Company registration number: 06616666 Charity registration number: 1128162
(A company limited by guarantee)
Annual Report and Financial Statements
for the Year Ended 30 June 2022
Gortons Chartered Accountants Stanmore House 64-68 Blackburn Street Radcliffe Manchester M26 2JS
Emmaus Salford
Contents
| Trustees' Report | 1 to 6 |
|---|---|
| Independent Examiner's Report | 7 |
| Statement of Financial Activities | 8 |
| Balance Sheet | 9 |
| Notes to the Financial Statements | 10 to 23 |
Emmaus Salford
Trustees' Report
The Trustees who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 30 June 2022.
Objectives and activities
Objects and aims
The principal objectives of the charity are:
The alleviation and relief of poverty, hardship and distress arising therefrom, in conformance with the principles of the Emmaus Movement.
The provision of accommodation, or assistance in such provision, for homeless people in the Salford area and such other places as may seem appropriate from time to time (the “beneficiaries”).
The rehabilitation of the beneficiaries, as appropriate, and the provision of education, training (including, without limitation, employment training) and work opportunities. Satisfaction for the beneficiaries, with the purpose of developing their skills to enable them to gain employment in the future and thereby develop a sense of self-worth and dignity through having a self-supporting life.
The support of the work of other Emmaus communities and groups or other agencies in the relief of poverty and homelessness, whether in the United Kingdom or elsewhere in the world, and in particular (without limitation) by the exchange of resources, information and expertise with other Emmaus projects world-wide.
The primary objective is the development of a self-sufficient community providing accommodation and a meaningful voluntary work environment, with an appropriate level of support for previously homeless people, and others who may be socially disadvantaged. The community provides a welcoming and supportive place to live and work and for each person to develop within it.
On admission to the community, companions (our residents) relinquish welfare benefits, however Housing Benefit is claimed as companions are entitled to such claims. The community remains reliant on this income stream to provide the support services and homes for companions. The charity’s long term focus is to increase the income from the social enterprise in such a way as to have a surplus, thus reducing reliance on claims for statutory benefits, however, Trustees acknowledge that for the foreseeable future it is not feasible to set a timescale for achieving this.
The charity’s business and income generating activities are the key focus for development over the next 5 years. Additionally, the charity operates two strands of Solidarity work, the broader traditional Solidarity activity of an Emmaus Community, led by companions in supporting those less fortunate than themselves and since 2017 the charity has also operated and is developing a Solidarity Outreach Programme for the wider Salford community. This includes Lucie’s Pantry (a social supermarket), a school uniform recycling hub and the charity operates the People’s PODs that are part of the A Bed Every Night programme (ABEN) in Greater Manchester.
Public benefit
The Trustees have had regard to the Charity Commission’s guidance on public benefit in determining the activities conducted by the Charity, and all existing and development of services continue to benefit the people who live in the administrative borough of Salford.
The Trustees confirm that they have complied with the requirements of Section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Page 1
Emmaus Salford
Trustees' Report
Achievements and performance
We continue to give Companions:
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‘Wrap around’ support, tailored to their individual needs, mental and physical wellbeing. The work of the Wellbeing Worker (appointed April 2021) has proved to be essential, supporting the companions and identifying their individual needs. She has introduced the Warwick-Edinburgh strategy programme in assessing each companion, monitoring their responses, and recognising where intervention or more expert support is required.
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Opportunities to access educational or vocational training outside the community.
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Explore the possibility of work experience.
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Regular monthly meeting to discuss and share information with a member of staff, including a meeting with the chair of Trustees to discuss the proposed ‘Evolving Emmaus’ programme and how that would impact on Emmaus Salford.
Our social enterprise continues to flourish, offering support to the wider community in Salford. In particular, we have developed Lucie’s Pantry, offering a wider range of food and household necessities to a greater number of households, working in conjunction with fareshare, local supermarket chains and donors. A computerised till system has been installed, thanks to the generosity of a donation, which has enabled us to manage stock, identify our members and comply with data protection in a far more efficient way. As a result, the membership has grown. A social impact survey was undertaken in the summer of 2021, giving us detailed information to support the undertaking. The pantry has supported 20 solidarity cases referred by the CAB, social services and local housing associations.
The use of the original 4 people pods situated immediately behind the community home was suspended in November 2021, following incidents which challenged the security of our companions. However, we have been given a further 10 ‘PODs’ for which we obtained planning on our unused car park adjacent to the community home and work has commenced to renovate the PODs. We wish to engage with the Bed For Every Night scheme and Salford homeless welfare team. Work has been undertaken in conjunction with other charities and plans are being made to make the PODs environmentally friendly and carbon neutral, with the invaluable assistance of Salford University.
