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2022-12-31-accounts

King's Arms Project TRUSTEES. REPORT & FINANCIAL STATEMENTS For the year ending 31 December 2022 Without the help of King's Arms Project I wouldn t be here now. Thanks to all the support I can now go to bed at night and look forward to waking up in the morning. kingsarmsproject.org

hopeforeveryonealways

CONTENTS PAGE
CHARITY AND COMPANY INFORMATION 3
TRUSTEES’ REPORT 4
INDEPENDENT AUDITOR’S REPORT 21
STATEMENT OF FINANCIAL ACTIVITIES 26
BALANCE SHEET 27
STATEMENT OF CASH 28
NOTES TO THE FINANCIAL STATEMENTS 29

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

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CHARITY AND COMPANY INFORMATION

Trustees/Directors Vanessa Lipski (Chair) Matthew Burge
Nigel Taylor Samantha Roach
Sue Frossell (joined 24/11/22) Simon Cook (joined 24/11/22)
Roydon Loveley (resigned 27/1/22)
Chief Executive Kirstie Cook
Charity number 1139956
Company number 07433621
Registered office 56 Harpur Street
Bedford MK40 2QT
Business address 56 Harpur Street
Bedford MK40 2QT
Website www.kingsarmsproject.org
Statutory Auditor Williamson Morton Thornton LLP
4 Beaconsfield Road
St Albans
Hertfordshire AL1 3RD
Solicitor HCB Park Woodfine LLP
1 Lurke Street
Bedford MK40 3TN
Banker Unity Trust Bank Plc
Nine Brindley Place
Birmingham B1 2HB

King’s Arms Project (Bedford) (KAP) is a charitable company limited by guarantee (Company No. 7433621), incorporated on 9th November 2010, and registered as a charity on 20th January 2011 (Charity No. 1139956).

The company was established under a Memorandum of Association that established the objects and powers of the charitable company and is governed under its Articles of Association. It commenced operating on the 1st March 2011.

Established in 1989, the KAP operated as part of the King’s Arms Trust (Bedford), until its formation in 2011.

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

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TRUSTEES’ REPORT

Introductory Letter from the Chair of Trustees

2022 continued to be a challenging year for King’s Arms Project (Bedford) in relation to the residue that the Pandemic left, e.g., affecting teams and the services they provide for the vulnerable people we serve. King’s Arms Project (Bedford) has continued to deliver their services to the poor and vulnerable offering “hope for everyone, always.” The Government’s ‘Everyone In’ programme to assist rough sleepers through the Covid-19 crisis was hailed as one of the most effective responses to the pandemic. The sector was keen to build on its success to achieve the Government’s target of ending rough sleeping by 2024. A refreshed strategy, Ending Rough Sleeping for Good, was published in September 2022. It focuses on a “four-pronged approach” of prevention, intervention, recovery and ensuring a joined-up transparent approach supported by over £2 billion up to 2025.

Rough sleepers are to be helped stay off the streets for good through a joined-up approach to treating the underlying causes of rough sleeping. This commitment will build on the local partnerships that were developed during the pandemic – providing rough sleepers with a route off the street for good. King’s Arms Project (Bedford) has supported rough sleepers off the streets in Bedford for over 30 years through its Night Shelter and are celebrating that the council are now at last making provision for those who would otherwise be on the streets, making a commitment to never return to the way things were.

This means for King’s Arms Project (Bedford) that we are able to turn our attentions to supporting the complex critical cases, often non-UK Nationals who still struggle to maintain tenancies and to embark on exciting and new innovative schemes; such a modular housing and recovery coaching in order to prevent a return to homelessness and provide a stable path to independence. Excellent outcomes for rough sleepers.

Throughout the year it has been amazing to see the love and practical support provided in very difficult circumstances by the team at King’s Arms Project (Bedford) to the poor and vulnerable in Bedfordshire including the homeless, ex-prisoners, asylum seekers and refugees. As in previous years, the range of the services and support provided continued to increase, driven by the changing landscape, enthusiasm, ideas, and passion of the staff in responding to the many needs and opportunities.

The report provides details of the many and varied activities of the Project and importantly the difference it is making to the local community and beyond. The report gives excellent examples of how the lives of vulnerable individuals have been positively impacted and changed for good.

Vanessa Lipski

Chair of Trustees

Date: 28/9/2023

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

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Introductory Letter from the Chief Executive Officer

Welcome to the Annual report and financial statements for King’s Arms Project (Bedford) (KAP) 2022. This has been a very significant year for us. With some sadness but also a confidence of a job well done we finally closed the doors on our Night Shelter in March as our local council stepped in to provide accommodation for rough sleepers. As we waited to see what was next, we continued to push doors for a new town centre venue from which we could base ourselves and expand our services to meet the changing needs of our community. We finally found the right place in August and in December signed 3 new leases on a set of fabulous neighbouring properties right where we wanted them. At the same time, we were fortunate enough to win a substantial grant from DLUCH which enabled us to fund refurbishment work and kick start a new season for the life of KAP. Our desire to bring isolated, frightened, and displaced people into communities where they feel safe and welcome and where they can put down roots and flourish remains unrelenting. We continue to be part of the solution to help many of those residents who did not have settled status to remain in the UK gain access to benefits and support as well providing more stable, affordable supported accommodation for those ready to move into a house.

2022 has heralded a new season for our outreach team as we decided to step away from the rough sleeper’s initiative contract and fund the work, we do with this client group ourselves. This move has enabled us to focus on the strengths we know we carry as an organisation in terms of speaking out for the most vulnerable and providing community and support for those who need it most. We still enjoy a very positive relationship with the local council and work with them to compliment the services they deliver through commissioned services. We are proud to have completed the only current pilot programme in the UK currently seeking to find a better route for refugees and asylum seekers to gain the appropriate legal status whilst remaining in the community. One of my personal highlights from 2022 was attending the end of year celebration for our Language club where the High Sheriff of Bedfordshire came to present the awards and we had a lively party along with wonderful cuisine from around the world supplied by our service users. I recently stopped to chat to a begging man who described to me the desperate situation in which he found himself, sleeping in a tent, separated from his family with no means to support himself. I pointed him in the direction of KAP and when I saw him again a few weeks later his face lit up as he described the welcome he received and how much more hopeful he feels now that he has options and knows help is at hand. These moments of personal connection and seeing how we impact the lives of others for the good are what motivates me to see KAP go from strength to strength, venturing into the darkest corners of our society to bring restoration, hope, and new life.

I would like to thank all those who give faithfully to the KAP. We are so grateful to individuals, families, and churches for their remarkable generosity and to trusts, foundations and institutional donors for all their continued support. It is an honour to work alongside colleagues who give of themselves on a daily basis to get alongside and help the most traumatised and vulnerable people, often at great personal cost. As well as the personal kindness and acts of generosity we see, we also know prayer is at the heart of all we do, and we are completely dependent on God for everything.

