Registered number: 11451182 Charity number: 1192933
## **TRAFFIKANALYSIS HUB**
**(A company limited by guarantee)**
**________________________________________**
**DIRECTORS' REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDING 31 AUGUST 2022**
## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **CONTENTS**
||Page|
|---|---|
|**Reference and administrative details of the charity, its trustees, and advisers**|3|
|**Trustees’ report (incorporating a Directors’ report)**|4 – 10|
|**Independent auditor’s report**|11 – 13|
|**Statement of financial activities**|14|
|**Balance sheet**|15|
|**Cash flow statement**|16|
|**Notes to the financial statements**|17 – 24|
2
## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDING 31 AUGUST 2022**
|**Directors**|W Peace (resigned March 2022)|
|---|---|
||E Mitchel-Hill (resigned March 2022)|
||Dr N Fishwick|
||G Miller|
||J Cusack (resigned March 2022)|
||Professor A Henderson|
||J Planner|
||R Dearnley OBE|
||J McGrath (resigned October 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 LLP|
||21 Lombard Street|
||London|
||EC3V 9AH|
3
## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **TRUSTEES’ REPORT (Incorporating Directors’ Report) FOR THE YEAR ENDED 31 AUGUST 2022**
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 2022. 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**
Recognising the vast global data gap on MSHT, 2017 STOP THE TRAFFIK developed the Traffik Analysis Hub (TA Hub) in partnership with IBM, translating the largest collection of survivor stories into the most comprehensive MSHT database in the world, able to identify hotspots and trends that turn data into real time intelligence.
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 (“STOP THE TRAFFIK”) is the founding member of the charitable company; TRAFFIKANALYSIS HUB is a subsidiary company of STOP THE TRAFFIK 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.
4
## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **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 Officer is benchmarked with charities of comparable scale and reach and approved by the Boards. TA Hub has also set up a Nominations and Renumerations Committee which effectively oversees pay reviews, senior appointments, and associated issues. The CEO of STOP THE TRAFFIK is also a trustee for TraffikAnalysis Hub but does not receive any remuneration for this role.
In addition to the above, we have undergone a full organisational salary and pay review by an independent evaluator and implemented the recommendations.
## **e. Organisational Structure and Decision Making**
The Board of Directors have delegated day to day management of the company to the CEO but retain responsibility for major strategic and governance decisions. For TA Hub to operate efficiently, the structure has developed in the year 2021/22 as follows.
STOP THE TRAFFIK and the TA Hub work closely together strategically, culturally, and in our combined vision. The two organisations remain separate entities.
The Executive provide subject matter expertise in line with the charity’s strategic objectives and continue development of our strategy. Due to organisational growth in the last year, we have established an additional team of head of roles across TA Hub’s functionalities who drive delivery of the strategy. The organisational team is arranged in a project management structure, driven by modern slavery and human trafficking intelligence, to deliver products, projects, and services that seek to prevent exploitation in collaboration with our partners and clients.
TA Hub recognises that we will not stop human trafficking alone. Critical to our model are our networks around the world including corporations, financial institutions, NGO’s, frontline organisations, and data and technology hubs. These relationships including intelligence and data sharing, project and programme collaborations, and joint awareness raising are fundamental to our operations.
## **f. Risk Management**
The Directors have assessed the major risks to which the company is exposed, in particular those related to cyber security, information, the operations and finances of the company and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
The Director of Operations monitors a strategic risk register on an ongoing basis, regularly ensuring that risks are appropriately recorded, and mitigating actions are taken swiftly.
The Audit & Risk Committee meet quarterly with the Director of Operations to review all areas of risk, prioritising any moderate-high impact risk areas, ensuring they are satisfied with the mitigations underway and provide expertise where needed. The Committee also ensures that adequate financial resources continue to sustain delivery and are sustainable to manage growth. We will continue to review how we mitigate risk internally to ensure effectivity.
