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2021-03-31-accounts

Annual Report and Accounts For The Year Ending 31[st] March 2021

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The Forward Trust For the year ending 31[st] March 2021

Contents

Trustees’ Annual Report 2
Finance Report 18
Principal Risks And Uncertainties & Risk Management 23
Structure, Governance and Management 26
Statement of Trustees’ Responsibilities 30
Going Concern Declaration 31
Auditor’s Report 32
Statement of Financial Activities 36
Balance Sheet 37
Cash Flow Statement 38
Notes to the Financial Statements 39
Reference and Administrative Details 59

The Forward Trust Annual Report and Consolidated Financial Statements 2020-21 1

The Forward Trust For the year ending 31[st] March 2021

TRUSTEES’ ANNUAL REPORT

Introduction

We began the current reporting year having recently moved all of our operations, as well as all of our Head Office functions into alternate ways of working as a result of the COVID-19 global pandemic, and the restrictions that were required of us in order to ensure the continued safety of our clients and our staff.

Whether working under the severe restricted access to prisoners as a result of prisons locking down, or developing new ways of accessing our community based clients remotely, we have managed to continue to deliver our services throughout, (although not at the levels that we would want to, given their vulnerability, and needs).

During the year we have made further strides in our Employment Services division and are rapidly growing a reputation for delivery that has seen us succeed, even when up against the larger and more experienced providers in this area.

We have also transformed our ability to offer services to our clients through employment of technological solutions in the form of social media platforms such as Zoom and Kaizala, as well as through new digital content.

Our Prison Substance Misuse Division has, despite COVID-19 during the year, continued to build on our fledgling delivery of the NHS Improving Access to Psychological Therapies (IAPT) programme, mobilising and embedding this service across five prisons in Hertfordshire, Essex, and Suffolk.

Our financial performance, having turned a corner during the previous year, has suffered somewhat due to complications brought on by COVID-19 and

increased costs relating to keeping our staff and clients safe, compounded by a slow-down in contribution from some of our key charitable donors. Our key sources of contract income have stayed firm throughout.

As a consequence, the charity will only return a small deficit and not only remains a going concern, but will expand significantly during 2021 and beyond through merger and key contract wins in the Probation market.

The Board of Trustees confirm that this annual report and consolidated financial statements are made under charity law, provide a strategic report and directors’ report, and are produced as required by company law.

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The Forward Trust For the year ending 31[st] March 2021

Message from the Chair

The 12 months covered by this report have been quite unlike any other, and that is true for all of us: not just Forward Trust senior management, staff, and clients, but the whole country. While it is arguable that our prison clients have suffered the greatest stresses and hardships over the last 18 months, all of us have been deeply affected, and in new and unfamiliar ways, by the pandemic and its consequences.

The admirable way that the whole Forward team responded to the many restrictions and obstacles we have had to deal with are well described in the following sections of this report. What shines out is the remarkable combination of resourcefulness and imagination that everyone brought to the task of finding ways to continue to deliver our services to our clients. Just one example is Reach Out, our online chat service that was conceived, devised, and implemented in a matter of weeks. Staff volunteers were trained to operate the service and soon they were dealing with tens and then hundreds of contacts - many from people getting in touch with Forward for the first time.

As you will discover later in this report over half those contacting us via Reach Out were seeking help with mental health problems. This, I believe, is a reflection of the impact that the various COVID-19 lockdowns have had on the general population, and also of the growing public awareness of the ever wider range of services that the Forward Trust can offer.

One of our key aims as a national charity is to raise awareness of the many positive solutions that are on offer for our client group - those affected by addiction and by crime. We aim to reduce the unwarranted stigma attached to our beneficiaries, so many of whom are now enjoying

reformed lives in recovery, rebuilding relationships with family, working as highly valued employees, and employers, and showing by example that many more can and will be helped to turn their lives around.

During the year under review we were approached by Action on Addiction, another leading charity working in the same field. After some thorough and very positive discussions the two boards of trustees decided to move to full merger of the two organisations. I am delighted to be able to report that shortly after the end of our financial year, on 30th April, the merger took place. As a result the combined charities will be able to deepen and extend the range and the reach of our programmes.

We already have exciting plans for the coming year, and many of these will be in the public domain by the time this report is published. One piece of news which we were particularly proud to announce in June is the decision of HRH The Duchess of Cambridge to become our Royal Patron. Her commitment to the work we do has been evident for many years through her patronage of Action on Addiction. We are delighted that she has agreed to serve as our Patron following the merger of the two charities. We acknowledge and welcome her interest in early childhood, and

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The Forward Trust For the year ending 31[st] March 2021

in the importance of early intervention to address the consequences of childhood trauma, which can so often lead to addiction and other problems later in life. Increased emphasis on our family work is one part of our response to the growing need for mental health programmes.

