Company number: 03885593 Charity number: 1079764 Passage 2000 (operating as The Passage) Trustees, Report and Accounts Y'ear end-d 31 M3rch ?02? Contents: 1 21 List of Twstees, Senior Management and Advlsors | About The Pa55age 4 - 5 | Chief Executive and Chalr's Statement 61 Peter's Story 7140th Anniversary Afternoon Tea and Awards l How We Helped In 2021122 11 1 Revlew of OrganisatlonaL Objectives 2021 2022 121 The Passage Theory of Change 13 | Brenda's Story 141 Review of Volunteering 151 James, Story A Full Clrcle Journey 161 Organlsatlonal Objectlves 2022 2023 171 Thank Yous and Speclal Mentions 181 Adam'5 Letter of Thanks 19 - 271 Flnanclal Revfew 27- 31 1 Independent Audltor's Report 321 Consolidated Statement of Flnancial Activities 33 1 Balance Sheets 341 Consolidated Statement of Cash Flows 35 - 51 1 Notes to the Financial Statements The trustees present their report and the audited flnancial statements for the year ended 31 March 2022. Reference and administrative information set out on pages 19 - 50 form part of thls report. The financial statements cornply with current statutory requirements, the mernorandum and articles of assoclatlon, the requlrements 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. ] THE PASSAGE to ending homelessness Trustees, Report and Accounts year ended 31 March 2022 List of Trustees, Senior Management and Advisors Foundlng Patron Cardinal Basil Hume Royal Patron HRH The Duke of Cambridge Patron Cardinal Vincent Nlchols Chalr of Trustees Michael Kelly FICRS, FRSA Board of Trustee5 Vlctoria Bevllacqua.Stephenson Sr Elleen Glancy Kevln Hyland Chrlstopher Morris (Chalr of R15k and Audit Commltteel Rolsln Murphy (Deputy Chalr Antonlo Orlando Dr Iram Sattar (Chalr of Cllent services Commlttee) Chrlstopher Wllllams (Treasurer, Chalr of Flnance Committee) Company Secretary Jane Sandeman ] THE PASSAGE tts ending hotnelessness Trustees, Report and AccoLJnts year ended 31 March 20?2 Senior Mana8ement Tearn Michael Clarke Chief Executive Emma Noble - Dlrector of Income Generation and Communicatlons Jane Sandeman Chlef Operatlng Officer Jenny Travassos - Dlrector of Servlces and New Developments Prlnclpal Bankers HSBC Belgravla Branch The Peak 333 Vauxhall Brldge Road London SWIV 1 EJ Sollcltors Pothecary Wltham Weld 84 Eccleston Square London SW1V 1PX Audltors Sayer Vincent LLP Invlcta House 108-114 Golden Lane London EC1Y OTL Addre55 of charity and registered office The Passage St Vincent's Centre, Carlisle Place London SWIP 1NL Telephone 020 7592 1850 1 Fax 020 7592 1870 Email info@ .uk I Website www. assa e.or assa e.or Charlty registration number 1079764 | Company number 03885593 ] THE PASSAGE to ending hornelés5ness TrLlStee> Report and Accounls year end-d 31 hAarch 2022 About The Passage Vision Our vision is of a society where street homelessness no longer exlsts. and everyone has a place to call home. M1551on Our mission fs three.fold: 1) Preventlng street homelessness by intervening qulckly before people reach crlsls point. 2) Ending street homelessness by provldlng Innovative and tallor-made services that act wlth both compasslon and urgency. 3) Advocatlng for those who feel they are not heard by ampllfylng their voice to brlng about real systemlc change Ethos The Passage takes Its values and ethos from the teachings and example of St. Vincent De Paul, a Chr15tlan and socfal reformer who co-founded the Daughters of Charity Sn 1633. Vincent beLleved In actlon rather than words and In hands-on setvlce to vulnerable people. As a Vincentlan organisation, The Passage strlves to be incluslve, encompasslng a dlverse and rlch culture from our clients, volunteers, staff, supporters and partners. We seek to be a place of hope, aspiration, change and innovation, underplnned by values that reach back over 400 years. Values We a551St people who have experlenced homelessness to reallse thelr own potentlal to transform their lives. We act with compasslon and klndness. We are a voice for change and justice. We bulld relationships based on trust. We respect each other. We are stralghtforward in all our dealings. We believe in practical hands-on hard work. We collaborate across all sectors of society. ] THE PASSAGE to endin9 homelessne55 Tru5te?s' Report and AccoLlP.ts year ended 31 hlarch 20?2 Chief Executive and Chair's Statement The Passage's vlslon is of a society where street homelessness no longer exfjsts and where everyone has a place to call home. During the pandemic, we saw that when society truly comes together to tackle an issue - such as with the Everyone In scheme - our vlslon is In fact achievable. Over the past year, we have spent time reflectlng on thls and testing new ways of supporting people who are homeless. Much of this learning has led to The Passage adopting new approaches, as well as piloting programmes such as our No Night Out model, which provides immediate help to those in crisis through acce5S to emergency accommodation and wraparound support. The results from our pilot show that 75% of those who used our programme have moved into permanent accommodation which they are stlll sustaining and No Night Out has now evolved Into an established service. A major achievement In the last year ha5 been creatlng and developing our Theory of Change, whlch can be found on page 12. Thls means that The Passage now has a robust method to clearly capture and demonstrate our Impact. We are very proud of the outcome5 that our amazing staff and volunteers have achieved, often under challenglng circumstances, and of course those who use our services, who never fall to insplre with thelr courage and resilience. In particular, we would Ilke to pay tribute to our Experts by Experlence panel, who help to ensure that our seryfce delivery, strateglc dlrectlon and influenclng work are delivered wlth those we support, not to those we support. You can find our outcomes Ilsted on page 8. The Passage also launched a £9 milllon capltal programme to refurbish our Passage House assessment centre, provlding 37 en-suite bedrooms, and to create a brand-new residentlal project, Bentley House, whlch will have 20 self-contalned flats and provlde 'forever' homes for people who have no other viable move-on option. These works wlll be completed autumn 2022. At a strategic level, we have harnessed our convening power to brlng together key cross- sector stakeholders to influence policy and practice and advocate for system change. In particular, our partnerships with other charities, central, regional and local governfflent has resulted in more effective and joined-up winter provlslon for those on the streets. Also, our pioneering work to bring about 5yStemic change regardlng the links between modern slavery and homelessness has had a major impact. We are fortunate that our vltal frontline work is underpinned by highly efficient systems and a strong governance structure. We remain commltted to measuring and sharing our impact and developing quality standards across all that we do. We a150 renew our commitment to Equality) Diversity and Inclusion and earlier this year, we establlshed a People, Performance and Culture Committee to support and guide this commitment. ] THE PASSAGE to ending homelessness Triisteg- Report and AccouiiFs year ended 31 hl,Iicl 20?2 We are very grateful to our loyal supporters and funders who help make the world of difference and enable The Passage to continue providing services to those who need us most. Unfortunately, wlth the ever-growing cost of living crisis, we fear that despite the incredible efforts and achievements of the last year, there is the potential in the coming months for street homelessness and destltution to rise to levels not seen in this country for many generations. We know that the only way to tackle this crlsls is by everyone working together - government, charities, corporates, community groups and individuals. As we move into the 2022123 financial year, we will launch a new three-year strategy called No Going Back. It would be a tragedy to lose the momenturn and progress already made as seen with the success of the Everyone In scheme, and we remain commltted to playing our part to work with everyone in our society to end street homelessness. In 21st Century Britain, street homelessness should not exist and it certalnly should not be Increaslng agaln. We hope you wlll continue to support The Passage to ensure that there is a place of securlty and safety for everyone who comes to our doors in need. Mlck Clarke, Chlef Executive Mike Kelly, Chair of Trustees ] THE PASSAGE to ending homelessness TrLI)tee5' Report and Arcounts i]ear end•d )'1 hlarch 2022 Peter's Story -Lynsey at The Passage helped me turn my life around. For the ffrst time I felt believed and Ilstened to. She gave me hope to see a future for the flrst time. Peter turned up at The Passage two years ago very frightened. He Jumped at every noise. It was quite unusual to see a 50-year-old man behaving childlike and he looked so timld as well. You could just tell something bad had happened to him. He was met by a member of our Rough Sleeping team who did an initial assessment and found out that after an abusive childhood, he'd taken a Job with a travelling family, was never paid, and was held captive for many years. Peter was forced to do a lot of horrendous crlmlnal activities. He had a very traumatlc Ilfe. After an Injury he went to hospital and when he was discharged, he was found by the police and then referred to The Passage. We supported hlm to be referred Into the NRM, which is the National Referral Mechanlsm. Most countrles In the EU have slgned up to the European Conventlon on trafficklng human beings. It means that these countrles must provlde an agreed level of support to anyone who's a victim of modern slavery and trafficklng. Withln the UK, the NRM Is our system for providlng that support, but also for Identifying vlctfms. Peter was then able to acce55 support, includfng a safe house, financial advice and solicitors. We also supported him Into a mental health hostel whilst findlng him suitable housing which took us over two months. Within a few weeks of being there, he secured a room in a shared flat with three other people. He jolned a gym. When we went to ￿Sfit hlm thls summer, he was beaming and In a very positive mood. He enjoyed showfng off hfs new home and had so much more self- esteem and confidence. He's been helping a friend renovatlng flats and he sald It made hlm feel important agaln. He is startlng an English course at college in September, he thlnks this will be good to get him through the colder months. He goes walklng on the beach every day and said he enjoys the fresh alr. He said he sleeps well now that the flashbacks have stopped, and he Isn't afraid of things anymore. l asked him what had changed - he said it wa5 being by the sea and havlng clean alr and hope. He said moving to the coast is the best thing he has ever done, and he is movlng forward with his life. I reminded hlm of when he told me that he was the unluckiest man alive and nothing