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REGISTERED COMPANY NUMBER: 03798480 (England and Wales) REGISTERED CHARITY NUMBER: 1139773 Report oftho Tn9 and FIMn¢191 Slatsmwts fortho Y•ar Ended 31 March 2021 for PHoeNIX COMMUNITY CARE UMrrEO Knox crOpr LLP 15&155 London Road Hemel Hempstead Hertfoidshire HP3 9SQ

PHOENIX C¢XIMUNrrY CARE LIMITED Contents of the Financial Statements forth8 Year Endèd 31 March 2021 Page Roport of th• Trusto9s Reportof th• Ind•p•nd•nt Audltor5 8 10 11 statement of Finan¢ial Al¥ts¢8 12 Bala9 Shgat 13 Cash Flow Stat•ment 14 Notss to Cash Flow Stat•mont 15 Nots8 to the Flnan¢lal Statsn*nts 16 10 25 Detsilèd StslÈm8nt ol Financial Activities 26 to 27

PHOENIX COMMUNITY CARE LIMITED Report ofthè TrtteaS for the Year Ended 31 March 2021 The trust88s who af8 also dirèdors of the charTty for the purposès of the Companies Ad 20(, present the report with the finandal statements of the t*arity fcf the year ended 31 ma 2021. The trustee5 have adopted the provisions of Aco)unling and Reporting by Charities.. Statem8nl of Recommended Praclice applicable to charibès pr8paring Iheir accounts in a1X8 wlh Financial Reporting Slandard applicaNe in the UK and Republic of Ireland {FRS 102) (effective 1 January 20191. Page 1

PHOENIX COMMUNITY CARE LIMITED Report ofthe Trustses forthe Year Ended 31 March 2021 OWECTIVES AND ACTMTIES Oblectives and aims Purpose al The relief of those in need, hardship or disiress espeallY those that are vulnerable, young p90pb, asylum seekers and refugees by the pwsion (trf supportod housing for their benefit. b) To advance in lrfe and relieve the needs of young 0p1a by the operation of a foster care agentty and by provKlin9 care and support for their benefrt. cl To advance the edu¢xtion of the public by delivering training and education for young people (between thè es of 14-191, asylum seekers and refugees who are not in èdu(>tK)n or èmployment. d) The relief of rKJvety but not excluswely in Sri Lanka, Rcrnania and Kenya by funding and provKJing support to orphanages, schools and lo feeding progratns that affe¢i members of depriv8d communities., and by the prowsion of volunteers lo thjrther thiswork. Supwrt•d Houslng We Srtl ovr supported housing programme back in 2001. This Serv lakes young vulnerable adults. the majority being 16yrs 18yrs old and a refvgees or asylum seekers. Wè providè semi-independenl aCmmOdation. help enrol them into college or training programmes and support their legal and medical needs. During their stay wth us, thèir allocated kèyworker will help them develop their independent Imng skills. A recognised qUalffitiOn that all our Ser¥e usets can obtsined while with us. During 2018 PCC r8gislere(J wilh OCR {Oxford Cambridge Royal Sociéty of Art) to be able to delNer coufse5 in life skills, and lo cerbficate them up to level 3. FrCal9 Ag•n¢y Our fostèr (sr8 agèncy opènèd In 2005. We went frr>m 14 households on April 1st 2020 to 18 households on Mar( 31512021 with 4 farnilies approved I no f3tnilies left the agèncy in this period. Our ocnjpancy 1$ st611 high within the agenq wilh 26in plarnent on 31st March 2021, with 5 dassed as k)ng-tem plaeements. Monitc)ring ntinUeS to evolve lo mepl Ihe needs of the seThi wilh CHARMS audits done monthly and aayS lo(*ing atvrdys of imprOTr3 our monitoring. We did a mock Ofstèd rèport on how we can approve the agency. We continue lo asFire lo sustainable growth al our current pa with 8 strong focus on the approval of a mature and diverse pool of foster carers that refiecl the communty that we octupy and the needs of the thildren we foster. PCC also contfnue to pursue wL¥king In Northeast England bul have slwggled for growth since the added 1st househdd last financAal year. This something we conb'nue lo investigate. Short Tenn Aim8 To build up to 25 hcwseholds and 30 regular placements by the next finarrAal year, Long Terni Aw A long-tèm business goal would be lo establish more of a pSenCe in the Norlh of England. We are promoting PCC natialty via our online presen and by attending wnal prThnotional events, conferences and festivals. CPD PCC has aayS delwered trainiNJ, both intem811y and extemally and to of r8e our foster rers, we have currentty 4 accredited courses we can delN¢r, and others are in the pioduclK)n process. Stratsgi•s Page 2

PHOENIX COMMUNITY CARE LIMITED Rèport of the Trustees for the Year Endèd 31 March 2021 In $ettlng objectNes and pl8nnlng for act1w1@s, Ihe Trustees h8ve given due ¢xnsid8ration to general guidanc& published by the charily o)mmission relating to public benefft and lo ts wpplement8ry public tnèfit guidan for grant making charities. We also seek the advice and guidance of parties we are affiliated lo and re9islered th. such as NAFP & Foster Talk. We are also govemed by OFSTED and our practice is dosely monitored. Wè have obtained recognthn from Investors in People and have helj onto this award for 11 years. We employ qu8lffied personnel to fa¢ilitalfr the folk)wing roles whhin Ihe ciganisation.. Key working - Adrninistration & Accounts induding DBS - Placements - Maintenan Data control & IT - Sw81 WDrk - Foster care rnanagemeni & governance - Training OCR and CPD - practi Educator5 ltraining and monitorirffJ sbjdent socral worker5. We offer student soaal workers 7(k and 1(K)-d8y 2CMents to the Univ8rW of Hertfordshire and Middlegex unertY using our and practiix educators. Thi5 is prowding work trxperie and valuable training to those who seek to berne effeth've and influential in Ihe field of socaal work. Measuring Examining and measuring suoEss seems improper when dealing wrth looked after children's INes and young F¢OF4e for the purpose of this report we do the following:. Foster Care.. We Monit placement availability and referrals from local authoriiies by use of U)e CHARMS system. OFSTED cary out three-year inspections and make recomrnendatK)ns of how we can improve our Unaccompaniad children IUAM's1- Supported Houwng". We monitot the numbei of releffds Ing re¢eived as well as the e1hnity and country of origin of the seTric user. Our team net monlhly to VIeW all ¢ases and individual needs of service users. We also in 2019 started using CHARMS in for all our COrd keeping fomi our expellere of using this system wilh the Foster Care department. Charlty Income". Vve have seen a steady and stabl8 inu8as8 in the amvnt of regvlar thatiOnS bèing receiv8d into PCC for tha child sponsorship programme in Kenya. This infotvnation is compiled into a monthly report and reed by the Trustees. PGC 15 a specialist in handling finance for spei?al projects in Romania l Kenya and Sri Lanka and other organisations have asked us lo help Ihern in the transfer of funds to their nDn-UK projeds. We are parttcularfy helping OLbr partner charity in South London who regularty conbibute to Rain Edge in Kenya, to Dar to Dream in Rofflania and lo Tumaini Projed akn in Kenya. I guess the fact Ihal our onty thaige for this 5eNce is bank ()argés th8t we in¢r. Obviously, the is 8 kn'rnelstaffing cost lo PCC Charity, and we will keep thi% servi that we are supplying to other under reeW by the trustees. Friènds of PCC: We 0S1onallY have people wanting lo donate to the local work wè ore doing with our unac£ompanied asylum-se8kn.ng children. MiSsn Direct, who adopled PCC in 2017 conbnue to help us. Thtyr usual actmty of sending 8 group of volunteers, Iw"ce yearfy. lo do m8intenance woL in our properb'es was affected by COVID restrictions. W8 also have indMdual8 regularty sponsoring our work here in the UK aThJ they are considered 'Friends of pcc.. Page 3

