The trustees present their annual report and financial statements for the year ended 30 September 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 Memorandum and Articles of Association, 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 objectives are to provide treatment, support and housing for ex-service men and women, helping them achieve change and freedom from substance misuse; the provision of counselling, support and assistance to ex-service men and women returning to society and work life outside of the Armed Forces; to assist with access to voluntary work placement, education and training opportunities relevant for future employment.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Tom Harrison House (THH) continues to deliver effective and responsive treatment for addiction with an ever-increasing demand for our services and support, as reported in previous years there remains a significant waiting list for the treatment programme. Treatment effectiveness remains high with only 4 (6%) unplanned versus against 64 (94%) planned exits from a total of 68 programme exits in the year.
The expansion into 11 Argyle Road last year moving all treatment into the building has been a huge success enabling the main and support offices to consolidate in 4 Argyle Road enabling more efficient and effective support and operation of the charity and the associated follow-on activities.
THH now registered with the Care Quality Commission (CQC) as an addiction treatment provider has enhanced and promoted the charity, our capabilities and success throughout the year and is proving pivotal in our relationships across the NHS and other organisations in the sector.
The female only client group sessions have been hugely successful and are market leading in support and completion rates and will continue to evolve in the next year.
We continue to work across the veteran charity sector with our unique mental health high intensity service delivering better and sustainable support to veterans in the community and we have achieved all our commitments in the year. We have also furthered our relationship with the Op Courage programme, one of our trustees is employed by the organisation and this direct interaction enhances our relationships with all NHS regions engaged and opens up potential routes to treatment for veterans identified.
These increased relationships are opening up new routes for funding for treatment and broader support for the charity continues to grow, the refreshing of our Trustee Board is in the early stages but will develop during the coming year and begin the development of ideas to consider expansion to a second site moving forward to meet the demand for the treatment we offer.
As at the balance sheet date the company had unrestricted funds deficit of £59,335 (2023: surplus £138,291). The Trustees have assessed the major risks to which the Charity is exposed, and are satisfied that systems are in place to mitigate exposure to those risks.
THH published a reserves policy for the first time in April 2025 recognising the growth and change in the organisation and is seeking to build a reserve of six months operating capital as a base reserve.
The trustees recognise that the failure in producing a reserves policy caused by the charities rapid expansion and acceleration over the past three years should have been identified earlier and will work closely with the CEO, Bookkeeper, and the auditor to ensure a sensible and realistic path to building the reserve is established, maintained, and monitored regularly during the quarterly board meeting.
Additionally, the growth and scope of the charity and its work has evolved quickly out stripping the original and existing policies in scope and scale, the trustee board is also being reset on a more professional footing with an initial task of reviewing and refreshing all policies for the operation of the charity to meet government and charity commission guidelines and responsibilities. Priorities being the reserves policy as noted above and the risk management policy to ensure objectives set by the government and the charities commission against the funding challenge of operations is monitored and THH is able to react and respond in an effective manner.
As we develop the reserves policy and refresh the operating model and other applicable policies, we are extremely conscious of the funding challenges THH faces in continuing to deliver the highly praised and successful treatment programme. The charity has always been and continues to be successful in gaining grant support and this is often how the programme is maintained, it is a growing challenging circle to deliver the annual programme, approximately 60 clients per annum is circa £1.2M in programme costs, the overheads in operating the two buildings, staff, vehicles and follow on support programmes.
The activity in promoting the charity and gaining recognition is continuous and through that programme the ability to apply for and be successful in gaining financial support, in June 2024 a £300K grant was secured and an application for a further £150K over three years from the Veterans Foundation are used to maintain the effective running and operation of the charity and delivering treatment alongside fees paid by client sponsors such as the NHS, Regional authorities and other charities. The trustees believe that the plan to build the reserves will allow THH to move into a more stable record keeping position than “going concern” and this is a priority for this operating year although it is recognised it will take some time to build up the reserve.
The Trustees will maintain a focus on liabilities and the state of unrestricted funds in light of the significant change from last year but remain confident in the charities ability to function and offer service for the foreseeable future.
The charity is a company limited by guarantee without share capital and is governed by its Memorandum and Articles of Association.
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:
In accordance with the company's Memorandum and Articles of Association the company may by ordinary resolution appoint a person who is willing to act as a trustee. The current trustees may also appoint a trustee, but that trustee must retire at the next annual general meeting. The number of trustees shall not be less than three. At each annual general meeting one third of the trustees must retire from office and, if appropiate, apply to be re-elected
For the year of this report a review of Trustees has been conducted and the board reduced to five trustees with 3 trustees now retired and removed from the records in Companies House and with the Charity Commission. The board is moving to recruit 2 possibly 3 new trustees to fully reconstitute the board and create the rotation required by the paragraph above.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The trustees, who are also the directors of Tom Harrison House 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 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.
In accordance with the company's articles, a resolution proposing that Mitchell Charlesworth (Audit) 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.
