**CHARITY REGISTRATION NUMBER: 1117924** 

# **Hhugs - Helping Households Under Great Stress Unaudited Financial Statements** 

## **31 March 2021** 

**BEGG, WILLIAMSON & CO** Chartered Certified Accountants 24 Church Road Crystal Palace London SE19 2ET 



**Hhugs - Helping Households Under Great Stress** 

## **Financial Statements** 

## **Year ended 31 March 2021** 

||**Page**|
|---|---|
|Trustees' annual report|**1**|
|Independent examiner's report to the trustees|**8**|
|Statement of financial activities|**9**|
|Statement of financial position|**10**|
|Notes to the financial statements|**11**|
|**The following pages do not form part of the financial statements**||
|Notes to the statement of financial activities|**19**|





**Hhugs - Helping Households Under Great Stress** 

## **Trustees' Annual Report** 

## **Year ended 31 March 2021** 

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

## **Reference and administrative details** 

**Registered charity name** Hhugs - Helping Households Under Great Stress **Charity registration number** 1117924 **Principal office** 4th Floor 43 Berkeley Square London W1J 5FJ ENGLAND **The trustees** F. ANSARI A. ALY M.J ZAKIR **Independent examiner** Z F Begg- FCCA Begg Williamson & Co 24 Church Road Crystal Palace London SE19 2ET 

## **Structure, governance and management** 

## **Governing document** 

The Trust is a registered Charity, number 1117924 and was established under a declaration of trust dated 8 June 2006 as amended 10 June 2008. 

**1** 



**Hhugs - Helping Households Under Great Stress** 

## **Trustees' Annual Report** _**(continued)**_ 

## **Year ended 31 March 2021** 

## **Objectives and activities** 

Who we are? 

Helping Households Under Great Stress (HHUGS) is a UK registered charity that exists to provide financial, emotional, and practical support and advice to Muslim households impacted by counterterrorism, national security and extremism-related laws, policies and procedures, in the UK and abroad. 

HHUGS have supported over 750 families over the 17 years in operations and continue doing so right here in the UK. These are families that deal with their main breadwinner getting arrested which ravishes the daily lives of the families, with over 80% of the individuals being women, children and elders which are of state pension age. 

Main Objectives 

To support the families, we have specialists who are trained to deal with these families from various backgrounds, irrespective of race, gender or social status. We thrive to make change to those who do not get supported for various reasons including the specialism in supporting individuals impacted by counter terror measures. 

Along with Activists, Patrons, Lawyers and Mental health specialists, we aim to relieve the financial and emotional hardship of detainees/former detainees & families held in the UK and Abroad, (so long as families are resident/citizens of the UK). By way of provision of counselling, emotional and practical support and financial assistance if the need arises. 

On the guidance of the Charity Commission's on public benefit, when reviewing our aims and objectives and in planning our future activities. 

The charity fulfil the public benefit requirement in some of the following ways, which is not only limited but: 

Providing funding for Education and Training 

- " Providing Counselling 

- " Providing Housing support 

- " Providing Mentoring support 

- " Providing Mental Health support 

- " Developing Partnership to restore Hope 

- " Providing Advice and Guidance where appropriate 

- " Relief of Financial Hardship 

HHUGS manage most of the fundraising through some of the campaign management. This comes through the support of majority of the income from the community. The key element of the fundraising is 'community fundraising'. This is to ensure, maximum income, through transparent services provided for our families, so the community are clear on the need for effective spending. 

**2** 



**Hhugs - Helping Households Under Great Stress** 

## **Trustees' Annual Report** _**(continued)**_ 

## **Year ended 31 March 2021** 

Some of the campaigns are as below: 

## 1. Ramadan 

Ramadhan is the biggest campaign of the year for HHUGS. Through this month, almost 90% of the income raised from the charity comes through this specific 30 days of Fundraising. During the holy month of Ramadan, the annual Islamic month of fasting ending with a festival called Eid al-Fitr, our families can become increasingly lonely, isolated and depressed. Remembering the good years that have passed before, they now face the daunting task of spending Ramadan alone, with little money to feed their fasting families. 

Many of the families simply cannot even apply for state benefits to support them, whether this is due to restrictions on the case or because they do not possess the right documents. HHUGS are there to make that change with the community’s help. Some beneficiaries in such situations, they are unaware if they would have survived without this essential help. 

