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2022-03-31-accounts

REGISTERED COMPANY NUMBER: 06510559 REGISTERED CHARITY NUMBER: 1124569

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

FOR

THE BACA CHARITY

Duncan & Toplis Limited, Statutory Auditor 3 Princes Court Royal Way Loughborough Leicestershire LE11 5XR

THE BACA CHARITY

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Page
Report of the Trustees 1 to 40
Report of the Independent Auditors 41 to 44
Statement of Financial Activities 45
Statement of Financial Position 46
Statement of Cash Flows 47
Notes to the Statement of Cash Flows 48
Notes to the Financial Statements 49 to 64

investing hope, shaping futures THE BACA CHARITY ANNUAL REPORT 2021-22

TABLE OF CONTENTS

REFERENCE AND ADMINISTRATIVE INFORMATION _____ 3 ABOUT BACA – INCLUDING A MESSAGE FROM THE CHAIR ____ 4 OBJECTIVES AND ACTIVITIES _________ 7 STRUCTURE, GOVERNANCE AND MANAGEMENT _____10 STRATEGIC GOALS ________18 ACHIEVEMENT AND PERFORMANCE _______ 19 FINANCIAL REVIEW _________ 31 PLANS FOR FUTURE PERIOD ________ 35 STATEMENT OF TRUSTEES' RESPONSIBILITIES_____ 39 THANK YOU TO OUR SUPPORTERS _________ 40

REFERENCE AND ADMINISTRATIVE INFORMATION

Trustees M. Vyner (Chair)
T. Buttler
Sarah Short
Louise Lloyd-Jarvis
L. Connell
A. Brackett
Management Committee J. Zachariah, Chief Executive
A. Dando, Finance Director
S. Smout, Business Development Director
M. Banister, Service Director
Charity Number 1124569
Company Number 06510559
Principal Address & Registered office C/O Duncan & Toplis
3 Princes Court
Royal Way
LOUGHBOROUGH
LE11 5XR
Independent Auditor Niall Kingsley
Duncan & Toplis
3 Princes Court
Royal Way
LOUGHBOROUGH
LE11 5XR
Bankers The Co-Operative Bank
PO Box 250
Delf House
Southway
Skelmersadale
WN8 6WT

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ABOUT BACA

The Baca Charity (Baca) works with unaccompanied minors who have been forced to leave their homes because of war, persecution, exploitation and trafficking. We work side by side with highly vulnerable young people, providing them with specialist supported accommodation and a range of development training. We believe each young person has a dignity worth uncovering, talents worth discovering and a life worth living to their fullest potential.

The Trustees (who are also directors of The Baca Charity for the purposes of company law) present their report and Baca’s financial statements for the year ended 31 March 2022. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Journey of Hope – A mural by the Young People.

It was designed by one of our young people and painted by him and a group of young people as part of an art therapy project. The young person explained the meaning of the mural “The two sides of the painting are opposite. The black is the hopeless place, but the opposite side is full of life. The painting illustrates how you can pass from hopelessness to hope.”

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MESSAGE FROM THE CHAIR

The year ending March 2022 has been a truly remarkable one. Over the past twelve months, Baca has continued to respond to the Covid-19 pandemic and support vulnerable young people arriving in the East Midlands without families, fleeing war, persecution, exploitation and sometimes trafficking. Throughout it all, our team, our supporters and our partners have been united in our resolve to enable young people to change their lives for the better. Responding to the pandemic, Baca adapted quickly to ensure young people continued to be supported through their own personal challenges and kept safe from external threats. I would like to recognise the efforts of our team of staff and volunteers, many of whom faced their own challenges during this time but were unwavering in their commitment to help young people at a time when they needed us most. I must also pay tribute to the local authorities who have continued to support our work through the ever-changing landscape of the pandemic.

Our work has been the safety net and the backing that all our young people needed during a period of uncertainties that has triggered so much past trauma for many. Inevitably, we had to make significant changes to our plans. And yet, despite the obstacles, people across our team stepped up for young people facing ever more complex challenges.

A key highlight was our ‘Safe Home’ campaign which sought to raise awareness for the need for safe homes for young people arriving in the UK with no families. We were delighted to have the backing of so many of supporters across Leicestershire.

Sadly, we know that the events of the past year will have repercussions for a whole group of unseen young people, who have not received support, care and compassion. From the impact of sustained isolation on emotional wellbeing and mental health, to increased financial uncertainty, to inequality of opportunities, to the ongoing risk young people face of harm from exploitation, young people need our support more than ever.

On behalf of everyone at Baca, I would like to thank all of our supporters and partners for their support over the past year, at such a challenging time. As we move forward, we will remember the stories of lives changed and the many who are still in need to inspire us to keep learning and keep delivering our service with excellence. Together, we can inspire hope for a brighter future for these incredible young people!

Mark Vyner Chair of Trustees

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OBJECTIVES AND ACTIVITIES

VISION

A world where forced migrants are welcomed, safe, and have hope to rebuild their lives for a better future.

MISSION

It is our mission to serve young people seeking refuge in the UK without families, some of whom have been victims of human trafficking, by offering them safe homes, as well as therapeutic support in all areas of their lives.

We believe each young person arriving on our shores has a dignity worth celebrating, talents

worth discovering and a life worth living to its fullest potential, no matter their past experiences nor present circumstances.

We are committed to providing an inspiring environment that raises hope and strengthens resilience, enabling each young person to rebuild his or her life.

VALUES

Our values underpin all we do and how we behave as an organisation and as individuals. Last year, we undertook a review (in line with our annual goals) to refine the already strong values in the organisation. This has enabled us to have even more clarity and conviction in putting our values into practice. The staff team, volunteer team and the Trustees seek to demonstrate these values and behaviours to those we work with, those we seek to influence, and wider society.

Our values Our Behaviours
Respect Treating everyone with dignityin all circumstances.
Compassion Serving sacrificially,rooted in an unwavering zeal to seek the best for
those we serve and not self.
Grace Costly additional opportunity for everyone,to enable us to be our best by
being perpetual learners.
Integrity Unexaggerated truth,expressed with humility, purity of motive and
sincerity of intention, in both our words and deeds.
Passion Embracing risk for the sake of the mission, with courage to take bold risks
and to innovate despite adversity.
Wisdom Finding a way through a challengeby listening, learning, perceiving what
is at stake, applying insight and considering diverse options.

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ACTIVITIES

Our services include:

PUBLIC BENEFIT STATEMENT

Baca's objects, as set out in its Articles of Association, are the advancement of education and the relief of poverty among forced migrants in the United Kingdom and abroad, and the promotion of racial harmony and mutual respect and diversity. Each year, the Trustees review the Charity's objectives and activities to ensure they continue to reflect Baca's aims. In carrying out this review, the Trustees have complied with their duty in section 17 of the Charities Act 2011 to have paid due regard to the Charity Commission’s guidance on public benefit in deciding which activities the charity should undertake. The Trustees consider that Baca's activities provide benefit both to the forced migrants who use the Charity's services and to the wider community.

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STRUCTURE, GOVERNANCE AND MANAGEMENT

Baca is a company limited by guarantee not having share capital. The governing documents are the Company's Memorandum and Articles of Association which were renewed in 2021/22 The Company obtained registered charitable status on 18[th] June 2008.

The Trustees, who are also the directors for the purpose of company law, and who served during the year were:

In addition to the Trustees, the members of the Management Committee (Leadership Team) during the period were:

APPOINTMENT OF TRUSTEES

Trustees are appointed by the Board. A recruitment process is undertaken in line with the Charity’s policy and procedure. In considering potential Trustees, account is taken of both their general interest in the goals and activities of the Charity as well as any specific skills or relevant expertise, through a skills audit, with which they will enhance the Board's ability to carry out its responsibilities. Vacancies are advertised through networks and recruitment sites or through direct contacts by current members of the Board of Trustees. Applicants are shortlisted and invited to an interview with the members of the Staff and Young People SubCommittee and the CEO. Recommendations are then made to the full Board. Recommended candidates are invited to a Trustee Board meeting to establish their suitability and to gain a wider understanding of the governance function carried out by the Board. The final decision to appoint lies with the full Board and is made after this meeting. If necessary, a second invitation to observe the Board will be made to the relevant candidate. All Board members must be in agreement. Where an affirmative decision is made, the necessary legal process of appointment is commenced. Trustees are recruited to serve on the Board of Trustees for a five-year period, at the end of which they may be re-elected.

TRUSTEES' INDUCTION AND TRAINING

New Trustees' induction consists of a briefing of their legal obligations under charity law, the committee and decision-making processes, the budgets and recent financial performance of

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the Charity. During this process they meet key employees and other Trustees. Trustees are encouraged to attend appropriate training events where these will facilitate the undertaking of their role. In addition, they complete on-line training in Safeguarding, Health & Safety and Equality & Diversity. Additionally, new Trustees are invited to attend a series of short induction sessions to familiarise themselves with the Charity and the external context.

ORGANISATIONAL STRUCTURE

The Charity is organised so that Trustee Board meetings are held quarterly. The Board is also divided into two sub groups – Finance and Staff and Young People – which meets quarterly. Between such meetings there are email exchanges as necessary. The Finance sub group takes the lead on all aspects of Baca’s financial resourcing and report their recommendations to the Board. The Staff and Young People sub group takes the lead on all aspects of the workforce, safeguarding, service delivery oversight and makes recommendations to the full Board. The Memorandum of Articles enforces that there must be a minimum of three Trustees appointed for the Trustees to be able to exercise the powers conferred upon them under the Company Law. There are no restrictions on the Trustees' power in respect of the Charity's investments. The Trustees may invest and apply all of the Charity's monies in all respects as if they were absolutely and beneficially entitled thereto. A scheme of delegation is in place, delegating responsibility of running the Charity to the Chief Executive along with the leadership team. The Chief Executive is responsible for ensuring that the Charity delivers the services specified and that key performance indicators are met. The Leadership Team is responsible for the day-to-day operational management of the Charity, ensuring that the team continue to develop their skills and working practices are in line with good practice.

