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2020-03-31-accounts

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Registered number: 02462697 Charity number: 1000041

15billionebp

(A company limited by guarantee)

Directors’ Report and Financial Statements

For the year ended 31 March 2020

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15BILLIONEBP (A company limited by guarantee)

Contents

Page
Reference and administrative details of the charity, 3 - 4
its trustees and advisers
Directors’ report 5 - 15
Independent auditor’s report 16 - 19
Consolidated statement of financial activities 20
Consolidated balance sheet 21
Statement of cash flows and consolidated statement of cash flows 22
Notes to the financial statements 23 - 43

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15BILLIONEBP (A company limited by guarantee)

Reference and administrative details of the charity, its trustees and advisers for the year ended 31 March 2020 Trustees/Directors Sugathan Sahadevan, Chair Jennifer Wilkins, Vice chair

Charles Belcher* David Forster Robert Hales Gaynor Powley Sundeep Bhandari Simon Clinton Jessie Lenson

(Trustee’s identified by * are also members of the Finance and General Purposes Committee)

Company registered number 02462697 Charity registered number 1000041 Registered office Moorfoot House, Meridian Gate 2[nd] Floor West Wing, 221 Marsh Wall Docklands London E14 9FJ

Key management personnel (in addition to the Trustees):

Senior Managers of 15billion: Company Ian Porter Secretary and Group Chief Executive Shereen El-Shennawy Head of Management Information Systems Deirdre O’Flynn Head of Advice and Guidance Rezaul Hussain Development Manager Independent auditor LB Group Chartered Accountants Statutory Auditor Number one, Vicarage Lane Stratford London, E15 4HF

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15BILLIONEBP (A company limited by guarantee)

Reference and administrative details of the charity, its trustees and advisers for the year ended 31 March 2020

Administrative details (continued)

Bankers

Aldermore Bank 50 St Mary Axe London EC3A 8FR

Virgin Money Jubilee House Gosforth Newcastle Upon Tyne NE3 4PL

CAF Bank Ltd PO Box 289 West Maling ME19 4TA

United Trust 80 Haymarket London SW1Y 4TE

Hodge Bank One Central Square Cardiff CF10 1FS

Lloyds Bank Plc 25 Gresham Street London EC2V 7HN

Redwood Bank Limited The Nexus Building Broadway Letchworth Garden City SG6 3TA

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15BILLIONEBP (A company limited by guarantee)

Directors’ report for the year ended 31 March 2020

The charity trustees (who are also the directors of the charity for the purposes of the company law) are pleased to present their annual directors report together with the consolidated audited financial statements of the charity and its subsidiary for the year ending 31st March 2020 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements comply with Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102)(effective 1 January 2015). Since the company qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director’s Report) Regulations 2013 is not required.

Directors

The names of all directors who served in the year can be found on page 3. The governing body of the charity is the Board of Directors who work in a range of employment sectors including the growth areas within the regeneration area of East London. Directors are also encouraged to link to a specific area of responsibility i.e. Risk Management, Health & Safety, Finance, Human Resources and Safeguarding.

The Chair and Chief Executive, whose roles are to develop and maintain strategic links with business, education and the wider community, identify potential recruits to the Board and ascertain their interest and commitment to the charity. Senior personnel in key organisations who can bring relevant expertise are sought. Potential directors are invited to give a short resume of their career, their reasons for involvement and their intended commitment. They then meet with the Chair and Chief Executive to discuss membership and are invited to attend two Board meetings as observers. At the third meeting if there is mutual agreement, a proposal is made to appoint. Following appointment the new director is invited to meet employees of the charity and its subsidiary to learn more about our work.

New directors receive an information pack including the Memorandum and Articles, statutory accounts, business plan, role description, and Charity Commission and other literature. Directors are required to annually declare any conflicting or potentially conflicting interests. Ongoing training is provided to directors to ensure they are kept up to date with best practice with regard to safeguarding, charity and company law compliance.

Governance

The directors are responsible for the overall management of the charity and its subsidiary and had due regard to guidance on public benefit published by the Charity Commission in exercising their powers and duties. During the year they met formally four times. There is one sub-committee, the Finance and General Purposes Committee. The terms of reference of this sub-committee are to facilitate the greater scrutiny of financial and operational matters leaving the main Board more time to focus on the strategic development of the charity. The subcommittee met a further four times during the financial year. The day to day running of the charity is delegated to the Chief Executive and a senior management team.

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15BILLIONEBP (A company limited by guarantee)

Directors’ report for the year ended 31 March 2020

Risk management

All operational and financial decisions are made against a risk framework comprising a risk policy and a risk register. Identified risks are assessed against a “likelihood and impact” matrix criteria and mapped against systems and procedures designed to mitigate the risk. The result of this process is the quantification of the level of residual risk.

The approach to management is based on the comprehensive risk framework developed in 2018 supported and overseen by volunteers from the Financial Conduct Authority. At the time of the last review it was agreed that loss of reputation remained the risk that had the most potential adverse consequence to the Charity. The directors were of the opinion that short term dips in funding arising from Local Authority service restructuring or uncertainty in relation to European Union Social or Erasmus+ income could be managed by the maintenance of adequate reserves. The following table summarises what were considered to be the most significant risks following a review in 2019.

Risk Management Response
Safeguarding – failure to protect young people,
staff, and volunteers		 Comprehensive
policies
and
procedures
embedded
and
adequately
resourced
compliance monitoring
Adverse publicity following a sensitive data
breach		 Regular review and updating of security
measures
Future income streams threatened by the
schools budget reductions		 Identifying alternative income streams and
maintaining adequate reserves to cover any
income shortfall

Pay Policy for senior staff

The directors consider the Board of Directors, who are the charity’s trustees, and the senior management team in charge of directing and controlling, running and operating the charity on a day to day basis, are the key management personnel of the group. All charitable and subsidiary company directors with the exception of the Group Chief Executive who is a director of the subsidiary company, give their time voluntarily and no charity director received remuneration or expenses in the year. Details of related party transactions are disclosed in note 19 to the accounts.

The pay of the senior management team is reviewed annually against a benchmark of the change in the cost of living, similar roles in other London based charitable organisations of similar size and complexity, together with an overall assessment of future financial outlook for the charity.