"I couldn't apply for any benefits because I wasn't a UK national. It wasn't legal for me to work. I had no income. I was very depressed. HHUGS paid for my bills, my rent, my food. I think if HHUGS were not there I wouldn't be alive right now." 

At HHUGS we want to lighten Ramadan, reviving the spirit of our families during this joyous month. As such, we provided food vouchers to allow them to spend according to their needs from specific super stores and other local stores to purchase the basics such as oil, bread, meat and chic peas. A supply of dates to last the entire month is also provided where needed, gift packs for children containing activities and sweets, and vouchers for our families to purchase gifts for Eid al-Fitr. Due to the pandemic, it was unfortunate that we were not able to organize social gatherings which we normally have. This gives the chance for our families a chance to break their fasts with others who may be in similar situations as themselves, as well as Eid parties to celebrate the end of the holy month. On the grounds of the pandemic, we organized online sessions to give the families solace to be around others in the same or similar situations. 

As below, one of the beneficiaries stated: 

"Eid was empty without my husband. These occasions are supposed to be spent with your loved ones so it was difficult to enjoy them without him. But HHUGS made it easier when they took me all the way to go and see my husband on Eid day. These volunteers who had their own families to deal with, actually took us all the way up north on Eid and I was so grateful to them for their generosity. HHUGS even arranged Eid parties where there were bouncy castles, a candy floss machine and lots of activities where my son got to play with other kids. They got us gifts and during Ramadan I received a food pack and a little outfit for my son." 

And another quoted regarding the eid gifts: 

"On Eid they sent us a box of gifts which had little presents and Surayah was so happy, I cannot express what her happiness did for me. She was asking, 'Who is HHUGS?' and I said, 'they are our helpers in Islam.'" 

## 2. Qurbani 

Qurbani is an Islamic animal sacrifice taking place each year during the festival of Eid al-Adha. During this festival it is obligatory for all who qualify to sacrifice an animal and it is encouraged to distribute part or all of the meat that has been slaughtered to the poor and needy. Common practice sees the meat sent abroad, where millions of families are living in extreme poverty. But HHUGS encourages and facilitates the distribution of Qurbani meat to needy and poor families often overlooked in the UK. 

**3** 



**Hhugs - Helping Households Under Great Stress** 

## **Trustees' Annual Report** _**(continued)**_ 

## **Year ended 31 March 2021** 

We underestimate the desperate financial constraints of families in the UK, especially those whose husband and main breadwinner is no longer able to support them. Our families at HHUGS are in dire need. As such, we facilitated the distribution of Qurbani meat to their homes, providing relief and solace to families who often have little to look forward to. We want families to forget their troubles for at least one day, enjoy a celebratory meal and share in the joys of Eid al-Adha. 

"We would like to say a big thank you for the meat you gave and also for organising such a beautiful gathering. We pray that you carry on with your amazing work." Family of detainee 

## 3. Winter Campaign 

The second biggest campaign of the year. With the families who have little or no income due to the arrest of their loved one, without any choice or fault of their own, the struggle with the rising costs during the winter periods. 

For many of our families this year life won't be so cosy and warm. With forecasts predicting record lows in temperature and freezing blizzards, thousands of mothers and children will suffer the bite of the harsh frost, alone and isolated. 

Unable to afford their energy bills or buy additional clothes, our families often have no choice but to refrain from using the heating or else go without food. A survey by Save the Children found almost half of the parents from the lowest income families have said they are considering cutting back on food in order to pay their energy bills whilst a NetMums survey found 1 in 4 families have had to choose between heating and food. 

Many suffer physically as a result, with the cold increasing the susceptibility of illness and exacerbating pre-existing conditions. On average over the last 6 years alone, over 8,500 people have died annually due to living in cold homes as quoted by the . National fuel poverty charity NEA has highlighted that millions of people in cold homes are at greater risk this winter, as COVID-19 intensified seasonal stresses for those on lowest incomes and in the least efficient homes. It was revealed that 8,500 people died in England and Wales last winter due to cold homes. The figures are based on ONS figures released today which highlight that overall, there were 28,300 excess winter deaths, an increase of almost 20% on the previous winter. 