good would ever happen to him. He said he doesn't belleve that anymore and hls luck has turned. He said he will never forget The Passage as we have changed his Ilfe. Name and details have been changed to protect his identity. ] THE PASSAGE to ending homelessness 'ear eni Il ?01 I 40th Anniversary Afternoon Tea and Awards In September, we marked our belated 40fh anniversary with a special Afternoon Tea and Awards to recognise the outstanding achievements of Passage clients and to thank our wonderful volunteers, staff, trustees, partners and supporters. Originally planned for 2020 and postponed due to the pandemic, the event was held at our Cathedral View Conference Venue and rooftop garden and attended by our Royal Patron, The Duke of Cambridge accompanled by the newly-appointed Lord Chamberlain. The Duke spent time chatting with guests and presented the two client awards before making a short speech. Having visited The Passage many times since he was a child, The Duke spoke of his great affection for the charity. He said "every time I come here, l am touched by the warmth and friendliness, and the dignity and respect you to show to everyone who comes through your door. l om always so Impressed to see ond hear the difference that The Possage makes to the Ilve5 of people who are experiencing homelessness. Thank you to everyone for your continuou5 work. The event received wide medla coverage and enabled us to mark an important milestone in our history. Below 15 a photograph of HRH The Duke of Cambridge with our special award winners and our award presenters. IL 11 ] THE PASSAGE to ending homelessness Trusteei Repori and Accounts year ended 31 i¥larch 2022 How We Helped in 2021- 2022 418 people moved into accommodation 643 people prevented from becomlng homeless by the Housing Solutlons Service Team 75 people from Passage House moved into accommodation 73% of Passage House clients posltlvely moved on 99 people received support from Newman Street 33 people f rom Newman Street moved Into their own home 17 people received support from Montfort House 3 people from Montfort House moved on 31 Home for Good partnershlps formedlmaintained 21 people from Home for Good had support to malntaln their tenancy The EfE team facllitated 58 new Jobs (for 42 people) 103 were helped to reduce debtslnavigate benefits 491 people were helped by our Health Team after being located by our Communlty Intervention Team 177 people moved into accommodation, of which 76 slgned tenancies wlth the Private Rented Scheme Team 46 people reconnected 41 people found NRPF route away from streets 10 people had their Immlgratlon status resolved 55 survivors supported by our Modern Slavery team Review of Organisational Objectives 2021 2022 Develop and Implement our co-production strategy across the organlsatlon and further establlsh access to cllnlcal psychologlsts across our services. We appolnted an Experts by Experience lead to facilitate the development of our new co- production programme and have formed an Experts by Experience Board whose membership Includes people with lived experience of homelessness, both current and former clients. Together, members of the Board have created a co-production strategy, enabling them to influence how our services are designed and delivered. The Board a150 conduct peer research, slt on staff intervlew panels and chalr focus groups. We have mental health professionals operatlng across several of our servlces and residential projects. We have also implemented a refreshed reflectlve practice programme with psychologists across all services teams. ] THE PASSAGE to ending homelessness Trustees, Reporf and Accounls year ended 31 Imarch 20?2 Develop our Theory of Change, utili5ing our new Inform system to capture the impact of our work In order to further develop our servlces. Followlng an externally facilitated consultation process to gather feedback from staff, trustees and governance committees and people using our services, we developed a new Theory of Change model (see page 12) to capture and demonstrate the impact of our work. To support this, we implemented a new database, outcomes framework and quality assurance programme to proactively measure our impact. This has increased our ability to respond to emerglng trends, thereby continuously Informing how we develop existing and new services. Roll out our Values and centrallsed Inductfon trafnlng programme for all new staff We piloted a new values-led centrallsed induction programme for new staff. Thls was evaluated and following positlve feedback, the programme has now been formally established with regular induction days for all new starters. Bulld on the learning from the Covld-secure day servlces pllot to develop a new day servlces model, ensurlng hlgh quallty and measurable outcomes. Following a comprehenslve review that included consultation at every level withln the organlsatfon and In Ilne with our learnings from the pandemlc, we completed the rollout of a new servlce dellvery model In our Resource Centre under the umbrella of Community Services. Our refreshed model Is focused on worklng with a clear sense of urgency to end homelessness for good. It includes a wide range of services tailored to the needs of our cllents, Including Advice and Advocacyi Employment Strategy, Prevention and Partnershlps, Houslng Support Services, Prlmary Servlces and Health and Wellbeing. Comrnence the refurblshment of Bentley House to create a new accommodation project for The Passage; and Passage House; to ensure the physlcal surroundlngs meet the hlgh standards of the servlce provlded. Work commenced on our capltal refurbishment programme. Passage House has been transformed, offering 37 en-sulte rooms for those coming off the Streets and enhanced facilities to help them into sustainable accommodation. We are also carrying out a major refurbishment of Bentley House, creating 20 new flats to become a home for those who have been in the temporary and supported housing system for many years. Passage House works were completed in August 2022 and Bentley House wlll be completed In November 2022. Our housing services are governed by quality and governance standards set by Passage Housing Services, our newly formed Registered Provider, in line with the Regulator for Social Housing's guidance. ] THE PASSAGE to ending homelessness l-rLlStee> P,-port ind Accounts year ended 31 Marcri 20?2 Continue to dlverslfy and grow voluntary Incorne, and develop new statutory income opportunltles. to meet organisatlonal needs and the Increasing demand for services The ffnaL year of our current three-year Fundraising strategy coincided with the aftermath of the pandemic, as our society began adapting to a 'new normal.. In 2020-21, we were fortunate to exceed our voluntary Income budget, partly due to increased emergency support and one-off donations in response to the pandemic. But W7th these income Streams no longer available and many months of delays and disruption, it has been a tough year for fundraising - something that has affected the sector as a whole. We are therefore extremely grateful for the generosity shown to The Passage thls year by so many - both existing and new Indlvidual supporters, corporate partners, charitable trusts and foundations, schools, churches and community groups. Without this, we slmply would not have been able to achleve the outcomes hlghlighted on page 8. Desplte the challenges, we have ended the year in a strong financial position. Since 2019, we have grown income by almost 50% on the prevlous 3-year period, largely due to the recrultment of a professlonal fundraising team, investment in marketlng and communications resources and the Introduction of new products, channels and activltles which has also helped to create a more balanced fundraislng portfolio. A new three-year Fundraising and Communications Strategy was developed during the last quarter of the year. In our local area, The Passage was successful in several appllcatlons for funding from the government's Rough Sleeplng Inltlative Tn partnershlp with Westmlnster City Councll. for example, we have expanded our No Night Out project and secured revenue funding for Bentley House. We have also successfully secured long-term contracts to deliver servlces focuslng on modern slavery and Home for Good in London, enabling us to widen our reach and provision outside of Westmlnster. Develop a strong and clear brand and communlcatlons plan for The Passage to engage effectively with stakeholders, demonstrate the success of our work, ensure people understand what we do and help us achleve our organlsatfonal obJectlve5. Our marketing and communications activltles are focused on provld1ng support for both our fundraising campaigns and our wlder organisational objectives, helping to build the proflle of The Passage and reach new audiences. We Invested in our digltal marketlng across various channels to help retain and engage new and existing supporters and began to develop a dlgital content strategy to attract new audiences to The Passage. As part of this, we implemented an external audit of our website which resulted in some major changes and improvements to the content and user experience. We also created new diverse and inclusive content for our social media platforms focuslng on our services and the positive outcomes achleved by our frontline teams. io ] THE PASSAGE to ending homele55ness Truslees, Reporl and Accounts year ended 31 Marcn 2022 Our regular mailings to our warm supporters have been further developed in terms of the content, imagery and design which has made them more engaging and accessible. The Passage marked Its 40th anniversary in 2020, which of course coincided with a year of lockdowns and restrictions and a planned flagshlp event - the inaugural Passage Awards - was postponed to later in 2021. The event took pLace in September 2021 attended by our RoyaL Patron, HRH The Duke of Cambridge, wlth a reception for our many loyal supporters and special Awards Ceremony to recognise the achievements of our clients, volunteers and staff. The event attracted significant attention on social media, with an Instagram post from Kenslngton Palace receiving over 161,000 likes and over 8CM) comments. We also held a special Mass at Westminster CathedraL to mark the annlver5ary. Expand The Passage's Home for Good model natlonally, and share our learnlng around the Issue of modern slavery and homelessness internatlonally. In partnershlp wlth SHP, another homelessness charityj we expanded our Home for Good service across multlple areas of North London and hope to further develop this service to have a larger presence in 2023124. We began a programme of work with partners in the anti.slavery sector and government to develop a national toolkit to support charlties, reglonal and local government to address the links between homelessness and modern slavery. Our work has focused on achieving a step-change In the assessment and support offered to potential victims of modern slavery and trafficklng who are experienc1ng homelessness. Carry out a follow up staff survey to measure progress slnce the prevlous survey and contlnue to develop support and well-belng structures for staff and volunteers As part of our Theory of Change consultatlon exerclse and pollcy review workshops, extensive feedback was received from staff wh7ch has been Invaluable to both inform support and well.being structures and improve communlcation mechanisms across the organlsatlon. li ] THE PASSAGE to ending homelessness TrLlStees' Pieport and Accoun l5 year ended 31 Nlarch 2022 The Passage Theory of Change In March 2022, The Passage completed work on a new Theory of Change to capture and demonstrate the impact of our work. The process took several months and involved consultation with staff, volunteers, trustees and people wfth Ilved experience of homelessness. Our Theory of Change Informs our strategy and shapes our services. P•opl• strenglhen exlrtl •nd galn n•w ikllls I We provide accommodation. support and communlty servlces Th•y •cc•s• ih• ontlM•m•nt• ' and iiipport that ar• for th•m People who us• our 5ervlce$ help to shape our sorvi¢•s P•opl• •xperlence po•ltlv• ch•ng .'We Ilsten to, and provlde a platlorni tor. people wlth Ilyed •XVfi•n¢• E•ch p•riorfs Journey li unlqu• Our worlt Is Infornied by what we hèar a bvlng togoth•r partners and ',èeclslon-makers to .'