**CHARITY REGISTRATION NUMBER: 1162434**
## **NACCOM (No Accommodation Network)**
## **Financial Statements**
## **30 June 2021**
## **STEPHENSON COATES AUDIT LIMITED**
Chartered Accountants & Statutory Auditor West 2, Asama Court Newcastle Business Park Newcastle upon Tyne NE4 7YD
## **NACCOM**
## **Financial Statements**
## **Year ended 30 June 2021**
||**Page**|
|---|---|
|Trustees' annual report|**1**|
|Independent examiner’s report to the Trustees|**8**|
|Statement of financial activities (including income and expenditure||
|account)|**9**|
|Statement of financial position|**10**|
|Statement of cash flows|**11**|
|Notes to the financial statements|**12**|
## **NACCOM**
## **Trustees' Annual Report**
## **Year ended 30 June 2021**
The trustees present their report and the unaudited financial statements of the charity for the year ended 30 June 2021.
## **Reference and administrative details**
**Registered charity name** NACCOM **Charity registration number** 1162434 **Principal office** Youth Resource Centre Oxford Street Whitley Bay Tyne and Wear NE26 1AD
## **The trustees**
## **Independent examiner**
Rachael Oswald BA ACA Stephenson Coates Audit Limited Chartered accountant & Statutory auditor West 2, Asama Court Newcastle Business Park Newcastle upon Tyne NE4 7YD
**- 1 -**
## **NACCOM**
## **Trustees' Annual Report** _**(continued)**_
## **Year ended 30 June 2021**
## **Objectives and activities**
## **Structure, governance and management**
## Governing document and membership:
NACCOM is a Charitable Incorporated Organisation established on 26 June 2015, governed by its constitution with voting members other than its charity trustees. The Charity Registration number is 1162434. By the end of June 2021 the charity had 77 full member organisations with voting rights. New members can apply for membership at any time throughout the year. A full member has to be accommodating at least one person seeking asylum with no recourse to public funds. Full members have only one vote at the Annual General Meeting. In 2020-21, NACCOM also had 58 associate and ‘Friends of’ members (organisations or individuals who do not accommodate people seeking asylum with no recourse to public funds but are supportive of the aims of NACCOM) who do not have voting rights but can participate in and benefit from all other NACCOM activities.
## Appointment and retirement of Trustees:
The Charity currently has nine trustees . were newly appointed at the
AGM on the 28th September 2020. As per the constitution, one third of all trustees (on a rotational basis) will retire at each AGM and seek re-election if they wish to do so. were re-appointed for another term of three years at the AGM on 28th September 2020. The next AGM is on the 18th November 2021 where will retire and stand for re-election. Three new
people have been invited onto the board in 2020-21 to strengthen the Board’s diversity, skills and experience. One has specific financial experience and will become our Treasurer, another has lived experience of the asylum system who is managing a housing project in Coventry (to add to the two trustees who are also refugees), and the third leads a project in Scotland to give us greater geographical coverage. Full members will vote to confirm their approval of their becoming Trustees at the next AGM in November 2021. Our Founding Chair of Trustees,
will be stepping down from being a trustee at the AGM in November 2021 due to a change in his personal circumstances. who has also been a trustee from the beginning of NACCOM being incorporated as a charity, will take over the Chair’s role with continuing in the Vice Chair role.
## Organisation:
The Charity is organised so that its trustees meet regularly as a whole Board (at least four times a year) to review its affairs and set objectives with subgroups (a mixture of Trustees and staff) meeting between Board meetings to discuss specific issues such as the management accounts, HR and membership applications. NACCOM had a staff team of seven people during the year who have all worked remotely in various locations throughout England. In March 2021 the National Director ) resigned and so a new Director ( was appointed and started in July 2021. An interim Director ) was appointed to cover the gap of two months between Directors. Within the staff team, throughout the year there was also a full-time Network Development worker, a part-time Network Development worker, a part-time Finance and Operations Co-ordinator, a part-time Policy and Campaigns Co-ordinator, a full-time Policy and Advocacy Co-ordinator and a part-time Communications Co-ordinator.
## **Objectives and activities**
The objectives of the CIO are:
a) To prevent or relieve poverty among refugees, asylum seekers, and migrants with no recourse to public funds living in the United Kingdom
b) To advance the education of the public in general in the subject of asylum.
## **Vision**
NACCOM is committed to bringing an end to destitution amongst people seeking asylum, refugees and migrants with no recourse to public funds living in the UK.
**- 2 -**
## **NACCOM**
## **Trustees' Annual Report** _**(continued)**_
## **Year ended 30 June 2021**
## **Objectives and activities (** _**continued**_ **)**
## **Mission**
NACCOM exists to promote best practice in and support the establishment of accommodation projects that reduce destitution amongst people seeking asylum. In addition, they may also support migrants with no recourse to public funds (NRPF) and / or refugees facing barriers to accessing affordable housing.
