CARITAS ANCHOR HOUSE bomelessness TRUSTEES ANNUAL REPORT AND FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Company Reglstration Number: 08075329 (England and Wales) RegSstered Charlty Number. 1147794 RSH ReBlstratlon 4841
CARITAS ANCHOR HOUSE CONTENTS Pale Trusteeg Annual Repryt 1-13 Independent Audltorfs Report 14-16 Statement of Flnanclal Artivltl•s 17 Balantt Sheet Statement of Cash Hows Note5 to Financlal Ststements 20-32
CARITAS ANCHOR HOUSE CARITAS- ANCHOR HOUSE TRUSTEES. ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021 The Trustees present their report and financial 5tstements for the year ended 31 March 2021. The report. whl¢h Constitutes a trustees. report for the purpose5 of charity legislation and a director< report for the purposes of company legislation. ha5 been prepared in accordan with Part Vlll of the Charities Act 2011. The financlal statements have been prepad in accordan with the a¢counting policie5 set out In note l and comply with the charitablè cornpany's Memorandum and Articles of As$0¢iation, applicable laws. the Companies Act 2(X)6 and the requirements of the Statement of Recommended Practtce"Accounting and ReportinE by Charities" SORP 2015 IFRS 1021 ISe¢ond bulletin effective January 20191 and the requirements of the Statement of Recommended Practice ISORPI Accounting by Reglstered S¢xial Housing Pmider5. Reference and Admlntstrntl¥e InforntIOn Constltutlon The charitsble company 15 8overned by its Memorandum and Artide5 of Association. The members of the Board of Trustees are the companvs directors ond trustees of the Charity. The Trustees who held office during the year under review and up to the date of this report are as follows Trustees Mr Simon Hall Mr Charles Abel Smith Ms Emma Butterworth Mr Patrick Davis Mrs Emer Delaney Mrs Caesar Gordon Mr Andrew Haines Father Dominic Howarth Sr. Teresa Ann Hughes CRSS Mrs Cate Kirkbride Mr Graeme McLean Mr Robert Townsend Mrs Sarah Wright Father james Mackay Matthew Williams Desmond Patrick Connor5 Chair Resigned 30 May 2021 Resigned 2 July 2020 Resigned I September 2020 Resigned 31 March 2021 Resigned 22 October 2020 Appointed 13 October 2020, Resigned 9 Marth 2021 Appointed 20 September 2020 Appointed 16Juty 2021 We have supported the operation of thefollowing Sub-commrttees.. l. Finance, Audit, Governance, and Risk SuKommittee 2. People & Culture Sub-committee 3. Execijtive Sub-committee 4. Premises Management Sublommrttee 5. Frontline Services Quality Assurance and Impart SutF 6. Values su1cOMmittee Committee Prln¢lpal Address Caritas Anchor House 81 Barking Road Canning Town London E16 4HB Audltor.. Haysmacintyre LLP. 10 Queen Street Place, London, EC4R IAG Solltitors.. Bates Wells. 10 Queen Street Place, London, EC4R 18E 8ankers: Barclays. UK Banking. I Churd)ill Place. London E14 5HP and NatWesL 1-11 The Broadway. London. E15 4DX Cknrty rtgislwed in Englond ond Wol95 1147794 Compjny limi*d by gvorontee 080f539
CARITAS ANCHOR HOUSE CARITAS- ANCHOR HOUSE TRUSTEES, ANNUAL REPORT {contlnu¢d) FOR THE YEAR ENDED 31 P4lARCH Z021 Ab¢xrt Us Carits5 Anchor House ICAHI is a homelessnes5 charity. and for over 50 years has provided a safe place and support lor people to rebuild their Irve5. We are based in the London BorouBh of Newham which has the highest levels of homelessness per capita in the country. A5 a result. there is more demand for our services than ever before. Durin8 the last year we have reflected on our purpose and our values and alonBside our team. our residents and manv other stakeholders to our work. We have created a new mission statement and a core set of values which will guide our work going forward. Our mission is to bulld hope, enable lasting chan8e and end homelessness for people in East London. Ow values guide our interactions and decision-makin8 proo5ses at all levels within the organisatiort. They are.. Compas51on- we care about people. value thr views and eXper1ere5 and putthem at the heart of all we do. Inclwlon- we celebrate diversity. promote indusTwty and respect, and challenge inequality. Growth- we support people to breakthrou8h barriers and fvlfil their hopes and potential. Collaboratlon- we're stronger and can have è bigger impact when we work in partnership5 and build 311Sances. Our service combines the provisiort of a Safe placeto live for¥ulnerable aduks experiencing homele55ness, wlth in-house delivery fo¢usin8 on physical and mental heakh. Complex health issues, education. employment, financial literacy and tenanry 5U5tainment. Each person who walks through our doors re¢eNes a hjll assessment of their needs and a bespoke programme of in-house and external services created to best preparè that individual for Independent living. We have 140 bed-spaces making Caritas Anchor House the largest provider of homelessness ServIS in Newham, and one of the largest hostel Services in the country. These bed-spaces are shared between 40 setvices- our core h05tel and our Asse55ment Hub. The AsseMent Hub grew from 20 to 39 bed spaces over the course of a year and included prO$10n for those in the community with no re¢ourse to publicfunds and who are often unable to access homelessness servlces. We are proud to art as a beacon of hope. In the year endin8 31st March 2021. we accommodated and supported 278 people, and helped 137 to move on p05ftivety from our services. 95 left homelessness behind for good and moved into their own homes, and 42 moved into short-term accommodation such a5 Other support Servi$. Richard was one such person. who has since moved into his own home. He said, -I'd been o cob driverft*r20 yeors ond hod o comfortuble life, but when I lost my portner to concer, my worfd collupsedandlended up on the streets. When lfirst urrived at Coritos Anchor House. Ididn't think IcoLtld rebuild my life. But being somewhere safe t7ndknowing l Glwoys hodsomeone there to tolk to keptme gng. I'dbeen woiting nftne monthsfor ¢ounselling, but I hod o cour)sellor within three weeks of my keyworkerfinding out My keyworker reg(J1¢7rty keeps in touch to how l om and if i need ony help. slowly butsurety. Istarted to reconstruct mylife. My outlook hus chonged completely ond it hos soved my life without o shadow of a doubt. iftel Ilke there hope,. o chonce thot I con rebuild rnypositn in society." Structure, Goveman¢e & Management CAH is a registered charity and company limited by 8uarantee as well as a Registered Provider of S¢xial Housing. We are regulated by a number of bodies. including the Charity commi10n. Companies House, the Fundraising Regulator and the Regulator of Social Housing. awty in En9lond ond Woh5 1147794 Cornp)ny limit by 0807539
CARITAS ANCHOR HOUSE CARtrAS- ANCHOR HOUSE TRUSTEES, ANNUAL REPORT l¢ontlnued) FOR THE YEAR ENOED 31 PW¢CH 2021 During the year the Tru5tee5 have considered the recent updates to the charity code of governance and the National Housing FederatFon's code of governance. and have undertaken to employ a consultant to review the charitws compliance with these codes. A Consultant has been appointed and started thi5 work in lune 2021. Our Trustees meet on a quarterly basis to review the performance of the organisation and plan for the future. The professional back8rounds of the Trustees include ffinancial manaEement. business plannin& charity management, social enterprise, human resources and diversity, law, risk management. social care and community involvement. marketing and investment banking. The day to day running of the Charity is delegated to the Chief Executive and Strategic Management Team I'smfi. Our SMT is led by our Chief Executive. Amanda Dubarry. who joined us in March 2018 and has an extensive background in the homelessness settor. She was joined by both John Lowery, Director of Frontline Services. and Siva Selliah, Finance Director. in 2018, both of whom come to us with many years. experience in the houslnB and care sertors. Irh June 2020 a fourth member of the Senior team, Craig Hardaker. joined as our Director of People, bringing with him a strong background in the charity sector. Key management remuneration is set by the Trustees by reference to the degree of seniority and responsibility of the post. by benchmarkirtg against similar roles in charities of similar size and complexity and in the light of performance appraisal. TnBteè re¢ruitmenL Inductlon and trainln8 The sUPPOrt of our Trustee5 Is vttally important in ensuring we deliver the best Possible service to those in need. and in rai5Ing awareness and support for the essential and life changing work that CAH provides. Between autumn 2020 and summer 2021, three new trusteesjoined our Board which enabled us to broaden our Board ski115et and meet identified skills gaps. All newtrustees are provided wlth a trustee induction pack and Induction process, and are encouraged and supported to attend specialist trainin8 relating to the roles and responsibilrties of a charity trustee. including safeguarding. ObJe¢tlves &Artl¥ltles Carr(as Anchor House's objects contained in its Memorandum and Articles of As$0¢iatiort are "to further the general charitable work5 of the Roman Catholic Church by providing servios and facilities for the relief of poverty and sufferin& the advancement of education. the promotion of social justice and othercharitable acts which promote the development of all individuals and communrties in need for the public benefft of people of all faiths and none.~ We provide supported accommodation to 140 pe¢)ple experiencing homelessness in the London Borough of Newham at any one time, and support them to move on from homelessness and go on to lead fulfilling INe5. We do this by.. Providing a safe place- to make sure that people experien¢in8 homelessness have somewhere safe to stay as they begln to bUIld their lives Offering support- to encourage and enable people to build a betterfuture forthemselves. through the provision of personallsed support, educational and life skills opportunities Building resilience- to build networks of suppory and empower people to navi8ate services with confidence and be a proartive member of thelr community Outside of and beyond lrfe at Carita5 Anchor House. Our frontline teams work direttly wrih residents during their time at Carita5 Anchor House. Each resident, in both our core and assessment hub services. is assigned a keyworker who will guide them through their stay, and support5 them to access a holistic seThice offering relating to health and wellbein& education and employability, financial management and securing and sustainin8 new tenancies. Residents can participate in trainin& workshops and activities includin8 Chorty rtyisrJ in Ej)nd ond Wbl•s I Id7794 Cwyjny Iwnihd by gwronteo 0607539
CARITA.% ANCHOR HOUSE CARITAS- ANCHOR HOUSE TRU5TEES' ANNUAL REPORT Icontlnued) FOR THE YEAR ENDED 31 MARCH 2021 cooking dasses. money management trainin& mindfulness sessions. Counselling, CV workshops and events. Our work is the primary response to homelessness in the borough. and the goal for eath resident is to move on from our service wh the skills to navigate their next chapters with confidence. Publ1¢ benefft The Trusteès Confirm that they have complied with the duty in Sertion 17 of the Chartties Act 2011 to have due regard to the Charity Commission's gefteral guidance on publrc benefit"Charr(ies and Public 8enefiV' in the exercise of their powers and responsibllities as detailed in the Artides of Association and under charity law. Value for Monev The Charity is always consuous of the need to promde value for money to our users and stakeholders. As a re8lStered provider of social housin8 Wlth the Regulator of Social Housing I'ASH'I, we are committed to delivering value for money and continuing to meet the RSH'S Value for Money Standard. Our rental and housing related support levels are set in consultation with London Borough of Newham. to ensure that they. as the principal commi55ioners of our servicès, feel that they are receiving such value. We regularly review our perfomiance and the way we work to CDntlftLte developing the impact of services and using resources in the most effettwe and efficiènt way. Value for Money metrlcs In response to the Regulator of Social HousingTechnicaS note of June 2019, the Chartty reports Value for Money metrics. There a seven metrics covered by thi5 technical note. CAH is a unique chartty operating in the homelessness sector, and as such, we could not find a comparable charity to publish comparaiives as required in the technical note. Metrk l- ReSn¥estment% Thls metric looks at the Investment in properties lexisting stock as well as new 5upplyl a5 a percentage of the value of total properties held. The charity has not provided any new supply in the year. The percentage reflects investment in the Barn project. to increase our accommodation capaaty by IS. which Ès currently a work in progress and due to open in the nèxt financial year. The Charis metric for reinve5tmentfor the year was 0.29%12019120.. 0.63%> Metr1¢ 2- New supply dellvered % No new supply has been delivered by the tharity in the year for s¢xial housing or non-sotial hou5inB. Metr1¢ 3- Gearlng % The Charity's property. Anthor House, is owned freehold. The charityhas two longterm loans, onewith Natwest, seCud against this property. and thè other with Homeless nk. The balance outstanding at 31 Mar 2020 of £2.262K12019120- £2,192KI repSentS 2.99%12019120:13.12%1 of Housing depreciated value owned by the Char4ty. Metrlc 4- Earnlng$ Before Interes¢ T¥ Depreclat5on. Amortlsaoon. Major Repalys Included IEBITDA MRI) Interest Cover % The ¢harity paid interest of £61K12019120.- £72KI in the year in relation to the loan finance referred in metric 3. Interest is therefore covere<l 1804%12019120..739%1 by EBITDA MRI. Metric 5- Headllne social hoUnI cost per The cosr per unit for the year wa5 £25.40112019120.. £23.6061. The c05t fflects the average cost of housing and support services offered to our residents in the year. The support services vary from low to medlum. including services to people CIKfftty lthd in Engbrd ond 1147794 limi*l by 0807539
C_ARITAS ANCHOR HOUSE CARITAS- ANCHOR HOUSE TRUSTEES, ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2021 sleeping fough and residents with multiple and complex needs. The increase in cost In 2020121 compared to that of 2019120 reflects Covid related costs. Metr1¢ 6- Operatlng Margin loveralll % The operating mèrgin of the charity as a whole for the year wa5 18.56%12019120: 6.31%1. Metrfc 7- Rthm on ca1 em0ved IROCEI % Thi5 rnetric compares the operating surplus to total assets less CyrAt liabilTties. Forthe Charity as whole this was 6.17% for the year12019120- 1.88%) Fundraising Our supporters are incredibly important to us. and we bdieve in maintaining the highest Possible Standards when fundralsing. We are registered wtth the Fundraising Regulatorand are committed tothe Fundraising Promise and workin8 in a way that is compliant with the Code of Fundraising Prattice. We are also organisational members of the Chartered Institute of Fundraising. This rep¢yt covers the requirements d)aritie5 must follow as set out in the Charities Act 2016. We keep our fundraising poliLy and practices under review and ensure that ourfundraising meetsthe standards required in law and reflects best practice, so that our donor5 can gwe wtth confidence. Due to the <1-19 pandemic and the restrictions. many of our traditional fundraislng methtxls were not able to go ahead, such as in-person events and fundraising in schools and faith groups. Asthe world became more digital due to the restrictions. we focussed more on digital and virtual hJndraisin8. takin8 Part in initiatives such as the 2.6 challenge which was organised in place of the London Marathon. We continued to apply for grants. encoura8e donation5 and ran our very first wrtual event for supporters. We saw a small number of our regular donations cancelled. due to the personal circumstances of our supporters during such a difficult time. However. the pandemic resulted in many emergency funding opportunitie5 bein8 made available. primarily by tTUSts and corporate foundations. and we had success in this area which resulted in an increase on fundraising income Ifom the previous year. We partlClP3ted in the Big Give Christmas Challenge 2020. whereby donations made during the online campaign were match-funded, which raised a restricted funding of £28.558 to enablethe expansion of our servi¢es by building additional accommodation. We were a150 grateful to receive a high volume of grfts in kind during the year. of essential items to benefit our residents during the pandemic, induding food, toiletdes and PPE. In the year, we grew our fundraising team and welcomed an Individual Giving and Le8acy Specialist and Community and Events OffJ¢er- both of which are new roles and had been planned pre-pandemic- to enable the charityto secure support from a wider range of sources. IV5 important to us that everyone we interact with feels free from undue influence when they consider donating. We ensure our fundraisers can recognise si8ns of potential vulnerability. $0 they can manage conversations and take action in the m05t appropriate way. We acknowledge that people's circumstances than8e, and we promise to respert and art on information shared if one of our supporters is in a vulnerable situation- we did not receive any such notification5 in the financial year. We are a150 signed up to the Fundraising Preference Service to enable individuals to opt Jt from receiving fvndraising c¢mmunications from us - we received zero requests from this service during the year. We promise that we will treat all complaints seriously, investigate them fully and report back transparently and appropriately. Our aim is always for our supportèrs to have a hi8h*uality èxperience with us, and we are pleased that we did not receivÈ any complaints about our fundrai5in& marketing or related ¢ommunications- done by ourselves or any third parties- in the year. Chatty rty1sled in EnBhnd und Wbles 1147794 Cornpuny 11rni byGvoronbg 0807539
CARITA.£ ANCHC)R HOUSE CARITAS- ANCHOR HOUSE TRUSTEES, ANNUAL REPORT {contlnued) FOR THE YEAR ENDED 31 MARCH 2021 We did not work with any profèssional fundraisers or commèrcial participators. as defined by the Fundraising Regtslator. Should this be 50methit)g we do in the future. we 11 of course monitor the actitieS carried out to ensure they meet the same high standar¢J5 we expect of our own fundraisers, and have any required agreements in pla. srRATEGIC REPORT Achlevements and Perforniance Our Trustees regularly remewthe pro8ress of the organisation. and the main objectives which were achieved during thls year to meet our long term strategy were.. Despite a verychallengin8 economic backdrop. we We able to mainta5n our service levels to our stakeholders. We achieved a 95% room utilisation rate. housin8 and supporting 278 people across the year. Despite the majority of our beds beinB funded with a low support level service we We able to take in 203 people wlth one or more aa5 of complex need. suth as substance misuse. mental hèalth issues. or physlcal health issues. We continued to strengthen our work wth residents. sUPPOrting 11 residents to move to our on-site flats. 42 into 5hort-term accommodation such as other 5UPPOrtservices. and 95 fesidentsto move intotheir own homes. 17.6% of our residents were in employment during the year. and we recorded 184 resident attendances at education and employability sessions We wnducted our first-ever digital Resident SuNey in December 2020. 78% of residents rated the quality of the support from CAH as excellentlvery good (response rate.. 68%). Despite the challenging environment from a fundraising perspertive, and the impact on our usual fundraising adlvities due to the Covid-19 pandemic, we raised £1.034k income from grants and (lonaOn$ in the year. We undertook and completed two significant refurbishment projects within the wmmunal area5 of the bulldinB in the year: The refurbishment our residents dining room which join5 With our recently refurbished residents lounge. This space had not beèn refurbished forsome years and hèd suffered damagefrom lèak5 above, leaving it in an unSnspiring state. It has been transfomied into a bright open and pleasant space which contains our food store for donated food item5. 2. The refurbishment of a meeting room to ueate a Wellbeift8 and Spirituality room. providlng a quiet space for refiertlon or mufti faith prayer. Wrth both a diverse resident and staff group and such a busy operating environment. we felt it was essential to provide thls quiet space for the spiritual wellbeing of our people. The context in which we work has become ever more challenging over the last few years. The housin8 trisis continues to deepen. wages remain stagnant and house prices and rents are beyond the reach of many of those living locally. The number reported as sleepin8 roiJ8h in the Borough of Newham continued to rise at a worrying pace, estimated to be It a year, and CAH worked in partnership with Newham Counal to run a service to provide accommodation with 5UPPOrt to people sleeplng rough with high and complex needs. The Assessment Hub Service. which opened in Oe¢ember 2018. is based within CAH. Placements are short temi lup to six week length of stay) and residènts are given high levels of staff support. During the period from April 2020 to the end of the year in review. March 2021. the Assessment Hub was able to house and support 118 residents, and reived 121 referrals. At the point of exiting the A55e55ment Hub. residents report Significant improvements in their health and wellbein8. In the year, 28% reported improvements in their health. and 58% reported an increase in personal wellbeing. The service is also rated positively by residents. with 92% responding they are satisfied with the support provided by the Assessment Hub service, and 86% feeling more confident to live independently. The service's rapid and person-centfed interventlon has a lasting impact with IOIYA of former residents reportin8 havin8 sustsined thelr tenan(v durlng follow-up calls undertaken six months after leaving the servi. Cknrty rwdisknd in Erghnd ond Woles 1147794 Compuny limitqd by gwront8& 0807539
CARITAS
ANCHOR
HOUSE
CARITAS- ANCHOR HOUSE
TRUSTEES, ANNUAL REPORT {contSnuedl
FOR TrIE YEAR ENDED 31 MARCH 2021
Our core accommodation serwce receivèd 244 referrals across the year, and provided a home and 5UPPOrt to 160 people.
Of the 244 referrals received we were able to welcome 58 new residents, or 24%. just l in 4 of those referred because of
the la¢k of housing opportunities and the parricular needs of the indNidu31s which exeded our support capabllities.
