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2022-03-31-accounts

Company registration number: 00995799 Charity registration number: 500640

THE CYRENIANS LIMITED

operating as

CHANGING LIVES

(A company limited by guarantee)

Annual Report and Financial Statements

for the Year Ended 31 March 2022

The Cyrenians Limited

operating as Changing Lives

Contents

Chairman's Statement 1
Reference and Administrative Details 2
Trustees' Report 3 to 16
Independent Auditors' Report 17 to 20
Consolidated Statement of Financial Activities 21
Comparative Consolidated Statement of Financial Activities 22
Consolidated Balance Sheet 23
Balance Sheet 24
Consolidated Statement of Cash Flows 25
Notes to the Financial Statements 26 to 57

The Cyrenians Limited

operating as Changing Lives

The trustees (who are also the Directors of the Company for the purposes of company law) are pleased to present their annual directors’ report, including Strategic Report, together with the consolidated financial statements of the charity and its subsidiary for the year ending 31 March 2022 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and the Charities Statement of Recommended Practice (“Charities SORP”) (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland; FRS 102) issued in October 2019.

Chair’s Report

Changing Lives helps people facing the most challenging of circumstances make positive change - for good.

We believe that everyone deserves a safe home, a rewarding job and a life free from addiction or abuse. We know that with the right support, anyone can change their life for the better.

The last year has been a challenging one, starting as we emerged from the third national Coronavirus lockdown with continued uncertainty and challenges with recruiting people and ending with increasing concerns about the impact of the rises in cost of living on the people we work with, our teams and the organisation.

Being Becoming Belonging continues to be our focus for working with people, and we know to achieve this we need to work on shifting power away from the centre of the organization and create space for flexibility, adaptability and focusing on what matters to the people we work with.

The continued impact of the Covid19 pandemic, political uncertainty, Brexit, the war in Ukraine and other global pressures have resulted in an operating environment where many variables are beyond our control and are having a disproportionate impact on the people who use our services, and equally on our ability to attract, hire and retain our workforce. At a time when Changing Lives services are needed more than ever, our 18-month strategy has been set to ensure we are:

The next couple of years will undoubtably be challenging, Changing Lives is in a strong position and this strategy will help guide us and ensure we keep our focus on what matters most to the people who use our services.

Dean Fielding Chair of Trustees

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Reference and Administrative Details

Trustees Dean Fielding, Chair Stephen Guyon, Vice Chair Lesley Telford, Treasurer Michael Barton Pete Brown Catherine Hearne Geraldine Kay Secretary Susan Carr Key Management Personnel Stephen Bell, Chief Executive Becky Elton, Deputy Chief Executive Laura Seebohm, Exective Director of External Affairs (April 21 - Jan 22) Nigel Dawson, Interim Director of Finance Lesley-Anne Knowles, Executive Director, People Registered Office Unit D13 Marquis Court Team Valley Trading Estate Gateshead Tyne and Wear NE11 0RU The charity is incorporated in England. Company Registration Number 00995799 Charity Registration Number 500640 Solicitors Ward Hadaway Sandgate House 102 Quayside Newcastle upon Tyne NE1 3DX Womble Bond Dickinson LLP 112 Quayside Newcastle upon Tyne NE1 3DX Bankers Barclays Bank plc Newcastle City 9 49 - 51 Northumberland Street Newcastle upon Tyne NE1 7AF Auditor Azets Audit Services Chartered Accountants and Statutory Auditor Bulman House Regent Centre Gosforth Newcastle upon Tyne NE3 3LS

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Trustees' Report

Structure, Governance and Management

The Charity group is comprised of the parent company, The Cyrenians Ltd and its wholly owned subsidiary TCUK Homes Ltd, the latter a charitable company limited by guarantee on 11 February 2022. TCUK Homes Ltd si also a registered social landlord.

Governing Document:

The charity's name is The Cyrenians Limited, however the charity operates under the name of Changing Lives. It is a charity registered in the United Kingdom, charity No. 500640, and a company limited by guarantee, registered in England, Company No. 00995799.

The company was established under a Memorandum of Association, which established the objects and powers of the charitable company, and is governed under its Articles of Association, revised in 2017.

Appointment of trustees:

Trustees are appointed at the Annual General Meeting and the term of office is four years, after which they have the opportunity to be re-elected for a further period of four years.

The charity undertakes a regular skills audit of the board, and when vacancies arise it tries to recruit from areas in which the Board has no professional background. There is also a strong focus on the recruitment of board members with "lived experience" of the areas of focus for the charity.

Trustee induction and training:

A new member's Induction Package includes the following:

The Chair encourages new members to visit Changing Lives projects to better understand the work that we undertake.

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Trustees' Report

Changing Lives trustees understand that effective governance is crucial to the running of the charity. The charity governance code is a key tool in ensuring that this is achieved. Trustees will be working through the principles of the good governance toolkit culminating in a self-evaluation, and Changing Lives is arranging for a range of training for board members.

Trustees participate in a range of activities to promote the charity, including hosting and attending fundraising events and influencing policy though participation at round tables and seminars on behalf of the charity. Trustees also use their professional and social networks to promote the charity, as well as joining in the conversation on social media to promote Changing Lives.

Trustees undertake regular project visits to engage with staff and people who use our services. When required trustees attend meetings with funders, commissioners and other stakeholders. The charity also commissions regular stakeholder surveys to find out views from stakeholders and the trustees receive and discuss the full reports and agree action upon the surveys.

Organisation:

Changing Lives has a Board of at least 6 and up to 15 members who meet regularly and are responsible for the strategic direction and policy of the charity. At present the board has 7 members from a variety of professional backgrounds relevant to the work of the charity.

The work of the Board is supported by the following sub committees:

The Chief Executive on behalf of the Non-Executive Directors manages the charity with the help of a Senior Leadership Team. There is a clear structure and reporting accountabilities that run throughout the organisation, and details of those matters reserved to the Board, and those areas where decision-making power is delegated are set out in a detailed policy.

Related parties and co-operation with other organisations:

None of our Trustees receive remuneration or other benefit from their work with the charity. Any connection between a trustee or member of the Senior Leadership Team must be disclosed to the full board of trustees in the same way as any other contractual relationship with a related party. Related party transactions are reported in note 27.

Objectives and Activities

Purpose and Aims

Our charity’s purpose as set out in the objects contained in the company’s memorandum of association are:

To promote social inclusion for the public benefit by preventing people from becoming socially excluded, relieving the needs of those people who are socially excluded and assisting them to lead sustainably independent and fulfilled lives.

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To relieve the poverty of those in need, in particular the homeless or those at risk of homelessness.

The relief of the physical and mental sickness of persons in need; through the provision of treatments, including medical or psychosocial interventions, counselling and support.

To provide, for the benefit of the public, assistance through conciliation and mediation of persons whose relationships have, or are at risk of having, broken down and to advise and help in the settlement of differences over issues connected to such relationships.

"Socially excluded" means being excluded from society, or parts of society, as a result of one or more of the following factors: unemployment; financial hardship; youth or old age; ill health (physical or mental); substance abuse or dependency including alcohol and drugs; discrimination on the grounds of sex, race, disability, ethnic origin, religion, belief, creed, sexual orientation or gender reassignment; poor educational or skills attainment; relationship and family breakdown; poor housing (that is housing that does not meet basic habitable standards); crime (either as a victim of crime or as an offender rehabilitating into society); being a member of a socially and economically deprived community.

Ensuring our work delivers our aims

We review our aims, objectives and activities each year. This review looks at what we achieved and the outcomes of our work in the previous 12 months. The review looks at the success of each key activity and the benefits they have brought to those groups of people we are set up to help. The review also helps us ensure our aim, objectives and activities remained focused on our stated purposes. We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set.

The focus of our work

Our main objectives for the year continued to be delivering high quality services through our “Four Pillars”.

Four Pillars

Housing and Homelessness Service:

There are a range of circumstances which mean people find themselves homeless, including family breakdown, addictions, mental and physical ill health and leaving prison or hospital. We want homelessness to be a brief transitory period in someone’s life, not a permanent label or a cycle from which people find it hard to escape. Our homelessness services provide a safe place to stay, help to sort out practical issues, and strengths-based support. The ultimate aim is for people to transition out of homelessness and tough times in their lives quickly and positively, with a whole new community-based network of support built around them ready for the next steps in their journey.