Kirstie Cook

Chief Executive Officer Date: 28/9/2023

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

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About King’s Arms Project (Bedford)

Introduction

The Trustees of the King’s Arms Project (Bedford), (referred hereafter as KAP), who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2022 which are also prepared to meet the requirements for a director’s report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and the Charities Statement of Recommended Practice (“Charities SORP”) (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland; FRS 102) issued in October 2019.

Principle Objectives

The Charity’s objectives for the public benefit are:

‘Public benefit’ is the legal requirement that all charities must have charitable purposes which benefit the public. The Charities Act 2011 underlines this requirement. The trustees of the charity have considered the Charity Commission’s guidance on public benefit and this report seeks to highlight the public benefit provided by the King’s Arms Project (Bedford).

“I felt hopeless, desperate, and helpless - there was no-one to help. At just that time you came, and you held my hand and supported me right till now. The help and support you gave, there are no words to describe it. When I thought about how to pay the solicitor again, I was in despair, but you found a free (legal aid) solicitor for me. But much more important than that was simply your support, advice and help with so many different things. It made so much difference.” Refugee Advice Service Client

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

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Our Vision

Every person thriving in a place they call home, living a fulfilling life in community.

Our Mission

To tackle homelessness, displacement, and isolation by

Strategic Objectives 2021-2026

To Deliver Excellence

  1. Viable and diverse housing

  2. Holistic training and empowerment programmes

  3. An accessible and appropriate operational space(s)

  4. Meaningful involvement of experts by experience to help design and deliver services.

To Value Our People

  1. To develop a growth mindset

  2. To strengthen central office services

  3. To promote wellbeing

  4. To establish a positive leadership culture where ownership, accountability and involvement in decision making is promoted.

To Have Healthy, Robust Finances

  1. To ensure resilience and viability underpin the financial decisions made.

  2. To identify ways to grow, develop and sustain.

  3. To be transparent and accountable

  4. To build and maintain the level of free reserves.

To Have A Positive Impact On Our World

  1. To establish a reputation for strategic thinking and effective influencing of policy at local and national level

  2. Integration of local services and support for vulnerable people

  3. Evidence based social innovation.

  4. Promoting environment sustainable practices

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

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Our Activities

HELP

We offer help to those who are in crisis and at risk of immediate homelessness. We believe that it is a Biblical principle and a humane response to feed the hungry, clothe the naked and welcome the stranger. We do this principally through our night shelter, outreach services on the streets of Bedford and our helpline and advice service for refugees and asylum seekers.

Helpline

The refugees and migrant services team launched a helpline in September 2020 in response to an increasing number of enquiries and requests for help to advise and support vulnerable irregular migrants who are not covered by our contracted services (refused asylum seekers / UASC[1] / visa overstayers) and the professionals assisting them. We offer either one-off advice or short-term casework depending on our team’s capacity and the clients’ needs. In the time this has been running, the service has supported over 130 individuals and families.

1 Unaccompanied Asylum-Seeking Children

Advice Service

Our community engagement pilot funded by the Home Office was completed in July 2022. It provided free legal advice for vulnerable migrants (mainly refused asylum seekers and visa overstayers). We have supported over 75 people from 23 different nations to access free medication, mental health support, hardship money, food, clothing, toiletries, ESOL[2] / education, and social activities. We have also helped a number of people to access social services support due to their high care needs. We are OISC[3 ] registered to provide basic immigration & asylum advice and services to a high standard.

"I can't find the right words to describe the King's Arms Project (Bedford). I consider myself lucky to have met people like them, they have helped me with my immigration status and personal life. They have done a miracle for me, because before this time I had no hope to

get the visa, and that time I was desperate. Since they contacted me, everything has changed in my life. I have to say thank you so much for everything they did. and I consider them as family members now."

Street Outreach

The Outreach team has always been one who through faith and persistence, brings hope to some of the most marginalised and forgotten clients in our community. They work with both clients who have recourse to public funds and those who do not. The team have continued to work out of the Mercure hotel in Bedford, working alongside SMART, Path 2 Recovery, PBIC[4 ] and council housing staff to provide holistic service for our clients. In this period the Outreach team have worked with a large number of EEA[5 ] clients, the majority of whom have No Recourse to Public Funds and a growing number of non-EEA clients. They have supported a significant number of clients moving into hostels, private tenancy and council supported accommodation. This has had a hugely significant impact, particularly on our clients who had No recourse to Public funds, many of whom now have gained ID documents and applied to the EU Settlement scheme. We now fund these posts ourselves giving even greater scope for some of the advocacy work our clients desperately need.

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

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In addition, we have been undertaking early morning outreach on the streets of Bedford, several times a week. This has involved seeking out many of the encampments and areas in the town centre and around the fringes where rough sleepers seek refuge, to engage them and provide support. Many of those clients have complex needs and some have serious substance misuse issues. Often this work requires long term commitment and perseverance with cases, and we are fortunate to have expertise within the wider KAP team on providing immigration support, employment support and trauma recovery coaching where appropriate.

Night Shelter

Our Night shelter has run for nearly 30 years as a direct access service, 365 days a year. It has provided 18 bed spaces from 7pm until 9am on a first come first serve basis. As well as a bed to sleep in, the shelter has been a place where rough sleepers, often the most vulnerable on our streets, can get warm food, clean clothes, good advice and feel safe. Due to Covid we had to repurpose this service virtually overnight to become a 24 hour a day hostel, no direct access and only 6 clients at a time. This required a tremendous amount of work and changes for the staff who adjusted admirably. We adapted again over the winter months to provide 2 direct access beds every night for severe weather conditions. Following the ‘Everyone in’ policy Bedford Borough Council have provided 40 bedspaces in their own accommodation for rough sleepers which is a monumental change and huge step up in provision for those who would otherwise be on the streets. In light of this change and the fact that nationally there is no appetite to return to dormitory style night shelters we made the decision this year to close our Night Shelter on March 31st, 2022. This is a huge change for KAP as The Shelter was the flagship of the charity for many years. However, we are celebrating that there are no longer people queuing down the street every night needing somewhere to sleep and that our aim of seeing rough sleeping coming to an end in our town is being realised. We are excited for the opportunity to press into new ways to tackle homelessness prevention and how we can support existing services across the borough.