The number of new residents we were able to accommixlate wa5 reduced because of the impact of Covid. with existin8
residents stawng longer than normal due to lockdown restrictions throughoutthe year.
The neèds of our resident group rna1ned complex and throughout the 12.month period, almost three quarters of the
residentswesupported173%1 had one or more complex needs (issues wth Substance misuse. mentsl health, and physical
health).
Research shows that across thè UK, an average of 7% of people Itving in supported hous1 afe in paid employment. At
CAH, 49117.6%) were in paid employment in the year. We run an Education. Training and Employment service with a
wide range of artivitie5 including ESOL IT, CV and interview skills se55ions. In the year. we recorded 184 attendances at
employment and education sessions, a Significant reduction on previous Yea activities in thi5 area due to the impatt of
Covid and our restrltte(l ability to deliver these seM¢es in-per50n.
Sadly. we had to c105e the community based Your Space programme. This formed part ol our approach in relation to
defining our connectivity with community through the experien of our residents rather than standalone within the
neighbourhood. The impatt of the pandemic meant that our service5 with Powerhouse. Pinnacle and MTC learning were
closed down due to the coronavirus pandemic. The ESOL IEnBlish to Speakers of Other Lan8uagesl conversation clubs
with MTC were re-introduced within CAH as part of our NRPF INO Recourse to Public Fund51 employment SUPPOrt offer.
These new seryice5 have been Érouped within a new Communty Partnership Team. This now includes our employment
support to residents. resident engagement with Qts"iens UK as well as voluntèering.
Specrfi¢ frontline service achievements included..
we provided a home to 287 people who We experienang homelessness
we supported 11 of our residents to achieve first-sta8e move-on into our onsite move-on studio flats
we supported 137 of our residents to move on positively from our service- 42 into short-term accommodation
such as Other support Services. and 95 into their own homes
we enabled our residents to complete 751 volunteering hour5 cornpletin8 activities they indicated interest in.
and community & corporate volunteers to complete 1066 volunteering hours. These hour5 represent a
significant increase on our previous years volunteering levels
76% of our core service residents developed Cvs
we provided opportunities to enable 184 attendances at employment and education related activities such as
work taster Sessions, CV writin& interview skills and assessments
49 sIdentS had a job In the year. of which 18 residents 8ained new employment
We are fortunate to have a very talented. de
CARITAS ANCHOR HOUSE CARITAS- ANCHOR HOUSE TRusfEES' ANNUAL REPORT {¢ortinued} FOR THE YEAR ENDED 31 MARCH 2021 Alongside these measures we distributed food for all 140 of our residents Iwho u5u3lly self-caterl. increased our cleaning prowsion significantly, increased our volunteer effort, and as the pandemic continued. we increased our ni8ht time staffing cover io prevent issues of antl-s¢xi31 behaviour that had arisen after some weeks of lockdown. We also lobbied successfully to ensu earfy accesstothe vaccinefor both oUr$1ents and ourstaff. this meant considerable pressure on our management team but we are delighted to report that we have had no COVID positive ¢a5e5 arnon8St our resident group to date ènd that we have maintained a sah and supportive environment throughout the pandemic period. The cost of COVID-related safety measures in the year amounted to around £547K. Our fvndraising team have worked hard to cover these costs through additional income from supporters. and have had success here. We are proLKI of the way in which we have managed to continue our operations and to adapt our support services to continue to provide vital servlces to people experiencing homelessness, and pleased that wè are managingthe crisis 11 in financial tern)s so far. The political imperatives of the g(svernment thange. Recent examples include: a bold cross-govemment plan of action to sign[fican¥ reduce the number of people sleeping rough the Covid-19 Everyone In stheme which has seen thousands of people sleepTn8 rough housed in hotels since the end of March 2020 and the new Rou8h Slèeping Taskforce. working to find safe. lon8.tem homes for people who had prevlously been sleepin8 rou8h, beyond the Covid-19 lockdown. These Inltiatives impart on us and the way we delNer our service, creating opportunities for u5 alongside a lack of predictability of fundingsour¢es, and often shorttemi, non-recvrrentfundin8 Streams with the corresponding difflculties for staff and rècriLitment, which challenge our abiltty to provide consistent levels and range of seNices. We very much support the view expressed in the recent Kerslake Report. which we provided a submission to, which points to the need to maintain funding levels to drive down levels of homelessness. tJring the year we have been actrve in supporting sector campaign5 calling for: the continuation of 'Everyone In. funding for placements of rough sleepers during the Covid pandemic I'Everyone In for Goo¢J'l early access to the Cowd 19 vacone for both 5tsff working in the l)omelessness sector and those experlencin8 rough sleeping and homele55ness the end of the condition of No Recourse to Public Funds INRPFI the govemment to Support Don't Deport those with an undear immigration statu5 who are expèriencing homelessness Rlsk Management TheTrustees have examined the finanaal and operational risks which the tharityfaces and confirm thatsystems, controls and revSew pro¢edures have been established to mitigate exposure to these risks. The Charity has a Iwe Risk Register, and each of the ChariVs Sub-committees reviews relevant risks on a quarterly basis. The fvll Risk Register is updated following &Jb-Committee meetings and reviewed quarterly at full Board meètings. The printipal risks, togrther with the appropriate mitt8ation strategies. have been identified as: lal Inability to 5er¥lce debt finance and on-801 cash flow. Our loan financing Is funded through housin8 benefit and rents at CAH which significantly mitl8ate5 this risk. In additioft. we have stretching fundraising targets and high performance in this area which is reassuring and further reduces the likelihood of us experiencing cash flow problems. C"ty rryier8d in ond Wolès 1147794 G)mp*y INntsd by9uoronkn 0807539
CARITA.S ANCHOR HOUSE CARITAS- ANCHOR HOUSE TRUSTEES. ANNUAL REPORT Icontlnued FOR THE YEAR ENDED 31 RCH 20ZI Ibl Fallure to secure appropriat• fundini from Trusts. Statutoryi Corporate. Communlty or Indlvldual donors. IndLEdln8 Impact of Covid-19 on fundraising income lor core artivitie5. We have a stron8 track record of raising good sums of money through fundraisin8 and have retained the key post holders with the experience of achlevin8 this. During the yearwe appointedtr40 additional fvndraisin8 team members, an Individual Giving and Legacy Specialist and a Community and Events Officer, to enable the charity to secure support from a wider range of sources. We monitor budget performarKe closely and will make decisions to restrict expenditure to match income if required. Icl Reductlon In referral I Increase In volds levels. We have had high levels of referrals up until April 2021, but are experiencing increased voids since this time. We a working c105ely with our referral partners. primarily Newham's Homele55ne55 Prevention and Adwce team. to address this matter. Idl Non Compllan(e wlth re8ulatSons. Our Management Team have responsibility for ènsuring that we are compliant with the range of regulatory reQu4Ments which relate to ourwork and our Premise5 Sub Commltteè and Board receive quarterly updates on key compliance items. As a 8rowng organisation, we are lookin8 to appoint a Compliance Specialist during autumn 2021 to further our compliance work and mitwdate thos key risk. lel Increase In rent arrears le1> We have focussed on U¢Ing nt arrears leve15 since the appolntment of a Rent & Housing Management Specialist in 2020. and we are very pleased that a significant reduttion has been achieved. This reduttion has been maintsined despite the pressures of Covid and a number of our sIdents losing their employment as a resu. 11 Use of o¥ertlme amongst employees In manual worf( roles. We ore committed to staff wellbein8 and as such want to ensure that any overtime worked by our team members does not become regular or excessive. This yearwe have increased our 518n off processes and scrutinyaroLtnd overtime to demonstrate our intentions here. Flnanclal re¥lew f¢x ihe year During the year the Charrty feceived income of £4.437K12020.. £3,541KI and incurred expenditure of £3,659K12020: £3,377KI. resulting in a surplu5 of £778K12020.. surplus of £164KI. of which £15X relates to restricted funds and £763K relates to unrestricted fvnds. The increase in income of £896K125.3%1 from prewous yearfs income was largely due to an additlonal income of £488K from donations and grants received towards Covid-related Safety measures. an additional Income of E261K from extended cold weather projert and increase in numberof complex bedspaces. There was also an In¢aSe in rental income of £188K as a result of new rents set and agreed with the local authority forthe year. The cold weather project was due to come to an end in March 2020. but was extended tojuly 2020 due to thmd. The actual increase in expenditure from the previous yearwa5 £447K after adjusting forthe one-off expenditure of £165K Incurred on the refurbishment of restdents. lounge in the prewous year. This increase in expenditure of £447K113.91%1 was largely attributable to COVIO-related measures and additional expenditure incurred on the extended Cold weather projert and additional complex needs beds. During the year we spent around £547K on Covid-related measures. and around £239K on the extended cold weather project and additional complex needs beds. Flnanclal revlewforfuture pertods Our budget and forecast for 2021-22 reftects impacts of Covid and void 1055e5 due to some planned maintenance work on Rèsidents, rooms. The void losses will be funded from free reserves and designated reserves as prevlously planned. The expenditure on planned maintenance work will be fvnded from resetves designated for this purpose. We will also be delivering new Assessment Hub and Support Services at other sttes. which come into operation between August 2021 and September 2021.The total annuali5ed revenue expected from these Services is around £7C¥)K. Trustees are pleased to report that at the datè of approval of this report the Charity has perfomied well. CknTty ryistred in Engb)nd ond Woles 1147794 Cryny Iwnited by gLKJr¢nkn 0807539
CARITA.£ ANCHO HOUSE ARITAS- ANCHOR HOUSE TRUSTEES, ANNUAL REPORT {contknued) FOR THE YEAR ENDED 31 MARCH 2021 Reserves At 31 March 2021, unrestricted reseThes Stood at £10.464K12020= £9,701KI, of which £8,383K is represènted by the net book value of fixed assets. Of the balance of £2,080K. £702K has been de518nated for a cytlical programme of major repair5, £146K forthe replacement of residents. fumtture and equipment both in their rooms and in the communal areas, £350K for access control and £50K to cover grant ce55ations, and the remainin8 £832K is held in general reserves. The Trustees have the authority to make these designated hjnds available for other purposes if required. The Trustees have reviewed the reserves of the Charity taking into consideration future activities, uncertainties. and risks and have concluded that the appropriate level of reserves required is in the range of to £1.2M. We wlll continue our efforts to build these reserves over the next few years from £832K12020.' £244KI to the requir level through prudent financial management. As part of this exercise. Trustee5 have also reviewed the management accounts for the rjrst quarter of the year 2021-22 and the forecast for the year in liBht of the void1055es and planned maintenance work, and are confident that the Charity will continue to be able to build towards the required level of resewe5. The Trustees have also acknowledged that the Charity is lar8ely reliant on reseThes for future growth and expansion and have agreed that the Charity should be able to use part of the reserves for this purpose if needed provided that this does not impact the existing operation5 and that strategies are in place to replenish them. The Board of Trustees has designated a Post Grant Continuity erve of £50K12020.' £50KI to provlde interim cover where a funding source has ceased le.8. for a staff positionl. until replacement funding can be found. The 8oard of Trustee5 has designated a Major Repairs fund of £702K12020.. £454KI to ensure that the Charity has sufficient funds to maintain its building asset Whe our residents live. in good condition induding planned maintenance and replacement of various components atthe end of their useful economic life. The Board of Trustees has designated a Furnitu and Equipment fund of £146K12020- £67KII to ensure that the Charlty has sufficient funds to replace furniture and equipment both in fesidents, rooms and in the communal areas. The Board of Trusteès has designated an Access Control fund of £350K12020.. nil) to ensure that the Charity has sufflcient funds to replace the old access control system. The Fixed Assets Fund of £8,383K12020= £8.886KI is intended to represènt the net book value of unrestricted tangible fixed assets. less the outstandin8 loan finance raised to lacilitate the acquisition and development of capital improvèments. Plan5 for Future Years During the year wè developed our new five-year Strategic Plan for the pèriod April 2021 to March 2026. Thls plan sets out an ambitious roadmap around flvè key goals. By March 2026. we wll- l. provide additional specialist supported housin8 2. offer an expanded range of complemèntary 5eryice5 3. be a sustainable or8anisation 4. be a great place to work S. be a trusted voice in the community and sector We were delighted that we were able to respond to local pressures around homelessness in what was an unprecedented yearfor us all. We Increas the number ol beds available in ourAssessment Hubfor people sleeping rough wlth complex needs from 20 to 39 in late 2019, having secured additional funding via Newham Council and the Oty of London for the cold weather period. With lockdown measures in place until laTr JUW 2020, we extended the stay of these residents to keep them safe. and took on a further group of residents accommodated using funding secured by Newham Council for people with no re¢our5e to public fundin8 INRPFI under the government'5 Everyone In initiativp. Thi5 increased role 10 ChoriTr regis in Ergk)rd ond Wol05 1147794 Cornwny limi*d by gwrankn 0807539
CARITAS ANCHOR HOUSE CARAS- ANCHOR HOUSE TRUSTEES, ANNUAL REPORT {contlnued) FOR THE YEAR ENDED 31 MARCH 2021 working with those experiencing rough sleeping led to us partnerir4 with a group of providers In blddin8 to deliver Newham Covncil's new Inte8rated Rough Sleeper Support seThi, which we are delighted we will be helping to deliver from September 2021. In aifvance of this. we have a150 begun dellverin8 a new A$5essment Hub se1. off-site from August 2021. We a now close to startln8 building work on an additional 15 units of accommodation which will house people who had been sleeping fough, which will be known a5 Hope Street la name picked by our re5identsl. The project will allow us to provlde contemporary, individualise(J and safe accommodation, al increase the capacity of our buildin8 to 155 residents at any one time. Looking ahead, we are beginning to look at how we can increase our move-on offer to residents In both our MpleX needs service and our core semce. and we are considering a number of potentsal options here. We continue to work with our partners to increase our impatt for our residents and to grow our offer to those experiencing homelessness and disadvantage in our communty. We embrace change and welcome others to join u5 in 501ving sorne of sociews most ¢hallen8ing soclal issues. We look forward to stren8thÈning existing partnerships and developing new collaborations to support our residents and the Community to achieve their potential. Chority ra9i4wad in Er4bnd ond Wol•> 1147794 Comp)ny by gwronkn 0807539
CARITAS ANCHOR HOUSE cARA5- ANCHOR HOUSE TRUSTEES, ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2021 Staternent of Trustees, Responslbllltles The Trustees Iwho are also dirertors of Caritas- Anchor House for the pur[se$ of company lawl are responslble for preparing the Trustees. Annual Report and the financial statements in accordance with applicable law and United KSngdom Accounting Stsndards Iunited Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial Statements for each financial year whi¢h 8ive a true and fair view of the state of affairs of the charitable company and of the incomin8 resources and application of resources, including the Income and expenditure, of the charitable company for that year. In preparing these financial statements, the Trustees are required to.. select suitable accounting policies and then apply them consistently.. observe the methods and principle5 in the Charities and Social Housing SORP- make judgments and accounting estimates that are reasonable and prudent,. state whether applicable UK Accounting Stsndards have been followed. subje¢t to any material departure5 dlsclosed and eyplained in the financial statements,. and prèpare the tinanaal statements on the 80in8 Concern basis unless it is inappropriate to presume that the charitable company will continue in business. The Trilstees are responsible for keeping proper accounting records that disclose with Tea50nable accuracy at any time the financial position of the charitable company and enablè thèm to ensure that the financial statements comply with the Companies Act 2(K)6. They are also responsible for safeguarding the assets of the charitable company and hen¢e for taking reasonable steps for the prevention and detertion of fraud and other irregulartties. So far as each of the Trustees is avrdre atthe time the rewt is apw(wed: the 15 no relevant audit information of whith the tharitable company's aLtditors are unaware.. and the Trustees have taken all steps that they ought to have taken to make themselvès aware of any relevant audit information and to establish that the auditors are aware of that infomiation. Statement of Board of Tte¢S ¢>n Ittternal finandal controls The Board of Trustees acknowledge its ovèrall rèsponsibiltyfor establishing and maintsiningthe wholè system of internal controls and reviewing its effectivene. The system of internal control is designed to manage. rather than eliminate, the risk of failure to achieve business objectbves. and to provide reasonable assurance against material misstatements or Ioss. The process for identi.n& evaluating and managing the significant risks by the Charity is on8oifvd and has been in place throughout the year up to the date of approval of the report and financial statements. The key elements of the control and sources of assurance include: Clearly defined management responsibilities and procedures for the identification, evaluation, and control of significant rlsks. Risk re815ter and risk management rep(Yts Performance reports External audit reports Detailed financial budgets, management accounts and forecasts Policie5 and procedures for all area5- Safeguardin& Heatth & Safety. Human Resource. Finance & IT. These police5 and procedure a reviewed bythe Sub-committees and the Board on a regular basis. Estsblished authorisation and appraisal prOdureS for nèw initiative5 and commitments Regular reporting to the appropriate Sulpcommittees and Board on key IsInesS objertives, targets and outcome5. There were no attempted or attual frauds during the year that requlred reporting to the Re8ulator of Social HoLtsin& the Charity Commission or other re8ulatory bodies. 12 CknTty En9hnd ond Wol8$ 1147794 limit by guaraTh*tr 0807539
