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2023-08-31-accounts

Registered number: 02462697 Charity number: 1000041

15billionebp (trading as Inspire) (A company limited by guarantee)

Directors’ Report and Financial Statements For the year ended 31 August 2023

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15BILLIONEBP (A company limited by guarantee)

Contents

Page
Reference and administrative details of the charity, 1 - 5
its trustees and advisers
Directors’ report 6 - 18
Independent auditor’s report 19 - 23
Consolidated statement of financial activities 24
Consolidated balance sheet 25
Statement of cash flows and consolidated statement of cash flows 26
Notes to the financial statements 27 - 53

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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 August 2023 Trustees/Directors Sugathan Sahadevan, Chair Jennifer Wilkins, Vice chair Charles Belcher* Robert Hales Sundeep Bhandari Simon Clinton Larisa Budaeva Kishen Gajjar James Jennings Simon Piesse Zenab Mumtaz Richard Stephens (Trustee’s identified by * are also members of the Finance and General Purposes Committee)

Company registered number 02462697 Charity registered number 1000041 Registered office 34-38 Dalston Lane London England E8 3AZ Company secretary Ian Porter

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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 August 2023

Key management personnel (in addition to the Trustees):

Senior Managers of 15billionebp:

Ian Porter Shereen El-Shennawy Hannah Groves Rezaul Hussain

Company Secretary and Group Chief Executive Deputy Chief Executive Operations Director (Resigned August 2023) Business & Partnerships Development Director

Independent auditor

LB Group (Stratford) 1, Vicarage Lane Stratford London, E15 4HF

Bankers

Aldermore Bank 50 St Mary Axe London EC3A 8FR Virgin Money Jubilee House Gosforth Newcastle Upon Tyne NE3 4PL

United Trust 80 Haymarket London SW1Y 4TE

Hodge Bank One Central Square Cardiff CF10 1FS

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Reference and administrative details of the charity, its trustees and advisers for the year 31 August 2023

Administrative details continued.

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 August 2023

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 subsidiaries for the year ending 31st August 2023 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 Group 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 Group 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 subsidiaries 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 about safeguarding, charity and company law compliance.

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15BILLIONEBP (A company limited by guarantee)

Directors’ report for the year ended 31 August 2023

Governance

The directors are responsible for the overall management of the charity and its subsidiaries 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 4 times. The Finance and General Purposes Committee also met 4 times to which all directors as well as committee members were invited to attend.

The day to day running of the charity is delegated to the Group Chief Executive and a senior leadership team.

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 either transfer or mitigate the risk. The result of this process is the quantification of the level of residual risk.

Our approach to management is based on the comprehensive risk framework originally developed in partnership with skilled volunteers from the Financial Conduct Authority. During the year under review the risk register was regularly reviewed by Trustees and senior staff as they integrated the new subsidiary into the group while responding to the ongoing consequences of the Coronavirus pandemic including re-building stake-holder relationships that had been damaged. However, consistent across all decision making is the understanding that a loss of reputation remained as the underlying risk facing the charity. The following table summarises what were considered to be the most significant risks at 31[st] August 2023.

Risk Management Response
Resources allocated to integrating staffing, IT
systems, processes and procedures following
the merger with its subsidiary would divert
attention to external stakeholder relationships.		 Separate trustee start and finish committees
established
to
over
see
progress
Merger implementation plan established
Integration
of
departments
across
both
organisations phased
Safeguarding – failure to protect young people,
staff, and volunteers resulting in adverse
publicity and a loss of reputation.		 Comprehensive
policies
and
procedures
embedded
and
adequately
resourced
compliance monitoring
Annual external review of safeguarding policies
to ensure compliance with best practice
Regular updates for all staff
Adverse publicity following a sensitive data
breach		 Regular review and updating of data security
measures.
Future income streams threatened by schools
budget reductions and reduction is Corporate
Social
Responsibility
funding
targeting
increasing social mobility.		 Identifying alternative income streams and seek
to maintain adequate reserves to cover any
income shortfall
Short
term:
seek
alternative
funding
opportunities, explore other government support
Medium term: maintain communication with

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schools, employers and other funding agencies to be in a strong position to restart activity as confidence returns

Pay Policy for senior staff

The directors consider the Board of Directors, who are the charity’s trustees, and the senior leadership 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, except for the Group Chief Executive who is a director of a subsidiary company, give their time voluntarily and no charity director received remuneration or expenses in the year.

The pay of the senior leadership 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.

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 2.0%.

Objectives and Performance

15billionebp and its subsidiaries 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 subsidiaries, 15billion and the New Hackney Education Business Partnership, 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.

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15BILLIONEBP (A company limited by guarantee)

Directors’ report for the year ended 31 August 2023

The objectives of the charity are achieved by:

15billionebp and New Hackney Education Business Partnership

15billion, in addition to the above undertakes:

Following the merger of 15billionebp and the New Hackney Education Business Partnership, in December 2022 Trustees from both charities together with the Senior Leadership Team came together to formulate a 3 year strategic plan for the combined entity:

Our vision

All young people have access to the opportunities and inspiration they need to achieve their potential.

