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2025-03-31-accounts

REGISTERED CHARITY NUMBER: 1154842

REPORT OF THE TRUSTEES AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025

FOR

TOWER HAMLETS MISSION

Cobbin Floyd Ltd Chartered Accountants 15a Station Road Epping Essex CM16 4HG

TOWER HAMLETS MISSION

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025

Page
Treasurer's Report 1
Report of the Trustees 2 to 7
Report of the Independent Auditors 8 to 10
Statement of Financial Activities 11
Balance Sheet 12
Statement of Cashflows 13
Notes to the Statement of Cashflows 14
Notes to the Financial Statements 15 to 24
Detailed Statement of Financial Activities 25 to 26

TOWER HAMLETS MISSION

TREASURER'S REPORT

FOR THE YEAR ENDED 31ST MARCH 2025

The year has been another good one with occupancy levels remaining high for most of the year. Fund-raising for both the Sponsorship Scheme and general purposes has gone well.

During the year we finished upgrading all the light fittings/lights to LED which although incurring quite a bit of expense now, will save money in the longer term.

We have invested in a property, initially as staff accommodation, but also since property prices tend to outstrip interest rates it is seen as a good investment for the future of the Mission. This was financed partly from reserves and partly with a mortgage from Kingdom Bank.

We have maintained our Strategic Reserve which is our safety net to keep the work going if finances do get tight either through changes in the funding regime or a lower level of occupancy. Those funds were invested in the Ruffers Charity Asset Trust, however this has now been used partly for the purchase of the property mentioned above, but with £80,000 plus in a savings account with Kingdom Bank to provide easy access to cash if required.

The total reserve ought to represent 4 months expenditure.

The staff is our most important resource giving the Charity the 'family' feel which the residents appreciate and value and which helps the residents achieve the results they desire. We once again thank the staff for their hard work.

The Sponsorship Scheme supports residents where external funding cannot be found. We regard this as an important part of our activities and are pleased to report that this year £24,600 was received and £68,264 was spent.

The overall result was a decrease in general funds of £24,541.

We are as always looking to God in our decision making and thank Him for His past supply and look to Him for the future supply of people and finance to operate this important ministry.

R I Smith - Treasurer July 2025

Page 1

TOWER HAMLETS MISSION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2025

The trustees present their report with the financial statements of the charity for the year ended 31st March 2025. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The Tower Hamlets Mission is a Christian charity, committed to working with people suffering from alcohol and/or drug dependency, who are homeless, or in danger of becoming homeless and are receiving state benefits. Our aim is to enable them to break the cycle of chronic addiction definitively and to rebuild purposeful, stable lives through the provision of high quality, comprehensive, and long term residential therapy, rehabilitation and resettlement.

There are currently 4 part-time administrative staff, 8 full time and 5 part-time therapy staff.

Public benefit

Tower Hamlets Mission aims to help residents break from their addictions and rebuild a purposeful life free from drugs and / or alcohol.

This is achieved through a programme made up of three stages, increasing independence for the individual throughout. Each resident receives group therapy, one to one counselling, completes a written therapy programme, has peer to peer support and is also helped at a practical level with benefits and debt advice, liaison with courts / legal matters, given help with budgeting and catering and also assisted with gaining entry into education and / or voluntary work.

The benefits can be measured in many ways. Some of these include better health, a break from criminal activity, better relationships with families and children and a new sense of hope and purpose.

The benefits spread wider to the family, friends and children of the resident who have often struggled with their relationship and to society in general who are no longer burdened with carrying the weight of the resident's illness (in terms of NHS, Criminal Justice System and Welfare Benefits)

The trustees have had regard to the Charity Commission's guidance on public benefit.

Fundraising Activities

Tower Hamlets Mission's approach to fundraising is to raise funds from Grant Making Charities and Companies to support its annual budget and to fund 'one off' capital projects wherever necessary. This is achieved by written applications detailing the work of the Mission and its Objects and stating the current financial need. The applications are accompanied by the Mission's most recent financial statements and annual report.

Tower Hamlets Mission is registered with the Fundraising Regulator and is a member of the Institute of Fundraising and complies with recognised standards.

Tower Hamlets Mission does not employ professional fundraisers and does not, under normal circumstances, approach the general public (individuals) for monetary donations. No complaints about the Mission's fundraising practices have been received.

