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2021-03-31-accounts

Diversity House Limited

ANNUAL REPORT 2020/2021 – CEO STATEMENT

TABLE OF CONTENTS

Diversity house equality, diversity & inclusion statement. __ 3 The chairperson's statement ______ 5 Chief executive's introduction _____ 6 Highlights from our Year ______ 7 Looking Ahead _______ 8 COVID-19 Themed projects _____ 10 BAME Women's Experiences of COVID-19 ___ 10 Innovative Ways of Working during the Pandemic. _ 14 COVID-19 VIRTUAL SERVICES ____ 15 Gender ________ 16 Ethnicity _______ 17 Religion _______ 17 The primary language spoken at home ____ 17 Immigration status _______ 18 Marital status _______ 18 Type(s) of mental health issue _____ 18 Age Bracket _______ 19

DIVERSITY HOUSE EQUALITY, DIVERSITY & INCLUSION STATEMENT.

Diversity House is committed to promoting equality, valuing diversity; being fair and inclusive in all our work as; a charity that tackles social inequalities; a service

provider and as an employer; treating our stakeholders, service users and staff (paid and unpaid) with dignity and respect and therefore ensuring that the equality duties are being met. Our precise aim is to build equality, diversity, and inclusion (EDI) into everything we do.

Diversity House believes that EDI promotion is vital in combating injustice against those who share protected characteristics under the Equality Act 2010. It is illegal and unfair for a person to experience a disadvantage based on a protected characteristic; all our staff and stakeholders are entitled to expect that they will be treated fairly. Diversity House aims to be a more inclusive workplace because organisations free from discrimination can work more efficiently and achieve the most significant benefits.

We will continue to be a wholly inclusive service where differences are encouraged, respected, and valued. As an Equality and Human Rights Champion, we require all our partners and collaborators to comply with equalities legislation and actively promote Equality, Diversity, and Inclusion (EDI). Aims

THE CHAIRPERSON'S STATEMENT

"I am pleased to confirm that Diversity House Limited supports the ten principles of

the UN

Compact concerning human rights, labour, environment, and anti-corruption. With this

commitment, we express our intent to advance these principles within our sphere of influence

and will make a clear statement of this commitment to our stakeholders and the public.

We also pledge to take part in the activities of the UN Global Compact where appropriate and

feasible – through, for instance, participation in Local Networks involvement in specialised

initiatives and workstreams; engagement in partnership projects; and reviewing and providing

commentary to participating companies on their communication on progress".

Christine Locke CEO

Diversity House signatory to the UN Global Compact

CHIEF EXECUTIVE'S INTRODUCTION

OUR ORGANISATION

The past year has been a period of turbulence and upheaval, a situation caused by the global pandemic. Covid-19 severely disrupted our plans for the year. At the height of the lockdown due to the COVID-19, We were forced by Kent County Council to vacate the premises that we called home since the inception of our Charity in 2007. Lockdown meant that most of our staff had to transition working from home.

Also, with no offices to operate from, we were forced to set up a makeshift office at my home studio whilst turning my conservatory into a food bank; it was business as usual.

Despite everything, we achieved some extraordinary results – many of which are documented in this report. For that, I want to pay tribute to our extraordinary people's professionalism, commitment, and resolve. They went way beyond the call of duty. The challenges presented by the pandemic have brought out the best in our colleagues, who are working to help vulnerable individuals and their families in their hour of need. This includes volunteers who have continued to support our services by delivering food parcels, home visits, counselling, and befriending. The board is incredibly proud of their response to the crisis and their enduring commitment to Charity's values.

OUR CULTURE

Last year, we continued our journey on organisational culture. Diversity House is built on an unrelenting ambition for promoting community integration, reintegration, inclusion, and cohesion. Our vision is to live in an equitable society. However, this ambition must be harnessed to a culture of kindness, respect and support for staff and service users.

Highlights from our Year

Find out about our resources and how we have engaged and supported people in 2020 21.

Listening and supporting.

