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2024-03-31-accounts

Charity registration number 1198573

HARMONY HOUSE DAGENHAM CIO

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

HARMONY HOUSE DAGENHAM CIO

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Sister Ellen McLoughlin Sister Lorna Walsh Sister Siobhan O'Keeffe Whitaker Bethan Dr Haque Uzma Woodhouse Samuel Monerville Nicola Turner Barbara Charity number 1198573 Company number CE029176 Registered office Baden Powell Close Dagenham Essex RM9 6XN Auditor KLSA LLP Kalamu House 11 Coldbath Square London EC1R 5HL Bankers National Westminster Bank Plc Parklands De Havilland Way Horwich BL6 4YU Solicitors Pathecary Witham Weld 70 St George's Square London SW1V 3RD

(Appointed 26 April 2024) (Appointed 1 November 2024) (Appointed 1 November 2024) (Appointed 1 November 2024) (Appointed 1 November 2024)

HARMONY HOUSE DAGENHAM CIO

CONTENTS

Page
Trustees report 1 - 7
Statement of Trustees responsibilities 8
Independent auditor's report 9 - 12
Statement of financial activities 13
Balance sheet 14
Statement of cash flows 15
Notes to the financial statements 16 - 25

HARMONY HOUSE DAGENHAM CIO

TRUSTEES REPORT

FOR THE YEAR ENDED 31 MARCH 2024

The Trustees present their annual report and financial statements for the year ended 31 March 2024.

Harmony House Dagenham is a charitable organisation managed by its trustees, who at present are the Sisters of the Sacred Hearts of Jesus and Mary. Harmony House Dagenham converted from a CIC (Company Registration No. 6565448) registered at Companies House from 15 April 2008 to a CIO (Registered Charity No. 1198573). Harmony House Dagenham registered with the Charity Commission on 11 April 2022 as per the Charity's trust deed.

We offer an Early years provision, services for older people and a variety of community programmes. We offer space and accommodation at Harmony House to other community ventures. During this year we had to meet the cost-of-living crisis and the ongoing challenges to the recruitment and retention of nursery practitioners.

We have however successfully delivered our Early Years’ service and managed a large programme of support for the older people in Barking and Dagenham. During this financial year we became a part of the Barking and Dagenham collective, partnering with five other voluntary organisations as Locality Leads to deliver the Cost-ofliving crisis programme on behalf of the London Borough of Barking and Dagenham.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply with the Charity's trust deed, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

Public benefit

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake.

The Charity's objectives are as follows;

• To promote social inclusion for the public benefit by prevention people from becoming socially excluded, relieving the needs of those people who are socially excluded and assisting them to integrate into society.

• To develop the capacity and skills of the members of the socially and eco-nomically disadvantaged community of the London borough of Barking and Dagenham in such a way that they are better able to identify and help meet their needs and to participate more fully in society.

• To advance education of children primarily under statutory school age through early years provision and after school clubs

• Such other charitable purposes for the public benefit as are exclusively charitable according to the laws of England and Wales as the charity trustees may from time to time determine.

Principal Aims and Activities

Harmony House was established in 1993 in response to the needs of the recently arrived refugees in Barking and Dagenham. As the numbers and needs of refugees have diminished, Harmony House has channeled its resources to meet other priority needs of the community.

HARMONY HOUSE DAGENHAM CIO

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Activities

The activities are as follows;

Early Year settings

Harmony House Dagenham CIO manages 3 nurseries, which is the core services that financially supports our other objectives of being a charity. The last trading year has been a difficult one with respect to recruitment and retention of nursery practitioners. We have attended job fairs run by the local borough and the job centre and have been able to recruit 5 members of staff.

Dagenham

Our childhood centre at Dagenham provides high quality childcare at one of the most affordable rates in the borough. We aim to keep our fees as low as possible to support local families. The setting had its last Ofsted inspection in June 2024 and received a GOOD rating.

We had to re-register this nursery with Ofsted as we had changed status from being a Community Interest Company to a Charitable Incorporated Organisation on 11 April 2022. The occupancy rates have remained low after the pandemic in all the settings, although they are slowly improving. The increase in the cost of living may have affected the uptake although it has been very difficult to gauge the reasons behind the low occupancy rates.