Èollaborate based n evldence People thilv• In th91r hom•s 8nd1Sves to go for support11 n••d•d lor th• fu￿1• ' Influence publlc pollcy and s¢rvlce dellvery Improvements Home5essnes5 is ended Houslng is 5UStained Homelessness is prevented 12 ] THE PASSAGE to ending homelessness Tru)tees' Rpporl and Accounls yeir ended J'l Imarch 20?? Brenda's Story Brenda came to The Passage in March. She approached Westminster Housing Options who contacted Janet, Irish Person's Support Worker at The Passage, to provlde additional support. Brenda was placed In temporary emergency accommodation on the same day because she was fleeing domestic violence. The followlng day, Janet recelved a text from Brenda to say that she no longer needed our support because she has reconnected with her family. Janet called her immediately. Brenda assured Janet that she was ok. However, it later transpfred her violent ex-partner had found her and had taken her to Scotland. When 8renda next made contact, Janet invited her back. Janet organlsed emergency accommodation but this tlme in a project near to The Passage to keep her safe. Brenda was provided vAth clean clothes, tolletr1es, and food vouchers as she had no source of Income. Janet helped Brenda to create a new email address and to apply for Unlversal Credit. This process took some time as Brenda had not previously applied for beneflts and did not have a national Insurance number. Brenda was referred to our In-house Domestlc Vlolence worker for support who then connected her to several groups at The Passage where, over time, she made some supportlve friendshlps. Janet conducted dallywelfare checks on Brenda and Ilnked her to our Health and Wellbeing team as well as our Modern Slavery team because Brenda had endured years of being physically, *xually abused and belng kept prisoner by her husband. The Modern Slavery team estab115hed a Ifnk with one of the commissioners who referred Brenda to a safe house. Brenda was also Introduced to a counsellor as she had suffered abuse during her childhood and her years with Ilving with a violent husband. She had photographs of her injuries and has been hospitali5ed on more than one occasion. Brenda expla1ned about the travellers, communlty whlch she belonged to and doe5 not accept divorce. Even her family advlsed her to stay wlth her vlolent husband despite the numerous injuries. It made It very difficult for her to leave. Brenda has proved to be artistic and took part in the art groups and was glven materials so that she can create art to occupy her time. She finally recelved her benefits and was able to buy clothes, tolletries, and food for herself. Staff at the safe house she moved to made an extra effort to make her feel at home. Brenda Is now safe and Is worklng hard to establlsh a new life. Name has been chansed to protect the client's identity. 13 ] THE PASSAGE to ending homelessness Trustees, Report and Accounts year ondad 31 March 2022 Review of Volunteering Volunteering activity was affected during the first two quarters of the year by contlnuing soclal distancing measures and the cap on the number of people permitted in the Resource Centre. With the creation of the new Community Services model, three new volunteer roLes were developed Cllent Resettlement Welfare Volunteer, Service User Researcher Volunteer and Database Adrnlnlstrator Volunteer. We have plans to develop addltlonal volunteer roles to support our new Employment Strategy Team. In 2021 2022: 83 individuals volunteered V*lth The Passage, completing a total of 6,462 hours. 81% volunteered for at least 20 hours. 21% volunteered over 100 hours wlth the highest numbers of hours volunteered by an indlvldual being 703 hours. The most popular way that applicants found our volunteering opportunltles was dlrectly vla The Passage website, followed by a general web search and through a current or former staff member or volunteer. Before the pandemlc, most of our volunteer applicatlons were from people aged between 63 to 82. Thls year, the largest proportlon of new volunteer appl1cants has come from the 23-32 age group, which means we are appealing to a younger audience. It is encouraging to see that the number of volunteerlng hours In March 2022 is one of the highest in the year as this indicates growth for 2022123, which allgns v41th the development of new volunteer roles. 14 ] THE PASSAGE to ending homelessness Trustees, Report and Accounts year ended 31 March 2022 James, Story - A Full Circle Journey James first came across The Passage in 2005 after his parents died. He travelled to London to get away from his place of blrth. As a day client of The Passage for several months James eventually became a resident at Passage House our rapid-response facillty. After nine months of living at Passage House, James was supported into independent living and received help to get back into work. When James retired in 2013, he started volunteering at The Passage as a Cllent Ambassador. A year later he moved over to help at Passage House - and the rest wa5 hlstoryl Working as an Assessment Hub Receptlon Volunteer, James Is one of four people who work on the desk. taking calls, handllng post, letting resldents in and out, and havlng a chat wlth them when they want to. He volunteers around eight days per fortnlght and flnds1t a great way to keep hSs mind active. Being able to share hfs experiences wlth some of the resldents and being able to act as part of a team wlth the rest of the staff 15 something James ffnds extremely fulfilling. When asked what he would say to anyone who Is thlnklng of volunteerlng at The Passage, James said: "It's a worthwhlle experlence. If you are younger and are looking to flnd work, this would be magnlflcent work experience placement for you. For anyone who Is interested, it's great to feel part of the team and when I've been away and come back, they say 'we've missed you. which Is lovely. They know that when l am here, they can leave me in charge of the reception wlthout havlng to oversee what I do. Sadly, followins a short illne55, James passed away in the summer. He is sorely missed by The P05sage and in particular Passage House staff, volunteers and clients. 15 ] THE PASSAGE to ending homelessness Trustees, R>port and Accounts year ended 31 March 2022 Organisational Objectives 2022 - 2023 1. Explore and establish new service development opportunltles to help more people to end their homelessness. 2. Continue to grow and divers?fy (xjr Income. 3. Complete the capltal works programme for the refurbishment of Passage House and Bentley House. 4. Implement a more acce55ible and streamlined set of policies and procedures across the organlsation. 5. Moving out of the pandemic, further develop a 'one organlsatlon, culture by empowering everyone to contribute to improvlng our Internal communication and celebrating our rich dlversity. Capture and measure our Impact in line with our theory of change model, infrastructure requlrements and outcomes framework. 16 ] THE PASSAGE to Ènding homelessne55 Trustees, Report and Accounts year end•d 3.1 Marcn 202? Thank Yous and Special Mentions The Passage is proud to have become a Registered Housing Provider: Passage Housing Services, and would like to thank all staff for their hard work in making this possible. The Passage Is very fortunate to be supported by many corporate businesses, trusts, foundatlon5 and individuals. We are hugely grateful to them all. The funders Ilsted below have been mentloned due to the slze of their donation or as a special condition of their support. 29th May 1961 Charitable Trust 31 Group plc Capltal Group Chestertons Foundatlon HSBC John Swlres 1989 Charltable Trust Landsec Manchester Square Partners Nelsons Perrlgo Foundation PIMCO Foundation Qube Research and Technology The National Lottery Community Fund The Northbank Buslness Improvement Distrlct The Thompson Family Charitable Trust Tompkfns Foundatlon TR Wyles Charftable Trust Trust for London Tudor Capltal Reed Foundation Victoria Business Improvement Dfstrlct WeLlin8ton Management Flndlay Park A special thanks also goes to Greater London Authority, The Headley Trust and Julia and Hans Rausing Trust for their kind contrlbutlon towards our Capital Appeal for Passage House and Bentley House. 17 ] THE PASSAGE to ending homelessne5S TrLI slees, Report and Accouiits year an,J-d 31 hlarch 2022 Adam's Letter of Thanks Adam came to The Passase recently and was supported by our new No Night Out service which was set up to immediately intervene to prevent someone from having to spend even one night on the Street. Since then, he has been supported by us to find and settle in his own private rented accommodation. Adam wrote a moving letter to his case worker, Salma, which he is hoppy for us to share. 