apasen { A COMPANY LIMITED BY GUARANTEE> FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 Company No: 04688707 Charity No: 1114290 APASEN ( A Company Llmitsd by Guarantso) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Company number 4688707 Charity number 1114290 Directors Trustees servin durin the financial ar Mr. Luqueman Hussain {Chairmanl Ms. Suraiya Khatun {Treasurer) Mrs. Jyotsna Rahman Islam Ms Ru5na Alam Ms Nilufa Yesmin Hassan Mr Tobaris All Mrs. Shoriful Nessa Mrsyed GulabAIi Mrs. Momota Begum {resigned 031071241 Mrs. Sultana Monaf Begum (resigned 07/07/25) Mr. Sultan Chowdhury (appointed 12111125} CEO Mr. Mahmud Hasan Princi IRe Istered Office Carmine Wharf 30 Copenhagen Place London E14 7FF Auditor Ipsum Accountants Ltd 16 High Holborn London WCIV 68X Banker HSBC 1-3 Bishopsgate London EC2N 3AQ APASEN l A Company Limited by Guarantee CONTENTS TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Contents Paga 1.Trustees Report (Year in Review) 4t012 1. Trustees Report (Risk and Strategic Review) 13 1 Trustees Report (Financial Review & Responsibilities) 14to15 2. Auditor's Report 16to19 3. Statement of Financial Activity 20 4. Statement of Financial Posrtion 21 5. Statement of Cashflows 22 4. Notes to the Financial Statements 23to32 asen Trustees Re ort 2025 The trustees, who are also the Directors of the Company forthe purpose of the Companies Act• present their Annual Report and the financial statements for the year ended 31 March 2025. Principal activities Apasen's principal activity is the provision of social and communitycare services. Our objects make specific reference to the following aims: To relieve poverty, social exclusion and deprivation for people with learning difficulties andlor with physical disabilities or other charitable needs. . To provide advice, support, information, counselling and training to those in need. . To establish and maintain centre5 for health, education and recreation. . To provide care and support to those in charitable need. The entity is organised with a comrnittee (Board of Directors) elected by the members, to oversee its overall activities, and they collectively to monitor its running, on a periodic basis. Overall Summary 2024125 Across 2024-25, Apasen's services collectively supported thousands of people through residential care, day opportunities. training. advocacy, and befriending. Continuous professional development, accreditation success, and strong cornmunity partnerships underpin every programme. Apasen remains steadfast in its rnission: to promote independence, equality, and wellbeing for people with disabilities and vulnerable adults, enabling them to live fulfillin& self-determined lives within their communities. A asenTrustees Re ort 2025 Opportunity Zone (OZ) Tower Hamlets Opportunity Zone (OZ) Apasen Tower Hamlets Opportunity Zone comprises four hubs-space, Orbit, Galaxy, and Employment- providing high-quality, person-centred support foradults with learning disabilities. Over the past year, OZ has enhanced service users, quality of life through tailored activities, skill development. and strong community partnerships. In collaboration with 24 local businesses, the hubs delivered diverse opportunities in recreation, education, and employment. Service users participated in physical activities, life- skills sessions (such as Money Matters. Makaton, and Paddle Cycling). and volunteering placements, including lOO% engagement at Patisserie East within the Employment Hub. Staff excellence remains central to Oz's success 70% hold NVQ Level 2 or 3 qualifications, and the remainder are completing further training. Regular safeguarding and PBS pro8rammes ensure high professional standard5, 5UPPQrted by three in-house PBS coaches. Positive feedback frorn the London Borough of Tower Hamlets commended Apasen'5 service improvements, staff training, and user satisfaction. Looking ahead, OZ plans to extend operating hours, explore supported living options, and expand employability programmes to further promote independence and inclusion. Newham Opportunity Zone (NOZ) The Newham Opportunity Zone provides inclusive, culturally sensitive day services for adults with learning disabilities, promoting independence, confidence, and personal development through tailored activities. In 2024-25, service users actively participated in a wide range of group sessions including music, dance, sensory and sports activities, IT and literacy classes, cookin& art. and a successful horticulture project that fostered pride and teamwork. Major highlights included a Special Eid Party & Fun Day attended by the Newham Mayor and councillors, and an Annual Sport5 Day at Mile End Stadium, celebrating community engagement and inclusion. Following positive feedback from familie5 and a successful London Borough of Newham monitoring visit in December 2024, the service was commended for quality and care standards. Staff development remained strong, with 85% completing the Care Certificate and all receiving training in Positive Behaviour Support, PATS, and risk assessment. NOZ remains committed to empowering individuals with special needs through creativity, learning, and community participation, with continued growth and excellence planned for the coming year. asen, Trustees Re ort 2025 Croydon Opportunity Zone (COZ) Apasen Croydon Opportunity Zone provides high-quality, person-centred day seniices for adults with learning and physical disabilities from diverse cultural backgrounds. The service promotes inclusion, independence, and wellbeing through structured activities and strong community engagement. In 2024-25. 