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2024-03-31-accounts

Trustees’ Annual Report and Financial Statements for the year ended 31 March 2024

Providence Row

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

Company number 07452798 Charity number 1140192

Website: www.providencerow.org.uk

@providencerow

@Providence_Row

/ProvidenceRow

Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2024

Board of Trustees

Elizabeth Canning (Chair) Bishop Nicholas Hudson Linda McHugh Jonathan Rhodes Richard Solomon (Honorary Treasurer) Paul Strange Anthony Tama Nicola Sewell Sophia Lee Xiu-Fei Kosasih

Patron

His Grace the Duke of Norfolk

Honorary Vice President

Fr. Peter Harris

Chief Executive Officer & Company Secretary Tom O’Connor

Auditors

Forvis 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 2024

Contents

s
Overview Page
Message from our CEO 4
Message from our Patron 5
About us 6
Annual Report
Our plans for the future – Building a community of support 7
Achievements and Highlights 7
Our Services 7
Our supporters and funders 10
Structure, governance and management 12
Organisational structure, management and key relationships 12
Financial summary 2023/24 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 2024 22
Balance sheet as at 31 March 2024 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 2024

Message from our CEO

Dear Friends,

During the last year, we have seen more demand for our services as the number of those facing a life on the streets sadly continues to increase. Many of our clients are experiencing homelessness for the first time. The cost of living crisis, shortage of housing, insecure private rental tenancies, mental and physical health issues, and substance use are all significant factors. As the need for support has grown, it has also become more difficult for charities to secure sustainable funding, with Local Authorities and donors being confronted by increasing demands on their own resources.

Despite the challenges, Providence Row has continued to welcome and support some of the most vulnerable people in our society with services that address their immediate needs and help them to look ahead with new hope. No one has been turned away and we have gone into the community to seek out those most at risk.

At the very heart of Providence Row is an unshakable belief in the dignity of every person and a strong sense of responsibility towards those who are most in need. This drives and inspires the work of our excellent team of colleagues and volunteers.

We depend on our valued partners and donors without whom our services could not continue. Thank you so much for your support. Together we can help many more people to thrive and leave homelessness behind for good.

TO'Connor TO'Connor (Dec 18, 2024 10:09 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 2024

Message from our Patron His Grace the Duke of Norfolk

As the Patron of Providence Row, I am happy to put my name to this year’s annual report, showcasing the vital work of our charity over the past year.

The support we provide to people experiencing homelessness remains as critical as ever. This year, we saw an increase in the number of individuals seeking our help as the cost of living crisis continued to take its toll.

In the face of these challenges, Providence Row has remained a lifeline for many, offering a safe and welcoming space for our clients. From warm meals and healthcare access to advice and guidance, our team has been unwavering in their commitment to supporting those in need.

But our impact goes beyond meeting immediate needs. This year, we have continued to empower our clients to make meaningful and lasting changes in their lives through our in-house training programmes, employability sessions, and tailored support for substance and alcohol use. We have also worked tirelessly to enhance our services, ensuring they meet the evolving needs of those we serve and give them the tools to thrive.

None of this would have been possible without the extraordinary generosity and dedication of our supporters, staff, and volunteers. Together, you have helped transform the lives of countless individuals affected by homelessness in East London, and for that, I am deeply grateful.

As we look ahead, let us remain steadfast in our mission, ensuring that Providence Row continues to be a safe space and a catalyst for change for those who need it most.

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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 2024

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 2023 London recorded the largest increase in England in the number of people estimated to be sleeping rough. There were 1,132 people this year compared to 858 people in 2022, an increase of 274 people or 32% . Annual count showed 10,053 rough sleepers spotted on London’s streets between April 2022 and March 2023 . In 2023 Tower Hamlets Council reported that the number of people who were homeless or at risk of homelessness and who sought their support increased by 25.6% **.

*Department for Levelling Up, Housing and Communities, Rough Sleeping Snapshot in England 2023 , statistics published February 2024.

** The London-only Combined Homelessness and Information Network (Chain)

*** Tower Hamlets statistics for rough sleeping and households dealt with under the homelessness provisions of the 1996 Housing Act.

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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 2024

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 our priorities, two major factors limited progress in recent years: 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 updated “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 2026 will be rigorous financial management, maximising opportunities for full cost recovery, increasing unrestricted income and maintaining a range of income streams.

To achieve our strategic objectives we will build on, consolidate and further expand our services in four priority areas:

ACHIEVEMENTS AND HIGHLIGHTS FOR THE YEAR

This year we saw an increased demand for our services as people struggled with the cost of living crisis. We are proud that with the dedication of our staff and volunteers and the support of our donors and partners we were able to continue to help and empower people experiencing homelessness in East London.