The school uniform hub continues to support local families with school age children in the supply of a full school uniform.
Financial review
Following the COVID-19 pandemic, Emmaus Salford experienced a deficit in the accounts so that at the commencement of the financial year 1st July 2021 to 30th June 2022, there has been a significant challenge to maintain financial stability and to develop the aims and objectives of the charity. Nationally, numbers of companions in Emmaus communities have reportedly been lower than in recent years, causing a reduction in our volunteer workforce and a reduction in the amount of housing benefit available.
An enterprise plan was drawn up to consider the future financial security of the charity, with particular reference to developing new strands of social enterprise, development of internet sales and the recruitment of staff and volunteers to ensure the success of the plan. Targets have been set in relation to increasing companion numbers and sales in the community shops. A business development officer was appointed in September 2021 with dual role as Deputy Community Director. Systems have been put in place managing the stock and training companions, all of whom manage our shops. A team of volunteers has been recruited to support the social enterprise, both individual and corporate, to whom we are grateful. Their support is invaluable to the organisation both on the practical side and more noticeably in the increased sales in our shops.
The financial statements for the year to 30 June 2022 show a net deficit of £121,677, compared with a net deficit of £9,430 in the previous year. This is mainly due to the government grants received last year of £74,445; none this year.
Sales of donated goods increased from £109,810 in 2021 to £156,686 this year, an increase of just less than 43%. Income from housing benefit and rental income decreased by around 20% from £145,773 in 2021 to £116,837 this year. Costs decreased by just over 4% from £481,666 in 2021 to £460,317 this year.
During the year the charity received grants and donations (excluding government grants) totalling £58,022 (2021 - £140,419). The Trustees wish to record their gratitude for all grants and donations received.
Page 2
Emmaus Salford
Trustees' Report
Plans for future periods
Policy on reserves
The trustees consider that Emmaus Salford should hold sufficient reserves to:
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Support the welfare of Companions
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Maintain Emmaus House and surrounding buildings
-
Support Lucie's pantry
The charity's reserves will help to ensure that we can continue to provide accommodation and work for our beneficiaries.
The Trustees currently consider the appropriate level of reserves to be in a range between £65,000 and £85,000. As at 30 June 2022 free reserves amounted to £18,585 being unrestricted income funds of £58,593 less fixed assets of £40,008 (2021 - £99,326 being unrestricted income funds of £157,155 less fixed assets of £57,829). Total restricted funds amounted to £34,957 (2021 - £58,072).
During the course of the financial year, the Trustees were very much aware of the charity’s reserves policy and that there had been a dip in the reserves. This is attributable to:
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Emmaus Salford is reliant on receiving housing benefit for qualifying companions (i.e. those entitled to rely upon state benefits). There has been a drop in the number of companions, not just in Salford but nationally throughout the Emmaus Movement. The reasons are complex, but what is becoming apparent is that many prospective companions have such complex needs (drug, alcohol and mental health) which the community is unable to support. Thus, despite our best endeavours, companion numbers remain lower than desired, with a knock-on reduction in income from housing benefit. The issue is being actively addressed by pursuing new contacts, such as the probation service and working in tandem with other like-minded agencies.
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A number of companions have been encouraged to work with a social employment agency which has resulted in them undertaking work trials, gaining qualifications etc and several have now found full time employment and independent accommodation. Staff have been instructed to develop working relationships with a number of agencies with a view to offering support to people through these contacts. Working in partnership with like-minded organisations has introduced new companions of late.
-
Lucie's Pantry has attracted a lot of local attention, particularly financial support. No provision had been made in the accounts to acknowledge the very significant contribution made by staff and companions for the smooth running of the pantry. As a result, a careful calculation has been undertaken to quantify that contribution in financial terms and a proper administration charge is now made each month based upon time, running costs and overheads. This effectively releases restricted funds for the running of the pantry.
-
A decision has been made by the board of Trustees in that, although we still pursue new residential companions in accordance with the ethos of the Emmaus movement, we should develop our social enterprise in the local community of Salford. This means that we are working to develop new strands of enterprise engaging with social landlords, housing associations and local charities to provide goods and services to support people in the immediate Salford area, not just those who seek a residential place. We are confident that expanding our work in this way, we will strengthen our financial core, but still work within the principles of our founder, Abbe Pierre.
The reserves policy is reviewed regularly. The Trustees are confident that the steps being put in place will strengthen the charity’s reserves.
