Char•ty number: 1172481 Company number: 10152838 Safe Places for Children professional care, guaranteed outcomes SAFE PLACES FOR CHILDREN UK FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021 •A8DKAD89• 3010912022 COMPANIES HOUSE
SAFE PLACES FOR CHILDREN UK CONTENTS Page Trustees and Administrative Infomiation Trustees, Report Independent Auditor's Report Statement of Financial Activities li Balance Sheet 12 Cash Flow Statement 13 Note5 to Financial Statements 14
SAFE PLACES FOR CHILDREN UK TRUSTEES ANO ADMINisfRATIVE INFORMATION Trustees Keith Mason (resigned 11 April 2022. appointed 6 July 20221 Christopher Saunders Maninder Singh Anthony Thomp50n {appointed 22 March 2022, resigned 25 August 20221 Office address Safe Places for Childn UK First Floor Triad House Mountbatten Court Worrall Street Congleton Cheshire CW12 IDT Independent Auditor Saffery Champness LLP Mrire House N Park Rd Harrogate HGI 5RX Bankers Royal Bank of Scotland Western Avenue Chatham ME4 4RT Solicitors Veale Wasbrough Viiards LLP Narrow Quay House NaTrowQuay Bristol BSI 4QA Page I
SAFE PLACES FOR CHILDREN UK TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 Trustees, Repwt The trustees. who are also directors of the charrty forthe purposes of the Companies Act 2C6. are pleased to present their annu31 trustees, report togetherwith the financial statements forthe yearto 31 December 2021 which are also prepared to meet the requirements for a directors, report and accounts for Companies Act purposes. The financial statements comply with the Charities Act 2011. the Companies Act 2006, the Memorandum and Articles of Associ8tion, and Accounting and Reporting by Charrties- Statement of Recommended Practice applicable to charities preparingtheir actounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. Objectives and activities The charbty's objectives are: The relief of- children, young adults and disabled people in need- and the families of children, young adults and disabled people in need in particular but not extlusrve by providing residential, therapeutic and rehabilttation services and family support services,. bl the relief of those in need by reason of financial hardship. ill health. disability. youth, age or other disadvantage- and the advancement of such other objects or purposes in any part of the world which are exclusive charitable according to the law of England and Wales and are in the opinion of the trustees connected with children. young adults ordisabled people in need in such manneras thetrustees may in their absolute discretion think fit. The purposes of the charity a= To providetherapeutit SidentIal care of high needs children. young adufts and disabled people. providing rehabilitation services in addition to the immediate needs of the youn8 people. In addition, we seek io use the experiences and knowledge gained working with traurnati5ed young people in other locations io bring about improvements in the efficiency and effectivene55 of other organisations workin8 in this sector. Working wwth the local èuthorities and departments. we aim to raise the standards and the quality of care delivered to all high needs young people by the various agencies and charilies. -The objectives for this year are:_" To continue to develop a team of educated. excellent, enthusiastic stsff to guide young people along a personal growth iourney. To select and appropriately fit out houses within the communrty to provide accommodation forthe young people in a way that facililates their ca. safety and rehabilitation. To institute trainin& review and verification programs to ensure the highest possible standard of care is provided. Page 2
SAFE PiACES FOR CHILDREN UK TRUSTEES, REPORT FOR THE YEAR ENDED 310ECEMBER 2021 Funding We have established working relationshipswith various Trustees of the Health and Social Care trusts in a range of jurisdictions in Northern Irelènd and England. We have broad agreement on the pring Structu and cosl recovery models for caring for young people in their custody. We have suctessfully established England operation5 and expanded Northern Ireland operations despite the impact of COVID-19. We have detemiined that we can pro¥bJe the appropriate 5ervites at the best cost to ensure the viability of Safe Places for Children UK. Fundraising The Trustees take their responsibilities under the Charities {Protectn and Social Investment) Act 2016 seriously and have considered the implications on their aclivf(ies. The charity does not actNety raise funds or solicit donations directly from the general public at present. The charity does not work direLtly with commercial sponsors in rektion to fundraising. The Trustees are not aware of any complaints made in respect of fundraising