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15BILLIONEBP (A company limited by guarantee)

Directors’ report for the year ended 31 March 2020

Investment powers and policy

The directors, having regard to the liquidity requirements of operating the charity, have kept available working capital funds in interest bearing deposit accounts and where practical, seek to reduce exposure to any one bank to the level of protection offered by the Financial Services Compensation Scheme. The invested funds held on short term deposit achieved an average rate of 0.75%.

Objectives and Performance

15billionebp and its subsidiary undertake a wide variety of activities, all of which aim to further its charitable purposes for public benefit.

The objects of the charity remain unchanged and are to advance for the public benefit the education and training of children and young people with particular reference to equipping them for employment and facilitating their obtaining work in industry, commerce and the professions. The objects of its subsidiary, 15billion, are to help support young people achieve their potential and provide services that promote social and economic regeneration. Both objectives are entirely complimentary and both activities promote the upward social mobility of children and young people.

Services are delivered across London.

The objectives of the charity are achieved by:

15billionebp

15billion

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15BILLIONEBP (A company limited by guarantee)

Directors’ report for the year ended 31 March 2020

Our vision

To transform young futures.

Purpose

To be a leading pioneer in innovative careers work that is proven to transform the futures of young people by supporting them to meet the needs of the 21st century employer.

Our Values

Strategic Aims

The charity works to a three year strategic plan covering the period 2017-2020 which we use as a benchmark for our development:

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15BILLIONEBP (A company limited by guarantee)

Directors’ report for the year ended 31 March 2020

Achievements and performance

1. Excellence in pioneering careers work

We continued to make a valuable contribution through our careers guidance activity to helping young people take full advantage of the opportunities open to them at different stages in their school life and make a successful progression from education to employment.

Primary school work

We believe learning about the world of work should start at the beginning of a young person’s journey of learning and continue throughout their academic education.

The charity delivers two programmes aimed at nursery and primary schools. They are entirely complimentary – one is delivered in school time as part of the national curriculum and the other outside of normal school hours.

The Childrens University

Children’s University (CU) is a programme that is aimed at inspiring a lifelong love of learning beyond the classroom. Children’s University provides families with positive extra-curricular activities in a range of inspirational settings.

In 2019/20 we have worked closely alongside 9 primary schools in the London Boroughs of Barking and Dagenham, Newham, Redbridge and Waltham Forest. Since April 2019 we have held five graduation ceremonies celebrating the achievements of over 500 children in front of proud family and friends. Our partnerships have developed and we are delighted to have hosted graduation ceremonies at: University College London, Kensington Primary School, Loughborough University London (supported by the London Legacy Development Corporation) and at City Hall (supported by the London Mayor’s London Curriculum team). These ceremonies have enabled us to promote social mobility by providing opportunities for children and their families to visit inspirational venues that they may not have had access to prior to participating in Children’s University.

Early 2020, we were awarded a contract to deliver an Education Endowment Foundation (EEF) funded project trialing the effectiveness of Children’s University and the importance of extra-curricular activities on education and attainment. Prior to COVID-19 we had successfully began recruitment to the trial and were on target to meet recruitment targets. This project has been put on hold and is due to recommence in the Autumn of 2020. Further expansion of the University was funded by Lendlease. This has enabled pupils of the Britannia Village to engaged with the ‘Nurture’ group to help launch the University in the School.

We have launched ‘CU Online’ with schools, CU Online enables children and their families to record their hours on an online passport as well as their physical passport. Children are able to view what skills they are learning and developing when they participate in a Children’s University validated activity. CU Online also enables schools to receive real-time up to date data on what their children are doing outside of school. COVID-19 has changed the

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15BILLIONEBP (A company limited by guarantee) ~~Directors’ report for the year ended 31 March 2020~~

fundamental way in which Children are able to participate in extra-curricular activities. However, nationally Children’s University has worked closely with learning providers to introduce a greater virtual learning offer.

World of Work Week

The World of Work Programme is a week-long interactive programme that fills the need to raise aspirations and understanding of working life at foundation stages, Key stage 1 & Key stage 2. School’s come off timetable for a week to learn about the working world and how this links to what they are learning in school.

Following an award of £109,416 funding from the Careers and Enterprise Company delivery was expanded by a further 12 schools to make a total of 24 schools involving nearly 15,000 children. We delivered the World of Work programme across 6 London boroughs; Newham, Barking & Dagenham, Waltham Forest, Redbridge, Lambeth and Lewisham. As part of the collaboration with the ACerrers and Enterprise Company a detailed impact analysis using external consultants is being carried out, which we believe will further evidence value of the programme to young people.

Our bespoke, standalone Building Futures programme for year 5 pupils continues to be extremely successful. 19 schools take part this academic year involving over 1,500 year 5 pupils in Newham, Barking & Dagenham, Waltham Forest, Redbridge, Lambeth, Lewisham and Westminster. Pupils become architects for the week and create model buildings to present to construction professionals, they also take part in a trip to a construction workplace to enhance the learning.

Secondary school work

All established secondary schools in the London Borough of Newham purchased a service from us during the year. This is a good indication of the high regard that the service continues to be held and maintains the three way partnership between the Local Authority, the school and ourselves that has proved beneficial in maximising the percentage of young people maintained in learning.

During the year the charity undertook the following activities in furtherance of this strategic aim:

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15BILLIONEBP (A company limited by guarantee)

Directors’ report for the year ended 31 March 2020

Organised and expected to go out but did not go ahead due to COVID-19: Langdon343 and Brampton-326).

In addition, one student was able to benefit from our Extended Work Experience programme. This gives students in Year 10 or above an opportunity to attend a work placement where the student carries out particular tasks or duties, more or less as would an employee, but with an emphasis on the learning aspects of the experience. Students work with a placement provider one or two days a week over a period of time.

The ongoing success of our programmes relies on the continued and expanding contribution from employers. We are pleased to note that during the year we recruited 50 new employers to support our business partnership programmes. In addition 60 companies were identified using our risk assessment model and were “revisited” to ensure Health and Safety standards were adhered to.