As of 31 March 2024, there were 71 children on roll. (2023 :83). Throughout the year we provided places to 39 children through the Government’s 2-year funding scheme. A further 77 children aged 3 years and over, access funding with 33 of them qualifying for 30 hours of free education. In September 2023, 26 children went up to school. At Christmas time the nursery children took part in a Nativity Play and Carol Concert. They played their part alongside other members of the Harmony House community: taking leading parts in the Nativity Play and even solo singing parts.

Hornchurch

This is the second Harmony House nursery that opened in January 2013. The building is next to the St Mary’s R.C. Primary school in Hornchurch, with whom we have built a good relationship. The setting has a capacity for 44 children at any one time. The setting had its last Ofsted inspection in October 2022 and received a GOOD rating.

We had to re-register this nursery with Ofsted as we had changed status from being a Community Interest Company to a Charitable Incorporated Organisation on 11 April 2022.

As of 31 March 2024, there were 55 children on roll. (2023:55). Throughout the year we provided places to 18 - children through the Government’s 2 year funding scheme. A further 58 children aged 3 years and over, access funding with 30 of them qualifying for 30 hours of free education. In September 2023 12 children went up to school. The staff at Hornchurch perform a graduation ceremony on a Saturday for the children who go to school. This enables the parents to attend the ceremony and be a part of the celebration.

Castle Green

Harmony House has managed Castle Green, on behalf of the local authority since 2015. The contract initially for 6 years was extended in February 2020 for a further 5 years. Castle Green is a nursery offering full day care for 50 weeks a year. The setting had its last Ofsted inspection in October 2022 and received a GOOD rating.

As with our existing Dagenham nursery, Castle Green is registered for 79 children, making these nurseries the two largest in Barking and Dagenham.

As of 31 March 2024, there were 94 children on roll. (2023 :105). Throughout the year we provided places for 45 children through the Government’s 2-year funding scheme. A further 103 children aged 3 years and over, access funding with 51 of them qualifying for 30 hours of free education. In September 2023 54 children went up to school.

HARMONY HOUSE DAGENHAM CIO

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

In-Service Training

Each nursery had 2 in-service training days this year.

Silvernet,

A programme offering support to older people, was launched in August 2016. It was initially funded through a £300,000, three-year, Big Lottery grant. Since May 2020 a smaller service has been delivered, supported by a grant from the Mercer’s Company. The grant was for £84,000 over two years which ended May 2022.

A further 2-year extension to the project was approved by the funders ending May 2024. The service consists of six get-together groups, events days, outings, and a computer club for elders.

We also deliver the Job2do programme as part of Silvernet. Through this service we offer gardening, housework, decorating and small DIY jobs to older people in their homes.

We had 6 social groups being supported with a total of 72 members attending these groups. The social groups have helped many of our socially isolated service users under our Companions project. The last year has been challenging due to the higher cost of living. Warm spaces that we offer at our social gathering venues have been helpful for the service users during the winter months.

We organised 4 events in the period from April 2023 to March 2024. These were the St. Patrick’s Day, St Georges day, Halloween, and Christmas. An average of 65 older people attended each of these events.

Through our Job2do team we were able to continue with our housework, gardening, and DIY services. In total we completed 1078 jobs in total from April 2023 to March 2024. This service has been a lifeline to many of our vulnerable beneficiaries. Through this service we were able to identify 18 service users who needed additional support and were referred on to various services in the borough.

Companions Service funded by City Bridge Trust

The companions Service, funded for 5 years by the City Bridge Trust, began in January 2020. The aim of the service is to contact elders who are extremely isolated and have difficulty, for whatever reason, in leaving their homes. Three members of staff have been employed for 12 hours a week each

They have a case load of 16 service users each. Each service user gets a home visit every other week with telephone calls in between. The goal is to get as many service users as possible out of their homes; ideally to join community activity or even for a short walk to the local shops or park and take them out of Social isolation. The service is now well established and receives many referrals from the local health and social work teams. The team has been able to organise social gatherings where10 to 12 clients can meet with staff. This has had the beneficial result of several clients striking up friendships and supporting each other with telephone calls.

