OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-03-31-accounts

Title Page

Trustees’ Report and Accounts for year ended 31 March 2021 (Insert image and Passage logo)

1

Contents

About The Passage…3

Chief Executive and Chair’s Statement…4

Trustees, Senior Management and Advisors…5

Kris’s story…7

How we helped in 2020-21…8

Our response to the Covid-19 pandemic...9

Review of Volunteering…10

Paul’s story…11

Review of Strategic Objectives 2020-21...12

Beth’s story…16

Strategic Objectives 2021-22…17

Thank you…18

Financial Review…20

Independent Auditor’s report…26

Consolidated Statement of Financial Activities…30

Balance Sheet…31

Consolidated Statement of Cash Flows…32

Notes to the Financial Statements…33

2

The trustees present their report and the audited financial statements for the year ended 31 March 2021.

Reference and administrative information set out on pages 5 and 6 form part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association, the requirements of a directors’ report as required under company law, and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

About The Passage

For the past 40 years, The Passage has been based in the heart of Westminster, providing practical support and a wide range of services to help transform the lives of people who are street homeless. We are guided by our Vincentian values and offer our clients the resources and solutions to end their homelessness for good, including routes to employment, benefits and accommodation. We run a modern Resource Centre in Victoria, three residential and resettlement projects, outreach and health services, homelessness prevention schemes and a pioneering modern slavery referral programme.

Our Vision

Working with our clients, our partners and society as a whole we will play our part in ending street homelessness.

Our Mission

To provide resources which encourage, inspire and challenge people who are homeless to transform their lives.

Our Ethos

The Passage takes its values and ethos from the teachings and example of St. Vincent De Paul, a Christian and social reformer, who co-founded the Daughters of Charity in 1663. Vincent believed in action rather than words and in hands-on service to vulnerable people.

As a Vincentian organisation, The Passage strives to be inclusive; encompassing a diverse and rich culture from within our members, clients, volunteers and staff. Actively working with others across all aspects of society, seeking to have influence and be an advocate for people who are homeless, The Passage seeks to be a place of hope, aspiration, change and innovation, underpinned by values that reach back over four hundred years.

Our Values

3

Chief Executive and Chair’s Statement

This report details our progress against the strategic goals we set ourselves for the year ended March 2021. It also reviews the achievements and challenges we have faced during a time of crisis caused by the global Covid-19 pandemic.

In this, our 40[th] anniversary year, The Passage was needed like never before. Whilst the pandemic changed virtually every aspect of how we fulfil our mission, we did not allow it to define us or what we stand for. Our values have always fundamentally guided our approach and this year was no different.

When the Covid-19 pandemic hit, our immediate priority was clear; to keep our clients, staff and volunteers safe. We ensured that our frontline teams had plentiful supplies of protective equipment and we very quickly developed new protocols regarding additional cleaning and other safety measures. We were determined that all our services would remain open, even if that meant making some adaptations to ensure that a safe service could be provided.

We are extremely proud that The Passage was asked to play a pivotal role alongside other charities, local and central government in the Everyone In initiative. This ground-breaking programme created a safe route off the streets for many thousands of people across the UK. Here in London, we also provided practical support for clients in temporary hotel accommodation, helping them adjust to the difficult situation and facilitating the transition into permanent housing. At the height of the crisis, The Passage established and funded an emergency food hub, which has prepared and delivered an astonishing 90,000 meals.

Each and every one of our staff and volunteers have been absolute heroes and we would like to take this opportunity to recognise those, especially on the frontline, who put themselves at risk time and time again to ensure that our clients received the support they desperately needed. They share a deep passion to eradicate street homelessness and we pay tribute for the tremendous and tireless work they have carried out over the last 12 months and the incredible results they have achieved.

We also have the deepest respect for our clients – their courage, resilience and determination to succeed is truly remarkable.

Given the challenges of continuing to operate safely during a global pandemic, we couldn’t be prouder of our outcomes - 80% of residents at Passage House achieving a positive move-on, 61 people gaining secure employment and 375 clients helped off the streets into sustainable accommodation – to highlight a few.

The challenge of keeping everyone safe in a pandemic inevitably resulted in increased costs and we are very fortunate to have a loyal group of supporters. We take our responsibility to be a good steward of income very seriously, with 93 pence of every £1 raised going directly to our frontline services.

We are also very grateful for the support of our partners in both local and central government for their financial backing of the services we provide.

The pandemic has led to much pain for so many people. The Passage too lost members of our volunteer family during this period and so we ask that you join us in remembering them and giving thanks.

This extraordinary year has shown what can be achieved if everyone pulls together. Quite simply, there is no place for street homelessness in 21[st] century Britain; we all have a role to play in ending street homelessness for good; we hope you will join us in doing so.

Mick Clarke, CEO

Mike Kelly, Chair

4

Trustees, Senior Management and Advisors

Founding Patron Cardinal Basil Hume

Royal Patron

HRH The Duke of Cambridge

Patron

Cardinal Vincent Nichols

Chair of Trustees Michael Kelly FICRS, FRSA

Board of Trustees

Mgr Vladimir Felzmann Sr Eileen Glancy DC Kevin Hyland Christopher Morris (Chair of Risk and Audit Committee) Roisin Murphy (Deputy Chair, Chair of Client Services Committee) Antonio Orlando Dr lram Sattar Victoria Bevilacqua-Stephenson Christopher Williams (Treasurer, Chair of Finance Committee)

Company Secretary Jane Sandeman

Senior Management Team

Michael Clarke – Chief Executive Emma Noble – Director of Income Generation and Communications Jane Sandeman - Chief Operating Officer Jenny Travassos – Director of Services and New Developments

Principal Bankers

HSBC Belgravia Branch The Peak 333 Vauxhall Bridge Road London SWIV 1EJ

Solicitors

Pothecary Witham Weld 70 St George's Square London SW1V 3RD

Auditor

Sayer Vincent LLP Invicta House 108-114 Golden Lane London EC1Y 0TL

5

Address of charity and registered office

The Passage St Vincent's Centre, Carlisle Place London SWIP 1NL Telephone 020 7592 1850 Fax 020 7592 1870 Email info@passage.org.uk Website www.passage.org.uk Charity registration number 1079764 Company number 03885593

6

Kris’s story

Kris was spotted on the streets by The Passage Outreach team a few weeks before the second lockdown. Following a family breakdown involving his long-term, alcoholic parents, Kris had come to London from Lithuania on the promise of employment and a new future. The job never materialized and 20-yearold Kris ended up homeless, alone and at risk on the streets, with no friends or relatives to turn to.

Our Outreach Worker made an initial assessment and referred Kris to our Resource Centre where he was able to shower, receive clean clothes and food, and access additional services to help resolve his homelessness.

Kris’s best chance at securing a sustainable route off the street was through employment so he was introduced to our Employment, Training and Education (ETE) team. The team worked quickly to apply for Kris’s National Insurance number and provided him with a UK mobile phone. Kris and the team talked through his skills and experience to determine the types of roles he would be most suited to. Although Kris was putting on a brave face, the team noticed that he was displaying signs of anxiety and appeared to have recent bruising to the face. They continued to work with him while closely monitoring his mental and physical health.

After a number of appointments, and with encouragement, Kris’s confidence grew; he wanted his life back on track. The team helped him to write his CV and provided him with interview training. Meanwhile The Passage Immigration experts helped him to apply for pre-settled status.

In November, the UK went into a second lockdown. Knowing Kris would be vulnerable on the streets, the team supported Kris into emergency hotel accommodation. They visited daily, bringing food parcels, toiletries, clothing and checking on his welfare.

To keep Kris motivated and on the path to employment, he was loaned a tablet with internet access and spoke with his Key Worker every day. Eventually he was offered two interviews, but when it came to the day, he turned them down, claiming that he would prefer to be on the streets again. His Key Worker knew that there was more to the story, and immediately arranged a chat .

Kris revealed he had been suffering from depression and anxiety for a long time. There had been incidents of abuse over a number of years and the isolation of the second lockdown had taken a huge toll on his mental health. Kris was referred to the Passage Mental Health team who visited Kris in his hotel room and helped him to link with a GP for ongoing support. Our Mental Health and ETE teams continued to provide one-to-one support so that by December, Kris was in a better place and ready to attend another job interview. The ETE team kitted him out with suitable work clothes, shoes and travel expenses.

Kris was successful and offered a role in stock control. This was a huge step forward for him personally and major progress in his journey off the street.

The Passage continue to support Kris who is settling into his new job well. He is being supported by our Private Rented Sector team who are helping him to find suitable long-term housing and ensure he is equipped with a move-on pack including all the essentials to make his new place feel like home.

The Passage is very proud of how far Kris has come in just a matter of months. He tells us that he is hopeful for the future.

7

How we helped in 2020/21

8

Our response to the Covid-19 pandemic

Like everyone in the country, and indeed the world, when Covid-19 emerged it was a time of immense concern.

At The Passage we believed it was our duty to stay true to our values and ensure that we were there for those who were extremely vulnerable and needed us the most.

Working at a strategic level

The Passage was a key member of the Pan-London Strategic Emergency Response group, leading the conception and implementation of the ‘Everyone In’ initiative during the first months of the pandemic. Bringing together local and central government with the homelessness sector, Everyone In resulted in many hundreds of people being moved off the streets into safe temporary accommodation, often hotels, where they could self-isolate. We also developed key messaging for how day centres and other voluntary groups across the country could operate safely, as well as providing staff and volunteer support for the hotel network across London.