PHOENIX COMMUNITY CARE LIMITED Report of the TNstees for the Yèar Endèd 31 March 2021 OWECTIVES AND ACTNMES Signfflcant actbvitles To run the lollowing prograrnme5, we have increased lo 16 staff rnembers. tdcililate 4 or 5 51ud8nt swal workef placernents, & various volunteers. We have created a new role in foster care administration, added an exlra mernber of staff to our final department, boQkkeer assistant, and another kÈy wcthr to (xjr UASC section la past resident of our UASC supported housing projeGtI. Phoenix Communty Care actNety promots and raise funds for the work of the following proje¢t$ as well as our own projects here in the UK. This year has Seen considerable fundraising programmes indL*ling a I0dIn PCC '20 days, 5UPPOrt for Kenya in the t¢ginning of the Covid crisis. All being Sussful we a supporting work in., Rainedge Intemational. Nakuru, Kenya. - Paalam Project, Wattala. Sri Lanka - Da to Dream. Romania GTrnts We collect regularth)nations from indi¢Val$ for the wk in Kenya and pass these onto the warious projects. Wè a grant from the UNHCR towards o)mputers for our young peoplè living in wr SeM1ndepéndÉllt acwmrn(Klth"on. Vve (y)mpleled the delivery of a frM)tball programme nded by M(NJel Cty London, a proje¢ we have continuj with and are seekiru fvrther fvnding lor. We recewe a small grant from facAlrtating student SOfAal work 8(Ments and a grant for helping new soryal Wotk gradualgs Complete their AYSE. Publlc bènefft We provide $eTriS to support some of the most vulnerable people w((hin our communty. Looked after Childft, UASG. asylum sÈÈkers ar rèfugees need consistent support, reliable advcw and to have a voice. Our provisn helps bring stability and make a dTh7grence to those in need. It also seeks to educate everyone in the complex needs that the most vulnerable have. Our SèMeAs havè bèèn effectNe in hdping lo redu homelessness, yth offending and teenage pwnancy. 11 helps en(x)urage 8 greatsr understanding of cultur81 dwersity thus redu¢ing fear and misunderstsnding. We want our local communty to grow p8ac8fulty, 8ddrèssing the needs ofthose less fortunate and being a of safety and empathy. Social investments We put nvestMent into Football United working with various charities to bn'ng weeY training and activft(es for young refteeS l asylum seekers. A projecl inf(kg1ty fiJnd8d through Model Cty London.pitches. Volunteers Mission Direct continue lo support our work with the Unaczompanied Asylurn-seeking Childrèn IUASC) s8cbon by visiting tsvice a year lo renovate oui properties. Thè Oup3nts love the changes they bring and the volunteers, many of whom have never seen or heard of 8 proje¢t like ours, report that they feel the experience has changed them and want to comè bad( to do (( again. This has rnl happened in this finatxial year for asons. Page 4

PHOENIX COMMUNITY CARE UmE0 Reportof the Trustees for the Year Endèd 31 March 2021 STRATEGIC REPORT A¢hievement and performan¢• Charitsble activities Fostèr Carè - A rise in tarers and Child p(4ced. Orive to different melhods support and keeping Childft safe in caring carers. UASC Supportèd Houslng - Less than high occupancy for the finanaal year. Charfty - managed to se(xJre 8 substsnlial number of sponsors for Sure 24, Nakuru, Kenya, a project wh funds Childn'S care and educalK)nal needs. INe conb'nued our 'spon50r 8 child, sthème wrfh a Norwegian charty. Financial VIeW Financial position Our overarching finanaal irmme is generated Ihiough the ServiS we Pfovide through our supported housing and our fostering agency as these Serv9$ arè paid for at time of refèrral. Our income Ihis year was £1,567.566 whth is a 2.4.10 increase on last year. Our ¢ontra¢ts wrth the placing aulhorilies are open ended as they are based on spot purchasing. Out of these ndS we are endeavouiing to buihj up a reserve large enough to ver Ihe busin8ss acteS for anotharthreè rnonths should any disaster occur. The c*aiity reIVeS various donations that are used for the proje¢Xs they have desiqnatsd lo. In the past year the lotal donations have been £132.911. We havo variou5 policies in place explaining fin8n¢yal prdureS and a¢¢ountability. Our payroll and pension li8bilth.es are cal¢u181ed for us by JMH Partnership. Reserves policy The trustees have examined Phoenix Community Care Charivs requirnents for reserves in the light of main risks to the organisalion and has detennined that a reserve ofkn morths expenditure be held. Th8 present level of r8serve availablè to th& Charity is £94,752 and PCC are looking to maintain this over the next 12 months. STRUCTURE, GOVERNANCE AND NAGEMENT Governing document The thanty is controlled by rts govemitvj document. a deed of Irusl. and consliluies a limited company. limited by guarantee, as deffined by the Companie5 Act 20(b. REFERENCE AND ADMINISTRATIVE DEfAILS Registered Company nuTnber 03798480 {England arxl Wales) RegSstered Charlty numbor 1139773 Regi¥tered office RODM 4142 639 Enterprise Cantre High Road London N178AA Pagg 5

PHOENIX ColMUm1Ty CARE UMITED Report of the Trustees for thè Yèar Ended 31 March 2021 Ms M Bumett J A Coales Mrs P A Hawkes G l J Hawkes A L Hawkes Mrs A Kelly Mrs C S Mayer Company S•¢r•tary Mrs A K&lly Auditors Knox Cropper LLP 15>155 London Road Hèmel H8mpstead Hertfoidshirg HP3 9SQ Accountants The JMH Partnership Ltd Chartered Ceitified Accountants 481 Green Lanes L(ofi N13 4BS EVENTS SINCE THE END OF THE YEAR lntormth.on reLg1ing to events since thg end of the year is 9Th18n in th8 IKltes to the financial statements. FUNDS HELD AS CUSTODIAN FOR OTHERS Rainedge Inlernational, Nakuru, Kenya STATEMENT OF TRUSTEES. RESPONSIBILITIES The tnjstees (who are also the directors of Phoenix Communty Care Limited for the puipos8s of ttjmpany lawl are responsible for preparing the Report of the Trustees and the financaal statements in a(lordae with applieAbl8 law and United Kingdom Accounting Standards (Unrted Kingdom Generalty Accepted knounting Company law qUireS the twstees to prepare finanaal 81alements for each ffinancia5 year which gNe a true fair Mew of the state of affairs of the charitable company and of the incoming resources aThJ application of resour¢%s. including thè incom8 and èxpènditure. of the tharitable compary for that pericNJ. In preparing those nanal ststements, the trustee5 are required lo sèth suitable accounting policies and then appty Ihern consisleth.. observe the m81h¢xls and principles in the Chatity SORP.. make judgements and estirnates that are Teasonable and prudent., state whether applicable accounting standards have been followed. subjed lo any material rlepartures disdosed and 8xplained in the fJn8nfyal ststemerrts., prepare the ffinancial statements on the going concem basis unless rt 15 inappropriate to presume that t charitable company will continue in business. Page 6