Tower Hamlets Mission's fundraising activities are monitored by the Managing Committee in accordance with the document M21 (Charity Fundraising - Trustees Duties).

Page 2

TOWER HAMLETS MISSION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST MARCH 2025

ACHIEVEMENTS AND PERFORMANCE Charitable activities

Sponsorship Scheme:

This scheme pays for the therapy of those men who cannot get funding for this.

Outcomes

Primary Programme:

On 1st April 2024, there were 4 residents on the Primary Programme and 7 new residents throughout the year.

1 resident was discharged by Charis

1 resident self-discharged

5 successfully completed and moved into Second Stage

4 residents were in the Primary Programme on 31st March 2025 This represents a 71.4% completion rate and a 81.8% positive outcome.

Second Stage:

On 1st April 2024, there were 9 residents on the Second Stage Programme and 5 new arrivals throughout the year.

1 resident was discharged by Charis

1 resident self-discharged

2 residents successfully moved into their own accommodation

2 successfully completed and moved into the Terrace 8 residents were in Second Stage on 31st March 2025 This represents a 75% completion rate and a 85.7% positive outcome.

Terrace (Third Stage):

On 1st April 2024, there were 12 residents living in the Terrace and 2 new residents throughout the year.

2 residents successfully moved into their own accommodation

1 resident died in residence of a terminal illness

11 residents were in the Terrace on 31st March 2025 This represents a 100% completion rate and a 100% positive outcome

Combined occupancy for Primary Programme and Second Stage was 95.26% Occupancy for The Terrace was 99.61% and the overall occupancy rate for all stages at Charis was 97.27%.

Summary

We had 32 residents at Charis this year, with 2 residents discharged by Charis, 2 residents who self-discharged, 1 who died in residence and 4 who successfully moved on to their own accommodation. This represents an 87.5% positive outcome across all programmes.

Completion rate measures only those residents who move on from one programme to the next or from Charis in a planned move on maintaining abstinence. Positive outcomes measure the outcome for all residents including those that are still at Charis at the end of the financial year.

FINANCIAL REVIEW

Investment policy and objectives

Under the CIO Foundation Model, the charity has the power to make any investment which the trustees think fit, taking into account advice from their stockbrokers.

The trustees have considered the most appropriate policy for investing funds and have found that a selection of wider range UK listed investments meets their requirements to generate both income and capital growth. The trustees consider the returns on investments to be satisfactory.

Page 3

TOWER HAMLETS MISSION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2025

FINANCIAL REVIEW

Reserves policy

The charity determines to maintain reserves, invested as appropriate, that will enable the work of the charity to continue with sufficient funds to maintain its level of activity without being disturbed by temporary shortfalls in funding. In particular, funds will be maintained as follows:

Restricted funds:

These will be treated as reserves that cannot be touched except to be spent on the purposes for which the funds are raised. Currently the charity only has one restricted fund, being the Sponsorship Scheme which goes towards the cost of treatment for those residents who do not have the resources available to them

There are two designated funds, the Charis refurbishment fund and the residents training and education fund, where funds are not restricted but are ringfenced for these specific purposes. These funds can be transferred back into the general fund if required.

At 31[st] March 2025 all restricted funds received during the year had been spent so the year end balance is £nil.

General Fund:

This will be invested in net current assets and will consist of two elements:

a) Strategic Reserve: the charity's policy on reserves is designed to maintain or achieve adequate funds to cover the net book value of fixed assets, and to hold restricted funds. In addition it seeks to achieve a general reserve to cover working capital requirements and four months average costs.

b) General Reserve: the balance of reserves that will be taken forward to the future as additional funding for charitable activity.

Review of funds

The statement of financial activities shows a decrease in net assets for the year of £24,541. The charity's net assets currently stand at £2,674,198. Movements in individual funds are shown in the body of the accounts.

At 31[st] March 2025 total cash held at the bank was £119,712, of which £80,873 is the Strategic Reserve, £8,200 is designated for Charis refurbishment and £13,335 is designated for Residents’ training and education. This leaves £17,304 for general running costs, however, this is boosted by £63,122 of Housing Benefit and other debtors received at the start of April 2025.

The Charis refurbishment monies will be spent in the first quarter of 2025/26, whilst the Residents’ training and education monies are likely to be spent in the second half of 2025/26. In a worst case scenario, the staff property in Hornchurch, which was recently purchased, could be sold and after paying off the mortgage should realise around £200,000. The Strategic Reserve of £80,873 held in cash would give the charity a few months in which to achieve a sale.