Working at an operational level

The Passage worked collaboratively with other agencies and Westminster City Council to help hundreds of people off the streets of Westminster and into hotel accommodation. We also ensured that the clients living in our residential projects were safe and secure. As it was not safe to have large numbers of people inside, our day service were adapted and our teams went out to the streets to directly help people into accommodation. We also provided outreach to those in emergency or their own accommodation who were feeling isolated and in need of support and helped many people to move on from their hotel into long-term accommodation.

At the height of the crisis, The Passage set up an emergency ‘food hub’ from our kitchen in Victoria, preparing and delivering 350 hot meals daily for people self-isolating in temporary accommodation and unable to access any other food provision. The hub was resourced by volunteers working seven days a week and entirely funded from voluntary donations raised by The Passage. To date, we have supplied over 80,000 meals.

All of this was achieved thanks to our amazing staff, many of whom continued to provide frontline support despite their own personal risk. Ordinary people doing absolutely extraordinary things.

Everyone played a key role; not least our cleaning staff - who thanks to their efforts, combined with the diligence of our residential teams - ensured that not one person in any of our residential projects contracted Covid-19. The Passage was also extremely fortunate to benefit from large donations of PPE – from companies, charitable trusts and individuals - which helped our staff to operate as safely as possible.

9

Moving forward

Building on our experience of Everyone In , The Passage has developed No Night Out , a new rapidresponse service which prevents people from becoming street homeless. Even one night on the street can have a devastating effect and make recovery and resettlement much more difficult; No Night Out provides safe, temporary accommodation and tailored support matched to a client’s specific needs. Currently in a pilot phase, No Night Out focuses on people who are rough sleeping in Westminster, particularly those who may be recently homeless due to job loss, offering long-term solutions helping to help people quickly get back on their feet.

The whole world remains in uncertain times. We hope that with the development of vaccines we can learn to live with Covid-19. We all know of people who were ill or in some cases sadly lost their lives to this terrible virus; The Passage was not an exception, and we remember and pay tribute to those from The Passage family who lost their lives.

Despite the challenges, tragedy and sadness, something amazing also happened in those months. We saw that when there is the political will and resourcing and when all of society pulls together under a common cause, we can end street homelessness.

We can’t go back. We must build on what we achieved and The Passage will do all it can to ensure that everyone in society - government, corporates, church, community groups and individuals - are able to play their role in ending street homelessness. In 21[st] century Britain, street homelessness should not exist; by working together as we did in those dark few months, we have shown that we can achieve that goal.

Review of Volunteering

The Covid-19 pandemic had an immediate impact on volunteering activity; services run from the Resource Centre had to quickly adapt to the crisis and as such, most regular volunteering roles were temporarily paused. As part of the Everyone In initiative, The Passage set up an emergency Food Hub to prepare and deliver meals seven days a week to rough sleepers now safely accommodated in six hotels across Westminster. Many of our existing volunteers were unable to volunteer for the Food Hub due to being clinically vulnerable, but the Volunteer Team successfully recruited 184 volunteers to support this vital service.

The demand for Kitchen Volunteers as part of The Food Hub steadily rose between April and July 2020, starting with 12 volunteers per day rising to 18 and then 21 by mid-May to keep up with the rising numbers of clients in temporary accommodation. Through volunteer contacts, we were able to secure the use of two additional vans plus drivers to deliver meals which was invaluable to the success of the hub. 306 individuals volunteered a total of 9,265.5 hours for The Food Hub either as kitchen support or delivery and driver volunteers. 184 of those volunteers were brand new to The Passage and volunteered with us for this first time during the height of the pandemic.

The Food Hub ran until 28 March 2021, preparing and distributing over 90,000 meals and emergency food parcels. It has since been replaced with a small team of staff and volunteers who continue to provide food parcels and hot meals for clients.

The Passage also assisted with the recruitment of volunteers providing practical support for the many hotels set up as part of the pan-London Everyone In initiative.

At Passage House, five out of ten Reception Volunteers continued to volunteer generating a total of 3,666 hours.

10

Volunteer roles at Montfort House and for the Irish Group were able to continue virtually throughout lockdown using laptops and phones provided by The Passage.

The Volunteering Team developed role-specific Covid safety guidance and assessed every volunteer to identify personal risk factors relating to serious illness as a result of infection to ensure that we were not placing anyone at undue risk when they volunteered.

Processes relating to volunteer recruitment were improved via the introduction of an online application form in June 2020 and also significant improvements made to data analysis with the introduction of an upgraded CRM.

Paul’s story

Paul, in his early thirties, had held a steady job for four years and then Covid-19 hit the UK. Initially, he was put on furlough for three months, but his position was then terminated completely. Without an income, Paul didn’t know what to do. He lived in his car for a while, but couldn’t afford the monthly instalments for his insurance and already had a maxed-out credit card.

He came to The Passage for help and advice and was referred to our Private Rented Solutions team. He met with Khai who explained his options through The Passage’s network of private landlords and together they viewed and selected a suitable flat. Khai gently negotiated with the landlord to get the best deal for Paul’s deposit and advance rent, which The Passage helped to pay.

Before signing the tenancy, the landlord carried out credit checks and discovered that Paul had accrued various debts in the past. Khai therefore referred Paul to The Passage’s Money Advice Worker who arranged a manageable payment plan that would clear his debts over time and improve his credit history. With proof of this the landlord accepted and signed Paul’s tenancy.

When it was time to move, Paul asked Khai if The Passage would be able to help him retrieve some of his belongings from storage. Khai was able to book a van to collect his items and help him to move into his new home. Paul then found that his Universal Credit was to be delayed as he was changing his address, and panicked that once again he would have no means to get by. Khai therefore arranged for a ‘moveon pack’ to be delivered the next day, consisting of various household items and some groceries he’d asked for.

Khai then referred Paul to The Passage’s Employment team to help him return to work. He was given a donated iPad so he can maintain contact with his case workers and loved ones, and to help him pursue his job search from home.

11

Review of Strategic Objectives 2020-21

1. Develop and implement our co-production strategy across the organisation and further establish access to clinical psychologists across our services.

The voices of the people who use our services was prevalent in our pandemic response with a focus on safety, urgency, and increased communication during challenging times. It has also demonstrated that we can learn new ways of working; many of our clients have shared their ideas for how to improve our engagement with them, such as offering digital support. However, the crisis meant that we had to postpone formalising this work as we needed to prioritise supporting people to stay safe and find a permanent route away from the streets.

We have been gathering client feedback at every step of the way out of the emergency response which has led to The Passage recruiting a dedicated Experts by Experience Facilitator. This new role will work with clients to seek their feedback and directly involve them in shaping our services. They will facilitate a clear programme for involvement at every level.

We have implemented clinical mental health and psychology input at two of our residential services to great success, enabling one to one psychology input, assessment and advocacy. We will explore extending this across the remainder of our services in the final year of our current strategic plan, alongside our aim to develop a Trauma Informed Care approach across all of our services.

2. Develop our theory of change work, utilising our new In-Form system to capture the impact of our work and further develop our services.

In-Form has now been rolled out to our services. There is a cross departmental, internal team in place to support the programme to grow and to shape services in a proactive manner. Data is now being used to spot gaps in provision, celebrate successes and identify the impact our support has had on an individual’s progression.

The pandemic has significantly changed how services work and the characteristics of the people we support. As such, we are now beginning the process of identifying The Passage’s Theory of Change with our Trustees, service users and staff teams in order to clearly identify the outcomes that we are here to achieve.

3. Ensure effective systems and infrastructure are in place to enable all central services functions to provide the highest possible standards to support frontline service delivery.

A new cloud-based accounting system was introduced at the beginning of the year. This gives us the functionality to produce management accounts for budget holders within four working days of the month end.

Throughout the year, our primary focus for key systems and infrastructure has been to ensure that our employees could work from home where needed. We upgraded and increased our supply of IT equipment and like many other organisations, we had to quickly set up software and systems to ensure our workforce could operate remotely. This included Microsoft Teams and other virtual platforms.

12

4. Finalise and implement a use of space strategy to improve the quality of surroundings for existing services, and to inform the planning for any future service developments/new projects.

Due to the pandemic this objective was put on hold and the emphasis switched to ensuring our buildings and projects were Covid-secure. All services and departments were supported with a comprehensive risk assessment which enabled The Passage to adhere to Covid-secure best practice.

5. Finalise and implement salary benchmarking and staff survey recommendations, (including developing an environmental policy and procedures), and roll out our Values and centralised Induction training programme for all new staff.

The salary benchmarking exercise has been developed and the recommendations will be shared during quarter two of the next financial year. The development of an environmental policy and procedure was put on hold as we had to prioritise the implementation of new Covid procedures and policies.

The centralised Induction training programme could not take place this year due to Covid regulations, but the programme has been developed and will be rolled out when current restrictions allow.

6. Commence the refurbishment of Bentley House to provide increased access to affordable housing.

To ensure that we can continue to meet the current and emerging needs of those impacted by homelessness, we are upgrading our infrastructure and have embarked on a major capital works programme to refurbish Bentley House for which we own the freehold. During 2020-21, The Passage successfully negotiated the transfer of the leasehold on Bentley House from a third party.

The works are needed to continue providing vital resettlement services for those who are street homeless and to create new housing provision, thereby preventing clients from returning to the streets. Once complete, Bentley House will comprise 20 residential units located on the top floor of The Passage’s St. Vincent’s Centre in Victoria. Accommodation will be prioritised for those who have been long-term street homeless and for whom no other housing options are available.

The Passage has established a Development Committee and appointed a Project Manager and Quantity Surveyor to coordinate building surveys, produce an indicative cost plan and prepare a tender specification for prospective contractors. We have also commissioned an architect and secured pro bono legal support.

