Charity Number: 1173449 Company number: 10147280 Safe Places for Children professional Gare. guaranteed outcomes 'KFLILbdY 2911112023 ¢(WPANIES HOUSE A23 Safe Places for Children Secretariat Report of the Trustee and consolidated financial statements for the year ended 31 December 2022 Sale Places far Children Secretariat Contents Page Reference and administrative inforniation Trustees Report Report of the independent auditors Consolidated statement of financial artivttses 12 Consolidated and charity balance sheets 13 Con501idated cash flow statement 14 Notes to the financial statements 16 Safe Places for Chlldren Secretarfat Reference and admlnislratl¥e Inlornwtion Icontinued) Board of Trustets Peter Kearnei Ichairnian) AnthonyThompson Office address Safe Places for Children Seuetsriat Firrt Fltsjr Triad House Mountbatten Court Worrall Street Congleton Cheshire CW12 IDT Independent Authtor Saffery LLP Mitre House North Park Rd Harrogate HGI SRX Bankers Royal Bank of Scotland Western Avenue Chatham ME4 4RT Solicitors Veale Wasbrough Wiiards LLP Narrow Quay House Narrow Quay Bristol 8514QA Pa¢e I Safe Plttés for Children Secfetarfat Report of the Trustees and stratetk report (contlnued) For the year ended 31 DKefflber 2022 The trustees, who are also directors of the charityforthe purposes of the Companies Act 2006. are pleased to present their annual trustees. report together with the financial statements for the year ended 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 Accountin8 and Reportin8 by Charities: Statement of Recommended Practice applicable to charities preparinBtheiraccounts in accordance with the Financial Reportingstandard applicable in the UK and Republic of Ireland {FRS 1021. Objects and arti¥itles The charitvs objects are: The relief of: children. youn8 adults and disabled people in need.. and the families of children. young adults and disabled people in need in particular but not exclusivety by providin8 residentsal. therapeuti¢ and rehabilitation seNices and famity support services: bl the relief of those in need by reason of finanaal haftlship. ill health. disability. youth. age or other disadvantage. the promotion of the efficiency and effectiveness of other charities whose charitable objects are within. the same as. or similar to the objects of the Setretariat. in particular but not exclusively by setting stsndards which serve to improve the quality of Ca￿ delI￿red by those other charitie5; the advancement of such other objects or purpose5 in any part of the world which are exclusively charitable according to the law of England and Wales and a￿ in the opinion of the trustees connected with thildren. young adults or disabled people in need in such manner as the trustees may in their absolute discretion think fit. The purp05es of the chartty are: To provide therapeutic residential care of high needs chikjren. young adults and disabled people, providing rehabilitation serlices in addition to the immediate needs of the youn8 people. In addition. we seek to Use the experiences and knowledge gained working with traumatised young people in other locations to bring about improvements in the efficienty and effectiveness of other organi5ations wothng in this sector. Working with the local authoritie5 arKI departments. we aim to raise the Standards and the quality of care delbvered to all high needs youn8 people by the various agencies and charities. The objertives for this year are= To assist other charities to establish a team of educated. excellent. enthusiastic stsff to guide young people along a personal growth joumry. Pa8e 2 Safe Place5 for Chlldren Secretarfat Report of the Trustees and stratetK report Icontinued) For the year ended 31 Ilttember 2022 To seek ways of improving the delivery of care to high needs youne people. To institute trainin& review and verification programs to ensure the hi8hest possible standard of care is provided. The charity achieves its objectives by assisting its SUb￿diary Safes Places for Children UK. Fundin8 We have established working relationship5 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 foryoung people. We have increased the pricing structure per young person in Northern I￿land for the financial year 2023 with a base rate of 6,SCK) per child per week. Safe Pla￿5 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 alon￿de the Trusts and Local authorities to secure less-intensive models of care and provide outreach 5UPPOrt during the young persons transition out of Safe Pla￿5. whilst simultaneously providing outreach support to new young people transilionin8 into our seryice. 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 businesslrevenue continuity. The Northem Ireland Trusts are under a huge amount of pressure to not only place children and young people but also to bring young people bètk to their communitie5 a5 some young people are placed down south in I￿land 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 repLrtation 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 qualsty of care provided by Safe Places. We have determined that we can provide the appropriate sepiices at the best cost to ensure the ongoin8 viability of Safe Places for Children UK. Public Benefft In planning the artr¥ities for the year to meet the charitable objects. the trustees have complied with their duties in Sertion 17 of the Charities Act 2011 and have considered the Chartty Commission's general guidance on public benefit. 