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2025-03-31-accounts

Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

Charity number: 1198573

HARMONY HOUSE DAGENHAM CIO

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

CONTENTS

Page
Reference and administrative details of the charity, its Trustees and advisers 1
Trustees' report 2 - 7
Trustees' responsibilities statement 8
Independent auditors' report on the financial statements 9 - 12
Statement of financial activities 13
Balance sheet 14
Statement of cash flows 15
Notes to the financial statements 16 - 32

Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2025

Trustees Sister Lorna Walsh
Sister Ellen McLoughlin
Sister Siobhan O'Keeffe (resigned 27 February 2025)
Bethan Whitaker (resigned 23 March 2025)
Nicola Monerville (appointed 1 November 2024)
Samuel Woodhouse (appointed 1 November 2024)
Barbara Turner (appointed 1 November 2024)
Dr Uzma Haque (appointed 1 November 2024)
Josephine Okafor (appointed 11 December 2024)
Charity registered
number
1198573
Principal office
Baden Powell Close
Dagenham
Essex
RM9 6XN
Chief executive officer
Bethan Whitaker
Independent auditors
Griffin Stone Moscrop & Co
Chartered Accountants
21-27 Lamb's Conduit Street
London
WC1N 3GS
Bankers
Natwest Bank Plc
Parklands
De Havilland Way
Horwich
Bolton
BL6 4YU
Solicitors
Pathecary Witham Weld
70 St George's Square
London
SW1V 3RD

Page 1

Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2025

The Trustees present their annual report together with the audited financial statements of the charity for the year 1 April 2024 to 31 March 2025. The trustees confirm that the annual report and financial statements of the charity comply with the current statutory requirements, the requirements of the charity's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Reference and administrative information set out on page 1 forms part of this report.

Harmony House was set up to support vulnerable residents in the London Borough of Barking and Dagenham. Our work encompasses the running of three nurseries and a multitude of community projects aimed at reducing social isolation in a space where all members of the community, from the youngest to the eldest, are empowered to live with independence, purpose, and joy.

Objectives and activities

a. Policies and objectives

The Trustees confirm they have had regard to the Charity Commission’s guidance on public benefit when reviewing aims and planning activities.

The Charity’s objectives are:

b. Strategies for achieving objectives

To achieve our objectives, we play a crucial role in:

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Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Achievements and performance

a. Early years provision

Harmony House manages three nurseries (Dagenham, Hornchurch, Castle Green), which are central to both our charitable objects and financial sustainability.

Children on roll at 31 March 2025:

Children supported with funded places:

Leavers for Reception Year (Sept 2024)

Each nursery held 3 in-service training days.

b. Community Programmes

Silvernet

Silvernet continued to run Get-Together groups and events to reduce social isolation for elders in the community.

LBBD Handyman Project

This project was extended for another year to support elders with making their homes safer.

Harmony Home Care

This project ran throughout this financial year supporting elders with Gardening and House cleaning.

Companions Service

The Companions Service ended in December 2024. Before closure, it supported elders members of the community facing isolation by offering emotional support and companionship. This was run by 3 part time staff members.

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Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Achievements and performance (continued)

NHS Leaflet Storage and Distribution Project

This project continued, and the contract has been extended until March 2026.

Connect Project

Launched in 2024 to support residents who have had a recent hospital discharge or are struggling with isolation for other reasons.

c. Voluntees and Staff

Volunteers and staff contributed to:

The Trustees thank all staff, volunteers, and supporters for their dedication.

Financial review

a. Financial position at year end

In 2025, the Charity's Income was £2,146,607 (2024: £1,883,109), which includes:

and the expenditure totalled £2,394,524 (2024: £2,088,391), which included:

Income was less than resources expended in 2025, resulting in a deficit of £247,917 (2024: deficit £205,283). The net assets as year ended 31 March 2025 amounted to £216,545 (2024: £464,462).