FUTURE PLANS

During the past few years Tower Hamlets Mission has carried out a major refurbishment of the Charis Alcohol and Drug Therapy Unit building which included the renewal of the roof and installation of a new skylight, a new Stannah stairlift, replacement of boilers, radiators, sinks, replacement of a large window in the Charis stairwell, replacing the 2 bike sheds, replacing all light fittings throughout Charis, Admin and the Terrace with LED, new curtains and voiles in the Charis dining room and lounges, conversion of the old therapy room into a new larger office for staff, a new fire alarm system and a new smoke vent system.

During 2025/26 we plan on repairing the office block roof, the plant room roof, install a 'wet' room in Flat 10 (disability flat), replace armchairs in the therapy room and re-carpet the balcony area in Charis. In addition we will continue to re-furbish the kitchens in the Terrace as and when they become vacant.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, Charitable Incorporated Organisation Foundation Model dated 22nd October 2013.

Trustees are recruited through advertisements in appropriate Christian magazines, both in print and online, as well as by word of mouth. Applicants are then interviewed by two existing trustees and after selection a DBS check is carried out and a vote taken at the next Trustees Meeting.

Page 4

TOWER HAMLETS MISSION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2025

STRUCTURE, GOVERNANCE AND MANAGEMENT Associates

Mr Godfrey Featherstone MBE BA Dip Civ Eng (from 14.11.23) Dr. Timothy W Robson OBE BSc MBBS (from 14.11.23)

Patrons

The Viscount of Falkland Mr Charles Miller Smith The Rt Rev Christopher Chessun (Bishop of Southwark) The Most Hon the Marquess of Reading

Staff

Andrew R Bannell BA Hons (Law) BA Hons (Phil/Theo) Director & Dip Soc Wk CQSW, Cert MHSC Registered Manager NVQ Level 4 Management, Registered Managers Award Stephen H Holness Part-time Fundraiser Natalie A Bannell CSS Part time Administrator Melanie J O'Reilly BSc Hons (Soc Sci) (Psy) DASS CQSW Part-time Senior Counsellor/Key Worker William A O'Reilly Counselling Theory & Skills (CSCT) Senior Counsellor/ Diploma in Counselling (CSCT) Key Worker Geoffrey B White BSc Hons, Certificate in Counselling Theory (CSCT) Senior Counsellor/ Certificate in Alcohol & Drug Counselling Skills (CSCT) Key Worker/ Registered Managers Award Deputy Manager NVQ Level 4 Management Simon P Sanders BA Hons Keyworker / Counsellor Diploma in Counselling Jonathan K Mabbutt Part-time Deputy Administrator Rosamond H White BSc (Hons), Diploma in Counselling Part-time Project Worker (CSCT) Stephen C Dodd BSc, PGCE Project Worker Diploma in Counselling Susanne C Lynch BDc (Pharm), NVQ Level 3 Professional Cookery Part-time Project Worker

Akik Miah City & Guilds, Level 2 Care Project Worker City & Guilds Diploma Level 2 in Professional Cookery

Page 5

TOWER HAMLETS MISSION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2025

STRUCTURE, GOVERNANCE AND MANAGEMENT STRUCTURE, GOVERNANCE AND MANAGEMENT
Joe Cox Certificate in Systematic Theology
Project Worker/Trainee Level 4 Theology/Counselling
Counsellor
Martin Berry Diploma in Psychology
Part-time Project Worker
Diploma in CBT
Danielle Chamberlain BSW
Part-time Project Worker
Stephen Fletcher
Full time Projest Worker
Amy Cox BSc & MA Teaching
Part-time Fundraiser /
Administrative Assistant

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number 1154842 Principal address 31 Mile End Road London E1 4TP Trustees Dr T W Robson OBE, BSc, MBBS (appointed 12.11.24) R I Smith D J Richter MA BA (Hons) Dip Mgt FRSA G Roach BA (Hons) Mrs E Lamont BA (Hons) Ms T Bennett BSc (Hons) MSc Mr V Buchanan BA (Hons)

Auditors Cobbin Floyd Ltd Chartered Accountants 15a Station Road Epping Essex CM16 4HG

Bankers

HSBC Bank Plc London Commercial Banking Centre Level 6 71 Queen Victoria Street London EC4V 4AY

Solicitors

Monro Wright & Wasbrough LLP 7-8 Great James Street London WC1N 3DF

Page 6

TOWER HAMLETS MISSION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2025

REFERENCE AND ADMINISTRATIVE DETAILS

Stockbrokers

Ruffer AIFM Ltd P O Box 371 Darlington DL1 9RN

TRUSTEES' RESPONSIBILITY STATEMENT

The trustees are responsible for preparing the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the CIO Foundation Model dated 22nd October 2013. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the board of trustees on 16[th] July 2025 and signed on its behalf by:

..............................................................................