REMUNERATION POLICY

The aim of our remuneration policy, which applies to all employees, is to offer salaries that are fair and appropriate for the roles they perform and the responsibilities they undertake to deliver our charitable aims. In setting remuneration for all staff, including senior staff, a number of criteria are used including consideration of the nature and responsibilities of specific roles, local and national sector averages and other market factors. The Trustees consider the key management personnel of the Charity as the members of the Leadership Team, comprising the Chief Executive, Finance Director, Service Director and Business Development Director. The remuneration of the leadership team is determined by the Trustees upon recommendations made by the Staff and Young People sub group. In agreeing the remuneration, the sub group considers indicators in the wider economy and the stewardship of our resources for the long term.

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RELATED PARTIES AND RELATIONSHIPS WITH OTHER ORGANISATIONS

In order to best serve young forced migrants, the Charity is committed to working in partnership with a range of organisations from the public, private and charity sectors. The Charity works in formal partnership with a growing number of Local Authorities to deliver services. We also work with a range of charities who are specialists in working with vulnerable young people in areas including mental health, trafficking and child sexual exploitation. This can include referrals and sharing best practice. None of the Trustees received remuneration or other benefit during the reporting year.

VOLUNTEERS AND INTERNS

Without volunteers, Baca would not be able to deliver our holistic support service. Volunteers gain new experiences within the voluntary sector, learn from highly-trained staff and gain and develop new skills that will stay with them forever. While Baca provides a range of support activities, it is only through the work of the volunteers that we can give the young people the additional 1:1 time that is so valuable to their growth. In total 32 volunteers have been involved in delivering our young people services over the past year. We are very grateful for the support we receive from these volunteers.

Feedback from one of our Interns. “I have been blessed enough to be a part of each

young person’s journey in one way or another. There have been times where I have been able to create trust and have built a relationship where I can be called on if a young person is feeling down. I am so honoured that I can be seen in this way by these young people, I take this responsibility very seriously. When a young person expresses that they are down, I make an effort to spend more quality one on one time with them. We do things like go for walks in nature where it is peaceful and almost an escape from their worries. We also have coffee catch ups and chat about whatever the young person wants to discuss. Sometimes we will even be able to go and do something that the young person finds fun like pool or football. I try and walk a journey with them to help them know that they are cared for.”

SAFEGUARDING

Baca continuously strives to prioritise the safeguarding of the young people placed with us. The Leadership Team continues to provide direct oversight of our safeguarding structure, with a member of the Leadership Team being our Designated Safeguarding Officer (DSO). The Leadership team consistently ensure that safeguarding practices and behaviours are embedded in the culture of the Organisation. The DSO works closely with the service delivery teams,

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conducting weekly safeguarding reviews. They ensure the robust escalation system, as described in our safeguarding policy, is followed and reviewed annually. We follow safe recruitment practices which involve all recruits going through an enhanced DBS check and two references. Serious incidents of safeguarding concerns are reported to the Trustees after advice is sought from Safeguarding agencies. They are also reviewed in detail by the Staff and Young People sub-group which includes the designated lead trustee on safeguarding. Monthly reports to the Trustees includes safeguarding as a standing item.

Baca works very closely with the local authority social work teams to ensure we are complying with government guidance. Further work has been done in the past year to strengthen the processes across the Organisation to ensure safeguarding considerations are a core part of all decision making. Risks to young people are reviewed in weekly team meetings. All staff and volunteers have clear information on how to report any concerns within the Charity. This information is reviewed and refreshed annually through training and induction. By the very nature of the vulnerabilities faced by the young people supported by Baca, safeguarding is an area of consistent change and challenge. Whilst there are ongoing low-level instances of safety concerns, which are regularly monitored and resolved, we have not had any serious incidents in the past year.

The effects of Covid-19 are still impacting the safety of our young people. While the young people’s wellbeing has always been a priority, this year we have introduced an increased focus on this area. This has included creating a new ESOL tutorial group for an hour a week. In this session confidence, wellbeing and the language needed to express how you feel are discussed. Our in-house Art Therapist often joins these sessions to work with the ESOL Teachers. We have also increased our Art Therapist’s hours to help meet the growing demand for appointments. To further support the wellbeing of our young people, in February 2022 all our frontline staff took part in a two-day training course. They are all now accredited mental health first aiders with Mental Health First Aid England.

FUNDERS AND SUPPORTERS

Baca would like to sincerely thank all those who have supported us during the 2021-22 financial year. Baca’s funding primarily comes from the contracts it has in place with various partner local authorities. We would like to particularly acknowledge our partnership with Leicestershire County Council, with whom we have been working for 14 years. Much of the non-statutory value-added work Baca carries out is supported through funding from grants and donations from those in the community. We are grateful for all the fantastic support we have received for this work from the different grant funding bodies and foundations listed at the end of the report. We are particularly thankful to the National Lottery, Samworth Foundation, CHK Foundation and Henry Smith Foundation for their continued support of our work. We are

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also grateful for the new funding we have received from Paul Hamlyn, Children in Need and CAF. The generosity and commitment of all our funders, is much appreciated, these grants enable the Charity to run effectively and efficiently. Baca recognises that much of the nonstatutory work such as extra-curricular activities through volunteers, additional education support, art therapy, sports and day trips would not have been possible without this investment. Therefore, the objectives of the fundraising team is to raise income to enable the delivery of the holistic services, including building stronger relationships with trusts, and extending the reach in the community.

We are also incredibly grateful for the donations we have received from the local community, churches, schools and community groups. While some of this engagement remains online, since the lifting of Covid-19 restrictions in the summer, we have been actively reaching out to engage with the community.

Baca subscribes to the Code of Fundraising Practice in all of its fundraising activities. The code is implemented through our HR and Fundraising processes. Every person involved in fundraising for Baca, is trained and inducted on the expectations as set out in the code of practice. It is also reflected in our fundraising pack and we comply with all the GDPR legal requirements regarding donors’ or fundraisers’ personal data. No third-party organisations or consultants were used for raising funds for Baca. There have been no breaches or complaints received with the application of this code and GDPR regulations in the reporting period.

RISK MANAGEMENT

The Trustees have reviewed the major risks to which the Charity is exposed and systems have been established to mitigate those risks. A full risk assessment is carried out as part of the Strategy and Business Planning process. Risks are presented at each quarterly Trustees meeting. In these meetings, significant external risks to income and reserves are reviewed to ensure that sufficient funds are in place. Risks are reviewed and plans put in place to mitigate them by the Trustees and Leadership Team by the implementation of appropriate procedures. The core risks to the Charity are highlighted below.

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Risk Summary Mitigations
Safeguarding of Young People
Baca works with highly vulnerable
young people, who have been
victims of exploitation and
trafficking. The risks to safety are
also intensified due to the
challenges posed by poor emotional
wellbeing, lack of trust, weak
knowledge of English and unknown
immigration status. We are still
seeing the effect of Covid-19
impacting the young people’s
wellbeing. In addition, our care
leavers are facing increased
vulnerability due to the rising
patterns of exploitation by
organised criminal groups.		 Weekly review of risks to personal safety across the
organisation at different levels of responsibility.
Holistic support service, providing a detailed picture
of the vulnerabilities, needs and positive progress
made by the young people.
Risks highlighted in monthly trustee reports.
Serious incidents discussed at quarterly Trustee
meetings with clear action plans agreed.
We have increased the hours of Baca’s in-house art
therapist to create additional capacity. Our art
therapist is also working with the Education team to
create a focus on wellbeing and the language
needed to express emotions.
To further support the wellbeing of our young
people, all our frontline staff are now accredited
mental health first aiders.
Occupancy levels
Uncertainty over our occupancy
levels continues to be the key
challenge we face as a Charity as it
is not possible to plan when young
people might arrive (driven by
several external factors outside of
our control). This makes it difficult
to budget and plan for any
significant period of time. On a
wider level the Nationality and
Borders Bill and the government’s
plans to send asylum seekers to
Rwanda, could impact the numbers
of young people that are placed
with us.		 Baca has contracts with multiple Local Authorities
thereby reducing reliance on any one. We have now
set-up a new project in Cambridge which can
initially accommodate eight young people.
While we have purchased additional housing in
Loughborough, we have retained some rented
property. This creates the option of reducing space
if required.
We are seeking to build partnerships with more local
authorities who have a need to safely support
Unaccompanied Asylum Seeking Children (UASCs).
We are focused on ensuring our service delivery is of
the highest quality whilst maintaining excellent cost
effectiveness.
Baca continues to work closely with various
advocacy groups to positively influence the
government’s proposals.
Volatility of Income We are working to limit the impact of fluctuations in
the numbers of young people, and the level of

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Baca’s income is primarily from
contracts with the Local
Authorities, most of whom are now
under increased pressure to reduce
their expenditure following the
pandemic and rising costs in the
wider economy. Within each
contract, income is only guaranteed
at the point of placement of a
young person with Baca. Budgeting
for variable income remains a
challenge, as we cannot predict
how many young asylum seekers
will be placed with us, and the level
of funding we will receive per
placement. While we have started
to develop our donor support, it is
still a challenging time to grow this
area of our income.		 income we receive by increasing the proportion of
income we generate from alternative sources such
as donors.
Baca is also engaging with local authorities and
foundations to understand their needs and provide
realistic solutions for delivering a service that is
both affordable and sustainable.
Baca has rigorous processes for budgeting,
management reporting and monitoring of financial
performance through the Trustees and the
leadership team.
This has meant that we have been able to build the
six months’ reserves needed to meet operational
expenditure in line with our loan covenant with
Social and Sustainable Capital (SASC).
External environment
The past year has seen extremes of
opinion and behaviours towards
individuals seeking refuge in the
UK. The reporting of young people
arriving in Kent and the Nationality
and Borders Bill has only
compounded this issue. This poses a
risk to the young people in Baca’s
care and the overall support
received by the Charity from the
community for its activities.		 Baca’s vision encourages us to seek positive
solutions to this challenging situation.
Baca works proactively with young people to ensure
they know their rights, responsibilities and how they
can seek help in an unfriendly situation.
We are also committed to sharing stories of hope,
highlighting the positives of each individual’s life
and how that contributes to the wider community to
ensure barriers and myths are broken down. To help
achieve this aim, Baca are working on developing
our external communication.