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Drug and Alcohol Service:

Addiction is one of the biggest factors in social exclusion, and the two often go hand-in-hand. Our dedicated drug and alcohol services offer tailored support to adults who are thinking about abstinence from drugs, alcohol, and/or substitute medications, and those who are taking active steps towards it. Across the Northeast and Yorkshire, we are on hand to help people take their first steps towards abstinence, support their ongoing recovery, and celebrate the recovery community.

Women and Children’s Service:

Changing Lives’ Women’s Services reach out and support women and girls at risk and who may experience a range of complex needs. At Changing Lives, we provide support around vulnerabilities which are directly affected by gender, often relating to experiences of childhood trauma and abuse, which can continue into adolescence and adulthood.

Our dedicated staff members support women:

Through our supported accommodation, women’s centres, outreach services and community hubs, we take a women-centred approach to supporting our clients to lead fulfilling lives. This means:

Employment Services:

Employment Services help people who face barriers to the job market get employment-ready and secure sustainable jobs.

We support people to gain the confidence and skills they need to access employment by matching every person with an employment coach who will work with them on a one-to-one basis.

We work to empower people to take control of their futures. We understand that often people come to us with low self-esteem and no confidence in their abilities, because of past trauma and abuse.

We therefore prioritise workshops that can help boost confidence, as well as offering support developing CVs and setting up work placements.

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In 2021/22 we worked with around 12,000 people across our services and four pillars, in the Midlands, the North and Westminster to integrate services and develop new approaches that are person-led.

Our volunteers:

Our work is supported by a committed team of over 149 volunteers who collectively contributed over 14,000 hours in 2021/22. Volunteers support us across our services in a variety of roles including counselling, mentoring and in our central services.

Public Benefit:

We promote social inclusion for the public benefit by preventing people from becoming socially excluded, relieving the needs of those people who are socially excluded and assisting them to lead sustainably independent and fulfilled lives.

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Achievements and Performance:

Review of Operations

2021/22 was a challenging year for Changing Lives’ operational services. Having tirelessly worked to support people through a year of lockdowns and uncertainty caused by the pandemic, the after effects, plus national and global events continued to cause hardship for the people we work with and continued challenges for our teams. In common with many organisations’ recruitment was challenging and we had to adapt to changing patterns of demand and usage of our services. Despite all of this, our teams continued to focus on the people using our services, delivering, and ensuring consistent, positive support to help people overcome trauma and build on their strengths.

Our services continued to develop, we significantly expanded the delivery of women’s criminal justice services with direct contracts with the Ministry of Justice in Northumbria, Cleveland, South Yorkshire West Midlands, Staffordshire, Leicestershire and Warwickshire. To deliver these contracts we work in close partnership with other women’s organisations in the areas in which we work. As part of the mobilisation of this work we also achieved ISO27001 accreditation.

We welcomed the Middlesborough Domestic Abuse Refuge, providing a safe space and support for women and families fleeing abuse, with plans to develop dispersed accommodation accessible for all people experiencing domestic abuse.

In partnership with Durham County Council, we opened a new service in Spennymoor, the North Eastern, providing supported accommodation for people experiencing homelessness in the county.

In Northumberland and North Tyneside, Mental Health Outreach services launched, providing strengths based support to people leaving hospital to help them stay well and access services in their communities.

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Our influencing work continued, including via the STAGE project, a partnership project which works with women experiencing sexual exploitation across the North of England and aims to influence their treatment and access to support, including access to justice, access to safe housing, how we support black and minoritized women, access to good health services and transitional ages. The STAGE influencing group continues to be chaired by Jess Phillips, MP, and involves key partners.

In April, then Civil Society Minister Baroness Diana Barran gave a keynote speech at our 50th Celebration Roundtable breakfast event ‘Recovery from the Pandemic: How do we support people and communities in the Northeast to Build Back Better?’, and in July we hosted a roundtable for the Better Way Network, ‘Doing Things Differently in the North’.

Our ‘Learning to Listen Again’ report, produced jointly with the Centre for Public Impact, was published in May, and the potential of this methodology to change power dynamics so people who are seldom heard can be involved in democratic processes has attracted wide interest.

We have highlighted the potential of dispersed housing as a community-led response to homelessness. In September, our flagship project, Bentinck Terrace, was officially opened by the Government's former rough sleeping advisor Baroness Louise Casey.

In October, our STAGE partnership hosted an online parliamentary event chaired by the Victims’ Commissioner Dame Vera Baird and featuring key MPs and peers to raise awareness of sexual exploitation. This coincided with our announcement of £1m funding from the National Lottery Community Fund to continue our work to raise awareness of adult sexual exploitation.

Future Plans

Our 2022/24 Strategy sets out our overarching objectives for the year ahead.

1. Excellent Services

Our wide range of services for people experiencing challenging times, disadvantage and discrimination are underpinned by our Theory of Change, −Being Becoming Belonging −enabling those we support to live flourishing lives. We will continue to improve, adapt and develop our services, both operational and enabling, to ensure we are delivering the best possible support where we are needed. To do this we will:

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2. Sustainability

The organisation and the people we work with are facing pressures on costs the like of which we have not seen for over 30 years and climate change needs to be urgently addressed by us all. We will focus on sustainable growth, quality, efficiency and environmental responsibility in order to ensure we can continue to respond to what matters to the people who use our services in the short, medium and long term. To do this we will:

3. Diversity & Inclusion

Systemic discrimination is a significant factor for many of the people we work with, keeping people trapped in the system and unable to fulfil their potential. We recognise that at Changing Lives we must be proactively anti-discriminatory and in particular to be anti-racist. We want our staff teams and leadership to reflect the communities in which we work and be open and relevant for people who need our services. We commit to improving diversity and inclusion at all levels of the organisation. To do this we will:

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4. Social Change

Changing Lives delivers services that primarily respond to people experiencing crisis, however we know that this alone will not create longer term change and ultimately social justice. We want to challenge the assumption that crisis is inevitable, promote preventative action and improve responses across the system. To do this we will:

Our Workforce - Employee Engagement:

The end of the third national lockdown in April 2021 marked the beginning of the financial year and a gradual easing of restrictions and move towards wider social contact. For the people who work with us, this impacted in different ways. For colleagues working in our services, the changes meant a continuation of working arrangements that had continued throughout the pandemic whereby our focus was on delivering support and managing any risk as far as we were able. For colleagues working within our enabling support functions, this meant a gradual return to office-based working and in-person contact. We had to accept that the world had fundamentally changed and therefore it was important to use our experiences and insights to think carefully about ways of working and connecting for the future. This came about through our commitment to “Working with Purpose” whereby efforts focussed on local service delivery and what really matters to the people we support and the people we work with. This included thinking carefully about how our teams connect both across operational services but also with our enabling support functions and how we could work towards a “one-team” approach.

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We tackled this in various ways, one solution included beginning a programme of system and process improvements to remove barriers with the aim of connecting teams whilst also supporting colleagues in our services to carry out their roles in the best way possible. This included the introduction of an automated recruitment platform to attract and hire new colleagues in a more timely and efficient way thus significantly reducing the burden on operational colleagues. This had the effect of building stronger relationships across operational and enabling teams given the shared purpose for improvement at the time of the national recruitment crisis during the autumn of 2021.

Connecting colleagues across our different services and geographies was also a key focus coming out of the pandemic and particularly for new colleagues who had joined us and whose onboarding experience had been affected. We invested effort in ensuring our communications were informative, relevant and accessible to all colleagues. The senior leadership team also took the opportunity, when restrictions allowed, to increase project visits to meet with, and hear from, our colleagues and encouraged others to do the same. Similarly, our Staff Voice Forum continued to reach out to colleagues and supported the work of various support networks in holding safe spaces for colleague connection, support and sharing of experiences. Our much loved and highly anticipated annual staff celebration event was postponed for the second year running with plans to hold an in-person event during summer 2022. We used the date set aside for the annual event for teams to celebrate their efforts and successes locally.