We are also taking on new challenges through our success in winning a number of Personal Wellbeing contracts that have been awarded to us as part of the Probation Service Dynamic Purchasing Framework. We hope that we can bring the same Forward Trust approach to all the programmes and services we provide, namely a firm belief that anyone, whatever their particular problems and needs, can be given the tools and support they require to help them take responsibility for their own futures.

As we navigate the prospect of a gradual return to a “new normal”, we will rely more and more on each other, and a shared concern for mutual support. I am sure that our staff, trainees, and volunteers will work together to continue to help all our clients to turn their lives around and maintain stable recovery.

Each year I am humbled by the commitment of everyone at Forward Trust, this year more than ever. I remain confident that we will meet the challenges ahead, and that our charity will continue to thrive.

Wat

Hon David Bernstein

Chair of Trustees

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The Forward Trust For the year ending 31[st] March 2021

Message from the Chief Executive Officer

Mike Trace, Chief Executive aNef As for everyone, the year from April 2020 has for Forward Trust been dominated by the COVID-19 pandemic, and the lockdowns that followed. We had to react quickly to the initial lockdown at the end of March 2020 and work hard to develop and maintain working practices that maximised the safety of our staff, while continuing to deliver as much of the life-saving care and support that our clients need.

I am proud of the fact that, throughout this year of disruption, the Forward Trust has been able to continue expanding our services, and maintain our financial stability, with no need to make any employees redundant, or temporarily furloughed. All our staff and volunteers have been kept busy on delivering our mission, often having to make fundamental changes to working patterns or job roles but remaining focused on finding creative ways to provide advice and support and promote recovery. This has been made possible by the continued dedication and client focus of our workforce, who have shown again that they are experts at adapting to new circumstances and challenges.

Knowing that loneliness, isolation, and anxiety are key drivers of addiction and other mental health problems, we always expected a spike in demand for our services. This has been the case in general, but also specifically evidenced by the response to our ‘Reach Out’ online chat function. Identifying that people would need an open access channel to seek a ‘friendly voice’ and get anonymous access to advice and reassurance, we launched the Reach Out service in spring 2020. With limited advertising and no funding, this ‘no strings attached’ chat line has since responded to thousands of calls from people feeling isolated, most of whom want nothing more than to feel that someone cares and is listening. I pay tribute to the Forward Trust staff and volunteers who have given up their time to attend training and operate the service.

We have also commissioned research into patterns of drinking and drug use amongst the general population during the lockdowns, which was published in June 2021, and showed that more people were drinking to dangerous or dependent levels and, most worryingly, that those who reported themselves to be in recovery were more likely to be going through relapses triggered by isolation and depression.

Service provision, particularly in prisons, has been severely disrupted, with opportunities for face to face delivery severely constrained for most of the year. Our structured therapeutic programmes, in which the closeness of the group is an important part of recovery, have been impossible to deliver face to face during this period. Where possible, we have worked with clients remotely (through Zoom groups and social media, and in one-to-one, socially distanced, sessions). We have also made extensive use of written materials and exercises, to keep clients occupied and connected from their prison cell, or COVID lockdown accommodation.

While there is no substitute for the human connection of face to face work, we have found that many of these remote methods, introduced by necessity, have actually improved the accessibility and efficiency of some services. Creative approaches such as online assessments, remote delivery of vocational and employment training, social media-based support groups, and virtual viewings of accommodation have been appreciated by clients, and in many cases led to better outcomes. We will be incorporating these new ways of working into our post-lockdown patterns of work.

One of the most daunting tasks at the first outbreak of COVID was the closing down of our Head Office in London in March 2020. Like most federated service provision charities, all of our Central Services were operated from the Head Office, based in Kennington, South London, with all staff attending the office daily. We took the decision to totally close the office on 17[th] March 2020, and each department quickly moved to a remote style of working with, for

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The Forward Trust For the year ending 31[st] March 2021

example, financial transactions approved electronically, meetings all held on Zoom and Teams, and audits and management checks undertaken remotely. In contrast to initial fears of major disruption to communications, this remote model of working has stood up remarkably well, for which I need to give thanks to our tireless and creative IT department, and the flexibility and ‘can do’ attitude of staff and managers. Like most organisations, we are now negotiating a return to office based working and are planning a hybrid model of office attendance and remote services.