OUR SERVICES

In 2023/24, Providence Row's Health Service demonstrated significant impact including the recognition we received through the National Homeless Link Excellence Awards for our outstanding Health and Wellbeing Initiative. We have also managed to expand our clinical offerings and pilot a new nutritional service for substance users and rough sleepers.

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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 2024

Service Expansion and Innovation

Community Impact

Ongoing and Future Initiatives

We look forward to the continuation of our innovative projects, including the integration of new health services and expanding our Health Fair initiatives. Plans are underway to enhance our facilities and services further, including a potential expansion of weekend health provisions to provide more comprehensive support.

Resource Centre

An essential part of East London’s local community, our Resource Centre provides a safe space for vulnerable people and, last year, supported 1,021 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.

Reset

Our Reset Outreach and Referral Service and Reset Rough Sleeping Navigator Team helped 701 clients through harm reduction advice and support, and referral into drug & alcohol treatment and recovery services. The team has also supported service users to register with GP’s, and attend physical and mental health appointments.

Our Needle Exchange and Harm Reduction service has seen an increase in people from marginalised communities attending throughout the year, with a total of 181 individuals receiving support. We estimate that over 20,249 new and sterile needles, as well, as other harm reduction materials were distributed to service users.

Naloxone training and distribution has also increased, with 438 kits being distributed to service users and support agencies. Naloxone is a vital lifesaving drug that can reverse the effects of an opiate overdose.

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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 2024

The service has also seen its partnerships with external agencies increase, with more access to testing and prevention of blood borne viruses (BBV’s), removing barriers to support for our service users.

Outreach Psychotherapy

The Outreach Psychotherapy Service embarked on a transformative journey with a new tri-borough contract covering Tower Hamlets, the City of London and Hackney in August 2022. Since then, we have made a profound impact by assisting over 200 rough sleepers in these boroughs who have been grappling with mental health challenges. Our dedicated psychotherapists have played a pivotal role in empowering these individuals to not only secure stable accommodation but also to cultivate the autonomy needed to make informed decisions that serve their best interests. Through our interventions, we have facilitated access to essential support services such as accommodation assistance, drug and alcohol rehabilitation programs, health consultations, educational opportunities, and the vital process of re-establishing familial connections. Our commitment is unwavering as we continue to provide holistic care and guidance to those in need, fostering pathways to recovery, resilience, and a brighter future.

Progression & Training Service

In 2023/24, we continued our mission to empower individuals and communities through education and training. With 174 referrals to the service and 133 sessions offering Information, Advice, and Guidance (IAG), we've broadened our support network, ensuring wide accessibility to resources. 132 individuals were supported to create CVs, equipping them for the job market. 11 participants secured employment, marking a significant milestone in their journey towards self-sufficiency. Our commitment to diverse training pathways is strong. From catering to gardening and Level 2 Food & Hygiene certification, we have provided tailored programmes, empowering 48 individuals with valuable skills. Recognising the importance of digital literacy, 11 participants completed digital training modules, enhancing their ability to navigate the digital landscape confidently. 7 individuals achieved Level 2 Food & Hygiene certification, enhancing their employability within the food service industry. Additionally, 25 individuals completed employability training, equipping them with essential skills for navigating the job market.

Health & Wellbeing Fairs

Health & Wellbeing Fairs
Health or Wellbeing Service at Health Fair Total No.
GP Health Checks & Registrations 320 total attendance / 80 per event
Dental Screenings 52 assessments, 46 registrations
COVID / Flu vaccines 21 attendances
Blood Borne Virus Testing 45 interventions
Mental Health support 8 engagements
Fibro Scans and Hep C testing 12 attendances
Hearingchecks 37 treatments
Healthymeals 356 meals
Wellbeing activities 65 massages 54 haircuts
Health parcels 227 bags provided 57 per event
Pet support 2 animals
Nutritional advice and guidance 7 discussions including 3 assessments

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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 2024

Catering Service

Over the course of the year we provided 5,552 breakfasts and 8,615 lunches. In total 14,167 nutritious meals were provided for rough sleepers and those affected by homelessness who are engaged with our services.

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 46 staff (average monthly headcount), of whom 8 were part-time staff (2022-23 average monthly account: 42 staff, of whom 19 were part-time staff).

Our Supporters and Funders

We are grateful to all our supporters and funders for their support, from regular gifts to one off donations and fundraising initiatives.

Our Volunteers

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

Our volunteering:

This year, we've on-boarded 45 community volunteers who support various functions such as the kitchen, Welcome Area as well as our garden and our "Roots to Routes” projects. This initiative has been instrumental in connecting those experiencing isolation with supportive communities

We also introduced two new volunteer roles:

Moreover, our volunteers have played a crucial role in recruitment efforts by attending volunteer fairs and adding to our dynamic team. In October, we welcomed a new volunteer psychotherapy trainee who committed to providing a year of therapeutic support to clients.