We do this by:
- Providing networking opportunities to encourage, inform and connect members.
- Sharing knowledge and promoting good practice to provide pathways out of destitution.
- Working with others (including those with lived experience) to raise awareness of destitution and campaign for a just and humane asylum system.
- Gathering and disseminating evidence on the scale of destitution and positive outcomes achieved by members
## **Strategic Goals for 2018 -2022**
NACCOM’s strategy was originally set in 2017, with some clear goals prioritised by the organisation for 2018 – 2020. A review was started in late 2020 and the consultation phase of this review was completed by early 2021. Due to the change in Director in early 2021 the development of the next strategy was paused until the new Director was in place. This work has now restarted with a new strategy due to be launched in spring 2022. The current strategy, including goals (see below), have therefore been extended until spring 2022.
Goal 1. Supporting members to become more sustainable and effective to increase the number of people they accommodate.
- Improve members’ guests access to legal advice and knowledge of support entitlements to facilitate more sustainable solutions to destitution.
- Develop a mechanism for assessing members needs and effectively responding to those needs where possible.
- Improve our online resources for members and run workshops on topics as identified in our needs assessments.
- Develop in partnership with members’ minimum standards for the delivery of different types of accommodation, using these standards to explore developing a quality mark for members’ projects.
- Develop links with funders, housing providers and relevant organisations to promote the work of members and enhance the support offered to them.
Goal 2. Enabling those with lived experience to share their insight and experiences so that working in partnership with NACCOM and other organisations, the human face of destitution has a raised profile and their opinions inform our work.
- Support those with lived experience to establish meaningful platforms to share their insight, inform our work and in particular, contribute to our communications and advocacy work.
- Develop channels for effective feedback and communication on our work from those with lived experience.
- Goal 3. Tackle the root causes of destitution through policy, lobbying and awareness raising
- Maintain a responsive advocacy strategy that is informed by members and lobbies for improvements to policy to reduce destitution. Ensure a system for monitoring outcomes of our advocacy work and feeding this back to members.
- Develop and implement a communications strategy to advance our advocacy plans and promote the work of NACCOM and its members.
- Have a method of capturing members’ data on a regular basis to ensure a reliable evidence base for our policy and lobbying work.
- Provide a channel for members to promote their work and raise awareness of the need for accommodation.
**- 3 -**
## **NACCOM**
## **Trustees' Annual Report** _**(continued)**_
## **Year ended 30 June 2021**
## **Strategic Goals for 2018 -2022 (** _**continued**_ **)**
- Goal 4. Ensure NACCOM is a well-resourced and strategic organisation
- Improve our internal database system for storing information and monitoring our work.
- Ensure we have appropriate policies and procedures, and staff are trained on their implementation.
- Develop and implement a fundraising strategy which has sustainability at the forefront.
- Diversify the board of trustees to ensure we have a wide range of skills and experience to provide effective governance and leadership.
- Ensure we have the resources required to implement our strategic plan.
## **Achievements and performance**
_Goal 1. Supporting members to become more sustainable and effective to increase the number of people they accommodate._
The past 12 months have continued to see growth in our membership numbers from 65 full members to 77 full members and a growth in our associate and ‘friends of’ members from 47 to 58.
This year’s survey results from members are viewed in the context of a full year of service delivery under the constraints of the COVID-19 pandemic. Despite the challenges and continued restrictions of the last year and the provision of national support through the ‘Everyone In’ scheme, which saw people experiencing homelessness given emergency accommodation to keep them safe during the pandemic, members have still worked with large numbers of people facing homelessness and destitution and under a form of immigration control. Over the year our members accommodated 2,771 people and provided and estimate of 413,089 nights of accommodation. 1,137 people were street homeless when they approached our members for support and 1,763 people receive financial support.
We provided strategic input and due diligence support to Migration Exchange’s Respond and Adapt Programme (RAP) in partnership with Refugee Action and facilitated the payment of grants to 66 charities valued at £697,000. NACCOM staff and trustees were not involved in deciding which charities received a grant to ensure there were no conflicts of interest. RAP was funded with support from five grant funders. It was a programme of aligned grant-making to support the UK migration and refugee sector to respond to the consequences of the COVID-19 pandemic and to work together to build a foundation for long-term recovery and system change. Over the year we worked with Refugee Action and Migration Exchange to identify specific needs and gaps in resources during the COVID-19 pandemic.
We have strengthened members’ links to key sources of accommodation and good practice, including faith groups, the mainstream homelessness sector, Refugee Action’s good practice team and the Homes for Cathy group of housing associations. Through funding from Lloyds Bank Foundation, we have been working with members and a specialist data consultant to support data understanding and usage across the membership and support NACCOM with a review of our annual survey. This work will continue into 2021-2022. We updated our membership policy and application process this year, and with funding from the National Lottery Community Fund, started work as part of a cohort of infrastructure organisations working with the Design Lab to strengthen our member engagement and offer.