'Hello Salma, Where do you start and where (b you end with something like thisP The Passage Is a speclal place. It glves real meanTng to the need to contlnually learn. It's that dedication, that disclpline. I feel It provides the very best that London has to offer. The Passage brings clarity and a freshness, It's a new klnd of politics leading from the front, unlted in what they know is morally rlght. I felt the Issues that affect a person, satisfactfon would be dealt wlth quickly and efficiently, It promotes best practlse. The support team help their cllents to deal wlth a huge quantlty of Ilfe Implicatlons. Salma, you help your cllents take control of thelr own story, supporting people at some of the most important moments in their lives. When they are dealing wlth big Ilfe declslons, you help them to understand their lives. I could see the direct and positive impact you were having on someone's life. Helplng them to get their story across. The Passage, thls place Is amazing. It's a fasclnating change in terms of homeless people's perceptlon of themselves. You could say being homeless is a difflcult route and The Passage is a beautiful de5tinatlon. Talking things out ￿th you, I thought for the first tlme that someone's actually agreed with what I've thought, and I've not had to battle at all. Whereas before l experlenced your help, I was struggllng for something that really didn't have to be a struggle. Salma, l acknowledge the courage you have and I have huge respect for the type of person that you are, giving as much as you can In keeping with your love and duty. A true professional - consistently achleving hlgh standards In both the work you do and the way you behave, and as a result I'm finding I'm the kind of person I was supposed to be. What I mean is through The Passage I became a better personi you brought that out In me. There's a great deal of sfgnificance around working with someone like you, recelving such care and emotional support. You are my greatest champion. I trust you 100% and I feel without you none of this would have happened in quite the way it did. By that I mean so successfully. Thank you Salma. Thankfully yours, Adam" 18 ] THE PASSAGE to ending homelessness Trusleey R-port and Accounls >ear ended 31 hlarch 2022 Financial Review Flnancial results for the year In the current year there was a surplus of £2,326,294 (2021 £617,235). Th15 was primarily generated by the inflow of restricted income which was applied to the capital project of refurbishment of Bentley House and Passage House. If the impact of the restricted income were removed (E3,001,500) and the additlonal revenue costs incurred for the project added back (E687,001), the net position would have been a surplus of £11,795, whlch is more in line with the expectation of a post-covid recovery positlon for the Charlty. Income from charltable actlvltles - Statutory bodles, grants Statutory income was £2,579,839 In 2022 (£2,026,562 in 2021.1 An analysis of this funding, and its uses, Is In notes 19a and 19b. Statutory income (excluding capital grants) forms 24% of the total income of The Passage. Fundralsln8 donatlons and legacles The Passage relies on the generosity of our supporters to provide resources whlch encourage, inspire and challenge people who are homeless or have experlence of belng homeless to transform their Ifves. Our supporters are at the heart of so much of what we do and thls year more than ever we are truly grateful to the many individuals, companles, trusts and foundations, churches, schools and communlty groups whose donations make our work possible. Due in large part to resilience and flexibillty as the Charity emerged from the pandemlc, donations (excluding legacies) grew by £1,008,844 to £5,242,79512021: £4,233,951), a signlflcant part of which was a result of donatSons to support the refurbishment of Bentley House and Passage House. The cost of ralsing donatlons and legacies was £714,282 {2021 . £703,749). We continue to invest in new staff posts, our supporter database and other marketing resources as part of a phased approach to building a professlonal team of fundraising and communlcation specialists to ensure that The Passage remains a sustainable organlsation. Expendlture Employment costs declined slightly as 65% of total expenditure for the charity (2021: 66%). Details of expendTture to deliver our services are given in note 5 of the financial statements. 19 ] THE PASSAGE to ending homelèssness Triistee5' Report anJ AccoJnls ¥'ear ended 31 .March 2022 Details of all restricted and unrestricted funds are given in note 19 of the financial statements. Desfgnated funds and reserves The Board is aware of the need to malntaln adequate reserves to ensure that the charity's work can be continued. Designated funds are set aside to enable the Trustees to develop speclflc areas of charitable work and to meet potential future obllgations. In addition, the Board has to ensure that adequate resources are available to avold disruption to the 5ervlces for peopLe who are homeless or have experience of being homeless. We are fortunate that our voluntary income contlnues to grow and we have a regular conslstent 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 thls will be maintained in the next two to three years. We have three maln alms in the next three years: 1. To maintaln and improve our current provlslon 2. To complete the £9m project to refurblsh two of our resldentlal properties 3. To embed a new 3-year strategy (2022-251, investlng in quallty services with Improved underlying processes and systems. To ensure that services can be maintalned In the short term, the Board has set aslde a deslgnated contlngency fund of £1,750,000. There are also general undesignated funds of £2,149,636. Together, these total £3,899,636 whlch represents six months of running Costs. The Board wlshes to reserve between 3-6 months of runnlng costs In a contingency and general reserve combined. £2m of reserves are designated to help fund the refurbishment of Passage House and Bentley House whlch is budgeted to be £9m. £187,455 has been designated to strategy investment costs. These funds WILI be used to develop and Implement the 2022-25 strategy for The Passage. Golng concern During the Covfd 19 crfsls, The Passage wa5 able to continue provldlng residential accommodation throughout, as well as a food hub for street homeless In hotel accommodation in Westminster. We continue to support our clients to ensure that they can find accommodation and make it their home. We have created new models for service delivery and continue to attract funding both voluntary and statutory to help us dellver those services. The trustees have Set aslde a level of reserves to enable us both to effect those changes and to ensure that we can continue to operate effectively in the changed and changing landscape. The trustees are reassured that the actions they took during the crlsls enabled the charity to weather the storm and have not Impacted its ability to operate as a going concern. 20 ] THE PASSAGE to endin9 homelessness TrL15I-es' R?portr Lind ACLOIJ nts year ended 31 March 202? During the year The Passage commenced a Capital Refurbishment Programme. This was to ensure that Passage House was future proofed in Its Infrastructure, and that its rooms were en-suite to protect resldents during the current Covid situation and for any future pandemics. Bentley House is also being refurbished. These are twenty units in the heart of Westmlnster which will be available to support people who have been homeless to have somewhere they can call home. The project cost Is £9m. The project started in February 2022 and is scheduled to be complete in November 2022. It is expected to be funded by monies ralsed for capital funding only and will not Impact on operatfng Income. Refurbishment programme In 2020 The Passage bought back the lease for 20 affordable houslng units, Bentley Hou*, located on the top two floors of St. Vincent's Centre, g?ving the opportunity to provide move on accommodation from our Houslng First project (Montfort House> and accommodatlon for those coming off the streets. The lease for Passage House, our rapid-response assessment centre, was returned in March 2021 after belng let to a registered houslng associatlon for the past 25 years. The full results of operating Passage House are included In these accounts. The cost of acquisition a￿d refurbishment for both refurbishrnent programmes Is estlmated at £9 milllon. Governance and Management structure Passage 2000 ("The Passage") is incorporated in England as a company limited by guarantee, company number 3885593. The company is reglstered with the Charlty Commisslon, reglstered charity number 1079764. For Companies Act purposes, the members of the Board of Trustees are the dlrectors of the company. The financial statements comply wlth the Charftles Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reportlng by CharTties: Statement of Recomrnended Practice applicable to charities preparlng their accounts in accordance with the Financlal Reportlng Standard appllcable in the UK and Republic of Ireland (FR5 102) (effectlve 1 January 20151. Board of Trustees and Commfttees Under the Articles of Association, the election of the Board Ss fn the power of the members of the cornpany at the Annual General Meeting. The Slster 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. 21 ] THE PASSAGE to end ing homelessness Trustees, Report and Accounts year ended 31 Imarch 2022 No member of the Board of Trustees received any remuneration or reimbursement of expenses during the year ended 31 March 2022. The company has purchased insurance to protect the charity f rom any loss 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 cllent services, finance, and rlsk and audit. They also assist the Board in monitoring the work of the company in these areas. During the year the Board set up a People, Performance and Culture Committee to assist the Board through Its oversight of the Charity's People strategy. The Board has adopted a formal code of good governance - Good Governance - A Code for the Voluntary and Community Sector whlch can be downloaded from the Code Steering Group webslte https: I1v￿ww.Char7tygQVernancec0de.orglenlPdf. Selertlon and tralnlng of new Board members In Ilne with The Passage's diverslty and equality pollcy and procedure, new Board members are recrulted with approprlate skills and backgrounds following a regular assessment of the experlence of current Board members and the areas in which additional expertlse Is required. New members of the Board and Its Committees see all aspects of the work of The Passage at flrst hand and have one-to-one meetings with senior employee5. All Trustees are encouraged to undertake training, where necessaryp to enable them to dlscharge their responsibilitles more effectlvely. Subsldfary companle5 Passage 2000 has tv￿ fully owned subsidiary companles. Passage Housing Services (PHS) fs a company Ilmlted by guarantee, company number 9337431, charity number 1161696, and a registered provider of Social housing number 4842. During the year 2020121, the leases for Bentley House and Passage House were assigned to PHS from other reglstered social landlords. Passage 2000 owns the freehold of both propertTes. Passage Trading Services (PTS) Is a company limited by shares, company number 9874011. PTS commenced trading activities in support of Passage 2000 in 2016117. The main activity of Passage Trading is the operation of Cathedral View conference venue, located within St Vincent's Centre. 