Our collaboration with educational institutions has also flourished. We continued our successful partnership with the Institute for the International Education of Students (IES), welcoming two interns who brought unique skills and enthusiasm. A new partnership with Samford University allowed us to welcome

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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 2024

an international student volunteer, who contributed across multiple departments, including our Resource Centre and marketing team.

The Peer Mentor training programme resumed in March 2023 with two individuals starting the course. Upon completion, they will serve as integral team members for a year, bringing valuable perspectives and skills. In a notable achievement, one of our volunteers transitioned into a permanent staff position in February 2024, underscoring the role of volunteers in nurturing skilled professionals within the sector.

Companies

We are incredibly grateful for the support of our company partners who donated £219,565 (£237,662 in 2022/23) 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, Land Securities, Mace, Speedy Services, Beazley, FSCS, YouView, AIG Insurance, Telent Technology, VARO Partners, Generali, Empiric, Howden Group, Frasers Property and Hamilton Group

Communities

Thanks to continued support from a number of community groups we raised £126,780 (£81,952 in 2022/23). 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, The Church of St Botolph Without Bishopsgate; St Sepulchre-without-Newgate, City of London School, the Young City Catholics, ASDA 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 £527,649 (£357,239 in 2022/23). Thanks to the generosity of the Trusts and Foundations that supported us this year we were able to be there for our clients during another extremely challenging year.

Major Donors

We stewarded some key existing relationships with Major Donors over the year (while developing new relationships too) which helped secure £60,500 towards our work. This programme will be further developed over the coming years.

Legacy

We received £1,500 (£80,237 in 2022/23) 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 £89,262 (£110,936 in 2022/23) during a year in which individual giving has shown a downward trend across the sector owing to the challenging economic 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 2024

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.

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). 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 (and can stand for re-election) at the Annual General Meeting, those who have been longest in office since their last appointment or reappointment being subject to retirement by rotation.

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 2024 Annual General Meeting.

ORGANISATIONAL STRUCTURE, MANAGEMENT AND KEY RELATIONSHIPS

The Board of Trustees meet at least quarterly. These quarterly meetings are preceded by meeting of the Finance Committee. 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.

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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 2024

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’s 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 2023/24

Overview of results

The charity recorded a deficit of £518,740 before net unrealised gain on investments of £94,168 and unrealised loss of £461,000 on evaluation of the investment property. This compares to a surplus of £953 before net unrealised loss on investments of £34,576 and net unrealised loss on the investment property of £305,000 in 2022/23.

Income

Total income for 2023/24 was £2,939,574 (2022/23 was £2,577,100).

Income
£'000
% of total
2023/24		 £'000
% of total
2022/23
Donations
569.1
19.4%		 532.9
20.7%
Donatedgoods,facilities and services
24.3
0.8%		 6.3
0.2%
Legacies
1.5
0.1%		 80.2
3.1%
Charitable activities(see below)
2,005.8
68.2%		 1,609.7
62.5%
Other tradingactivities
0.3
0.0%		 0.1
0.0%
Investment income
313.6
10.6%		 322.9
12.5%
Other income
25.0
0.9%		 25.0
1.0%
Total
2,939.6
100.0%		 2,577.1
100.0%
Income from charitable activities
£'000
% of total
2023/24		 £'000
% of total
2022/23
Local authoritycontracts
1,342.1
66.9%		 999.9
62.1%
Performance relatedgrants
454.7
22.7%		 254.9
15.8%
Rents from the Dellow Centre leases
209.0
10.4%		 354.9
22.1%
Total
2,005.8
100.0%		 1,609.7
100.0%

Total income for the year increased by £362,472 (14.1%) in relation to 2022/23 income. This is mainly due to £510K increase in Services, £60K interest/Dividend income and a £230K decrease in rental income.

Expenditure

Total expenditure for 2023/24 was £3,458,314 (2022/23 was £2,576,147), an increase of £882,167 (34.2%). This increase is due to £320K cost increase in Services which is reflected in the increased income

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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 2024

outlined above, £280K buildings related cost increases which are part of a building’s investment strategy, and some one-off support costs totalling £180K.