PHOENIX COMMUNITY CARE UMITED Report ofthe TNstses forthe Year Ended 31 March 2021 STATEMEIIT OF TRUSTEES. RESI¥)NSIBILITIES- ¢ontinu•d The trust8es are responsible lor keeping proper accnunting records which disclose WTth r8asonable acraCY at any b.me the finanrial p0SOn of the charitable company atNI to enable them lo ensure that the ffinanaal stslemenls compty with the Companies Aci 2(M)6. They are also responsible for safeguarding the assets of the charitable company and h8nce for tsking reasonable steps for the prevenb.on and ettIOn of fraud and other irregularibes. In so far as th& trustees are aware.. there is no relwant audit information of which the (1)aritae companys auditors are unaware., and the trusteès havè tak8n all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors ar8 &v8re of that information. AUDITORS The auditors. KTrJx Clopper LLP. will be proposed ts re-appointment at the forthcoming Annual General Mgel'ng. Report of the trustees. incorp)rats'ng a strategic report. approved by order of the boarf of trustees, as the mpany dirodors, on 17 Decembgr 2021 and signed on fv board's tehawby.. PMIL4rL A A gLAJ Mr¥ P A Hawkes. Trustee Pe7

Report of Indèp•nd•ntAudilors to the Idembers of Phoenix Communty Care Limited Opinion We have audrted the financial slalemenls of Phoenix Community Care Limited Ithg 'charita company) for the year ended 31 March 2D21 which comprise Ihe Statement of FinanGial Actiwties, the Balance Sheet, the Gash Flow Stslemenl and not8S to thè finanaal statements, induding 8 SLJmmary of signnlcant accounting policies. The finanaal p0"n9 framework that has been applied in their preparation is applicable law arKI United Kingdom Accounting Standards (United lthngdom Generalty AePted Aco)unling PiaclK?I. In our opinion the fina9] stslemenls.. give a true and fair view of the slate of the thaiilable companrfs affairs as al 31 Maich 221 and of its incx)ming resour$ and application of resources. induding its IrMe and expenditure, for the year thèn ended.. have bew proFerfy prepared in acOran with United Kingdom Generally Accepted Acwunting Practic8.' nd have been prepared in >)rdance with th8 r8quir8m8nts of th8 Companies A¢A 2006. Basis for oplnlon We ¢ondu¢ted our audit in a1x0Tdan with Intemational StarKlards on Audibng {UK) IISAS IUK}l and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilrtie5 for th8 audit of the finanaal siatements section of our reFx)rt. We arè independent ol Ihe charitable compary in accordance wth Ihe ethiral requirements that are relevarrt lo our audit of the finanaal statements in the UK. including the FRC'S Ethical Stsndard. aThJ we have fUilled our olher elhical responsibilit$ in atxordance with these qUIreMents. We believe that tre 8Yrt evidencè wè have obtained is suffic4ent and appropriate to prowde a basis for our opinion. Concluslons r•latlng to golng conc•rn In audthng Ihe finarrial statements. we have concluded that Ihe Iruslees, use of the going concem basis of a¢counting in the preparation of the finanoal staiements is appropriate. Based on th8 work we have performed. we havè not iden1ified any material UnrtainlES relating lu events or condits'ons ihat, indNidually or collectively, may cast $ignifi¢ant doubt on the charitable c¥mpanYs abilty lo continue as a grmng conckm fot a period of at least tsyelve monlhs frotn when tha financial statements are authorised for issue. Our res1781b1Irtie8 anij th8 re5ponsibilits of the Iruste8s wrfh respect to gcing cOnM are descrfbed in the relevant seclions of this rep)rt. Other information The trustees are responsible for the other informalron. Thè other infomiation comprises the inforrnatitin induded in the Annual Rert, other Ihan the financial statements aTK1 our Report of the Independent AuditOTS Iheteon. Our Opin on the financAal statements dcs not iTher the other infornith'on and, except to the extent othwise expliGilly stsled in our report. we do nol express any form of 855Utance nduOn Ihgreon. In connection with our audit of the finanL?al stalemenls, Our fesponsibility is to read the olher infomiab.on and, In doing so, consider whether the other information is maleiialty irMx)nsistenl with the ffinanual statements cff our knowledge obtainèd in thè audit or othèrwisÈ appears to be materially rnisslaled. If we identify such material I[OnSI81ecAe5 or apparent rnaleryal misstatements, we are requi to determine whether this gives rise to a rnaterial misstatement in the financial stalements themseeS. W, based on the woth wa have performed. we rxjndude that therè is a material misst81emÈnt of this other information. we are required lo port thal lact. We have nothing lo report in thi5 iegard. Page 8

Report ofthe Independent Auditots to the Memborn of Phoenix Commun5ty Care Llmited Oplnions t)n othgrrnalt5 Prescrib by the Companigs Act 2006 In ovr tspinion, based on the work undetsken in the course of the audi(". the information given in the Report of the Trvslees for the finanL?al year for which lh8 finanrAal statements are prèpared is consislenl with thè finanaal statements.. and the Report oftho Trustees has been prepared in accordance with applicae legal requirefflents. Mattorn on which w• are requlrod to report by exception In the IHJht of the knowledge and understanding of the tharitab company and its environment obtained in the course oflhe audit, we have not idenbfied material misstments in the Report ofthe Trustees. We have rthIng to port in respecl of the follow'ng matters where the Companies Act 21Y)6 r8quir8s us to report lo you rf, in our opinv)n'. adequate accounting r8u)rds have rt been kept or relums adequate for our audit have not been received from branches not Msitèd by us.. or the finanrAal statements are Thjt in agreement with th8 attntIfig records and retums,. or certain disclosures of trustees. remuneration specified by law are nol made,. 01 we have not received all the infom1.( an(1 explanats'ons we require for OLbr audit. Responsibilitios of trustoes As eXplaIr more fully in the Statement of Trustees. ResponsibilOb"es. th& trustees (who are also the direclors of the charitable company f(K the purposes of company lawl a responsible for the preparation of tho financial ststemenls and for being satisfied that th&y give a truè and fair wew, and such inlemal ntrOl as the Iruslees detemine is necessary to enable the preparation of finanal statements that are free from material misslatement, whether due to fraud or error. In preparing the finanoal st*ments, the trustees are responsible for assessing the Charitab txjmpany's ability to wntinue as a going concem. disc105ing. as appliiable, matters related to going conrn and using the going concem basis of acwuntiTrJ unless the twslees etther intend to Ilquldelo the ¢hartsble o)mpany or to se operathjns. or have no realistic aliernalive bui to do so. Page 9