A full refurbishment programme is being drawn up, with the aim to carry out the works to both Bentley House, together with a major refurbishment of Passage House simultaneously. The aim is to commence work in July 2021 with the full construction programme to commence in October 2021. We envisage that the works on Bentley House will conclude by September 2022.

7. Diversify and grow voluntary income in line with the current 3-year Fundraising strategy to meet organisational needs and the increasing demand for services. Continue to invest in resource and capacity to improve processes and establish a sustainable and reliable funding base.

The second year of our current three-year Fundraising strategy coincided with the start of the Covid19 pandemic and like so many charities, we had to rapidly adapt our plans in response to the unfolding crisis.

We have been greatly moved by the generosity shown to The Passage this year by so many – both existing and new individual supporters, corporate partners, charitable trusts and foundations,

13

schools, churches and community groups. It has also been a time of learning and testing new ideas, such as developing virtual events and digital appeals, which has given the charity a greater reach.

Every donation has enabled us to continue providing vital services for people living on the streets, who at the height of the crisis were facing an unprecedented public-health emergency. We would like to put on record our sincere thanks for this support, without which we simply would not have been able to achieve the outcomes highlighted on pages 8 and 9.

Despite the challenges caused by the pandemic, we have ended the year in a strong financial position. Our voluntary income, excluding legacies, has now doubled (since 2017) and we have achieved a more balanced funding portfolio. This growth is a result of investing in a professional Fundraising and Communications infrastructure and improvements to our systems and processes. We have also invested this year in upgrading our fundraising database to enable us to personalise and enhance our engagement with our supporters.

8. Develop a strong and clear brand and communications plan for The Passage to engage effectively with stakeholders, demonstrate the success of our work, ensure people understand what we do and help us achieve our organisational objectives.

The Covid-19 outbreak meant that we had to re-think some of our planned activity as the focus quickly shifted to ensuring we could keep our clients and staff safe from the virus. In the run-up to World Homelessness Day in October 2020, we were proud to collaborate with national homelessness charity, Crisis, to launch our first public-facing educational campaign, # No Going Back , with the aim of preventing street homelessness during the winter months.

The campaign was created in response to the number of people seeking help at The Passage Resource Centre, which in a matter of months had doubled. Rising unemployment leading to the loss of private rented tenancies was resulting in many people facing housing crisis, often experiencing homelessness for the very first time.

No Going Back had three clear aims:

The campaign also issued a rallying call to landlords, Government and local Councils regarding the temporary ban on evictions.

It was featured on both charity’s websites, a joint letter was sent to the Secretary of State for Housing, Communities and Local Government, we produced a campaign video and ran a social media campaign.

Other key communications activity includes the launch of the new Passage website, which went live on 1 April 2020 and our anniversary cookbook, A Taste of Home , was featured extensively in the national media.

14

9. Harness the opportunities from The Passage’s 40[th] anniversary to engage new supporters, launch new ways of generating funds (including The Passage’s Giving Circle), increase awareness of our cause and develop a programme of recognition for clients and volunteers.

The Passage marked its 40[th] anniversary in 2020, which of course coincided with a year of lockdowns and restrictions and a planned flagship event – the inaugural Passage Awards – has been postponed to later in 2021.

We were very fortunate to engage a passionate and committed Chair of our 40[th] Anniversary Ambassador Circle, who was joined by a number of founding members. Our anniversary cookbook, A Taste of Home, featuring 120 recipes donated from celebrities, Passage staff, clients and volunteers and a Foreword written by our Royal Patron, The Duke of Cambridge was launched in October 2020. It was, and still is, widely available in Waterstones, Amazon and independent bookshops across the country. We secured extensive media coverage including YOU magazine, The Spectator, Waitrose Weekend, Hello! and The Telegraph.

As mentioned above, we also launched our public educational campaign, No Going Back .

A Mass at Westminster Cathedral to mark the anniversary was also postponed to May 2021.

The Passage is a member of the Independent Anti-Slavery Commissioner’s Advisory panel. In addition to establishing a Navigator project in partnership with Westminster City Council and the Ministry of Housing, Communities and Local Government to assist potential victims of modern slavery, we have also developed a strategic plan to share the learnings from our work in the area of homelessness and modern slavery on a global level.

The Passage has played a key role over the last year, working with local and central government to both formulate policy and strategy and respond to the Covid-19 pandemic. A particular highlight is the role we played in the Everyone In initiative, as well as setting out new approaches in our mission to end street homelessness. We have also led the way in identifying systemic solutions to the issue of modern slavery and homelessness.

15

Beth’s story

Beth, aged 54, has a long history of trauma, PTSD, anxiety and depression. She was sharing a flat with her partner and daughter, but their relationship broke down during the pandemic. Beth was forced to give up the tenancy due to ill health and initially returned to her birth country in Eastern Europe to stay with family.

In November 2020, Beth returned to the UK with the intention of staying with her pregnant daughter. Beth experienced a severe mental health breakdown and she was admitted to hospital. Following her discharge and with nowhere to stay, she was signposted to The Passage for support.

Beth was assessed by our Key Worker, Nadia, who established that she was eligible for homelessness assistance from her local council and could apply for Universal Credit. Beth received professional advice from The Passage’s Welfare Rights Worker whilst Nadia helped her to complete an online homelessness application, as she wasn’t confident working through it on her own, nor did she have access to a computer.

The local council accepted Beth’s homelessness application and she was offered a viewing for private rented accommodation. Nadia accompanied Beth to the viewing and they talked through her options. Beth decided to take the property, so Nadia accompanied her to the estate agent to sign the tenancy agreement. The studio was available the next day.

Nadia explained to Beth that due to a corporate grant, The Passage could help her to get some furniture to make her more comfortable and settled in her new home. Nadia visited Beth in the new studio the next day, and together they selected and bought the furniture she needed.

Beth is very grateful for the support and care she has received. This new start has given her the opportunity to focus on improving her health and look forward to becoming a grandmother.

16

Strategic Objectives 2021-22

  1. Develop and implement our co-production strategy across the organisation, and further establish access to clinical psychologists across our services.

  2. Develop our theory of change work, utilising our new Inform system to capture the impact of our work and further develop our services.

  3. Using our Values as the foundation, develop a new framework to be used when taking forward new opportunities.

  4. Roll out our Values and centralised Induction training programme for all new staff.

  5. Build on the learning from the Covid secure day services pilot, to develop a new day services model, ensuring high quality and measurable outcomes for those using Passage day services.

  6. Commence the refurbishment of Bentley House to create a new accommodation project for The Passage; and Passage House; to ensure the physical surroundings meet the high standards of the service provided.

  7. Continue to diversify and grow voluntary income, and develop new statutory income opportunities, to meet organisational needs and the increasing demand for services.

  8. Develop a strong and clear brand and communications plan for The Passage to engage effectively with stakeholders, demonstrate the success of our work, ensure people understand what we do and help us achieve our organisational objectives.

  9. Expand The Passage’s Home for Good model nationally, and share our learning around the issue of modern slavery and homelessness internationally.

  10. Carry out a follow up staff survey to measure progress since the previous survey and continue to develop support and well-being structures for staff and volunteers.

17

Thank You

We are very grateful to the many people and organisations who support our work and share our vision of ending street homelessness, especially over the last 12 months which have been particularly challenging due to the pandemic.

3i 29[th] May 1961 Charitable Trust AB Pollen Trust A&R Woolf Charitable Trust Albert Gubay Charitable Foundation Albert Hunt Trust Anthony du Boulay Charitable Trust AXA XL Barclays The Basil Samuel Charitable Trust Belpech Trust Blackrock Britwell Trust Bowkett Family Foundation CA Redfern Charitable Trust Capital Group City Bridge Trust City of Westminster Charitable Trust COFRA Foundation DMG Roper Charitable Trust Daley Trust Dandy Charitable Trust Daughters of Charity of St Vincent de Paul The David and Kathleen Harvey Trust David & Marie Grummitt Foundation Devonshire Healthcare EMS Charitable Trust Edward Harvist Trust The Embassy of Ireland The Emmaus (Wessex) Trust Findlay Park Foundation Bertarelli Garfield Weston Foundation Grace Trust Happy Charitable Trust The Haramead Trust Harriet’s Trust The Hawthorne Charitable Trust Headley Trust Hobson Charity Hollyhock Charitable Trust HSBC Humble Trust Hyde Park Place Estate Charity ICAP Inner London Magistrates’ Court’s Poor Box Charity & Feeder Charity J.A.R. Charitable Trust The Jean and Hugh Dinan Charitable Trust John Eccles Trust John Studzinski CBE Julia and Hans Rausing Trust KSP Garden Project

18

Landsec The Lindhals Fund London Housing Foundation London Oratory School Manchester Square Partners Marsh Christian Trust Masonic Charitable Foundation Maurice & Hilda Laing Charitable Trust Mercers’ Company Ministry for Housing, Communities and Local Government The National Lottery Community Fund Nelsons The Normanby Charitable Trust Orsted Permira Perrigo PIMCO PJ Harper Trust P&M Burgess Charitable Trust The Porta Pia 2012 Foundation Qube Research and Technology Social Bite Strand Parishes Trust Swire Charitable Trust Taurus Foundation Theresa Fitt Charitable Trust The Thompson Family Charitable Trust The Toby and Regina Wyles Charitable Trust The Tompkins Foundation Trust for London Victoria Business Improvement District Vera Outhwaite Charitable Trust Wellington Management Westminster Cathedral Westminster City Council Williamson Charitable Trust Wogen Anniversary Trust Worshipful Company of Glovers (annual donation of winter gloves and gardening gloves for KSP) Worshipful Company of Insurers Charitable Trust Worshipful Company of Scriveners

19

Financial Review

Financial results for the year

In the current year there was a surplus of £617,235 (2020 – £54,542).

