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2022-12-31-accounts

Charity number: 1172481 Company number: 10152838

SAFE PLACES FOR CHILDREN UK

FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2022

SAFE PLACES FOR CHILDREN UK

CONTENTS

Page
Trustees and Administrative Information 1
Trustees’ Report 2
Independent Auditor’s Report 6
Statement of Financial Activities 10
Balance Sheet 11
Cash Flow Statement 12
Notes to Financial Statements 13

SAFE PLACES FOR CHILDREN UK

TRUSTEES AND ADMINISTRATIVE INFORMATION

Trustees Keith Mason
Christopher Saunders
Office address Safe Places for Children UK
First Floor
Triad House
Mountbatten Court
Worrall Street
Congleton
Cheshire
CW12 1DT
Independent Auditor Saffery LLP
Mitre House
N Park Rd
Harrogate
HG1 5RX
Bankers Royal Bank of Scotland
Western Avenue
Chatham
ME4 4RT
Solicitors Veale Wasbrough Vizards LLP
Narrow Quay House
Narrow Quay
Bristol
BS1 4QA

Page 1

SAFE PLACES FOR CHILDREN UK

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, are pleased to present their annual trustees’ report together with the financial statements for the year to 31 December 2022 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 Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Objectives and activities

The charity’s objectives are:

The purposes of the charity are:

The objectives for this year are:

Page 1

SAFE PLACES FOR CHILDREN UK

TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2022

Funding

We have established working relationships with various Trustees of the Health and Social Care trusts in a range of jurisdictions in Northern Ireland and England. We have broad agreement on the pricing structure and cost recovery models for caring for young people.

We have increased the pricing structure per young person in Northern Ireland for the financial year 2023 with a base rate of 6,500 per child per week. Safe Places are currently supporting four young people across two houses. As the complex needs of a child or young person reduces due to the intense therapeutic work we deliver, we work alongside the Trusts and Local authorities to secure less-intensive models of care and provide outreach support during the young persons transition out of Safe Places, whilst simultaneously providing outreach support to new young people transitioning into our service, this increases revenue during this period. Across England and Northern Ireland, we have an average of 25 referrals to our service per day, which reduces the ongoing concern of business/revenue continuity. The Northern Ireland Trusts are under a huge amount of pressure to not only place children and young people but also to bring young people back to their communities as some young people are placed down south in Ireland or other countries. Safe Places have been able to assist with this and now have 4 young people being supported locally.

Safe Places have an exemplary reputation in providing therapeutic residential care and are the only private provider in Northern Ireland. The regulator ‘RQIA’ and the Trusts continue to provide exceptional feedback regarding the quality of care provided by Safe Places.

We have determined that we can provide the appropriate services at the best cost to ensure the ongoing viability of Safe Places for Children UK.

Fundraising

The Trustees take their responsibilities under the Charities (Protection and Social Investment) Act 2016 seriously and have considered the implications on their activities. The charity does not actively raise funds or solicit donations directly from the general public at present. The charity does not work directly with commercial sponsors in relation 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 charitable objects, the trustees have complied with their duties in Section 17 of the Charities Act 2011 and have considered the Charity Commission’s general guidance on public benefit.

Financial Review

The charity received income of £1,816,895 (2021 – £1,787,805). There was an increase in income compared to 2021 as the charity took on more contracts to provide services to local authorities.

Expenditure of £2,067,745 (2021 – £1,871,326) was incurred in relation to the charity’s operations. The operations included therapeutic residential services and ancillary activities.

Reserves policy

The charity held a deficit on unrestricted funds of £1,354,811 as at 31 December 2022 (2021 – deficit of £1,103,961). The charity recognises the need to have positive unrestricted funds and is taking steps to achieve

Page 1

SAFE PLACES FOR CHILDREN UK

TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2022

this in due course. The charity expects to receive continued support from the connected charity Safe Places for Children Secretariat.

Going Concern

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 Limited. These organisations continue to provide backup funding, management expertise, emergency staffing requirements and administrative support. With these arrangements in place, 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 positive unrestricted funds and is taking steps to achieve this in due course. The charity expects to receive continued support from the connected charity Safe Places for Children Secretariat.

The Trustees have reviewed cash flow forecasts for 2023 and 2024 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 going concern basis of accounting in preparing the financial statements.