28 service users participated in over 25 varied activities, including life skills {Icr, cooking, literacy, numeracy), creative arts, sports, yoga, and community outings to cultural and recreational sites. Regular reviews ensure activities reflect service users, interests and cultural needs. Highlights included a Community Fair, Eid and Christmas celebrations, a Summer trip to Eastbourne, and participation in borough-wide initiatives such as Disability Sports Day and Carers Appreciation Programme. The service also Strengthened partnerships with local stakeholders and maintained excellent family engagement through regular meetings. A diverse team of 22 trained staff continues to uphold Apasen's values of dignity, equality, and empowerment. Increased service-user rates from Croydon Council have enhanced sustainability. Looking ahead, COZ aims to expand participation and community outreach, further enriching the lives of the people it supports. LBTH Home and Community Services (HCS) The past year has been one of both challenge and progress for our Home Care Ser4ices in Tower Hamlets. Despite pressures such as extended waiting times and delays in contract awards. these experiences have strengthened our internal systems and improved the quality and consistency of our care delivery. A key rnilestone was the successful transition from the PASS system to the Birdie database platform, enhancing accuracy, accessibility, and efficiency in care coordination. The introduction of a comprehensive rostering system has further streamlined scheduling and supported timely, reliable service delivery. We have embedded a structured lessons-learned process to review and reflect on all incidents. safeguarding concerns, and complaints ensuring accountability and continuous improvement. Regular office and carers, meetings now promote open communication, team cohesion, and shared problem- solving. A asen Trustees Re ort 2025 Our commitrnent to engagement remains central to our work. Coffee mornings for service users and their farnilies provide valuable opportunities for feedback and collaboration, while strong partnerships with external stakeholders ensure coordinated, transparent care. Through our ongoing Quality Assurance and lrnprovement Programme. we continue to uphold a person- centred approach that fully recognises everyone's needs. This dedication to compassionate, high-quality care has earned positive feedback from service users, families, carers. and external commissioner5, With the Council expressing confidence in our service standards. In summary, this ha5 been a year of consolidation, growth, and learning. We remain cornmitted to enhancing the quality, reliability. and responsiveness of our home care provision as we move forward. Apasen Training in Social Care IATSC) In 2024-25, Apasen Training in Social Care (ATSC) delivered 22 courses to 1.172 participants, providing high-quality in-person and online training through internal and external trainers. Now based at the modern G7 Montefiore Centre, ATSC offers a fvll suite of learning facilities and resources. The programme includes mandatory and specialised courses such as Catheter and Stoma Care, delivered in partnership with NELFT. NHS UK. First Response Training, MAYBO, and others. Apasen also launched online refresher training through Grey Matter Learning {GML), giving over 600 care staff access to 27 accredited modules under the CPD Certification SeNice. As a Nationally Accredited Training Centre under Advantage Accreditation, Apasen delivers five accredited qualification5 internally reducing costs and strengthening staff expertise. Ongoing development includes Level 3 Adult Care and Level 5 Leadership programmes, with staff progressing toward final certification. Over85% of care and project workers have completed their Care Certificate, with plans to introduce NCFE Level 2 Adult Care training in 2025. ATSC remains committed to empowering the workforce through high- standard, accessible, and accredited professional learning across the social care sector. asen Trustees Re ort 2025 Information, Advice, and Advocacy Services (IAA) Apasen's IAA Service supported 1,077 Tower Hamlets residents in 2024-25, delivering free, independent advice in benefits, housing, social care, and mobility. Funded by Tower Hamlets Connect, the serlice operates both in the community and at The Royal London Hospital, assisting patients with welfare, housing, and di5charge-related issues. Referrals came from self-referrals, Adult Social Care, NHS teams, and community partners. The team- one Project Manager, one Advocate, and one Trainee Adviser-secured life- changing outcomes for clients, such as over £9,500 in annual benefit entitlements for vulnerable residents. The service retained its Advice Quality Standard (AQSI and Quality Performance Mark (QPM) accreditations and expanded tribunal representation. Staff achieved NVQ Level 3 in Advice and Guidance and undertook training in housing law. safeguarding, and professional boundaries. Strong partnerships with NHS, Tower Hamlets Council, and local networks have reinforced Apasen's role as a trusted, frontline advice provider, helping to prevent crises, promote wellbein& and reduce inequality. Adult Befrlending Service- Tower Hamlets Apasen's Befriending Service in Tower Hamlets supported 44 older adults experiencing loneliness through a blend of home visits, phone befriendin& and social group sessions. Six trained volunteers offered companionship, light practical support, and signposting to community activities. Highlights of 2024 included monthly group sessions, an Eid celebration, and recognition during Befriending Week 2024 by the national Befriending Network. The coordinator completed extensive training in safeguarding, risk assessment, and person-centred care to maintain high-quality practice. Client feedback