During the year 15billion also undertook the following activities in furtherance of delivering this strategic aim:

International Collaboration

To support the strategic aim of pioneering excellence in careers guidance we have continued our role as both lead and participating partner across a number of different European Commission Erasmus+ funded projects.

During the year we have been the lead partner on the “Erasmus Employment Plus” project. This involves collaborating with specialist partner organisations from the Netherlands, Spain, Austria, Poland and Bulgaria and is creating a new curriculum and guidance for practitioners who support people with limited skills and qualifications. Piloting of the first materials to be produced was due to have commenced in March 2020 but was delayed due to the social distancing restrictions introduced as a result of COVID-19. Virtual testing of the materials will now take place over Autumn 2020. Our highly successful collaboration with the Folkuniversitetet University and Uppsala University in Sweden came to a conclusion in the year with the completion of a suite of gender sensitive counselling materials for guidance professionals supporting young refugee and migrant women. Our unique contribution

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15BILLIONEBP (A company limited by guarantee)

~~included consulting with employers in the development of the guidance approach in order to~~ improve employment/education opportunities.

Directors’ report for the year ended 31 March 2020

Finally we have continued to support our Cypriot based lead partner on the “Enter School Mind” project. This has been developing a new curriculum to encourage an “entrepreneurial mindset” in primary school aged young people. We have been able to draw on our extensive knowledge of both the corporate sector and experience of working with primary aged children to provide a unique perspective to the project.

2. Excellence in developing management information that underpins careers work

We continue to provide and enhance the Client Caseload Information System (CCIS) we provide for eight East London Local Authorities together with the City of London Corporation.

CCIS is an important database that is used at a strategic level to plan resource allocation according to need and evaluate the effectiveness of the intervention. At a practitioner level it is used as a caseload management information system to record details of interventions with over 150,000 young people. We deploy a database located on servers housed securely in a state of the art data storage center meeting a national specification that covers the management and administration of the database, the submission of reports to the Department for Education, the production of regular reports and the provision of training to users. Although we contract separately with individual Local Authorities, we maintain a strong sub regional approach through a strategic steering group made up of representatives from each Local Authority. As well as the operational benefits, this approach enables us to pass back to the Local Authorities the benefits arising from the economies of scale.

Over the last year we have continued to support our software providers in the development of the Integrated Youth Support System database, advising on the enhancement of modules and systems functionality, to support the engagement and monitoring of work with young people and service impact. Our service continuously respond to the changing requirements of both our sub-regional authorities and Department for Education initiatives.

The national profile of CCIS continues to hold a firm position due to the dependency on the data recorded for the delivery of national requirements and key returns such the annual Scorecard, Raising the Participation Age and Destination Measures. During Covid19, the continued requirement to capture CCIS data whilst other significant data returns have ceased, gives further highlight to the perceived value of the dataset at both national and local level. We continue to maintain strong relationships with all sub regional authorities, with a focus on customer satisfaction and the intention of ensuring a quality service which authorities want to keep hold of.

In addition to obtaining and delivering CCIS and Youth Service requirements, we have successfully integrated the Work Experience data into a WEX module within the IYSS database. This became fully operational in September 2019 enabling recording against one client record and providing greater insight into the journey of individual young people we deliver services too. This will further support our goal of enhancing services through the use of data and allow for longitudinal reporting of impact against work experience students.

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15BILLIONEBP (A company limited by guarantee)

Directors’ report for the year ended 31 March 2020

Our Impact

The Board consider the measurement and evaluation of impact as a key objective and receive a quarterly impact report covering the full range of our activities.

The combined work of both the charity and its subsidiary has had an important strategic impact in the London Borough of Newham. Measuring the impact of our activities continues to be a focus of our work to improve the outcomes of young people aged 16-19 working in partnership with schools and employers to improve the outcomes for young people. The year 11 activity survey continues to be a key reporting measure. The latest available data being the 2019 activity survey reflects a small increase in learning destinations from 96.8.3% in 2018 to 97.3%. However our detailed of the data identified a material reduction for those young people remaining in learning who had previously attended a Pupil Referral Units. The number of these young people fell from 83.5% in 2018 to just 54% in 2020. This statistical data has been used as evidence to secure additional to identify and work with young people who are most at risk of becoming Not in Education, Employment or Training once they leave school.

As well as measuring our strategic impact we regularly monitor the impact we are having on individual young people. As well as collecting regular case studies for our funders we ask young people what difference we have made. For example, we regularly ask representative samples of young people what they know about their options at the start of the interview, what they need to do to achieve their goals and an opportunity to ask how the interview had helped them. Surveys collected during the year indicated virtually all students reported that the careers interview had helped them and gave a variety of reasons. For example, 75% cited broadening of their understanding of careers and options open to them.

Financial review

The results for the year are as set out in the Statement of Financial Activities and were relatively unaffected by the restrictions imposed as a result of the COVID-19 social distancing restrictions. Group income fell 3.20% to £1,092,000 due to the delay in both the announcement of the outcome of the Mayor’s European Social Fund 2019-23 Programme followed by a delay in completing contract formalities. The Board had previously agreed to retain the experienced staff who had delivered the previous ESF contract to ensure seamless delivery. As a result the delay in contracting adversely affected the outturn for the year, which was a deficit of £(134,000) 2019: £4,000. Funding was received from a variety of sources, the main ones being the Skills Funding Agency, the AMyor of London Young Londoners Fund, the European Commission through its Erasmus+ programme and its Social Fund, Local Authorities and individual schools colleges and businesses. The directors are confident that the total reserves carried forward at the year-end of £858,000 are consistent with its reserves policy.

Reserves policy and going concern

The reserves policy was reviewed during the year as part of the review of the risk identification and management policy of the charity noted above. The detailed review identified the need to maintain sufficient reserves to continue activity for a reasonable period of time should there

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15BILLIONEBP (A company limited by guarantee)

Directors’ report for the year ended 31 March 2020

be an unexpected delay in securing follow on contracts after previous contracts expired. Following the year end, the directors have given further consideration to the potential impact of the economic upheaval as a result of the measures introduced to slow down the spread of COVID-19. Given the unpredictability of the medium term economic impact of social distancing measures and of securing external contracts this translated in practice to maintaining a level of reserves that equated to between four and eight months running costs of the charity and its subsidiary. Excluding the pension asset the group has a level of unrestricted reserves of £750,000 which is within the set band of £565,000 and £1,131,000. The Board has given due consideration to the current level of reserves and therefore consider them at a level appropriate to mitigate some of the current financial risks facing the charity and its subsidiary.