This year

Information, advice, guidance, and advocacy = 1567

Virtual & in person socialization = 1379 Telephone & email contacts = 212

Responding to the pandemic

We engaged with and supported

2,783

people during the COVID-19 pandemic this year spent 8, 752.06 people hours on service delivery

Soldiers of love

One hundred sixty-six volunteers

helped us to carry out our work. Weekly home visitations = 195

We employed four new staff

To help ready the census support centre

Evidence-based knowledge

191 BAME women were interviewed on their experiences of COVID-19

Three-country collaborative research with partners from Germany, Belgium, and the UK

Operating Headquarters

December 2020, we moved to our new offices

“I am confident that we are coming from a position of strength. We know the world will not go backwards, so instead of preparing for ‘recovery’, we are working towards a ‘resurgence”.

Looking Ahead

Diversity House has weathered the stormy and choppy waters caused by the pandemic very well. The ability to adapt, be flexible, learn new things and apply your core strengths all go hand. Moreover, the different programs we have established to reinforce the resilience of our communities have already begun to bear fruit. We will pursue these to continue bolstering our Charity's ability to adapt and be resilient.

Moreover, we can see and feel the great opportunities that such a significant blow like the COVID-19 pandemic can have on our daily operation as a charity. Diversity House chooses to look and grab the opportunities offered by the global pandemic. Working behind the scenes, we have polished our consultancy skills, forging learning alliances with academic, business, health and social care services, NGOs, and individuals to upskill and upscale our Charity, making it ready for a 'centre for innovation, development and empowerment in Kent and outside of the county. In this year, we have become digitally savvy. The COVID-19 pandemic has accelerated this development.

We have certainly picked up the pace and will continue to power ahead – with digital topics, digital solutions, digital products, remote services, and web-based communication formats that will take Diversity House and our service users into the future. Furthermore, perhaps this has given us the push we needed to deploy digital methods in our Charity consistently. To this end, we announce to you that we are embarking on a digital inclusion journey and taking our whole community with us through our planned digital studios, which will be operational in the new year.

Stay safe. Sincerely,

Christine Locke CEO 02/12/2021

COVID-19 THEMED PROJECTS

BAME Women's Experiences of COVID-19

This year we understand that the COVID-19 pandemic has had a significant impact on the lives of everyone. However, research regarding the number of deaths from COVID-19 has identified that "People from all minority ethnic groups (apart from Chinese and mixed-race groups) are at greater risk of becoming very sick with COVID-19 than the white population in the UK. Black men and women are nearly twice as likely as white

people to die from COVID-19" (NRHI, 2020).

We realise that although BAME women have been impacted more by the pandemic, many have also demonstrated strength and courage during this time. Therefore, to support the BAME groups that have borne the brunt of the upsurge of the pandemic, we engaged with 191 BAME women across Kent and Medway to identify the experiences of these BAME women, portraying how they coped during the COVID-19 pandemic. The legacies from the participatory work with the BAME women were later shared with others in the communities, showing how one can gain inner strength and power to address social difficulties and learn from them.

BAME Shake Your Body Project

A crucial outcome from the collaborative research project described above was setting up a health promotion project, based on improving the psychological and physiological lives of the BAME women by equipping them with their bicycles and teaching them how to ride their bicycles.

Diversity House chose to deliver the BAME Shake Your Body project because of the health inequalities among BAME communities. The COVID-19 highlighted the vast gulf in the health of these communities. Public Health England report of June 2020 published in the heat of the pandemic buttressed that the coronavirus disproportionately impacted BAME communities. It also highlighted the factors that lead to the health inequalities in these groups.

The health beliefs, living in houses without spaces for exercises, were primarily among the factors reported. Also, with local knowledge, Diversity House noted that the minority communities were struggling with isolation, anxiety, and loneliness during the lockdown; therefore, to mitigate these risk factors to quality of life, we decided to use cycling, walking, running, and befriending to promote the health of our BAME communities without leaving the mainstream community behind. In the height of the pandemic, Diversity House, through some funding from Kent Sport and the support from O3e, built and donated fifteen (15) bikes to fifteen women who had never ridden on a bicycle. Apart from these direct beneficiaries of the bike donation, 280 other people benefitted from the project's activities through joining us at our regular cycling at the Milton Creek Park, attending workshops or other social events (carried out following the social distancing directives at the time).