Mission

We “inspire” children and young people across London and beyond, using data to understand the barriers they face and connecting them with a range of employers and opportunities to open doors to their success.

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15BILLIONEBP (A company limited by guarantee)

Directors’ report for the year ended 31 August 2023

Guiding Principles

Strategic Aims

Always sticking to those guiding principles five new strategic aims were identified:

Achievements and performance

We report our achievements against our previous strategic aims, which was the objectives we worked too during the year under review.

  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.

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15BILLIONEBP (A company limited by guarantee)

Directors’ report for the year ended 31 August 2023

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 year of academic education and beyond.

During the year, Inspire ran four Primary Schools programmes:

 World of Work: a week-long programme introducing all pupils in a primary school to the world of work through themed lesson plans and high-quality interactions with business volunteers during workplace visits and in-school workshops.

 Full STEAM Ahead: sponsored by UBS, 12 schools take part in a series of STEM (Science, Technology, Engineering and Maths) activities and compete to get to the semi-final and final hosted at UBS’s offices and supported by UBS STEM volunteers.

 Children’s University: a year-long programme designed to encourage a love of learning in children, encouraging and celebrating participation in extra-curricular activities in and outside of schools.

 Reading Partners: a year-long programme where a business is partnered with a school. Business volunteers are paired with a child mentee who they visit weekly to read with them, building their confidence not only in reading but in social interactions.

The number of Schools we worked with over the year were:

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15BILLIONEBP (A company limited by guarantee)

Directors’ report for the year ended 31 August 2023

Secondary school work

While delivery in secondary schools continued to be disrupted for part of the year we remained in contact with all the established schools in the London Borough of Newham. In so doing we were able to preserve the three way partnership between the Local Authority, the school and ourselves that in previous years has proved so beneficial in maximising the percentage of young people who remain in learning.

Work related Learning

Our work-related programmes with Secondary Schools have allowed over 6,500 young people in five London Boroughs to have meaningful encounters with employers, build their skills and learn more about different career and education pathways.

Over the year we have refined and merged our programmes. For example, “You’re Hired” in Hackney, Camden, and Islington and the BOSS/Aspirations Day in Newham. We successfully completed the Greater London Authority / European Social funded “Local Futures Careers Cluster programme”. This programme supported 12 schools and colleges across Newham and Barking and Dagenham with original sector specific careers pilots, funded work placements and strategic careers support. Other notable achievements included:

Volunteers play a crucial role in supporting young people to learn about the workplace and the opportunities that exist. Young people meet volunteers at their schools and when they visit the diverse workplaces across London. They can encounter new work-related experiences from law firms to lifeboats, from precious metals to textile design and from aviation to quantum computers.

Work Related learning supporting young people who have additional learning needs

Since the pandemic, our Additional Needs programmes are becoming more and more necessary to support young people who may not access work related learning in the same way as their mainstream counterparts.

We delivered the following programmes to support these young people:

 Supported Work Experience: a series of preparation workshops delivered by Inspire, inschool, to prepare young people to go out on work experience. These are followed by a series of days on work experience, often shorter days and spread across a number of weeks to make the experience more accessible.

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Directors’ report for the year ended 31 August 2023

 Workplace Visits: small groups of students visit a workplace where they take part in tailored, interactive activities and meet business volunteers who introduce their industry and job roles.

 NatWest funded “CareerSense Find Your Path”: this programme targets young people aged 16-24 who are NEET (Not in Employment, Education or Training). It comprises of a series of preparation workshops delivered by Inspire including CV writing, interview skills and job application help. The workshops are followed by 4 weeks of paid work experience at NatWest. The young people are also supported by a mentor at NatWest. Inspire supports the matching of mentors and job placements with the young people on the programme.

 Mentoring: a business is partnered with a school and business volunteers are paired with a student mentee who they meet with regularly during workplace visits. Sessions involve targeted work on developing transferable skills including confidence, communication and teamwork.

Our Additional Needs work in numbers:

Work Experience:

Delivery in the 2022/23 academic year increased on the previous year, rising from approximately 3,800 1-2 week block placements co-ordinated across the combined team to now 5,174 (of which 3,120 were in Newham and 2,054 were in Hackney). The vast majority of that growth has happened within the traditional ‘Inspire’ area, and has been an amazing achievement with placements increasing from approximately 800 one week placements in the 2021-22 academic year to 2054 in 2022-23.

As well as the traditional WEX programme, the team have also organised 14 Extended WEX placements across 3 schools, for students who either have SEND, SEMH or behavioural difficulties and this has enabled them to gain some vital social and employability skills, as well as practical vocational skills that they are able to utilise in their career paths going forwards.

To meet the phenomenal increase in demand, additional resource was engaged to support employer engagement. This was particularly important to re-build the database of participating employers that had been neglected as a result of furloughing staff during the Covid 19 restrictions.

As part of the employer engagement strategy the team also completed over 400 pre placement checks over the course of the year to ensure that all providers were offering a suitable, safe and quality work experience placement for the young people.

Number of young people engaged: 5,174 Number of schools supported: 40

Delivery area: Newham, Hackney, Camden, Islington, Haringey and Tower Hamlets.

Information Advice and Guidance(IAG)

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Directors’ report for the year ended 31 August 2023

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. Information Advice and Guidance(IAG)

Our IAG service provides 1-2-1 careers guidance interviews within schools, working closely with them to target potential students who are judged to be at risk of leaving school and becoming NEET (Not in education, employment or training). We work in close partnership with colleagues from the London Borough of Newham advising them about these young people we have identified through our school work and those identified during tracking activities, enabling support to be provided at the earliest opportunity.

We are pleased to be able to report that all the schools who contracted with us in the 20212022 academic year continued to contract with us for the 2022-2023 academic year. This is a positive reflection on the work of our careers advisers.

During this period, we delivered over 2,100 careers interviews to young people in Newham, Waltham Forest and Hackney schools, supporting them in making their post 16 decisions and developing their career plans.

We have invested in developing our own qualified work-force. Our two level 6 apprentices appointed in September 2020 successfully completed their level 6 apprenticeship in Careers Guidance. Following qualification one continued working with us while the second left to take a careers guidance role working with adults and thereby still serving the needs of the local community.

Student interview feedback continues to inform our practice, with students commenting positively on various aspects ranging from understanding post-16 qualifications, understanding qualifications needed for different careers and being clear about what they need to do next.

2. Excellence in developing management information that underpins careers work

The Management Information Team (MI) continued to provide and enhance the Client Caseload Information System (CCIS) to eight East London Local Authorities together with the City of London Corporation. Our service extends past the statutory collection and return of young people’s progression data to modules which support the delivery of Local Authority Youth Services and our in-house Work Experience Team. The CCIS database is hosted, deployed, managed and administered to over 200 users across various local authority services.

The MI Team service enables local authorities to meet their statutory National CCIS requirements and includes the management and administration of the database, the submission of reports to the Department for Education, the production of regular comprehensive reports and the provision of training to users. Although we contract

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Directors’ report for the year ended 31 August 2023

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 provide Local Authorities with the benefits arising from economies of scale.

CCIS is an important database that is used at a strategic level to understand the demographics and needs of young people, whilst also enabling Local Authorities and other services to plan resource allocation and evaluate the effectiveness of interventions on young

people’s outcomes. At a practitioner level it is used as a caseload management information system to record details of interventions and the individual needs of over 150,000 young people.

Over the year we have:

The national profile of CCIS continues to hold a firm position due partly to the dependency on the data recorded for the delivery of national requirements and key returns such the annual Scorecard and Raising the Participation Age. This year specific focus has been given to the monitoring of vulnerable characteristics and the outcomes of young people within these groups, which will be published nationally as part of the annual Local Authority Scorecard.

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 subsidiaries working in partnership with the other key stakeholders has had an important strategic impact in the London Borough of Newham. Measuring the impact of our activities continues to be the focus of our work to improve the outcomes of young people aged 16-19. The year 11 activity survey continues to be a key

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Directors’ report for the year ended 31 August 2023

reporting measure. As reported previously, the Year 11 Annual Activity Survey is an important measure in reporting on the destination of young people as of the 1[st] of November following completion of year 11. Young people’s progression to positive destinations has remained stable at 97.5% in 2023 the same figure as reported in 2022. Our work supports these outcomes through not only directly through our IAG and tracking contracts but all of our wider charitable activities.

Financial review

The results for the year are as set out in the Statement of Financial Activities.

Several of our key programmes including the ESF/GLA funded Careers cluster that had been reprofiled from the previous year due to the disruption caused by the COVID pandemic continued to be delivered throughout the year. However, the primary focus during the year under review was the implementation of the new post-merger 3 year strategic plan. One of the key aspects of this was to integrate post-merger the three operational departments of the combined entity.

The financial result for the year was a deficit of £(174,000) 2022: £(143,000). Funding was received from a variety of sources, the main ones being the Skills Funding Agency, the Mayor of London Young Londoners Fund, Local Authorities, trusts and foundations and individual schools colleges and businesses. The directors recognise total reserves carried forward at the year-end of £293,000 are less than the lower band set in the reserves policy and are actively reviewing both funding options and operational efficiencies to address this shortfall.

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 and as a direct result of the merger with the New Hackney Education Business Partnership. The review identified in the medium term the need to maintain sufficient reserves to continue activity for a reasonable period of time should there be an unexpected delay in securing follow on contracts after contracts expired. However, it was also acknowledged that in the short term the merger would have an adverse effect on reserves given the net negative position of the New Hackney Education Balance Sheet at the point of merger and the time and resources required to integrate the new subsidiary.