CARITA5 ANCHOR HOUSE CARITAS- ANCHOR HOUSE TRU5TEES' ANNUAL REPORT (Continued) FOR THE YEAR ENDED 31 RCH 2021 The key areas ¢over control, infomiatSon Porting 5VStems, monitoring and risk mana8emenL Control The Board of Trustees retains pOnSIbIlity for defined range of areas ¢overin8 Strategio operatlonal, and financial elements. The Board of Trustees has put in place an organisational structure which clearly defines lines of wponsibility nd dele8ation of authority. Infomiatlon reportln8 Svstem Financial reporting systems indude regular rewev*S of overall fftnancial busine55 plans. preparation of detailed annul budgets and the production of detailed monthfy management accounts. These are prepared by thè Senior Management Team and are considered and approved by the Sub-committee and the Board. The Senior Management Team and the Board of Trustees also review performance re8ularty to assess progress towards the achievement of key business objettive, tsr8ets and outcomes. Monltorlng A process of regular management monitorin8 on control Issues provides assurance to Senior Mat)agement Team and Board of Trustees. This includes a rigorous process of ensuring that correttive artions are taken in relation to any significant control is5ue5. Risk Management The charlty has a comprehensive risk management Strategy which identifies risks faclnÉ the Charity. risk management responsibilities, and action reqUId to mitigate these risks. and monitorin8 arrangements. The Trustee5' Annual Report whith incorporates the strategic pOrt was approved and signed on behalf of the Board on 7 September 2021 Simon Hall- Chair & Trustee 13 CIKTrrity rryi¥or•4 in E10nd and Woh$ 1147794 C¢)mFX)ny limitd by 0807539
CARITA% ANCHOR HOUSE INDEPENDENf AUDifows REPORTTO THE MEMBERS OF CARITAS-ANCHOR HOUSE OplnSon We have audited the financial ststements of Caritas-Anchor House for the year ended 31 March 2021 which comprise Statement of Financial Actlvities. Balance sheet. Statement of Cash Flows and notes tothe financial 5tatement5. includin8 a 5ummaryof signfflcant attounting policies. Theffinancial reportin8 frameworkthat has been applied in their preparation is applicable law and United Kingdom Ac¢ountin8 Standards. including Financial Reporting Standard 102 The Financial Reporting Stondord opplicoble the UK ond Republic of irelond (United Kingdom Generally Accepted Accountin8 Practi1. In our oplnion, the financial stateme1-. give a true and fair view of thestate of the charitsble companrfs affairsas at 31 March 2021 and of the charitable company's net movement in funds, including the income and expenditure, for the yearthen ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepad in accordance with the requirements of the Companies Act 2C6, the Housing and Regeneration Act 2C(J8 and the kcounting Direction for Private Re8i5tered Providers of Social Hou51ng from January 2019. Basls for opSnlon We Conducted our audit in a¢cordance with Intemational Standards on Auditing IUKI IISA5 IUKII and applicable law. Our responsibilities under those standards are fvrther described in the Auditorfs responsibilities for the audit of the financial statements se¢tion of our report. We are independent of the Charity in accordance with the ethical requirements that are rèlevant to our audit of tF]e financial statements in the UK, including the FRCS Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit eviden we have obtained is sufficient and appropriate to provide a basis for our opsnion. ConclusSons relatlngto 8oln8 concern In auditing the finanaal statements. we have concluded that the trustees, use of the goin8 Concern basi5 of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfomed, we have not identified any material urKertainties relatin8 to events or conditions that, individually or collectively, may cast significant doubt on the charitable MPanY'S ability to continue as a goin8 concern for a period of at least twelve months from when the financial ststements are authoriseil for issue. Our responslbilities and the responsibilities of the trustees with respert to 80in8 concem are described in thè relevant sections of this report. Other Inforniatlon The Trustees are responsible for the other information. The other inform•tion Comprises the information included in the Trustees, Annual Report. Our opinson on the financial statements does not cover the other information and, except to the extent otherwise explicitty stated in our report, we do not express any forni of assuran¢e ¢on¢lusion thereon. In Connection with our audit of the financial statements. our responsibility is to read the other Infomiation and. In dolng so, consider whether the other information 15 materially inconsistent with the finanaal statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we Ident such material incortsistencies or apparent material misststements, we are required to detemiine whetherthere is a material misstatement in the financial statements or a material misstatement of the other information. If. based on the work we have performed, we conclude that there is a material misstatemerrt of this other information. we are required to report that fact. We have nothing to report in this regard. Oplnlons on other matters prexrlbed by the Compartles Art 2006 In our opinion. based on the work undertaken in the course of the audit: the information given in the Trustees. Annual Report Iwhich includes the strate8ic ret)ort and the dirertors, report prepared for the purposes of company lawl for the financial year for which the financial statements are prepared 15 consistent with the finanoal ststements: and 14 Chority register•J in Ev4bnd ond Wolès l 147794 Cornpjny limi by 9uaran*e 0807539
CARITAS ANCHOR HOUSE INDEPENOEKfAUDITOR'S REPORTTO THE MEMBERS OF CARifAS- ANCHOR HOUSE (continued) the strategic report and the directors. report included within the Trustees, Annual Report have been prepared in accordance wrth ap1£able legal requirements. Matters on whkh * are requlred to Yeport by eMcept•on In the light of the knowled8e and understanding of the tharitable company and its environment obtained in the course of the audit. we have not identified material misstatements in the Trustees. Annual Report Iwhlch incorporates the strategic report and the directors. reportl. We have nothing to report in respect of the following matters in relation to which the Companies Act 2C(J6 requlre5 US to report to you rf, in our opinion.. dequate accounting records have not been kept by the charitable company,. or the charitable company financial 5tstements a not in agreement wfch the accounting records and returns,. or certain disclosures of trustees. remuneration specified by law a not made,. or we have not received all the information and explanations we require for our audit. Responslbllltles of trustees forthe Ilnandal StateThTrts As explained more fijlly in thè tru5tees' responsibilities statement set out on page 11. the Trustees Iwho are also the directors of the charitable companyforthe purpose5 of company lawl are responsible forthe preparation of the financlal statemenis and for bein8 satisfied that they give a true and fair view. and for such internal control as the trustees determine is necessary to enable the pparati¢)n of financial Ststemel that are free from material misstatement, whether due to fraud or error. In preparing the financial statements. the Trustees are responsible for asse55in8 the charitable compan5 abllity to continue as a going concern, disclosin& as applicable. matters related togoing concem and u5ingthe going concern basis of accounting unless the Trustees etther intend to liquidate the charitable Company or to cease operations, or have no realistic alternative but to do $0. Auditoes responslblllt5es lorthe audlt of the ftnanclal ststemet Our oblettives are to obtain a$Onable assurance about whether the financial Statements as a whole are free from material misstatement. whether due to fraud or error. and to 155ue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guaranteethat an audit conducted in accordance with ISAS IUKI will always detett a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the ag8re8ate, they could reasonably be experted to influence the economic decislons of users taken on the basis of thesè financial Statements. Irregularities, including fraud. are iNstan¢es of non-compliance vrith law5 and reBulations. We design procedure5 in line with our responsibilities. outlined above. to detect material mt55tatements in respett of irregularities, including fraud. The extent to which our procedure5 are capable of dete¢tin8 irregularities. includlng fraud is detailed below: Based on our understanding of the charitable company and the environment in which it operates, we identrfied that the principal risks of non-compliance with laws and regulations related to social housing, safeguarding, fundrai5in& employment and health and safety regulations and charity law. and we considered the eytent to which non-compliance might have a material effect on the ffinancTral Statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial ststements suth as include the Statement of Recommended Practice for regtstered Social Housing Providers 2C8, Companies Act and the Charities Act 2011. and Considered other factors such a5 income tax. payroll ta¥ and sales tsx. We evaluated management's in¢entwe5 and opportL5nities for fraudulent manipulation of the financial statements (including the rssk of override of controls). Audit procedures performed by the engagement team included.. 15 Chority re9ithd in Erebnd gnd W¢l•> 1147794 Comwy 1imrf by gU¢Tonkne 0807539
CARITAS ANCHOR HOUSE INDEPENDENT AUDtroKs REPORT TO ThE MEMBERS OF CARtrAS-ANCHOR HOUSE Icontlnued) Insperting correspondence wlth regulators and tax authoriYes- Discussions with management including consi(Jeration of known or suspected instancès of non<ompliance with laws and regulation and fraud; - Evaluating managemenys controls designed to prevent and detect irregularities,. Identrfying and testingjoumals. in particular journal entrie5 Posted with unusual account combinations. posting5 by unusual users or with unusual descriptions,. and - Challenging assumptions and judgements made by management in their critical accounting estimates A further description of our responsibilities forthe audit of the financial Statements is located on the Flnancial Reporting Council's website at.. www.frc.of uditorsres onsibilitie& This description fomis part of our au(Jitorfs report. Use of our report This report is made solely to the charitable compan$ members. as a b. in accordance th Chapter 3 of Part 16 of the Companies Act 2C(16. Our audit work has been undertaken so that we might stste to the charitable company's members those matters we are required to statè to them in an Auditor'5 report and for no othef purpose. To the fullest Èxtent permitted by law. we do not a(pt or assume responsibility to anyone other than the charitsble company and the charitable company's members as a body. for our audit worl forthis report, or for the opinions we have formed. Lee Stokes Isenior StstutoryAuditorl For and on behalf of Hay5macintyre LLP, StatutLwy Auditors 10 Queen Street Place London EC4R IAG 16 Chorty r8gir•4 in Ergbnd ond Kblo$ 1147794 Compjny lirnid by gwTante OB07539
CARITAS ANCHOR HOUSE CARrrAS- ANCHOR HOUSE srATEMENT OF FINANCIALAcrivtnES IIP4CORPORATING THE INCOME AND EXPENDMJRE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021 Unrestrlrt funds Resirlrted funds Total Funds Z021 Total Funds 2020 2021 INCOME FROM Donations, grants and le8acie5 Charitable artivity= Anchor House 283.240 750.587 1.033.827 561,086 2b 3,381.382 3,381,382 2,958.241 Other trading activities: Rent receivable 21.406 21.406 21.358 TOTAL INCOME 3,686.028 750.587 4,436,615 3,540.685 EXPENDITURE ON Cost of raising funds Charitable artivtty- Anchor House 215.S24 215,524 161.994 2,721.156 722,033 3.443.189 3.214.826 TOTAL EXPENDITURE 2.936.680 722,033 3,658,713 3,376.820 Nèt Income 749,348 28,554 777,902 163,865 Transfers between funds 13,132 113,132 NET MOVEMENT IN FUNDS 762.480 15.422 777,902 163,865 TOTAL FUNDS BROUGHT FORWARD 9.701.358 26,409 9,727,767 9,563.902 TOTAL FUNDS CARRIEO FORWARD 10,463,838 41,831 10,505.669 9.727.767 The notes on pages 19 to 31 fomi part of these financial statements. I transactions are derived from continuing actiMties. All recognised gains and105se5 are included in the Statement of Financial Activities. Details of comparalive figures are given in note 21. 17 Ckrty r•9ithd in Ergbnd ond Wplw 1147794 Compjny lirnid by 08075JP
CARITAS ANCHOR HOUSE CARITAS- AIICHOR HOUSE LANCE SHEET AS AT 31 MARCH Z021 2021 2020 FIXED ASSETS Tan8ible fixed a55et5 10.525.340 10,757,020 10.525.340 10,757.020 CURRENT ASSETS Stocks li 6,149 242,244 2,364,381 2,612,774 Debtors Cash at bank and on deposit 12 304.493 I,IOS,369 1,415,668 CREDtroRS= amounts falling due within one year 13 1446.4641 1321.8571 NET CURRENT ASS5 2.166,310 1.093.811 CREDtroRS: amountsfalling due after one year NEf ASSErs 14 12,185.9811 10.505,669 12.123.C641 9,727,767 REPRESEf4TE0 8Y Unrestricted Funds General Designated Restricted Funds 16 832.575 9.631.263 41,831 10,505,669 244,415 9.456.943 26,409 9,727,767 16 17 The financial statements We approved and authorised for issue by the Boar(J of Trustees on 7 September 2021 and were signed on its behalf by.. Simon Hall- Trustee The notes on page$ 19 to 31 form part of these financial statements. Company regisiration number= 08075329 IEngland and Wales) 18 Cklrty rtyisl•r•d in EngkJThJ Woks 1147794 Compuny lsrnid by guoronteo 0807539
CARITAS ANCHOR HOUSE CARAS- ANCHOR HOUSE sTATEmETr OF CASH FLOWS AS AT 31 MARCH 2021 2021 2020 Cash flows from owatinl actmtles: Net cash providedby (used Inj operotlng ocuwltles 1.229.723 540,248 Cash flows from Invertlng aCtIles. DNidends, interest and rents from investments Purchase of property, plant and equlpment Net cash pmvldedby {usedJ In In¥stlnq o¢d¥ttles 21.406 161.9101 21,358 1210,8241 140,5041 1189,4661 Cash flow5 from flnandng acthrttles: Repayment of bank loans Cash flows from new borrowing Net¢oshpYovldedby (usedj InfvJoKtnq a(Uvltles 150.2071 120.C 167,3851 69,793 167,3851 Change in cash and cash equlvalents in the r¢portin8 year Cash and cash equlvalents at the btginnln8 of the reporting year Cash and osh equivalents at the end of the reportlng year 1,259.012 1,105.369 2.364,381 283,397 821,972 1,105,369 Reconclllatlon ol net In¢tynel(e¥pendlture) to net cash flow from operating art111¢$ 2021 2020 Net In¢omel{expenditurel for the reportlng year (0$ per the statement of financlal actS¥ltles) 777,902 163.865 Adjustments for: Depreciation charges Losses on Investments 293.590 284,972 24,0 121,3581 1391 79,187 9,621 540,248 Dlvidends, interest and rents from investments Increase in stocks 121,4C61 13431 62,249 117,731 1,229,723 Decrease in debtors Increaselldecreasel in creditors Net cash provlded byllus•dl In Investln8 activikn¢S Analysls of cash and cash equhmlents 2021 2020 Cash in hand 2,364,381 1,105,369 2,364,381 1,105,369 Totsl cash and ¢ash equlvalents 19 Chortyr•3islgred in Erybnd ond Wo105 1147794 npuny It¢d by 0807539
CARITA5 ANCHOR HOUSE CARITAS- ANCHOR HOUSE NOTES TO THE FINANCIAL sfATEMENTS FOR ThE YEAR ENDED 31 MARCH 2021 ACCOUNTING POLICIES la) Basls of Accoun% The financial 5tstements have been ppare<l in accordance with Accounting and Reporting by Charities: Statement of Re¢ommended Practice appllcable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFR51021 (Charities sorip IFRS1021. Statement of Recommended Practice tor registered Social Housing Providers 28, the Financial Rèporting Standard applicable in the UK and Republic of Ireland IFRS1021 and the Companies Act 2C(6. Caritas- Anchor House meets the definition of a public benefft entity under FRS 102. Assets and Liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the levant accounting policy notelsl. Ibl Goln8 Concern Having reviewed the funding facilities available to the Charrty tO8ether with future projected cash flows for the year 2021-22 in light of Covid-19. the trustee5 have an expectation that the Charity has adequate rèsources to continue its actItieS for the foreseeable future and conslder that there were no material un¢ertainties over the Charl5 financial viability. Accordin8ly, the financial statements have been preparèd on a 80ing concern basis. {c) Crftl¢al a¢countin8Jud8•ments and key sources of estlmatlon uncertalnty In the application of the accounting policies. tNstees are required to make judgement. estimates. and assumptions about the carrying value of assèts and liabilities that are not readily apparent from other urcès. The estimates and undèrlying assumptions are based on historical experience and other factors that re considered to be levant Actual results may dtffer from these estimate5. The estimates and underlwng a55umptions are reviewed on an ongoing basis. Revislons to accountin8 estimates a recognised in the period in which the estimate is revised if the revision afferts onlythat period, or In the period of the revision and future periods if the revision affected current and future period5. Judgements made by the trustees, in the application of these 3¢countin8 poI(cies that have significant effect on the financial statements and estimates with a significant Tisk of material adjustment in the next year are deemed to be in relation to the depreaation rates of tsngible fixed assets and are discussed below. In the view of the trustees. no assumptions ¢oNcerning the future or estimation of uncertainty affecting assets or liabilities at the balance sheet date are likety to result in a material adjustment to their carrying amounts in the next financial year. Idl nanual Instruments Basic financial instruments are Initial recognised at transaction value and Subsequently measured at amonlsed cost with the exception of investments which are held at fair value. Financial assets held at amortised cost comprise cash atbank and in hand, togetherwith trade and other debtors. A specific provi5i0n is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held In instant access bank accounts and used as working capital. Flnancial liabilities held at amortised costcomprise all creditors except Socbal security and other taxes and provision& le) Income Income from Anchor House represents receipts from residential accommodation, mea15 and shop sale5. Donations and legaues are accounted for when received by the Charity. Other income is accounted for on an accruals basis as far as it is prudent to do so. Revenue grants are tredrted to the statement of financial adivities as received. unless they are to be spent in a later year, when they are deferred. 20 Chyity in Englond ond Wcle$ 1147794 C¢mpory limibd 0807539
CARITAS ANCHOR HOUSE CARITAS- ANCHOR HOUSE NOTES TO ThE FINANCIAL STATEMENTS ASAT 31 MARCH 2021 ACCOUPMNG POLICIES {¢ortinuedl ifj Expendlturn Expenditure is reco8nise(J on an accruals basis. Grernan costs comprise the ¢05ts of running the Charity, Includi strategic planning for its firture developmenL intemal and external audit. legal and professional alce and all costs of complying with constitutional and statutory requirements, such as the C05ts of Trustèes. meeting5 and of preparingststutory fjnancial statements and satisfying public accountability. Tarwble ftxed asset5 The property is freehold. being situated at Anthor House. 81 Barking Road, London E16 4HB, and is included at cost. less depreciation. The land is included at cost and is not deprlate{l. Assets under the course of construcrion are not depredated until the work has been completed and the asset brought into use. Depreciation is Calculated to write down the cost less estimated residual value of all tangible fixed assets otherthan freehold land over their estimated economic live5. Using component c¢)srin8 principles freehdd property is divided into componènts which are depreciated over the followin8 years: Building structure Windows. bathrooms and floorin8 Heating and electricity Systems Kitchen 60 years 15 years 15 years to 30 years. as appropriate 20 years 30 year5 In the previous year the freehold property was depreciated at 2.LVA ¢)n a straight-line basis. Component accounting was introduced from 151 of April 2019. AII Pcs and laptops regardless of theirvalues and other tangible fixed assets ex¢eedin8 £I,c are Stated at cost net of depreciation. Depreciation is calculated at the following annual rate5= Fixtures, fittsngs and equipment Motorvehicles I33% straight line. as appropriate 25% straight line Inve5tm•nts Investments are stated at their middle market values rulin8 at the balance sheet date. The alised and unrèalised gains and losse5 on investments are calculated based on the opening market values and are accounted for within the Statement of Financial Activities. Income arising from these investments is accounted forwhen it Is ce[Vable. Sto¢ks Stocks are shown at lower of cost and rtet realisable value after making due allowano for obsolete and slow moving items. u) Debto Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are vglued at the amount prepaid net of any trade discounts due. Ikl Cash at bank and In hand Cash at bank and cash in hand includes cash and short term h[gh liouid investments. Credlttys and provisions Creditor5 and provisions are reco8ni5ed where the Charity has a present obli8ation resulting from a past event that will probably resuft in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provishons are normally COgnised at their settlement amount after allowing for any trade discounts duè. 21 Cknty rtyi5knd in Engkjrd and Wa1•5 1147794 Cornpjny limifed by gUor*• 0807539