[2] English as a second language

3 Office of the Immigration Commissioner

4 Polish British Integration Centre

5 European Economic Area

HOMES

Housing is an issue of social justice and equality. The report by the independent Commission on Housing, Church and Community lays out a positive vision for housing, centred on five core values, which are rooted in the Christian story but resonate with us all: good housing should be sustainable, safe, stable, sociable, and satisfying. We aim to provide accommodation that fulfils these five criteria for individuals and families from the UK as well as refugees and asylum seekers. Across our houses we have provided accommodation for people in a variety of different situations.

Move on Housing

Our accommodation support service.

KAP’s Supported Accommodation service offers short-term accommodation, a high level of autonomy and independence, and tenancy support for a wide variety of people who have experienced homelessness and are moving toward independent living. We tailor support towards each resident’s needs and aspirations, offering a holistic approach, ensuring residents have the best opportunity to develop and achieve their aims in an encouraging, progressive environment. We work with people to see them move into their own independent accommodation, gain employment, and to help those who have restricted eligibility to obtain settled status or work-related benefits: a life-changing outcome for all, bringing them out of destitution. We

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

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have won funding for a second year running to the tune of 100k in order to be able to provide bed spaces for those with no access to public funds including refused asylum seekers.

Resettlement And Integration Support

Specialist support for vulnerable families.

We provide holistic casework support to predominantly Syrian and Afghan families resettled by the UNHCR / UK government in Central Bedfordshire to over 20 families. The support includes preparing accommodation for their arrival in the UK, meeting them at the airport, then on-going, tailor-made support from a dedicated caseworker. In 2022 we began providing casework support to over 25 resettled families in our borough. Across both Central Bedfordshire and Bedford Borough, the support provided assists families to adjust to life in this country, learn the language and navigate education, employment, and medical needs.

OPPORTUNITIES

ESOL

KAP ESOL was established in 2017 and now runs 5 days per week and includes:

Our English Language Programme is designed to help learners to integrate better into the local community by developing their language skills. We provide a positive and encouraging learning environment.

Learners are taught by Level 5 qualified and ESOL tutors with specialist knowledge of the issues refugees and migrants face.

We also offer an on-site crèche for the young children of our learners. This enables parents to concentrate on their learning without the distraction of managing young children. Our crèche team leader has many years of experience of successfully running childcare and children’s activities with disadvantaged families in Sudan, Lebanon, Finland, and the UK.

Emphasis on Integration

Lessons are planned to help learners to live independently by developing functional language skills for reallife situations like, accessing transport, shopping, healthcare, and customer services. Our teaching programme incorporates topics related to integrating into UK society such as making appointments, going shopping, using public transport, and accessing healthcare.

Differentiated Learning

At times some learners cannot regularly attend classes because of poor health, learning difficulties or caring responsibilities. We provide these learners with access to 1-2-1 learning so that they can continue to learn English as a tool for independence and integration.

Blended Learning

We offer online teaching as well as classroom lessons. We regularly review this mix of learning and aim to provide the best combination of learning possible.

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

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"’Finding a job made me feel happy because I want to depend on myself for income and to be a good example for my children as they are growing up. Working rather than relying on state aid gives me and my family more stability and is helping me to feel more integrated and hopeful for a better life."

Pathways Community

This area of project is evolving into a strong community, providing a place for those experiencing multiple disadvantages (recovering from homelessness, isolation, mental health difficulties or substance misuse) to belong, gain self-confidence and rediscover their value as they have the opportunity to participate in a wide variety of courses and experiences offered.

Pathways Community have started to want to give back out of their skills and experience. This is evidence of increased confidence and an awareness of how the community is enriched by who they are. There have been a number of clients securing voluntary and paid employment posts following help through the job club and with ongoing support from the Pathways Employment Advisor. We are partnering with local businesses to facilitate positive voluntary and paid opportunities, with person-centred support and advocacy to bring about positive outcomes for all.

It is enriching our service and challenges Pathways to continue to see people as resources, not recipients. Pathways Team provides holistic opportunities for the community of learners with co-production integral to our strategy. It was a joy to eat a Christmas dinner this year prepared by our pathways community for other service users across KAP.

Pathways Courses and Opportunity

Pathways includes training in budgeting, tenancy retention, goal setting, job related skills, opportunities for social interaction, weekly fitness class, cooking, employment support for paid or voluntary roles. The course content and activities are organic in nature, with the emphasis on what each group or individual identifies as their priority or need. We are committed to having a strength-based approach that acknowledges and celebrates the wealth of experience in the room and we come together to learn from each other as a community. The Employment Programme has been supporting a Pathways community member in a part time cleaning role at the town centre training rooms and the previous Employment Programme employee is now a Recovery Coach with the Pathways team, on a permanent contract. We hope to be able to continue to provide employment opportunities to those with lived experience. We have started a coffee and connect as a soft entry into courses where people can come just for a cup of tea and to play games and this has proved to be very popular. We are also running a language cafe for those who don’t have English as their first language and are not yet ready to access formal ESOL lessons.

FUNDRAISING

The fundraising strategy for KAP is designed and delivered by a team with the approval of the Senior Leadership Team (SLT) and trustees. In order to respond to the changing nature of fundraising in the current economic climate and the digital world in which we now live, we have diversified our income streams and harnessed new ways to increase opportunities for people and organisations to partner with us financially.

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

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We have employed a fundraising officer to work alongside our fundraising manager this year as well outsource some bid writing to charity fundraising in an effort to increase the volume of the trusts and grants we can apply for given the increased need for income as we expand.

KAP seeks to raise funds from Regular and Major Donors, Churches, Schools, Corporate and Community Fundraising. A significant portion of our income is also raised through trusts and grants. We have also adopted The Enthuse Platform as an online way of people being able to connect with us to run their own fundraising events or support someone else’s. We are signed up for ‘Easyfundraising’ and investigating ‘RoundUp’ as other digital tools through which regular donations can be easily made.

KAP adheres to legal principles underpinning fundraising and takes all reasonable steps to treat a donor fairly, enabling them to make an informed decision about any donation. We do not engage in fundraising which is an unreasonable intrusion on a person’s privacy or forces anyone to donate.

THE FUTURE

Despite the uncertainty facing the charity sector at this time, KAP remains committed and focused on delivering our core mission to tackle homelessness and its causes, show the love of Jesus to the broken and lost, provide opportunity for change, and draw people out of isolation into a meaningful community. Our plans for the future include actions to mitigate against the unknown as well as building on what we know are our strengths, setting us apart to be creative, caring, and professional in all that we do.