Expenditure
£'000
% of total
2023/24		 £'000
% of total
2022/23
Costs of raisingdonations and legacies
690.3
20.0%		 403.1
15.6%
Costs of investment management
240.1
6.9%		 139.1
5.4%
Charitable activities(see below)
2,527.9
73.1%		 2,034.0
79.0%
Total
3,458.3
100.0%		 2,576.1
100.0%
Expenditure on charitable activities
£'000
% of total
2023/24		 £'000
% of total
2022/23
Advice and Support/Resource Centre
1,353.7
53.5%		 1,107.5
54.4%
Recoveryand Progression
515.3
20.4%		 445.4
21.9%
Trainee Schemes,Food & Garden
658.9
26.1%		 481.1
23.7%
Total
2,527.9
100.0%		 2,034.0
100.0%

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. 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.

Investment performance against objectives

Over the 12-month period to 31 March 2024, the charity’s Endowment Fund generated an overall positive return of £110,601 (2022/23: negative return of £24,946), incorporating investment income of £23,194 (2022/23: £16,258), net unrealised gain of £94,168 (2022/23: unrealised loss of £34,576) and management fees of £6,761 (2022/23: £6,628).

The charity’s managed cash deposit portfolio generated income in the year of £27,698 (2022/23: £12,094).

The charity’s investment property generated total income (rent and service charge) of £219,843 during the year, a decrease of 21% over the comparative figure for 2022/23 of £278,826. This decrease is due 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 2024

vacancy levels during the year. Rental income was £165,789 (2022/23: £219,772). Direct costs of investment property management in 2023/24 (before allocated support costs) totalled £226,394 (2022/23: £151,968).

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 reports to the Board of Trustees on a regular basis regarding 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. All our commissioned services are due for re-tendering, and re-structuring over the next 18 months. Whilst this presents us with the risk of losing some priority services, it also offers the opportunity to update and renew our established partnerships and service provision.

We now have an established fundraising programme across a range of income streams. This has grown year on year and we forecast sustained growth over the next three years.

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 Gunthorpe Street/Wentworth Street and is owned freehold. The effective management of this and of the charity’s Resource 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 hostel accommodation for vulnerable people. This was occupied and operated by a Housing Association for many years and generated a substantial rental income for the charity. The tenant vacated the building in October 2023. We have undertaken a transparent bidding process and secured a new provider. This new provider will undertake a full refurbishment of the hostel accommodation. At 31[st] March 2024 this project was ongoing (hence some losses of rental income). At the date when this report was approved, Providence Row had agreed a 40 year lease with a new provider. This guaranteed long term rental income and the provision of appropriate and well maintained accommodation for residents.

• Providence Row’s investment property, Sherrington Mews, lies adjacent and to the south of the Dellow Centre and provides commercial office space arranged in small suites. The property is

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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 2024

managed by a third-party professional property manager. During the year some tenants vacated the premises and those units remained vacant.

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 2024 the charity held total funds of £10,447,936 (2022/2023: £11,333,508), 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 2024, the actual level of free reserves (including the contingency fund) was £769,653 (2022/23: £1,030,102).

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.

Going concern

An established and robust fundraising programme is in place 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.

We are currently in a time of transition as we commence the full refurbishment of the hostel with a new provider, and plan for the upgrading and modernisation of our Resource Centre. Trustees remain confident that the associated financial deficit for 2023/24 does not represent a long term risk to the charity.

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 2024

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.

Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Auditors

Forvis 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 05/12/2024 and signed on their behalf by

E M Canning Richard Solomon E M Canning (Dec 18, 2024 09:00 PST) Richard Solomon (Dec 19, 2024 15:26 GMT) ……………………………..…..……..…………… …………..………………………………………….. Elizabeth Canning – Chair Richard Solomon – Honorary Treasurer

17

Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2024

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 2024 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 2024

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 2024

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 2024

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 (Dec 19, 2024 17:28 GMT)

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

Chartered Accountants and Statutory Auditor

2[nd] Floor, 6 Sutton Plaza, Sutton Court Road, Sutton, Surrey, SM1 4FS 19-Dec-2024 Date: ………………………………………………..

21

Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2024

STATEMENT OF FINANCIAL ACTIVITIES

For the year ended 31 March 2024

Statement of Financial Activities for the year ended 31 March 2024

(incororating an income and expenditure account)