It was important during this period for us to think carefully about the effects of the past two years on our colleagues and to ensure our support provisions were relevant and accessible to everyone. We carefully monitored colleague behaviours during this period, e.g. sickness and other absence and continued our efforts to deliver wellbeing support that promoted good health whilst delivering timely support when things were not right. We particularly focussed efforts on mental wellbeing given we had identified a rise in absence rates, whilst at the same time looking at ways to improve work and the associated challenges which were occasionally associated with periods of absence. Our efforts saw us maintaining absence rates at workable levels, i.e. around 9% at the end of the previous financial year (FY20/21) which were reduced to around 3.8% at the end of this financial year (FY(21/22).

A significant time during the latter part of this year was committed to responding to what was coined “the Great Resignation” at a time when demand for jobs nationally far exceeded supply, the effects of which saw high turnover for Changing Lives coupled with significant difficulty in hiring new staff. Whilst efforts to turn this around were a priority, including reducing resultant reliance on temporary workers, the impacts upon staff could not be underestimated. Pay appeared to be a contributory factor for increased turnover whereby employers with ability to increase pay rates were successful in attracting talent. In addition, we saw high turnover within our lowest paid roles, i.e. night shift support workers, as a consequence of which we uplifted pay rates during the end of 2021 to address. This saw some improvement and assisted us in maintaining safe resourcing levels however we recognised that this is likely to be a temporary solution at a time of significant change in the world of work.

We ended the year with a clear understanding of the people related challenges and where our focus needed to be as we entered into the new financial year. Specifically, this is continuation of efforts to review our approach to work including how we are resourcing our services in the best way possible; ensuring we give the people we work with the best experience and tools to do their jobs, helping them to develop whilst valuing and supporting their efforts; and continuing our way to connect across all of our services by working as one team with one shared purpose.

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Energy and Carbon Usage:

The Charity’s work is around housing and homelessness. At the end of the financial year, the group had 1145 (2021:998) housing units. Properties vary from individual rooms to multi occupancy buildings, houses, and offices. Throughout the year, we employed an energy agency to manage our gas and electricity suppliers.

As can be seen from the table below, we own/lease few vehicles and emissions from owned transport contributes less than 6% of the Charity’s carbon emissions.

Quantification and Reporting Methodology

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol - Corporate Standard and have used the 2022 UK Government’s Conversion Factors for Company reporting (as updated September 2022).

Intensity Measurement

The chosen intensity measurement ratio ifs total gross emissions in metric tonnes CO2e per housing unit, the most relevant measure as most our emissions arise from our housing and homelessness activities.

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Pay Policy:

The Remuneration Committee is established to recommend to the main Board an overall remuneration policy that is aligned with its long-term business strategy and objectives, enable the recruitment, retention and development of senior executives and the wider workforce whilst also complying with the requirements of regulation. The work of the Committee includes:

Financial review:

The group achieved a total surplus of £74,348 of which £297,706 surplus relates to restricted income funds.

The results for the past three years have been significantly impacted by the timing and accounting treatment of the work on Elliot House, a property in the West of Newcastle. In 2019 we secured grant funding from Homes England to renovate and restructure the interior to provide 36 flats. The grant funding has allowed us to achieve our aims of providing high quality accommodation to those in need, however the ceiling price of the property has been restricted due to its location and as a result the cost of the work has been impaired to the market value.

The grant funding has been treated as restricted funds income, with the impairment being charged against unrestricted income. The impact of the work on Elliot House on the net movement in funds, for the two financial years, is illustrated below:

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Investment policy:

The Trustees, having regard to the liquidity requirements of operating the charity, have kept available funds in an interest-bearing deposit account and seek to achieve a rate on deposit which matches or exceeds rates available in the current market.

During the year, trustees took the opportunity to repay certain bank loans to reduce the interest cost to the charity

The charity gifted its investment in The Cyrenians Fareshare North East Ltd to Fareshare North East on 30 June. In addition, the joint venture company Northern Inclusion Consortium was wound up on 30 September, with the investment being impaired in the accounts to the value of the final distribution, received in April 2021.

Reserves policy and going concern

The calculation of free reserves is based on the definition included in the charity statement of recommended practice (SORP), which provides recommendations for accounting and reporting for charities. The trustees have examined the requirements of the charitable company to hold free reserves those reserves not invested in tangible fixed assets, excluding long term liabilities, or designated for a particular purpose. Resulting from this, the trustees consider it prudent to maintain unrestricted free reserves at a level sufficient to cover between two to four months of staff costs and lease commitments which equates to approx. £3million. At the 31 March 2022 the level of free reserves held by the charity was (£558,543), (2021 (£283,625) restated). The level of unrestricted reserves held by the charity at the year-end was £7,356,781 (2021 - £7,580,139 restated).

As part of the reserves policy the trustees have designated the following funds: Sinking fund of £640,591 (2021 - £640,591); Core Properties fund and the revaluation reserve £4,685,403 (2021 - £4,712,203). Narrative for these funds can be found in note 24 of the financial statements.

Overall funds of £13,671,561 (2021 - £13,597,213 restated) were held at 31 March 2022 which included restricted amounts of £6,471,515 (2021 - £6,017,074 restated).

Risk management

The directors have examined the major strategic, business and operational risks which the charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to mitigate these risks where necessary.

The Covid-19 pandemic and its knock-on impacts around staffing and use of agency staff are significant risks, there are other external risks around changes in policy that may also impact on funding. This has led to the development of strategic plans which are regularly revised and allow for the diversification of funding and activities. Internal risks are minimized by the implementation of procedures for authorization of all transactions and projects.

The charity maintains a risk register to ensure management of strategic risks, the Risk and Quality Committee has responsibility for oversight and quarterly review of the risk register, all strategic non-compliances and major strategic and operational risks to include safeguarding and health & safety. This Committee is chaired by a trustee, and reports into the main Board.

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The charity has a loan with Barclays bank which has a covenant attached to it to monitor certain financial KPIs. Despite this loan, the charity is not particularly highly geared and in the event of a cash shortfall would be able to raise further finance against its assets, mainly property.

A large proportion of our income is derived from Local Authority budgets via housing benefit, contracts for service and grants. The announcement in the Autumn 2021 budget of increases in both National Insurance and National Minimal Wage, when combined with rising inflation, will place considerable cost pressures on these budgets. We are in the process of writing to our funders to raise these issues for discussion and looking at the viability of our projects should suitable increases not be forthcoming.

Our approach to fundraising activities:

The Charity complies with the Code of Fundraising Practice. All funds raised by the Charity will be spent for the purpose for which they are raised. All funds raised through sponsorship activities will be banked into the Charity's bank account before deduction of expenses. All literature will properly describe what donations will be used for. All fundraising activities will be conducted in an open honest and transparent manner. Changing Lives does not employ the services of outside professional fundraisers. During the period under review no complaints have been received. Changing Lives values the contribution made by all our donors. Changing Lives will treat all donors with respect and dignity. Changing Lives do not, and will not make, unsolicited calls to members of the public requesting donations.

Statement of Trustees' Responsibilities

The trustees (who are also the directors of The Cyrenians Limited for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of 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 charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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Disclosure of information to auditor

Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Reappointment of auditor

Azets Audit Services Limited, trading as Azets Audit Services, were appointed auditor to the company following their acquisition of the trade of Tait Walker LLP, trading as MHA Tait Walker, on 1 May 2022.

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Azets Audit Services as auditors of the charity is to be proposed at the forthcoming Annual General Meeting.

The annual report was approved by the trustees of the charity on .................... and signed on its behalf by:

......................................... Dean Fielding Chair

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Independent Auditor's Report to the Members of The Cyrenians Limited

Opinion

We have audited the financial statements of The Cyrenians Limited (the 'charitable parent company') and its subsidiaries (the 'group') for the year ended 31 March 2022, which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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Independent Auditor's Report to the Members of The Cyrenians Limited

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Financial Statements and the Trustees' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities (set out on page 15), the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

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Independent Auditor's Report to the Members of The Cyrenians Limited

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Because of the field in which the client operates, we identified the following areas as those most likely to have a material impact on the financial statements: Health and Safety; Building and fire safety regulations including; employment law (including the Working Time Directive); Care Quality Commission and compliance with the UK Companies Act and Charities Act.