The charity had reserves (including the pension asset) of £858,000 of unrestricted funds. Given the uncertainty surrounding any future re-introduction. The directors anticipate that there will be reduction in school income during the third and fourth quarter of 2021-22 as a result of the safety measures introduced to limit the spread of COVID-19 in the community.. However, the charity is rapidly developing alternative virtual delivery platforms to enable a “blended” delivery model which will be responsive to the anticipated introduction of further social distancing restrictions. Given this development, the retention of existing contracts and the level of unrestricted reserves the directors are of the opinion that the charity and its subsidiary do not face material uncertainties regarding being a going concern.

The group cash-outflow of £173,000 in the year from operating activities reflects the decrease in incoming resources in the year. This is closely monitored and reviewed.

Plans for future periods

The impact of the COVID-19 world pandemic, the “lock-down” of the UK economy and the subsequent partial reopening of parts of the economy has informed all aspects of our planning for the future. We remain committed to developing our Integrated Careers Service Menu of Offer across all age groups reaching primary and secondary schools, colleges and other learning institutions in line with our strategic plan. However, in the short-term this has been over-shadowed by the need to develop a range of work related learning activities that can be delivered virtually so that we can continue to provide young people with “real-work” experiences and help support them gain key employability skills. To this end we are grateful for our Corporate Supporters who have generously supported us in developing these resources that will enable us to deliver a “blended” mixture of delivery over the next 12 months.

As mentioned previously, we have analysed data to show that young people leaving pupil referral units or leaving mainstream school but previously identified as being at risk of becoming NEET (Not in employment, education or training) are statistically less likely to make a successful transition following completion of their statutory education. We believe the outcome for these young people will further deteriorate relative to their peers as a result of school closure over the spring and summer terms. As a result of presenting this evidence we were successful in securing £49,500 emergency catch up funding provided by the Covid-19 Community-Led

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15BILLIONEBP (A company limited by guarantee)

Directors’ report for the year ended 31 March 2020

Organisations Recovery Scheme. We have also identified the need to increase the resource going into the tracking of young at 16. After negotiations followed by a competitive re-tendering exercise we were successful in regaining the London Borough of Newham Education, employment and training tracking contract securing a £105,900 increase over the life of the three year contract.

Despite the need to respond swiftly and effectively to the changing environment that the COVID-19 pandemic has created, we will continue to make strategic investments in new technology that will enhance the delivery of our charitable objectives. We will look at ways to fully exploit the successful integration of the software used to co-ordinate and administer work experience placements with our existing CCIS database in order to measure track the progress of students and measure impact. We are also working collaboratively with the developers of the CCIS software to market other modules of relevance to Local Authorities.

Statement of directors' responsibilities in relation to the financial statements

The directors (who are the trustees of 15billionebp for the purposes of charity law) are responsible for preparing the annual 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 directors to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and the group and the incoming resources and application of resources, including the income and expenditure, of the charitable group for the year. In preparing these financial statements, the directors are required to:

The directors 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 detection and prevention of fraud and other irregularities.

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15BILLIONEBP (A company limited by guarantee)

Directors’ report for the year ended 31 March 2020

Statement as to disclosure to our auditors

The directors have confirmed that, so far as they are aware at the time of approving our annual report:

Preparation of the report

This report of the directors has been prepared taking advantage of the small companies exemption of section 415A of the Companies Act 2006.

This report was approved by the directors on and signed on their behalf by:

Sugathan Sahadevan Director

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15BILLIONEBP (A company limited by guarantee)

Independent auditor’s report to the members of 15billionebp

We have audited the financial statements of 15billionebp (the ‘parent charitable company) and its subsidiary (the ‘group’) for the year ended 31 March 2020 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheet, the Consolidated and Charity Statement of Cash Flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 group and parent charitable company 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

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15BILLIONEBP (A company limited by guarantee)

Independent auditor’s report to the members of 15billionebp

Other information

The trustees are responsible for the other information. The other information comprises the information included in the directors’ 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.

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

In our opinion based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.

We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion:

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15BILLIONEBP (A company limited by guarantee)

Independent auditor’s report to the members of 15billionebp

Responsibilities of trustees

As explained more fully in the directors’ responsibilities statement set out on page 15, the trustees (who are also the directors of the charitable company for the purposes 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 group’s and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

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.

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

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15BILLIONEBP (A company limited by guarantee)

Independent auditor’s report to the members of 15billionebp

Use of our report

This report is made solely to the company’s members, 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 company’s members 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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Richard Lane FCA (Senior Statutory Auditor) For and on behalf of LB Group (Stratford)

Chartered Accountants Statutory Auditor

Number One Vicarage Lane London England E15 4HF

Date: ��������

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15BILLIONEBP (A company limited by guarantee)

Consolidated statement of financial activities
(incorporating income and expenditure account)
for the year ended 31 March 2020		 Consolidated statement of financial activities
(incorporating income and expenditure account)
for the year ended 31 March 2020		 Consolidated statement of financial activities
(incorporating income and expenditure account)
for the year ended 31 March 2020		 Consolidated statement of financial activities
(incorporating income and expenditure account)
for the year ended 31 March 2020		 Total
Funds
2019
£’000
1,605
7



Income:
Note

Income from charitable
activities
4
Investment income
Total income

Expenditure:
Charitable activities
5
Total expenditure

Net income before other
recognised gains and
losses
Re-measurement gain on
defined benefit pension
scheme
Net movement in funds
for the year

Reconciliation of funds
Total funds brought
forward
Total funds carried
forward
12		 Unrestricted
Funds
2020
£’000
1,086
6
1,092
1,226
1,226
(134)
22
(112)
970
858		 Restricted
Funds
2020
£’000
49
-
49
49
49
-
-
-
-
-		 Total
Funds
2020
£’000
1,135
6
1,141
1,275
1,275
(134)
22
(112)
970
858
1,612
1,608
1,608
4
37
41
929
970

The statement of financial activities includes all gains and losses recognised during the year. All income and expenditure derive from continuing activities.