CARITAS ANCHOR HOUSE CARITAS- ANCHOR HOUSE NOTES TO THE FINANCIAL STAIEME14TS AS AT 31 MARCH 2021 Im) Desllnated funds The Trustees may set aside amounts of unrestricted funds. at their discretion, for specific future purptsses. Such fund5 are shown thIn ynrestrirted funds as designated funds. Where the trustees decide that designated funds are no longer required for the purpose5 specrfied. are released from designated funds. Restrirted funds The restricted funds are monies raised for. and their use restricted to. a specific purpose or donation$ 5ubjett to other donor-imposed conditions. Transfers are made to unrestricted funds where amounts raised for specific capital projects are spent. lol Taxatlon As a registered Charity. Caritas Anchor House benefits from rates relief and is generally exempt from taxation on its income applied for tharltable purpose5, but not from Value Added Tax. Irrecoverable Value Added Tax is included in the cost of those items to which r( relate 22 Cknrity r•91S9 in EngkJnd and Woles 1147794 Company 11rnit ty gwronte? 0807539
CARITAS ANCHOR HOUSE CARITAS- ANCHOR HOUSE NOTES TO THE FINANaAL STATEMENTS FOR THE YEAR Ef4DED 31 MARCH 2021 2a Income from donatlons and 8rants: Income from donation5: Totsl 2021 Total 2020 Z021 2021 Donations Le8aCy Donation in klnd 178.605 47.940 226.545 147,191 5,OOD 142,478 294.669 69,490 117.430 69,490 296,035 178.605 Inme from 8rnnts: Unrestrfcted Restri¢ted 2021 2021 Total 2021 Total 2020 The Monday Charhable Trust Merchant Taylorfs Charity The Leathersellers, Company Charitable Fund The Borrows Charitable Trust The Cuckoo Hill Trust The Charitable Committee of The Worshipfvl Company of Vintners PF Charitable Trnst Forte Charitable Trust The Mercer5' Company-The Charity of Sir Richard Whittington The Foundation of Saint Francois The London Community Foundatron-SEGRO Building Societies Trust MIted The Albert Hunt Trust Nationwide Building Society CommunityGrant Swire Charitable Trust CRASH 7,668 8,CQO 10.000 6,000 2,000 io.c(o 10.0 i.oc() 12,5( 10,000 2.0 2,51)) 25,CKQ 25,000 6,000 5.000 22,000 3,000 49.461 i0,c0 20,C 25,000 6,000 10,000 5,000 4,OC(J 18,0 3,0 16.C63 16,C63 The Bernard Sunley Charitable Foundation The Worshipful Company of Fan Makers Royal Docks Trust JA Rose Trust Lon(Jon Catalyst Homeless Link Fine and Country Foundation National Lottery Community Fund Crisis 74,278 74,278 93.781 93,781 East End Community Foundation East End Emergency Fund CAF The Draper5' Charitable Fund john Armitage Charitable Trust The Rank Foundation 15.(YJO 7,500 15,C4)) 25.LKQ 20.COJ 23.860 23.860 Chorty ryi5bred in Ervak)nd ond Wole5 1147794 Cryny limtsd by gthwon*8 0807539
CARIIAS ANCHOR HOUSE CARITAS- ANCHOR HOUSE NOTES TO THE FINANCIAL STATEMÉNTS {conllnu•d) FOR THE YEAR ENDED YI RCH 2021 r Harold Hood's Charitable Trust French Huguenot Church of Lon(Jon Charitsble Trust Trust fof London City Bridge Trust Co-op Grocers. Charity The Edward Gostllng Foundation The Haramead Trust LBN 6,250 24.674 6,250 24.674 iO,¢)JO 44,501 5,C(JO 4,C(JO 200,C(JO io.ojo 44,501 The Ma*Jrice & Hilda Lalng Charitsble Trust FO¥er Smith & Jone5 Trust The Julia and Hans Rausing Trust Screwfix The Fishmongers. Companvs Charitable Trust JI Churches London City Airport Morrison Taylor Wimpev White Oak Charitable Trust Worshipfvl Comparry of Fan Makers Other 4.000 200.000 5.000 15,000 19.8CKJ 15,C(Q 19,8C 3.0 io.(uJ io.oc(J 5.OC¥) 3.6XI 4,499 104,635 3,650 5,449 737,792 950 6,788 266,417 633.157 Total donatlons. grants and legades 283,240 750,587 1,033,827 561,086 24 Chorty rry1sr1 in Erglond and Woles 1147794 CL¥npry liffld gucyothe 0807539
CARITA5 ANCHOR HOUSE CARITAS- ANCHOR HOUSE NOTESTO THE NNANCIAL sfATEMErirs l<ontinued FOR THE YEAR ENDED31 MARCH 2021 2b Income from charftable acthiftSes Anchor House: unre5Cted Restrlcted 2021 2021 Total Total 2020 2021 Attommodation Catering Hovsing Related Support Rough Sleepers Initiative Sundry income laundry income Contracts revenue Room hlre 2,440.406 2.440.406 2,259,775 52 613,848 311.(MXJ 6,154 3,889 613.848 311.CQO 6.154 3.889 352.514 321,701 15,079 824 3,116 5,180 2,958,241 6.c5 3.381.382 6,085 3,381,382 All income in 2020 was Unstrirted. 3 Social housing lettSngs 2021 2020 Aent recelvable excludin8 ser¥ice charges Service charge receivable Grants and other income TUm0r fr social hou51ng lettlngs 1.080,124 1,142.1]90 1,360,282 1,117,685 1.926.254 1267 694 3 527 469 Op•ratln8 expendlture on Soual hou55ng lettx 3.556.122 3.304.894 Operallng surplus on sla1 hOUn$ lettln8S Flnancing costs 222,575 71.926 61.191 Surplus on sodal housfn8 lettin8S Void losses 150,649 158.894 4 Cost of ralsSng fvr 2021 Staff costs Other direct costs pport costs 126.113 30,159 59.252 215 524 87,336 35.716 38,942 5 Charftable actlvltles Totsl 2021 Cost5 Total 2020 Costs stsff Dire¢t Costs Support Costs An¢hor House 1,632,620 1,632.620 1,191,116 1.191.116 619,453 619.453 3.443.189 3.443.189 3.214.826 3.214,826 Chority regis*red in Engkjrd ond Woles 1147794 Compony limited by guorone 0807539
CARITAS ANCHOR HOUSE CARITAS- ANCHOR HOUSE NOTESTO THE FINANaAL sfATEMENfs Icortinued FOR THEYEAR ENDED31 MARCH 2021 6 Support costs allocatlon to a¢tl¥ltles Total 2021 Total FundraInI Anthor House 2020 Staff costs Staff trainlng and CrUItMent OfFice expenses Legal and professional fees Other costs 40.863 2.524 12,926 2.469 470 59,252 427,204 26,388 135.133 25,812 4.916 619.453 468,067 28,912 148.059 28,281 5.386 678,705 429.798 16.592 128,800 23,727 45,880 644,797 pport costs have been allocated to acti¥e5 based on number of peoplè employed within each artivity. 7 Governance Costs X121 2020 Staff costs Auditors remuneration- Audit fee Legal and profèsslonal fee5 Trustee expenses 50,873 17.883 28,252 16,077 3,456 1.652 49.437 142 68,898 The Trustèes received no remuneration12020.. nill. Expenses relating to travel and trainin8 were reimbursed or paid to third parties on behalf of Trustees. These amounted to £14212020.. £1.6521. 8 Staff costs 2021 2020 Salarles Social securty costs Pension 1,973,452 157,no 95.627 2.226.799 1.691,860 137,573 86.792 1,916,225 The average number of staff in the year was 6212020..541'. calculated on a full-time equtvalent basis, the fjgure was 60 12020.. 521. The number of employees with annual taxable emoluments paid more than £60,000 per annum was.. 2021 2020 £60,OW- £69,999 £70.OC(1- £79.999 £80.OCMM89.999 The total remuneration of key management personnel for the year wa5 £284,11112020- £218.6701. Included in the above were payments to the Chief Executive, being the highest paid employee. amounting to £86,525 for the year excluding pension contrlbution12020.. £81,FLl. The Chief Executive is a member of the Charl$ defined contribution pension Kheme. The charity Contribute5 7.5% of the salary to the Chièf Executive's pension, and the Chièf Executive contributes the same percentage of her salary. 26 CTrThity r•gi5hr•d in Er1 aTr4 Wah5 1147794 COrnrxY 11rni by 0807539
CARITAS ANCHOR HOUSE CARITAS- ANCHOR HIXISE NOTES TO THE FINANCIAL SfATEMENTS {contSnued) FOR THE YEAR ENDED 31 MARCH Z021 9 TanÉlble ftxed assets Freehold Land and Bulldln8S Furnltyre & Equlpment Asset Under Construrtlon Vehl¢les Total Cost As at l April 2020 Additions Disposals As at 31 March 2021 11.766.154 18,L%l 225.935 31.323 57.763 199.495 536,105 30,587 12,546,255 61,910 157,7631 12,550,402 11,766,154 I8.(1 566,692 Depreuation As at l April 2020 Charge for the year Ellminated on disposal As at 31 March 2021 1.670.035 241.ILKJ I8.(1 101.139 52,490 57,7631 95,866 1,789,235 293.590 157,7631 2,025,062 1.911.135 18.C61 Net book value As at 31 March 2021 9.855.019 103,629 566,692 10,525,340 As at 31 March 2020 10,096.119 124,796 536,105 10,757,020 10 Investments The Charity own5 ICQ% share capital of the subsidiary company. Caritas Anchor House. Learnin8 & Development Academy Ltd. whlch remained dorrnant in the year. li Sto¢ks Consumables 6.149 6,149 12 Debtors 2021 Trade debtors Prepayments VAT due Other debtors 137.695 44,3 2.5 58.046 242,244 161,684 38,902 103,907 304,493 27 Chtsrty rè9i4w¢d in Erybnd ond Wub$ 1147794 Ctynpany lirnibd by guoronkn 0607539
CARITAS ANCHOR HOUSE CARITAS- ANCHOR HOUSE NOTES TO THE FINANCIAL STATEMENT51c(wrtlnuedl FOR THE YEAR ENDED 31 MARCH 2021 13 Credltors- Amounts f•lliri8 due wjthln one year 2021 2020 Bank loans lrtote 151 Trade creditors Accruals Soaal security and other tsxes Pension fund Other creditors 75,903 98,036 95,254 41,673 14.495 121.103 446,464 69,027 49,8C 93,763 35,003 13,032 61,232 321.857 14 Credltors- Amt)unts fallln8 due outs5de one year 2021 2020 Bank loans Inote 151 2.185.981 2.123,064 IS BANK LOANS The prevlous long temi property loan and business development loan were repla¢ed by a new lonB term loan in february 2021. The new loan is secured on the property at 81 Barking Road, London E16 4HB and associated assets. The paYment sthedule for the new loan is a period of 25 years. ending on 17 February 2046. The applicable rate of interest is 2.73% fixed rate for 15 years from February 2021, and then a variable rate of 1.75% over base rate for the remaining tèmi of the loan. During the year the Charity also obtained a social investment loan of £120.c¢xI from Homeless Link for the Barn project. This is an unsecured loan and 15 repayable over 42 months. ending on l October 2024. The applicable rate of interest is 8% fixed rate. This interest cost has been grant fvnded by Homeless Link. 2021 2020 Repayments are due as follows Wrthin l year Between 2-5 years Over 5 years 75,903 365,622 1.820.359 2 261884 69,027 299.643 1.823.421 2 192 091 28 Chorty r¢9i#èr•4 in Ermabnd Wo1•5 1147794 CL*npony limit ty bWor0ntr 0807539
CARITA5 ANCHOR HOUSE CARITAS- ANCHOR HOUSE NOTES TO THE FINANCIAL STATEMEprrs Icontlnued) FOR THE YEAR ENDED 31 MARCH 2021 16 Unr•strSrted Funds At31 March 2021 At l Aprll 2020 Income and Galns Redurtlon Sn lon8 tem) loan Expenditure Trnnsfers General 244,415 3,686,028 12,936,680) 1432,4091 271.221 832,575 Desl8nated fvnds:_ Fixed Assets Post Grant Contlnuity Major Repairs Fund Residents Furniture & Equipment IRenewals & replacements) Access control 8.886,357 1231,6801 1271.2211 8,383,456 so,000 701,662 453.841 247.821 66.745 146,145 350,C(KI 13.132 350,000 10,463,838 9.701.358 3,686,028 12,936,680) Reductlon In long term loan At31 March 2021 Prlor year At l Aprll In¢om 2020 and Gains Expend5twe Trnnsfer% General 74.416 3,170,963 13,020,314) 76,545 157.1951 244.415 Deslgnated fvnds:. Fixed Assets Post Grant Continuity Major Repairs Fund Residents Furniture & Equipment (Renewals & replacementsl 8.927.310 198,1481 57,195 8,886.357 50,000 453,841 361,693 92.148 66.745 66.745 9.413.419 3.170.963 13,020,314) 137,290 9,701,358 The Fixed Assets DesSgnated Fund represents the net book value of unrestricted tangible fixed assets less the outstanding balance of the long term Property Loan. Each year amounts are transferred to or from the Fixed Asset Fund, representing the movernent in the net book value of the unrestricted tsngible fixed assets in the year and the reduction in the long term loan. as catal is repaid. The Post Grant Continuity Fund represents money set aside to cover costs incurred where funding has ceased. The Major Repairs Fund represents money set aside to cover major repairs on CAH bulldlng. Every year an amount is allocated to ead) Component (windows. bathrooms. floori he3tin8 and elettricity Svstems, lift, and kitchen) based on their useful economic lrfe and estimated replacèment costs. The Residents Fumiture & Equipment Fund represents money set aside to replace residents, fvrniture and equipment both in their rooms and in the communal area. The Access control fvnd represents money Set aside to replace the old attess control system. 29 Chorty rogi¥¢red in ErFbnd ond Wol85 1147794 Ccnpony lim& by yyantee 0807539
LARI IAS
ANCHOR
HOUSE
CARITAS- ANCHOR HOUSE
NOTES TO THE FINANCIAL sfATEMENT5 (¢ontMiued)
FOR THE YEAR ENDED 31 MARCH Z021
17 Restrlrted Funds
At31
March
At31
Mar¢h
2021
Income Expendlture Transfers
Personal Development
Education, Training and employment
Food Coordination
Oonation in kind
Home and hope appeal
Assessment Hub
Covid-19 grants
21.850
91,028
122.6291
191,0281
ii.&xJi
156.3581 113.1321
141.4CQI
121,102
1488.5161
722.0331 113,1321
69.490
73.703
9,528
16.102
41.831
488.516
750.587
26.4C8
41,831
At31
March
2020
At l Aprll
2019
I)Me Expend5ture Transfers
Personal Development
Education, Training and employment
Move-on
Your Space
Donation in kind
Home and hope appeal
Assessment Hub
779
779
41,687
71.711
15.538
142.478
75,108
23.2C(I
369.722
41.687
114.418
20.125
142.478
30,7(KI 1137,2901
42,707
4,587
102.410
9,528
16.102
26,409
150,483
356.SC6 1137.2901
The transfers represent the capital expenditu in the year.
Personal developmerrt
This fund supports our vulnerable residents wtth high leve15 of isolation, low self esteem and complex thallenges on their
Journey back to indepèndent livin8through structured personal development and social activities.
Edu¢atlon tralnln8 and employment
This fund supports our residents with education. training and employment opportunityes. Learning new skills helps our
residents to improve theirself-esteem and 83in experience so that they can re-enter the workforce.
Donatlon In Klnd
This fund presents the value of fumiture and other items donated by various organisations durlng the year.
Food
LARIIAS ANCHOR HOUSE CARITAS- ANCHOR HOUSE NOTES TO ThE FINANCIAL STATEMENTS Icontinu•d) FOR THE YEAA ENDED 31 MARCM 2021 18 Analysls of net assets befvRen fulld5 Unreslrlrted Deslgn*ed Restrfrted Fund5 Funds Funds Total 2021 31 Ma¢<h 2021 Fixed assets Current a55ets 10,525.340 1,323,136 1,247.807 1385.5851 160,8791 1104.9761 12,081,C($51 832,575 9,631,263 10,525,340 2,612,774 1446.4641 12.185.981) IQ,505,669 41.831 Current liabilities Lon8 temi liabilities Total net assets 41,831 Unrestrfcted Deslgnated Restrlrted Funds Fur Funds T¢)tsl 2020 31 March 2020 Fixed assets Current assets 10,757.020 818.673 570.586 1263.2661 158.5911 1310,9921 11.812,0721 244,415 9,456,943 10,757.020 1,415.668 1321,8571 12.123.C641 9,727,767 26,4C6 Current liabilities Long term liabilities Total net assets 26,403 19 Capltal ¢ommrtment 2021 2020 Building works (the Barn project} 629,523 31 Cknrty re9 in En9lond ond Woles l )47794 C¢ynFxJny kn.rn1 by gJEYanko 0807539
LARI IAS ANCHOK HOUSE CARITA5- ANCHOR HOUSE NOTES TO THE FINANCIAL sfATEMENTS (continued) FOR THE YEAR ENOED 31 MARCH 2021 20 Leasln8 commltments 2021 2020 Withln one year Between one and five years 12.022 31,712 43,734 12.022 43.733 55,755 The telephone system and photo copier are held under operating lease arrangements. 21. DETAILED STATEMENT OF FINANCIALACTIVITIES FOR THE YEAR ENDED 31 MARCH 2020 Unrestrlcted Restrlrted funds fund5 2020 Totsl funds 31 March 2020 INCOME FROM Donations, grants ind legacies Charitable activity.. Anthor House 191,364 369,722 561.086 2.958,241 2,958,241 Other tradin8 activities- Rent re•vable 21.358 21,358 TOTAL INCOME 3.170.963 369,722 3,540,685 EXPENDITURE ON Cost of raising funds 161,994 161,994 Charitable activity= And)or House 2.858.320 356,506 3,214.826 TOTAL EXPENDITURE 3,020,314 356,506 3,376,820 Net Income 150.649 13,216 163,865 Transfers between funds 137.2 1137.2901 NEY MOVEMENT IN FUNDS 287.939 1124,0741 163,865 TOTAL FUNDS BROUGHT FORWARD 9,413.419 150,483 9.563,902 TOTAL FUNDSCARRIED FORWARD 9.701.358 26.409 9.727.767 32 Chority regi*erod in Engbnd ond wo$ 1147794 C(xnpiny lirni by sunranlEe 0807539
CARITAS ANCHOR HOUSE bomelessness TRUSTEES ANNUAL REPORT AND FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Company Reglstration Number: 08075329 (England and Wales) RegSstered Charlty Number. 1147794 RSH ReBlstratlon 4841
CARITAS ANCHOR HOUSE CONTENTS Pale Trusteeg Annual Repryt 1-13 Independent Audltorfs Report 14-16 Statement of Flnanclal Artivltl•s 17 Balantt Sheet Statement of Cash Hows Note5 to Financlal Ststements 20-32
CARITAS ANCHOR HOUSE CARITAS- ANCHOR HOUSE TRUSTEES. ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021 The Trustees present their report and financial 5tstements for the year ended 31 March 2021. The report. whl¢h Constitutes a trustees. report for the purpose5 of charity legislation and a director< report for the purposes of company legislation. ha5 been prepared in accordan with Part Vlll of the Charities Act 2011. The financlal statements have been prepad in accordan with the a¢counting policie5 set out In note l and comply with the charitablè cornpany's Memorandum and Articles of As$0¢iation, applicable laws. the Companies Act 2(X)6 and the requirements of the Statement of Recommended Practtce"Accounting and ReportinE by Charities" SORP 2015 IFRS 1021 ISe¢ond bulletin effective January 20191 and the requirements of the Statement of Recommended Practice ISORPI Accounting by Reglstered S¢xial Housing Pmider5. Reference and Admlntstrntl¥e InforntIOn Constltutlon The charitsble company 15 8overned by its Memorandum and Artide5 of Association. The members of the Board of Trustees are the companvs directors ond trustees of the Charity. The Trustees who held office during the year under review and up to the date of this report are as follows Trustees Mr Simon Hall Mr Charles Abel Smith Ms Emma Butterworth Mr Patrick Davis Mrs Emer Delaney Mrs Caesar Gordon Mr Andrew Haines Father Dominic Howarth Sr. Teresa Ann Hughes CRSS Mrs Cate Kirkbride Mr Graeme McLean Mr Robert Townsend Mrs Sarah Wright Father james Mackay Matthew Williams Desmond Patrick Connor5 Chair Resigned 30 May 2021 Resigned 2 July 2020 Resigned I September 2020 Resigned 31 March 2021 Resigned 22 October 2020 Appointed 13 October 2020, Resigned 9 Marth 2021 Appointed 20 September 2020 Appointed 16Juty 2021 We have supported the operation of thefollowing Sub-commrttees.. l. Finance, Audit, Governance, and Risk SuKommittee 2. People & Culture Sub-committee 3. Execijtive Sub-committee 4. Premises Management Sublommrttee 5. Frontline Services Quality Assurance and Impart SutF 6. Values su1cOMmittee Committee Prln¢lpal Address Caritas Anchor House 81 Barking Road Canning Town London E16 4HB Audltor.. Haysmacintyre LLP. 10 Queen Street Place, London, EC4R IAG Solltitors.. Bates Wells. 10 Queen Street Place, London, EC4R 18E 8ankers: Barclays. UK Banking. I Churd)ill Place. London E14 5HP and NatWesL 1-11 The Broadway. London. E15 4DX Cknrty rtgislwed in Englond ond Wol95 1147794 Compjny limi*d by gvorontee 080f539