"The activities were enjoyable as it was flexible, building on everyone's strength while providing support to ensure that no one was left behind. Activities that were delivered were what the beneficiaries asked for, making it very interesting.

A total of 280 people from diverse backgrounds benefited from the project".

Evidence gathered from these beneficiaries showed that the project had positive impacts on their health and social wellbeing leading to:

Reduced anxieties & worries

Increased friendships Increased skills

Reduced loneliness & isolation

Increased resilience

The project was a success, and this is because we used an innovative approach to gaining the buy-in of the participants by providing individual bikes and accessories to those that want to learn how to ride cycles. For those who want to run or walk, we also provide the facilities that will enable them to carry out these activities in a safe and contained environment.

Improving mental health and wellbeing during the lockdown Over 2202 communities were engaged in regular walks at the scenic Milton Creek Country Park. The regular walks carried out whilst following the social distancing directives helped calm the anxieties of our service users.

Innovative Ways of Working during the Pandemic.

Diversity House developed a hybrid way of operating to achieve its social

responsibilities. These hybrid approaches incorporate both in-person and virtual support to our communities.

COVID-19 VIRTUAL SERVICES

We set up a range of support services for our intergenerational service users and communities. These online virtual services range from health and wellbeing to drop-in one to one, advice and support, social and life skills training and can be accessed via video chats with our staff on Zoom video conferencing software. Each support session for individuals lasted between 30 to 60 minutes and could be accessed on phones, tablets, or computers.

Door to Door Visitation

We combined the virtual support with door-to-door visitation this year, ensuring that our most vulnerable service users were well looked after. This year, due to the pandemic, we carried out weekly door visits to 195 vulnerable people, checking that they were well and running urgent errands for them.

Data analysis of beneficiaries

Table of numbers served on different aspects of our services.

Type of service Number of people Number of sessions/items
One-to-one support 1,525
Walking 2202 attendances.
Weekly walker = 212		 118 sessions
Running – Park run 1949 attendances.
Regular weekly runners =
207		 94 sessions
Weekly Cycling 280 different people. 15
bikes were built and
given away.		 106 sessions
Generic Food distribution 213 households 1960 food boxes
Cultural food distribution 212 households 2071 boxes
Babies' food, nappies,
clothes, bath items, toys,
prams, cots, etc.		 2214 items
Home equipment –
furniture, plates, cutlery
sets, pots, etc.		 210 people
Type of service Number of people Number of sessions/items
Mentoring 172 94 sessions
Digital inclusion
(cybersecurity
workshops, one-to-one
support primary IT, etc.)		 208 people
Digital devices gifted
(iPad, internet
connectivity)		 10 people 10 iPad.
24 months internet
access
Mental health support
using creative Art and
storytelling		 178 people
Brief motivational
intervention		 213 people
Befriending 164 people 107 sessions
Referrals made in and out
of Diversity House		 1316

Some demographic data of our service

beneficiaries.

Gender

Gender Number of attendances Number of sessions
Female
1131		 226
Male 169 59
No data 1483 102
Total 2783 387

Ethnicity

Number of Number of
Ethnicity attendances sessions
Any other Black/African/Caribbean 61 39
background
Any other White background 18 18
Any other ethnic group 16 16
Asian - Asian British 22 10
Asian/Asian - Asian 15 14
Black/ Caribbean/ African - Black British
833		 225
European 1 1
Mixed - White and Black African 106 52
Mixed- White and Black Caribbean 3 3
Mixed/Multiple ethnic groups - White 1 1
and Asian
White - English/ Welsh/ Scottish/ Irish/ 164 117
British
No data 1543 129
Total 2783 625