reflected improved emotional wellbeing and social connection trust has changed everything." Apasen remains dedicated to expanding outreach, reducing isolation, and prornoting wellbeing through compassionate, community-based companionship. Having someone to A asen Trustees Re ort 2025 Adult Befriendlng Servlce - Redbridge Established in 2023, Apasen's Redbridge Befriending Service continued to grow in 2024-25, supporting 26 older adults through regular visits, phone calls. and outings that promote social inclusion and emotional wellbeing. Volunteers are carefully matched to client5 based on shared culture, interests, and language. The coordinator completed specialist training in safeguarding, dementia awarenes5, and health & safety, ensuring safe, person-centred practice. The service strengthened partnerships with Community Action Redbridge, Redbridge CVS, and Colours of Redbridge, participating in local fairs and volunteer events to boost visibility and recruitment. Client feedback consistently highlights the positive emotional impact something to look forward to each week." "My befrienderfs visits give me Looking ahead, the service plans to expand hospital and care-home outreach, reinforcing Apasen's commitment to reducing isolation and enhancing wellbeing for older adults across Redbridge. Apasen Lodge Apasen Lodge provides 24-hour residential care for adults aged 18 and over with learning, physical, or sensory disabilities. Our dedicated team delivers person-centred support that promotes choice, independence, equality, and inclusion. Rated "Good" by the CQC (2019}, the service consistently meets high standards across all five quality domains. We maintain strong partnerships with local authorities, the Integrated Care System, and the Single Assessment Framework to ensure continuous improvement and best practice in care delivery. With 95-100% occupancy, Apasen Lodge remains a trusted and in-demand service. Staff complete ongoing professional development, including the Care Certificate and Positive Behaviour Support (PBS) training. reinforcing our commitment to quality and safety. Family involvement and community engagement are central to our approach, 5UPPOrted by a varied activity programme that encourages socialisation and celebrates cultural diversity. Apasen Lodge continues to provide holistic, compassionate care in a safe and stirnulating environment that respect5 every individual's needs and rights. asen Trustees Re ort 2025 Redbridge Home and Community Services Over the past year, HCS Redbrldge has achieved notable progress, supported by strong senior management oversight and effective collaboration with commissioning authorities, staff, and community partners. The service continues to build on its strengths to maintain excellence in care delivery. Key Achlevements Positlve Ratings and Feedback HCS Redbridge has received consistently positive ratings from commissioning authorities and clients, reflecting the high standard of person-centred care provided. SeNice users and frdmilies have expressed strong satisfaction with communication, reliability, and staff professionalism. Collaborative Efforts C105e partnerships With stakeholders have helped shape service improvements and ensure transparency in decision-making. Regular review rneetings and open communication have reinforced trust and accountability across the service. Future Focus Areas Clinical Governance Continued focus on clinical governance, ensuring care delivery meets the highest standards of safety and compliance. Adherence to Apasen's policies and procedures remain5 central to maintaining regulatory excellence. Quality Assurance Regular audits and feedback mechanisms will drive ongoing service enhan￿Ment. Data-driven reviews will support continuous improvement and consistency in care standards. Staff Development Comprehensive training programrnes will addre55 evolving care needs and strengthen workforce capability. Ongoing professional development will ensure staff remain confident, skilled, and person- focused in their approach. 10 asen Trustees Re ort 2025 HCS Redbrldge remains committed to sustaining its positive trajectory through robust governance, quality assurance, and investment in its workforce, ensuring that clients continue to receive safe, compassionate, and high-quality care. Home Care Services- Barking and Dagenham HCS Barklng and Dagenham has continued to develop and strengthen its operations through dedicated leadership, effective teamwork, and close collaboration with local stakeholders. The service remains focused on delivering high-quality, person-centred care that meets the diverse needs of the comrnunity. Key Achievements Positive Ratings and Feedback The service has earned strong feedback from commissioners and service user5, recognising improvements in care coordination, responsiveness, and professionalism. Clients and families have highlighted increased satisfaction with communication and support. Collaborative Efftlrts Partnership working with local health and social care teams has enabled more effective Service planning and problem-solving. Regular engagement meetings with commissioners and staff have ensured transparency and shared accountability. Future Focus Areas Clinical Governance Strengthening governance system5 to ensure full compliance with Apasen's policies and sector standards. Ongoing monitoring to safeguard seniice users, wellbeing and uphold best practice in care. Quality Assuran Continued focus on quality assurance processes, including audits, spot checks, and performance reviews. Proactive identification and resolution of any service gaps to maintain consistent standards. 