CARITAS ANCHOR HOUSE bomelessness TRUSTEES ANNUAL REPORT AND FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Company Reglstratlon Number: 08075329 (England and Walès) Ae8lstered Charlty Number: 1147794 RSH Reglstratlon 4841 CARITAS ANCHOR HOUSE CONTENTS Pale Trustees. Annual Report 1-13 Independent Audltorfs Report 14-16 statement of Flnandal Artlvltles 17 Balance Sheet Statement ofcash Aows 19-20 Notes to the Flnanclal Statements 21-33 CARITAS ANCHOR HOUSE CARITAS- ANCHOR HOUSE TRUSTEES. ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2022 The Trustees present their report and financial statements for the year endÈd 31 March 2022. The report, which constitutes a trustees, ￿port for the purposes of ¢harity le8islation and a directors, report for the purposes of company legislation, has been prepared in accordance wrth Part Vlll of the Charities Act 2011. The financlal statements have been prepared in accordance the accounting policies set out In note l and comply wlth the ¢haritsble Company's Memorandum and Artides of Association, applicable laws, the Companies Act 2006 and the requirements of the Statement of Recommended Pra¢bce"AccountinB and Reportin8 by Charities" SORP 2015 IFRS 1021 (Second bulletin effectivejanuary 20191 and the requirements of the Statement of Recommended Practice ISORPI Accounting by Registered Social Housin8 Providers. RefererKe and AAlmlnbtratfve inf¢)miatlon Constltutlon The charitable company 15 governed by its Memorandum and Articles of Association. The members of the Board of Trustees are the companws director$ and trustees of the Charity. The Trustees who held Offi￿ durin8 the year under review and up to the date of this report are as follows Trustees Mr Simon Hall Ms Emma Buttefworth Rev Desmond Patrick Connors Ms Laura Curtls Mr Patrick Davis Mrs Erner Delaney Mrs Caesar Gordon Mr Andrew Haines Mrs Cate Kirkbride Mr Graeme McLean Mr Joseph Ogundermuren Mr Anil Sharma Mr Charles Abel Smith Mr Matthew Williams Chalr Apptynted 16July 2021 App(xnted 11 November 2021 Rttigned 311)ecember 2021 Rèsigned 30 May 2021 Resigned 31 December 2021 Appointed 8 May 2022 Appointed 30 September 2021 Resi8ned 22 April 2022 We have supported the operation of the following Sublommittees: l. Finance, Audit. Governance. and Risk Sub(ommlttee 3. Executive Sub-committee 5. Frontline servI￿s Quality Assurance and Impact Su Committee 2. People & Culture Sub-committee 4. Premises Management Sub-committee 6. Values SuKommittee Prlntlpal Address Carits5 Anchor House 81 Barking Road Canning Town London E16 4HB Auditor: Haysmacintyre LLP. 10 Queen Street Place, London, EC4R IAG Sollcitors: Bates Wells, 10 Queen Street Pla￿, London. EC4A 18E Bankers.. Barclays. UK 8ankln& I Churchill Place, London E14 5HP and Natwest. 1-11 The Broadway, London, E15 4DX Chority ryistèrtd in Engbnd ond Wal9¥ I IA7794 Cornp￿Y 11rni￿d byguoionke 0807539 CARITAS ANCHOR HOUSE CAR￿AS- ANCHOR HOUSE TRUSTEES, ANNUAL REPORT {contlnu¢dl FOR THE YEAR ENDED 31 MARCH 2022 About Us Carita5 Anchor House ICAHI is a homelessness charity. and tor nearly 60 year5 ha5 provided a safe place and support for people to rebuild their lives. We are based in the London Borough of Newham whKh has the hi8he5t leve15 of homdessnes5 per capita in the country. During the last year wè have reflected on our purpose and our value5 and alon85ide our team, our resldents and many other Stakeholders to our work, we have created a new rnission statement and a core set of values which will guide our work 80inÈ forward. r mlsslon is to build hope. enable lastln8 change arKI el￿ hcAnelessness for pe¢)ple in East London. Our value$ 8uide our interartions and decision-makin8 processes at all levels within the organisatlon. They are.. Compasslon- we care about people. value their wews and expenen¢es and putthem at the heart of all we do. In¢lusion- we celebrate diversity, promote inclusivity and respect. and thallenBe inequality. Growth- we 5UPPOrt people to breakthrO￿h barriers and fulfil their hopes and potential. Collaboratlon- we're strong£Y and can have a bigger impact when we work in partnerships and build alliances. Our servlce combine5the prov¥sion of a safe place to Ilve for vulnerable adults e￿erienC1￿ homelessness, with in-house delivery focusing on physical and mental health, complex health issues, education, employment, finanaal literacy and tenancy sustainment. Each per50n who walks throu8h our doors receives a full assessment of their needs and a bespoke programme of in-house and exiernal seThices created to best prepare that indiwdual for independent living. We are proud to xt as a be¥on of ho￿ the growin8 number of residents we are now able to supporL In the year ending 31st March 2022. we accommodated and supported 374 people, and helped 129 people to move on positively from our Servi￿$, leaving homelessness behind them. Ckne of our re￿dentS this year. Dulce, shared her story ¥Mth ¥Js. Just over o yeor ogo, I wos sleeping rotwh on the streets. tt wos on owfvl ond terrifvng timefor me. I remember muny timesfeoringformyownsufety. The￿ were n￿nY nwhts when I wouldh17ve to htidefrom people. I wu5 ushamed toshow myfuce at the time. I wu5 $0 scured thot I hod to sleep in the bushes in parks to hide. 50 many people would judge me. coll me nomes andshout horrible things at me. Luckily, I movedinto CoritosAn¢horHousesoonafterthis terribleexperience on thestreet5. 1 rememberrelief tis Istepped intomyroom. os Iknew that Iwouldbesafrthatevening. IhovenowstartedtonotKemyselfsmile which hadn'thoppened In so long. It s umt7zing what can hoppetr) if you ore in o soft ondpositive plocesurrounded bysmlleyfvces. Here at Coritos Anchor House, I've olw(Jys got someone to speak to when l umfeeltng down. My keyworker Tristun is o wonderful per5LM. Whenever l om unsure whut to do, he is there to guide me ond point n7e in the Tight direction. The people here hove helped me $0 much. I'llbe honest. Sometimes I stillAeel depressed. but now when ifeeldown I know l con go to my bol¢onyoutsAde my room, und Idon't hove to hide tn dongerousporks onymore. Istill get nightmores 0ndfl(Jsht￿¢k to my experience on the streets but they ore startirjg to become le5sfreouent. l um tuking things Slowly, but ¢we step ut o time l um getting better ond feeling more positive. I have been given everything I need here ot Caritos Anchor House. now Ifinollyfeel like l om in control., cl￿rty re9i5*red in En9W oThd Woles 1147794 C¢*Trpony limrt•d by gucYoTh*e 0807539 CARITAS ANCHOR HOUSE CARrrAS- ANCHOR HOUSE TRusfEES' ANNUAL REPORT Iconllnued) FOR THE YEAR ENDED 31 MARCH 2022 Structure, Go¥ernano & Management CAH is a reglstered charity and company limited by 8uarantee as well as a Registered Provider of Social Houslng. We are regulated by a number of bod￿$. including the Charity Commission. Companie5 House. the Fundralslng Regulator and the Regulator of Social Housin& In the prior year ended 31 March 2021, the Trustees completed a review of the Charivs compliance wlth both of the recently updated Charity Code of Governance and the National Housing Federation's Code of Governance. This review concluded that we are fundarnentally operating in line WTth both Codes. and has pr￿ided us with a helpful range of recommendations to further improve our approach around governance ￿lch we are now W0￿1ng to Smplement. Our Trustees meet on a quartedy basss to review the performance of the organisation and plan for the future. The professional bacKgrounds of the Trustees include finanual management, business plannin& charity management. social enterprise, human resources and diversity. law. risk managemènt, social Ca￿ and community involvement, marketing and investment banking. The day to day running of the Charity 15 delegated to the Chief Executive and 5trate8ic Management Team I'smfi. Our SMT is led by OUT Chief Executive. Amanda Dubarry. who joined us in March 2018 and has an eXtenS￿e background in the homelessness sector. She was joined by both John Lowery, Direttor of Frontline Serwces. and Siva Selliah. Finance Director. in 2018. both of whom come to us wth many years. experience in the housing and care sectors. In lune 2020 a fourth member of the senior team. Crai8 Hardaker, jThned a5 our Director of People, bringlng with hlm a strong background In the charity sertor. Key managèment remuneration is set by the Trustee5 by reference to the degree of seniority and responsibility of the P05L by benchmarking against similar roles in tharities of similar size and complexity and in the light of performance appraisal. Trustee recrultment, Inductlon and traini The support of our Trustees is vitally important in ensuring we deliver the best tx)ssible service to those in need, and in raising awareness and support for the essential and life thanging work that CAH provides. Between autumn 2021 and summer 2022. three new trustees joined our Board whbch enabled us to broaden our Board skillset. the divefsity of trustee membership and to meet identified Skills gaps. In addition. we entered into an Innovative new development programme. our Next Generation Trustee Programme. to help us to prepare a group of d￿er5e future trustees, working in partnership with the Housing Diversity Networ I new tru5tee5 are provided with a trustee irMluCti￿ pack arld induction pro￿$$, and are encoura8ed ènd supported to attend specialist trainlng relating to the roles and responsibilities of a charity trustee, including safeguarding. Oblertives & Actl¥tt5•5 Caritas Anchor House's objects contalned In ks Memorandum and Artides of Associatlon are "to further the general charitable works of the Roman Catholic Church by prwding services and facilities for the relief of poverty and sufferin& the advancement of education, the promotion of socialjustice and other charitable actswhich promotethe devèlopment of all individua15 and communities in need for the public benefit of people of all faiths and none." We provide supported accommodation to 229 people experiencing homelessness in the London Borough of Newham at any one tlme, and support them to move on and break the cycle of homelessness for good. We do this by= Providing a safe place. to make sure that people experiencin8 homelessne55 have somewhere safe to stay as they begin to rebuild their lives Cknity regis￿r￿9 in Engbnd ond Wole$ 1147794 Cornwny limthd by 0807539 CARITAS ANCHOR HOUSE CARITAS- ANCHOR HOUSE TRusfEES' ANNUAL REPORT {contlnued) FOR THE YEAR ENDEO ai MARCH 2022 Offerlng SUPPOrt- to encourage and enable p￿PIe tts build z betterfuture for themselves, th￿0￿h the provision of personalised support. educational and life skills opportunities Bullding resillence-to Ixjild networks of support. and empower people to navigate confldènce and be a proactive member of their community outside of arKI beyond lrfe at Caritss Anchor House. Our frontline teams WO￿ directty with residents during their time at Caritas Anchor House. Each resident, IS aSSl8ned a keyworker who will 8uide them throu8h their stay, and supports them to access a holistic service offefing relating to health and wellbein& education and employability. financial managemerrt and seojring and sustslnlng new tenancles. Residents can participate in trainin& workshops and artNities induding money mana8ementtrainin& En81ish as a Second Lan8uage, mindfulness sessions, counsellin& CV workshops and event5. Our goal for each resident is for them to move on from our services with the skills to navigate their next chapter5 Wlth nfidence and to sustain their accommodatiw and Independen￿ Ion8 term. Publlc benefh The Trustees confirmthat they have complied with the duty in Section 17 of the Charf(ie5 Act 2011 to have due regard to the CharityCommi5sion's general guidance on public benefit"Charrf(ies and Public Benefft" in the exerclse of thelr p¢)wers and responsibilities as detailed in the Articles of Assoclation and undef charfty law. Value for Money The Charlty is always consciou5 of the need to provide value for rn￿eY to ¢)ur users and stakeholders. As a wlstered provider of social housing with the Regulator of Social Houslng I'RSH'I. we are committed to delIVe￿ng value for monev and continuing to meet the RSH'S Value for Money Standard. Our rental and housing related support levels are set in consultation with London BoroLtgh of Newham. to ensure that they, as the principal commissloners of our seFvi¢es, feel that they are rereivin8 such value. We regularly review our performance and the way we work to continue developing the irnpact of 5ervice5 and using resources in the m05t effertive and efFicient way. Metric l- Reinvestmert% This metric looks at the investment in properties (existing stock as well as new supply) as a percentage of the value of total propertSes held. There ha5 been a new supply of 15 units added to Anchor House (Hope Street project). The percentage reflects investment in this project and work on exlsting properties Icapitalised maintenance c05ts1. Thè chariWs metri¢ for reinvestment for the year was 6.07%12021.. 0.29%) Metrfc 2- New supplydell¥ered % During the year the Charity has deltvered IS social housing units. Thls ￿p￿sents 9.68% of the total numberof bedspaces owned by the Charity at the er￿ of this financial year. INO units were delivered in the pre￿dIng financial yearl. Metrfc 3- Gearkn¥ % The Charlty's property. Anchor House. is owned freehold. The charity has two lon8term loans. one wlth Natwest. secu￿d against this property. and the other wrf(h Homeless Link. The balance outstanding at 31 March 2022 of £2.187K12021.. £2,262KI represents 10.78%12021=2.99%1 of Housing depreciated value owned by the Charity. Metrlc 4- EamlnBs Before InteresL Ta4 Dewedatlon. Amortlsatlon, Ma￿r Repalrs Included IEBITDA MRI) Interest Cover % The charity paid interest of £68K12021.. £61KI in the year in relat￿n to the loan finance ￿fer￿1 in metric 3. Interest 15 therefore covered-20%12021.'1804%1 by EBITDA MRI. Chority regi*rgJ in Er¥Jkind ond ￿185 1147794 limit*J by 9LKJron*O 0607539 CARITAS ANCHOR HOUSE CARITAS- At4CHOR HOUSE TRUSTEES. ANNUAL REPORT Icontlnued) FOR THE YEAR ENDED 31 MARCH 2022 The negative interest cover for thè year wa5 due to loss of rental income and increase In refvrbishment costs due to planned maintenance work on a number of units at Anchor House. Metrf¢ 5- Headllne houslng u•st p•r unlt The cost per unlt for the year was £19.58812021: £2S.4011. The cost reflects the avera8e c05t of housing and support servlces offered to our residents in the year. The support servi¢es vary from low to medlum, induding service5 to people sleepin8 rough and residents ￿th mLbltiple and complex need5. Mrtrl¢ 6- Operatlni Marwn {overalll The operating margin of the Charity as a whole for the year was-7.84%12021: 18.56%). The negatlve mar8in was due to loss of rental Income and increase in refurbishment costs due to planned MaIrtenan￿ work on a number of units at Anchor House. Metri¢ 7- ftetum on capltal employed IROCEI % Thls metric compares the operab.ng surplus to total assets less current liabilities. Forthe Charrty as whole this was-2.58% for the yèar12021= 6.17%). The negative ROCE was due to reawrt5 5tsted in metric 6. Fundralsln8 Our supporters are incredibly important to us, and we believe in maintaining the highest possible standards when fundraisinB. We are registered with the Fundraising Regulatorand are committed tothe Fundraising Promise and working in a waythat is compliant with the Code of Fundraising Practice. This report cover5 the requirements charities mustfollow as set out in the Charities Act 2016. We keep our fundraising poliry and Practices under remew and ensure that our fundraising meets the standards required in law and reflects best practice. so that our donors can give with confidence. With the On8￿n8 Covid-19 pandemic. fundraising throu8h in-ptrson events, schools and faith groups contlnued to be restricted and our focus remained on securing grants. individual donatlons and gifts in kind. We partitipated in the 818 Give Christmas Challenge 2021, whereby donations madè during the ortline campaign were match-funded. which raised a restricted fundinB of £31.715 to support residents to move on. We were also grateful to receive many gifts in kind durln8 theyear, in¢ludin8food, toiletrie5 and clothingfor our residents, and fumishings fortheir rooms. We also received £17,360 pro-bono project management assistance for our new accommodation units from LandAid. Despite the challengin8 environment from a fundraising perspertive, and the impart on our usual hjndraising activities due to the ongoing Covid-19 pandemic, we raised £l,(Kt3,081 income from 8rants and donations in the year. Ifs Important to us that everyone we interact with feels free from undue influence when they consider donating. We ensure our fvndraisers can recognise signs of potèntial vulnerability. so they can manage conversations and take action in the most appropriate wav. We acknowledge that people's circumstances ¢han8e, and we promise to respect and act on information shared if one of our supporters is in a vulnerable situation- we did not receive any such notifications in the financial year. We are also signed up to the Fundraising Preference SefvSce to enable individuals to opt out from receiving fundraising communications from us- we received zero ￿￿est5 from this servKe during the year. We promise that we will treat all complaints seriously. investigate them fvlly and ￿pOrt back transparently and appropriately. Our alm is always for our sUPPOrters to have a high-quality experience with us. and we are pleased that we did not receive any complaints about our fundraisin& marketing or related ¢ommunications- done by ourselves or any third partie5- in the year. We did not work with any professional fundra¢sers or commeroal participators, as defined by the Fundraising Regulator. Should this be somethin6 we do in the future. we will of course monitor the activities carried OLtt to ensure they meet the samè hiBh standards we expect of our own fvndrai5er5, and have any required agreements in place. ckn.ty rggist•rwl in Engbnd and Woles 1147794 Cornpjny limi￿ by guor¢Jnhw 0807539 CARITAS ANCHOR HOUSE CARITAS- ANCHOR HOUSE TRusfEES' ANNUAL REPORT lctyfflnuedl