**Registered number: 11451182 Charity number: 1192933**
## **TRAFFIKANALYSIS HUB**
**(A company limited by guarantee)**
**DIRECTORS' REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 AUGUST 2021**
## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **CONTENTS**
||Page|
|---|---|
|**Reference and administrative details of the charity, its trustees and advisers**|1|
|**Trustees’ report (incorporating a Directors’ report)**|2 – 7|
|**Independent auditor’s report**|8 – 11|
|**Statement of financial activities**|12|
|**Balance sheet**|13|
|**Cash flow statement**|14|
|**Notes to the financial statements**|15 – 23|
## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2021**
**Directors** W Peace E Mitchel-Hill Dr N Fishwick (appointed 25.03.2021) G Miller (appointed 25.03.2021) J Cusack Professor A Henderson (appointed 25.03.2021) J Planner (appointed 25.03.2021) R Dearnley OBE J McGrath (resigned 14.10.2021) **Company number** 11451182 **Charity number** 1192933 **Registered office** 1a Kennington Road London SE1 7QP **Company Secretary** P Atherton **Chief Executive Officer** Neil Giles **Independent Auditor** Mercer & Hole 21 Lombard Street London EC3V 9AH
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## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **TRUSTEES’ REPORT (Incorporating Directors’ Report) FOR THE YEAR ENDED 31 AUGUST 2021**
The Directors (who are also trustees of the charity for the purposes of the Charities Act) present their annual report together with the audited financial statements of TRAFFIKANALYSIS HUB (the company) for the year ended 31 August 2021. The Directors confirm that the annual report and financial statements of the company comply with the Companies Act 2006, the Charities Act 2011, the requirements of the company's governing document and the provisions of the Charities SORP 2019 applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
## **Structure, governance and management**
## **a. Constitution**
TRAFFIKANALYSIS HUB (“TAH”) is a global data hub whose purpose is to end the buying and selling of people by negating the economic advantage to those who traffic. The TRAFFIKANALYSIS HUB concept arose from a campaign initiated by Oasis Charitable Trust and Stop The Traffik and has grown successfully in its first year
TRAFFIKANALYSIS HUB, the company, was set up by a Memorandum of Association on 5 July 2018. It is also a registered charity, number 1192933. Stop The Traffik (“STT”) is the founding member of the charitable company; TRAFFIKANALYSIS HUB is a subsidiary company of STT which is itself a subsidiary of Oasis International Association. (“OIA”)
TRAFFIKANALYSIS HUB holds the name and legal rights to the use of the brand. The right to grant partnership status to any third party entity either to operate on a national or regional basis remains the prerogative of the TRAFFIKANALYSIS HUB board. These accounts and reports represent the activities of TRAFFIKANALYSIS HUB within the UK only. TRAFFIKANALYSIS HUB does not have any subsidiaries. The principal object of the company is to promote Human Rights (as set out in the Universal Declaration of Human Rights, and safeguarded by the Final Protocol to the Convention for the Suppression of the Traffic in Persons and of the Exploitation of the Prostitution of Others (1950), the United Nations Convention on the Abolition of Slavery, the Slave Trade and Institutions and Practices Similar to Slavery(1975), the United Nations Convention on Transnational Organised Crime with its Supplementary Protocol to Prevent, Suppress and Punish Trafficking in Persons, Especially Women and Children (2003) and any other United Nations conventions and declarations) and to prevent the infringement of human rights by people trafficking throughout the world.
The Directors have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the aims and objectives and in planning future activities. In particular, the Directors consider how planned activities will contribute to the aims and objectives they have set.
## **b. Method of appointing Directors**
The management of the company is the responsibility of the Directors who are elected and co-opted under the terms of the Articles of Association. The appointment of new Directors is subject to the approval of the Directors of OIA.
## **c. Policies adopted for the induction and training of Directors**
New Directors are given a full induction and training as required.
## **d. Remuneration of Key Management Personnel**
The key management personnel of the Trust comprise the trustees and senior management team. The pay for all senior staff follows the pay scales of the organisation which are evaluated according to the responsibilities of the post, with set grades and increments of pay. The pay of the Chief Executive is benchmarked with charities of comparable scale and reach and approved by the Boards.