11 asen Trustees Re ort 2025 Staff Development Expanded training opportunities to enhance knowledge, skills, and confidence across all roles. Encouraging reflective practice and continuous learning to sustain a motivated, competent workforce. HCS Barking and Dagenham remains dedicated to delivering safe, reliable, and compassionate home care. With ongoing investment in governance, quality irnprovement, and workforce development, the service is well-positioned for continued growth and excellence. Disabled People's Network (DPN) The Disabled People's Network (DPNI in Tower Hamlets, part of the Equalities Hub, continues to charnpion the rights, visibility, and inclusion of individuals with disabilities while strengthening community leadership and participation. Celebratlng Ablllty and Inclusion Apasen hosted a major community event to mark the International Day of Persons with Disabilities, supported by Tower Hamlets Council. The celebration highlighted achievements, raised awareness, and promoted equality through inspiring stories, performances, and discussions on inclusion. Network Collaboration and Advocacy Through regular meetings, DPN engaged with a wide range of local organisations to share best practices, identify emerging issues, and collaborate with Tower Hamlets Council on funding opportunities. accessibility, and health resources. These forums have been key in shaping strategies that amplify the voices of disabled residents. Communlty Empowerment and Wellbelng DPN played an active role in designing community engagement initiatives, ensuring that disabled individuals are meaningfully involved in decision-making processes. Working alongside partners, we prornoted inclusive participation through projects such as Disabilitysports Day, which encouraged fitness. friendship, and confidence among participants. Partnership and Inslght In collaboration with Tower Hamlets Council and the wider Equalities Hub, DPN contributed to consultations on digital inclusion, equality initiatives, and borough-wide sur¥eys addressing wellbeing and the cost-of-living challenges. These efforts continue to strengthen advocacy and shape policies that respond to the real needs of disabled people across Tower Hamlets. 12 asen Trustees Re ort 2025 Rlsks and Strate 1¢ Review The principal risks we typically face are: Property risks such as fire or equipment failure- Mitigated by regular building maintenance and external assessments Commercial risks from commissioning changes- Changes to social care funding arrangernents are always a risk year on year. We aim to minimise the impact by being a first choice provider in the communities we serve, through the outreach activities that we continue to do. Contract risks- With less contracts in place for next year, we will now review our fixed and variable COSt5, and reassess all costs tied up in premises. We will attempt to reassign carers to new or existing service users, and explore new contracts. There is an opportunity now for Apasen to offer new flexible care packages catering to other users (e.8. dementia , live-ins, hospital discharge), and demonstrate the highest standards in CQC compliance, as we have done in our last visits. The facts are that: London's ageing population and hospital discharge pressures continue to drive demand for homecare. Local authorities are diversifying provider networks. offering new opportunities for small and mediurn-sized providers. The private self-funded market is expanding rapidly, with clients seeking flexibility and high- quality personalised care. During the year, we also reviewed our internal financial controls, and added additional levels into our payment initiation and approval levels, in the process increasing transparency within the organisation, when it comes to procurement and suppliers. Losing the primary Homecare contract has created a significant short-term challenge but we now need to focus on becoming a resilient, client-focused, and diversified care provider. Through disciplined financial management, quality improvement, and strategic partnerships, the organisation can recover and achieve stronger long-term sustainability and market independence. 13 asen Trustees Re ort 2025 Financial Revlew The SOFA reports a -£0.63m position {2024: £1.75m surplus). From April 2024 we applied an uplift in rates to staff to pay the London living wage, but were subsequently informed by the local authorities that these uplifts could only be recovered in one of the quarters of the year, or none, depending on the contract. This was not the practice within these contract5 in past years, and it was the driver for the significant swing in the SOFA from 2024. Alongside this, Apasen has not received any further referrals for Homecare contract5 With the London Borough of Tower Hamlets in the year. Net assets are £10.3m, {2024: £llm). The Trustees do not consider the disposal of assets as necessary at the accounts signing date, but will exercise this option should alternative care contracts not be procured in the near future. Reserve5 The Board has determined that the appropriate level of free reserves should be between 3 to 6 months. operating expenditures, and they are currently within this target (Free reserve of £5.2m as per Accounts Note 12, equate to approximately 4 months, operational costs). In the event of a decline in free reserves below our desired policy levels, the charity will look into cost-savings, such as reorganisation of resources and assets. Goin concern The Board have continued to adopt the 'going concern, basis for accounts preparation, as management information to date, supports the continuing operational existence of the entity, 12 months from now. The local authority's decision not to renew our Homecare contract will lead to a drop in income, but there will also be a corresponding drop in costs as we look to TUPE staff and reorganise our assets and resources. It is the expectation of Trustees that Apasen's strong service history, spanning over 40 years, alongside available free reserves, should allow the organisation to pursue new opportunities . 