FOR THE YEAR ENDED 31 MARCH 2021 srpATEGIC REPORT Athlevements and Perforniance The context in which we work has becorre ever more that￿In8 over the la5tfew years. The housinB crisis continues to deepen with house prices and rents beyond the reach of many of those living locally, wages remain stagnant, and inflation has begun to 50ar leading to a c05t of INing crisis across the country which is hitting those on low incomes the hardest. In response to these rising needs, we are pleased to report that we started the year with 140 bed-spaces, and ended it with 229 bed-spa¢es, making Caritas Anthor House the largest provider of supported accommodation for people experienclng homelessne￿ in Newham. Our main site. Anchor House in C3nningTown. provides one ofthe largest hostel services In the Country. We now offer seven accommodation services.. Our Core service at Anchor House. providing 117 room5 and flats for th05e experienan8 homelessnes5 With low to medium level support needs Our Complex Needs service at Anchor H(￿se, pmwding 23 room5 for those who have been rough sleepin8 ar have high level support need5 Our Hope Street service at Anchor House. providin8 15 move on Thouses, for people who have been rough sleeping with low to medium support needs Our Direct Access Assessment Hub semce based in Upton Park for people who have been rough sleeping and are coming straight from the streets Our Women's Service in East Ham for women who have been rough sleeping and have hi8h support need5 Our Launchpad serwce in Beckton for men who have been rough sleeping and have medium to high support needs. Thi5 service runs alongside Olsr a¢¢ommodation at Bradymead in Beckton for people who have been rou8h 51eepin8 who have medium to hi8h sUPPOrt needs Our Move on Support Service. operatirvx from the C(yJrtney Hotel in Wanstead. supporting people who have been rough sleeping The growth in our services ha5 been a5 a result of ￿40 successful planTred developrnents during the year.. Our partnership with CGL and other local providers which began delNerin8 a range of Integrated Rough Sleeper Support Services on behalf of the London Borough of Newham in September 2021. The openin8 of our new Hope Street development of fifteen innovattve 'houses' for former rough 51eeper5 in our unused'Barn' warehouse space at Anthor House In addition to these new supported ac¢ommth4atit￿ services. we also created a Community Partherships team this vear which oversees our employment support to residents. ￿l￿ent engagemenL as well as volunteerln& and we have been delighted with the outcomes th￿ team has athieved.. Research shows that across the UK, an average of 7% of people living in sUPPQrted housing are In pald employment. At CAH. 68118.2%) were in paid employment in the year. In the year, we recorded 689 attendance5 atemployment and education sessions, a si8nifiont in¢rease of 274% on previous years, activities in this area. This improvement wa5 due to the lrftin8 of Cowd restrittion which enabled us to resume group meetings, in- person meètlng, and employing a new full-time Job Coach role to support our residents into employment Our Education, Training and Employment service providès a wide range of actr¥ities including ESOL IT. intenslve ETE (employment training antl education) sessions with our newjob Coach. We provided 248 attendances at Community Engagement sessions such as our Resident Sounding Board, the Newham Housin8 System w￿kShop. and the London's Mayoral Assembly 43 volunteers undertook almost I,(MXI volunteering hour51986.5 hours). Ckirty regi*d in ErKdbfid ond wo￿5 1147794 Qynrony gwranfee 0807539 CARITAS ANCHOR H(MSE CARITAS- ANCHOR HOUSE TRUSTEES. ANNUAL REPORT {contlnu•d) FOR THE YEAR ENDED 31 MARCH 2022 Our Trustees regularly re7Aew the pro8￿$ of the organisation, and the main objectives whlch were achieved durin8 this year to meet our lon8 term 5trate8y were- Despfte a very challefi8in8 economic backdrop and a global health crisis. we were able to maintairt our service levels to our stakeholders. We achieved a 93% room utilisation rats. hou4n8 and supporting 374 people across the year la 35% increase from the previous yearl. The number of new residents we were able to accommodate has increased due to our expansitsn from the InteBrated Rough Sleepers Support Service IIRSSSI as outlined on page 6, in the'Achievement and Perfom)ance' sectS0n. Twenty-five percent of our residents were rough sleeping before ¢omin8 to CAH, and we increased our capacity to accommodate people with No Flrfourse to Public FLsnd, who make up many of those who are living on the street$168 residents accommodated in the year. a 127% inuease frc*n the pwiousyearl. We are proud to have a had a significant impact in reducing local rough sleeping this year. Desplte the majofity of our beds being fijnded with a low support level SeThI￿ almost one third of the residents we supported in the year1168 people. 28%) had one or more ￿MpleX needs (issues wth substan￿ misuse. mental health. and physlcal health). We are delighted that we have enabled a great many people wth hwdher levels of need5 to access our services to help to transfomi their lrfe. We continued to strengthen ourworkwth residents. 5upporbng 129 of our re5identsto move on posltivelyfrom cwjr serrice during the year: 34 residents moved into their own homes 33 residents moved to our on-site flats 0 45 ￿SIdentS moved into short-term accommodations. and, 0 50 moved into medium•long term accommodation (such as supportedlsheltered hous1￿ Clearing House lets via St Mungo's). 68 residents had a job in the year, of which 34 residents gained new employment 91% of our residents sustained their tenancy up to 3 months after leavin8 the accommodation 81% of our residents sustained their tenancy for six months after leaving our services, demortstratlng an astonishing eight out of ten of our residents breakin8 their cyde of homele55riess with our support Despite the Challen￿'n& enwronment from a fundraising perspective, and the impact on our usual fundralsing artivities due to the ongoing Covid-19 pandemi¢, we raised £l,C(J3,081 income from grants and donations in the year. We are fortunate to have a verytalented. dedicated and professional team, and we are delighted that their work was recognised by wtnning both the Newham Business Awards 2021.. Ovic & Community Engagement award, and, the East London Community Heroes Awards 2021: Communtty Group of the Year. We were also finallsts In the UK HoLtsing Awards: Homelessness Project of the Year. In addition, we are extremely proud that our work as an employer was awarded both the Disability Confident Committed status by the DWP. and the Good Work Standard employer by the GLA. During the year we have also been active in supporbnB 5ettor campaigns calling for the government to.. protèct those with No Recourse to Public Funds INRPFI ensure that sleeping rough is no longer a legal ground to remove someone from the UK repeal the Vagrancy Act covirk19 For the second year Covid 19 affected our atttwties throughout this year. Our focus continued to be on keeping our people Ire5idents, employees, volunteers and visitors) safe in a publlc health emergency. Our communal spaces remained largely closed and our doors were shut to visitors and partners. Chority r¥Jistei8d in Erplond and Wolas 1147794 Compcry 11rn￿ by gwron*e 0807539 CARITA% ,ANCHO HOUSE CARITAS- ANCHOR HOUSE TRUStEES' ANNUAL REPORT l¢ontinued) FOR THE YEAR ENDED 31 MARCH 2022 on8side these measure5 we continued to distribute food for all of our residents Iwho usually selfn. evaluation. and control of 8nificant risks. Risk re8lSter and risk management reports Performance report5 Extemal audit reports Detailed finanoal bud8ets. management accounts and forecasts Pdioe5 and procedure5 for all areas- Safeguardin& Health & Safety. Human Resourte. Tinance & IT. These polices and procedure are reviewed by the Sub-committees and the Board on a re8ular basis. Established authorisation and appraisal procedure5 for new initiative5 and cgmmitments Regular reporting to the appropriate Sub-comrnittees and Board on key business objettivts. targets and outcomes. 12 Charity fegi5tered in OTh4 Woks 1147794 C¢ynpry Iimibd ￿ 9wJr(¥*e 0807539 CARITAS NCHOR HOUSE CARITA5. ANCHOA HOUSE TRUSTEES, ANNUAL REPORT (con￿￿￿ed FOR THE YEAR ENDED 31 MARCH 2022 The key a￿aS cover control. information rewtin8 SyStem5. monitoring and risk management. Control The Board of Trustees retsins responsibility for defined range of arèas covering 5trategi4 operational. and financial elements. The Board of Trust*s has put in place an or8anisational strurture whith dearly defines liftes of responsibility and delegation of authority. Informatlon reportln8 system Financial reportsn8 Systems include regular reviews of overall financial businèss plans. prèparation ol detailed annul bud8ets and the production ol detailed rnonthly management accounts. These are prepared by the Senior Management Team and are considered and approved by the Sub-Cc¥nmittee and the Board. The Senior Man4ement Team and the Board of Trustees also review performance regularly to assess pro8ress towards the achievement of key business objectwe. tsrgets and outrome5. Monltorlng A prO￿sS of regular management rrbonitoring on control issues provide5 assurance to Senior Management Team and Board of Trustees. This indudes a iigorous process of ensuri￿ that ¢orrettive Jtti¢ns are taken in relation to any significant tontrol issue5. k M•na8ern•nt The charity has a comprehensive risk mana8ement strate8y which identifies risks facin8 the Charity, risk managèment responsibilities, and action required to mitigate these risks. and monitoring arian8ement5. The Tru5tees' Annual Report which incorporates the stra￿lC reportwas approved and signed on behalf of the Board on 7 September 2022 Simon Hall-chair & Trustee 13 Cknrty rryis*xed in Eryljnd orKI Wales 1147794 Compuny l*mi*d by 0807539 CARIIAS ANCHOR HOUSE INDEPENDENT AUDITOYS REPORT TO THE MEMBER5 OF CARtrAS-ANCHOR HOUSE Oplnlon We have audited the linantial statsments Of Caritss- Anth¢x House for the year ende(131 M￿h 2022 which COM￿1$e Statement of Financial Activitie5, Balance sheeL Statement of Cash Rows and notestothe finanaal staterrents, indudin8 a summary of significant accounting poliae5. The finanoal reportingframeworkthat has been applied in theirpreparntion Is appllcable law and United Kingdom Accountin8 Standards, Indudin8 Finanoal Reportin8 Standard 102 The Finontiol Reporting Stond¢7rd opplio71Jle in the UK ond Republic of Ireland Iuniied Klnedom Generally Accepted Accoufttsng Practice). In our oplniori. the flnancial 5tatements'. 8ive a trueand lairwew of the state of the tha￿￿￿e¢0MPanrf$ affairs as at31 March 2022 and ofthe charitable companls net movement in funds. induding the inttsme and expenditure. forthe year then ended.. have been propedy prepared in accordzntr wth United ￿ngdOM Generally Accepted Accounting Practice,. and have been prepared in accordance *ith the ￿qUirementS of the Companies Act 20C6. the Housing and Regeneration Aet 2LMI8 arnd the Atcounting Direction for Private Re8iStered Prnwders of Sooal Housin8 from January 2019. Basls for oplnlon We eondueted our audit in accordance with Intematrona standards on Auditin8 IUKI IISAS IUKII and applicable law. Our responsibilitie5 under those standards are further described in the Auditorfs responsibilities for the audit of the finanoal statements section of our report. We are independent of the Charity in attordance with the ethical re4uirements that are relevant to our audit of the linanaal statements in the UK. indudin8the FRCS Ethical Standard. and we have fulfilled our other ethical respon5ibilitie5 in accordance with these requirernents. We believe that the audit evldence we have obtained is Sufficient and appropriate to provide a basis lor our opinion. Concluslons rekntln8to Oni foncem In auditing the financial statements. we have conduded that the trusterf use of the g￿n8 concern basis of accounting in the preparation of the finanoal statements is appropriate. Based on the work we have perfornied. we have not identified any material uncertainties relatin8 to events or conditions that, indiwdually or cdlectively. may cast %8nificant tloubt on the tharita￿e company's ability to continue as a 8oin8 concem for a period of at least twdve months from when the finantial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to 80ir8 con￿rn a￿ described in the rdevant sections of this ￿POrt. Olher Ib)formathn The Trustees are respon5ilAe forthe other information. The othersnformation comprises the informatson included in the Trusteès. Annual Report Our opinion on the finanaal 5taternents does not cover the other information and, except to the extent otherwise expliciyy stated in our reporL we do not exp￿5 any form of assurance cOnclu￿on thereon. In connection with our audit of the finanoal ststements, our respon9kn1ity is to read the other information and, in doing so, consider wh￿her the other infornlation is materially incon&stent with the finantial statements Or our knowledge obtained in the audit or othenwi5e appears to be materially misstated. If we identify such material inconsistenoes or apparent rnalerial mi55tatements. we are required to determinewhetherthere is a material misstatement In the fTnancial statements or a material misstatement of the other information. If. based on the work wè havè performed. we conclude that there 15 a material mi55taternent of this Qther information. we are required tt> report that fact. We have nothing to report in this regard. Oplnlons on other matters westrlbed bythè Companlts Art 2(rf16 In our opinion. based on the work undeftaken in the course of the audlL' the infomation wven in the Trusteeg Annual Report Iwhith indudes the stratwt ￿port and the direttors, report prepared forthe purposes of company lawl for the finantial year for whith the finantsal statements are prepared is tonsi5tent the firtantial ststements- and 14 Chryty reg5S￿ed in EndoTrd ond Wdes 1147794 Cryny Iiffl*th4 by 9Jf#on￿ 0807539 IARIIAS ANCHOR HOUSE INDEPENDENT AUDITORS REPORTTOTHE MEMBERS OF CARITAS-ANCHOR HOUSE Icontinuedl the strategi¢ report and the dirertor5' report induded within the Trustees. Annual Report have been prepared in accordance with applicable legal ￿quIrements. Matters on whlch we arè rtqulred to report by exception In the light of the knowled8e and understsndin8 of the charitable company and its environment obtairntd in thè course of the audit, we have not identrfied matèrial misstatements in the Trustees. Annual Report Iwhich incorporates the strategit report and the directorf report). We have nothing to rèport in respèct of the followin8 matters in relation to which the Companies Act 2(K16 requires us to report to you if, in our opinion: adequate 4ccounting records have not been kept by the tharitsble company,. or the charitable company financial siatements are not in agreement with thè %counting re￿rdS and returns,. or rtain di5cIosuTe5 of trustees. remuneration specified by law a￿ not made.. or we have not receivetl all the tnfomiation and explanations we require for our audit. Responsibiitiesof trustees forthe flnanclal statements As explained more fulty in the tru5tees' responybilitie5 Statement set out on page 12, the Trustees (who are also the directors of the charitable company forthe purposes of company lawl are responsible for the preparation ol the finanaal statemenis and for bein8 sat15fied that they 8ive a true and fair ¥iew. and for such internal control as the trustees determine is necessary to enable the preparation of finanaal statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements. the Trustees are responsible for assessing the charitable companvs abllity to continue as a 80ing concern, disclosin8. as applicable. mattèrs related to going concern and usingthe 8oin8 concern basis ol accounting unles5 the Trustees either intend to liquidate the charr(able company or to cease operations, or have no realistic altematwe but to do so. Audltorfs responslbllltles lor the audlt of the finandal statemènts Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstaternenL whether due to fraud or error. and tg I￿￿e an auditorfs report that includes our opinion. Reasonable assurance is a hi8h level of assurance. but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstaiement when it exists. Misstatements tan arise from fraud or errtsr and are con￿dered material if. individually or in the aggregate. they could reayjnably be expected to influence the economic decisions Of users tsken on the basis of these finanoal statements. Irre8ularitie5. including fraud. are instsnce5 of non-compliance wth laws and regulations. We desi8n procedures in Irne with our responsibilities, outlined above, to detect material misstatements in respect of irre8ularities, ineluding fraud. The extent to which our procedures are capable of detecting irregularitie5. in¢ludingfraud is detailed btlow. Based on our understandin8 of the d)aritable company and the environment in which it operate5. we identified that the principal risks of non-cornplian￿ with laws and regulations related to social hou5in& safeguardin& fundraisin& employment and health and safety regulations and charity law. and we considered the extent to which non-compliance might have a material effert on the financial ststements. We a150 considered those laws and regulations that have a direct impact on the preparation of the financial statements such as include the Statement of Recornmended Practice for registered Social Housing Providers 2￿8. Companies Act 2Cl￿ and the Charities Act 2011. and considered other fartors such as income tax, payroll tax and sales tsx. We evaluated managemenys incentive5 and opportunitie5 for fraudulent manipulation of the flnanclal statements lincludin8 the risk of override of controls). Audit procedures perfomed by the engagement team induded.. 