Notes Unrestricted Funds
Restricted
Funds
Endowment
Fund
Total Funds 2024
Total Funds
2023
£
£
£
£
£
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
Other trading activities
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 (expenditure)/income before net
(losses)/gains on investments
Net (losses) on investments
Unrealised (losses) on investment property
8
Net gains/(losses) on other investments
9, 16
Net movement in funds
Reconciliation of funds
Total funds brought forward (as previously stated)
Total funds carried forward
502,705
90,662
-
593,367
539,142
1,500
-
-
1,500
80,237
504,205
90,662
-
594,867
619,379
1,551,091
454,707
-
2,005,798
1,609,670
312
-
-
312
129
313,597
-
-
313,597
322,922
25,000
-
-
25,000
25,000
2,394,205
545,369
0
2,939,574
2,577,100
(659,425)
(30,840)
-
(690,265)
(403,077)
-
-
-
-
-
(233,387)
-
(6,761)
(240,148)
(139,107)
(892,812)
(30,840)
(6,761)
(930,413)
(542,184)
(1,096,231)
(257,428)
-
(1,353,659)
(1,107,512)
(506,358)
(8,967)
-
(515,325)
(445,353)
(357,568)
(301,349)
-
(658,917)
(481,098)
-
-
-
-
-
-
-
-
-
-
(1,960,157)
(567,744)
-
(2,527,901)
(2,033,963)
(2,852,969)
(598,584)
(6,761)
(3,458,314)
(2,576,147)
(458,764)
(53,215)
(6,761)
(518,740)
953
(461,000)
-
-
(461,000)
(305,000)
-
-
94,168
94,168
(34,576)
(919,764)
(53,215)
87,407
(885,572)
(338,623)
8,395,723
2,138,652
799,133
11,333,508
11,672,131
7,475,959
2,085,437
886,540
10,447,936
11,333,508

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.

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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 2024

Registered company number: 07452798 Charity number: 1140192

BALANCE SHEET

As at 31 March 2024

BALANCE SHEET
As at 31 March 2024
NOTES £ Total funds
2024
Total funds
2023
£
£
£
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
Tangible fixed asset fund: Restricted
Other restricted income funds
Unrestricted Funds
18
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
5,266,919
3,414,000
1,520,939		 5,318,621
3,875,000
1,398,244
479,327
1,576,690		 365,143
2,095,180

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 42 were approved by the Board of Trustees on 05/12/2024 and signed on its behalf by: E M Canning (Dec 18, 2024 09:00 PST) ~~……………………………~~ E M Canning ….……………………....…. Richard Solomon (Dec 19, 2024 15:26 GMT) ~~…………………………………~~ Richard Solomon ………………………… Elizabeth Canning – Chair Richard Solomon – Honorary Treasurer

The notes on pages 25 to 42 form an integral part of these financial statements

23

Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2024

STATEMENT OF THE CASHFLOWS

For the year ended 31 March 2024

Statement of Cash Flows for the year ended 31 March 2024

Notes
a)
Reconciliation of net expenditure to net cash flow from operating
activities
Net (expenditure) for the year (as per the statement of financial
activities)
Adjustments for:
Depreciation charges, impairment and disposal
3,7
Unrealised loss on investment property
8
Net (gains)/loss on other investments
9
Other non-cash Income
Dividends, interest and rents from investments per the SOFA
Investment management costs per the SOFA
(Increase)/decrease in debtors (operating activities)
Increase in creditors (operating activities)
Net cash (used in)/provided by operating activities
Notes
b)
Statement of Cash Flows
Net cash (used in)/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 (used in)/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
2024
Total Funds
2023
£
£
(885,572)
(338,623)
189,575
142,797
461,000
305,000
(94,168)
34,576
-
-
(313,597)
(322,922)
240,148
139,107
(114,184)
26,113
91,259
108,022
(425,539)
94,070
Total Funds
2024
Total Funds
2023
£
£
(425,539)
94,070
313,597
322,922
(240,148)
(139,107)
(137,873)
(160,962)
(215,263)
(97,284)
249,424
95,001
(30,263)
20,570
(455,802)
114,640
2,666,339
2,551,699
2,210,537
2,666,339
Total Funds
2024
Total Funds
2023
£
£
1,576,690
2,095,180
583,739
556,041
50,108
15,118
2,210,537
2,666,339

24

Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2024

Notes to the Financial Statements For the year ended 31 March 2024

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

25

Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2024

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)

26

Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2024

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.

Investment management costs

Investment management costs include the costs of:

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.

27

Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2024

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.

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.

28

Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2024

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).

29

Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2024

2 Income

a)

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
2024
Total
2023
Total
£
£
£
£
131,575
-
131,575
99,018
140,385
79,180
219,565
237,662
115,298
11,482
126,780
81,952
18,188
-
18,188
11,918
24,317
-
24,317
6,270
72,942
-
72,942
102,322
502,705
90,662
593,367
539,142
1,500
-
1,500
80,237
504,205
90,662
594,867
619,379

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 £16,555, none of which was in restricted income (2023: £12,661).

‘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
Pro bono legal advice to the charity
Other donated services
Total donated goods, facilities and services
Donated furniture, electronic and computer equipment, catering equipment
capitalised as tangible fixed assets		 2024
2023
£
£
18,570
1,147
3,638
6,270
962
24,317
6,270

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.