Income

Given the current financial pressures we know we need to future proof our income. We are doing this in a number of ways:

Training

We are dealing with increasingly complex cases and are very mindful of issues for our staff around vicarious trauma, the need to navigate mental health issues, addictions, managing conflict, accurately and safely recording information, diversity awareness and inter-agency knowledge. Therefore, this year we are continuing to:

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

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Services

There are many areas of need across our town and beyond that we are aware of. We are focussing our attention on the things we know we do best; working with and valuing the individual to bring about longlasting change with compassion and professionalism. There is a particular problem in Bedford with the number of rough sleepers and those in temporary accommodation, therefore we are seeking new ways to break the cycle and help people find and keep a home. To this end we are:

Trustees, Governance and Management

The Trustees/Directors of KAP are as follows:

The Trustees are also directors of the company. New Trustees are appointed with the approval of the other Trustees and in accordance with the Memorandum and Articles of Association. Without exception, new Trustees are already familiar with the work of KAP. Prior to their appointment, new Trustees will meet with the Chair of the Trustees to review:

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

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Trustees’ Responsibilities Statement

The Trustees (who are also directors of KAP for the purposes of company law) are responsible for preparing the Trustees’ Annual 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 year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

There is no relevant audit information of which the charitable company’s auditor is unaware; and the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. The Trustees met four times during 2022 and were regularly consulted and informed on matters of importance. In the year ending 31st December 2022 the Trustees had insurance cover up to the sum of £1 million. Trustees’ insurance is now part of our general insurance policy.

Management Team

The day-to-day running of KAP is delegated by the Trustees to a Management Team composed of the Chief Executive Officer, Directors (not Trustees) and Managers.

SENIOR MANAGEMENT TEAM (SMT). This consists of the CEO, the Director of Services and the Head of Operations. This team meets regularly to assess the overall health and direction of the charity. The Strategic Leadership Team (SLT) is made up of the SMT plus the Accommodation Manager, the Refugee and Migrant Services Manager and the Fundraising Manager. This setting creates space for key leaders across the organisation to explore opportunities, exchange information and make strategic decisions.

STAKEHOLDER ENGAGEMENT. As well as having Trustees and Managers to oversee KAP we are committed to involving our clients in how we shape and deliver our services. We have a history of employing past service users and currently have 9 people on staff who have experienced homelessness and addiction in our town or who have lived experience of the asylum and immigration systems. We are part of the Bedford Homeless Executive Partnership which is committed to equipping its members in co-production training and encouraging all agencies to embrace these principles.

.

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

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GOVERNANCE. Oversight is provided by the Trustees, principally via their meetings generally held at least three times a year. The Senior Management Team meets once a month to monitor the overall health of the charity. The operations team which consists of the Senior Management Team along with the finance officer and fundraising manager meet once a month to go over the budget, fundraising and performance against contracts.

"Full co-production means sharing power – giving people who use services an equal chance to sit at the table and make decisions about how to run it better. It means building up their confidence and developing their skills so that they can participate fully. It also means involving staff in the process and not just managers and trustees." - Homeless Link, 2018

Policies and Procedures

SAFEGUARDING. At KAP we believe that every individual who accesses our services should be treated with dignity and respect, have their choice respected and not be forced to do anything against their will. KAP is committed to safeguarding all service users, and their children, coming into contact with the organisation, regardless of gender, ethnicity, disability, sexuality, or beliefs. Safeguarding is everyone’s responsibility and all employees who, during the course of their employment, have direct or indirect contact with vulnerable adults or children, or who have access to information about them, have a responsibility to safeguard and promote their welfare. Our policy includes but is not limited to safe recruitment, safe environment, safe culture, roles and responsibilities, procedures, duty to report and confidentiality.

GDPR. Our Head of Operations works closely with our HR and IT consultants to ensure that all our staff are trained and regularly updated on good practice with respect to GDPR. Given the vulnerability of our clients, the sensitive nature of much of the information we hold and the increase in remote working we have taken extra steps to ensure that all IT equipment is secure. This is reviewed by the SLT on a regular basis.

EQUAL OPPORTUNITIES. Our services are provided to all people, regardless of religion, race, ethnicity, gender, or sexual orientation. Our assistance and our programmes are offered to all with no conditions attached. We do not discriminate against anyone, whether clients or staff. KAP is a Christian organisation committed to fulfilling its mission and ethos in accordance with the values of its Christian faith. Accordingly, as a Christian organisation, there are posts which we believe can only be filled by Christians. These roles are kept under regular review. The nature of these posts or the context in which they are carried out and their link to the organisation’s ‘Statement of belief’ give rise to a Genuine Occupational Requirement (GOR) for the postholders to be Christian. All employees in these posts are required to demonstrate a clear, personal commitment to the Christian faith.

HEALTH AND SAFETY. KAP recognises and accepts its legal obligations under the Health and Safety at Work Act 1974 and all applicable regulations made under it to ensure, as far as is reasonably practical, the health and safety and welfare at work of all its employees, persons in training, directors, contractors, temporary workers and volunteers (“Employees”) and the health and safety of service users, visitors and other persons who attend or use its premises. In accordance with its legal obligations, the Employer has carried out a risk assessment of its activities, equipment, facilities, building and all other related arrangements where matters of health and safety may be involved.

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

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FAMILY FRIENDLY. KAP aims to be a family friendly employer. We have policies to support this including but not limited to part time working, working from home, maternity/paternity leave, flexible emergency leave and carers leave.

REMUNERATION POLICY. The pay policy for all staff is reviewed annually and new posts are benchmarked against pay levels in equivalent posts in other organisations and external benchmark data. In addition to salary, we also offer a generous Employer Contribution Pension Scheme, Death In-Service Insurance, up to 33 days’ annual leave per year, an employee benefits platform, including Cycle to Work, discounted social activities and an Employee Assistance Programme.

Financial Overview

The accounts are prepared for 12 months of operations. A summary of the income and expenditure (£K) for 2022 and 2021 is shown below:

2022 2021
Income 1,763.4 1,826.8
Expenditure 1,635.6 1,749.6
Surplus/Deficit 127.8 77.2

Income totalled £1,763.4k in 2022, a decrease of 3.5% compared with 2021. During 2022 there was a surplus of £127.8k compared with a surplus of £77.2k in 2021.

Reserves

The policy on reserves, agreed by the Trustees, is that the appropriate level of unrestricted (including designated) reserves should be based on a proportion of our regular costs as follows:

Using the above criteria, a detailed review has estimated that reserves for 2022 should be at least £280K. The current unrestricted (including designated) reserves are £276.7K, just below the amount specified by the policy and this will continue to be monitored during 2023.

Total reserves at the end of the year were £448.1K, £276.7K being unrestricted reserves as noted above. The remaining balance of £171.4K were restricted reserves made up of the following funds: -

Trustees’ Report and Financial Statements 2022

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It is anticipated that the balance of £171.4K restricted funds held at the end of the year will be used on the respective activities, as noted above, in the year 2023.

