Charity Number: 1174728 Embassy Trustees, report and financial statements for the year ended 1 September 2024 ry Embassy Doc ID.. 2bf435dd1387ca84c4ad6ca417364362bd703547 Embassy Reference and administration information Charity number 1174728 Registered office and operational address Clo The Message Trust Lancaster House Harper Road Sharston Industrial Area Manchester M22 4RG Trustees Trustees who served during the year and up to the date of this report were as follows: Mr. Antony Bullivant (Chair) Mr. Richard Selby (Treasurer) Mr. Derek Gough Mr. Adam Posner Mr. Les Hutchinson (Sin￿ 1710412024) Key management personnel Key management personnel are: Mr. Sid Williams (co-founder and director) Mrs. Tess Williams (ccFfounder and relationship manager) Mr. Laighton Walters (resettlement manager) Independent Examiner Adrian Phillips FCA Arlo Accountancy Limited 107 Valley Road Stockport SK4 2DB Bankers Barclays Bank UK PLC 1 Churchill Place London E14 5HP Solicitors Shoosmiths The XYZ Building 2 Hardman Boulevard Manchester M3 3AZ Squire Patton Boggs 1, 1 Hardman St Manchester M3 3EB Hill Dickenson 50 Fountain Street Manchester M2 2AS Brabners 100 Barbirolli Square Manchester M2 3BD Doc ID.. 2bf435dd1387ca84c4ad6ca417364362bd703547 Embassy Trustees, annual report for the year ended I September 2024 The trustees present their report and the unaudited financial statements for the year ended 1 September 2024. Reference and administrative infomiation set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice Accounting and Reporting by Charities.. SORP applicable to charities preparing their accounts in accordance with FRS 102. A. Objectives and Activities A.1 Summary of the purposes of the charity For the public benefit to provide social housing and support to the homeless and destitute. To advance the Christian faith. mainly but not exclusively by means of practical care, optional Bible study. prayer and messages of an evangelistic nature. To preserve and protect the physical and mental health of homeless people. To assist beneficiaries in securing employment and pemianent accommodation. Although Embassy is a Christian charity, we welcome equally whoever is referred to us, of any faith or none. A.2 Summary of the main activities The intention of the charity is to deliver these public benefits through the following activities= 1 Help those who are homeless to restore Iheir lives and become part of healthy communities by doing the following: Work with partner agencies, including local councils, to identify those who are homeless and are serious about turning their lives around. Provide each resident with their own room plus shared access to a kitchen, bathroom and living area. Employ a team of resettlement workers to welcome our homeless guests and to take each of them through a programme of resettlement activities. which includes: Weekly house meetings in each hou￿. Weekly one to one mentoring session with each resident. Weekly twelve steps course for unpacking past trauma. Practical instruction on food shopping., One to one cooking lessons in line with the two-week meal plan we provide to help residents budget and eat healthily; Training around bill, rent and tax payment- Optional bible and prayer times- Optional weekly sports sessions" and Assistance with benefits, ID recovery. bank account and email set up. Help our homeless residents to obtain suitable permanent employment through the contacts that the charity has established with local companies. Talk to our homeless residents about our Christian faith. as we know from our own experience that nothing can restore lives as well and as pemanently as the truth about Jesus. iv. Doc ID.. 2bf435dd1387ca84c4ad6ca417364362bd703547 Embassy Trustees, annual report for the year ended I September 2024 Help our homeless residents to suc￿SsfUllY find and move into suitable permanent housing when the time is right. As each resident enters into a rental contract with the charity, we are able to write a reference for future landlords to help them move on. Help those who have moved into permanent housing to settle in and remain, through regular ongoing visits by our resettlement workers. This will include introducing them to an appropriate church near their new home if they wish us to. 2 Help our residents to help themselves by making the provision of accommodation subject to. by prior agreement.. The person remaining sober and free from drug abuse. The person engaging in the resettlement activities described above. 