We secured some additional funding from the Local Authority for 6 months due to the increased number of referrals for this service. This allowed our three paid Companions to work an extra 13 hours a week for 6 months. The extra working hours extra visits and which helped the clients integrate into the community faster. Over the period from April 2023 to March 2024 we have worked with 69 services users and were successful in integrating 21 of them back into the community.

On 29th September 2023 we took 45 people to the Blue Bell railway for a day out. Overall last year has been very productive and we intend to carry on providing that service this year.

HARMONY HOUSE DAGENHAM CIO

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

N.H.S Leaflet Storage and Distribution Project

During the year we have continued to deliver the NHS Storage and Distribution from Harmony House. This service has been very busy with several campaigns undertaken by the N.H.S after the pandemic. Harmony House has been commissioned to deliver this project until the end of March 2025.

The Handy Person Service:

The Handyperson Service is delivered through Harmony House on behalf of the London Borough of Barking and Dagenham and the local N.H.S. The service is designed to provide practical support to residents who are at risk of slipping or tripping in their own homes. The service is free at the point of delivery to customers. This has been a well-used service with references coming from social workers, N.H.S staff and integrated teams in addition to directly from customers themselves.

This service is seen as a part of a prevention strategy on the part of the Local Authority and the local N.H.S: preventing residents from emergency admission to hospital needing residential care. In addition, the service is used to prepare customers’ homes so that they can return to them safely and quickly after a stay in the hospital or residential care. The service completes small household DIY jobs that will help to prevent slips and trips for vulnerable adults. For example, we secure loose flooring surfaces, ensure lightbulbs are changed and repair and install banister rails on stairways. Last year alone we have installed 440 grab rails in bathrooms and by doorways to help Older People move more securely around their homes.

Cost of Living Project – Locality Lead

Harmony House was one of the five Locality Leads in the Cost-of-Living Crisis Project, commissioned by the London borough of Barking and Dagenham and the N.H.S.

Each Community Locality Lead acted as a focal point for their area, to discover what support is available and prototype solutions with local people, offer a triage service to discover how, where and who people turn to for help, linking people up to support as appropriate to help people manage wellbeing issues related to welfare, debt, housing, employment, and social isolation, as well as health conditions.

The project was awarded to Harmony House from the October 2022 and ended on the 31st of January 2024. The funding was extended for further six months from February 2024 to July 2024. During this period, we were funded for planning the continuation of a co-designed, coordinated, and visible cross sector response to the ongoing challenges caused by the cost-of-living crisis and upcoming challenges from winter pressures.

We will be working with the Local Authority, N.H.S and other local lead partners to achieve: • A longer-term locality-based solution that focuses on people’s strengths, helps people out of crisis and builds greater resilience across the community.

• A strengthened Locality Leads model – aligned with 3 localities and ensure the model is fit for purpose with networked civil society, connected to each other and residents at the heart.

Volunteers and staff

The volunteers and staff are involved in general management and core activities of the Charity:

The Board of Trustees would like to acknowledge the tremendous efforts of the volunteers, staff and the many supporters of the Charity for their kind and generous donations as well as their continued support in helping the Charity to achieve its objectives.

HARMONY HOUSE DAGENHAM CIO

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Achievements and performance

Significant activities and achievements against objectives

At 31 March 2024 there were 220 pupils registered at the nurseries. The child care fee income was £729,787 for the YE 31 March 2024 (2023: £788,699).

The most recent standard inspection by Ofsted in 2024 rated all the nurseries as Good.

The trustees place great importance on safety and security. Procedures and risk assessments are regularly reviewed.

Financial review

In 2024, the Charity's Income was £1,990,382 (2023: £1,977,849) and the expenditure totalled to £2,195,665 (2023: £1,952,534), which includes employment costs at £1,425,686 (2023: £1,371,306), child care costs £362,745 (2023: £282,634), premises costs of £177,421 (2023: £117,978), community project costs of £202,943 (2023: £149,966) and depreciation charge at £26,864 (2023: £30,650), (Note 7). Income was less than resources expended in 2024, resulting in a deficit of £205,283 (2023:surplus £25,315). The net assets as year ended 31 March 2024 amounted to £464,462 (2023: £669,745).