Risk management

The trustees have a risk management strategy which comprises:

This work has identified that barriers to entry is the major financial risk for the charity. The approach of Safe Places for Children UK is different from those used by other organisations 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 procedures in place, and regular awareness training for staff working in these operational areas.

Future Plans

Since the financial year end, we have made significant progress in continuing to establish the organisation as a premium provider of therapeutic care, this has been acknowledged by the regulator in Northern Ireland and

Page 2

SAFE PLACES FOR CHILDREN UK

TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2022

the individual trusts. Placements continue in our homes and we have achieved great outcomes for the children and young people. We have received payments from the South-Eastern Trust of HSC and Belfast Trust in Northern Ireland for these services.

We previously provided therapeutic care to young people via a tendered contract with Cheshire East Council providing services to a significant number of young people. The CEC contracts were mutually terminated in July and August 2023, despite having some great outcomes for young people, including transitioning children and young people back home to their families or to a lessor intensive model of care. CEC was unwilling to increase the pricing structure to ensure the ongoing service was financially viable for Safe Places.

Safe Places have completed all registration documentation with OFSTED for the Nantwich property and we will look to support children and young people from January 2024 and increase our overall revenue, this will be outside of the constraints of a tendered agreement. Nantwich property will be on a fee for service basis under an individual contract for specific young person for a specified period.

Safe Places for Children UK have commenced supporting Safe Places community Service Ltd in Australia to source additional staffing resources, an agreed pricing schedule is in place this includes cost recovery for fixed costs and various pay points throughout the various stages. Safe Places UK have a well-established training team that will also train prospective staff before they travel to Australia. The international recruitment project is underway and has generated additional revenue.

Trustees

The following Trustees have held office during the period and to the date of singing the accounts:

Page 3

SAFE PLACES FOR CHILDREN UK

TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2022

Structure, Governance & Management

Constitution

The charity is constituted as a company limited by guarantee and was incorporated on 28 April 2016. It is governed by its Memorandum and Articles of Association. There is currently one member. The charity was registered with the Charity Commission on 7 April 2017.

Appointment of trustees

As set out in the Articles of Association the trustees are nominated by Safe Places for Children Secretariat.

Trustee induction and training

The trustees have undergone orientation to brief them on their legal obligations under charity and company law, the Charity Commission guidance on public benefit, and inform them of the content of the Memorandum and Articles of Association, the committee and decision-making processes, the business plan and recent financial performance of the charity.

Related parties and co-operation with other organisations

None of our trustees receive remuneration or other benefit from their work as a trustee with 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 contractual relationship with a related party.

The charity has a close relationship with Safe Places Community Services 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 1173449) the UK charity’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 repayment will be required only as and when the charity has capacity to repay.

Our view is that Safe Places Communities Services Limited and the charity are connected parties pursuant to the Australian accounting standards and the United Kingdom accounting standards.

Pay policy for senior staff

The pay of the senior staff is reviewed annually and normally increased in accordance with average earnings, subject to market comparative review.

Page 4

SAFE PLACES FOR CHILDREN UK

TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2022

Trustees Responsibilities

The trustees (who are also directors of the charity for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

Keith Mason Trustee

Company Number 10152838 Registered office: Triad House, Mountbatten Court, Worrall Street, Congleton, Cheshire, CW12 1DT

Page 5

SAFE PLACES FOR CHILDREN UK

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF SAFE PLACES FOR CHILDREN UK FOR THE YEAR ENDED 31 DECEMBER 2022

________________

Opinion

We have audited the financial statements of Safe Places for Children UK for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and the notes to the financial statements, including significant accounting policies. The financial reporting 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 applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the

Page 6

SAFE PLACES FOR CHILDREN UK

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF SAFE PLACES FOR CHILDREN UK FOR THE YEAR ENDED 31 DECEMBER 2022

________________

financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 5, the trustees (who are also directors of the charitable company for the purposes of company law) 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 the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Page 7

SAFE PLACES FOR CHILDREN UK

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF SAFE PLACES FOR CHILDREN UK FOR THE YEAR ENDED 31 DECEMBER 2022

________________

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditors under the Companies Act 2006 and report in accordance with regulations made under that Act.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the charitable company’s financial statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, 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 significance in the context of the charitable company by discussions with trustees and updating 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 Act 2006, and guidance issued by the Charity Commission for England and Wales.