The increase in income in 2025 reflects a return to expected levels following a period in which the nurseries were overlooked during a leadership gap. Since the appointment of a new CEO 18 months ago, significant work has been undertaken to rebuild nursery performance, with occupancy rising from around 30–40% to approximately 80% in two nurseries and 55% in the third. While preschool numbers at the Castle Green and Dagenham sites have recently fallen due to the opening of new school nurseries in the area, strategic refurbishments have been carried out to reduce preschool capacity at Dagenham and expand the baby room. The baby rooms at both Dagenham and Hornchurch are now full, representing the highest income-generating areas of the nurseries.

The funding landscape also shifted favourably in September 2024, when new government funding extended 30 hours of free childcare to children from nine months old. This has led to a surge in applications for baby places, which is expected to flow through to higher occupancy in toddler and preschool rooms over the coming years.

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Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

While the Charity recorded a deficit for the year, this was anticipated and aligned with a planned drawdown of reserves to support strategic developments, including the physical expansion of the Dagenham nursery, scheduled for completion and reopening in January 2026. The trustees consider the financial position to be stable and sustainable, with actual results tracking closely to conservative forecasts prepared during the year.

b. 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. At 31 March 2025 the charity had net current assets in respect of unrestricted funds of £29,200, significantly below their target level of reserves.

The trustees acknowledge that the current level of unrestricted reserves falls short of the desired range and are actively monitoring this position. The shortfall is primarily due to a planned deficit in 2025, which supported strategic investments in staffing, infrastructure, and service expansion. These investments are expected to strengthen the charity’s long-term sustainability and income-generating capacity. The trustees are confident that the charity remains a going concern, supported by strong occupancy levels, improved local authority funding, and a cash position that is currently ahead of budget. Detailed forecasting has been prepared to inform future financial planning and ensure that reserve levels are rebuilt over time. The trustees remain committed to maintaining financial resilience and will continue to assess the adequacy of reserves in light of operational risks and funding developments.

c. Going concern

During the current year, the charitable activities generated gross income of £2,146,607. The total assets less current liabilities for the year were £216,545 and the charity had net assets of £118,018 that related to unrestricted funds. At 31 March 2025 the charity had net current assets in respect of unrestricted funds of £29,200, significantly below their target level of reserves.

However, based on the charity's performance, the current cashflow and the trustees confidence, we believe 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.

d. Fundraising Statement

The Trustees confirm that:

e. Principal risks and uncertainties

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.

Risk management

The Board has considered:

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Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Internal control

The Trustees have overall responsibility for ensuring that the charity has appropriate systems of internal controls. Key controls include:

f. Plans for future periods

Structure, governance and management

a. Constitution

Harmony House Dagenham CIO registered with the Charity Commission on 11 April 2022 (number 1198573) and operates under a Constituion. Prior to this, Harmony House Dagenham was a Community Interest Company (CIC).

b. Methods of appointment or election of Trustees

The management of the charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Constitution.

When appointing new trustees, the Board considers the skills, knowledge and experience of individuals. All trustees are allocated areas of responsibility aligned with their expertise.

c. Organisational structure and decision-making policies

Day-to-day management is delegated to the Chief Executive Officer, Bethan Whitaker, with professional advice taken as needed in legal, tax, finance, and HR matters.

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Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Structure, governance and management (continued)

d. Policies adopted for the induction and training of Trustees

New trustees receive an induction designed to familiarise them with the charity’s work, governance structure, and legal responsibilities under the Charity Commission framework. This includes an introduction to the Constitution, key policies, strategic plan, and current projects. Trustees are also provided with background information on the charity’s history, finances, and areas of operation, enabling them to contribute effectively from the outset.