22 ] THE PASSAGE to ending homelessnes5 TrLlStees' RsJporL and Arcoun Is ljear ended 31 March 2022 Other Information Publlc beneflt statement The Trustees confirm that they have complied with their duty under *ctlons 4 & 17(5> of The Charltles Act 2011 to have regard to the public benefit guidance published by The Charity Commission. This report includes a detafled description of the activities undertaken by the charity during the year to further its charitable purposes for the publlc benefit. The Board has referred to the Charlty Commission's guidance on publlc benefft when revlewing its strategy and objectives, and in planning The Passage's future actlvlties. The assistance glven to people who are homeless Is proportionate to their needs. All members of the Board, Committees and senior employees complete an annual confllct of interest declaration. The Board has referred to the Charlty Commission's guidance on public benefit and has planned The Passage's actlvlties to avo1d the granting of any prlvate benefit other than one that is purely incidental to carrylng out The Passage's obJectlves. The Board believes it has followed the Charity Commission's guldance In this area. Related partles The subsldiary companies Passage Houslng Servlces and Passage Trading Servlces are both related parties. The Admlnlstrator of Westmlnster Cathedral and the Sister Provlncial of the Slsters of Charity of St Vincent de Paul, by vlrtue of their right to board membershlp and to each appoint a board member are also both related parties of the company. Full details of transactfons and balances wlth these related parties are shown In note 9. Pay poltcy for senlor employees The Board of Trustees delegate responsibility for the day-to-day operations of the charfty to the Chlef Executive and Senlor Management Team. The pay of senior staff is reviewed annually, and any Increases are applied In Ilne with the cost of living applled as part of the NJC salary Scale. The Directors benchmark agalnst pay levels In other similar charitie5. Trustee5 and Commlttee members give their time freely and none have received remuneration or reimbursement of expenses in the past year. 23 ] THE PASSAGE to ending homelessness TrL15tees' Reporl and Accounl5 yea,, endtsd 31 March 20?? Safeguarding of vulnerable adults The Passage has a safeguarding policy regarding vulnerable adults. The organlsation takes responsibility for identifyingy preventirig, investigating and responding to aLI allegations or incidents of abuse. If cllents 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 rlsks to staff and volunteers, and to cllents who use the servlce. The Passage's recrultment and selectlon process aims to ensure that those short-listed and selected for job vacancies have the skllls and experience that are relevant to the posts. Suitablllty Is tested by means of an application form, and a formal interview with panel of at least two senlor members of staff. The Passage obtains Disclosure and Barring Service (DBS) checks on all staff members or volunteers who may be working wlth cllents in unsupervised contexts. Llvlng Wage The Passage is an accredlted London Llvlng Wage Employer under a scheme organised by the Living Wage Foundation. Fundralsln8 Regulator The Passage is registered wlth the Fundrals1ng Regulator. We follow the Code of Fundraising Practice guidelines on best practlce and are compliant with current data protectlon leglslation. The safety and appropriate use of supporters, data is important to us and we wlll never share or sell personal details to another organlsatlon for their own use. We have not recelved any formal fundralsing complaints in the past flnanclal year and there have been no fundralslng compLlance Issues. All our fundraising actlvltles are carried out In-house by a team that is employed dTrectly 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 Fundraislng Practice which forms part of thelr Inductlon programme as well as monthly reviews. We do recelve support from volunteers who assist wlth publlc collectlons or coILection5 at Passage events and they follow the required standards with regard to handling donations. A dedlcated volunteer committee also supports our annual Night Under The Stars event. We follow the Code of Practice guideLines in relatlon to the fair treatment of all donors to ensure that they can make an informed declslon about thelr support. We take into account the needs of any possible donor who may be In vulnerable clrcumstances. 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. 24 ] THE PASSAGE to ending homele55ness Trijstees, qeportr and AccodnLs year end-d 31 Mirch 2022 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 contlnue to meet the needs of the company. The Risk and Audit Commlttee meets regularly and reviews in greater detail the risks to which The Passage 15 exposed and the approach of the senior management team to mitigate such risks. A risk reg15ter highlighting high, medium and low risks is malntained and regularly reviewed. this is a vltal tool in risk management. A risk-based Internal audlt approach Is in operation. The principal risk at present is the need to secure full fundfng for the £9m capital refurbishment project. Thls risk has been mitigated by the securing of the greater part of the funds, wlth the remalnlng element secured in principle, as at the balance sheet date. As noted elsewhere, the Board has designated a significant element of the general reserve to thls project which will ensure that any shortfall in capital funding can be met from the Charity's reserves. Risks relatlng to staff retention and development have been identified, and a new Head of HR and Volunteerlng Is to be recrulted in 2022-23. In addltion, a new People, Performance and Culture Commlttee has been put in place to advlse the Board on the management of these and other related risks that may arise, and effect any mitigatlng actions that might be required. Flnanclal rlsk management objectlves and pollcle5 The Charity uses financial instruments in its operatlons Including deposlts wlth banks, loans, trade debtors and creditors and recelvables which provide finance for the Charfty's operations. There is a rlsk arising from the need to malntain sufficient liquidity to meet Its Ilablllties as they fall due, and the movement in cash is analysed in full in the cash flow statement on page 34. Under the terms of the Memorandum and Artlcles of Associat1on, The Passage may Invest monies not immediately required for applicatlon to Its charftable objectlves In any Investments, securities or property, as appropriate. Surplus cash Is held In interest- bearlng deposits with UK banks and Invested in a charltable investment fund. Credlt rlsk The Charlty's princlpal 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 prlncipal credit risk arises, therefore, from its grants receivable, trade debtors and loan5 receivable. Outstanding balances are reviewed and monitored through effective credit control procedures. Ageing of debtors and recoverability is consldered and, where needed, provision is made as appropriate for slow payers. The performance of outputs is monitored to ensure conditions of the grant are fulfilled and that the charity is entitled to the funds. 25 ] THE PASSAGE to ending homelessness Trustees, Report and Accounts year ended 31 March 2022 Statement of Trustees, responsibilities The Trustees (who are also dlrectors of Passage 2000 for the purposes of company law) are responsible for preparing the Trustees, report and financlal statements In accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accountlng 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 charlty, and of the incoming resources and applicatTon of resources, including the income and expenditure of the charity for that period. In preparing these financial statements, the Trustees are required to: Select suitable accountlng pollcle5 and then apply them conslstently. Observe the methods and princlples in the applicable Statement of Recommended Practice (Accounting and Reportlng by Charltles) (the Charltles, SORP). Make judgements and estimates that are reasonabLe and prudent. Prepare the financlal statements on the golng-concern basss unless It Is Inappropriate to presume that the charity will continue in operation. The Trustees are responslble for keeping proper and adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity, and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the as*ts of the charlty and, therefore, for taking reasonable steps for the prevention and detectlon of fraud and other Irregularlties. Each of the Trustees conflrms that: So far as the Trustee is aware, there is no relevant audlt inforrnation of whlch the charity's auditor Is unaware; and The Trustee has taken all the steps that helshe ought to have taken as a Trustee to make himself /herself aware of any relevant audit informatlon, and to establish that the charlty's audltor Is aware of that information. Thls confirmatlon Is given and should be Interpreted in accordance wlth the provlslons of Section 418 of the Companie5 Act 2006. The Trustees are responsible for the malntenance and integrity of flnanclal information included on the charity's website. Legislation In the United Kingdom governing the preparation and dissemlnatlon of flnancial statements may differ f rom legislation In other jurisdlctlons. Slgned on behalf of the Board Michael KelLy, Chair of Trustees Approved by the Board on 27 September 2022 26 ] THE PASSAGE to ending homelessness Independent auditor’s report for year ended 31 March 2022 ## **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 subsidiary (the ‘group’) for the year ended 31 March 2022 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: - Give a true and fair view of the state of the group’s and of the parent charitable company’s affairs as at 31 March 2022 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended - Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice - Have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011 ## **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 . 27 Independent auditor’s report for year ended 31 March 2022 ## **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 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: - The information given in the trustees’ annual report, including the strategic report, for the financial year for which the financial statements are prepared is consistent with the financial statements - The trustees’ annual report, including the strategic report, has been prepared in accordance with applicable legal requirements 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. 28 Independent auditor’s report for year ended 31 March 2022 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: - Adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or - The parent charitable company financial statements are not in agreement with the accounting records and returns; or - Certain disclosures of trustees’ remuneration specified by law are not made; or - We have not received all the information and explanations we require for our audit. ## **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 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. 