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STRATEGIC GOALS

The focus of our three-year strategy (2019-2022) is to enable unaccompanied forced migrant young people to maximise their potential to be positive empowered individuals, who can contribute to society. These goals build on the excellent foundations of previous years, whilst being committed to our approach of continual learning, both from the young people themselves and other agencies.

Through this strategic framework we are challenging ourselves to bring about significant and sustainable change. This is both in terms of meeting the depth of need for each young person and in the number of young people we work with directly or indirectly.

  1. STRENGTHEN Baca’s holistic service for young forced migrants, continuing to inspire hope and share futures.

  2. ENHANCE Baca’s service to maximise the potential in each young person.

  3. ENGAGE locally, regionally and nationally to see a world where forced migrants are welcomed, feel safe and have hope to rebuild their lives for a better future.

The above strategic goals drive us closer towards achieving the five outcomes and long term impact for each individual young person, identified in our Theory of Change:

----- Start of picture text -----
Increased
engagement
Increased Improved Increased Increased
with
personal emotional physical social
education,
safety wellbeing wellbeing engagement
employment
& training
----- End of picture text -----

Positive & Empowered young people, able to live independently as net contributors to society

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ACHIEVEMENT AND PERFORMANCE

This has been a year of growth at Baca, which has included setting up a project in Cambridge. This is Baca’s first ever project outside of Loughborough. We purchased our first house in Cambridge in October 2021 and the second in January 2022. Four members of the team are now based in Cambridge. We are also adding to our housing stock in Loughborough so we can increase the number of young people we can support. Our achievements against our priorities and goals are summarised in this section.

HOW WE MEASURE OUR IMPACT

“Thank you for all the hard work that has helped me and other young people. I will never forget it, you will always have a big place in our hearts.” This is the wording on the certificate a young person presented to Baca at our annual celebration to say thank you.

It can be challenging measuring impact when working with young people who have suffered trauma, do not have a good understanding of the English language and have significant cultural differences. We gather both quantitative and qualitative data to help us measure our progress against the five outcomes mentioned above. This includes exam results, attendance records, case studies, external feedback and the progress the young people have made on their pyramid plan. It takes time to achieve impact in much of our work. We know we make the most impact when we work on issues over a number of years, particularly when we are seeking to bring about major change. Reflecting this, the impact stories in this report are taken from a period beyond the given reporting year.

PLACEMENTS FROM LOCAL AUTHORITIES

Over the last year Baca has worked to provide care for 32 young people from 4 local authorities:

Our support is delivered through the placement of vulnerable young asylum seekers within our supported accommodation provision, which currently caters for 27 young people at any one time. As highlighted above this capacity is increasing. Through this past year, we have had an

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average occupancy of 96%, providing 22,047 chargeable support hours. Overall, the number of young people we have supported is lower than previous years, but this is because we have had lower number of young people who have been able to move on. Our average occupancy is up from 80%. The demand for our service continues to exist and is increasing. Unfortunately, this year we have had to turn down over 50 referrals because we didn’t have space. To address this issue, we are creating additional capacity in Loughborough as well as opening two houses in Cambridge.

PROGRESS WITH STRATEGIC GOALS

Within our 2019-2022 Strategic Plan, several key priorities were designated as objectives. Here we report on the achievements against these objectives under each strategic goal. While all areas will be covered, given the broad scope of this work, we cannot provide full details of all our activities. We have aimed to use case studies that capture many elements of the project and share the voice of our young people.

GOAL 1: STRENGTHEN Baca’s holistic service for young forced migrants, continuing to inspire hope and share futures

a. Improving outcomes for the young people Increased Engagement with Education, Employment and Training

The education classes have continued to run every weekday morning throughout the pandemic. Most of the young people will receive a maximum of six hours of English lessons, four hours of Maths and three hours of ICT every week. Our education programme helps our young people who often arrive with no literacy in their home language, to gain solid foundations in English at Entry Level 1. Our two ESOL Teachers and one Teaching Assistant split the class into three separate groups according to learner needs. Depending on the time the young people join Baca, some were enrolled under the Wyggeston and Queen Elizabeth College (WQE)/Baca Partnership. The ICT classes are helping our young people to access teaching resources online, as they really struggled with this during the periods of lockdown. They are also learning how to safely use ICT within the community. The programme is altered for our new arrivals. Our teachers work with them for two hours each day in a less intensive way, as the young people settle into being at Baca. At the beginning of the academic year, we started to deliver a new tutorial group for an hour a week. In this session, confidence, wellbeing and the language needed to express how you feel are discussed. This is seen as a key way of helping the young people to overcome some of the wellbeing issues we identified last year. We have also introduced a new weekly breakfast session on a Monday morning. The young people and teaching staff are able to informally chat about their weekend and what they are going to do in class this week etc. The young people are encouraged to express how they are feeling,

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creating an opportunity to practise these language skills. Over the past year 19 young people have attended our in-house education classes and 24 young people have been supported at college (12 of these previously attended our in-house sessions). When the young people move to college, our teachers take them through the full process of enrolment and then support them through the year.

One of the ESOL Teachers described a summer school lesson that was about selfworth and the Golden Buddha.

“Maximum attendance and once again excellent engagement from all. This lesson had lots of new and challenging vocabulary but amazingly everyone managed to participate at their level. They listened attentively to the story of the discovery of the gold statue (inside an ugly, stone casing) and how this changed people's perception of it. Most of them seemed to grasp the application of this in terms of self-image and self-worth. Everyone had a go at filling in their "personal inventory" of qualities, abilities, passions, opportunities and affirmation, even though these were challenging concepts for some! Peer support helped, with some of the young people translating/explaining for each other. The highlight of the lesson was the young people writing affirmations for each member of their class. Everyone engaged with this whole-heartedly and the young people put great effort into looking up words eagerly on their phones and consulting each other in their own languages. The results were beautiful with lots of beaming faces as the young people read their own list of encouragements at the end. It was a lovely moment. I encouraged them to put this somewhere where they could read it often, maybe as a poster on their wall.”

In addition to our education classes, Baca’s ESOL mentoring programme uses volunteers to help the young people with their reading, writing, speaking, listening and even Maths on a 1:1 basis. We are incredibly grateful for the valuable support provided by our ESOL mentors.

Improved Emotional Wellbeing and Personal Safety

Art Therapy has been key in supporting the young people to improve their emotional wellbeing. For some, this improvement has been as simple as recognizing the impact of their experiences on their wellbeing and therefore taking the very first steps to processing their emotions. For others, it has been a journey of processing their past traumatic experiences in order to find a way to become more resilient in their day-to-day life. Art Therapy builds on the innate creativity of the young people at Baca, overcoming the language, accessibility and cultural barriers often faced by traditional counselling techniques. Despite Covid-19 restrictions impacting the project during the early part of the year, our art therapist has made great progress. She has been able

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to provide small group and 1:1 support to 19 young people, with some having sessions either online or in person throughout the year.

In December our art therapist spent some 1:1 time with Yohannes (not his real name). He created the art work below and the message. Yohannes was very keen for the artwork to be shared. This demonstrates how Yohannes trusts the art therapist and the whole team, which shows great courage and strength given his past experiences.

In September our art therapist was able to restart sessions at WQE College. While she had tried to stay in contact with the college, we were concerned that these sessions may never recommence. She described how the sessions are now working. “With the change in Covid-19 restrictions, it has been possible to find a way to work with our young people at WQE College. This has involved restarting and rethinking the wellbeing sessions that were running prior to the pandemic. We are now able to use a dedicated room for 1-1 sessions with young people attending during their free lessons. This is already working well. It allows them and me to meet during the working day without the need for them to travel to Baca at the end of college. New contacts and really great engagement from the Skills and Welfare team at WQE has made this possible. So far, I have connected with four young people on a regular basis, but I expect this number will soon grow.”

One of the key measures of increased personal safety adopted by Baca, is the number of young people going missing from placement. This is based on research that suggests disappearing from care is one of the biggest risks faced by unaccompanied minors, due to trafficking and exploitation vulnerabilities. We have had no young people go missing from placement in the last year. This is a significant achievement in comparison to the national average.

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Increased Social Engagement and Improved Physical Wellbeing

This year we were able to deliver 56 sports sessions. These were well attended, especially by two boys who both came to 42 sessions. In total, 27 young people took part in at least one sports activity during the year. As ever football remained the most popular, but we did also provide a range of other sports including basketball, badminton and boxing. It has been great this year that many of these sessions have been at local clubs, as this helps the young people to become part of the community.

In July last year we took 26 young people and seven staff to an outward bound centre in Derbyshire. Over the four days of the trip the young people took part in a range of activities including canoeing, archery, bike rides, swimming, indoor and outdoor climbing. Baca’s

Support Team Leader provided the following feedback from the trip.