Rewjrt ofthe Indop•ndènt Avditots to the M•mb•rn of Phoenix Communty Care Limited Our pOnsIbIlItieS for th• audit of th• flnancial stat•m8nts Our objectivos are to obtain reasonab assurance atrM)Ut whether the financial statements as a whole are free from material misstalernent, whether due to fraud or error. and to issue a Report of the Indendent Audilofs that includ8s our opinion. Reasonable assurance is a high level of assurance. but is not a guarantee that an audrt ¢onduded in aordanCe wlh ISAS (UK) will always detect a matetial mi881at8mant when r( exists. Misstalemenls can arise from fraud 01 error and are considered material if, individualty or in the aggiegate. they could reasonably bè èxpèctéd tr) •nffuee the eConOrn deslon$ of users taken on the ba&s of the3e financk31 slalemenls. Irregularitiès, induding fraud. arn instances of non<ornplIan with laws 8nd regulations. We dèsign pioceduies in line wtlh our iesFwsibilities, oulined atxjve, to detect material misstslèments in respect of irregularrties. indudiThJ fraud. The extent to which oui ptpcdufg5 arg ¢apabt8 of detectiTrJ iThegularitw, induding fraud 1$ dÈlailèd bèl(w4'. Charitable Company is wuired to comply with th company law and tharty law and, based on our knowledgè 01 its atvitiès, WÈ KIènt1fd that the legal requirement to aczuratety accwnl for restricied funds was of key signthcance. . We gained an understsnding of how the charitable L¥Mipany (x)Mle wlh ts121 and regulatory fram8WOrt, induding Ihè requiremènt to propety accouTIt for restricted ffijnds. thmugh di$tsJssions wllh management and a reeW ofthe d0meThIed policies, prOdUreS and controls. The audf( team, whiL 15 experienced in the audit of charitiès. considèr8d the charrtable company's susceptilIty to material misstatement and how fraud may 0¢r. Our ¢onsKlerat#)ns included the risk of manag8ment override. . Our appioath was to Check th all restrided incorn8 was properly idenb'fied and separatety a¢¢ountÈd for and to ensure that only v8lid and appropriate expendfture was tharged to Stricted funds. Thi5 included rewewing journal adjustrnents and unusual transacts"ons. There a inherent lirnitations in the audit procedures described atYe and. the further MOVed non-(x)mplrance with laws and ragulations is from the events and Iransath'ons refle(aed in thè finanal ststèmènts. the less likèly we wwld bècomè aware of it. The risk of not detecting a material misstatement due to fraud is higher than the risk of not deteth'ng one un9 from error, as fraud may involve deliberat8 concealment by, fr)rexample, forgery or intentional misreprésentations. orthrough collusion. A fvrther descripthon of our respwisibilities for the audit of Ihe finanaal statements is focaled on the Finarval R8POrting Counal's websrte at wvm.frc.org.uklaudrtorsrespcSlbll1ties. This deSCrin foms part of our ReKKJrt of the Independetrt Auditors. Page 10

Report ofthe IndwndentAuditors to the Memb•r8 of Phoonix Community Care Llmlted Use of our Y¢port This report is made solely lo the th8ntsble company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audrt work has been undertaken so that w8 might state lo the Charitab companvs members those matters we are required to slate to them in an audiiors, report and for no other purpose. To the lIest exlenl pemiitted by law, we do not accept or assume responsibilty to anyone other than the ¢harft8ble company and the charitabb companls members a$ a body. for our audit work. for thiq report. cf for Ihe optnKJns we have forrned. Stephen Andefson ISenh)r Ststutory AudTtoQ for and on behalfof Knox Cropper LLP 153-155 London Road Hemel Hempstead Hertfordshire HP3 9SQ Date.. Page 11

PHOENIX COK•41UNITY CARE LNITED Statement of Flnanclal Actfvltlas for thè Yèar Ended 31 March 2021 2021 Total fund 2020 Total funds Unfelrided ftjnd Restri<ed fvnds Notgs INCOME AND ENDOWhlENTS FROM tk•n8tions and legaoes 38,764 115.699 154,463 149.341 Charftable acllvltles Foster Care/SemlndÈpndent Accornmodation & Support 1.413,098 1A13.098 1,380,384 Inve51menl incoTh Other inLx)me 1,589 Total 1.4S1.867 115,699 1.567.666 1,531,316 EXPENDITURE ON Raising funds 216 216 4,942 Charftable actlvltks Foster Carelsemi-independenl Accommodab'on & Support 1,609.386 8.347 1.f17.733 1,255,235 Other 31,027 108,966 139.993 168.817 Totsl 1.640,629 117,313 1.757.942 1,428.994 NET INCOMEI{EXPENDITURE 1188,762) I1.37£ 102.322 RECONCIUAnoN OF FUNDS Totsl fund8 broughtfopard 280.826 4.302 28S,128 182,808 TOTAL FUNDS CARRIED FORWARD 92.064 2.688 94.752 285.128 Tho notes form part of these finan(aal ststements Page12

PHOENIX COMMUNITY CARE LIMITED Balancè Sheet 31 March 2021 2021 Totsl funds 2020 Total funds Unr&stricted nd ReslrLtsd nds Notes FIXED ASSETS Tangible assets 12 38208 38208 416,001 CURRENT ASss Debtors C8sh al bank and in hand 115.283 121.338 115.283 124.026 112,3W2 93,629 2,688 236.821 2.688 239.309 2[.021 CREorroRS Amounls falling due within one year 14 1157,7381 1157.738) (lo7.8} NET CURRENT ASSErs 78.883 2.688 81.571 98.113 TOTAL ASSEfs LESS CURRENT LIABILITIES 117.091 2.688 119.779 514,114 REDORs Amounts falling due aftet rnore than one year 15 125.0271 125,0271 1228,9861 NET ASSETS 92,064 2,688 9L752 285,128 FUNDS Unresincted funds Restricted funds 18 92.064 2.688 280.826 4,302 TOTAL FUNDS 94.752 285,128 The financial statements were approved ty Ih8 Board of Trust98s and authoris8d for i&8ue on 17 December 2021 and wére signed on its behalf by". ', QywUL/F& A Vi mL/L- P A Hawkes- Trustee The notes form part ol these Ilnanck91 statemen15 Page 13

PHOENIX cof4MUNITY CARE UMITED Ca$h Flow Statwnent for the Y8ar Endod 31 Mareh 2021 2021 2020 Cash flows fr¢m operating activiti•s Cash generated from operations Interest paK1 128.0761 18051 73.694 1850) Net cash (used in)Iprowded by operating actNthes 1280811 72,844 Cash flows from Investtng actlvilios Purchase of tangle fixed assets Sale of tangible ffixed assets Interest rVed 13301 74.800 134,7231 6.500 22 Net cash prowded bylluse(J inl investing actNits 74A75 128.2011 Cash flows Irom financing actlvltles Loan repayments in year Capital repayments in y8ar 127.2781 16.534 13,2311 Net cash used in financing activities 110.7441 Change In cash and cash equival•nts in the reporting period Cash and ea$h èquivalents attho b•glnnlng of the reportlng period 30.397 33.899 93.629 59,730 Cash and cash oquivalent8 at the end of the reporting perlod 124,026 93,629 notes fom part of these financial statements Page 14