## **e. Organisational structure and decision making**
The Directors have delegated day to day management of the company to the CEO but retain responsibility for major strategic and governance decisions. In order for TRAFFIKANALYSIS HUB to operate efficiently, the
Page 2
## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **TRUSTEES’ REPORT (Incorporating Directors’ Report) FOR THE YEAR ENDED 31 AUGUST 2021**
structure has developed in the year 2020/21 as follows:
## **f. Risk management**
The Directors have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company in relation to Covid-19, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
The risks and impact of Covid-19 has been assessed by the Directors and there is limited effect on the overall forecast position of the Company for the next 12 months. We have confirmed commercial commitments from our major hub participants covering the period to August 2022 and beyond. We have changed our operations to ensure we are protecting our staff, partners and others we work with, taking into account the social distancing measures that the Government have recommended. Covid-19 does not put the sustainability or financial performance at risk.
Other key areas of risk are ensuring that adequate financial resources continue to sustain delivery, putting in place sustainable commercial relationships and adequate relationships with government and law enforcement and ensuring sufficient capacity to adequately manage ongoing growth. A risk register is maintained and reviewed on a regular basis and steps are taken to mitigate these risks.
## **g. Financial review**
Total income for the year ended 31 August 2021 amounted to £250,971 (2020: £Nil). Costs of raising voluntary income was £2,000 (2020: £Nil) and charitable activity expenditure was £173,100 (2020: £Nil). Overall a surplus of £75,871 (2020: £Nil) is reported for the year helping to build reserves in order to combat future fluctuations along with a very robust strategic plan. During the year TAH was awarded grants to allow for building a national network of hubs, broadening the reach of the charity and assisting in working towards achieving this key objective.
TRAFFIKANALYSIS HUB’s income is generated through two distinct income streams; donations and fees for access to the hub. All the income streams contribute towards the objectives of TAH in making human trafficking uneconomic through intelligence-led prevention.
TRAFFIKANALYSIS HUB also received a number of donated services during the year. The company is very grateful to the relevant providers of those services. No financial value has been attributed to these services in the financial statements as the related activities would not have been undertaken if this time had not been donated. In addition, TRAFFIKANALYSIS HUB relies on volunteer time in order to carry out its activities at a local level. In line with the Charities SORP, this time has not been valued and included in the financial statements but amounts to an estimated 500 hours (2020: Nil). We thank all of the volunteers who have contributed to TRAFFIKANALYSIS HUB in this year.
## **h. Reserves**
The Directors continue to review TRAFFIKANALYSIS HUB's need for reserves in line with the guidance issued by the Charity Commission and have adopted a policy to set aside funds of approximately three months of salaries and 1 month of other costs which is estimated to be £55,000. The level of funds at 31 August 2021 is £75,871 (2020: £Nil).
## **i. Going concern**
The Directors have considered the risks, including the impact of Covid-19, and these include the ability for the charity to carry out its activities in an environment where social distancing rules are expected to be in force for some time. Most activities can continue to be delivered from a digital platform. The Directors have confirmed that the major sources of grant funding are committed and the delivery of the activities can be adjusted to ensure that guidelines around social distancing can still be applied. Furthermore, the Directors are confident that costs will only be incurred to the extent that income is secured. The Directors are confident that the charity has adequate resources to continue operating for the foreseeable future and, for this reason, the Directors continue to adopt the going concern basis in preparing the accounts.
The level of total reserves as at 31 August 2021 is £75,871 (2020: £Nil).
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## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **TRUSTEES’ REPORT (Incorporating Directors’ Report) FOR THE YEAR ENDED 31 AUGUST 2021**
## **Strategic Objectives**
Our Vision is to challenge and break the errant economic equation that sustains human trafficking and exploitation. To make trafficking and exploitation so transparent to every actor, in every sector, so that engaging with it, or not, is a clear choice.
Our Mission is to create the worlds greatest and most accessible repository of stories of trafficking and exploitation and we are already pre eminent in this. We will amplify victim voices and build an audience. To grow the largest multi-sector intelligence community, through which every actor, in every sector, has constantly improving access to insights that enable smarter questions; undermine trafficker ability to recruit new victims; spot and stop the money flows that are the proceeds of trafficking; and undermine demand for products and services of those in exploitation.
## **Our goals for the coming year (to 31[st] August 2022)**
1. Our strong analysis to date has established that trafficking and exploitation is reliant on 3 key economic fundamentals, in that in needs constant and ready access to a pool of new recruits; it needs to be able to access financial services to facilitate their activity; and to create and maintain demand for the products and services of those in exploitation. Traffik Analysis Hub will further develop a routine of publishing intelligence insights and analysis to a wide audience to help shape their response to trafficking and exploitation. For multi lateral agencies, such as the UN and Interpol to influence their policy development and their practice on the ground. To describe for business and financial services just how trafficking and exploitation interact with their markets and supply chains and to do this through the publication of ‘typologies’ that compliance systems can adopt. And we will work with law enforcement to enhance their understanding of victim narratives.