'Flnanclal.Re¥lÈw The charity received income of £1.816.89512021-£1.772.4911. There was an increase in income compared to 2021 as the charity t¢)ok on more contracts to provide ser¥i¢es to local authorities. Expenditure in the year totalled £2.074,58212021- £1.884.4711. This expendrture was incurred in relation to the charitls operations. The operations irKluded therapeutic residential seThices and ancillary xtivities. Pa823 Safe Places for Childrtn Secretarfat Report olthe Trustees and stfatetk report {conllnuedJ For the year ended 31 Ilecember 2022 Reserves policy The parent charity held funds of £173.830 as at 311)ecember 2022 {2021-£180.6671.Thetrustees continue to develop a reserves policy for the parent charity and are reviewing the charl￿$ anticipated areas of income and expenditure to ensure the policy 15 appropriate. The group held a deficit on unrestricted funds of £1.180.981 as at 31 December 2022 12021- deficit of £923,294). The charity recognises the need to have positive unre5trirted funds and is taking steps to achieve this in due course. The charity expects to recepie continued support from the connected charity Safe Places Community SeThiices Limiied. Going Concern We were supported during the establishment and initlal start-up phase bythe Australian not-for-profit Safe Places Community Services Limited. This supporting relationship has continued throughout 2022 enabling the continued provision of finance to connected charities. During this period Secretariat has been actively involved in negotiatin8 a formalised 10 year long temi ag￿rnent with Safe Places Community Services Australia for Continued funding. As a result. the trustees consider that it 15 appropriate to continue to prepare the financial statements on a going concern basis. Risk fflan4gement The trustees have a risk management strategy which comprises: monthly review and check to ensure standardsare rnaintained. poliC￿S upheld and proceduresfollowed in both practical application and documentation.. ongoing work by team reviewing documentation. licencin8 and other requirements for working in thls highly regulated industry: an annual review of the principal risks and uncertaintie5 that the charity faces: the establishment of policies. systems and procedures to mitigate those risks identffied In the annual review; and the implementation of procedures designed to minimise or manaee any ￿tentIal impact on the charity should those risks materialise. This work ha5 identified that barrier5 to entry is the major finanoal risk for the charity. The approach to child safety that the charity is promoting is different from those used by other or8anisation5 in residential care and requires changes in thinkin8 in the funding and placement agencie5. Attention has also been focussed on non-financial risks arrsingfrom fire. health and safety of staff and youn8 people. These risks are managed by"ensuring accredf(ation is up to date. having robust policies and procedures In place. and regular awareness training for staff working in these operational areas. Fundralsl The Trustees take their responsibilities under the Charities (Protection and Social Investment) Act 2016 seriously and have considered the implication5 on their fundraising activities. The Charity does not engage in fundraising attivity nor does it petition any donations from members of the general public and does not Safe Places for Chlldren Secretsriat Report of the TTUStees and strategic report (continuedl For the year ended 31 December 2022 work with anythird-party commercial fundraiser. The Trustees a￿ not aware of any fundraising complaints made in ￿spect of the financial year. Future PlaTh5 Since the financial year end. we have made significant progress in continuing to estsblish the organi5ation as a Premium providerof iherapeufic care. this has been acknowledged by the regulator in Northern Ireland and the individual trusts. Placements continue in our homes and we have achieved great outcomes for the children and young people. We have receNed payments fn)m the South-Eastern Trust of HSC and Belfast Trust in Northern Ireland forthe5e Services. We previoLrsly proNrided therèpeuticcè￿tO young people via a tendered contract with Cheshire East Council providing services to a si8nificant number of young people. The CEC contracts were mutuallyteminated 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 unwillin8 to increase the pricing structure to ensure the ongoing Service wa5 financially viable for Safe Plates. Safe Places have completed all re8iStratiDn documentstion WTth OFSTED for the Nantwich property and we will look to support children and young people from January 2024 and increa5È our overall revenue. this will be outside of the constraints of a tendered agreement. Nantwich property will be on a fee for service bas15 under an