“The residential was the first time since the beginning of the lockdown in January that

all our young people had spent this amount of time together. They got on so well, crossing over the cultural barriers within the group, it was great to see. For several of our young people this week away was a real game changer, as prior to this they had really struggled. Since the trip they have taken huge steps forward, now they are going to college and engaging with their Support Workers. Individually there were some really great achievements. One of the girls went kayaking on Carsington Water. She simply got on the kayak and paddled, like she had done it all her life. She had never done it before. It was so wonderful to see her so confident and grasping this strange activity like it was totally normal. What a girl!”

As well as the residential, we also took the young people on a number of day trips. While we had an initial delay in our plans, we have been able to deliver a full programme of day trips this year. As always, the young people have been fully involved in making the final choice of where we visited. Trips this year included a visit to a farm and Ninja Warrior Adventure Park in Leicester.

After the celebration one of the support workers shared the impact the event had made on one of the young people: “She told me about a dream she had after the celebration in which she saw her parents and she was showing them her certificates from the celebration. She could tell they were proud of her. It was a joyous but emotional moment as she described her dream.”

It was great to be able to have our annual celebration in person this year rather than online.

As always it was an incredibly uplifting experience, as we were able to recognise the progress and achievements each young person had made. There was great food and lots of dancing! It

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was a very special moment when one of our young people presented Jimmy (our CEO) with a certificate for Baca.

b. Strengthen the use of good quality houses over the long term

A core part of the service delivered to the young people is safe and secure accommodation. In 2019, we secured a social investment loan from Social and Sustainable Capital (SASC) to buy properties to replace our rentals. This has reduced our dependency on the highly competitive rental housing market, where prices increase annually due to the demand from University students. In addition, we no longer have the disruption of moving houses every year. This upheaval negatively impacted the wellbeing of the young people who have already suffered tremendous trauma. As the financial year ended, we competed the purchase of the final house through SASC.

As well as the house purchased in Loughborough, this year we have purchased two houses in Cambridge. We are incredibly grateful for the support, patience and generosity of The Leslie Aldridge Trust, who donated the 30% deposit on each house and also provided a grant of £15,000 on each house to cover the refurbishment costs.

These developments have been an exciting step forward for Baca, enabling us to establish safe and secure housing, suited to the young people’s needs, for the long term.

GOAL 2: ENHANCE Baca’s service to maximise the potential of each young person

a. Better support young people in the transition to adulthood in independent living

The Leaving Care Project recognises that while many of our young people successfully transition from our care, some need additional support. While Covid-19 impacted the project during the early part of the year, we have been able to offer more face-to-face learning. In total we supported 18 young people, which is an increase of three on last year. As the project has continued to grow, we have recognised that there is too much work for just the Leaving Care Support Worker. While they still lead the project, other members of the Support Worker Team are now able to provide some assistance when needed. This has helped ease the pressure on the project, as we didn’t want to jeopardise the level of support we could provide.

A second part of the project is the support offered by Baca’s Education Coordinator. She guides the young people through this transition, enabling them to have opportunities to learn new skills through work-experience, traineeships, apprenticeships, or even accessing educational support at Baca. The Education Coordinator is also building appropriate partnerships to facilitate these placements. The most common areas of support needed by the young people has been the transition to a vocational course, dealing with the job centre to

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resolve benefits issues, the council for housing, tenancy issues with landlords and finally responding to instances of online fraud faced by the young people.

Over the past year we measured three outcomes for the Leaving Care Project: 1 - Increased Personal Safety: None of our young people caused harm or distress to others through anti-social behaviour which was our target. We also had no care leavers who were involved in exploitative work or criminal activity, again this met our target. 2 - Increased engagement with Education, Employment and Training: All of our young people were able to get on a full time or part time college course, which exceeded our target. Understandably given the challenges of the last year, we did have some young people leave college. Our target was 80% remaining in education, employment and training, but we were slightly below this at 75%. 3- Improved stability with independent living: None of our young people are at risk of losing their tenancy, which is above our target of 80%, and 100% have a stable income either through safe, appropriate work or benefits.

b. Setup provision to meet UASC needs in a new location

Having previously conducted extensive research and identified a location in Cambridge, this year we have been able to purchase two houses and set-up an office. Last autumn we recruited the team needed to work with the young people. Unfortunately, there was a delay in purchasing and refurbishing the houses, but we are now ready to accept our first new arrival. The team in Cambridge have been able to build connections with local organisations in the city. By taking this approach we can ensure that our work is not imposing on existing excellent local activities. It is great that we are able to create new connections and partnerships that will support our young people. As previously highlighted, we are incredibly grateful for the generosity of The Leslie Aldridge Trust, as well as the Paul Hamlyn Foundation. They have shared our vision for supporting young asylum seekers in Cambridgeshire.

c. Internship programme for Residential Volunteers

Residential Volunteer roles are one of the most crucial roles in Baca. As adults who live in the houses, they take the lead in creating a safe home environment for the young people. Finding these trustworthy and capable individuals who are willing to be positive role models for these young people, is not easy. In 2020 Baca initiated a project to create an internship programme as a solution to recruit suitable adults as Residential Volunteers. Last year we were able to recruit three interns who left in the summer of 2021. This year we were able to recruit four

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new interns who alongside being Residential Volunteers fulfilled the roles of Sports Intern, Education Intern and Young People activities intern. Our Education Intern provided some feedback just before he left Baca.

“At home, I live with three young people. Our house is 'semi-independent', as the young people are fairly well-settled into life in the UK. Supporting the emotional wellbeing of young people with traumatic backgrounds is a challenge. When people are unhappy, we all want to be able to cheer them up straight away. However, realistically, this can be a longer process. Being part of Baca, I know that the small acts of kindness, and the routine which I provide in the house, helps the young people to feel safe and secure.”

“As the education intern, I run classroom lessons four times a week, and also music workshops. Running these lessons is a very rewarding process. It is great to recognise the progress that the young people are making and very inspiring to see how hard they work and how motivated they are to learn. When I leave the project, I think I will continue to work with refugees. Working with Baca has helped me to better understand the UK-side of the asylum process.”

GOAL 3: ENGAGE locally, regionally and nationally

a. Actively increase Young People’s Voice in the service

Baca is committed to ensuring we consistently listen to our young people. It is part of our DNA to learn from them and use their voice to shape our services. We work hard to ensure that those we serve are at the centre of the plans we have and the services we deliver. This year we have continued to develop the young people’s voice group. While this hasn’t

moved forward as quickly as we hoped, we have made progress. Initially a small group of staff formed to discuss how the group could work and the practicalities. This was done so we could understand some of the potential barriers and challenges with the project. The group established an initial Vision and Impact that could be reviewed at a later date:

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Unfortunately, several members of the group left Baca over the summer. It was felt best to briefly pause the project. It has now restarted, which is great news. One of the Support Workers will have some hours allocated in his weekly timetable to lead the project. He is continuing to engage with the young people, and we hope to start facilitating these young people groups in the coming weeks. Existing work where young people shape events like the residential, the annual celebration and day trips have continued. The experience of last year has fed into the planning of this year and it has created greater interest amongst the young people to both participate in and develop these events.

b. Building partnerships to learn, and share knowledge and expertise

In response to our strategic priority, this year we have shared our knowledge both locally and nationally. Locally this includes working with The Nottingham and Notts Refugee Forum and East Midlands Strategic Partnership. While we have always had a desire to share knowledge and have made progress, we have sometimes found it hard to create new opportunities at a national level. This year we have had a break through, after we were able to sit at our first All Party Parliamentary Group (APPG) meeting. This has created more opportunities to be involved in other meetings both at Parliament and outside. This has been incredibly valuable, as often we are the only organisation at these meetings representing the views of young asylum seekers and victims of trafficking. These are some of the key connections we have made over the past year:

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how they can bring this awareness into their legal advice practice. Our art therapist has also been able to add her voice to wellbeing reviews/information for WQE College and the Leicestershire Social Services Team. She intends to continue widening this with other members of the multidisciplinary team.

c. Engaging with the local community

Now more than ever before, Baca believes that it is vital to engage with the local community in order for us to achieve our vision. It is important for us to be part of the local conversation and the local solution to build bridges between community groups. This is necessary in light of the general negative sentiments that may be pervading the various parts of the country, and particularly in the East Midlands region, towards those entering the UK to seek refuge from exploitation, war, persecution and trafficking.

While a lot of our community engagement is still online, this year we were able to deliver more face-to-face events. These are just a few of the highlights:

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FINANCIAL REVIEW

Review of income and expenditure for the year ended 31 March 2022

Total income for the year amounted to £1,691k (£1,128k in 2021) of which £1,651k (£1,091k in 2021) was generated from charitable activities and £37k (£34k in 2021) was from donations and gifts.

Income from direct delivery of service was £161k higher than 2021 as a result of an increase in average support hours delivered per young person and an overall increase in occupancy rates. Income from non-contract sources also increased during the year to £743k (£345k in 2021). During the year Baca received funding for deposits and set up costs for 2 houses which amounted to £345k. This has had a large impact on the surplus figure for the year. Through the excellent passion shown by the fundraising team in expressing Baca’s vision and the young people’s needs, the Charity has been able to achieve 73% success in other grant applications made, which equated to additional non-house grants of £398k (£345k in 2021). Income from gifts from individuals and corporates continues to be a small proportion of the total income, £37k (£34k in 2021). We are very grateful for the incredible generosity of Baca’s many supporters.

Total expenditure for the year in 2022 was £1,096k (£963k in 2021) including £26k depreciation charge (£21k in 2021). The main reason for the increase in costs was due to an increase in staff costs which were £602k during the year (£543k in 2021). This was driven by an increase in the average number of staff during the year of 32 (28 in 2021); additional roles were introduced to achieve our strategic objectives. Other reasons for costs increasing were due to the set-up of houses purchased and an increase in activity following the restrictions of Covid being lifted during the year.