29 Independent auditor’s report for year ended 31 March 2022 ## **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: - We enquired of management and the finance, audit and risk committee, which included obtaining and reviewing supporting documentation, concerning the group’s policies and procedures relating to: - Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance; - Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud; - The internal controls established to mitigate risks related to fraud or noncompliance with laws and regulations. - We inspected the minutes of meetings of those charged with governance. - We obtained an understanding of the legal and regulatory framework that the group operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the group from our professional and sector experience. - We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit. - We reviewed any reports made to regulators. - We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations. - We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. - In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business. 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. 30 Independent auditor’s report for year ended 31 March 2022 ## **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)** ## 24 November 2022 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 31 Tru5tees' Report and Accounts year ended 31 March 2022 Consolidated Statement of Financial Activities (incorporating an income and expenditure account) Passage 2000 (operatlng as The Passage) For the year ended 31 March 2022 2021 Total Unr•sir*l *iirkred T•tyl IhxTeStthd R•sirfM•d OoThaiions and 3.557.985 2,011,500 3.156.675 4.107.966 Giini• 5L41WQry bJdl•s Ar 79IJ71 2.026.562 2.026,562 617,473 79.652 141.626 4.049 790.371 78.792 617.473 79.651 21JJJ7 2,809 1.049 4￿13.191 4.949.J23 4.699.475 2,777,•5J 7,477.321 Ilaisinq Chylt4ble Pa55aV R*StyJrt* C•n114 A(commDda¢ifffi prrnrflqn •1•1￿5 714.142 Yi*2•2 70J.749 703,74? l.l¢).?J4 2.•17W 2.395.178 961.9?S 757.990 2.041,097 3.153,￿0 3,005,072 1.4S4.993 4.820,304 2.11¢.J06 4,061,002 2,401.067 6.162,689 1170,8701 2.461.017 2J14.147 637,87J IlJJ341 614.639 Tfinsf*ri b•M*n lunds 2.461.017 2J•4.147 637.173 123231) 114.6Jg Oth•r gains I110ss•sI 42.147 42.147 2,596 Z,595 2,461.017 640,169 617,235 Toul luods brougthi lorwafd 6.406.273 2Iy3847 S.765,104 16.160.401 6.271.550 .406.173 22.543,447 l•a i• th• illloir4ts111. 32 ] THE PASSAGE to ending homelessness Trustees, Report and Accounts year ended 31 March 2022 Balance Sheets Passage 2000 (operatlng as The Passage) As at 31 March 2022 Company number.. 03885593 Th• grnup 2022 2021 2022 2021 Notè Tanglblt assets Investments 20,088.427 644,744 17,201,876 302.596 1&737.729 15,B26,653 302,696 20.733.171 17,504,472 19.382.573 16,129.349 OJvr•nt Debtors Cash at bank and In hand 1.233.061 4,895,994 1.023,382 5.083.091 1.244,011 1,014.760 5,001,598 6,129.054 6,106,473 047.n5 6,016.358 Crtdltors.. amounts fallln9 d¥e wAihln one ye4r 11.553.984) IS43.498) (1.4J9,U9 1428,8971 14rt cmrnnt ui•ts 4,595.070 5.562.975 4607.836 5,587.461 T•MI a•••ts tyff•nt IlabNld 25,321,141 23,067,447 23.990809 21.716.810 Loans to Subsldlarles Crodltors.. amounts falllng dye after mort than on• 711.218 787.788 1524.0001 24,169,741 22,543,447 24712.097 22.504.598 Fvnth: Aostrlctod Incomt funds Untostrlcted Income fundg.. Oesl9nated funds Genttal funds 19a 11.59&191 16,137,174 16.137.174 4,121,914 2,149,036 4.940.021 1,466,252 4,121.914 1.992.592 4.940.021 1,427,403 Totsl unrestrlcted fvndj 6271,550 6,406,273 6,114506 24,712.697 6.367.424 T•thi tsnds 24￿69.741 22.543,447 22,504.598 Approved by the trustees on 27 September 2022 and signed on their behalf by Michael Kelly) Chair of Trustees 33 ] THE PASSAGE io ending homelessness Tru5tees' Report and Account5 year en.ded 31 March 2022 Consolidated Statement of Cash Flows Passage 2000 (operating as The Passage) For the year ended 31 March 2022 Note 2022 2021 Cuh from op•ratlng actMtl•$ Net Income I lexptndllurel for the ￿portIng perlod las per the starement of financlal actfvltlesl Depreclatlon charges Loss on dlsposals of fixed a55et5 Interesi income Ilncrease}Idtcrtase In debtors Increasel{decreasel In credltors 1.284.147 614.639 386.784 346,025 12.80• (209.678 924.986 14.0491 201.395 700.278 N•t ruh ￿dId ty l (used In) •p•rntlfig aLthfth• 3,383.429 1.858,288 Cash fmm Inbwtlng a¢tMIl￿. Olvldends, Interest and rents from Inve51men Purchase of flxed assets Purchase of Investments 2.809 (3,273.335) (300.000) 4.049 1738,4031 1300.0001 N•¢ ash wa¥lthd ty l (us•d In) In￿$¢1￿9 actmtl Chan9• In ujh and •gufvalMts In th• y• .570.525> 11.034,3541 1187,097> 823,934 Lash and cash equivalenis ai the beginning of the year Cash cash equfvahnts It th• ond of th• 5,083,091 4,895,994 4.25Y,157 5.083,091 34 ] THE PASSAGE to endin9 homelesgnèss Tru5lees' Reporl and AccoJi nls year end.Lad 31 March 202? Notes to the Financial Statements Passage 2000 (operating as The Passage) For the year ended 31 March 2022 1 Accountlng policies a) Statutory Informatton Passage 20￿ Is a charitable company Ilmited by guarantee and is incorporated in England. Passage 2CX)O operates as The Passage. The registered offlce address is at St Vlncent's Centre, Carlisle Place, London SW1 P 1NL. The Passage provides resources which encourage, Inspire and challenge homeless people to transform thelr lives. b) Bas15 of preparatlon The financSal statements have been prepared in accordance with Accountlng and Reportlng by Charitles: Statement of Recommended Practlce applicable to charlties preparlng thelr accounts In accordance wlth the Flnanclal Reporting Standard appllcable in the UK and Republlc of Ireland IFRS 102} . (Charltles SORP FRS 102), The Financlal Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companles Act 2006. These financial statements consolidate the results of the charlty and Its wholly-owned subsldlaries Passage Trading Services Limited and Passage Housing Services on a line by line basls. Transactions and balances between the charity and its subsldlaries have been eliminated from the consolldated flnancial statements. Balances between the parent charlty and Its subsidlaries entities are disclosed in the notes of the charltys balance sheet. A separate statement of flnancial activities, or income and expenditure account, for the charlty 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 inltlaLly recognised at historlcal cost or transactfon value unless otherwise stated in the relevant accounting policy or note. In applying the financial reporting framework, the trustees have made a number of subjectTve 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 estlmatlon 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. 35 ] THE PASSAGE to ending homelessnes5 TrLlStees Re¥iort and.4ccoiJniS year ended 31 Marcn 20?? c) Publlc benefit entity The charity meets the def7nition of a public beneflt entity under FRS102. d) Going concern The trustees consider that there are no material uncertainties about the charity's abllity to continue as a going concern. Reserves have been set at a level to ensure that changes resulting from the Covid 19 crisls can be effected and that continued operations in a changing envlronment can be sustained. The Capital Refurbishment Project, which will cost £9m, is expected to be funded by monies available for capital funding only and will not impact on operating income. 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 wlll be recelved and that the amount can be measured reliably. Income from government and other grants, whether 'capltal' grants or 'revenue' grants, Is recognised when the charlty has entitlement to the funds, any performance conditions attached to the grants have been met, It is probable that the Income wlll be received and the amount can be measured reliably and Is not deferred. For legacles, entitlement is taken as the earlier of the date on whlch either: the charlty is aware that probate has been granted, the estate has been finalised and notiflcation has been made by the executorlsl to the charity that a distributlon will be made, or when a distrlbutlon is received from the estate. Recelpt of a legacy, Sn whole or In part, is only considered probable when the amount can be measured reliably and the charlty has been notified of the executor's intention to make a distributlon. Where legacles have been notified to the charity> or the charity is aware of the granting of probate, and the crlterla for Income recognltlon have not been met, then the legacy is treated as a contlngent asset and dlsclosed if materfal. Income received In advance of the provlsion of a specifled service is deferred until the criteria for Income recognition are met. f) Donatlons of glfts, servlces and facflltles Donated professional services and donated facilities are recognlsed as Income when the charity has control over the item or received the service, any conditions assoclated 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 wfth the Charities SORP (FRS 102), voLunteer time is not recognised so refer to the trustees, annual report for more information about their contribution. 36 ] THE PASSAGE to ending homelessness Trusleei Reooff and Accounts year ended 31 1,larch 20?2 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 service5 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 recelvable and the amount can be measured rellably by the charity" thi5 is normally upon notification of the interest paid or payable by the bank. h) Fund accountlng Restricted funds are to be used for speclflc purposes as laid down by the donor. Expendlture which meets these crlterla is charged to the fund. Revenue funding from statutory bodies is normally spent in Its entirety during the year. Indlvldual balances on the restricted funds relating to revenue expenditure funded by statutory bodles Is not materlal and no further analysis is therefore 8lven. Unrestrlcted f unds are donations and other Incomlng resources recelved or generated for the charltable purposes. Deslgnated funds are unrestrfcted funds earmarked by the trustees for partlcular purposes. l) Expendlture and Irrecoverable VAT Expendlture is recognSsed once there Is a legal or constructive obligation to make a payment to a thlrd party, It 15 probable that settlement will be required and the amount of the obligatlon can be measured reliably. Expendlture Is classifled under the following activity headings: Costs of ralslng funds relate to the costs incurred by the charity in inducing thlrd parties to make voluntary contrlbutlons to it, as well as the cost of any activities wlth a fundraising purpose Expenditure on charitabLe activities includes the costs of delivering services undertaken to further the purposes of the charity and their associated direct staff and support costs Other expenditure represents those items not falling into any other heading Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. 