Page 3
Emmaus Salford
Trustees' Report
Structure, governance and management
Nature of governing document
Emmaus Salford was registered as a non-profit making company on 11 June 2008 (ref no. 6616666) and was registered as a UK charity (reg no. 1128162) by the Charity Commissioners with effect from 19 February 2009.
The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association.
In the event of the company being wound up Trustees are required to contribute an amount not exceeding £1.
The charity is a limited company, limited by guarantee, as defined by the Companies Act.
Recruitment and appointment of trustees
Trustees are elected in accordance with the Memorandum of Association. The Trustees retire by rotation. The board has an agreed procedure for the appointment of Trustees and all Trustees are appointed following open advertisement.
Two new Trustees were recruited to support the board; both have a health and safety background and will make a significant contribution to the decisions made by the Board.
Two Trustees who are specialists in IT, have developed an IT and digital strategy for the charity enabling our systems both administratively and commercially to be used for the benefit of the organisation as a whole and much time has been spent in providing the companions, staff and Trustees with training and understanding of the systems. This is expertise which is invaluable for the smooth and modern running of the organisation as a whole, for everyone concerned which would otherwise be financially unattainable.
Page 4
Emmaus Salford
Trustees' Report
Reference and Administrative Details
Charity Registration Number: 1128162 Company Registration Number: 06616666 The charity is incorporated in England and Wales. Registered Office: Emmaus House 101 Fitzwarren Street Salford M6 5RQ Independent Examiner: Gortons Institute of Chartered Accountants in England and Wales Stanmore House 64-68 Blackburn Street Radcliffe Manchester M26 2JS
Trustees and officers
The trustees and officers serving during the year and since the year end were as follows:
Trustees: Mrs P L Lewis (resigned 31 December 2022) Mr I D Cottam Mrs H Dunn Dr A Fenton (resigned 28 January 2022) Dr M Griffiths Mr D McGovern (resigned 11 October 2021) Mr G Monaghan (resigned 22 September 2021) Ms E J Portsmouth Mr S Hindley (appointed 11 October 2021) Mrs J E Davies Ms L Carney (appointed 13 June 2022) Mr A M E Minnis (appointed 13 June 2022 and resigned 12 December 2022) Mr M Stanton (appointed 12 December 2022) Secretary: Mr D McGovern (resigned 11 October 2021) Ms E J Portsmouth (appointed 11 October 2021) Senior Management / Leadership Mrs R Richardson, Community Director (Ceased employment 26 August 2022) Team: Mrs J Smith, Chief Operating Officer
Page 5
Emmaus Salford Tru8te88' Report 8tst•ment of trustee8' resp81b110llo8 The trustees Iwho are also the directors of Efffflau8 Sallord for purpc40s of (>JryJany loV) are responslble for prepamg the tru8tees' report and the financial ststem8nts wi accordarKe with •plthble and United Kingd Accounting Standard8 (United King Generally Accepted Accwnting Practrel, including FRS 102 'Th0 Financial Rewting Standard aPp1Kab the UK and Republic d Irelaryj". Conyany law requires Injstees lo prepare finanaal ststements epLh ffinanc y8ar. Under company law the trustees must not 8ppro¥e finanual stateThwts Unl they ¢ salisfiod that thay ge a true and falr view of thg state of affairs of tharitable company and Lrf the resour¢e$ applKation of rnsource6, incdia ils inconw and oxpendituro, of thg chaiitabio c(ryarty for that policd. In preparirs thesé financ1 stalemèrts, t trustee3 are required lo.. Beknt suitabl8 CjnIln9 poki8s and appty them ccnsirtenty.. observe the method5 and prfn¢¥Jl85 in chafft SORP., make Igements and estimates are reascfflable and prudent., 8t81¢ wlwher applica9 accounting 8tandaffJ8, 1xyrisIng FRS 102 been fo1¥j, 8ublect to wy mat8rlal departureB d18chJs and in tho financial 8tatement8'. and prepare the financial slalfrnents on the 90in9 concern unleu rt o inwropn to pre$w that the charttabb company will continue in business. The trustee8 are re8Ftys•bIe for proper acwJntir¥J vecords that can dijdoge wrth Tea•on8bb 8etur8cy at eny lim8 the ffinancial posilion of the charitabbè ¢anY and enab them to ensure that the financigl slatemonts compty wlth th8 Companth Act 2C(6. They are al re8Wl8it48 for u91d1 the 88sels of Ihg ch8rtsbl• company and hènc8 lor taking rea8on8ble steps for the prevention and detect of fraud other irregularit. The Iru$le8$ are wpon$lbla for tho msknlenarte and Intsgrlty of the corporate and infomation included on the charitable company'j web8ite. LegiSlath governlNJ ts preparatknn and dl88emlnatknn of financkil 818leryknts may differ from l•gi¥lation in oth•rjurdi¢ti"on$. Tha annual report waB appro%d by tho tru8t888 chw*y on 26 April 2ry23 gned on its bghalf by.. Mr8 H Dun Tm$lee Pag8 6