The pandemic has continued to profoundly impact NACCOM’s members. Post the initial crisis phase of the pandemic (March – June 2020) the team has continued to host a fortnightly members’ call and deliver bespoke online regional and thematic hub meetings.
- In order to support members in this context the activities delivered by NACCOM included:
- A national conference in September 2020, run online for the first time comprising of a series of workshops and webinars over the course of the month, leading up to the launch of the members’ survey outputs and AGM on 28 September 2020 which over 250 people attended across the month
- Regional Hubs in all eight regions including the participation of Jo Wilding, a legal aid and immigration advice expert who was undertaking research and mapping relevant legal provision for Refugee Action
- Hosted thematic members’ events on the topics of COVID-19 and outbreaks within accommodation schemes, as well as Unconscious Bias and Post Traumatic Stress Disorder
**- 4 -**
## **NACCOM**
## **Trustees' Annual Report** _**(continued)**_
## **Year ended 30 June 2021**
## **Achievements and performance (** _**continued**_ **)**
- Contributing to the Homeless Link and Praxis Conference, aiming to strengthen the relationship between homelessness and migration practitioners.
- A session between hosting projects, Welcome Churches and Krish Kandia on a potential nationwide host recruitment initiative that would target church networks. 14 NACCOM member hosting projects attended and expressed interest, including projects with national reach. A steering group is being established to look at how a partnership can increase the number of hosts and units of accommodation.
- Provided four free “Looking After Yourself” webinars and three follow-up sessions with a registered psychotherapist for 26 NACCOM member organisations’ staff and volunteers as well as a free online Mental Health First Aid course.
_Goal 2. Enabling those with lived experience to share their insight and experiences so that working in partnership with NACCOM and other organisations, the human face of destitution has a raised profile and their opinions inform our work._
Working meaningfully with people with lived experience remains a key priority for NACCOM. Some of the ways that we have helped to facilitate the opportunity for people with lived experience of homelessness and destitution to share their insight and experiences are as follows:
- Two people shared their lived experience of destitution and the move-on period with members of the Housing, Communities and Local Government Select Committee calling for an end to NRPF restrictions on access to housing and financial support which was subsequently quoted by parliamentarians in Government policy debates on homelessness during COVID-19.
- In collaboration with Refugee Action we convened a workshop with Experts by Experience for 100+ practitioners on how to involve people with lived experience in service design and advocacy.
- With learning from our Community Reporter project we developed and started a Community Researcher project, a two-year research programme designed and led by people with lived experience of homelessness and destitution.
- The programme has successfully recruited six people with lived experience of destitution since launching in February 2021.
- The group is beginning to undertake community research around the impact of destitution and is feeding into our project with Homeless Link looking to evidence good local authority practice around preventing homelessness amongst people with NRPF. This has included two members of the Community Researcher group participating in Homeless Link webinars on NRPF.
- Members of the Community Researcher group have also participated in some research looking into framing and messaging around destitution, coordinated by partners IMIX and supported by NACCOM, which will lead to a destitution messaging guide.
- NACCOM supported people with lived experience to share their stories with selected media outlets and journalists, resulting in high profile media coverage on issues ranging from the impact of NRPF, to experiences of homelessness during the pandemic.
## _Goal 3. Tackle the root causes of destitution through policy, lobbying and awareness raising_
Our policy and advocacy work over the course of 2020 – 2021 has continued to focus on responding to COVID19, but has also included responding to the upcoming Nationality and Borders Bill and starting to explore longerterm partnerships and pieces of work to end destitution.
- NACCOM’s coordination of the campaign to end the eviction of people refused asylum from Home Office accommodation on public health grounds, contributed to the High Court decision in December 2020 to order evictions to stop.
**- 5 -**
## **NACCOM**
## **Trustees' Annual Report** _**(continued)**_
## **Year ended 30 June 2021**
## **Achievements and performance (** _**continued**_ **)**
- We had a highly successful Day of Action on 7 October 2020 for our #StopAsylumEvictions campaign, coinciding with World Homelessness Day. Over 60 organisations (including around 23 members) actively engaged with the campaign on Twitter and Facebook using the #StopAsylumEvictions hashtag.
- In January 2021 we submitted evidence to the Home Affairs Select Committee (HASC), sharing our concerns about the impact of evictions from asylum accommodation. Because at the time, evictions had only started for people with a positive decision, our submission included evidence of difficulties experienced by people with refugee status after the move-on period. We raised our concerns and recommendations through the National Asylum Stakeholder forums with Home Office officials and worked with partners across health, anti-poverty and homelessness sectors to share concerns and push for reform.
- We joined the Together with Refugees coalition when it launched in April 2021 and encouraged members to do the same. We regularly disseminate information from the coalition with our network alongside sharing insights from members with the coalition’s campaign coordination group, which we are part of.