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

19

The Cyrenians Limited

operating as Changing Lives

Independent Auditor's Report to the Members of The Cyrenians Limited

Use of our report

This report is made solely to the charitable parent company's trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the group's trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable parent company and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

...................................... Simon Brown BA ACA DChA (Senior Statutory Auditor) For and on behalf of Azets Audit Services Chartered Accountants Statutory Auditor Bulman House Regent Centre Gosforth Newcastle upon Tyne NE3 3LS

Date:.............................

Azets Audit Services is a trading name of Azets Audit Services Limited.

20

The Cyrenians Limited

operating as Changing Lives

Consolidated Statement of Financial Activities for the Year Ended 31 March 2022 (Including Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investment income
6
Total Income
Expenditure on:
Raising funds
Charitable activities
7
Total Expenditure
Net income
Transfers between funds
Other recognised gains
and losses
Gains/losses on revaluation
of fixed assets
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
24		 Unrestricted
£
296,840
25,106,506
324,812
919
25,729,077
(14,455)
(25,643,718)
(25,658,173)
70,904
(20,343)
(273,919)
(223,358)
7,580,139
7,356,781		 Restricted
£
248,736
5,412,609
-
-
5,661,345
-
(5,383,982)
(5,383,982)
277,363
20,343
-
297,706
6,017,074
6,314,780		 Total
2022
£
545,576
30,519,115
324,812
919
31,390,422
(14,455)
(31,027,700)
(31,042,155)
348,267
-
(273,919)
74,348
13,597,213
13,671,561		 (As restated)
Total
2021
£
1,007,452
26,174,143
146,393
482
27,328,470
(7,050)
(26,288,432)
(26,295,482)
1,032,988
-
(3,043,916)
(2,010,928)
15,608,141
13,597,213

Included in expenditure on charitable activities above is a tax provision of £24,000 (2021: £28,593).

All of the group's activities derive from continuing operations during the above two periods. The funds breakdown for 2021 is shown in note 24.

21

The Cyrenians Limited

operating as Changing Lives

Comparative Consolidated Statement of Financial Activities for the Year Ended 31 March 2021 (Including Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investment income
6
Total income
Expenditure on:
Raising funds
Charitable activities
7
Total expenditure
Net income
Transfers between funds
Other recognised gains and losses
Gains/losses on revaluation of fixed assets
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
24		 Unrestricted
£
444,897
23,656,930
146,393
482
24,248,702
(7,050)
(24,040,998)
(24,048,048)
200,654
784,285
(3,043,916)
(2,058,977)
9,639,116
7,580,139		 Restricted
£
562,555
2,517,213
-
-
3,079,768
-
(2,247,434)
(2,247,434)
832,334
(784,285)
-
48,049
5,969,025
6,017,074		 (As restated)
Total
2021
£
1,007,452
26,174,143
146,393
482
27,328,470
(7,050)
(26,288,432)
(26,295,482)
1,032,988
-
(3,043,916)
(2,010,928)
15,608,141
13,597,213

22

The Cyrenians Limited

operating as Changing Lives

(Registration number: 00995799) Consolidated Balance Sheet as at 31 March 2022

Note
Fixed assets
Intangible assets
14
Tangible assets
15
Investments
16
Current assets
Debtors
17
Cash at bank and in hand
18
Creditors: Amounts falling due within one year
19
Net current assets
Total assets less current liabilities
Creditors: Amounts falling due after more than one year
20
Net assets
Funds of the group:
Restricted
Unrestricted income funds
Designated funds
General funds
Total unrestricted funds
Total funds
24		 2022
£
9,382
15,018,266
-
15,027,648
3,422,903
3,718,142
7,141,045
(5,952,018)
1,189,027
16,216,675
(2,545,114)
13,671,561
6,314,780
5,325,994
2,030,787
7,356,781
13,671,561		 (As restated)
2021
£
14,073
15,186,048
10,929
15,211,050
2,970,456
3,016,801
5,987,257
(4,860,952)
1,126,305
16,337,355
(2,740,142)
13,597,213
6,017,074
5,352,794
2,227,345
7,580,139
13,597,213

The financial statements on pages 21 to 57 were approved by the Trustees, and authorised for issue on .................... and signed on their behalf by:

......................................... Dean Fielding Chair

23

The Cyrenians Limited

operating as Changing Lives

(Registration number: 00995799) Balance Sheet as at 31 March 2022

Note
Fixed assets
Intangible assets
14
Tangible assets
15
Investments
16
Current assets
Debtors
17
Cash at bank and in hand
18
Creditors: Amounts falling due within one year
19
Net current assets
Total assets less current liabilities
Creditors: Amounts falling due after more than one year
20
Net assets
Funds of the charity:
Restricted
Unrestricted income funds
Designated funds
Unrestricted funds
Total unrestricted funds
Total funds
24		 2022
£
9,382
14,746,497
-
14,755,879
3,841,136
2,722,482
6,563,618
(5,626,444)
937,174
15,693,053
(7,658,193)
8,034,860
632,324
5,316,666
2,085,870
7,402,536
8,034,860		 (As restated)
2021
£
14,073
14,984,225
10,929
15,009,227
2,789,314
2,898,221
5,687,535
(4,671,733)
1,015,802
16,025,029
(7,968,206)
8,056,823
314,354
5,343,466
2,399,003
7,742,469
8,056,823

The charity made a deficit after tax for the financial year of £21,963 (2021 - deficit of £2,510,052 restated).

The financial statements on pages 21 to 57 were approved by the Trustees, and authorised for issue on .................... and signed on their behalf by:

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

Dean Fielding Chair

24

The Cyrenians Limited

operating as Changing Lives

Consolidated Statement of Cash Flows for the Year Ended 31 March 2022

Note
Cash flows from operating activities
Net cash income
Adjustments to cash flows from non-cash items
Depreciation
Amortisation
Investment income
6
Interest payable
Impairment loss on disposal of fixed assets held for the
group's own use
Working capital adjustments
Decrease in stocks
Increase in debtors
17
Increase in creditors
19
Decrease in provisions
Increase in deferred income
20
Net cash flows from operating activities
Cash flows from investing activities
Interest receivable and similar income
6
Purchase of tangible fixed assets
15
Sale of tangible fixed assets
Sale of investments
Net cash flows from investing activities
Cash flows from financing activities
Interest payable and similar charges
Repayment of loans and borrowings
19
Repayment of capital element of finance leases and HP
contracts
21
Net cash flows from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at 1 April
Cash and cash equivalents at 31 March		 2022
£
348,267
535,371
4,691
(919)
48,387
-
935,797
-
(452,447)
506,390
-
688,386
1,678,126
919
(641,508)
-
10,929
(629,660)
(48,387)
(298,738)
-
(347,125)
701,341
3,016,801
3,718,142		 (As restated)
2021
£
1,032,988
537,971
4,691
(482)
77,863
8,609
1,661,640
295,150
(920,536)
717,337
(7,298)
524,418
2,270,711
482
(3,067,144)
108,281
-
(2,958,381)
(77,863)
(1,303,878)
(20,561)
(1,402,302)
(2,089,972)
5,106,773
3,016,801

All of the cash flows are derived from continuing operations during the above two periods.

25

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

1 Charity status

The charity is limited by guarantee, incorporated in England, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.

The address of its registered office is: Unit D13, Marquis Court, Team Valley Trading Estate, Gateshead, Tyne and Wear, NE11 0RU.

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with 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) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.

Basis of preparation

The Cyrenians Limited 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 notes.

The financial statements are prepared in Sterling which is the functional currency.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the charity and its subsidiary undertakings drawn up to 31 March 2022.

No statement of financial activities is presented for the charity as permitted by section 408 of the Companies Act 2006. The charity made a deficit after tax for the financial year of £21,963, after recognising an impairment on Elliott House totalling £273,919 (2021 - deficit of £2,510,052 restated).