Emmaus Salford Independent Examinerfs Report to the trustees of Emmaus Salford (Yhe Company,) I report to the charity Iru$lee$ on my examination of the accounts of the Company for the year ended 30 June 2022. Responsibilities and basis of report A8 the charity's trustee8 of the Company land a180 its directors for the purpose8 of company lawl you are responsible for the preparation of the accounts in accordance with the requirÉments of the Companies Act 2006 I'lhe 2006 Acl'l- Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination. I report in resped of my exam nation of your charity's accounts as carried out under section 145 of the Charities Act 2011 I'the 2011 Act'l. In c8rrying out my examination I have followed the Directions given by the Charity Commission undef sectson 14515llbl of the 2011 Act. Independent examiner's stalement Since the Company's gross income exceeded £250,000 your examiner musl be a member of a body listed in section 145 of the 2011 Act. I C4)nffim that l am qualified to undertake the exarnination because l am a member of The Institute of Chartered Ac¢ounlanls in England and Wales. which is one of t listed bodies. I have completed my examination. I confinn that matters have corrE to rny attention in connection with the examination giving me cause lo believe: 1. 8ccounling records were not kept in respect of Emmaus Salford as required by section 386 of the 2006 Act: or 2. the accounts do not accord wth those recrdS. or 3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any r8quir8m8nt that th8 accounts give a 'tru8 and fair VI8 which is not a rnatt8r consid8r8d as part of an independent examination,. or 4. the accounts have not been prepared in accordance with the methods )nd principles of the Statement of Recommended Practice for accounting and reporting by charities lapFlicable lo charities preparing their accounts in accordance with the Financial ReFth'ng Stsndard applicable in the UK and Republic of Ireland (FRS 102)]. I have no ¢on¢ems and have come across no other matters in connection with the examination to which attention Should be drawn in this rer*)rt in order to enable a proper understsnding of the unts to be reached. Gortons Institute of Chartered Accountants in England and Wales Slanmore Hovsg 64-68 Blackbum Street Radcliffe Manchester M26 2JS 26 April 2023 Page 7
Emmaus Salford
Statement of Financial Activities for the Year Ended 30 June 2022 (Including Income and Expenditure Account)
| Note Income and Endowments from: Donations and legacies 4 Charitable activities 6 Investment income 7 Other income Total income Expenditure on: Charitable activities 8 Total expenditure Net expenditure Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 25 Note Income and Endowments from: Donations and legacies 4 Charitable activities 6 Investment income 7 Other income Total Income Expenditure on: Charitable activities 8 Total Expenditure Net income/(expenditure) Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 25 |
Unrestricted funds £ 23,599 273,523 100 6,995 304,217 (402,779) (402,779) (98,562) (98,562) 157,155 58,593 Unrestricted funds General £ 103,439 255,583 154 1,635 360,811 (345,779) (345,779) 15,032 15,032 142,123 157,155 |
Restricted funds £ 34,423 - - - 34,423 (57,538) (57,538) (23,115) (23,115) 58,072 34,957 Restricted funds £ 111,425 - - - 111,425 (135,887) (135,887) (24,462) (24,462) 82,534 58,072 |
Total 2022 £ 58,022 273,523 100 6,995 |
|---|---|---|---|
| 338,640 | |||
| (460,317) | |||
| (460,317) | |||
| (121,677) | |||
| (121,677) 215,227 |
|||
| 93,550 | |||
| Total 2021 £ 214,864 255,583 154 1,635 |
|||
| 472,236 | |||
| (481,666) | |||
| (481,666) | |||
| (9,430) | |||
| (9,430) 224,657 |
|||
| 215,227 |
The notes on pages 10 to 23 form an integral part of these financial statements. Page 8
Emmaus Salford (R•glstration numb•r. 06616666) Balance Sheet as at 30 June 2022 2022 2021 Flx•d Tangibl8 assets Currert •88•ts Slccks 14 40.008 57,829 15 16 17 2.120 33,457 132.070 167.647 1,500 24,279 250.9JO Cash at bank in barKI 276.679 Cr•dltor•: Amounts f•lllng du• vAthln om yHr N4t ¢yrr•nt M•ts 18 101.105 1C6,281 66.542 170.398 Total a•••ts IM• ¢urr•nt IlabllStl•J 1fO.550 228,227 Cr•d5torn: Amounts falllng du• •ftar mor• than on• yoar N•t a•••t• 215227 Fund• of th• charhy: R•strlct•d Incom• fund• R88trfct&J funds 34,957 58.072 Unr08tr1ctod Inc¢)m• funds Unre81ricaed fund8 157 155 Total fund• 25 215 227 For the financial year endirrfJ 30 Juné 2022 t charity tnlitlod to txemptlon from under seCtn 477 of the Compank?s Acl 20C6 relatirYJ lo small wnpanw. Diroctors, MspcS1bll1W'. The members hove not rwuired the chotity to Ltaln an audil of Its K£ourrt8 for year In queBllon In rdar¢e with ¥ecbon 476,. ond The directors ackrthYWa th8lr r88rth8itilitlos for ¢¢mptying wh tho r0quirnt¥ of Act with le8t to accOuntr records aNI the pfeparatlon alae(x)unts. The fanal 8tmonts on pages 8 to 23 wwe aPj by the truste95, 8nd athorised for issue on 26 Awll 2023 and signed on their t¢hall by.. Mrs H Dunn Trustee The notes ¢Jn pages 10 to 23 fom) an integr81 part ofthese finanryal statwnents. Page 9
Emmaus Salford
Notes to the Financial Statements for the Year Ended 30 June 2022
1 Charity status
The charity is a company limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.