Going concern

During the current year, the charitable activities generated gross income of £1.99m (2023: £1.97m).The total assets less current liabilities for the year were £464k (2023: £669k).

Based on the charity's performance and the trustees confidence, the charity will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

Reserves policy

The trustees have reviewed the charity’s need for reserves in accordance with guidance from the Charity Commission. The restricted funds relate to grants received from funders with specific terms and conditions on what the funds are to be utilised for. The trustees consider that unrestricted reserves of between three and six months’ expenditure will ensure that, in the event of a significant drop in funding or exceptional expenses, the charity’s current activities will be able to continue while considering ways to raise additional funds.

HARMONY HOUSE DAGENHAM CIO

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Risk management and internal control

Risk management

The Board of Trustees is responsible for ensuring effective risk management, and that internal controls are in place to appropriately manage the risk exposure of the Charity, in particular, the Board of Governors has considered: - the major risks to which the Charity is exposed;

All significant activities undertaken are subject to risk review as part of the initial project assessment and implementation. The Board of Governors reviews the major risks that the Charity faces on a regular basis and controls are established as appropriate.

Internal control

The Trustees have overall responsibility for ensuring that the Charity has appropriate systems of internal controls across the Charity .

The key internal controls used by the Charity include:

Through the controls established for the running of the Charity, the Board of Governors are satisfied that the major risks identified are adequately mitigated where necessary. It is recognised that the controls established can only provide reasonable but not absolute assurance that major risks have been adequately managed.

Structure, governance and management

Harmony House Dagenham CIO (Registered Charity No. 1198573) registered with the Charity Commission on 11 April 2022 as per the Charity's trust deed. The registered address of Harmony House, Baden Powell Close, Dagenham RM9 6XN.

The Trustees who served during the year and up to the date of signature of the financial statements were: Sister N Emperor (Resigned 22 July 2024) Sister Ellen McLoughlin Sister Lorna Walsh Sister Siobhan O'Keeffe Whitaker Bethan (Appointed 26 April 2024) Hannah Kearns (Resigned 26 April 2024) Dr Haque Uzma (Appointed 1 November 2024) Woodhouse Samuel (Appointed 1 November 2024) Monerville Nicola (Appointed 1 November 2024) Turner Barbara

(Appointed 26 April 2024) (Resigned 26 April 2024) (Appointed 1 November 2024) (Appointed 1 November 2024) (Appointed 1 November 2024) (Appointed 1 November 2024)

HARMONY HOUSE DAGENHAM CIO

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Recruitment, appointment and training of trustees

When appointing new Trustees to the charity, the Board of Trustees consider the skills, knowledge and experience of the individual in making the appointment.

All Trustees have been allocated an area of responsibility which, where possible, is in accordance with their skills and experience.

The first nominated charity trustees listed above were appointed as detailed in the Harmony House Dagenham CIO constitution. None of the Trustees has any beneficial interest in the charity. If the CIO is wound up, the members of the CIO have no liability to contribute to its assets and no personal responsibilities for settling its debts and liabilities.

Organisational structure

The Trustees have delegated the day-to-day management of the charity to Whitaker Bethan, a new CEO appointed on 26 April 2024. The Trustees and CEO, take professional advice:

Other matters

Pay policy for senior staff

The senior management team comprises of the key management personnel of the charity in charge of directing, controlling, running and operating the charity on a day-to-day basis.

The salaries of all the members of senior staff are reviewed annually by the charity's human resources committee and increased in accordance with its pay policy.

Auditor

In accordance with the company's articles, a resolution proposing that KLSA LLP be reappointed as auditor of the Charity will be put at a General Meeting.

Disclosure of information to auditor

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The Trustees report was approved by the Board of Trustees.

Sister Lorna Walsh Trustee

14 January 2025

HARMONY HOUSE DAGENHAM CIO

STATEMENT OF TRUSTEES RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2024

The Trustees are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that year.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

HARMONY HOUSE DAGENHAM CIO

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF HARMONY HOUSE DAGENHAM CIO

Opinion

We have audited the financial statements of Harmony House Dagenham CIO (the ‘Charity’) for the year ended 31 March 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

HARMONY HOUSE DAGENHAM CIO

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF HARMONY HOUSE DAGENHAM CIO

Responsibilities of Trustees

As explained more fully in the statement of Trustees responsibilities, the Trustees 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 Charity’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 cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was considered capable of detecting irregularities, including fraud and noncompliance with laws and regulations

HARMONY HOUSE DAGENHAM CIO

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF HARMONY HOUSE DAGENHAM CIO

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

To address the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

and we communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the Charity is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statements items.