26

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

A subsidiary is an entity controlled by the charity. Control is achieved where the charity has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Inter-company transactions, balances and unrealised gains on transactions between the charity and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination. Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Going concern

The charity’s forecasts and projections for the next twelve months show that the charity should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance. The charity and its trading subsidiaries have strong positive cash balances and is forecasting for this to continue to be the case. The trustees have stress tested their forecasts, taking into account various scenarios, and remain confident that the uncertainties do not cast significant doubt on the company’s ability to continue as a going concern.

Estimation uncertainty and judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported.

Determine whether leases entered into by Changing Lives either as a lessor or lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

Determine whether there are any indicators of impairment of Changing Lives tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.

Key sources of estimation uncertainty

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. The carrying amount is £15,018,266 (2021 - £15,186,048).

27

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

Income and endowments

All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

Donations and legacies

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then the income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS102). Further detail is given in the Trustees' Annual Report.

Grants receivable

Revenue grants receivable are credited to income immediately where entitlement is not conditional on the delivery of specific performance criteria by the group. Where grants relate to performance and specific deliverables, income is accounted for as the group earns its right to consideration by its performance.

Deferred income

Deferred income represents amounts received for future periods and is released to incoming resources in the period for which, it has been received. Such income is only deferred when:

Gift aid

Incoming resources from tax reclaims are included in the Statement of Financial Activities at the same time as the gift to which they relate.

Other trading activities

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raised funds and is recognised when entitlement has occurred.

Investment income

Interest is included when receivable by the group.

Charitable activities

The recognition of income received in relation to the Social Housing Grant within the consolidated accounts is done so using the performance model in line with the charities SORP.

28

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

Other income

Net Assets transferred on the acquisition of entities into the group are recorded within voluntary income at the value that the assets are worth on the date of the transfer.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charity's (and the group's) activities. These costs, which have not been directly apportioned, have been allocated between cost of raising funds and expenditure on charitable activities. The basis on which support costs have been allocated are set out in the Support Cost note.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

29

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Intangible assets

Intangible assets are stated in the Balance Sheet at cost less accumulated amortisation and impairment. They are amoritsed on a straight line basis over their estimated useful lives.

Amortisation

Amortisation is provided oni ntangible fixed assets so as to write off the cost, less any estimated residual value, over their expected useful economic life as follows:

Asset class

Rebranding

Amortisation method and rate 10% straight line

Tangible fixed assets

Individual fixed assets are initially recorded at cost.

Where fixed assets have been previously carried at a revalued amount, upon transition to FRS102 deemed cost was adopted.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate Straight line over the period of the Leasehold property improvements lease Freehold and leasehold property 2% - 15% straight line Motor vehicles 25% straight line Fixtures and fittings 25% - 33% straight line

No depreciation is provided on land.

Impairment of fixed assets

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount.

30

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

Fixed asset investments

Investments in subsidiaries are recognised at cost.

Investments in associates are measured at cost less impairment.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the group.

The group has designated certain funds for specific purposes. These are explained in more detail in the notes. The directors have decided that setting aside funds in this way is a useful financial discipline, which will help the group make the best use of its resources, even though there is no legal force to the designation.

31

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Operating leases

Assets held for use in operating leases are included as a separate category in fixed assets at cost and depreciated over their useful life.

Rental income from operating leases is recognised on a straight line basis over the term of the lease.

Pensions and other post retirement obligations

The group also operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the group. The annual contributions payable are charged to the income and expenditure account.

Financial instruments

The charitable company 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.

3 Income from donations and legacies

Donations and legacies;
Donations
Legacies
Grants, including capital grants;
Government grants
Donations and legacies;
Donations
Legacies
Grants, including capital grants;
Government grants
Grants		 Unrestricted
funds
General
£
291,611
5,229
-
296,840
Unrestricted
funds
General
£
132,501
298
7,076
305,022
444,897		 Restricted
funds
£
112,265
-
136,471
248,736
Restricted
funds
£
-
-
557,074
5,481
562,555		 Total
2022
£
403,876
5,229
136,471
545,576
Total
2021
£
132,501
298
564,150
310,503
1,007,452

32

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

4 Income from charitable activities

Homelessness including Day Centre &
Outreach
Addictions and Recovery
Employment and Training
Womens Services including Family
Homelessness including Day Centre &
Outreach
Addictions and Recovery
Employment and Training
Womens Services including Family		 Unrestricted
funds
General
£
17,707,550
2,997,513
525,916
3,875,527
25,106,506
Unrestricted
funds
General
£
16,061,959
4,065,868
865,352
2,663,751
23,656,930		 Restricted
funds
£
2,038,632
2,005,460
34,517
1,334,000
5,412,609
Restricted
funds
£
899,721
44,370
10,000
1,563,122
2,517,213		 Total
2022
£
19,746,182
5,002,973
560,433
5,209,527
30,519,115
Total
2021
£
16,961,680
4,110,238
875,352
4,226,873
26,174,143

5 Income from other trading activities

Trading income;
Sales of goods and services
Events income;
Fundraising
Property rental income
Other income from other trading activities		 Unrestricted
funds
General
£
69,077
16,902
79,759
159,074
324,812		 Total
2022
£
69,077
16,902
79,759
159,074
324,812

33

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

Trading income;
Sales of goods and services
Events income;
Fundraising
Membership subscriptions
Property rental income
Other income from other trading activities
6
Investment income
Interest receivable and similar income;
Interest receivable on bank deposits
Interest receivable and similar income;
Interest receivable on bank deposits		 Unrestricted
funds
General
£
25,547
5,144
(987)
17,660
99,029
146,393
Unrestricted
funds
General
£
919
919
Unrestricted
funds
General
£
482
482		 Total
2021
£
25,547
5,144
(987)
17,660
99,029
146,393
Total
2022
£
919
919
Total
2021
£
482
482

34

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

7 Expenditure on charitable activities

Unrestricted
funds
General
£
Homelessness including Day Centre & Outreach
18,002,700
Addictions and Recovery
2,843,058
Employment and Training
717,217
Womens Services including Family
4,080,743
25,643,718
Unrestricted funds
Designated
£
General
£
Homelessness including Day
Centre & Outreach
144,479
16,033,021
Addictions and Recovery
-
4,189,224
Employment and Training
-
923,408
Womens Services including
Family
-
2,750,866
144,479
23,896,519
Activity
undertaken
directly
£
Homelessness including Day Centre & Outreach
19,347,400
Addictions and Recovery
4,243,581
Employment and Training
725,250
Womens Services including Family
5,101,698
29,417,929		 Restricted
funds
£
2,346,396
1,696,417
70,469
1,270,700
5,383,982
Restricted
funds
£
750,529
19,405
10,010
1,467,490
2,247,434
Activity
support
costs
£
1,001,696
295,894
62,436
249,745
1,609,771		 Total
2022
£
20,349,096
4,539,475
787,686
5,351,443
31,027,700
Total
2021
£
16,928,029
4,208,629
933,418
4,218,356
26,288,432
2022
£
20,349,096
4,539,475
787,686
5,351,443
31,027,700

35

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

Homelessness including Day Centre & Outreach
Addictions and Recovery
Employment and Training
Womens Services including Family		 Activity
undertaken
directly
£
15,855,215
3,931,128
853,315
3,929,412
24,569,070		 Activity
support
costs
£
1,072,814
277,501
80,103
288,944
1,719,362		 2021
£
16,928,029
4,208,629
933,418
4,218,356
26,288,432

Included in expenditure on charitable activities above is a tax provision of £24,000 (2021: £28,593).

In addition to the expenditure analysed above, there are also governance costs of £65,883 (2021 - £74,517) which relate directly to charitable activities. See note 8 for further details.