Income from charitable activities – Statutory bodies’ grants

Statutory income was £2,026,562 in 2021 (£1,873,897 in 2020.) An analysis of this funding, and its uses, is in notes 19a and 19b. Statutory income forms 27% of the total income of The Passage.

Fundraising donations and legacies

The Passage relies on the generosity of our supporters to provide resources which encourage, inspire and challenge people who are homeless to transform their lives. Our supporters are at the heart of so much of what we do and this year more than ever we are truly grateful to the many individuals, companies, trusts and foundations, churches, schools and community groups whose donations make our work possible.

Despite the challenges of the global pandemic and the ongoing uncertainties of the external landscape, 2020/21 was in many respects a successful year. Donations (excluding legacies) grew by £1,191,086 to £4,233,952 (2020: £3,042,866), partly as a result of emergency grants, but also due to increased support from individual, trust and corporate donations.

The cost of raising donations and legacies was £703,749 (2020: £669,113). We have continued to invest in new staff posts, our supporter database and other marketing resources as part of a phased approach to building a professional team of fundraising and communication specialists to ensure that The Passage remains a sustainable organisation.

Expenditure

Employment costs remained steady as 66% of total expenditure for the charity (2020: 67%). Details of expenditure to deliver our services are given in note 5 of the financial statements.

Details of all restricted and unrestricted funds are given in note 19 of the financial statements.

Designated funds and reserves

The Board is aware of the need to maintain adequate reserves to ensure that the charity’s work can be continued. Designated funds are set aside to enable the Trustees to develop specific areas of charitable work and to meet potential future obligations. In addition, the Board has to ensure that adequate resources are available to avoid disruption to the services for people who are homeless, which could happen as a result of the unpredictable nature of our income.

We are fortunate that our voluntary income continues to grow and we have a regular consistent donor base, with approximately 50% pledged voluntary income at the start of the financial year. The statutory grant provision remains stable and we assume that this will be maintained in the next two to three years.

We have three main aims in the next three years:

20

To ensure that services can be maintained in the short term, the Board has set aside a designated contingency fund of £1,750,000. There are also general undesignated funds of £1,466,000. Together, these total £3,216,000 which represents 5.7 months of running costs. The Board wishes to reserve between 3-6 months of running costs in a contingency and general reserve combined.

£2.7m of reserves have been designated to help fund the refurbishment of Passage House and Bentley House which is budgeted to be £9m.

£301,000 has been designated to strategy investment costs. These funds will be used to develop and implement the 2022-25 strategy for The Passage.

Going concern

Like all organisations, The Passage has been impacted by the Covid-19 crisis. We have continued to provide services throughout this period and have attracted funding, both voluntary and statutory, to support the increased needs of our client group. We also set aside reserves to help us remodel our services and support operations to adapt to the changed landscape. The Trustees believe that although the Covid-19 crisis will draw on the charity's reserves, it does not impact on its status as a going concern.

Refurbishment programme

In 2020 The Passage bought back the lease for 20 affordable housing units, Bentley House, located on the top two floors of St. Vincent’s Centre, giving the opportunity to provide move on accommodation from our Housing First project (Montfort House) and accommodation for those coming off the streets.

The lease for Passage House, our rapid-response assessment centre, was returned in March 2021 after being let to a registered housing association for the past 25 years. The full results of operating Passage House are included in these accounts.

The cost of acquisition and refurbishment for both refurbishment programmes is estimated at £9 million.

Governance and Management structure

Passage 2000 (“The Passage”) is incorporated in England as a company limited by guarantee, company number 3885593. The company is registered with the Charity Commission, registered charity number 1079764. For Companies Act purposes, the members of the Board of Trustees are the directors of the company.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, 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 2015).

Board of Trustees and Committees

Under the Articles of Association, the election of the Board is in the power of the members of the company at the Annual General Meeting. The Sister Provincial of the Daughters of Charity of St Vincent de Paul (“the Provincial”) and the Administrator of Westminster Cathedral (“the Administrator”) are ex officio company members. They each have the right to serve on the Board of Trustees and each to appoint a second member of the Board of Trustees.

No member of the Board of Trustees received any remuneration or reimbursement of expenses during the year ended 31 March 2021. The company has purchased insurance to protect the charity from any loss

21

arising from the neglect or defaults of its Board of Trustees, employees and agents and to indemnify the Board or other officers against the consequences of any neglect or default on their part.

Three committees advise the Board on client services, finance, and risk and audit. They also assist the Board in monitoring the work of the company in these areas. The Board has resolved to set up a nominations committee to advise the Board on recruitment to the Board and Committees and a People, Performance and Culture Committee.

The Board has adopted a formal code of good governance – Good Governance - A Code for the Voluntary and Community Sector which can be downloaded from the Code Steering Group website http://www.governancecode.org/full-code-of-governance/

Selection and training of new Board members

In line with The Passage’s diversity and equality policy and procedure, new Board members are recruited with appropriate skills and backgrounds following a regular assessment of the experience of current Board members and the areas in which additional expertise is required.

New members of the Board and its Committees see all aspects of the work of The Passage at first hand and have one-to-one meetings with senior employees. All Trustees are encouraged to undertake training, where necessary, to enable them to discharge their responsibilities more effectively.

Subsidiary companies

Passage 2000 has two fully owned subsidiary companies.

Passage Housing Services (PHS) is a company limited by guarantee, company number 9337431, charity number 1161696, and a registered provider of social housing number 4842.

During the year 2020/21, the leases for Bentley House and Passage House were assigned to PHS from other registered social landlords. Passage 2000 owns the freehold of both properties.

Passage Trading Services (PTS) is a company limited by shares, company number 9874011. PTS commenced trading activities in support of Passage 2000 in 2016/17. The main activity of Passage Trading is the operation of Cathedral View conference venue, located within St Vincent’s Centre. Due to the pandemic, the venue has been closed since March 2020.

Other Information

Public benefit statement

The Trustees confirm that they have complied with their duty under sections 4 & 17(5) of The Charities Act 2011 to have regard to the public benefit guidance published by The Charity Commission. This report includes a detailed description of the activities undertaken by the charity during the year to further its charitable purposes for the public benefit.

The Board has referred to the Charity Commission’s guidance on public benefit when reviewing its strategy and objectives, and in planning The Passage’s future activities.

The assistance given to people who are homeless is proportionate to their needs. All members of the Board, Committees and senior employees complete an annual conflict of interest declaration. The Board has referred to the Charity Commission’s guidance on public benefit and has planned The Passage’s activities to avoid the granting of any private benefit other than one that is purely incidental to carrying

22

out The Passage’s objectives. The Board believes it has followed the Charity Commission’s guidance in this area.

Related parties

The subsidiary companies Passage Housing Services and Passage Trading Services are both related parties. The Administrator of Westminster Cathedral and the Sister Provincial of the Sisters of Charity of St Vincent de Paul, by virtue of their right to board membership and to each appoint a board member are also both related parties of the company. Full details of transactions and balances with these related parties are shown in note 9.

Pay policy for senior employees

The Board of Trustees delegate responsibility for the day to day operations of the charity to the Chief Executive and Senior Management Team. The pay of senior staff is reviewed annually and any increases are applied in line with the cost of living applied as part of the NJC salary scale. The Directors benchmark against pay levels in other similar charities.

Trustees and Committee members give their time freely and none have received remuneration or reimbursement of expenses in the past year.

Safeguarding of vulnerable adults

The Passage has a safeguarding policy regarding vulnerable adults. The organisation takes responsibility for identifying, preventing, investigating and responding to all allegations or incidents of abuse. If clients believe that they are subject to abuse of any kind, they are encouraged to speak to a member of staff or volunteer at the project, or to an external advocate. Risk assessments, needs assessments and support plans are implemented and agreed with clients, are reviewed on a regular basis, and are recorded and kept on file at the project. In addition, risk assessments that relate to all forms of abuse that may occur, detail potential risks to staff and volunteers, and to clients who use the service.

The Passage’s recruitment and selection process aims to ensure that those short-listed and selected for job vacancies have the skills and experience that are relevant to the posts. Suitability is tested by means of an application form, and a formal interview with a panel of at least two senior members of staff. The Passage obtains Disclosure and Barring Service (DBS) checks on all staff members or volunteers who may be working with clients in unsupervised contexts.

Living wage

The Passage is an accredited London Living Wage Employer under a scheme organised by the Living Wage Foundation.

Fundraising Regulator

The Passage is registered with the Fundraising Regulator. We follow the Code of Fundraising Practice guidelines on best practice and are compliant with current data protection legislation. The safety and appropriate use of supporters' data is important to us and we will never share or sell personal details to another organisation for their own use. We have not received any formal fundraising complaints in the past financial year and there have been no fundraising compliance issues.

All our fundraising activities are carried out in-house by a team that is employed directly by The Passage and we do not use professional fundraisers or commercial participators to fundraise on our behalf. Our staff are expected to follow the standards in the Code of Fundraising Practice which forms part of their induction programme as well as monthly reviews. We do receive support from volunteers who assist with

23

public collections or collections at Passage events and they follow the required standards with regard to handling donations. A dedicated volunteer committee also supports our annual Night Under The Stars event.

We follow the Code of Practice guidelines in relation to the fair treatment of all donors to ensure that they can make an informed decision about their support. We take into account the needs of any possible donor who may be in vulnerable circumstances. Our policy, as per the Code, is to return any donations to a supporter that may not have the capacity to make an informed decision. This practice is also in line with The Passage’s own values.

Principal Risks and Uncertainties

The Board of Trustees regularly assesses the major risks to which the company is exposed. The systems established to mitigate those risks are periodically reviewed to ensure that they continue to meet the needs of the company.