3 Ensure the safety and well-being of all residents, staff and volunteers by doing the following: Adhering to a comprehensive Safeguarding Vulnerable Adults policy. Only accept residents that come by risk assessed referrals from partner agencies. A.3 Statement on Public Benefit The trustees have noted and continue to follow the guidance issued by the Charity Commission on public benefit when defining the charity's objectives and activities. B. Achievements and Performance B.1 Continued the resettlement work This year, the charity has maintained a capability to accommodate and resettle 11 men and 4 women at any one time. Our achievements this year include: Embassy welcomed 12 new residents" We took 22 residents through our programme of resettlement activities. We helped 12 residents to enter employment" We helped 4 residents to study at colleges" We helped 5 residents to move on into more pemanent accommodation. We have also helped 6 ex-residents with various things, including external recovery sessions, many hours of continued support in their new homes with benefit checks, tenancy support, medical appointments, support al work, etc. Following the success of last year's trip, we took another small group of residents and staff out to Kenya to help build a school in a slum on the edge of Nairobi for the children of homeless families. The trip was largely funded by one-off gifts from people keen on supporting the trip. These trips are intended to give the residents a chance to see that they have something to offer the world, experience a different culture, and give them a confidence and desire to work. The impact on the residents is wide reaching, to see small children who have nothing, playing. laughing and loving one another is really eye opening. Residents will often talk about their own homelessness being difficult but once they have seen the children of the slum they begin to understand how lucky they are in comparison to the children. The residents themselves then want or support the children in other ways like financially when they come back to the U.K. Working closely Doc ID.. 2bf435dd1387ca84c4ad6ca417364362bd703547 Embassy Trustees, annual report for the year ended I September 2024 to the volunteers on the ground in Kenya also gives residents a fresh perspective on giving back to society and their own personal work ethics. We also took a group of 16, made up of staff, residents and volunteers, to climb Snowdon. This was a really special moment for so many of the group and this day really built a new understanding of what community can look like, especially when you are haI￿aY up a mountain and relying on each other to get to the top and back down again. Real friendships were formed and has allowed us to gain a deeper sense of trust with the residents. The charity is currently in negotiations to rent a purpose built 8-bedroom house. which also has an office, to significantly increase our capacity to accommodate women. The charity gratefully acknowledges grants totalling £40.000 that were made by the Wates Family Enterprise Trust for the women's resettlement work. B.2 Preparation for the creation of a homeless village The charity experienced further frustrating delays to the commencement of construction of the Village, which have been beyond the control of the charity. This included discovery of asbestos buried on the site to be built upon, which had to be removed by a specialist company. However. at the time of writing. construction is about to commence. with a ceremonial °spade in the ground- on 18th November 2024, with representatives of local government and supporting companies present. The event was broadcast on both BBC and ITV local news. Our principal funders, who have pledged funding of £3.5M, have continued to have faith in us, and by the end of the reporting period we had received a further £354.000 towards covering the shortfall resulting from escalating costs. B.3 Working towards becoming a Registered Housing Provider The charity had continued to pursue an application to become a Registered Housing Provider, as this will ensure that we receive exempt housing benefrt for all our residents who are on benefits, which will improve ourfinancial position as we grow. The charity has continued to employ the services of Altair Ltd. to facilitate the application, as Altair are experts in the field. We are grateful to Salford Council for their donations towards the cost of this activity. B.4 Continuous improvement The charity will continue to refine how it operates. aiming to efficiently provide its residents with a good experience while helping each one to find a job and to be r&housed without delay. This approach includes regular meetings of the director and resettlement workers to identify changes that are needed and how they should be implemented. Such learnings will be transferred to the operating of the Village. We are part of a 'working group, with Manchester City Council's adult social services, homeless team and revenue and benefits unit in order to plot a workable way forward both for referrals and income. We also have a steering group for the planned Village, which includes Peel (the landowner), Capital & Centric (who are developers) and The Greater Manchester Mayor's Charity. Doc ID.. 2bf435dd1387ca84c4ad6ca417364362bd703547 Embassy Trustees, annual report for the year ended I September 2024 C. Financial Review C.1 Charity's financial position A summary of the fInan￿S (to the nearest £) at the end of the charity s financial year are shown in the table below.. Amount Opening balance {ca￿led forward from previous year).. £ 207,956 Income (unrestricted).. £426,306 Income (restricted).. £438,509 Total income: £864,815 Staff payroll.. £221,865 Other costs: £202,023 Total outgoing: £423,888 Balance for the year: £440,927 Funds carried over to the next year: £648,883 This shows significantly more income than expenditure, but it should be noted that £354,000 of income was for the Village build project, which was yet to commence. Nonetheless. even