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2023-03-31-accounts

Trustees’ Annual Report and Financial Statements for the year ended 31 March 2023

Providence Row

Registered and Principal Office: The Dellow Centre 82 Wentworth Street London E1 7SA

Company number 07452798 Charity number 1140192

E-mail: info@providencerow.org.uk www.providencerow.org.uk

@Providence_Row

@providencerow

/ProvidenceRow

Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

Board of Trustees

Elizabeth Canning (Chair) Bishop Nicholas Hudson Linda McHugh Jonathan Rhodes Richard Solomon (Honorary Treasurer) Paul Strange Anthony Tama

Patron

His Grace the Duke of Norfolk

Honorary Vice Presidents

Fr. Peter Harris Dr Daniel Regan MBE, OStJ, KSG Mr Richard Sermon

Chief Executive Officer & Company Secretary Tom O’Connor

Auditors

Mazars LLP 6 Sutton Plaza Sutton Court Road Sutton Surrey SM1 4FS

Bankers

HSBC Bank plc City of London Branch 60 Queen Victoria Street London EC4N 4TR

Handelsbanken 42 New Broad St London EC2M 1JD

Investment Advisors

Schroder & Co. Limited t/a Cazenove Capital Management 12 Moorgate London EC2R 6DA

Investment Property Managing Agents Savills (incorporating GBR Phoenix Beard) 33 Margaret Street London W1G 0JD

Solicitors

Bates Wells Braithwaite 10 Queen Street Place London EC4R 1BE

Investment Property Legal Advisors Brecher Solicitors 4[th] Floor, 64 North Row Mayfair London W1K 7DA

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Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

Contents

Overview Page
Letter from our Chair 4
Message from our CEO 5
About us 6
Annual Report
Our plans for the future – Building a community of support 7
Achievements and Highlights 8
Our Services 8
Our supporters and funders 10
Structure, governance and management 11
Organisational structure, management and key relationships 12
Financial summary 2022/23 13
Financial Review 14
Principal risks and risk management 15
Review of reserves and reserves policy 16
Trustees’ responsibility statement 17
Independent Auditor’s Report 18
Financial Statements
Statement of financial activities for the year ended 31 March 2023 22
Balance sheet as at 31 March 2023 23
Statement of cash flows 24
Notes to the financial statements 25

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Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

Letter from our Chair

Welcome to the Annual report for Providence Row 2022/2023.

As the impact of the Covid pandemic recedes, so we find ourselves in challenging times with cost of living and inflationary woes, and now a war in Europe. There is significant stress within our communities with again large numbers becoming homeless or at risk of homelessness. It comforts me that Providence Row is still here to continue its mission to help those most in need of our services, although I am sure, like me, you would prefer our mission was not required. We continue to adapt our services to meet the needs that are changing but also remain constant: providing nourishing food; signposting good health outcomes and training services to give hope to those who have given up on finding a sympathetic ear and practical help.

Providence Row continues to invest in Fundraising and of course our Services. We can do nothing without the help and support of our donors. All of the Trustees and staff would like to thank you for all your support and encouragement. Our corporate donors have volunteering days and also provide goods to our organisation. In particular, these donations in kind and volunteering of time make a difference to our running costs ensuring that we can spend our money where it is most needed.

As a Board of Trustees we continue to self assess where we need additional expertise and we are committed to maintaining high standards in our governance. We are happy to commend the accounts to you.

In closing, I would again like to thank all of our supporters and donors; our Patron The Duke of Norfolk, our President HE Cardinal Nichols, all of the staff and volunteers. My fellow Trustees freely provide expertise and time to the organisation, often unseen but without their contribution, Providence Row would not thrive. I cannot end this letter without acknowledging the role of the Sisters of Mercy, who continue to support us financially and through their prayers. Their spirit resides in the organisation and in our values.

At the turn of another year, may I wish you a Happy and Healthy 2024.

Em canning (Jan 29, 2024 18:48 GMT)Em canning Elizabeth Canning Chair of Trustees – January 2024

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Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

Message from our CEO

Dear Friends,

At the end of another challenging year we are hugely grateful to all our supporters, donors and partners.

The cost of living crisis has significantly increased demand for our services, whilst fundraising is more difficult and local government budgets are under pressure. We have seen many more people facing homelessness, often for the first time in their lives.

I am delighted to report that we have continued to support those facing immediate crisis with tailored individual support. We have also accompanied them with services to plan for the future with hope. From our walk-in day centre to our award winning psychotherapy outreach service, from our training schemes to our employability programme, we have sought to honour the values of our founder and the Sisters of Mercy, by walking alongside those most in need and treating them with kindness and profound respect.

Our fundraising programme has continued to generate increased income year on year, and our internal operations have continued to perform well. I am pleased to let you know that we have recorded a modest underlying surplus over the last year.

The year ahead will bring new challenges as the scandal of homelessness continues to grow. Your support will be more important than ever. On behalf of so many who can now see a brighter future and many more who will follow in their footsteps, thank you so much.

TO'Connor

TO'Connor (Jan 29, 2024 18:23 GMT) Tom O’Connor CEO

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Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

ABOUT US

Vision

Everyone has a safe home and a community in which to belong.

Mission

To support and accompany more people who are homeless or at risk of homelessness on their journey to recovery, especially those who are most vulnerable and least likely to access services elsewhere.

To offer a range of services that support people from times of crisis through to when support is no longer needed.

Our values

Why we are needed

In England 271,000 families and individuals experienced homelessness in 2022 , including one in 58 Londoners. 3,570 people were recorded as sleeping rough in London in October and December 2022 *.

The ongoing homelessness crisis is caused by:

*Shelter, Homelessness in England 2022

**GLA Chain reports

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Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

OUR PLANS FOR THE FUTURE – BUILDING COMMUNITIES OF SUPPORT

As a charity our aim is to build communities of support for people experiencing homelessness so that everyone has a safe home and a community in which to belong. Our Strategy sets the following priorities:

Whilst significant progress has been made in achieving these priorities, two major factors have limited progress to date: the impact of COVID-19; and the cost of living crisis. This is why we undertook a revaluation of our strategic framework and launched our new “Building Communities of Support” strategy to consolidate the gains and learnings from the last years. We are now much better placed to deliver on our priorities and expand our services to reach even more people. Alongside our ambitions, we remain cautious given the current economic environment. A high priority up to 2025 will be rigorous financial management, maximising opportunities for full cost recovery, increasing unrestricted income and maintaining a range of income streams.

From 2023, to achieve our strategic objectives we will build on, consolidate and further expand our services in 4 priority areas:

We will also continue to:

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Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

ACHIEVEMENTS AND HIGHLIGHTS FOR THE YEAR

As the world started to come out of the Covid-19 pandemic, we continued to run and develop our essential services and to innovate in the ways that we reach and support people affected by homelessness. We saw a noticeable increase in the demand for our services with both the pandemic and the beginning of a cost of living crisis having a significantly negative impact on the most vulnerable people in our society. More and more clients who never thought they would be affected by homelessness turned to us for help as they were pushed over the edge by unaffordable rents and rising utility costs. The cost of living crisis also meant that the costs of delivering our services increased at a time when we were needed more than ever. Although we had to operate in a difficult environment we managed to support many more clients with complex needs, and to enable them make a positive and lasting impact to their lives.

OUR SERVICES

Resource Centre

An essential part of East London’s local community, our Resource Centre is there to provide anyone who needs it with a safe space and, last year, supported 917 individuals to access washing facilities, phone charging, a postal address, IT facilities and to engage with many other services from our Food Programme, to Progression and Training to our Advice and Support Service.

We’re delighted to have secured Public Health funding for the next year to support these services.

Reset

Our Reset Outreach and Referral Service and Reset Navigator Team helped 916 clients through harm reduction advice and support, and referral into Reset treatment and recovery services. The team has also supported service users to register with GP’s and attend medical appointments.

As part of this lifesaving provision, our Needle Exchange and Harm Reduction service has seen an increase in new people from marginalised communities attending throughout the year, with a total over 169 individuals. We estimate that over 15,000 new and sterile needles were distributed to service users.

Naloxone training and distribution has also increased, with 100’s of kits being sent out to service users and support workers. Naloxone is a vital resource which can be lifesaving in the event of an opiate overdose.

Outreach Psychotherapy

Our unique Outreach Psychotherapy Service started a new tri-borough contract in August 2022 and has supported 133 rough-sleepers to date in Tower Hamlets, the City of London and Hackney, who have struggled with their mental health. The psychotherapists have contributed towards supporting individuals to sustain their accommodation and to gain autonomy to make decisions in their best interest – accessing accommodation and drug and alcohol support, attending health appointments, exploring training opportunities and reconnecting with family members.

Progression & Training Service

2022/23 was the first year of our new funding from the Good Things Foundation. This partnership ensured that we were able to add a further member of staff to our team so that can support more people. We’re working closely with our hostel partners to bring digital inclusion directly to where the residents live as we develop this programme. 85 people this year further developed their skills including basic competence using computers, creating email account, and managing online security.

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Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

Of the 144 people who were referred to the service, 90 met with a specialist progression coach for an assessment. We created 93 CV’s for 58 people and 15 jobs were secured.

We also brought back the Garden Training Programme for the first time since the pandemic with 6 people completing the course.

Health & Wellbeing Fair

During the Covid-19 pandemic, we ran several vaccine hubs intended to reduce vaccine hesitancy and improve health outcomes. This year we decided, alongside commissioned services and partners (London Borough of Tower Hamlets, St Mungo’s Tower Hamlets Street Outreach Team, Groundswell and Tower Hamlets Public Health) to create larger, more holistic health and wellbeing events to take place quarterly. The aim of these events is to encourage engagement around all aspects of health and wellbeing and create an environment which is fun and different from daily service provision. We recognise the need for a holistic health service for our client group who face far poorer health outcomes than the general population and have a higher rate of undiagnosed health conditions.