D J Richter MA BA (Hons) Dip Mgt FRSA - Trustee

Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF TOWER HAMLETS MISSION

Opinion

We have audited the financial statements of Tower Hamlets Mission (the 'charity') for the year ended 31st March 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Page 8

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF TOWER HAMLETS MISSION

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

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

To identify risks of material misstatement due to fraud we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud.

Our risk assessment procedures included:

We communicated the identified fraud risks to the audit team and remained alert to any indications of fraud throughout the audit.

As required by auditing standards, and taking into account our overall knowledge of the control environment, we performed procedures to address the risk of management override of controls, in particular the risk that management may be in a position to make inappropriate accounting entries.

As part of our audit, we are required to consider whether the charity has complied with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, or that provide a legal framework within which the charity conducts its business.

In the context of a charity operating as a residential rehabilitation facility, the most relevant laws and regulations include:

Our audit procedures were designed to respond to the risk of material misstatement in the financial statements, whether arising from fraud or error, and to consider compliance with these laws and regulations. However, our audit should not be relied upon to identify all instances of non-compliance.

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

Page 9

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF TOWER HAMLETS MISSION

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Cobbin Floyd Ltd Chartered Accountants 15a Station Road Epping Essex CM16 4HG Date: .............................................

Cobbin Floyd Ltd is eligible for appointment as auditors of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Page 10

TOWER HAMLETS MISSION

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST MARCH 2025

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
4
Residential services
Investment income
3
Total
EXPENDITURE ON
Raising funds
5
Charitable activities
6
Residential services
Other
Total
Net gains on investments
NET INCOME/(EXPENDITURE)
Transfers between funds
19
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
39,110
698,718
19,247
757,075
18,533
713,941
7,202
739,676
1,724
19,123
(43,664)
(24,541)
2,698,739
2,674,198		 Restricted
funds
£
24,600
-
-
24,600
-
68,264
-
68,264
-
(43,664)
43,664
-
-
-		 2025
Total
funds
£
63,710
698,718
19,247
781,675
18,533
782,205
7,202
807,940
1,724
(24,541)
-
(24,541)
2,698,739
2,674,198		 2024
Total
funds
£
99,565
656,343
19,347
775,255
17,083
762,271
9,203
788,557
-
(13,302)
-
(13,302)
2,712,041
2,698,739

The notes form part of these financial statements

Page 11

TOWER HAMLETS MISSION

BALANCE SHEET 31ST MARCH 2025

Notes
FIXED ASSETS
Tangible assets
11
Investments
12
CURRENT ASSETS
Debtors
13
Investments
14
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
15
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS
Amounts falling due after more than one year
16
NET ASSETS
FUNDS
19
Unrestricted funds
TOTAL FUNDS		 Unrestricted
funds
£
2,754,568
-
2,754,568
84,490
40,535
79,177
204,202
(40,356)
163,846
2,918,414
(244,216)
2,674,198		 Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
-		 2025
Total
funds
£
2,754,568
-
2,754,568
84,490
40,535
79,177
204,202
(40,356)
163,846
2,918,414
(244,216)
2,674,198
2,674,198
2,674,198		 2024
Total
funds
£
2,296,861
210,574
2,507,435
83,448
-
139,063
222,511
(31,207)
191,304
2,698,739
-
2,698,739
2,698,739
2,698,739

The financial statements were approved by the Board of Trustees and authorised for issue on 16[th] July 2025 and were signed on its behalf by:

.............................................