2. We will invest strongly in the development of intelligence opportunities from the data we have and the network of on the ground NGOs that are amongst our community. We know from experience that intelligence shared effectively has a far greater chance of bringing to justice offenders, safeguarding the vulnerable in a timely fashion and reducing opportunities for exploitation to thrive. We will employ investigator expertise to research and build these intelligence products and then share them accountably with a defined audience of law enforcement and regulated businesses. We know that many compliance teams have little time to investigate, so pushing to them reporting that is easy to cross match with their systems is key to success. We expect to circulate in excess of 50 such reports this coming year.
3. We will collect evidence that the insights and analysis we publish are influencing policy and practice development in governments, businesses and the NGO sector. Here are some feedback comments from this year:
_The Hub is the central data repository for providing clues because it informs NGOs like The Knoble about where resources should be allocated._ | Glenn Carson, The Knoble
_The Hub allows users such as NGOs and law enforcement to better understand such trafficking tactics, tackle these business models, and focus resources accordingly._ | Cristina Hiddleston, Justice & Care
_The primary strengths of Traffik Analysis Hub are that it allows users to visualize the demand, question the registered data, add to further research, and debunk any myths using evidentiary findings. Essentially, there was a gap in the trafficking NGO community between other organizations and companies that have now been closed by the Hub_ | Erin Ku, Business Economics & Data Science Student, University of Chicago
_Without question, Traffik Analysis Hub has made it more difficult for traffickers to recruit vulnerable victims. The Hub has not only changed the way we share data but the way we feel about sharing data. It allows users to access and analyze the same information that has previously only been available to_
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## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **TRUSTEES’ REPORT (Incorporating Directors’ Report) FOR THE YEAR ENDED 31 AUGUST 2021**
_law enforcement and financial institutions, allowing NGOs to allocate resources with greater efficiency than ever before._ | Erin Chu, Business Economics & Data Science Student, University of Chicago
4. We expect to double the available data in the Hub (currently at 1m records) for users to analyse during the coming year. Traffik Analysis Hub is already a powerful community of in excess of 100 organisations, with every continent represented in the set. Of these, over 70 are NGOs that work with the survivors of trafficking and exploitation and many have yet to record the experience of the victims they serve. Through a programme named ‘Power of 10’ we are investing time and expertise in these NGOs to enable them to safely collect data (victim narratives) and to share it through the Hub. When brought together using Hub analytics, these narratives form powerful and influential assessments for a range of actors. As we move through this year, we will continue to draw into the Hub more data sets of this nature from partners as well as to form strategic data partnerships.
5. We expect to become financially stable this year. Our financial model remains a combination of charging business subscriber users an annual license fee to access the Hub and its services and additional support from charitable fundraising. The Hub is made available to NGOs, academia and law enforcement at no cost. We believe that we will be financially and operationally sustainable with an income of £500k (approximately 30 business subscribers) together with charitable fundraising of circa £250k per year. We have already attracted an EU grant of €230k over 2 years and have engaged the services of a professional fundraiser. This model includes offering seed funding to regional representation (Latin America / Asia Pacific / USA / Canada / SW Asia / Africa) and the provision of some funding to enable NGO data contributors to streamline their work. We have invested a great deal of energy in building a pipeline of potential subscribing businesses. At the end of the 2020 / 2021 business year we had 11 subscribers and annual income from this of £220k. We reasonably expect to triple this during 2021/2022.
6. We will continue to invest in technology and data management systems throughout the year ahead to ensure we remain pre-eminent in this sphere. Our pro bono support from IBM ceased in March 2021 and we are currently funding development under contract at the rate of £20k per month. Our advisors are already seeking ‘big tech’ support and investment for the next stage of development of the Hub as a technology platform.
7. We will invest in the development of our existing team members to improve their productivity and skills this year, through in house and external training. We will also bring in new skills through recruitment to key roles the first of which is to further professionalise our sales and marketing resource and enable stronger interaction with the existing subscription license fee paying group, ensuring we respond to their feedback and constantly seek to improve their user journey. This will give the organisation increased resilience and as our financial picture improves, enable us recruit to additional roles in an informed fashion.