## **g. Financial review**
Total income for the year ended 31 August 2022 amounted to £518,805 (2021: £250,971). Costs of raising voluntary income was £2,962 (2021: £2,000) and charitable activity expenditure was £426,197
5
## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
(2021: £173,100). Overall, a surplus of £89,647 (2021: £75,871) is reported for the year helping to build reserves to combat future fluctuations along with a very robust strategic plan.
TA 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 TA HUB in making human trafficking uneconomic through intelligence-led prevention.
TA 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, TA 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 (2021: 500 hours). We thank all of the volunteers who have contributed to TA Hub in this year.
## **h. Reserves**
The Directors continue to review TA 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 £124,303. The level of funds on 31 August 2022 is £165,517 (2021: £75,871).
## **i. Going concern**
The Directors have reviewed all material risks which may impact the organisation’s ability to continue as a going concern, including the current crisis around the increased cost of living. The Directors believe that despite any active risks, the charity remains a going concern. The Directors formed this conclusion by reviewing the financial performance of the organisation with reference to forecast levels of free reserves and cash flow projections.
The Directors to continue to strengthen the organisation’s financial processes and systems so that they can effectively monitor financial risk, and where required, take appropriate management action. The Trustees continue to monitor the financial risk on a regular basis.
## **Vision**
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.
## **Mission**
Our mission is to create the world's richest and most accessible repository of stories of trafficking and exploitation and we are already preeminent in this. We will amplify victim and survivor 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.
## **Review of Performance & Impact**
The TA Hub has grown to have:
- 1,157,000 total data points
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## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
- 128 active organisations using the database
To reduce risk and enhance internal capabilities, we have invested in internal data management of the TA Hub, relying less on external support.
Alongside STOP THE TRAFFIK, we have delivered:
- 56 different tactical intelligence opportunities, which were shared with a range of actors, from law enforcement (LEAs) to regulated businesses, all with the view to inspire investigations that might lead to safeguarding and broader interventions.
- 7 sets of high-level strategic intelligence assessments, known as 'Key Judgments', have been published, drawing positive feedback from LEAs, and commercial and NGO partners alike.
- We have established a credible intelligence practice and the year ahead is expected to see a significant increase in our influence at both strategic and tactical levels.
_“Thank you to your team for continuously sharing updated reports with us, we have shared them with our colleagues serving in the response areas Salvation Army is in for the Ukraine crisis and they have reported them as helpful in thinking ahead with their response plans”_
Anne Makumi, MSHTR Coordinator and CoP Project Manager, Africa Zone, Salvation Army
## **TA Hub Use Cases**
## **Case 1 – Marshalls plc**
## **Background**
Marshalls plc is the UK's leading manufacturer of building materials. They have over 50 sites throughout the UK, and a global supply chain spanning 30+ countries.
## **Challenges**
As part of their human rights and environmental due diligence activity, Marshalls undertook supplier education, training on responsible sourcing and modern slavery, audits, monitoring, as well as risk analysis of the countries from which they source. A missing component, however, was understanding the instances of MSHT which existed beyond the boundaries of supplier operations. They wanted to take information from any of their supply chains, by geography, location or by product, to understand the realities on the ground. This insight would help better mitigate risk and inform dialogue with suppliers, partners, and stakeholders.
## **Solution**
Marshalls plc joined TA Hub to collaborate on a supply chain tool. Marshalls plc provided business insights, challenges, live supply chain data, and brought other private sector organisations, governments, and UN entities to the table to discuss and progress.
Marshalls plc continue to use the TA Hub supply chain tool in their supply chain mapping, which enables us them to view their supply chains in the context of MSHT in ‘real time’, a different view which wasn’t previously available. TA Hub enables Marshalls plc to review their auditing and monitoring activity alongside the broader context – providing data which helps constructively challenge existing assumptions and metrics.
_“The process of working alongside TA Hub allowed us to be critical friends and has expanded our own thinking and approach.”_
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## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **Case 2 – The Exodus Road**
## **Background**
The Exodus Road (TER) is a global network of affiliate organizations with the common vision of bringing about a world in which humans are never bought, sold, or exploited. TER disrupts modernday slavery by partnering with law enforcement to fight human trafficking crime, equipping communities to protect the vulnerable, and empowering survivors as they walk into freedom.
