At 1 April
2020
Income
Expenditure
Transfers
At 31 March
2021
£
£
£
£
£
-
-
(4,748)
4,748
-
42,200
30,804
(73,004)
-
-
-
10,000
(10,000)
-
-
-
39,942
(92,082)
52,140
-
-
37,810
(59,663)
21,853
-
-
232,962
(282,250)
49,288
-
-
259,622
(237,584)
-2,992
19,047
63,833
129,000
(91,603)
-
101,230
-
62,100
(41,789)
-
20,311
-
59,200
(53,963)
-
5,237
4,753
55,064
(72,591)
12,775
-
-
17,872
(19,787)
1,915
-
-
36,815
(69,201)
32,386
-
-
33,040
(33,040)
-
-
7,243
191,728
(238,505)
39,534
-
-
47,036
(78,449)
31,412
-
-
104,077
(124,768)
20,691
-
-
51,000
(32,586)
-
18,414
-
19,002
-
-
19,002
-
24,129
(20,164)
-
3,966
-
8,874
(28,621)
19,747
-
-
30,000
(33,429)
3,429
-
-
1,500
(107)
-
1,393
3,032
7,950
(4,677)
-
6,305
121,061
1,489,528
(1,702,611)
286,925
194,903
190,131
-
-
-
190,131
524,965
888,637
(500,515)
(286,925)
626,162
715,096
888,637
(500,515)
(286,925)
816,293
836,157
2,378,165
(2,203,126)
-
1,011,196

Page 30

PRAXIS COMMUNITY PROJECTS Financial Statements for the year ending 31 March 2021 NOTES TO THE ACCOUNTS

14
FUNDS 2020
Restricted Income Funds
London Borough of Tower Hamlets
Homeless Link
Migration Foundation
Oak Foundation
East End CAB (LBTH-MSG)
St Mungos
British Red Cross
The Big Lottery
Paul Hamlyn Foundation
ISD Innovation Fund
Tudor Trust
Henry Smith Foundation
London Borough of Hackney
BBC Children in Need
The Attlee Foundation (LBTH-MSG)
ARHAG (DCLG)
St Martins in the Fields
Greater London Authority
London Borough of Newham
Crisis
Other Trusts
Other Income
Total Restricted Funds
Unrestricted Income Funds
Designated Funds
General Reserves
Total Unrestricted Funds
TOTAL CHARITY FUNDS		 At 1 April
2019
Income
Expenditure
Transfers
At 31 March
2020
£
£
£
£
£
-
30,500
(37,187)
6,687
-
-
49,988
(7,788)
-
42,200
-
20,000
(20,000)
-
-
62,657
(89,252)
26,595
-
-
32,405
(36,950)
4,545
-
-
202,595
(217,299)
14,704
-
-
18,500
(20,504)
2,004
-
5,000
96,169
(113,180)
12,011
-
17,333
98,500
(63,793)
11,793
63,833
-
6,986
(6,986)
-
-
25,000
-
(25,000)
-
-
-
42,000
(54,339)
12,339
-
-
53,123
(58,896)
10,526
4,753
-
17,872
(25,574)
7,702
-
-
3,093
(3,093)
-
-
-
97,541
(113,285)
15,744
-
-
51,968
(75,972)
24,004
-
-
39,636
(41,248)
1,612
-
-
129,129
(132,356)
10,470
7,243
-
116,321
(133,537)
17,216
-
-
25,908
(25,908)
-
4,188
33,300
(34,182)
(274)
3,032
51,521
1,228,191
(1,336,329)
177,678
121,061
186,000
-
4,131
190,131
425,396
779,544
(498,166)
(181,809)
524,965
611,396
779,544
(498,166)
(177,678)
715,096
662,917
2,007,735
(1,834,495)
-
836,157

Page 31

PRAXIS COMMUNITY PROJECTS Financial Statements for the year ending 31 March 2021 NOTES TO THE ACCOUNTS

As explained in the Accounting Policies, the Restricted Funds represent grants and donations given to the charity for specific projects on which it is accountable to the donors. During the course of the year, all projects have been reviewed to determine the appropriate status with regard to their treatment as restricted or unrestricted reserves and adjustments made as necessary. Central shared costs are recovered from each project on the basis of staff time, and where this has resulted in a deficit in a restricted project funds have been transferred from general reserves. Remaining balances carried forward as restricted reserves represent ongoing commitments to complete works outstanding as at 31 March 2021 or where any remaining funds are restricted to the purposes for which they were received. Transfers to restricted funds represent that part of unrestricted funds spent on the various projects.

As explained in the Reserves Policy, the Trustees have designated £190,217 of unrestricted funds to invest in business development, including an amount of £100,000 towards the potential move to new premises.