8. We will build our marketing of Traffik Analysis Hub substantially in the first quarter of this financial year by rebuilding and relaunching our web site; developing high quality video demonstrations to improve our reach and capacity; through engaging with pro bono professional advice via the Miroma agency and Trustee expertise and finally substantially reorganize our client resource management practice. All of which will make the resources we have go further and faster.
9. We are fortunate to carry in this year our pre existing pro bono relationship with Clifford Chance LLP, and they continue to provide legal advice on our structure and governance as well the highest quality advice on data privacy globally.
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## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **TRUSTEES’ REPORT (Incorporating Directors’ Report) FOR THE YEAR ENDED 31 AUGUST 2021**
10. We will seek to develop important influencers in politics, business and human rights to enhance the audience for our approach and the analysis and insights we offer. During the current year encouraging signs of changed approaches to exploitation have begun to emerge and influential advocates are important to our progress.
11. We will continue to encourage new entrants from amongst human rights and anti trafficking NGOs to participate in Traffik Analysis and by the end of 2021/2022 financial year to have passed the 200 user organisations mark. We also expect to see the beginning of a global network of regional representation of Traffik Analysis Hub operating as subsidiaries and through this local approach to be more relevant in a range of business and societal contexts.
12. We expect to remain a strong element of the STOP THE TRAFFIK group.
## **Statement of Directors’ responsibilities**
The Directors (who are also trustees of TRAFFIKANALYSIS HUB for the purposes of charity law) are responsible for preparing the Directors' 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 Directors to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Directors must not approve the financial statements unless they are satisfied that they 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 Directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and 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.
## **Provision of information to auditors**
Each of the persons who are Directors at the time when this Directors' report is approved has confirmed that:
- so far as that Director is aware, there is no relevant audit information of which the charitable company's auditor is unaware, and
- that Director has taken all the steps that ought to have been taken as a Director in order to be aware of any information needed by the charitable company's auditor in connection with preparing their report and to establish that the charitable company's auditor is aware of that information.
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## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **TRUSTEES’ REPORT (Incorporating Directors’ Report) FOR THE YEAR ENDED 31 AUGUST 2021**
## **Auditors**
Mercer & Hole were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution that they be re-appointed will be put at a General Meeting.
In preparing this report, the Directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
This report was approved by the Directors on **16 December 2021** and signed on their behalf by:
## **Ruth Dearnley Trustee**
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**TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **Independent Auditor’s Report to the Members of TraffikAnalysis Hub**
## **Opinion**
We have audited the financial statements of TraffikAnalysis Hub (the ‘charitable company’) for the year ended 31 August 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:
- give a true and fair view of the state of the charitable company’s affairs as at 31 August 2020 and of its incoming resources and application of resources, including its income and expenditure, for the year then 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 Act 2006.
## **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 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 audit opinion.
## **Conclusions relating to going concern**
We have nothing to report in respect of the following matters in which the ISAs (UK) require us to report to you where:
- the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate, or
- the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
## **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.
Page 8
## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **Independent Auditor’s Report to the Members of TraffikAnalysis Hub**
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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:
- the information given in the Trustees’ Report, which includes the Directors’ Report prepared for the purposes of Company Law for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Directors’ Report which is included in the Trustees’ Report, has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report or the Trustees’ 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:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit, or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the Trustees’ Report and from the requirement to prepare a Strategic Report.
## **Responsibilities of trustees**
As explained more fully in the Trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purpose 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 but to do so.
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## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **Independent Auditor’s Report to the Members of TraffikAnalysis Hub**
## **Auditor’s responsibilities for the audit of the financial statements**
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 extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
## **Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud**
Based on our understanding of the company and industry, we identified that the principal risks of noncompliance with laws and regulations related to breaches in Health & Safety and General Data Protection Regulations, and we considered the extent to which non-compliance may have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and the financial report (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate entries including journals to overstate revenue or understate expenditure, and management bias in accounting estimates.
Audit procedures performed by the engagement team included:
- discussions with management, including considerations of known or suspected instances of noncompliance with laws and regulations and fraud;
- evaluation of the operating effectiveness of management's controls designed to prevent and detect irregularities;
- identifying and testing journal entries.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **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.
