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||
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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:
- to promote social inclusion by preventing people from becoming socially excluded, relieving the needs of those who are socially excluded and assisting them to integrate into society;
- to develop the capacity and skills of the socially and economically disadvantaged community of Barking and Dagenham;
- to advance education of children primarily under statutory school age through early years provision and afterschool clubs; and
- to undertake such other exclusively charitable purposes as determined by the trustees.
## **b. Strategies for achieving objectives**
To achieve our objectives, we play a crucial role in:
- providing high-quality early childhood education: Laying strong foundations for lifelong learning and development.
- supporting the elderly and vulnerable: Equipping them with the tools and resources they need to live independently.
- combating social isolation: Creating welcoming spaces and initiatives that create connection and belonging.
- promoting inclusion and accessibility: Actively working to remove barriers to participation for all community member.
- building strong community links: Embedding ourselves in the heart of the community to stay attuned to its evolving needs.
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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.
- All three nurseries were rated "Good" at their most recent Ofsted inspections.
- Cosmetic refurbishments were completed at two nurseries, improving the environment for children and families.
Children on roll at 31 March 2025:
- Dagenham (HHD): 74
- Hornchurch (HX): 69
- Castle Green (CG): 97
Children supported with funded places:
- Working funding code, 9 months–2 years (Sept 2024–March 2025): HHD 12, HX 8, CG 21
- 2-year funding (April 2024–March 2025): HHD 54 (24 with code), HX 41 (22 with code), CG 74 (36 with code)
- 3-year funding (April 2024–March 2025): HHD 77 (36 with 30-hour code), HX 67 (25 with 30-hour code), CG 85 (45 with 30-hour code)
Leavers for Reception Year (Sept 2024)
- HHD: 32
- HX: 22
- CG: 29
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.
- Groups supported: 6
- Members attending: 72
- Events organised: 4
- Referrals to additional support: 35
## **LBBD Handyman Project**
This project was extended for another year to support elders with making their homes safer.
- Jobs Completed: 578
## **Harmony Home Care**
This project ran throughout this financial year supporting elders with Gardening and House cleaning.
- Cleaning jobs completed: 97
- Gardening jobs completed: 619
## **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.
- Service users supported: 68
- Integrated back into the community: 14
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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.
- Members supported: 21
- Staffing: 1 part-time worker
## **c. Voluntees and Staff**
Volunteers and staff contributed to:
- Older people’s services including Silvernet, Job2do, and Companions (until Dec 2024)
- Running 3 nurseries
- Visiting isolated elders in their homes and helping them re-engage socially through Connect projects
- Supporting service users with GP appointments, shopping, and social visits
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:
- nursery fees (parents) of £593,055
- nursery fees (local authority) of £1,210,577
- government grants of £116,095
- non-governmental grants of £71,527
- rental income of £140,975
- donations of £1,520 and other charitable income of £3,582
and the expenditure totalled £2,394,524 (2024: £2,088,391), which included:
- employment costs of £1,619,504 (2024: £1,398,363)
- child care costs of £114,269 (2024: £130,666)
- premises costs of £256,986 (2024: £224,006)
- nursery rent of £102,000 (2024: £92,000)
- repairs and maintenance of £59,345 (2024: £45,786)
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:
- The charity’s fundraising activities are carried out in compliance with the relevant statutory regulations.
- The Board monitors all fundraising carried out in the charity’s name.
- During the year, the charity received 0 complaints related to fundraising.
- The charity takes active steps to protect vulnerable people in connection with its fundraising activities.
## **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:
- The major risks to which the charity is exposed.
- The potential impact and probability associated with each risk.
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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**
- Existing internal controls and accountability for them.
- Mitigating actions needed to reduce each risk to an acceptable level.
## **Internal control**
The Trustees have overall responsibility for ensuring that the charity has appropriate systems of internal controls. Key controls include:
- Formal agendas and minutes of all Board of Trustees meetings.
- Detailed budgetary presentation for approval by the Board.
- Established organisational structure and reporting lines.
- Engagement of external professional advisors when required.
## **f. Plans for future periods**
- Continued focus on raising nursery occupancy rates.
- Further refurbishment work planned at nursery sites to enhance provision.
- Restarting the Companions Service to continue to support the most vulnerable elders in our community.
- Ongoing delivery of Silvernet and Handyperson services to reduce social isolation and maintain independence for older people.
- Starting of new community projects to support our community, such as a Luncheon project to provide hot meals to those who are struggling and an intergenerational dance programme to bring together the youngest and eldest generations.
## **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:
- so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and
- that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
## **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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP (FRS 102);
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
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.
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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:
- give a true and fair view of the state of the charity's affairs as at 31 March 2025 and of its incoming resources and application of resources for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **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.
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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:
- the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **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.
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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:
- Performing audit work over the risk of management override of controls, including evaluating the rationale of significant transactions outside the normal course of the charitable activity and any accounting estimates for bias;
- Carry out substantive checks on a sample basis to supporting documentation of individual transactions to give comfort the statement of financial activities does not contain any material irregular items;
- Verifying that material balances within the balance sheet are supported by third party evidence to confirm existence and valuation at the balance sheet date;
- Enquiry of management and those charged with governance around actual and potential litigation and claims; and
- Reviewing minutes of the trustees' meetings.
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:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the charity's internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees.
- Conclude on the appropriateness of the Trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our
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Docusign Envelope ID: 1E9721B3-45C6-4264-BFED-618618C37B07
## **HARMONY HOUSE DAGENHAM CIO**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HARMONY HOUSE DAGENHAM CIO (CONTINUED)**
- conclusions are based on the audit evidence obtained up to the date of our Auditors' report. However, future events or conditions may cause the charity to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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.
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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.
Page 13
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.
Page 14
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|
|---|---|---|
Page 15
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:
- Grant receivable, which are recognised as income when the Charity becomes entitled to the grant. - Contract services, including nursery fees, which are recognised as income when the service is provided.
- Room and equipment hire, including catering and conference facilities, which are recognised as income as the facilities are provided.
- Donations are recognised on receipt.
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.
Page 16
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.
Page 17
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.
Page 18
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)**
## **2.10 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.
Page 19
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|
Page 20
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**
Page 21
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|
Page 22
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
-|
Page 24
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.
Page 25
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|
|---|---|---|
Page 26
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.
Page 27
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.
Page 28
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|
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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**
## **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
Page 31
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:
- Included within expenses is an amount of £10,000 (2024: £10,000) relating to rent paid.
- Provision of guarantee in respect of a premises lease.
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