2 General information
The charity was incorporated as a company in the United Kingdom and the registered office is Emmaus House, 101 Fitzwarren Street, Salford, M6 5RQ.
3 Accounting policies
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Basis of preparation
Emmaus Salford meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.
Volunteers
Volunteers give their time and skills to support the charity and social enterprise to help even more people move on from being homeless.
Summary of disclosure exemptions
Having followed the relevant requirements of FRS102, the company has taken advantage of disclosure exemptions in respect of the preparation of a Statement of Cash Flows.
Income and endowments
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.
Donations and legacies
Donations and gifts are recognised as income when the charity has control over the item or has received the service, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably, in accordance with the Charities SORP (FRS 102).
Page 10
Emmaus Salford
Notes to the Financial Statements for the Year Ended 30 June 2022
Grants receivable
Income from grants are recognised when the charity has entitlement to the funds and it is probable that the income will be received and the amount can be measured reliably and is not deferred.
Charitable activities
Income on the sale of donated goods and house clearances is recognised when the charity has control over the item or received the service.
Income on housing benefits and rents are recognised on an accruals basis.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party. It is probable that settlement will be required and the amount of the obligation can be measured reliably.
Charitable activities
Expenditure on charitable activites includes the costs of delivering services undertaken to further the purposes of the charity and their associated support costs.
Other expenditure
Other expenditure represents those items not falling into any other heading.
Support costs
All support costs are allocated to the charitable activities.
Governance costs
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including an Independent Examination, strategic management and trustees' meetings and reimbursed expenses.
Irrecoverable VAT
Irrecoverable VAT is charged against the category of resources expended for which it was incurred.
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Tangible fixed assets
Individual fixed assets costing £250 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation and amortisation
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
Asset class Leasehold alterations Fixtures and fittings Motor vehicles
Depreciation method and rate Straight line over 8 years Staright line over 5 years Straight line over 5 years
Page 11
Emmaus Salford
Notes to the Financial Statements for the Year Ended 30 June 2022
Stock
Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks.
Trade debtors
Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade creditors
Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in a transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.
Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.
Fund structure
Unrestricted income funds are general funds that are available for use at the Trustees' discretion in furtherance of the objectives of the charity.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
Hire purchase and finance leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Rentals payable under operating leases are charged in the Statement of Financial Activities on a straight line basis over the lease term.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Page 12
Emmaus Salford
Notes to the Financial Statements for the Year Ended 30 June 2022
4 Income from donations and legacies
| Grants, including capital grants: Grants from other charities Regular giving and capital donations Grants, including capital grants: Government grants Grants from other charities Regular giving and capital donations |
Unrestricted funds General £ - 23,599 23,599 Unrestricted funds General £ 74,445 - 28,994 103,439 |
Restricted funds £ 32,444 1,979 34,423 Restricted funds £ - 108,965 2,460 111,425 |
Total 2022 £ 32,444 25,578 |
|---|---|---|---|
| 58,022 | |||
| Total 2021 £ 74,445 108,965 31,454 |
|||
| 214,864 |
5 Government grants
The government grants are furlough grants and Local Authority COVID-19 support funding.
The amount of grants recognised in the financial statements is £Nil (2021 - £74,445).
There are no unfulfilled conditions attached to the grants.
There are no other forms of government assistance.
