**Registered number: 07121887 Charity number: 1134448**
## **HUMAN TRAFFICKING FOUNDATION**
**(A Company Limited by Guarantee)**
## **UNAUDITED**
**TRUSTEES' REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2021**
## **HUMAN TRAFFICKING FOUNDATION**
## **(A Company Limited by Guarantee)**
## **CONTENTS**
||Page|
|---|---|
|**Reference and Administrative Details of the Charity, its Trustees and Advisers**|1|
|**Trustees' Report**|2 - 8|
|**Independent Examiner's Report**|9|
|**Statement of Financial Activities**|10|
|**Balance Sheet**|11|
|**Notes to the Financial Statements**|12 - 24|
**(A Company Limited by Guarantee)**
## **HUMAN TRAFFICKING FOUNDATION**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Trustees**
Anthony Steen CBE, Chair Rt Hon Baroness Elizabeth Butler-Sloss of March Green GBE Lord Randall of Uxbridge Kt. PC Paul Jackson Lord Vernon Coaker MP Rt Hon David Heathcoat-Amory (resigned 3 April 2022) Rt Hon Karen Bradley
## **Company registered number**
07121887
## **Charity registered number**
1134448
## **Registered office**
Blackfriars Settlement 1 Rushworth Street London SE1 0RB
## **Head of Office**
Robyn Phillips
## **Independent examiner and accountants**
Martin Bailey FCA Goodman Jones LLP 29-30 Fitzroy Square London W1T 6LQ
## **Bankers**
Barclays 348 Kings Road London SW3 5UT
## **Solicitors**
Maurice Turnor Gardner LLP 15th Floor Milton House Milton Street London EC2Y 9BH
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## **HUMAN TRAFFICKING FOUNDATION**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2021**
The Trustees (who are also directors of the Foundation for the purposes of the Companies Act 2006) present their Annual Report together with the financial statements of the Human Trafficking Foundation for the year 1 January 2021 to 31 December 2021. The Annual Report serves the purposes of both a Trustees' Report and a Directors' Report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
## **Objectives and activities**
## **a. Policies and objectives**
The Human Trafficking Foundation grew out of the All-Party Parliamentary Group on Human Trafficking and Modern Slavery with three objectives:
1. To shape policy and legislation by equipping parliamentarians and policy makers, lead government departments, local authorities, police and statutory agencies to better understand the extent and nature of human trafficking, and the need to adjust rapidly to changing trends;
2. To provide a sustained and collective voice amongst NGOs, civil society, and voluntary organisations fighting modern day slavery so that short-comings in current policy can be identified and addressed, and how that can best be tackled; and
3. Identifying opportunities for new and different types of intervention within the rapidly evolving landscape of human trafficking
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
## **Activities and performance**
## **a. Overview**
The Trustees are pleased with the Foundation’s performance and believe that its policies are in place to achieve the aims and objectives and to ensure that all undertaken activities are for the public benefit, as defined by the Charity Commission's guidance on the subject.
Page 2
**(A Company Limited by Guarantee)**
## **HUMAN TRAFFICKING FOUNDATION**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Activities and performance (continued)**
## **b. Review of activities**
**Objective 1: To shape policy and legislation by equipping parliamentarians and policy makers, lead government departments, local authorities, police and statutory agencies to better understand the extent and nature of human trafficking, and the need to adjust rapidly to changing trends**
## APPG
Human Trafficking Foundation continued to provide the Secretariat to the All-Party Parliamentary Group (APPG) on Human Trafficking and Modern Slavery, co-chaired by Rt Hon Karen Bradley MP and Baroness Elizabeth Butler-Sloss. In 2021 the APPG focused on the Nationality and Borders Bill, meeting with leading AntiTrafficking NGOs and Parliamentarians from both Houses to explore the key concerns within the Bill relating to modern slavery.
The APPG and HTF also hosted two panel discussions open to all Parliamentarians to discuss addressing exploitation in supply chains relating to the textile industry and to investigate whether national borders are more secure or more porous since Brexit, with a HTF report published in 2020 entitled ‘Taking Back Control of our Borders? The Impact on Modern Day Slavery’ as the basis for debate.