during the period. Public Benefit In planning the activities for the year to meet the charitsble objects. the truslees have complied with their duties in Sertion 17 of the Charities Act 2011 and have considered the Charity Commission'5 general guidance on public benefit. Financial Review The charity received income of £1,787,80512020- £1,374,990). There was an increase in income compared to 2020 as the charity took on more contracts to provide service5 to local authorities. Expenditure of £1,871.326 12020 - £1,520,362) was incurred in relation to the charit5 operations. The operations included therapeutic residential services and ancillary activities. Reserves policy The charty held a deficit on unrestricted funds of £1.103.961 as at 31 December 2021 12020 - deficit of £1,020,440). The charity recognises the need to have positive unre5tricled funds and is taking Steps to achieve this in due course. The charity exF*rts to eNe continued support from the connetted tharity Safe Places for Children Secretariat. FundTaising The Trustee5 take their responsibilities under the Charities (Protection and Social Investmentl Act 2016 seriously and have considered the implications on their fundraising activities. The Chartty does not engage in fundraising activity nor does it petition any donations from members of the general public and does not work w¢th any third-party commercial fundraiser. The Trustees are not aware of any fundraising complaints made in respect of the financial year. Page 3
SAFE PLACES FOR CHILDREN UK TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 Golng Concem We were supported during start.up by the parent organisation, Safe Places for Children Secretariat. and by the Australian not-for-profit Safe Places Community Services Limtted. These organisations continue to provide backup funding, management expertise, ernergency staffing requirements and administrative support. With these arrangement5 in pla, we are able to continue establishing our presence in the industry and bring better outcomes for young people. The charity recognises the need to have p05ittve unrestricted funds and is taking steps to achieve this in due course. The charity expects to receive continued support from the connerted charity Safe Places for Children Secretariat. The Truslees have VIeWed cash flow forecasts for 2022 and 2023 in order to consider going concern and are confident that the eharbty will have the resources available to rt that it will need for at least the 12 months following the approval of these financial statements. Thus. the Trustees continue to adopt the going concern basis of xcounting in preparing the financial Statements. Risk management The trustees have a risk management stratw whKh comprises: monthly review an(J check to ensure standards are maintained. policie5 upheld and procedures followed in both practical application and documentatM)n.' ongoing work by a dedicated Quality and Systems team,. ongoing work by team reviewing documentation. licencing and other qUirementS for working in this hr8hly regulated industry- an annual review of the principal risks and uncertainties that the charity faces. including financial risks,. the establishment of policies. 5yStern5 and procedure5 to mitigate those risks entifIed in the annual review: and the implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise. This work has identified that barrie to entry is the major financial risk for the charity. The approach of Safe Places for Children LIK is different frorn those used by other Organisatn5 in residential care. and requires changes in thinking in the funding and placement agencies. Attention has-also been.focussed.on non-financial-risks arising from fire,-health and'safety of staff and young people. These risks are managed by ensuring accreditation is up to date. having robust policies and prodUleS in place. and regular awareness training for staff working in these operational aa5. Future Plans Since the financial year end, we have made stgnificant progress in continuing to establish the organisation as premium provider of therapeutic care. We have secured placement5 in both Northern Ireland and England,. with plans undernay for expansion in Northern Ireland by early 2023. and this will help to improve our overall financial position and double the revenue for Northern Ireland. Page 4