The Risk and Audit Committee meets regularly and reviews in greater detail the risks to which The Passage is exposed and the approach of the senior management team to mitigate such risks. A risk register highlighting high, medium and low risks is maintained and regularly reviewed; this is a vital tool in risk management. A risk-based internal audit approach is in operation.

The principal current financial risk is the potential impact of Covid-19 on voluntary income streams. To mitigate this risk the Board continues to develop appropriate fundraising and stewardship strategies to ensure continuity of income streams, particularly with a view to increasing the level of unrestricted reserves to provide a measure of security in the event of further adverse conditions arising.

Since the reacquisition of the lease of Bentley House, the major programme of refurbishment which is being undertaken is recognised as a significant capital investment risk. To mitigate this risk the Board has agreed a capital funding plan and designated a significant element of the general reserve to this project.

The Board has also identified a number of risks arising from staff retention and recruitment. To mitigate these risks a review will be carried out in 2021 to ensure that all relevant processes and procedures are in place and of a high standard.

Financial risk management objectives and policies

The Charity uses financial instruments in its operations including deposits with banks, loans, trade debtors and creditors and receivables which provide finance for the Charity’s operations. There is a risk arising from the need to maintain sufficient liquidity to meet its liabilities as they fall due, and the movement in cash is analysed in full in the cash flow statement on page xx.

Under the terms of the Memorandum and Articles of Association, The Passage may invest monies not immediately required for application to its charitable objectives in any investments, securities or property, as appropriate. Surplus cash is held in interest-bearing deposits with UK banks and invested in a charitable investment fund.

Credit risk

The Charity’s principal financial assets are cash, trade debtors, grants receivable and loans receivable. Bank balances are regarded as low risk due to good cash management and credit rating. The principal credit risk arises, therefore, from its grants receivable, trade debtors and loans receivable. Outstanding balances are reviewed and monitored through effective credit control procedures. Ageing of debtors and recoverability is considered and, where needed, provision is made as appropriate for slow payers. The

24

performance of outputs are monitored to ensure conditions of the grant are fulfilled and that the charity is entitled to the funds.

Statement of Trustees’ responsibilities

The Trustees (who are also directors of Passage 2000 for the purposes of company law) are responsible for preparing the Trustees’ annual report including the strategic report and 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 that give a true and fair view of the state of affairs of the charitable company and group, and of the incoming resources and application of resources, including the income and expenditure of the charitable company and group for that period. 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 group, 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 group and, therefore, for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each of the Trustees confirms that:

This confirmation is given and should be interpreted in accordance with the provisions of Section 418 of the Companies Act 2006. The Trustees are responsible for the maintenance and integrity of financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Auditor

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

The trustees’ annual report which includes the strategic report has been approved by the trustees on 28 September 2021 and signed on their behalf by

Michael Kelly, Chair of Trustees

25

Independent auditor’s report to the members of Passage 2000

Opinion

We have audited the financial statements of Passage 2000 (the ‘parent charitable company’) and its subsidiaries (the ‘ group’ ) for the year ended 31 March 2021 which comprise the consolidated statement of financial activities, the group and parent charitable company balance sheets, the consolidated statement of cash flows and the 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on Passage 2000'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 other information comprises the information included in the trustees’ annual report, including the strategic report, other than the group financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the group financial statements does not cover the other information, and, except to the extent otherwise

26

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report, including the strategic report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the parent 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 group’s and the parent 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

27

to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charites Act 2011 and report in accordance with those Acts.

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

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

Capability of the audit in detecting irregularities

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

28

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

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

Use of our report

This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. 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.

Judith Miller (Senior statutory auditor)

17 November 2021

for and on behalf of Sayer Vincent LLP, Statutory Auditor

Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006

29

Passage 2000 (operating as The Passage)

Consolidated statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2021

Restricted
£
751,291
2,026,562
-
-
-
-		 2021
Total
£
4,607,966
2,026,562
617,473
79,652
141,626
4,049
7,477,328
703,749
3,153,868
3,005,072
6,862,689
614,639
-
614,639
2,596
617,235
21,926,212
22,543,447		 Unrestricted
£
2,686,647
-
616,713
18,926
498,951
23,294		 Restricted
£
783,433
1,873,897
-
-
-
-		 2020
Total
£
3,470,080
1,873,897
616,713
18,926
498,951
23,294
4,699,475 2,777,853 3,844,531 2,657,330 6,501,861
703,749
2,395,878
961,975		 -
757,990
2,043,097		 669,413
1,655,136
1,597,415		 -
1,327,808
1,197,547		 669,413
2,982,944
2,794,962
4,061,602 2,801,087 3,921,964 2,525,355 6,447,319
637,873
-		 (23,234)
-		 (77,433)
1,027,222		 131,975
(1,027,222)		 54,542
-
637,873
2,596		 (23,234)
-		 949,789
-		 (895,247)
-		 54,542
-
640,469
5,765,804		 (23,234)
16,160,408		 949,789
4,816,015		 (895,247)
17,055,655		 54,542
21,871,670
16,137,174 5,765,804 16,160,408 21,926,212

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 18a to the financial statements.

30

Passage 2000 (operating as The Passage)

Company no. 03885593

Balance sheets

As at 31 March 2021

Note
Fixed assets:
11
12
Current assets:
15
Liabilities:
16
15
16
19a
Total unrestricted funds
Investments
Cash at bank and in hand
Tangible assets
Total funds
Funds:
Restricted income funds
Unrestricted income funds:
Designated funds
General funds
Debtors
Creditors: amounts falling due within one year
Net current assets
Total net assets
Loans to Subsidiaries
Total assets less current liabilities
Creditors: amounts falling due after more than one
year		 2021
2020
£
£
17,201,876
16,809,498
302,596
-
17,504,472
16,809,498
1,023,382
1,224,778
5,083,091
4,259,157
6,106,473
5,483,935
(543,498)
(367,221)
5,562,975
5,116,714
23,067,447
21,926,212
-
-
(524,000)
-
22,543,447
21,926,212
16,137,174
16,160,407
4,940,021
4,569,562
1,466,252
1,196,243
6,406,273
5,765,805
22,543,447
21,926,212
The group		 2021
2020
£
£
17,201,876
16,809,498
302,596
-
17,504,472
16,809,498
1,023,382
1,224,778
5,083,091
4,259,157
6,106,473
5,483,935
(543,498)
(367,221)
5,562,975
5,116,714
23,067,447
21,926,212
-
-
(524,000)
-
22,543,447
21,926,212
16,137,174
16,160,407
4,940,021
4,569,562
1,466,252
1,196,243
6,406,273
5,765,805
22,543,447
21,926,212
The group		 2021
2020
£
£
15,826,653
16,059,626
302,696
100
16,129,349
16,059,726
1,014,760
1,214,492
5,001,598
4,161,258
6,016,358
5,375,750
(428,897)
(325,475)
5,587,461
5,050,275
21,716,810
21,110,001
787,788
791,963
-
-
22,504,598
21,901,964
16,137,174
16,160,407
4,940,021
4,569,562
1,427,403
1,171,995
6,367,424
5,741,557
22,504,598
21,901,964
The charity		 2021
2020
£
£
15,826,653
16,059,626
302,696
100
16,129,349
16,059,726
1,014,760
1,214,492
5,001,598
4,161,258
6,016,358
5,375,750
(428,897)
(325,475)
5,587,461
5,050,275
21,716,810
21,110,001
787,788
791,963
-
-
22,504,598
21,901,964
16,137,174
16,160,407
4,940,021
4,569,562
1,427,403
1,171,995
6,367,424
5,741,557
22,504,598
21,901,964
The charity
17,504,472
1,023,382
5,083,091		 16,809,498
1,224,778
4,259,157		 16,129,349
1,014,760
5,001,598		 16,059,726
1,214,492
4,161,258
6,106,473
(543,498)		 5,483,935
(367,221)		 6,016,358
(428,897)		 5,375,750
(325,475)
5,562,975 5,116,714 5,587,461 5,050,275
23,067,447
-
(524,000)		 21,926,212
-
-		 21,716,810
787,788
-		 21,110,001
791,963
-
22,543,447 21,926,212 22,504,598 21,901,964
16,137,174
4,940,021
1,466,252		 16,160,407
4,569,562
1,196,243		 16,137,174
4,940,021
1,427,403		 16,160,407
4,569,562
1,171,995
6,406,273 5,765,805 6,367,424 5,741,557
22,543,447 21,926,212 22,504,598 21,901,964

Approved by the trustees on 28 September 2021 and signed on their behalf by

Michael Kelly Chair of trustees

31

Passage 2000 (operating as The Passage)

Consolidated statement of cash flows

For the year ended 31 March 2021

Note
£
£
Net income / (expenditure) for the reporting period
614,639
(as per the statement of financial activities)
Depreciation charges
346,025
Loss on disposals of fixed assets
-
Interest income
(4,049)
(Increase)/decrease in debtors
201,395
Increase/(decrease) in creditors
700,278
Net cash provided by / (used in) operating activities
1,858,288
4,049
(738,403)
(300,000)
(1,034,354)
823,934
4,259,157
5,083,091
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
2021
Cash flows from operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of fixed assets
Purchase of investments
Net cash provided by / (used in) investing activities		 Note
£
£
Net income / (expenditure) for the reporting period
614,639
(as per the statement of financial activities)
Depreciation charges
346,025
Loss on disposals of fixed assets
-
Interest income
(4,049)
(Increase)/decrease in debtors
201,395
Increase/(decrease) in creditors
700,278
Net cash provided by / (used in) operating activities
1,858,288
4,049
(738,403)
(300,000)
(1,034,354)
823,934
4,259,157
5,083,091
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
2021
Cash flows from operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of fixed assets
Purchase of investments
Net cash provided by / (used in) investing activities		 Note
£
£
Net income / (expenditure) for the reporting period
614,639
(as per the statement of financial activities)
Depreciation charges
346,025
Loss on disposals of fixed assets
-
Interest income
(4,049)
(Increase)/decrease in debtors
201,395
Increase/(decrease) in creditors
700,278
Net cash provided by / (used in) operating activities
1,858,288
4,049
(738,403)
(300,000)
(1,034,354)
823,934
4,259,157
5,083,091
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
2021
Cash flows from operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of fixed assets
Purchase of investments
Net cash provided by / (used in) investing activities		 £
£
54,542
430,457
17,441
(23,294)
405,877
(44,746)
840,277
23,294
(178,529)
-
(155,235)
685,042
3,574,115
4,259,157
2020		 £
£
54,542
430,457
17,441
(23,294)
405,877
(44,746)
840,277
23,294
(178,529)
-
(155,235)
685,042
3,574,115
4,259,157
2020
1,858,288
(1,034,354)
823,934
4,259,157		 840,277
(155,235)
685,042
3,574,115
5,083,091 4,259,157

32

Passage 2000 (operating as The Passage)

Notes to the financial statements

For the year ended 31 March 2021

1 Accounting policies

a) Statutory information

Passage 2000 is a charitable company limited by guarantee and is incorporated in England. Passage 2000 operates as The Passage.