Four Health & Wellness Fairs were held at Providence Row’s Day Centre serving 285 individuals across all events. Each Health Fair provides an opportunity for vulnerable clients to access vaccinations and get support with physical, mental and sexual health needs.

Health or Wellbeing Service Number of engagements
Covid 12
Flu 11
HE1/GP Service 18
Sexual Health Support 35
Substance Use Support 36
Mental Health Support 21
Clearly Hearing 37
Massage 63
Haircuts 43
Dental Care 37
Podiatry 15
Fibroscan (Liver Scans) 29
Chest X-Ray (TB Testing) 15
Nutritious
Hot
Meals
(BBQ,
Salads,
Smoothies)		 346

Food Programme

Over the course of the year we have provided 2,937 breakfasts and 6,813 lunches. Further to this we continued to provide freshly cooked meals each day for residents of an emergency accommodation provider with 5,760 meals being delivered over a 10 month period. In total 15,510 nutricious meals were provided across the year.

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Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

SWEP

For many years Providence Row’s Day Centre has been supporting a programme called the Severe Weather Emergency Protocol (SWEP) which delivers the emergency provision of pop up night shelters for people who are known to be sleeping rough at the time there is a severe weather warning or temperatures fall below freezing. Over the past year, Providence Row coordinated emergency lifesaving provision 6 times for 33 nights supporting 55 individuals.

Advice and Support Team

Our Advice and Support (AST) Team supported 272 clients to access additional support including securing accommodation, applying for benefits, ID documents and EU pre-settled and settled status, health referrals, and additional mental health and drug and alcohol support.

OUR SUPPORTERS AND FUNDERS

Providence Row’s work is made possible by our fantastic community of staff, supporters, funders and volunteers.

Our Staff

During the year the charity employed an average of 42 staff (average monthly headcount), of whom 19 were part-time staff (2021-22 average monthly account: 37 staff, of whom 8 were part-time staff).

Our Supporters and Funders

Our supporters are our lifeblood; whether it’s a regular gift, a one-off donation or fundraising activities, every single pound donated is much needed and much appreciated.

Our Volunteers

Volunteers are at the heart of our work and provide essential support for service provision. Our volunteering:

We also recruited and trained 10 community volunteers helping multiple services including the food service project, Welcome Area, Routes to Routes connecting many who were experiencing isolation with communities of support.

We successfully continued our partnership with the Institute for the International Education of Students (IES) which provided 2 interns who volunteered in our Resource Centre, Reset and Marketing teams from February through to April.

Our charity is governed by a Board of Trustees who give their time and expertise to ensure good governance.

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Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

Companies

We are incredibly grateful for the support of our company partners who donated £237,662 (£126,651 in 2021/22) over the course of year through a range of events, activities and grants. We would like to thank our long standing strategic partners Natixis Investment Managers and Reed Smith, Aldgate Connect BID, Vanguard Group Foundation, The Investment Association, FSCS, UNUM, Adecco, Global Aerospace, Beazley, Mace, Aon, Capita, AIG Insurance, Peel Hunt, Telent, BNY Mellon, Hamilton Insurance, Barclays, JP Morgan, Credit Suisse, Clothmaker’s Company, Societe Generale.

Communities

Thanks to continued support from a number of community groups we raised £81,952 (£48,896 in 2021/22). Our supporters in the community include: The Sisters of Mercy, The Society of the Holy Child Jesus CIO, Sisters of the Holy Cross Charitable Trust, St. Mary Moorfields Catholic Church and the Young City Catholics, Morrison’s Foundation as well as other religious and non-religious groups and schools.

Trusts and Foundations

Our private and institutional grant makers are a vital source of committed multi-year funding that allows us to plan ahead for our programmes and services. We received £357,239 (£317,555 in 2021/22). Thanks to the generosity of the Trusts and Foundations that supported us this year we were able to be there for our clients in one of the most challenging years Providence Row has experienced. The list of Trust and Foundations that supported us is within Note 21.

Major Donors

We developed a few new relationships with some Major Donors over the year which helped secure £15,000 towards our work. This programme will be further developed over the coming years.

Legacy

We received £80,237 (£56,704 in 2021/22) in legacy income. We are immensely grateful to those who have so generously supported us in their will.

Individuals

Our individual donors have once again made a crucial difference to the lives of the people we support. Thanks to the support of individual givers we raised £110,936 (£167,948 in 2021/22) during a year in which individual giving has shown a downward trend across the sector due to the challenging economic environment.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Legal structure of the charity

Providence Row is a private company limited by guarantee and does not have share capital. It was incorporated on 26 November 2010 (company number 07452798) and was registered as a charity on 2 February 2011 (charity number 1140192). Providence Row is the corporate successor to the unincorporated charity known as Providence Row Charity (PRC) (charity number 207454), which was originally established in 1860. The directors of Providence Row are its trustees for the purposes of charity law. Providence Row became operational as an incorporated charitable company on 1 April 2011 and on the same date a Charity Commission Scheme appointed Providence Row as the sole trustee of PRC.

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Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

Governance

The Memorandum of Association and Articles of Association of Providence Row form the governing documents of the charity. Providence Row is governed by a Board of Trustees, which is made up of:

Nominated Trustees are nominated to serve on the Board by the Catholic Archbishop of Westminster (two Trustees), the Superior General of the Union of the Sisters of Mercy (one Trustee) and the Congregational Leader of the Institute of Our Lady of Mercy (one Trustee) and their appointment is subject to approval by the Trustees. Nominated Trustees serve for three year renewable terms.

Elected Trustees must be appointed at the annual general meeting by means of election by those qualified to vote at the meeting. One third of Elected Trustees must retire by rotation at the annual general meeting, those who have been longest in office since their last appointment or re-appointment being subject to retirement by rotation.

Appointed Trustees are appointed for a renewable term of three years by a decision of the Trustees.

The Trustees may appoint one of their number to be the Chair of the Trustees for such a term of office as they determine and may at any time remove him or her from that office. The Chief Executive Officer has been appointed as the Secretary to the charity. The Trustees may at their discretion establish procedures and criteria for inviting individual donors to become ‘Associate members’ of the charity with the right to vote at the annual general meeting. There are currently no ‘Associate members’ qualified to vote at the 2022 annual general meeting.

ORGANISATIONAL STRUCTURE, MANAGEMENT AND KEY RELATIONSHIPS

The Board of Trustees meet quarterly. The Remuneration Committee meets annually to consider the recommendations of the Chief Executive in relation to staff remuneration. The remuneration of the Chief Executive is considered separately by the Remuneration Committee in the absence of the Chief Executive. External market benchmarks are taken into consideration in relation to all staff remuneration decisions, focussing on pay levels in other providers of a similar nature, and geographical location. The Remuneration Committee submits its recommendations to the Board for approval.

The Chief Executive attends meetings of the Board of Trustees (with other senior staff as appropriate) and submits for approval the strategic plan and the annual budget. The Chief Executive and the leadership team report regularly to the Trustees on the implementation of the strategy and performance against the budget.

In accordance with charity law, decisions relating to disposals of land (including sales, leases, grants of easements and releases of rights of light) are made by the Trustees following the procedures set down in the Charities Act, statutory regulation and guidance issued by the Charity Commission. The Board of Trustees determines the charity’s reserves policy.

The Chief Executive has formed a Leadership Team including the Director of Services, the Director of Finance and the Director of Fundraising and Marketing. The role of the Leadership Team is to assist the Chief Executive in implementing the strategic plan within the approved annual budget.

The charity has an ongoing relationship with Providence Row Housing Association (PRHA) which was established by Providence Row in 1970 to provide residential accommodation. PRHA is fully independent of Providence Row and leases part of the Dellow Centre property, consisting of offices and 58 units of accommodation, which it manages as a hostel funded by the London Borough of Tower Hamlets.

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Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

The charity’s other key relationships include the Sisters of Mercy (the Union of the Sisters of Mercy of Great Britain and the Institute of Our Lady of Mercy), the London Borough of Tower Hamlets and the Corporation of the City of London. The relationship with the Sisters of Mercy is a formal arrangement with powers to nominate Trustees to the Board. The charity is very grateful for the continued support of the Sisters of Mercy and committed to ensuring that the legacy of the Sisters is reflected in the ongoing work of the charity for the long term. In addition, the charity works with a range of other charities, agencies and partners.

FINANCIAL SUMMARY 2022/23

Overview of results

The charity recorded a surplus of £953 before net unrealised loss on investments of £34,576 and an unrealised loss on revaluation of the investment property of £305,000. This compares to a surplus of £155,382 (restated) before net unrealised gain on investments of £38,114 and net unrealised loss on the investment property of £270,000 in 2021/22.

Income

Total income for 2022/23 was £2,577,100 (2021/22: £2,492,857).