D J Richter MA BA (Hons) Dip Mgt FRSA - Trustee

The notes form part of these financial statements

Page 12

TOWER HAMLETS MISSION

STATEMENT OF CASHFLOWS
FOR THE YEAR ENDED 31ST MARCH 2025
2025
Notes
£
Cash flows from operating activities
Cash generated from operations
1
29,164
Interest paid
(7,202)
Net cash provided by/(used in) operating activities
21,962
Cash flows from investing activities
Purchase of tangible fixed assets
(509,793)
Purchase of fixed asset investments
(3,214)
Sale of fixed asset investments
215,512
Transfer to current asset investment
(40,535)
Interest received
4,072
Dividends received
3,214
Unrealised loss/(gain) on investments
-
Net cash (used in)/provided by investing activities
(330,744)
Cash flows from financing activities
New loans in year
250,000
Loan repayments in year
(1,104)
Net cash provided by financing activities
248,896
Change in cash and cash equivalents in the
reporting period
(59,886)
Cash and cash equivalents at the beginning of
the reporting period
139,063
Cash and cash equivalents at the end of the
reporting period
79,177		 2024
£
(28,805)
-
(28,805)
(17,043)
(5,249)
-
-
2,554
5,249
21,896
7,407
-
-
-
(21,398)
160,461
139,063

The notes form part of these financial statements

Page 13

TOWER HAMLETS MISSION

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2025

1. RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES OPERATING ACTIVITIES
2025 2024
£ £
Net expenditure for the reporting period (as per the Statement of Financial
Activities) (24,541) (13,302)
Adjustments for:
Depreciation charges 52,086 48,672
Losses on investments (1,724) -
Interest received (4,072) (2,554)
Interest paid 7,202 -
Dividends received (3,214) (5,249)
Increase in debtors (1,042) (64,100)
Increase in creditors 4,469 7,728
Net cash provided by/(used in) operations **29,164 ** (28,805)
2. ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)
At 1.4.24 Cash flow At 31.3.25
£ £ £
Net cash
Cash at bank and in hand 139,063 (59,886) 79,177
139,063 (59,886) 79,177
Liquid resources
Current asset investments - 40,535 40,535
- 40,535 40,535
Debt
Debts falling due within 1 year - (4,680) (4,680)
Debts falling due after 1 year - (244,216) (244,216)
- (248,896) (248,896)
Total 139,063 (268,247) (129,184)

The notes form part of these financial statements

Page 14

TOWER HAMLETS MISSION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.

The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property and improvements - 1% - 10% on cost Fixtures and equipment - Straight line over 6 years Motor vehicles - 20% on cost

Recognition

Tangible fixed assets are recognised when:

Measurement at Initial Recognition

Fixed assets are measured at cost on initial recognition. Cost includes:

Subsequent Measurement

Fixed assets are carried at cost less accumulated depreciation and any accumulated impairment losses. Revaluation is not generally applied unless otherwise stated by the trustees. Where revaluation is adopted, this policy is applied consistently across the relevant asset class.

Impairment

At each reporting date, assets are reviewed to assess whether there is any indication of impairment. If an asset's carrying amount exceeds its recoverable amount, the asset is written down immediately to its recoverable amount, with the impairment loss recognised in the Statement of Financial Activities.

Disposal

Gains or losses on disposal of fixed assets are recognised in the SoFA, being the difference between the net disposal proceeds and the carrying amount of the asset.

continued...

Page 15

TOWER HAMLETS MISSION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST MARCH 2025

1. ACCOUNTING POLICIES - continued

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Designated funds are unrestricted but have been set aside by the trustees to cover certain allocated costs. Designated funds can be transferred back into general funds if required.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Income

General Principles

Income is recognised in the Statement of Financial Activities (SoFA) when the charity is entitled to the income, it is probable that the income will be received, and the amount can be measured reliably. This applies irrespective of the source of income. Income is measured at the fair value of the consideration received or receivable, net of any discounts, VAT, or similar taxes.

Donations and Voluntary Income

Donations and legacies are recognised when the charity has entitlement to the funds, it is probable that the income will be received, and the amount can be reliably measured.

Gift Aid recoverable on donations is recognised in the year in which the donations are received, provided there is a valid Gift Aid declaration.

Legacies are recognised when probate has been granted, the executors have established that sufficient assets exist to settle the legacy, and the amount can be measured reliably.

Where income is received in advance of entitlement, it is deferred and recognised in the period to which it relates.

Investment Income

Dividends, interest, and other investment income are recognised when the charity's right to receipt is established, it is probable that the income will be received, and the amount can be measured reliably. Income is accrued for in the year to which it relates, regardless of the date of receipt. Investment income is presented gross of any attributable investment management costs.