At HHUGS we believe that no one should suffer the brittle pains of the harsh cold weather. Everyone deserves to be warm during winter. That's why, for the past few years, we've dedicated a significant portion of our time and efforts to our Winter Campaign and we intend to continue this campaign for many years to come. This year we provided warm winter clothes and monthly stipends to cover the costs of heating bills, varying our stipends in accordance with the financial status of each family. This way we ensured that the neediest received enough support to stay warm the entire winter. 

"In Winter, they send us vouchers for clothing and sent us duvets to keep us warm. God knows the difference that HHUGS made to my life." 

## Relieving Burdens: Practical Support 

In an attempt to ease the burdens of our families and as part our of transport scheme, we facilitate prison visits. One of the most traumatic experiences that our families endure is visiting their loved one in detention. Not only do they have to worry about transportation, child minding and food and drink for the day, but they also witness their loved one in an alien, hostile and restricted environment. Entering a prison, undergoing fingerprinting, photographs, body searches and dog searches all contribute to the feeling of humiliation, causing many to feel as if they themselves have been convicted. 

To relieve the burden of prison visits HHUGS strives to facilitate each visit, making it as smooth and easy as possible. We arrange for volunteers to collect the family from their doorstep and drive them to 

**4** 



**Hhugs - Helping Households Under Great Stress** 

## **Trustees' Annual Report** _**(continued)**_ 

## **Year ended 31 March 2021** 

and from the prison. Saving energy and time, this allows the visit to become instantly easier. In circumstances where we are unable to obtain a driver, we cover the costs of a taxi or train fare. To this end, we made financial payments to meet expenses associated with visiting imprisoned family members across the country. We also provided others forms of practical support such as general transport, grocery shopping, childcare, domestic help, assembling furniture, gardening, food rotas and anything that could help our families. 

"We often take it for granted that we can see our loved ones on Eid...Even if it was the weekend after Eid that day would feel like Eid. Alhamdulillah we were able to see our relatives and spend time with them even if for only about 90 mins." 

## Rebuilding Lives and bring back Honour 

At HHUGS we aim to empower the families. We have a non judgment policy, and go through a rigorous due diligence process to ensure the right support is provided for families and individuals, ensuring they are confident to make the right choices in life. 

After the release from detention is a shock to the system in many ways. With no job, in some cases a criminal record, few qualifications, a strained marriage and family relations and the unforgiving stigma of having been detained as a terror suspect, the former detainee or prisoner has a harsh reality to face. 

At HHUGS we understand the importance of resettlement and reintegration into society and this is why we offer several services designed to ease the transition from prison to normality. We have provided business loans to those with viable business plans, educational scholarships, family or anger management counselling, housing advice, rental contributions and counselling schemes upon release from custody. 

## Mentoring Scheme. 

We are currently working with almost 750 individuals, more than 40% of those are young people. HHUGS have developed a pilot mentoring scheme which aims to enable our young people and the new generation to be empowered and determined to succeed in life with the relevant support and guidance by a trained mentee. With this project, we seek to help young beneficiaries with an opportunity to hone their talents, abilities, skills and capabilities. 

We hope to encourage imagination, and creativity in order to view a future beyond circumstances, supporting them to improve their emotional, intellectual and spiritual responses to the challenges they face and beyond. Mentoring is a very personal and informal tool which can support young beneficiaries to deal with challenges they face on account of arrests, raids, and detention of a loved one. What matters most is that people are there to listen to you in your hour of need and offer sound advice at your most vulnerable. However, we went back to school to support everyone else. Once again. 

Our aim is to provided the right tools and support, emotionally and mentally from skilled and trained mentors to develop the young person, in moving ahead with life. 

## Back to School 

One for the school children. The trauma of a father arrested and in prison, the children often suffer the most. The families struggle to buy the bare minimum due to financial difficulties, such as shirts, trousers and any other outfits, let alone pay for curriculum activities and school trips. These children are often bullied for their attire and old clothes, and it is the children that do not know where to turn. 

HHUGS manage the Back-to-School campaign in order to raise the much needed funds for the children to attend school, stand up tall and be confident in themselves. No children should be going through such trials. 

**5** 



**Hhugs - Helping Households Under Great Stress** 

## **Trustees' Annual Report** _**(continued)**_ 

## **Year ended 31 March 2021** 

One of the beneficiaries wrote of their children to HHUGS: 

"Our child was very happy that he has everything that other school children have. That he was able to wear new clothes and not have anxiety about wearing ill-fitting, worn-out things." 