- NACCOM convened a meeting in May 2021 with 24 organisations about the idea of a broad-based crosssector coalition framed around ending destitution. Those attending the meeting included Expert by Experience groups, refugee and migrant organisations, and homelessness and anti-poverty organisations. Work is ongoing to build consensus around a coordinated approach to end destitution.
- In January 2021, we consulted members on concerns around access to the vaccine for disproportionately impacted groups and collated these as part of a submission to the Minister for Civil Society. Since then we have supported the ‘Vaccines for All’ campaign and have worked with Doctors of the World and the Hands up for our Health coalition on joint advocacy to the Home Office to support people in asylum accommodation to access the vaccine.
## _Goal 4. Ensure NACCOM is a well-resourced and strategic organisation_
This continues to be a focus for the organisation as our membership grows.
- We continue to diversify our funding streams, through working with new funders and through securing the BBC Radio 4 Charity Appeal which will be aired in October 2021
- We continue to develop and improve our database and financial management systems
- We recruited three new trustees with a broad range of experience to bring to NACCOM, including lived experience of the asylum system, experience in policy and influencing and representation from a member organisation.
- In early 2021 we updated our membership policy and application process, and created a Membership subcommittee made up of staff and trustees that assess new applications for NACCOM membership.
- We have organised a range of training for staff on health and wellbeing, anti-racism, financial management and safeguarding.
- We have consulted with members and key stakeholders (including those with lived experience of the asylum system) as part of our strategic review.
## **Financial review**
The income and expenditure were significantly higher this year, but this is primarily due to NACCOM’s role facilitating the payment of £697,000 in funding through the Migration Exchange Respond and Adapt programme. Our role in the funding programme was to provide due diligence and administration of grants, with a separate panel, not including NACCOM, making decisions on grant awards.
Although staff headcount was nominally the same in 2020-21 as it was in 2019-20, the increase in our salary costs were higher due to maternity pay costs, recruitment and staff roles increasing in hours.
**- 6 -**
## **NACCOM**
## **Trustees' Annual Report** _**(continued)**_
## **Year ended 30 June 2021**
## **Financial review (** _**continued**_ **)**
This year we were successful in securing funding from Metropolitan Housing Trust to support our delivery of the Respond and Adapt programme, and also from the Paul Hamlyn Foundation, Unbound Philanthropy and the National Lottery Community Fund to deliver other aspects of our work. See page 19 and 20 for a description of the activities funded by each grant. NACCOM remains in a strong financial position, having increased our free reserves to £222,253 this year due to more unrestricted funding being available and reduced expenditure against budget during the pandemic. We will need to use some of these increased reserves over the coming year to address the delays to the funding pipeline during the recruitment of the permanent Director and to invest in the infrastructure of the organisation as we launch our next strategy. Our aim is to have approximately six months of operating expenditure as free reserves in line with Charity Commission guidelines.
## **Plans for future periods**
Our focus for the year ahead will be on learning from and building on the work of the excellent NACCOM team over the last year under the leadership of our new Director. We will continue to strengthen the organisation’s capacity to support members’ in the establishment and delivery of accommodation projects by recruiting an additional Network Development Worker so that members can be more proactively supported to address emerging issues and continue to respond to destitution in their area.
Our policy and advocacy strategy will continue to focus on ending destitution and will involve a mix of supporting members in their local advocacy and influencing work and ensuring that our members’ experiences are part of the national advocacy story through our partnership with the Together with Refugees Coalition, particularly in relation to influencing the Nationality and Borders Bill. We will continue to explore an End Destitution Coalition with other partners ensuring that people with lived experience have a platform to lead and influence this work and our strategy more generally, providing opportunity for them to raise awareness of the damaging effects of destitution.
We will finish the development our new strategy ready for launch in spring 2022 to ensure that NACCOM builds on the work to date, plays to its strengths and complements the work of other partners. The smooth transition of the role of Chair of Trustees will be a key focus leading up to our AGM in November 2021. Subject to approval by our members at our AGM our Board will be strengthened with the addition of three new trustees adding complementary skills and experience to increase the Board’s diversity and governance.
The trustees' annual report was approved on 15[th] October 2021 and signed on behalf of the board of trustees by:
**- 7 -**
## **NACCOM**
## **Independent Examiner's Report to the Trustees of NACCOM**
## **Year ended 30 June 2021**
I report to the trustees on my examination of the financial statements of NACCOM ('the charity') for the year ended 30 June 2021.