15
ANALYSIS OF NET ASSETS BETWEEN FUNDS
31 March 2021
Tangible Fixed Assets
Net Current Assets
Long-term Creditors
Total Net Assets
31 March 2020
Tangible Fixed Assets
Net Current Assets
Long-term Creditors
Total Net Assets		 Restricted Funds
Designated
Funds
General
Reserves
Total 2021
£
£
£
£
11,810
-
23,816
35,626
183,093
190,131
634,641
1,007,866
-
-
(32,295)
(32,295)
194,903
190,131
626,162
1,011,196
Restricted Funds
Designated
Funds
General
Reserves
Total 2020
£
£
£
£
6,312
-
27,508
33,820
114,749
190,131
538,051
842,931
-
-
(40,594)
(40,594)
121,061
190,131
524,965
836,157

16 PENSION COMMITMENTS GP4 Pension Scheme (operated by the Pensions Trust)

The company participates in the scheme, a multi-employer scheme which provides benefits to some 950 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

Page 32

PRAXIS COMMUNITY PROJECTS Financial Statements for the year ending 31 March 2021 NOTES TO THE ACCOUNTS

16 PENSION COMMITMENTS (continued)

The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out at 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

£11,243,000 per annum (payable monthly and increasing by 3% each From 1 April 2019 to 31 January 2025: on 1st April)

Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies.

Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2014. This valuation showed assets of £793.4m, liabilities of £969.9m and a deficit of £176.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

£12,945,440 per annum (payable monthly and increasing by 3% each From 1 April 2016 to 30 September 2025: on 1st April) £54,560 per annum (payable monthly and increasing by 3% each From 1 April 2016 to 30 September 2028: on 1st April)

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.

Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

PRESENT VALUES OF PROVISION

31 March 2021 31 March 2020 31 March 2019
(£s) (£s) (£s)
Present value of provision 43,223 51,213 62,126

Page 33

PRAXIS COMMUNITY PROJECTS Financial Statements for the year ending 31 March 2021 NOTES TO THE ACCOUNTS

16 PENSION COMMITMENTS (continued)

RECONCILIATION OF OPENING AND CLOSING PROVISIONS

Period Ending
31 March 2021
(£s)
Period Ending
31 March 2020
(£s)
Provision at start of period 51,213
62,126
Unwinding of the discount factor (interest expense) 1,151
786
Deficit contribution paid (10,619)
(10,310)
Remeasurements - impact of any change in assumptions 1,478
(1,389)
Remeasurements - amendments to the contribution schedule -
-
Provision at end of period 43,223
51,213

INCOME AND EXPENDITURE IMPACT

INCOME AND EXPENDITURE IMPACT
Period Ending Period Ending
31 March 2021 31 March 2020
(£s) (£s)
Interest expense 1,151 786
Remeasurements – impact of any change in assumptions 1,478 (1,389)
Remeasurements – amendments to the contribution schedule - -
Contributions paid in respect of future service* * *
Costs recognised in income and expenditure account * *

*includes defined contribution schemes and future service contributions (i.e. excluding any deficit reduction payments) to defined benefit schemes which are treated as defined contribution schemes. To be completed by the company.

ASSUMPTIONS

ASSUMPTIONS
31 March 2021 31 March 2020 31 March 2019
% per annum % per annum % per annum
Rate of discount 0.66 2.53 1.39

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

Page 34

PRAXIS COMMUNITY PROJECTS Financial Statements for the year ending 31 March 2021 NOTES TO THE ACCOUNTS

17
FINANCIAL INSTRUMENTS
Financial Assets measured by amortised
cost
Financial Liabilities measured by
amortised cost		 2021
2020
£
£
568,632
278,841
57,376
54,410

Financial Assets include trade debtors and staff loans. Financial liabilities include trade and sundry creditors

18 RELATED PARTY TRANSACTIONS

There were no related party transactions to be reported in the financial year or prior year.

Page 35

PRAXIS COMMUNITY PROJECTS Financial Statements for the year ending 31 March 2021 NOTES TO THE ACCOUNTS

19 STATEMENT OF FINANCIAL ACTIVITY 2020
Unrestricted Restricted
Funds Funds Total Funds
2020 2020 2020
INCOME FROM: £ £ £
Donations & Legacies 243,512 - 243,512
Investments 805 - 805
Raising funds:
Income from lettings 2,151 - 2,151
Charitable activities:
Advice & Group Activities 1,672 699,930 701,602
Housing & Homelessness 232,375 528,261 760,636
Interpreting 299,029 299,029
TOTAL INCOME 779,544 1,228,191 2,007,735
EXPENDITURE ON:
Charitable expenditure:
Advice Services & Group Activities 20,451 717,171 737,622
Housing & Homelessness 202,605 619,158 821,763
Interpreting 275,110 - 275,110
TOTAL EXPENDITURE: 498,166 1,336,329 1,834,495
NET INCOME/(EXPENDITURE): 281,378 (108,138 173,240
Transfer between funds (177,678) 177,678 -
NET MOVEMENT IN FUNDS 103,700 69,540 173,240
RECONCILIATION OF FUNDS:
FUND BALANCES BROUGHT FORWARD
AT 1 APRIL 2019 611,396 51,521 662,917
FUND BALANCES BROUGHT FORWARD
AT 31 MARCH 2020 715,096 121,061 836,157

Page 36