CARITAS ANCHOR HOUSE CARITAS- ANCHOR HOUSE TRUSTEES, ANNUAL REPORT {contlnu¢d) FOR THE YEAR ENDED 31 P4lARCH Z021 Ab¢xrt Us Carits5 Anchor House ICAHI is a homelessnes5 charity. and for over 50 years has provided a safe place and support lor people to rebuild their Irve5. We are based in the London BorouBh of Newham which has the highest levels of homelessness per capita in the country. A5 a result. there is more demand for our services than ever before. Durin8 the last year we have reflected on our purpose and our values and alonBside our team. our residents and manv other stakeholders to our work. We have created a new mission statement and a core set of values which will guide our work going forward. Our mission is to bulld hope, enable lasting chan8e and end homelessness for people in East London. Ow values guide our interactions and decision-makin8 proo5ses at all levels within the organisatiort. They are.. Compas51on- we care about people. value thr views and eXper1ere5 and putthem at the heart of all we do. Inclwlon- we celebrate diversity. promote indusTwty and respect, and challenge inequality. Growth- we support people to breakthrou8h barriers and fvlfil their hopes and potential. Collaboratlon- we're stronger and can have è bigger impact when we work in partnership5 and build 311Sances. Our service combines the provisiort of a Safe placeto live for¥ulnerable aduks experiencing homele55ness, wlth in-house delivery fo¢usin8 on physical and mental heakh. Complex health issues, education. employment, financial literacy and tenanry 5U5tainment. Each person who walks through our doors re¢eNes a hjll assessment of their needs and a bespoke programme of in-house and external services created to best preparè that individual for Independent living. We have 140 bed-spaces making Caritas Anchor House the largest provider of homelessness ServIS in Newham, and one of the largest hostel Services in the country. These bed-spaces are shared between 40 setvices- our core h05tel and our Asse55ment Hub. The AsseMent Hub grew from 20 to 39 bed spaces over the course of a year and included prO$10n for those in the community with no re¢ourse to publicfunds and who are often unable to access homelessness servlces. We are proud to art as a beacon of hope. In the year endin8 31st March 2021. we accommodated and supported 278 people, and helped 137 to move on p05ftivety from our services. 95 left homelessness behind for good and moved into their own homes, and 42 moved into short-term accommodation such a5 Other support Servi$. Richard was one such person. who has since moved into his own home. He said, -I'd been o cob driverft*r20 yeors ond hod o comfortuble life, but when I lost my portner to concer, my worfd collupsedandlended up on the streets. When lfirst urrived at Coritos Anchor House. Ididn't think IcoLtld rebuild my life. But being somewhere safe t7ndknowing l Glwoys hodsomeone there to tolk to keptme gng. I'dbeen woiting nftne monthsfor ¢ounselling, but I hod o cour)sellor within three weeks of my keyworkerfinding out My keyworker reg(J1¢7rty keeps in touch to how l om and if i need ony help. slowly butsurety. Istarted to reconstruct mylife. My outlook hus chonged completely ond it hos soved my life without o shadow of a doubt. iftel Ilke there hope,. o chonce thot I con rebuild rnypositn in society." Structure, Goveman¢e & Management CAH is a registered charity and company limited by 8uarantee as well as a Registered Provider of S¢xial Housing. We are regulated by a number of bodies. including the Charity commi10n. Companies House, the Fundraising Regulator and the Regulator of Social Housing. awty in En9lond ond Woh5 1147794 Cornp)ny limit by 0807539
CARITAS ANCHOR HOUSE CARtrAS- ANCHOR HOUSE TRUSTEES, ANNUAL REPORT l¢ontlnued) FOR THE YEAR ENOED 31 PW¢CH 2021 During the year the Tru5tee5 have considered the recent updates to the charity code of governance and the National Housing FederatFon's code of governance. and have undertaken to employ a consultant to review the charitws compliance with these codes. A Consultant has been appointed and started thi5 work in lune 2021. Our Trustees meet on a quarterly basis to review the performance of the organisation and plan for the future. The professional back8rounds of the Trustees include ffinancial manaEement. business plannin& charity management, social enterprise, human resources and diversity, law, risk management. social care and community involvement. marketing and investment banking. The day to day running of the Charity is delegated to the Chief Executive and Strategic Management Team I'smfi. Our SMT is led by our Chief Executive. Amanda Dubarry. who joined us in March 2018 and has an extensive background in the homelessness settor. She was joined by both John Lowery, Director of Frontline Services. and Siva Selliah, Finance Director. in 2018, both of whom come to us with many years. experience in the houslnB and care sertors. Irh June 2020 a fourth member of the Senior team, Craig Hardaker. joined as our Director of People, bringing with him a strong background in the charity sector. Key management remuneration is set by the Trustees by reference to the degree of seniority and responsibility of the post. by benchmarkirtg against similar roles in charities of similar size and complexity and in the light of performance appraisal. TnBteè re¢ruitmenL Inductlon and trainln8 The sUPPOrt of our Trustee5 Is vttally important in ensuring we deliver the best Possible service to those in need. and in rai5Ing awareness and support for the essential and life changing work that CAH provides. Between autumn 2020 and summer 2021, three new trusteesjoined our Board which enabled us to broaden our Board ski115et and meet identified skills gaps. All newtrustees are provided wlth a trustee induction pack and Induction process, and are encouraged and supported to attend specialist trainin8 relating to the roles and responsibilrties of a charity trustee. including safeguarding. ObJe¢tlves &Artl¥ltles Carr(as Anchor House's objects contained in its Memorandum and Articles of As$0¢iatiort are "to further the general charitable work5 of the Roman Catholic Church by providing servios and facilities for the relief of poverty and sufferin& the advancement of education. the promotion of social justice and othercharitable acts which promote the development of all individuals and communrties in need for the public benefft of people of all faiths and none.~ We provide supported accommodation to 140 pe¢)ple experiencing homelessness in the London Borough of Newham at any one time, and support them to move on from homelessness and go on to lead fulfilling INe5. We do this by.. Providing a safe place- to make sure that people experien¢in8 homelessness have somewhere safe to stay as they begln to bUIld their lives Offering support- to encourage and enable people to build a betterfuture forthemselves. through the provision of personallsed support, educational and life skills opportunities Building resilience- to build networks of suppory and empower people to navi8ate services with confidence and be a proartive member of thelr community Outside of and beyond lrfe at Carita5 Anchor House. Our frontline teams work direttly wrih residents during their time at Carita5 Anchor House. Each resident, in both our core and assessment hub services. is assigned a keyworker who will guide them through their stay, and support5 them to access a holistic seThice offering relating to health and wellbein& education and employability, financial management and securing and sustainin8 new tenancies. Residents can participate in trainin& workshops and activities includin8 Chorty rtyisrJ in Ej)nd ond Wbl•s I Id7794 Cwyjny Iwnihd by gwronteo 0607539
CARITA.% ANCHOR HOUSE CARITAS- ANCHOR HOUSE TRU5TEES' ANNUAL REPORT Icontlnued) FOR THE YEAR ENDED 31 MARCH 2021 cooking dasses. money management trainin& mindfulness sessions. Counselling, CV workshops and events. Our work is the primary response to homelessness in the borough. and the goal for eath resident is to move on from our service wh the skills to navigate their next chapters with confidence. Publ1¢ benefft The Trusteès Confirm that they have complied with the duty in Sertion 17 of the Chartties Act 2011 to have due regard to the Charity Commission's gefteral guidance on publrc benefit"Charr(ies and Public 8enefiV' in the exercise of their powers and responsibllities as detailed in the Artides of Association and under charity law. Value for Monev The Charity is always consuous of the need to promde value for money to our users and stakeholders. As a re8lStered provider of social housin8 Wlth the Regulator of Social Housing I'ASH'I, we are committed to delivering value for money and continuing to meet the RSH'S Value for Money Standard. Our rental and housing related support levels are set in consultation with London Borough of Newham. to ensure that they. as the principal commi55ioners of our servicès, feel that they are receiving such value. We regularly review our perfomiance and the way we work to CDntlftLte developing the impact of services and using resources in the most effettwe and efficiènt way. Value for Money metrlcs In response to the Regulator of Social HousingTechnicaS note of June 2019, the Chartty reports Value for Money metrics. There a seven metrics covered by thi5 technical note. CAH is a unique chartty operating in the homelessness sector, and as such, we could not find a comparable charity to publish comparaiives as required in the technical note. Metrk l- ReSn¥estment% Thls metric looks at the Investment in properties lexisting stock as well as new 5upplyl a5 a percentage of the value of total properties held. The charity has not provided any new supply in the year. The percentage reflects investment in the Barn project. to increase our accommodation capaaty by IS. which Ès currently a work in progress and due to open in the nèxt financial year. The Charis metric for reinve5tmentfor the year was 0.29%12019120.. 0.63%> Metr1¢ 2- New supply dellvered % No new supply has been delivered by the tharity in the year for s¢xial housing or non-sotial hou5inB. Metr1¢ 3- Gearlng % The Charity's property. Anthor House, is owned freehold. The charityhas two longterm loans, onewith Natwest, seCud against this property. and thè other with Homeless nk. The balance outstanding at 31 Mar 2020 of £2.262K12019120- £2,192KI repSentS 2.99%12019120:13.12%1 of Housing depreciated value owned by the Char4ty. Metrlc 4- Earnlng$ Before Interes¢ T¥ Depreclat5on. Amortlsaoon. Major Repalys Included IEBITDA MRI) Interest Cover % The ¢harity paid interest of £61K12019120.- £72KI in the year in relation to the loan finance referred in metric 3. Interest is therefore covere<l 1804%12019120..739%1 by EBITDA MRI. Metric 5- Headllne social hoUnI cost per The cosr per unit for the year wa5 £25.40112019120.. £23.6061. The c05t fflects the average cost of housing and support services offered to our residents in the year. The support services vary from low to medlum. including services to people CIKfftty lthd in Engbrd ond 1147794 limi*l by 0807539
C_ARITAS ANCHOR HOUSE CARITAS- ANCHOR HOUSE TRUSTEES, ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2021 sleeping fough and residents with multiple and complex needs. The increase in cost In 2020121 compared to that of 2019120 reflects Covid related costs. Metr1¢ 6- Operatlng Margin loveralll % The operating mèrgin of the charity as a whole for the year wa5 18.56%12019120: 6.31%1. Metrfc 7- Rthm on ca1 em0ved IROCEI % Thi5 rnetric compares the operating surplus to total assets less CyrAt liabilTties. Forthe Charity as whole this was 6.17% for the year12019120- 1.88%) Fundraising Our supporters are incredibly important to us. and we bdieve in maintaining the highest Possible Standards when fundralsing. We are registered wtth the Fundraising Regulatorand are committed tothe Fundraising Promise and workin8 in a way that is compliant with the Code of Fundraising Prattice. We are also organisational members of the Chartered Institute of Fundraising. This rep¢yt covers the requirements d)aritie5 must follow as set out in the Charities Act 2016. We keep our fundraising poliLy and practices under review and ensure that ourfundraising meetsthe standards required in law and reflects best practice, so that our donor5 can gwe wtth confidence. Due to the <1-19 pandemic and the restrictions. many of our traditional fundraislng methtxls were not able to go ahead, such as in-person events and fundraising in schools and faith groups. Asthe world became more digital due to the restrictions. we focussed more on digital and virtual hJndraisin8. takin8 Part in initiatives such as the 2.6 challenge which was organised in place of the London Marathon. We continued to apply for grants. encoura8e donation5 and ran our very first wrtual event for supporters. We saw a small number of our regular donations cancelled. due to the personal circumstances of our supporters during such a difficult time. However. the pandemic resulted in many emergency funding opportunitie5 bein8 made available. primarily by tTUSts and corporate foundations. and we had success in this area which resulted in an increase on fundraising income Ifom the previous year. We partlClP3ted in the Big Give Christmas Challenge 2020. whereby donations made during the online campaign were match-funded, which raised a restricted funding of £28.558 to enablethe expansion of our servi¢es by building additional accommodation. We were a150 grateful to receive a high volume of grfts in kind during the year. of essential items to benefit our residents during the pandemic, induding food, toiletdes and PPE. In the year, we grew our fundraising team and welcomed an Individual Giving and Le8acy Specialist and Community and Events OffJ¢er- both of which are new roles and had been planned pre-pandemic- to enable the charityto secure support from a wider range of sources. IV5 important to us that everyone we interact with feels free from undue influence when they consider donating. We ensure our fundraisers can recognise si8ns of potential vulnerability. $0 they can manage conversations and take action in the m05t appropriate way. We acknowledge that people's circumstances than8e, and we promise to respert and art on information shared if one of our supporters is in a vulnerable situation- we did not receive any such notification5 in the financial year. We are a150 signed up to the Fundraising Preference Service to enable individuals to opt Jt from receiving fvndraising c¢mmunications from us - we received zero requests from this service during the year. We promise that we will treat all complaints seriously, investigate them fully and report back transparently and appropriately. Our aim is always for our supportèrs to have a hi8h*uality èxperience with us, and we are pleased that we did not receivÈ any complaints about our fundrai5in& marketing or related ¢ommunications- done by ourselves or any third parties- in the year. Chatty rty1sled in EnBhnd und Wbles 1147794 Cornpuny 11rni byGvoronbg 0807539
CARITA.£ ANCHC)R HOUSE CARITAS- ANCHOR HOUSE TRUSTEES, ANNUAL REPORT {contlnued) FOR THE YEAR ENDED 31 MARCH 2021 We did not work with any profèssional fundraisers or commèrcial participators. as defined by the Fundraising Regtslator. Should this be 50methit)g we do in the future. we 11 of course monitor the actitieS carried out to ensure they meet the same high standar¢J5 we expect of our own fundraisers, and have any required agreements in pla. srRATEGIC REPORT Achlevements and Perforniance Our Trustees regularly remewthe pro8ress of the organisation. and the main objectives which were achieved during thls year to meet our long term strategy were.. Despite a verychallengin8 economic backdrop. we We able to mainta5n our service levels to our stakeholders. We achieved a 95% room utilisation rate. housin8 and supporting 278 people across the year. Despite the majority of our beds beinB funded with a low support level service we We able to take in 203 people wlth one or more aa5 of complex need. suth as substance misuse. mental hèalth issues. or physlcal health issues. We continued to strengthen our work wth residents. sUPPOrting 11 residents to move to our on-site flats. 42 into 5hort-term accommodation such as other 5UPPOrtservices. and 95 fesidentsto move intotheir own homes. 17.6% of our residents were in employment during the year. and we recorded 184 resident attendances at education and employability sessions We wnducted our first-ever digital Resident SuNey in December 2020. 78% of residents rated the quality of the support from CAH as excellentlvery good (response rate.. 68%). Despite the challenging environment from a fundraising perspertive, and the impact on our usual fundraising adlvities due to the Covid-19 pandemic, we raised £1.034k income from grants and (lonaOn$ in the year. We undertook and completed two significant refurbishment projects within the wmmunal area5 of the bulldinB in the year: The refurbishment our residents dining room which join5 With our recently refurbished residents lounge. This space had not beèn refurbished forsome years and hèd suffered damagefrom lèak5 above, leaving it in an unSnspiring state. It has been transfomied into a bright open and pleasant space which contains our food store for donated food item5. 2. The refurbishment of a meeting room to ueate a Wellbeift8 and Spirituality room. providlng a quiet space for refiertlon or mufti faith prayer. Wrth both a diverse resident and staff group and such a busy operating environment. we felt it was essential to provide thls quiet space for the spiritual wellbeing of our people. The context in which we work has become ever more challenging over the last few years. The housin8 trisis continues to deepen. wages remain stagnant and house prices and rents are beyond the reach of many of those living locally. The number reported as sleepin8 roiJ8h in the Borough of Newham continued to rise at a worrying pace, estimated to be It a year, and CAH worked in partnership with Newham Counal to run a service to provide accommodation with 5UPPOrt to people sleeplng rough with high and complex needs. The Assessment Hub Service. which opened in Oe¢ember 2018. is based within CAH. Placements are short temi lup to six week length of stay) and residènts are given high levels of staff support. During the period from April 2020 to the end of the year in review. March 2021. the Assessment Hub was able to house and support 118 residents, and reived 121 referrals. At the point of exiting the A55e55ment Hub. residents report Significant improvements in their health and wellbein8. In the year, 28% reported improvements in their health. and 58% reported an increase in personal wellbeing. The service is also rated positively by residents. with 92% responding they are satisfied with the support provided by the Assessment Hub service, and 86% feeling more confident to live independently. The service's rapid and person-centfed interventlon has a lasting impact with IOIYA of former residents reportin8 havin8 sustsined thelr tenan(v durlng follow-up calls undertaken six months after leaving the servi. Cknrty rwdisknd in Erghnd ond Woles 1147794 Compuny limitqd by gwront8& 0807539
CARITAS
ANCHOR
HOUSE
CARITAS- ANCHOR HOUSE
TRUSTEES, ANNUAL REPORT {contSnuedl
FOR TrIE YEAR ENDED 31 MARCH 2021
Our core accommodation serwce receivèd 244 referrals across the year, and provided a home and 5UPPOrt to 160 people.
Of the 244 referrals received we were able to welcome 58 new residents, or 24%. just l in 4 of those referred because of
the la¢k of housing opportunities and the parricular needs of the indNidu31s which exeded our support capabllities.
The number of new residents we were able to accommixlate wa5 reduced because of the impact of Covid. with existin8
residents stawng longer than normal due to lockdown restrictions throughoutthe year.
The neèds of our resident group rna1ned complex and throughout the 12.month period, almost three quarters of the
residentswesupported173%1 had one or more complex needs (issues wth Substance misuse. mentsl health, and physical
health).
Research shows that across thè UK, an average of 7% of people Itving in supported hous1 afe in paid employment. At
CAH, 49117.6%) were in paid employment in the year. We run an Education. Training and Employment service with a
wide range of artivitie5 including ESOL IT, CV and interview skills se55ions. In the year. we recorded 184 attendances at
employment and education sessions, a Significant reduction on previous Yea activities in thi5 area due to the impatt of
Covid and our restrltte(l ability to deliver these seM¢es in-per50n.
Sadly. we had to c105e the community based Your Space programme. This formed part ol our approach in relation to
defining our connectivity with community through the experien of our residents rather than standalone within the
neighbourhood. The impatt of the pandemic meant that our service5 with Powerhouse. Pinnacle and MTC learning were
closed down due to the coronavirus pandemic. The ESOL IEnBlish to Speakers of Other Lan8uagesl conversation clubs
with MTC were re-introduced within CAH as part of our NRPF INO Recourse to Public Fund51 employment SUPPOrt offer.
These new seryice5 have been Érouped within a new Communty Partnership Team. This now includes our employment
support to residents. resident engagement with Qts"iens UK as well as voluntèering.
Specrfi¢ frontline service achievements included..
we provided a home to 287 people who We experienang homelessness
we supported 11 of our residents to achieve first-sta8e move-on into our onsite move-on studio flats
we supported 137 of our residents to move on positively from our service- 42 into short-term accommodation
such as Other support Services. and 95 into their own homes
we enabled our residents to complete 751 volunteering hour5 cornpletin8 activities they indicated interest in.