In 2020 £1,092,000 of the income recognised was attributable to unrestricted funds (£49K restricted).

The notes on pages 23 to 43 form part of these financial statements.

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15BILLIONEBP (A company limited by guarantee)

Consolidated and Charity balance sheets as at 31 March 2020

Note


Fixed assets
Tangible assets
9
Current assets
Debtors
10
Cash at bank and in hand


Creditors:amounts falling
due within one year
11
Net current assets
Total assets less current
liabilities
Defined benefit pension
scheme asset
Net assets including
pension scheme asset
16
Funds:
12
Restricted funds
Unrestricted funds:
General funds
Pension reserve
Total unrestricted funds
Total funds		 Group
2020
£’000
30
362
740
1,102
(382)
720
750
108
858
-
750
108
858
858		 Group

2019
£’000
34
443
907
1,350
(497)
853
887
83
970
-
887
83
970
970		 Charity
2020
£’000
30
179
387
566
(269)
297
327
-
327
-
327
-
327
327		 Charity
2019
£’000
33
136
445
581
(258)
323
356
-
356
-
356
-
356
356

The directors have prepared group accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These accounts are prepared in accordance with the special provisions of Part 15 of the Companies relating to small companies and constitute the annual accounts required by the Companies Act 2006.

The financial statements were approved by the directors on and signed on their behalf by: ��������

Sugathan Sahadevan Director Company registration number: 02462697

The notes on pages 23 to 43 form part of these financial statements

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15BILLIONEBP (A company limited by guarantee)

Statement of cash flows and consolidated statement of cash flows For the year ended 31 March 2020

Note



Cash generated (used) in
operating activities
17

Cash flows from investing
activities
Purchase of tangible Fixed Assets
Interest income
Cash provided by investing
activities

Cash flows from financing
activities

Increase (decrease) in cash and
cash equivalents in the year

Cash and cash equivalents at the
beginning of the year
Total cash and cash equivalents
at the end of the year		 Group
2020
£’000
(173)
-
6
6
-
(167)
907
740		 Group
2019
£’000
(264)
(37)
7
(30)
-
(294)
1,201
907		 Charity
2020
£’000
(60)
-
3
3
-
(57)
445
388		 Charity
2019
£’000
(6)
(37)
3
(34)
-
(40)
485
445

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15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2020

1 Accounting policies

1.1 Basis of preparation

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view. The financial statements have been rounded to the nearest £1,000.

15billionebp meets the definition of a public benefit entity under FRS 102.

Assets and liabilities are initially recognised at historic cost or transaction value unless otherwise stated in the relevant accounting policy.

1.2 Basis of consolidation

The consolidated financial statements incorporate those of 15billionebp and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes. All financial statements are made up to 31 March 2020. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances, and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3 Preparation of the accounts on a going concern basis

At the end of the financial year-end under review the UK along with most of the rest of the world entered into a period of economic and social lock-down to slow the spread of the COVID-19 pandemic. Nine months later while schools have re-opened there remains the expectation that the partial relaxing of restrictions will be reversed as the rate of infection begins to increase again running up to autumn and winter.

To a large extent the charity has been shielded from the full impact of the lock-down for the first 6 months. Working closely with schools with whom we have had a relationship lasting many decades, we received payment for cancelled activities during the spring and summer term. We also took advantage of government and local authority support (the furlough scheme and the Covid 19 Discretionary Grant Fund) Ironically, the economic crisis also presented opportunities to bid for new funding targeted to mitigate the worst effects of the school closure for the most vulnerable young people.

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15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2020

1 Accounting policies (continued)

Given the additional income received during the first 6 months of 2020-21, the existing contracts already in place, the development of virtual delivery programmes ready for the Easter term of 2021 that will to some extent offset the loss of income from actual delivery and the level of unrestricted reserves held by the group the financial stability for the 12 months from the date of approval of these financial statements is secure, and on that basis, the charity and its subsidiary do not face material uncertainties regarding being a going concern.

1.4 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the directors in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the directors for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

1.5 Incoming resources

All incoming resources are included in the statement of financial activities when the charity has entitlement to the funds, receipt is more likely than not and the amount can be measured with sufficient reliability.

Income from donations, grants and contract income, including capital grants, is included in incoming resources when these are receivable, except as follows:

1.6 Resources expended and irrecoverable VAT

Expenditure is recognised on an accruals basis, once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure has been included under expense categories that aggregate all costs for allocation to

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15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2020

1 Accounting policies (continued)

activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources (see 1.8 below).

Redundancy and termination payments are recognised when the employee is formally notified that their post is terminated and after no suitable alternative employment has been identified.

Irrecoverable VAT is charged as a cost against the activity for which expenditure was incurred.

1.8 Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include premises, general office costs and governance costs which support the charity’s services. Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements. The bases on which governance and support costs have been allocated are set out in note 6.

1.9 Tangible fixed assets and depreciation

Tangible fixed assets are capitalised if they cost more than £2,500 and are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Office & computer equipment - 25% straight line Fixtures and Fittings - 10% straight line

1.10 Operating leases

Rentals under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term.

1.11 Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.12 Cash at bank and in hand

Cash at bank and in hand includes cash balances and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

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15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2020

1 Accounting policies (continued)

1.13 Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in a transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

1.14 Financial instruments

The charity and group only hold basic financial instruments. The financial assets of the charity/group which are held at amortised cost are as follows:

The financial liabilities of the charity/group which are held at amortised cost are as follows:

Cash is valued at face value and pension liabilities are valued at fair value in accordance with note 16.

1.15 Foreign currency translation

The subsidiary receives payments and pays partners for some projects in Euros. Such currency transactions are recorded at the exchange rate ruling on the date of transaction. At the year-end Euro monetary balances are re-translated at the rate prevailing at that date. Exchange gains and losses are recognised in the Statement of Financial Activities.