Following the year end, the directors have given consideration to the potential impact of the economic uncertainty in the economy caused by the “cost of living crisis”, the historically high interest rates and continued increasing pressure on school budgets. Given the unpredictability of the medium-term economic outlook and of securing external contracts they believe this still translates in practice to maintaining a level of reserves that equates to between four and eight months running costs of the charity and its subsidiaries. Excluding the pension asset the group has a level of unrestricted reserves of £240,000 which is lower than the set band lower level of £727,000. They are now actively pursuing a strategy to rebuild the reserves.

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Directors’ report for the year ended 31 August 2023

The charity had reserves (including the pension asset) of £293,000 of unrestricted funds.

The merger with the New Hackney Education Business Partnership has given us access to a wider range of corporate supporters. Given the retention of existing contracts, the level of unrestricted reserves and the securing of new income in 2023/24 the directors are of the opinion that the charity and its subsidiaries do not face material uncertainties regarding being a going concern.

Plans for future years

We will continue to develop and promote our “Inspire” brand. We are excited by the quality of assets being developed through the pro-bono support of WHM&I and plan to launch a brand new website in the Spring of 2024.

As previously reported, through the merger we were able to create a new senior post dedicated to Partnership Development, essential as funding for our services becomes ever more difficult to source. We will seek to recruit to a second development post in 2024 to further strengthen this vital area of work.

However, we are conscious that re-branding and income development resource must work in tandem with ensuring we continue to deliver high-quality profitable programmes. To that end, we will continue to consult with our partner schools and corporate supporters to rationalise our menu of offers taking the best from the previous 15billionebp and the New Hackney Education Business Partnership. We will also upskill front-line delivery teams through a series of “lunch and learn” training events starting in Spring 2024 to better equip them to cross-sell our updated menu of offers to schools.

As always, we continue to identify ways to increase our back office efficiency and reduce costs. We expect to conclude the rollout of our IT strategy by the end of 2023. At this point, our core Management Information CCIS database will be hosted by a third party and staff will access all office-based IT applications through the cloud. This will increase the reliability of the system, reduce risk, and in the medium and long term reduce the operational support cost of the network.

Since all staff have joint contracts of employment and work across the group the Trustees have reviewed the need for two separate charities within the group and the corresponding additional associated governance and compliance costs. As a result of the review, moving forward as contracts are renewed and new ones are signed, they will be transferred to 15billionebp. It is anticipated this process will be completed within the next 24 months and when all contracts have been transferred the New Hackney Education Business Partnership will be closed.

The directors remain open to exploring all opportunities that present themselves with regard to expanding collaboration with other charities across all aspects of operational activity, including administration, fundraising, raising public profile, resource sharing and streamlining of costs and service delivery.

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15BILLIONEBP (A company limited by guarantee)

Directors’ report for the year ended 31 August 2023

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.

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: 30/05/2024 30/05/3024

Sugathan Sahadevan Director

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Independent auditor’s report to the members of 15billionebp

We have audited the financial statements of 15billionebp (the ‘parent charitable company) and its subsidiaries (the ‘group’) for the year ended 31 August 2023 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.

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15BILLIONEBP (A company limited by guarantee)

Independent auditor’s report to the members of 15billionebp

Conclusions relating to going concern

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

Based on the word we have performed we have not identified any material uncertainties relating the 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 issues.

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the 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, the trustees (who are also the directors of the charitable company 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 company'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 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.

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.

The extent to which the audit was considered capable of detecting irregularities including fraud Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

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Independent auditor’s report to the members of 15billionebp

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

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Independent auditor’s report to the members of 15billionebp

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 (Senior Statutory Auditor) For and on behalf of LB Group Limited (Stratford)

......................... 30/05/2024 30/05/2044

Chartered Accountants Statutory Auditor

1 Vicarage Lane Stratford London England E15 4HF

Date

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15BILLIONEBP

(A company limited by guarantee)

Income:
Note
Continued operations
Income from charitable activities
4
Investment income
Discontinued operations
Income from charitable activities
4
Total income
Expenditure:
Continued operations
Charitable activities
5
Discontinued operations
Charitable activities
5
Total expenditure
Net income before other recognised gains and losses
Re-measurement (loss)/ gain on defined benefit pension scheme
Net movement in funds for the period
Reconciliation of funds
Total funds brought forward
Transfer between funds
Total funds carried forward
12		 Unrestricted
Funds
2023
£’000
1,804
1
-
1,805
1,979
-
1,979
(174)
(84)
(258)
551
-
293		 Restricted
Funds
2023
£’000
4
-
-
4
4
-
4
-
-
-
-
-
-		 Total
Funds
Year ending August 2023
£’000
1,808
1
-
1,809
1,983
-
1,983
(174)
(84)
(258)
551
-
293		 Total
Funds
Period ending August 2022
£’000
3.017
2
239
3,208
2,973
378
3,351
(143)
67
(76)
627
-
551