Net assets and mission related investment

The Charity’s consolidated net assets at 31 March 2022 were £1,627k. The net assets comprise fixed assets of £3,151k, net current assets of £1,165k and long-term liabilities of £2,688k (mortgage and SASC housing loan). All debtors are deemed recoverable and there are no material amounts that need to be written off.

Access to housing options in Loughborough is extremely competitive both in choice of houses and in their affordability. To minimise the annual disruption caused by one-year rental contracts and to afford better quality housing in the long term, in 2019 the Charity decided to move towards a model of owning properties. This was deemed necessary to secure the best possible accommodation provision for our young people.

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Raising capital for deposits repeatedly prior to securing mortgages is a significant challenge for small charities. Therefore, we have utilised the social investment loan for a maximum amount of £1.7 million for a period of 10 years, from Social and Sustainable Capital (SASC). This loan enabled us to purchase an additional four properties in the financial year, thus making great progress in line with our property purchasing strategy. The loan has facilitated the purchase of a total of 6 properties to provide high quality supported accommodation, with 4 of the 6 properties replacing current rented houses. The properties will be maintained at good standard, in accordance with the charitable objectives of the Organisation. Regular financial reports, including a quarterly reserves assessment and a designated cash reserves statement, are produced for the Trustees, giving the Board clear and regular oversight of the loan repayment strategy. In addition to this Baca was able to secure grants from the Leslie Aldridge Trust to cover the deposits and setup costs for two houses in Cambridge (£345k). This has allowed us to expand our work into a new geographical area and to provide good quality housing from the start.

Reserves Review

The Trustees have examined the requirement for reserves, to ensure that the Charity can meet all its obligations. The business plan is regularly reviewed to ensure the Organisation’s funds are not in deficit. In light of the acceptance of the social investment loan from SASC, the Trustees have decided that the Charity must have, or be working towards at least 6-months of operational costs as reserves.

The purpose of such reserves in common with best practice for charities is:

The current level of total reserves for Baca, including both cash reserves and fixed assets (including properties used for service delivery), is £1,627k. Six months operating costs must be retained in liquid reserves for the SASC loan covenant. This is £890k, made up of £716k free cash and £174k of cash represented by restricted funding (grants).

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Furthermore, the Trustees have also designated £320k of unrestricted reserves to the “Baca Housing Fund”. The terms of the SASC loan require repayment at the end of the 10 year term based on market value at the date of repayment of the properties acquired using the loan. This designated reserve is designed to ensure sufficient funds are held to secure mortgages on all properties bought through the loan as it is anticipated mortgagees will be required to be secured against the properties to repay the loan. The Trustees have decided to consolidate funds of at least £800k in the Housing Fund over the 10-year period, to enable Baca to raise mortgages and repay the SASC loan. The designated fund will be reviewed each year by the Trustees with a view to maximising the amount in it and minimising mortgages required to be raised.

The Charity currently holds restricted reserves of £381k of which £356k, including £330k received from The Leslie Aldridge Trust, can only be realised by disposing of tangible fixed assets.

Make up of Baca Reserves £1,627k

----- Start of picture text -----
1% 18%
42% 13%
26%
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Fixed Assets
Restricted
Designated
Covenant obligations
Free
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The Charity carries out a variety of both long-term and short-term strategic projects. The amount of funding required for these purposes is growing, a reflection of the rapid growth of the Organisation. The availability of some free reserves enables the Charity to invest in these strategic projects (where funding might be difficult to acquire).

Following this review, the Trustees are satisfied that the current reserves give the assurance that Baca can meet all its obligations and commitments for the reserves period.

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PLANS FOR FUTURE PERIODS

Over the next year we will be outworking the objectives set in our 2022-2024 Strategic Plan. We are committed to investing hope and shaping futures of young people through the strategy set out. Below is a summary of our key priorities for the year ahead.

GOAL 1: STRENGTHEN Baca’s holistic service for young forced migrants,

continuing to inspire hope and share futures.

1. Improving quality of service:

a. Improving young people’s wellbeing so that they are better able to transition to adulthood and positively engage with education, employment, training and be safe.

Last year we had to adjust the delivery of our Leaving Care project to meet the growing demand for leaving care support. We will continue to review the delivery of the project to ensure we are best meeting the needs of our care leavers. We also hoped to reconnect with some of the young people who have left us in the past five years, so we could understand and learn from their experience. Unfortunately, this did not take place. However, we do have a meeting arranged with a young person who left Baca several years ago. He was able to go on to college and then University, which is an amazing achievement. The plan is that he will come in and talk to our current young people. If this goes well, we aim to bring in other young people who have taken alternative routes through education, training and employment since leaving Baca.

It is not only our Leaving Care project which is focused on this outcome. Our education classes, college support and reading support will continue to help the young people with this transition. For the year ahead, we are working on some cross-team projects where education, support and volunteering are coming together, with the idea of offering the young people a wider scope of learning experiences. This will help them to start thinking of their future life in the UK. We will also develop partnerships with other organisations who offer their services to work on employability skills that are tailored to our young people. This will help them with CV’s, job searches, work experience, training and interview skills. We are making steps to ensure that the colleges we work with have a better understanding of the difficulties faced by our young people by offering training. We also hope to visit several companies to allow our young people to see the different kinds of jobs and careers available and widen their outlook for possible future training or employment.

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b. Enable all our young to take steps towards achieving their dreams and aspirations.

This year we are further developing our work identifying and exploring the young people’s dreams and aspirations. We will then be taking steps to identify the pathway to achieve that dream, as well as exploring how we can give them a taster of this experience. A recent example of this is one of the young people who would like to become a pilot in the future. Our education and support team have explored the routes to this goal with him. One option the young person liked was joining the air cadets. We arranged a visit to their open day, and he is now going to join. He recently accessed a webinar concerning how to become a pilot. This included the training needed, entry requirements, funding and videos and photos of people’s experience.

In addition to improving the quality-of-service goal, there are three other goals within the strengthening section that we will develop this year:

GOAL 2: ENHANCE Baca’s service to maximise the potential of each young

person.

1. Improve young people’s preparedness to enter work, education or training post completing ESOL qualifications.

While many of the young people will move on to gain qualifications at college, for some this traditional route through education doesn’t work. This year our education and support teams will be developing more non-mainstream training options. The aim is to help the young people to understand the steps to employment outside the traditional pathways.

2. Increase the number of young people supported in Loughborough

We are in a strong position going into the year ahead, having completed the purchase of the final Loughborough house through SASC. Next year we will be working to ensure these houses are refurbished and ready to start accommodating young people. This will increase our capacity up to 35.

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3. Establish high quality service in Cambridge aligned with our Vision, Mission, Values and Theory of Change.

Baca have now purchased two houses in Cambridge. While the first house is ready to accept new arrivals, we still need to complete the refurbishment of the second house. Over the next year we will employ the staff needed to provide our holistic model of support in Cambridge. We will also assess the effectiveness of some of the local support services such as ESOL classes.

GOAL 3: ENGAGE locally, regionally and nationally

1. Increase engagement with young people so that they have a say in the service at Baca and they are supported to engage with wider issues in their day to day life.

We will continue to develop the young people’s voice. To help facilitate this we have started a formal engagement with a one-year research project facilitated by the University of

Bedfordshire in partnership with ECPAT. They are gathering information on what trafficked young people would consider to be good outcomes for them. As part of their research they have already visited Baca to speak to ten young people and they plan to visit three more times over the next six weeks. We are using this project as a launch pad to carry on gathering our young people’s voice, focusing on three areas:

  1. The young people’s experience of life at Baca - Our service delivery.

  2. The young people’s experience of day to day life external to Baca – This could include issues such as their experiences while traveling and shopping as well as their hopes, dreams and aspirations.

  3. Any topics of interest to the young people – This could include issues such as the political situation in their own country or the latest national/international news.

We want to create both structured and unstructured space for this to happen. We are keen to learn from the Bedfordshire University project before defining times and dates for these meetings. However, we have learnt that it is culturally relevant that these conversations take place around food. The aim is to capture the young people’s voice during these meetings and share this with the wider team so they can take action.

2. Increase engagement with community to break down barriers between community and young people to enable young people to be better welcomed by the community.

This continues to be a focus for all the projects during the year ahead. As highlighted earlier in the report, our Art Therapist has been able to restart delivering sessions at WQE. We will look to develop this further over the year. Our Art Therapist will also continue to work with

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external stakeholders to help them to understand the wellbeing issues our young people face

and how this impacts their engagement with the community.

Our sports project will continue to grow our links with local clubs. This is a great way of helping the young people to break down barriers.

3. Increase engagement with ‘experts’ in the form of academics and other key individuals who shape best practice frameworks to share our model and use their influence to engage other providers to adopt our model.

We will continue to look for opportunities to engage with ‘experts’ as we have done with Bedfordshire University. Once the research project is completed the report will be sent to Westminster. This will allow policy makers to directly hear the young people’s voice and understand what they see as good outcomes. It is hoped this insight will be used to shape future policy decisions.

4. Increase engagement with strategic regional and national decision makers to ensure young people have the best possible support in a highly volatile external environment.

We have made good progress in this area as highlighted earlier in the report. Over the next year we will continue to seek opportunities to engage in discussions at a local, regional and national level.