Investment Policy

Reserve funds are invested such that the total in any one bank/building society is less than the £85K guarantee limit provided by the Financial Services Compensation Scheme (FSCS). In order to stay below the limit three savings accounts, with Virgin Money Plc, Co-Operative Bank and Shawbrook Bank Ltd, are utilised. In the current uncertain financial climate and with interest rates being very low, priority is being given to protecting the reserves under FSCS rather than seeking to maximise interest.

Risk Management

The major risks as recognized by the Trustees are detailed below.

Nature of Risk Risk Level Mitigation
GOVERNANCE
Well-being CEO/leadership
team		 Low Access to support through HR, broadening of
responsibilities across team, good pastoral, and
well-being support
Inadequate reserves Medium Diversity of income streams to increase revenue.
Fundraising strategy in place to maximise
opportunities. Outsourcing bids and trusts to
consultants. New accounting system in place to help
manage daily progress more efficiently.
Size and skill set on Trustee
board		 Low Recruited new trustees in the last 12 months.
Becoming an RP will require a housing specialist
which we will recruit for this year.
Staff recruitment/retainment Low Improved recruitment process. Increased access to
staff benefits. Building a culture of value, motivation,
and purpose.
Mission Drift Low Strategic objectives for next 5 years complete and
monthly check on these in SLT
EXTERNAL RISKS
Cyber-attacks – hacking,
email interceptions etc		 Low New contract with IT consultants has ensured all
systems and equipment are fully protected with
antivirus, firewalls, and insurance. Moved to Microsoft
365 to increase security.
Loss of Office space due to
fire/flood or notice on lease		 Low People can work from home, good relationship with
landlords. All properties protected with fire systems.

Trustees’ Report and Financial Statements 2022 Company no. 07433621. Charity no. 1139956.

17

Loss of Office Server/Client
info		 Low All info backed up, also stored on InForm
Pandemic No longer in
one		 Everyone has been offered vaccines. PPE and
screens stored if ever needed again.
COMPLIANCE WITH LAW AND REGULATION
Accused of discrimination
and prejudice in the local
and national media due to
acts of past or present staff		 Low Adhere to equality act and equality policies. Have
prepared a robust response to GOR.
Accused of discrimination Low Adhere to equality act and equality policies. Have
prepared a robust response to GOR.
Employee accusing
discrimination		 Low Adhere to equality act and equality policies. Have
prepared a robust response to GOR.
OPERATIONAL RISKS
Loss of housing provision due
to extreme circumstances
such as fire or flood.		 Low Ensuring all properties up to safety standards to
protect against damage and accidents. On-going
relationship with other housing providers.
Change or Leadership Low Well established team with broadening and
transparent procedures- operational procedures
well documented so others across the team could
pick up and work with.
Client/staff member
seriously injured/killed		 Low Health and safety training/policies in place, access
to HR if support needed
Competition in the market for
our client group		 Medium Moving into new areas of housing provision such as
modular housing. Seeking to upskill staff in order to
work with more complex needs. Looking for funding
for restricted eligibility clients.

Achievements and Performance

Despite the challenges of 2022 the King’s Arms Project (Bedford) finished in a stronger financial position than we were in at the beginning of the year. Our expenditure was less than budgeted and we were able to put some money into reserves. Going into 2023 we have a balanced budget.

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

18

In 2022 we were able to work with and support:

Service 2022 Achievement
Helpline 58 individuals
Advice Service 50 individuals
Street Outreach 355 individuals
Supported Accommodation 57 individuals
Resettlement and Integration Support 223 individuals
ESOL 169 individuals (of which 58 were children)
Pathways 40 individuals

Our income is from a diversity of sources. We have contracts with the Bedford Borough Council and Central Beds local council which in total accounts for the on-going employment and salary costs for 16 of the current staff team. We also have funding from the East of England Government Agency and AMIF which has provided the income for a further 2 staff members. 7 of our team are covered through housing benefits. The remaining posts have to be covered through fundraising, trusts and grants.

We have been working with consultants for Marketing and Grant writing to increase our profile and income and continue to do this moving forward as we feel this gives us maximum flexibility to respond to our needs. We are developing new ways to increase community involvement with KAP as well focusing in house on growing our regular donor base as a way of providing as much forecastable income as possible. We have moved into our own premises in the town centre as a way of bringing down central office costs, raise our profile, give us the opportunity to gain income through room rental and expand our services.

We have negotiated an increase in our housing benefit rates and are seeking to become a registered provider although this is a long process which will increase the opportunities for us to provide further bed spaces across the borough. We have been able to claim housing benefit for up to 37 bed spaces at any one time through our move on housing which provides a significant and consistent portion of our income, including the staff costs of 7 employees.

With increasing numbers of people at risk of returning to homelessness following the ‘Everyone In’ initiative our services continue to be in high demand as we focus efforts on prevention through supported housing and our Pathways programme which is growing in impact and continues to draw attention from funders. Our work with refugees and asylum seekers and support for those with no access to public funds is increasing in line with our policy to find a dignified solution for these individuals.

Given the diversity of our income streams, the increasing demand for our services and our growing reputation for excellence with local and national partners and funders we feel that we are in a strong position to continue to deliver and expand our services.

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

19

Auditor

The auditor, WMT who have signified their willingness to act on KAP’s behalf, were appointed to KAP by the Trustees on 22nd March 2023.

Statement of Disclosure of Information to Auditor

We, the directors of the company who held office at the date of approval of these Financial Statements, as set out above, each confirm so far as we are aware, that: there is no relevant audit information of which the company’s auditors are unaware; and we have taken all the steps that we ought to have taken as directors in order to make ourselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.

The Trustees have prepared this report in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small entities.

Approved by the Trustees on and signed on their behalf:

Vanessa Lipski Chair of Trustees

Date 28/09/2023

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF KING’S ARMS PROJECT (BEDFORD)

Opinion

We have audited the financial statements of King’s Arms Project (Bedford) (the ‘charitable company’) for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern.

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

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

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

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

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Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act

2006

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

Matters on which we are required to report by exception.

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

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

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

22

Responsibilities of Trustees

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

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

Auditor’s responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

Discussions with and enquires of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Based on our understanding of King’s Arms Project (Bedford) and its activities, the following laws and regulations were identified as being of significance to the entity:

Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to: inquiries of management and the Trustees as to whether the entity complies with such laws and regulations; inquiries with the same concerning any actual or potential litigation or

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

23

claims; inspection of relevant legal correspondence; review of Trustee meeting minutes; testing the appropriateness of journal entries and; the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

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Use of the audit report

This report is made solely to the charitable company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’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 charitable company and the charitable company’s members as a body for our audit work, for this report, or for the opinions we have formed.