Religion

Number of Number of
Religion attendances sessions
Christian (including Church of England, 1031 225
Catholic, Protestant and all other Christian
denominations)
Hindu 10 9
Islam 22 22
Muslim 37 22
No data 1680 163
Prefer not to say 3 2
Total 2783 443

The primary language spoken at home

Main language spoken at home Number of attendances Number of sessions
Arabic 1 1
Bengali 5 5
English 1168 225
French 4 4
Other language 1 1
Portuguese 1 1
Turkish 35 22
Urdu 1 1
Main language spoken at home Number of attendances Number of sessions
No data 1567 134
Total 2783 394

Immigration status

Number of Number of
Immigration status attendances sessions
Asylum seeker awaiting decision 5 5
Discretionary leave to remain 32 29
EEA National receiving welfare 20 20
benefits
Husband/Wife sponsorship 26 26
Indefinite leave to remain 15 15
Refugee 6 6
UK National 726 190
No data 1953 253
Total 2783 544

Marital status

Marital status Number of attendances Number of sessions
Cohabiting 8 8
Divorced 82 54
Married 348 109
Separated 113 106
Single 129 50
Widow 8 8
No data 2095 245
Total 2783 580

Type(s) of mental health issue

Type(s) of mental health issue Number of attendances Number of sessions
Anxiety and panic attacks 59 59
Depression 56 53
Loneliness 22 22
Phobia 1 1
Self-esteem 70 68
No data 2703 226
Total 2911 429

Age Bracket

Age Bracket Number of attendances Number of sessions
11-16 119 44
17-18 1 1
19-25 3 3
26-35 38 25
36-45 350 121
46-55 505 225
5-10 15 12
56-65 60 43
66 and over
115		 100
No data 1577 126
Total 2783 700

Charity registration number: 1122960

Diversity House Limited

Annual Report and Financial Statements for the Year Ended 31 March 2021

Diversity House Limited

Contents

Contents
Reference and Administrative Details 1
Trustees' Report 2 to 5
Statement of Trustees' Responsibilities 6
Independent Examiner's Report 7
Statement of Financial Activities 8
Balance Sheet 9
Notes to the Financial Statements 10 to 18

Diversity House Limited

Reference and Administrative Details

Chief Executive Officer

Christine Locke

Trustees

Mr Tunde Jotham Christine Locke Patrick Locke Mrs Gloria Blessing Opara

Senior Management Team

Abtax CA Limited, Reporting Accountant

Principal Office

ISP House Church Street Sittingbourne Kent ME10 3EG

Charity Registration Number

1122960

Bankers

HSBC Sittingbourne 115 High Street Sittingbourne Kent ME10 4AL

Independent Examiner

Lydens Accountant 53 West Street Sittingbourne Kent ME10 1AN

Accountants

Abtax CA Limited Accountant The Joiner shop The Historic Dockyard Main Gate Road Chatham England ME4 4TZ

Page 1

Diversity House Limited

Trustees' Report

The trustees present the annual report together with the financial statements of the charity for the year ended 31 March 2021.

Objectives and activities

Objects and aims

Our Charity’s purposes as set out in the objects contained in the Company’s memorandum of association - is established for the benefit of disadvantaged communities, particularly, those with a minority ethnic background in Kent but not excluding others. The Charity’s objects are:

The aims of our Charity are to reduce the level of social inequalities in Kent as a result of the socially constructed factors of gender, race/ethnicity, disability, culture, religion and beliefs and others. This can be achieved by advancing education and raising awareness in equality and diversity; and promoting activities to foster cultural understanding between people from diverse backgrounds.

Ensuring our work delivers our aims, we review our aims, objectives, and activities each year. This review looks at what we achieved and the outcomes of our work in the previous 12 months. The review looks at the success of each key activity and the benefits they have brought to those groups of people we are set up to help. The review also helps us ensure our aims, objectives and activities remained focused on our stated purposes. We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set.

Objectives, strategies, and activities

The focus of our work .