Helen Cain _, Senior Statutory Auditor_
For and on behalf of Mercer & Hole, Statutory Auditor
Mercer & Hole is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
21 Lombard Street London EC3V 9AH
Date: 23 December 2021
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## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **STATEMENT OF FINANCIAL ACTIVITIES (Incorporating an Income and Expenditure Account) FOR THE YEAR ENDED 31 AUGUST 2021**
|**Note**
**INCOME FROM:**
Donations and legacies
2
Other trading income
3
**TOTAL**
**EXPENDITURE ON:**
Raising funds
4
Charitable activities
5
**TOTAL**
**INCOME/(EXPENDITURE) FOR THE**
**YEAR, BEING NET MOVEMENT IN**
**FUNDS**
_Total funds at 1 September 2020_
**TOTAL FUNDS AT 31 AUGUST 2021**|**Unrestricted**
**funds**
**2021**
**£**
**97,056**
**153,915**|**Designated**
**funds**
**2021**
**£**
**-**
**-**|**Restricted**
**funds**
**2021**
**£**
**-**
**-**|**Total**
**funds**
**2021**
**£**
**97,056**
**153,915**|_Total_
_funds_
_2020_
_£_
-
-
-|
|---|---|---|---|---|---|
||**250,971**|
**-**|
**-**|
**250,971**|
-|
||**2,000**
**173,100**|
**-**
**-**|
**-**
**-**|
**2,000**
**173,100**|
-
-|
||**175,100**|
**-**|
**-**|
**175,100**|
-|
||**75,871**
_-_|
**-**
_-_|
**-**
_-_|
**75,871**
**-**|
-
-|
||**75,871**|
**-**|
**-**|
**75,871**|
-|
The notes on pages 15 to 23 form part of these financial statements.
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## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **BALANCE SHEET AS AT 31 AUGUST 2021**
|**Note**
**CURRENT ASSETS**
Debtors
9
Cash at bank and in hand
**CREDITORS:**amounts falling due within
one year
10
**NET CURRENT ASSETS**
**NET ASSETS**
**CHARITY FUNDS**
Unrestricted funds
11
Restricted funds
11
**TOTAL FUNDS**
11|
**£**
**50,258**
**101,707**|**2021**
**£**
**75,871**|
_£_
_-_
-|_2020_
_£_
-|
|---|---|---|---|---|
||**151,965**
**(76,094)**||-
-||
||||
||
|||**75,871**||-
-
-|
|||**75,871**
**-**|||
|||**75,871**||-|
The financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies’ regime within Part 15 of the Companies Act 2006.
The financial statements were approved and authorised for issue by the board on and were signed on its behalf by:
## **Ruth Dearnley Trustee**
The notes on pages 15 to 23 form part of these financial statements.
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## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2021**
|**Cash flows from operating activities**
Net income
Adjustments for:
(Increase)/Decrease in debtors
Increase/(Decrease) in creditors
**Net cash generated from operating activities**
**Net increase in cash in the year**
**Reconciliation of net cash flow movements to net funds**
Net increase in cash in the year
At 1 September
**At 31 August**
Consisting of:
Barclays Current Account|**2021**
**£**
**75,871**
**(50,258)**
**76,094**
**101,707**
**101,707**
**101,707**
**-**
**101,707**
**101,707**
**101,707**|_2020_
_£_
_-_
_-_
_-_|
|---|---|---|
|||_-_|
|||_-_|
|||_-_
_-_|
|||_-_|
|||_-_|
|||_-_|
The notes on pages 15 to 23 form part of these financial statements.
Page 14
## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **1. ACCOUNTING POLICIES**
- **1.1 Basis of preparation of financial statements**
- The accounts (financial statements) have been prepared in accordance with the Charities SORP (FRS102) applicable to charities preparing their accounts in accordance with FRS102 the Financial Reporting Standard applicable in the UK and Republic of Ireland, the Companies Act 2006, the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
## **1.2 Company status**
The company is a company limited by guarantee, incorporated and domiciled in the UK and is a public benefit entity. Stop The Traffik is the sole member of the company. The address of the registered office is 1a Kennington Road, London, SE1 7QP. In the event of the company being wound up, the liability in respect of the guarantee is limited to £10 per member of the company. Details of the principal activities of the company are given within the Directors’ Report. The accounts have been prepared in GBP and have been rounded to the nearest pound.
## **1.3 Going concern**
The Directors have considered the risks to the Company, including the impact of Covid-19, and these include a reduction in business income and the ability for the Company to carry out its activities in an environment where social distancing rules are expected to be in force for some time. The Directors have confirmed that the major sources of grant funding are committed and the delivery of the activities can be adjusted to ensure that guidelines around social distancing can still be applied. Furthermore, the Directors are confident that costs will only be incurred to the extent that funding is secured. The Directors are confident that the Company has adequate resources to continue operating for the foreseeable future and, for this reason, the Directors continue to adopt the going concern basis in preparing the accounts.