Ongoing development is supported through access to Charity Commission guidance, sector training, and relevant external resources. Where appropriate, trustees attend specialist training or briefings in areas such as safeguarding, finance, or governance. The Chair and Chief Executive also ensure that trustees are kept informed of emerging issues and regulatory changes that may affect the charity’s work, promoting a culture of continuous learning and effective oversight.

e. Pay policy for senior staff

The senior management team comprises 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 senior staff are reviewed annually by the Personnel Committee and increased in accordance with the charity’s pay policy.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Auditors

The auditors, Griffin Stone Moscrop & Co, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees and signed on their behalf by:

................................................ Sister Lorna Walsh (Trustee) Date: 25 November 2025

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Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2025

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 & 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 its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and 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 Constitution. 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.

Page 8

Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS 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 2025 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) 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 been withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.

Page 9

Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HARMONY HOUSE DAGENHAM CIO (CONTINUED)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' 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, except to the extent otherwise explicitly stated in our report, 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 where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees are responsible for the preparation of the financial statements which 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 liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Page 10

Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HARMONY HOUSE DAGENHAM CIO (CONTINUED)

Auditors' 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 Auditors' 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 specific procedures designed and implemented to detect irregularities, including fraud, are detailed below:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Page 11

Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HARMONY HOUSE DAGENHAM CIO (CONTINUED)

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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 Auditors' 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 its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Griffin Stone Moscrop & Co

Chartered Accountants Statutory Auditors 21-27 Lamb's Conduit Street London WC1N 3GS Date: 2/12/2025

Griffin Stone Moscrop & Co are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 12

Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2025

Note
Income from:
Donations and legacies
5
Charitable activities
6
Investments
7
Other income
8
Total income
Expenditure on:
Charitable activities
9
Total expenditure
Net (expenditure)/income
Transfers between funds
19
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2025
£
1,520
1,948,189
4,387
4,889
1,958,985
2,294,609
2,294,609
(335,624)
5,771
(329,853)
447,871
(329,853)
118,018		 Restricted
funds
2025
£
-
187,622
-
-
187,622
99,915
99,915
87,707
(5,771)
81,936
16,591
81,936
98,527		 Total
funds
2025
£
1,520
2,135,811
4,387
4,889
2,146,607
2,394,524
2,394,524
(247,917)
-
(247,917)
464,462
(247,917)
216,545		 As restated
Total
funds
2024
£
-
1,866,687
5,886
10,536
1,883,109
2,088,391
2,088,391
(205,282)
-
(205,282)
669,744
(205,282)
464,462

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 16 to 32 form part of these financial statements.

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Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

BALANCE SHEET AS AT 31 MARCH 2025

Note
Fixed assets
Tangible assets
15
Current assets
Debtors
16
Cash at bank and in hand
Current liabilities
Creditors: amounts falling due within one
year
17
Net current assets
Total assets less current liabilities
Total net assets
Charity funds
Restricted funds
19
Unrestricted funds
19
Total funds		 212,715
242,371
455,086
(327,359)		 2025
£
88,818
88,818
127,727
216,545
216,545
98,527
118,018
216,545		 158,670
402,921
561,591
(202,256)		 2024
£
105,127
105,127
359,335
464,462
464,462
16,591
447,871
464,462

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

................................................

Sister Lorna Walsh (Trustee) Date: 25 November 2025

The notes on pages 16 to 32 form part of these financial statements.

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Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Proceeds from the sale of intangible assets
Purchase of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The notes on pages 16 to 32 form part of these financial statements		 2025
£
(149,812)
4,387
-
(15,125)
(10,738)
-
(160,550)
402,921
242,371		 2024
£
(130,174)
5,886
383
(9,902)
(3,633)
-
(133,807)
536,728
402,921

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Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

1. General 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.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a 'true and fair' view and 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 Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Harmony House Dagenham CIO meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 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.

2.3 Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

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

School fees and other charges are credited to the statement of financial activities on an accruals basis. School fees and registration fees billed in advance of the oncoming school term are recognised in the accounting period to which they relate.

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.

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Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

2. Accounting policies (continued)

2.4 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 allocated on the portion of the asset’s use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 Tangible fixed assets and depreciation

Capitalisation of Tangible fixed assets is dealt with on a case by case basis and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the methods below.

Depreciation is provided on the following basis:

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

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of financial activities.

2.6 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.7 Cash at bank and in hand

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.

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Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

2. Accounting policies (continued)

2.8 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

2.9 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

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.

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HARMONY HOUSE DAGENHAM CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

2. Accounting policies (continued)

2.10 Operating leases

Rentals paid under operating leases are charged to the Statement of financial activities on a straightline basis over the lease term.

2.11 Pensions

The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year.

2.12 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

3. Critical accounting estimates and areas of judgment

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.

Critical accounting estimates and assumptions:

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.

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Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

4. Prior year adjustments

An amount of £107,273 has been removed from both income and expenditure to eliminate internal recharges within the charity. This adjustment has no impact on the net result.

5. Income from donations and legacies

Unrestricted Total Total
funds funds funds
2025 2025 2024
£ £ £
Donations 1,520 1,520 -

6. Income from charitable activities

Unrestricted
funds
2025
£
Childcare fees - from parents
593,055
Childcare fees - from government
1,210,577
Grants and contracts
-
Rental income
140,975
Other charitable income
3,582
1,948,189
Unrestricted
funds
2024
£
Childcare fees - from parents
729,787
Childcare fees - from government
767,010
Grants and contracts
-
Rental income
165,691
Other charitable income
6,756
1,669,244		 Restricted
funds
2025
£
-
-
187,622
-
-
187,622
Restricted
funds
2024
£
-
-
197,443
-
-
197,443		 Total
funds
2025
£
593,055
1,210,577
187,622
140,975
3,582
2,135,811
Total
funds
2024
£
729,787
767,010
197,443
165,691
6,756
1,866,687

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Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

7. Investment income

Bank interest
Bank interest
Other incoming resources

Miscellaneous income
Miscellaneous income		 Unrestricted
funds
2025
£
4,387
Unrestricted
funds
2024
£
5,886
Unrestricted
funds
2025
£
4,889
Unrestricted
funds
2024
£
10,536		 Total
funds
2025
£
4,387
Total
funds
2024
£
5,886
Total
funds
2025
£
4,889
Total
funds
2024
£
10,536

8. Other incoming resources

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Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

9. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2025
£
Charitable activities
2,294,609
As restated
Unrestricted
funds
2024
£
Charitable activities
1,885,448		 Restricted
funds
2025
£
99,915
Restricted
funds
2024
£
202,943		 Total
2025
£
2,394,524
As restated
Total
2024
£
2,088,391

10. Analysis of expenditure by activities

Charitable activities
Charitable activities		 Activities
undertaken
directly
2025
£
1,842,043
As restated
Activities
undertaken
directly
2024
£
1,903,721		 Support
costs
2025
£
552,481
Support
costs
2024
£
184,670		 Total
funds
2025
£
2,394,524
As restated
Total
funds
2024
£
2,088,391

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Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

10. Analysis of expenditure by activities (continued)

Analysis of direct costs

Staff costs
Other staff costs
Child care costs
Premises costs
Rent
Running Costs
Repairs & Maintenance		 Total
funds
2025
£
1,287,318
13,966
114,269
256,986
102,000
8,159
59,345
1,842,043		 As restated
Total
funds
2024
£
1,398,363
10,827
130,666
224,006
92,000
2,073
45,786
1,903,721