## **Challenge**
TER needed a way to identify global human trafficking hot spot areas to prioritize limited investigation resources. They were looking for real-time data on incident prevalence to focus their research on where law enforcement had the highest need. They did not want to base intelligence-based decisions on a combination of outdated reports.
## **Solution**
TER joined the TA Hub. We created an agreement that assured anonymity and worked to ensure that the safety and security of TER global teams on the front lines would never be compromised. We worked with TER to minimize any manual data entry. TER now uses the TAH categories internally to analyse trends and prioritize where they invest resources for intervention, training, and education. Based on concerning trends in Asia, in 2022 TER identified areas within the country that showed an increase in online sexual exploitation of children (OSEC) and other forms of sexual exploitation. Combined with targeted HUMINT and OSINT, TER was able to support an under-resourced local law enforcement agency to crack the largest sexual servitude case the region had ever investigated. 39 victims were removed from an exploitative situation and 5 traffickers were arrested including one known to have ties to a cross-border syndicate. This caused a major disruption to illegal activity that was happening along one infamous redlight district.
_"Having accurate and up-to-date data is critical to decision-making. The Exodus Road encourages other NGO partners focusing on intervention to join TAH."_
## **Looking Ahead**
As stated above, the TA Hub work strategically and culturally with STOP THE TRAFFIK. The below represents the objectives of the Group.
## **Key activities for 22-23:**
## **Our core mission remains to:**
1. Reduce the recruitment of vulnerable people who are required to maintain the organised global business of human trafficking.
2. Prevent human traffickers from accessing (proceeds of crime) money and moving it through financial systems.
3. Work with businesses to identify and reduce the human trafficking and modern slavery risk within their business and supply.
4. The above lines of work are fuelled by data and intelligence. We are working to maintain and grow the richest global intelligence picture of trafficking, made up of survivor stories, that continues to inform the core activity of STOP THE TRAFFIK including sharing our insights with all actors seeking to provide safety and prevent harm.
8
## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
We have developed strategic priorities for 2022-2023 to continue our efforts towards these core objectives including:
1. Working to degrade trafficking systems across hotspots and along routes.
- a. Prioritising key routes to focus our resource.
- b. Maturing our way of evidencing degradation of a route.
- c. Strengthening our networks of collaboration across multiple vulnerabilities.
2. Scaling our unique data, intelligence, and insights by investing in our technological capabilities, and sharing across our extended networks with greater reach
- a. Building a technology roadmap to extend our capability.
- b. Sharing our intelligence, in the form of strategic assessments, with targeted audiences in real time.
To support our activity, our internal objectives include:
3. Improving the way we measure, and evidence impact and communicate our story.
- a. Improving our ability to not only measure what has happened because of our work, but also to mature our language and analytics to show what **didn’t** happen, prevention, with rigour and accuracy
- b. To extend our reach and build trust across our communication channels that deliver key insights for all those seeking to provide safety and prevent harm.
4. Growing and diversifying funding streams and group revenue.
- a. To mature our funding model to ensure long-term sustainability with diverse funding streams and a focus on large scale, multi-year support.
5. Working to attract a competitive, diverse team and ensuring our internal processes and protocols are as effective as possible.
- a. Building on extensive progress in the last year, we want to continue prioritising our team’s wellbeing, satisfaction, recruitment processes, and individual and organisational learning.
## **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;
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**TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
- 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.
## **Auditors**
The company’s auditor, Mercer & Hole, incorporated on 1 October 2022 to become Mercer & Hole LLP. The directors have consented to treating the incorporation of Mercer & Hole LLP as a Continuation of the existing audit arrangement and in accordance with the company's articles, a resolution proposing that Mercer & Hole LLP be reappointed as auditor of the company 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 13 December 2022 and signed on their behalf by:
**……………………………………. Ruth Dearnley Trustee**
10
## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **Independent Auditor’s Report to the Members of TraffikAnalysis Hub Limited**
## **Opinion**
We have audited the financial statements of TraffikAnalysis Hub Limited (the ‘charitable company’) for the year ended 31 August 2022 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 2022 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.