Our main objectives for the year continued to be the promotion of equality and diversity and reduction of disadvantage. The strategies we used to meet these objectives included:

Page 2

Diversity House Limited

Trustees' Report

Fundraising disclosures

During the period under review, time was spent on fund raising activities. To put in a good case to funding bodies why particular projects should be funded, the Project Lead who is the main bid writer spent approximately 817 hours in both desktop and primary research, gathering evidence of need and conducting gap analyses. During this people, a bid was put to the Heritage Lottery Fund for a grant through “our heritage” funding stream for a World War One project. This bid was successful, and the charity was granted some funding for a two-year project. Another proposal for a continuation funding for a previously BLF funded project - Swale Women Empowering Women project was put in after several months of consultation with women and girls in Swale. For instance, Diversity House invited all Swale based Women and Girls on Wednesday, 3rd August 2016 at our office in Phoenix House. The objective was to have a general discussion with all Women and Girls regarding the issues they are facing in their life at the moment and what are the factors which are obstructing them to move forward and chase their dreams, like, Career. This is because Diversity House believes that everyone has equal rights to chase their own dream and move ahead in life with full confidence and zeal.

Also, within this period, funding was sought and received from the following funders:

Public benefit

Given the policies and objectives of the Charity, as stated above, the Trustees, report on the aspects of its activities which encapsulates ‘public benefit’. In order to actualise our vision as stipulated earlier, Diversity House offers the following services, summarised below:

Page 3

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Page 3

Diversity House Limited

Trustees' Report

Financial review

Funds in deficit

There was no deficit in the year.

Principal funding sources

The principal funding sources are Big Lottery Fund, Heritage Lottery Fund, other government agencies and local authorities

Structure, governance, and management

Nature of governing document

The Charity is controlled by its governing documents, a deed of trust and constitutes a limited company, limited by guarantee as defined by the Companies Act 2006

Recruitment and appointment of trustees

When new or additional trustees are required then beneficiaries and client organisations are invited to submit nominations and subject to their compliance with the Memorandum and Articles of Association they are considered by the governing body of trustees for election.

Induction and training of trustees

We have instituted policy or procedure for the training of trustees and within the period under review had carried out trustee skills audit to identify what skills our trustees have and what additional skills that are required to run the charity successfully.

Organisational structure

The board of trustees meets regularly as a full board. There is also a standing committee comprised of the honorary officers. The Director / Manager of Diversity house make recommendations to the board of trustees and monitor operational activities. Staff and Volunteers of the charity have delegated authority to carry out day to day work within policies agreed by the board. Financial standing orders give necessary authorisation of different amounts.

Major risks and management of those risks

Risk Management

Assurance against Fraud and error

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

Financial instruments

Objectives and policies

The charity’s activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the charity’s policies approved by the board of trustees, which provide written principles on the use of financial derivatives to manage these risks. The charity does not use derivative financial instruments for speculative purposes.

Page 4

Diversity House Limited

Trustees' Report

Cash flow risk

The charity’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The charity uses foreign exchange forward contracts and interest rate swap contracts to hedge these exposures.

Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.

Credit risk

The charity’s principal financial assets are bank balances and cash, trade and other receivables, and investments. The charity’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. The charity has no significant concentration of credit risk, with exposure spread over many counterparties and customers.

Liquidity risk

To maintain liquidity and to ensure that sufficient funds are available for ongoing operations and future developments, the charity uses a mixture of long-term and short-term debt finance. Further details regarding liquidity risk can be found in the Statement of accounting policies in the financial statements.

The annual report was approved by the trustees of the charity on 30 September 2021 and signed on its behalf by:

.........................................

Christine Locke Chief Executive Officer and Trustee

Page 5

Diversity House Limited

Statement of Trustees' Responsibilities

The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

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

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

Approved by the trustees of the charity on 30 September 2021 and signed on its behalf by:

......................................... Christine Locke Chief Executive Officer and Trustee

Page 6

Diversity House Limited

Independent Examiner's Report to the trustees of Diversity House Limited

I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 March 2021 which are set out on pages 8 to 18.

Respective responsibilities of trustees and examiner

As the charity’s trustees of Diversity House Limited you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the Diversity House Limited's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

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 Diversity House Limited as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting 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.