Partnership-Working together to restore Hope 

HHUGS have teamed up with various charities and platforms to enable the correct and tailored support and advice is provided to the charity which can be directed towards the beneficiaries. This does not only include financial assistance to support the ever growing 230+ UK families but also direct guidance where appropriate in the delivering of excellence service in the charity industry to our beneficiaries. 

HHUGS have also worked with many different organisations to help us raise much needed fund through your support. Through our restaurant project, we have collectively raised almost£4,000 for the families. This wouldn't be possible without the ongoing support from our existing and developing partners as well as the community. 

Investing in the Future: Empowerment 

For most of us a life without our husband, father or brother is difficult to envision. We take for granted how much they do for us and how much we rely on them for everyday support. But for many families, this sad reality has finally hit home. With no breadwinner in the house and no community support, many wives of detainees or those under house arrest are forced to rely on others. Thrown in the deep end and lacking key functional skills like the ability to speak English, drive or work, their day-to-day necessities become near impossible. As a result such women become entirely dependent upon the few charitable friends and family they have. As their confidence and self-worth declines, vulnerable mothers descend into isolation, falling behind with necessary duties like paying the bills or, in the initial upheaval, even taking the children to school. 

To this end, we provided initial emergency support like food, transport services and financial assistance but our responsibility extended much further than this. We also organised English language courses for the wives of detainees where appropriate and paid for driving lessons so female beneficiaries could become more independent and less reliant on others. "HHUGS helped me gain independence by paying for my driving lessons and supporting me so I could pass my driving test. I cannot thank HHUGS enough for the help and support they have given us, the list of things they have done for us is endless!" 

**6** 



## **Hhugs - Helping Households Under Great Stress** 

## **Trustees' Annual Report** _**(continued)**_ 

## **Year ended 31 March 2021** 

## **Financial review** 

The Trustees are satisfied the with the results of the Charity. 

RESERVE POLICY 

The Charity aims to retain £ 114,000 as a reserve fund in the eventuality of the Charity winding down its activities. 

The trustees' annual report was approved on 17 August 2022 and signed on behalf of the board of trustees by: 

F. ANSARI A. ALY Trustee Trustee 

M.J ZAKIR Trustee 

**7** 



**Hhugs - Helping Households Under Great Stress** 

## **Independent Examiner's Report to the Trustees** 

## **Year ended 31 March 2021** 

I report to the trustees on my examination of the financial statements of Hhugs - Helping Households Under Great Stress ('the charity') for the year ended 31 March 2021. 

## **Responsibilities and basis of report** 

 to state whether particular matters have come to my attention. The trustees are also the directors of the company for the purposes of company law are responsible for the preparation of the financial statements. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. The charity's gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified member of 'Accounting body'. Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to: 

examine the accounts under section 145 of the 2011 Act; 

follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and 

## **Independent examiner's statement** 

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants(ACCA), which is one of the listed bodies. 

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 

1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or 

2. the financial statements do not accord with those records; or 

3. the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination. 

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. 

Z F BEGG-FCCA Independent Examiner 

Begg Williamson & Co 24 Church Road Crystal Palace London SE19 2ET 

17 August 2022 

**8** 



## **Hhugs - Helping Households Under Great Stress** 

## **Statement of Financial Activities** 

## **Year ended 31 March 2021** 

||||**2021**||2020|
|---|---|---|---|---|---|
|||Unrestricted|Restricted|||
|||funds|funds|**Total funds**|Total funds|
||**Note**|**£**|**£**|**£**|£|
|**Income and endowments**||||||
|Donations and legacies|**4**|631,342|319,552|950,894|738,233|
|||--------------------------------|--------------------------------|--------------------------------|--------------------------------|
|**Total income**||631,342|319,552|950,894|738,233|
|||================================|================================|================================|================================|
|**Expenditure**||||||
|Expenditure on raising funds:||||||
|Costs of raising donations and||||||
|legacies|**5**|72,433|–|72,433|62,475|
|Expenditure on charitable activities|**6,7**|412,505|319,552|732,057|724,635|
|||--------------------------------|--------------------------------|--------------------------------|--------------------------------|
|**Total expenditure**||484,938|319,552|804,490|787,110|
|||================================|================================|================================|================================|
|||--------------------------------|--------------------------------|--------------------------------|--------------------------------|
|**Net income/(expenditure) and net**||||||
|**movement in funds**||146,404|–|146,404|(48,877)|
|||================================|================================|================================|================================|
|**Reconciliation of funds**||||||
|Total funds brought forward||18,642|–|18,642|67,519|
|||--------------------------------|--------------------------------|--------------------------------|--------------------------------|
|**Total funds carried forward**||165,046|–|165,046|18,642|
|||================================|================================|================================|================================|



The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. 