----- Start of picture text -----
Income 2022/23 2021/22
£'000 % of total £'000 % of total
Donations 532.9 20.7% 475.4 19.1%
Donated goods, facilities and services 6.3 0.2% 17.9 0.7%
Legacies 80.2 3.1% 56.7 2.3%
Charitable activities (see below) 1,609.7 62.5% 1,514.4 60.7%
Other trading activities 0.1 0.0% 0.3 0.0%
Investment income 322.9 12.5% 403.3 16.2%
Other income 25.0 1.0% 25.0 1.0%
Total 2,577.1 100.0% 2,493.0 100.0%
Income from charitable activities 2022/23 2021/22
£'000 % of total £'000 % of total
Local authority contracts 999.9 62.1% 981.0 64.8%
Performance related grants 254.9 15.8% 185.7 12.2%
Rents from the Dellow Centre leases 354.9 22.1% 347.7 23.0%
Total 1,609.7 100.0% 1,514.4 100.0%
----- End of picture text -----

Total income for the year increased by £84,243 (3.4%) in relation to 2021/22 income. This increase is mainly due to the increase in fundraised income and new, smaller contracts with Tower Hamlets local authority.

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Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

Expenditure

Total expenditure for 2022/23 was £2,576,147 (2021/22: £2,337,475 restated), an increase of £238,672 (9.3%).

----- Start of picture text -----
Expenditure 2022/23 2021/22
£'000 % of total £'000 % of total
Costs of raising donations and legacies 403.1 15.6% 506.6 21.7%
Costs of investment management 139.1 5.4% 154.2 6.6%
Charitable activities (see below) 2,034.0 79.0% 1,676.6 71.7%
Total 2,576.1 100.0% 2,337.4 100.0%
Expenditure on charitable activities 2022/23 2021/22
£'000 % of total £'000 % of total
Advice and Support / Resource Centre 1,107.5 54.5% 938.8 56.0%
Recovery and Progression 445.4 21.9% 372.6 22.1%
Trainee Schemes, Food & Garden 481.1 23.7% 363.7 21.8%
Providence Row Bakery - - 0.9 0.1%
Non-investment properties let in - - 0.7 0.0%
futherance of charitable purposes
Total 2,034.0 100.0% 1,676.6 100.0%
----- End of picture text -----

The expenditure increase is mainly due to significant staff cost increase across charitable activities.

FINANCIAL REVIEW

Investment policy and objectives

The charity’s appetite for risk in relation to the Endowment Fund reflects the long-term nature of the charity’s investment horizon. The Endowment Fund exists to generate sustainable income in perpetuity. For this reason, the Endowment Fund is focused on a diversified portfolio of unitised equity related investments, managed by the charity’s investment advisors. The primary objective of the investment strategy is to preserve the long-term real value of the charity’s permanent endowment, whilst providing a good level of income which may be deployed by the charity to further its objectives. The Trustees apply a policy of ‘Responsible Investment’ and we expect our investment managers to engage with companies on social, environmental and business ethics issues and to exercise voting rights in line with the policy. The Trustees have decided not to take an exclusionary approach to particular categories of investment.

The greater part of the charity’s investible cash resources, which are outside the Endowment Fund, are managed by its investment advisors. During recent years, due to the prevailing market environment it was increasingly difficult to make cash deposits on terms other than ‘instant access’ or up to 30 days’ notice, and the financial rewards for doing so were also limited. Interest rates have however been rising during the 2022/23 financial year, and have continued to do so beyond 31 March 2023. The charity does not currently hold any cash deposits with maturities in excess of 30 days, and has instructed its investment advisors to adopt a cautious approach, investing our resources across a number of different banking institutions with investment grade credit ratings and, in the case of overseas or offshore deposit takers, benefiting from a full guarantee from a UK parent bank with a credit rating of at least A- (Fitch/S&P). The Charity is currently exploring refinements to its investment strategy to maximise benefit from the higher interest rate environment.

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Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

Investment performance against objectives

Over the 12-month period to 31 March 2023, the charity’s Endowment Fund generated an overall negative return of £24,946 (2021/22: positive return of £46,829), incorporating investment income of £16,258 (2021/22: £18,158), net unrealised loss of £34,576 (2021/22: unrealised gain of £38,114) and management fees of £6,628 (2021/22: £9,443).

The charity’s managed cash deposit portfolio generated income in the year of £12,094 (2021/22: £84). We anticipate an improved return over the year ahead due to increased rates of interest.

The charity’s investment property generated total income (rent and service charge) of £278,826 during the year, a decrease of 25.4% over the comparative figure for 2021/22 of £373,976. This decrease is mainly due to vacancy levels during the year. Rental income was £219,772 (2021/22: £265,387). Direct costs of investment property management in 2022/23 (before allocated support costs) totalled £151,968 (2021/22: £135,072).

PRINCIPAL RISKS AND RISK MANAGEMENT

The Trustees have considered and reviewed the major risks to which the charity is exposed and are satisfied that systems and procedures have been established to adequately manage these risks. The risks identified and reviewed are those which, if they occurred, would have a major impact on some or all of the following areas: governance; operations; finances; environmental or external factors such as public opinion or relationships with funders; compliance with law and regulation.

The Chief Executive together with the Leadership Team produces a risk register for the charity and reports to the Board of Trustees on a regular basis the major risks which have been identified, and measures in place (or planned) to manage and mitigate those risks.

We recognise that in our work we are exposed to significant risks relating to the safeguarding of vulnerable adults, and a failure to respond to changes in the external environment could endanger lives as well as our reputation. To manage this risk, procedures are in place in respect of staff, volunteers and clients. These processes are included in a range of policies, in particular: Safeguarding Adults; Health and Safety; Fire Safety; Personal Safety, and Lone Working.

Economic uncertainty is a threat to our income at a time when the needs of homeless people are increasing and Local Authorities finances are under pressure. The Board and the Leadership Team are carefully monitoring the external environment to identify specific risks to our projected income.

The charity’s largest single source of recurring (contractual) income is currently from the London Borough of Tower Hamlets. Local Authority budgets continue to be placed under considerable pressure by public sector financing constraints. Uncertainty about future levels of Local Authority income represent a risk to the charity. Consequently, we have prioritised the further diversification of income streams. We have secured multiyear funding for all service delivery contracts commissioned by Local Authorities. We continue to increase our capacity and experience in public sector tendering and impact monitoring and reporting.

Investment over the last three years in a new fundraising strategy to generate sustainable funds from a wider range of income streams is showing healthy returns with positive prospects for the year ahead. Fundraising from individuals, communities, trusts and companies now makes up just under a third of our annual income and robust plans are in place to protect and strengthen these income streams.

Providence Row has a good level of liquidity, a business model that has generated a small underlying surplus over the last three years and modest levels of debt, and so remain confident in our resilience and capacity to manage the risks identified.

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Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

The charity owns a number of property assets, and the ownership and management of these properties involves a number of risks:

• The charity’s main premises, the Dellow Centre complex, is a substantial purpose-built property on the Gunthorpe Street / Wentworth Street site and is owned freehold. The effective management of this and of the charity’s Day / Activity Centre on the same site represents a considerable operational and financial commitment. We have begun to invest in the Centre to make improvements to the premises and the way in which we provide our services.

• Most of the upper parts of the Dellow Centre comprise a Hostel. This was occupied and operated by a Housing Association for many years and generated a substantial rental income for the charity, but the tenant vacated the building on 2[nd] October 2023. We instructed a property agent to market the hostel which has generated reasonably good interest at a satisfactory level of rent. We are confident that a new tenant will be secured during 2024.

• Providence Row’s investment property, Sherrington Mews, lies adjacent to and to the south of the Dellow Centre and largely provides office space arranged in small suites. The property is managed by a third-party professional property manager, however there is an inherent risk around void periods and the rental level at which space can be re-let. The property represents a valuable source of rental income, and the largest tenant has recently vacated.

Whilst the charity is currently experiencing a reduced level of income from both the Dellow Centre Hostel and Sherrington Mews, the Board has been reassured by the interest in a potential new tenant acquiring the Hostel space at a satisfactory level of rent.

REVIEW OF RESERVES AND RESERVES POLICY

Providence Row reviews its reserves policy regularly in line with its evolving strategic outlook and operating environment and in order to ensure that the policy continues to reflect the underlying risks facing the charity and the level of reserves judged necessary to protect its core services to clients and to safeguard its long-term sustainability and independence.

Providence Row holds restricted funds (or ‘special trusts’) in accordance with donors’ express requirements and the terms of grants or appeals. In addition, the charity has established designated (unrestricted) funds for planned future requirements in accordance with the strategic plan. The creation of a designated fund does not legally restrict the Trustees’ discretion in how to apply the unrestricted funds that have been earmarked.

As at 31 March 2023 the charity held total funds of £11,333,508 (2021/2022: £11,672,131 restated), comprising the restricted endowment fund, restricted income funds and unrestricted funds.

The Trustees have determined that the previously agreed target level of £1,000,000 in free reserves should remain. At 31 March 2023, the actual level of free reserves (including the contingency fund) was £1,030,102 (2021/22: £1,047,004 restated).

The Trustees will continue to review the target level of free reserves annually to take into account changing circumstances, revised financial forecasts and evolving challenges and opportunities facing the charity. The target level of free reserves may therefore change over time.

Movements on the funds held by the charity during the period under review and an analysis of the charity’s net assets between the funds held are summarised in notes 16 to 19 to the financial statements.

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Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

Going concern

We have a robust fundraising programme that has been showing sustainable year on year growth. Our cash position remains strong despite the challenging environment in which we are working. The ownership of property assets protects us from challenges being faced by many charities at this time. In addition Trustees have confidence that the approved strategy is realistic and gives us the resilience to tackle external risks.

The Trustees consider that is therefore appropriate to prepare the financial statements on a going concern basis.