14 asen Trustees Re ort 2025 Dirertors rustees. res nsibi15tles The Trustees (who are also Directors of Apasen for the purposes of Company law) are responsible for preparing the Trustees, Annual Report including the Strategic Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards {United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year. which give true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable companyforthat period. In preparing these financial statements, the trustees are required to: select suitable accounting policies and then apply them consistently. observe the methods and principles in the Charities SORP 2015 (FR5102I; make judgments and estimates that are reasonable and prudent; state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and prepare the financial statements on the going concern basis unless it Is not appropriate to assume that the charitable company will continue in operation. The Board of Trustees is responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company, and to enable them to ensure that the financial statements comply with Companies Act 2006. They are also responsible for safeguarding the assets of the cornpany and taking reasonable steps for the prevention and detection of fraud and other irregularities. Each Director / Trustee at the date of approval of this report confirms that: there is no relevant audit information of which the company's auditors are unaware; and they have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The Trustees, Annual Report and the Strategic Report were approved by the Board of Trustees (in their capacity as company directors) on 2. December 2025 and signed on its behalf by: Mr. Luqueman Hussain (Chair & Trustee) 15 APASEN ( A Company Limited by Guarantee) Independent Auditorfs Report to the Directors￿ruste68 of Apasen for the year ended 31 March 2025 Opinion INe have audited the financial statements of APASEN (Ihe 'charitable company,) for the year ended 31 March 2025 which comprise the Statement of Financial Activities, Ihe Balance Sheet, the Statement of Cash flows and notes to the financial statements, including a summary of signrficant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial ststements: give a Irue and fair view of the state of the charitable company's affairs as at 31 March 2025 and of its income and expenditure forthe year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accord8n¢e with International Stsndards on Auditing (UK) IISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitsble 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 Suff￿lent and appropriate to provide a basis for our opinion. Conclusions relating to golng concern In auditing the financial statements, we have concluded that the Trustses, use of the going concem 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 signifKant doubt on the charity's abilty to continue as a going concern for a period of at least trwelve months from when the financial statements are authorised for issue. Our r8sponsibilities and the responsibilities of the Trustees with respect to going concem are described in the relevant section5 of this report. Other Inforniation The other infomation comprises the information included in the annual report, other than the financial statements and our auditorfs report ther&on. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other infomiation and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 16 APASEN ( A Company Limited by Guarantse) Independent Auditorfs Report to the Directotsffrustees of Apasen for Ihe year ended 31 March 2025 In connection with our audit of the financial statements, our responsibility is to read the other infomation and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge of events obtained in the audit. If we identfy such material inconsistencies or apparent material misstatements, we a￿ required to detemiine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If. based on the work we have performed. we conclude that there is a material misstatement of this other infonnation, 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, report. which includes the director5, report prepared for the purposes of company law, for Ihe financial year for which the financial statements are prepared is consislent with the financial statements: and the directors. report included within the trustees. report has been prepared in accordan￿ with applicable legal requirements. Matters on which we are requlred to report by excepllon In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors, report included within the trustees. report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you rf. in our opinion.. adequate accounting records have not been kept. or returns adequate for our audit have not been received from branches not visited by us" or the financial ststements sre not in agreement with the accounting records and returns. or certain disclosures of trustees, remuneration specifpd by law are not made. or we have not received all the information and explanations we require for our audit. the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies. exemptions in preparing the trustees, report and from the requirement to prepare a strategic report. Responslbllltles of trustees As expjained more fully in the trustees. responsibilities statement in the Trustees, Report, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable Ihe 