## The Slavery and Trafficking Survivor Care Standards
In 2021, HTF’s Trafficking Survivor Care Standards were used to develop the framework for the Care Quality Commission to monitor all government safe houses for victims of modern slavery. The Unit Head of Victim Witness Coordinators in the Philippines also contacted us to use HTF’s Trafficking Survivor Care Standards to bring best practice to the Philippines.
## Local Government in London
Approximately one third of all victims of modern slavery in the UK are identified in London so HTF works with all 32 boroughs, plus the City of London Corporation, to ensure local authorities are meeting their duties under the Modern Slavery Act section 52 and systems are in place to identify and support survivors. In 2021, HTF supported seven boroughs to write a modern slavery strategy or policy, an additional to create a victim referral pathway and a further 3 boroughs to develop modern slavery e-learning. HTF attended 9 boroughs’ modern slavery board meetings to share good practice and worked with two boroughs on case reflection workshops to consider how the response to victims of modern slavery could have been strengthened. A Community Safety Manager from Lambeth Council described HTF’s support by saying, ‘ _The work that you do is invaluable. I cannot thank you enough. The information you’re pushing through is so hopeful and you have the wider oversight._ ’
HTF received complaints about limited information being provided by councils and police in victim referral forms, which was leading to victims being rejected from support. In response to this, HTF delivered an online conference for 300 professionals from London local authorities and the Metropolitan and City of London police. This offered guidance on producing effective referrals, information on how decisions are made and the importance of language. After the conference, 90% felt confident making referrals compared to 39% prior to the conference. HTF then worked with the Local Government Association who replicated the conference for local authorities across England and Wales.
Throughout 2021, HTF continued to coordinate The London Modern Slavery Leads Network (LMSL), the first and only cross-council group in the UK, which we established in 2018. An average of 50 professionals attended the quarterly meetings, representing all London boroughs and the Metropolitan Police. During 2021, the LMSL
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**(A Company Limited by Guarantee)**
## **HUMAN TRAFFICKING FOUNDATION**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Activities and performance (continued)**
data subgroup progressed dramatically with in-depth modern slavery data shared by the Met Police for the first time. Previously boroughs relied on limited pan-London statistics, which allowed some boroughs to avoid putting a response to modern slavery in place. With the Met anonymised data shared through HTF on a monthly basis, boroughs can understand victim and perpetrator profile in their local area and use this to develop an intelligence-led response to disrupt and prevent exploitation.
## **Objective 2: To provide a sustained and collective voice amongst NGOs, civil society, and voluntary organisations fighting modern day slavery so that short-comings in current policy can be identified and addressed, and how that can best be tackled**
## Nationality and Borders Bill
HTF coordinated the anti-slavery sector in response to the Nationality and Borders Bill. The Bill has an entire chapter on modern slavery and organisations were concerned that it contained clauses which would be harmful to victims. HTF coordinated parliamentary briefings; a letter to parliamentarians signed by 116 CEOs of NGOs clarifying the effect of the proposed Bill; amendments; and online events where parliamentarians could hear directly from survivors about the impact the Bill would have on them. The CEO letter was cited in Parliament and in various media articles as proof of experts’ agreement about the negative impact the Bill would have. It was important for the anti-slavery sector to have a unified voice when approaching MPs and Peers.
As a result of HTF’s coordination, the Government agreed to exclude children from a clause that would put a time limit on when they could disclose their exploitation. The Government also committed to work with the antislavery sector on the statutory guidance for the Act and MPs and Peers, who had not engaged previously with the issue of modern slavery, were actively involved and have offered future support.
## Anti-Slavery Day Awards
The Anti-Slavery Day Awards, held on Anti-Slavery Day (18 October), took place online for a second year. For the first time, we opened voting online and over 1,000 professionals for the Anti-Slavery sector voted to choose the winners. Individuals and organisations work tirelessly throughout the year to tackle modern slavery and the Awards provide a moment’s respite to reflect on what has been achieved so far.
## Anti-Slavery London Working Group
HTF also continues to run the Anti-Slavery London Working Group (LWG) for statutory and non-statutory partners. HTF coordinated the LWG to produce a pledge, which all London Mayoral Candidates signed, committing to prioritise modern slavery if they were elected. Following the election, we facilitated a workshop for the LWG to coordinate a response to the consultation on the Mayor of London’s draft Police and Crime Plan 2021-25, ensuring modern slavery remained on the agenda. Following requests from the LWG, HTF also created the first London specific directory of support services for victims, which is on our website and has been shared with our extensive partners to ensure agencies and survivors are aware of the support available.