excluding income restricted to the build, there was still a sizeable surplus. This is a welcome turnaround following last year's deficit. C.2 Reserves policy The charity aims to maintain unrestricted funds that are sufficient to cover at least three months of operating costs, including salaries and rent paid for property- At the end of the year our reserves, excluding restricted funds, covered 4.5 months of operating costs, thereby complying with the policy. In detail, at the end of the charity's reporting period (to the nearest £).. Amount Reserve held, i.e. 3 months of budgeted operational costs: £95,478 Total cash in bank and in hand= £560,848 Restricted cash in bank and in hand= £417,517 Unrestricted cash in bank and in hand: £143,796 Unrestricted cash in bank and in hand in excess of reserve: £48,318 The restricted funds are primarily.. Related to the Embassy Village build. which will therefore be used to pay the contractors when the build cOmmen￿s. Doc ID.. 2bf435dd1387ca84c4ad6ca417364362bd703547 Embassy Trustees, annual report for the year ended I September 2024 Related to employment of the resettlement manager and the women's resettlement workers, which will therefore continue to be used to pay the salaries and pension contributions of these staff at the earliest opportunities. The charity does not currently plan to realise any funds by disposing of tangible fixed assets or programme related investments. The unrestricted funds held in ex￿55 of the reserve is forecast to be required when additional staff are employed in readiness for the opening of the Embassy Village, i.e. the paying of salaries prior to when the rental income increases. C.3 Fundraising strategy The charity relies predominantly on donations for the funds required to do the work that we do, and therefore effective fundraising is essential. The charity has been blessed by the donations that we have received, especially the increasing number of individuals and businesses that give monthly, for which we are very grateful. Another source of income is rent paid by our residents. eitherdirectly by them from their wages rf employed or as housing benefits paid to the charity directly by local authorities for those residents who are unemployed or receive at least some universal Credit (also see B.3 above). The income that the charity re￿iVed during the year is shown in the table below. Source of income Amount Proportion Churches and other charities £60.476 Businesses £76,786 Individuals (including Gift Aid reclaim from previous year) £114,377 13°/ Charitable trusts and foundations £391.698 Local Authorities (including housing benefit) £183.765 Housing residents £16.235 HMRC (Gift Aid claim) £21,427 Interest paid by bank £51 C.4 Principal risks facing the charity The principal financial risk facing the charity is inevitably concerning the building of the Village. In particular. there is a risk that the cost of the build will exceed even the revised estimates and therefore the amounts already secured. This risk would be mitigated by additional fundraising andlor limiting the extent of the build to, for example, just 20 homes. until further funds can be raised. A secondary related risk is that fundraising for the building of the Village could take priority over fundraising for operating costs, which could result in the day-lo-day operations of the charity running at a deficit. This risk will be mitigated by ensuring a correct balan￿ of fundraising. With the assistance of Altair, our board has undertaken to adopt a risk register which considers the main risks and possible threats to the integrity and legal and financial stability of the charity. The risk register is Doc ID.. 2bf435dd1387ca84c4ad6ca417364362bd703547 Embassy Trustees, annual report for the year ended I September 2024 now considered as standard at all trustee meetings and risk levels can be upped or lowered for each identified risk as time goes on. Also new risks can be added or risks that are considered to have passed can be removed. 11 is a useful tool, common in business, and it gives us a good means of remembering and mitigating a broad range of important items to keep a close eye on. C.5 Factors likely to affect future financial perfonnance or position The following factors are expected lo affect future financial performance or position: a) The cost of the Embassy Village build will draw down the restricted funds that have been put aside for this build. b) A significant flow of cash will occur during the build of the Embassy Village as pledged amounts are released to pay the contractors. c) The number of residents will significantly increase when the 40 home Embassy Village and the new 8 apartment building open. This will affect finances in the following ways, both positive and negative, with a forecast small net improvement of financial performance.. Positive= rent will no longer be paid by the charity to landlords for some of the existing houses as these will no longer be needed. Positive= rent from residents, paid to the charity either directly or from local government as housing benefit, will increase. When Embassy s registration as a Registered Provider of social housing is complete, this will ensure the enhanced level of benefit is paid to the charity. Negative.. there