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 company's ability to continue as a going concern. disclosing, as applicable, matters related to going concern and using the going cOn￿M basis of accounting unless the trustees either intend to liquidate the company or to cease operations. or have no realistic alternative but to do so. 17 APASEN I A Company Limited by Guarantse) Independent Auditorfs Report to the Directorsrrrustees of Apasen for the year ended 31 March 2025 Auditor's responslbllltles for th8 audit of tho financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorfs 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, individualty or in the aggregate. they could reasonably be expected to Influen￿ the economic decisions of users taken on the basis of these financial statsments. Irregularities, including fraud, are instances of non one year 10 2.061.373 3,180,189 Total Net Ass•ts Funds Unrestrtcted funds: Designated 12 4,971,235 3,876,859 Unrestricted funds: General Total Unrestricted funds 12 5 248 964 10,220,199 6 976 355 10.853,214 Restricted Funds 11 122,163 122,163 Total Funds The notes on pages 23 to 32 fom part of these financial statements. These financial ststements have been prepared in accordance with the provisions applicable to companies subject to the small companies, regime and in accordance with FRS 102"The Financial Reporting Standard applicable in the UK and Republic of Ireland" These financial statements were approved by the board of directors and authorised for issue on 2nd D￿ernber 2025, and are signed on ehalf of the board by.. Mr Luqueman (rrustee) sain Ms Suraiya Khatun reasurer) 21 APASEN (A Company Limited by Guarantee) STATEMENTOF CASHFLOWS for the year ended 31 March 2025 2025 2024 Cash flow from Operatlng Activities Operating Profft Depreciation Finance Costs (Gain)ILoss on flxed asset disposal Operating Profit Before Working Capital Charges (Increase)IDecrease in DebtorJ Increasel(Decrease) in Creditors Cash from Operations Finance C05t Paid Net Cash Generated from Operatlons Cash flowfrom Investment Activiti•s Purchase of Tangible Fixed Assets Receipts from sale of tangible fLxed assets Net Cash flow from Investment Activities Cash flow from Financlng Activitie5 Increasel(Decrease) of Long Term 633,016 171,035 230,358 1,752,116 189,229 273.257 231,623 (859,545) 198,841 (892,327) (230,358) 2,214.602 (1,313,365) (15,707) 885,530 (273,25n {1,122,685) 612.273 17,890) (260,117) (7,890) {260,117) {1,118,815) (155,888) (1,118,815> {155,888) Net Increasel(deerease) In Cash and Cash Equivalents Opening Cash and Cash Equivalents Closing Cash and Cash Equivalents Reconciliation: Cash at bank and in hand (2,249,390) 4,733,025 196,268 4,536,757 2,483,635 4,733,025 22 APASEN ( A Company Llmlted by Guarantee) Notes to the financial statements for the year ended 31 March 2025 General infomiation Apasen is a registered charity. and a company limited by Guarantee, registered in England & Wales. In the event of the charity being wound up, the liabilty in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the companies charty information page of these financial statements. Accounting convention The financial slatements of the charity, which is a public benefit entty under FRS102, have been prepared under the historical cost convention. They have been prepared in accordance with applicable United Kingdom accounting standards. the requirements of the Statement of Recommended Practice 'Accounting and Reporting by Charities, (SORP 2019), in accordance with the Financial Reporting Standard applicable in the UK (FRS 102) applicable to smaller entities and the Charities Act 2011. The presentational currency of the financial statements is Pound Sterling (£). Accounting Policies 3.1 Going concern The trustees have taken into account the entty's forecasts and projections for the 12 months from signing these financial statsments. in confimiing their ass&8sment of Apasen as a going concem. The deficit in the year is considered an anomaly due to non-recovery of London Living Wage uplffts from local authority remittances for most of the year" these were being recovered with increases each tax year in the past. Cashflow forecasts have considered the cash reserves position after taking into consideration potential legal costs (Note 16), and relc¢ation expenses due to excess premises space. The loss of the Homecare servi￿5 contract will result in HOMeca￿ staff being transferred under TUPE ￿gUlations. and so is not expected to lead to signficanl employmenl related costs. The Trustees do not consider the disposal of leasehold properties as necessary at the accounts signing date, but also keep this as an option, if atternatNe care contracts are not procured in the near future. The cashflow projections also demonstrate the availabilty of reseNes to pursue new funding opportunities across Greater London. 3.2 Revenue Recognition All income was generaled within the United Kingdom, and is included in the Ststement of Financial Activities (SOFA) when the entty is legally entitled to the income afier any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received. Grants for immediate expenditure are accounted for when they become re￿1Vable. Grants received foT specific purposes are treated as restricted fijnds. Income under serdice level agreements are accounted for once the Servi￿ is delivered. 3.3 Allocation of costs Costs are allocated between restricted and unrestricled fund according to the terms of income. Where items expended are mixed, they are apportioned betW￿n the categories according to the income they relate to. 3.4 Support costs Support costs are those functions that assist the work of the charity but do not directty undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the Trusts programmes and activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. 