- **1.4 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Directors in furtherance of the general objectives of the company and which have not been designated for other purposes.
Designated funds are funds that have been set aside by the Trustees for a specific purpose. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors which have been raised by the company for particular purposes. The cost of raising and administering such funds are charged against the specific fund.
## **1.5 Income**
All income included in the Statement of Financial Activities when the company is legally entitled to the income and the amount can be quantified with reasonable accuracy and the likelihood of receipt of the income is probable. Income includes gifts, donations and trading income as listed in notes 2 and 3. Gifts and donations are recognised when receivable and grant income is recognised in the period applicable for the grant funding. Income received in advance for future periods is held as deferred income.
The company received a number of donated services during the year. The company is very grateful to the relevant providers of those services. No financial value has been attributed to these services in the financial statements as the related activities would not have been undertaken if this time had not been donated. In addition, TRAFFIKANALYSIS HUB relies on volunteer time in order to carry out its activities. In line with the Charities SORP, this time has not been valued and included in the financial statements but amounts to an estimated 500 hours. We thank all of the volunteers who have contributed to TRAFFIKANALYSIS HUB in this year.
Page 15
## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **1.6 Expenditure**
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:
Expenditure on raising funds includes costs associated in raising individual giving income.
Expenditure on charitable activities includes the costs of educational activities undertaken to further the purposes of the charity and their associated support costs.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back-office costs, finance, personnel, payroll and governance costs which support TAH’s operations and activities.
## **1.7 Pensions**
STT employs all staff. STT operates a defined contribution pension scheme. Contributions are charged to the income and expenditure account of STT as they become payable in accordance with the rules of the scheme. See note 9 “Staff Costs” for further explanation
## **1.8 Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid after taking account of any trade discounts due.
## **1.9 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.
## **1.10 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.
## **1.11 Financial instruments**
The company 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. Financial assets held at amortised cost comprise cash and bank and in hand, together with trade and other debtors. Financial liabilities held at amortised cost comprise bank loans and overdrafts, trade and other creditors.
Page 16
## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **1.12 Critical accounting judgements and key sources of estimation uncertainty**
In the application of the company’s accounting policies, the directors are required to make judgements, estimates, assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects the current and future periods.
In the view of the directors, no assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.
## **2. DONATIONS AND LEGACIES**
|Donations
Grants|**Unrestricted**
**funds**
**2021**
**£**
**35,040**
**62,016**|**Designated**
**funds**
**2021**
**£**
**-**
**-**|**Restricted**
**funds**
**2021**
**£**
**-**
**-**|**Total**
**funds**
**2021**
**£**
**35,040**
**62,016**|_Total_
_funds_
_2020_
_£_
-
-|
|---|---|---|---|---|---|
||**97,056**|
**-**|
**-**|
**97,056**|-|
## **3. OTHER TRADING INCOME**
|Hub participation
fees|**Unrestricted**
**funds**
**2021**
**£**
**153,915**
**-**|**Designated**
**funds**
**2021**
**£**
**-**
**-**|**Restricted**
**funds**
**2021**
**£**
**-**
**-**|**Total**
**funds**
**2021**
**£**
**153,915**
**-**|_Total_
_funds_
_2020_
_£_
-
-|
|---|---|---|---|---|---|
||**153,915**|
**-**|
**-**|
**153,915**|-|
Page 17
## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **4. EXPENDITURE ON RAISING FUNDS**