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STATEMENT OF TRUSTEES, RESPONSIBILITIES The Trustee5 are responsible for preparing the Tru5tee5' Annual Report and Accounts in accordance with applicable law and regulations. Under Charity law the Trustees must not approve the accounts unless they are satlsfied that they give a true and fair view of the state of affairs of the Charity and the group and of their net outgoing resources for that period. In preparing these accounts, the Trustees are required to: select suitable accounting policies and then apply them con51Stently. make judgements and estimates that are reasonable and prudent state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the accounts prepare the accounts on the going-concern basi5 unles5 It TS inappropriate to presume that the Charity will continue to operate. The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the Charity's transactions and disclose, with reasonable accuracy at any time, the financial position of the Charity and enable them to ensure that the accounts comply with the Charities Act 2011. They are also reswnsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware: -there is no relevant audit information of which the charitable company's auditors are unaware. and .the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. Mark Vyner Chair of Trustees Date: I r 39

THANK YOU TO OUR SUPPORTERS

Thank you to everyone who has campaigned for us, made donations, volunteered their valuable time and skills, and supported us financially. With your generosity we’ve been able to keep more young forced migrants safe, find more stability and help maximise their potential.

We remain committed to our vision to see a world where young forced migrants are welcomed, safe and have hope to rebuild their lives for a better future. We can only do this by coming together and making sure no young person is left behind. Their stories of courage and tenacity continue to inspire us all, and drive everything we do.

Special thanks to our funders:

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE BACA CHARITY (REGISTERED NUMBER: 06510559)

Opinion

We have audited the financial statements of The Baca Charity (the 'charitable company') for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE BACA CHARITY (REGISTERED NUMBER: 06510559)

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE BACA CHARITY (REGISTERED NUMBER: 06510559)

Our responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Trustees and other key management obtained as part of the work required by auditing standards. We have also discussed with the Trustees and other key management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit. The potential impact of different laws and regulations varies considerably.

Firstly, the charity is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements such as the valuation of the Social and Sustainable Capital LLP (SASC) funding liability, as well as the risk of inappropriate journal entries to manipulate reported surplus/deficit. Audit procedures performed by the engagement team included the identification and testing of unusual material journal entries and challenging management on key estimates, assumptions and judgements made in the preparation of the financial statements. We carried out detailed substantive tests on material accounting estimates, including reviewing the methods and data used by management to make those estimates, re-performing the calculation and reviewing the outcome of prior year estimates.

Secondly, the charity is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Children's act 1989, Modern Slavery Act 2015, Immigration Act 2016, and the Charity is ISO 9001:025 (The management of supported housing services and learning to unaccompanied asylum-seeking children covering learning of English Language, Mathematics and information Technology and the provision of asylum-seeking support) accredited. The company is subject to regular internal and external audits to ensure compliance with these areas.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other key management and inspection. This inspection included a review of the external audits conducted within the year for any evidence of non-compliance, reading minutes of meetings of those charged with governance, in addition to an assessment of the charity's formal risk assessment. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Page 43

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE BACA CHARITY IREGISTEAED NUM8ER:1165105591 Use of our report Thls report is made solely to the charitable compaThy'5 rnembers, as a body in aCCOfdance with Chapter 3 of Part 16 of the Cornpanies t 2006. Our audit work has been unilertaken $0 that we might state to the charitable cornpany's members those matters we are required to state to them in an avditor5' report and for no other purpose. To the fullest extent permitted by law. we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a bodyi for our audit work. for thls report, or for ihe oplrioTrs we have formed. Mr N A Kingsley ACA Isenior Statutory Auditor) for and on behalf of Duncan & Toplls Umlted. Statutory Audltor 3 Princes Court Royal Way Loughborough Leicestershire LEII 5XR Date.. Page 44

THE BACA CHARITY

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
Charitable activities
6
Grants & trusts income
Grants towards house deposits
Accommodation & support work
4
Investment income
5
Other income
Total
EXPENDITURE ON
Raising funds
7
Charitable activities
8
Accommodation & support work
Other
Total
NET INCOME
Transfers between funds
22
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
36,763
95,259
-
907,774
3,339
-
1,043,135
65,764
715,620
20,804
802,188
240,947
(120,000)
120,947
705,313
826,260		 Designated
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
120,000
120,000
300,000
420,000		 Restricted
funds
£
-
318,000
330,000
-
-
-
648,000
42,676
231,169
19,562
293,407
354,593
-
354,593
25,960
380,553		 2022
Total
funds
£
36,763
413,259
330,000
907,774
3,339
-
1,691,135
108,440
946,789
40,366
1,095,595
595,540
-
595,540
1,031,273
1,626,813		 2021
Total
funds
£
33,782
344,779
-
746,695
2,700
70
1,128,026
87,589
848,169
27,709
963,467
164,559
-
164,559
866,714
1,031,273

The notes form part of these financial statements

Page 45

THE BACA CHARITY IREGisfEftED NUMBER.. 065105591 STATEMENTOF FINANCIAL POSITION 31 MARCH 2022 2022 Total fund5 2021 Total funds Unrestriued fund5 Oesign3tÈd funds Restricted funds Notes XED ASSETS Intangible assets Tangible assets Is 16 4,997 2.789,394 4,997 3,145.701 7,816 967,659 356.307 2,794,391 356.307 3,150,698 975,475 CURRENT ASSETS Oebtor5 Cash at bank 17 112,601 751,373 14.191 174.030 126.792 1,345,403 184,253 1.049,556 420.(MX) 863.974 420.000 188,221 1,472,195 1,233.809 CREDMRS Arnourit5 falling due within one year 18 1143.7041 1163,9731 1307,6771 1206.8781 NET CURRENT A55ETS 720,270 420,0 24.248 1,164.518 1,026,931 TOTAL A55ETS LESS CUARENT LIABIUTIES 3,514,661 420,000 380,555 4.315,216 2,IX12,406 CREOITORS Amount5 falling due after more than one yeaf 19 12.688,4031 12.688.403> 1971.1331 ASSETS 826,258 420.000 380.555 1,626,813 1.031,273 FUNDS Unrestritted fund5 Restricted funds 22 1,246,258 380,555 I,(K>5,313 25,9fil TOTAL FUNDS 1.626.813 1,031,273 These financial stslernents have been prepared in accordance with the provistons applicable to charitable companies subject to ihe srnall cornpanies reglme. The finaTh¢ial statements were approved by the Board of Trustees and authorlsed for Issue on signed on its behalf by.. and were Vmvyne rustee The notes form part of these financlal statement5 Pa8e 46

THE BACA CHARITY

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of intangible fixed assets
Purchase of tangible fixed assets
Interest received
Net cash used in investing activities
Cash flows from financing activities
New loans in year
Loan repayments in year
Net cash provided by financing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of the
reporting period
Cash and cash equivalents at the end of the
reporting period		 2022
£
787,132
(14,644)
772,488
(5,000)
(2,195,945)
3,339
(2,197,606)
1,731,069
(10,104)
1,720,965
295,847
1,049,556
1,345,403		 2021
£
164,310
(6,996)
157,314
(5,000)
(566,331)
2,700
(568,631)
750,000
(9,750)
740,250
328,933
720,623
1,049,556

The notes form part of these financial statements

Page 47

THE BACA CHARITY

NOTES TO THE STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2022

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the Statement of Financial Activities)
Adjustments for:
Depreciation charges
Interest received
Interest paid
Decrease/(increase) in debtors
Increase in creditors
Net cash provided by operations
2.
ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)		 2022
£
595,540
25,722
(3,339)
14,644
57,465
97,100
787,132		 2021
£
164,559
20,713
(2,700)
6,996
(51,450)
26,192
164,310
Net cash
Cash at bank
Debt
Debts falling due within 1 year
Debts falling due after 1 year
Total		 At 1.4.21
£
1,049,556
1,049,556
(10,442)
(971,133)
(981,575)
67,981		 Cash flow
£
295,847
295,847
(3,667)
(1,717,270)
(1,720,937)
(1,425,090)		 At 31.3.22
£
1,345,403
1,345,403
(14,109)
(2,688,403)
(2,702,512)
(1,357,109)

The notes form part of these financial statements

Page 48

THE BACA CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. GENERAL INFORMATION

The Baca Charity is a Private Charitable Company Limited by Guarantee, registered in England and Wales. The charity's registered number is 1124569 and the Company registration number is 06510559.

The registered office is 3 Princes Court, Royal Way, Loughborough, LE11 5XR.

The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below.

These policies have been consistently applied to all years presented unless otherwise stated.

The financial statements cover the individual entity.

The entity constitutes a public benefit entity as defined by FRS 102.

There are no material uncertainties with going concern.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

The charity receives grants in respect of the charitable activities it carries out as detailed in the trustees' report. Income from grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

Income from trading activities includes income earned from the provision of accommodation and support work and ESOL teaching as detailed in the trustees' report. Income is received in exchange for supplying services in order to raise funds and is recognised when entitlement has occurred.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Allocation and apportionment of costs

Costs of raising funds are those costs incurred in attracting voluntary income.

Charitable activities include expenditure directly associated with individual projects and support costs relating to those activities.

continued...

Page 49

THE BACA CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

2. ACCOUNTING POLICIES - continued

Allocation and apportionment of costs

Support costs are those incurred in connection with the management of the Charity and its assets, organisation administration and compliance with constitutional and statutory requirements.

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with their use of resource.

Rentals paid under operating leases are charged against income on a straight-line basis over the term of the lease.

Intangible fixed assets

Intangible fixed assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

The bespoke computer software is being amortised evenly over its estimated useful life of three years.

Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Computer equipment 33.33% straight line Fixtures, fittings & equipment 25% straight line The trustees have chosen not to depreciate the houses acquired for the purpose of delivering supported accommodation, on the basis that they intend to maintain them to a standard whereby they retain their Freehold Property residual value. Long Leasehold Property Depreciated on a straight line basis over the remaining life of the lease.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Designated funds are set up at the discretion of the Trustees.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Loans and borrowings

Bank loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.

The SASC funding agreement has been treated as described in Note 20 to the accounts.

Value Added Tax

The charity is not required to register for VAT. All income and expenses include VAT where applicable.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at

continued...