24 | P a g e

15BILLIONEBP

(A company limited by guarantee)

Consolidated and Charity balance sheets as at 31 August 2023

Note Group Group Charity Charity
31 31 31 31
August August August August
2023 2022 2023 2022
£’000 £’000 £’000 £’000
Fixed assets
Tangible assets 9 30 23 16 20
Current assets
Debtors 10 546 508 274 2,431
Cash at bank and in
hand		 140 454 96 211
686 962 370 2,642
Creditors:amounts
falling due within one 11 (476) (542) (116) (2,254)
year
Net current assets 210 420 254 408
Total assets less
current liabilities		 240 443 270 408
Defined benefit pension
scheme asset		 53 108 - -
Net assets including
pension scheme asset		 16 293 551 270 408
Funds: 12
Restricted funds - - - -
Unrestricted funds:
General funds 240 443 270 408
Pension reserve 53 108 - -
Total unrestricted funds 293 551 270 408
Total funds 293 551 270 408

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 note on pages 27 to 53 form part of the financial statements.

The financial statements were approved by the directors on 30/05/2024 30/05/2044 and signed on their behalf by:

Sugathan Sahadevan

Director Company registration number: 02462697

25 | P a g e

(A company limited by guarantee)

15BILLIONEBP

Statement of cash flows and consolidated statement of cash flows For the year ended 31 August 2023

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 period		 Group
Year
ending
August
2023
£’000
(298)
(17)
1
(314)
-
(314)
454
140		 Group
Period
ending
August
2022
£’000
(467)
-
2
(465)
-
(465)
919
454		 Charity
2023
£’000
(116)
-
1
(115)
-
(115)
211
96		 Charity
2022
£’000
(222)
-
1
(221)
-
(221)
432
211

26 | P a g e

15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 August 2023

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 and prior year restatements

The consolidated financial statements incorporate those of 15billionebp and all of its subsidiaries (i.e., entities that the group controls through its power to govern the financial and operating policies to obtain economic benefits). All financial statements are made up to 31 August 2023. 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.

All entities acquired are consolidated using the merger accounting rules and not acquisition accounting.

1.3Reporting period

The financial statements are prepared based on a 12-month period from 1 September 2022 until 31 August 2023. The prior period was a 17-month period from 1 April 2021 until 31 August 2022, and for this reason the comparatives set out in these financial statements (including related notes) will not be entirely comparable.

1.4 Preparation of the accounts on a going concern basis

As in the previous period, the financial year under review continued to be characterised by immense uncertainty and operational challenge.

While schools remained fully open over the year many of our business partners and large corporate supporters adopted a hybrid style of working for their employees. With significant numbers of employees no longer coming into the office five days a week it is difficult for them to engage in a skilled volunteering day in a school or for their employer to host a one week work placement.

27 | P a g e

15BILLIONEBP

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 August 2023

The general uncertainty around the economy, the rapid rise in the cost of living and the resulting big increase in interest rates together with the political upheaval during the Autumn of 2022 all conspired to severely dent confidence which in turn has made competition to secure corporate and social responsibility funding from business’s even harder to secure which in turn affects our delivery model.

However, having noted the above, there are many other factors that give trustees confidence about the future. Our contracts to deliver a management information system supporting young people in transition are secure and the external hosting of the service will enable us to market an enhanced range of add-on software to local authorities which will support our return to surplus.

Dialogue with school leads remains positive. The charity is highly regarded across the boroughs it operate in. It has a strong reputation as the “turn-too” local not-for-profit provider of quality careers guidance advice and information services that both help support school leaders surpass the Gatsby benchmarks and genuinely strengthen the soft skills of their students. We have already delivered well over 5,000 work experience placements in the year under review and our ability to meet the increasing demand from schools to provide more will only be constrained by the speed at which we can re-build the employer database. As previously reported by necessity this database was neglected during the Coronavirus lockdowns but is gradually being restored.

Furthermore, a series of additional funding opportunities have come on stream during the spring of 2024. We were successful in securing funding from the Greater London Authority to deliver their “Early Connect” contract funding the provision of apprenticeship information and support to young people. Similarly, we became the Smiths Foundation first UK based charity partner.

Since all staff have joint contracts of employment and work across the group the Truste have reviewed the need for two separate charities within the group and the corresponding additional associated governance and compliance costs. As a result of the review, moving forward as contracts are renewed and new ones are signed, they will be transferred to 15billionebp. It is anticipated this process will be completed within the next 24 months and when all contracts have been transferred the New Hackney Education Business Partnership will be closed.

Given the existing contractual position currently, the increasing number of enquiries we are receiving from funders leading to positive outcomes 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.

28 | P a g e

15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 August 2023

1.5 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.