53 West Street Sittingbourne Kent ME10 1AN

30 September 2021

Page 7

Diversity House Limited

Statement of Financial Activities for the Year Ended 31 March 2021

Unrestricted
funds
Restricted funds
Total
2021		 Unrestricted
funds
Restricted funds
Total
2021
Note
£
£
£
Income and Endowments from:
Donations and legacies 32,376
107,237
139,613
Investment income
3		 98
-
98
Total income
32,474
107,237
139,711
Expenditure on:
Raising funds -
(46,602)
(46,602)
Charitable activities (2,381)
(111,002)
(113,383)
Total expenditure
(2,381)
(157,604)
(159,985)
Net income/(expenditure)
30,093
(50,367)
(20,274)
Net movement in funds
30,093
(50,367)
(20,274)
Reconciliation of funds
Total funds brought forward
23,680
100,788
124,468
Total funds carried forward
11
53,773
50,421
104,194
Unrestricted
Total
funds
Restricted funds
2020
Note £
£
£
Income and Endowments from:
Donations and legacies 9,166
148,445
157,611
Investment income
3		 195
-
195
Total income
9,361
148,445
157,806
Expenditure on:
Charitable activities (1,191)
(132,814)
(134,005)
Total expenditure
(1,191)
(132,814)
(134,005)
Net income
8,170
15,631
23,801
Net movement in funds
8,170
15,631
23,801
Reconciliation of funds
Total funds brought forward
15,510
85,156
100,666
Total funds carried forward
11
23,680
100,787
124,467

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2020 is shown in note 11.

The notes on pages 10 to 18 form an integral part of these financial statements.

Page 8

Diversity House Limited

(Registration number: 1122960) Balance Sheet as of 31 March 2021

2021
2020
Note £
£
Current assets
Cash at bank and in hand
9		 116,102
140,305
Creditors: Amounts falling due within oneyear
10
(11,908)
(15,838)
Netassets
104,194
124,467
Funds of the charity:
Restricted income funds
Restricted funds 50,421
100,787
Unrestricted income funds
Unrestricted funds 53,773
23,680
Total funds
11
104,194
124,467

The financial statements on pages 8 to 18 were approved by the trustees, and authorised for issue on 30 September 2021 and signed on their behalf by:

...................................................................... Christine Locke Chief Executive Officer and Trustee

The notes on pages 10 to 18 form an integral part of these financial statements.

Page 9

Diversity House Limited

Notes to the Financial Statements for the Year Ended 31 March 2021

1 Accounting policies

Statement of compliance

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

Basis of preparation

Diversity House Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Exemption from preparing a cash flow statement

The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.

Going concern

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

Income and endowments

Voluntary income including donations, gifts, legacies, and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received, and the amount can be measured with sufficient reliability.

Grant’s receivable

Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading those aggregate similar costs to that category. Where costs cannot be directly attributed to headings, they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Page 10

Diversity House Limited

Notes to the Financial Statements for the Year Ended 31 March 2021

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’ meetings and reimbursed expenses.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Depreciation and amortisation

Asset class Depreciation method and rate Plant and machinery 20% Straight line basis

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Page 11

Diversity House Limited

Notes to the Financial Statements for the Year Ended 31 March 2021

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees’ discretion in furtherance of the objectives of the charity.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Financial instruments

Classification

Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.

Recognition and measurement

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks, and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

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Diversity House Limited

Notes to the Financial Statements for the Year Ended 31 March 2021

Debt instruments

Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method:

(a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive variable rate; or (iii) a combination of a positive or a negative fixed rate and a positive variable rate.

(b) The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged.

(c) The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not contingent on future events other than (1) a change of a contractual variable rate; (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and satisfies condition (a).

(d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods.

(e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law.

(f) Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c).

Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.

Except for some hedging instruments, other debt instruments not meeting these conditions are measured at fair value through profit or loss.

Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.

Investments

Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded, or their fair value is reliably measurable) are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment.

Investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored.