Rental Income

Rental income from property letting is recognised on a straight-line basis over the lease term, unless another systematic basis is more appropriate to reflect the time pattern of the charity's right to receive the income.

Rental income is recognised net of any rent-free periods, lease incentives, or other adjustments required under FRS 102. Amounts received in advance are recognised as deferred income and released to the SoFA in the period to which they relate.

Restricted and Unrestricted Income

Income is classified as restricted when it is subject to specific conditions imposed by donors or grant funders, which must be fulfilled by the charity.

Income is classified as unrestricted where it is not subject to such restrictions and is available for general use.

Deferred Income

Income received in advance of entitlement, or subject to conditions not yet met, is deferred and recognised in the SoFA when the recognition criteria are satisfied.

continued...

Page 16

TOWER HAMLETS MISSION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST MARCH 2025

1. ACCOUNTING POLICIES - continued

Investments

Recognition

Investments are recognised initially at cost, including transaction costs, except where the investment is measured at fair value through profit or loss, in which case transaction costs are expensed as incurred.

Measurement

Income from Investments

Dividends, interest, and other investment income are recognised when the charity's right to receipt is established, it is probable the income will be received, and the amount can be measured reliably. Income is presented gross of attributable investment management costs.

Realised and Unrealised Gains and Losses

All realised and unrealised gains and losses on investments are recognised in the Statement of Financial Activities in the period in which they arise.

Gains and losses are allocated to the appropriate fund (restricted or unrestricted) depending on the terms of the original gift or investment.

Impairment

At each reporting date, investments are reviewed for objective evidence of impairment. Where such evidence exists, the carrying value is reduced to the recoverable amount, and the impairment loss is recognised in the Statement of Financial Activities.

Disposal

On disposal of an investment, the difference between the net disposal proceeds and the carrying amount is recognised in the Statement of Financial Activities.

Cash and cash equivalents

Recognition

Cash and cash equivalents include cash in hand, deposits held at call with banks, and other short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.

Measurement

Cash is measured at its face value.

Cash equivalents are measured at fair value, normally being cost plus accrued interest.

Classification

Cash and cash equivalents are classified as current assets in the Balance Sheet. They are available for use by the charity unless subject to donor restrictions.

Exclusions

Cash and cash equivalents exclude:

Financial Instruments

Recognition

Financial instruments are recognised when the charity becomes a party to the contractual provisions of the instrument.

Classification

The charity classifies its financial instruments as either:

continued...

Page 17

TOWER HAMLETS MISSION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST MARCH 2025

1. ACCOUNTING POLICIES - continued

Basic Financial Instruments

Basic financial instruments include:

Measurement:

Basic financial assets are initially measured at the transaction price, including transaction costs, and are subsequently measured at amortised cost using the effective interest method, less impairment where appropriate.

Basic financial liabilities are initially measured at the transaction price and subsequently at amortised cost using the effective interest method.

Other Financial Instruments

Other financial instruments (such as investments in quoted shares, bonds, or complex arrangements) are measured at fair value at each reporting date, with changes recognised in the Statement of Financial Activities.

Impairment of Financial Assets

At each reporting date, financial assets measured at amortised cost are assessed for evidence of impairment. Where there is objective evidence that an asset is impaired, the carrying amount is reduced to the recoverable amount, with the impairment loss recognised in the Statement of Financial Activities.

Derecognition

Financial assets are derecognised when the contractual rights to the cash flows from the asset expire, or substantially all the risks and rewards of ownership are transferred.

Financial liabilities are derecognised when the contractual obligations are discharged, cancelled, or expire.

2. DONATIONS AND LEGACIES

DONATIONS AND LEGACIES
Donations
Gift aid
Grants
Grants received, included in the above, are as follows:
Fundraising income		 2025
£
10,931
4,644
48,135
63,710
2025
£
48,135		 2024
£
22,050
966
76,549
99,565
2024
£
76,549

continued...