The registered office address is at St Vincent's Centre, Carlisle Place, London SW1P 1NL. The Passage provides resources which encourage, inspire and challenge homeless people to transform their lives.

b) Basis of preparation

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 in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

These financial statements consolidate the results of the charity and its wholly-owned subsidiaries Passage Trading Services Limited and Passage Housing Services on a line by line basis. Transactions and balances between the charity and its subsidiaries have been eliminated from the consolidated financial statements. Balances between the parent charity and its subsidiaries entities are disclosed in the notes of the charity's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

c) Public benefit entity

The charity meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

Like all organisations, The Passage has been impacted by the Covid 19 crisis. As a charity we have been able to continue through the lockdown period by providing residential accommodation, providing a food hub for street homeless put into hotel accommodation in Westminster, and by continuing to support our clients in this difficult time. We are now key in ensuring that rough sleepers in hotels in Westminster find accommodation and have support to make that accommodation a home. As such, we have attracted funding, both voluntary and statutory to help us deliver those services. We also have reserves set aside to help us remodel our services and way of operating to mange the changed landscape. As such, the trustees believe that although the Covid crisis will draw up on the charity's reserves, it does not impact on its status as a going concern.

e) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

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

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

33

Passage 2000 (operating as The Passage)

Notes to the financial statements

For the year ended 31 March 2021

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

On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

g) Interest receivable

Interest on funds held on deposit is included when 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.

h) Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund. Revenue funding from statutory bodies is normally spent in its entirety during the year. Individual balances on the restricted funds relating to revenue expenditure funded by statutory bodies is not material and no further analysis is therefore given.

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

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

i) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

j) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity.

Facilities management costs are recharged on the basis of the use of the services, taking floor areas occupied, and the intensity of their use. Human resources overheads are charged on the basis of the number of staff engaged in each activity.

Governance costs are the costs associated with the governance arrangements of the charity.

k) Operating leases

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

34

Passage 2000 (operating as The Passage)

Notes to the financial statements

For the year ended 31 March 2021

l) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £5,000. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Major components are treated as a separate asset where they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life.

Where fixed assets have been revalued, any excess between the revalued amount and the historic cost of the asset will be shown as a revaluation reserve in the balance sheet.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Not depreciated 3-100 years 4-15 years

m) 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.

n) Cash at bank and in hand

Cash at bank and cash in hand includes 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.

o) 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.

p) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

q) Pensions

The charity has arranged a group personal pension plan, which is a defined contribution scheme, for staff, the costs of which are charged to the Statement of Financial Activities in the year in which the contributions are payable. The charity has no liability for the ultimate benefits paid.

r) Investments

During 2020-21 the charity transferred £300k of current cash and short term deposits to a new COIF Charities Investment Fund, which seeks to provide medium to long-term growth and stability within a client-driven ethical investment framework. The investments are valued at bid price as at the balance sheet date.

35

Passage 2000 (operating as The Passage)

Notes to the financial statements

For the year ended 31 March 2021

2 Income from donations and legacies

Legacies
Individuals
Westminster Cathedral
Church and voluntary groups
Grants
Corporate donations
Donations from related parties		 Unrestricted
£
374,014
1,786,939
18,871
2,100
65,496
850,329
758,926		 £
-
2,711
-
-
-
421,477
327,102
Restricted		 2021
Total
£
374,014
1,789,650
18,871
2,100
65,496
1,271,806
1,086,028		 Unrestricted
£
427,213
1,262,578
12,805
288
115,215
346,162
522,386		 £
-
9,213
-
-
-
642,845
131,375
Restricted		 2020
Total
£
427,213
1,271,791
12,805
288
115,215
989,007
653,761
3,856,675 751,291 4,607,966 2,686,647 783,432 3,470,080

3 Income from charitable activities

Westminster City Council
Brighton and Hove
Health Authorities
EUSS
London Housing Foundation
Rent from Residential Services
Other Income
Sub-total for Grants from statutory
bodies
Accommodation and prevention
projects
Government of Ireland: Emigrant
Support Programme		 Unrestricted
£
-
-
-
-
-
-		 £
1,894,393
35,000
34,249
-
17,920
45,000
Restricted		 2021
Total
£
1,894,393
35,000
34,249
-
17,920
45,000		 Unrestricted
£
-
-
-
-
-
-		 £
1,675,035
34,014
38,000
31,416
48,604
46,828
Restricted		 2020
Total
£
1,675,035
34,014
38,000
31,416
48,604
46,828
-
617,473
79,652		 2,026,562
-
-		 2,026,562
617,473
79,652		 -
616,713
18,926		 1,873,897
-
-		 1,873,897
616,713
18,926
697,125 - 697,125 635,639 - 635,639

The total grant for the Government of Ireland: Emigrant Support Programme for the period 1 July 2020 to 30 June 2021 was £35,000, of which £30,633 was applied in the financial year 2020-21 under the following headings: Staff costs: £27,942

Client costs: £2,633 Volunteers: £30 Administration: £28

4 Income from other trading activities

Fundraising events
Hire of meeting rooms and
conference facilities
Sundry recharges
A Taste of Home
(The Passage cookbook)		 Unrestricted
£
-
99,012
17,586
25,028		 £
-
-
-
-
Restricted		 2021
Total
£
-
99,012
17,586
25,028		 Unrestricted
£
268,769
-
5,714
224,468		 £
-
-
-
-
Restricted		 2020
Total
£
268,769
-
5,714
224,468
141,626 - 141,626 498,951 - 498,951

36

Passage 2000 (operating as The Passage)

Notes to the financial statements

For the year ended 31 March 2021

5a Analysis of expenditure (current year)

Charitable activities

Staff costs (Note 7)
Other direct costs
Management and planning
Finance
Information resources
Human resources
Facilities management
Support costs
Governance costs
Total expenditure 2021
Total expenditure 2020		 Raising
funds
£
373,972
230,102
-
-
-
-
-
604,074
99,675
-
703,749
478,052		 Passage
Resource
Centre
£
1,762,296
913,418
-
-
-
-
-
2,675,714
470,026
8,127
3,153,868
2,982,944		 Accommodation
and prevention
projects
£
1,767,764
794,843
-
-
-
-
-
2,562,607
434,338
8,127
3,005,072
2,794,962		 Governance
costs
£
-
-
16,255
-
-
-
-
16,255
-
(16,255)
-
-		 Support
costs
£
639,940
-
4,390
39,230
135,550
5,982
178,945
1,004,039
(1,004,039)
-
-
-		 2021 Total
2020
Total
£
£
4,543,972
4,179,321
1,938,364
1,722,605
20,645
52,778
39,230
31,031
135,550
67,918
5,982
5,383
178,945
196,922
6,862,689
6,255,958
-
-
-
-
6,862,689
6,255,958

Passage Trading costs in fundraising 99,181

37

Passage 2000 (operating as The Passage)

Notes to the financial statements

For the year ended 31 March 2021

5b Analysis of expenditure (prior year) restated*

Staff costs (Note 7)
Other direct costs
Management and planning
Finance
Information resources
Human resources
Facilities management
Support costs
Governance costs
Total expenditure 2020		 Raising
funds
£
220,114
168,704
-
-
-
-
-
388,818
89,234
-
478,052		 Charitable activities Charitable activities Governance
costs
£
-
-
13,092
-
-
-
-
13,092
-
(13,092)
-		 Support
costs
2020 Total
£
£
493,637
4,179,321
-
1,722,605
39,685
52,778
31,031
31,031
67,918
67,918
5,383
5,383
196,922
196,922
834,576
6,255,958
(834,576)
-
-
-
-
6,255,958
Passage
Resource
Centre
£
1,854,289
569,288
-
-
-
-
-
2,423,578
552,820
6,546
2,982,944		 Accommodation
and prevention
projects
£
1,611,281
984,612
-
-
-
-
-
2,595,893
192,522
6,546
2,794,961

Passage Trading costs in fundraising £191,361

*Analysis of expenditure for 2019-20 has been restated to align it with the revised cost allocation model applied in 2020-21. Total expenditure and the breakdown of that total by Raising funds and Charitable activities remain as previously stated.