SAFE PLACES FOR CHILDREN UK TRusfEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 We continue to invest in our relationships With Cheshire East Council and the Trusts in Northern Ireland. We continue to receive payrnents a5 per the agreed sthedule. During the 2021 financial year, we setured OFSTED approvals for multiple Cheshire platements for our Crewe and Maccle5field properties and are in discussions about future placements in the Cheshire East area. We have also established our head office in Congleton ak)ng with a training room for in-house induction and training. Sage Places for Children UK is also in discussions with Lancashire County Council and St Helens Council regarding future placement needs and how we can asslst them to support their local children and young people. Strtrtture. Governance & Management Constitution The charity is constituted as a company limited by guarantee and was intorporated on 28 April 2016. 11 is governed by its Memorandum and Articles of Association. There 15 currently one member. The charity was registered with the Charity Commission on 7 April 2017. Appointment of trustees A5 set out in the Artitles of A550ciation the trustees are nominated by Safe Place5 for Children Secretariat. Trustee irjdurtion ond training The trustees have undergone orientation to brief them on their legal obligations under charity and companv law, the Charity Commission guidance on public benefrt, and infomi them of the content of the Memorandum and Articles of AssociatK)n, the committee and decision-making processes, the business plan and recent financial performance of the charity. Reloted parties ond co-operotion with other orgonisotion5 None of our trustees receive remuneration or other benefit from their work as a trustee wtth the charity. Any connection between a trustee or senior manager of the charity with an employee or contractor must be disclosed to the full board of trustees in the same way as any other conlrartual relatnShip with a related partv. The charrf(y has a close relationship with Safe Places Community ServKes Limited in Australia, a non-profit with extensive experience and successes in the care and rehabilitation of troubled young people, and Safe Places for Children Secretariat (Registered Charity Number 11734491 the UK charit¢s parent. Safe Places Community Services Limited provides administration support. training and advice, as well as providing funding for the establishment phase of Safe Places for Children UK. The charity has not been asked to repay any of these funds, and we have assurances that paYment will be quired onty as and when the charity has capacty to pay. Our view is that Safe Places Communities Services Limited and the charrty are connected parties pursuant to the Australian accounting standards and the United Kingdom accounting standard5. P¢7ypoIicyforni0rstoff The pay of the senior staff is vrewed annually and normally increased in accordance with average earnings, subject to market comparative review. Page 5
SAFE PLACES FOR CHILDREN UK TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 Trustees Responslblllties The trustees (who are also directors of the charity for the purposes of company lawl are responsible for preparing the Trustee5' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally ACpted Accounting Practice). Company law requires the tnistees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resource5, including the income and e¥pendrture, of the charitable company for that period. In preparing these financial statements. the trustees a required to.. select suitable accounting policies and then app them consistently,. ObSee the meth¢xls and principles in the Charities SORP IFRS 1021- make judgements and estimates that are reasonable and prudent: State whether applitable accounting standards have been followed. subject to any material departures disclosed and explained in the financial statements- and prepafethe financial statements on the goingconcern basis unless it is inappropriate to presume that the charity will tontinue in business. The trustees are responsible for keeping proper accounting records that disck)se with reasonable accuracy at any time the financial position of the charrtable company and enable them to ensure that the financial statements comply with the Companie5 Act 2006. They are also responsible for safeguarding the a55ets of the charitable company and hence fortakin8 reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware: Ihere is no relevant audit information of which the charitable compan5 auditor is unaware; and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is awafe of that information. This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. Signed on behalf of the Trustees on 20 September 2022. Keith Mason Trustee Company Number 10152838 Registered office: Triad House. Mountbatten Court. Worrall Street. Congleton. Cheshire. CW12 IOT Page 6