8 Analysis of support costs

Support costs allocated to charitable activities

Basis of
allocation
Governance
costs
£
Homelessness including Day
Centre & Outreach
Estimate of
staff time
65,883
Addictions and Recovery
Estimate of
staff time
-
Employment and Training
Estimate of
staff time
-
Womens Services including
Family
Estimate of
staff time
-
65,883		 Other
support
costs
£
935,813
295,894
62,436
249,745
1,543,888		 Total
2022
£
1,001,696
295,894
62,436
249,745
1,609,771		 Total
2021
£
1,072,814
277,501
80,103
288,944
1,719,362

Governance costs

Governance costs
Salary costs
Audit fees and other professional fees		 Total
2022
£
43,443
22,440
65,883		 Total
2021
£
45,238
29,279
74,517

36

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

9 Net incoming/outgoing resources

Net incoming resources for the year include:

Audit fees
Other non-audit services
Impairment loss on disposal of fixed assets held for the group's
own use
Depreciation of fixed assets
Amortisation of goodwill		 2022
£
26,220
16,800
-
535,371
4,691		 2021
£
23,400
72,756
8,609
537,971
4,691

Included in other recognised gains and losses is the impairment on the refurbishment of Elliot House totalling £273,919 (2021 - £3,043,916).

10 Trustees remuneration and expenses

Trustees were reimbursed expenses of £Nil (2021 - £Nil).

No trustees, nor any persons connected with them, have received any remuneration from the group during the year.

No trustees have received any other benefits from the charity during the year.

11 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs
Compensation payments		 2022
£
13,462,240
1,145,943
819,513
19,132
15,446,828		 2021
£
13,091,476
1,063,141
784,874
21,858
14,961,349

37

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

The monthly average number of persons (including senior management team) employed by the group during the year was as follows:

Corporate Services
Health and Addictions
Housing and Homeless
Women and Criminal Justice
Employment & Training		 2022
No
78
109
369
92
23
671		 2021
No
75
97
375
101
28
676

During the year, the group made redundancy and/or termination payments which totalled £19,132 (2021 - £21,858).

The number of employees whose emoluments fell within the following bands was:

£60,001 - £70,000
£70,001 - £80,000
£80,001 - £90,000
£110,001 - £120,000		 2022
No
-
1
1
1		 2021
No
3
-
1
1

The total contributions paid to the defined contribution pension scheme during the year for higher paid staff was £40,810 (2021 - £38,416).

The total employee benefits of the key management personnel of the group were £452,698 (2021 - £428,443).

12 Auditors' remuneration

Audit of the financial statements 2022
£
26,220		 2021
£
23,400

38

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

13 Taxation

The group is a registered charity and is therefore potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

14 Intangible fixed assets

Group and Charity

Cost
At 1 April 2021
At 31 March 2022
Amortisation
At 1 April 2021
Charge for the year
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 Rebranding
£
46,911
46,911
32,838
4,691
37,529
9,382
14,073

39

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

15 Tangible fixed assets

Group

Cost
At 1 April 2021
Additions
At 31 March 2022
Depreciation
At 1 April 2021
Impairment
Charge for the year
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 Land and
buildings
£
20,864,231
353,119
21,217,350
6,018,989
273,919
376,086
6,668,994
14,548,356
14,845,242		 Furniture and
equipment
£
1,606,760
288,389
1,895,149
1,265,954
-
159,285
1,425,239
469,910
340,806		 Motor
vehicles
£
86,437
-
86,437
86,437
-
-
86,437
-
-		 Total
£
22,557,428
641,508
23,198,936
7,371,380
273,919
535,371
8,180,670
15,018,266
15,186,048

Included within the net book value of land and buildings above is £14,314,589 (2021 - £14,576,262) in respect of freehold land and buildings and £233,767 (2021 - £268,980) in respect of leaseholds.

Certain freehold land and buildings included above were recognised using the previous valuation, as deemed cost on transition to FRS102. Therefore, at the year end the land and buildings are held at their deemed historic cost.

The valuation of Elliot House, performed by Lambert Smith Hampton on 12 August 2021, was prepared on the basis of value in use within the charitable company's objectives.

Impairment

Freehold property

Following the refurbishment of Elliot House, which has an expected completion date during the 2022 financial year, the value of the property is estimated to be £2,300,000. This has resulted in an impairment as shown in the note above. The amount of impairment loss included in the SoFA is £273,919 (2021 - £3,043,916). The impairment loss is included in land & buildings.

40

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

Charity

Cost
At 1 April 2021
Additions
At 31 March 2022
Depreciation
At 1 April 2021
Impairment
Charge for the year
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 Land and
buildings
£
20,693,943
353,119
21,047,062
6,005,902
273,919
333,565
6,613,386
14,433,676
14,688,041		 Furniture and
equipment
£
1,540,035
133,820
1,673,855
1,243,851
-
117,183
1,361,034
312,821
296,184		 Motor
vehicles
£
85,642
-
85,642
85,642
-
-
85,642
-
-		 Total
£
22,319,620
486,939
22,806,559
7,335,395
273,919
450,748
8,060,062
14,746,497
14,984,225

Included within the net book value of land and buildings above is £14,199,909 (2021 - £14,442,530) in respect of freehold land and buildings and £233,767 (2021 - £245,511) in respect of leaseholds.

Certain freehold land and buildings included above were recognised using the previous valuation, as deemed cost on transition to FRS102. Therefore, at the year end the land and buildings are held at their deemed historic cost.

The valuation of Elliot House, performed by Lambert Smith Hampton on 12 August 2021, was prepared on the basis of value in use within the charitable company's objectives.

Impairment

Freehold property

Following the refurbishment of Elliot House, which has an expected completion date during the 2022 financial year, the value of the property is estimated to be £2,300,000. This has resulted in an impairment as shown in the note above. The amount of impairment loss included in the SoFA is £273,919 (2021 - £3,043,916). The impairment loss is included in land & buildings.

41

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

16 Fixed asset investments

Group
Other investments		 2022
£
-		 2021
£
10,929

Details of undertakings

Details of the investments in which the group holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking
Country of
incorporation
Holding
Proportion of voting
rights and shares held
2022
2021
Associates
Northern Inclusion
Consortium
England
Ordinary
0%
25%
Other investments
Cost or Valuation
At 1 April 2021
Disposals
At 31 March 2022
Provision for impairment
At 1 April 2021
Eliminated on disposal
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 Principal
activity
Procurement
services
Unlisted
investments
£
30,000
(30,000)
-
19,071
(19,071)
-
-
10,929

42

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

Associates

Aggregate financial information of associates
Total assets
Total liabilities
Net assets
Revenues
Profit or loss
Charity
Other investments
Other investments
Cost or Valuation
At 1 April 2021
Disposals
At 31 March 2022
Provision for impairment
At 1 April 2021
Eliminated on disposal
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 2022
£
-
-
-
-
-
2022
£
-
Unlisted
investments
£
30,000
(30,000)
-
19,071
(19,071)
-
-
10,929		 2021
£
125,271
(81,325)
43,946
1,538,544
(69,085)
2021
£
10,929
Total
£
30,000
(30,000)
-
19,071
(19,071)
-
-
10,929

43

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

Details of undertakings

Details of the investments in which the charity holds 20% or more of the nominal value of any class of share capital are as follows:

Country of Proportion of voting Principal
Undertaking incorporation Holding rights and shares held activity
2022
2021
Subsidiary undertakings
TCUK Homes Limited England Limited
by
Guarantee		 100%
100%		 Provision of
social
housing

Subsidiaries

The profit for the financial period of TCUK Homes Limited was £17,658 (2021 - (£11,622)) and the aggregate amount of capital and reserves at the end of the period was (£27,027) (2021 - (£44,685)).

17 Debtors

17 Debtors
Trade debtors
Due from group undertakings
Prepayments
Accrued income
Other debtors		 Group
2022
£
2021
£
1,278,361
751,285
-
-
533,930
523,354
589,531
1,178,202
1,021,081
517,615
3,422,903
2,970,456		 Charity
2022
£
2021
£
1,248,887
750,541
995,256
624,870
482,919
463,925
589,531
621,128
524,543
328,850
3,841,136
2,789,314
2,789,314

Group other debtors includes a bad debt provision of £636,123 (2021 - £619,108).

Charity other debtors includes a bad debt provision of £490,244 (2021 - £429,574).