1.16 Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and meets the definition of a charitable company for UK corporation tax purposes. It therefore does not suffer tax on income or gains applied to charitable purposes.

In so far as the subsidiary is funded from grants from Local Authorities and European Social Funds no liability to Corporation Tax arises on grant funds. Interest receivable generated on grant funds placed on short term deposit is redeployed to the delivery of the principal activities and no liability to tax is expected to arise.

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15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2020

1 Accounting policies (continued)

1.17 Employee Benefits

The group operate defined contribution plans for their employees and following autoenrolment the schemes are open to all employees. A defined contribution plan is a pension plan under which the group pay fixed contributions into a separate entity. Once the contributions have been paid the group have no further payment obligations. The pension contributions are allocated to expenditure in accordance with the employee salary to which they relate. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the group entities in independently administered funds.

The subsidiary company also operates a defined benefit pension scheme for certain of its existing employees. The scheme is closed to new members. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.

The liability recognised in the balance sheet in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the balance sheet date less the fair value of plan assets at the balance sheet date (if any) out of which the obligations are to be settled. The defined benefit obligation is calculated using the projected unit credit method. Annually the company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate').

The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and in accordance with the Company's policy for similarly held assets. This includes the use of appropriate valuation techniques.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to the statement of financial activities. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'.

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15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2020

1 Accounting policies (continued)

1.17 Employee Benefits (continued)

The cost of the defined benefit plan, recognised in the statement of financial activities as employee costs, except where included in the cost of an asset, comprises:

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognized in the statement of financial activities as a 'finance expense'.

2 Company status

The charity is a company limited by guarantee and has no share capital. It has 9 members (2019 – 9). 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.

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15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2020

3 Financial performance of the charity

The consolidated statement of financial activities includes the results of the charity’s wholly owned subsidiary. The summary financial performance of the charity alone is:


Income
Expenditure on charitable activities
Net (Loss)

Total funds brought forward
Total funds carried forward

Represented by:
Restricted income funds
Unrestricted income funds
Total funds		 2020
£’000
498
527
(29)
356
327
-
327
327		 2019
£’000
391
445
(54)
410
356
-
356
356

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15BILLIONEBP

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2020

4 Incoming resources from charitable activities - analysis by activity

Activities relating to
charity
Work related learning
Work experience
placements brokered
Sub total

Activities relating to
subsidiary
European Development
programme
Employability
programmes
Information Advice and
Guidance
Management Information
Systems
Sub total
Total		 Unrestricted

Funds
£’000
304
191
495
-
38
198
355
591
1,086		 Restricted
Funds

£’000
-
-
-
49
-
-
-
49
49		 2020
£’000
304
191
495
49
38
198
355
640
1,135		 2019
£’000
209
182
391
235
420
188
371
1,214
1,605

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15BILLIONEBP

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2020

5 Expenditure by charitable activity – summary by activity

Charity activities:
Work related learning
Work experience placements
brokered

Sub total

Subsidiary activities:
European development
Employability programmes
Information Advice and Guidance
Information Management
Systems
Sub total
Total		 Staff
costs

£’000
263
159
422
7
6
279
253
545
967		 Direct
costs
£’000
54
31
85
42
-
31
105
178
263		 Support
Costs
£’000
12
8
20
-
-
11
14
25
45		 2020
£’000
329
198
527
49
6
321
372
748
1,275		 2019
£’000
237
208
445
216
279
320
348
1,163
1,608

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15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2020

6 Analysis of support costs

Premises Costs
General Office
Legal and other
professional
fees
Auditors’
remuneration
Salaries and
wages
Total		 General
Support
£’000
13
8
-
-
-
21		 Governance
Function
£’000
-
1
-
14
9
24		 2020
Total
£’000
13
9
-
14
8
45		 2019
Total
Basis of
apportionment
£’000
12
Weighted average
of turnover &
headcount
13
Weighted average
of turnover &
headcount
9 Governance
14 Governance
8 Governance
56

7 Net incoming / (outgoing) resources

This is stated after charging:

2020 2019
£’000
 £’000
Depreciation of tangible fixed assets:
- Owned by the charitable group 4 4
Auditors’ remuneration 14 14
Pension costs 90 88

8 Staff costs

Staff costs were as follows:


Wages and salaries
Social security costs
Other pension costs		 2020
£’000
822
76
90
988		 2019
£’000
856
80
88
1,024

Included within staff salaries are staff redundancy costs relating to 15billionebp of £11,700 (2019 - £11,658)

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15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2020

8 Staff costs (continued)

The average monthly number of employees during the year was as follows:

Chief Executive
Finance and contracts
Work related learning team
Work experience team
15billion – Service delivery
15billion – Support and administration		 2020
No.
1
1
9
5
8
3
27		 2019
No.
1
1
8
3
9
3
25

The number of higher paid employees was:

2020 2019
No. No.
In the band £70,001 - £80,000 1 1

17 employees (2019: 10) were directly employed by 15billionebp.

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15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2020

8 Staff costs (continued)

The charity directors, who are also the directors of its wholly owned subsidiary 15billion, were not paid a salary and did not receive any other benefits from either the charity or its subsidiary in the year (2019 – £NIL) neither were they reimbursed expenses during the year (2019 - £NIL). No director received payment for professional or other services supplied to the charity (2019 - £NIL).

The key management personnel of the group comprise those of the charity and the key management personnel of its subsidiary.

The key management personnel of the parent charity, 15billionebp, comprises the charity directors. The total employee benefits of the key management personnel of the charity were £NIL (2019: £NIL), including employer’s national insurance contributions.

The key management personnel of 15billion are the Group Chief Executive, Development Manager, Head of Management Information Systems and Head of Advice and Guidance, whose employee benefits together total £266,061 (2019: £252,611) including employer’s national insurance contributions. The employee benefits of key management personnel for the group were therefore £266,061 (2019: £252,611)

The Group Chief Executive, who is a director of 15billion but not a trustee or director for 15billionebp received remuneration (excluding employer’s national insurance contributions) in the year of £86,700 (2019 - £85,118). During the year retirement benefits were accruing to one director (2019 – 1) in respect of a defined contribution pension scheme.