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Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

TRUSTEES’ RESPONSIBILITIES STATEMENT

The law applicable to charities in England and Wales requires the Trustees to prepare the annual report and financial statements for each financial year which give a true and fair view of the charity’s financial activities during the period and of its financial position at the end of the period. In preparing financial statements giving a true and fair view, the Trustees should follow best practice and:

The Trustees are responsible for keeping accounting records that disclose with reasonable accuracy the financial position of the charity and enable them to ascertain the financial position of the charity and ensure that the financial statements comply with the Companies Act 2006. The Trustees are responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are not aware of any relevant audit information that has not been disclosed to the charity’s auditors. The Trustees have taken all the steps that ought to have been taken in order to make themselves aware of any relevant audit information and to establish that the charity’s auditors are aware of that information.

The trustees are responsible for the maintenance and integrity of the Charity’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Auditors

Mazars LLP acted as auditors during the period under review and have signified their willingness to continue in office. A resolution proposing their re-appointment will be put to the annual general meeting.

These financial statements have been prepared in accordance with the provision applicable to companies subject to the small companies regime.

Approved by the Trustees on 25[th] January 2024 and signed on their behalf by

Richard Solomon Em canning (Jan 29, 2024 18:48 GMT) ……………………………..…..……..…………… Em canning Richard Solomon (Jan 29, 2024 21:48 GMT) …………..………………………………………….. Elizabeth Canning – Chair Richard Solomon – Honorary Treasurer

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Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PROVIDENCE ROW

Opinion

We have audited the financial statements of Providence Row (the ‘charity’) for the year ended 31 March 2023 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 charity 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 charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the trustees’ report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the trustees’ report. 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.

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Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charity 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:

Responsibilities of the Trustees

As explained more fully in the trustees’ responsibilities statement on page 17, the trustees (who are also the directors of the charitable company for the purposes of company laws) 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 charity’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 charity or to cease operations, or have no realistic alternative but to do so.

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Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

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.

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

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.

Based on our understanding of the charity and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-money laundering regulation.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006 and the Charities Statement of Recommended Practice.

In addition, we evaluated the trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to income recognition and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:

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Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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

Use of the audit report

This report is made solely to the charity’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 charity’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 charity and the charity’s members as a body for our audit work, for this report, or for the opinions we have formed.

Nicola Wakefield (Jan 30, 2024 15:42 GMT)

Nicola Wakefield (Senior Statutory Auditor) for and on behalf of Mazars LLP

Chartered Accountants and Statutory Auditor

2[nd] Floor, 6 Sutton Plaza, Sutton Court Road, Sutton, Surrey, SM1 4FS 30-Jan-2024 Date: ………………………………………………..

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Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

STATEMENT OF FINANCIAL ACTIVITIES

For the year ended 31 March 2023

Statement of Financial Activities for the year ended 31 March 2023

(incororating an income and expenditure account)

----- Start of picture text -----
Restricted Endowment Total Funds
Notes
Unrestricted Funds Funds Fund Total Funds 2023 2022 Restated
£ £ £ £ £
Income and Expenditure
Income from:
Donations 411,642 127,500 - 539,142 493,230
Legacies 80,237 - - 80,237 56,704
Sub-total: Donations and legacies 2a 491,879 127,500 - 619,379 549,934
Charitable activities 2b 1,354,753 254,917 - 1,609,670 1,514,365
Other trading activities 2c 129 - - 129 250
Investments 2d 322,922 - - 322,922 403,308
Other 2e 25,000 - - 25,000 25,000
Total income 2,194,683 382,417 - 2,577,100 2,492,857
Expenditure on:
Raising funds
Raising donations and legacies (393,815) (9,262) - (403,077) (506,622)
Investment management (132,479) - (6,628) (139,107) (154,222)
Sub-total: Raising funds (526,294) (9,262) (6,628) (542,184) (660,844)
Charitable activities
Advice and Support / Resource Centre (885,091) (222,421) - (1,107,512) (938,777)
Recovery and Progression (435,119) (10,234) - (445,353) (372,622)
E&T: Trainee Schemes, Food & Garden (290,916) (190,182) - (481,098) (363,692)
E&T: Providence Row Bakery - - - - (850)
Property let for charitable purposes - - - - (690)
Sub-total: Charitable activities (1,611,126) (422,837) - (2,033,963) (1,676,631)
Total expenditure 3 (2,137,420) (432,099) (6,628) (2,576,147) (2,337,475)
Net income/(expenditure) before net
(losses)/gains on investments 57,263 (49,682) (6,628) 953 155,382
Net (losses) on investments
Unrealised (losses) on investment property 8 (305,000) - - (305,000) (270,000)
Net (losses)/gains on other investments 9, 16 - - (34,576) (34,576) 38,114
Net movement in funds (247,737) (49,682) (41,204) (338,623) (76,504)
Reconciliation of funds
Totl funds brought forward (as previously 8,816,060 2,188,334 840,337 11,844,731 11,892,107
stated)
Prior year adjustment 22 (172,600) - - (172,600) (143,472)
Total funds brought forward - restated 8,643,460 2,188,334 840,337 11,672,131 11,748,635
Total funds carried forward 8,395,723 2,138,652 799,133 11,333,508 11,672,131
----- End of picture text -----

All of the above results relate to continuing activities. All gains and losses recognised in the year are included in the Statement of Financial Activities above. Movements in funds are disclosed in Notes 16 to 19 of the financial statements.

The analysis of the Statement of Financial Activities for the year ended 31 March 2022 between unrestricted funds, restricted funds and the endowment fund is set out within Note 23 on page 44 of these financial statements.

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Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

Registered company number: 07452798 Charity number: 1140192

BALANCE SHEET

As at 31 March 2023

Balance Sheet as at 31 March 2023

Balance Sheet as at 31 March 2023
NOTES £ Total funds
2023
£		 £ Total funds
2022
Restated
£
Fixed Assets
Tangible fixed assets
7
Investment property
8
Other Investments
9
Total Fixed Assets
Current Assets
Debtors
10
Cash at bank and in hand
Total Current Assets
Liabilities
Creditors: Amounts falling due within one year
11
Net Current Assets
Total Assets less Current Liabilities
Creditors falling due after more than one year
12,13
Total Net Assets
19
The Funds of the Charity
Endowment Fund
16
Restricted Income Funds
17
5,318,621
3,875,000
1,398,244		 5,300,456
4,180,000
1,424,613
10,591,865 10,905,069
1,777,446
365,143
2,095,180		 391,256
1,986,463
2,460,323
(708,296)		 1,752,027
12,343,892
(1,010,384)
11,333,508
799,133		 2,377,719
(600,273)
12,682,515
(1,010,384)
11,672,131
840,337
2,188,334
8,643,460
Tangible fixed asset fund: Restricted
Other restricted income funds
Unrestricted Funds
18		 2,128,000
10,652		 2,184,000
4,334
3,190,621
1,556,597
2,318,403
300,000		 2,138,652 3,116,456
1,556,597
2,623,403
300,000
Tangible fixed asset fund: Unrestricted
Fixed asset fund: Investment Property
Revaluation Reserve: Investment Property
Cyclical Maintenance and repairs fund
Free Reserves
Contingency fund: Charity running costs
General Funds
Total Free Reserves
Total Charity Funds
19		 800,000
230,102		 800,000
247,004
1,030,102 8,395,723
11,333,508		 1,047,004
11,672,131

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The financial statements on pages 22 to 44 were approved by the Board of Trustees on 25[th] January 2024 and signed on its behalf by:

Richard Solomon

Em canning (Jan 29, 2024 18:48 GMT) ……………………………….……………………....…. Em canning Richard Solomon (Jan 29, 2024 21:48 GMT) …………………………………………………………… Elizabeth Canning – Chair Richard Solomon – Honorary Treasurer

The notes on pages 25 to 44 form an integral part of these financial statements

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Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

STATEMENT OF THE CASHFLOWS

For the year ended 31 March 2023

Statement of Cash Flows for the year ended 31 March 2023

Notes
a) Reconciliation of net expenditure to net cash flow from operating
activities
Net (expenditure) / income for the year (as per the statement of financial
activities)
Adjustments for:
Depreciation charges
3,7
Unrealised loss on investment property
8
Net loss/(gains) on other investments
9
Dividends, interest and rents from investments per the SOFA
Investment management costs per the SOFA
Decrease / (increase) in debtors (operating activities)
Increase in creditors (operating activities)
Net cash provided by operating activities
Notes
b) Statement of Cash Flows
Net cash provided by operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments per the SOFA
Investment management costs per the SOFA
Purchase of property, plant and equipment
7
Purchase of investments
9
Disposal of investments
9
Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Notes
c) Analysis of Cash and Cash Equivalents
Cash at bank and in hand
Investments: Notice deposits (3 months or less)
9
Investments: Cash held in endowment fund (capital)
9
Total cash and cash equivalents		 Total Funds
2023
Total Funds
2022
Restated
£
£
(338,623)
(76,504)
142,797
139,076
305,000
270,000
34,576
(38,114)
(322,922)
(403,308)
139,107
154,389
26,113
(9,685)
108,022
851,148
94,070
887,002
Total Funds
2023
Total Funds
2022
£
£
94,070
887,002
322,922
403,308
(139,107)
(154,389)
(160,962)
(1,271)
(97,284)
(141,094)
95,001
145,033
20,570
251,587
114,640
1,138,589
2,551,699
1,413,110
2,666,339
2,551,699
Total Funds
2023
Total Funds
2022
£
£
2,095,180
1,986,464
556,041
543,948
15,118
21,287
2,666,339
2,551,699

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Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

Notes to the Financial Statements For the year ended 31 March 2023

1 Accounting Policies

a. Basis of accounting

The financial statements have been prepared on the going concern basis and under the historical cost convention as modified by the revaluation of investments or as otherwise stated in the relevant accounting policy notes. There are no material uncertainties about Providence Row’s ability to continue as a going concern. Providence Row is a public benefit entity.