Further, the charitable company is subject to other laws and regulations where the consequences of noncompliance could have a material effect on amounts or disclosures in the financial statements, through material fine, litigation or restrictions on the charitable company’s operations. We identified the most significant other laws and regulations to be specific requirements as found in the Education and Skills Act 2008 and the Childcare Act 2006 and guidance issued by Ofsted and the Regulator and Quality Improvement Authority.

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

Page 8

SAFE PLACES FOR CHILDREN UK

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF SAFE PLACES FOR CHILDREN UK FOR THE YEAR ENDED 31 DECEMBER 2022

________________

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances 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 identifying any significant transactions 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. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations 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 is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Sally Appleton (Senior Statutory Auditor) for an on behalf of Saffery LLP

Chartered Accountants Statutory Auditors

Mitre House North Park Road Harrogate HG1 5RX

Date: 3 November 2023

Saffery LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

Page 9

SAFE PLACES FOR CHILDREN UK

STATEMENT OF FINANCIAL ACTIVITIES (incorporating an income and expenditure account) FOR THE YEAR ENDED 31 DECEMBER 2022

Notes
Income from:
Charitable activities
2
Total income
Expenditure on:
Charitable activities
3
Total expenditure
Net expenditure for the year
Deficit balances brought forward at 1 January 2022
15
Deficit balances carried forward at 31 December 2022		 2022
£
1,816,895
1,816,895
2,067,745
2,067,745
(250,850)
(1,103,961)
(1,354,811)		 2021
£
1,787,805
1,787,805
1,871,326
1,871,326
(83,521)
(1,020,440)
(1,103,961)

During the above financial period, the charity’s activities derived from continuing operations. The charity has no other recognised gains and losses from those stated above.

All funds are unrestricted.

The notes on pages 14 to 21 form an integral part of these financial statements.

Page 10

SAFE PLACES FOR CHILDREN UK

BALANCE SHEET AT 31 DECEMBER 2022

Notes
Fixed assets
9
Current assets
Debtors
10
Cash at bank and in hand
Creditors: Amounts falling due within one year
11
Net current assets/(liabilities)
Total assets less current assets/(liabilities)
Creditors: Amounts falling due after one year
12
Net Liabilities
Represented by
Unrestricted deficit
Total deficit in funds		 2022
£
402,592
81,868
21,233
103,101
(226,616)
(123,515)
279,077
(1,633,888)
(1,354,811)
(1,354,811)
(1,354,811)		 2021
£
420,720
29,836
135,446
165,282
(171,075)
(5,793)
414,927
(1,518,888)
(1,103,961)
(1,103,961)
(1,103,961)

The notes on pages 14 to 21 form an integral part of these financial statements.

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 30 October 2023 and signed on their behalf by:

Keith Mason Trustee

Company Number 10152838

Page 11

SAFE PLACES FOR CHILDREN UK

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2022

Cash flows from operating activities
Cash generated from operations
Net cash used in operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities
Cash inflows from new borrowings
Repayment of borrowings
Net cash from financing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
A.
Reconciliation of net income to net cash flow
Net deficit for the reporting period
Adjustments for:
Depreciation charges
Decrease/(increase) in debtors
Increase in creditors
Net cash inflow/(outflow) from operating activities
B.
Analysis of cash and cash equivalents
1 January
2022
£
Cash at bank and in hand
135,446
Loans payable
(1,518,888)
(1,383,442)		 2022
Notes
£
A
(229,213)
(229,213)
-
-
115,000
-
115,000
(114,213)
135,446
B
21,233
2022
£
(250,850)
18,128
(52,032)
55,541
(229,213)
Movement
£
(114,213)
(115,000)
(229,213)		 2022
Notes
£
A
(229,213)
(229,213)
-
-
115,000
-
115,000
(114,213)
135,446
B
21,233
2022
£
(250,850)
18,128
(52,032)
55,541
(229,213)
Movement
£
(114,213)
(115,000)
(229,213)		 2022
£
(229,213)
(229,213)
-
-
115,000
-
115,000
(114,213)
135,446
21,233
2022
£
(250,850)
18,128
(52,032)
55,541		 2021
£
25,329
25,329
(606)
(606)
-
(15,314)
(15,314)
9,409
126,037
135,446
2021
£
(83,521)
18,087
15,131
75,632
25,329
31 December
2022
£
21,233
(1,633,888)
(229,213)
Movement
£
(114,213)
(115,000)
(229,213)
(1,612,655)

The notes on pages 14 to 21 form an integral part of these financial statements.