Opinion
We have audited the financial statements of Tom Harrison House (the ‘charity’) for the year ended 30 September 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 requires 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 145 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.
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.
Extent to which the audit was considered capable of detecting irregularities, including fraud
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
the nature of the industry and sector, control environment and business performance;
the charity’s own assessment of the risks that irregularities may occur either as a result of fraud or error;
the results of our enquiries of management and members of the Board of Trustees of their own identification of and assessment of the risks of irregularities;
any matters we identified having obtained and reviewed the charity’s documentation of their policies and procedures relating to:
identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and
the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
(i) The presentation of the charity’s Statement of Financial Activities, (ii) revenue recognition, and (iii) the overstatement of salary and other costs, and (iv) the understatement of creditors. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and the Statement of Recommended Practice - 'Accounting and Reporting by Charities' issued by the joint SORP making body .
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the charity's ability to operate or to avoid a material penalty. These included Safeguarding and Data Protection Regulations.
Audit response to risks identified
In addition to the above, our procedures to respond to risks identified included the following:
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations described above as having a direct effect on the financial statements;
enquiring of management and members of the Board of Trustees concerning actual and potential litigation and claims;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
reading minutes of meetings of those charged with governance and reviewing correspondence with relevant authorities where matters identified were significant; and
in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
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.
Mitchell Charlesworth (Audit) 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.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Tom Harrison House is a private company limited by guarantee incorporated in England and Wales. The registered office is Tom Harrison House, 4 Argyle Road, Anfield, Liverpool, Merseyside, L4 2RS.
In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, 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. The trustees have however noted that the net current liabilities of £207,390 and a deficit on unrestricted funds of £59,335 are a significant shift from the previous years mitigated by the increased cost charged for treatment and the progression of support bids that will complete outside the reporting period. Therefore, the trustees will 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.
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.
All monetary donations and gifts are recognised in full in the statement of financial activities when receivable, provided there are no donor imposed restrictions as to the timing of the related expenditure, in which case recognition is deferred until the precondition has been met.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Grants towards capital expenditure are recognised in the statement of financial activities on receipt.
Grants towards revenue expenditure are recognised in the statement of financial activities when the recognition criteria has been met.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Expenditure, which is charged on an accruals basis is allocated between:
Expenditure incurred directly in the fulfilment of the charity's objectives (charitable activities);
Expenditure incurred directly in the effort to raise voluntary contributions (costs of generating funds) and
Expenditure incurred in the general running of the charity (support costs).
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).
Recoverable amount is the higher of fair value less costs to sell and value in use. the estimated future cash flows are discounted to the present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/expenditure for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss treated as a revaluation decrease.
Recognised impairment losses are reverser if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate if its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
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 charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass test set out in paragraph I schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Rehabilitation Services
Rehabilitation Services
Subcontractors
Client costs
Consultancy fees
Rent and Rates
Insurance
Light and heat
Cleaning
Repair and maintenance
Printing, postage and stationery
IT and telephone costs
Travel expenses
Rehabilitation Services
Rehabilitation Services
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year (2023: £Nil).
During the year one trustee was reimbursed travel expenses totalling £1,645 (2023: £1,088).
The average monthly number of employees during the year was:
The remuneration of key management personnel was as follows:
The key management team includes the third party supplier The Two Three D Consultancy who were paid £80,826 during the year (2023 - £71,764).
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
There is no specific repayments terms to the loan.
Deferred income is included in the financial statements as follows:
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
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.
- Armed Forces Covenant Foundation Trust provided 3 grants as follow:
Covid Response Grant, The funding was to enable the charity to maintain core therapeutic activities for veterans with addictions during the pandemic;
Positive Pathways. This funding was used to pay for wellbeing and support activities for veterans with addictions;
Sustaining Support. This funding was used to pay for wellbeing and support activities for veterans following the UK withdrawal from Afghanistan.
- Lloyds Bank Foundation is a major voluntary funder who awarded the charity a core costs grant. This funding was used to help pay for our core therapeutic service for veterans with addictions.
- Broughton House Veterans Community Project are the Veterans Places, Pathways and People programme North-West Portfolio lead, whose overall funds are managed/distributed by AFCFT, they are helping to fund the charity's appointment as a Specialist Project lead on substance misuse and to work in collaboration with statutory and third sector community providers to develop a Specific Community Recovery toolkit.
- The Royal Navy & Royal Marines Charity is a voluntary sector funder with specific focus on support for armed forces personnel. In the prior year the charity used this grant to help pay for its own core therapeutic service for the Royal Navy/ Marines personnel. The current year grant was used to fund leasehold improvements at the Argyle Road premises.
- Pilkington donation. This income was used to fund leasehold improvements at the Argyle Road premises.
- Brabners LLP donation. This income was used to fund leasehold improvements at the Argyle Road premises.
- Polytunnel. This was a donation to cover 50% of the capital cost of the purchase of a polytunnel for the allotment.
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.
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows: