The trustees present their annual report and financial statements for the year ended 30 June 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
The charity's objects are specifically restricted to the alleviation and relief of poverty, hardship and distress arising there from in conformance with the principles of the Emmaus movement.
In achieving those objectives during the year, the charity has continued to develop and improve the community accommodation and develop the social enterprise activity to generate income to support that community. The charity leases a significant property from the Community of All Hallows which it has continued to develop in order to increase the number of companions who may be housed in the community and allow the social enterprise to be expanded to make the community self-sufficient.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Future Plans
Our plans for the next stage of the community’s development are both impactful and ambitious. At the time of writing this report, we are just starting the building work to renovate and refurbish the old refectory. This will be transformed into a shared dining room where our Companions can dine with the local community and our customers who have travelled from further afield and which we can make available to other groups who would benefit from having somewhere to meet. This is part of our strategy to make the Ditchingham site into a destination centre. This work is scheduled to be completed by Spring 2024.
We are also continuing with our plans to turn the upstairs of Abbe Pierre house, which in the past provided the convent bedrooms (cells), into a unique 23-bedroom B&B. This will serve the many walkers and cyclists who are undertaking the walking and cycling trails that are adjacent to the site including the pilgrims trail, the Via Beata. We hope to be able to complete this work by the end of 2025.
We also intend to extend the community accommodation to provide for companions with a wide range of support needs including a women’s only facility and intermediate accommodation for those companions who wish to progress their lives outside of the community and fulfil their aspirations and ambitions for the future. We look forward to making tangible steps towards this in 2024.
These plans represent a huge undertaking and will require a concerted effort from our team of staff and trustees, whilst working closely with the Community of All Hallows and other partners. We are continuing to actively fundraise towards these projects through a variety of means and are planning a major fundraising event with Emmaus UK and other Emmaus Communities late summer 2024 that will highlight the causes and reasons for homelessness across the UK and what we can all do about it.
These projects will also allow us to extend our social enterprises to support us to offer a home, for as long as it is needed, to a broader range and greater number of formerly homeless people, as well as increasing the breadth and range of work skills and experience we can offer our companions and, at the same time,increasing the level and depth of individualised support we can provide.
Threats & Future
The greatest threat to our future is the continuing economic uncertainty, as we continue to adjust to the new realities of life following the COVID pandemic and the turmoil caused by other events, both domestically and around the world that have increased our costs significantly across all our activities. The charity has therefore focused on tight cost controls and working smarter without compromising our charitable objectives.
The last year has been one of re-assessment as to how quickly we can move forward and the effectiveness of our capital commitments. We have also worked hard to ensure that our social enterprises are operating as effectively and efficiently as possible to support the charity’s ongoing financial needs,whilst developing a solid platform for the future and setting in motion plans to diversify into related social enterprises.
Overall, the charity planned a balanced budget to rebuild the business and prepare for investment inrefurbished buildings and diversifying our social enterprises which we have achieved. Unrestricted fundsincreased by £11,123 for the year.
Income
This was a busy, but successful year, with unrestricted income rising to £891,914 which included charitable income of £350,347 reflecting the occupancy of the community. The income from our social enterprises was £489,483. Donations and grants were £65,183 and other income £24,665.
Expenditure
Trading costs decreased to £292,425 continuing to reflect the need to purchase white goods and some furniture to supplement donated goods in meeting NAS requirements. Charitable activities expenditure was £589,715 reflecting increased companion numbers and support. The cost of generating voluntary income rose to £22,747 reflecting the effort to raise funds for investment in future projects and the buildings.
Reserves Policy
The Board have agreed that the minimum level of reserves that must be maintained is the equivalent of three month’s operating expenditure. This is reviewed annually to ensure it remains appropriate.
In addition, the Board may designate funds where there is a particular risk or cost.
Donations and grants for specific items, expenses or activities are treated as restricted funds and used only for the specific purposes for which they were received.
Reserves
Our reserves stand at £893287 at the 30th June 2023. Within this our balance sheet shows that we had£566637 of net current assets of which £428258 was deferred income made up of Garfield Weston grant restricted for work on Abbe Pierre House (APH) and £53070 restricted for work on completion of rooms for B&B in APH. The balance of reserves represents fixed assets.
Risk Management
The charity acknowledges the Charity Commission’s recommendation for them to undertake a review of the major risks to which the charity is exposed. The Trustees recognise their duty and the risks faced by the charity are reviewed on an ongoing basis and they will continue to do so in the future.
The organisation is a charitable company limited by guarantee, incorporated in 8 June 2010 and registered as a charity on 24 June 2010.
The charity is directed by the Board of Trustees and governed by its Memorandum and Articles of Association. The trustees are directors for the purposes of company law and serve terms of three years, after which they may offer themselves for re-election, subject to approval at the charity’s annual general meeting.
Trustees are appointed from the membership of the charity which, in accordance with the Articles of Association, is open to any individual who is interested in furthering the charity’s work.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Organisational structure
The charity is led by the Board of Trustees, supported by separate sub groups within the Board structure, each of which focuses on specific areas of the overall operation of the organisation. Each one of these Working Groups is made up of Board members, a key member or members of staff and one or more companions. There are four Working Groups: Community, Finance, Business, and Development and Property.
Emmaus UK
The charity is a member of Emmaus UK, a federation of Emmaus communities within the UK, who are also a member of the charity. The charity is also a member of Emmaus International which links the Emmaus communities across the globe.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Emmaus Norfolk and Waveney (the charity) for the year ended 30 June 2023.
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Mark Johnstone FCA
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Emmaus Norfolk and Waveney is a private company limited by guarantee incorporated in England and Wales. The registered office is Belsey Bridge Road, Ditchingham, BUNGAY, Suffolk, NR35 2DT, United Kingdom.
The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure is accounted for on an accruals basis and has been classified under headings that
aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Grants
Community project
Community project
Community companion support
Café income
Insurance claim
Shop operating costs
Café operating costs
Community project
Community project
Companion allowances
Property costs
Forge running costs
Vehicle and travel costs
Office costs
Advertising and PR
Sundry
The average monthly number of employees during the year was:
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
The deferred government grant is the balance of the Empty Homes Grant received by the Charity and still to be released over the terms of the lease of the property to which it relates.
Other deferred income is included in the financial statements as follows:
A grant received from Garfield Weston of £250,000 for the restricted purpose of future years development of Abbe Pierre House.
Donations of £53,070 for the restricted purpose of the completion stage of the B&B rooms of Abbe Pierre House.
There were no disclosable related party transactions during the year (2022 - none).