38

Passage 2000 (operating as The Passage)

Notes to the financial statements

For the year ended 31 March 2021

This is stated after charging / (crediting):

This is stated after charging / (crediting):
2021 2020
£ £
Depreciation 346,025 430,457
Loss on disposal of fixed assets - 17,441
Operating lease - 4,788
Auditor's remuneration (excluding VAT):
Audit 12,400 15,900
Audit fees for subsidiaries 6,000 2,200
Other services 7,400 -

Staff costs were as follows:

Staff costs were as follows:
Training and recruitment
Salaries and wages
Other staff costs (including agency costs)
Social security costs
Employer’s contribution to defined contribution pension schemes
Other costs		 2021
£
3,698,027
370,040
153,792
201,947
78,727
41,438		 2020
£
3,399,302
338,142
145,423
198,188
56,805
41,461
4,543,972 4,179,321

The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:

2021 2020
No. No.
£60,000 - £69,999 - 1
£70,000 - £79,999 2 1
£80,000 - £89,999 - -
£90,000 - £99,999 1 1

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £479,546 (2020: £426,471).

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2020: £nil). No charity trustee received payment for professional or other services supplied to the charity (2020: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £nil (2020: £nil) incurred by nil (2020: nil) members relating to attendance at meetings of the trustees.

39

Passage 2000 (operating as The Passage)

Notes to the financial statements

For the year ended 31 March 2021

8 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 121 (2020: 105).

Staff are split across the activities of the charity as follows:

Staff are split across the activities of the charity as follows:
Passage resource centre
Raising funds
Prevention and accommodation
Support		 2021
No.
7.0
46.0
50.0
18.0		 2020
No.
5.0
49.0
38.0
13.0
121.0 105.0

9 Related party transactions

The board of trustees ("The Board") manages the charitable activities of the company. Passage Housing Services, Passage Trading Services, The Passage Trust, the Daughters of Charity of St Vincent de Paul ("the Sisters") and Westminster Cathedral are related parties.

Transactions with the Sisters

The Sisters made grants and donations of £2,100 (2020: £288) to The Passage. In the prior year they supplied the services of a full time chaplain without remuneration for the period March 2019-September 2019.

Transactions with Westminster Cathedral

Westminster Cathedral made grants and donations, and collected donations on behalf of The Passage amounting to £18,871 (2020: £12,805). No charge was made for the facilities provided by the cathedral for the collection of money to assist the work of The Passage.

Transactions with Passage Trading Services

During the year The Passage received repayment of £117,190 (2020: £160,492) from Passage Trading Services in loans and advances.

Aggregate donations from related parties were £138,161 (2020: £173,585).

10 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The charity's trading subsidiary Passage Trading Services Limited distributes under Gift Aid available profits to the parent charity.

40

Passage 2000 (operating as The Passage)

Notes to the financial statements

For the year ended 31 March 2021

11 Tangible fixed assets

The group

The group
At the end of the year
At the end of the year
Net book value
At the start of the year
Disposals in year
At the start of the year
Additions in year
Cost

At the start of the year
Charge for the year
Depreciation
Eliminated on disposal
At the end of the year		 Freehold
property
£
20,757,710
675,160
-		 Equipment
fixtures and
fittings
£
1,114,684
63,243
(77,623)

Total
£
21,872,394
738,403
(77,623)
21,432,870 1,100,304 22,533,174
4,115,450
304,565
-		 947,446
41,460
(77,623)		 5,062,896
346,025
(77,623)
4,420,015 911,283 5,331,298
17,012,855 189,021 17,201,876
16,642,260 167,238 16,809,498

All of the above assets are used for charitable purposes.

At the end of the year
Net book value
At the end of the year
At the start of the year
Eliminated on disposal
At the start of the year
At the end of the year
Depreciation
At the start of the year
Charge for the year
The charity
Cost
Additions in year
Disposals in year		 Freehold
property
£
19,897,522
20,160
-		 Equipment
fixtures and
fittings
£
1,114,684
63,243
(77,623)

Total
£
21,012,206
83,403
(77,623)
19,917,682 1,100,304 21,017,986
4,005,134
274,916
-		 947,446
41,460
(77,623)		 4,952,580
316,376
(77,623)
4,280,050 911,283 5,191,333
15,637,632 189,021 15,826,653
15,892,388 167,238 16,059,626

All of the above assets are used for charitable purposes.

41

Passage 2000 (operating as The Passage)

Notes to the financial statements

For the year ended 31 March 2021

12
Fair value at the end of the year
Investments comprise:
Fair value at the start of the year
Additions at cost
Disposal proceeds
Investments in subsidiary undertakings
Net gain / (loss) on change in fair value
UK Common investment funds
Listed investments		 2021
2020
£
£
-
-
300,000
-
-
-
2,596
-
302,596
-
2021
2020
£
£
302,596
-
-
-
302,596
-
The group
The group		 2021
2020
£
£
-
-
300,000
-
-
-
2,596
-
302,596
-
2021
2020
£
£
302,596
-
-
-
302,596
-
The group
The group		 2021
2020
£
£
100
100
300,000
-
-
-
2,596
-
The charity		 2021
2020
£
£
100
100
300,000
-
-
-
2,596
-
The charity
302,596 - 302,696 100
2021
2020
£
£
302,596
-
100
100
The charity
302,596 - 302,696 100

42

Passage 2000 (operating as The Passage)

Notes to the financial statements

For the year ended 31 March 2021

13 Subsidiary undertakings

The charity owns the funds of Passage Housing Services, a company registered in England and a Registered Social Landlord. The company number is 09874011 and the RSL number is 4842. The registered office address is St Vincent Centre, Carlisle Place, London SW1P 1NL.

This entity is used for residential services that cannot be run through the charity, however all activity is considered primary purpose. All activities have been consolidated on a line by line basis in the statement of financial activities.

A summary of the results is shown below:

A summary of the results is shown below:
Income
Expenditure
Net income/(expenditure) for the year
Funds brought forward
Total funds carried forward
The aggregate of the assets, liabilities and reserves was:
Assets
Liabilities
Reserves		 2021
£
25,105
(6,469)		 2020
£
150
(36)
18,636 114
206 92
18,842 206
678,234
(659,392)		 206
-
18,842 206

The charity owns the whole of the issued ordinary share capital of Passage Trading services Limited, a company registered in England. The company number is 09874011. The registered office address is St Vincent Centre, Carlisle Place, London SW1P 1NL.

The subsidiary is used for non-primary purpose trading activities. All activities have been consolidated on a line by line basis in the statement of financial activities. Available profits are distributed under Gift Aid to the parent charity.

A summary of the results is shown below:

A summary of the results is shown below:
Interest on loan payable to parent undertaking
Profit / (loss) for the financial year
Total retained earnings carried forward
Turnover
Cost of sales
Profit / (loss) on ordinary activities before taxation
Taxation on profit on ordinary activities
Gross profit/(loss)
The aggregate of the assets, liabilities and reserves was:
Retained earnings
Total retained earnings brought forward
Profit / (loss) for the financial year
Assets
Liabilities
Distribution under Gift Aid to parent charity
Reserves		 2021
£
146,613
(99,180)		 2020
£
268,778
(191,361)
47,433
10,688		 77,417
16,333
36,745
-		 61,084
-
36,745 61,084
23,047
36,745
(39,785)		 1,963
61,084
(40,000)
20,007 23,047
790,299
(770,192)		 865,380
(842,233)
20,107 23,147

Amounts owed to the parent undertaking are shown in note 14.

43

Passage 2000 (operating as The Passage)

Notes to the financial statements

For the year ended 31 March 2021

14 Parent charity

The parent charity's gross income and the results for the year are disclosed as follows:

15
Amounts due from subsidiary undertakings
Funding advance to Passage Housing Services Limited
Debtors
Gross income
Trade debtors
Funding advance to Passage Trading Services Limited
Other debtors
Prepayments
Debtors over one year:
Accrued income
Sundry Debtors
Result for the year		 2021
2020
£
£
2,243
11,159
315,967
437,578
-
-
164,965
166,623
505,382
571,706
34,826
37,712
-
-
-
-
1,023,382
1,224,778
The group		 2021
2020
£
£
2,243
11,159
315,967
437,578
-
-
164,965
166,623
505,382
571,706
34,826
37,712
-
-
-
-
1,023,382
1,224,778
The group		 2021
£
7,413,693
558,942		 2020
£
6,289,426
33,468
2021
2020
£
£
-
-
309,588
437,578
-
7,323
164,965
166,623
505,382
563,737
34,826
39,231
722,288
791,963
65,500
-
The charity
1,023,382 1,224,778 1,802,548 2,006,455

The Funding loan to Passage Trading Services Limited, a wholly owned subsidiary, represents funds advanced to enable the subsidiary company to renovate the conference space area which it now hires out. The loan has flexible repayment terms and carries a commercial rate of interest.

The funding loan to Passage Housing Services, a wholly owned subsidiary, represents the first year payment for the transfer of the lease for Bentley House, the freehold of which is owned by the parent charity.

16 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Trade creditors
Amounts due to group undertakings
Other creditors
Accruals
Taxation and social security
Pension contributions
Deferred income (note 17)		 2021
2020
£
£
128,692
83,683
110,588
100,763
32,965
34,608
67,299
20,268
-
-
195,313
113,876
8,641
14,023
543,498
367,221
The group		 2021
2020
£
£
128,692
69,562
108,056
95,003
32,965
34,608
1,799
20,268
3,196
-
145,740
102,796
8,449
3,238
The charity
543,498 367,221 428,897 325,475

Creditors greater than one year comprises amounts due for the buyback of the lease on Bentley House of £524,000 (2020: £nil) and is repayable over 9 years (until 2030) in equal instalments each year.