The financial statements have been prepared in accordance with:

Incorporation and transfer of charitable undertaking at 31 March 2011

Providence Row was incorporated on 26 November 2010. Providence Row is the corporate successor to the unincorporated charity known as Providence Row Charity (PRC) (charity number 207454). (PRC was known as ‘Providence Row Night Refuge and Home’ until it changed its name on 21 January 2003.) With the exception of funds held on permanent endowment, the assets, liabilities, employees, operations and activities of PRC were transferred to Providence Row with effect from midnight on 31 March 2011. Providence Row became operational as an incorporated charitable company on 1 April 2011.

Also, on 1 April 2011 a Charity Commission Scheme appointed Providence Row as the sole trustee of PRC. PRC continues in existence to hold the charity’s permanent endowment and to receive any legacies bequeathed to PRC after 31 March 2011. Although PRC continues to hold legal title to the Endowment.

Fund assets, from an accounting perspective PRC is considered to hold these assets only as custodian for its corporate successor, due to the corporate trusteeship established by the Charity Commission Scheme. As a consequence of the constitutional arrangements (corporate trusteeship of Providence Row in relation to PRC), the financial statements of Providence Row have been prepared on the basis that they aggregate its own assets, results and activities with those of PRC. For this reason, the Endowment Fund appears on the statutory balance sheet of Providence Row, and legacy income of PRC and investment income arising from the Endowment Fund are shown within Providence Row’s Statement of Financial Activities (SOFA).

b.

Income

Income is recognised in the SOFA when a transaction or other event (e.g. a gift) results in an increase in the charity’s assets or a reduction in its liabilities. Income is recognised only when the following criteria are met:

In the case of a donation, entitlement usually arises immediately on its receipt. In the case of a grant, evidence of entitlement will usually exist when the formal offer of funding is communicated in writing to the charity. However, some grants contain terms or conditions that must be met before the charity has entitlement to the resources. Where grants specify a time period within which the funds must be spent and

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Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

the funds are received before the start of that period, then the income is deferred and only released to income at the start of the relevant period.

Grant funding agreements may contain conditions that specify the particular activities, goods or services to be provided by the charity within the scope of its charitable activities (performance-related grants). Income derived from performance-related grants is included within the SOFA heading ‘Income from charitable activities’ rather than ‘Income from donations and legacies’. However, simply because a grant is restricted to a particular purpose of the charity does not mean that it should be recognised as a performance-related grant. Unrestricted and restricted grants that are not subject to performance-related conditions are included within the SOFA heading ‘Income from donations and legacies’.

Gift Aid recoverable from HMRC in relation to donations is included in income on an accruals basis where there is a valid Gift Aid declaration from the donor.

Donated goods, facilities and services are recognised as income when brought into use by the charity. They are included in income at an amount equivalent to their estimated value to the charity, where this can be quantified, and an equivalent amount is included in the appropriate cost line, or (in the case of tangible assets) capitalised if appropriate. The only amounts included for donated services are those provided in a professional capacity. No amounts are included in the financial statements for services donated by volunteers. Details of the contribution made by volunteers can be found in the Report of the Trustees.

Evidence of entitlement to a legacy exists when the charity has sufficient evidence, after the death of the benefactor, that a gift has been left to it and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Recognition of the legacy income is also affected by the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Receipt of a legacy is normally judged to meet the probability criterion when:

Where the charity has entitlement to a legacy but the criteria for income recognition have not been met (e.g. due to uncertainty as to the amount of the payment) then the legacy is treated as a contingent asset (and is disclosed in the notes to the financial statements if material) until the criteria for income recognition are met.

Income from fundraising events, where the income is not a simple gift or donation but rather a payment in exchange for supplying goods or services to raise funds for the charity, is recognised when the event takes place and is included within the SOFA heading ‘Income from other trading activities’.

Income from the sale of goods is recognised at the time of supply of goods to the buyer, provided receipt of the income is probable.

Income from contracts for the supply of services is recognised with the delivery of the contracted service.

Interest on funds held on deposit is recognised when receivable and the amount can be measured reliably. Dividend income is recognised when its receipt is probable, and the amount receivable can be measured reliably. Dividends are accrued when the charity’s right as shareholder to receive payment is established.

Rental income from property leases is recognised when it is receivable in accordance with the terms of the relevant leases, provided receipt of the income is probable. The aggregate cost of lease incentives (e.g. rent free periods or periods of concessionary reduced rents) is recognised as a reduction to the rental income over the full contractual term of the lease on a straight-line basis.

c.

Expenditure

All expenditure is accounted for on an accruals basis and is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably.

Expenditure is reported in the financial statements on an activity basis, as required by Charities SORP (FRS 102). This involves identifying the total cost of an activity, including direct, shared and indirect (or support)

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Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

costs. Charities SORP (FRS 102) identifies three high-level categories of a charity’s activities: (i) expenditure on raising funds; (ii) expenditure on charitable activities, and (iii) other expenditure. These broad categories are further analysed between their significant components.

Support costs, which are not directly attributable to activities for raising funds or charitable activities, are allocated to those categories on a basis consistent with the use of resources. The bases on which support costs have been allocated are set out in note 3 ‘Expenditure’. Support costs include:

Governance costs are those associated with the governance arrangements of the charity, including external audit, general legal advice for the trustees (fees for legal advice specifically relating to investment property are included in investment management costs) and costs associated with constitutional and statutory requirements and ensuring proper public accountability (e.g. the costs of preparing statutory financial statements). Governance costs include any costs associated with the strategic as opposed to day-to-day management of the charity’s activities and the cost of charity employees in respect of their time when involved in and preparing for meetings with trustees.

Costs of raising donations and legacies

Costs of raising donations and legacies are those incurred in seeking voluntary donations, gifts and grants of a general nature, together with the costs of administration related to legacies left to the charity. It excludes costs associated with applying for performance-related grants or negotiating contracts to provide services, which are included within the costs of the relevant charitable activities.

Other trading activities

This category includes the costs of fundraising events (where income is raised for the charity in exchange for supplying goods and services), non-charitable trading activities and costs of property which is let or licensed to other users.

Investment management costs

Investment management costs include the costs of:

Property let in furtherance of charitable purposes

This category covers expenditure incurred in relation to those parts of the Dellow Centre property let on short-term leases to (i) Providence Row Housing Association (PRHA) in respect of the Dellow Hostel and (ii) St Mungo’s in respect of offices on the 2[nd] floor of the Dellow Centre. PRHA is a Housing Association. Under the terms of its lease, PRHA uses the premises as a hostel for those in housing need and by means of funding from the London Borough of Tower Hamlets (LBTH). Providence Row considers that the services and facilities provided by this tenant from the premises let to them are compatible with and complementary to its own charitable purposes and activities. Consequently, the rent received and other charges recovered from this tenant are included in the charity’s ‘Income from charitable activities’ (see note 2b) and the expenditure

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Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

incurred by the charity in relation to these parts of our buildings is classified as ‘expenditure on charitable activities’ (see note 3).

d. Tangible fixed assets

(i) Freehold land and buildings

Freehold land and buildings transferred from PRC on 31 March 2011, other than assets in the course of construction at that date, are stated at fair value on the date of transfer less depreciation charged since the transfer. Freehold buildings in use are depreciated on a straight line basis over a period of 50 years from the date of transfer. Freehold properties let to tenants on long term leases in respect of which Providence Row receives rental income are depreciated on a straight line basis over the remaining terms of the respective leases.

In the case of freehold land and buildings in use by the charity, fair value was ascertained, based on professional advice, as ‘Market Value’, defined as the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.

In the case of freehold properties let to tenants on long-term leases, fair value was determined based on a discounted cash flow analysis of expected future rental income under the existing lease terms and assumptions relating to future levels of inflation, potential outcomes of rent reviews and other factors where applicable.

The Activity Centre on the Gunthorpe Street/Wentworth Street site was under construction at the date of transfer and was brought on to the balance sheet of Providence Row at that date on the basis of historical cost of construction and related capitalised professional costs. Construction was completed in November 2011 and the building is subject to depreciation over a period of 50 years from 1 January 2012.

Included within ‘Freehold land and buildings in use’ are the capitalised costs of the full replacement and resurfacing of the flat roof of the charity’s main Gunthorpe Street / Wentworth Street premises (the Dellow Centre complex) undertaken during 2014-15. The costs of the new roof are being depreciated on a straight line basis over 25 years.

Freehold land is not depreciated.

ii) Other tangible fixed assets

Other categories of tangible fixed assets are depreciated on a straight line basis so as to write off their original cost over their estimated useful lives, as follows:

Office furniture and equipment - 4 years
Computer equipment - 3 years
Plant & mechanical equipment - 10 years

Tangible fixed assets are capitalised if their initial cost (or, in the case of donated goods, the value to the charity – see note 1c above) is £1,000 or greater.

e.

Fixed asset investments

Investment property assets are measured initially at cost and subsequently shown in the balance sheet at their fair value at the reporting date and are not depreciated. Changes in value of investment property arising in the period are shown in the SOFA under the heading ‘Net gains / (losses) on investments’ and are reflected in the ‘Revaluation reserve: Investment property’ (Unrestricted funds). ‘Fair value’ means the amount for which an asset could be exchanged, a liability settled, or an equity instrument granted between knowledgeable, willing parties in an arm’s length transaction.