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
11
## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **Independent Auditor’s Report to the Members of TraffikAnalysis Hub Limited**
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.
## **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.
12
## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **Independent Auditor’s Report to the Members of TraffikAnalysis Hub Limited**
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 non-compliance 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 noncompliance 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.
Helen Cain _, Senior Statutory Auditor_ For and on behalf of Mercer & Hole LLP, Statutory Auditor
Mercer & Hole LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 21 Lombard Street
London EC3V 9AH[Date: 13 January 2023 ]
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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 2022**
|**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 2021_
**TOTAL FUNDS AT 31 AUGUST 2022**|**Unrestricted**
**funds**
**Designated**
**funds**
**Restricted**
**funds**
**2022**
**£**
**2022**
**£**
**2022**
**£**
**289,317**
**-**
**-**
**229,488**
**-**
**-**|**Total**
**funds**
_Total_
_funds_
**2022**
**£**
_2021_
_£_
**289,317**
**97,058**
**229,488**
**153,915**|
|---|---|---|
||**518,805**
**-**
**-**|**518,805**
**250,971**|
||**2,962**
**-**
**-**
**426,197**
**-**
**-**|**2,962**
**2,000**
**426,197**
**173,100**|
||**429,159**
**-**
**-**|**429,159**
**175,100**|
||**89,646**
**-**
**-**
**75,871**
**_-_**
**_-_**|**89,646**
**75,871**
**75,871**
**_-_**|
||**165,517**
**-**
**-**|**165,517**
**75,871**|
The notes on pages 17 to 24 form part of these financial statements.
14
## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **BALANCE SHEET AS AT 31 AUGUST 2022**
|**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|**£**
**165,380**
**184,046**|**2022**
**£**
**165,517**
**165,517**|_£_
50,258
101,707|_2021_
_£_
75,871|
|---|---|---|---|---|
||**349,426**
**(183,909)**||151,965
(76,094)||
||||||
|||||75,871|
|||**165,517**
**-**||75,871
-|
|||**165,517**||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 13 December 2022 and were signed on its behalf by:
**Ruth Dearnley Trustee**
The notes on pages 17 to 24 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 2022**
|**Cash flows from operating activities**
Net income
Adjustments for:
(Increase) in debtors
Increase 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|**2022**
_2021_
**£**
_£_
**89,646**
75,871
**(115,122)**
(50,258)
**107,815**
76,094|
|---|---|
||**82,339**
101,707|
||**82,339**
101,707|
||**82,339**
101,707
**101,707**
-|
||**184,046**
101,707|
||**184,046**
101,707|
||**184,047**
101,707|
The notes on pages 17 to 24 form part of these financial statements.
16
**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 reviewed all material risks which may impact the organisation’s ability to continue as a going concern, including the current crisis around the increased cost of living. The Directors believe that despite any active risks, the charity remains a going concern. The Directors formed this conclusion by reviewing the financial performance of the organisation with reference to forecast levels of free reserves and cash flow projections.
The Directors to continue to strengthen the organisation’s financial processes and systems so that they can effectively monitor financial risk, and where required, take appropriate management action. The Trustees continue to monitor the financial risk on a regular basis.
## **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 specific 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.
17
## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
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.
## **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 TA HUB’s operations and activities.
## **1.7 Pensions**
STOP THE TRAFFIK employs all staff. STOP THE TRAFFIK operates a defined contribution pension scheme. Contributions are charged to the income and expenditure account of STOP THE TRAFFIK 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 Provision**
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
18
## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
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.