PHOENIX COhlMUNITY CARE LIMITED Ilotes to tho Cash Flow Statoment for thè Yèar Endèd 31 Mareh 2021 RECONCIUATION OF NET IEXPENtMTUREIIINCOME TO NET CASH FLOW FROM OPERATING ACTMTIES 2021 2020 Net {expenditure)fincome for the reportfng pernd las prthe statement of Flnancjal Activilie51 Adluslmonts for.. DeprecKgtion charges Lossllprofitl on disposal of frxed assets Interest reiVed Interest paid Ilncr8as&lldecreas• in d8btors Decrease in creditors 1190,3761 102,322 12,221 291,102 49.854 11.5891 1221 850 32.755 1110,476) 805 12,8911 1138.9321 Nètcash {used in)Iprovidgd by oporations 128.0761 73,694 ANALYSIS OF CHANGES IN NET FUNDS At 1.420 Cash flow At 31.3.21 Ngt cash Cash at bank and in hand 93.629 30.397 124,026 93,629 30.397 124.026 Finance lease$ Debts falling du& within 1 year Debts falling due after 1 year 116,$34) 111,967) 112,8581 3.231 B,227 3.739 113,3031 13.7401 19.1191 141,359) 15.197 126,1621 Total 52.270 45.594 97.864 Th8 notss form part of these ffinanclal slalements Page 15

PHOENIX COMMUNITY CARE LIMITED NotÈS to the Finan¢i31 Statsments lorthe Year End•d 31 Mareh 2021 ACCOUNTING POUCIES Basis of preparing the financial statements The financial statements of the charitable o)mpany, which is a publt benefit entity und8r FRS 102. have been prepared in ardance wilh the Chariti8s SORP IFRS 1021 'A(unts"ng and Reporting by CharTties'. Staternewrt of Reo)mmended Practi appIlble to tharities preparing their a(t4)unts in accordan( with the Finanoal R8ptstng Standard applicable in the UK and Republic of Ireland IFRS 1021 {effeth've 1 January 20191., Finanual Rèporting Standard 102 'The FinarrA81 Repo"n9 Standard apicab in the UK and Republ of Ireland, and the Companies Act 20(. The financAal statements have ten prepafed under the historical cost convention. Income All ino)rnè i8 racognised in the Statement of FinanL¥al Acliv.es onf the charty has entitlement to the fur¥Js, f(15 probable that the in(x)me will b8 receN8d and the amount can be measured liablY. Expendiknre Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation commitb.ng Ihe chanty to that expendrture, it is probable that a Iransfef of economic benefits will t required in settlement and the amount of the obligats'on can be measured reliabty. Experrture is aoUnted for on an ac£ruals basis and has dassified under headings that aggregate all cost related to the category. Where costs cannot be directly 8ttribuled lo parti¢xJlar heathings they have been allocgtgd to ad1V¢S on a basis ¢on$istenl with the use ol resourrE5. Allocation and apportionment of costs Support costs are attn"but8d on thè basis of Gost incurred and the time spent on foster (S and fundraisiru actiwlies. Tangibh fix•d a$8ets Depreciation 15 proy*Jed al the followin9 annual r81Ès in ordèr to write off each asset over its eslimaled useful life. Fr•8hold propèrty Pianl and mathinery FlureS and ffitting5 Motor vehicles Straight line over 50 years and 5 years 20% on rèduang balanc8 20% on reducing balanc8 25.10 on ¢ing balae Taxation The tharity is exempt froffl c4Jrporation tax on its charitable acINe$. Fund accoun unrestsed funds ¢an be used in accordance vAth the charitable objtrxives al the dlscretion of the trust. Resthcied lunds can only be used for particular restricted purposes within the oty'ects of the ch8rtty. Restrictions arise when s¢Ified by the donof or when fvnds are raised for particular restricted purposes. Further explanation of the nalU and purpose of each fund is induded in th8 notes to fiarla1 stalements. Page 16 continued...

PHOENIX cofdMuNITY CARE LIMITED Notss to the Financial Statemonts- continuod fortho Yèar Ended 31 March 2021 ACCOUNTING POLICIES- ¢ontlnued P•nslon costs and other post-retirèment beneffts The charitable company operates a deffined contribution pension $che. Contributions payable to the haritable companvs pensSon $the arg charg&J to the Statement of Financial Activilies in ihe pfrriod to which they relats. DONATIONS AND LEGACIES 2021 2020 Donatior Gfft aid Giants 116.676 16,235 21.552 140.016 9,325 154.463 149.341 Grants re<we(I, induded in the above, S as follows.. 2021 2020 Other grants 21.552 9,325 INVESTMENT INCOME 2021 2020 Dpp05f( aL¥J)unl intsresl 22 INCOME FROM CHARITABLE ACTMTIES 2021 2020 Actiwty Foster Carelserni-independent Acwmrnodatn & Support Foster CaielSerni-indeperKlenl ALyommcj8t10n & Support Foster Car8lSèrni-independent A¢oomrnc4y)n & Support Foster Car8/Sèmi-independ8nt Accommodath)n & Support Managernent fees 31.000 27.(K)O Reimbursed incc>me Foster carè. servic8 & benefit Training & taaching 39.557 47.300 1.334,706 1.284.614 7I35 21.450 1.413.098 1,380.364 Page 17 tinued...

PHOENIX cofthiuNITY CARE LIMITED Notss to the Financial Statem&nts- continuèd for thè Yèar Endèd 31 March 2021 RAISING FUNDS Raising donalions and18gaci•s 2021 2020 Fund raising expenses 216 CHARITABLE ACTIVITIES COSTS Support costs (see notg n Dtrect Costs Totsls Foster CarwBemi-independent AccornmodatMJn & Support 921,351 696.382 1.617,733 SUPPORT COSTS Management Financ8 Totsls Foster CareJSèmFindependent A¢commod81K)n & Support 391,941 304.441 696.382 INCOMEIIEXPENDITUREI Net Incne/(eXpenditUre) is stated aftèr ¢hargingllcredillngi.' 2021 2020 Depreciation- (ne 8SS8ts IDefi¢rtll$uIu$ on disposal of fixed asseis 12,221 291,102 49,854 11,5891 TRUSTEES. REMUNERATION AND BENEFITS 2021 2020 Trusteès. salaries Trustees, sooal security Tiuslees, pensions paid 93.312 7.693 1.825 68,912 6,930 101830 77,510 T¢La. èxpn8es Ther8 were no trustees, expense5 paid for the year end8(1 31 March 221 for tha year ended 31 March 2020. Page 18 continued...

PHOENIX COMMUNITY CARE LIMITED Notss to the Finan¢ial Ststgments- continued for thè Year Ended 31 March 2021 10. STAFF COSTS 2021 2020 Wages and salaries s31 security costs Other penson costs 305,236 15.183 4.001 216.080 16,779 3,172 324,420 236,031 The average monthty number OfeM0YeeS during the yearwas as follows.. 2021 2020 Administration Fost8r ¢ar9 13 No employees re1ve(l emoluments in excess of £60.000. c(PARATIVEs FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unre51rict&J fund ReStrted nds Total funds INCOME AND ENDOWMENTS FROM Donatims and1gg*igs 140.016 149.341 Charltable acVvFII•s Foslgr CarelSemi-indepen(lenl Acthmmodation & Supwjrt 1,3BO,364 1,380,364 Investm8nt income Other income 22 1,589 1,589 Totsl 1.521,991 9.325 1,531,318 EYPENDITURE ON Raising fvnds 4,942 Charllable actlvlltOS Foster C8rglSèmi-indepÈnd8nt AcKorntnLxJalion & Support 1.250,212 1,255,235 Olher 168.817 168.817 Total 1,423.971 5.023 1,428,994 NET INCOME 98,020 4.302 102,322 Page 19 continued...