17 Deferred income

Deferred income comprises funds in advance from Housing benefits and room hire paid in advance

Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year
Balance at the end of the year		 2021
2020
£
£
14,023
87,643
(14,023)
(87,643)
8,641
14,023
8,641
14,023
The group		 2021
2020
£
£
14,023
87,643
(14,023)
(87,643)
8,641
14,023
8,641
14,023
The group		 2021
2020
£
£
3,238
42,181
(3,238)
(42,181)
8,449
3,238
The charity		 2021
2020
£
£
3,238
42,181
(3,238)
(42,181)
8,449
3,238
The charity
8,641 14,023 8,449 3,238

44

Passage 2000 (operating as The Passage)

Notes to the financial statements

For the year ended 31 March 2021

18a
General
unrestricted
£
1,380,985
-
302,596
306,671
(524,000)
1,466,252
Net assets at 31 March 2021
Long term liabilities
Investments
Net current assets
Tangible fixed assets
Analysis of group net assets between funds (current year)
Investment properties		 18a
General
unrestricted
£
1,380,985
-
302,596
306,671
(524,000)
1,466,252
Net assets at 31 March 2021
Long term liabilities
Investments
Net current assets
Tangible fixed assets
Analysis of group net assets between funds (current year)
Investment properties		 £
189,021
-
-
4,751,000
-
Designated
funds		 Restricted
funds
£
15,631,870
-
-
505,304
-
Total funds
£
17,201,876
-
302,596
5,562,975
(524,000)
1,466,252 4,940,021 16,137,174 22,543,447

18b Analysis of group net assets between funds (prior year)

19a
Total restricted funds
Community Intervention Team
Other restricted funds
Movements in funds (current year)
Restricted funds:
Tangible fixed assets
General Building development fund
Passage House
Passage Resource Centre
Other statutory grants
Building fund:
Covid-19 Food Hub
Home for Good
Net assets at 31 March 2020
Immigration
Passage House
Modern Slavery
St Vincent's refurbishment
Rough Sleeping Team
Move On
St Vincent's Centre
Employment and training
Resettlement
Westminster Housing Project
Net current assets		 £
4,000
50,865
139,708
8,407
-
23,057
-
-
-
-
-
-
-
9,835,330
4,004,030
914,253
1,138,775
41,982
At 1 April 2020		 General
unrestricted
£
749,872
446,371		 £
167,238
4,402,324
Designated
funds		 Restricted
funds
£
15,892,388
268,019
Total funds
£
16,809,498
5,116,714
1,196,243 4,569,562 16,160,407 21,926,212
£
-
130,197
88,000
6,250
80,000
35,000
46,000
100,000
100,000
100,000
126,220
1,931,562
34,624
-
-
-
-
-
Income &
gains		 £
(2,577)
(75,946)
(14,633)
-
(50,000)
(30,477)
(37,815)
(96,443)
-
(100,000)
(126,220)
(1,931,562)
(32,913)
(271,924)
(27,584)
-
(2,992)
-
Expenditure &
losses		 £
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Transfers		 £
1,423
105,116
213,075
14,657
30,000
27,580
8,185
3,557
100,000
-
-
-
1,711
9,563,406
3,976,446
914,253
1,135,783
41,982
At 31 March
2021
16,160,407 2,777,853 (2,801,086) - 16,137,174

45

Passage 2000 (operating as The Passage)

Notes to the financial statements

For the year ended 31 March 2021

19a Movements in funds (current year continued)

Total designated funds
General funds
Total funds
Unrestricted funds:
Total unrestricted funds
Equipment
Designated funds:
Funding Contingency
St Vincent's refurbishment
Statutory redundancy
Strategy investment costs		 1,750,000
2,200,000
452,324
167,238
-		 -
-
-
-
-		 -
-
-
-
-		 -
500,000
(452,324)
21,783
301,000		 1,750,000
2,700,000
-
189,021
301,000
4,569,562 - - 370,459 4,940,021
1,196,243 4,702,071 (4,061,603) (370,459) 1,466,252
5,765,805 4,702,071 (4,061,603) - 6,406,273
21,926,212 7,479,924 (6,862,689) - 22,543,447

The narrative to explain the purpose of each fund is given at the foot of the note below.

46

Passage 2000 (operating as The Passage)

Notes to the financial statements

For the year ended 31 March 2021

19b Movements in funds (prior year)

Total restricted funds
Total designated funds
General funds
Total unrestricted funds
Total funds
Funding Contingency
Rough Sleeping Team
Passage Resource Centre
Chaplaincy
Home for Good
New Initiative evaluation
Modern Slavery
Westminster Housing Project
Other statutory grants
Passage House
Montfort House Services
Equipment
Unrestricted funds:
Designated funds:
St Vincent's refurbishment
Statutory redundancy
Immigration
Destitution
Passage House
Resource Centre
Employment and training
Restricted funds:
Building fund:
St Vincent's refurbishment
St Vincent's Centre
General Building development fund		 £
-
-
-
-
63,176
-
6,068
-
-
-
6,421
-
18,398
10,515,458
4,280,914
977,474
1,096,582
91,164
At 2 April 2019		 £
34,000
15,000
153,983
3,500
402,249
21,207
40,000
46,828
51,500
28,000
-
33,993
1,827,069
-
-
-
-
-
Income &
gains		 £
(30,000)
(15,000)
(103,118)
(3,500)
(325,717)
(12,800)
(46,068)
(23,771)
(51,500)
(28,000)
(6,421)
(33,993)
(1,845,467)
-
-
-
-
-
Expenditure &
losses		 £
-
-
-
-
-
-
-
-
-
-
-
-
-
(680,128)
(276,884)
(63,221)
42,193
(49,182)
Transfers		 £
4,000
-
50,865
-
139,708
8,407
-
23,057
-
-
-
-
-
9,835,330
4,004,030
914,253
1,138,775
41,982
At 31 March
2020
17,055,655 2,657,329 (2,525,355) (1,027,222) 16,160,407
1,750,000
2,200,000
397,495
108,414		 -
-
-
-		 -
-
-
-		 -
-
54,829
58,824		 1,750,000
2,200,000
452,324
167,238
4,455,909 - - 113,653 4,569,562
360,106 3,844,532 (3,921,964) 913,569 1,196,243
4,816,015 3,844,532 (3,921,964) 1,027,222 5,765,805
21,871,670 6,501,861 (6,447,319) - 21,926,212

47

Passage 2000 (operating as The Passage)

Notes to the financial statements

For the year ended 31 March 2021

Purposes of restricted funds

The Running Costs Fund - Represents donations and grants received or receivable during the year to support the running of specific projects, which have not been entirely spent by the end of the year.

The St Vincent's Refurbishment Fund - Represents payments contributed by developers to The Passage for the refurbishment of St Vincent's Centre, plus interest earned on this fund.

The St Vincent's Centre Building Fund - Represents donations and grants made towards the cost of purchasing and improving St Vincent's Centre in respect of works completed before the current refurbishment.

The General Development Fund - Represents donations and grants made towards the cost of purchasing and improving St Vincent's Centre in respect of works completed before the current refurbishment.

The Passage House Fund - Consists of the historical cost of Passage House to The Passage Trust, less accumulated depreciation to 31 March 2021 (including the Lily Ann & William Wiggins Fund of £146,045, which the donor agreed could be used for this purpose), and grants payable to the company to develop Passage House.

The Passage Resource Centre Fund - Represents a legacy received by The Passage Trust for use in the Resource Centre, given to Passage 2000 for the development and maintenance of the Resource Centre.

Westminster City Council

Passage House Assessment Centre Grant - Contribution to the running of Passage House as an assessment centre for Westminster rough sleepers.

Supporting People Grant - Funding for workers giving general counselling and advice in Montfort House. Additional funding for night time support staff in Montfort House.

Housing Options Grant - Grant to provide housing advice and assistance to single homeless people.

Private Rented Sector Advice Grant - Grant to employ a staff team giving advice and assistance to homeless people to access private rented accommodation and related resettlement costs.

Guys and St Thomas' NHS Foundation - Funding to employ a worker to support homeless patients and hospital staff to improve patient experience and to ensure safe discharge, avoiding discharge to the street where this is possible.

Brighton and Hove Council - Grant to co-ordinate work by community and faith-based groups .

Irish Government-Department of Foreign Affairs and Trade - Funding to employ a worker to co-ordinate the Resource Centre's services to Irish clients and to research their needs.

EUSS - A partnership with Crisis to help EA nationals receive the right to remain in the UK.

London Housing Foundation - Supporting establishing a Westminster wide project to co-ordinate strategic interventions to end homelessness in Westminster.

Purposes of designated funds

Funding Contingency Fund - Ensures that adequate resources would be available to maintain services to beneficiaries in the short-term, having regard to seasonal fluctuations in income and the company's exposure to possible variations in future grant levels from major funders. It was not necessary to draw on this reserve during 2020-21.

St Vincent's Refurbishment Fund - Designated for future major cyclical maintenance of St Vincent's Centre and towards any costs of acquiring and refurbishing Bentley House, which cannot be funded through grants and donations.

Statutory Redundancy Fund - This has been closed and part-transferred to the Strategy Investment Fund, with the balance released to General Funds.

Strategy Investment Fund - Represents funds designated by the Board to develop and implement the 2022-2025 strategy for The Passage.

Equipment Fund - Represents the net book value of equipment, apart from equipment funded as part of the St Vincent's refurbishment project.

48

Passage 2000 (operating as The Passage)

Notes to the financial statements

For the year ended 31 March 2021

20 Operating lease commitments payable as a lessee

The charity and group's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:

each of the following periods:
Less than one year
One to five years
Over five years		 2021
2020
£
£
-
4,190
-
2,394
-
-
Equipment
- 6,584

49