and community & corporate volunteers to complete 1066 volunteering hours. These hour5 represent a
significant increase on our previous years volunteering levels
76% of our core service residents developed Cvs
we provided opportunities to enable 184 attendances at employment and education related activities such as
work taster Sessions, CV writin& interview skills and assessments
49 sIdentS had a job In the year. of which 18 residents 8ained new employment
We are fortunate to have a very talented. de
CARITAS ANCHOR HOUSE CARITAS- ANCHOR HOUSE TRusfEES' ANNUAL REPORT {¢ortinued} FOR THE YEAR ENDED 31 MARCH 2021 Alongside these measures we distributed food for all 140 of our residents Iwho u5u3lly self-caterl. increased our cleaning prowsion significantly, increased our volunteer effort, and as the pandemic continued. we increased our ni8ht time staffing cover io prevent issues of antl-s¢xi31 behaviour that had arisen after some weeks of lockdown. We also lobbied successfully to ensu earfy accesstothe vaccinefor both oUr$1ents and ourstaff. this meant considerable pressure on our management team but we are delighted to report that we have had no COVID positive ¢a5e5 arnon8St our resident group to date ènd that we have maintained a sah and supportive environment throughout the pandemic period. The cost of COVID-related safety measures in the year amounted to around £547K. Our fvndraising team have worked hard to cover these costs through additional income from supporters. and have had success here. We are proLKI of the way in which we have managed to continue our operations and to adapt our support services to continue to provide vital servlces to people experiencing homelessness, and pleased that wè are managingthe crisis 11 in financial tern)s so far. The political imperatives of the g(svernment thange. Recent examples include: a bold cross-govemment plan of action to sign[fican¥ reduce the number of people sleeping rough the Covid-19 Everyone In stheme which has seen thousands of people sleepTn8 rough housed in hotels since the end of March 2020 and the new Rou8h Slèeping Taskforce. working to find safe. lon8.tem homes for people who had prevlously been sleepin8 rou8h, beyond the Covid-19 lockdown. These Inltiatives impart on us and the way we delNer our service, creating opportunities for u5 alongside a lack of predictability of fundingsour¢es, and often shorttemi, non-recvrrentfundin8 Streams with the corresponding difflculties for staff and rècriLitment, which challenge our abiltty to provide consistent levels and range of seNices. We very much support the view expressed in the recent Kerslake Report. which we provided a submission to, which points to the need to maintain funding levels to drive down levels of homelessness. tJring the year we have been actrve in supporting sector campaign5 calling for: the continuation of 'Everyone In. funding for placements of rough sleepers during the Covid pandemic I'Everyone In for Goo¢J'l early access to the Cowd 19 vacone for both 5tsff working in the l)omelessness sector and those experlencin8 rough sleeping and homele55ness the end of the condition of No Recourse to Public Funds INRPFI the govemment to Support Don't Deport those with an undear immigration statu5 who are expèriencing homelessness Rlsk Management TheTrustees have examined the finanaal and operational risks which the tharityfaces and confirm thatsystems, controls and revSew pro¢edures have been established to mitigate exposure to these risks. The Charity has a Iwe Risk Register, and each of the ChariVs Sub-committees reviews relevant risks on a quarterly basis. The fvll Risk Register is updated following &Jb-Committee meetings and reviewed quarterly at full Board meètings. The printipal risks, togrther with the appropriate mitt8ation strategies. have been identified as: lal Inability to 5er¥lce debt finance and on-801 cash flow. Our loan financing Is funded through housin8 benefit and rents at CAH which significantly mitl8ate5 this risk. In additioft. we have stretching fundraising targets and high performance in this area which is reassuring and further reduces the likelihood of us experiencing cash flow problems. C"ty rryier8d in ond Wolès 1147794 G)mp*y INntsd by9uoronkn 0807539
CARITA.S ANCHOR HOUSE CARITAS- ANCHOR HOUSE TRUSTEES. ANNUAL REPORT Icontlnued FOR THE YEAR ENDED 31 RCH 20ZI Ibl Fallure to secure appropriat• fundini from Trusts. Statutoryi Corporate. Communlty or Indlvldual donors. IndLEdln8 Impact of Covid-19 on fundraising income lor core artivitie5. We have a stron8 track record of raising good sums of money through fundraisin8 and have retained the key post holders with the experience of achlevin8 this. During the yearwe appointedtr40 additional fvndraisin8 team members, an Individual Giving and Legacy Specialist and a Community and Events Officer, to enable the charity to secure support from a wider range of sources. We monitor budget performarKe closely and will make decisions to restrict expenditure to match income if required. Icl Reductlon In referral I Increase In volds levels. We have had high levels of referrals up until April 2021, but are experiencing increased voids since this time. We a working c105ely with our referral partners. primarily Newham's Homele55ne55 Prevention and Adwce team. to address this matter. Idl Non Compllan(e wlth re8ulatSons. Our Management Team have responsibility for ènsuring that we are compliant with the range of regulatory reQu4Ments which relate to ourwork and our Premise5 Sub Commltteè and Board receive quarterly updates on key compliance items. As a 8rowng organisation, we are lookin8 to appoint a Compliance Specialist during autumn 2021 to further our compliance work and mitwdate thos key risk. lel Increase In rent arrears le1> We have focussed on U¢Ing nt arrears leve15 since the appolntment of a Rent & Housing Management Specialist in 2020. and we are very pleased that a significant reduttion has been achieved. This reduttion has been maintsined despite the pressures of Covid and a number of our sIdents losing their employment as a resu. 11 Use of o¥ertlme amongst employees In manual worf( roles. We ore committed to staff wellbein8 and as such want to ensure that any overtime worked by our team members does not become regular or excessive. This yearwe have increased our 518n off processes and scrutinyaroLtnd overtime to demonstrate our intentions here. Flnanclal re¥lew f¢x ihe year During the year the Charrty feceived income of £4.437K12020.. £3,541KI and incurred expenditure of £3,659K12020: £3,377KI. resulting in a surplu5 of £778K12020.. surplus of £164KI. of which £15X relates to restricted funds and £763K relates to unrestricted fvnds. The increase in income of £896K125.3%1 from prewous yearfs income was largely due to an additlonal income of £488K from donations and grants received towards Covid-related Safety measures. an additional Income of E261K from extended cold weather projert and increase in numberof complex bedspaces. There was also an In¢aSe in rental income of £188K as a result of new rents set and agreed with the local authority forthe year. The cold weather project was due to come to an end in March 2020. but was extended tojuly 2020 due to thmd. The actual increase in expenditure from the previous yearwa5 £447K after adjusting forthe one-off expenditure of £165K Incurred on the refurbishment of restdents. lounge in the prewous year. This increase in expenditure of £447K113.91%1 was largely attributable to COVIO-related measures and additional expenditure incurred on the extended Cold weather projert and additional complex needs beds. During the year we spent around £547K on Covid-related measures. and around £239K on the extended cold weather project and additional complex needs beds. Flnanclal revlewforfuture pertods Our budget and forecast for 2021-22 reftects impacts of Covid and void 1055e5 due to some planned maintenance work on Rèsidents, rooms. The void losses will be funded from free reserves and designated reserves as prevlously planned. The expenditure on planned maintenance work will be fvnded from resetves designated for this purpose. We will also be delivering new Assessment Hub and Support Services at other sttes. which come into operation between August 2021 and September 2021.The total annuali5ed revenue expected from these Services is around £7C¥)K. Trustees are pleased to report that at the datè of approval of this report the Charity has perfomied well. CknTty ryistred in Engb)nd ond Woles 1147794 Cryny Iwnited by gLKJr¢nkn 0807539
CARITA.£ ANCHO HOUSE ARITAS- ANCHOR HOUSE TRUSTEES, ANNUAL REPORT {contknued) FOR THE YEAR ENDED 31 MARCH 2021 Reserves At 31 March 2021, unrestricted reseThes Stood at £10.464K12020= £9,701KI, of which £8,383K is represènted by the net book value of fixed assets. Of the balance of £2,080K. £702K has been de518nated for a cytlical programme of major repair5, £146K forthe replacement of residents. fumtture and equipment both in their rooms and in the communal areas, £350K for access control and £50K to cover grant ce55ations, and the remainin8 £832K is held in general reserves. The Trustees have the authority to make these designated hjnds available for other purposes if required. The Trustees have reviewed the reserves of the Charity taking into consideration future activities, uncertainties. and risks and have concluded that the appropriate level of reserves required is in the range of to £1.2M. We wlll continue our efforts to build these reserves over the next few years from £832K12020.' £244KI to the requir level through prudent financial management. As part of this exercise. Trustee5 have also reviewed the management accounts for the rjrst quarter of the year 2021-22 and the forecast for the year in liBht of the void1055es and planned maintenance work, and are confident that the Charity will continue to be able to build towards the required level of resewe5. The Trustees have also acknowledged that the Charity is lar8ely reliant on reseThes for future growth and expansion and have agreed that the Charity should be able to use part of the reserves for this purpose if needed provided that this does not impact the existing operation5 and that strategies are in place to replenish them. The Board of Trustees has designated a Post Grant Continuity erve of £50K12020.' £50KI to provlde interim cover where a funding source has ceased le.8. for a staff positionl. until replacement funding can be found. The 8oard of Trustee5 has designated a Major Repairs fund of £702K12020.. £454KI to ensure that the Charity has sufficient funds to maintain its building asset Whe our residents live. in good condition induding planned maintenance and replacement of various components atthe end of their useful economic life. The Board of Trustees has designated a Furnitu and Equipment fund of £146K12020- £67KII to ensure that the Charlty has sufficient funds to replace furniture and equipment both in fesidents, rooms and in the communal areas. The Board of Trusteès has designated an Access Control fund of £350K12020.. nil) to ensure that the Charity has sufflcient funds to replace the old access control system. The Fixed Assets Fund of £8,383K12020= £8.886KI is intended to represènt the net book value of unrestricted tangible fixed assets. less the outstandin8 loan finance raised to lacilitate the acquisition and development of capital improvèments. Plan5 for Future Years During the year wè developed our new five-year Strategic Plan for the pèriod April 2021 to March 2026. Thls plan sets out an ambitious roadmap around flvè key goals. By March 2026. we wll- l. provide additional specialist supported housin8 2. offer an expanded range of complemèntary 5eryice5 3. be a sustainable or8anisation 4. be a great place to work S. be a trusted voice in the community and sector We were delighted that we were able to respond to local pressures around homelessness in what was an unprecedented yearfor us all. We Increas the number ol beds available in ourAssessment Hubfor people sleeping rough wlth complex needs from 20 to 39 in late 2019, having secured additional funding via Newham Council and the Oty of London for the cold weather period. With lockdown measures in place until laTr JUW 2020, we extended the stay of these residents to keep them safe. and took on a further group of residents accommodated using funding secured by Newham Council for people with no re¢our5e to public fundin8 INRPFI under the government'5 Everyone In initiativp. Thi5 increased role 10 ChoriTr regis in Ergk)rd ond Wol05 1147794 Cornwny limi*d by gwrankn 0807539
CARITAS ANCHOR HOUSE CARAS- ANCHOR HOUSE TRUSTEES, ANNUAL REPORT {contlnued) FOR THE YEAR ENDED 31 MARCH 2021 working with those experiencing rough sleeping led to us partnerir4 with a group of providers In blddin8 to deliver Newham Covncil's new Inte8rated Rough Sleeper Support seThi, which we are delighted we will be helping to deliver from September 2021. In aifvance of this. we have a150 begun dellverin8 a new A$5essment Hub se1. off-site from August 2021. We a now close to startln8 building work on an additional 15 units of accommodation which will house people who had been sleeping fough, which will be known a5 Hope Street la name picked by our re5identsl. The project will allow us to provlde contemporary, individualise(J and safe accommodation, al increase the capacity of our buildin8 to 155 residents at any one time. Looking ahead, we are beginning to look at how we can increase our move-on offer to residents In both our MpleX needs service and our core semce. and we are considering a number of potentsal options here. We continue to work with our partners to increase our impatt for our residents and to grow our offer to those experiencing homelessness and disadvantage in our communty. We embrace change and welcome others to join u5 in 501ving sorne of sociews most ¢hallen8ing soclal issues. We look forward to stren8thÈning existing partnerships and developing new collaborations to support our residents and the Community to achieve their potential. Chority ra9i4wad in Er4bnd ond Wol•> 1147794 Comp)ny by gwronkn 0807539
CARITAS ANCHOR HOUSE cARA5- ANCHOR HOUSE TRUSTEES, ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2021 Staternent of Trustees, Responslbllltles The Trustees Iwho are also dirertors of Caritas- Anchor House for the pur[se$ of company lawl are responslble for preparing the Trustees. Annual Report and the financial statements in accordance with applicable law and United KSngdom Accounting Stsndards Iunited Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial Statements for each financial year whi¢h 8ive a true and fair view of the state of affairs of the charitable company and of the incomin8 resources and application of resources, including the Income and expenditure, of the charitable company for that year. In preparing these financial statements, the Trustees are required to.. select suitable accounting policies and then apply them consistently.. observe the methods and principle5 in the Charities and Social Housing SORP- make judgments and accounting estimates that are reasonable and prudent,. state whether applicable UK Accounting Stsndards have been followed. subje¢t to any material departure5 dlsclosed and eyplained in the financial statements,. and prèpare the tinanaal statements on the 80in8 Concern basis unless it is inappropriate to presume that the charitable company will continue in business. The Trilstees are responsible for keeping proper accounting records that disclose with Tea50nable accuracy at any time the financial position of the charitable company and enablè thèm to ensure that the financial statements comply with the Companies Act 2(K)6. They are also responsible for safeguarding the assets of the charitable company and hen¢e for taking reasonable steps for the prevention and detertion of fraud and other irregulartties. So far as each of the Trustees is avrdre atthe time the rewt is apw(wed: the 15 no relevant audit information of whith the tharitable company's aLtditors are unaware.. and the Trustees have taken all steps that they ought to have taken to make themselvès aware of any relevant audit information and to establish that the auditors are aware of that infomiation. Statement of Board of Tte¢S ¢>n Ittternal finandal controls The Board of Trustees acknowledge its ovèrall rèsponsibiltyfor establishing and maintsiningthe wholè system of internal controls and reviewing its effectivene. The system of internal control is designed to manage. rather than eliminate, the risk of failure to achieve business objectbves. and to provide reasonable assurance against material misstatements or Ioss. The process for identi.n& evaluating and managing the significant risks by the Charity is on8oifvd and has been in place throughout the year up to the date of approval of the report and financial statements. The key elements of the control and sources of assurance include: Clearly defined management responsibilities and procedures for the identification, evaluation, and control of significant rlsks. Risk re815ter and risk management rep(Yts Performance reports External audit reports Detailed financial budgets, management accounts and forecasts Policie5 and procedures for all area5- Safeguardin& Heatth & Safety. Human Resource. Finance & IT. These police5 and procedure a reviewed bythe Sub-committees and the Board on a regular basis. Estsblished authorisation and appraisal prOdureS for nèw initiative5 and commitments Regular reporting to the appropriate Sulpcommittees and Board on key IsInesS objertives, targets and outcome5. There were no attempted or attual frauds during the year that requlred reporting to the Re8ulator of Social HoLtsin& the Charity Commission or other re8ulatory bodies. 12 CknTty En9hnd ond Wol8$ 1147794 limit by guaraTh*tr 0807539
CARITA5 ANCHOR HOUSE CARITAS- ANCHOR HOUSE TRU5TEES' ANNUAL REPORT (Continued) FOR THE YEAR ENDED 31 RCH 2021 The key areas ¢over control, infomiatSon Porting 5VStems, monitoring and risk mana8emenL Control The Board of Trustees retains pOnSIbIlity for defined range of areas ¢overin8 Strategio operatlonal, and financial elements. The Board of Trustees has put in place an organisational structure which clearly defines lines of wponsibility nd dele8ation of authority. Infomiatlon reportln8 Svstem Financial reporting systems indude regular rewev*S of overall fftnancial busine55 plans. preparation of detailed annul budgets and the production of detailed monthfy management accounts. These are prepared by thè Senior Management Team and are considered and approved by the Sub-committee and the Board. The Senior Management Team and the Board of Trustees also review performance re8ularty to assess progress towards the achievement of key business objettive, tsr8ets and outcomes. Monltorlng A process of regular management monitorin8 on control Issues provides assurance to Senior Mat)agement Team and Board of Trustees. This includes a rigorous process of ensuring that correttive artions are taken in relation to any significant control is5ue5. Risk Management The charlty has a comprehensive risk management Strategy which identifies risks faclnÉ the Charity. risk management responsibilities, and action reqUId to mitigate these risks. and monitorin8 arrangements. The Trustee5' Annual Report whith incorporates the strategic pOrt was approved and signed on behalf of the Board on 7 September 2021 Simon Hall- Chair & Trustee 13 CIKTrrity rryi¥or•4 in E10nd and Woh$ 1147794 C¢)mFX)ny limitd by 0807539
CARITA% ANCHOR HOUSE INDEPENDENf AUDifows REPORTTO THE MEMBERS OF CARITAS-ANCHOR HOUSE OplnSon We have audited the financial ststements of Caritas-Anchor House for the year ended 31 March 2021 which comprise Statement of Financial Actlvities. Balance sheet. Statement of Cash Flows and notes tothe financial 5tatement5. includin8 a 5ummaryof signfflcant attounting policies. Theffinancial reportin8 frameworkthat has been applied in their preparation is applicable law and United Kingdom Ac¢ountin8 Standards. including Financial Reporting Standard 102 The Financial Reporting Stondord opplicoble the UK ond Republic of irelond (United Kingdom Generally Accepted Accountin8 Practi1. In our oplnion, the financial stateme1-. give a true and fair view of thestate of the charitsble companrfs affairsas at 31 March 2021 and of the charitable company's net movement in funds, including the income and expenditure, for the yearthen ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepad in accordance with the requirements of the Companies Act 2C6, the Housing and Regeneration Act 2C(J8 and the kcounting Direction for Private Re8i5tered Providers of Social Hou51ng from January 2019. Basls for opSnlon We Conducted our audit in a¢cordance with Intemational Standards on Auditing IUKI IISA5 IUKII and applicable law. Our responsibilities under those standards are fvrther described in the Auditorfs responsibilities for the audit of the financial statements se¢tion of our report. We are independent of the Charity in accordance with the ethical requirements that are rèlevant to our audit of tF]e financial statements in the UK, including the FRCS Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit eviden we have obtained is sufficient and appropriate to provide a basis for our opsnion. ConclusSons relatlngto 8oln8 concern In auditing the finanaal statements. we have concluded that the trustees, use of the goin8 Concern basi5 of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfomed, we have not identified any material urKertainties relatin8 to events or conditions that, individually or collectively, may cast significant doubt on the charitable MPanY'S ability to continue as a goin8 concern for a period of at least twelve months from when the financial ststements are authoriseil for issue. Our responslbilities and the responsibilities of the trustees with respert to 80in8 concem are described in thè relevant sections of this report. Other Inforniatlon The Trustees are responsible for the other information. The other inform•tion Comprises the information included in the Trustees, Annual Report. Our opinson on the financial statements does not cover the other information and, except to the extent otherwise explicitty stated in our report, we do not express any forni of assuran¢e ¢on¢lusion thereon. In Connection with our audit of the financial statements. our responsibility is to read the other Infomiation and. In dolng so, consider whether the other information 15 materially inconsistent with the finanaal statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we Ident such material incortsistencies or apparent material misststements, we are required to detemiine whetherthere is a material misstatement in the financial statements or a material misstatement of the other information. If. based on the work we have performed, we conclude that there is a material misstatemerrt of this other information. we are required to report that fact. We have nothing to report in this regard. Oplnlons on other matters prexrlbed by the Compartles Art 2006 In our opinion. based on the work undertaken in the course of the audit: the information given in the Trustees. Annual Report Iwhich includes the strate8ic ret)ort and the dirertors, report prepared for the purposes of company lawl for the financial year for which the financial statements are prepared 15 consistent with the finanoal ststements: and 14 Chority register•J in Ev4bnd ond Wolès l 147794 Cornpjny limi by 9uaran*e 0807539
CARITAS ANCHOR HOUSE INDEPENOEKfAUDITOR'S REPORTTO THE MEMBERS OF CARifAS- ANCHOR HOUSE (continued) the strategic report and the directors. report included within the Trustees, Annual Report have been prepared in accordance wrth ap1£able legal requirements. Matters on whkh * are requlred to Yeport by eMcept•on In the light of the knowled8e and understanding of the tharitable company and its environment obtained in the course of the audit. we have not identified material misstatements in the Trustees. Annual Report Iwhlch incorporates the strategic report and the directors. reportl. We have nothing to report in respect of the following matters in relation to which the Companies Act 2C(J6 requlre5 US to report to you rf, in our opinion.. dequate accounting records have not been kept by the charitable company,. or the charitable company financial 5tstements a not in agreement wfch the accounting records and returns,. or certain disclosures of trustees. remuneration specified by law a not made,. or we have not received all the information and explanations we require for our audit. Responslbllltles of trustees forthe Ilnandal StateThTrts As explained more fijlly in thè tru5tees' responsibilities statement set out on page 11. the Trustees Iwho are also the directors of the charitable companyforthe purpose5 of company lawl are responsible forthe preparation of the financlal statemenis and for bein8 satisfied that they give a true and fair view. and for such internal control as the trustees determine is necessary to enable the pparati¢)n of financial Ststemel that are free from material misstatement, whether due to fraud or error. In preparing the financial statements. the Trustees are responsible for asse55in8 the charitable compan5 abllity to continue as a going concern, disclosin& as applicable. matters related togoing concem and u5ingthe going concern basis of accounting unless the Trustees etther intend to liquidate the charitable Company or to cease operations, or have no realistic alternative but to do $0. Auditoes responslblllt5es lorthe audlt of the ftnanclal ststemet Our oblettives are to obtain a$Onable assurance about whether the financial Statements as a whole are free from material misstatement. whether due to fraud or error. and to 155ue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guaranteethat an audit conducted in accordance with ISAS IUKI will always detett a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the ag8re8ate, they could reasonably be experted to influence the economic decislons of users taken on the basis of thesè financial Statements. Irregularities, including fraud. are iNstan¢es of non-compliance vrith law5 and reBulations. We design procedure5 in line with our responsibilities. outlined above. to detect material mt55tatements in respett of irregularities, including fraud. The extent to which our procedure5 are capable of dete¢tin8 irregularities. includlng fraud is detailed below: Based on our understanding of the charitable company and the environment in which it operates, we identrfied that the principal risks of non-compliance with laws and regulations related to social housing, safeguarding, fundrai5in& employment and health and safety regulations and charity law. and we considered the eytent to which non-compliance might have a material effect on the ffinancTral Statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial ststements suth as include the Statement of Recommended Practice for regtstered Social Housing Providers 2C8, Companies Act and the Charities Act 2011. and Considered other factors such a5 income tax. payroll ta¥ and sales tsx. We evaluated management's in¢entwe5 and opportL5nities for fraudulent manipulation of the financial statements (including the rssk of override of controls). Audit procedures performed by the engagement team included.. 15 Chority re9ithd in Erebnd gnd W¢l•> 1147794 Comwy 1imrf by gU¢Tonkne 0807539