PHOENIX COMMUNITY CARE LIMITED Notès to the Financlal Statsn*nts- ¢ontinu8d forthe Year Ended 31 March 2021 11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTlEs- c¢Jntinued Unrestricted Restricted fijnd funds Tot81 fijnds RECONCILIATION OF FUNDS T¢t•l fund¥ broughtfonyard 182.8C6 182,8t6 TOTAL FUNDS CARRIED FORWARD 280.826 4.302 285.128 12. TANGIBLE FIXED ASSETS Fixlures and fittirrfJs Freehold prowrty Plant and machinery Motor yehe8 Totals COST At l April 2020 AdditnS Disp05afs 459,991 12,862 26,8Sg 330 88.983 588,695 330 1467,9481 (459J911 17.9571 At 31 Marth 2021 12.862 27.189 81.026 121,077 DEPRECIATION Al 1 A11 2020 Charge for year Eliminated on disposal 94.088 9.824 608 22.503 937 46,279 10.676 {7.958) 172,694 12,221 1102,0461 194.088} Al 31 Marth 2021 10.432 23A40 48.997 82.869 NET BOOKVALUE At 31 March 2021 2,430 4749 32.029 38,208 At 31 Mar¢h 2020 365,903 3,038 4.356 42,704 416.tx)1 Page 20 ntinued...

PHOENIX COMMUNITY CARE LIMITED Note$ to the Financlal Ststemgnts- ¢ontinu8d for the Ye•r Ended 31 March 2021 1& DEBTORS: APKJUNTS FALLING DUE WITHIN ONE YEAR 2021 2020 Trade debtors Othef debtors PpaYmentS 113.853 1.430 100,680 3.225 8.487 115.283 112,392 14. CREDrroRS.. AMOUNTS FALUNG DUE WITHIN ONE YEAR 2021 2020 Other Foans {see note 161 Hire purchase (see note 171 Trade editOrS sla1 sècunty and othèr taxès Other ¢redilo Accrued expenses 3,740 3,231 7,541 5.000 119,098 19,128 11,967 3.231 9.782 5,774 54,978 22,176 157.738 107.9)8 15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN OME YEAR 2021 2020 Othor loans Iseg nol& 18) Hir8 purchase {sè& notè 171 Trade creditors Other c¥editors 9.119 10.072 5,836 12,858 13,303 9.335 193,49) 25.027 228,986 16. LOANS An analyss ollhe maturity of loans B given belDw". 2021 2020 AnThJunts falling due wilhin one year on demand.. Other loans 3,740 11, Anwunts falling bètsY88n on8 Iwo y8Brs'. Olher loans- 1-2 years 3.541 3,740 Amounts falllng due between and ffive years.. Olher loans- 2-5 years 5.578 9,118 Page 21 continued...

PHOENIX COMMUNITY CARE UMITED Notss to the Finan¢ial Ststements- continued for th• Year End 31 March 2021 17. LEASING AGREEMENTS Minimum 8$e paynwnts under hlre purchase fall due as follows.. 2021 2020 Net obligations repayab.. thin one year Betw one and ffive years 3,231 10,072 3,231 13,S)3 13.303 16.534 18. MOVEMENT IN FUNDS Net movement in funds At 31.3.21 At 1.4.20 Unrnstrictsd fundB G8n8ral fund 280,826 1188,762) 92,1164 Restrlcted funds Sport for Good Turnaini Project 4,302 .1311 517 2,171 517 4.302 11,614 2,688 TOTAL FUNDS 285,128 1190,3761 9{752 N8t nyJvem8nl in ffiJnds. included in Ihe above are as follows.. Inccffling resour$ ResouTce5 expended Movefflent in funds Unrestricted fund$ General fund 1,451.867 11.640,6291 1188.7621 R•stri¢t¢d funds Sport for Good Sure 24 Tumaini Project Bookshinè Romania 6.216 66.682 21.951 700 20,150 18.3471 166.6821 121,4341 17001 120,1501 517 115.699 11,6141 TOTAL FUNDS 1.567,566 11,767,942) 1190.3761 Paga 22 ojnlinued...

PHOENIX COMMUNITY CARE UMITED Notes to the Financial Ststements- continued for the Y•ar Ended 31 March 2021 18. OVEMENT IN FUNDS- contlnuod Comparaliv•s for m0MÈnt Fn funds Nèt movement in fijnds Al 31.3.20 At1.4.19 Unrnstricted funds General fund 182,8(XS 98.020 280.826 Restricted funds Swrt for Go(xJ 4.302 4,302 TOTAL FUNDS 182,8( 102,322 285.128 Comparatlve net movement in fijnds, induded in ihe above aTe as follows.. I1mIng RÈsourtS resourLW expend&J Movement in funds Unrestricted funds General fvNI 1,521.991 (1,423,971) 98.020 R•strkt•d fund Sport for Good (5.023) 4.302 TOTAL FUNDS 1,531.316 (1,428,994) 102,322 A current year 12 mcths and wior year 12 months Mbined posrtion 1$ as follows." Nel movement in fvnds At 31.3.21 At 1.4.19 unrestr1¢t fund$ General fund 182,8( (90,742) 92,(W Rostricted funds Sport for Good Turnaini Pro 2,171 517 2.171 517 2,688 2,688 TOTAL FUNDS 182,8L 188.0541 94.752 Page 23 )nts"n[...

PHOENIX GOhlMUNifi CARE LIMITED Notes to the Financial Strtsments- continuod for the Yèar Endèd 31 March 2021 18. MOVEMENT IN FUNDS- continwl A cuirent year 12 months aThJ prior year 12 months combined net movemenl in ffiJnds, indu(l&J in the above are as folkhv5.' Inccffting resour Resourc8s expended Movement in funds Unrnstrictsd funds neral fvnd 2.973,858 13,064.6(lI {90.742) Restrictsd funds Swrt for Good Sure 24 Tumaini Project Bookshine Romania 1S,541 66,682 21.951 700 20,1S) 113,3701 166,6821 121,4341 17001 (20,1501 2.171 517 125,024 (122,3361 2,688 TOTAL FUNDS 3.098,882 13,186,936} 188.054) 19. RELATED PARTY DISCLOSURES Included in trade and other ¢yedrtors are amourts due tollfroml the followir¥J related parties wlh)se directors and men*Jers are also trustees of Phoenix Cornmunty Carè mIted. 2021 2020 Sunfflower Properbe5 Limited Phni¥ Cominunrty Car& Management LLP New Living Ministries PhoenK Community Care IGRPI LLP 5.976 110,1181 16,447 13.1271 526 7.136 2021 2020 A & P Hawkes C Mayer G Hawkes 92,999 11.6301 12941 199,491 11,3801 12941 Included in trade and other debtr)rs ar8 amounts due Ito}lfrom the following r8lated parties whose directors and member5 are also trustees of Phoenix Communty Care Limited. 2021 2020 Nèw Living Ministries Phoenrx Communty Care IGRPI LLP A&PKel 15201 2,957 Page 24 continued...