15 Owty ffégisknd In ETr9iond ofid wo￿3 11477P4 Ctyhptsny limitod by 9u(¥onte6 0807539 CARITAS ANCHOR HOUSE INDEPENDENT AUD￿OR.5 REPORTTOTHE MEMBER5 OF CARITAS- ANCHOR HOUSE Itontinuedl - Inspectin8 correspondence with regulators and tsx a￿hOrities.. - Distussions with management induding con&deration of known orsuspected instances of non-compliance with laws and regulation and fraud: Evaluatin8 mana8ement's controls deg8ned to pr￿ent and detect Ir￿ular1tses.' Identifying and testing journals, in particular joumal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions- and - Challenging assumptions and judgements made by mana8ement in thar cr￿cal accounting estimates Because of the Inherent limitations of an audiL there is a risk that we wll not detect Il Ir￿ular1ties, inclydin8 those leadin8 to a material misstatement In the flnancial statements or nOn-comF￿￿ance with regulation. This risk increases the more that tompliance with a law or regulation is removed from the events antl transactions reflected in the financial statements, as we will be le55 likdy to become aware of instance5 of non-cornplian￿. The risk is a150 greater regarding irie8ularities occurring due to fraud rather than error. as fraud snv¢Yves intentional concealmenL for8ery. collusk*n, omission or misrepresentation. Afurtherdescription of our reSpOn￿l￿11t1es for the audit of the ffinanoal statements rs located on the Financial Reporting Council's website at.. www.frc.o .uk auditorsres onsibilities. This description forms part of our auditorfs report. Use of our report This report is made soldy to the tharitrdblè companvs members. as a body. in attordance with Chaptèr 3 01 Part 16 of the Companie5 Act 21XJ6. Our audit w¢yk has been undertaken so that we m¢Bht state to the charitable company'5 members those matters we are requtred ¢0 srate lo them in an Auditols report and for no other purpose. To the fullest extent permitted by law, we do noi accept or assume respon%bility to anyone other than the charitable company and the thariiable tompany's members as a body, fty auditwort lorthis repory or for the oplnlonswe have fomied. Lee Stokes (Senior Statutory Audtorl For and on behalf of Haysmacintyre LLP. StatutoryAuditors 10 Queen Street Place London EC4R IAG 16 Charty regi5knd in EnBkiTh4 OTh4 Wa￿$ 1147794 Cornpyy I￿l￿d 0807539 IARITAS ANCHOR OUSE CARITAS- ANCHOR HOUSE STATEMÉNT OF FINANaALAcnvmES IINCORPOKATING THE INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 MARCH 2022 Unrestrlrted fvnds Ilestflrted funds Total Funds Total Funds 21)22 2022 202Z 2021 Noies INCOME FROM Donation5. 8rants and le8aoes Charitable activity.. Anthor H￿se 2a 253.418 749,663 I,C(13,081 1,033.827 2b 3.559.566 3.559.566 3.381.382 Other trad1ng activities.. Rent receivable 2L358 21,3S8 21,4( TOTAL INCOME 3.834.342 749,663 4.584,Tr)5 4,436,615 EXPENDITURE ON Cost of raising fLbnds Charitable artivity= Anchor House 22L394 221,394 215,524 4.026.311 299.602 4,325,913 3,443,189 TOTAL EXPENDITURE 4.247.705 299.602 4,547.307 3.658.713 Net lexpendlturelllncome 1413,3631 405,061 36,698 777,9)2 Transfers between funds 453,892 1453,8921 NET MOVEMENT IN FUNDS 40.529 13.8311 36.698 777.902 TOTAL FUN05 BROUGHT FORWARD 10.463.838 41,831 10,505.669 9,727.767 TOTAL FUNDS CARRIED FORWARD 10.504,367 10.542,367 10,505,669 The notes on pages 21 to 33 fomi part ofthese financial statements. All tran5artSons are derNed from continuing activities. All recognisèd 8ains and Ios5e5 are included in the Ststement of Financial Acbvitie& Detai15 of comparative figures are given in note 21. 17 Cknty rnyis*T￿ *h EnghAd tsrd I1477P4 Cornpany lunited by 9urMr1￿ 0807539 RITA l*LI10.. IC.'USE C•JIITAS. AN￿￿ 11 AS AT 3A MAROI Illll FIXED ASSETS IL1$6.206 10325JIO ILA56.286 10,525.340 sio¢ks li 149 241244 2364J¥l 2.612.774 rs sh •t b•nk •TrKI on thos 517.lJ97 1315.C U¢EfMTfXIS.' tsll* t)ThÈ ye 1446,4(Al L47LX6 2.16&310 alEOITOftS'. f*ll￿￿ul Iftqrtyw 14 11016.2251 10512.%? 12.185.981) 10.50S,669 REPAESÉP4YEO U*ve5trtrted Furyjs 15 16 17 484,453 10.019,915 8325 9.631263 . De4n•led 10,505,669 The fIna￿lI1 Staten￿lS wefe •pprrynd •¥J •Alw¥ed lor thè atwd alTrusteos on 7 Sooeff*•r 2021 and We￿ si￿1 on its l)tl¥tl br. Hall. Tn411q• The no¢e5 W8e5 21 to 33 fryrn pwt t•wthl sl•l*ffthtL Ccthwny ￿￿5￿￿tI￿ numlw.. IW75329 IEr*nd Wth51 Cwty Mg4*•d In fryJknd I14V94 lry wyDtthQ907539 LARITAS ANCHOR I IOUSE CARITAS-ANCHOR HOUSE STATEMENTOF CASH FLOWS ASAT 31 MARCH 2022 CASII FLOWSTA TEMENr 2022 2021 Cash flows from operatln8 att￿lI1e$. Net ¢oshprovlded byoperntlng artfvlt 450.260 1,229,723 sh fiows from Investlni actl¥ltles: Dlvldends, interest and rents from investments Purchase of property. plant and equipment Netcosh (usedin) Nnvestiffj octtvttle5 21.358 1968,3741 21.4C6 161,9101 1947.0161 140.5041 Cash ftows from finan¢1￿ arti¥iths: New borrowing drawn down Repayment of borrowiryd 120.000 150,2071 175.0451 Netwshpmvldedby Infvonclnq ortlvftles 69,793 chan￿ ln cash and cash equlvalents In the reportlnl year Cash and cash equlvalents at the beginning of the report1￿ ye•r Cash and cash equlvalents at the end of the reportingy¢ar 1571.8011 2.364.381 1.792.580 1,259,012 1.105,369 2,364,381 Re(oncili¢7tKn ol net Inco•ne to rtet cash from op*rntM urtmtles 2022 2021 Nèt Intttmè lor the reportlni year las per the 5tstement of financial aC￿ltIes) 36,698 777,902 AdSustments for: Depreciation char8es Dividends, interest and rents from investments Increasellincreasel in stocks Iln¢reasellde¢rease in debtors Increase in Creditors 337.428 293.590 121,3581 121,4061 826 13431 1274,8531 62,249 371.519 117,731 450,260 1,229,723 Nei Cash pro¥lded by opèratknK actl¥ttles Anal￿5 of cosh ond cosh 2022 2021 Cash in hand 1,792.580 2.364,381 1,792.580 2,364.381 Total cash and casth equlvaknts 19 Cknrty rwdis*fd in E￿91)rtd Ohd wo￿1 1147794 CLYhP)Ay limi￿d by gv(xontso 0807539 CARITAS ANCHOR CARITAS- ANCHOR HOUSE STATEMENT OF CASH FLOWS ASAT 31 MARCH 2022 {contlnuedl Movementln netdebt 31 March 2022 IAprfl 2021 Cashfiows changes Cash and cash equivalents Loans due within one year Loans due after one year 2.364.381 175.9031 12.185.981) 102.497 1571,8011 75.045 1,792,580 I1￿,614) 12.086,2251 1394.2591 199,7561 99.756 1496.756 20 i•giStsrwJ irt Etybhd ONI wo￿5 11477P4 Cryiny h.mikd by gWrOn￿ 0807539 CARITAS ANC140R 140USE CARITAS- ANCHOR HOUSE NOTESTO THE FINANCIALSTATEMENTS FOR ThE YEAR ENDED 31 MARCH 2022 ACCOUNllNG POLICIES lal Basls of Accountlng The finantial statemènts have been prepared in accordan￿ with Accountin8 and Aeportin8 by (harities.. Statement of Recommended Practice applicable to charities preparing their accounts in aceordante with the Financial Reporting Standard applicable in the UK and Republit of Ireland IFRS1021 (Charities SORP IFRS1021. Statement of Recommended Practi￿ for re8lStered Social Housing Providers 21XJ8. the Financial Reportin8 Standard applicable in the UK and Republic of Ireland IFRS1021 and the Companies Att 2006. Caritss- Anchor House meets the definition of a public benefit entity under FRS 102. Assets and Liabilities arè inityally rec¢gnised at hist¢*rical cost or tran5actiOn value unle5$ Qthen1ri5e ststed in the relevant accountlng polScy notelsl. Ib) GOI￿ Concern Havin8 reviewed the fundin8 facilitie5 available to the Charity tO8ether with future projected cash flows coverfng a 12 month period from the approyal of the finantial staternents. the trustèès havè an expectation that the Charity has adequate resources to continue itsartNlties fortheforeseeable future and consider that there were no material uncertainties over the Chariws financial viability. Attordin8ly. the financial statements have beèn prepared on a Boing concem basis. {cl CrStlcal a¢countlnB ludlements and kèysources of estimation uncertainty In the application of the accountin8 policies. trustee5 are required to rnake jud8emenL estimate5. and assumptions about the carryin8 value of assets and liabilities that a￿ not readily appareni from other sources. The estimatès and undedying assumption5 are based on historital experien¢e and otherfactors that are considered to be relevanL Actual results may differ from these estimates. The estimate5 and Under￿Tr8 assumptions are re￿eWed on an ongoin8 ba515. Reviytsn5 to accounting estimates are reeognised in the period in which the estimate is revised if the re￿￿on affertsonlythat period. or in the period of the revision and future periods if the revision affetted current and future period5. Judgements made by thè trustees. in the application of these attounting polities that havè significant effett on the financial statements and estimates wth a significant risk of material adjustment in the next year are deemed to be in relation to the depreoation rates of t3n8ible fixed assets and are dixu5sed below. In the view of the trustees, no assumptions contemin8 the future or estimatiort of uncertairtty affectin8 assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts In the next finandal year. Idl Flnanclal Instrumènts Basic financial instruments are inltially reco8nised at transaction value and subsequently measured at amortised cost with the exception of investments which are held at fair value. Financial assets held at mortised cost comprise cash at bank and in hand. togetherwith trade and otherdebtors. A5pecific provisi¢*n is made for debts for whith retoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used asworkin8 capitsl. Finanoal liabilities held at amortised cost comprise all u*ditors except soual security and other taxes and prOVi￿On le) Income Income frorr Anchor House represents receipts from residential accommi>dation. meals and shop sale5. Donations and legacies a￿ atcounted for when received by the Charity. Other income is actounted for on an accruals basis as far as it Is prudent to do so. Revenue grants are credited to the statement of financial activities as recelved, unless they are to be spent in a lateryear, when they are deferred. 21 c￿rty rtyi*•d in Engk)nd ond Wok$ 1147794 Cunpuny limit•d by gvtyorteè 080753 CARIIAS ANCI.IOR HOUSE CARITAS- ANCHOR HOUSE NOTES TO THE FINANCIALSTATEMENTS AS AT 31 MARCH 2022 ACCOUNTING POUCIES Itontlnuedl ifj Expend1￿ Expenditure is retognised on an actruals basis. Governante Costs comprise the costs of running the Charity. induding strategic plann¢ng for its future d￿elopment internal and external audit legal and professional advice and all costs of complyin8 wth consDtutional and ststutory requirements, such as the costs of Trvsteg meetings and of p￿paring Statutory finanoa statements and sats"sfyltvd publlc accountablllty. Tan8lble fijred assèts The property is freehold. being situated at Anchor House. 81 Barking Road. London E16 4HB. and is included at C05t. less depreaation. The land ts tftduded at cost and is not depreciated. Assets under the course of construction are not depreuated until thework has been completed and the asset brou8ht into use. Oepretiation is tal¢ulated to writt down thÈ ¢ost less estimated regdual value of all tangible fixed assets other than freehold land over thwr estimated econonwc lives. Using cornponent C05ting prinoWe5 freehold property is divided into Components whith are depreci*ed over the followng years.. Building strutture Windows. bathrooms and floori￿% Heating and electricity systems Kitthen Lift 60 years IS years 15 years to 30years, as appropriate 20 year5 30 years In the pwous year the freehdd property was depwated at 2.(KN on a straight-line bags. Component accounting was introduced from 151 of April 2019. I PCS and laptops regardless of th*r values and other tan￿ble fixed assets exceedin8 £I.1X￿ are stated at cost net of depreciation. Depretiation is talculated at the follLwing annual rates.. Fixtures. fittin8s and equipment Motorvehldes - I￿33% straight line, as appropriate - 25% straight line Ihl In¥estmeThts Investments a￿ stated at thar middle market values ruling at the balance sheet date. The realised and unrealiseé gains and losses on investment5 are calculated b35ed on the openin8 market values and are accounted for within the Statement of Financial ActiwtFes. Income arising from these investments is a¢rwnted for when it 15 recwvable. Sio¢ks Stocks are shown at lower of cost and net realisaue value after makj.ng due allowance for obsolete and ￿0W moMn8 Items. ui Debto Trade and other debtors are reco8nised at the set￿ement amount due after any trade discount offered. Prepayment5 are valued at the amoLbnt prepaid net of any trade discounts due. Ikl C45h at bank and In hand Cash at bank and cash in hand Includes cash and short tem hiehly Ilqtsid Investments. Crtd6tors and prnvislons Creditors and prowi&ons a￿ recognised Whe￿ the Ch￿ty has a present obl¥gation ￿SuItIng from a past event that will prOba￿V result in the transler of funds to a third party and the amount due to settle the obligation can be mea5vred or e5tirnated Teliably. Creditors and prow￿0￿5 are normally recognised at th*r settlement amount after allowng for any trade discounts due. 22 C￿ty vegis*red in Endond ord Wd*s 1147794 lifflrf￿ bYgucAon￿9 0807539 (.'ARITAS ANCHOR IqOUSE CARITAS- ANCHOR HOUSE NOTESTO THE FINANCIALSTATEMENTS AS AT 31 MARCH 2022 (ml Des18nated funds The Trustees may set aside amounts of unrestrirted fvnd5. at their discretion. for speufic future purposes. Such funds are shown within unrestricted funds as designated fvnds. Where the trustees decide that designated funds are no longer required for the purposes specified. these are ￿leaSed from designated funds. {nl Restrlrted lunds The restricted funds a￿ monies raised for, and theiruse restritted to. a specifTc purpose or donations subje to othèr donor-irnp05ed conditions. Transfers are made to ￿n￿$tritte￿ funds where amounts raised for specific capital projetts are spent. lol Taxatlon As a registered Charity. Caritas - Anthor H¢X￿ benefits from rates relief and Is generally exempt from taxation on its income applied for charitable purposes. but not from Value Added Tax. Irrecoverable Value Added Tax is included in the c05t of those items to which it relates. 23 Cknrty re9151gr•d in Engbnd ¢Thd Wo195 1147794 c(￿P)nY limited by gvtyothe 0807539 LARifA ,ANCHOR HOUSE CARITAS. ANCHOR HOUSE NOTES TO THE FINANCIALSTATEMENTS FOR TH£ YEAR ENDED 31 MARCH 2022 2a In¢om• from don*ionsand 8ranlk' Income from donal1￿>. Unre$trkt￿ Re51rlcted 2022 2022 Total Totsl 2021 2022 Oonations 130.168 29.854 55,050 84.904 160,022 55,050 215,072 226.545 69.490 296,035 Donation in kind 130.168 Incomefrom yants: Totsl 2022 Totsl 2021 2022 2022 The Monday Charitable Trust The Leathersellers, Company Charitable Fund The Borrows Charitable Trust The Cuckoo Hill Trust The Charitable Qjmmittee ofThe Worshipful Comparv of Vintners PF Charitable Trust The Mercers, C¢mpany-The Charity of Sir ￿(hard Whittington The London Community Foundation-SEGRO 8uildin8 Societies Trust limited The Albert Hunt Trust Swre Charitsble Trust CFiASH JA Rose Trust 6,450 6.450 io,crf)o 5.000 1.000 s.oco 12,500 2,0 30.TrJO s.￿0 40.oc 5.orKI 7,5CX) 7,5fy) 16.063 5,000 74,278 93.781 S.OOD 5.000 15,000 7.500 25,000 20,000 23,860 2,CX)O S,CM)O 6,250 24.674 4,486 5,OC•) Homeless knnk National Lottery Communlty Fund Crisis East End CommunTty Found*ion East End Emergency Fund fAF The Drapers, Charitable Fund John Armitage Charitable Trust The Rank Foundation Sir Harold Hood's CharitableTfust French FIu8uenot Church ol London Charitable Trust Trust for London City Bridge Trust Co-op Grocefs. Charity The Edward Gostlin8 Foundation The Harameèd Trust 1,9(M) 25.( 25.0(h) 20.0(KI 5.0 12,5CQ so.o 12,5 50.IMI io,cKKJ LBN 7.978 7,978 24 Charity regis￿ed in ETrakind 0￿4 Woks 1147794 Comr¥xy limibd 6ygwFothfr 0807539 QARIIA5 ANCHOR I IOUSE CARITAS- ANCHOR HOUSE NOTESTO THE FINANCIAL STATEMENTS Icontlwedl FOR THE YEAR ENDED 31 MARCH 2022 The Maurice & Hilda Laing CharftsbleTnJst Fowler Smith & JonesTrust The Julia and Hans Rau5ing Trust S¢rewfix The Fishmongers. CompanVs CharitableTrust All Churches TrLtst Ltd London CityAirport Morrisons Foundation Taylor Wimpey White Oak Charltsble frust Worshipful Compafty of Fan Makers Other 5.000 4,000 200,(KIO s.000 15,C(JO 19,800 3.ts)0 io.Tr)o s,￿0 I,oJo 3,650 5.450 Is.0 6,OlXJ 6.5 6.5 I.￿)0 The Sisters of The Holy Cross CharitableTrurt The Charitable Committee of The Vintnerfs cl￿panY Arnold Clark Community Fund Ecdesiastical Insurance 20,OCKI s.o¢J) Loc¥J 20,Tr)0 lo.c￿0 1.000 i.(KJo 5,IXIO 25,000 19,999 390.000 11.077 3.000 2.892 2,000 4.975 4.388 600 Neighb¢)urly- 8&Q Coco Joelle Foundation Portal Trust 25,OC 19,999 3￿.[x￿) 11.077 3.oc 2.892 2,OC 4.975 4.388 GLA DWP Flexible Support Fund Grant Charles S French cr Clifford Chance Foundation Yorkshire Building Society Assura / Cheshire Community Foundation Aspers Casino Good Causes Fund Marsh CharitableTrust The Poor Fund of the Worshipful Company of Fan Makers The Lyon Famity Charitable Trust Chadotte Marshall 3.750 3,750 60.(QO 123.250 664.759 788,C(19 737.792 Total donatlons• grants and lepdes 253.418 749,663 I.CKJ3,081 1.033.827 25 u￿rty rtraisknd ifi EABlyDd WoL*s 1147794 CompcDy Imniknd by guryartoe 0807539 (.ARITA5 ANCHOR HOUSE CARITAS- ANCHOR HOUSE NOTES TO THE FINANCIALSTATEMEP¥IS Icontlnued) FOR THE YEAR ENDED 31 MARCH 2022 2b In¢offle from tharitable aLtswt Anchor House: Total 2022 Totsl 2021 Accommodation Housing Related Support Rough Sleepers Initiative Sundry income Laundry income Room hire 2,378,701 811.142 31LCO) 54.358 4.365 2.378.701 811.142 311.OC(I 54,358 4,365 2.440.406 613.848 311,IXJO 6,154 3.889 6,085 3.381,382 3.559.566 3,559.566 l income in 2021 was unrestricted. 3 Soclal hou51ng lettkng5 2021 Rent re￿1¥able excluding setyice thar8es Service char8e receivable Grants ané other income L052.813 L325.888 1.775,243 4.153,944 1.080.124 1.360.282 1.926.254 4,366,660 Turnoverfrom social housin8 lettin8s Operatkng eMpeniNture •)n Soclal hw5kn8 letikn 4,479,525 3,556,122 Operating su￿lUS on sotial h¢x￿Ing lÈttings Financin8 Costs Surplus on so¢ial hou51n8 letti 1325.5811 67,782 1393363 810.538 61.191 749J47 Void losses 404.472 158.894 InC￿aSe in void loss in year 2022 was dueto planned and unplanned maintenance works on r*￿￿ents, rooms at Anchor House. 