CARITAS ANCHOR HOUSE INDEPENDENT AUDtroKs REPORT TO ThE MEMBERS OF CARtrAS-ANCHOR HOUSE Icontlnued) Insperting correspondence wlth regulators and tax authoriYes- Discussions with management including consi(Jeration of known or suspected instancès of non<ompliance with laws and regulation and fraud; - Evaluating managemenys controls designed to prevent and detect irregularities,. Identrfying and testingjoumals. in particular journal entrie5 Posted with unusual account combinations. posting5 by unusual users or with unusual descriptions,. and - Challenging assumptions and judgements made by management in their critical accounting estimates A further description of our responsibilities forthe audit of the financial Statements is located on the Flnancial Reporting Council's website at.. www.frc.of uditorsres onsibilitie& This description fomis part of our au(Jitorfs report. Use of our report This report is made solely to the charitable compan$ members. as a b. in accordance th Chapter 3 of Part 16 of the Companies Act 2C(16. Our audit work has been undertaken so that we might stste to the charitable company's members those matters we are required to statè to them in an Auditor'5 report and for no othef purpose. To the fullest Èxtent permitted by law. we do not a(pt or assume responsibility to anyone other than the charitsble company and the charitable company's members as a body. for our audit worl forthis report, or for the opinions we have formed. Lee Stokes Isenior StstutoryAuditorl For and on behalf of Hay5macintyre LLP, StatutLwy Auditors 10 Queen Street Place London EC4R IAG 16 Chorty r8gir•4 in Ergbnd ond Kblo$ 1147794 Compjny lirnid by gwTante OB07539
CARITAS ANCHOR HOUSE CARrrAS- ANCHOR HOUSE srATEMENT OF FINANCIALAcrivtnES IIP4CORPORATING THE INCOME AND EXPENDMJRE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021 Unrestrlrt funds Resirlrted funds Total Funds Z021 Total Funds 2020 2021 INCOME FROM Donations, grants and le8acie5 Charitable artivity= Anchor House 283.240 750.587 1.033.827 561,086 2b 3,381.382 3,381,382 2,958.241 Other trading activities: Rent receivable 21.406 21.406 21.358 TOTAL INCOME 3,686.028 750.587 4,436,615 3,540.685 EXPENDITURE ON Cost of raising funds Charitable artivtty- Anchor House 215.S24 215,524 161.994 2,721.156 722,033 3.443.189 3.214.826 TOTAL EXPENDITURE 2.936.680 722,033 3,658,713 3,376.820 Nèt Income 749,348 28,554 777,902 163,865 Transfers between funds 13,132 113,132 NET MOVEMENT IN FUNDS 762.480 15.422 777,902 163,865 TOTAL FUNDS BROUGHT FORWARD 9.701.358 26,409 9,727,767 9,563.902 TOTAL FUNDS CARRIEO FORWARD 10,463,838 41,831 10,505.669 9.727.767 The notes on pages 19 to 31 fomi part of these financial statements. I transactions are derived from continuing actiMties. All recognised gains and105se5 are included in the Statement of Financial Activities. Details of comparalive figures are given in note 21. 17 Ckrty r•9ithd in Ergbnd ond Wplw 1147794 Compjny lirnid by 08075JP
CARITAS ANCHOR HOUSE CARITAS- AIICHOR HOUSE LANCE SHEET AS AT 31 MARCH Z021 2021 2020 FIXED ASSETS Tan8ible fixed a55et5 10.525.340 10,757,020 10.525.340 10,757.020 CURRENT ASSETS Stocks li 6,149 242,244 2,364,381 2,612,774 Debtors Cash at bank and on deposit 12 304.493 I,IOS,369 1,415,668 CREDtroRS= amounts falling due within one year 13 1446.4641 1321.8571 NET CURRENT ASS5 2.166,310 1.093.811 CREDtroRS: amountsfalling due after one year NEf ASSErs 14 12,185.9811 10.505,669 12.123.C641 9,727,767 REPRESEf4TE0 8Y Unrestricted Funds General Designated Restricted Funds 16 832.575 9.631.263 41,831 10,505,669 244,415 9.456.943 26,409 9,727,767 16 17 The financial statements We approved and authorised for issue by the Boar(J of Trustees on 7 September 2021 and were signed on its behalf by.. Simon Hall- Trustee The notes on page$ 19 to 31 form part of these financial statements. Company regisiration number= 08075329 IEngland and Wales) 18 Cklrty rtyisl•r•d in EngkJThJ Woks 1147794 Compuny lsrnid by guoronteo 0807539
CARITAS ANCHOR HOUSE CARAS- ANCHOR HOUSE sTATEmETr OF CASH FLOWS AS AT 31 MARCH 2021 2021 2020 Cash flows from owatinl actmtles: Net cash providedby (used Inj operotlng ocuwltles 1.229.723 540,248 Cash flows from Invertlng aCtIles. DNidends, interest and rents from investments Purchase of property, plant and equlpment Net cash pmvldedby {usedJ In In¥stlnq o¢d¥ttles 21.406 161.9101 21,358 1210,8241 140,5041 1189,4661 Cash flow5 from flnandng acthrttles: Repayment of bank loans Cash flows from new borrowing Net¢oshpYovldedby (usedj InfvJoKtnq a(Uvltles 150.2071 120.C 167,3851 69,793 167,3851 Change in cash and cash equlvalents in the r¢portin8 year Cash and cash equlvalents at the btginnln8 of the reporting year Cash and osh equivalents at the end of the reportlng year 1,259.012 1,105.369 2.364,381 283,397 821,972 1,105,369 Reconclllatlon ol net In¢tynel(e¥pendlture) to net cash flow from operating art111¢$ 2021 2020 Net In¢omel{expenditurel for the reportlng year (0$ per the statement of financlal actS¥ltles) 777,902 163.865 Adjustments for: Depreciation charges Losses on Investments 293.590 284,972 24,0 121,3581 1391 79,187 9,621 540,248 Dlvidends, interest and rents from investments Increase in stocks 121,4C61 13431 62,249 117,731 1,229,723 Decrease in debtors Increaselldecreasel in creditors Net cash provlded byllus•dl In Investln8 activikn¢S Analysls of cash and cash equhmlents 2021 2020 Cash in hand 2,364,381 1,105,369 2,364,381 1,105,369 Totsl cash and ¢ash equlvalents 19 Chortyr•3islgred in Erybnd ond Wo105 1147794 npuny It¢d by 0807539
CARITA5 ANCHOR HOUSE CARITAS- ANCHOR HOUSE NOTES TO THE FINANCIAL sfATEMENTS FOR ThE YEAR ENDED 31 MARCH 2021 ACCOUNTING POLICIES la) Basls of Accoun% The financial 5tstements have been ppare<l in accordance with Accounting and Reporting by Charities: Statement of Re¢ommended Practice appllcable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFR51021 (Charities sorip IFRS1021. Statement of Recommended Practice tor registered Social Housing Providers 28, the Financial Rèporting Standard applicable in the UK and Republic of Ireland IFRS1021 and the Companies Act 2C(6. Caritas- Anchor House meets the definition of a public benefft entity under FRS 102. Assets and Liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the levant accounting policy notelsl. Ibl Goln8 Concern Having reviewed the funding facilities available to the Charrty tO8ether with future projected cash flows for the year 2021-22 in light of Covid-19. the trustee5 have an expectation that the Charity has adequate rèsources to continue its actItieS for the foreseeable future and conslder that there were no material un¢ertainties over the Charl5 financial viability. Accordin8ly, the financial statements have been preparèd on a 80ing concern basis. {c) Crftl¢al a¢countin8Jud8•ments and key sources of estlmatlon uncertalnty In the application of the accounting policies. tNstees are required to make judgement. estimates. and assumptions about the carrying value of assèts and liabilities that are not readily apparent from other urcès. The estimates and undèrlying assumptions are based on historical experience and other factors that re considered to be levant Actual results may dtffer from these estimate5. The estimates and underlwng a55umptions are reviewed on an ongoing basis. Revislons to accountin8 estimates a recognised in the period in which the estimate is revised if the revision afferts onlythat period, or In the period of the revision and future periods if the revision affected current and future period5. Judgements made by the trustees, in the application of these 3¢countin8 poI(cies that have significant effect on the financial statements and estimates with a significant Tisk of material adjustment in the next year are deemed to be in relation to the depreaation rates of tsngible fixed assets and are discussed below. In the view of the trustees. no assumptions ¢oNcerning the future or estimation of uncertainty affecting assets or liabilities at the balance sheet date are likety to result in a material adjustment to their carrying amounts in the next financial year. Idl nanual Instruments Basic financial instruments are Initial recognised at transaction value and Subsequently measured at amonlsed cost with the exception of investments which are held at fair value. Financial assets held at amortised cost comprise cash atbank and in hand, togetherwith trade and other debtors. A specific provi5i0n is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held In instant access bank accounts and used as working capital. Flnancial liabilities held at amortised costcomprise all creditors except Socbal security and other taxes and provision& le) Income Income from Anchor House represents receipts from residential accommodation, mea15 and shop sale5. Donations and legaues are accounted for when received by the Charity. Other income is accounted for on an accruals basis as far as it is prudent to do so. Revenue grants are tredrted to the statement of financial adivities as received. unless they are to be spent in a later year, when they are deferred. 20 Chyity in Englond ond Wcle$ 1147794 C¢mpory limibd 0807539
CARITAS ANCHOR HOUSE CARITAS- ANCHOR HOUSE NOTES TO ThE FINANCIAL STATEMENTS ASAT 31 MARCH 2021 ACCOUPMNG POLICIES {¢ortinuedl ifj Expendlturn Expenditure is reco8nise(J on an accruals basis. Grernan costs comprise the ¢05ts of running the Charity, Includi strategic planning for its firture developmenL intemal and external audit. legal and professional alce and all costs of complying with constitutional and statutory requirements, such as the C05ts of Trustèes. meeting5 and of preparingststutory fjnancial statements and satisfying public accountability. Tarwble ftxed asset5 The property is freehold. being situated at Anthor House. 81 Barking Road, London E16 4HB, and is included at cost. less depreciation. The land is included at cost and is not deprlate{l. Assets under the course of construcrion are not depredated until the work has been completed and the asset brought into use. Depreciation is Calculated to write down the cost less estimated residual value of all tangible fixed assets otherthan freehold land over their estimated economic live5. Using component c¢)srin8 principles freehdd property is divided into componènts which are depreciated over the followin8 years: Building structure Windows. bathrooms and floorin8 Heating and electricity Systems Kitchen 60 years 15 years 15 years to 30 years. as appropriate 20 years 30 year5 In the previous year the freehold property was depreciated at 2.LVA ¢)n a straight-line basis. Component accounting was introduced from 151 of April 2019. AII Pcs and laptops regardless of theirvalues and other tangible fixed assets ex¢eedin8 £I,c are Stated at cost net of depreciation. Depreciation is calculated at the following annual rate5= Fixtures, fittsngs and equipment Motorvehicles I33% straight line. as appropriate 25% straight line Inve5tm•nts Investments are stated at their middle market values rulin8 at the balance sheet date. The alised and unrèalised gains and losse5 on investments are calculated based on the opening market values and are accounted for within the Statement of Financial Activities. Income arising from these investments is accounted forwhen it Is ce[Vable. Sto¢ks Stocks are shown at lower of cost and rtet realisable value after making due allowano for obsolete and slow moving items. u) Debto Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are vglued at the amount prepaid net of any trade discounts due. Ikl Cash at bank and In hand Cash at bank and cash in hand includes cash and short term h[gh liouid investments. Credlttys and provisions Creditor5 and provisions are reco8ni5ed where the Charity has a present obli8ation resulting from a past event that will probably resuft in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provishons are normally COgnised at their settlement amount after allowing for any trade discounts duè. 21 Cknty rtyi5knd in Engkjrd and Wa1•5 1147794 Cornpjny limifed by gUor*• 0807539
CARITAS ANCHOR HOUSE CARITAS- ANCHOR HOUSE NOTES TO THE FINANCIAL STAIEME14TS AS AT 31 MARCH 2021 Im) Desllnated funds The Trustees may set aside amounts of unrestricted funds. at their discretion, for specific future purptsses. Such fund5 are shown thIn ynrestrirted funds as designated funds. Where the trustees decide that designated funds are no longer required for the purpose5 specrfied. are released from designated funds. Restrirted funds The restricted funds are monies raised for. and their use restricted to. a specific purpose or donation$ 5ubjett to other donor-imposed conditions. Transfers are made to unrestricted funds where amounts raised for specific capital projects are spent. lol Taxatlon As a registered Charity. Caritas Anchor House benefits from rates relief and is generally exempt from taxation on its income applied for tharltable purpose5, but not from Value Added Tax. Irrecoverable Value Added Tax is included in the cost of those items to which r( relate 22 Cknrity r•91S9 in EngkJnd and Woles 1147794 Company 11rnit ty gwronte? 0807539
CARITAS ANCHOR HOUSE CARITAS- ANCHOR HOUSE NOTES TO THE FINANaAL STATEMENTS FOR THE YEAR Ef4DED 31 MARCH 2021 2a Income from donatlons and 8rants: Income from donation5: Totsl 2021 Total 2020 Z021 2021 Donations Le8aCy Donation in klnd 178.605 47.940 226.545 147,191 5,OOD 142,478 294.669 69,490 117.430 69,490 296,035 178.605 Inme from 8rnnts: Unrestrfcted Restri¢ted 2021 2021 Total 2021 Total 2020 The Monday Charhable Trust Merchant Taylorfs Charity The Leathersellers, Company Charitable Fund The Borrows Charitable Trust The Cuckoo Hill Trust The Charitable Committee of The Worshipfvl Company of Vintners PF Charitable Trnst Forte Charitable Trust The Mercer5' Company-The Charity of Sir Richard Whittington The Foundation of Saint Francois The London Community Foundatron-SEGRO Building Societies Trust MIted The Albert Hunt Trust Nationwide Building Society CommunityGrant Swire Charitable Trust CRASH 7,668 8,CQO 10.000 6,000 2,000 io.c(o 10.0 i.oc() 12,5( 10,000 2.0 2,51)) 25,CKQ 25,000 6,000 5.000 22,000 3,000 49.461 i0,c0 20,C 25,000 6,000 10,000 5,000 4,OC(J 18,0 3,0 16.C63 16,C63 The Bernard Sunley Charitable Foundation The Worshipful Company of Fan Makers Royal Docks Trust JA Rose Trust Lon(Jon Catalyst Homeless Link Fine and Country Foundation National Lottery Community Fund Crisis 74,278 74,278 93.781 93,781 East End Community Foundation East End Emergency Fund CAF The Draper5' Charitable Fund john Armitage Charitable Trust The Rank Foundation 15.(YJO 7,500 15,C4)) 25.LKQ 20.COJ 23.860 23.860 Chorty ryi5bred in Ervak)nd ond Wole5 1147794 Cryny limtsd by gthwon*8 0807539
CARIIAS ANCHOR HOUSE CARITAS- ANCHOR HOUSE NOTES TO THE FINANCIAL STATEMÉNTS {conllnu•d) FOR THE YEAR ENDED YI RCH 2021 r Harold Hood's Charitable Trust French Huguenot Church of Lon(Jon Charitsble Trust Trust fof London City Bridge Trust Co-op Grocers. Charity The Edward Gostllng Foundation The Haramead Trust LBN 6,250 24.674 6,250 24.674 iO,¢)JO 44,501 5,C(JO 4,C(JO 200,C(JO io.ojo 44,501 The Ma*Jrice & Hilda Lalng Charitsble Trust FO¥er Smith & Jone5 Trust The Julia and Hans Rausing Trust Screwfix The Fishmongers. Companvs Charitable Trust JI Churches London City Airport Morrison Taylor Wimpev White Oak Charitable Trust Worshipfvl Comparry of Fan Makers Other 4.000 200.000 5.000 15,000 19.8CKJ 15,C(Q 19,8C 3.0 io.(uJ io.oc(J 5.OC¥) 3.6XI 4,499 104,635 3,650 5,449 737,792 950 6,788 266,417 633.157 Total donatlons. grants and legades 283,240 750,587 1,033,827 561,086 24 Chorty rry1sr1 in Erglond and Woles 1147794 CL¥npry liffld gucyothe 0807539
CARITA5 ANCHOR HOUSE CARITAS- ANCHOR HOUSE NOTESTO THE NNANCIAL sfATEMErirs l<ontinued FOR THE YEAR ENDED31 MARCH 2021 2b Income from charftable acthiftSes Anchor House: unre5Cted Restrlcted 2021 2021 Total Total 2020 2021 Attommodation Catering Hovsing Related Support Rough Sleepers Initiative Sundry income laundry income Contracts revenue Room hlre 2,440.406 2.440.406 2,259,775 52 613,848 311.(MXJ 6,154 3,889 613.848 311.CQO 6.154 3.889 352.514 321,701 15,079 824 3,116 5,180 2,958,241 6.c5 3.381.382 6,085 3,381,382 All income in 2020 was Unstrirted. 3 Social housing lettSngs 2021 2020 Aent recelvable excludin8 ser¥ice charges Service charge receivable Grants and other income TUm0r fr social hou51ng lettlngs 1.080,124 1,142.1]90 1,360,282 1,117,685 1.926.254 1267 694 3 527 469 Op•ratln8 expendlture on Soual hou55ng lettx 3.556.122 3.304.894 Operallng surplus on sla1 hOUn$ lettln8S Flnancing costs 222,575 71.926 61.191 Surplus on sodal housfn8 lettin8S Void losses 150,649 158.894 4 Cost of ralsSng fvr 2021 Staff costs Other direct costs pport costs 126.113 30,159 59.252 215 524 87,336 35.716 38,942 5 Charftable actlvltles Totsl 2021 Cost5 Total 2020 Costs stsff Dire¢t Costs Support Costs An¢hor House 1,632,620 1,632.620 1,191,116 1.191.116 619,453 619.453 3.443.189 3.443.189 3.214.826 3.214,826 Chority regis*red in Engkjrd ond Woles 1147794 Compony limited by guorone 0807539
CARITAS ANCHOR HOUSE CARITAS- ANCHOR HOUSE NOTESTO THE FINANaAL sfATEMENfs Icortinued FOR THEYEAR ENDED31 MARCH 2021 6 Support costs allocatlon to a¢tl¥ltles Total 2021 Total FundraInI Anthor House 2020 Staff costs Staff trainlng and CrUItMent OfFice expenses Legal and professional fees Other costs 40.863 2.524 12,926 2.469 470 59,252 427,204 26,388 135.133 25,812 4.916 619.453 468,067 28,912 148.059 28,281 5.386 678,705 429.798 16.592 128,800 23,727 45,880 644,797 pport costs have been allocated to acti¥e5 based on number of peoplè employed within each artivity. 7 Governance Costs X121 2020 Staff costs Auditors remuneration- Audit fee Legal and profèsslonal fee5 Trustee expenses 50,873 17.883 28,252 16,077 3,456 1.652 49.437 142 68,898 The Trustèes received no remuneration12020.. nill. Expenses relating to travel and trainin8 were reimbursed or paid to third parties on behalf of Trustees. These amounted to £14212020.. £1.6521. 8 Staff costs 2021 2020 Salarles Social securty costs Pension 1,973,452 157,no 95.627 2.226.799 1.691,860 137,573 86.792 1,916,225 The average number of staff in the year was 6212020..541'. calculated on a full-time equtvalent basis, the fjgure was 60 12020.. 521. The number of employees with annual taxable emoluments paid more than £60,000 per annum was.. 2021 2020 £60,OW- £69,999 £70.OC(1- £79.999 £80.OCMM89.999 The total remuneration of key management personnel for the year wa5 £284,11112020- £218.6701. Included in the above were payments to the Chief Executive, being the highest paid employee. amounting to £86,525 for the year excluding pension contrlbution12020.. £81,FLl. The Chief Executive is a member of the Charl$ defined contribution pension Kheme. The charity Contribute5 7.5% of the salary to the Chièf Executive's pension, and the Chièf Executive contributes the same percentage of her salary. 26 CTrThity r•gi5hr•d in Er1 aTr4 Wah5 1147794 COrnrxY 11rni by 0807539
CARITAS ANCHOR HOUSE CARITAS- ANCHOR HIXISE NOTES TO THE FINANCIAL SfATEMENTS {contSnued) FOR THE YEAR ENDED 31 MARCH Z021 9 TanÉlble ftxed assets Freehold Land and Bulldln8S Furnltyre & Equlpment Asset Under Construrtlon Vehl¢les Total Cost As at l April 2020 Additions Disposals As at 31 March 2021 11.766.154 18,L%l 225.935 31.323 57.763 199.495 536,105 30,587 12,546,255 61,910 157,7631 12,550,402 11,766,154 I8.(1 566,692 Depreuation As at l April 2020 Charge for the year Ellminated on disposal As at 31 March 2021 1.670.035 241.ILKJ I8.(1 101.139 52,490 57,7631 95,866 1,789,235 293.590 157,7631 2,025,062 1.911.135 18.C61 Net book value As at 31 March 2021 9.855.019 103,629 566,692 10,525,340 As at 31 March 2020 10,096.119 124,796 536,105 10,757,020 10 Investments The Charity own5 ICQ% share capital of the subsidiary company. Caritas Anchor House. Learnin8 & Development Academy Ltd. whlch remained dorrnant in the year. li Sto¢ks Consumables 6.149 6,149 12 Debtors 2021 Trade debtors Prepayments VAT due Other debtors 137.695 44,3 2.5 58.046 242,244 161,684 38,902 103,907 304,493 27 Chtsrty rè9i4w¢d in Erybnd ond Wub$ 1147794 Ctynpany lirnibd by guoronkn 0607539
CARITAS ANCHOR HOUSE CARITAS- ANCHOR HOUSE NOTES TO THE FINANCIAL STATEMENT51c(wrtlnuedl FOR THE YEAR ENDED 31 MARCH 2021 13 Credltors- Amounts f•lliri8 due wjthln one year 2021 2020 Bank loans lrtote 151 Trade creditors Accruals Soaal security and other tsxes Pension fund Other creditors 75,903 98,036 95,254 41,673 14.495 121.103 446,464 69,027 49,8C 93,763 35,003 13,032 61,232 321.857 14 Credltors- Amt)unts fallln8 due outs5de one year 2021 2020 Bank loans Inote 151 2.185.981 2.123,064 IS BANK LOANS The prevlous long temi property loan and business development loan were repla¢ed by a new lonB term loan in february 2021. The new loan is secured on the property at 81 Barking Road, London E16 4HB and associated assets. The paYment sthedule for the new loan is a period of 25 years. ending on 17 February 2046. The applicable rate of interest is 2.73% fixed rate for 15 years from February 2021, and then a variable rate of 1.75% over base rate for the remaining tèmi of the loan. During the year the Charity also obtained a social investment loan of £120.c¢xI from Homeless Link for the Barn project. This is an unsecured loan and 15 repayable over 42 months. ending on l October 2024. The applicable rate of interest is 8% fixed rate. This interest cost has been grant fvnded by Homeless Link. 2021 2020 Repayments are due as follows Wrthin l year Between 2-5 years Over 5 years 75,903 365,622 1.820.359 2 261884 69,027 299.643 1.823.421 2 192 091 28 Chorty r¢9i#èr•4 in Ermabnd Wo1•5 1147794 CL*npony limit ty bWor0ntr 0807539
CARITA5 ANCHOR HOUSE CARITAS- ANCHOR HOUSE NOTES TO THE FINANCIAL STATEMEprrs Icontlnued) FOR THE YEAR ENDED 31 MARCH 2021 16 Unr•strSrted Funds At31 March 2021 At l Aprll 2020 Income and Galns Redurtlon Sn lon8 tem) loan Expenditure Trnnsfers General 244,415 3,686,028 12,936,680) 1432,4091 271.221 832,575 Desl8nated fvnds:_ Fixed Assets Post Grant Contlnuity Major Repairs Fund Residents Furniture & Equipment IRenewals & replacements) Access control 8.886,357 1231,6801 1271.2211 8,383,456 so,000 701,662 453.841 247.821 66.745 146,145 350,C(KI 13.132 350,000 10,463,838 9.701.358 3,686,028 12,936,680) Reductlon In long term loan At31 March 2021 Prlor year At l Aprll In¢om 2020 and Gains Expend5twe Trnnsfer% General 74.416 3,170,963 13,020,314) 76,545 157.1951 244.415 Deslgnated fvnds:. Fixed Assets Post Grant Continuity Major Repairs Fund Residents Furniture & Equipment (Renewals & replacementsl 8.927.310 198,1481 57,195 8,886.357 50,000 453,841 361,693 92.148 66.745 66.745 9.413.419 3.170.963 13,020,314) 137,290 9,701,358 The Fixed Assets DesSgnated Fund represents the net book value of unrestricted tangible fixed assets less the outstanding balance of the long term Property Loan. Each year amounts are transferred to or from the Fixed Asset Fund, representing the movernent in the net book value of the unrestricted tsngible fixed assets in the year and the reduction in the long term loan. as catal is repaid. The Post Grant Continuity Fund represents money set aside to cover costs incurred where funding has ceased. The Major Repairs Fund represents money set aside to cover major repairs on CAH bulldlng. Every year an amount is allocated to ead) Component (windows. bathrooms. floori he3tin8 and elettricity Svstems, lift, and kitchen) based on their useful economic lrfe and estimated replacèment costs. The Residents Fumiture & Equipment Fund represents money set aside to replace residents, fvrniture and equipment both in their rooms and in the communal area. The Access control fvnd represents money Set aside to replace the old attess control system. 29 Chorty rogi¥¢red in ErFbnd ond Wol85 1147794 Ccnpony lim& by yyantee 0807539
LARI IAS
ANCHOR
HOUSE
CARITAS- ANCHOR HOUSE
NOTES TO THE FINANCIAL sfATEMENT5 (¢ontMiued)
FOR THE YEAR ENDED 31 MARCH Z021
17 Restrlrted Funds
At31
March
At31
Mar¢h
2021
Income Expendlture Transfers
Personal Development
Education, Training and employment
Food Coordination
Oonation in kind
Home and hope appeal
Assessment Hub
Covid-19 grants
21.850
91,028
122.6291
191,0281
ii.&xJi
156.3581 113.1321
141.4CQI
121,102
1488.5161
722.0331 113,1321
69.490
73.703
9,528
16.102
41.831
488.516
750.587
26.4C8
41,831
At31
March
2020
At l Aprll
2019
I)Me Expend5ture Transfers
Personal Development
Education, Training and employment
Move-on
Your Space
Donation in kind
Home and hope appeal
Assessment Hub
779
779
41,687
71.711
15.538
142.478
75,108
23.2C(I
369.722
41.687
114.418
20.125
142.478
30,7(KI 1137,2901
42,707
4,587
102.410
9,528
16.102
26,409
150,483
356.SC6 1137.2901
The transfers represent the capital expenditu in the year.