37 ] THE PASSAGE to ending homelèssness TrL,'sLee5' Roport and Accoun ts year ended 31 1¥14fih 2022 j) Allocation of support costs Resources expended are allocated to the partlcular activity where the cost relates directly to that activity. However, the cost of overall directlon and administration of each activity, comprising the salary and overhead costs of the central functlon, is apportioned on the following basis which are an estimate, based on staff time, of the amount attrlbutable to each activity. Basls of allocatlon Management and plannlng Flnance Informatlon resources Human resources Facllitles management Governanc• Ralslng funds 14% 25% PRC 43% 25% 49% 49% 60% 50% Acc & Preventlon 43% Use Use Staff nos Staff nos Use 44% 44% 1% Facllities management costs are recharged on the basls of the use of the servlces, taklng floor areas occupled, and the intenslty of their use. Information resources and Human resources overheads are charged on the basis of the number of staff engaged In each actlvity. Governance costs are the costs assoclated wlth the governance arrangements of the charity. k) Tanglble flxed assets Items of equlpment are capltalised where the purchase price exceeds £5,000. Depreciation costs are allocated to actlvltles on the basls of the use of the related assets in those activities. Assets are reviewed for impalrment 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 consumptlon of economlc benefits and are depreciated separately over its useful Iffe. Where fixed assets have been revalued, any excess between the revalued amount and the hlstoric cost of the asset will be shown as a revaluation reserve In the balance sheet. Depreciation is provided at rates calculated to wrlte down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates In use are as follows: Land Freehold building Equipment l Not depreclated 13- 100 years 14-15years 38 ] THE PASSAGE to ending homèlèssness Truitee> Rpport and Accounts igear ended 31 March 2022 l) Debtors Trade and other debtors are recognlsed at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepald net of any trade discounts due. m) Cash at bank and In hand Cash at bank and cash in hand includes cash and short term highly tiquid Investments with a short maturity of three months or less from the date of acquisition or opening of the deposlt or similar account. n> Creditors and provlslons Creditors and provlslons are recognl*d where the charfty has a present obligatlon resulting from a past event that will probably result in the transfer of funds to a thlrd party and the amount due to settle the obligation can be measured or estimated rellably. Credltor5 and provisions are normally recognised at thefr settlement amount after allowing for any trade discounts due. o) Flnanclal fnstruments The charlty only has financial assets and financlal liabllltles of a kind that qualify as basic flnancial Instruments. Baslc flnancial Instruments are initially recognised at transactlon value and subsequently measured at thelr settlement value wlth the exceptlon of bank loans which are subsequently measured at amortised cost using the effective interest method. p) Penslons The charlty has arranged a group personal penslon plan, which is a defined contrfbutfon scheme, for staff, the costs of which are charged to the Statement of Financial Actlvlties in the year in whlch the contributlons are payable. The charity has no liability for the ultimate benefits paid. q) Investments During 2021-22 the charlty transferred £3(M)k of current cash and short term deposits to a COIF Charities Investment Fund (2021: £300k), which seeks to provide medium to long- term growth and stability withln a client-driven ethical investment framework. The investments are valued at bid price as at the balance sheet date. 39 ] THE PASSAGE to ending homelessness Trustees, Report and Accounts year ended 31 March 2022 2 Incoffle fmm dOna￿On$ and legad•s 2022 Total Unresirkted 2021 Total Unrestrlcied Restricted Re5trl¢ieO Legacies Indlviduals Wosiminsttr Cathedfal Donations from related partles Church and voluntary groups Grants Corporaie donatlons 316.690 1.565.775 6,502 400 17.007 621,317 930.294 i 0.000 326,690 1,565,775 6,502 400 117,007 2,622.817 930.294 374.014 1.786.939 18.871 2.100 65.496 8SO,329 758.926 374,014 1.789.650 18.871 2.100 65.496 1.271,806 1,086.028 2,711 2.001.500 421.477 327.102 3.557.985 2,011,500 5,569,485 3.856.675 7SI,290 4.607.966 Grants Income Includes £2,001.500 from charltable trusts for the refufblshmeni of 8enrley House and Passage House Thè Charity recelved notlflcation of le9acies toialllng approximately £4SS.681 12021.. £0) that did not meet the crlierla for recognltlon as Income In 2021-22 but whlch were expeded to be recelved In 2022-23. 3 In¢om• ftom ch•rft•bl• aclmu 2022 Total Unfestrlcied 2021 Toial Unrestrlcted Resiflcted R•strlcthd Westminsier City Councll Governmeni of Ireland.. Emlgrant Support Pro9ramme Creaier London Authorl Brlghron and Hove uss London Houslng Foundatlon 1.857,573 1.857,573 1,894,393 1,894.393 35.000 1,000,000 3S.000 i.000,ooD 35,000 35.000 34,249 17,920 45.000 34.249 7,920 45,000 45,250 45,250 Sub-total fof Granis from Statutory bodles 2,937,823 2.937,823 2.026,562 2,026.562 Rent from Resltjentlal SeThlce5 Other Income 790,371 78,792 790.371 78.792 617.473 79,652 617,473 79.652 Accommodation and prtventlon projecis 869.163 869,163 697,125 697,125 The total grant for the Government of Ireland.. Emlgfani Support Programme fof the perlod l Juty 2021 fo 30 June 2022 was £35.000 (2021.. £35,000).. £39,367 was appllod In the nnanclal year 2021-22 12021.. £30.6331 under the followlng headlngs.. Staff c05ts'. £34.671 12021.. £27.9421 Cllent cosis.. £4,636 12021.. £2,633) Volunteer5.' £6012021.. £301 Admln151ration= £012021.. £281 ] THE PASSAGE to ending homelessness Trustees, Repori and AccoJi n ts year end-d 31 ￿lIarch 202? 4 Incom• from other trndlng acd¥ltl 2022 Toul un￿StrICted 2021 Total Unrestrkted Restrlcted Restflcted Hire of metting rnoms and conference facilltles A Taste olHome he Passa9e cookbook) Sundry recharges Fundralslng events 37.674 37.674 1.882 37.883 136,098 1,882 37,883 136,098 99,012 17.586 25,028 99,012 17,586 25.028 213.537 213,537 141.626 141,626 Sa An•lpli ot •xp•nthur• (cufftnt ￿1) Passage Resource Cèntr* Accommodaiion and preveniion projects Ralsin9 funds Governance cosis Supporr cosi$ 2022 Totsl 2021 Total Staff costs INote 7 Other dlrecr costs Management and plannln9 Flnance Infomiatlon re5¢Jurc•s Human resour¢es Facllltle5 manageftRni 367,436 229.955 1.763,561 636,687 1.862,242 1.331.760 16.652 741,722 4,751.612 2.198.401 37.612 25.617 66.344 18.287 210.770 4.543.972 1.938,364 20,645 39,230 135,S50 5,982 178,945 37.612 25,637 66,344 18,287 210,778 597,390 2.400,248 3.194.002 16.652 1.100,378 7,308.67Q 6,862.689 Support costs 16,892 508.474 475,013 11.100,3781 Govtmance cosis 8,326 8.326 116.6521 Totsl •xpondifuro 2022 714.282 2.917.048 3.677.341 7.308.670 Total expendiiure 2021 703.749 3,153,868 3.005.072 6,862.689 passa9e Tiadln9 CQSts Includ￿ In Ralsln9 funds 57,482 41 ] THE PASSAGE to ending homele55ness Trustees, Report and Accounts l'ear endgd 31 March 2022 5b of expendltyrn Iprforyw) Pa55age Rtsource Centre Accommodation and weveniion prolecrs Ra151ng funds Governance costs Support costs Z021 TOTAL 2020 TOTAL Staff c0515 (Noie 71 Orher dlrect C05t5 Mana9ement and planTrlrwJ Finance Inlorrnitltsn iesourcei Human resource5 Facllltles managtmtnt 373.972 230.102 1,762.296 913,418 1.767,7fj4 794.843 639.940 4,543.972 1.938.364 20.645 39.230 135.550 5.982 17&945 4.179.321 1.722,605 52,778 ai.031 67,918 5,383 196.922 16.2SS 4,390 39.2ao 135.550 5.982 178.945 604,074 2.675.714 2.562,607 16.255 1.004,039 6.a62M9 6,255.958 Support cosis 99.675 470.026 434.338 11,004,039) Go¥emanc* costs 8.127 8,127 116.2551 Total •xp•ndlt¥rn 2021 703,749 3,155A68 3.005.072 6.162,689 Toi•l Expendlture 2020 478.052 2.982.944 2,794,962 6.255.958 Passage Tradlng cost5 Included In Ralsln9 fund5 99.181 Nrt Inem• l <•¥p•na￿r•) for th• y4 Th1$15 5titod after ¢hirgln9 1 Icredltln91'. 2021 D¢prt¢latlon Loss on dlsposil ol fixed assets Audltor'5 rtmuntratlon lexcludlng VAn.' Audit Audlt for subsldlarle5 Other 5eNlces 316.784 346,025 13hoo 12.400 6,000 7,400 42 ] THE PASSAGE to ending homelessness Tri Istees, Report and Arcounls •nded 31 March 2022 Anal￿1$ of 5tsff costs, tru$t•• rnmun1rlth￿ and •xponsts. and the co# •f manag•m•rt permnnol Smff costs were as follows.. 2022 2021 Salaries and wa9es 5oclal security costs Employer's coniflbufion to defined ton1¥1b￿l0ft penslon scheffle5 Oiher staff costs lincludin9 agency cosisl Tralftlng and recrultrnent Aodundanty payments Other cosrs J,798,441 381.408 l 76.799 221.912 58.886 72.352 41.744 3.698,027 370.040 153.792 201.947 78.727 41,438 4.751,612 4.543,972 The lollowin9 numbei of employees re¢tived employee benefit5 (excluding employer ptnslon costs and employer's natlonal Insurance? durlfftg the year bÈhv*en'. 2022 2021 £60,000 - £69,999 É70.000 - £79,999 80,000 - £89,999 £90.000 - £99,999 The total ern￿0Ve¢ ben¢fit3 Ilncludln9 pensSon conrrlbuUon5 and employe¢s natlonal Insurance) of the key managÈm•nt personnèl were É531.150 12021.. £479,546>. The chaflty irusrees were neithèr pald nor r•colvod any oiher beneh15 from •mploymtnt wlth the Charlty In ihe year12021.. lnlll. No charity trusite recelved paymeni for professional or othef StrySces supplled io the charity 12021.. £nlll. Trustees. exptnses represenrs the payment or relmburstment of travel and 5ubslst*n¢* costs totallln9 Inll 12021.. £nlll Incurrid by nll 12021.. nll) Member5 relating to aitendance ai meetings of the trustees. 60,000 - £69.999 170,fy)0 - £79.999 80.IJOO - £89.999 £90,fy)0 - £99,999 The ￿01 employee beneflt5 Ilncludin9 penslon conirlbutlons and employer's naiional Insuranc•l ol the key mana9emeni personntl were £531.15012021'. £479,546). The ¢harlty trustees *tre neiiher pald rtor r*c*ived any other beneflis from employmenl with the charlty in the year12021.. Inill. No charlty trusiee received payment for prolesslonal or other seThices supplied to the charSiV 12021.. £nlll. Trusiees. expen5•3 T•presents the paymtni or r•lmbuf5ernent of travel and subsistence costs toiallln9 Inll 12021.. £nlll Incurned by nll12021'. nil) members relatin9 to aiiendan¢t at mteiings of the iru5tee5. Sttff numb• The average number of employees (head count based on ntsmber of 51aff employodl durln9 tht yèar was 128 12021.. 1211, Staff are split across the activities gf the chaiity as lollow5'. 2022 2021 No. Raislng funds Passage Resoufce Centre Prevention and accommodation Support 45 58 18 46 50 128 43 ] THE PASSAGE to ending homelessnes5 TrLlSte-s' R-porl and Accounts Ji ej* •nded 31 lilai'ch ?0?? The board ol trustees 17he 8oardl manage5 the charltable acllvlties of the company. Passage Housing Servltes. Passagt Tradln9 Seivlces. The Passage Trusi, the Daughiers of Charlty of 51 Wnceni de Paul Trhe Sistersl and Westminster Cathèdral *e related partles. rransactions with the Sisters The Sfisiofs made 9rants and donatbons of 1400 12021.. 