**The notes on pages 11 to 17 form part of these financial statements.** 

**9** 



## **Hhugs - Helping Households Under Great Stress** 

## **Statement of Financial Position** 

## **31 March 2021** 

|||**2021**|2020|
|---|---|---|---|
||**Note**|**£**|£|
|**Fixed assets**||||
|Tangible fixed assets|**13**|425|426|
|**Current assets**||||
|Debtors|**14**|1,000|1,000|
|Cash at bank and in hand||186,590|40,794|
|||--------------------------------|----------------------------|
|||187,590|41,794|
|**Creditors: amounts falling due within one year**|**15**|22,969|23,578|
|||--------------------------------|----------------------------|
|**Net current assets**||164,621|18,216|
|||--------------------------------|----------------------------|
|**Total assets less current liabilities**||165,046|18,642|
|||--------------------------------|----------------------------|
|**Net assets**||165,046|18,642|
|||================================|============================|
|**Funds of the charity**||||
|Unrestricted funds||165,046|18,643|
|||--------------------------------|----------------------------|
|**Total charity funds**|**16**|165,046|18,643|
|||================================|============================|



These financial statements were approved by the board of trustees and authorised for issue on 17 August 2022, and are signed on behalf of the board by: 

F. ANSARI Trustee 

A. ALY Trustee 

M.J ZAKIR Trustee 

**The notes on pages 11 to 17 form part of these financial statements.** 

**10** 



**Hhugs - Helping Households Under Great Stress** 

## **Notes to the Financial Statements** 

## **Year ended 31 March 2021** 

## **1. General information** 

The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is 4th Floor, 43 Berkeley Square, London, W1J 5FJ, ENGLAND. 

## **2. Statement of compliance** 

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)) and the Charities Act 2011. 

## **3. Accounting policies** 

## **Basis of preparation** 

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure. 

The financial statements are prepared in sterling, which is the functional currency of the entity. 

## **Going concern** 

There are no material uncertainties about the charity's ability to continue. 

## **Disclosure exemptions** 

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) No cash flow statement has been presented for the company. (b) Disclosures in respect of financial instruments have not been presented. 

## **Fund accounting** 

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes. 

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment. 

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal and fall into one of two sub-classes: restricted income funds or endowment funds. 

**11** 



**Hhugs - Helping Households Under Great Stress** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year ended 31 March 2021** 

## **3. Accounting policies** _**(continued)**_ 

## **Incoming resources** 

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income: 

- income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably. 

- legacy income is recognised when receipt is probable and entitlement is established. 

- income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers. 

- income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted. 

## **Resources expended** 

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates: 

- expenditure on raising funds includes the costs of all fundraising activities, events, noncharitable trading activities, and the sale of donated goods. 

- expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities. 

- other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities. 

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis. 

## **Tangible assets** 

All fixed assets are initially recorded at cost. 

**12** 



**Hhugs - Helping Households Under Great Stress** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year ended 31 March 2021** 

## **3. Accounting policies** _**(continued)**_ 

## **Depreciation** 

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows: 

Office 

- 25% straight line 

## **Impairment of fixed assets** 

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. 

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. 

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units. 

## **Financial instruments** 

A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument. 

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs. 

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted. 

Debt instruments are subsequently measured at amortised cost. 

Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment. 

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. 

Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship. 

**13** 



**Hhugs - Helping Households Under Great Stress** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year ended 31 March 2021** 

## **3. Accounting policies** _**(continued)**_ 

## **Financial instruments** _**(continued)**_ 

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised. 

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. 

Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised. 