Page 23

Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

10. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs
Other staff costs
Depreciation
Other premises costs
Community project costs
Audit & Accountancy fees
Bank fees
Entertainment
Postage, Freight & Courier
General Expenses and bad debt
Insurance
Printing & Stationery
IT Software and Consumables
Office cost
Repairs & Maintenance
Subscriptions
Telephone and Internet
Legal & Professional
Non reclaimed VAT
11.
Auditors' remuneration
Fees payable to the charity's auditor for the audit of the charity's annual
accounts
Further fees payable to the previous auditor for the audit of the charity's
annual accounts		 Total
funds
2025
£
332,186
15,770
31,435
1,250
367
26,830
1,198
852
-
16,881
11,261
10,165
27,278
120
8,227
2,430
7,453
20,487
38,291
552,481
2025
£
10,450
5,606		 Total
funds
2024
£
-
16,497
26,864
648
1,139
7,500
1,148
-
143
33,407
5,673
12,923
24,504
-
8,916
2,851
7,360
15,148
19,949
184,670
2024
£
7,500
-

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Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

12. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2025
£
1,488,595
104,633
26,276
1,619,504		 2024
£
1,286,854
84,611
26,898
1,398,363

The average number of persons employed by the charity during the year was as follows:

2025 2024
No. No.
Employees 72 72

No employee received remuneration amounting to more than £60,000 in either year.

The key management personnel of the charity comprise the Chief Executive Officer. The total employee benefits (including employer's national insurance and pension contribution) received by the key managment personnel amounted to £66,598.

13. Trustees' remuneration and expenses

During the year, one trustee received remuneration in their role as Chief Executive Officer of the charity.

2025 2024
£ £
Bethan Whitaker Remuneration 59,325 -
Pension contributions paid 1,101 -
Marie Kearns Remuneration - 34,537

During the year ended 31 March 2025, no Trustee expenses have been incurred (2024 - £NIL).

14. Gifts in kind

During the year Harmony House received gifts in kind totalling £4,520 in relation to data protection services by Whitaker Solutions Limited.

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Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

15. Tangible fixed assets

Cost or valuation
At 1 April 2024
Additions
At 31 March 2025
Depreciation
At 1 April 2024
Charge for the year
At 31 March 2025
Net book value
At 31 March 2025
At 31 March 2024		 Leasehold
property
£
361,197
2,750
363,947
277,101
18,572
295,673
68,274
84,096		 Motor
vehicles
£
8,050
-
8,050
2,791
2,576
5,367
2,683
5,259		 Fixtures and
fittings
£
97,628
-
97,628
95,796
-
95,796
1,832
1,832		 Office
equipment
£
41,577
12,375
53,952
27,637
10,286
37,923
16,029
13,940		 Total
£
508,452
15,125
523,577
403,325
31,434
434,759
88,818
105,127

16. Debtors

Due within one year
Trade debtors
Other debtors
Prepayments and accrued income		 2025
£
64,483
93,819
54,413
212,715		 2024
£
105,400
41,179
12,091
158,670

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Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

17. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Pension Payable
Other creditors
Accruals and deferred income		 2025
£
83,012
31,933
5,662
23,494
183,258
327,359		 2024
£
85,359
-
5,371
26,495
85,031
202,256

The balance shown above for accruals and deferred income at 31 March 2025 includes £74,901 of deferred income.

18. Financial instruments

2025 2024
£ £
Financial assets
Financial assets measured at fair value through income and expenditure 242,371 402,921

Financial assets measured at fair value through income and expenditure comprise cash at bank and in hand.

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Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

19. Statement of funds

Statement of funds - current year

Unrestricted funds
General Funds
Restricted funds
Mercers Trust
BD Collective (Precious Angel)
Localities Lead
NHS Storage and Distribution
City Bridge Trust
Community Project (Handy
Man)
Care City Innovation
(Connection Catalysts Project)
Diabetes and Health Literacy
Total of funds		 Balance at 1
April 2024
£
447,871
2,876
4,179
9,536
-
-
-
-
-
16,591
464,462		 Income
£
1,958,985
39,549
4,179
10,117
17,500
32,360
44,750
37,500
1,667
187,622
2,146,607		 Expenditure
£
(2,294,609)
(25,150)
(7,752)
(27,926)
(7,925)
(15,799)
(15,235)
(73)
(55)
(99,915)
(2,394,524)		 Transfers
in/out
£
5,771
-
-
8,273
-
-
-
(14,044)
-
(5,771)
-		 Balance at
31 March
2025
£
118,018
17,275
606
-
9,575
16,561
29,515
23,383
1,612
98,527
216,545

During the preparation of the 2025 financial statements it was identified that there had been some historical misclassifications of expenditure between the general fund and some restricted funds and accordingly the transfers shown above have been made to correct the position as at 31 March 2025.

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Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

19. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General Funds
Restricted funds
Restricted Funds
Total of funds		 Balance at
1 April 2023
£
647,653
Balance at
1 April 2023
£
22,091
669,744		 Income
£
1,792,940
Income
£
197,443
1,990,383		 Expenditure
£
(1,992,722)
Expenditure
£
(202,943)
(2,195,665)		 Balance at
31 March
2024
£
447,871
Balance at
31 March
2024
£
16,591
464,462

20. Summary of funds Summary of funds - current year

General funds
Restricted funds		 Balance at 1
April 2024
£
447,871
16,591
464,462		 Income
£
1,958,985
187,622
2,146,607
Balance at
1 April 2023
£
647,653
22,091
669,744		 Expenditure
£
(2,294,609)
(99,915)
(2,394,524)
Income
£
1,792,940
197,443
1,990,383		 Transfers
in/out
£
5,771
(5,771)
-
Expenditure
£
(1,992,722)
(202,943)
(2,195,665)		 Balance at
31 March
2025
£
118,018
98,527
216,545
Balance at
31 March
2024
£
447,871
16,591
Summary of funds - prior year
General funds
Restricted funds
464,462

Page 29

Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

21. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2025
Restricted
funds
2025
£
£
Tangible fixed assets
88,818
-
Current assets
356,559
98,527
Creditors due within one year
(327,359)
-
Total
118,018
98,527
Analysis of net assets between funds - prior year
Unrestricted
funds
2024
Restricted
funds
2024
£
£
Tangible fixed assets
105,127
-
Current assets
545,000
16,591
Creditors due within one year
(202,256)
-
Total
447,871
16,591
Reconciliation of net movement in funds to net cash flow from operating activities
2025
£
Net expenditure for the year (as per Statement of Financial Activities)
(247,917)
Adjustments for:
Depreciation charges
31,434
Dividends, interests and rents from investments
(4,387)
Decrease/(increase) in debtors
(54,045)
Increase in creditors
125,103
Net cash used in operating activities
(149,812)		 Total
funds
2025
£
88,818
455,086
(327,359)
216,545
Total
funds
2024
£
105,127
561,591
(202,256)
464,462
2024
£
(205,282)
26,864
(5,886)
19,130
35,000
(130,174)

22. Reconciliation of net movement in funds to net cash flow from operating activities

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Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

23. Analysis of cash and cash equivalents

Cash in hand
Total cash and cash equivalents		 2025
£
242,371
242,371		 2024
£
402,921
402,921

24. Analysis of changes in net debt

Cash at bank and in hand
Debt due within 1 year		 At 1 April
2024
£
402,921
(5,371)
397,550		 Cash flows
£
(160,550)
(291)
(160,841)		 At 31 March
2025
£
242,371
(5,662)
236,709

25. Pension commitments

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £26,276 (2024 - £26,898).

At the balance sheet date, creditors included £5,662 (2024 - £5,371) payable to the fund

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Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07

HARMONY HOUSE DAGENHAM CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

26. Operating lease commitments

At 31 March 2025 the charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years		 2025
£
102,000
336,000
172,225
610,225		 2024
£
102,000
327,000
181,500
610,500

The following lease payments have been recognised as an expense in the Statement of financial activities:

2025 2024
£ £
Operating lease rentals 102,000 92,000

27. 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:

Page 32