4 Cost of raisini fuThds 2021 Staff costs Other direct eosts Support costs 134,495 32.461 54.438 221.394 126,113 30,159 59,252 215.524 S Charftsble activltles Other (Xrect Total 2022 Totsl 2021 Costs Staff Support Costs Anthor H<)use Integrated Ro￿h Sleeping Supptyi Serbi¢es IIRSSSI 1,645.875 1.321,256 556,750 3,523,881 3,443.189 512.720 2,158,595 116,720 1,437,976 172,592 729,342 802,032 4,325.913 3.443.189 26 CFThity regrs*red Eryhnd a￿1 Wdos 1147794 by 0807539 CARITAS ANCHOR FIOUSE CARttAS- ANCHOR HOUSE NOTES TO THE FINANCIALSTATEMENTS Icontlnuedl FOR THE YEAR ENDED 31 MARCH 2022 6 Support ¢osts alkCat￿Tr to artiirytle5 Total T¢)tal 2021 FunttralO Anth¢y House 202Z Staff Costs stsff training and recruitrnent Offlce expenses Legal and prole55ional fees Other costs 33.397 1.876 15.352 2,379 1.434 54.438 341,556 19.192 157.013 24,327 14,662 556,750 105.882 5.950 48,674 7,S41 4.545 172.592 480.835 27.018 221,039 34,247 20.641 783,780 468,067 28,912 148,059 28,281 5,385 678,705 Support costs have been allocated to acti74ates based on number of people employed within each activity- 7 Governance Costs 2021 Staff costs 53,396 16.078 .091 218 82.783 $0.873 17.883 Auditors remuneration - Audit fee Legal and professional fees Trustee expen5e5 142 68.898 The Trustees received no ￿MUneratIon(2021= £Nill. Expenses relating to travel and trainin8 wer• reimbursed or paid to third parties on behalf of Trustees. These amounted to £21812021= £1421. 8 Staff costs 2012 2021 Salaries 1,962.811 190.S86 116.610 5.809 498,109 2.773.925 1.626.111 157.720 95.627 Soual security costs Pension Terminalion payment Casual workers 347,341 2.226.799 The average number of staff in the year was 6712021.621 eKeludin8 casual workers. Calculated on a full-time eqU￿valent basis, the flgure was 6S12021..601. The numbèr of Èmployees wth annual taxable èmoluménts paid more than £60.OCX) per annum was: 202Z 2021 £60.LIJO- £69.999 £70.000- £79,999 £90,0110-£100,999 The total remuneration of key management personnel forthe year was £302.23212021- £284,111). 27 Cwty ry1s*ied in Engbld ond Wole$ 1147794 limttod by guofohtoè 0807539 C.ARITAS ANCHOR HOUSE CARITAS- ANCHOR HOUSE NOTES TO THE FINANOALSTATEMENTS IcontThiedl FOR THE YEAR END£D 31 MARCH 2022 8 Staff ¢osts l¢onilnued) Induded in the above were payments to the CW Execut¥ve. bein8 the highest paid employee. amountin8 to £88.034 for the year excluding pen&on contribution 12021.. £86.5251. The Chief Executive 15 a member of the Chari￿$ defined contribution pension scheme. The charity contributes 7.5% of the salary to the Chief Executive's pension. and the Chlef Executive contribute5 the same percentsge of her salary. 9 Tan8lbl• fix•d a5s•ts land and BU￿dI Motor Vehkks Furniture & Equipment Asset Under Construction Total Cost At l April 2021 Adthtions Transfer 11.K6,154 25.645 1.198.963 12,930,762 18.061 199.495 310.458 566.692 632,271 11,198,963) 12,550,402 968,374 At 31 March 2022 ,061 5(Y3,953 13,518,776 Depre¢la￿n At l April 2021 Charge in the year At 31 Mar¢h 2022 L911.135 248.718 2.159.853 18.061 95.866 88,710 184,576 2.025.062 337.428 2,362.490 18,061 Net book value A5 at 31 March 2022 ioAao.909 325377 11,156,286 A5 at 31 March 2021 9A55.019 103h29 566,692 10.525.340 Investments The Charfty owns 100% share caFYtal ofthe subsidiary tompany. Caritas Anthor House. Leaming & Development Academy Ltd, which remained dormant ID the year. li Stoc*s 2021 Consumables 5.323 5.323 6.149 6.149 Debt￿5 2022 2021 Trade debtors 279,279 127.395 57.98S 52.438 517,(P37 137,695 Prepayments VAT due Other debtors 2.SCI) 58,046 242,244 28 r8gi4wed in ErMJW 1147794 C¢hYfwry limthl by guoFon*e 0807539 (."ARIIAS .4k4CHOR CARITAS- ANCHOR HOUSE NOTESTO THE FINANCIALSTATEMENIS { 30 CTrrtY,"ty reyi5tsi￿ *h Erybnd Wales 1147794 Cunpony lim¢*d by guNor* 0807539 I.ARIIAS IINCHOR HOUSE CARITAS- ANCHOR HOUSE KITES TO THE FINANCIAL STATEMENTS {wntlnued) FOR THE YEAR ENDED 31 MARCH 2022 17 Restrlrted Funds At31 Marth 2021 At31 March 2022 In￿rne Expendltur• Transfers Personal Development Education, Trainin8 and employment Movè-on 101.425 101,586 64.923 55.050 412.701 1101.4251 1101,5861 144.9231 137.69)) 117.3601 1436,5321 20.OC>) Oonation in kind Capital fund Complex Needs Covid 4L831 18,OlXI 15.cthl 13.9781 15.OCiII 299.6021 1453.8921 3.978 Xickstart TrainSn8 41,831 749,663 38.00) The transfer5 represent the capitsl expenditure in the year. Personal Development This fund supports our vulnefable residents with high levels of isolation. low 5elf-esteem and complex challenges on their ourne back to inde ndent livin throu h structured ersonal devel ment and social actNtties. Mo¥e.on This fund supports WT tenanry sustainability service, allowin8 US to assist single homes ￿Idents to access independent accommodation. Educatlon Tralnlng and Emp14)yment Thls fund supports our residènts with education. training and employment opportunitie5. Learnin8 new skills helps our residents to improve their self*steem and in experienee so that they can re*nter thè workforcè. Donatlort in Kind This fund represents the value of fumiture and other items and serv4ces donated by various organisations during the year. Capltal Fund This is a restricted fund to be used on CAH'S wider capital pro8ramme indudin8 the Hope Streei project. Assessment Hub This fund supports the Assessment Hub's residents. n personal needs includin8 food and clothin& and their move on pragrammes. Covld Gra￿$ and donatknns Thi5 fund re resents the amount of covid 8rants and donations received durin8 the year to meet covid related c05tS. Klck5tart Tralnlng This fund represents the amount of 8rants received during the year towards kickstart tralning scheme. At31 March 2021 At l Aprll 2020 Ihtome Expendlture Transfers Personal Development Education. Trainin8 and employment Food Coordination Donation in kind Home and hope appeal Assessment Hub Covid-19 6rants 21,850 91.028 1,0 69.4 73,703 122,6291 191.0281 11,ocoi IS6,3581 113,1321 141.4WI 121,1021 1488.5161 1722.0331 113.1321 9.528 16.102 41.831 488.516 750.587 26.409 41.831 31 Chority ragis*red in ET¥JhTrd ond Wde$ 1147794 Comwny lirnthd gvotonte• 0807539 CARIIAS ,ANCHOR kiOUSE CARITAS- ANCHOR HOUSE NOTES TO THE FINANCIALSTATEMEIITS l¢ohtlnuedl FOR THE YEAR ENDED 31 MARCH 2022 18 Anafysi50f net a55ets between l￿d5 Totsl 2021 Fund$ 31 March a122 xed assets IL156.286 1.050.468 11ty).6131 12,086.2251 11,156,286 2,315,OC 1842.6941 12.086.225) 10,542.367 Current assets 1226,532 1742,0811 38,000 Current liatilitie5 Lon¥ term liablities Total net assets 484.451 10,019,916 38,OlXJ Unrestrictèd Dèsignated Rèstrittèd Funds Funds Funds Totsl 2020 31 March 2021 Fixed a55ets 10.525.340 1.323.136 1.247.807 1385.5851 160.8791 1104.9761 12.08Lfy)51 832.575 9.631.263 10.525.340 2,612,774 1446.4641 12.185.981) 10.505,669 Current a55ets 41.831 Current liabilitie5 Long tem) liabilities Total net asse 41,831 19 Capltal commltment 2022 2021 Building wryks (the Hope Street projertl Fire Doors 629.523 194.410 57.360 251.770 Rebranding and new website 629.523 32 Cknrty regis￿ed in Eryhnd ond Wohi 1147794 kwtor¢rtt 0807539 i.AklTAS t4NCHOR P,OUSE CARITAS. ANCHOR HOUSE rK)TESTO THE FINANCIALSTATEMENTS Icontinuedl FOR ThE YEAR ENDED 31 MARCH 2022 20 Leaslng commltments The Charity's future minimum operatlng lease payments are as follows= 2022 2021 Within one year Between one and five years 12.022 19.690 31.712 12.022 31.712 43.733 The tdephone system and photo copief are held undèr operating lèase arrangèmènts. 21. DETAILED STATEMENT OF FINANCIALAcllviTIES FOR ThE YEAR ENDED 31 MARCH 2021 UnrestrTrttd Re5trirted funds funds 2021 Total Funds 2021 2021 Notes INCOME FROM Donations, 8rants and le8acies Charitsble activity: Anthor House 283.240 750.587 L033,827 2b 3,381,382 3,381,382 Other tradin8 activities- Rent receivable 21,4 21,406 TOTAL INCOME 3,686.028 750.587 4,436,615 EXPENDITURE ON Cost of raising funds Charitable attiwty= Anthor House 215.524 215,524 2.72L156 722,033 3.443.189 TOTAL EXPENDITURE 2.936.680 722,033 3,658,713 t Income 749,348 28,554 777,902 Transfers between funds 13,132 113.1321 NET MOVEMENT IN FUNOS 762.480 15,422 777,902 TOTAL FUNDS BROUGHT FORWARD 9.701.358 26.409 9.727.767 TOTAL FUNDS CARRIED FORWARD 10.463.838 41,831 10.505,669 33 Chjrty rryisknred in Englund ond WoLrys 1147794 Crryny lim& by guciant49 0807539 CARITAS ANCHOR HOUSE bomelessness TRUSTEES ANNUAL REPORT AND FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Company Reglstratlon Number: 08075329 (England and Walès) Ae8lstered Charlty Number: 1147794 RSH Reglstratlon 4841 CARITAS ANCHOR HOUSE CONTENTS Pale Trustees. Annual Report 1-13 Independent Audltorfs Report 14-16 statement of Flnandal Artlvltles 17 Balance Sheet Statement ofcash Aows 19-20 Notes to the Flnanclal Statements 21-33 CARITAS ANCHOR HOUSE CARITAS- ANCHOR HOUSE TRUSTEES. ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2022 The Trustees present their report and financial statements for the year endÈd 31 March 2022. The report, which constitutes a trustees, ￿port for the purposes of ¢harity le8islation and a directors, report for the purposes of company legislation, has been prepared in accordance wrth Part Vlll of the Charities Act 2011. The financlal statements have been prepared in accordance the accounting policies set out In note l and comply wlth the ¢haritsble Company's Memorandum and Artides of Association, applicable laws, the Companies Act 2006 and the requirements of the Statement of Recommended Pra¢bce"AccountinB and Reportin8 by Charities" SORP 2015 IFRS 1021 (Second bulletin effectivejanuary 20191 and the requirements of the Statement of Recommended Practice ISORPI Accounting by Registered Social Housin8 Providers. RefererKe and AAlmlnbtratfve inf¢)miatlon Constltutlon The charitable company 15 governed by its Memorandum and Articles of Association. The members of the Board of Trustees are the companws director$ and trustees of the Charity. The Trustees who held Offi￿ durin8 the year under review and up to the date of this report are as follows Trustees Mr Simon Hall Ms Emma Buttefworth Rev Desmond Patrick Connors Ms Laura Curtls Mr Patrick Davis Mrs Erner Delaney Mrs Caesar Gordon Mr Andrew Haines Mrs Cate Kirkbride Mr Graeme McLean Mr Joseph Ogundermuren Mr Anil Sharma Mr Charles Abel Smith Mr Matthew Williams Chalr Apptynted 16July 2021 App(xnted 11 November 2021 Rttigned 311)ecember 2021 Rèsigned 30 May 2021 Resigned 31 December 2021 Appointed 8 May 2022 Appointed 30 September 2021 Resi8ned 22 April 2022 We have supported the operation of the following Sublommittees: l. Finance, Audit. Governance. and Risk Sub(ommlttee 3. Executive Sub-committee 5. Frontline servI￿s Quality Assurance and Impact Su Committee 2. People & Culture Sub-committee 4. Premises Management Sub-committee 6. Values SuKommittee Prlntlpal Address Carits5 Anchor House 81 Barking Road Canning Town London E16 4HB Auditor: Haysmacintyre LLP. 10 Queen Street Place, London, EC4R IAG Sollcitors: Bates Wells, 10 Queen Street Pla￿, London. EC4A 18E Bankers.. Barclays. UK 8ankln& I Churchill Place, London E14 5HP and Natwest. 1-11 The Broadway, London, E15 4DX Chority ryistèrtd in Engbnd ond Wal9¥ I IA7794 Cornp￿Y 11rni￿d byguoionke 0807539 CARITAS ANCHOR HOUSE CAR￿AS- ANCHOR HOUSE TRUSTEES, ANNUAL REPORT {contlnu¢dl FOR THE YEAR ENDED 31 MARCH 2022 About Us Carita5 Anchor House ICAHI is a homelessness charity. and tor nearly 60 year5 ha5 provided a safe place and support for people to rebuild their lives. We are based in the London Borough of Newham whKh has the hi8he5t leve15 of homdessnes5 per capita in the country. During the last year wè have reflected on our purpose and our value5 and alon85ide our team, our resldents and many other Stakeholders to our work, we have created a new rnission statement and a core set of values which will guide our work 80inÈ forward. r mlsslon is to build hope. enable lastln8 change arKI el￿ hcAnelessness for pe¢)ple in East London. Our value$ 8uide our interartions and decision-makin8 processes at all levels within the organisatlon. They are.. Compasslon- we care about people. value their wews and expenen¢es and putthem at the heart of all we do. In¢lusion- we celebrate diversity, promote inclusivity and respect. and thallenBe inequality. Growth- we 5UPPOrt people to breakthrO￿h barriers and fulfil their hopes and potential. Collaboratlon- we're strong£Y and can have a bigger impact when we work in partnerships and build alliances. Our servlce combine5the prov¥sion of a safe place to Ilve for vulnerable adults e￿erienC1￿ homelessness, with in-house delivery focusing on physical and mental health, complex health issues, education, employment, finanaal literacy and tenancy sustainment. Each per50n who walks throu8h our doors receives a full assessment of their needs and a bespoke programme of in-house and exiernal seThices created to best prepare that indiwdual for independent living. We are proud to xt as a be¥on of ho￿ the growin8 number of residents we are now able to supporL In the year ending 31st March 2022. we accommodated and supported 374 people, and helped 129 people to move on positively from our Servi￿$, leaving homelessness behind them. Ckne of our re￿dentS this year. Dulce, shared her story ¥Mth ¥Js. Just over o yeor ogo, I wos sleeping rotwh on the streets. tt wos on owfvl ond terrifvng timefor me. I remember muny timesfeoringformyownsufety. The￿ were n￿nY nwhts when I wouldh17ve to htidefrom people. I wu5 ushamed toshow myfuce at the time. I wu5 $0 scured thot I hod to sleep in the bushes in parks to hide. 50 many people would judge me. coll me nomes andshout horrible things at me. Luckily, I movedinto CoritosAn¢horHousesoonafterthis terribleexperience on thestreet5. 1 rememberrelief tis Istepped intomyroom. os Iknew that Iwouldbesafrthatevening. IhovenowstartedtonotKemyselfsmile which hadn'thoppened In so long. It s umt7zing what can hoppetr) if you ore in o soft ondpositive plocesurrounded bysmlleyfvces. Here at Coritos Anchor House, I've olw(Jys got someone to speak to when l umfeeltng down. My keyworker Tristun is o wonderful per5LM. Whenever l om unsure whut to do, he is there to guide me ond point n7e in the Tight direction. The people here hove helped me $0 much. I'llbe honest. Sometimes I stillAeel depressed. but now when ifeeldown I know l con go to my bol¢onyoutsAde my room, und Idon't hove to hide tn dongerousporks onymore. Istill get nightmores 0ndfl(Jsht￿¢k to my experience on the streets but they ore startirjg to become le5sfreouent. l um tuking things Slowly, but ¢we step ut o time l um getting better ond feeling more positive. I have been given everything I need here ot Caritos Anchor House. now Ifinollyfeel like l om in control., cl￿rty re9i5*red in En9W oThd Woles 1147794 C¢*Trpony limrt•d by gucYoTh*e 0807539 CARITAS ANCHOR HOUSE CARrrAS- ANCHOR HOUSE TRusfEES' ANNUAL REPORT Iconllnued) FOR THE YEAR ENDED 31 MARCH 2022 Structure, Go¥ernano & Management CAH is a reglstered charity and company limited by 8uarantee as well as a Registered Provider of Social Houslng. We are regulated by a number of bod￿$. including the Charity Commission. Companie5 House. the Fundralslng Regulator and the Regulator of Social Housin& In the prior year ended 31 March 2021, the Trustees completed a review of the Charivs compliance wlth both of the recently updated Charity Code of Governance and the National Housing Federation's Code of Governance. This review concluded that we are fundarnentally operating in line WTth both Codes. and has pr￿ided us with a helpful range of recommendations to further improve our approach around governance ￿lch we are now W0￿1ng to Smplement. Our Trustees meet on a quartedy basss to review the performance of the organisation and plan for the future. The professional bacKgrounds of the Trustees include finanual management, business plannin& charity management. social enterprise, human resources and diversity. law. risk managemènt, social Ca￿ and community involvement, marketing and investment banking. The day to day running of the Charity 15 delegated to the Chief Executive and 5trate8ic Management Team I'smfi. Our SMT is led by OUT Chief Executive. Amanda Dubarry. who joined us in March 2018 and has an eXtenS￿e background in the homelessness sector. She was joined by both John Lowery, Direttor of Frontline Serwces. and Siva Selliah. Finance Director. in 2018. both of whom come to us wth many years. experience in the housing and care sectors. In lune 2020 a fourth member of the senior team. Crai8 Hardaker, jThned a5 our Director of People, bringlng with hlm a strong background In the charity sertor. Key managèment remuneration is set by the Trustee5 by reference to the degree of seniority and responsibility of the P05L by benchmarking against similar roles in tharities of similar size and complexity and in the light of performance appraisal. Trustee recrultment, Inductlon and traini The support of our Trustees is vitally important in ensuring we deliver the best tx)ssible service to those in need, and in raising awareness and support for the essential and life thanging work that CAH provides. Between autumn 2021 and summer 2022. three new trustees joined our Board whbch enabled us to broaden our Board skillset. the divefsity of trustee membership and to meet identified Skills gaps. In addition. we entered into an Innovative new development programme. our Next Generation Trustee Programme. to help us to prepare a group of d￿er5e future trustees, working in partnership with the Housing Diversity Networ I new tru5tee5 are provided with a trustee irMluCti￿ pack arld induction pro￿$$, and are encoura8ed ènd supported to attend specialist trainlng relating to the roles and responsibilities of a charity trustee, including safeguarding. Oblertives & Actl¥tt5•5 Caritas Anchor House's objects contalned In ks Memorandum and Artides of Associatlon are "to further the general charitable works of the Roman Catholic Church by prwding services and facilities for the relief of poverty and sufferin& the advancement of education, the promotion of socialjustice and other charitable actswhich promotethe devèlopment of all individua15 and communities in need for the public benefit of people of all faiths and none." We provide supported accommodation to 229 people experiencing homelessness in the London Borough of Newham at any one tlme, and support them to move on and break the cycle of homelessness for good. We do this by= Providing a safe place. to make sure that people experiencin8 homelessne55 have somewhere safe to stay as they begin to rebuild