30

Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2024

b)

London Borough of Tower Hamlets (LBTH): Advice &
Support - Rough Sleepers Services
LBTH Drug & Alcohol Action Team: Substance misuse
Worker & Needle Exchange, Women's Service
City of London: Recovery & Progression Service
Hackney
Sub-total: Local Authority Contracts for Services
Performance-related grants - Public Sector
Performance-related grants - Trusts & Foundations
Rents and charges from non-investment properties let
in furtherance of charitable purposes
Total income from charitable activities		 Unrestricted
Funds
Restricted
Funds
2024
Total
2023
Total
£
£
£
£
248,475
-
248,475
301,753
594,750
-
594,750
358,647
321,863
-
321,863
226,476
87,324
-
87,324
104,986
1,252,412
-
1,252,412
991,862
89,675
-
89,675
8,000
-
454,707
454,707
254,917
209,004
-
209,004
354,891
1,551,091
454,707
2,005,798
1,609,670

Income from government sources is summarised in the table below:

c)
Local Authority Contracts for Services (see above)
Other grants - Public sector
London Borough of Tower Hamlets
Total income from government sources
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
2024
Total
2023
Total
£
£
£
£		 Unrestricted
Funds
Restricted
Funds
2024
Total
2023
Total
£
£
£
£
1,252,412
-
14,675
-
75,000
-		 1,252,412
991,862

14,675
-

75,000
8,000
1,342,087
-		 1,342,087
999,862
2024
Total
2023
Total
£
£
312
35
-
94
312
129

c)

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

31

Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2024

d)

d)
Rent and charges from commercial tenants at
investment property (Sherrington Mews)
Dividend and interest income from other investments
Total investment income		 2024
Total
2023
Total
£
£
223,130
283,705
90,467
39,217
313,597
322,922

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

e)
Ground rents from non-investment freehold property
let on long leases
Total other income		 2024
Total
2023
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
Sub-total: costs of charitable activities
Total expenditure		 Direct
costs
Support
Costs
2024
Total
2023
Total
£
£
£
£
540,127
150,138
690,265
403,077
233,155
6,993
240,148
139,107
773,282
157,131
930,413
542,184
1,059,229
294,430
1,353,659
1,107,512
403,239
112,086
515,325
445,353
515,598
143,319
658,917
481,098
1,978,066
549,835
2,527,901
2,033,963
2,751,348
706,966
3,458,314
2,576,147

32

Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2024

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
Sub-total: costs of charitable activities
Total expenditure		 Governance
Finance
HR / Office
Admin
IT /
Telecoms
Property
(Own Use)
Other
Central Depreciation
2024
Total
2023
Total
£
£
£
£
£
£
£
£
£
5,503
3,364
19,989
7,332
60,493
12,795
40,662
150,138
53,272
2,376
1,452
-
3,165
-
-
-
6,993
4,185
7,879
4,816
19,989
10,497
60,493
12,795
40,662
157,131
57,457
10,792
6,597
39,199
14,379
118,630
25,093
79,741
294,431
146,373
4,108
2,511
14,923
5,474
45,161
9,553
30,356
112,086
58,859
5,253
3,211
19,081
6,999
57,745
12,214
38,815
143,318
63,584
20,153
12,319
73,203
26,852
221,536
46,860
148,912
549,835
268,816
28,032
17,135
93,192
37,349
282,029
59,655
189,574
706,966
326,273

During 2023/24 the charity incurred a significant number of one-off support costs mainly in regard to the temporary closure of the hostel and plans for its future development, and administrative 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:

33

Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2024

4 Staff Cost and Employee Benefits

4 Staff Costs and Employee Benefits

Wages and salaries (inc accrual for unpaid annual leave)
Employers National Insurance contributions (social security costs)
Employer's contribution to defined contribution pension schemes
Agency staff (including agency fees)
Insurance premiums: group life assurance and employee personal accident
Total		 2024
2023
£
£
1,658,869
1,373,358
172,006
159,925
65,030
59,288
199,512
102,808
6,910
6,897
2,102,327
1,702,276

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 (2023: none). No Trustee received reimbursement of expenses incurred for services provided to the charity during the year (2023: 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 (2023: two). During the year there was one employee whose total employee benefits fell within the banding £70,000 to £79,999 (2023: one). During the year there was one employee whose total employee benefits fell within the banding £80,000 to £89,999 (2023: one). Employer payments in the year to a defined contribution pension scheme in respect of these employees totalled £6,462 (2023: £6,462).

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 £302,085 (2023: £285,231).

