The trustees present their annual report and financial statements for the year ended 30 June 2024.
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 accordance with the principles of the Emmaus movement.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake and have also considered the feedback from the companions within our community.
In achieving these objectives during the year, the charity has focussed on developing its Ditchingham site to become a destination centre for visitors and raising the charity’s profile in the local community so that the public have a better appreciation of the impacts and causes of homelessness. This not only drives footfall to its social enterprises, helping the charity to drive the generation of a surplus, that can be invested into programmes and projects to provide training and support to the formerly homeless people (companions) who live and work on the site, but has a significant beneficial impact on their well-being, self confidence and self-esteem. The range of skills and experience that our companions develop through working in our social enterprises equip them to meet their future life aspirations and re-integrate into and make an active contribution to the wider community. We have also focussed on fundraising and laying the foundations for our plans to increase the number and range of people we can support.
Threats & Future
The greatest threat to our future is the continuing economic uncertainty and the continuing upward pressure on our costs, coupled with the political uncertainty following the recent general election and changes that this may bring in terms of how both local and central government look to address the ever-increasing incidence of homelessness across the country. We have therefore continued to focus on tight cost control, but more importantly delivering maximum value throughout our activities both in terms of financial measures and the positive social impact we deliver for our companions. The increasing regulation of the social housing sector is also likely to drive up our overheads and we have invested during the year in enhanced systems to minimise its impact and demonstrate the value that we add to the lives and well-being of our companions.
The charity aims to balance its day-to-day operating budget. This means that fundraising activities and grant income can be used to invest in our community for the benefit of our companions. I am pleased to report that this objective was achieved this financial year, as unrestricted funds before transfers increased by £16,525.
The year has been very busy, with a significant amount of work being done to improve the site. In time this will enable us to further expand our social enterprise activities, allowing us to increase the number of companions we assist. We are very grateful to our donors, grant funders, volunteers and staff for their amazing support and efforts, which has made this possible.
Income
Total unrestricted income increased by almost 11% to £967,104. Income from charitable activities was lower in the year, mainly reflecting challenging conditions for some of our social enterprise activities. However, I am pleased to report that activity levels recovered in the first few months of our new financial year.
Restricted income was significantly higher. This was thanks to some significant donor contributions which have, and will continue to be, utilised to improve and develop our site. This will enable us to not only support our existing companions, but to expand our offering to assist a greater number of people in the future.
Expenditure
Total expenditure for the year was 13% higher at £1,024,450. This was mainly as a result of higher property costs relating to site improvements.
Reserves Policy
The Board of Trustees continues to be of the view that an equivalent of three months’ worth of operating expenditure should be maintained within the charity’s reserves, as a contingency in case of unforeseen circumstances. In addition to this, the Board may designate additional funds for other anticipated costs or to mitigate against perceived risks.
Donations and grants for specific items, projects or costs are treated as restricted funds and used only for the specific purposes for which they were received.
Reserves
Total reserves at the end of the financial year stood at £1,802,283. Restricted funds increased by £352,698 to £394,515, which was mainly attributable to donation income received for future use on our B&B development project. Unrestricted funds increased from £851,470 to £1,407,768. Most of this has been invested in the development of the site to provide the basis for future social enterprise income development, for the benefit of our existing and future companions.
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 Board of Trustees has developed a risk register, which is regularly reviewed. Actions are then formulated to mitigate, as far as possible, against these risks.
Future Plans
Our future plans for the next stage of the community’s development are both expansive and far reaching and look to progressively increase the number of companions that we are able to support over the next 3 – 5 years, as well as increasing the range of backgrounds of the people we can properly support. This will also require us to develop the scope and range of our social enterprises to help them learn and re-learn skills and capabilities that will equip them for their future. Our plan is to undertake this in such a way that any new activities are related to our existing operations and will add value both in terms of surplus generation and therapeutic benefit. We have recently completed the refurbishment of the old refectory which will be a key element of the bed and breakfast offering and will also enable us to open it up to the local community, encourage interaction with our companions and act as centre point for the development of training and other activities for external organisations and individuals. We are really grateful to the National Lottery Heritage Fund for their assistance with this project and bringing it to life and to illustrate the history of All Hallows.