will be ongoing costs to operate the Embassy Village. such as security. Negative.. employment costs will increase as additional resettlement staff and an administrator will be required. C.6 Future Plans In the coming year, Embassy expects to complete the construction of the Embassy Village. This should be built by November although rf there are any construction delays it could be a little later. So far we are building to schedule. We'll need to furnish and prepare the office. accommodation and training spaces and so we may or may not have residents in situ before Christmas. The plan is to have 16 new residents by the end of the tax year (Apr 2026) While we are building 40 homes. we plan on filling them in increments as we get used to managing more residents and the Village. We also are expecting to take on the lease of an apartment block being built to our specifications for the support of homeless women. The apartment block will house 9 women and a little office and training space. This is going to open in summer 2025. Exact date is unclear as it is still being built. Both the above projects represent Embassy having reached a level of experience over the past 5 years where we are now very happy with the product we deliver and feel confident that it works well for people and is sustainable so it is only right to increase the scale of the work and help more people. We'll take on a full-time administrator to help us with a growing administrative burden because of more housing benefit admin caused by having more residents plus Complian￿ as a registered housing provider. We'll also take on one more female resettlement worker in summer 2025 to help us support the growing number of female residents. We hope to recruit two more full time resettlement workers in September I October 2025 in order to train them in time for the village opening. This year we are very likely to become a registered Housing provider as we have come almost to the end of the application process and the registrar of social housing is looking favourably on the charity. This in turn means we are looking to grow the number of trustees and broaden the skill set to include those with Doc ID.. 2bf435dd1387ca84c4ad6ca417364362bd703547 Embassy Trustees, annual report for the year ended I September 2024 housing and legal experien￿. We have just taken on one new trustee and hope to add about three more as soon as possible. Our upcoming May meeting has 4 carefully chosen guests attending who are considering trusteeship. We don't have any further short temi expansion plans currently. We feel we have plenty of new growth to get used to for the time being. That being said, there is a lot of appetite and interest from GMCA (the Greater Manchester Combined Authority) and both Salford and Manchester City Councils and also from political lead Cllr Bev Craig. Both Andy Bumham and Bev Craig have asked us to build multiple villages. We in turn have asked for patience while we do one village well. We aren't interested in duplicating until we have experience under our belts. D. Structure, Governance and Management D.1 How the charity is constituted A Charitable Incorporated Organisation (CIO). whose only voting members are its charity trustees {'Foundation' model constitution). D.2 The governing document A Constitution document that follows Charity Commission guidelines. D.3 Trustee selection and induction The name of suitable person known by one or more of the trustees, who has the necessary experience and background, is brought to a formally convened trustees meeting. A vote is then taken and recorded in the meeting minutes. Because we are becoming a registered housing provider, we'll remain accountable to the Charity Commission but also to the RSH. As previously mentioned this means a significant increase in the scrutiny of the charity especially around consumer standards and health and safety. The Board of trustees will need to grow in breadth of experience and also the charity has decided to take on an administrator full time to help ensure we get this right. The board have also employed Altair over the past year and a half to act as our advisors in both accession to RP status but also thereafter to help us as we establish ourselves, especially in the first 12 months of operating. We have taken on over 40 new policies and procedures to become compliant and one of the team, our resettlement manager has completed a degree course in housing management to comply with the latest government requirements for registered housing providers. Trustees have carried out a board skills assessment with the help of Altair and also a co-optee to the board this past 12 months. who as the director of a hosing association in Liverpool. She has been extremely helpful in establishing and streamlining our pro￿sses. The board have asked me to seek out trustees with skill sets filling key areas including housing and legal. We have also fomialised our application process for trustees by introducing an application form, a policy and also a board service agreement to help crystalise what trusteeship means D.4 Size of charity Income during the past financial year was £864.815. D.5 How the charity is governed Regularly convened meetings of the Iruslees. at which minutes are