Secondly, the Charity is subject to laws and regulations as well as grants terms and conditions where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the dismissal of teaching staff and replacement of school governors as well as termination of grants. We identified the following areas as those most likely to have such an effect: Ofsted inspections and the terms attached to the Mercer's Company, The City Bridge Trust and The National Lottery Community Fund grants. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

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 instance, any non-compliance with laws and regulations and fraud which is far removed from transactions reflected in the financial statements would diminish the likelihood of detection. Furthermore, the risk of not detecting a material misstatement due to fraud is greater than the risk of not detecting one resulting from error.

Fraud may involve deliberate concealment by, for example, forgery or intentional omissions, misrepresentation, or through an act of collusion that would mitigate internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

HARMONY HOUSE DAGENHAM CIO

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF HARMONY HOUSE DAGENHAM CIO

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.

Other matters

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with the Charity's trust deed, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" effective 2019 in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Shilpa Chheda (Senior Statutory Auditor) for and on behalf of KLSA LLP

Chartered Accountants Statutory Auditor

14 January 2025 Kalamu House 11 Coldbath Square London EC1R 5HL

KLSA LLP is eligible for appointment as auditor of the Charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

HARMONY HOUSE DAGENHAM CIO

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2024

Unrestricted
Restricted
funds
funds
2024
2024
Notes
£
£
Income and endowments from:
Charitable activities
3
1,776,516
197,443
Investments
4
5,886
-
Other income
6
10,537
-
Total income
1,792,939
197,443
Expenditure on:
5
Charitable activities
7
1,992,722
202,943
Total expenditure
1,992,722
202,943
Net income/(expenditure) and
movement in funds
(199,783)
(5,500)
Reconciliation of funds:
Fund balances at 1 April 2023
647,654
22,091
Fund balances at 31 March
2024
447,871
16,591		 Total
Unrestricted
Restricted
funds
funds
2024
2023
2023
£
£
£
1,973,959
1,837,227
136,379
5,886
2,627
-
10,537
1,616
-
1,990,382
1,841,470
136,379
2,195,665
1,802,568
149,966
2,195,665
1,802,568
149,966
(205,283)
38,902
(13,587)
669,745
608,753
35,677
464,462
647,655
22,090		 Total
2023
£
1,973,606
2,627
1,616
1,977,849
1,952,534
1,952,534
25,315
644,430
669,745

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

HARMONY HOUSE DAGENHAM CIO

BALANCE SHEET

AS AT 31 MARCH 2024

2024
Notes
£
Fixed assets
Tangible assets
12
Current assets
Debtors
13
158,670
Cash at bank and in hand
402,921
561,591
Creditors: amounts falling due within
one year
14
(202,256)
Net current assets
Total assets less current liabilities
The funds of the Charity
Restricted income funds
15
Unrestricted funds
16		 2023
£
£
105,127
177,800
536,728
714,528
(167,256)
359,335
464,462
16,591
447,871
464,462		 £
122,473
547,272
669,745
22,090
647,655
669,745

The financial statements were approved by the Trustees on 14 January 2025

Sister Lorna Walsh Trustee

HARMONY HOUSE DAGENHAM CIO

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2024

Notes
Cash flows from operating activities
Cash absorbed by operations
20
Income taxes paid
Investing activities
Purchase of tangible fixed assets
Proceeds from disposal of tangible fixed
assets
Investment income received
Net cash used in investing activities
Net cash used in financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2024
£
£
(130,175)
(9,902)
384
5,886
(3,632)
-
(133,807)
536,728
402,921		 2023
£
£
(126,631)
(18,715)
(57,827)
598
2,627
(54,602)
-
(199,948)
736,676
536,728

HARMONY HOUSE DAGENHAM CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting policies

Charity information

Harmony House Dagenham CIO is a Charitable organisation registered with the Charity commission. The registered office is Baden Powell Close, Dagenham, Essex, RM9 6XN.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Charity's trust deed, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Charity.