their lives Cknity regis￿r￿9 in Engbnd ond Wole$ 1147794 Cornwny limthd by 0807539 CARITAS ANCHOR HOUSE CARITAS- ANCHOR HOUSE TRusfEES' ANNUAL REPORT {contlnued) FOR THE YEAR ENDEO ai MARCH 2022 Offerlng SUPPOrt- to encourage and enable p￿PIe tts build z betterfuture for themselves, th￿0￿h the provision of personalised support. educational and life skills opportunities Bullding resillence-to Ixjild networks of support. and empower people to navigate confldènce and be a proactive member of their community outside of arKI beyond lrfe at Caritss Anchor House. Our frontline teams WO￿ directty with residents during their time at Caritas Anchor House. Each resident, IS aSSl8ned a keyworker who will 8uide them throu8h their stay, and supports them to access a holistic service offefing relating to health and wellbein& education and employability. financial managemerrt and seojring and sustslnlng new tenancles. Residents can participate in trainin& workshops and artNities induding money mana8ementtrainin& En81ish as a Second Lan8uage, mindfulness sessions, counsellin& CV workshops and event5. Our goal for each resident is for them to move on from our services with the skills to navigate their next chapter5 Wlth nfidence and to sustain their accommodatiw and Independen￿ Ion8 term. Publlc benefh The Trustees confirmthat they have complied with the duty in Section 17 of the Charf(ie5 Act 2011 to have due regard to the CharityCommi5sion's general guidance on public benefit"Charrf(ies and Public Benefft" in the exerclse of thelr p¢)wers and responsibilities as detailed in the Articles of Assoclation and undef charfty law. Value for Money The Charlty is always consciou5 of the need to provide value for rn￿eY to ¢)ur users and stakeholders. As a wlstered provider of social housing with the Regulator of Social Houslng I'RSH'I. we are committed to delIVe￿ng value for monev and continuing to meet the RSH'S Value for Money Standard. Our rental and housing related support levels are set in consultation with London BoroLtgh of Newham. to ensure that they, as the principal commissloners of our seFvi¢es, feel that they are rereivin8 such value. We regularly review our performance and the way we work to continue developing the irnpact of 5ervice5 and using resources in the m05t effertive and efFicient way. Metric l- Reinvestmert% This metric looks at the investment in properties (existing stock as well as new supply) as a percentage of the value of total propertSes held. There ha5 been a new supply of 15 units added to Anchor House (Hope Street project). The percentage reflects investment in this project and work on exlsting properties Icapitalised maintenance c05ts1. Thè chariWs metri¢ for reinvestment for the year was 6.07%12021.. 0.29%) Metrfc 2- New supplydell¥ered % During the year the Charity has deltvered IS social housing units. Thls ￿p￿sents 9.68% of the total numberof bedspaces owned by the Charity at the er￿ of this financial year. INO units were delivered in the pre￿dIng financial yearl. Metrfc 3- Gearkn¥ % The Charlty's property. Anchor House. is owned freehold. The charity has two lon8term loans. one wlth Natwest. secu￿d against this property. and the other wrf(h Homeless Link. The balance outstanding at 31 March 2022 of £2.187K12021.. £2,262KI represents 10.78%12021=2.99%1 of Housing depreciated value owned by the Charity. Metrlc 4- EamlnBs Before InteresL Ta4 Dewedatlon. Amortlsatlon, Ma￿r Repalrs Included IEBITDA MRI) Interest Cover % The charity paid interest of £68K12021.. £61KI in the year in relat￿n to the loan finance ￿fer￿1 in metric 3. Interest 15 therefore covered-20%12021.'1804%1 by EBITDA MRI. Chority regi*rgJ in Er¥Jkind ond ￿185 1147794 limit*J by 9LKJron*O 0607539 CARITAS ANCHOR HOUSE CARITAS- At4CHOR HOUSE TRUSTEES. ANNUAL REPORT Icontlnued) FOR THE YEAR ENDED 31 MARCH 2022 The negative interest cover for thè year wa5 due to loss of rental income and increase In refvrbishment costs due to planned maintenance work on a number of units at Anchor House. Metrf¢ 5- Headllne houslng u•st p•r unlt The cost per unlt for the year was £19.58812021: £2S.4011. The cost reflects the avera8e c05t of housing and support servlces offered to our residents in the year. The support servi¢es vary from low to medlum, induding service5 to people sleepin8 rough and residents ￿th mLbltiple and complex need5. Mrtrl¢ 6- Operatlni Marwn {overalll The operating margin of the Charity as a whole for the year was-7.84%12021: 18.56%). The negatlve mar8in was due to loss of rental Income and increase in refurbishment costs due to planned MaIrtenan￿ work on a number of units at Anchor House. Metri¢ 7- ftetum on capltal employed IROCEI % Thls metric compares the operab.ng surplus to total assets less current liabilities. Forthe Charrty as whole this was-2.58% for the yèar12021= 6.17%). The negative ROCE was due to reawrt5 5tsted in metric 6. Fundralsln8 Our supporters are incredibly important to us, and we believe in maintaining the highest possible standards when fundraisinB. We are registered with the Fundraising Regulatorand are committed tothe Fundraising Promise and working in a waythat is compliant with the Code of Fundraising Practice. This report cover5 the requirements charities mustfollow as set out in the Charities Act 2016. We keep our fundraising poliry and Practices under remew and ensure that our fundraising meets the standards required in law and reflects best practice. so that our donors can give with confidence. With the On8￿n8 Covid-19 pandemic. fundraising throu8h in-ptrson events, schools and faith groups contlnued to be restricted and our focus remained on securing grants. individual donatlons and gifts in kind. We partitipated in the 818 Give Christmas Challenge 2021, whereby donations madè during the ortline campaign were match-funded. which raised a restricted fundinB of £31.715 to support residents to move on. We were also grateful to receive many gifts in kind durln8 theyear, in¢ludin8food, toiletrie5 and clothingfor our residents, and fumishings fortheir rooms. We also received £17,360 pro-bono project management assistance for our new accommodation units from LandAid. Despite the challengin8 environment from a fundraising perspertive, and the impart on our usual hjndraising activities due to the ongoing Covid-19 pandemic, we raised £l,(Kt3,081 income from 8rants and donations in the year. Ifs Important to us that everyone we interact with feels free from undue influence when they consider donating. We ensure our fvndraisers can recognise signs of potèntial vulnerability. so they can manage conversations and take action in the most appropriate wav. We acknowledge that people's circumstances ¢han8e, and we promise to respect and act on information shared if one of our supporters is in a vulnerable situation- we did not receive any such notifications in the financial year. We are also signed up to the Fundraising Preference SefvSce to enable individuals to opt out from receiving fundraising communications from us- we received zero ￿￿est5 from this servKe during the year. We promise that we will treat all complaints seriously. investigate them fvlly and ￿pOrt back transparently and appropriately. Our alm is always for our sUPPOrters to have a high-quality experience with us. and we are pleased that we did not receive any complaints about our fundraisin& marketing or related ¢ommunications- done by ourselves or any third partie5- in the year. We did not work with any professional fundra¢sers or commeroal participators, as defined by the Fundraising Regulator. Should this be somethin6 we do in the future. we will of course monitor the activities carried OLtt to ensure they meet the samè hiBh standards we expect of our own fvndrai5er5, and have any required agreements in place. ckn.ty rggist•rwl in Engbnd and Woles 1147794 Cornpjny limi￿ by guor¢Jnhw 0807539 CARITAS ANCHOR HOUSE CARITAS- ANCHOR HOUSE TRusfEES' ANNUAL REPORT lctyfflnuedl FOR THE YEAR ENDED 31 MARCH 2021 srpATEGIC REPORT Athlevements and Perforniance The context in which we work has becorre ever more that￿In8 over the la5tfew years. The housinB crisis continues to deepen with house prices and rents beyond the reach of many of those living locally, wages remain stagnant, and inflation has begun to 50ar leading to a c05t of INing crisis across the country which is hitting those on low incomes the hardest. In response to these rising needs, we are pleased to report that we started the year with 140 bed-spaces, and ended it with 229 bed-spa¢es, making Caritas Anthor House the largest provider of supported accommodation for people experienclng homelessne￿ in Newham. Our main site. Anchor House in C3nningTown. provides one ofthe largest hostel services In the Country. We now offer seven accommodation services.. Our Core service at Anchor House. providing 117 room5 and flats for th05e experienan8 homelessnes5 With low to medium level support needs Our Complex Needs service at Anchor H(￿se, pmwding 23 room5 for those who have been rough sleepin8 ar have high level support need5 Our Hope Street service at Anchor House. providin8 15 move on Thouses, for people who have been rough sleeping with low to medium support needs Our Direct Access Assessment Hub semce based in Upton Park for people who have been rough sleeping and are coming straight from the streets Our Women's Service in East Ham for women who have been rough sleeping and have hi8h support need5 Our Launchpad serwce in Beckton for men who have been rough sleeping and have medium to high support needs. Thi5 service runs alongside Olsr a¢¢ommodation at Bradymead in Beckton for people who have been rou8h 51eepin8 who have medium to hi8h sUPPOrt needs Our Move on Support Service. operatirvx from the C(yJrtney Hotel in Wanstead. supporting people who have been rough sleeping The growth in our services ha5 been a5 a result of ￿40 successful planTred developrnents during the year.. Our partnership with CGL and other local providers which began delNerin8 a range of Integrated Rough Sleeper Support Services on behalf of the London Borough of Newham in September 2021. The openin8 of our new Hope Street development of fifteen innovattve 'houses' for former rough 51eeper5 in our unused'Barn' warehouse space at Anthor House In addition to these new supported ac¢ommth4atit￿ services. we also created a Community Partherships team this vear which oversees our employment support to residents. ￿l￿ent engagemenL as well as volunteerln& and we have been delighted with the outcomes th￿ team has athieved.. Research shows that across the UK, an average of 7% of people living in sUPPQrted housing are In pald employment. At CAH. 68118.2%) were in paid employment in the year. In the year, we recorded 689 attendance5 atemployment and education sessions, a si8nifiont in¢rease of 274% on previous years, activities in this area. This improvement wa5 due to the lrftin8 of Cowd restrittion which enabled us to resume group meetings, in- person meètlng, and employing a new full-time Job Coach role to support our residents into employment Our Education, Training and Employment service providès a wide range of actr¥ities including ESOL IT. intenslve ETE (employment training antl education) sessions with our newjob Coach. We provided 248 attendances at Community Engagement sessions such as our Resident Sounding Board, the Newham Housin8 System w￿kShop. and the London's Mayoral Assembly 43 volunteers undertook almost I,(MXI volunteering hour51986.5 hours). Ckirty regi*d in ErKdbfid ond wo￿5 1147794 Qynrony gwranfee 0807539 CARITAS ANCHOR H(MSE CARITAS- ANCHOR HOUSE TRUSTEES. ANNUAL REPORT {contlnu•d) FOR THE YEAR ENDED 31 MARCH 2022 Our Trustees regularly re7Aew the pro8￿$ of the organisation, and the main objectives whlch were achieved durin8 this year to meet our lon8 term 5trate8y were- Despfte a very challefi8in8 economic backdrop and a global health crisis. we were able to maintairt our service levels to our stakeholders. We achieved a 93% room utilisation rats. hou4n8 and supporting 374 people across the year la 35% increase from the previous yearl. The number of new residents we were able to accommodate has increased due to our expansitsn from the InteBrated Rough Sleepers Support Service IIRSSSI as outlined on page 6, in the'Achievement and Perfom)ance' sectS0n. Twenty-five percent of our residents were rough sleeping before ¢omin8 to CAH, and we increased our capacity to accommodate people with No Flrfourse to Public FLsnd, who make up many of those who are living on the street$168 residents accommodated in the year. a 127% inuease frc*n the pwiousyearl. We are proud to have a had a significant impact in reducing local rough sleeping this year. Desplte the majofity of our beds being fijnded with a low support level SeThI￿ almost one third of the residents we supported in the year1168 people. 28%) had one or more ￿MpleX needs (issues wth substan￿ misuse. mental health. and physlcal health). We are delighted that we have enabled a great many people wth hwdher levels of need5 to access our services to help to transfomi their lrfe. We continued to strengthen ourworkwth residents. 5upporbng 129 of our re5identsto move on posltivelyfrom cwjr serrice during the year: 34 residents moved into their own homes 33 residents moved to our on-site flats 0 45 ￿SIdentS moved into short-term accommodations. and, 0 50 moved into medium•long term accommodation (such as supportedlsheltered hous1￿ Clearing House lets via St Mungo's). 68 residents had a job in the year, of which 34 residents gained new employment 91% of our residents sustained their tenancy up to 3 months after leavin8 the accommodation 81% of our residents sustained their tenancy for six months after leaving our services, demortstratlng an astonishing eight out of ten of our residents breakin8 their cyde of homele55riess with our support Despite the Challen￿'n& enwronment from a fundraising perspective, and the impact on our usual fundralsing artivities due to the ongoing Covid-19 pandemi¢, we raised £l,C(J3,081 income from grants and donations in the year. We are fortunate to have a verytalented. dedicated and professional team, and we are delighted that their work was recognised by wtnning both the Newham Business Awards 2021.. Ovic & Community Engagement award, and, the East London Community Heroes Awards 2021: Communtty Group of the Year. We were also finallsts In the UK HoLtsing Awards: Homelessness Project of the Year. In addition, we are extremely proud that our work as an employer was awarded both the Disability Confident Committed status by the DWP. and the Good Work Standard employer by the GLA. During the year we have also been active in supporbnB 5ettor campaigns calling for the government to.. protèct those with No Recourse to Public Funds INRPFI ensure that sleeping rough is no longer a legal ground to remove someone from the UK repeal the Vagrancy Act covirk19 For the second year Covid 19 affected our atttwties throughout this year. Our focus continued to be on keeping our people Ire5idents, employees, volunteers and visitors) safe in a publlc health emergency. Our communal spaces remained largely closed and our doors were shut to visitors and partners. Chority r¥Jistei8d in Erplond and Wolas 1147794 Compcry 11rn￿ by gwron*e 0807539 CARITA% ,ANCHO HOUSE CARITAS- ANCHOR HOUSE TRUStEES' ANNUAL REPORT l¢ontinued) FOR THE YEAR ENDED 31 MARCH 2022 on8side these measure5 we continued to distribute food for all of our residents Iwho usually selfn. evaluation. and control of 8nificant risks. Risk re8lSter and risk management reports Performance report5 Extemal audit reports Detailed finanoal bud8ets. management accounts and forecasts Pdioe5 and procedure5 for all areas- Safeguardin& Health & Safety. Human Resourte. Tinance & IT. These polices and procedure are reviewed by the Sub-committees and the Board on a re8ular basis. Established authorisation and appraisal procedure5 for new initiative5 and cgmmitments Regular reporting to the appropriate Sub-comrnittees and Board on key business objettivts. targets and outcomes. 12 Charity fegi5tered in OTh4 Woks 1147794 C¢ynpry Iimibd ￿ 9wJr(¥*e 0807539 CARITAS NCHOR HOUSE CARITA5. ANCHOA HOUSE TRUSTEES, ANNUAL REPORT (con￿￿￿ed FOR THE YEAR ENDED 31 MARCH 2022 The key a￿aS cover control. information rewtin8 SyStem5. monitoring and risk management. Control The Board of Trustees retsins responsibility for defined range of arèas covering 5trategi4 operational. and financial elements. The Board of Trust*s has put in place an or8anisational strurture whith dearly defines liftes of responsibility and delegation of authority. Informatlon reportln8 system Financial reportsn8 Systems include regular reviews of overall financial businèss plans. prèparation ol detailed annul bud8ets and the production ol detailed rnonthly management accounts. These are prepared by the Senior Management Team and are considered and approved by the Sub-Cc¥nmittee and the Board. The Senior Man4ement Team and the Board of Trustees also review performance regularly to assess pro8ress towards the achievement of key business objectwe. tsrgets and outrome5. Monltorlng A prO￿sS of regular management rrbonitoring on control issues provide5 assurance to Senior Management Team and Board of Trustees. This indudes a iigorous process of ensuri￿ that ¢orrettive Jtti¢ns are taken in relation to any significant tontrol issue5. k M•na8ern•nt The charity has a comprehensive risk mana8ement strate8y which identifies risks facin8 the Charity, risk managèment responsibilities, and action required to mitigate these risks. and monitoring arian8ement5. The Tru5tees' Annual Report which incorporates the stra￿lC reportwas approved and signed on behalf of the Board on 7 September 2022 Simon Hall-chair & Trustee 13 Cknrty rryis*xed in Eryljnd orKI Wales 1147794 Compuny l*mi*d by 0807539 CARIIAS ANCHOR HOUSE INDEPENDENT AUDITOYS REPORT TO THE MEMBER5 OF CARtrAS-ANCHOR HOUSE Oplnlon We have audited the linantial statsments Of Caritss- Anth¢x House for the year ende(131 M￿h 2022 which COM￿1$e Statement of Financial Activitie5, Balance sheeL Statement of Cash Rows and notestothe finanaal staterrents, indudin8 a summary of significant accounting poliae5. The finanoal reportingframeworkthat has been applied in theirpreparntion Is appllcable law and United Kingdom Accountin8 Standards, Indudin8 Finanoal Reportin8 Standard 102 The Finontiol Reporting Stond¢7rd opplio71Jle in the UK ond Republic of Ireland Iuniied Klnedom Generally Accepted Accoufttsng Practice). In our oplniori. the flnancial 5tatements'. 8ive a trueand lairwew of the state of the tha￿￿￿e¢0MPanrf$ affairs as at31 March 2022 and ofthe charitable companls net movement in funds. induding the inttsme and expenditure. forthe year then ended.. have been propedy prepared in accordzntr wth United ￿ngdOM Generally Accepted Accounting Practice,. and have been prepared in accordance *ith the ￿qUirementS of the Companies Act 20C6. the Housing and Regeneration Aet 2LMI8 arnd the Atcounting Direction for Private Re8iStered Prnwders of Sooal Housin8 from January 2019. Basls for oplnlon We eondueted our audit in accordance with Intematrona standards on Auditin8 IUKI IISAS IUKII and applicable law. Our responsibilitie5 under those standards are further described in the Auditorfs responsibilities for the audit of the finanoal statements section of our report. We are independent of the Charity in attordance with the ethical re4uirements that are relevant to our audit of the linanaal statements in the UK. indudin8the FRCS Ethical Standard. and we have fulfilled our other ethical respon5ibilitie5 in accordance with these requirernents. We believe that the audit evldence we have obtained is Sufficient and appropriate to provide a basis lor our opinion. Concluslons rekntln8to Oni foncem In auditing the financial statements. we have conduded that the trusterf use of the g￿n8 concern basis of accounting in the preparation of the finanoal statements is appropriate. Based on the work we have perfornied. we have not identified any material uncertainties relatin8 to events or conditions that, indiwdually or cdlectively. may cast %8nificant tloubt on the tharita￿e company's ability to continue as a 8oin8 concem for a period of at least twdve months from when the finantial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to 80ir8 con￿rn a￿ described in the rdevant sections of this ￿POrt. Olher Ib)formathn The Trustees are respon5ilAe forthe other information. The othersnformation comprises the informatson included in the Trusteès. Annual Report Our opinion on the finanaal 5taternents does not cover the other information and, except to the extent otherwise expliciyy stated in our reporL we do not exp￿5 any form of assurance cOnclu￿on thereon. In connection with our audit of the finanoal ststements, our respon9kn1ity is to read the other information and, in doing so, consider wh￿her the other infornlation is materially incon&stent with the finantial statements Or our knowledge obtained in the audit or othenwi5e appears to be materially misstated. If we identify such material inconsistenoes or apparent rnalerial mi55tatements. we are required to determinewhetherthere is a material misstatement In the fTnancial statements or a material misstatement of the other information. If. based on the work wè havè performed. we conclude that there 15 a material mi55taternent of this Qther information. we are required tt> report that fact. We have nothing to report in this regard. Oplnlons on other matters westrlbed bythè Companlts Art 2(rf16 In our opinion. based on the work undeftaken in the course of the audlL' the infomation wven in the Trusteeg Annual Report Iwhith indudes the stratwt ￿port and the direttors, report prepared forthe purposes of company lawl for the finantial year for whith the finantsal statements are prepared is tonsi5tent the firtantial ststements- and 14 Chryty reg5S￿ed in EndoTrd ond Wdes 1147794 Cryny Iiffl*th4 by 9Jf#on￿ 0807539 IARIIAS ANCHOR HOUSE INDEPENDENT AUDITORS REPORTTOTHE MEMBERS OF CARITAS-ANCHOR HOUSE Icontinuedl the strategi¢ report and the dirertor5' report induded within the Trustees. Annual Report have been prepared in accordance with applicable legal ￿quIrements. Matters on whlch we arè rtqulred to report by exception In the light of the knowled8e and understsndin8 of the charitable company and its environment obtairntd in thè course of the audit, we have not identrfied matèrial misstatements in the Trustees. Annual Report Iwhich incorporates the strategit report and the directorf report). We have nothing to rèport in respèct of the followin8 matters in relation to which the Companies Act 2(K16 requires us to report to you if, in our opinion: adequate 4ccounting records have not been kept by the tharitsble company,. or the charitable company financial siatements are not in agreement with thè %counting re￿rdS and returns,. or rtain di5cIosuTe5 of trustees. remuneration specified by law a￿ not made.. or we have not receivetl all the tnfomiation and explanations we require for our audit. Responsibiitiesof trustees forthe flnanclal statements As explained more fulty in the tru5tees' responybilitie5 Statement set out on page 12, the Trustees (who are also the directors of the charitable company forthe purposes of company lawl are responsible for the preparation ol the finanaal statemenis and for bein8 sat15fied that they 8ive a true and fair ¥iew. and for such internal control as the trustees determine is necessary to enable the preparation of finanaal statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements. the Trustees are responsible for assessing the charitable companvs abllity to continue as a 80ing concern, disclosin8. as applicable. mattèrs related to going concern and usingthe 8oin8 concern basis ol accounting unles5 the Trustees either intend to liquidate the charr(able company or to cease operations, or have no realistic altematwe but to do so. Audltorfs responslbllltles lor the audlt of the finandal statemènts Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstaternenL whether due to fraud or error. and tg I￿￿e an auditorfs report that includes our opinion. Reasonable assurance is a hi8h level of assurance. but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstaiement when it exists. Misstatements tan arise from fraud or errtsr and are con￿dered material if. individually or in the aggregate. they could reayjnably be expected to influence the economic decisions Of users tsken on the basis of these finanoal statements. Irre8ularitie5. including fraud. are instsnce5 of non-compliance wth laws and regulations. We desi8n procedures in Irne with our responsibilities, outlined above, to detect material misstatements in respect of irre8ularities, ineluding fraud. The extent to which our procedures are capable of detecting irregularitie5. in¢ludingfraud is detailed btlow. Based on our understandin8 of the d)aritable company and the environment in which it operate5. we identified that the principal risks of non-cornplian￿ with laws and regulations related to social hou5in& safeguardin& fundraisin& employment and health and safety regulations and charity law. and we considered the extent to which non-compliance might have a material effert on the financial ststements. We a150 considered those laws and regulations that have a direct impact on the preparation of the financial statements such as include the Statement of Recornmended Practice for registered Social Housing Providers 2￿8. Companies Act 2Cl￿ and the Charities Act 2011. and considered other fartors such as income tax, payroll tax and sales tsx. We evaluated managemenys incentive5 and opportunitie5 for fraudulent manipulation of the flnanclal statements lincludin8 the risk of override of controls). Audit procedures perfomed by the engagement team induded.. 15 Owty ffégisknd In ETr9iond ofid wo￿3 11477P4 Ctyhptsny limitod by 9u(¥onte6 0807539 CARITAS ANCHOR HOUSE INDEPENDENT AUD￿OR.5 REPORTTOTHE MEMBER5 OF CARITAS- ANCHOR HOUSE Itontinuedl - Inspectin8 correspondence with regulators and tsx a￿hOrities.. - Distussions with management induding con&deration of known orsuspected instances of non-compliance with laws and regulation and fraud: Evaluatin8 mana8ement's controls deg8ned to pr￿ent and detect Ir￿ular1tses.' Identifying and testing journals, in particular joumal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions- and - Challenging assumptions and judgements made by mana8ement in thar cr￿cal accounting estimates Because of the Inherent limitations of an audiL there is a risk that we wll not detect Il Ir￿ular1ties, inclydin8 those leadin8 to a material misstatement In the flnancial statements or nOn-comF￿￿ance with regulation. This risk increases the more that tompliance with a law or regulation is removed from the events antl transactions reflected in the financial statements, as we will be le55 likdy to become aware of instance5 of non-cornplian￿. The risk is a150 greater regarding irie8ularities occurring due to fraud rather than error. as fraud snv¢Yves intentional concealmenL for8ery. collusk*n, omission or misrepresentation. Afurtherdescription of our reSpOn￿l￿11t1es for the audit of the ffinanoal statements rs located on the Financial Reporting Council's website at.. www.frc.o .uk auditorsres onsibilities. This description forms part of our auditorfs report. Use of our report This report is made soldy to the tharitrdblè companvs members. as a body. in attordance with Chaptèr 3 01 Part 16 of the Companie5 Act 21XJ6. Our audit w¢yk has been undertaken so that we m¢Bht state to the charitable company'5 members those matters we are requtred ¢0 srate lo them in an Auditols report and for no other purpose. To the fullest extent permitted by law, we do noi accept or assume respon%bility to anyone other than the charitable company and the thariiable tompany's members as a body, fty auditwort lorthis repory or for the oplnlonswe have fomied. Lee Stokes (Senior Statutory Audtorl For and on behalf of Haysmacintyre LLP. StatutoryAuditors 10 Queen Street Place London EC4R IAG 16 Charty regi5knd in EnBkiTh4 OTh4 Wa￿$ 1147794 Cornpyy I￿l￿d 0807539 IARITAS ANCHOR OUSE CARITAS- ANCHOR HOUSE STATEMÉNT OF FINANaALAcnvmES IINCORPOKATING THE INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 MARCH 2022 Unrestrlrted fvnds Ilestflrted funds Total Funds Total Funds 21)22 2022 202Z 2021 Noies INCOME FROM Donation5. 8rants and le8aoes Charitable activity.. Anthor H￿se 2a 253.418 749,663 I,C(13,081 1,033.827 2b 3.559.566 3.559.566 3.381.382 Other trad1ng activities.. Rent receivable 2L358 21,3S8 21,4( TOTAL INCOME 3.834.342 749,663 4.584,Tr)5 4,436,615 EXPENDITURE ON Cost of raising fLbnds Charitable artivity= Anchor House 22L394 221,394 215,524 4.026.311 299.602 4,325,913 3,443,189 TOTAL EXPENDITURE 4.247.705 299.602 4,547.307 3.658.713 Net lexpendlturelllncome 1413,3631 405,061 36,698 777,9)2 Transfers between funds 453,892 1453,8921 NET MOVEMENT IN FUNDS 40.529 13.8311 36.698 777.902 TOTAL FUN05 BROUGHT FORWARD 10.463.838 41,831 10,505.669 9,727.767 TOTAL FUNDS CARRIED FORWARD 10.504,367 10.542,367 10,505,669 The notes on pages 21 to 33 fomi part ofthese financial statements. All tran5artSons are derNed from continuing activities. All recognisèd 8ains and Ios5e5 are included in the Ststement of Financial Acbvitie& Detai15 of comparative figures are given in note 21. 17 Cknty rnyis*T￿ *h EnghAd tsrd I1477P4 Cornpany lunited by 9urMr1￿ 0807539 RITA l*LI10.. IC.'USE C•JIITAS. AN￿￿ 11 AS AT 3A MAROI Illll FIXED ASSETS IL1$6.206 10325JIO ILA56.286 10,525.340 sio¢ks li 149 241244 2364J¥l 2.612.774 rs sh •t b•nk •TrKI on thos 517.lJ97 1315.C U¢EfMTfXIS.' tsll* t)ThÈ ye 1446,4(Al L47LX6 2.16&310 alEOITOftS'. f*ll￿￿ul Iftqrtyw 14 11016.2251 10512.%? 12.185.981) 10.50S,669 REPAESÉP4YEO U*ve5trtrted Furyjs 15 16 17 484,453 10.019,915 8325 9.631263 . De4n•led 10,505,669 The fIna￿lI1 Staten￿lS wefe •pprrynd •¥J •Alw¥ed lor thè atwd alTrusteos on 7 Sooeff*•r 2021 and We￿ si￿1 on its l)tl¥tl br. Hall. Tn411q• The no¢e5 W8e5 21 to 33 fryrn pwt t•wthl sl•l*ffthtL Ccthwny ￿￿5￿￿tI￿ numlw.. IW75329 IEr*nd Wth51 Cwty Mg4*•d In fryJknd I14V94 lry wyDtthQ907539 LARITAS ANCHOR I IOUSE CARITAS-ANCHOR HOUSE STATEMENTOF CASH FLOWS ASAT 31 MARCH 2022 CASII FLOWSTA TEMENr 2022 2021 Cash flows from operatln8 att￿lI1e$. Net ¢oshprovlded byoperntlng artfvlt 450.260 1,229,723 sh fiows from Investlni actl¥ltles: Dlvldends, interest and rents from investments Purchase of property. plant and equipment Netcosh (usedin) Nnvestiffj octtvttle5 21.358 1968,3741 21.4C6 161,9101 1947.0161 140.5041 Cash ftows from finan¢1￿ arti¥iths: New borrowing drawn down Repayment of borrowiryd 120.000 150,2071 175.0451 Netwshpmvldedby Infvonclnq ortlvftles 69,793 chan￿ ln cash and cash equlvalents In the reportlnl year Cash and cash equlvalents at the beginning of the report1￿ ye•r Cash and cash equlvalents at the end of the reportingy¢ar 1571.8011 2.364.381 1.792.580 1,259,012 1.105,369 2,364,381 Re(oncili¢7tKn ol net Inco•ne to rtet cash from op*rntM urtmtles 2022 2021 Nèt Intttmè lor the reportlni year las per the 5tstement of financial aC￿ltIes) 36,698 777,902 AdSustments for: Depreciation char8es Dividends, interest and rents from investments Increasellincreasel in stocks Iln¢reasellde¢rease in debtors Increase in Creditors 337.428 293.590 121,3581 121,4061 826 13431 1274,8531 62,249 371.519 117,731 450,260 1,229,723 Nei Cash pro¥lded by opèratknK actl¥ttles Anal￿5 of cosh ond cosh 2022 2021 Cash in hand 1,792.580 2.364,381 1,792.580 2,364.381 Total cash and casth equlvaknts 19 Cknrty rwdis*fd in E￿91)rtd Ohd wo￿1 1147794 CLYhP)Ay limi￿d by gv(xontso 0807539 CARITAS ANCHOR CARITAS- ANCHOR HOUSE STATEMENT OF CASH FLOWS ASAT 31 MARCH 2022 {contlnuedl Movementln netdebt 31 March 2022 IAprfl 2021 Cashfiows changes Cash and cash equivalents Loans due within one year Loans due after one year 2.364.381 175.9031 12.185.981) 102.497 1571,8011 75.045 1,792,580 I1￿,614) 12.086,2251 1394.2591 199,7561 99.756 1496.756 20 i•giStsrwJ irt Etybhd ONI wo￿5 11477P4 Cryiny h.mikd by gWrOn￿ 0807539 CARITAS ANC140R 140USE CARITAS- ANCHOR HOUSE NOTESTO THE FINANCIALSTATEMENTS FOR ThE YEAR ENDED 31 MARCH 2022 ACCOUNllNG POLICIES lal Basls of Accountlng The finantial statemènts have been prepared in accordan￿ with Accountin8 and Aeportin8 by (harities.. Statement of Recommended Practice applicable to charities preparing their accounts in aceordante with the Financial Reporting Standard applicable in the UK and Republit of Ireland IFRS1021 (Charities SORP IFRS1021. Statement of Recommended Practi￿ for re8lStered Social Housing Providers 21XJ8. the Financial Reportin8 Standard applicable in the UK and Republic of Ireland IFRS1021 and the Companies Att 2006. Caritss- Anchor House meets the definition of a public benefit entity under FRS 102. Assets and Liabilities arè inityally rec¢gnised at hist¢*rical cost or tran5actiOn value unle5$ Qthen1ri5e ststed in the relevant accountlng polScy notelsl. Ib) GOI￿ Concern Havin8 reviewed the fundin8 facilitie5 available to the Charity tO8ether with future projected cash flows coverfng a 12 month period from the approyal of the finantial staternents. the trustèès havè an expectation that the Charity has adequate resources to continue itsartNlties fortheforeseeable future and consider that there were no material uncertainties over the Chariws financial viability. Attordin8ly. the financial statements have beèn prepared on a Boing concem basis. {cl CrStlcal a¢countlnB ludlements and kèysources of estimation uncertainty In the application of the accountin8 policies. trustee5 are required to rnake jud8emenL estimate5. and assumptions about the carryin8 value of assets and liabilities that a￿ not readily appareni from other sources. The estimatès and undedying assumption5 are based on historital experien¢e and otherfactors that are considered to be relevanL Actual results may differ from these estimates. The estimate5 and Under￿Tr8 assumptions are re￿eWed on an ongoin8 ba515. Reviytsn5 to accounting estimates are reeognised in the period in which the estimate is revised if the re￿￿on affertsonlythat period. or in the period of the revision and future periods if the revision affetted current and future period5. Judgements made by thè trustees. in the application of these attounting polities that havè significant effett on the financial statements and estimates wth a significant risk of material adjustment in the next year are deemed to be in relation to the depreoation rates of t3n8ible fixed assets and are dixu5sed below. In the view of the trustees, no assumptions contemin8 the future or estimatiort of uncertairtty affectin8 assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts In the next finandal year. Idl Flnanclal Instrumènts Basic financial instruments are inltially reco8nised at transaction value and subsequently measured at amortised cost with the exception of investments which are held at fair value. Financial assets held at mortised cost comprise cash at bank and in hand. togetherwith trade and otherdebtors. A5pecific provisi¢*n is made for debts for whith retoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used asworkin8 capitsl. Finanoal liabilities held at amortised cost comprise all u*ditors except soual security and other taxes and prOVi￿On le) Income Income frorr Anchor House represents receipts from residential accommi>dation. meals and shop sale5. Donations and legacies a￿ atcounted for when received by the Charity. Other income is actounted for on an accruals basis as far as it Is prudent to do so. Revenue grants are credited to the statement of financial activities as recelved, unless they are to be spent in a lateryear, when they are deferred. 21 c￿rty rtyi*•d in Engk)nd ond Wok$ 1147794 Cunpuny limit•d by gvtyorteè 080753 CARIIAS ANCI.IOR HOUSE CARITAS- ANCHOR HOUSE NOTES TO THE FINANCIALSTATEMENTS AS AT 31 MARCH 2022 ACCOUNTING POUCIES Itontlnuedl ifj Expend1￿ Expenditure is retognised on an actruals basis. Governante Costs comprise the costs of running the Charity. induding strategic plann¢ng for its future d￿elopment internal and external audit legal and professional advice and all costs of complyin8 wth consDtutional and ststutory requirements, such as the costs of Trvsteg meetings and of p￿paring Statutory finanoa statements and sats"sfyltvd publlc accountablllty. Tan8lble fijred assèts The property is freehold. being situated at Anchor House. 81 Barking Road. London E16 4HB. and is included at C05t. less depreaation. The land ts tftduded at cost and is not depreciated. Assets under the course of construction are not depreuated until thework has been completed and the asset brou8ht into use. Oepretiation is tal¢ulated to writt down thÈ ¢ost less estimated regdual value of all tangible fixed assets other than freehold land over thwr estimated econonwc lives. Using cornponent C05ting prinoWe5 freehold property is divided into Components whith are depreci*ed over the followng years.. Building strutture Windows. bathrooms and floori￿% Heating and electricity systems Kitthen Lift 60 years IS years 15 years to 30years, as appropriate 20 year5 30 years In the pwous year the freehdd property was depwated at 2.(KN on a straight-line bags. Component accounting was introduced from 151 of April 2019. I PCS and laptops regardless of th*r values and other tan￿ble fixed assets exceedin8 £I.1X￿ are stated at cost net of depreciation. Depretiation is talculated at the follLwing annual rates.. Fixtures. fittin8s and equipment Motorvehldes - I￿33% straight line, as appropriate - 25% straight line Ihl In¥estmeThts Investments a￿ stated at thar middle market values ruling at the balance sheet date. The realised and unrealiseé gains and losses on investment5 are calculated b35ed on the openin8 market values and are accounted for within the Statement of Financial ActiwtFes. Income arising from these investments is a¢rwnted for when it 15 recwvable. Sio¢ks Stocks are shown at lower of cost and net realisaue value after makj.ng due allowance for obsolete and ￿0W moMn8 Items. ui Debto Trade and other debtors are reco8nised at the set￿ement amount due after any trade discount offered. Prepayment5 are valued at the amoLbnt prepaid net of any trade discounts due. Ikl C45h at bank and In hand Cash at bank and cash in hand Includes cash and short tem hiehly Ilqtsid Investments. Crtd6tors and prnvislons Creditors and prowi&ons a￿ recognised Whe￿ the Ch￿ty has a present obl¥gation ￿SuItIng from a past event that will prOba￿V result in the transler of funds to a third party and the amount due to settle the obligation can be mea5vred or e5tirnated Teliably. Creditors and prow￿0￿5 are normally recognised at th*r settlement amount after allowng for any trade discounts due. 22 C￿ty vegis*red in Endond ord Wd*s 1147794 lifflrf￿ bYgucAon￿9 0807539 (.'ARITAS ANCHOR IqOUSE CARITAS- ANCHOR HOUSE NOTESTO THE FINANCIALSTATEMENTS AS AT 31 MARCH 2022 (ml Des18nated funds The Trustees may set aside amounts of unrestrirted fvnd5. at their discretion. for speufic future purposes. Such funds are shown within unrestricted funds as designated fvnds. Where the trustees decide that designated funds are no longer required for the purposes specified. these are ￿leaSed from designated funds. {nl Restrlrted lunds The restricted funds a￿ monies raised for, and theiruse restritted to. a specifTc purpose or donations subje to othèr donor-irnp05ed conditions. Transfers are made to ￿n￿$tritte￿ funds where amounts raised for specific capital projetts are spent. lol Taxatlon As a registered Charity. Caritas - Anthor H¢X￿ benefits from rates relief and Is generally exempt from taxation on its income applied for charitable purposes. but not from Value Added Tax. Irrecoverable Value Added Tax is included in the c05t of those items to which it relates. 23 Cknrty re9151gr•d in Engbnd ¢Thd Wo195 1147794 c(￿P)nY limited by gvtyothe 0807539 LARifA ,ANCHOR HOUSE CARITAS. ANCHOR HOUSE NOTES TO THE FINANCIALSTATEMENTS FOR TH£ YEAR ENDED 31 MARCH 2022 2a In¢om• from don*ionsand 8ranlk' Income from donal1￿>. Unre$trkt￿ Re51rlcted 2022 2022 Total Totsl 2021 2022 Oonations 130.168 29.854 55,050 84.904 160,022 55,050 215,072 226.545 69.490 296,035 Donation in kind 130.168 Incomefrom yants: Totsl 2022 Totsl 2021 2022 2022 The Monday Charitable Trust The Leathersellers, Company Charitable Fund The Borrows Charitable Trust The Cuckoo Hill Trust The Charitable Qjmmittee ofThe Worshipful Comparv of Vintners PF Charitable Trust The Mercers, C¢mpany-The Charity of Sir ￿(hard Whittington The London Community Foundation-SEGRO 8uildin8 Societies Trust limited The Albert Hunt Trust Swre Charitsble Trust CFiASH JA Rose Trust 6,450 6.450 io,crf)o 5.000 1.000 s.oco 12,500 2,0 30.TrJO s.￿0 40.oc 5.orKI 7,5CX) 7,5fy) 16.063 5,000 74,278 93.781 S.OOD 5.000 15,000 7.500 25,000 20,000 23,860 2,CX)O S,CM)O 6,250 24.674 4,486 5,OC•) Homeless knnk National Lottery Communlty Fund Crisis East End CommunTty Found*ion East End Emergency Fund fAF The Drapers, Charitable Fund John Armitage Charitable Trust The Rank Foundation Sir Harold Hood's CharitableTfust French FIu8uenot Church ol London Charitable Trust Trust for London City Bridge Trust Co-op Grocefs. Charity The Edward Gostlin8 Foundation The Harameèd Trust 1,9(M) 25.( 25.0(h) 20.0(KI 5.0 12,5CQ so.o 12,5 50.IMI io,cKKJ LBN 7.978 7,978 24 Charity regis￿ed in ETrakind 0￿4 Woks 1147794 Comr¥xy limibd 6ygwFothfr 0807539 QARIIA5 ANCHOR I IOUSE CARITAS- ANCHOR HOUSE NOTESTO THE FINANCIAL STATEMENTS Icontlwedl FOR THE YEAR ENDED 31 MARCH 2022 The Maurice & Hilda Laing CharftsbleTnJst Fowler Smith & JonesTrust The Julia and Hans Rau5ing Trust S¢rewfix The Fishmongers. CompanVs CharitableTrust All Churches TrLtst Ltd London CityAirport Morrisons Foundation Taylor Wimpey White Oak Charltsble frust Worshipful Compafty of Fan Makers Other 5.000 4,000 200,(KIO s.000 15,C(JO 19,800 3.ts)0 io.Tr)o s,￿0 I,oJo 3,650 5.450 Is.0 6,OlXJ 6.5 6.5 I.￿)0 The Sisters of The Holy Cross CharitableTrurt The Charitable Committee of The Vintnerfs cl￿panY Arnold Clark Community Fund Ecdesiastical Insurance 20,OCKI s.o¢J) Loc¥J 20,Tr)0 lo.c￿0 1.000 i.(KJo 5,IXIO 25,000 19,999 390.000 11.077 3.000 2.892 2,000 4.975 4.388 600 Neighb¢)urly- 8&Q Coco Joelle Foundation Portal Trust 25,OC 19,999 3￿.[x￿) 11.077 3.oc 2.892 2,OC 4.975 4.388 GLA DWP Flexible Support Fund Grant Charles S French cr Clifford Chance Foundation Yorkshire Building Society Assura / Cheshire Community Foundation Aspers Casino Good Causes Fund Marsh CharitableTrust The Poor Fund of the Worshipful Company of Fan Makers The Lyon Famity Charitable Trust Chadotte Marshall 3.750 3,750 60.(QO 123.250 664.759 788,C(19 737.792 Total donatlons• grants and lepdes 253.418 749,663 I.CKJ3,081 1.033.827 25 u￿rty rtraisknd ifi EABlyDd WoL*s 1147794 CompcDy Imniknd by guryartoe 0807539 (.ARITA5 ANCHOR HOUSE CARITAS- ANCHOR HOUSE NOTES TO THE FINANCIALSTATEMEP¥IS Icontlnued) FOR THE YEAR ENDED 31 MARCH 2022 2b In¢offle from tharitable aLtswt Anchor House: Total 2022 Totsl 2021 Accommodation Housing Related Support Rough Sleepers Initiative Sundry income Laundry income Room hire 2,378,701 811.142 31LCO) 54.358 4.365 2.378.701 811.142 311.OC(I 54,358 4,365 2.440.406 613.848 311,IXJO 6,154 3.889 6,085 3.381,382 3.559.566 3,559.566 l income in 2021 was unrestricted. 3 Soclal hou51ng lettkng5 2021 Rent re￿1¥able excluding setyice thar8es Service char8e receivable Grants ané other income L052.813 L325.888 1.775,243 4.153,944 1.080.124 1.360.282 1.926.254 4,366,660 Turnoverfrom social housin8 lettin8s Operatkng eMpeniNture •)n Soclal hw5kn8 letikn 4,479,525 3,556,122 Operating su￿lUS on sotial h¢x￿Ing lÈttings Financin8 Costs Surplus on so¢ial hou51n8 letti 1325.5811 67,782 1393363 810.538 61.191 749J47 Void losses 404.472 158.894 InC￿aSe in void loss in year 2022 was dueto planned and unplanned maintenance works on r*￿￿ents, rooms at Anchor House. 4 Cost of raisini fuThds 2021 Staff costs Other direct eosts Support costs 134,495 32.461 54.438 221.394 126,113 30,159 59,252 215.524 S Charftsble activltles Other (Xrect Total 2022 Totsl 2021 Costs Staff Support Costs Anthor H<)use Integrated Ro￿h Sleeping Supptyi Serbi¢es IIRSSSI 1,645.875 1.321,256 556,750 3,523,881 3,443.189 512.720 2,158,595 116,720 1,437,976 172,592 729,342 802,032 4,325.913 3.443.189 26 CFThity regrs*red Eryhnd a￿1 Wdos 1147794 by 0807539 CARITAS ANCHOR FIOUSE CARttAS- ANCHOR HOUSE NOTES TO THE FINANCIALSTATEMENTS Icontlnuedl FOR THE YEAR ENDED 31 MARCH 2022 6 Support ¢osts alkCat￿Tr to artiirytle5 Total T¢)tal 2021 FunttralO Anth¢y House 202Z Staff Costs stsff training and recruitrnent Offlce expenses Legal and prole55ional fees Other costs 33.397 1.876 15.352 2,379 1.434 54.438 341,556 19.192 157.013 24,327 14,662 556,750 105.882 5.950 48,674 7,S41 4.545 172.592 480.835 27.018 221,039 34,247 20.641 783,780 468,067 28,912 148,059 28,281 5,385 678,705 Support costs have been allocated to acti74ates based on number of people employed within each activity- 7 Governance Costs 2021 Staff costs 53,396 16.078 .091 218 82.783 $0.873 17.883 Auditors remuneration - Audit fee Legal and professional fees Trustee expen5e5 142 68.898 The Trustees received no ￿MUneratIon(2021= £Nill. Expenses relating to travel and trainin8 wer• reimbursed or paid to third parties on behalf of Trustees. These amounted to £21812021= £1421. 8 Staff costs 2012 2021 Salaries 1,962.811 190.S86 116.610 5.809 498,109 2.773.925 1.626.111 157.720 95.627 Soual security costs Pension Terminalion payment Casual workers 347,341 2.226.799 The average number of staff in the year was 6712021.621 eKeludin8 casual workers. Calculated on a full-time eqU￿valent basis, the flgure was 6S12021..601. The numbèr of Èmployees wth annual taxable èmoluménts paid more than £60.OCX) per annum was: 202Z 2021 £60.LIJO- £69.999 £70.000- £79,999 £90,0110-£100,999 The total remuneration of key management personnel forthe year was £302.23212021- £284,111). 27 Cwty ry1s*ied in Engbld ond Wole$ 1147794 limttod by guofohtoè 0807539 C.ARITAS ANCHOR HOUSE CARITAS- ANCHOR HOUSE NOTES TO THE FINANOALSTATEMENTS IcontThiedl FOR THE YEAR END£D 31 MARCH 2022 8 Staff ¢osts l¢onilnued) Induded in the above were payments to the CW Execut¥ve. bein8 the highest paid employee. amountin8 to £88.034 for the year excluding pen&on contribution 12021.. £86.5251. The Chief Executive 15 a member of the Chari￿$ defined contribution pension scheme. The charity contributes 7.5% of the salary to the Chief Executive's pension. and the Chlef Executive contribute5 the same percentsge of her salary. 9 Tan8lbl• fix•d a5s•ts land and BU￿dI Motor Vehkks Furniture & Equipment Asset Under Construction Total Cost At l April 2021 Adthtions Transfer 11.K6,154 25.645 1.198.963 12,930,762 18.061 199.495 310.458 566.692 632,271 11,198,963) 12,550,402 968,374 At 31 March 2022 ,061 5(Y3,953 13,518,776 Depre¢la￿n At l April 2021 Charge in the year At 31 Mar¢h 2022 L911.135 248.718 2.159.853 18.061 95.866 88,710 184,576 2.025.062 337.428 2,362.490 18,061 Net book value A5 at 31 March 2022 ioAao.909 325377 11,156,286 A5 at 31 March 2021 9A55.019 103h29 566,692 10.525.340 Investments The Charfty owns 100% share caFYtal ofthe subsidiary tompany. Caritas Anthor House. Leaming & Development Academy Ltd, which remained dormant ID the year. li Stoc*s 2021 Consumables 5.323 5.323 6.149 6.149 Debt￿5 2022 2021 Trade debtors 279,279 127.395 57.98S 52.438 517,(P37 137,695 Prepayments VAT due Other debtors 2.SCI) 58,046 242,244 28 r8gi4wed in ErMJW 1147794 C¢hYfwry limthl by guoFon*e 0807539 (."ARIIAS .4k4CHOR CARITAS- ANCHOR HOUSE NOTESTO THE FINANCIALSTATEMENIS { 30 CTrrtY,"ty reyi5tsi￿ *h Erybnd Wales 1147794 Cunpony lim¢*d by guNor* 0807539 I.ARIIAS IINCHOR HOUSE CARITAS- ANCHOR HOUSE KITES TO THE FINANCIAL STATEMENTS {wntlnued) FOR THE YEAR ENDED 31 MARCH 2022 17 Restrlrted Funds At31 Marth 2021 At31 March 2022 In￿rne Expendltur• Transfers Personal Development Education, Trainin8 and employment Movè-on 101.425 101,586 64.923 55.050 412.701 1101.4251 1101,5861 144.9231 137.69)) 117.3601 1436,5321 20.OC>) Oonation in kind Capital fund Complex Needs Covid 4L831 18,OlXI 15.cthl 13.9781 15.OCiII 299.6021 1453.8921 3.978 Xickstart TrainSn8 41,831 749,663 38.00) The transfer5 represent the capitsl expenditure in the year. Personal Development This fund supports our vulnefable residents with high levels of isolation. low 5elf-esteem and complex challenges on their ourne back to inde ndent livin throu h structured ersonal devel ment and social actNtties. Mo¥e.on This fund supports WT tenanry sustainability service, allowin8 US to assist single homes ￿Idents to access independent accommodation. Educatlon Tralnlng and Emp14)yment Thls fund supports our residènts with education. training and employment opportunitie5. Learnin8 new skills helps our residents to improve their self*steem and in experienee so that they can re*nter thè workforcè. Donatlort in Kind This fund represents the value of fumiture and other items and serv4ces donated by various organisations during the year. Capltal Fund This is a restricted fund to be used on CAH'S wider capital pro8ramme indudin8 the Hope Streei project. Assessment Hub This fund supports the Assessment Hub's residents. n personal needs includin8 food and clothin& and their move on pragrammes. Covld Gra￿$ and donatknns Thi5 fund re resents the amount of covid 8rants and donations received durin8 the year to meet covid related c05tS. Klck5tart Tralnlng This fund represents the amount of 8rants received during the year towards kickstart tralning scheme. At31 March 2021 At l Aprll 2020 Ihtome Expendlture Transfers Personal Development Education. Trainin8 and employment Food Coordination Donation in kind Home and hope appeal Assessment Hub Covid-19 6rants 21,850 91.028 1,0 69.4 73,703 122,6291 191.0281 11,ocoi IS6,3581 113,1321 141.4WI 121,1021 1488.5161 1722.0331 113.1321 9.528 16.102 41.831 488.516 750.587 26.409 41.831 31 Chority ragis*red in ET¥JhTrd ond Wde$ 1147794 Comwny lirnthd gvotonte• 0807539 CARIIAS ,ANCHOR kiOUSE CARITAS- ANCHOR HOUSE NOTES TO THE FINANCIALSTATEMEIITS l¢ohtlnuedl FOR THE YEAR ENDED 31 MARCH 2022 18 Anafysi50f net a55ets between l￿d5 Totsl 2021 Fund$ 31 March a122 xed assets IL156.286 1.050.468 11ty).6131 12,086.2251 11,156,286 2,315,OC 1842.6941 12.086.225) 10,542.367 Current assets 1226,532 1742,0811 38,000 Current liatilitie5 Lon¥ term liablities Total net assets 484.451 10,019,916 38,OlXJ Unrestrictèd Dèsignated Rèstrittèd Funds Funds Funds Totsl 2020 31 March 2021 Fixed a55ets 10.525.340 1.323.136 1.247.807 1385.5851 160.8791 1104.9761 12.08Lfy)51 832.575 9.631.263 10.525.340 2,612,774 1446.4641 12.185.981) 10.505,669 Current a55ets 41.831 Current liabilitie5 Long tem) liabilities Total net asse 41,831 19 Capltal commltment 2022 2021 Building wryks (the Hope Street projertl Fire Doors 629.523 194.410 57.360 251.770 Rebranding and new website 629.523 32 Cknrty regis￿ed in Eryhnd ond Wohi 1147794 kwtor¢rtt 0807539 i.AklTAS t4NCHOR P,OUSE CARITAS. ANCHOR HOUSE rK)TESTO THE FINANCIALSTATEMENTS Icontinuedl FOR ThE YEAR ENDED 31 MARCH 2022 20 Leaslng commltments The Charity's future minimum operatlng lease payments are as follows= 2022 2021 Within one year Between one and five years 12.022 19.690 31.712 12.022 31.712 43.733 The tdephone system and photo copief are held undèr operating lèase arrangèmènts. 21. DETAILED STATEMENT OF FINANCIALAcllviTIES FOR ThE YEAR ENDED 31 MARCH 2021 UnrestrTrttd Re5trirted funds funds 2021 Total Funds 2021 2021 Notes INCOME FROM Donations, 8rants and le8acies Charitsble activity: Anthor House 283.240 750.587 L033,827 2b 3,381,382 3,381,382 Other tradin8 activities- Rent receivable 21,4 21,406 TOTAL INCOME 3,686.028 750.587 4,436,615 EXPENDITURE ON Cost of raising funds Charitable attiwty= Anthor House 215.524 215,524 2.72L156 722,033 3.443.189 TOTAL EXPENDITURE 2.936.680 722,033 3,658,713 t Income 749,348 28,554 777,902 Transfers between funds 13,132 113.1321 NET MOVEMENT IN FUNOS 762.480 15,422 777,902 TOTAL FUNDS BROUGHT FORWARD 9.701.358 26.409 9.727.767 TOTAL FUNDS CARRIED FORWARD 10.463.838 41,831 10.505,669 33 Chjrty rryisknred in Englund ond WoLrys 1147794 Crryny lim& by guciant49 0807539 to6UY7U Caritas – Anchor House Audit Findings Report **For the Year Ended 31 March 2022** Partner: Lee Stokes; lstokes@haysmacintyre.com Manager: Stephen Fisher; sfisher@haysmacintyre.com ## **Caritas – Anchor House – Audit Findings Report** | **Year ended 31 MARCH 2022** |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 ................................................................................................................................................................... 6| |5.|Emerging issues ............................................................................................................................................................................ 7| **Caritas – Anchor House – Audit Findings Report** | **Year ended 31 MARCH 2022** ## **1. INTRODUCTION AND EXECUTIVE SUMMARY** This report summarises our key findings in connection with the audit of the financial statements of Caritas – Anchor House (“CAH”) for the year ended 31 March 2022. ## **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. Our audit approach is a risk-based approach founded on us gaining a thorough understanding of the entity and its business in order to allow us to identify the risks of material misstatement within the financial statements. To do this, we consider both the risk inherent in the financial statements themselves and the control environment in which the entity operates. We then use this assessment to develop an effective and efficient approach to the audit. ## **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 on the financial statements. **Haysmacintyre LLP** September 2022 1 **Caritas – Anchor House – Audit Findings Report** | **Year ended 31 MARCH 2022** ## **2. SIGNIFICANT AUDIT RISKS, AND OTHER FOCUS AREAS IDENTIFIED DURING AUDIT PLANNING** We set out below the significant audit risks and where applicable, other key areas of focus for our audit identified at the planning stage and the conclusions of our audit work: |||| |---|---|---| |**Significant Audit risk/focus area**|**How we addressed this**|**Commentary**| |||| |||| |**Presumed risk in revenue recognition**
Under ISA 240 there is a presumed risk that
revenue may be misstated due to improper
revenue recognition. We are required to consider
and respond to the risks of improper revenue
recognition.
However, this presumption may be rebutted and in
your case, we have concluded that it was
appropriate to do so as set out in our Audit
Planning letter. Audit testing was therefore
focussed on the risk of error.|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.| |||| 2 **Caritas – Anchor House – Audit Findings Report** | **Year ended 31 MARCH 2022** ## **3. ACCOUNTING AND AUDIT MATTERS** ## **3.1 Qualitative aspects of accounting practices and financial reporting** ## **i. Matters noted during the audit** ## Gas accrual At the end of the prior year a provision for unbilled charges of £45,678 arising between July 2017 and March 2020 was retained on the basis that at 31 March 2021 management still considered it more likely than not the payment would be demanded despite no bills being received. The gas supplier was changed in 2020-21 and, given the time elapsed, management have now considered it appropriate to release the provision. Whilst the old supplier is still legally entitled to raise a bill, it now appears improbable that this this will occur. Therefore for from an accounting perspective, the release of the provision is appropriate, ## Recoverability of St Mark’s Community Centre Debtor The sales ledger continues to include a balance of £30,048 owed by St Mark’s arising from expenditure incurred on behalf of St Mark’s prior to 31 March 2019, and this amount continues to be fully provided against hence there is a net debtor of £nil. £20,000 related to management charges was received in the prior yearended 31 March 2021 but we understand from your trustee meeting minutes that no further meetings or engagement with St Mark’s are expected. Therefore the £nil position appear correct. If you do not envisage that any further recovery action will be taken then it would be appropriate to write off the debt fully and release the provision in 2022-3 with £nil overall effect on the result. ## Rental debtors Rental debtors of £89k are disclosed net of a provision of £38k which covers 100% of all former residents’ arrears and 25% of all current tenants. This approach has been consistently applied and appears reasonable. 3 **Caritas – Anchor House – Audit Findings Report** | **Year ended 31 MARCH 2022** ## **3.2 Accounting and audit matters** ## **i. Summary of adjusted and unadjusted misstatements** No unadjusted misstatements were noted in the course of the audit other than clearly trivial items. ## **ii. 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. ## **iii. Other matter** ## Financial irregularity Management have brought to our attention that excess hours have been paid to a sub-contractor resulting in a financial loss of £11,059 of which the main contractor has agreed to meet 50%. Whilst the amount is monetarily immaterial to the financial statements, the circumstances underlying the irregularity have warranted an investigation by management. We understand that you will be reporting the position to the Charity Commission, and we will require sight of your report in due course. 4 ## **Caritas – Anchor House – Audit Findings Report** | **Year ended 31 MARCH 2022** ## **4. DETAILED CONTROL POINTS** During the course of our audit we identified the following 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 following framework to assist the Trustees in assessing their impact. |**Rating**|**Rating type**|**Characteristics of rating type **| |---|---|---| |**Significant**|These findings are considered to be significant to the
management of risk in the business. The finding represents
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
multiple 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.| 5 ## **Caritas – Anchor House – Audit Findings Report** | **Year ended 31 MARCH 2022** 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: ## **Current year** |**Issue:**|**Equals System balance**|||**Controlpoint rating: **|**Limited**| |---|---|---|---|---|---| |**Observation/ Risk**||**Our comments &proposals**|**Management response**||| |CAH now uses the Equals system of prepaid charge
cards. At the year-end the general ledger showed a
balance held on the Equals account of £980.
The Equals account is accessible online but by the time
the audit was conducted in July it was not possible to
review the balance at 31 March retrospectively.||Whilst
the
year-end
amount
and
annual
expenditure (£26k) are immaterial, it would be
good practice to maintain a record of the balance
at key dates.
We**recommend**that at screen shot is taken at 31
March in future.|We were not aware that we will not be able to get the
balance on Equals account retrospectively. We will
make sure that we get the balance on 31 March in
future||| ## **Prior years** There are no unresolved points brought forward from earlier years. 6 ## **Caritas – Anchor House – Audit Findings Report** | **Year ended 31 MARCH 2022** ## **5. EMERGING ISSUES** **Charity reporting and governance matters Charities Act 2022** On 24 February 2022, the Charities Bill received Royal Assent and became the Charities Act 2022 (the Act). The Act makes amendments to the Charities Act 2011 (the 2011 Act) in a number of specific areas, largely in response to the recent Law Commission review of charity legislation and with the overarching objective of making life simpler for charity trustees, as well as harmonising certain procedures, such as making amendments to a charity’s objects, across the various different corporate structures within which charities operate. The key changes are set out below and will be brought into effect via secondary legislation in due course. - 1) **Permanent Endowment** – Under the 2011 Act, if charity trustees need to expend permanent endowment funds in order to advance the purpose for which the fund was originally given, typically because the income that the fund’s investments generate is insufficient to support meaningful activity, there are two different mechanisms depending on whether the value of the fund exceeds £10k and the value of the income that it generates exceeds £1k per annum. Where funds exceed both thresholds, Charity Commission consent is required for capital to be expended. When implemented, the 2022 Act will simultaneously increase the capital threshold to £25k and remove the income threshold. The expectation is that this will widen Trustees’ ability to expend capital by resolution alone where they consider this to be necessary to carry out the purpose of permanent endowment funds more effectively. However, it will mean that larger funds with income below the £1k threshold will require consent where previously they did not. - 2) **Borrowing from permanent endowment.** The Government has accepted that charities should have a power to borrow from the charity’s permanent endowment. The power will allow the charity to borrow up to 25% of the permanent endowment, with Commission approval, 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. - 3) **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. - 4) **Fundraising appeals** – The Act simplifies the requirements around restricted donations for fundraising appeals that have failed either because they did not raise sufficient funds to fulfil the purpose (“initial failure”) or which have surplus funds after fulfilling the purpose (“subsequent failure”). An obvious example for Schools would be a fundraising appeal for a capital project. Subject to certain limitations, where a fundraising appeal has failed, the Trustees will be able to repurpose donations provided that the new purpose is sufficiently close to the original purpose of the appeal, without needing to obtain permission from the donors first. 7 ## **Caritas – Anchor House – Audit Findings Report** | **Year ended 31 MARCH 2022** ## **Charity reporting and governance matters** Other changes cover matters such as changing charities purposes and governing documents; appointment and remuneration of Trustees; charity mergers. Because the Act is an amending act, the form and content of charity financial reporting will continue to be governed by the Charities Act 2011. ## **Charity Commission Inquiry into the collapse of Kids Company** The Charity Commission has concluded its Inquiry into the circumstances surrounding the August 2015 collapse of Kids Company and its report was published in February 2022. The Inquiry was opened in August 2015 but was paused while the Charity went through an involuntary insolvency process and to avoid prejudicing the outcome of a High Court trial to determine whether the then Trustees should be disqualified from acting as company directors. The High Court issued its judgment on 12 February 2021, with the determination that the Trustees should not be disqualified from acting as company directors. The scope of the Charity Commission’s Inquiry was considerably wider than the matter decided by the High Court and can be read in full here: https://www.gov.uk/government/publications/charity-inquiry-keeping-kids-company/charity-inquiry-keeping-kids-company. The Commission’s key findings were that: 1. Kids Company was operating a high-risk, demand-led model which prioritised growth and delivery of services to beneficiaries in the short term over building reserves and resilience for the longer term. As a result, when there was a shock which had a negative impact on the charity’s fundraising, in this case unfounded allegations of abuse of beneficiaries, the charity’s reserves were insufficient to allow the charity to avoid an insolvent windingup. Had the charity maintained a higher level of reserves, it may have had sufficient resources to continue after the allegations were determined to be unfounded, or at least to have allowed for a more orderly winding-up and potential transfer of services to another provider, thus avoiding any detriment to its beneficiaries. 2. There was a lack of documentation relating to funding decisions made by the Board. This may, in part, have been due to the inappropriate destruction of records which followed the charity’s closure but the Commission notes that it is not clear whether certain records were destroyed or never existed in the first place. The maintenance of proper records is essential to support accountability and to ensure that the Trustees can demonstrate that they have made decisions appropriately. It should be noted that at no point has it been alleged that the Trustees were involved in the destruction of records. 3. The charity had repeatedly failed to make payments to creditors on time, in particular amounts due to HMRC and to self-employed workers. The Commission found that this alone represented mismanagement on the part of the Trustees. 4. There were some skill gaps on the Board and the Commission particularly noted that the presence of a Trustee who had experience of running a large and complex charitable organisation, as Kids Company had grown to be, would have been invaluable. 8 ## **Caritas – Anchor House – Audit Findings Report** | **Year ended 31 MARCH 2022** ## **Charity reporting and governance matters** 5. Many of the Trustees had been in place for a long period of time, and greater rotation of the Trustee body and specific roles within it, would have meant that it would be more likely to constructively challenge management’s established working practices and the charity’s operating model. Whilst the circumstances of Kids Company’s operating model and eventual collapse were unique, the Commission has identified a number of learning points which are of potential relevance to all charities. Most notably: 1. Charity boards should ensure checks and balances, and the right blend of skills and knowledge, are in place to avoid power imbalances. Boards should consider setting formal terms of office for Trustees and have a diversity policy to ensure a broad range of experience in the Trustees. Both of these are key recommendations of the Charity Governance Code. 2. Charities should identify and balance the risks associated with their operating model with the benefits of that model, and the benefits should be evidenced. 3. Charities should undertake financial planning and maintain a reserves policy, and ensure that decisions are properly and transparently documented. Where charities are earning income from service provision, they should be giving due consideration to covering and element of core costs as well as the direct costs of provision. The Commission emphasises that the building of reserves would have been in the interests of Kids Company’s beneficiaries because it would have allowed for a more orderly transition of services to a new provided in the event of the charity’s closure. 4. Charities should ensure that their infrastructure, governance and resources keep pace with their growth. Kids Company had grown rapidly in the ten years prior to its collapse but it was not clear that the Trustee board or the charity’s governance arrangements had changed to reflect the changing scale and complexity of the charity’s activities. ## **Charity Commission consultation on change to the Annual Return** The Charity Commission has launched a consultation on proposed changes to the Annual Return, which would apply for financial years commencing on or after 1 January 2023. The proposals include the removal of some redundant questions and the simplification of others, as well as adding new questions, as the Commission seeks to ensure that the Annual Return continues to gather relevant data. The consultation closes on 1 September 2022 and can be found here: https://www.gov.uk/government/consultations/charity-commission-revisions-to-the-annual-return-2023-25 ## **UK Corporation tax** **Corporation Tax self-assessment** As a reminder, every charity is required to perform a self-assessment each year to determine whether it is liable to pay any corporation tax. This is regardless of whether HMRC have issued a formal notice to file a corporation tax return (usually issued periodically for charities registered with HMRC). A return should therefore be prepared and filed with HMRC if either: 9 **Caritas – Anchor House – Audit Findings Report** | **Year ended 31 MARCH 2022** ## **UK Corporation tax** - a return has been formally requested; OR - it has been established that the charity has a corporation tax liability. In most circumstances a charity will not be liable to pay any corporation tax, as there are a number of charitable exemptions which cover the majority of the typical income streams that charities receive. Please note that all the exemptions only apply so far as the income is applied for charitable purposes only. The main exemptions include: - profits from trading that directly furthers the charity’s objects; - rental income from land and buildings - investment income - income from VAT exempt fundraising events - Miscellaneous and other non-charitable trading where the total turnover does not exceed £80k per annum If you have any concerns about a possible liability to corporation tax or are unsure whether a particular stream of income falls within the exemptions noted above, please get in touch with your normal haysmacintyre contact for advice. **Employment Tax** **Health and Social Care Levy** The Government has introduced a Health and Social Care Levy at 1.25% to pay for spending on health and social care measures, including a cap on social care costs. Initially it will take the form of increased NICs, for both employers and employees. - From April 2022, rates of employer and employee National Insurance including Class1A and Class1B (employer only NIC payable on benefits) l increased by 1.25% - From 2023, the increased NICs will be replaced by a dedicated levy and National Insurance rates will revert to the 2021/22 levels. Unlike National Insurance, the levy will be paid by people over pensionable age who are still working. The levy will not be charged for employees under the age of 21, apprentices under 25, and qualifying freeport employees. The money raised via the levy will be ring-fenced for investment in health and social care. **Hybrid working arrangements** Throughout the COVID-19 pandemic it was possible for many office-based employees to be able to work from home. 10 **Caritas – Anchor House – Audit Findings Report** | **Year ended 31 MARCH 2022** ## **Employment Tax** Whilst the Government introduced an exemption for employer reimbursed expenses to cover the cost of relevant home office equipment, the exemption ended on 5 April 2022. Under the terms of the exemption employees will receive the full reimbursement for the purchase of equipment to enable them to work from home. What are the wider implications employers need to consider where consideration is being given to the future of flexible, or hybrid-working arrangements? Now that the pandemic restrictions are being lifted the reason for working from home will primarily be a matter of personal choice where the employee will come into the office say two/three days each week and work the remainder of their time at home. Where this is the case, the office will remain the place of work and the cost of travelling to the office will not qualify for any tax relief. However, where offices have been permanently closed, for example, as part of a significant reorganisation of the organisation, then consideration will need to be given to the following: - What are the employee’s duties? - Where do they carry out their duties? - Are they an area-based employee, responsible for say the East of England? Consequently, employers will need to consider the impact of the legislation as part of introducing any hybrid working arrangements. For many organisations the post-pandemic era will present a real opportunity to revise employee working practices especially where they can work, helping to provide a better work-life balance. A further benefit is the possibility to extend the catchments area for recruiting new employees and not being restricted to candidates based within reasonable commuting distance of the office. Where new policies are being introduced, we recommend they are fully reviewed to ensure they are compliant with current income tax and National Insurance legislation. ## **Auditing developments** **ISA (UK) 315 Revised Identifying and Assessing the Risks of Material Misstatement** ## **Periods commencing on or after 15 December 2021** The International Audit and Assurance Standards Board (IAASB) approved a significant re-write of the standard in September 2019. The effects of the revisions are far-reaching and will require a revised approach to risk assessments. Some of the terminology used will be familiar from the recent reworking of ISA (UK) 540 – Auditing Accounting Estimates. In summary, it requires more thoughtful and evidence-based assessments in which five new inherent risk factors are considered and placed on a “Spectrum of Risk” at the higher end of which lie Significant Risks. 11 ## **Caritas – Anchor House – Audit Findings Report** | **Year ended 31 MARCH 2022** ## **Auditing developments** The new inherent risk factors are: - Subjectivity; - Complexity; - Uncertainty; - Change; and - Susceptibility to misstatement due to bias or fraud. “Sufficient, appropriate” evidence must be obtained from risk assessment procedures as the basis for the risk assessment. The revised ISA’s application notes provide more explanatory material on controls relevant to the audit and on the design and implementation required for these controls. A great deal more is required in respect of IT and particularly IT general controls and understanding and applying the changes required will be a significant task for auditors with increased levels of audit preparation, planning and work. 12 Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG T 020 7969 5500 F 020 7969 5600 E marketing@haysmacintyre.com www.haysmacintyre.com @haysmacintyre - © Copyright 2022 Haysmacintyre LLP. All rights reserved. haysmacintyre is the trading name of Haysmacintyre LLP, a limited liability partnership Registered number: OC423459 Registered in England and Wales Registered to carry on audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales A list of members’ names is available for inspection at 10 Queen Street Place, London EC4R 1AG A member of the ICAEW Practice Assurance Scheme Disclaimer: This publication has been produced by the partners of Haysmacintyre LLP and is for private circulation only. Whilst every care has been taken in preparation of this document, it may contain errors for which we cannot be held responsible. In the case of a specific problem, it is recommended that professional advice be sought. The material contained in this publication may not be reproduced in whole or in part by any means, without prior permission from Haysmacintyre LLP.