6 Income from charitable activities
| Sale of donated goods and house clearances Housing benefit and rents |
Unrestricted funds General £ 156,686 116,837 273,523 |
Total 2022 £ 156,686 116,837 273,523 |
Total 2021 £ 109,810 145,773 |
|---|---|---|---|
| 255,583 |
Page 13
Emmaus Salford
Notes to the Financial Statements for the Year Ended 30 June 2022
7 Investment income
| Interest receivable on bank deposits | Unrestricted General £ 100 |
Total 2022 £ 100 |
Total 2021 £ 154 |
|---|---|---|---|
8 Expenditure on charitable activities
| Salary costs Companion costs Rent, rates and insurance Shop supplies and equipment Repairs and renewals Light and heat Vehicle costs Health and safety Cleaning and waste Telephone and internet Miscellaneous expenses Legal and professional fees Bad and doubtful debts Bank and credit card charges Depreciation and profit on sale of fixed assets |
Activity undertaken directly £ 136,852 74,574 43,376 23,604 44,829 39,395 18,188 3,966 13,084 11,322 15,969 5,939 - 1,880 20,821 453,799 |
Activity support costs £ - - 272 - - - - - - - - - - 96 - 368 |
2022 £ 136,852 74,574 43,648 23,604 44,829 39,395 18,188 3,966 13,084 11,322 15,969 5,939 - 1,976 20,821 454,167 |
2021 £ 114,637 84,328 36,200 20,948 36,973 39,087 15,050 49,877 23,219 12,018 7,701 3,555 (3,353) 1,176 37,316 |
|---|---|---|---|---|
| 478,732 |
£396,629 (2021 - £342,845) of the above expenditure was attributable to unrestricted funds and £57,538 (2021 - £135,887) to restricted funds.
In addition to the expenditure analysed above, there are also governance costs of £6,150 (2021 - £2,934) which relate directly to charitable activities. See note 9 for further details.
Page 14
Emmaus Salford
Notes to the Financial Statements for the Year Ended 30 June 2022
9 Analysis of governance and support costs
Support costs allocated to charitable activities
| Support costs allocated to charitable activities | |||||
|---|---|---|---|---|---|
| Trustee indemnity insurance Bank charges Governance costs Independent examination Accounts preparation |
Finance costs £ - 96 |
Administration costs £ 272 - 272 Unrestricted General £ 2,000 4,150 6,150 |
Total 2022 £ 272 96 368 Total 2022 £ 2,000 4,150 6,150 |
Total 2021 £ 88 27 115 Total 2021 £ 1,184 1,750 |
|
| 96 | |||||
| 2,934 |
10 Net incoming/outgoing resources
Net outgoing/(incoming) resources for the year include:
| Operating leases - plant and machinery Operating leases - other assets Other non-audit services Profit on disposal of tangible fixed assets Depreciation of fixed assets |
2022 £ 10,788 34,000 4,150 (19,500) 40,321 |
2021 £ 4,290 17,124 1,750 (3,823) 41,139 |
|---|---|---|
Page 15
Emmaus Salford
Notes to the Financial Statements for the Year Ended 30 June 2022
11 Staff costs
The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows:
| during the year expressed as full time equivalents was as follows: | |
|---|---|
| 2022 No Charitable Activities 5 All of the above employees participated in the Defined Contribution Pension Schemes. Contributions to the employee pension schemes for the year totalled £5,919 (2021 - £4,767). These payments are allocated to charitable expenses within unresticted funds. |
2021 No 5 |
No employee received emoluments of more than £60,000 during the year.
The total employee benefits of the key management personnel of the charity were £39,835 (2021 - £39,474).
12 Independent Examiner's remuneration
| 12 Independent Examiner's remuneration | ||
|---|---|---|
| Independent examination Accountancy services |
2022 £ 2,000 4,150 6,150 |
2021 £ 1,184 1,750 |
| 2,934 |
13 Taxation
The charity is a registered charity and is therefore exempt from taxation.