1.6 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:

29 | P a g e

15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 August 2023

1.7 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 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 £2,000 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% - 33% straight line Fixtures and Fittings 10% - 20% straight line Short leasehold premises 20% straight line

30 | P a g e

15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 August 2023

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.

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:

31 | P a g e

15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 August 2023

1 Accounting policies (continued)

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.

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.

32 | P a g e

15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 August 2023

1.17 Employee Benefits (continued)

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'.

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 11 – members (period to 31 August 2022 15). 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.

33 | P a g e

15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 August 2023

2 Judgements and key sources of estimation uncertainty

In the application of the Charity’s accounting policies, the Trustees required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

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) / Surplus
Total funds brought forward
Total funds carried forward
Represented by:
Restricted income funds
Unrestricted income funds
Total funds		 Year ended
31 August
2023
£’000
501
635
(134)
408
274
-
274
274		 Period to
31 August
2022
£’000
699
600
99
309
408
-
408
408

34 | P a g e

15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 August 2023

4 Incoming resources from charitable activities - analysis by activity

Continued
Operations
Work related
learning
Work experience
placements
brokered
European
Development
programme
Employability
programmes
Information Advice
and Guidance
Management
Information Systems
Inspire
Discontinued
Operations
Inspire Direction
School
Total		 Unrestricted
Funds
£’000
770
405
-
56
214
360
-
-
1,805		 Restricted
Funds
£’000
-
-
4
-
-
-
-
-
4		 Year
ending
August
2023
£’000
770
405
4
56
214
360
-
-
1,809		 Period
ending
August
2022
£’000
506
193
100
179
465
535
991
239
3,208

35 | P a g e

15BILLIONEBP

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 August 2023

5 Expenditure by charitable activity – summary by activity

Continued Operations
Work related learning
Work experience
placements brokered
European development
Employability programmes
Information Advice and
Guidance
Information Management
Systems
Inspire
Discontinued Operations
Inspire Direction School
Total		 Staff
costs
£’000
460
328
5
76
316
246
-
1,431		 Direct
costs
£’000
137
84
-
14
132
115
-
-
482		 Support
Costs
£’000
23
15
-
7
12
13
-
-
70		 Year
ending
August
2023
£’000
620
427
5
97
460
374
-
-
1,983		 Period
ending
August
2022
£’000
380
225
96
159
535
509
1,069
378
3,351

36 | P a g e

15BILLIONEBP

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 August 2023

6 Analysis of support costs

General
Support		 Governance
Function		 Year
ending
August
2023
Total		 Period
ending
August
2022
Total		 Basis of
apportionment
£’000 £’000 £’000 £’000
Premises Costs 22 - 22 17 Weighted average of
turnover & headcount
General Office 19 2 21 12 Weighted average of
turnover & headcount
Legal and other
professional fees		 - - - - Governance
Auditors’
remuneration		 - 18 18 19 Governance
Salaries and 1 8 9 11 Governance
wages
Total 42 28 70 59

7 Net outgoing resources

This is stated after charging:

his is stated after charging:
Year Period
ending ending
August August
2023 2022
£’000 £’000
Depreciation of tangible fixed assets:
- Owned by the charitable group 9 10
- Auditors’ remuneration 18 21
- Pension costs 111 172

37 | P a g e

(A company limited by guarantee)

15BILLIONEBP

Notes to the financial statements for the year ended 31 August 2023

8 Staff costs

Staff costs were as follows:

taff costs were as follows:
Wages and salaries
Social security costs
Other pension costs		 August
2023
£’000
1,272
119
111
1,502		 August
2022
£’000
2,282
142
142
2,566

Included within staff salaries are staff redundancy costs of £3,447 (2022: £40,000).

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
Inspire
Total		 August
2023
No.
1
1
9
5
7
2
19
44
__		 August
2022
No.
1
1
12
5
7
2
21
49
____

38 | P a g e

15BILLIONEBP

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 August 2023

The number of higher paid employees was:

In the band £70,001 - £80,000

----- Start of picture text -----
August August
2023 2022
No. No.
1 1
----- End of picture text -----

21 employees (period to 31 August 2022: 17) were directly employed by 15billionebp.

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 (period to 31 August 2022 £NIL) neither were they reimbursed expenses during the year (period to 31 August 2022 - £NIL). No director received payment for professional or other services supplied to the charity (period to 31 August 2022 - £NIL).

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 (period to 31 August 2022: £NIL), including employer’s national insurance contributions.

The key management personnel of the group are the Group Chief Executive, Development Manager, Director of work related learning and Head of Management Information Systems, whose employee benefits together total £287,412 (period to 31 August 2022: £504,298 including employer’s national insurance contributions.