individual contract for speofic young PErson for a speafied period. Safe Places for Children UK have commenced supwrting safe Place5 Community Services Ltd in Australia to source additional staffing resources. an agreed pricin8 schedule is in place this indudes cost recovery for fixed costs and various pay points throughout the variou5 Stages. Safe Place5 UK have a wellostablished training team that will a150 train prospective staff before they travel to Australia. The international cruitment project is underway and ha5 generated addttional revenue. Trustees The following director5 have held office during tlie period and to the date of signing the account5.' Amanda Ounn {resl8ned 30 March 2022) Kirralee Harris Iresigned 30 Marth 20221 Peter Kearney {appointed 21 March 20221 Anthony Thompson (appointed 21 March 2022} Structure, Governance & Management Constitution The charity 15 C0115tituted as a company limited by 8uarantee an<1 was incorpoTrted on 26 April 2016. It is governed by its Memorandum and Articles of Association. There is currently one member. The charlty was registered with the Charity Commission on 16 June 2017. Appointment of trustees As Set out in the Articles of Association the trustee5 are nominated by the members. Trustee indurtion and troining The trustees have undergone orientation to brief them on their legal obligations undercharity and company law, the Charity Commission guidance on public benefiL and inform them of the content of the Page 5 S* Places for Chlldren Secretsrlat Report ofthe Trustees and W•tegK repgrt (conliThuedJ For the year ended 31 December 2022 Memorandum and Articles of A5￿(latIon. the committee and decision-making processes. the business plan and recent financial perfomance ofthe charity. RelatedportiTes ondco-operotson with other Organ￿0t￿Ons None of thetrustees receive remuneration orother benefit from theirworkwTth 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 wtth a related party- The charity has a close relationship with Safe pla￿ Communty Servi￿5 Limtted in Australia. a non-profit with extensive expefience and 5uccesse5 in the care and rehabilitation of troubled young people. Safe Place5 Community Services Limited prowdes administration supporl training and advice. as well as providin8 funding for the establishment phase of Safe Places for Children Secretariat. The charity has not been asked to repay any of these funds, and we have assurances that repayment ￿11 be required only as and when the charity has capacity to repay. Our view is that Safe Place5 Communitres Ser¥ices Lrmited and the charity are connerted parties pursuant to the Australian accounting standards and the United Kin8dom accountin8 standard5. Page 6 S•fe Plxe5 for Chmdren Se¢retsrfJt Report of the Tiustees and strate8ic repart qcoThtinued) For the year ended 31 December 2022 Trustees Responsibilltles The trustees (who are also dirertors of the charity for the purposes of company lawl are responsible for preparing the Trustees. Report and the financial statements in accordance with applicable law and United Kingdom Accountin8 Standards (United Kin8dom General￿ Accepted Accounting Prètticel. Company law requires the trustees to prepare financial statements for each financial year which gNe a true and fair view of the state of affairs of the charitsble company and the group and of the incoming ￿sOUrCeS and application of resources. including the income and ejtpenditure. of the charitable group forthat period. In preparing these financial Statements. the trustees are required to. select suitable attountin8 policies and then apply them consistentty: obserye the methods and prinaples in the ChaTitie5 SORP {FRS 102)- make jLFdgements and estimates that are reasonable and prudent: state whether applicable accountin8 Standards have been followed. subject to ary material departure5 disc105ed and explained in the financial statements- and prepare the financial sLitements on the going concern basis unle5S it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping proper aecountinE records that disclose with reasonable accuracv 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 safe8uardin8 the assets of the charitable company and the group and hence for tskin8 reasonable steps for the prevention and detettion of fraud and other irregularities. In so far as the tNstees are aware.. there is no relevant audit information of which the tharitable compan￿5 auditor 15 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 aware of that infomiation. This report has been prepared In accordance with the special provisbons of Part 15 of the Companies Act 2(K16 relating to small companies. signed on behalf of the Truste"es on 30 Ortober 2023 Trustee Anthony Thompson Company Number 10147280 Registered office: Triad House. Mountbatten Court. Worrall StreeL Congieton. Cheshire. CW12 IDT Pay7 5*fe Places for Children Seuet*rfat Independe￿ audilarf reptsrt to the membus For the year ended 31 December 2022 Oplnlon We have audited the financial statements of Safe Places for Children Secretariat (the 'parent charitable company'l and its subsidiary lthe '8roup'l forthe year ended 