The investment property was valued by an independent firm of professional surveyors as at 31 March 2015 (the first year end following acquisition), again as at 31 March 2016, followed by evaluation as at 31 March 2018, November 2020 and as at 31st March 2022. The desktop evaluation is carried out at 31[st] March 2023. It is the policy of the charity henceforward to commission an independent professional valuation of the

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Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

investment property every five years for accounting purposes, subject to a review in the intervening years in case of significant changes to the occupancy of the property, the tenancies or market conditions.

Investments in quoted collective investment funds are shown in the balance sheet at market value (bid price). Realised gains and losses are accounted for by reference to the sale proceeds and either the market value at the previous balance sheet date, or the cost of purchase, if later. Unrealised gains and losses are calculated by comparing the market value at the previous balance sheet date, or cost of purchase, if later, to the year-end valuation. Any gain or loss arising in the period is taken to the SOFA under the heading ‘Net gains / (losses) on investments’. All gains and losses are dealt with as part of the funds to which they relate.

Fixed asset investments include cash deposits (both in instant access accounts and on deposits with a range of maturity dates) which the charity intends to hold as part of its on-going investment activities for more than one year from the reporting date.

f. Fund accounting

i) Endowment fund

The endowment fund represents investments, the capital of which forms the permanent endowment of the charity and must be retained and invested. Only the income from this fund is available to be used for general charitable purposes (as an addition to unrestricted funds). The assets of the endowment fund are held by Providence Row (see note 1a for further information on the basis of accounting for the endowment fund assets). The investments of the endowment fund are included within ‘Fixed Assets: Other Investments’ (see note 9, ‘Other Investments’).

ii) Restricted income funds

Restricted income funds can only be used for particular purposes (within the objects of the charity) specified by the donor or grantor or the terms of an appeal.

iii) Designated funds - unrestricted

Designated funds are unrestricted funds of the charity set aside out of the general funds by the Trustees for specific purposes or projects for the furtherance of particular aspects of the charity’s objects, but over which the Trustees retain full discretion.

iv) General funds - unrestricted

These comprise the funds which are available to be used for any purpose within the charity’s objects.

g.

Pension costs

The amounts charged to the SOFA for defined contribution pension arrangements represent the employer contributions payable in the period.

h. Operating leases

Rentals paid under operating leases are charged to the SOFA on a straight line basis over the term of the lease.

i.

Taxation

Irrecoverable VAT is not separately analysed and is charged to the SOFA when the expenditure to which it relates is incurred and is allocated as part of the expenditure to which it relates.

Tax recoverable from voluntary income received under Gift Aid is recognised when the related income is receivable.

j.

Subsidiaries

Providence Row charity (charity number 207454), of which Providence Row became the sole trustee following the transfer of charitable undertaking, is a subsidiary of Providence Row. Following the transfer of charitable undertaking, the assets, results and activities of Providence Row Charity are aggregated into the financial statements of Providence Row (see note 1a above).

30

Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

2 Income

a. Income from donations and legacies

Individuals
Corporate donors
Community
Gift Aid reclaimed
Donated goods, facilities and services
Grants from trusts and foundations
Sub-total: Donations
Legacies
Total income from donations and legacies*		 Unrestricted
Funds
Restricted
Funds
2023
Total
2022
Total
£
£
£
£
94,018
5,000
99,018
146,158
150,162
87,500
237,662
126,651
46,952
35,000
81,952
48,896
11,918
-
11,918
21,790
6,270
-
6,270
17,855
102,322
-
102,322
131,880
411,642
127,500
539,142
493,230
80,237
-
80,237
56,704
491,879
127,500
619,379
549,934

The category of ‘Corporate donors’ includes individuals whose connection with Providence Row derives primarily from their employer’s relationship with the charity. Donations in this category from individuals during the period totalled £12,661, none of which was in restricted income (2022: £30,453).

‘Community’ donations include gifts from religious communities, churches, schools and local community groups. This category also includes income from individuals participating in external community events such as sponsored runs.

Donated goods, facilities and services are broken down by type in the table below (all income within this category is included within unrestricted funds):

Food and kitchen equipment
Other goods donated for client use
Total donated goods, facilities and services
Donated furniture, electronic and computer equipment, catering equipment
capitalised as tangible fixed assets		 2023
2022
£
£
-
4,790
-
2,025
6,270
11,040
6,270
17,855

In accordance with Charities SORP (FRS 102), the economic contribution of general volunteers is not recognised in the financial statements. However, as set out in more detail in the Report of the Trustees, our volunteers make a vital contribution to the work of the charity, including corporate volunteers, Welcome Area volunteers and general volunteers within the main service teams, Finance and Resources and Fundraising.

31

Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

b. Income from charitable activities

Unrestricted Restricted 2023 2022
Funds Funds Total Total
£ £ £ £
London Borough of Tower Hamlets (LBTH): Advice &
Support - Rough Sleepers Services 301,753 - 301,753 481,832
LBTH Drug & Alcohol Action Team: Substance misuse
Worker & Needle Exchange, Women's Service 358,647 - 358,647 272,474
City of London: Recovery & Progression Service 226,476 - 226,476 53,350
Hackney 104,986 104,986 93,730
Sub-total: Local Authority Contracts for Services 991,862 - 991,862 901,386
Performance-related grants - Public Sector 8,000 8,000 79,648
Performance-related grants - Trusts & Foundations - 254,917 254,917 185,675
Rents and charges from non-investment properties let
in furtherance of charitable purposes 354,891 - 354,891 347,656
Total income from charitable activities 1,354,753 254,917 1,609,670 1,514,365

Income from government sources is summarised in the table below:

Local Authority Contracts for Services (see above)
London Borough of Tower Hamlets
Total income from government sources
c. Income from other trading activities
Other trading activities
Income from letting and licensing of property held
primarily for functional use but temporarily surplus to
operational requirements (inc. room hire)
Total income from trading activities		 Unrestricted
Funds
Restricted
Funds
2023
Total
2022
Total
£
£
£
£		 Unrestricted
Funds
Restricted
Funds
2023
Total
2022
Total
£
£
£
£
991,862
-
8,000
-		 991,862
901,386

8,000
79,648
999,862
-		 999,862
981,034
2023
Total
2022
Total
£
£
35
250
94
-
129
250

All of the income in the table above was included in unrestricted funds.

32

Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

d. Investment income

d. Investment income
2023 2022
Total Total
£ £
Rent and charges from commercial tenants at
investment property (Sherrington Mews) 283,705 385,066
Dividend and interest income from other investments 39,217 18,242
Total investment income 322,922 403,308

All of the income in the table above was included in unrestricted funds.

e. Other income

Ground rents from non-investment freehold property
let on long leases
Total other income		 2023
Total
2022
Total
£
£
25,000
25,000
25,000
25,000

All of the income in the table above was included in unrestricted funds.

3 Expenditure

Raising Funds
Raising donations and legacies
Investment management
Sub-total: costs of raising funds
Charitable activities
Advice and Support / Resource Centre
Recovery and Progression
Trainee Schemes, Food & Garden
Providence Row Bakery
Non-investment properties let in furtherance of
charitable purposes
Sub-total: costs of charitable activities		 Direct
costs
Support
Costs
2023
Total
Direct
costs
Support
Costs
2022
Total -
Restated
£
£
£
£
£
£
349,805
53,272
403,077
324,976
181,646
506,622
134,922
4,185
139,107
135,072
19,150
154,222
484,727
57,457
542,184
460,048
200,796
660,844
961,139
146,373
1,107,512
602,185
336,592
938,777
386,494
58,859
445,353
239,021
133,601
372,622
417,514
63,584
481,098
233,293
130,399
363,692
-
-
-
545
305
850
-
-
-
604
86
690
1,765,147
268,816
2,033,963
1,075,648
600,983
1,676,631

33

Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

Support Costs

Support costs can be analysed as follows:

Raising Funds
Raising donations and legacies
Investment management
Sub-total: costs of raising funds
Charitable activities
Advice and Support / Resource Centre
Recovery and Progression
Trainee Schemes, Food & Garden
Providence Row Bakery
Non-investment properties let in futherance of
charitable purposes
Sub-total: costs of charitable activities
Total expenditure		 Governance
Finance
HR / Office
Admin
IT /
Telecoms
Property
(Own Use)
Other
Central Depreciation
2023
Total
2022
Total -
Restated
£
£
£
£
£
£
£
£
£
2,171
1,231
9,609
7,449
17,041
(7,847)
23,618
53,272
181,646
837
475
-
2,873
-
-
-
4,185
19,150
3,008
1,706
9,609
10,322
17,041
(7,847)
23,618
57,457
200,796
5,965
3,382
26,401
20,468
46,822
(21,559)
64,894
146,373
336,592
2,399
1,360
10,616
8,231
18,829
(8,671)
26,095
58,859
133,601
2,591
1,469
11,468
8,891
20,340
(9,365)
28,190
63,584
130,399
-
-
-
-
-
-
-
-
305
-
-
-
-
-
-
-
-
86
10,955
6,211
48,485
37,590
85,991
(39,595)
119,179
268,816
600,983
13,963
7,917
58,094
47,912
103,032
(47,442)
142,797
326,273
801,779

The charity refined the basis of its apportionment between direct costs and support costs during 2022/23; this is a significant factor behind the year-on-year reduction in the relative scale of support costs and direct costs.