23 APASEN (A Company Llmlted by Guarantee) Notes to the financial statements for the year ended 31 March 2025 3.5 Expendlture recognition All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. 3.6 Pensions The pension costs charged in the financial ststements represent the defined contribution payable during the year, on the basis of a minimum statutory percentage of pensionable earning. 3.7 Accountlng estimates Directors have exercised theirjudgement with regards to Ihe depreciation policy adopted (See Note 3.8) 24 APASEN ( A Company Limlted by Guarantee> Notes to the financial statements for the year ended 31 March 2025 Tanglble fixed assets and depreciation Freehold and long leasehold properties are capitalised at cost and depreciated on the following basis.. Land Not depreciated Building 100 years The charity changed its depreciation policy for freehold, and long-lease property from the year-ended March 2022, opting to depreciate under the component basis, where land is not depreciated. but structural elements of the buildings are Prior to this, freehold buildings were not depreciated, based on the premise that they were maintained to a high Standard, thus extending their useful life and residential Value . In the absence of regular impairment reviews however,adopting a depreciation policy seemed more appropriate. Other fixed assets of the charity are capitalised at cost. They are stated in the accounts at cost less depreciation. Depreciation is calculated to Y￿lte off the cost less their estimated residual value, over their expected useful lives on the following basis Fixtures, Fittings and EquipmenL Short leasehold improvements Motor Vehicles 21Y/ Reducing balance. Duration of lease 2￿/0 on cost Funds Unrestricted funds comprise the accumulated surplus or deficit in income and expenditure accounts. and are available for use at the discretion of Trustees, to further the general objectives of the entty. Designated funds comprise unrestricted fvnds that have been set aside by the trustees for particular purposes. Restricted funds are used in accordance with Specif￿ restrictions imposed by funders, or grantmakers. The cost of raising and administering such funds are charged against the specific fund. Current restricted funds of the entity are set out in Note 12. 3.10 Tax". Apasen is an exempt charty within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set OLrt in Paragraph 1 Schedule 6 Finance Act 2010, therefor8 meeting the definition of a charitable company for UK corporation tax purposes. 3.11 D8btors Trade and other debtors are recognised at the settlement amount due, as per contractual agreements. Prepayments are valued at the amount prepaid in advance of the service delivery period. 3.12 Cash at bank and In hand Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 3.13 Creditors and provisions Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably resuFt in the transfer of funds to a Ihird party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are nonnally recognised at their settlement amount after allowing for any trade div￿QUnIS due. 3.14 Financial Instruments The charity only has financial assets and fi'nancial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their Settlement value. 25 APASEN ( A Company Limited by Guarantee) Notes to the financial statements for the year ended 31 March 2025 4 Stsff Emoluments: 2025 2024 Total wages and salaries Empbyerfs NIC Pension contribution 12,052,978 1,026,336 11.676.920 919,569 208 801 Direct Chariiable Others 12,731,772 12,418,142 No of employees.. Admin No of employee5: Direct 14 613 11 Employees paid in excess of £60,000 during the current year and previous year other key management personnel received combined ￿MUneratIon of £231,474 (2024.. £220,031). The trusteesldirectors did not have any expenses reimbursed during the year12024: £Nil). S Tangibl• Fix¢d Assets: Motor Vehicles Freehold Property Leasehold Propety Leasehob Improvements Furniture & Equipment Totsl At 1st April 2024 Additions DÉsposal 48.590 4,055.354 2.681.741 1.099,417 515.164 7,8￿] 8.4(K1.266 7.890 48,590 4,055,354 2.681.741 1,099,417 523.054 8408 156 Depreciation: At 1st April 2024 Disposal elimination Charge for the year 48,590 76.049 148,573 260,432 412,8C 946.450 29,931 105,980 75,554 224,127 24,295 284.727 41,255 454.061 171031 48,590 1117481 Net Book Value As at 31 March 2025 3,949,374 2,457,614 814,690 68,993 As at 31 March 2024 3,979,305 2,533,168 838,985 102,358 26 APASEN ( A Company Limited by Guarantee) Notes to the financial statements for the year ended 31 March 2025 6 D•btors and prepayments: 2025 2024 Opportunity Zone Home and Communty Sepiices Croydon Project Apasen Lodge Disability Network Advice and Information Services Rent deposiis Other Debtors & Prepayments Trade credtiors receivable Accrued income 1,374,439 1,734,307 51,737 403,133 6,525 15.321 31,250 254,567 859.243 960,896 18.191 315,100 500 31,250 67,977 13,405 753 500 27 APASEN { A Company Limitsd by Guarantee Notes to the financial statements for the year ended 31 March 2025 7 Dlrect Charitable Expendlture: Unrestricted Restricted Funds Funds 2025 Total 2024 Totsl Opportunity Zone Horne and Community Services Advice and Information Services Croydon Project Apasen Lodge Disabilty Network Grant making (Apasen Inti) 1,947,203 10.800,027 1,947,203 10,800,027 104,584 477,432 541.586 59,255 50.000 13,980,087 1,749,004 10,819,092 81,437 439.149 568,770 27.984 50,000 13,735,436 104.584 477,432 541,586 59,255 50,000 213,839 Note 17118 13.766.248 8 Management And Admlnlstratlon: unrestrict￿ Restricted Funds Funds 2025 Total 2024 Totsl al Support