## National Network Coordinators’ Forum
HTF continues to coordinate the National Networks Coordinators Forum (NNCF) we established for Coordinators of local Anti-Slavery partnerships across the country. We developed a progress tracker to enable the coordinators to share good practice and collaborate on projects and HTF held a development day for the coordinators to build resilience in their challenging roles, and to discuss creating local Anti-Slavery strategies and building partnerships. 100% of attendees agreed that they felt they had the resilience to deal with any challenges in their role compared to 56% prior to the development day.
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**(A Company Limited by Guarantee)**
## **HUMAN TRAFFICKING FOUNDATION**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Activities and performance (continued)**
## Additional Projects
In addition to coordinating our own work, HTF also contributed to other agencies’ projects. For example, we supported the charity Focus on Labour Exploitation to recruit attendees from each London council and Met Police basic command unit for their Train the Trainer project to ensure the support victims received is not based on a post-code lottery. The funder contacted us directly to thank us for our support with the project. In addition, HTF sat on a number of advisory groups, including a devolved decision-making panel steering group for trafficked children and a working group for developing a framework for training on child trafficking.
## **Objective 3. Identifying opportunities for new and different types of intervention within the rapidly evolving landscape of human trafficking**
## Advisory Forums
HTF produces a fortnightly newsletter for over 1,500 professionals working in the anti-slavery sector to keep them updated on policy changes and reports. The recipients are also invited to HTF’s advisory forum, which brings the sector together to hear from expert speakers on specific topics and emerging trends. HTF held 8 online forums in 2021, focusing on evolving issues from ‘The Barriers to Accessing Work and Education for Modern Slavery Survivors’ to ‘The Nexus Between Trafficking and Technology’. Four of the forums are discussed in more detail below:
HTF hosted a forum with the UK BME Anti-Slavery Network (BASNET) to mark the launch of their publication 'Promoting Racial Equality, Diversity and Inclusion: An Action Plan for the UK Modern Slavery and Human Trafficking Sector.' Chaired by Baroness Lola Young of Hornsey, the forum explored how to best implement the Action Plan to meet the needs of victims and survivors from different ethnic backgrounds and make charities more representative of the range of survivors they support. HTF continues to work with BASNET to support the implementation of the Action Plan.
HTF organised a forum on the ‘Voices of British Survivors’, co-created with two survivor advocates to highlight the challenges British survivors face accessing support. We wrote a report on the findings from the roundtable, which was featured in The Times, and led to a roundtable with five Government departments listening directly to the concerns of British survivors. The departments have agreed to continue to work together to address the report’s recommendations.
At the request of Snowdrop, a frontline charity, HTF arranged a forum on ‘Survivors and the Interplay of Exploitation with Learning Disabilities’, which led to a report entitled ‘Modern Slavery and Learning Disabilities’ looking at the under-explored correlation between cognitive impairment and exploitation. A working group has since been established to develop a practical toolkit for frontline practitioners to improve and tailor the support they provide to victims of modern slavery with disabilities.
Another forum HTF organised was co-hosted with Stop & Prevent Adolescent Criminal Exploitation (SPACE) and attracted 500 attendees. The forum, entitled ‘Child Criminal Exploitation and County Lines’, explored the challenges and responses to child criminal exploitation. Following the event, HTF, in conjunction with solicitors, facilitated two roundtables with frontline and statutory agencies to explore solutions further. HTF plans to summarise the findings from the roundtables in a report and include recommendations for various agencies, from Schools to Social Services to the Probation Service.
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**(A Company Limited by Guarantee)**
## **HUMAN TRAFFICKING FOUNDATION**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Activities and performance (continued)**
## Survivor Support & Victim Fund
Whilst HTF is not a frontline organisation, we provide small grants to survivors through the Victim Emergency Fund and have worked with Survivor Alliance to create a survivor-led London group. The Survivor Emergency Fund helps victims of human trafficking and modern slavery with small one-off grants (max. £200) to meet their immediate needs when no other sources of funding are available. We provided 58 grants to survivors in 2021, funding items such as laptops, warm clothing, essential items for unfurnished properties, school trips for children of survivors, TB tests and passports for Family Reunion processes and hotel accommodation while traffickers were arrested.