Support costs are allocated to the different activities of the charity based on the proportion of direct costs attributable to the relevant activities, as follows:

34

Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

4 Staff Cost and Employee Benefits

2023 2022
£ £
Wages and salaries (inc accrual for unpaid annual leave) 1,373,358 1,233,283
Employers National Insurance contributions (social security costs) 159,925 124,797
Employer's contribution to defined contribution pension schemes 59,288 55,071
Agency staff (including agency fees) 102,808 65,681
Insurance premiums: group life assurance and employee personal accident 6,897 4,275
Total 1,702,276 1,483,107

No member of the Board of Trustees was paid any remuneration or received any other benefits for their services as a trustee or from an employment with the charity or a related entity during the year (2022: none). No Trustee received reimbursement of expenses incurred for services provided to the charity during the year (2022: none). Details of transactions with connected parties of trustees are disclosed in Note 20.

During the year there were two employees whose total employee benefits fell within the banding £60,000 to £69,999 (2022: two). During the year there was one employee whose total employee benefits fell within the banding £70,000 to £79,999 (2022: none). During the year there was one employee whose total employee benefits fell within the banding £80,000 to £89,999 (2022: one). Employer payments in the year to a defined contribution pension scheme in respect of these employees totalled £6,462 (2022: £3,963).

The key management personnel of the charity consists of the Trustees the Chief Executive and the Leadership Team. Total employee benefits received by the charity’s key management personnel (excluding trustees) during the year were £285,321 (2022: £271,812)

5 Staff Numbers

The average monthly head count (number of staff employed) in the twelve month period ending 31 March 2023, analysed between full-time and part-time staff, was:

Full-time staff
Part-time staff
Total Average Head Count		 2023
2022
33.0
29.7
8.6
7.6
41.6
37.3

The average monthly number of full-time equivalent employees in the twelve month period ending 31 March 2023, analysed by activity, was:

Activity
Fundraising, communications, marketing
Charitable activities
Support, central, investment management
Total Average Head Count		 2023
2022
5.5
3.8
27.2
23.1
5.7
7.7
38.4
34.6

35

Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

6 Amounts Payable to the Auditors

2023 2022
£ £
Audit fee:
Current Year 16,854 13,500
Non-audit services 2,900 2,900
Total 19,754 16,400

No other services were provided by the auditors during the year (2022: none).

7 Tangible Fixed Assets

Cost or 'Fair Value' on incorporation
Balance at 31 March 2022
Additions
Balance at 31 March 2023
Accumulated Depreciation
Balance at 31 March 2022
Charge for the year
Balance at 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Freehold
land and
buildings in
use
Freehold
properties
let on long
leases
Office
furniture
and
equipment
Computer
equipment
Plant and
mechanical
equipment
Total
£
£
£
£
£
£
5,564,766
300,000
146,772
117,955
300,298
6,429,791
-
-
10,110
2,519
148,333
160,962
5,564,766
300,000
156,882
120,474
448,631
6,590,753
778,591
23,572
88,624
92,284
146,264
1,129,335
75,241
2,142
8,438
20,059
36,917
142,797
853,832
25,714
97,062
112,343
183,181
1,272,132
4,710,934
274,286
59,820
8,131
265,450
5,318,621
4,786,175
276,428
58,148
25,671
154,034
5,300,456

‘Freehold land and buildings in use’ at 31 March 2023 includes £2,000,000 of land that is not depreciated (2022: £2,000,000).

36

Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

8 Investment Property

2023 2023 2022 2022
Cost Fair Value Cost Fair Value
£ £ £ £
Balance at beginning of the year 1,556,353 4,180,000 1,556,353 4,450,000
Unrealised (loss) on revaluation - (305,000) - (270,000)
Balance at end of the year 1,556,353 3,875,000 1,556,353 4,180,000

The charity’s investment property carried at a value of £4,180,000 as at 31 March 2022. In April 2023 the investment property was valued as at 31 March 2023 at £3,875,000. This valuation was based on the investment and market approach and represented a reduced scope assessment of the value of the property and relied on the most recent full valuation in March 2022. The property was revalued by an independent valuer, BNP Paribas Real Estate Advisory & Property Management UK Ltd, a professional firm of Chartered Surveyors external to Providence Row with extensive experience in the location and class of property being valued.

9
Other investments
Unitised investments held within Endowment fund
Balance at beginning of the year
Less: Disposals
Add: Acquisitions
Net (losses) / gains on revaluation
Balance at end of the year
Cash deposits at end of the year
Notice deposits (3 months or less)
Cash held in Endowment fund (capital account)
Total cash deposits at end of the year
Total other investments at end of the year		 2023
Cost
2023
Market Value
2022
Cost
2022
Market Value
£
£
£
£
729,805
859,378
734,510
825,203
(85,671)
(95,001)
(145,799)
(145,033)
97,286
97,284
141,094
141,094
-
(34,576)
-
38,114
741,420
827,085
729,805
859,378
556,041
556,041
543,948
543,948
15,118
15,118
21,287
21,287
571,159
571,159
565,235
565,235
1,312,579
1,398,244
1,295,040
1,424,613

37

Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

10 Debtors

Long term debtors (receivable after more than one year)
Rent deposits held by agents
Short term debtors
Trade debtors
Rent deposits held by agents
Service Charge deposits held by agents
Prepayments
Accrued income
Staff loans
Total Debtors		 2023
2022
£
£
10,384
10,384
156,008
116,959
74,071
123,504
82,835
106,309
33,555
32,163
7,253
-
1,037
1,937
365,143
391,256

11 Creditors: Amounts Falling Due Within One Year

11 Creditors: Amounts Falling Due Within One Year

Trade creditors
Tax and social security
Rent deposits held from commercial tenants
Grant payments received on account
Holiday pay accrual
Other accruals
Deferred income
Total		 2023
2022
Restated
£
£
59,164
22,110
36,980
35,779
10,399
11,097
74,808
164,405
41,494
40,210
261,499
196,118
223,952
130,554
708,296
600,273

12 Creditors: Amounts Falling Due After More Than One Year

Bank loan
Rent deposits held from commercial tenants
Total		 2023
2022
£
£
1,000,000
1,000,000
10,384
10,384
1,010,384
1,010,384

38

Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

13 Loan

2023 2022
£ £
Amounts falling due within 1 year - -
Amounts falling due within 1-2 years - -
Amounts falling due within 2-5 years 1,000,000 1,000,000
Total 1,000,000 1,000,000

The charity took a 5 year loan from Handelsbanken. The loan can be repaid at any time in full or instalments and it must be repaid before September 2026. The loan interest rate is 2% above the sterling base lending of the Bank. The base rate was 4.5% on 31st March 2023. During the year the interest paid was £41,411 (2022: £14,877).

14 Deferred Income

Balance brought forward at 31 March 2022
Amounts deferred
Amounts released
Balance carried forward at 31 March 2023		 2023
2022
£
£
130,554
358,298
497,204
431,433
(403,806)
(659,177)
223,952
130,554

15 Operating Leases

The table below sets out the future minimum lease payments under non-cancellable operating leases for the periods shown:

Office Equipment
Within one year
In one to two years		 2023
2022
£
£
24,029
13,086
13,186
21,427
37,215
34,513

Lease payments made during the year amounted to £23,915 (2022: £27,555).

39

Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

16 Endowment Fund

Investment Unrealised
Balance 1 managem't losses on Balance 31
April 2022 fees charged investments March 2023
£ £ £ £
Permanent Endowments
Endowment fund 840,337 (6,628) (34,576) 799,133

The Endowment fund represents investments, the capital of which forms the permanent endowment of the charity; only the income from the investments is available to be used for general charitable purposes (as an addition to unrestricted funds). Income of £16,258 (2022: £18,158) was received during the year.

17 Restricted Income Funds

17
Restricted Income Funds
Tangible fixed asset fund: Restricted
Advice & Support
Marie Celeste Samaritan Society: Hospital Discharge Project
Other Activities
The Horners' Company £5k
Society of the Holy Child Jesus
Katherine Lloyd
Morrisons Gardening
The Aldgate Business Partnership Ltd - Welcome Area
City of London Justice Rooms Charitable Trust - Employ & Progr
Sisters of the Holy Cross Charitable Trust - Welcome area
Vanguard Foundation - funding for Routes to Roots
The Forrester Family Trust
The Good Things Foundation
Charlotte Bonham Carter Charitable Trust
The Fuellers Charity
Food Service
The Rayne Foundation
Training & Employment
The Charlotte Bonham-Carter Charitable Trust
TGF-Hospital Routes to Root prjt(Streets of London)
Total Restricted Income Funds		 Balances
1 April 2022
Income Expenditure
Balances
31 March
2023
£
£
£
£
2,184,000
-
(56,000)
2,128,000
2,142
92,500
(87,805)
6,837
-
5,000
(5,000)
-
-
15,000
(15,000)
-
-
5,000
(5,000)
-
2,192
-
(1,377)
815
-
37,500
(37,500)
-
-
3,000
-
3,000
-
20,000
(20,000)
-
-
30,000
(30,000)
-
-
40,000
(40,000)
-
-
75,000
(75,000)
-
-
4,000
(4,000)
-
-
750
(750)
-
-
20,000
(20,000)
-
-
16,667
(16,667)
-
-
3,000
(3,000)
-
-
15,000
(15,000)
-
2,188,334
382,417
(432,099)
2,138,652

40

Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

18 Unrestricted Funds

18
Unrestricted Funds
Balances
1 April 2022
Restated
Income
Expenditure
Net transfers
between funds
Revaluation
Loss
Balances
31 March 2023
£
£
£
£
£
£
3,116,456
-
(86,797)
160,962
-
3,190,621
1,556,597
-
-
-
-
1,556,597
2,623,403
-
-
-
(305,000)
2,318,403
300,000
-
-
-
-
300,000
Tangible fixed asset fund: Unrestricted
Fixed asset fund: Investment Property
Revaluation reserve: Investment Property
Cyclical maintenance and repairs fund
Free Reserves
Contingency fund: Charity running costs
General funds - restated
Sub-total: Free Reserves
Total Unrestricted Funds
800,000
-
-
-
800,000
247,004
2,194,683
(2,050,623)
(160,962)
-
230,102
1,047,004
2,194,683
(2,050,623)
(160,962)
-
1,030,102
8,643,460
2,194,683
(2,137,420)
-
(305,000)
8,395,723

The balances on the unrestricted reserves are made up as follows:

Tangible fixed asset fund: Unrestricted

This fund represents the carrying value of the charity’s tangible fixed assets whose original acquisition or costs of construction were financed by unrestricted funds (or where the terms of a restricted grant or donation have been met once the asset has been acquired and the Trustees have accordingly transferred the corresponding amount from restricted funds). This includes part of the carrying value of freehold properties at the charity’s main Gunthorpe Street/Wentworth Street site (the Dellow Centre complex) and the Activity Centre at the same site.