## **4. Donations and legacies** 

||Unrestricted|Restricted|**Total Funds**|
|---|---|---|---|
||Funds|Funds|**2021**|
||£|£|**£**|
|**Donations**||||
|Donations|565,472|281,552|847,024|
|**Gifts**||||
|GIFT AID|65,870|–|65,870|
|**Grants**||||
|Grants receivable|–|38,000|38,000|
||--------------------------------|--------------------------------|--------------------------------|
||631,342|319,552|950,894|
||================================|================================|================================|
||Unrestricted|Restricted|Total Funds|
||Funds|Funds|2020|
||£|£|£|
|**Donations**||||
|Donations|268,918|363,622|632,540|
|**Gifts**||||
|GIFT AID|85,693|–|85,693|
|**Grants**||||
|Grants receivable|20,000|–|20,000|
||--------------------------------|--------------------------------|--------------------------------|
||374,611|363,622|738,233|
||================================|================================|================================|



**5. Costs of raising donations and legacies** 

||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|---|---|---|---|---|
||Funds|**2021**|Funds|2020|
||£|**£**|£|£|
|Costs of generating income - EVENTS|72,433|72,433|62,475|62,475|
||============================|============================|============================|============================|



**14** 



## **Hhugs - Helping Households Under Great Stress** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year ended 31 March 2021** 

## **6. Expenditure on charitable activities by fund type** 

||||Unrestricted|Restricted|**Total Funds**|
|---|---|---|---|---|---|
||||Funds|Funds|**2021**|
||||£|£|**£**|
||Activity||161,795|258,874|420,669|
||Support costs||250,710|60,678|311,388|
||||--------------------------------|--------------------------------|--------------------------------|
||||412,505|319,552|732,057|
||||================================|================================|================================|
||||Unrestricted|Restricted|Total Funds|
||||Funds|Funds|2020|
||||£|£|£|
||Activity type 1||79,583|363,622|443,204|
||Support costs||281,429|–|281,431|
||||--------------------------------|--------------------------------|--------------------------------|
||||361,012|363,622|724,635|
||||================================|================================|================================|
|**7.**|**Expenditure on charitable activities by activity type**|||||
|||Activities||||
|||undertaken|Support|**Total funds**|Total fund|
|||directly|costs|**2021**|2020|
|||£|£|**£**|£|
||Activity|420,669|194,133|614,802|629,342|
||Governance costs|–|117,255|117,255|95,293|
|||--------------------------------|--------------------------------|--------------------------------|--------------------------------|
|||420,669|311,388|732,057|724,635|
|||================================|================================|================================|================================|
|**8.**|**Net income/(expenditure)**|||||
||Net income/(expenditure) is stated after|charging/(crediting):||||
|||||**2021**|2020|
|||||**£**|£|
||Depreciation of tangible fixed assets|||–|140|
|||||==============|==============|
|**9.**|**Auditors remuneration**|||**_**|**_**|
|**10.**|**Independent examination fees**|||||
|||||**2021**|2020|
|||||**£**|£|
||Fees payable to the independent examiner for:|||||
||Independent examination of the financial statements|||2,500|2,000|
|||||=======================|==============|



## **11. Staff costs** 

The average head count of employees during the year was 9 (2020: 8). 

No employee received employee benefits of more than £60,000 during the year (2020: Nil). 

**15** 



**Hhugs - Helping Households Under Great Stress** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year ended 31 March 2021** 

## **12. Trustee remuneration and expenses** 

Payments of £ 28,068 under a Contractor and Consultancy agreement was paid to Mr A Aly who is a trustee . 

No trustee expenses have been incurred; 

## **13. Tangible fixed assets** 

|||**Fixtures and**|
|---|---|---|
|||**fittings**|
|||**£**|
|**Cost**|||
|**At 1 April 2020 and 31 March 2021**||11,265|
|||============================|
|**Depreciation**|||
|**At 1 April 2020 and 31 March 2021**||10,840|
|||============================|
|**Carrying amount**|||
|**At 31 March 2021**||425|
|||============================|
|At 31 March 2020||425|
|||============================|
|**Debtors**|||
||**2021**|2020|
||**£**|£|
|Other debtors|1,000|<br>1,000|
||=======================|=======================|
|**Creditors:** **amounts falling due within one year**|||
||**2021**|2020|
||**£**|£|
|Trade creditors|7,228|<br>960|
|Accruals and deferred income|15,741|<br>22,618|
||----------------------------|----------------------------|
||22,969|<br>23,578|
||============================|============================|