SAFE PLACES FOR CHILDREN UK INDEPENDE AUDITOR'S REPORTTO THE TRUSTEES OF SAFE PLACES FOR CHILDREN UK FOR THE YEAR ENDED 31 DECEMBER 2021 Opinlon We have audited the financial statements of Safe Places forchildren UK for the year ended 31 December 2021 which comprise the Statement of Financial Actrvities. the Balance Sheet, the Cash Flow Statement and the notes to the financial statements, including significant accounting policies. The financial reportlng framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102. the Financial Reporting Standard applKable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements- give a true and fair view of the charitable cornpans state of affairs as at 31 December 2021 and of its incoming resources and application of resources. including tts income and expenditure, for the vear then ended- have been propedy prepared in accordance with United Kingdom Generally Accepted Accounting Praclice; and have been prepared in accordance with the Companies Act 2006. Ba$1$ for opinion We conducted our audit in accordance with InternatnaIStandardS on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordanee wrth the ethical requirements that a relevant to our audit of the financial statemerbts in the UK, including ihe FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities irh accordance with these reQuirnents. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basi5 for our opinion. Conclusions rèling 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 approprtate. Based on the work we have performed. we have not identrfied any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going Conrn 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 Wbth respect to goin8 concern are described in ihe relevant sections of this pOrt. oiher information The trustees are responsible for the other information. The other informatK)n comprises the information included in the annual report. other than the financial statements and our auditorf5 report thereon. Our opinion on the financial statements doe5 riot cover the othei information and, except to the extent otherwise explicitly stated in our report. we do not express any fomi of assurance tonclusion thereon. Page 7
SAFE PLACES FOR CHILDREN UK INDEPENDENT AUDITOVS REPORT TO THE TRuEESOF SAFE PiACE5 FOR CHILDREN UK FOR THE YEAR ENDED 31 DECEMBER 2021 Jr responsibility is to re the other infomiatk)n and. in doing so. consider whether the other information is materially inconsistent with the financial statements or our knowse obtained in the course of the audit or otherwise appear5 to be materialty misstated. If we identfy such material incon5iStencies or apparent material misstatements. we are required to determine whether this gives rtse to a material misstatement in the financial statements thernselves. If. based on the work we have performed. we conclude that there is a material misstatement of this other information we are required to rert that fact. We have nothing to report in this re8ard. Opinions on other Matters prescribed by the Companies Art 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Trustees. Report which includes the Director5, Report for the financial year for which the financial statements are prepad is consistent with the financial statements- and the Trustees, Report which includes the Directors. Report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the charitable company and r15 environment obtained in the course of the audit, we have not identified material missiJiements in the Trustees, Annual Rewrt. We have nothing to report in respert of the following matters where the Companies Act 2006 requires us to report to you rf. in our opinion.. adequate accounting records have not been kept. or returns adequate for our audit have not been received from branches not visited by us.. or the financial statements a not in agreement with the accounting records and retums- or certain distlosure5 of trustees. reMUneratrt specfvd by law are not made: or we have not received all the information and explanations we require for our audit,. or the trustees were not entitled to prepare the financial statements in accordance with the small ompanies regime and to take advantage of the small companies exemption in preparing the Trustees, Report and the Strategic fteport. Responsibilities of trustees As explained more fully in the Trustees. Responsibilit$ Statement set out on paee 6. the trustees Iwho are also dirertors of the charitable company for the purpose5 of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as.the trustees.determine is necessary-to enable-thei)reparation of financial statements-that"are"fre from material misstatement, whether due to fraud or error. In preparing the financial statements. the trustee5 are responsible for as5es5in8 the charitable company'5 ability to continue as a going concern, disclosin& as applicable, matters related to going concern and usingthe going concern basis of accountin8 unless the trustees either intend to liquidate the charitable company or to ase operations, or have no realistic alternative to do 50. Page 8