5 Staff Numbers

The average monthly head count (number of staff employed) in the twelve month period ending 31 March 2024, analysed between full-time and part-time staff, was:

Full-time staff
Part-time staff
Total Average Head Count		 2024
2023
38.8
33.0
7.3
8.6
46.1
41.6

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		 2024
2023
7.9
5.5
29.9
27.2
5.1
5.7
42.9
38.4

34

Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2024

6 Amounts Payable to the Auditors

Audit fee:
Current Year
Non-audit services
Total		 2024
2023
£
£
23,760
16,854
2,900
2,900
26,660
19,754

No other services were provided by the auditors during the year (2023: none).

7 Tangible Fixed Assets

Cost or 'Fair Value' on incorporation
Balance at 31 March 2023
Additions
Disposals
Balance at 31 March 2024
Accumulated Depreciation
Balance at 31 March 2023
Charge for the year
Impairment
Disposals
Balance at 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023		 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
156,882
120,474
448,631
6,590,753
-
-
46,312
19,467
72,094
137,873
-
-
(25,632)
(54,816)
-
(80,448)
5,564,766
300,000
177,562
85,125
520,725
6,648,178
853,832
25,714
97,062
112,343
183,181
1,272,132
75,240
2,143
13,060
9,471
45,621
145,535
-
-
44,040
-
-
44,040
-
-
(25,632)
(54,816)
-
(80,448)
929,072
27,857
128,530
66,998
228,802
1,381,259
4,635,694
272,143
49,032
18,127
291,923
5,266,919
4,710,934
274,286
59,820
8,131
265,450
5,318,621

‘Freehold land and buildings in use’ at 31 March 2024 includes £2,000,000 of land that is not depreciated (2023: £2,000,000).

35

Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2024

8 Investment Property

Balance at beginning of the year
Unrealised (loss) on revaluation
Balance at end of the year		 2024
Cost
2024
Fair Value
2023
Cost
2023
Fair Value
£
£
£
£
1,556,353
3,875,000
1,556,353
4,180,000
-
(461,000)
-
(305,000)
1,556,353
3,414,000
1,556,353
3,875,000

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. In March 2024 the charity used the MSCI property index. For Central London offices the index fell 13.5% between March 2023 and March 2024.

9 Other investments

9
Other investments
2024 2024 2023 2023
Cost Market Value Cost Market Value
£ £ £ £
Unitised investments held within Endowment fund
Balance at beginning of the year 741,420 827,085 729,805 859,378
Less: Disposals (225,311) (249,424) (85,671) (95,001)
Add: Acquisitions 215,263 215,263 97,286 97,284
Net gains / (losses) on revaluation - 94,168 - (34,576)
Balance at end of the year 731,372 887,092 741,420 827,085
Cash deposits at end of the year
Notice deposits (3 months or less) 583,739 583,739 556,041 556,041
Cash held in Endowment fund (capital account) 50,108 50,108 15,118 15,118
Total cash deposits at end of the year 633,847 633,847 571,159 571,159
Total other investments at end of the year 1,365,219 1,520,939 1,312,579 1,398,244

36

Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2024

10 Debtors

Long term debtors (receivable after more than one year)
Rent deposits held by agents
Long term lease agent fees
Short term debtors
Trade debtors
Rent deposits held by agents
Service Charge deposits held by agents
Prepayments
Accrued income
Staff loans
Total Debtors		 2024
2023
£
£
10,384
10,384
24,000
-
310,686
156,008
33,018
74,071
40,276
82,835
38,283
33,555
20,845
7,253
1,835
1,037
479,327
365,143

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		 2024
2023
£
£
120,243
59,164
40,218
36,980
56,274
10,399
33,967
74,808
40,306
41,494
315,472
261,499
193,075
223,952
799,555
708,296

12 Creditors: Amounts Falling Due After More Than One Year

Bank loan
Rent deposits held from commercial tenants
Total		 2024
2023
£
£
1,000,000
1,000,000
10,384
10,384
1,010,384
1,010,384

37

Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2024

13 Loan

Amounts falling due within 2-5 years
Total		 2024
2023
£
£
1,000,000
1,000,000
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 5.75% on 31st March 2024. During the year the interest paid was £73,712 (2023: £41,411).

14 Deferred Income

14
Deferred Income
Balance brought forward at 31 March 2023
Amounts deferred
Amounts released
Balance carried forward at 31 March 2024		 2024
2023
£
£
223,952
130,554
477,178
497,204
(508,055)
(403,806)
193,075
223,952

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		 2024
2023
£
£
21,391
24,029
10,665
13,186
32,056
37,215

Lease payments made during the year amounted to £23,915 (2023: £23,915).

38

Providence Row - Helping homeless and vulnerable people since 1860 Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2024

16 Endowment Fund

Permanent Endowments
Endowment fund		 Balance 1
April 2023
Investment
managem't
fees charged
Unrealised
gains on
investments
Balance 31
March 2024
£
£
£
£
799,133
(6,761)
94,168
886,540

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 £23,194 (2023: £16,258) was received during the year.