taken. D.6 Policies in place Doc ID.. 2bf435dd1387ca84c4ad6ca417364362bd703547 Embassy Trustees, annual report for the year ended I September 2024 Safeguarding vulnerable adults policy. GDPR policy; risk assessment,. operating procedures to ensure the safety of residents, volunteers and employees. In addition. a comprehensive suite of policies are being prepared as part of the charities application to be Registered Housing Provider (see B.3 above) D.7 Related parties and relationships with other organisations None. E. Statement of responsibilities of the trustees The trustees are responsible for preparing the trustees. annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Charity 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 charity and of the incoming resources and application of reSoUr￿s, including the income and expenditure. of the charity forthat period. In preparing these financial statements, the trustees are required to: Select suitable accounting policies and then apply them consistently., Observe the methods and principles in the Charities SORP: Make judgements and estimates that are reasonable and prudent. State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements- and Prepare the financial statements on the going con￿rn basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping properaccounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities SORP. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the rna1ntenan￿ and integrity of the corporate and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in otherjurisdictions. The trustees, annual report has been approved by the trustees on 25 April 2025 and signed on their behalf by: Name.. Antony Bullivant Title.. Chair of trustees Doc ID.. 2bf435dd1387ca84c4ad6ca417364362bd703547 Independent examiner's report to the trustees For the year ended I September 2024 I report on the accounts of the charity for the period ending 1 September 2024 set out on pages 11 to 25. Respective responsibilities of trustees and examiner The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year under seclion 144 of the Charities Act 2011 ('the Chartties Act") and that an independent examination is needed. It is my responsibility to= examine the accounts under section 145 of the Charities Act, to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5){b) of the Charities Act. and to state whether particular matters have come to my attention. Basis of independent examiner's statement My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit. and consequently no opinion is given as to whether the accounts present a 'true and fair. view and the report is limited to those matters set out in the statement below. Independent examinerfs statement In connection with my examination, no matter has come to my attention: 1. which gives me reasonable cause to believe that. in any material respect, the requirements.. to keep accounting records in accordance with section 130 of the Charities Act; and to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act have not been met" or 2. to which. in my opinion, attention should be drawn in orderto enable a proper understanding of the accounts to be reached. i¢A+7 PK'II,. Adrian Phillips FCA Arlo Accountancy Limited 107 Valley Road Stockport SK4 2DB 2810412025 10 Doc ID.. 2bf435dd1387ca84c4ad6ca417364362bd703547 Ernbassy Stalernent of Finanual ACtivit￿S for the year ended 1 Septembei 2024 ￿n￿StriCted funds Restricted funds Totsl funds 2024 un￿$t￿¢ted fvnds Restsy¢ted funds Total funds 2023 Note Income from.. Donations and legacies 261.296 438.509 699.805 176.832 51.878 228.650 Charitsble a¢tivities 165.010 165.010 56.636 56.636 Total Income 426,306 438.509 8fj4.815 233,468 51,818 285,286 Expenditure on.. Raising funds 38.498 41.567 31.829 3.035 34.864 Charitable activitses 314.898 67.423 382.321 234.942 42,Q44 2T6.966 Total expendllu 3S3.396 70A92 423.888 266,771 45,079 311,850 Net incomell8xp8nditurel forthe year 72.910 368.017 440.927 (33.303) 6.739 (26.564) Transfer between funds Net movement In fvnds for the year 72.910 368.017 440.927 (33,303) 6,739 (26,564) Reconciliation of funds Total funds brought forward 138,547 69,409 207,956 171,850 62,670 234,520 Total funds carried forward 211,457 437.426 648.883 138,547 69.409 207.956 The ststement of financial activities indudes all gains and bsses recx)gnised in Ihe year_ Al in(x)rn8 and expenditur8 d8rive from ￿)ntinUIng acti¥￿eS. Doc ID.. 2bf435dd1387ca84c4ad6ca417364362bd703547 Embassy Balance sheet as at 1 September 2024 Note 2024 2023 Fixed Assets Tangible Assets 65.043 44, 692 65,043 44,692 Current assets Debtors Cash at bank and in hand 12 13 32,819 560,848 14,45T 154, 153 Total current assets 593,667 168,610 Liabilities Creditors.. amounts falling due in less than one year 14 {9,827) (5,346) Net current assets 583,840 163,264 Total assets less current liabilities 648.883 207,956 Net assets 648,883 207,956 The funds of the charity: Restricted income funds Unrestricted income funds 17 18 437,426 211.457 69,409 138,547 Total charity funds 648,883 207,956 For the year in question, the charity was entitled to exemption from an audit under section 144 of the Charities Act 2011. The Charity Commission has not ordered an audit to be carried out under Section 