SAFE PLACES FOR CHILDREN UK INDEPENDENT AUDITOR'S REPORT TO THE TRusfEES OF WE PLACES FOR CHILDREN UK FOR THE YEAR ENDED 31 DECEMBER 2021 Auditorf$ responsibilities for the audit of the financial statements We have been appointed as auditors underthe CompaniesAct 2(M)6 and report in accordance with reeulations made underthat Art. Our objectives are to obtain reasonable assurance aut whether the financial statements as a whole are free from material misstatement, whether dye to fraud or error. and to issue an auditorfs report that includes our opinion. Reasonable a5surante is a high level of assurance. but is not a guarantee that an audit conducted in accordance with I IUKI will always detect a material misstatement when it exists. Mi5Statements 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 basi5 of these financbal statements. Irregularities, including fraud. are instances of non-compliance with laws and regulation5. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities. including fraud. The specrfit prdureS for this engagement and the extent to whith these are capable of detecting irregularities, bncluding fraud are detailed below. Identifying and assessing risks related to irregularities= We assessed the susceptibility of the charitable companrfs financial statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meetin& updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of SignifanCe in the context of the charitable company by discussions wrth trustees ènd updatTrng our understanding of the sector in which the charitable company operates. Laws and regulations of direct significance in the context of the charitable company include The Companies 2C6. and guidance issued by the Charity Commission for England and Wales. Further, the charitable company is wbject to other laws and regulations where the consequences of non- compliance could have a material effed on amounts or disclosures in the financial statements, Ihrough material fine, litigation or restrictions on the charitable company's operations. We identified the m05t significant other laws and regulations to be specrfic qUirementS as found in the Education and Skills Act 2008 and the Childcare Act 26 and guidance issued by Ofsted and the Regulator and Quality Improvement Authorty. Audit response to risks identthed= We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement ttems including a review of financial st8tement disclosures. We reviewed the charitable company's records of breache5 of laws and regulations, minutes of meetings and correspondence with levant authorities to identify potential material misstatements arbsing. We discussed the charitable company's policies and procedures foT compliance with law5 and regulation5 With members of mana8ement responsible for compliance. Page 9
SAFE PLACES FOR CHILDREN UK INDEPENDENT AUDITO5 REPORT TO THE TRUSTEES OF SAFE PLACES FOR CHILDREN UK FOR THE YEAR ENDED 31 DECEMBER 2021 During ihe planning meeting with the audit team. the engagement partner drew attention to the key areas which might invofve non-complrance with laws and regulations or fraud. We enquired of management whether they were aware of any InStanS of non-compliance with laws and regulations or knowledge of any actual. suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of Journal entries and identtfying any Significant transaLlions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. Al the completion stage of the audit, the engagement partnerfs review included ensuring that the team had approached their work with appropriate professional scepticlsm and thus the capacity to identify non-compliance with laws and regulations and fraud. There are inherent limttations in the audit procedures described at#)ve and the further removed non- compliance with laws and gUlationS is from the events and transactions reflected in the financial statements. the less likely we would become aware of it. Also. the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error. as fraud may involve deliberate concealment by. for example. forgery or intentional misrepresentations. or through collusion. A further description of our responsibilities ts available on the Finantial Reporting Council's website at- www.frc.or auditorsres nsibilities. This descriptron forms part of our auditorfs report. Use of our report This report is made solely to the charitable compan$ members, as a body. in accordance wilh Chapter 3 of Part 16 of the Companies Act 26. Our audit work has been undertaken so that we might state to the charitable cofflpany'5 members those rnatter5 we are required to state to them in an auditorfs report and for no other purpose. To the fullest extent permitted by law. we do not accept or assurne responsibility to anyone other than the charitable company and the charitable companrfs members as a body, for our audit worK for this report, or forthe opinn5 we have fomied. S.&e* C- Le Sally Appleton (Senior Statutory Auditor) for an on behalf of Saffery Champness LLP Chartered Accountants Statutory Auditors Mttre House North Park Road Harrogate HGI SRX Date: 28 September 2022 Page 10