Personal developmerrt
This fund supports our vulnerable residents wtth high leve15 of isolation, low self esteem and complex thallenges on their
Journey back to indepèndent livin8through structured personal development and social activities.
Edu¢atlon tralnln8 and employment
This fund supports our residents with education. training and employment opportunityes. Learning new skills helps our
residents to improve theirself-esteem and 83in experience so that they can re-enter the workforce.
Donatlon In Klnd
This fund presents the value of fumiture and other items donated by various organisations durlng the year.
Food
LARIIAS ANCHOR HOUSE CARITAS- ANCHOR HOUSE NOTES TO ThE FINANCIAL STATEMENTS Icontinu•d) FOR THE YEAA ENDED 31 MARCM 2021 18 Analysls of net assets befvRen fulld5 Unreslrlrted Deslgn*ed Restrfrted Fund5 Funds Funds Total 2021 31 Ma¢<h 2021 Fixed assets Current a55ets 10,525.340 1,323,136 1,247.807 1385.5851 160,8791 1104.9761 12,081,C($51 832,575 9,631,263 10,525,340 2,612,774 1446.4641 12.185.981) IQ,505,669 41.831 Current liabilities Lon8 temi liabilities Total net assets 41,831 Unrestrfcted Deslgnated Restrlrted Funds Fur Funds T¢)tsl 2020 31 March 2020 Fixed assets Current assets 10,757.020 818.673 570.586 1263.2661 158.5911 1310,9921 11.812,0721 244,415 9,456,943 10,757.020 1,415.668 1321,8571 12.123.C641 9,727,767 26,4C6 Current liabilities Long term liabilities Total net assets 26,403 19 Capltal ¢ommrtment 2021 2020 Building works (the Barn project} 629,523 31 Cknrty re9 in En9lond ond Woles l )47794 C¢ynFxJny kn.rn1 by gJEYanko 0807539
LARI IAS ANCHOK HOUSE CARITA5- ANCHOR HOUSE NOTES TO THE FINANCIAL sfATEMENTS (continued) FOR THE YEAR ENOED 31 MARCH 2021 20 Leasln8 commltments 2021 2020 Withln one year Between one and five years 12.022 31,712 43,734 12.022 43.733 55,755 The telephone system and photo copier are held under operating lease arrangements. 21. DETAILED STATEMENT OF FINANCIALACTIVITIES FOR THE YEAR ENDED 31 MARCH 2020 Unrestrlcted Restrlrted funds fund5 2020 Totsl funds 31 March 2020 INCOME FROM Donations, grants ind legacies Charitable activity.. Anthor House 191,364 369,722 561.086 2.958,241 2,958,241 Other tradin8 activities- Rent re•vable 21.358 21,358 TOTAL INCOME 3.170.963 369,722 3,540,685 EXPENDITURE ON Cost of raising funds 161,994 161,994 Charitable activity= And)or House 2.858.320 356,506 3,214.826 TOTAL EXPENDITURE 3,020,314 356,506 3,376,820 Net Income 150.649 13,216 163,865 Transfers between funds 137.2 1137.2901 NEY MOVEMENT IN FUNDS 287.939 1124,0741 163,865 TOTAL FUNDS BROUGHT FORWARD 9,413.419 150,483 9.563,902 TOTAL FUNDSCARRIED FORWARD 9.701.358 26.409 9.727.767 32 Chority regi*erod in Engbnd ond wo$ 1147794 C(xnpiny lirni by sunranlEe 0807539
Caritas - Anchor House Audit findings report Year Ended 31 March 2021 Partner: Lee Stokes; lstokes@haysmacintyre.com Manager: Stephen Fisher; sfisher@haysmacintyre.com
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Manager: Stephen Fisher; sfisher@haysmacintyre.com
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Caritas -Anchor House – Audit Findings Report | YEAR ENDED 31 MARCH 2021
Table of Contents
| 1. | Introduction and Executive Summary ............................................................................................................. 1 |
|---|---|
| 2. | Audit risks and key judgement areas identified during planning ....................................................................... 2 |
| 3. | Accounting and Audit Matters ........................................................................................................................ 3 |
| 4. | Detailed control points .................................................................................................................................. 5 |
| 5. | Emerging issues ........................................................................................................................................... 7 |
Caritas -Anchor House – Audit Findings Report | YEAR ENDED 31 MARCH 2021
1. Introduction and Executive Summary
This report summarises our key findings in connection with the audit of the financial statements of Caritas – Anchor House (the Charity) for the year ended 31 March 2021.
Our audit approach
Our work was planned and performed in order to issue an audit opinion on the financial statements in accordance with International Standards on Auditing (UK) (“ISAs”) and the terms of our letter of engagement.
Limitations
Our audit procedures, which have been designed to enable us to express an opinion on the financial statements, have included an examination of the transactions and the controls thereon.
Our audit included consideration of internal controls relevant to the preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for expressing an opinion on the effectiveness of internal control or to identify any significant deficiencies in their design or operation.
We have included in this report only those matters that have come to our attention as a result of our normal audit procedures and, consequently, our comments should not be regarded as a comprehensive record of all deficiencies that may exist or improvements that could be made.
Overall conclusion and opinion
At the time of issuing this report we anticipate issuing an unqualified opinion, without modification on the financial statements.
Haysmacintyre LLP September 2021
Caritas -Anchor House – Audit Findings Report | YEAR ENDED 31 MARCH 2021
2. Audit risks and key judgement areas identified during planning
We set out below the key areas of focus for our audit identified at the planning stage and the conclusions of our audit work:
| Audit risk/key judgement area | How we addressed this | Commentary |
| Presumed risk in revenue recognition We are required to consider and respond to the risks of improper revenue recognition. |
We have undertaken the following procedures to verify the appropriateness of revenue recognition: • Detailed substantive testing of revenue including cut-off testing. • Analytical testing of accommodation income with reference to occupancy levels and charging rates. |
Our audit work on revenue did not identify any material issues. |
| Presumed risk of management override We are required to consider and respond to the risks arising from management override of controls. |
Accounting estimates were reviewed for potential bias. The business rationale for unusual or significant transactions outside the normal course of business for the company were evaluated. We reviewed the appropriateness of general journal entries posted throughout the year and at the year-end for the preparation of the financial statements. |
Planned audit work considered to be satisfactory in this area. |
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Caritas -Anchor House – Audit Findings Report | YEAR ENDED 31 MARCH 2021
3. Accounting and Audit Matters
3.1 Qualitative aspects of accounting practices and financial reporting
i. Gas accrual
The liabilities include £45,678 in respect of unbilled gas charges for July 2017 to March 2020. Our understanding is that the gas has been consumed and metered hence it was possible to quantify the creditor but that the amount has not been registered onto the supplier’s system or billed.
The accrual has not been added to as the gas supplier was changed in 2020-21 and the new supplier has been duly paid. The brought forward accrual has been retained as there remains an actual liability and we understand from management that it is still considered probable that this amount will be demanded.
ii. Recoverability of St Mark’s Community Centre debtor
At 31 March 2020 there was a historic debtor balance of £54,048 due from St Mark’s for historic management fees and reimbursement of expenses paid by Caritas. We note that a credit note was raised in 2020-21 reducing the balance at 31 March 2021 to £34,048. A full provision has been retained against the remaining balance.
iii. Audit fieldwork
The audit fieldwork was performed remotely and this progressed relatively smoothly as the relevant primary documents were available in electronic form.
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Caritas -Anchor House – Audit Findings Report | YEAR ENDED 31 MARCH 2021
3.2 Accounting and audit matters
i. Potential impact of the Covid-19 coronavirus pandemic
The ongoing situation in respect of the Covid-19 pandemic is likely to continue to have a significant impact across most sectors in the coming months and consideration will need to be given to the specific impact on the charity’s financial position, financial resilience and subsequent events disclosures.
On the basis of our discussions with management and other audit procedures carried out to date, we do not expect that there will need to be a modification to the going concern statement in the accounting policies note or to the audit report. However, as this is an ever-changing situation so we will need to discuss these matters with management and update our audit evidence closer to the date of approval of the financial statements.
ii. Changes to auditing standards
Two new auditing standards have been issued by the Financial Reporting Council and haven taken effect for the audit of the financial statements for the year ending 31 March 2021: ISA540 Auditing Accounting Estimates and ISA570 Going Concern.
Both standards include increased requirements, compared with the existing standards, for auditors to challenge the assessments and judgments made by management and Trustees in relation to the charity’s ability to continue as a going concern and in making accounting estimates. This in turn means that we will require additional documentation from management to demonstrate that a formal going concern assessment has been made and explaining the basis on which the Trustees have determined that the charity is able to continue as a going concern, as well as setting out the rationale for material accounting estimates.
iii. Materiality
The audit materiality used was £84,000 based on 2% of estimated income. This amount is as set out in our Audit Planning Letter and we did not elect to revise the figure during the audit as 2% of actual income is only a marginally greater figure.
iv. Misstatements
During our audit, we did not identify any unadjusted material misstatements other than clearly trivial items.
v. Letter of representation
International Standards on Auditing require us to obtain written representations from the trustees when you approve the financial statements. The letter contains only standard matters with no additional items specific to Caritas - Anchor House.
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Caritas -Anchor House – Audit Findings Report | YEAR ENDED 31 MARCH 2021
4. Detailed control points
During the course of our audit we identify detailed control points that we feel need to be brought to the attention of the Trustees and certain recommendations for improvements and/or corrective action. Our audit included consideration of internal controls relevant to the preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for expressing an opinion on the effectiveness of internal control or to identify any significant deficiencies in their design or operation. The matters and detailed control points that we have identified are graded within the follow framework to assist the Trustees in assessing their impact.
| Grade | Grade type | Grade characteristics |
|---|---|---|
| Significant | These findings are considered to be significant to the management of risk in the business, representing a serious weakness in systems and controls currently in place or a potentially fundamental control that has been omitted from the risk management systems as currently in operation. |
• Key control omitted • Key control not designed or operating effectively, for example as indicated by numerous exceptions found during our review work • Evidence of override of controls in place with significant or potentially fraudulent outcomes • Non-compliance with laws and regulations |
| Important | Important findings that should be reviewed by management, pending corrective action and or updates to systems and controls. |
• Errors and exceptions noted during our testing that had corrected retrospectively during the year by management. • Potential improvement to existing control noted • Possibility for override of controls exists • Our review noted numerous exceptions but not in key controls |
| Limited | Findings that identify non-compliance with established systems and controls. |
• Minor control weakness, for example limited exceptions noted during our review work |
| Advisory | Items requiring no immediate action but which may be of interest to management or best practice advice |
• Information for department management • Control operating but scope for efficiency and/or effectiveness improvements exist • Control operating but not necessarily in accordance with best practice • Recent or anticipated developments may necessitate new controls. |
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Caritas -Anchor House – Audit Findings Report | YEAR ENDED 31 MARCH 2021
We wish to bring the following matters to your attention which arise from the current year audit as well as the latest status of outstanding issues arising from previous year audits. If we consider that the trustees’ proposed response to a point that we have graded “Significant” is not adequate and/or a “Significant” point has not been resolved during the subsequent financial year, we may have a duty to report this to the Charity Commission:
Current year
There are no points raised for the current year.
Prior years
There are no unresolved points brought forward from earlier years.
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Caritas -Anchor House – Audit Findings Report | YEAR ENDED 31 MARCH 2021
5. Emerging issues
The following are certain key issues which affect charities and which have recently come into effect or are currently being debated and are likely to impact the sector within the next year. During the current pandemic, we have set up a dedicated COVID 19 webpage for charities. This can be found at https://www.haysmacintyre.com/covid-19-not-for-profit. This web page is updated daily to ensure that you are up to date with the most relevant information.
A. Legal and governance matters
Law Commission
The Law Commission published a review of technical issues relevant to Charity Law back in 2017. It has been a long time coming, but on 22 March 2021 the Government published its responses to the Law Commission’s report and has accepted the majority of the recommendations. A summary of the key changes are:
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1) Charity registration thresholds – The Government has accepted, but not yet agreed on changes to the current registration threshold for charities to register with the Charity Commission, acknowledging the administrative and financial burden of regulation for such small charities. This is currently £5,000 of income.
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2) Permanent Endowment – The definition of permanent endowment is to be reformulated with the aim of capturing any fund held subject to a restriction that the capital cannot be spent. This refined definition is to make clear that the definition of endowment funds will not apply to special trusts where a fund is held subject to a restriction that it can only be expended on a specific purpose, or a fund subject to a general restriction that only a certain percentage of it can be spent each year. There will also be an extension to the power currently conferred in the Charities Act sections 281 and 282 allowing unincorporated charities to release permanent endowment and spend the capital (particularly where the fund is so small that the costs of administering the fund is disproportionate to the fund value) and extending this power to corporate charities and CIO’s.
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3) Borrowing from permanent endowment. The Government has accepted that charities should have a power to borrow from the charity’s permanent endowment. The power would allow the charity to borrow up to 25% of the permanent endowment subject to a requirement that they recoup the expenditure within 20 years. This power is intended for ‘investment’ permanent endowment and it is not intended for functional permanent endowment.
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4) Changing charitable purposes and governing documents – The government acknowledged that the current process for changing or amending a governing document is complex, and there are various different ways in which it had to be carried out depending on the legal structure of the charity. Unincorporated charities are to be given a new power to amend any provision in their governing documents, subject to a limited number of changes which would still require the permission of the Charity Commission such as ‘regulated’ alterations (Charitable objects, dissolution provision and trustee benefit provision for example), provisions that would alter permanent endowment and provisions that would have required the agreement/consent of others.
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5) Cy-Pres schemes and fundraising appeals – In relation to fundraising in particular, the need to obtain a cy-pres scheme or to approach every single donor where, perhaps, an appeal raised more than was needed, or the appeal failed to raise adequate funds, was time consuming and often costly. The Law Commission recommended thresholds below which charities would not have to contact donors and a simplification of the process. The recommendation, which has been accepted, is that there will no longer be a need to contact a donor to offer to return the donation provided that the donation was less than £120 in total in a financial year, and the donor has not stated that the donation should be returned if the appeal fails.
Good Governance
The Charity Governance Code has long been seen as a best practice guidance for charities and this guidance was updated and a refreshed code published in December 2020. The updated code followed consultations during 2020 that received over 800 responses
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Caritas -Anchor House – Audit Findings Report | YEAR ENDED 31 MARCH 2021
The enhancements to the code focus on two of the key principles, Principle 3: Integrity, and Principle 6: Diversity, which they have retitled Equality, Diversity and Inclusion. For Integrity the code emphasizes ethics and the right of everyone who has contact with the charity to be safe, and for EDI the Code recommends four stages of practice for charities in their EDI journey. Boards should:
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Think about why equality, diversity and inclusion is important for the charity and assess the current level of understanding.
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Set out plans and targets tailored to the charity and its starting point.
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Monitor and measure how well the charity is doing.
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Be transparent and publish the charity’s progress.
The revised code can be found at: www.charitygovernancecode.org
Fraud
Whilst the world battles with the current pandemic, it has sadly given rise to an increase in attempted fraudulent behavior. Much has been written about the most common frauds and being vigilant, particularly with unusual requests for making payments, or changes to bank account details for suppliers. Fraudsters are quick to adapt, and the most recent attempts have extended to mimicking an employee and requesting the bank account details to be change for the payment of salary. The same level of due diligence and checks should also be put in place for changes to salary information as you should for making changes to suppliers.
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