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Diversity House Limited

Notes to the Financial Statements for the Year Ended 31 March 2021

Derivative financial instruments

The charity uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The charity does not hold or issue derivative financial instruments for speculative purposes.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in statement of financial activities immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in statement of financial activities depends on the nature of the hedge relationship.

Fair value measurement

The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.

2 Income from donations and legacies

Unrestricted
funds Restricted Total
General funds funds
£ £ £
Grants, including capital grants;
Grants from other charities 32,376 107,237 139,613
Total for 2021 32,376 107,237 139,613
Total for 2020 9,166 148,445 157,611

3 Investment income

3
Investment income
Unrestricted
funds
Total
General
funds
£
£
Interest receivable and similar income;
Interest receivable on bank deposits 98
98
Total for 2021
98
98
Total for 2020
195
195

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Diversity House Limited

Notes to the Financial Statements for the Year Ended 31 March 2021

4 Analysis of governance and support costs

Charitable activities expenditure

Charitable activities expenditure Charitable activities expenditure
Unrestricted
funds
Restricted
Total
Basis of allocation
General
£
funds
£
funds
£
Rent and Insurance -
(22,821)
(22,821)
Office and General Expenses (659)
(13,546)
(14,205)
Salaries NI & Pension -
(52,262)
(52,262)
Consultancy & advice (incl,
Evaluation) (3,214)
(10,235)
(13,449)
General Running Expenses 1,692
(41,550)
(39,858)
Publicity and Promotion -
(150)
(150)
Sessional Workers (80)
(4,164)
(4,244)
Training (Staff) -
(3,160)
(3,160)
Travel (Staff) -
(7,417)
(7,417)
Volunteers Expenses -
(2,300)
(2,300)
Independent Examiner (120)
-
(120)
Total for 2021
(2,381)
(157,605)
(159,986)

5 Trustees’ remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

No trustees have received any reimbursed expenses or any other benefits from the charity during the year.

6 Staff costs

The aggregate payroll costs were as follows:

6
Staff costs
The aggregate payroll costs were as follows:
2021
2020
£
£
Staff costs during the year were:
Wages and salaries 52,262
64,599

No employee received emoluments of more than £60,000 during the year

7 Independent examiner's remuneration

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Diversity House Limited

Notes to the Financial Statements for the Year Ended 31 March 2021

2021
2020
£
£
Other fees to examiners
The examiningof accounts of anyassociate of the charity 120
120
8
Taxation
The charity is a registered charity and is therefore exempt from taxation.
9
Cash and cash equivalents
2021
2020
£
£
Cash on hand 116,102
140,305

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Diversity House Limited

Notes to the Financial Statements for the Year Ended 31 March 2021

10 Creditors: amounts falling due within one year

2021 2020 2020
£ £
Trade creditors 9,538 15,717
Other creditors - 1
Accruals 2,370 120
11,908 15,838
11
Funds
Balance at 1 Incoming Resources Balance at 31
April 2020 resources expended March 2021
£ £ £ £
Unrestricted funds
General 23,680 32,474 (2,381) 53,773
Restricted funds - 155,763 (105,342) 50,421
Total funds 23,680 188,237 (107,723) 104,194
Balance at 1 Incoming Resources Balance at 31
April 2020 resources expended March 2021
£ £ £ £
Unrestricted funds
General
General Funds 23,680 32,474 (2,381) 53,773
Restricted funds
Swale BAME Legacy of Resilience - 16,466 (8,774) 7,692
Swale BAME Shake your body - 750 - 750
Covid Food - Winter Food Top Up - 10,422 (3,741) 6,681
Swale Cultural Food Boxes - 23,787 (788) 22,999
KCF Core Support - - (73) (73)
Good Things Foundation - 6,537 (2,271) 4,266
SBC 1920's weekend 2,095 - (872) 1,223
Other restricted donations 6,663 1,600 (3,130) 5,133
Big Lottery Fund (SWAG) 86,771 - (84,871) 1,900
Boys2Men 190 - (190) -
Groundwork - Covid 19 - 500 (500) -
Independent Age (BAME
resilience) - 14,920 (14,919) 1
KCF - Covid Resilience - 12,000 (12,006) (6)
KCC BAME Shake your Body - 4,255 (4,333) (78)