Fixed asset fund: Investment Property / Revaluation reserve: Investment Property

These two funds together represent the fair value of the charity’s investment property, Sherrington Mews (formerly known as the Gunthorpe Street Workshops).

In accordance with regulations made under the Companies Act 2006 and the requirements of Charities SORP (FRS 102), a separate revaluation reserve is disclosed in relation to revaluation gains on the property, i.e. the difference between (i) the cost of the property when first recognised plus the value of capitalised additions at cost and (ii) the assessed fair value of the property at the end of the reporting period.

Cyclical maintenance and repairs fund

The Trustees have determined that there should be sufficient funds available in the future for major capital repairs to the charity’s buildings and planned maintenance and replacement of associated plant and equipment, as well as to provide a contingency reserve for potential major risks such as mechanical breakdown or structural defects impacting on property, plant and equipment.

The Board has maintained the Cyclical maintenance and repair fund at £300,000.

Contingency fund: Charity running costs

In order to protect the charity against significant unplanned variability in operating cash flow and in particular to prevent disruption of services to beneficiaries in the event of unexpected falls in income levels, the Trustees have set aside a contingency reserve whose value is determined with reference to the following factors:

41

Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

The fund was increased to £800,000 in the year ending 31 March 2021 and remains at the same level in the year ending 31 March 2023.

General funds

The General funds together with the Contingency fund (see above) represent the free reserves of the charity, i.e. those unrestricted funds, backed by cash (including cash deposit investments) which have not been designated (or ‘earmarked’) for a specific short or medium term purpose or otherwise as set out in relation to the remaining designated funds in the section above. The general reserve was £247,004 (restated) at the beginning of the year. The general fund has a balance at year end of £230,102.

19 Analysis of Net Assets Between Funds

Endowment Fund
Restricted income funds
Tangible fixed asset fund: Restricted
Other restricted funds
Unrestricted funds
Tangible fixed asset fund: Unrestricted
Fixed asset fund: Investment Property
Revaluation fund: Investment Property
Cyclical maintenance and repairs
Other designated funds
Contingency fund
General funds		 Tangible
fixed assets
Investment
property
Other
investments
Current
assets less
total
liabilities
Total
31 March
2023
£
£
£
£
£
-
-
799,133
-
799,133
2,128,000
-
-
-
2,128,000
-
-
-
10,652
10,652
3,190,621
-
-
-
3,190,621
-
1,556,597
-
-
1,556,597
-
2,318,403
-
-
2,318,403
-
-
300,000
-
300,000
-
-
-
-
-
-
-
299,111
500,889
800,000
-
-
230,102
230,102
5,318,621
3,875,000
1,398,244
741,643
11,333,508

20 Related Party Transactions

During the year the charity received donations from Trustees and related parties (including the Institute of Our Lady of Mercy and Mercy Union Generalate) totalling £13,090 (2022: £14,225). When Providence Row was founded in 1860, it was to the Sisters of Mercy of the Union of Great Britain and the Institute of Our Lady of Mercy that the founder turned to run the operation. Since incorporation in 2011 the Union and the Institute have the right to appoint one trustee each to the Board of Trustees.

Cluttons LLP have been appointed as advisors for the refurbishment of the Day Centre and the development of a buildings strategy. One of our Trustees is employed by Cluttons LLP. To ensure there was no conflict of interest an assessment panel was appointed to oversee the procurement process including interviews of all shortlisted contractors. The panel included a buildings specialist who is external to Providence Row. The project has been overseen by the CEO with progress reports regularly being presented to the full Board of Trustees. Total amount paid to Cluttons LPP during the year was £14,100 (2022: £28,260). There was no outstanding balance at the year end.

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Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

21 Trusts and Foundations’ income breakdown

----- Start of picture text -----
Funder name Amount
Julia and Hans Rausing 16,000
CHK Foundation 10,000
The Worshipful Company of Fan Makers 10,000
Feltmakers' Charitable Foundation 3,000
Leathersellers' Company Charitable Fund 15,000
Salters' Charitable Foundation 5,000
Horners' Charity Fund 5,000
29th May 1961 Charitable Trust 6,000
Marie Celeste Samaritan Society 87,330
The National Lottery Community Fund 57,575
Derwent London plc 2,000
Mitchell City of London Charity 2,500
Drapers’ Charitable Fund 10,000
City of London Justice Rooms Charitable Trust 2,000
Wheelwrights Charity 491
City Bridge Trust, Oak Foundation and Homeless Link 25,000
Oliver Stanley Charitable Trust 2,000
Sir Harold Hood's Charitable Trust 5,000
The Court of Aldermen’s Livery Cloth Grant 1,700
Forrester Family Trust 5,000
The Worshipful Company of Plumbers 1,050
William Arthur Rudd Memorial Trust 2,000
The Albert Hunt Trust 5,000
Henhurst Charitable Trust 600
Sir Halley Stewart Trust 500
Gowling WLG (UK) Charitable Trust 500
Cuckoo Hill Trust 1,000
East End Community Foundation 6,480
----- End of picture text -----

We would like to thank the numerous other smaller Charitable Trusts and Foundations that have very kindly supported our work over the 2022/23 financial year. Your support is also incredibly appreciated.

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Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

22 Prior year adjustment

The Trustees have adjusted the financial statements for the cumulative and appropriate treatment of historic underaccrued pension contributions. Comparative amounts have been restated accordingly. The effect of this adjustment is to increase creditors brought forward by £172,598 and reduce General Funds brought forward by the same amount.

The prior year adjustment has been summarised as follows:

The prior year adjustment has been summarised as follows:
Effect on Balance Sheet
Balance of creditors as previously stated
Prior year adjustment
Balance of creditors as restated
Effect on SOFA
Opening balance of funds at 1 April 2021/2022 as previously stated
Prior year adjustment 2021/22
Prior year adjustment 2020/21
Prior year adjustment 2019/20
Prior year adjustment 2018/19
Prior year adjustment 2017/18
Opening balance of funds at 1 April 2021/2022 as restated
Movement in total expenditure
Total expenditure as previously stated
Prior year adjustment
Total expenditure as restated		 2022
2021
£
£
427,673
605,656
172,600
143,472
600,273
749,128
11,844,731
11,892,107
29,128
-
28,935
28,935
30,078
30,078
39,895
39,895
44,564
44,564
172,600
143,472
11,672,131
11,748,635
2,308,347
2,330,833
29,128
28,935
2,337,475
2,359,768

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Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2023

23 2022 comparative SOFA

Statement of Financial Activities for the year ended 31 March 2022 (incororating an income and expenditure account)

Notes Unrestricted
Funds Restated Restricted Funds
Endowment
Fund
Total Funds
2022 Restated
£
£
£
£
Income and Expenditure
Income from:
Donations
Legacies
Sub-total: Donations and legacies
2a
Charitable activities
2b
Other trading activities
2c
Investments
2d
Other
2e
Total income
Expenditure on:
Raising funds
Raising donations and legacies
Investment management
Sub-total: Raising funds
Charitable activities
Advice and Support / Resource Centre
Recovery and Progression
E&T: Trainee Schemes, Food & Garden
E&T: Providence Row Bakery
Property let for charitable purposes
Sub-total: Charitable activities
Total expenditure
3
Net income/(expenditure) before net
(losses)/gains on investments
Net (losses)/gains on investments
Unrealised (losses) on investment property
8
Net gains on other investments
9, 16
Net movement in funds
Reconciliation of funds
Total funds brought forward - restated
Total funds carried forward
422,176
71,054
-
493,230
56,704
-
-
56,704
478,880
71,054
-
549,934
1,328,690
185,675
-
1,514,365
250
-
-
250
403,308
-
-
403,308
25,000
-
-
25,000
2,236,128
256,729
-
2,492,857
(476,428)
(30,194)
-
(506,622)
(144,577)
(202)
(9,443)
(154,222)
(621,005)
(30,396)
(9,443)
(660,844)
(757,839)
(180,938)
-
(938,777)
(361,183)
(11,439)
-
(372,622)
(234,101)
(129,591)
-
(363,692)
(826)
(24)
-
(850)
(689)
(1)
-
(690)
(1,354,638)
(321,993)
-
(1,676,631)
(1,975,643)
(352,389)
(9,443)
(2,337,475)
260,485
(95,660)
(9,443)
155,382
(270,000)
-
-
(270,000)
-
-
38,114
38,114
(9,515)
(95,660)
28,671
(76,504)
8,652,975
2,283,994
811,666
11,748,635
8,643,460
2,188,334
840,337
11,672,131

45