## **1.12 Critical Accounting Judgments 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**
**Designated**
**funds**
**Restricted**
**funds**
**Total**
**funds**
_Total_
_funds_
**2022**
**£**
**2022**
**£**
**2022**
**£**
**2022**
**£**
_2021_
_£_
27,167
-
-
27,167
35,040
262,150
-
-
262,150
62,016|
|---|---|
||**289,317**
**-**
**-**
**289,317**
97,056|
## **3. OTHER TRADING INCOME**
||**Unrestricted**|**Designated**|**Restricted**|**Total**|_Total_|
|---|---|---|---|---|---|
||**funds**|**funds**|**funds**|**funds**|_funds_|
||**2022**|**2022**|**2022**|**2022**|_2021_|
||**£**|**£**|**£**|**£**|_£_|
|Hub participation fees|**229,488**|**-**|**-**|**229,488**|153,915|
## **4. EXPENDITURE ON RAISING FUNDS**
||**Unrestricted**|**Designated**|**Restricted**|**Total**|_Total_|
|---|---|---|---|---|---|
||**funds**|**funds**|**funds**|**funds**|_funds_|
||**2022**|**2022**|**2022**|**2022**|_2021_|
||**£**|**£**|**£**|**£**|_£_|
|Fundraising consultancy|**2,962**|**-**|**-**|**2,962**|2,000|
19
## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **5. EXPENDITURE ON CHARITABLE ACTIVTIES**
|Travel and subsistence
Communication costs
Bank charges
Office costs recharge
Sundry expenses
Wages and salaries recharge
National Insurance recharge
Pension cost recharge
Consultancy
Repairs/Eqpt
Unrealised Currency Gains
Interest
Hub Development charges
Subscriptions
Realised Currency Losses
Software & Cloud
Marketing
Audit & Accountancy|**Unrestricted**
**funds**
**2022**
**Designated**
**funds**
**2022**
**Restricted**
**funds**
**2022**
**Total**
**2022**
_Total_
_2021_
**£**
**£**
**£**
**£**
_£_
4,512
-
-
4,512
36
500
-
-
500
122
176
-
-
176
37
5,392
-
-
5,392
4,810
537
-
-
537
13
131,521
-
-
131,521
80,481
13,434
-
-
13,434
8,439
9,206
-
-
9,206
5,634
38,892
-
-
38,892
22,338
146
-
-
146
449
(1,893)
-
-
(1,893)
-
90
-
-
90
-
200,000
-
-
200,000
40,000
51
-
-
51
35
763
-
-
763
466
15,835
-
-
15,835
2,240
-
-
-
-
6,000
7,035
-
-
7,035
2,000|
|---|---|
||**426,197**
-
-
**426,197**
173,100|
The costs above are classified as:
|Total
**GOVERNANCE COSTS**
Auditors' remuneration|**Direct**
**Costs**
**Support**
**Costs**
**Governance**
**costs**
**Total**
**costs**
_Total_
_costs_
**2022**
**£**
**2022**
**£**
**2022**
**£**
**2022**
**£**
_2021_
_£_
**423,697**
**2,500**
**426,167**
173,100|
|---|---|
||**Unrestricted**
**funds**
**Designated**
**funds**
**Restricted**
**funds**
**Total**
**funds**
_Total_
_funds_
**2022**
**£**
**2022**
**£**
**2022**
**£**
**2022**
**£**
_2021_
_£_
**2,500**
**-**
**-**
**2,500**
2,000|
## **6. GOVERNANCE COSTS**
20
**TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
## **7. NET INCOME**
This is stated after charging:
|Auditor’s remuneration
Pension costs recharged by STOP THE TRAFFIK|**2022**
_2021_
**£**
_£_
**2,500**
2,000
**9,206**
5,634|
|---|---|
During the year, no Trustees received any remuneration or any reimbursed expenses.
## **8. STAFF COSTS**
All staff are employed by STOP THE TRAFFIK – the parent company. The staff costs relate to the amount recharged by STOP THE TRAFFIK.
The average monthly number of employees during the year was as follows:
|Charitable activities
Support activities|**2022**
_2021_
**No.**
No.
**5**
2
**1**
1|
|---|---|
||**6**
3|
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 recharged by STOP THE TRAFFIK was £43,228, (2021: £42,800). Trustees did not receive any remuneration or expense reimbursement in either year.