SAFE PLACES FOR CHILDREN UK ATEMENT OF FINANCIAL ACTIVITIES lin¢rn*i an •Thme and expenditure attountl FOR THE YEAR ENDED 31 DECEMBER 2021 2021 2020 Notes Income from: Charitable activit$ 1,787,805 1,462.406 Total income 1,787.805 1,462.406 Expenditure on: Charitable activities 1.871,326 1,520.362 T¢tal expendire 1,871,326 1.520,362 Net expenditure for the year {83.5211 157,9561 Deficit balances brought forward at l January 2021 15 {1,020,4401 1962,4841 Deficit balances carried forward at 31 Dernber 2021 11,103,961) 11.020,440) During the above financial period, the charitys activit5 derwed from continuing operations. The charity has no other recognised 8ains and losses from those stated above. All funds are unrestrirted. The notes on pages 14 to 21 form an integral part of these financial statements. Page 11
SAFE PLACES FOR CHILDREN UK BALANCE SHEET AT310ECEMBER 2021 2021 2020 Notes Fixed assets 420.720 438,201 Current assets Debtors Cash at bank and rn hand io 29.836 135.446 165,282 44.967 126.037 171,004 Creditor5: Amounts falling due within one year li 1171,0751 195,4431 Nel current assetsl{liabilities} 15.7931 75,561 Total assets less current assetsl{liabilitie5) 414,927 513,762 CreditQTS: Amounts fallin8 afteT one year 12 11,518,888) 11.534,2021 Nel liabilities 11.103.961} 11.020.440) Represented by Unrestricted deficit 11,103,961) 11,020,440) Total defiut In fvnds 11.103.961) 11,020,440) The notes on pages 14 to 21 fonn an integral part of these financial slatements. The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies. regime. The financial statements were approved and authorised for issue by the Trustees on 20 September 2022 and 5i8ned on their behalf by- Keith Mason Trustee Company Number 10152838 Page 12
SAFE PLACES FOR CHILDREN UK CASH FLOW STATEMEP AT 31 DECEMBER 2020 2021 2020 Cash flows from operatin8 activities Cash generated from operations Net cash used in operating activities 25,329 25.329 115.7331 115,7331 Cash flows frorn investing artivities Purchase of tangible fixed assets Nel cash used in in¥estin8 arti¥ities 16061 16061 129.8141 129.8141 Cash flows from financlng arti¥lties Cash inflow5 from new borrowin8S Repayment of borrowings Net cash from financing acti¥ilie5 126,575 115,3141 115,3141 126,575 Change in cash and cash eqUIalents in the reportin8 period Cash and cash equivalents at the beginning ofthe year 9,409 126,037 81,028 45,009 Cash and cash equi¥alents at the end of the y 135,446 126.037 Re¢on¢iliation of net Income to net ush flow 2021 2020 Net deficit for the reportifiE period Adjustments for.. Depreciation charge5 Decreasellincreasel in debtors Increase in credrtors 183.5211 157.9561 18,087 15.131 75,632 14,3(XJ 16961 28,619 Net cash inflowl{outfiowl fram operating aCtilIeS 25.329 115,7331 Analysis ol cash and cash equivalents l January 2021 31 December 2021 Movement Cash at bank and in hand Loans payable 126.036 11.534.202) 135,446 11,518.8881 15,314 11.408.166) 24,723 11,383.4421 The notes on pages 14 to 21 forni an integrnl part of these financial statements. Page 13
SAFE PLACES FOR CHILDREN UK NOTES TO THE FINANaAL STATEMEt¥r5 FOR THE YEAR ENDED 31 DECEMBER 2021 Accounting policies 1.1 Basis of preparati¢)n The financial statement5 have been prepared under the historical cost conventbon and in accordan with applicable accounting standard5. They aE50 comply with the Statement of Recommended Practice.. Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the requirements of the Companies Act 2006 as applicable to companies subjett to the small companies regime. The charity constitute5 a public benefit entity as defined by FRS 102. 1.2 k¢¢)unting exemptions The charity meets the definition of a qualifying entity under FRS102 and has therefore taken advantage of the di5c105ure exemption5 available to it in accordance with paragraph 1.12 of FRS102. Exemptions have been taken in relation to financial instruments. presentation of a cash flow statement and the compensation of key management personnel. 