Page 50

THE BACA CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

2. ACCOUNTING POLICIES - continued

Loans and borrowings

transaction price. Any losses arising from impairment are recognised in expenditure.

Significant accounting judgements and estimation uncertainty

In the application of the charitable company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The valuation of the SASC funding liability has been accounted for as described in Note 20 to the accounts.

3. DONATIONS AND LEGACIES

Donations
Gift aid
4.
OTHER TRADING ACTIVITIES
Accommodation and Support Work
ESOL teaching
5.
INVESTMENT INCOME
Deposit account interest		 2022
£
35,820
943
36,763
2022
£
897,499
10,275
907,774
2022
£
3,339		 2021
£
32,867
915
33,782
2021
£
731,236
15,459
746,695
2021
£
2,700

continued...

Page 51

THE BACA CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

6. INCOME FROM CHARITABLE ACTIVITIES

Activity
Grants
Grants & trusts income
Grants
Grants towards house deposits		 2022
£
413,259
330,000
743,259		 2021
£
344,779
-
344,779

Included within grants above are the following amounts, which are government grants as defined by the SORP:

The purposes of all individual grants over £10k are disclosed in Note 22 to the accounts, and details of the projects and activities funded are disclosed in the trustees' report.

7. RAISING FUNDS

Raising donations and legacies

Staff costs
Administration costs		 2022
£
21,296
87,144
108,440		 2021
£
25,329
62,260
87,589

continued...

Page 52

THE BACA CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

8. CHARITABLE ACTIVITIES COSTS

Accommodation & support work
9.
SUPPORT COSTS
Accommodation & support work
Support costs, included in the above, are as follows:
Other		 Support
Direct
costs (see
Costs
note 9)
£
£
899,465
47,324
Governance
Other
costs
£
£
34,784
12,540		 Totals
£
946,789
Totals
£
47,324
2022
Accommodation
& support
work
£
Trustees' expenses
526
Wages
16,952
Social security
3,429
Pensions
2,259
IT Costs
596
Legal and Professional fees
6,897
Consultancy
792
HR consultancy
3,333
34,784
Governance costs
2022
Accommodation
& support
work
£
Audit and Accountancy fees
12,540
10.
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
2022
£
Depreciation - owned assets
17,903
Computer software amortisation
7,819
Auditors' remuneration
12,540
Operating lease rentals
103,825		 2021
Total
activities
£
608
20,865
2,998
1,463
1,782
-
1,014
3,000
31,730
2021
Total
activities
£
7,587
2021
£
12,300
8,416
7,587
139,429

Auditors' fees of £12,540 (2021- £7,587) which are included within governance costs include costs for the preparation of the accounts, and other advice and assistance provided throughout the year.

continued...

Page 53

THE BACA CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

11. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2022 nor for the year ended 31 March 2021.

Trustees' expenses

The reimbursement of trustees' expenses was as follows:

2022
2021
Number
Number
Travel & Subsistence
7
5
12.
STAFF COSTS
Wages and salaries
Social security costs
Other pension costs		 2022
£
525
525
2022
£
552,802
34,293
15,358
602,453		 2021
£
608
608
2021
£
498,542
29,981
14,634
543,157

The total employment benefits of the key management personnel of the charity were £111,474 (2021- £129,030).

The average monthly number of employees during the year was as follows:

Management and Admin
Charitable Activities
Directors
No employees received emoluments in excess of £60,000.
13.
INTEREST PAYABLE AND SIMILAR EXPENSES
Bank loan interest payable		 2022
8
24
7
39
2022
£
14,644
14,644		 2021
7
21
8
36
2021
£
6,996
6,996

continued...

Page 54

THE BACA CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

14.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
33,782
Charitable activities
Grants & trusts income
120,834
Accommodation & support work
746,695
Investment income
2,700
Other income
70
Total
904,081
EXPENDITURE ON
Raising funds
50,170
Charitable activities
Accommodation & support work
667,505
Other
11,154
Total
728,829
NET INCOME/(EXPENDITURE)
175,252
Transfers between funds
(250,000)
Net movement in funds
(74,748)
RECONCILIATION OF FUNDS
Total funds brought forward
780,063
TOTAL FUNDS CARRIED FORWARD
705,315		 Designated
funds
£
-
-
-
-
-
-
-
-
-
-
-
250,000
250,000
50,000
300,000		 Restricted
funds
£
-
223,945
-
-
-
223,945
37,419
180,664
16,555
234,638
(10,693)
-
(10,693)
36,651
25,958		 Total
funds
£
33,782
344,779
746,695
2,700
70
1,128,026
87,589
848,169
27,709
963,467
164,559
-
164,559
866,714
1,031,273

continued...

Page 55

THE BACA CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

15. INTANGIBLE FIXED ASSETS

COST
At 1 April 2021
Additions
At 31 March 2022
AMORTISATION
At 1 April 2021
Charge for year
At 31 March 2022
NET BOOK VALUE
At 31 March 2022
At 31 March 2021
TANGIBLE FIXED ASSETS
COST
At 1 April 2021
Additions
At 31 March 2022
DEPRECIATION
At 1 April 2021
Charge for year
At 31 March 2022
NET BOOK VALUE
At 31 March 2022
At 31 March 2021		 Freehold
property
£
953,146
2,082,123
3,035,269
-
-
-
3,035,269
953,146		 Long
leasehold
£
-
92,254
92,254
-
167
167
92,087
-		 Fixtures
and
fittings
£
49,200
20,440
69,640
34,687
17,360
52,047
17,593
14,513		 Computer
equipment
£
3,031
1,128
4,159
3,031
376
3,407
752
-		 Computer
software
£
42,740
5,000
47,740
34,924
7,819
42,743
4,997
7,816
Totals
£
1,005,377
2,195,945
3,201,322
37,718
17,903
55,621
3,145,701
967,659

16. TANGIBLE FIXED ASSETS

continued...

Page 56

THE BACA CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

17.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Other debtors
Prepayments and accrued income
18.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank loans and overdrafts (see note 20)
Trade creditors
Social security and other taxes
Other creditors
Accruals and deferred income
Deferred Income
Deferred income is included within:
Creditors due within one year
Movement in the year was as follows:
Grants received:
Total deferred income at 1 April 2021
Amounts received in the year
Amounts credited to statement of financial activities
Grants - deferred income at 31 March 2022
Funding for ESOL Teaching:
Total deferred income at 1 April 2021
Amounts received in the year
Amounts credited to statement of financial activities
Funding - deferred income at 31 March 2022		 2022
£
80,108
6,055
40,629
126,792
2022
£
14,109
23,583
9,630
4,543
255,812
307,677
2022
£
203.968
203,968
129,566
817,661
(743,259)
203,968
-
10,275
(10,275)
-		 2021
£
71,568
89,362
23,323
184,253
2021
£
10,442
22,864
7,751
4,028
161,793
206,878
2021
£
129,566
129,566
121,667
358,657
(350,776)
129,566
-
15,459
(15,459)
-

Income has been deferred in relation to grant income when performance conditions have not been met.

continued...

Page 57

THE BACA CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

19. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Bank loans (see note 20)
Other loans (see note 20)
20.
LOANS
An analysis of the maturity of loans is given below:
Amounts falling due within one year on demand:
Bank loans
Amounts falling due between two and five years:
Bank loans - 2-5 years
Amounts falling due in more than five years:
Repayable by instalments:
Bank loans more 5 yr by inst
Repayable otherwise than by instalments:
Other loans more 5yrs non-inst		 2022
£
977,334
1,711,069
2,688,403
2022
£
14,109
125,029
852,305
1,711,069		 2021
£
221,133
750,000
971,133
2021
£
10,442
44,856
176,277
750,000

In March 2020 the Baca Charity entered into an agreement with Social and Sustainable Capital LLP (SASC).

This is a secured loan facility, secured over the assets of the charity, whereby SASC has set aside up to £1.75m for Baca to purchase eligible properties which they can use to further their charitable objectives.

The monies are retained by SASC, and Baca were permitted to drawdown on this amount over 21 months.

Baca will pay back the equivalent of 85% of the market value of all properties purchased via this facility on 20th March 2030. The trustees have designated the Baca Housing Fund and intend to set aside excess reserves over the next 10 years into this fund in order to repay this.

At the balance sheet date, a total of £1,711,069 had been drawn down on this agreement.

The amounts drawn down on the SASC agreement are secured with fixed charges over the properties purchased using these monies, and there is a floating charge in place over the balance of the SASC bank account.

continued...

Page 58

THE BACA CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

21. SECURED DEBTS

The following secured debts are included within creditors:

Bank loans
Other loans		 2022
£
991,443
1,711,069
2,702,512		 2021
£
231,575
750,000
981,575

The bank loans are secured with fixed charges over the properties they were used to purchase.

The other loan is the SASC funding agreement as described in Note 20 to the accounts.

22. MOVEMENT IN FUNDS

Unrestricted funds
General fund
The Henry Smith Charity
Baca Housing Fund
Underfunded Strategic Projects
Property Maintenance Fund
Restricted funds
BBC Children in Need
The National Lottery Community Fund
The Clothworkers' Foundation
Intelligent Energy Charitable Trust
Big Lottery Fund- Awards for All- Post 18
Other Restricted Funds
The Randal Charitable Foundation
CHK Foundation- Cambridgeshire
The Swire Charitable Trust- Volunteer Project
Big Lottery - Core
CAF Main Grant
CAF Resilience Grant
CHK Foundation Grant
Paul Hamlyn Covid Grant
Leslie Aldridge House setup fund
Leslie Aldridge House Fund
TOTAL FUNDS		 At 1.4.21
£
705,313
-
250,000
50,000
-
1,005,313
-
11,443
7,747
-
459
6,313
13
(15)
-
-
-
-
-
-
-
-
25,960
1,031,273		 Net
movement
in funds
£
240,941
4
-
-
-
240,945
2,813
(11,443)
(6,433)
4
(459)
(6,624)
(13)
15
17
(4,837)
14,491
10,000
17,704
4,724
4,636
330,000
354,595
595,540		 Transfers
between
funds
£
(120,000)
-
70,000
-
50,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 At
31.3.22
£
826,254
4
320,000
50,000
50,000
1,246,258
2,813
-
1,314
4
-
(311)
-
-
17
(4,837)
14,491
10,000
17,704
4,724
4,636
330,000
380,555
1,626,813

continued...