Notes to the financial statements for the year ended 31 August 2023

39 | P a g e

15BILLIONEBP

(A company limited by guarantee)

9 Tangible fixed assets

ngible fixed assets
Furniture, Fittings and Equipment
£’000
Group – as restated 2023
Cost
At 1 September 2022 229
Additions 17
Disposals -
At 31 August 2023 246
Depreciation
At 1 September 2022 206
Written back on disposal -
Charge for the year 10
At 31 August 2023 216
Net book value
At 31 August 2023 30
At 31 August 2022 23

Notes to the financial statements for the year ended 31 August 2023

40 | P a g e

15BILLIONEBP

(A company limited by guarantee)

9 Tangible fixed assets (continued)

Charity
Cost
At 1 September 2022
Additions
31 August 2023
Depreciation
At 1 September 2022
Charge for the year
At 31 August 2023
Net book value
At 31 August 2023
At 31 August 2022
Debtors
Prepayments and accrued income
Amounts due from subsidiary
Grants and contracts / Trade debtors		 Furniture, Fittings and Equipment
£’000
37
-
37
17
4
21
16
20
Group
Charity
31
August
2023
31
August
2022
31
August
2023
31
August
2022
£’000
£’000
£’000
£’000
279
430
60
78
-
-
61
2,292
267
78
153
61
546
508
274
2,431		 Furniture, Fittings and Equipment
£’000
37
-
37
17
4
21
16
20
Group
Charity
31
August
2023
31
August
2022
31
August
2023
31
August
2022
£’000
£’000
£’000
£’000
279
430
60
78
-
-
61
2,292
267
78
153
61
546
508
274
2,431
2,431

10 Debtors

Notes to the financial statements for the year ended 31 August 2023

41 | P a g e

15BILLIONEBP

(A company limited by guarantee)

11 Creditors

Creditors
Group Charity
31 31 31 31
August August August August
2023 2022 2023 2022
£’000 £’000 £’000 £’000
Trade creditors 62 40 14 5
Other taxation and social security 132 102 53 32
Amount due to subsidiary - - - 2,174
Accruals and deferred income 282 400 49 43
476 542 116 2,254
Creditors (continued)
Group Charity
Deferred income (Included within Accruals and deferred income £’000 £’000
above)
Deferred income at 1 September 2022 255 23
Amounts released from previous years (255) (23)
Amount deferred in the year 233 35
Deferred income at 31 August 2023 233 35

11 Creditors (continued)

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.

42 | P a g e

(A company limited by guarantee)

15BILLIONEBP

Notes to the financial statements for the year ended 31 August 2023

12 Analysis of funds

Analysis of
movement
in
unrestricted
funds
Designated
funds
Fixed assets
fund
General
funds
Charity’s
general fund
15Billion
(excluding
fixed assets)
Pension
reserve
(subsidiary)
Inspire
(subsidiary)
Total
unrestricted
funds
Subsidiary
restricted
funds
Total
restricted
funds
Total of
funds		 Brought
Forward
£’000
21
21
388
193
108
(159)
530
551
-
-
551		 Incoming
Resources
£’000
17
17
501
631
-
661
1,793
1,810
-
-
1,810		 Resources
Expended
£’000
(8)
(8)
(635)
(873)
29
(497)
(1,976)
(1,984)
-
-
(1,984)		 (Losses)/
Gains
£’000
-
-
-
-
(84)
-
(84)
(84)
-
-
(84)		 Transfers
between
funds
£'000
-
-
-
-
-
-
-
-
-
-
-		 Carried
Forward
£’000
30
30
254
(49)
53
5
263
293
-
-
293

Notes to the financial statements for the year ended 31 August 2023

43 | P a g e

15BILLIONEBP

(A company limited by guarantee)

12 Analysis of funds (continued)

Designated Funds

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

13 Analysis of net assets between unrestricted funds

Fixed assets
Net current assets		 Unrestricted
funds
£’000
30
210
240		 August 2023
£’000
30
210
240		 August
2022
£’000
21
530
551

Notes to the financial statements for the year ended 31 August 2023

44 | P a g e

15BILLIONEBP

(A company limited by guarantee)

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
2023
£’000
2022
£’000
104
118
26
104
-
-
-
-
-
-
-
-		 Other
2023
£’000
2022
£’000
-
-
-
-
-
-
-
-

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 15billion England and Wales

Notes to the financial statements for the year ended 31 August 2023

45 | P a g e

15BILLIONEBP (A company limited by guarantee)

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 (loss) /gain 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
Pensions account
Capital and reserves carried forward		 Year
ending
August
2023
£’000
647
(822)
(176)
(25)
(201)
1
-
-
(200)
(84)
(284)
August
2023
£’000
14
243
(293)
53
17
2023
£’000
(36)
53
17		 Period
ending
August
2022
£’000
1,161
(1,279)
(118)
(25)
(143)
1
-
-
(142)
67
(75)
August
2022
£’000
-
516
(323)
108
301
2022
£’000
193
108
301

Notes to the financial statements for the year ended 31 August 2023

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15BILLIONEBP

(A company limited by guarantee)

15 Subsidiary (continued)

New Hackney Education Business Partnership Limited (t/a Inspire! EBP) is a company limited by guarantee and registered in England and Wales, (company number 05157521) and a registered charity (No. 1111037) which was incorporated on 18 June 2004.