|Fundraising consultancy|**Unrestricted**
**funds**
**2021**
**£**
**2,000**|**Designated**
**funds**
**2021**
**£**
**-**|**Restricted**
**funds**
**2021**
**£**
**-**|**Total**
**funds**
_Total_
_funds_
**2021**
**£**
_2020_
_£_
**2,000**
-|
|---|---|---|---|---|
## **5. EXPENDITURE ON CHARITABLE ACTIVTIES**
|Travel and subsistence
Communication costs
Bank charges
Office costs recharge
Wages and salaries
National Insurance recharge
Pension cost recharge
Consultancy
Equipment cost
Marketing
Hub Development charges
Subscriptions
Realised Currency Losses
Legal Expenses
Audit costs
Software charges|**Unrestricted**
**funds**
**2021**
**£**
**36**
**122**
**37**
**4,810**
**80,481**
**8,439**
**5,634**
**22,338**
**449**
**6,000**
**40,000**
**35**
**466**
**13**
**2,000**
**2,240**|**Designated**
**funds**
**2021**
**£**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**|
**Restricted**
**funds**
**2021**
**£**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**|**Total**
**2021**
**£**
**36**
**122**
**37**
**4,810**
**80,481**
**8,439**
**5,634**
**22,338**
**449**
**6,000**
**40,000**
**35**
**466**
**13**
**2,000**
**2,240**|_Total_
_2020_
_£_
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-|
|---|---|---|---|---|---|
||**173,100**|**-**|**-**|**173,100**|-|
|The costs above are classified as:
Total|**Direct**
**Costs**
**2021**
**£**
**173,100**|
**Support**
**Costs**
**2021**
**£**
**-**|**Governance**
**costs**
**2021**
**£**
**2,000**|**Total**
**costs**
_Total_
_costs_
**2021**
_£_
_2020_
_£_
**175,100**
-|
|---|---|---|---|---|
Page 18
## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **6. GOVERNANCE COSTS**
|Auditors'
remuneration|**Unrestricted**
**funds**
**2021**
**£**
**2,000**|**Designated**
**funds**
**2021**
**£**
**-**
**-**|**Restricted**
**funds**
**2021**
**£**
**-**
**-**|**Total**
**funds**
**2021**
**£**
**2,000**
|_Total_
_funds_
_2020_
_£_
-
-|
|---|---|---|---|---|---|
||**2,000**|
**-**|
**-**|
**2,000**|-|
## **7. NET INCOME**
This is stated after charging:
||**2021**|_2020_|
|---|---|---|
||**£**|_£_|
|Auditor’s remuneration|**2,000**
|-|
|Pension costs recharged by STT|**5,634**|-|
During the year, no Trustees received any remuneration or any reimbursed expenses.
Page 19
## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **8. STAFF COSTS & RELATED EXPENDITURE**
All staff are employed by STT – the parent company. STT received designated funding to support TAH during the year and only recharged costs that were surplus to that funding to TAH. The staff costs relate to the total annual staff costs spent by STT on behalf of TAH.
The average monthly number of employees during the year was as follows:
|Charitable activities
Support activities|**2021**
**2**
**1**
**3**|_2020_
_-_
-|
|---|---|---|
|||-|
No employee received remuneration amounting to more than £60,000. The CEO, and Trustees form the key management personnel of the company. The total salary and pension contribution for the CEO including that not recharged by Stop The Traffik was £42,800, (2020: £Nil). Trustees did not receive any remuneration or expense reimbursement in either year.
During the year Stop The Traffik received funds of £62,016 to support TraffkAnalysis Hub, this was all expended by Stop The Traffik on TraffkAnalysis Hub staff costs and related expenditure such as office software and equipment. It is considered that this income and expenditure should be reflected in the TAH Financial Statements and Expenditure on Charitable Activities (note 5) in order to show a true and fair view of the state of affairs of the charitable company
## **9. DEBTORS**
|Trade debtors
Prepayments and accrued income
Other debtors|**2021**
**£**
**46,000**
**-**
**4,258**
**50,258**|_2020_
_£_
-
-
-|
|---|---|---|
|||-|
Page 20
## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
|**10.**
**CREDITORS:**
**Amounts falling due within one year**
Trade creditors
Amounts owed to group undertakings
Taxes and social security costs
Accruals and deferred income
Deferred income included in the figures above:
Deferred income at beginning of the year
Resources deferred in the year
Amounts released from previous year
Deferred income at the end of the year
**11.**
**SUMMARY OF FUNDS 2021**
**Brought**
**Forward**
**£**
General funds
-
Designated funds
-
Restricted funds
-
-|**10.**