44

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

18 Cash and cash equivalents

18 Cash and cash equivalents
Group
2022
£
2021
£
Cash on hand
7,909
5,250
Cash at bank
1,191,604
318,580
Short-term deposits
2,518,629
2,692,971
3,718,142
3,016,801
19 Creditors: amounts falling due within one year
Group
2022
£
2021
£ (As
restated)
Bank loans
195,941
299,651
Trade creditors
1,328,958
765,235
Other taxation and social
security
311,943
310,408
Other creditors
99,665
114,550
Accruals
985,933
1,029,916
Deferred income
3,029,578
2,341,192
5,952,018
4,860,952
Deferred income
Group		 Charity
2022
£
2021
£
7,909
5,250
195,944
200,000
2,518,629
2,692,971
2,722,482
2,898,221
Charity
2022
£
2021
£ (As
restated)
195,941
299,651
1,135,295
672,592
289,251
254,607
97,876
112,793
878,503
990,898
3,029,578
2,341,192
5,626,444
4,671,733
4,671,733
Deferred income at 1 April 2021
Resources deferred in the period
Amounts released from previous periods
Deferred income at year end		 2022
£
2,341,192
3,029,578
(2,341,192)
3,029,578		 2021
£ (As
restated)
1,816,774
2,341,192
(1,816,774)
2,341,192
Group
2021
2022 £ (As
£ restated)
Deferred income at 1 April 2021 2,341,192 1,816,774
Resources deferred in the period 3,029,578 2,341,192
Amounts released from previous periods (2,341,192) (1,816,774)
Deferred income at year end 3,029,578 2,341,192

At the balance sheet date the Charity was holding funds in relation to grant and contract income where the conditions attached to the funding have not been met.

45

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

Charity

Charity
Deferred income at 1 April 2021
Resources deferred in the period
Amounts released from previous periods
Deferred income at year end		 2022
£
2,341,192
3,029,578
(2,341,192)
3,029,578		 2021
£(As
restated)
1,750,484
2,341,192
(1,750,484)
2,341,192

At the balance sheet date the Charity was holding funds in relation to grant and contract income where the conditions attached to the funding have not been met.

20 Creditors: amounts falling due after one year

Bank loans
Other creditors
Bank Loans
Repayable Date
Loan 10
31 July 2024
Big issue
investment		 Group
2022
£
2021
£
2,545,114
2,740,142
-
-
2,545,114
2,740,142
Interest Rate
Base rate plus 1.60%
Nil		 Charity
2022
£
2021
£
2,545,114
2,740,142
5,113,079
5,228,064
7,658,193
7,968,206
Total
2022
£
Total
2021
£
2,741,055
2,939,793
-
100,000
2,741,055
3,039,793		 Charity
2022
£
2021
£
2,545,114
2,740,142
5,113,079
5,228,064
7,658,193
7,968,206
Total
2022
£
Total
2021
£
2,741,055
2,939,793
-
100,000
2,741,055
3,039,793
7,968,206
Total
2021
£
2,939,793
100,000
3,039,793

The bank loans are secured by way of a legal charge over Elliott House, 1-3 Bentinck Terrace, 156 & 158 Hotspur Street, The Fells, Roycroft House, Francis House, 36 Bentinck Road and Ridley Villas.

Other creditors within the Charity's balance sheet relate to a lease premium and long term liability due to its subsidiary TCUK Homes Limited.

46

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

21 Obligations under leases and hire purchase contracts

Operating lease commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

Land and buildings
Within one year
Between one and five years
After five years
Other
Within one year
Between one and five years		 Group
2022
£
2021
£
2,281,494
2,063,360
1,012,628
2,405,092
13,036
13,014
3,307,158
4,481,466
45,292
44,448
7,729
41,622
53,021
86,070		 Charity
2022
£
2021
£
1,924,726
1,698,102
630,890
1,918,468
13,036
13,014
2,568,652
3,629,584
45,292
44,448
7,729
41,622
53,021
86,070		 Charity
2022
£
2021
£
1,924,726
1,698,102
630,890
1,918,468
13,036
13,014
2,568,652
3,629,584
45,292
44,448
7,729
41,622
53,021
86,070
3,629,584
44,448
41,622
86,070

22 Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £819,513 (2021 - £784,874).

Contributions totalling £73,606 (2021 - £76,845) were payable to the scheme at the end of the year and are included in creditors.

47

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

23 Commitments

Group

Capital commitments

The total amount contracted for but not provided in the financial statements was £Nil (2021 - £274,100).

Charity

Capital commitments

The total amount contracted for but not provided in the financial statements was £Nil (2021 - £274,100).

24 Funds

Group

Unrestricted funds
General
Unrestricted funds
Designated
Core properties
Property sinking fund
Revaluation reserve
Total unrestricted funds
Restricted funds
Restricted Funds
Total funds		 Balance at
1 April
2021
£
2,227,345
4,060,423
640,591
651,780
5,352,794
7,580,139
6,017,074
13,597,213		 Incoming
resources
£
Resources
expended
£
Transfers
and other
recognised
gains/(losses)
£
25,729,077
(25,658,173)
(267,462)
-
-
(26,800)
-
-
-
-
-
-
-
-
(26,800)
25,729,077
(25,658,173)
(294,262)
5,661,345
(5,383,982)
20,343
31,390,422
(31,042,155)
(273,919)		 Balance at
31 March
2022
£
2,030,787
4,033,623
640,591
651,780
5,325,994
7,356,781
6,314,780
13,671,561

48

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

Unrestricted funds
General
Unrestricted funds
Designated
Core properties
Property sinking fund
Revaluation reserve
Total unrestricted funds
Restricted funds
Restricted Funds
Total funds		 Balance at
1 April
2020
£
4,499,427
3,859,403
628,506
651,780
5,139,689
9,639,116
5,969,025
15,608,141		 Incoming
resources
£
Resources
expended
£
Transfer
and other
recognised
gains/(losses)
£
24,248,702
(23,903,569)
(2,617,215)
-
-
201,020
-
(144,479)
156,564
-
-
-
-
(144,479)
357,584
24,248,702
(24,048,048)
(2,259,631)
3,079,768
(2,247,434)
(784,285)
27,328,470
(26,295,482)
(3,043,916)		 Balance at
31 March
2021
£ (As
restated)
2,227,345
4,060,423
640,591
651,780
5,352,794
7,580,139
6,017,074
13,597,213

The analysis of Restricted Funds can be found at note 29.

49

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

Property Sinking Fund

The charity has a portfolio of both leased and owned properties, all of which should be maintained to a high standard to improve quality of service and standards of living. The sinking fund allows for future major repairs/refurbishment to the assets. Each year part of the sinking fund is spent on internal/external redecoration and upgrading and a separate amount is ring-fenced for future spends. The amount ring fenced represents the estimate of works to be carried out on owned buildings over the next 10 years.

Core Properties

The directors have reviewed the reserves policy and have now designated a property fund equal in value to the book value of the properties less any associated borrowings. The properties included are those core properties which are considered to be long term assets of the charity which could not be easily sold or mortgages obtained against in the event of requiring additional working capital.

Revaluation Reserve

The revaluation reserve relates to the upwards valuations of the core properties.

25 Analysis of net assets between funds

Group

Unrestricted

Intangible fixed assets
Tangible fixed assets
Net current assets/(liabilities)
Creditors over 1 year
Total net assets
Intangible fixed assets
Tangible fixed assets
Fixed asset investments
Net current assets/(liabilities)
Creditors over 1 year
Total net assets		 General
£
Designated
£
9,382
-
5,125,062
4,685,403
(558,543)
640,591
(2,545,114)
-
2,030,787
5,325,994
Unrestricted
General
£
Designated
£
14,073
-
5,226,110
4,731,874
10,929
-
(283,625)
620,920
(2,740,142)
-
2,227,345
5,352,794		 Restricted
£
-
5,207,801
1,106,979
-
6,314,780
Restricted
£
-
5,228,064
-
789,010
-
6,017,074		 Total funds
at 31 March
2021
£
9,382
15,018,266
1,189,027
(2,545,114)
13,671,561
Total funds
at 31 March
2021
£
14,073
15,186,048
10,929
1,126,305
(2,740,142)
13,597,213

50

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

26 Analysis of net funds

Group

Group
Cash at bank and in hand
Debt due within one year
Debt due after more than one year
Net (debt)/funds
Cash at bank and in hand
Debt due within one year
Debt due after more than one year
Net (debt)/funds		 At 1 April
2021
£
3,016,801
(299,651)
(2,740,142)
(22,992)
At 1 April
2020
£
5,106,773
(411,636)
(3,941,381)
753,756		 Financing
cash flows
£
701,341
103,710
195,028
1,000,079
Financing
cash flows
£
(2,089,972)
111,985
1,201,239
(776,748)		 At 31 March
2022
£
3,718,142
(195,941)
(2,545,114)
977,087
At 31 March
2021
£
3,016,801
(299,651)
(2,740,142)
(22,992)

51

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

27 Related party transactions

During the year the group made the following related party transactions:

Karbon Homes

(An employee, the Assistant Director of Development Delivery, of the entity is a director of TCUK Homes Limited)

Rental and repair charges incurred to the value of £118,467 (2021 - £116,740). At the balance sheet date the amount due to Karbon Homes was £531 (2021 - £8,488).