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SAFE PLACES FOR CHILDREN UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

1.1 Basis of preparation

The financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards. They also 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 (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The charity constitutes a public benefit entity as defined by FRS 102.

1.2 Accounting exemptions

The charity meets the definition of a qualifying entity under FRS102 and has therefore taken advantage of the disclosure exemptions 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 concern

At the time of approving the financial statements, the trustees are of the view that the relationship between Safe Places Community Services Limited and Safe Places for Children UK, along with the longterm viability and resources of the Australian operation, and the demonstrated willingness of the placement agencies to utilise our services and pay the associated costs, indicate that the charity is a going concern. The Trustees have reviewed cash flow forecasts for 2023 and 2024 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 going concern basis of accounting in preparing the financial statements. The charity recognises the need to have positive unrestricted funds and is taking steps to achieve this in due course through the increase in operations driving increasing surpluses over the high base running costs. The charity expects to receive continued support from the connected charity Safe Places for Children Secretariat, providing onward funding from Safe Places Communities Services Limited.

1.4 Fund accounting

All funds are unrestricted general funds and are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.

1.5 Tangible fixed assets

Expenditure on the acquisition of individual fixed assets are capitalised at cost. Depreciation is provided to write off the cost of the asset less estimated residual value in equal instalments over their expected useful economic lives as follows:

• Buildings and improvements 50 years
• Motor Vehicles 4 years
• Computer Equipment 5 years

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SAFE PLACES FOR CHILDREN UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

Land is estimated to represent 20% of the value of buildings and is not depreciated.

1.6 Incoming resources

All incoming resources are included on the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

1.7 Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings.

1.8 Taxation

The company is a registered charity and is not normally liable to United Kingdom income tax or corporation tax on its charitable activities. The company is unable to recover all of its VAT which is therefore expended through the Statement of Financial Activities.

1.9 Financial instruments

The Charity has financial assets and liabilities of a kind that qualify 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, basic financial instruments are recognised at amortised cost. For debt instruments this is calculated using the effective interest rate method.

1.10 Critical accounting judgements

In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

No key judgements or assumptions have been made by the Trustees in the preparation of the financial statements.

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SAFE PLACES FOR CHILDREN UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

2 Income from charitable activities

Residential care
Outreach care
Other income
aritable activities costs
Therapeutic residential services
Other
Therapeutic residential services
Other		 Direct costs
(Note 4)
£
1,556,750
-
1,556,750
Direct costs
(Note 4)
£
1,411,220
-
1,411,220		 2022
£
1,614,658
86,360
115,877
1,816,895
Support
costs
(Note 5)
£
-
510,995
510,995
Support
costs
(Note 5)
£
-
460,106
460,106		 2021
£
1,688,010
82,951
16,844
1,787,805
Total
2022
£
1,556,750
510,995
2,067,745
Total
2021
£
1,411,220
460,106
1,871,326

3 Charitable activities costs

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SAFE PLACES FOR CHILDREN UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

4 Direct costs of charitable activities

Staff and related costs
Residential premises costs
Travel costs
port costs
upport costs are as follows:
Staff and related costs
Travel
Office costs
Depreciation
Insurance
Service fees
Governance costs (note 6)
ernance costs
Audit fees
- Current Year
- Prior Year
Accounting and Tax Fees
Legal and Professional Fees		 2022
£
1,322,352
201,910
32,488
1,556,750
2022
£
200,361
10,676
110,243
18,128
64,316
34,963
72,308
510,995
2022
£
23,064
-
2,300
46,944
72,308		 2021
£
1,261,476
125,056
24,689
1,411,220
2021
£
196,288
7,244
98,844
18,087
54,479
-
84,164
460,106
2021
£
16,000
21,600
4,440
42,124
84,164

5 Support costs

Support costs are as follows:

6 Governance costs

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SAFE PLACES FOR CHILDREN UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

7 Direct staff costs

ect staff costs
Wages and salaries
Social security costs
Other pension costs		 2022
£
1,296,371
136,925
47,127
1,480,423		 2021
£
1,233,815
121,208
44,635
1,399,659

The average monthly number of employees (based on head count) during the year was 47 (2021: 45).