## **14. Debtors** 

## **15. Creditors: amounts falling due within one year** 

## **16. Analysis of charitable funds** 

## **Unrestricted funds** 

|**Unrestricted funds**|||||||
|---|---|---|---|---|---|---|
|||||||**At**|
|||At|||**31 March**|**20**|
||1|April 2020|Income|Expenditure||**21**|
|||£|£|£|£||
|General funds||18,642|631,342|(484,938)|<br>165,046||
|||============================|================================|================================|================================||
|||||||At|
|||At|||31 March|20|
||1|April 2019|Income|Expenditure||20|
|||£|£|£|£||
|General funds||67,519|374,611|(423,487)|<br>18,643||
|||============================|================================|================================|============================||



**16** 



**Hhugs - Helping Households Under Great Stress** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year ended 31 March 2021** 

## **16. Analysis of charitable funds** _**(continued)**_ 

## **Restricted funds** 

|**Restricted funds**|||||||||
|---|---|---|---|---|---|---|---|---|
|||||||||**At**|
||||At|||**31**|**March**|**20**|
||1|April|2020|Income|Expenditure|||**21**|
||||£|£|£||£||
|Restricted Fund|||–|319,552|(319,552)|||–|
||||==============|================================|================================||==============||
|||||||||At|
||||At|||31|March|20|
||1|April|2019|Income|Expenditure|||20|
||||£|£|£||£||
|Restricted Fund|||–|363,622|(363,622)|||–|
||||==============|================================|================================||==============||



**17** 



**Hhugs - Helping Households Under Great Stress** 

## **Management Information** 

## **Year ended 31 March 2021** 

**The following pages do not form part of the financial statements.** 

**18** 



## **Hhugs - Helping Households Under Great Stress** 

## **Notes to the Detailed Statement of Financial Activities** 

## **Year ended 31 March 2021** 

||**2021**|2020|
|---|---|---|
||**£**|£|
|**Income and endowments**|||
|**Donations and legacies**|||
|Donations|847,024|632,540|
|GIFT AID|65,870|85,693|
|Grants receivable|38,000|20,000|
||--------------------------------|--------------------------------|
|**Total income**|950,894|738,233|
||================================|================================|
||**2021**|2020|
||**£**|£|
|**Costs of raising donations and legacies**|||
|**Costs of generating income - EVENTS**|||
|Fund Raising expenses|27,186|13,461|
|Advertising|45,247|49,014|
||----------------------------|----------------------------|
||72,433|62,475|
||----------------------------|----------------------------|
||----------------------------|----------------------------|
|**Costs of raising donations and legacies**|72,433|62,475|
||============================|============================|
|**Expenditure on charitable activities**|||
|**Activity type 1**|||
|**_Activities undertaken directly_**|||
|GRANTS- Emotional support|1,060|2,550|
|GRANTS- Financial support|353,242|187,311|
|GRANTS- Empowerment|1,035|3,199|
|GRANTS- Living expenses|22,300|206,219|
|GRANTS- Education|3,800|7,140|
|GRANTS- Practical|39,232|36,785|
||--------------------------------|--------------------------------|
||420,669|443,204|
||--------------------------------|--------------------------------|
|**_Support costs_**|||
|Support charitable activity 1 - wages/salaries|161,136|143,639|
|Support charitable activity 1 - employer's NIC|13,554|10,635|
|Support charitable activity 1 - Office Rent|6,727|9,662|
|Support charitable activity 1 - Volunteer expenses|1,435|1,811|
|Telephone|2,201|2,846|
|Depreciation|–|140|
|General office running costs|9,080|17,405|
||--------------------------------|--------------------------------|
||194,133|186,138|
||--------------------------------|--------------------------------|
|**Governance costs**|||
|Accountancy & bookkeeping fees|212|326|
|Examiners fees|2,500|2,000|
|Consultancy fees|28,068|30,944|
|Professional fees|86,321|61,958|
|Bank charges|154|65|
||--------------------------------|----------------------------|
||117,255|95,293|
||--------------------------------|----------------------------|
||--------------------------------|--------------------------------|
|**Expenditure on charitable activities**|732,057|724,635|
||================================|================================|



**19**