The London survivor group meets regularly and is led by a survivor of modern slavery with HTF’s support in identifying speakers and covering mobile data and travel expenses so survivors can access the group. The group has provided community support for survivors in London and a space for survivors to speak with each other and agencies on different topics. HTF organised a Christmas party with food, presents for the children, and food vouchers for members. One survivor said it was the first time they had been invited out in many years.
## **Financial review**
## **a. Finances**
An annual budget was agreed before the start of the financial year, setting out the policy and objectives for that year, the financial implications, and the general modus operandi for achieving the objectives. The financial transactions of the Foundation during the year and the financial position at the end of the year are set out in the attached accounts.
During this period, the Foundation received gross income of £211,657 (2020: £273,841) mainly in the form of unrestricted grants from the Esmee Fairbairn Foundation as well as other donations from trusts, such as John Ellerman Foundation, The Emmanuel Kaye Foundation and other individuals.
Restricted income came to a total of £72,000 (2020: £78,520), mainly from the City Bridge Trust (£62,500).
Expenditure for 2021 was £189,879 (2020: £188,639). This created a surplus in funds for the year of £21,791 (2020: £85,202).
We also have a reserves policy included in the carried forward balance which is listed separately below.
## **Our Funding**
The Foundation is very grateful to the trusts and individual donors, including HTF's chair Anthony Steen, who have generously supported our work since 2016, including:
Michael Bishop Foundation City Bridge Trust The John Ellerman Foundation Esmee Fairbairn Emmanuel Kaye Foundation Marsh Charitable Trust The Vandervell Foundation William Whyte Tait Charitable Trust Schroder Charity Trust Cheruby Trust
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## **HUMAN TRAFFICKING FOUNDATION**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **b. Reserves policy**
The Trustees have approved a reserve of £45,000, which equals approximately three months essential running costs.
## **Structure, governance and management**
## **a. Constitution**
The Foundation is constituted under a Memorandum of Association and is a registered charity number 1134448.
The Foundation is a limited company with registration number 07121887.
Our principal objective is to support and add value to the work of the many charities operating to combat human trafficking and modern slavery in the UK and to provide information and advice on preventing trafficking and modern slavery to parliamentarians, central and local government, regional and individual police forces and border and immigration agencies.
## **b. Methods of appointment or election of Trustees**
The management of the Foundation is the responsibility of the Trustees who are elected and co opted under the terms of the Articles of Association. New trustees are appointed by resolution of a meeting of the Trustees after nomination by one member, with due regard given to the diversity, skills, experience and knowledge required to complement the skill profile of the current Board. Upon appointment Trustees meet the Chairman and are briefed on their responsibilities and obligations as trustees and provided with appropriate documents.
## **c. Organisational structure and decision-making policies**
Trustees who served during the year were: Anthony Steen CBE (Chairman) Rt Hon Baroness Elizabeth Butler Sloss GBE (Deputy- Chairman) Rt Hon Lord John Randall (Deputy - Chairman) Paul Jackson (Treasurer) Lord Vernon Coaker MP Rt Hon David Heathcoat-Amory - Resigned 3 April 2022 Rt Hon Karen Bradley MP
The Foundation is run by a Board of Trustees, who play an active part in the running of the Foundation in conjunction with an outstanding team of three members of staff. The trustees meet quarterly. The role of the Board is to steer the growth and strategic direction of the charity, to approve the budget for the year and monitor the financial position based on regular reports, and approve the annual accounts, examiner's report and appointment.
In 2021, the charity’s activities were carried out by a small, committed team, comprising staff with different but complementary skills, supported by the trustees, keeping a tight focus on those areas where the Foundation is uniquely able to make a difference.
The Trustees review the main risks facing the Foundation on a regular basis, giving consideration to the appropriate policies, procedures and systems to minimise the Foundation’s exposure to risk.
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## **HUMAN TRAFFICKING FOUNDATION**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Statement of Trustees' responsibilities**
The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' Report including the Strategic Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP (FRS 102);
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
The Trustees are responsible for keeping adequate 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 financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the members of the board of Trustees and signed on their behalf by:
................................................ **Paul Jackson** Trustee Date: 16-09-22
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**(A Company Limited by Guarantee)**
## **HUMAN TRAFFICKING FOUNDATION**
## **INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Independent Examiner's Report to the Trustees of Human Trafficking Foundation ('the Charity')**
We report to the charity Trustees on our examination of the accounts of the Charity for the year ended 31 December 2021.