Elizabeth Wicks

Senior Statutory Auditor

For and on behalf of WMT

Chartered Accountants and Registered Auditors

4 Beaconsfield Road St Albans Hertfordshire AL1 3RD

Date: 28/9/2023

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

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COMPANY NO. 07433621

FINANCIAL STATEMENTS 2021

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT

Income
Notes
Income from generated funds
Voluntary income
Donations and legacies
Other income/fundraising
Investment income
Income from charitable activities
Rent & Housing Benefit
Supporting People/Rough Sleeper
Outreach
No Recourse Accommodation
Refugee Support
Opportunity
Grants
Total Income
2
Expenditure
Cost of raising funds
Charitable activities
Core Operations
Outreach
Accommodation
Refugee Support
Opportunity
Total Expenditure
3
Net movement in funds
5
Balance brought forward
5
Transfers between funds
5
Balances carried forward
5 & 10		 Unrestricted
funds year
ended
31/12/22
Designated
funds year
ended
31/12/22
Restricted
funds year
ended
31/12/22
Total funds
year ended
31/12/22
Total funds
year ended
31/12/21
£
£
£
£
£
149,296
10,781
1,642
161,719
127,509
7,017
-
-
7,017
10,972
879
-
-
879
142
-
333,256
5,460
338,716
395,044
-
111,212
-
111,212
387,715
-
59,915
-
59,915
22,770
-
750,164
-
750,164
630,998
-
17,864
-
17,864
36,264
22,750
-
293,146
315,896
215,414
179,942
1,283,192
300,248
1,763,382
1,826,828
63,042
-
-
63,042
53,282
-
-
4,089
4,089
-
-
147,893
89,942
237,835
564,936
-
493,974
30,317
524,291
373,256
-
687,580
18,746
706,326
643,652
-
39,109
60,883
99,992
114,515
63,042
1,368,556
203,977
1,635,575
1,749,641
116,900
(85,364)
96,271
127,807
77,187
150,308
20,000
150,004
320,312
243,125
9,511
65,364
(74,875)
-
-
276,719
-
171,400
448,119
320,312

The charity’s incoming resources and resources expended all relate to continuing operations. The charity has no recognised gains or losses other than those included above. The notes on pages 29 to 39 form part of these accounts.

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

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BALANCE SHEET AS AT 31 DECEMBER 2022

COMPANY NO. 07433621

Notes
Property, plant and equipment
Tangible assets
6
Current assets
Debtors
7
Short term deposits
8
Cash and cash equivalents
8
Total current assets
Creditors falling due within one year
9
Net current assets
Net assets
Funds
5 & 10
Unrestricted funds
Designated funds
Restricted funds
Total funds		 2022
£
51,873
114,967
-
456,759
571,726
(175,480)
396,246
448,119

276,719
-
171,400
448,119		 2021
£
44,539
163,360
23,983
278,808
466,151
(190,378)
275,773
320,312
150,308
20,000
150,004
320,312

The notes on pages 29 to 39 form part of these accounts.

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small charitable companies.

The financial statements were approved and authorised for issue by the Trustees on 28/09/2023 and signed on their behalf.

V. Lipski M. Burge (FCA) Trustee Trustee

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

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STATEMENT OF CASH FLOWS AT 31 DECEMBER 2022

Cash flows from operating activities:
Net movement in funds
Depreciation
Interest received
Decrease in trade and other receivables
Decrease / (increase) in short term investments
(Decrease) / increase in trade and other payables
Net cash inflow from operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Interest received
Net cash outflow from investing activities
Net increase in cash and cash equivalents
Opening cash and cash equivalents
Net increase in cash and cash equivalents
Closing cash and cash equivalents		 2022
£
2021
£
127,807
77,187
30,950
24,415
(879)
(142)
48,393
61,700
23,983
(31)
(14,898)
38,795
215,356
201,924
(38,284)
(35,691)
879
142
(37,405)
(35,549)
177,951
166,375
278,808
112,433
177,951
166,375
456,759
278,808

The notes on pages 29 to 39 form part of these accounts.

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

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NOTES TO THE FINANCIAL STATEMENTS Accounting policies

1.1 General information

King’s Arms Project (Bedford) is a charitable company limited by guarantee (Company No. 7433621), registered in England and Wales, and has no share capital. It was incorporated on 9th November 2010, and registered as a charity on 20th January 2011 (Charity No. 1139956). In the event of the charity being wound up, the liability in respect of the guarantees is limited to £10 per member of the charity. The address of its registered office and principal place of business is disclosed in the company information on page 3 of this Annual Report.

King’s Arms Project (Bedford) is a public benefit entity as defined by FRS 102. The nature of the charity’s operations and principal activities are to relieve financial hardship particularly but not exclusively among the homeless or those at risk of homelessness and to promote and preserve good health, and to advance the Christian faith.

1.2 Accounting convention and basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Charities Act 2011, the Companies Act 2006. and UK Generally Accepted Accounting Practice.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

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

1.3 Income

Any income received is credited to the relevant fund. The following policies are applied to particular categories of income: -

Donations and Gift Aid - Income receivable by way of donations is included in the Statement of Financial Activities when receivable. Tax credits (gift-aid) are included in the financial statements on an accruals basis as recommended by the Statement of Recommended Practice. This means that tax credits are taken into account in the period in which the originating donation was made.

Legacies - are recognised when receipt is probable, and the amount can be reliably measured.

Investment Income - is included in the Statement of Financial Activities when receivable.

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

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Income from charitable activities - incoming resources from charitable activities are accounted for when earned.

Grant Income - incoming resources from grants, where related to performance and specific deliverables, are accounted for as the charity earns the right to consideration by its performance. Grants, where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.

1.4 Voluntary assistance and donated goods

Volunteers are key to the success of KAP and during 2022 there were over 15 (2021: 46) volunteers giving approximately 1,100 hours of service in 2022 (2021: 1,000). Volunteers provided assistance to KAP including befriending refugees, assisting in ESOL classes and our Language Club as well as Pathways courses. Donated goods include food, clothes, and consumables for the homeless. Voluntary assistance and donated goods are not recognised in the financial statements as the amount cannot be measured accurately.

1.5 Allocation of costs

Costs are allocated directly to funds whenever applicable. Staff costs, and internal indirect costs, are allocated on a proportional basis between funds where services are provided from within the organisation.

1.6 Pension costs

The pension costs charged in the financial statements represent the contributions payable by the charitable company during the year.

1.7 Redundancy and termination payments

Redundancy and termination costs are recognised as an expense in the Statement of Financial Activities and a liability on the Balance Sheet immediately at the point the charitable company is demonstrably committed to either: terminate the employment of an employee or group of employees before normal retirement date; or provide termination benefits as a result of an offer made in order to encourage voluntary redundancy.