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Diversity House Limited

Notes to the Financial Statements for the Year Ended 31 March 2021

Balance at 1
April 2020
Incoming
resources		 Resources
Balance at 31
expended
March 2021

£
£
£
£
KCC Members Grant - Put Down
The Knife
-
2,000		 (2,000)
-
KCF - Covid Emergency Fund
-
3,000		 (3,098)
(98)
KCF - Tampon Tax Community
Fund
5,000
-		 (5,000)
-
NLCF - Swale BAME Beyond
Covid
-
10,000		 (9,997)
3
SBC - Defra EmergencyFund
-
1,000		 (971)
29
Total restricted funds
100,719
107,237
(157,534)
50,422
Total funds
124,399
139,711
(159,915)
104,195
Balance at 1
April 2019
Incoming
resources		 Resources
Balance at 31
expended
March 2020

£
£
£
£
Unrestricted funds
General
15,510
9,361
(1,191)
23,680
Restricted funds
85,156
148,445
(132,814)
100,787
Total funds
100,666
157,806
(134,005)
124,467
12
Analysis of net funds
At 31 March
At 1 April 2020
2021

£
£
Cash at bank and in hand 140,305
140,305
Net debt
140,305
140,305

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Diversity House Limited

Statement of Financial Activities by fund for the Year Ended 31 March 2021

Total
Total
Unrestricted
Unrestricted
Funds
Funds
2021
2020
£
£
Income and Endowments from:
Donations and legacies 32,376
9,166
Investment income 98
195
Total income
32,474
9,361
Expenditure on:
Charitable activities (2,381)
(1,191)
Total expenditure
(2,381)
(1,191)
Net income
30,093
8,170
Net movement in funds
30,093
8,170
Reconciliation of funds
Total funds brought forward
23,680
15,510
Total funds carried forward
53,773
23,680

This page does not form part of the statutory financial statements.

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Diversity House Limited

Statement of Financial Activities by fund for the Year Ended 31 March 2021

Total
Total
Restricted
Restricted
Funds
Funds
2021
2020
£
£
Income and Endowments from:
Donations and legacies 107,237
148,445
Total income
107,237
148,445
Expenditure on:
Raising funds (46,602)
-
Charitable activities (111,002)
(132,814)
Total expenditure
(157,604)
(132,814)
Net(expenditure)/income
(50,367)
15,631
Net movement in funds
(50,367)
15,631
Reconciliation of funds
Total funds brought forward
100,788
85,156
Total funds carried forward
50,421
100,787

This page does not form part of the statutory financial statements.

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Diversity House Limited

Detailed Statement of Financial Activities for the Year Ended 31 March 2021

Total
Total
2021
2020
£
£
Income and Endowments from:
Donations and legacies (analysed below) 139,613
157,611
Investment income(analysed below) 98
195
Total income
139,711
157,806
Expenditure on:
Raising funds (analysed below) (46,602)
-
Charitable activities(analysed below) (113,383)
(134,005)
Total expenditure
(159,985)
(134,005)
Net(expenditure)/income
(20,274)
23,801
Net movement in funds
(20,274)
23,801
Reconciliation of funds
Total funds brought forward
124,468
100,666
Total funds carried forward
104,194
124,467
2021
Restricted
funds
Total
£
£
Income and Endowments from:
Donations and legacies (analysed below) 107,237
139,613
Investment income(analysed below) -
98
Total income
107,237
139,711
Expenditure on:
Raising funds (analysed below) (46,602)
(46,602)
Charitable activities(analysed below) (111,002)
(113,383)
Total expenditure
(157,604)
(159,985)
Net expenditure
(50,367)
(20,274)
Net movement in funds
(50,367)
(20,274)
Reconciliation of funds
Total funds brought forward
100,788
124,468
Total funds carried forward
50,421
104,194