## **Responsibilities and Basis of Report**
As the Trustees of the Charity (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied ourselves that the accounts of the Charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, we report in respect of our examination of the Charity's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out our examination we have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent Examiner's Statement**
We have completed our examination. We confirm that no matters have come to our attention in connection with the examination giving us cause to believe:
1. accounting records were not kept in respect of the Charity as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
We have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
This report is made solely to the Charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our work has been undertaken so that we might state to the Charity's Trustees those matters we are required to state to them in an Independent Examiner's 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 Charity and the Charity's Trustees as a body, for our work or for this report.
Signed: Dated: 16-09-22
Martin Bailey FCA
Goodman Jones LLP 29-30 Fitzroy Square London W1T 6LQ
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## **HUMAN TRAFFICKING FOUNDATION**
## **(A Company Limited by Guarantee)**
## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2021**
|**Note**
**Income from:**
Donations and legacies
3
Investments
4
**Total income**
**Expenditure on:**
Raising funds
7
Charitable activities
**Total expenditure**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Unrestricted**
**funds**
**2021**
**£**
**139,657**
**13**
**139,670**
**-**
**118,036**
**118,036**
**21,634**
**169,904**
**21,634**
**191,538**|**Restricted**
**funds**
**2021**
**£**
**72,000**
**-**
**72,000**
**-**
**71,843**
**71,843**
**157**
**12,869**
**157**
**13,026**|**Total**
**funds**
**2021**
**£**
**211,657**
**13**
**211,670**
**-**
**189,879**
**189,879**
**21,791**
**182,773**
**21,791**
**204,564**|_Total_
_funds_
_2020_
_£_
_273,798_
_43_
_273,841_|
|---|---|---|---|---|
|||||_6_
_188,633_
_188,639_|
|||||_85,202_|
|||||_97,571_
_85,202_
_182,773_|
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 12 to 24 form part of these financial statements.
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## **HUMAN TRAFFICKING FOUNDATION**
## **(A Company Limited by Guarantee) REGISTERED NUMBER: 07121887**
## **BALANCE SHEET AS AT 31 DECEMBER 2021**
|**Note**
**Fixed assets**
Tangible assets
9
**Current assets**
Debtors
10
Cash at bank and in hand
Creditors: amounts falling due within one
year
11
**Net current assets**
**Total assets less current liabilities**
**Total net assets**
**Charity funds**
Restricted funds
12
Unrestricted funds
12
**Total funds**|**44,950**
**165,683**
**210,633**
**(7,024)**|**2021**
**£**
**955**
**955**
**203,609**
**204,564**
**204,564**
**13,026**
**191,538**
**204,564**|_36,160_
_158,318_
_194,478_
_(12,660)_|_2020_
_£_
_955_|
|---|---|---|---|---|
|||||_955_
_181,818_|
|||||_182,773_|
|||||_182,773_|
|||||_12,869_
_169,904_|
|||||_182,773_|
The Charity was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
................................................
**Paul Jackson Trustee**
16-09-22 Date:
The notes on pages 12 to 24 form part of these financial statements.
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**HUMAN TRAFFICKING FOUNDATION (A Company Limited by Guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **1. General information**
The Human Trafficking Foundation is a private limited company by guarantee incorporated in England and Wales. The registered office is Blackfriars Settlement, 1 Rushworth Street, London, SE1 0RB.
## **2. Accounting policies**
## **2.1 Basis of preparation of financial statements**
The financial statements 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Human Trafficking Foundation 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.
The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.
## **2.2 Company status**
The Charity is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the Charity being wound up, this liability in respect of the guarantee is limited to £1 per member of the Charity.
## **2.3 Going concern**
The Charity receives most of its income in the form of grants from trusts and foundations. After the reviewing the level of recurring expenditure, expected income for the year ended 31 December 2022 (including grants already notified to/received by the Charity), and the future plans of the Charity, the Trustees consider that the Charity is a going concern and that the financial statements are appropriately prepared on the going concern basis.
## **2.4 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
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**HUMAN TRAFFICKING FOUNDATION**
**(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **2. Accounting policies (continued)**
## **2.5 Income**
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 income receivable can be measured reliably.