12.1001 to The Passa9e. Tr&nsatrions with Westminsier Cathedral Westminster Cathedral made 9rants and donations. and collecied donaiions on behalf of The Passage arntsuniing to £6,502 12021.. £18,871 l. No chai9e was made fof ihe facllltles provided by the cathedral for collectlon of monty to asslst the %w)fk ol Th Passage. Tranuriions ￿th Passage Tradinp SeTrices Durin9 thè year Th* Passage roc•lved iopaymeni Df £ 11.19812021.. (117.1901 froffl Pa55a9e Tradin9 Service5 In loans and advancès. A99re9ate donatlons from relaied paitles were £18.10012021.. £138.1611. 10 T•xadpn Th* charlty Is ox•mpi from corporatlon lox a5 all It5 Income Is charl¢4ble and Is applled for charltable purposes. The chailty'5 IradSng subsldlary Passa9e Tf•dlng Seryice5 Llrnited dlstrlbutés under Glft Ald avallablo pionts to the parent chaflty. I l T•nglbl• fth•d Th• ¥voup Eoulpmtni fixiures and niElngs Freehold pwoperty T•MI At thé stari of the vear Additlon$ In year Olsposals In year 21.432.871 3,111,622 1.100,304 161.713 22,5J3.175 J,273.JJS At Ihe tnd of ihe year 24,541.493 1,262.017 25,106,509 Ai iht si•it of the year Charge for the year Ejlmlnared on disposal 4.420.015 313.137 911.283 73.647 5,331.298 316.784 ihe end of the ￿al book ￿lu• At th• •nd of th• 4.733,1 $2 984,930 5.711.012 19.811.340 277.087 20.018.427 Al the Start of the ￿•r 17.012.8S5 189.021 17,201.876 All of the above assets are us¢d fow Iharliablt purposes. 44 ] THE PASSAGE to ending homelessness TrLlSteei P.eport and Accounts Jear ended 31 Imarch 2022 Eoulpmtnt fixluro5 and flttln9S Freehold property At th* start ol ihe yeai Addltlons In 01sP05a15 in yeai 19,917.682 3.111.622 1.100,304 161.713 21,017.986 3.273J35 At ihe end of tho year 23.029.304 1.262.017 24.291.321 Ai rhe start of the year Chargt for the year Ellminaied on dlsposal 4,280,050 288.612 911,283 73.647 5.191.335 362359 Al the end ol ihe year 4,568.662 984,930 5,553.592 Ai th¢ oAd of th• y•v 18.460.642 277,087 18,737.729 the start of the yoar 1 5.637,632 189.021 15,826,653 All of the •bove •ssets are used lor ch•rltable purpos•s. 12 Ust•d Th• woup 2021 2021 2022 2021 Falr value It thé start of the ye•r Ad4Jltlons ai cosi sposal piweeds Net galn i Ilossl on change In lalr valu• 302.$96 302,696 300,000 loo 300.000 300.000 42.147 2,596 42,147 2.596 F•lr v•lue at the end of ihe year 644.741 502,596 302.696 Inveslrnenis comprlse.. Th• group 2022 Th• th•rhy 2022 2021 2021 UK Common Investmeni funds InvesimeAiS In subsidlary undortaklngs 644,7 302.596 641,744 100 302.596 100 644.744 302,596 302.696 45 ] THE PASSAGE to ending homelessnes5 TrLI)Lr_i Report rind HccoiJnts y. ended 31 ,Virch 20?? The charlty a￿$ The fvnds of Passage Housin9 SeNices. • company reglstered In England and • Regisiered Social Landlord. Thé company number Is 09874011 and the RSL number 15 4842. Tht reglstered olllce address Is Si Vincent C•niré, C•illsl• Place. London SWI P I NL. Thls entity Is used for rtsidentlal s*Thlcos ihat cannot be run ihwough ihe charllv. h(m￿r all aCti￿ty15 considered prlmary purpose. All activltlos have been consolldaied on a line by Ilne bas15 In the staternent of financial actl¥iti•s. A summary of iht results Is shown below.. 2021 2021 Income Expendlture 131.000 (21.56S> 25,105 16.4691 Nei In￿*1(•xPIndINrn) fprth• y•4r Funds bfOLl9ht fgrward 206 111,277 The aggre9aie of the assets, liabllltl*s artd F*sor¥•s wis. A55eis 673,0 (SH.8171 678,234 1659.3921 128,277 11.142 The chailty owr15 the whole of the Issued ordifi•ry shart capiial of Passage T¢•dlng Servlces Llmiied. a cornpany reglstered In England. The 19,958 11.198 146.613 199.1801 prnfftlowi) Interest on loan payablt to pafeni undertakln9 47.433 10,688 Pvofft l 0￿1 on ordlnwyaamdts b•foM tWll•n Taxatlon on prolit on ordlnary 4¢ll¥ltles 8.760 36,745 r i Oms) for th• lIn•n￿ 1760 36.745 Total reialned earnln9s broughi lor*ard Profit I Ilossl for ihe financlal yoaf Dlstrlbulion under Gift Aid to paient ch•ity 20.007 23.047 36,74S 139,7851 21.767 20.007 The aggregate of the assets, Iiabiliiles and restr¥es was.. Assets 106.555 IY77,6M> 790.299 (770.1921 2&867 20,107 Amounis owed 10 ihe parent undertaking are sh¢)wA in note I S. 46 ] THE PASSAGE to ending homelessness TrListreei Repo','t cind Accoijll Is ijear gnded 31 .Mirrii ?02? 14 Parent dwftv The pareni charlV5 gr05s incorne and ihe re5ulis for thé year ai* disclosed as follows.. 2022 2021 Gross Sncome Resuli for the year 9.561,723 2,208.099 7.413.693 558.942 15 D•bto Th• 2022 Th• dwltv 2022 2021 2021 Trade debtois Other tlebtors Amounts due from subsldlary undenaklngs Prepayments Accrued income Sundry Debtors D•bton o¥•r OM y•af. Funding advance Eo Passage Tiading Services Llmlted Fundlng acfvante ro Passage Houslng SeThlces Llmlted 29.399 207.836 2,243 315,967 207,836 47.621 221,359 6S2,377 114.837 309.S88 228,611 652,37Y 114.837 164.965 50S.382 34.826 164.965 505.382 34.826 722.288 722,288 6S,SOO 1.233.061 1.023.382 1,966,299 1,802,548 The fundln9 loan to Passage Tradlng Servlces Llmlied, a wholly owned subsldlary, rèpresents funds advancèd to énable the subsidiary company io renovate the conference space area which ir n¢)w hlre5 Out. The loan ha5 fltxlble repayment terms and cafrles a commerclal rate of inieresi. The fundln9 loan to Pissage Houslng Servlcés. a wholly owned subsldlary. In 2021. repfesented ihe flrst year paymeni for rhe Iransfer of rhe lease for 8entley Hous*, the frèéhold of which is owned by the parent charlty. Thls loan was converied to a grani from the parent rharlty In 2022. 16 Cr•ditorn: ￿￿oUnts hlllng du• wlthlTh on• y•ar Th• ¥voup 2022 Th• tharlty 2022 2021 2021 Trade ¢r¢diiors TaKaiion and soclal securlty PensSon conirlbutlons Orher credltors Amounts due 10 9roup undertakln9S Iruals Deferred Income Inoie i n 229,33S 130,141 35.748 69,189 128.692 110,588 32,96S 67,299 228,934 122,755 35.748 3,689 128.692 108.056 32.965 1.799 3.196 145.740 8.449 1.050,514 19.051 195,313 8.641 1,037,139 11.62S 1.533,984 543,498 1,439,889 428,897 Credltors greater than one year comprlses amounis due For rhe buyback of ihe least on Bentley House 01 £458,500 12021.. E524.0001 and Is repayable over 9 years (until 20301 in equal Insralrnents each year. 17 D•f•rred Incom• Oelerred Income comprises funds in advance from Housin9 benefsts. room hire pald In advance. and Income received for the The group Th• Ghwlty 2022 2022 2021 2021 Balance at the be9inning of the year Amount released to incomE in the year Amount dèferred in the year 8.641 (8.641> 19.051 14.023 {14.0231 8.641 8.H9 (8.449) 11.625 3,238 13,2381 8,449 Balance at ihe end of the year 19,051 8,641 11.625 8,449 47 ] THE PASSAGE to ending homele55ness Tr'.Isteps' Report and Accounts yaar ended )'1 I,larc'n 20?2 184 An4￿1$ of group net assets funds Icurrent ye•rf) General unrestricied Deslgnaied funds Restrlcted funds Totsl funds Tangible fixed asseis Inve5tment5 Net current 455ets Long terni liabilities 1,590,185 644,744 373.207 1458,5001 171.460 18.326.782 20,088.427 644.744 4.595.070 (458.500) 3.950.454 271.409 Not a55ots at 51 M¥rh 2022 2,149,636 4.121.914 18.598.191 24,869,741 18b Wls of group n•t asi•ts b•tswi fvnds (prtor yur) General unrestrlcied Deslgnated funds Re51rlcred fvnds Totsl funds Tan9lble ftxed asse15 Investments Nei £urrent asseis Long term IlabSlltl¢s 1,380,985 302.596 306.671 IS24,0001 789,021 15,631,870 T 7,201,876 302.596 5.S62.975 1524,0001 4.751.000 505.304 N•t ass•ts ￿ 31 2011 1.466,252 4,940,021 16,137.174 22.543,447 19a Mo¥•m•nts In fvndi hrnent St Vlnc*ni's Cenire General Bvllding developmen¢ fvnd Passage House Passage Resource Centre 4,000 50,865 139,708 8,407 12.5771 175,9461 114,6331 1.423 105,110 213,075 14,657 30,000 27,580 8,185 3,557 i 00,000 130,197 88,000 6,250 80,000 35,000 46,000 i 00,000 i 00,000 i 00.000 126.220 1,931,562 34,624 150,0001 130,477) 137,8151 196,4431 23,057 1100.0001 1126.2201 11,931.562 132,913) 9,835,330 4,004,030 914.253 1 138,775 41,982 1271,9241 127,584 9,563,406 3,976,446 914,253 .135,783 41,982 12,9921 TIX￿ r•Mrtct•d fuftds 16.160.407 2.777.853 12.801.086) 16,137,174 Ilnrestrlctod funds: Designaied Fund5". Fundlng Conringencv Si Vlnceni's iefurblshmeni Statutory fedundancy Equipment Straie9y investment costs 1.750.000 2.200.000 452,324 167.238 1.750.000 2,700.000 soo.000 1452.3241 21.783 301.000 189.021 501,000 Total desi9nated funtls 4.S69.562 370.459 4.940.021 Genernl funds 1.196.243 4.702.071 14.061.603) 370.4591 1,466,252 Totsl mr•rtdcl•d funds 5.765.805 4.702.071 14.061.603) .406.273 Totsl funds 21,926.212 7,479,924 16,862,689) 22.543.447 49 ] THE PASSAGE to ending homelessness Trustees, ReporL and Acco..Inls lear ended 31 imarch 2022 Purpose5 of restrlcted funds The St Vlncent's Refurbishment Fund - Represents payments contrlbuted by developers to The Passage for the refurbishment of St Vincent's Centre, plus interest earned on this fund. The St Vlncent's Centre Bulldlng Fund - Represent5 donations and grants made towards the cost of purchasing and improvlng 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 - Conslsts of the historical cost of Passage House to The Passage Trust, less accumulated depreciation to 31 March 2022 (including the Lily Ann & William Wlggln5 Fund of £146,045, which the donor agreed could be used for thls purpose), and grants payable to the company to develop Passage House. The Passage Resource Centre Fund - Represents a legacy recelved by The Passage Trust for use in the Resource Centre, given to Passage 2000 for the development and maintenance of the Resource Centre. Westmlnster Clty Councll - Passage House Assessment Centre Grant - Contrlbution to the running of Passage House as an assessment centre for Westmlnster rough sleepers. Supporting People Grant Funding for workers givlng general counselllng and advlce In Montfort House. Addltional fundlng for nlght time support Staff in Montfort House. Houslng Optlons Grant - Grant to provide houslng advice and assistance to single homeless people. Prlvate 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. Irish Govemment-Department of Forefjgn Affalrs - Fundlng to employ a worker to co- ordinate the Resource Centre's services to Irish clients and to re*arch their needs. 50 ] THE PASSAGE to endiny homelessness Trustee5' Reporl and Accounts year end-d 31 March 2022 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 exposurp to possible variation5 in future grant Levels from major funders. It was not necessary to draw on this reserve during 2021-22. St Vlncent's Refurblshment Fund - Designated for future major cyclical maintenance of St Vlncent's Centre and towards any costs of acquiring and refurbishing Bentley House, which cannot be funded through grants and donatlons. Statutory Redundancy Fund - Thls was closed and part-transferred to the Strategy Investment Fund In 2021, with the balance released to General Funds. Equlpment Fund - Represents the net book value of equlpment, apart from equlpment funded as part of the St Vlncent's refurb15hment project. Strategy Investment Fund - Represents funds designated by the Board to develop and Implement the 2022-2025 strategy for The Passage. 20 Capltal commltments At the balance sheet date, the group had commltted to £5.1 m further expenditure relating to the refurbishment of Bentley House and Passage House (2021: £0). 51 ] THE PASSAGE to enclin9 homelessness