9 Tangible fixed assets

Furniture, Fittings and Equipment
£’000
Group
Cost
At 1 April 2019 49
Additions -
Disposals -
At 31 March 2020 49
Depreciation
At 1 April 2019 15
Written back on disposal -
Charge for the year 4
At 31 March 2020 19
Net book value
At 31 March 2020 30
At 31 March 2019 34

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15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2020

9 Tangible fixed assets (continued)

ngible fixed assets (continued)
Furniture, Fittings and Equipment
£’000
Charity
Cost
At 1 April 2019 37
Additions -
31 March 2020 37
Depreciation
At 1 April 2019 4
Charge for the year 4
At 31 March 2020 8
Net book value
At 31 March 2020 29
At 31 March 2019 33

10 Debtors

Prepayments and accrued income
Other Debtors
Grants and contracts		 Group
2020
2019
£’000
£’000
190
313
15
15
157
115
362
443		 Charity
2020
2019
£’000
£’000
91
93
15
15
73
28
179
136		 Charity
2020
2019
£’000
£’000
91
93
15
15
73
28
179
136
136

11 Creditors

Trade creditors
Other taxation and social security
Other creditors
Amount due to subsidiary
Accruals and deferred income		 Group
2020
2019
£’000
£’000
1
18
73
60
2
2
-
-
305
417
381
497		 Charity
2020
2019
£’000
£’000
1
1
23
20
2
2
66
99
177
136
269
258		 Charity
2020
2019
£’000
£’000
1
1
23
20
2
2
66
99
177
136
269
258
258

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15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2020

11 Creditors (continued)

Deferred income (Included within Accruals and deferred income
above)
Deferred income at 1 April 2019
Amounts released from previous years
Amount deferred in the year
Deferred income at 31 March 2020
Deferred income (Included within Accruals and deferred income
above)
Trade creditors
Deferred income at 1 April 2018
Amounts released from previous years
Amount deferred in the year
Deferred income at 31 March 2019		 Group
£’000
209
(209)
187
187
Group
£’000
390
(390)
271
271		 Charity
£’000
73
(73)
105
105
Charity
£’000
51
(51)
87
87

Deferred income comprises grant and contract sums received in the year to the extent that the funder has specified they must be used in future periods or are time-apportioned where they relate to services provided over a period spanning the year end.

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15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2020

12 Analysis of funds
Brought
Forward
£’000
Analysis of
movement
in
unrestricted
funds
Designated
funds
Fixed assets
fund
34
34
General
funds
Charity’s
general fund
321
Subsidiary’s
reserves
(excluding
fixed assets)
532
Pension
reserve
(subsidiary)
83
936
Total
unrestricted
funds
970
Analysis of
movement in
restricted
funds
-
Total
restricted
funds
-
Total of
funds
970		 Incoming
Resources
£’000
-
-
498
640
3
1,141
1,141

-
-
1,141		 Resources
Expended
£’000
(4)
(4)
(523)
(699)
-
(1,222)
(1,226)
(49)
(49)
(1,275)		 (Losses)/
Gains
£’000
-
-
-
-
22
22
22

-
-
22		 Transfers
between
funds
£'000
-
-
-
(49)
-
(49)
(49)

49
49
-		 Carried
Forward
£’000
30
30
296
424
108
828
858
-
-
858

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15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2020

12 Analysis of funds (continued)

Designated Funds

The fixed asset fund represents the net book value of fixed assets.

Restricted Funds (subsidiary)

Restricted funds represent funds received from the European Commission for the delivery of the Erasmus+ education development programmes.

13 Analysis of net assets between funds

Fixed assets
Net current assets
Debtors due in more
than one year
Fixed assets
Net current assets
Debtors due in more
than one year		 Unrestricted
funds
£’000

-
750
108
858
Unrestricted
funds
£’000

-
887
83
970		 2020
£’000
-
750
108
858
2019
£’000
-
887
83
970		 2019
£’000
-
887
83
970
2018
£’000
-
878
51
929

14 Operating lease commitments

The company had annual total commitments under non cancellable operating leases as detailed below:

Group
Expiry date:
Within 1 year
Between 2 and 5 years
In over 5 years
Charity
Expiry date:
Within 1 year
Between 2 and 5 years
In over 5 years		 Land and buildings
2020
£’000
2019
£’000
72
72
216
288
288
288
72
72
216
288
288
288		 Other
2020
£’000
2019
£’000
-
-
-
-
-
-
-
-

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15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2020

15 Subsidiary

15billionebp is the sole guaranteeing member of 15billion, a company limited by guarantee and registered in England and Wales, (company number 04301654) which was incorporated on 9 October 2001.

The principal activities of 15billion during the year remained the delivery of young people’s support and ancillary services directly and in partnership with other statutory, private and third sector organisations.

Company name Country Sole Member
15billion England and Wales 15billionebp

The results and year end balance sheet of 15billion were as follows:

Turnover
Cost of sales
Gross (loss)/profit
Administrative expenses
Operating profit for the year
Interest receivable and similar income
Other finance income
Taxation
(Loss)/Profit for the year
Actuarial gain/ (loss) related to pension scheme
Total recognised gains relating to the year
Tangible fixed assets
Current assets
Current liabilities
Defined benefit pension scheme asset
Net assets
Profit and loss account
Capital and reserves carried forward		 2020
£’000
639
(722)
(83)
(25)
(108)
2
-
-
(106)
22
(84)
2020
£’000
-
601
(178)
108
531
2020
£’000
531
531		 2019
£’000
1,217
(1,127)
90
(36)
54
4
-
-
58
37
95
2019
£’000
1
869
(338)
83
615
2019
£’000
615
615

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15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2020

16 Pension commitments

Defined contribution pension schemes

Staff who are directly employed by the charity were eligible to join a stakeholder pension scheme. This scheme was available to all staff until April 2014. Staff in this scheme contribute a minimum of 5% of their gross salary and the assets of the scheme are held separately from those of the company in an independently administered fund with Friends Provident.

A personal defined contribution pension scheme was available to staff employed by the subsidiary up until April 2014. Staff in this scheme contribute a minimum of 3% of their gross salary and the assets of the scheme are held separately from those of the company in an independently administered fund with Legal & General.