Donated services or facilities are recognised when the Charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the Charity of the item is probable and that economic benefit can be measured reliably.
On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the Charity which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Grant income is recognised once the above criteria have been met, together with any perfmormance conditions attached to the grant. Grant income received is deferred only when the Charity has yet to fulfil the performance conditions.
## **2.6 Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the bank.
## **2.7 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Support costs are those costs incurred directly in support of expenditure on the objects of the Charity and include governance costs in respect of overall management of the Charity.
Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
All expenditure is inclusive of irrecoverable VAT.
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**HUMAN TRAFFICKING FOUNDATION**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **2. Accounting policies (continued)**
## **2.8 Tangible fixed assets and depreciation**
All assets costing more than £500 are capitalised.
A review for impairment of a fixed asset is carried out if events or changes in circumstances iindicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recongised as impairments. Impairment losses are recognised in the Statement of Financial Activities incorporarting Income and Expenditure Account.
Tangible assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
- Fixtures and fittings 25% straight line - Office equipment 25% straight line
## **2.9 Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **2.10 Cash at bank and in hand**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **2.11 Liabilities and provisions**
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.
## **2.12 Financial instruments**
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
Page 14
## **HUMAN TRAFFICKING FOUNDATION**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **2. Accounting policies (continued)**
## **2.13 Pensions**
The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.
## **3. Income from donations and legacies**
|Donations
Grants
Government grants
_Total 2020_|**Unrestricted**
**funds**
**2021**
**£**
16,080
123,577
-
139,657
_195,278_|**Restricted**
**funds**
**2021**
**£**
7,000
65,000
-
72,000
_78,520_|**Total**
**funds**
**2021**
**£**
**23,080**
**188,577**
**-**
**211,657**
_273,798_|_Total_
_funds_
_2020_
_£_
_22,870_
_244,554_
_6,374_
_273,798_|
|---|---|---|---|---|
||||||
Government grant income represents amounts received under the Coronavirus Job Retention Scheme.
## **4. Investment income**
|**Unrestricted**
**funds**
**2021**
**£**
Investment income
13
_Total 2020_
_43_|**Total**
**funds**
**2021**
**£**
**13**
_43_|_Total_
_funds_
_2020_
_£_
_43_|
|---|---|---|
||||
Page 15
## **HUMAN TRAFFICKING FOUNDATION**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **5. Analysis of expenditure by activities**
|Shaping policy
_Total 2020_|**Activities**
**undertaken**
**directly**
**2021**
**£**
133,702
_136,804_|**Grant**
**funding of**
**activities**
**2021**
**£**
9,110
_6,611_|**Support**
**costs**
**2021**
**£**
47,067
_45,218_|**Total**
**funds**
**2021**
**£**
**189,879**
_188,633_|_Total_
_funds_
_2020_
_£_
_188,633_|
|---|---|---|---|---|---|
|||||||
## **Analysis of direct costs**
|Staff costs
Awards event
Seminars, conferences and workshops
Printing, postage and stationery
Project travel, subsistence and volunteer costs
Consultancy and professional fees
_Total 2020_|**Shaping**
**policy**
**2021**
**£**
122,153
330
3,414
357
1,448
6,000
133,702
_136,804_|**Total**
**funds**
**2021**
**£**
**122,153**
**330**
**3,414**
**357**
**1,448**
**6,000**
**133,702**
_136,804_|_Total_
_funds_
_2020_
_£_
_120,163_
_731_
_4,400_
_196_
_147_
_11,167_
_136,804_|
|---|---|---|---|
|||||
Page 16
**(A Company Limited by Guarantee)**
## **HUMAN TRAFFICKING FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **5. Analysis of expenditure by activities (continued)**
## **Analysis of support costs**
|Printing, postage and stationery
Premises costs
Telephone and internet