Page 16
Emmaus Salford
Notes to the Financial Statements for the Year Ended 30 June 2022
14 Tangible fixed assets
| Cost At 1 July 2021 Additions Disposals At 30 June 2022 Depreciation At 1 July 2021 Charge for the year Eliminated on disposals At 30 June 2022 Net book value At 30 June 2022 At 30 June 2021 15 Stock Finished goods 16 Debtors Trade debtors Prepayments Accrued income Other debtors 17 Cash and cash equivalents Cash on hand Cash at bank |
Leasehold Alterations £ 196,481 - - 196,481 171,687 24,560 - 196,247 234 24,794 |
Fixtures and fittings £ 17,798 - - |
Motor vehicles £ 63,925 22,500 (25,421) 61,004 43,960 12,201 (25,421) 30,740 30,264 19,965 2022 £ 2,120 2022 £ 10,471 7,586 2,947 12,453 33,457 2022 £ 1,901 130,169 132,070 |
Motor vehicles £ 63,925 22,500 (25,421) 61,004 43,960 12,201 (25,421) 30,740 30,264 19,965 2022 £ 2,120 2022 £ 10,471 7,586 2,947 12,453 33,457 2022 £ 1,901 130,169 132,070 |
Total £ 278,204 22,500 (25,421) 275,283 220,375 40,321 (25,421) 235,275 40,008 57,829 2021 £ 1,500 |
|
|---|---|---|---|---|---|---|
| 17,798 | ||||||
| 4,728 3,560 - |
||||||
| 8,288 | 30,740 | |||||
| 9,510 | 30,264 | |||||
| 13,070 | 19,965 | |||||
| 2022 £ 2,120 2022 £ 10,471 7,586 2,947 12,453 33,457 2022 £ 1,901 130,169 132,070 |
||||||
| 2021 £ - 8,499 3,988 11,792 |
||||||
| 24,279 | ||||||
| 2021 £ 2,433 248,467 |
||||||
| 250,900 |
Page 17
Emmaus Salford
Notes to the Financial Statements for the Year Ended 30 June 2022
18 Creditors: amounts falling due within one year
| 18 Creditors: amounts falling due within one year | ||
|---|---|---|
| Trade creditors Loan from Emmaus UK Other taxation and social security Other creditors Accruals |
2022 £ 575 1,500 3,870 13,918 81,242 101,105 |
2021 £ 6,696 1,500 1,095 12,459 84,531 |
| 106,281 |
19 Creditors: amounts falling due after one year
| Loan from Emmaus UK | 2022 £ 13,000 |
2021 £ 13,000 |
|---|---|---|
In 2013/14 Emmaus UK made a loan of £30,000 to Emmaus Salford. £23,000 of this loan was repaid early in 2014/15. The balance of £7,000 is repayable in 2022/23 and 2023/24. This loan is interest free.
In 2015/16 Emmaus UK made a further loan of £15,000 to Emmaus Salford. This loan is repayable in equal instalments over 10 years. Interest is charged at 1% per annum. There was a capital repayment holiday until 31 January 2022 and the situation since is under discussion together with the rate of interest.
20 Obligations under leases and hire purchase contracts
Operating lease commitments
Total future minimum lease payments under non-cancellable operating leases are as follows:
| Land and buildings Within one year Other Within one year Between one and five years After five years |
2022 £ 42,519 1,575 3,888 42,930 48,393 |
2021 £ 76,519 |
|---|---|---|
| - 9,891 49,290 |
||
| 59,181 |
Page 18
Emmaus Salford
Notes to the Financial Statements for the Year Ended 30 June 2022
21 Pension and other schemes
Defined contribution pension scheme
The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £3,106 (2021 - £4,767).
Contributions totalling £485 (2021 - £471) were paid after date to the scheme and are included in creditors.
22 Contingent liabilities
There is a contingent liability for grants, and also loans received, from Emmaus UK in prior years, that will all be repayable if Emmaus Salford leaves the Emmaus UK Federation.
23 Trustees remuneration and expenses
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
24 Related party transactions
There were no related party transactions in the year.