The number of employees with emoluments for the year over £60,000 are as shown below:

2022 2021
£ £
£60,000 - £69,999 - 1
£70,000 - £79,999 1 -
£80,000 - £89,999 1 -

The key management personnel of the charity currently comprise individuals working for Safe Places Community Services Limited in Australia. There is no charge to the charity for their services at present.

8 Trustees’ remuneration and benefits

There was no trustees’ remuneration or other benefits for the year ended 31 December 2022 or for the year ended 31 December 2021. See note 15 for details of other related party transactions.

There were no trustees’ expenses paid for the year ended 31 December 2022 or for the year ended 31 December 2021.

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SAFE PLACES FOR CHILDREN UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

9 Tangible fixed assets

Cost
At 1 January 2022
Additions
At 31 December 2022
Depreciation
At 1 January 2022
Charge for year
At 31 December 2022
Net book value
At 31 December 2022
At 31 December 2021
ebtors
Trade debtors
Prepayments
Other debtors		 Computer
equipment
£
10,077
-
10,077
3,752
2,015
5,767
4,310
6,325		 Buildings
£
416,863
-
416,863
21,243
7,139
28,383
388,480
395,620		 Motor
vehicles
£
35,894
-
35,894
17,119
8,973
26,092
9,802
18,775
2022
£
59,035
3,244
19,589
81,868		 Totals
£
462,834
-
462,834
42,114
18,128
60,242
402,592
420,720
2021
£
9,245
744
19,847
29,836

10 Debtors

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SAFE PLACES FOR CHILDREN UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

11 Creditors: Amounts falling due within one year

Trade creditors
Tax and social security
Accruals and other creditors
Deferred income
12
Creditors: Amounts falling after one year
Loan from parent charity		 2022
£
22,407
33,178
151,031
20,000
226,616
2022
£
1,633,888
1,633,888		 2021
£
1,747
33,352
135,976
-
171,075
2021
£
1,518,888
1,518,888

Creditors greater than one year represent a loan from Safe Places for Children Secretariat (Registered Charity Number 1173449). The loan is interest free and has no fixed repayment date.

13 Operating lease commitment

Minimum lease payments commitment under operating leases due as follows

2022
 2021
£ £
Within one year 17,640 6,308
Between two and five years 1,470 -

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SAFE PLACES FOR CHILDREN UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

14 Company Status

The company does not have a share capital and is limited by the guarantee of its member, Safe Places for Children Secretariat (Registered Charity Number 1173449). At 31 December 2022 the total of such guarantees was £1 (2021 - £1).

15 Related Party Transactions

Anthony Thompson, a trustee, is a trustee of Safe Places for Children Secretariat. The charity received loans in the year of £nil (2021: £nil) from Safe Places for Children Secretariat.

As at 31 December 2022 the balance of loans owing to Safe Places for Children Secretariat is £1, 633,888 (2021: £1, 518,888).

Anthony Thompson is a Director of Safe Places Community Services Limited, serving as Chairman. Safe Places Communities Services Limited is a similar organisation operating in Australia on which this charity has been modelled. The view of the Trustees is that Safe Places Communities Services Limited and this charity are connected parties pursuant to the Australian accounting standards and the United Kingdom accounting standards.

During the year Safe Places Communities Services Limited paid net expenses of £115,000 (2021 - £15,314) on behalf of the charity. These amounts are included in the increased loan payable to Safe Places for Children Secretariat at 31 December 2022.

Keith Mason is a Trustee of Safe Places for Children UK but is also the Managing Director of the Charity. He receives remuneration for his employment as managing Director, which is separate to his role as a Trustee, for which no remuneration is received.

There are no other related party transactions that require disclosure.

16 Post Balance Sheet Events

Following the year end, the Charity was informed by Safe Places Community Services Limited that the loan provided to the Charity (see note 12) was to be forgiven during the year ending 31 December 2023.

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