## **Responsibilities and basis of report**
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner's statement**
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales (ICAEW), which is one of the listed bodies.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or
2. the financial statements do not accord with those records; or
3. the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Rachael Oswald ACA STEPHENSON COATES AUDIT LIMITED Chartered accountants
West 2, Asama Court Newcastle Business Park Newcastle upon Tyne NE4 7YD
15[th] October 2021
**- 8 -**
## **NACCOM**
## **Statement of Financial Activities**
## **30 June 2021**
||||**2021**||2020|
|---|---|---|---|---|---|
|||Unrestricted|Restricted|||
|||funds|funds|**Total funds**|Total funds|
||**Note**|**£**|**£**|**£**|£|
|**Income and endowments**||||||
|Donations and legacies|**4**|133,590|860,275|**993,865**|277,953|
|Charitable activities|**5**|–|–|–|1,834|
|Other trading activities|**6**|1,190|–|**1,190**|1,245|
|||----------------------------|--------------------------------|--------------------------------|--------------------------------|
|**Total income**||134,780|860,275|**995,055**|281,032|
|||============================|================================|================================|================================|
|**Expenditure**||||||
|Expenditure on raising funds:||||||
|Costs of raising donations and||||||
|legacies|**7**|–|4,248|**4,248**|3,451|
|Expenditure on charitable activities|**8,9**|78,834|875,669|**954,503**|206,492|
|||----------------------------|--------------------------------|--------------------------------|--------------------------------|
|**Total expenditure**||78,834|879,917|**958,751**|209,943|
|||============================|================================|================================|================================|
|||----------------------------|--------------------------------|--------------------------------|--------------------------------|
|**Net income and net movement in funds**||55,946|(19,642)|**36,304**|71,089|
|||============================|================================|================================|================================|
|**Reconciliation of funds**||||||
|Total funds brought forward||166,307|127,545|**293,852**|222,763|
|||----------------------------|--------------------------------|--------------------------------|--------------------------------|
|**Total funds carried forward**||222,253|107,903|**330,156**|293,852|
|||============================|================================|================================|================================|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
**The notes on pages 12 - 20 form part of these financial statements.**
**- 9 -**
## **NACCOM**
## **Statement of Financial Position**
## **30 June 2021**
|||**2021**||2020|
|---|---|---|---|---|
|||**£**|**£**|£|
|**Current assets**|||||
|Debtors|**13**|**14,938**||1,733|
|Cash at bank and in hand||**484,115**||294,889|
|||--------------------------------||--------------------------------|
|||**499,053**||296,622|
|**Creditors: amounts falling due within one year**|**14**|**168,897**||2,770|
|||--------------------------------||--------------------------------|
|**Net current assets**|||**330,156**|293,852|
||||--------------------------------|--------------------------------|
|**Total assets less current liabilities**|||**330,156**|293,852|
||||--------------------------------|--------------------------------|
|**Net assets**|||**330,156**|293,852|
||||================================|================================|
|**Funds of the charity**|||||
|Restricted funds|||**107,903**|127,545|
|Unrestricted funds|||**222,253**|166,307|
||||--------------------------------|--------------------------------|
|**Total charity funds**|**16**||**330,156**|293,852|
||||================================|================================|
These financial statements were approved by the board of trustees and authorised for issue on 15[th] October 2021, and are signed on behalf of the board by:
**The notes on pages 12 - 20 form part of these financial statements.**
**- 10 -**
## **NACCOM**
## **Statement of Cash Flows**
## **Year ended 30 June 2021**
||**2021**|2020|
|---|---|---|
||**£**|£|
|**Cash flows from operating activities**|||
|Net income|**36,304**|71,089|
|_Adjustments for:_|||
|Other interest receivable and similar income|**–**|**–**|
|_Changes in:_|||
|Trade and other debtors|**(13,205)**|(1,001)|
|Trade and other creditors|**166,127**|(6,276)|
||----------------------------|--------------------------------|
|Cash generated from operations|**189,226**|63,812|
|Interest received|**–**|**–**|
||----------------------------|--------------------------------|
|Net cash from/(used in) operating activities|**189,226**|63,812|
||============================|================================|
|**Net increase/(decrease) in cash and cash equivalents**|**189,226**|63,812|
|**Cash and cash equivalents at beginning of year**|**294,889**|231,077|
||--------------------------------|--------------------------------|
|**Cash and cash equivalents at end of year**|**484,115**|294,889|
||================================|================================|
**The notes on pages 12 - 20 form part of these financial statements.**
**- 11 -**
## **NACCOM**
## **Notes to the Financial Statements**
## **Year ended 30 June 2021**
## **1. General information**
The charity is registered charity in England and Wales and is a charitable incorporated organisation. The address of the principal office is Youth Resource Centre, Oxford Street, Whitley Bay, Tyne and Wear, NE26 1AD.
## **2. Statement of compliance**
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011.
## **3. Accounting policies**
## **Basis of preparation**
The financial statements have been prepared on the historical cost basis.
The financial statements are prepared in sterling, which is the functional currency of the entity.
## **Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Whilst Covid-19 does create some uncertainty for future years, the trustees have updated forecasts and believe that the actions taken by the charity will mitigate this and are confident that the charity has sufficient working capital to meet its liabilities as they fall due for a period of at least 12 months from the date of approval of the financial statements. Therefore, the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **Judgements and key sources of estimation uncertainty**
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
## **Fund accounting**
Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.
Designated funds are unrestricted funds earmarked by the trustees for particular future projects or commitments.
Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.