Page 19
Emmaus Salford
Notes to the Financial Statements for the Year Ended 30 June 2022
25 Funds
| Unrestricted funds General General funds Total unrestricted funds Restricted funds RBS Charitable Trust, Pendleton Together Co-operative, Lush Charity Pot and Semble Emmaus UK Edward Holt Trust Nationwide Building Society via Community Foundations Martin Lewis, High Sherrifs Office, Salford CVS, Neighbourly, ESF, Manchester Guardian Society, Duchy of Lancaster, Food recovery, CAF deliveries, Charity Service deliveries, Clarion Food Tesco, Salford CVS, B&Q Salford CVS, Yorkshire Building Society Salford CVS Guinness Partnership Charities Aid Foundation The Charity Service Lidl Neighbourly Total restricted funds Total funds |
Balance at 1 July 2021 £ 157,155 157,155 1,975 385 10,023 11,994 12,240 17,493 1,229 1,425 433 875 - - - 58,072 215,227 |
Incoming resources £ 304,217 304,217 1,045 3,839 - 18,875 7,525 - - 250 - - 980 499 1,410 34,423 338,640 |
Resources expended £ (402,779) (402,779) (732) (3,564) (4,733) (30,001) (10,838) (4,076) (1,018) (744) - (875) (458) (499) - (57,538) (460,317) |
Balance at 30 June 2022 £ 58,593 |
|---|---|---|---|---|
| 58,593 | ||||
| 2,288 660 5,290 868 8,927 13,417 211 931 433 - 522 - 1,410 |
||||
| 34,957 | ||||
| 93,550 |
Page 20
Emmaus Salford
Notes to the Financial Statements for the Year Ended 30 June 2022
| Unrestricted funds General General funds Total unrestricted funds Restricted RBS Charitable Trust, Pendleton Together Co-operative, Lush Charity Pot and Semble Booth's Charities Emmaus UK Edward Holt Trust Bauer Radio Nationwide Building Society via Community Foundations Martin Lewis, High Sherrifs Office, Salford CVS, Neighbourly, ESF, Manchester Guardian Society, Duchy of Lancaster, Food recovery, CAF deliveries, Charity Service deliveries, Clarion Food Mayor of Greater Manchester, Salford CVS, Neighbourly, Tesco, Emmaus UK, Charities Aid Foundation Tesco, Salford CVS, B&Q Salford CVS, Yorkshire Building Society Guinness Partnership, Salford CVS Salford CVS Guinness Partnership Charities Aid Foundation Total restricted funds Total funds |
Balance at 1 July 2020 £ 142,123 142,123 903 170 385 23,000 500 36,705 11,833 8,152 886 - - - - - 82,534 224,657 |
Incoming resources £ 360,811 360,811 2,714 350 - - - - 18,750 22,287 21,190 4,395 1,760 16,500 600 22,879 111,425 472,236 |
Resources expended £ (345,779) (345,779) (1,642) (520) - (12,977) (500) (24,711) (18,343) (30,439) (4,583) (3,166) (1,760) (15,075) (167) (22,004) (135,887) (481,666) |
Balance at 30 June 2021 £ 157,155 |
|---|---|---|---|---|
| 157,155 | ||||
| 1,975 - 385 10,023 - 11,994 12,240 - 17,493 1,229 - 1,425 433 875 |
||||
| 58,072 | ||||
| 215,227 |
Page 21
Emmaus Salford
Notes to the Financial Statements for the Year Ended 30 June 2022
Description of nature of restriction by fund
The specific purposes for which the funds are to be applied are as follows:
RBS Charitable Trust, Pendleton Together Co-operative, Lush Charity Pot and Semble - for a greenhouse, gardening equipment and work to the garden area of Emmaus House
Booth's Charities - for mattresses for companions' rooms and christmas festivities
Emmaus UK - for companion training
Edward Holt Trust - for costs of employing a manager for the social supermarket
Bauer Radio - for a community fridge
Nationwide Building Society via Community Foundations - for the costs of employing a key worker
Martin Lewis, High Sherriffs Office, Salford CVS, Neighbourly, ESF, Manchester Guradian Society, Duchy of Lancaster, Food recovery, CAF deliveries, Charity Service deliveries, Clarion Food - to assist the social supermarket in responding to COVID-19
Mayor of Greater Manchester, Salford CVS, Neighbourly, Tesco, Emmaus UK, Charities Aid Foundation - to assist the community in responding to COVID-19
Tesco, Salford CVS, B&Q - for emergency accommodation
Salford CVS, Yorkshire Building Society - for IT equipment
Guinness Partnership, Salford CVS - for the social supermarket
Salford CVS - for emergency food parcels
Guinness Partnership - for the school hub
Charities Aid Foundation - for salaries and companion training
The charity service - for a community barbecue and seating
Lidl - for a cookery book for the social supermarket
Neighbourly - IT equipment to be used by the social supermarket
Page 22
Emmaus Salford
Notes to the Financial Statements for the Year Ended 30 June 2022
26 Analysis of net assets between funds
| 26 Analysis of net assets between funds | |||
|---|---|---|---|
| Tangible fixed assets Current assets Current liabilities Long term creditors Total net assets Tangible fixed assets Current assets Current liabilities Long term creditors Total net assets |
Unrestricted funds General £ 40,008 132,690 (101,105) (13,000) 58,593 Unrestricted funds General £ 57,829 218,607 (106,281) (13,000) 157,155 |
Restricted funds £ - 34,957 - - 34,957 Restricted funds £ - 58,072 - - 58,072 |
Total funds at 30 June 2022 £ 40,008 167,647 (101,105) (13,000) |
| 93,550 | |||
| Total funds at 30 June 2021 £ 57,829 276,679 (106,281) (13,000) |
|||
| 215,227 |
Page 23