1.8 Operating leases

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

1.9 Tangible fixed assets and depreciation

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

Fixtures and fittings 20%-33% straight line Leasehold improvements over the period of the lease Motor vehicles 20% straight line

Tangible assets above £500 are capitalised.

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

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1.10 Financial Instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction values and subsequently measured at their settlement value.

Debtors: Debtors are recognised on the accrual’s basis at the settlement amount due. Prepayments are valued at the amount prepaid and accrued income is valued at the best estimate of expected receipts.

Cash and cash equivalents: Cash at bank and in hand includes cash and short term highly liquid investment with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors: Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount.

1.11 Unrestricted, designated, and restricted funds

Unrestricted funds are funds given for the general purposes of the charitable company and these funds may be expended on the objects of the charitable company at the discretion of the Trustees.

Designated funds are unrestricted funds set aside for a purpose as determined by the Trustees.

Restricted funds are those funds that have been given for a specific purpose and they must only be expended on that purpose.

There is an overarching fund for KAP administration. This fund receives donations for general expenditure on any aspect of the work of the Charity. Within these criteria, the Trustees have discretion as to which designated fund the funds will be applied to.

1.12 Judgments in applying accounting policies and key sources of estimation uncertainty.

In applying the company's accounting policies, the Trustees are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The trustee’s judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made and are based on historical experience and other factors that are considered to be applicable. Due to inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods. The key area of judgement in the accounts relates to voluntary assistance and donated goods - refer to note 1.4.

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

31

2 Total Income.

Unrestricted Income
Designated Income
OUTREACH
Rough Sleeper
Outreach Service
Nightshelter
ACCOMMODATION
REFUGEE AND MIGRANT
SERVICES
OPPORTUNITY
Total Designated
Income
Restricted Income
CORE OPERATIONS
OUTREACH
Rough Sleeper
Outreach Service
Nightshelter
ACCOMODATION
REFUGEE SUPPORT
Refugee and Migrant
Services
Refugee Care Fund
OPPORTUNITY
Total Restricted
Income
Total Income		 Donation &
Legacies
Fundraising
Investment
Income
Rent &
Housing
Benefit
Supporting
People
Services
Income
Grants
Year ending
31.12.2022
Total
Year ending
31.12.2021
Total
£
£
£
£
£
£
£
£
£
149,296
7,017
879
-
-
-
22,750
179,942
120,684
-
-
-
2,123
101,938
-
-
104,061
123,945
-
-
-
-
9,274
-
-
9,274
338,722
10,000
-
-
313,780
-
59,915
-
383,695
328,402
781
-
-
17,353
-
750,164
-
768,298
630,629
-
-
-
-
-
17,864
-
17,864
38,221
10,781
-
-
333,256
111,212
827,943
-
1,283,192
1,459,919
-
-
-
-
-
-
4,089
4,089
-
-
-
-
-
-
-
141,651
141,651
29,847
-
-
-
-
-
-
-
-
43,277
-
-
-
-
-
-
86,024
86,024
32,355
-
-
-
-
-
-
-
-
14,973
1,642
-
-
5,460
-
-
499
7,601
33,971
-
-
-
-
-
-
60,883
60,883
91,802
1,642
-
-
5,460
-
-
293,146
300,248
246,225
161,719
7,017
879
338,716
111,212
827,943
315,896
1,763,382
1,826,828

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

32

3 Total Expenditure

Fundraising & Publicity
Designated Expenses
OUTREACH
Rough Sleepers Outreach Service
Nightshelter
ACCOMMODATION
REFUGEE AND MIGRANT SERVICES
OPPORTUNITY
Total Designated Expenses
Restricted Expenses
CORE OPERATIONS
OUTREACH
Rough Sleepers Outreach Service
Nightshelter
ACCOMMODATION
REFUGEE SUPPORT
Refugee and Migrant Services
Refugee Care Fund
OPPORTUNITY
Total Restricted Expenses
Total Charitable Expenditure		 Staff Costs
Direct
Costs
Indirect
Costs
Depreciation
Year ending
31.12.2022
Total
Year ending
31.12.2021
Total
£
£
£
£
£
£
52,854
10,188
-
-
63,042
53,282
75,314
26,076
20,279
14,781
136,450
78,666
4,635
5,289
1,025
494
11,443
407,352
210,575
226,802
46,962
9,635
493,974
340,901
431,876
189,683
61,590
4,431
687,580
616,233
21,280
7,264
8,956
1,609
39,109
22,713
743,680
455,114
138,812
30,950
1,368,556
1,465,865
4,089
-
-
-
4,089
-
89,942
-
-
-
89,942
35,641
-
-
-
-
-
43,277
30,317
-
-
-
30,317
32,355
-
-
-
-
-
14,973
6,425
12,321
-
-
18,746
12,446
60,883
-
-
-
60,883
91,802
191,656
12,321
-
-
203,977
230,494
988,190
477,623
138,812
30,950
1,635,575
1,749,641

Included in direct costs is auditor’s remuneration of £8,500 (2021: £5,500) plus VAT.

The difference between Staff Costs in the above and Employee Information in Note 4 is £50,835. This is due to staff life insurance; recruitment expenses and agency worker’s charges being included in the above but not in Note 4.

Fundraising and publicity costs relate mainly to staff working to secure grants and funding from a variety of organisations and grant-making trusts as well as organising fundraising events during the year.

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

33

4 Employee information.

mation.
Salaries
Social security costs
Pension
Total		 2022
2021
£
£
815,390
941,450
61,900
64,846
60,065
62,817
937,355
1,069,113

The table below details how many employees are required for each project/service

OPERATIONS
Management & administration
Fundraisers
OUTREACH
Rough Sleeper Outreach
EEA Outreach Worker
Nightshelter
ACCOMMODATION
No Recourse/Move on Housing
OPPORTUNITY
Pathways
REFUGEE SUPPORT
Refugee Support
ESOL
Total Employees
Total Full-Time equivalents (FTE)		 2022
2021
5
6
2
2
3
1
0
2
3
11
7
5
3
5
8
9
8
7
39
48
32.97
42.1

No employee received remuneration of more than £60k in either 2022 or 2021.

Trustee remuneration is in accordance with the Memorandum & Articles of the Trust for services provided to the Trust. Trustee remuneration during the year 2022 was £nil (2021: £nil). Trustee expenses were reimbursed to two (2021: one) Trustees during the year 2022 totalling £571 (2021: £100) being training, entertainment, travel and subsistence costs.

Remuneration of key management personnel for the year ended 31 December 2022 comprising the CEO, Director of Services and Head of Operations totalled £140,601 (2021: £129,532).

Total termination and redundancy costs amount to £25,436 during the year (2021: £5,856). £13,500 (2021: £nil) are included in accruals.