1.3 Going c¢)ncern At the time of approving the financial statements. the trustees are of the view that the relationship between Safe Places Community Serwices Limf(ed and Safe Places for Children UK, along with the long- term viabilty and resources of the Australian operation, and the demonstrated willingness of the placement agencies to utrlise our services and pay the ass¢xiated costs, indicate that ihe charity is a going concern. The Trustees have reviewed cash flow forecasts for 2023 and 2023 in order to consider going concern and are confident that the charity will have the resources available to it that it will need for at least the 12 months following the approval of these financial statements. Thus, the Trustees continue to adopt the gosng concem basis of accounting in preparing the financial statements. The charity recognises the need io have positive unre5tricled fund5 and is taking steps to achieve this in due tourse through the increase in operations driving increasing surpluses over the high base running costs. The charity experts to receive continued support from the connected charity Safe Places for Childn Secretariat. providing onward funding from Safe Places Communities Services Limited. 1.4 Fund a¢¢ounlin8 All funds are unrestrtcted general funds and are available for use at the discretion of the Trustees in furtherance of the general obj'ectives of the charity. Page 14
SAFE PLACES FOR CHILDREN UK NOTES TO THE FINANaAL STATEMENrs FOR THE YEAR ENDED 31 DECEMBER 2021 1.5 Tangible fijted assets Expenditure on the acquisition of individual fixed assets are capitalised at cost. Dep(latIOn is provided to write off the c05t of the asset less estimated residual value in equal instalments over their expected useful economic lives as follows.. Buildings and improvements Motor Vehicles Computer Equipment 50 yea 4 years S years Land is estimated to represent 20% of the value of buildings and is not depreciated. 1.6 In¢oming res<¥yr¢es All incoming resources are included on the Statement of Financial Activitie5 when the charity 15 legally entitled to the income and the amount can be quantrfied with reasonable accuracy. The following specific policies are applied to particular categories of income= Income from charitable actNities represents the delivery of the charItS core servbces and is recognised as the SeiCe is performed. Income received by way of donations, legacies and gifts is included in fvll in the Statement of Financial ActNity when receivable. 1.7 Expenditure recognition Liabilities are recognised as expenditure as soon as there is a legal or constwctive obligation committing the charhty to that expenditure, Ét is probable that settlement will be required and the amount of the obligation can be measured reliabty. All expendiCU is a¢wunted for on an atcrua15 basis. All expenses intluding support costs and Bovemance cost5 are allocated or apportioned to the applicable expenditure headings. 1.8 Taxation The company is è registered charity and is not nomially liable to Untted Kingdom income tax or corporation tax on its charstable activitS. The company is unable to recover all of its VAT which is thef0 expended through the Statement of Financial Activrties. 1.9 Financial instrurnents The Charity has financial assets Jnd liabilities of a kind that qualtfy as basic financial instruments. Basic financial instruments are recognised initially in the accounts at transaction price. including any transaction costs. At the end of each accounting period, basit financial instruments are recognised at amortised cosi. For debt instruments this is cakulated using the effective interest rate method. Page 15
SAFE PLACES FOR CHILDREN UK NOTES TO THE FINANCIAL STATEMEIITS FOR THE YEAR ENDED 31 DECEMBER 2021 1.10 Critical acfountlrgjudgements In the application of the charitrfs accounting policies. the Trustees are required to make judgement5. estimates and assumptions about the carrying amount of assets and liabilities that are not readilv aPpant from other sources. The estimates and a550ciated assumptions are based on historical experience and other factors that are considered to be relevant. Actual resums may differ from these estimates. No key judgements or assumptions have been made by the Trustees in the preparation of the financial statements. Income from charftable artl¥ities 2021 2020 Residential care Outreach care oiher income 1,688,010 82.951 16.844 1.336,519 38.471 87,416 1.787.805 1,462,406 Charitable arti¥ities ¢05ts Support osts (Note 5) Total 2021 (Note 41 Therapeutic residential services Other 1.411.220 1,411.220 460,106 460,106 1.411.220 460,106 1.871,326 Direct losts (Note 41 Support costs {Note 5) Total 2020 Therapeutit residential servi$ Other 1,136.575 1,136.575 383,787 383,787 1.136.575 383.787 1,520.362 Page 16