Alongside this we have secured significant funding from the Community of All Hallows and Garfield Weston to continue to develop the accommodation in the Old Convent Buildings and address the fundamental structural issues, before embarking on the conversion of the old nun’s cells to bedrooms. We anticipate these bedrooms being used not only for walkers and cyclists along the Via Beata, but also the provision of retreat accommodation and potential use by external organisations for a variety of group activities. We have spent a tremendous effort over the latter part of the year organising a monumental fundraising event in late summer 2024, which will help to raise additional funds to convert the bedrooms and equally raise awareness of homelessness and the reasons for it and the valuable work that Emmaus does across the UK to try to alleviate its impact and give people the opportunity to achieve their aspirations for the future.
In the background we have been working with the Community of All Hallows to acquire leases on an additional 3 houses on the site to provide additional accommodation for up to 20 companions, to include the provision of ‘women’s only’ facility to provide therapeutic support to women who have been subject to domestic abuse, sexual abuse and coercive control and an intermediate house to help companions, who feel they are ready to embark on a life outside of Emmaus, and need a little additional help to put their life skills training into practice before stepping out on their own. We anticipate that the ‘women’s only’ facility coming into operation in early 2025 and the intermediate house by the end Q3 2025.
We have also taken the opportunity to extend our social enterprises during the year to include a ‘house clearance’ service that enables us to supplement the donations that we receive for sale in our retail outlets and envisage this becoming an integral part of our overall strategy over the coming years. Not only does this boost our income, but also provides our companions the opportunity to develop their customer service skills. We also plan to increase our upcycling activities. This further increases the breadth and range of work experience we can offer our companions and, at the same time further minimises our environmental impact, mitigates the risk in fluctuating demand for the services we provide, whilst increasing the level and depth of the individualised support we can provide to companions.
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 subcommittees within the Board structure, each of which focuses on specific areas of the overall operation of the organisation. These subcommittees are typically made up of Board members, a key member or members of staff and one or more companions. There are four subcommittees comprising of Community and Solidarity, Finance and Capital Investment, Social Enterprise and Income Generation, and Property and Capital Assets.
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.
In accordance with the company's articles, a resolution proposing that Argents Audit Services Limited be reappointed as auditor of the company will be put at a General Meeting.
The trustees' report was approved by the Board of Trustees.
The trustees, who are also the directors of Emmaus Norfolk and Waveney for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Opinion
We have audited the financial statements of Emmaus Norfolk and Waveney (the ‘charity’) for the year ended 30 June 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.
As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, 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 charitable company or to cease operations, or have no realistic alternative but to do so.
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Other matters
The financial statements for the prior period were not audited.
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Argents Audit Services Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
Raising funds
The statement of financial activities includes all gains and losses recognised in the year.
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. 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 or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
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.
Donations of £290 and other income of £1,976 was received from individuals who served as trustees during the year.
During the year, gifts totalling £229 (2023 : nil) were purchased for retiring trustees.
The average monthly number of employees during the year was:
The remuneration of key management personnel was as follows:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
Deferred income arising from government grants shown above is in relation to the following:
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. Balance held at year end £125,188
Amount received from East Suffolk Council, restricted and held for use for the East Suffolk Scheme, released as and when applications for use are received and goods provided and therefore performance condition is met. Balance held at the year end £18,020.
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. (released in the year ended 30 June 2024)
Donations of £53,070 for the restricted purpose of the completion stage of the B&B rooms of Abbe Pierre House. (released in the year ended 30 June 2024)
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
There were no disclosable related party transactions during the year (2023 - none).