31 Oecember 2022 which comprise the group statement of financial activities. the group and charity balance sheets. the group cash flow statement and the notes to the financial statements. including significant accounting policies. The financial reporting framework that has been applied in their preparat￿n is applicable law and United Kinedom Accounting Standards, including Finanual Reporting Standard 102. the Financial Reyting Standard applicable in the UK and Republic of Ireland {United Kingdom GeneraltyAttepted Accounting Practice). In our opinion the financial statements= give a true and fairview of the state of the affairs of the group and the parent charitable companv as at 31 December 2022 and of the group's incoming resources and application of resources, including its income and expenditure. for the yeaTthen ended.. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice- and have been prepared in accordance with the requirements of the Companies Art 2(K>6. Oasis for oplnlon We condurted our audlt in accordance with International Standards on Auditing IUKI IISA5 IUKII and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for the audit ot the financial statements sertion of our report. We are independent of the group and parent charitable company in accordance wth the ethical requirements that are relevant to our audit of the financial statements in the UK. induding the FRC'5 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. Concluslons relating to concern In auditing the financial statements, we have conduded that the trustees. use of the going concem basi5 of accounting in the preparaticx) of the financial statements is approwiate. 8a5ed on the work we have performed. we have not identified any material uncertainties relating to events or conditions that. individually or collective￿. may cast significant doubt on the group or the parent charitable company'5 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 8oing concern are described in the relevant sections of this report. other infomiation The trustees are responsible for the other infomation. The other information comprises the infomiation included in the annual report. other than the financial statements and our audttoFs report thereon. Our opinion on the financial statements does not cover the other infomiation and. except to the extent otherwise explicitly stated in our reporL we do rrf)t express any fom ol assurance conclusion thereon. Pap8 Safe Places for Children Setret•rfat Indep•nd•nt audit¢)rf report to the m•mbets (tontlnuedl Forthe year ended 31 December 2012 Our responsibility is to read the other information and. in doin8 so. considerwhetherthe other infomation is materially inconsistent with thefinancial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencie5 or apparent material misstatements. we a￿ required to detemine whether this gives rise to a material misststement in the financial statements themselves. If. based on the work we have perfornied, we conclude that there 15 a material rni5Statement of this other information- we are required to report that fact. We have nothlng to report in this regard. Other matttts presu1￿ bythe Companles Act 21X In our opinion. based on the work undertaken in the course of the audit: the infomiation gr•en in theTrustees' Re￿rt which includesihe Directors. Reportand the Strategic Report for the financial year forwhith the finanaal statements are prepared is consistent with the financial statements- and the Trustees, Report which includes the Dirertors, Report and the Strate8ic Report has been prepared in accordance with applicable legal requirements. Matters on whith we are required to report ty exception In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audiL we have not identified material misstatements in the Trustees, Report and strategic ReporL We have nothing to report in respert of the following matters ¥there the Companie5 Acl 2006 require u5 to report to you If. in our opinion: adequate accounting records have not been kept by the parent charitable company. or returns adequate for our audit have not been received from branches not Visited by us,. or the parent charitable company financial statements are not in ayeement with the accounting records and returns- or certain disclosures of tNstees' remuneration specified by law are not made: or we have not receNed all the infomiation and explanations we require for our audit. Responsibilities of tntstèts As explained more fully in the Statement of Trustees. Responsibilities on page 7. the trustees (who are.also the directors of the parent charitable company for the purposes of company lawl are responsible for the preparation of the financial Statements and for being satisfied that they grve a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of the financial statements that are free from material misstatemenL whetherdue to fraud or effor. In preparing the financial statements, the trustees are ￿SPonsible for assessing the group and the parent charitable comparfs ability to continue as a going concern. disc105in& as applicable. matters related to going concern and using the going concern