1.4 Income

Income represents the value, net of value added tax and discounts, of the following streams:

HARMONY HOUSE DAGENHAM CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting policies

(Continued)

School fees and other charges are credited to the statement of financial activities on an accruals basis.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Rental income represents amounts receivable from rent charged to various tenants for rooms at Dagenham for specified periods during the week and sometimes over the weekend.

Deferred income

School fees and registration fees is billed in advance of the oncoming school term and are recognised in the accounting period to which they relate.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements 10% straightline method Fixtures and fittings 25% straightline method Motor vehicles 40% reducing balance method

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Impairment of fixed assets

At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

HARMONY HOUSE DAGENHAM CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting policies

(Continued)

1.9 Financial instruments

The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

2 Critical accounting estimates and judgements

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

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

HARMONY HOUSE DAGENHAM CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

(Continued)

Useful lives of improvement in property and plant and machinery

Management reviews the useful lives and residual lives of the items of Improvement in property and plant and machinery on a regular basis.

Impairment of receivables

Management reviews their portfolio of receivables on a regular basis. In determining whether receivables are impaired and provision for bad debts is recognised, management makes judgements as to whether there is any evidence indicating that there is a measurable decrease in the estimated future cash flows expected.

3 Income from charitable activities

Unrestricted
Restricted
funds
funds
2024
2024
£
£
Childcare fees
Sale of services
729,787
-
Grant & Government fees
Services provided under
contract
767,010
13,453
Contracts, agreements & other
grants
Sales of services by
beneficiaries
-
183,990
Catering income
Performance related
grants
108,385
-
Rental income
Other income
165,691
-
Internal projects
Charitable rental income
5,643
-
1,776,516
197,443		 Total
Unrestricted
Restricted
funds
funds
2024
2023
2023
£
£
£
729,787
788,699
-
780,463
820,242
9,629
183,990
-
126,750
108,385
105,053
-
165,691
118,958
-
5,643
4,275
-
1,973,959
1,837,227
136,379		 Total
2023
£
788,699
829,871
126,750
105,053
118,958
4,275
1,973,606

4 Income from investments

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Interest receivable 5,886 2,627

HARMONY HOUSE DAGENHAM CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

5 Restricted income

Restricted income of £197,443 (2023: £136,379) relates to grants received from funders with specific terms and conditions on what the funds are to be utilised for.

6 Other income

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Net gain on disposal of tangible fixed assets - 572
Miscellaneous income 10,537 1,044
10,537 1,044

7 Expenditure on charitable activities

Nursery
costs
Depreciation
Total
2024
2024
2024
£
£
£
Direct costs
Staff costs
1,425,686
-
1,425,686
Depreciation and
impairment
-
26,864
26,864
Child care costs
362,745
-
362,745
Premises costs
177,427
-
177,427
Community project costs
202,943
-
202,943
2,168,801
26,864
2,195,665
Analysis by fund
Unrestricted funds
1,965,858
26,864
1,992,722
Restricted funds
202,943
-
202,943
2,168,801
26,864
2,195,665
8
Net movement in funds
The net movement in funds is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
Loss/(profit) on disposal of tangible fixed assets		 Nursery
costs
Depreciation
2023
2023
£
£
1,371,306
-
-
30,650
282,634
-
117,978
-
149,966
-
1,921,884
30,650
1,771,918
30,650
149,966
-
1,921,884
30,650
2024
£
26,864
-		 Total
2023
£
1,371,306
30,650
282,634
117,978
149,966
1,952,534
1,802,568
149,966
1,952,534
2023
£
30,650
(572)

HARMONY HOUSE DAGENHAM CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

9 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Charity during the year.

10 Employees

The average monthly number of employees during the year was:

Total
Employment costs
Wages and salaries		 2024
Number
72
2024
£
1,425,686		 2023
Number
70
2023
£
1,371,306

There were no employees whose annual remuneration was more than £60,000.