## **9. DEBTORS**
|Trade debtors
Prepayments and accrued income
Other debtors
**10.**
**CREDITORS:**
**Amounts falling due within one year**
Trade creditors
Amounts owed to group undertakings
Accruals and deferred income||**2022**
_2021_
**£**
_£_
52,824
46,000
101,000
-
11,556
4,258|
|---|---|---|
|||**165,380**
50,258|
|||**2022**
_2021_
**£**
_£_
142
52,434
112,000
-
71,767
23,660
**183,909**
76,094|
21
## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
||**Deferred income included in the figures above:**|**Deferred income included in the figures above:**|**Deferred income included in the figures above:**||||||
|---|---|---|---|---|---|---|---|---|
||||||||**2022**|_2021_|
||||||||**£**|_£_|
||Deferred income at beginning of the year||||||21,660|-|
||Resources deferred in the year||||||65,419|21,660|
||Amounts released from previous year|||||(21,660)||-|
||**Deferred income at the end of the year**||||||**65,419**|21,660|
|**11.**|**SUMMARY OF FUNDS 2022**||||||||
|||**Brought**||**Incoming**||**Resources**||**Carried**|
|||**Forward**||**resources**||**Expended**||**Forward**|
||||**£**||**£**||**£**|**£**|
||General funds|75,871||518,805||(429,159)||165,517|
||Designated funds||-||**-**||**-**|**-**|
||Restricted funds||-||**-**||**-**|**-**|
|||75,871||**518,805**||**(429,159)**||**165,517**|
|**12.**|**ANALYSIS OF NET ASSETS BETWEEN FUNDS 2022**||||||||
|||**Unrestricted**|**Designated**||**Restricted**||**Total**|_Total_|
|||**funds**||**funds**||**funds**|**funds**|_funds_|
|||**2022**||**2022**||**2022**|**2022**|_2021_|
|||**£**||**£**||**£**|**£**|_£_|
||Current assets|349,426||-||-|349,426|151,965|
||Creditors due within one||||||||
||year|(183,909)||-||-|(183,909)|(76,094)|
|||**165,517**||**-**||**-**|**165,517**|**75,871**|
## **13. ULTIMATE PARENT UNDERTAKING AND CONTROLLING PARTY**
STOP THE TRAFFIK 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.
OIA’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
22
## **TRAFFIKANALYSIS HUB**
## **(A company limited by guarantee)**
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 £161,209 (2021: £38,485) was paid by TA Hub to STOP THE TRAFFIK in respect of support for central services, salaries, pensions, and office costs. At the year-end a balance of £112,000 (2021: £Nil) was owed from TA Hub to STOP THE TRAFFIK.
- An amount of £25,500 (2021: £Nil) was received by TA Hub from STOP THE TRAFFIK in respect of services provided. At the year-end there was no balance outstanding (2021: £Nil) from STOP THE TRAFFIK to TA Hub.
- An amount of £20,000 (2021: £20,000) was paid by Marshalls Plc for services rendered by TA Hub. This is the market value of such services. E Mitchel-Hill is a senior employee of Marshalls Plc.
There were no other related party transactions.
## **15. STATEMENT OF FINANCIAL ACTIVITIES – COMPARATIVES**
|Donations and legacies
Other trading income
**TOTAL**
**EXPENDITURE ON:**
Raising funds
Charitable activities
**TOTAL**
**INCOME/(EXPENDITURE) FOR THE**
**YEAR, BEING NET MOVEMENT IN**
**FUNDS**
_Total funds on 1 September 2020_
**TOTAL FUNDS AT 31 AUGUST 2021**|**Unrestricted**
**funds**
**Designated**
**funds**
**Restricted**
**funds**
**Total**
**funds**
**2021**
**2021**
**2021**
**2021**
**£**
**£**
**£**
**£**
97,056
-
-
97,056
153,915
-
-
153,915|
|---|---|
||**250,971**
**-**
**-**
**250,971**|
||2,000
-
-
2,000
173,100
-
-
173,100|
||**175,100**
**-**
**-**
**175,100**|
||75,871
-
-
75,871
-
_-_
_-_
-|
||**75,871**
**-**
**_-_**
**75,871**|
23