**CREDITORS:**
**Amounts falling due within one year**
Trade creditors
Amounts owed to group undertakings
Taxes and social security costs
Accruals and deferred income
Deferred income included in the figures above:
Deferred income at beginning of the year
Resources deferred in the year
Amounts released from previous year
Deferred income at the end of the year
**11.**
**SUMMARY OF FUNDS 2021**
**Brought**
**Forward**
**£**
General funds
-
Designated funds
-
Restricted funds
-
-|**Incoming**
**resources**
**£**
**250,971**
**-**
**-**|
|**2021**
**£**
**52,434**
**-**
**-**
**23,660**
**76,094**
**2021**
**£**
**-**
**21,660**
**-**|**2021**
**£**
**52,434**
**-**
**-**
**23,660**
**76,094**
**2021**
**£**
**-**
**21,660**
**-**|
|_2020_
_£_
-
-
-
-|
|---|---|---|---|---|---|---|---|
||||||||-|
|||||**21,660**||||
|||||**Resources**
**Expended**
**£**
**175,100**
**-**
**-**|
|||
||-|**250,971**||**175,100**||||
|**12.**|**ANALYSIS OF NET**|**ASSETS BETWEEN FUNDS 2021**|**ASSETS BETWEEN FUNDS 2021**||||
|---|---|---|---|---|---|---|
|||**Unrestricted**|**Designated**|**Restricted**|**Total**|_Total_|
|||**funds**|**funds**|**funds**|**funds**|_funds_|
|||**2021**|**2021**|**2021**|**2021**|_2020_|
|||**£**|**£**|**£**|**£**|_£_|
||Current assets|**151,965**|**-**|**-**|**151,965**|-|
||Creditors due||||||
||within one year|**(76,094)**|**-**|**-**|**(76,094)**|-|
||||Page 21||||
## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
**75,871 - - 75,871** -
## **13. ULTIMATE PARENT UNDERTAKING AND CONTROLLING PARTY**
STT is the immediate parent company with Oasis Charitable Trust (OCT) being the Ultimate Parent and is a company incorporated in England (registered number 02818823) and a registered charity (registered charity number 1026487). Oasis Charitable Trust prepares consolidated financial statements which include the results of TRAFFIKANALYSIS HUB. Copies of the Oasis Charitable Trust group financial statements are available from its registered office at 1 Kennington Road, London, SE1 7QP.
OCT’s principal objectives are to:
- To ensure that the national group of organisations is governed well and in accordance with Oasis theology and ethos
- To maintain the cohesion of the family of Oasis organisations in the UK by ensuring that the Oasis vision, mission, and ethos is understood and implemented across the group of organisations
- To lead the integration of work across the subsidiaries and to grow and develop Oasis Hubs – the Oasis model of community transformation
- •To promote the corporate message of Oasis
## **14. RELATED PARTY TRANSACTIONS**
During the year the company made the following transactions with other group companies:
- An amount of £38,485 (2020: £Nil) was paid by TraffikAnalysis Hub to Stop The Traffik in respect of support for central services, salaries, pensions and office costs. At the year-end a balance of £Nil (2020: £Nil) was owed from TraffikAnalysis Hub to Stop The Traffik
- A donation of £5,000 (2020: £Nil) was received from Stop The Traffik
- An amount of £20,000 (2020: £Nil) was paid by Marshalls Plc for services rendered by TAH. This is the market value of such services. E Mitchel-Hill is a senior employee of Marshalls Plc
- An amount of £40,000 (2020: £Nil) was paid to IBM United Kingdom Ltd a subsidiary of IBM Inc, for work on the data hub owned by TAH. This is the market value of such services. J McGrath is a senior employee of IBM Ireland – also a subsidiary of IBM Inc.
There were no other related party transactions.
Page 22
## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **15. STATEMENT OF FINANCIAL ACTIVITIES – COMPARATIVES**
|**Note**
**INCOME FROM:**
Donations and legacies
2
Other trading income
3
Charitable activities
4
**TOTAL**
**EXPENDITURE ON:**
Raising funds
5
Charitable activities
6
**TOTAL**
**INCOME/(EXPENDITURE) FOR THE YEAR,**
**BEING NET MOVEMENT IN FUNDS**
_Total funds at 1 September 2019_
**TOTAL FUNDS AT 31 AUGUST 2020**|**Unrestricted**
**funds**
**2020**
**£**
**-**
**-**
**-**|**Designated**
**funds**
**2020**
**£**
**-**
**-**
**-**|**Restricted**
**funds**
**2020**
**£**
**-**
**-**
**-**|**Total**
**funds**
**2020**
**£**
**-**
**-**
**-**|
|---|---|---|---|---|
||**-**|
**-**|
**-**|
**-**|
||**-**
**-**|
**-**
**-**|
**-**
**-**|
**-**
**-**|
||**-**|
**-**|
**-**|
**-**|
||**-**
_-_|
**-**
_-_|
**-**
_-_|
**-**
**-**|
||**-**|
**-**|
**-**|
**-**|
Page 23