Accountancy
Bank charges
Depreciation
Computer costs
Recruitment, staff training and other staff costs
Insurance
Independent examination fee
Trustees and governance costs
_Total 2020_|**Shaping**
**policy**
**2021**
**£**
220
24,454
1,042
11,682
127
413
2,384
1,240
934
3,600
971
47,067
_45,218_|**Total**
**funds**
**2021**
**£**
**220**
**24,454**
**1,042**
**11,682**
**127**
**413**
**2,384**
**1,240**
**934**
**3,600**
**971**
**47,067**
_45,218_|_Total_
_funds_
_2020_
_£_
_299_
_25,511_
_1,060_
_10,721_
_102_
_248_
_2,691_
_182_
_-_
_3,600_
_804_
_45,218_|
|---|---|---|---|
|||||
## **6. Analysis of grants payable**
|Victim fund
_Total 2020_|**Grants to**
**Institutions**
**2021**
**£**
9,110
_6,611_|**Total**
**funds**
**2021**
**£**
**9,110**
_6,611_|_Total_
_funds_
_2020_
_£_
_6,611_|
|---|---|---|---|
|||||
Page 17
## **HUMAN TRAFFICKING FOUNDATION**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **7. Expenditure on raising funds**
## **Costs of raising voluntary income**
|**Unrestricted**
**funds**
**2021**
**£**
Fundraising support
-
_Total 2020_
_4_|**Restricted**
**funds**
**2021**
**£**
-
_2_|**Total**
**funds**
**2021**
**£**
**-**
_6_|_Total_
_funds_
_2020_
_£_
_6_|
|---|---|---|---|
|||||
## **8. Staff costs**
|Wages and salaries
Social security costs
Contribution to defined contribution pension schemes|**2021**
**£**
**108,270**
**7,387**
**6,496**
**122,153**|_2020_
_£_
_106,664_
_7,099_
_6,400_|
|---|---|---|
|||_120,163_|
The average number of persons employed by the Charity during the year was as follows:
||**2021**|_2020_|
|---|---|---|
||**No.**|_No._|
|Full time|**3**|_3_|
No employee received remuneration amounting to more than £60,000 in either year.
Page 18
**(A Company Limited by Guarantee)**
## **HUMAN TRAFFICKING FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **9. Tangible fixed assets**
|**Cost or valuation**
At 1 January 2021
Additions
At 31 December 2021
**Depreciation**
At 1 January 2021
Charge for the year
At 31 December 2021
**Net book value**
At 31 December 2021
_At 31 December 2020_
**10.**
**Debtors**
**Due within one year**
Trade debtors
Other debtors
Prepayments and accrued income|**Fixtures and**
**fittings**
**£**
**4,560**
**-**
**4,560**
**4,560**
**-**
**4,560**
**-**
_-_||**Office**
**equipment**
**£**
**17,649**
**413**
**18,062**
**16,694**
**413**
**17,107**
**955**
_955_
**2021**
**£**
**1,773**
**1,403**
**41,774**||**Total**
**£**
**22,209**
**413**
**22,622**
**21,254**
**413**
**21,667**
**955**
_955_
_2020_
_£_
_-_
_1,403_
_34,757_|
|---|---|---|---|---|---|
|||||||
|||||||
|||||||
|||||||
|||||||
||||**44,950**||_36,160_|
Page 19
## **HUMAN TRAFFICKING FOUNDATION**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **11. Creditors: Amounts falling due within one year**
|Trade creditors
Other taxation and social security
Pension fund loan payable
Other creditors
Accruals and deferred income|**2021**
**£**
**962**
**-**
**963**
**121**
**4,978**
**7,024**|_2020_
_£_
_2,967_
_3,105_
_-_
_810_
_5,778_|
|---|---|---|
|||_12,660_|
Page 20
## **HUMAN TRAFFICKING FOUNDATION**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **12. Statement of funds**
|**Statement of funds - current year**
**Unrestricted funds**
**Designated funds**
European Council Work
**General funds**
General Funds - all funds
**Total Unrestricted funds**
**Restricted funds**
Survivor fund
Victim Fund
City Bridge Trust
**Total funds**|**Balance at 1**
**January**
**2021**
**£**
**30,000**
**139,904**
**169,904**
**(550)**
**5,871**
**7,548**
**12,869**
**182,773**|**Income**
**£**
**-**
**139,670**
**139,670**
**4,000**
**5,500**
**62,500**
**72,000**
**211,670**|**Expenditure**
**£**
**-**
**(118,036)**
**(118,036)**
**(1,900)**
**(7,242)**
**(62,701)**
**(71,843)**
**(189,879)**|**Balance at**
**31**
**December**
**2021**
**£**
**30,000**|
|---|---|---|---|---|
|||||**161,538**|
|||||**191,538**|
|||||**1,550**
**4,129**
**7,347**
**13,026**|
|||||**204,564**|
The current year restricted funds are held for the following purposes:
- Victim Fund - to provide necessary financial help to victims of human trafficking
- City Bridge Trust - grant towards the core work of the Human Trafficking Foundation
- - Survivor fund - to provide education for a specific survivor.