Remuneration of key management personnel

The remuneration of key management personnel was as follows:

2024 2023
£ £
Aggregate compensation 34,537 58,632

11 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

HARMONY HOUSE DAGENHAM CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

12
Tangible fixed assets
Leasehold
improvements
Fixtures and
fittings
£
£
Cost
At 1 April 2023
361,197
137,353
Additions
-
1,852
Disposals
-
-
At 31 March 2024
361,197
139,205
Depreciation and impairment
At 1 April 2023
262,590
113,871
Depreciation charged in the year
14,511
9,562
Eliminated in respect of disposals
-
-
At 31 March 2024
277,101
123,433
Carrying amount
At 31 March 2024
84,096
15,772
At 31 March 2023
98,607
23,482
13
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
14
Creditors: amounts falling due within one year
Trade creditors
Other creditors
Accruals and deferred income		 Motor
vehicles
£
4,167
8,050
(4,167)
8,050
3,783
2,791
(3,783)
2,791
5,259
384
2024
£
105,400
41,180
12,090
158,670
2024
£
85,358
110,678
6,220
202,256		 Total
£
502,717
9,902
(4,167)
508,452
380,244
26,864
(3,783)
403,325
105,127
122,473
2023
£
72,084
88,807
16,909
177,800
2023
£
83,016
67,070
17,170
167,256

HARMONY HOUSE DAGENHAM CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

15 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

Previous year: At 1 April
2023
Incoming
resources
Resources
expended
At 31 March
2024
£
£
£
£
22,091
197,443
(202,943)
16,591
At 1 April
2022
Incoming
resources
Resources
expended
At 31 March
2023
£
£
£
£
35,677
136,379
(149,966)
22,090

16 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

General funds
Previous year:
General funds
Analysis of net assets between funds
At 31 March 2024:
Tangible assets
Current assets/(liabilities)		 At 1 April
2023
Incoming
resources
Resources
expended
At 31 March
2024
£
£
£
£
647,654
1,792,939
(1,992,722)
447,871
At 1 April
2022
Incoming
resources
Resources
expended
At 31 March
2023
£
£
£
£
608,753
1,841,470
(1,802,568)
647,655
Unrestricted
Restricted
Total
funds
funds
2024
2024
2024
£
£
£
105,127
-
105,127
342,744
16,591
359,335
447,871
16,591
464,462

17 Analysis of net assets between funds

HARMONY HOUSE DAGENHAM CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

17 Analysis of net assets between funds

Analysis of net assets between funds (Continued)
Unrestricted Restricted Total
funds funds
2023 2023 2023
£ £ £
At 31 March 2023:
Tangible assets 122,473 - 122,473
Current assets/(liabilities) 525,182 22,090 547,272
647,655 22,090 669,745

18 Operating lease commitments

Lessee

At the reporting end date the Charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years
In over five years		 2024
£
102,000
327,000
181,500
610,500		 2023
£
102,000
363,000
301,167
766,167

19 Related party transactions

During the year, there were the following transactions with The Sacred Hearts Sisters 1983 Charitable Fund whose Trustees are the trustees of the charity:

A trustee, who was also a Chief Executive Officer, received remuneration during the year. During the year the CEO was remunerated as follows

Power by which the payment
is permitted
2024		 2023
£ £
Marie Kearns Employed by trustees
34,537
58,531

Other than the above, no trustee or other person related to the Charity had any interest in any contract or transaction entered into by the Charity during the year or the preceding year other than stated above.

HARMONY HOUSE DAGENHAM CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

20 Cash generated from operations 2024 2023
£ £
(Deficit)/surpus for the year (205,283) 25,315
Adjustments for:
Taxation charged 18,715
Investment income recognised in statement of financial activities (5,886) (2,627)
Gain on disposal of tangible fixed assets - (572)
Depreciation and impairment of tangible fixed assets 26,864 30,650
Movements in working capital:
Decrease/(increase) in debtors 19,130 (63,392)
Increase/(decrease) in creditors 35,000 (116,005)
Cash absorbed by operations (130,175) (107,916)

21 Ultimate controlling party

The charity was controlled throughout the year by the Sisters of the Sacred Hearts of Jesus and Mary by virtue of the fact that the members of the Congregation and/or the Superior General appoint the trustees, who are also the members of the charity.