146 of Charities Act2011. The notes on pages 14 to 25 fom part of these accounts. Approved bv the trustees on 25 April 2025 and signed on their behalf h Antony Bullivant (Chair) Richard Selby (Treasurer) 12 Doc ID.. 2bf435dd1387ca84c4ad6ca417364362bd703547 Embassy Statement of Cash Flov￿ as at 1 September 2024 Note 2024 2023 Cash provided byl(used in) operating activities 16 431,209 (31,512) Cash flows from investing activities." Purchase of tangible fixed assets (24.514) (32.205) Cash used in investing activities (24,514) (32,205) Increasel(decrease) in cash and cash equivalents in the year 406,695 (63.717) Cash and cash equivalents at the beginning of the year 154.153 217,870 Total cash equivalents at the end of the year 560,848 154, 153 13 Doc ID.. 2bf435dd1387ca84c4ad6ca417364362bd703547 Embassy Notes to the accounts for the year ended I September 2024 Accounting policies The principal accounting policies adopted, judgments and key sources of estimation uncertainty in the preparation of the financial statements are as follows: a Basis of preparation These financial statements have been prepared in accordance with 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) (effettive l January 2019), with FRS 102 and with the requirement5 of the Charitie5 Act 2011. Embassy meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £ Sterling. b Judgments and estimates The trustees have made no key judgements which have a significant effecct on the accounts. The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next reporting period. c Preparation of the accounts on a going concern basis The trustee5 consider that there are no material uncertainties about the charitable company's ability to continue as a going concern. d Income Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably. Income from government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. Income received in advance of a provision of a specified service is deferred until the criteria for income recognition are met. 14 Doc ID.. 2bf435dd1387ca84c4ad6ca417364362bd703547 Embassy Notes to the accounts for the year ended I September 2024 (continued) e Donated services and facilities Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised. refer to the trustees, annual report for more information about their contribution. On receipt, donated professional sen4ice5 and donated facilities are recognised on the basis of the value of the gift to the charity which 15 the amount the charity would have been willing to pay to obtain services or facilitie5 of equivalent economic benefit on the open market. a corresponding amount is then recognised in expenditure in the period of receipt. f Interest receivable Interest on funds held on deposit 15 included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank. g Fund accounting Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity. h Expenditure and irrecoverable VAT Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings: Costs of raising funds comprise the costs of staff time in fundraising activities. Expenditure on charitable activitie5 includes the costs of undertaking resettlement support to further the purposes of the charity and the associated support costs. Irrecoverable VAT is charged as a cost against the activity for which the expenditure 15 Doc ID.. 2bf435dd1387ca84c4ad6ca417364362bd703547 Embassy Notes to the accounts for the year ended I September 2024 (continued) i Allocation of support costs Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support Costs consist of governance costs which are wholly attributable to charitable activities. j Operating leases Operating leases are leases in which the title to the assets, and the risks and rewards of ownership, remain with the lessor. Rental charges are charged on a straight line basis over the term of the lease. k Tangible fixed assets Individual fixed assets costing £500 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a straight line basis: Motor vehicles Land and buildings - not yet depreciated as under construction l Debtors Trade and other debtor5 are recognised at the Settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade di5count5 due. m Cash at bank and in hand Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Creditors and provisions Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. o Financial instruments The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. 16 Doc ID.. 2bf435dd1387ca84c4ad6ca417364362bd703547 Embassy Notes to the accounts for the year ended I September 2024 (continued) p Pensions Employees of the charity are entitled to join a defined contribution scheme. The charity's contribution is restricted to the contributions disclosed in note 9. There were outstanding contributions of £1,212 (2023: £1,099) at the year end which were paid over in September 2024. The costs of the defined contribution scheme are included within charitable activities, support and governance costs and allocated to funds in line with the area the employee is funded. Legal status of the charity The charity is a charitable incorporated organisation registered in England and Wales and has no share capital. The registered office address is disclosed on page l. 17 Doc ID.. 2bf435dd1387ca84c4ad6ca417364362bd703547 O)v co