PHOENIX COMMUNITY CARE LIMITEO Notss to the Financial Staternents. continued forth• Yar Ended 31 March 2021 19. RELATED PARTY DISCLOSURES - continued During the perK)d nt for propetles was pald lo related parties as follows". 2021 2020 P A Hawkes A&PKelly New VIng Ministii8s Sunflow8r PrOp&eS Lirnited Nll 54.252 14rt00 171,SB4 18.6 ),757 19.2¢J) 156.044 Duriro the period the fd1(ing management ¢J)arges were issued by the follwng relatsd parties.. 2021 2020 PhoeniK Communty Care Management LLP Phoenrrt Cornrnunty Care IGRPI LLP $3,717 60,000 84.984 ring the perwyj the folkywiny manaMent d)arges were issued to Ihe foll¢)wing rdated parties.. 2021 2020 Sunftower Housing Limited Sunflower Properties knmtted 9.000 22.000 9,OC(J 18,000 COVID-19 PANDEMIC The COVID-19 pandemic stsrted prior to Ihe year 8tM1. The staff of the charitable company work8J rernotely for 3 months during the first lod(down. The charitsble company was able tr) ¢ontinue to deliver th8 majority of its setmces r8mot8ly. There has been nD signfficanl irnpact on the ffinants of the charitable company and the trustees have have cnnsJered the balan sheet at the year end 8nd th8y are of the opinion that no 8djusbnents are Quired. 21. MEMBERS LIABILITY The thaiitable company is limrted by guarantee and therefore has no share ¢aKMtal, under the provision of the Companies Act. The liability of eac mernber of Ihe charitable cotnpany is limit lo £1. 31Marth 2021 Ihore were 7 member$12020- 71. Pa 25

PHOENFX C<XIMUNITY CARE LIPIIITED Dgtall6d Statement of F5nancial Activilies forthe Yeor Ended 31 March 2021 2021 2020 INCOME AND ENDOIVMENTS Donotion$ and l•9•¢1gs Donations Gift aKI Grants 116.676 16.235 21.$52 140,016 9,325 14463 149,341 Investment Income Deposit aUnt interest 22 Charitsbl& actlvllles Management fees Reimbursed income Foster care, Servi & tenefft Ttsining & fraching seNices 31.IKIO 39,557 1,334.706 7.835 27.000 47,3CK) 1,284,614 21,450 1A13.098 3.380,364 Other income Gain on sale of tangible fixed assets 1.589 Tolal In¢omlng rn81xiree8 1.567.566 1.531.316 EXPENDITURE tsing don8tion$ 8nd leg•¢ies Fund raS&ng expenses 216 4,942 CharTlabkn activities Wages Social seojrity Pensions Fostsr care payments Chantale events Staff Iraining & wdfare Rent 211,924 7N90 4.1)01 446,601 7.610 3A89 0336 147,168 9,849 3.172 403,573 7,575 4,517 226,LY)1 921,351 801,855 Othor Gifts & donation5 139,993 168,817 This page does not forrn part of th8 Staiulory financaal statements Page 26

PHOENIX COMMUNITY CARE LIMITED DÈtail*d Statement of Financial Aetivltlès forth• Y•ar End 31 March 2021 2021 2020 Supp)rt ¢osts Manag•mènt Trustees. salaries Trusteès. sttial sèrjjrity Truslees. pensions paid Rates and watèr Insuran Light and heat Telephone Postage and Stationery Advèrtising Sundries 93.312 7.693 1.825 2.581 19,669 68.912 6,930 1,668 2,220 10,407 8.208 4.123 1,255 1.154 623 l il Accountancy f88S Audit fres Infomiation & publications Cleaning Entertaining Motor vehide expenses Setvice charges Dues & 8ubscriplion8 Le9al & rxofeSsn8l Office renl Travel & suStance Soare RepaiTs & ma'nlenance 11,624 3,720 12,950 3.720 14 1,072 973 11,517 144,024 7,876 465 7,328 113.717 4,423 324 29.267 2.285 17A20 55,731 5,740 38,804 7,007 14.504 50.073 391.941 401,920 Financ• Bank charges FehOld propety Plant and machinery Fijrtures and fittings Motor vehides Loss on Sale of t8ngible ffixed assets Other irrterest 313 756 32.134 759 1,089 15,872 608 937 10.676 291,102 850 304,441 51,460 Total resour(xs expended 1,757,942 1,428.994 N•t(8xnditurEjfinG0m& 1190,376) 102,322 This page does notlorm part of the statutory finanLyal statsmenls Page 27

PHOENIX COMMUNITY CARE LIMITED

AUDIT SUMMARY

FOR THE YEAR ENDED 31[ST] MARCH 2021

The Trustees Phoenix Community Care Limited Room 41-42 639 Enterprise Centre High Road London, N17 8AA

SFA/A735501

16[th] December 2021

Dear Trustees

In accordance with our normal practice, we have set out in section 1 of this report those matters arising from the audit which we are required to bring to your attention in accordance with International Auditing Standard 260. Section 2 details some emerging issues that are relevant to the Charity. In section 3 of this report, we have set out the Trustees’ representations on which we are placing reliance for the purpose of our audit.

As you will appreciate, our audit procedures are designed primarily to enable us to form an opinion on the accounts as a whole. Our procedures include such tests of the accounting records and internal control systems as are, in our opinion, necessary for audit purposes. Consequently, whilst our procedures may identify certain weaknesses, they should not be relied upon to reveal all systems weaknesses which may exist.

This report has been prepared for your sole use and we assume no responsibility to any other party in respect of its contents. The report should not be disclosed to any third party without our prior written consent.

In conclusion we would like to take this opportunity of expressing our appreciation to all your staff particularly Angela Kelly (Trustee) for her assistance and co-operation during the course of our audit.

If you have any queries on any of the points in this letter, please do not hesitate to contact us.

Yours sincerely,

Knox Cropper LLP

PHOENIX COMMUNITY CARE LIMITED

Section 1 Matters Arising from the Audit Section 2 Emerging issues Section 3 Letter of representation

SECTION 1

PHOENIX COMMUNITY CARE LIMITED

MATTERS ARISING FROM THE AUDIT

General

The purpose of our audit is to gather sufficient evidence to allow us to conclude that the transactions and balances disclosed in the accounts are unlikely to be materially misstated, to establish that disclosures reflected in the accounts comply with the requirements of legislation and relevant accounting standards, to assess whether the accounting policies adopted are appropriate and consistently applied and to assess whether judgements exercised and estimates made in the preparation of the accounts were both prudent and even handed.

Audit Report

We have completed the audit to our satisfaction and intend to issue an unqualified audit opinion on the accounts. The text of the audit report is in accordance with the standard text for unqualified audit reports issued by the Auditing Practices Board.

Accounting Policies and Disclosures

The accounting policies adopted by the Charitable Company are consistent with those adopted in previous years and are appropriate to the Charitable Company’s operations. We also report that adequate consideration was given to the potential impact of changes in legislation and accounting standards which arose during the year. No changes arose during the current year which affected the accounts and therefore the form and content of the accounts are consistent with the preceding year.

Accounting Systems and Internal Controls

Points raised in our management letter last year and current position

Fixed asset register

A fixed asset register is not maintained. This makes it difficult to account for assets accurately. We obtained a list of asset additions for 2017 to 2020 but there was no record of individual assets prior to 2017. From the assets we were able to identify we were able to confirm that the net book value of the assets disclosed in the accounts was materially correct.

Current position

This has not been produced for the 2021 year end and, therefore, the point is still valid for the current year and the recommendation below is still relevant.

Recommendation

A fixed asset register should be produced for the 2022 year end, which contains the individual assets on a line by line basis, the depreciation charged to the individual assets and the NBV of each asset at the start of the year and the end of the year. This will enable disposals of assets to be correctly accounted for because the individual disposal can be entered against the asset held in the register.