39

Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2024

17 Restricted Income Funds

17
Restricted Income Funds
Balances
1 April 2023
Income Expenditure
Balances
31 March
2024
£
£
£
£
2,128,000
-
(56,000)
2,072,000
6,837
101,078
(104,673)
3,242
Tangible fixed asset fund: Restricted
Marie Celeste Samaritan Society: Hospital Discharge Project
SGF-Big Lottery Fund -
71,150
(71,150)
-
Society of the Holy Child Jesus
Morrisons Gardening
The Aldgate Business Partnership Ltd - Welcome Area
City of London Justice Rooms Charitable Trust - Employ & Progres
The Good Things Foundation
Charlotte Bonham Carter Charitable Trust
The Rayne Foundation
Jan and Catherine Nasmyth Charitable Foundation
Streets of London
The Albert Hunt Trust
General Corporate Restricted
The Adint Charitable Trust
The Charles Plater Trust
Landsec
General Community Restricted
The Worshipful Company Of Chartered Secretaries & Administrator
The Hobson Charity
The G Foundation
Beazley Group
City of London - City Bridge Foundation
Derwent-Health & Wellbeing Fair
CHK Foundation
The Good Things Foundation (Capability Grant)
Just FACT – The National Lottery Climate Action Fund
Tower Hamlet Mayor Community Fund
Training & Employment
Streetsmart
TGF-Gardening TS (Charlotte Marshall Charitable Trust)
TGF-Trainee Scheme(M.Watson Charitable Trust)
TGF-SIB
Total Restricted Income Funds		 -
10,000
(10,000)
-
815
-
(620)
195
-
50,000
(50,000)
-
3,000
3,500
(6,500)
-
-
75,000
(75,000)
-
-
5,000
(5,000)
-
-
25,000
(25,000)
-
-
20,000
(20,000)
-
-
15,000
(15,000)
-
-
7,000
(7,000)
-
-
1,780
(1,780)
-
-
10,000
(10,000)
-
-
18,750
(18,750)
-
-
25,000
(25,000)
-
-
1,482
(1,482)
-
-
2,000
(2,000)
-
-
8,000
(8,000)
-
-
10,000
(10,000)
-
-
2,400
(2,400)
-
-
20,000
(20,000)
-
-
3,333
(3,333)
-
-
10,000
-
10,000
-
3,600
(3,600)
-
-
2,750
(2,750)
-
-
10,417
(10,417)
-
-
10,000
(10,000)
-
-
1,800
(1,800)
-
-
2,500
(2,500)
-
-
18,829
(18,829)
-
2,138,652
545,369
(598,584)
2,085,437

40

Providence Row - Helping homeless and vulnerable people since 1860

Trustees’ Annual Report and Financial Statements for the Year Ended 31 March 2024

18 Unrestricted Funds

18
Unrestricted Funds
Balances
1 April 2023
Income Expenditure
Net transfers
between
funds
Revaluation
Loss
Balances
31 March 2024
£
£
£
£
£
£
3,190,621
-
(133,575)
137,873
-
1,556,597
-
-
-
-
2,318,403
-
-
-
(461,000)
3,194,919
1,556,597
1,857,403
300,000
-
(52,613)
(150,000)
-
97,387
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
Sub-total: Free Reserves
Total Unrestricted Funds
800,000
-
-
(100,000)
700,000
230,102
2,394,205
(2,666,781)
112,127
-
69,653
1,030,102
2,394,205
(2,666,781)
12,127
-
769,653
8,395,723
2,394,205
(2,852,969)
-
(461,000)
7,475,959

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. During the year the charity transferred £150,000 from cyclical maintenance to general funds towards funding of capital expenditure towards the building and Day Centre improvements.

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 2024

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.

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
2024
£
£
£
£
£
-
-
886,540
-
886,540
2,072,000
-
-
-
2,072,000
-
-
-
13,437
13,437
3,194,919
-
-
-
3,194,919
-
1,556,597
-
-
1,556,597
-
1,857,403
-
-
1,857,403
-
-
97,387
-
97,387
-
-
-
-
-
-
-
537,012
162,988
700,000
-
-
-
69,653
69,653
5,266,919
3,414,000
1,520,939
246,078
10,447,936

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 £3,100 (2023: £13,090). 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 to project manage the process for agreeing the new hostel lease and for the refurbishment of the Resource Centre. 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. Progress reports are regularly presented to the full Board of Trustees. The total amount paid to Cluttons LPP for the project during the year was £13,734 (2023: £14,100). There was no outstanding balance at the year end.

21 Post Balance Sheet Event

On 3 December the Charity was notified that it will be a beneficiary of a significant legacy, in the region of £760,000.

42