**- 12 -**
**NACCOM**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 30 June 2021**
## **3. Accounting policies** _**(continued)**_
## **Incoming resources**
All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
- income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
- legacy income is recognised when receipt is probable and entitlement is established.
- income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
- income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
## **Resources expended**
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
- expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.
- expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
- other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
Grants payable are:
- Agreed grants paid during the year.
- Grants agreed during the year but paid after the year end.
**- 13 -**
## **NACCOM**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 30 June 2021**
## **3. Accounting policies** _**(continued)**_
## **Financial instruments**
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
Debt instruments are subsequently measured at amortised cost.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.
Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
## **Defined contribution plans**
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.
## **Voluntary assistance**
Time is expended on the charity’s activities and governance which is donated free of charge. It is impractical to quantify the value of the time given, and accordingly it is neither recorded as donated income nor as an expense in the financial statements.
## **4. Donations and legacies**
|**Donations and legacies**||||
|---|---|---|---|
||Unrestricted|Restricted|**Total Funds**|
||Funds|Funds|**2021**|
||£|£|**£**|
|**Gifts**||||
|Gifts|3,747|–|**3,747**|
**- 14 -**
## **NACCOM**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 30 June 2021**
## **4. Donations and legacies** _**(continued)**_
|**4.**|**Donations and legacies** **_(continued)_**|||||
|---|---|---|---|---|---|
||||Unrestricted|Restricted|**Total Funds**|
||||Funds|Funds|**2021**|
||||£|£|**£**|
||**Grants**|||||
||Esmee Fairbairn Foundation||47,917|–|**47,917**|
||Homeless Link (Lloyds Foundation)||5,060|–|**5,060**|
||Lloyds Bank Foundation||–|57,622|**57,622**|
||Metropolitan Housing Trust||–|50,000|**50,000**|
||The National Lottery Community Fund||–|18,653|**18,653**|
||Paul Hamlyn Foundation||–|35,000|**35,000**|
||Respond & Adapt Programme (RAP)||–|697,000|**697,000**|
||The Sam & Bella Sebba Charitable Trust||10,000|–|**10,000**|
||The Tudor Trust||12,500|2,000|**14,500**|
||Unbound Philanthropy||45,833|–|**45,833**|
||**Subscriptions**|||||
||Members subscriptions||8,533|–|**8,533**|
||||--------------------------------|--------------------------------|--------------------------------|
||||133,590|860,275|**993,865**|
||||================================|================================|================================|
||||Unrestricted|Restricted|Total Funds|
||||Funds|Funds|2020|
||||£|£|£|
||**Gifts**|||||
||Gifts||5,263|–|5,263|
||**Grants**|||||
||AB Charitable Trust||20,000|–|20,000|
||Allen Lane Foundation||10,000|–|10,000|
||Big Lottery Fund 'Awards for All'||–|9,990|9,990|
||Esmee Fairbairn Foundation||50,000|–|50,000|
||Lloyds Bank Foundation||–|39,782|39,782|
||Metropolitan Housing Trust||–|4,800|4,800|
||Paul Hamlyn Foundation||20,000|50,000|70,000|
||Respond & Adapt Programme (RAP)||–|–|–|
||The Sam & Bella Sebba Charitable Trust||20,000|–|20,000|
||The Tudor Trust||–|40,700|40,700|
||**Subscriptions**|||||
||Members subscriptions||7,418|–|7,418|
||||----------------------------|--------------------------------|--------------------------------|
||||132,681|145,272|277,953|
||||============================|================================|================================|
|**5.**|**Charitable activities**|||||
|||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|||Funds|**2021**|Funds|2020|
|||£|**£**|£|£|
||Conference income|–|–|1,834|1,834|
|||=======================|=======================|=======================|=======================|
**- 15 -**
## **NACCOM**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 30 June 2021**
## **6. Other trading activities**
|**Other trading activities**|||||
|---|---|---|---|---|
||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
||Funds|**2021**|Funds|2020|
||£|**£**|£|£|
|Events|360|**360**|1,245|1,245|
|Other income|830|**830**|–|–|
||----------------------------|**--------------------------------**|--------------------------------|----------------------------|
||1,190|**1,190**|1,245|1,245|
||=======================|=======================|=======================|=======================|
|**Costs of raising donations and legacies**|||||
||Restricted|**Total Funds**|Restricted|Total Funds|
||Funds|**2021**|Funds|2020|