Hobson Golf Club Limited

(A director of the entity was also a trustee of the charity.)

The charity received donations of £2,100 (2021 - £Nil). At the balance sheet date the amount due to/from Hobson Golf Club Limited was £Nil (2021 - £Nil).

TCUK Homes Limited

(Subsidary )

During the year, the charity charged management charges of £414,888 (2021 - £341,001), recharged expenses of £297,924 (2021 - £1,489,126) and was recharged expenses of £115,000 ( 2021 - £176,655). At the balance sheet date the amount due from TCUK Homes Limited was £995,256 (2021 - £624,870).

28 Prior year adjustment

The accounts have been restated to defer charitable activity income in line with the terms of the funding received which was originally recognised in the SoFA in the year of receipt.

Charity

The restatement has resulted in a decrease in income within the 2021 year of £531,297 and an increase in creditors due within one year, resulting in a decrease in net assets and reserves within the 2021 year of £531,297.

Group

The restatement has resulted in a decrease in income within the 2021 year of £531,297 and an increase in creditors due within one year, resulting in a decrease in net assets and reserves within the 2021 year of £531,297.

52

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

29 Restricted Funds

Housing and Homelessness
Funder Purpose of Funding Opening Income Expenditure Transfer Closing
National Lottery Peer research in partnership with Crisis - 9,726 (7,851) 1,875
Community Foundation Community Foundation - 318,365 (348,734) 30,099 -
Community Foundation Establishment of a health and wellbeing hub for young
people		 1,388 588,790 (648,764) 58,586 -
Big Lottery Fund Supporting people with multiple needs in Newcastle and
Gateshead		 - 439,636 (414,386) 25,250
ABF – The Soldiers Charity Support ex armed forces personnel to transition to
civilian lives in Gateshead		 20,000 76,396 (76,643) 19,753
Sunderland City Council Support for rough sleepers in Sunderland 9,796 47,685 (47,346) 10,135
Virgin Money Foundation Establishment of the Athena project in Sunderland - 92,522 (69,005) 22,617
Sunderland City Council Additional COVID related support for families in
Sunderland		 75,430 5,026 (51,066) 29,390
South Tyneside CCG To support people with mental health needs by providing
two self-contained flats for short-term, 24-hour crisis
accommodation to reduce delays in hospital
discharge/risk of admission or readmission to hospital		 18,602 398,932 (468,342) 50,808 -

53

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

29 Restricted Funds (continued)

Funder Purpose of Funding Opening Income Expenditure Transfer Closing
NHS Vale of York CCG To assist hospital staff in York to prevent avoidable
admissions and facilitate effective discharge		 12,695 81,000 (58,492) - 32,203
Homes England Purchase of homes for homeless people 2,228,298 136,471 - (78,888) 2,285,881
Homes England Refurbishment and Redevelopment of Elliot House into
36 flats		 2,999,766 - - (77,847) 2,921,919
Total Housing and Homelessness
Drug and Alcohol		 5,365,975
2,194,819
(2,191,529)
(17,242)
5,352,023
Funder Purpose of Funding Opening Income Expenditure Transfer Closing
City of York Council Establishment of a drug recovery centre in York 500,000 1,416,004 (1,235,301) - 680,703
City of York Council Drug abstinence and recovery programme in York - 129,061 (154,867) 25,806 -
North Yorkshire County Council
via Humankind		 Partnership work in North Yorkshire – aftercare and
recoverysupport		 25,000 479,566 (461,116) - 43,450
Total Drug and Alcohol 525,000
2,024,631
(1,851,284)
25,806
724,153

54

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

29 Restricted Funds (continued)

Women and Children
Funder Purpose of Funding Opening Income Expenditure Transfer Closing
National Lottery Community
Fund		 Fund Support Workers and other posts in
Wolverhampton		 - 65,168 (55,265) - 9,903
The Vardy Foundation Develop Theory of Change model to influence training
and service delivery		 19,787 20,787 (21,190) - 19,384
Merseyside PCC Supporting sex workers in Merseyside to improve their
safetyand report crimes against them		 1,090 92,333 (88,160) - 5,263
MHCLG via Newcastle City
Council – Safe Newcastle Unit		 Part funding of Outreach Workers in Newcastle 15,677 136,579 (126,122) - 26,134
National Lottery Community
Fund		 Support for 120 individuals within the Northumbria
Police region who have been groomed for exploitation.		 5,202 132,426 (124,113) - 13,515
Police, Fire and Crime
Commissioner for North
Yorkshire Community Fund		 Sex work project in North Yorkshire 2,973 98,339 (89,358) - 11,954
DCMS Support to overcoming trauma for adult survivors of
grooming and sexual exploitation		 8,540 237,490 (232,543) - 13,487
People’s Postcode Trust Support girls in Nottingham who experience period
poverty		 4,025 34 (8) - 4,51

55

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

29 Restricted Funds (continued)

Funder Purpose of Funding Purpose of Funding Opening Income Income Expenditure Expenditure Transfer Transfer Closing Closing
West Midlands PCC Victim support in West Midlands - 2,240 (1,021) - 1,219
Halton Borough Council Provision of Domestic Abuse refuge and community
support in Halton borough		 5,851 - - - 5,851
PCC via MSS Domestic Abuse safe accommodation around COVID in
Cheshire		 6,008 - 6,242 - 12,250
Newcastle City Council –
Fairer HousingUnit		 Provision of Domestic Abuse Health Advisor and
Service Navigator		 8,020 300,180 (266,385) - 41,815
National Lottery via North
East Law Centre		 Employ Senior Support Worker as partner supporting
disadvantagedgroups		 8,485 3,945 (12,221) - 209
Northumbria PCC – COVID
Fund		 As above but specifically with reference to issues arising
from COVID		 13,754 257,050 (244,315) - 46,489
Total Women and Children
Employment
Funder Purpose of Funding Opening Income Expenditure Transfer Closing
Newcastle City Council –
Newcastle Fund		 Peer mentoring programme in Newcastle - 35,785 (30,325) - 5,460
Business in the Community Prepare unemployedpeople in Newcastle for work - 24,077 (40,144) 16,067 -
Total Employment -59,862
(70,469)
16,067
5,460

56

The Cyrenians Limited

operating as Changing Lives

Notes to the Financial Statements for the Year Ended 31 March 2022

29 Restricted Funds (continued)

Criminal Justice

Criminal Justice
Funder Purpose of Funding Opening Income Expenditure Transfer Closing
West Midlands PCC Support for women in Walsall and Wolverhampton to
prevent reoffending		 - 20,983 (21,966) 983 -
Nottinghamshire PCC Working with Notts police to provide early intervention
support		 21,416 14,479 (14,275) - 21,620
Total Criminal Justice 21,416
35,462
(36,241)
983
21,620
General General
Funder Purpose of Funding Opening Income Expenditure Transfer Closing
CommunityFoundation Deliver arts basedprojects 2,687 - - (2,687) 2,687
Gateshead MBC Provision of introductorytrainingmodules 1,234 - - (1,234) 1,234
CommunityFoundation 1,350 - - (1,350) 1,350
Total General
Grant Total		 5,271
-
-
(5,271)
-
6,017,074
5,661,345
(5,383,982)
20,343
6,314,780

57