The prior year restricted funds were held for the following purposes:
- CJRS - government COVID-19 Job Retention Scheme income and associated salary costs
The current year designated funds are held for the following purposes:
- European Council Work Fund - the Trustees have desginated £30k for European council work in future periods.
Page 21
## **HUMAN TRAFFICKING FOUNDATION**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **12. Statement of funds (continued)**
**Statement of funds - prior year**
|**Unrestricted funds**
**Designated funds**
European Council Work
**General funds**
General Funds - all funds
**Total Unrestricted funds**
**Restricted funds**
Survivor fund
Victim Fund
City Bridge Trust
Covid-19 Job Retention Scheme
**Total of funds**|_Balance at_
_1 January_
_2020_
_£_
_30,000_
_67,262_
_97,262_
_-_
_98_
_211_
_-_
_309_
_97,571_|_Income_
_£_
_-_
_195,321_
_-_
_-_
_11,646_
_60,500_
_6,374_
_78,520_
_78,520_|_Expenditure_
_£_
_-_
_(122,679)_
_(122,679)_
_(550)_
_(5,873)_
_(53,163)_
_(6,374)_
_(65,960)_
_(188,639)_|_Balance at_
_31_
_December_
_2020_
_£_
_30,000_
_139,904_
_169,904_
_(550)_
_5,871_
_7,548_
_-_
_12,869_
_182,773_|
|---|---|---|---|---|
Page 22
**(A Company Limited by Guarantee)**
## **HUMAN TRAFFICKING FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **13. Analysis of net assets between funds**
## **Analysis of net assets between funds - current year**
|**Unrestricted**
**funds**
**2021**
**£**
Tangible fixed assets
955
Current assets
197,607
Creditors due within one year
(7,024)
**Total**
191,538
**Analysis of net assets between funds - prior year**
_Unrestricted_
_funds_
_2020_
_£_
Tangible fixed assets
_955_
Current assets
_181,609_
Creditors due within one year
_(12,660)_
**Total**
_169,904_|**Restricted**
**funds**
**2021**
**£**
-
13,026
-
13,026
_Restricted_
_funds_
_2020_
_£_
_-_
_12,869_
_-_
_12,869_|**Total**
**funds**
**2021**
**£**
**955**
**210,633**
**(7,024)**
**204,564**
_Total_
_funds_
_2020_
_£_
_955_
_194,478_
_(12,660)_
_182,773_|
|---|---|---|
## **14. Pension commitments**
The Charity operates a defined contribution pension scheme. The assets of the scheme are held seperately from those of the Charity in an independently administered fund. The pension cost charge represents contributions payable by the Charity to the fund and amounted to £6,496 (2020: 6,400). Contributions totalling £963 (2020: £nil) were to the fund at the balance sheet date and are included in creditors.
Page 23
**HUMAN TRAFFICKING FOUNDATION (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **15. Related party transactions**
The Foundation reimbursed the Charity's Trustees for travel, hotel, and other direct costs incurred as a result of their voluntary work on behalf of the Foundation. All costs incurred were considered to be exclusively in the pursuit of the charitable objectives of the organisation.
Amounts reimbursed during the period are as follows: Anthony Steen CBE - £971 (2020: £916) Vernon Coaker MP £nil (2020: £80)
At the balance sheet date, £nil (2020: £288) of these costs remained outstanding.
During the year, a donation totalling £1,000 (2020: £5,000) was received from a trustee. No restrictions or conditions were attached to this donation.
## **16. Operating lease commitments**
At 31 December 2021 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:
|**Within 1 year**
Within 1 year
Later than 1 year and not later than 5 years|**2021**
**£**
**14,280**
**22,610**
**36,890**|_2020_
_£_
_-_
_-_|
|---|---|---|
|||_-_|
The following lease payments have been recognised as an expense in the Statement of Financial Activities:
||**2021**|_2020_|
|---|---|---|
||**£**|_£_|
|Operating lease rentals|**14,280**|_-_|
||**-**|_-_|
Page 24