basis of accountin8 unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations. or have no realistit alternative but to do so. S•fe Placts for Childrefft Se¢rotariat Independefit auditors. report to the membets (c(•ntknued) Forthe year ended 31 Dttembef 2022 Auditorfs resp￿sIbilitIeS forthe audit of the financial statements We have been appointed as auditors under the Companies Art 21X)6 arKI report in accordance with regulations made under that Art. Our objectives are to obtsin reasonable assurance about whetherthe group and parent financial statements as a whole are free from material misstatemenL whether due to fraud or error. and to issue an auditorfs report that includes our opinion. Aeasonable assurance is a high level of assurance. bLrt is not a guarantee that an audit condurted in accordan￿ with ISA5 IUKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, indtvidually or in the agBre8ate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities. includin8 fraud. are Instances of non-compliance with laws and regulations. We design procedure5 in line with our reS￿nsIbIlItIes. 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. includin8 fraud are detailed bel¢)w. Identifying and assessing risks related to irregulartties- We assessed the susceptibility ol the 8roup and parent charttable compan￿$ financial statements to material misstatement and how fraud might occur. including through discussions with the trustees, discussions Within our aLtdit 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 significance in the context of the group and parent charitsble company by dixussions with trustees and updating our understsndin8 of the sector in which the group and parent charitable company operate. Laws and regulations of dirert signifKance in the context of the group and parent charitsble company include The Companies Act and guidance issued by the Charity Commission for England and Wales. Further. the group is subject to other laws and regulations where the consequences of non•compliance could have a material effect on amounts or disclosures in the financial statements. through material fine. litigation or restrictions on the group'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 lrnprovement Authority. Audit response to risks identified: We considered the extent of compliance with these law5 and regulation5 as part of our audit procedures on the related financial ststement item5 including a review of financial statement disclosures. We reviewed the parent charitable companVs records of breathes of laws and regulations. minutes of meetings and correspondence with relevant authorities to identrfy potential material misststements arisin8. We dSscussed the parent charitable compan￿5 policies and procedure5 for compliance with laws and regulations with members of mana8ement responsible for compliance. During the planning meetin8 with the audit team. the en8a8ement partner drew attention to the key areas which miBht Involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of ary instance5 of non-compliance with laws and regulations or knowledge of any artual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entrie5 and identifyln8 any significant transaction5 th Page 10 Safe Places for Chldren Secretarfat Independent audltorf report to the members (contlnued) For the year ended 31 Derember 2022 were unusual or outside the nornial course of business. We a￿eSSed whether judgements made in making accounting estimates gave rise to a p)ssible indication of management bias. At the completion st38e of the audit. the engagement partnerfs 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 limitstions in the audit procedure5 described above and the further removed non- compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. ￿$0. the risk of not detectin8 a material misstatement due to fraud is higher than the risk of not detecting one re5ultin8 from error. as fraud mav involve deliberate concealment by. for example. forgery or intentional misrepresentations, or throu8h collusion. A further destrtption of our responsibilities is available on the Financial Reporting Council's website at.. v•hw.frc.o auditorsres nsibilities. This description forms part of our auditorf5 report. Use of ow report Thi5 report is made Sole￿ to the parent tharitable comparfs members, a5 a body. in accordance with Chapter 3 of Part 16 of the Companies Act 2LM16. Our audit work has been undertaken so that we might state to the parent charitsble coMpan￿S members those matters we are required to state to them in an auditorfs report and for no other purpose. To the fullest extent perniitted by law. we do not accept or assLtme responsibility to anyone other than the parent charitable Company and the parent charitable companVs members as a body. for our audit work. for this rewrt. or for the opinions we have formed. S.(Fe* LLe Sally Appleton1Senior Statutory Auditor) for and on behalf of Saffery LLP Chartered Accountants StatLrtory Auditors Mitre House North Park Road Harrogate HGI SRX 30 October 2023 Saffery LLP is eligible to act as an audttor in terms of section 1212 of the Companies Art 2(M)6 P