From April 2014 15billion, and from April 2015 the charity, introduced a group auto enrolment scheme for the remaining staff not in an existing pension scheme and for all new staff. Staff contribute a minimum of 5% of their gross salary and the assets of the scheme are held separately from those of the company in an independently administered fund with Legal & General.

The pension cost charge represents contributions to all funds and amounts to £42,154 (2019 - £43,484). At the year-end there were outstanding contributions of £10,239 (2019 - £4,978).

Defined benefit pension schemes

In the charity, staff jointly employed by the London Borough of Newham are included in the London Borough of Newham pension scheme for the proportion of their salary paid for by the Borough, which is a defined benefit scheme. The payments made to London Borough of Newham in respect of staff costs include the employer's pension scheme contribution. The charity’s liability is limited to the amount of that contribution which was £NIL (2019 - £NIL). Staff employed directly by London Borough of Newham are also part of the same defined benefit pension scheme. The contribution this year for these staff members was £5,661 (2019 - £6,429). There were no amounts outstanding at the year end.(2019 -£NIL). In both cases, the actuarial pension liability remains with the London Borough of Newham.

15billion operates a defined benefit pension scheme, which is based on final pensionable pay. The assets of the scheme are held separately from those of the company, being invested in a multi-company scheme. The defined benefit pension scheme is closed to new members and is only for staff transferred to 15billion in August 2008 as part of their terms and conditions of service under the Transfer of Undertaking Protection of Employment rights regulations.

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15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2020

16 Pension commitments (continued)

The contributions are determined by a qualified actuary on the basis of triennial valuations using the projected unit method. The most recent valuation was at 31[st] March 2018, which has been updated to reflect conditions at the balance sheet date. The assumptions that have the most significant effect on the results of the valuation are those relating to the rate of increase in salaries and pensions. It was assumed that salary increases would average 1.90% per year and that present and future pensions would increase at the rate of 2.3% per year.

The agreed contribution rate for future years is 33.1% for employer and 6% for employees.

The principal actuarial assumptions used by the actuary were:

31 March 2020 31 March 2020
% %
Inflation (Retail Price Index)
2.80		 3.45
Inflation (Consumer Price Index) 1.90 2.45
Rate of general increase in salaries 1.90 2.45
Discount rate for scheme liabilities 2.30 2.40

Longevity assumptions as at 31 March 2020:

Base table Bespoke longevity tables provided by Club
valuation of the Section as		 Bespoke longevity tables provided by Club
valuation of the Section as		 Vita for the formal
at 31 March 2018
Future Improvements Increase in longevity improvements have been assumed to tail off
over the next 10-20 years and over the long term will stabilize at
1.5% per year for males and females
Life expectancies Male Female
Retiring today 21.2 23.9
Retiring in 20 years 24.3 27.3
Balance Sheet position
Assets Fund value Fund value
at 31 March at 31 March
2020 2019
£’000 £’000
Equity securities 29 29
Diversified Growth & Hedge Funds 87
162
Debt securities – Corporate - 81
Debt securities – Government - 200
Cash and cash equivalents 193 163
Insurance linked securities 44 -
LDI 173 -
Multi asset credit funds 125 -
Total value of assets 651 635
Actuarial value of (liabilities) (543) (552)
Surplus of funded plan liabilities and net pension asset
108		 83

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15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2020

16 Pension commitments (continued)
Analysis of amount charged to operating profit
Current service cost
Administration cost
Loss on settlement
Total operating charge
Analysis of amount credited to other finance income
Interest income on Plan assets
(Interest) on Plan liabilities
Net interest on net defined benefit asset
Total amount charged to income and expenditure account
(total operating charge less net interest)
Analysis of amount recognised in Other
Comprehensive income (OCI)
Annual return on assets excluding amounts included in net
assets
Actuarial gain / (loss) on Plan obligations
Remeasurement (loss) in Plan recognised in the OCI
Reconciliation of Plan benefit obligation:
At 1 April 2019
Current Service cost
Administration costs
Interest cost
Contributions by plan participants
Actuarial losses (gains)
Liabilities (extinguished) on settlement due to bulk transfer
Benefits (paid)
At 31 March 2020
Reconciliation of fair value of Plan assets:
At 1 April 2019
Interest Income
Contributions by plan participants
Contributions by the employer
Actual return on assets excluding amount included in net
interest
Assets distributed on settlement due to bulk transfer
Benefits paid out
At 31 March 2020		 2020
£’000
23
18
-
41
2020
£’000
15
(13)
2
39
2020
£’000
(22)
44
22
2020
£’000
552
23
18
13
4
(44)
-
(23)
543
2020
£’000
635
15
4

42
(22)
-
(23)
651		 2019
£’000
26
18
-
44
2019
£’000
15
(13)
2
42
2019
£’000
24
13
37
2019
£’000
524
26
17
15
5
(13)
-
(22)
552
2019
£’000
575
14
5
39
24
-
(22)
635

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15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2020

16 Pension commitments (continued)

ension commitments (continued)
Actuarial value of liabilities
Sensitivity Analysis
Changes in assumptions compared with 31 March
2019 actuarial assumptions:		 at 2020
£’000
0.5% decrease in discount rate 589
1 year increase in member life expectation 565

17 Reconciliation of net movement in funds to net cash flow from operating activities

Net movement in funds
Add back depreciation charge
(Increase)/Decrease on defined
pension scheme
Less interest income shown in investing
activities
Decrease (Increase) in debtors
(Decrease) Increase in creditors
Cash flow from operating activities		 Group
2020
£’000
(112)
4
(25)
(6)
81
(115)
(173)		 Group
2019
£’000

45
4
(37)
(7)
(232)
(38)
(265)		 Charity
2020
£’000
(29)
4
-
(3)
(43)
11
(60)		 Charity
2019
£’000
(54)
4
-
(3)
(25)
72
(6)

18 Related party transactions

From time to time some organisations for which board members work give grants and donations to the charity to support the funding of the services of the charity. These arrangements are considered to be conducted on an 'at arm's length basis' and in no case does the relevant director have any financial interest in the funding provided (2019 – none).

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