Page 18

TOWER HAMLETS MISSION

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31ST MARCH 2025

3. INVESTMENT INCOME

Rents received
Dividends received
Bank interest received
4.
INCOME FROM CHARITABLE ACTIVITIES
Residential service income
Therapy income
5.
RAISING FUNDS
Raising donations and legacies
Staff costs
Direct fundraising costs
6.
CHARITABLE ACTIVITIES COSTS
Residential services
7.
SUPPORT COSTS
Other resources expended
Residential services		 2025
£
11,961
3,214
4,072
19,247
2025
£
684,303
14,415
698,718
2025
£
17,795
738
18,533
Support
Direct
costs (see
Costs
note 7)
£
£
719,001
63,204
Governance
Finance
costs
£
£
7,202
-
153
63,051
7,355
**63,051 **		 2024
£
11,544
5,249
2,554
19,347
2024
£
641,530
14,813
656,343
2024
£
16,853
230
17,083
Totals
£
782,205
Totals
£
7,202
63,204
70,406

continued...

Page 19

TOWER HAMLETS MISSION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST MARCH 2025

8. AUDITORS' REMUNERATION

AUDITORS' REMUNERATION
2025 2024
£ £
Fees payable to the charity's auditors for the audit of the charity's financial 9,480 9,030
statements

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31st March 2025 nor for the year ended 31st March 2024.

Trustees' expenses

During the year, £93 was reimbursed to two trustees for directly incurred travel expenses (2024 : £150).

10. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2025
£
479,701
41,351
22,507
543,559		 2024
£
445,212
36,490
21,465
503,167

The average monthly number of employees during the year was as follows:

Therapy staff
Administrative staff		 2025
13
3
16		 2024
13
3
16

No employees received emoluments in excess of £60,000.

continued...

Page 20

TOWER HAMLETS MISSION

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31ST MARCH 2025

11. TANGIBLE FIXED ASSETS

COST
At 1st April 2024
Additions
At 31st March 2025
DEPRECIATION
At 1st April 2024
Charge for year
At 31st March 2025
NET BOOK VALUE
At 31st March 2025
At 31st March 2024		 Freehold
property
and
improvements
£
2,621,937
504,140
3,126,077
335,115
47,805
382,920
2,743,157
2,286,822		 Fixtures
and
equipment
£
77,439
5,653
83,092
67,401
4,281
71,682
11,410
10,038		 Motor
vehicles
£
30,228
-
30,228
30,227
-
30,227
1
1		 Totals
£
2,729,604
509,793
3,239,397
432,743
52,086
484,829
2,754,568
2,296,861

12. FIXED ASSET INVESTMENTS

FIXED ASSET INVESTMENTS
Listed
investments
£
MARKET VALUE
At 1st April 2024 210,574
Additions 3,214
Disposals **(213,788) **
At 31st March 2025 -
NET BOOK VALUE
At 31st March 2025 -
At 31st March 2024 210,574

There were no investment assets outside the UK.

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Other debtors
Staff loan
Prepayments and accrued income		 2025
£
12,364
4,360
67,766
84,490		 2024
£
15,397
4,600
63,451
83,448

continued...

Page 21

TOWER HAMLETS MISSION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST MARCH 2025

14.
CURRENT ASSET INVESTMENTS
120 day savings account
15.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank loans and overdrafts (see note 17)
Taxation and social security
Other creditors
16.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Bank loans (see note 17)
17.
LOANS
An analysis of the maturity of loans is given below:
Amounts falling due within one year on demand:
Bank loans
Amounts falling between one and two years:
Bank loans - 1-2 years
Amounts falling due between two and five years:
Bank loans - 2-5 years
Amounts falling due in more than five years:
Repayable by instalments:
Bank loans more 5 yr by instal
18.
SECURED DEBTS
The following secured debts are included within creditors:
Bank loans

The loan with Kingdom Bank is secured against the new property purchased during the year at Carnforth Gardens, Hornchurch. This is repayable over a period of 25 years.

continued...

Page 22

TOWER HAMLETS MISSION

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31ST MARCH 2025

19. MOVEMENT IN FUNDS

At 1.4.24
£
Unrestricted funds
General fund
2,698,739
Charis refurbishment fund
-
Residents training and education
-
2,698,739
Restricted funds
Sponsorship scheme
-
TOTAL FUNDS
2,698,739
Net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
735,540
Charis refurbishment fund
8,200
Residents training and education
13,335
757,075
Restricted funds
Sponsorship scheme
24,600
TOTAL FUNDS
781,675		 Net
movement
in funds
£
(2,412)
8,200
13,335
19,123
(43,664)
(24,541)
Resources
expended
£
(739,676)
-
-
(739,676)
(68,264)
**(807,940) **		 Transfers
between
funds
£
(43,664)
-
-
(43,664)
43,664
-
Gains and
losses
£
1,724
-
-
1,724
-
1,724		 At
31.3.25
£
2,652,663
8,200
13,335
2,674,198
-
2,674,198
Movement
in funds
£
(2,412)
8,200
13,335
19,123
(43,664)
(24,541)