Costs Office Administration Cost including Salaries Payroll Service Legal & Professional Fees Redundancy costs Consultancy Adverts and Publicty Membership & Subscriptions IT support and consumables Bank Charges Charitable donations Cleaning and general repairs Travelling, event costs and refreshments Insuran Repairs and maintenance Depreciation and Amortisation Loan Interest 533,533 19,153 89,747 ),286 5,411 533,533 19,153 89,747 90,286 5,411 8QK) 23,119 54,630 1,468 1,353 14,556 41,377 139,326 113,813 32,328 230,358 1,391,260 470,130 17,250 9,457 17,158 1,450 15,644 46,212 1,619 5,502 42,698 1,962 23,119 54,630 1,353 14,556 41.377 139.326 113,813 32,328 230.358 1,391,260 33,970 273,257 936,309 bl Govemance Costs Office Administration Cost including salaries Legal & Professional F&s Audit fees Accountsncy services Insuran Consultancy Membership & Subscriptions Management expenses 194,652 35,612 5.O¢X) 4.8CM) 194,852 35,612 5,0()J 4,8CM) 183,092 53,587 Note 14 4,800 25,236 3,028 2.749 3,614 2,429 200 2,429 200 242,693 242,693 1,633,953 281,105 1,217,415 1,633,953 28 APASEN l A Company Llmlted by Guarantee) Notes to the financial statements for the year ended 31 March 2025 Creditots . falling within one year 2025 2024 Accruals Unty Bank Loans Trade Creditors Pension provider PAYE and other Creditors 699,767 258,063 75,045 15,562 201741 638,829 396,768 14,814 926 10 Creditors: falling after more than one year 2025 2024 Unity Bank Loans 2 061373 3 180 189 11 R•stri¢tsd fund8 movement: Opening Balance Restricted Income Restricted Expenses Closing Balan Adjustment Home Care Consortium Advice and Information Services Disability Network Grdnt making {Apasen Intl) Total 122,163 122,163 68,617 26,608 104,584 59,255 50,000 213,839 35,967 32,647 50,000 118,614 122,163 95,225 122,163 12 Movement in funds: Vnrestrfcted Fund ffotal) Fund Fund Fund Totsl As at 1 April 2024 6.976.355 3,876.859 10.853.214 122,163 10,975,377 Current year (514,402) {514.402) (118,614) (633.015) Current year transfer (1.212.989) 1.094,376 (118,614} 118,614 As at 31 March 2025 5,248,964 4,971,235 10,220,199 122,163 10,342,362 As 8t 31 March 2025 designated funds of £4.9m were required to match the net cost of fixed assets, excluding loans still repayable on asset purchases. This left £5.2m of reserve funds for future operation of the charty, the majority (£3.9m) of which, were tied up in debtors at the year end {See Note 6). 29 APASEN I A Company Limited by Guarantee) Notes to the financial statement5 for the year ended 31 March 2025 13 Lease commltments: At 31 March 2025 the company had annual commitments on Commercial leases on property. The future minimum non-cancellable operating leases are as follows: 2025 2024 Under one year Between 2-5 years More than 5 years 189,087 332,000 211,317 332.000 The entty had no capitsl commitrnents as at 31103125 (2024: £nil) 30 APASEN ( A Company Limited by Guarantee) Notes to the financial statements for the year ended 31 March 2025 14 Audltofs Romuneratlon: 2025 2024 Auditofs Remuneration for the audit of the charity's annual accounts Fees Payable to the charity's auditor for non-audit services 15 Taxation: The entty is a registered charity, therefore being entitled to tax exemptions from HMRC 16 Contlngent Llabiliti¢s: Following vthistleblower allegations against Apasen, the London Borough of Tower Hamlets (LBTH), commissioned PWC to investigate with their findings reported in July 2024.The PWC report did not find evidence of fraud, money laundering or financial irregularities at Apasen. The whistleblower allegations were not substantiated or confimied in the investigation, but following it, it has been alleged by the LBTH Council that £.951,654.60 of Overpayments were made to Apasen by LBTH, between July and August 2021. This was during the introduction of a new payment processing system at LBTH. On 81h May 2025, Ihe Council fomally requested the repayment of these funds. In response, Apasen Trustees (finance subcomittee). appointed an independent examiner to investigate historic billing and payment cycles. The findings of the examiner did not support evidence of an overpayment to LBTH, but rather concluded that there had b&n a £95,150.56 underpayment from LBTH to Apasen. LBTH has not responded to the examineffs report. The matter is now in the jurisdiction of the courts, and as the outcome of the legal dispute remains uncertain. a provision has not been recognised in the financial statements 17 Related Party Transactlons: During the year, the entity provided £50,000 of funding to Apasen Intemalional, a charity that dra￿ on the expertise of Apasen, to provide similar services in Bangladesh. This has been classified in Note 7. The relationship of Apasen to Apasen Intemational is that of a grant-making one, with funds used exclusively from Apasen's unrestricted surpluses. 18 Grant making All grant making activity in the year related to Apasen International (See Note 17). The accounts ofApasen Intemational do not meet the threshold for audit, but are independently examined. There have been no further grantmaking activities since the year-end March 2025, and Ihe grant to Apasen International was the final instalment. 31 APASEN { A Company Limited by Guarantso) Notes to the financial statements forthe year ended 31 March 2025 19 Note to the statement of cashflows: Analysis of changes in net debt 0110412024 Cash fk•ws Non-¢ash ¢hangos 3110312025 Cash and cash equlvalents Cash £000 £'ooo £'ooo £'ooo 4,733 (2.250) 2.483 Overdrafts Cash equivalents Borrowlngs Debt due within one year 4,734 {2.250) 2.484 (397) (230) (258) Debt due after one year (3,180) (3.577) 1,119 (2,[￿1) (2,319) {230) Total 1.157 (2,250) {230) 165 20 Bank loans The charitable company's borr