||£|**£**|£|£|
|Fundraising|4,248
=======================|**4,248**
=======================|3,451
=======================|3,451
=======================|
## **7. Costs of raising donations and legacies**
## **8. Expenditure on charitable activities by fund type**
|**Expenditure on charitable activities by fund type**||||
|---|---|---|---|
||Unrestricted|Restricted|**Total Funds**|
||Funds|Funds|**2021**|
||£|£|**£**|
|Annual conference and networking events|126|3,620|**3,746**|
|Staff costs & related expenses|64,976|156,101|**221,077**|
|Other activities|8,059|10,203|**18,262**|
|Respond & Adapt Programme (RAP)|–|697,000|**697,000**|
|Marketing and communications|2,182|2,105|**4,287**|
|Support costs|3,491|6,640|**10,131**|
||----------------------------|--------------------------------|--------------------------------|
||78,834|875,669|**954,503**|
||============================|================================|================================|
||Unrestricted|Restricted|Total Funds|
||Funds|Funds|2020|
||£|£|£|
|Annual conference and networking events|309|8,962|9,271|
|Staff costs & related expenses|45,889|120,957|166,846|
|Other activities|5,990|7,583|13,843|
|Respond & Adapt Programme (RAP)|–|–|–|
|Marketing and communications|2,590|2,498|5,088|
|Support costs|3,980|7,464|11,444|
||----------------------------|--------------------------------|--------------------------------|
||58,758|147,734|206,492|
||============================|================================|================================|
**- 16 -**
## **NACCOM**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 30 June 2021**
## **9. Expenditure on charitable activities by activity type**
||Activities|||
|---|---|---|---|
||undertaken|**Total funds**|Total fund|
||directly|**2021**|2020|
||£|**£**|£|
|Annual conference and networking events|3,746|**3,746**|9,271|
|Staff costs & related expenses|221,077|**221,077**|166,846|
|Other activities|18,262|**18,262**|13,843|
|Respond & Adapt Programme (RAP)|697,000|**697,000**|-|
|Marketing and communications|4,287|**4,287**|5,088|
|Support costs|10,131|**10,131**|11,444|
||--------------------------------|**--------------------------------**|--------------------------------|
||954,503|**954,503**|206,492|
||================================|================================|================================|
|**Independent examiner’s fees**||||
|||**2021**|2020|
|||**£**|£|
|Fees payable to the independent examiner for:||||
|Independent examination of the financial statements||**1,250**|900|
|||==============|==============|
|**Staff costs**||||
|The total staff costs and employee benefits for the reporting|period are analysed as follows:|||
|||**2021**|2020|
|||**£**|£|
|Wages and salaries||**174,920**|143,406|
|Social security costs||**14,616**|9,182|
|Employer contributions to pension plans||**9,982**|9,508|
|||--------------------------------|--------------------------------|
|||**199,518**|158,645|
|||================================|================================|
## **10. Independent examiner’s fees**
## **11. Staff costs**
The average head count of employees during the year was 8 (2020: 8).
No employee received employee benefits of more than £60,000 during the year (2020: Nil).
## **12. Trustee remuneration and expenses**
No remuneration or other benefits from employment with the charity or a related entity were received by the trustees.
During the year £122 (2020: £1,910) was reimbursed to Trustees for expenses relating to travel, accommodation and subsistence.
## **13. Debtors**
||**2021**|2020|
|---|---|---|
||**£**|£|
|Trade debtors|**1,516**|1,733|
|Other debtors|**13,422**|–|
||--------------------------------|--------------------------------|
||**14,938**|1,733|
||================================|================================|
**- 17 -**
## **NACCOM**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 30 June 2021**
## **14. Creditors: amounts falling due within one year**
|**Creditors:** **amounts falling due within one year**|||
|---|---|---|
||**2021**|2020|
||**£**|£|
|Trade creditors|**79**|55|
|Social security and other taxes|**9,382**|1,852|
|Other creditors|**159,436**|863|
||-----------------------|-----------------------|
||**168,897**
=======================|2,770
=======================|
Included within Other creditors is £154,838 (2020: Nil) of deferred income from grants received in advance of the work being performed, details of which are noted below:
|Esmee Fairbairn Foundation|27,083|
|---|---|
|Paul Hamlyn Foundation|30,000|
|The Tudor Trust|12,500|
|Unbound Philanthropy|54,167|
|The National Lottery Community Fund|31,088|
||-----------------------------------------|
||154,838
==========================================|
## **15. Pensions and other post-retirement benefits**
## **Defined contribution plans**
The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £9,982 (2020: £9,330).