Comparatives for movement in funds

Unrestricted funds
General fund
Charis refurbishment fund
Residents training and education
Restricted funds
Sponsorship scheme
TOTAL FUNDS		 At 1.4.23
£
2,692,041
20,000
-
2,712,041
-
2,712,041		 Net
movement
in funds
£
(25,082)
5,000
44,000
23,918
(37,220)
(13,302)		 Transfers
between
funds
£
(12,220)
(25,000)
-
(37,220)
37,220
-		 At
31.3.24
£
2,654,739
-
44,000
2,698,739
-
2,698,739

continued...

Page 23

TOWER HAMLETS MISSION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST MARCH 2025

19. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Charis refurbishment fund
Residents training and education
Restricted funds
Sponsorship scheme
TOTAL FUNDS		 Incoming
resources
£
699,805
5,000
44,000
748,805
26,450
775,255		 Resources
Movement
expended
in funds
£
£
(724,887)
(25,082)
-
5,000
-
44,000
(724,887)
23,918
(63,670)
(37,220)
(788,557)
(13,302)

Restricted and designated funds included in the financial statements include the following :

Sponsorship scheme - this is a restricted fund used to finance the care of those residents who do not have the ability or means to finance their own treatment.

Charis refurbishment fund - this is a designated fund used in the upkeep and refurbishment of the physical premises at 31 Mile End Road.

Residents training and education - this is a designated fund used to finance external courses and qualifications for residents to assist in their transition to independent living.

Transfers between funds

The transfer of £43,664 (2024 - £37,220) from unrestricted general funds to the restricted fund for Sponsorship Scheme represents the difference between the donation income received for this fund and the resources required to provide the services. Funds are therefore transferred from the general unrestricted fund to cover this shortfall.

20. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31st March 2025.

21. DONORS DURING THE YEAR

Marie Celeste Samaritan Society Lyn Ellis Foundation Marsh Charitable Trust The Albert Hunt Charitable Trust The Sir James Roll Charitable Trust The Leonard Trust The Invesco Cares Foundation The Alexis Trust The Vandervell Foundation The Robert McAlpine Foundation Inner London Magistrates' Court's Poor Box Charity & Feeder Charity The John Booth Charitable Foundation The Coopers' Charity

Page 24

TOWER HAMLETS MISSION

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST MARCH 2025

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Gift aid
Grants
Investment income
Rents received
Dividends received
Bank interest received
Charitable activities
Residential service income
Therapy income
Total incoming resources
EXPENDITURE
Raising donations and legacies
Wages
Social security
Direct fundraising costs
Charitable activities
Wages
Social security
Pensions
Direct costs
Insurance
Freehold property
Fixtures and fittings
Motor vehicles
Support costs
Finance
Bank charges
Carried forward		 2025
£
10,931
4,644
48,135
63,710
11,961
3,214
4,072
19,247
684,303
14,415
698,718
781,675
16,740
1,055
738
18,533
414,254
35,432
22,507
173,541
21,181
47,805
4,281
-
719,001
153
153		 2024
£
22,050
966
76,549
99,565
11,544
5,249
2,554
19,347
641,530
14,813
656,343
775,255
15,912
941
230
17,083
383,009
31,019
21,465
186,313
19,076
39,287
3,340
6,045
689,554
173
173

This page does not form part of the statutory financial statements

Page 25

TOWER HAMLETS MISSION

DETAILED STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31ST MARCH 2025
Finance
Brought forward
Unrealised loss on investment
Mortgage charges and interest
Governance costs
Wages
Social security
Auditors' remuneration
Total resources expended
Net expenditure before gains and losses
Realised recognised gains and losses
Realised gains/(losses) on fixed asset investments
Net expenditure		 2025
£
153
-
7,202
7,355
48,707
4,864
9,480
63,051
807,940
(26,265)
1,724
(24,541)		 2024
£
173
21,896
-
22,069
46,291
4,530
9,030
59,851
788,557
(13,302)
-
(13,302)

This page does not form part of the statutory financial statements

Page 26