Page 59

THE BACA CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

22. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
The Henry Smith Charity
Samworth Foundation
Restricted funds
BBC Children in Need
The National Lottery Community Fund
The Clothworkers' Foundation
Intelligent Energy Charitable Trust
Big Lottery Fund- Awards for All- Post 18
Other Restricted Funds
The Randal Charitable Foundation
CHK Foundation- Cambridgeshire
The Swire Charitable Trust- Volunteer Project
Paul Hamlyn Foundation
Big Lottery - Core
CAF Main Grant
CAF Resilience Grant
CHK Foundation Grant
Paul Hamlyn Covid Grant
Leslie Aldridge House setup fund
Leslie Aldridge House Fund
TOTAL FUNDS		 Incoming
resources
£
948,131
35,004
60,000
1,043,135
8,011
102,288
-
4,825
-
41,185
1,000
10,417
15,000
12,500
10,111
58,472
10,000
25,000
5,000
14,191
330,000
648,000
1,691,135		 Resources
expended
£
(707,190)
(35,000)
(60,000)
(802,190)
(5,198)
(113,731)
(6,433)
(4,821)
(459)
(47,809)
(1,013)
(10,402)
(14,983)
(12,500)
(14,948)
(43,981)
-
(7,296)
(276)
(9,555)
-
(293,405)
(1,095,595)		 Movement
in funds
£
240,941
4
-
240,945
2,813
(11,443)
(6,433)
4
(459)
(6,624)
(13)
15
17
-
(4,837)
14,491
10,000
17,704
4,724
4,636
330,000
354,595
595,540

continued...

Page 60

THE BACA CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

22. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
Baca Housing Fund
Underfunded Strategic Projects
Restricted funds
BBC Children in Need
The National Lottery Community Fund
The Clothworkers' Foundation
Big Lottery Fund- Awards for All- Post 18
Other Restricted Funds
The Randal Charitable Foundation
CHK Foundation- Cambridgeshire
TOTAL FUNDS		 Net
movement
At 1.4.20
in funds
£
£
780,063
175,250
50,000
-
-
-
830,063
175,250
(26)
26
8,155
3,288
14,181
(6,434)
101
358
14,240
(7,927)
-
13
-
(15)
36,651
(10,691)
866,714
164,559		 Transfers
between
At
funds
31.3.21
£
£
(250,000)
705,313
200,000
250,000
50,000
50,000
-
1,005,313
-
-
-
11,443
-
7,747
-
459
-
6,313
-
13
-
(15)
-
25,960
-
1,031,273

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
The Henry Smith Charity
CHK Foundation
Samworth Foundation
Restricted funds
BBC Children in Need
Lloyds Bank Foundation Enable
The National Lottery Community Fund
The Clothworkers' Foundation
Big Lottery Fund- Awards for All- Post 18
Other Restricted Funds
The Randal Charitable Foundation
CHK Foundation- Cambridgeshire
The Swire Charitable Trust- Volunteer Project
TOTAL FUNDS		 Incoming
resources
£
783,247
27,500
33,334
60,000
904,081
20,336
17,743
118,861
-
7,789
32,383
11,000
14,583
1,250
223,945
1,128,026		 Resources
expended
£
(607,997)
(27,500)
(33,334)
(60,000)
(728,831)
(20,310)
(17,743)
(115,573)
(6,434)
(7,431)
(40,310)
(10,987)
(14,598)
(1,250)
(234,636)
(963,467)		 Movement
in funds
£
175,250
-
-
-
175,250
26
-
3,288
(6,434)
358
(7,927)
13
(15)
-
(10,691)
164,559

The Henry Smith Charity

We have now completed year two of our three year grant from The Henry Smith Charity. The grant helps cover some of our running costs.

continued...

Page 61

THE BACA CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

22. MOVEMENT IN FUNDS - continued

CHK Foundation Unrestricted

The CHK Foundation continue to support Baca’s work. This grant was unrestricted, and could be used at the discretion of the Trustees.

Samworth Foundation

We have now entered the final year of our three year Samworth Foundation grant. This local funder has supported our work for a number of years and this grant helps towards our core costs.

The National Lottery Community Fund

We have now completed the final year of our three-year National Lottery Community Fund grant, which contributed towards the cost of delivering our Rebuild Project. The project enabled Baca to provide the support and training the young people need to help them to live independently once they leave the charity.

The Clothworkers' Foundation

We received a one off capital grant in 2020 from The Clothworkers' Foundation, which contributed towards the cost of refurbishing our new high support house.

The Intelligent Energy Charitable Trust

It is great that this local Trust have again been able to support our work with a grant. This year the Intelligent Energy Charitable Trust are providing the funding needed to deliver our Leaving Care project. This project enables Baca to continue providing additional support to our young people as they transition from our care.

Big Lottery Fund- Awards for All- Post 18

Funding from the National Lottery Awards for All contributed towards the cost of delivering our new Leaving Care project. Whilst many of our young people leave our care without needing much additional support, this new project provides assistance to those who do need help. The grant was extended due to Covid-19 restrictions delaying the training element of the project.

The Randal Charitable Foundation

This grant contributed towards the cost of delivering our in-house ESOL lesson’s in partnership with Regent College. The grant also enabled our teachers to provide additional support to the young people attending local colleges.

CHK Foundation Cambridgeshire

The CHK Foundation provided a second grant to Baca this year. This grant contributed towards the cost of developing a new project in Cambridgeshire. The grant had been extended due to Covid-19 restrictions delaying the project.

The Swire Charitable Trust Volunteer Project

We are now in the second year of our grant from the Trust. The grant contributes towards the cost of delivering our Volunteer and Mentoring project. Activities where volunteer support is used include the daily ESOL sessions, sports workshops, helping with college homework, and life skills workshops.

Paul Hamlyn Foundation

The Foundation has awarded Baca a three-year grant through their Youth Fund. The grant is supporting Baca’s new project in Cambridge.

Big Lottery- Core

Having previously funded our work, we are delighted to have been awarded a new three-year grant from the Community Fund. The grant contributes towards the cost of delivering part of our rebuild project. The project enables Baca to provide the support and training the young people need to help them to live independently once they leave the charity.

CAF Resilience Fund Phase 2- Main grant

We successfully applied for a CAF Resilience Fund Phase 2 grant. The grant supports Baca’s growth in both Loughborough and Cambridge. This is in response to the increasing demand for our services.

continued...

Page 62

THE BACA CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

22. MOVEMENT IN FUNDS - continued

CAF Resilience Support Grant

As part of our main CAF Resilience Fund Phase 2, we also received an additional grant to help develop Baca’s future resilience. Initially this is a grant of £10,000, but we will have the chance to apply for up to £10,000 of additional funding if this is required. We are not guaranteed to secure this additional funding.

CHK Foundation

We are very grateful for the continued support of the CHK Foundation. This grant contributes towards some of the core costs associated with the growth of the charity.

Paul Hamlyn Foundation Covid Grant

The Paul Hamlyn Foundation have kindly recognised the ongoing impact Covid-19 has had on the whole staff team. This grant will help Baca to continue to develop the wellbeing support the staff can access.

Leslie Aldridge House Set Up Fund

Having previously funded our Leaving Care project, the Trust have agreed to provide funding so we can refurbish our Cambridge houses.

BBC Children In Need

We are pleased to be working again with Children in Need. Having previously funded our Volunteer project, they are now contributing towards the cost of delivering our in-house ESOL lesson’s which we deliver in partnership with the Wyggeston & Queen Elizabeth College, Leicester. The grant also enables our teachers to provide additional support to the young people who are now attending local colleges.

Leslie Aldridge House Fund

The Leslie Aldridge Trust kindly donated the 30% deposit for both of the houses in Cambridge. For the first house this was £157,500 and for the second house this was £172,500.

Baca Housing Fund

The Baca Housing fund is monies set aside by the trustees in order to repay the SASC agreement described in Note 20.

Property Maintenance Fund

The Property Maintenance Fund is monies set aside by the trustees to cover any unexpected maintenance or repairs costs of the owned properties.

23. OTHER FINANCIAL COMMITMENTS

The charitable company has the following commitments due as follows:

In one year
2-5 years		 2022
£
101,851
30,331
132,182		 2021
£
92,152
40,436
132,588

24. RELATED PARTY DISCLOSURES

During the year rent of £17,197 (2021: £16,659) was paid to A Dando, a member of the management committee for the use of the current office. £9,439 (2021: £8,802) is included in prepayments and £8,518 (2021: £8,125) is included in trade creditors.

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Page 63

THE BACA CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

25. OTHER FINANCIAL INSTRUMENTS- SASC FUNDING

The carrying amount of the charity's financial instruments are as follows:

2022 2021
£
£
Financial liabilities at fair value through income and expenditure
Other loans due >5 years- Non- instalments 1,711,069 750,000

There were no net gains or losses or changes in fair value through the statement of financial activities.

26. LIMITED BY GUARANTEE

The charitable company is a private limited company limited by guarantee and consequently does not have share capital. Each member is liable to contribute an amount not exceeding £1 towards the assets of the company in the event of liquidation.

Page 64