**- 18 -**
## **NACCOM**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 30 June 2021**
## **16. Analysis of charitable funds**
## **Unrestricted funds**
|**Unrestricted funds**|||||
|---|---|---|---|---|
|||||**At**|
||At 1 July 2020|Income|Expenditure|**30 June 2021**|
||£|£|£|**£**|
|General funds|166,307|134,780|(78,834)|**222,253**|
||============================|================================|============================|============================|
|**Restricted funds**|||||
|||||**At**|
||At 1 July 2020|Income|Expenditure|**30 June 2021**|
||£|£|£|**£**|
|Big Lottery Fund 'Awards for All' fund|82|–|(82)|–|
|Esmee Fairbairn Foundation|(51)|–|51|–|
|Guardian and Observer Winter Appeal|45,430|–|(45,430)|–|
|Lloyds Bank Foundation|21,942|57,622|(27,875)|**51,689**|
|Metropolitan Housing Trust|3,610|50,000|(31,381)|**22,229**|
|The National Lottery Community Fund|–|18,653|(7,363)|**11,290**|
|Paul Hamlyn Foundation|25,000|35,000|(39,305)|**20,695**|
|Respond & Adapt Programme (RAP)|–|697,000|(697,000)|–|
|The Tudor Trust|31,532|2,000|(31,532)|**2,000**|
||--------------------------------|--------------------------------|--------------------------------|--------------------------------|
||127,545|860,275|(879,917)|**107,903**|
||================================|================================|================================|================================|
|**Unrestricted funds**|||||
|||||**At**|
||At 1 July 2019|Income|Expenditure|**30 June 2020**|
||£|£|£|**£**|
|General funds|89,305|140,560|(63,558)|**166,307**|
||============================|================================|============================|============================|
|**Restricted funds**|||||
|||||**At**|
||At 1 July 2019|Income|Expenditure|**30 June 2020**|
||£|£|£|**£**|
|Big Lottery Fund 'Awards for All' fund|–|9,990|(9,908)|**82**|
|Esmee Fairbairn Foundation|10,475|–|(10,526)|**(51)**|
|Guardian and Observer Winter Appeal|78,430|–|(33,000)|**45,430**|
|Lloyds Foundation|–|39,782|(17,840)|**21,942**|
|Metropolitan Housing Trust|–|4,800|(1,190)|**3,610**|
|Paul Hamlyn Foundation|25,000|50,000|(50,000)|**25,000**|
|The Tudor Trust|19,553|40,700|(28,721)|**31,532**|
||--------------------------------|--------------------------------|--------------------------------|--------------------------------|
||133,458|145,272|(151,185)|**127,545**|
||================================|================================|================================|================================|
Big Lottery Fund 'Awards for All' fund – Awards for all grant towards making a film to showcase member organisations projects in Birmingham and raise awareness about destitution. To fund a residential training in story telling bringing 12 people who have experienced destitution to learn and share their experiences.
Esmee Fairbairn Foundation – Core costs to support organisations providing accommodation for asylum seekers, refugees and migrants, highlighting the injustices they face, and influencing policy to end practices which make them destitute.
**- 19 -**
## **NACCOM**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 30 June 2021**
Guardian and Observer Winter Appeal – Core costs towards supporting member organisations to reduce destitution amongst people seeking asylum and to support NACCOM to improve its infrastructure.
Lloyds Bank Foundation – restricted funds to support refugee and asylum seeker charities to influence change through policy, advocacy and evidence collection.
Metropolitan Housing Trust – Restricted funds to support refugee and asylum seekers with hardship funds during the Covid-19 crisis and separate funding to support our delivery of the Respond and Adapt programme.
The National Lottery Community Fund - One-year funding as part of a cohort of infrastructure organisations to work with the Design Lab to strengthen our member engagement and offer.
Paul Hamlyn Foundation – Core costs towards salaries to support NACCOM to reduce and prevent destitution amongst people seeking asylum, refugees and migrants with no recourse to public funds.
Respond & Adapt Programme (RAP) - Funding from the Migration Exchange and in partnership with Refugee Action to support organisations to respond to the consequences of the COVID-19 pandemic and to work together to build a foundation for long-term recovery and system change.
The Tudor Trust – Towards core salary costs to strengthen the infrastructure of NACCOM enabling them to carry out their aim of reducing destitution. Also an HR support grant and Covid-19 wellbeing grant to NACCOM.
## **17. Analysis of net assets between funds**
||Unrestricted|Restricted|**Total Funds**|Total Funds|
|---|---|---|---|---|
||Funds|Funds|**2021**|2020|
||£|£|**£**|£|
|Current assets|391,150|107,903|**499,053**|296,622|
|Creditors less than 1 year|(168,897)|–|**(168,897)**|(2,770)|
||--------------------------------|--------------------------------|--------------------------------|--------------------------------|
|**Net assets**|222,253|107,903|**330,156**|293,852|
||================================|================================|================================|================================|
||Unrestricted|Restricted|**Total Funds**|Total Funds|
||Funds|Funds|**2020**|2019|
||£|£|**£**|£|
|Current assets|169,077|127,545|**296,622**|231,892|
|Creditors less than 1 year|(2,770)|–|**(2,770)**|(8,500)|
||--------------------------------|--------------------------------|--------------------------------|--------------------------------|
|**Net assets**|166,307|127,545|**293,852**|223,392|
||================================|================================|================================|================================|
## **18. Related parties**
During the year, NACCOM paid out £697,000 as part of the work with the Respond & Adapt Programme (RAP). NACCOM’s staff and trustees were not involved in deciding which charities received a grant, as such there are no related party transactions to note from this activity in the year.
During the year, Trustees donations totalled £Nil ( _2020: £Nil_ ).
There were no other related party transactions during the year ended 30 June 2021 to report.
**- 20 -**