The principal activities of New Hackney Education Business Partnership Limited (t/a Inspire! EBP) 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 New Hackney Education England and Wales Business Partnership Limited (t/a Inspire! EBP)

The results and year end balance sheet of New Hackney Education Business Partnership Limited (t/a Inspire! EBP) were as follows:

Turnover
Cost of sales
Gross (loss)/profit
Administrative expenses
Operating (loss)/profit for the year
Interest receivable and similar income
Total recognised Gain/(loss) relating to the year		 Year
ending
August
2023
£’000
661
(497)
164
-
164
-
164		 Period
ending
August
2022
£’000
1,346
(1,447)
(101)
-
(101)
-
(101)

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15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 August 2023

15 Subsidiary (continued)

Tangible fixed assets
Current assets
Current liabilities
Net assets
Unrestricted funds
Restricted funds
Total funds		 Year
ended 31
August
2023
£’000
-
192
(187)
5
2023
£’000
5
-
5		 Period
ended 31
August
2022
£’000
2
96
(257)
(159)
2022
£’000
(159)
-
(159)

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15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 August 2023

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 £43,465 - (period to 31 August 2022 £57,566). At the year-end there were outstanding contributions of £9,369 (period to 31 August 2022 - £4,928).

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 (period to 31 August 2022 £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 £8,604 (period to 31 August 2022 - £8,604). There were no amounts outstanding at the year end.( period to 31 August 2022 -£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 August 2023

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 2021, 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 2.80% per year and that present and future pensions would increase at the rate of 1.50% per year.

The agreed contribution rate for future years is 37.8% for employers and 6% for employees.

The principal actuarial assumptions used by the actuary were:

31 August 2023 31 August 2022
% %
Inflation (Retail Price Index) 3.30 3.50
Inflation (Consumer Price Index) 2.80 3.00
Rate of general increase in salaries 2.80 3.00
Discount rate for scheme liabilities 5.25 4.25

Longevity assumptions as at 31 August 2023:

Base table Bespoke longevity tables provided by Club Vita for the formal
valuation of the Section as at 31 March 2021
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 21.3
23.4
Retiring in 20 years 23.7
26.3

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15BILLIONEBP

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 August 2023

Balance Sheet position

Assets
Equity securities
Diversified Growth & Hedge Funds
Debt securities – Corporate
Debt securities – Government
Cash and cash equivalents
Insurance linked securities
LDI
Multi asset credit funds
Asset-backed securities
Synthetic Credit
Absolute Bond Return
Total value of assets
Actuarial value of (liabilities)
Surplus of funded plan liabilities and net pension asset		 Fund value
at 31 August
2023
£’000
42
-
-
-
186
39
171
-
62
40
48
588
(535)
53		 Fund value
at 31 August
2022
£’000
51
-
-
-
124
49
124
-
236
39
44
667
(559)
108
Analysis of amount charged to operating profit
Current service cost
Administration cost
Loss on settlement
Total operating charge		 31 August
2023
£’000
17
7
-
24		 31 August
2022
£’000
34
33
-
67

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15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 August 2023

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) / gain in Plan recognised in the OCI
Reconciliation of Plan benefit obligation:
At 1 September 2022
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 August 2023		 31 August
2023
£’000
29
(24)
5
19
31 August
2023
£’000
(145)
61
(84)
31 August
2023
£’000
559
17
7
24
6
(61)
-
(15)
535		 31 August
2022
£’000
20
(19)
1
66
31 August
2022
£’000
(99)
166
67
31 August
2022
£’000
680
34
33
19
6
(166)
-
(48)
559

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15BILLIONEBP (A company limited by guarantee)

Notes to the financial statements for the year ended 31 August 2023

Reconciliation of fair value of Plan assets:
At 1 September 2022
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 August 2023		 31 August
2023
£’000
667
29
4
48
(145)
-
(15)
588		 31 August
2022
£’000
723
20
6
64
(99)
-
(48)
667

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

Net movement in funds
Add back depreciation charge
Less interest income shown in investing
activities
Decrease (Increase) in debtors
(Decrease) Increase in creditors
Cash flow from operating activities		 Group
2023
£’000
(163)
9
(1)
(174)
31
(298)		 Group
2022
£’000
(143)
11
(2)
(132)
(201)
(467)		 Charity
2023
£’000
(36)
4
(1)
(92)
9
(116)		 Charity
2022
£’000
(29)
4
(3)
(205)
11
(222)

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.

During this financial year the charity received funding from Linklaters and UBS, both of which are related parties. Matthew Sparkes is a Trustee of 15billionebp (resigned 9 March 2023) and Head of Sustainability at Linklaters; Patsy Francis is a trustee of New Hackney education (resigned 01 June 2021) and Director of Community Affairs at UBS. These related parties donated the following funds during the period, all of which is classified as unrestricted funding:

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