Expenditure controls

We saw evidence that some of the expenditure items tested had been approved. There are a number of invoices incurred that are for regular services, which we understand have been approved on the commencement of the contract. However, it is good practice to evidence the approval of all invoices received.

(1)

SECTION 1

Current position

We can confirm that all invoices tested contained evidence of approval.

Payroll controls

During our audit testing we found that the payroll information and changes are sent to the external accountants by Angela. Once processed the payroll is then checked by Angela before it is paid. There does not appear to be a secondary authorisation of the payroll.

Current position

We can confirm that the payroll reports tested contained evidence of approval.

Points from the current year’s audit

Contracts of employment

During our payroll testing we found that there were several contracts of employment that had not been signed by the employee.

Recommendation

A review of the personnel files should be undertaken to ensure that they contain a signed contract of employment for each employee.

Capitalisation policy

As part of our audit work, we check the fixed asset additions to ensure they are valid and should be capitalised. We also check expenditure for any items that have not been capitalised which should have been. During our testing we found that there is no consistency as to when items are capitalised and included in fixed assets. There was a fixed asset addition in fixtures and fittings of £330 but there were 2 computers purchased for £999 and £1,100, which were not included in fixed assets.

Recommendation

A capitalisation policy could be introduced and implemented to ensure there is consistency when deciding what items and amounts should be capitalised and depreciated in the accounts.

Unadjusted Errors

Below is a summary of the unadjusted misstatements identified during our audit work.

Description Deficit per the accounts Missing prepayments – Insurance and CHARMS Deferred income not adjusted Deficit if adjustments were made	£ 190,376 (11,030) 23,483
	202,829

The above misstatements are not material to the accounts and we confirm that no other misstatements were detected during the audit which remain uncorrected in the financial statements other than matters which are both individually and cumulatively clearly trifling.

Professional Ethics and Independence

We confirm our compliance with Ethical Standards issued by the Auditing Practices Board and there are no matters in relation to our audit engagement which we consider should be brought to your attention.

(2)

SECTION 2

EMERGING ISSUES

Charity Governance Code Update

The Charity Governance Code has been refreshed in December 2020. The code, which is endorsed by the charity commission although not compulsory, sets out the seven principles of good governance, with separate versions for small and large charities. The main changes relate to the Diversity principle and to the Integrity principle:

a) The Diversity principle has been renamed the Equality, Diversity and Inclusion principle and there is a greater focus on the Trustees defining the importance of this principle for their charity and then establishing and monitoring targets and publicising progress.
b) The updated Integrity principle emphasises the importance of understanding safeguarding responsibilities and establishing robust procedures including processes whereby concerns can be raised.

Timeline for updating the Charity SORP

The next update of the charity SORP is expected to be published in Autumn 2023, coming into effect for accounting periods beginning on or after 1 January 2024. A new framework for consultation is now in place with the SORP making body and the SORP Committee engaging with stakeholders through the recruitment of volunteer engagement partners representing various strands of the consultation.

(3)

LETTER OF REPRESENTATION

Phoenix Community Care Limited Rooms 41-42 639 Enterprise Centre High Road London, N17 8AA

Messrs. Knox Cropper LLP Chartered Accountants 153-155 London Road Hemel Hempstead HP3 9SQ

Dear Sirs

We confirm, to the best of our knowledge and belief, and having made appropriate enquiries of other trustees and officials of the charitable company, the following representations given to you in connection with your audit of the charity’s financial statements for the year ended 31[st ] March 2021.

1. GENERAL

We acknowledge as directors and trustees our responsibility under the Charities Act for preparing financial statements which give a true and fair view and for making accurate representations to you. We also acknowledge our responsibility for the design and implementation of internal controls to prevent and detect error and fraud.

2. RECORDS

All the accounting records have been made available to you for the purpose of your audit and all the transactions undertaken by the charity have been properly reflected in the accounting records. All other records and related information, including minutes of trustees’ meetings have been made available to you. We confirm that, so far as each trustee is aware, there is no relevant audit information of which you have not been made aware.

3. GOING CONCERN

We believe that the charitable company’s financial statements should be prepared on a going concern basis on the grounds that current and future sources of funding or support has been considered for the next twelve months and working capital will be more than adequate for the charitable company’s needs. We believe that no further disclosures relating to the charitable company’s ability to continue as a going concern need to be made in the financial statements.

4. LAW AND REGULATIONS

We confirm that we are not aware of any possible or actual instance of non-compliance with those laws and regulations which provide a legal framework within which the charitable company conducts its business. The charitable company has complied with all aspects of contractual agreements that could have a material effect on the financial statements in the event of non-compliance. There has been no communication with Regulatory Authorities during the year or subsequently concerning non-compliance with financial and regulatory matters other than those disclosed to us.

(4)

5. LOANS AND ARRANGEMENTS

The charity has not had, nor entered into at any time during the year, any arrangement, transaction or agreement to provide credit facilities (including loans, quasi-loans or credit facilities) for trustees, nor to guarantee or provide security for such matters except as disclosed in the accounts. No remuneration or reimbursement for expenses was paid to the trustees except as disclosed in the financial statements.

6. INTERNAL CONTROLS

There have been no irregularities or allegations thereof involving management or employees who have a significant role in internal control or that could have a material effect on the financial statements.

7. POST-BALANCE SHEET EVENTS

There have been no events since the balance sheet date which necessitate revision of the figures included in the financial statements or inclusion of a note thereto. Should further material events occur, which may necessitate revision of the figures included in the financial statements or inclusion of a note thereto, we will advise you accordingly.

8. CONTINGENT LIABILITIES

We are not aware of any litigation pending at 31[st] March 2021 or other matters giving rise to potential liabilities or guarantees except as disclosed in the financial statements.

9. TRANSACTIONS WITH RELATED PARTIES

We confirm that we have disclosed to you all related party transactions relevant to the Charitable Company and that we are not aware of further related party matters that require disclosure other than those already disclosed in the accounts.

10. FIXED ASSETS

We confirm that the Charity has satisfactory title to all fixed assets disclosed in the accounts and that no provision for impairment is required.

Yours faithfully

______ Signed on behalf of the Board Date:

(5)

2021-03-31-accounts

PHOENIX COMMUNITY CARE LIMITED

SFA/A735501

Dear Trustees

Knox Cropper LLP

MATTERS ARISING FROM THE AUDIT

General

Audit Report

Accounting Policies and Disclosures

Accounting Systems and Internal Controls

Points raised in our management letter last year and current position

Fixed asset register

Current position

Recommendation

Expenditure controls

Current position

Payroll controls

Current position

Points from the current year’s audit

Contracts of employment

Recommendation

Capitalisation policy

Recommendation

Unadjusted Errors

Professional Ethics and Independence

Charity Governance Code Update

Timeline for updating the Charity SORP

LETTER OF REPRESENTATION

1. GENERAL

2. RECORDS

3. GOING CONCERN

4. LAW AND REGULATIONS

5. LOANS AND ARRANGEMENTS

6. INTERNAL CONTROLS

7. POST-BALANCE SHEET EVENTS

8. CONTINGENT LIABILITIES

9. TRANSACTIONS WITH RELATED PARTIES

10. FIXED ASSETS