SAFE PLACES FOR CHILDREN UK NOTES TOTHE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Dirert costs of charitable a¢tl¥ltSes 2021 2020 Staff and related costs Residential premise5 costs Travel costs 1.261.476 125,056 24,689 1.008.9D) 112,(KJ7 15.668 1.411,220 1,136.575 Support costs Support costs are as follows.. 2021 2020 Staff and related costs Travel Office costs Depreciation Insurance Governance costs Inote 61 Irrecoverable VAT 196.288 7,244 98.844 18,087 54.479 84,164 182.205 6,395 67,772 14,301 36,524 64,683 6,414 460,106 383,787 Govemance costs 2021 2020 Independent Examination Fees Curreht Year Prior Year Accounting and Tax Fees Legal and Professional Fee5 16.(MX) 21.6C 4,440 42,124 8,184 3,822 48.777 84.164 64,683 Page 17
SAFE PLACES FOR CHILDREN UK NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Direct slaff costs 2021 2020 Wages and salaries Social security costs Other pensbon Costs 1.233,815 121.208 44,635 970.696 93,066 39,554 1,399,659 1,103,316 The average monthly number of employees (based on head countl durine the year wa$ 4512020: 351. One employee had emoluments for the year over £60.{{2020- 11 in the band of £&J.000- £70.(K)O. The key management personnel of the charity currently comprt5e individuals working for Safr Places Community SeThices Limited in Australia. There is no charge to the charity for their services at present. Trustees. remuneration and benefits There was no trustees, remuneration or other benefits forthe year ended 31 Dernber 2021 or for the year ended 31 December 2020. There were no trustees. expenses paid for the year ended 31 December 2021 or for the year ended 31 December 2020. Page 18
SAFE PLACES FOR CHILDREN UK NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 310ECEMBER 2021 Tangible fixed assets Computer equipment Motor ¥*hicles Buildings Totals Cost At l January2021 Adtlr(ions 9.471 606 416.864 35,894 462,229 At 31 December 2021 10.077 416,863 35,894 462,834 Deprffiation At l January 2021 Charge for year 1.777 1.975 14.104 7,139 8,145 8.973 24,027 18,087 At 31 December 2021 3.752 21,243 17,119 42,114 Net book value At 31 December 2021 6.325 395.620 18.775 420,720 At ljanuary 2021 7.694 402.760 27.749 438,202 10 Debtors 2021 2020 Trade debtors Prepayments Other debtors 9,245 744 19,847 13,393 10,627 20,947 29,836 44,967 Page 19
SAFE PiACES FOR CHILDREN UK NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 11 Creditors: Amounts falling due within one year 2021 2020 Trade creditors Tax and social securtty Accruals and other creditors 1.747 33.352 135,976 940 41,603 52,9(M) 171.075 95,443 12 Creditors: Amounts fallin8 after one ye 2021 2020 Loan froffl parent charrty 1.518,888 1.534.202 1,518.888 1,534,202 Creditors greater ihan one year represent a loan from Safe Places for Children Secretariat (Registered Charity Number 11734491. The loan 15 interest free and has no fixed repayment date. 13 Operating lease Commttment Minimum lease payments commitment under operating leases due as follows 2021 2020 Within one year 6.308 24,090 Between one and fpie years 6.308 Page 20
SAFE PLACES FOR CHILDREN UK NOTES TO THE FINANCIAL STATEMEfiTS FOR THE YEAR ENDED 31 OECEMBER 2021 14 Company Slatus The company does not have a share capital and is limited by the guarantee of Tts member. Safe Places for Children Secretariat (Company ReEistratit)n Number 10147280 and Registered Charity Number 11734491. At 310ecember 2021 the total of such guarantees was £l12020- £11. 15 Related Party Transartions The ultimate parent company of the charity is Safe Places for Children Secretariat. Safe Places for Children Secretariat is the Conirolling member of Safe Places for Children UK. Copies of the consolidated fi'nancial statements for the group can be obtained by writing to the Company Secretary at First Floor, Triad House, Mountbatten Court, Worrall Street, Congleton. Cheshire, CW12 IDT. The charity receNed loans in the year of £nil12020.. £178.51Kl} from Safe Places for Children Secretariat. As at 31 December 2021 the balance of loans owing to Safe Places for Children Secretariat is £l.518,888 12020.. £1,534,202). Anihony Thompson is a Director of Safe Places Community Services Limited. serving as Chairman. Safe Place5 Communities Services Limited 15 a similar organisation operating in Australia on which this charity ha5 been modelled. The ¥W of the Trustees is that Safe Places Communities Services Limited and this charity are connected parttes pursuant to the Australran accounting standards and the United Kingdom accounting standards. Duringthe year Safe Places Communities Services Limited paid net expense5 of £15.31412020- £51.9261 on behalf of the charity- These amounts a included in the balance of the loan payable to Safe Places for Children Secretariat at 31 December 2021. There are no other related party transactions that require dischsure. Page 21-