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

34

5 Movement in funds.

Unrestricted Funds
Designated Funds
OUTREACH
Rough Sleeper Outreach Service
Nightshelter
ACCOMMODATION
REFUGEE AND MIGRANT SERVICES
OPPORTUNITY
CAPITAL PROJECT PURCHASE FUND
Total Designated Funds
Restricted Funds
CORE OPERATIONS
OUTREACH
Rough Sleeper Outreach Service
Nightshelter Purchase
ACCOMODATION
REFUGEE SUPPORT
Refugee Care Fund
OPPORTUNITY
Total Restricted Funds
Total movement in funds		 Opening
balance
Income
Expenditure
Transfers
Closing
balance 2022
£
£
£
£
£
150,308
179,942
(63,042)
9,511
276,719
-
104,061
(136,450)
32,389
-
-
9,274
(11,443)
2,169
-
-
383,695
(493,974)
110,279
-
-
768,298
(687,580)
(80,718)
-
-
17,864
(39,109)
21,245
-
20,000
-
-
(20,000)
-
20,000
1,283,192
(1,368,556)
65,364
-
-
4,089
(4,089)
-
-
23,166
141,651
(89,942)
(74,875)
-
90,671
-
-
-
90,671
-
86,024
(30,317)
-
55,707
36,167
7,601
(18,746)
-
25,022
-
60,883
(60,883)
-
-
150,004
300,248
(203,977)
(74,875)
171,400
320,312
1,763,382
(1,635,575)
-
448,119

Restricted funds represent grants or specific donations received for a particular purpose, the balances at the year-end represent the following: -

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

35

During 2021 a restricted gift of £20k towards the Nightshelter purchase was released by the donor to become unrestricted. The Trustees agreed to designate it as a Capital Project Purchase Fund. It was subsequently agreed by the Trustees in 2022 to reallocate this to cover the provision of Outreach Services as the donor had asked for the monies to go towards street homeless.

Designated funds for Outreach, Accommodation, Refugee and Migrant Services, and Opportunity represent funds received to deliver a contracted service.

Transfers from the restricted Rough Sleeper Outreach Service of £74,875 is comprised of two amounts; -

Any deficit in a designated funds is then covered from the unrestricted fund. Any surplus from a designated fund is transferred to unrestricted fund at the year-end leaving all designated funds with a zero balance.

The purpose of the unrestricted fund is to:

6 Property, plant, and equipment.

Cost
As at 1stJanuary 2022
Additions
Disposals
Cost at 31st December 2022
Depreciation
As at 1stJanuary 2022
Charge for the year
Eliminated on disposal
Depreciation at 31st December 2022
Net book value at 31st December 2022
Net book value at 31st December 2021		 Fixtures and
fittings
Leasehold
improvements
Motor
vehicles
Total
£
£
£
£
114,857
28,960
13,720
157,537
9,516
28,768
-
38,284
(23,066)
-
-
(23,066)
101,307
57,728
13,720
172,755
96,260
5,794
10,944
112,998
16,577
12,985
1,388
30,950
(23,066)
-
-
(23,066)
89,771
18,779
12,332
120,882
11,536
38,949
1,388
51,873
18,597
23,166
2,776
44,539

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

36

7 Debtors.

2022 2021
£ £
Trade debtors 30,408 121,720
Accrued income & prepayments 81,982 37,389
Tax credit (gift-aid) 2,577 4,251
Total debtors 114,967 163,360
**8 ** Short term deposits and cash and cash equivalents.
2022 2021
£ £
Accounts over 90 days - 23,983
Bank accounts 456,759 278,808
Total 456,759 302,791
9 Creditors falling due within one year.
2022 2021
£ £
Trade creditors 24,595 24,611
Deferred income 112,812 155,921
Accrued expenses 38,073 9,846
Total creditors 175,480 190,378
Deferred income
At 1stJanuary 155,921 104,694
Grants awarded within the year 112,812 155,921
Released to incoming resources for the year (155,921) (104,694)
At 31st December 112,812 155,921

Income is deferred where income has been received in advance or the recognition criteria have not yet been met.

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

37

10 Net assets held by funds.

Unrestricted Funds
Designated Funds
OUTREACH
Rough Sleeper Outreach Service
Nightshelter
ACCOMMODATION
REFUGEE AND MIGRANT SERVICES
OPPORTUNITY
CAPITAL PROJECT PURCHASE FUND
Total Designated Funds
Restricted Funds
CORE OPERATIONS
OUTREACH
Rough Sleeper Outreach Service
Nightshelter Purchase
ACCOMMODATION
REFUGEE SUPPORT
Refugee Care Fund
Total Restricted Funds
Total Funds		 Property,
plant, and
equipment
Debtors
Bank and
cash
Creditors
Total 2022 Total 2021
£
£
£
£
£
£
5,296
8,208
305,332
(42,117)
276,719
150,308
42,233
-
(42,178)
(55)
-
-
-
398
(338)
(60)
-
-
2,283
20,175
(8,623)
(13,835)
-
-
1,459
86,186
(81,109)
(6,536)
-
-
602
-
(538)
(64)
-
-
-
-
-
-
-
20,000
46,577
106,759
(132,786)
(20,550)
-
20,000
-
-
78,228
(78,228)
-
-
-
-
27,607
(27,607)
-
23,166
-
-
90,671
-
90,671
90,671
-
-
62,684
(6,978)
55,706
-
-
-
25,023
-
25,023
36,167
-
-
284,213
(112,813)
171,400
150,004
51,873
114,967
456,759
(175,480)
448,119
320,312

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

38

11 Financial commitments and contingent liabilities.

At the year end the charitable company was committed to making the following payments under operating leases in the coming year, all of which related to property:

Expiring within one year
Expiring within two to five years
Expiring over five years
Total		 Total 2022
£
Total 2021
£
88,206
126,765
144,999
123,441
4,881
-
238,086
250,206

In January 2023, the charity entered into new lease agreements for 2 properties amounting to £23,450 and £8,000 per annum, for a period of 3 and 5 years respectively.

12 Pension costs.

During the year defined contribution pension costs of £60,065 (2021: £62,817) were paid on behalf of 52 employees (2021: 43) to pension schemes administered independently of the charitable company. There were no pension liabilities outstanding at the year end.

13 Post Balance Sheet Events.

Please refer to the Risk Management section of the Trustees’ Report on pages(s) 17 and 18.

Trustees’ Report and Financial Statements 2022

Company no. 07433621. Charity no. 1139956.

39

King's Arms Project We believe in hope for everyone, always. Tackling Homelessness Isolation Displacement kingsarmsproject.org

hopeforeveryonealways

Company no. 07433621. Charity no.1129956.