Conclusive evidence of the robust health of the organisation through this difficult period is provided by our merger, just after the year end, with Action on Addiction. Forward Trust leadership were approached in late 2020 to consider merging with this well established and well regarded addiction recovery charity. Brisk negotiations showed the merger to be clearly in in the interests of both charities’ missions, and an agreement to merge was made by the end of March 2021 and implemented without major disruption in May 2021. Combined with a number of successful contract wins to deliver services under the new Unified Probation Model, this merger has raised our annual turnover to around £33 million, and significantly increased the number and diversity of the clients that we can offer the prospect of recovery and rehabilitation to. We therefore enter a new year full of hope and confidence in pursuing our mission to help people turn their lives around.

Forward in Numbers – Understanding our Impact

2020/21 has been a year like no other. That said, it has seen some remarkable achievements even in the face of significant challenges, and these are detailed below:

Key Achievements in 2020/21

Employment Services Clients/Learners received employment and training support in prisons (IAG).

Of Employment Services Clients/Learners placed in a job or apprenticeship sustain it for at least 3 months

Substance Misuse clients started a structured intervention. New clients joining our Forward Connect recovery community. Clients and families engaged with Forward Family Programmes. Active volunteers engaged with us over the year 2020-21.

Housing clients who were offered secure tenancies sustained them for 6+ months since April 2020. Trainees (formerly referred to as Forward Apprentices) were recruited

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The Forward Trust For the year ending 31[st] March 2021

Forward Thinking – Innovation and Imagination, Our Stock in Trade

We achieve the results we do because we believe and invest in people’s capacity to change.

We also create structures and initiatives which celebrate people’s achievements, help them to act as role models, and demonstrate ‘visible recovery’ to those following behind them.

Innovation and imagination have been especially important during the current period, and in particular to craft new and different ways of engaging our clients in response to the restrictions on face to face access brought about by the country’s response to COVID-19.

Here at Forward we have, in our usual determined and passionate way, embraced this, and have set in place over the reporting period numerous initiatives and innovations focused at not only minimalising the impact of COVID-19 restrictions, but that even embrace them and use them as a vehicle for driving change.

Here are some examples of how we have continued to put our mission into practice.

Remote and Digital Support

Restricted by lockdown from being able to deliver the bulk of our ‘in person’ services (one-to-one key work sessions or groups), Forward – like many organisations that care for vulnerable people – had to switch overnight to a telephone and online-based service to maintain core support for community clients (audio/video calls and text messaging).

However, motivated by client demand, we then piloted a wider, more ambitious range of digital tools, aiming to further enhance connection with and between clients.

Reach Out An online, text-based chat service to reach people in need of advice and support, providing a ‘friendly voice’ of hope and motivation;

Digital workbooks Self-help resources to raise awareness and help address problematic use of alcohol, cannabis, and powder cocaine during lockdown;

Social Messaging Apps To enable peer-to-peer connection and support for groups at various stages of treatment and recovery; Online Group Programmes Using video call software to continue delivery of structured group programmes for both service users and recovering families.

More than merely ‘filling the gap’ during lockdown, initial findings suggest that these tools can enhance traditional models of face to face support in the future, offering benefits of:

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Greater Reach – engaging more younger and older (70+) client groups than previously supported, and also friends and families of people in need;

Safety and Confidence – many people feel more comfortable connecting from home (once online protocols are in place); barriers such as transport, childcare, and the stigma of being seen at a service hub location are also overcome;

Stronger Engagement – clients who use online tools and platforms enjoy the experience and come back for more; they also claim that they are more likely to return to or commence ‘in-person’ groups;

Service User Empowerment – clients are able to use tools 24/7 to support each other and also to create motivational content (e.g. recovery films); they are ‘running with the tech’ unconstrained by set times or locations;

Wider Influence – technology captures and shares messages of peer support at a greater scale than can be achieved through face to face communication; this amplifies ‘visible recovery’.

Building on this intensive period of innovation and learning in response to lockdown, Forward is committed to the further development of digital tools and approaches, as well as to measuring the outcomes they achieve compared to traditional approaches, acknowledging that digital access is not possible for everyone, or not to everyone’s taste.

However, client feedback already demands that remote and digital support continues as an option in a future beyond lockdown, as part of a ‘blended’ approach alongside ‘in-person’ services, and we believe that there is enormous potential for developing this to complement the on-going programme for digitalising prisons.

Insight - Pandemic Vs the Dover Day Programme…

Nobody could have predicted that a virus could possibly have had as much of an impact on the world as we knew it as COVID-19. Nor could we imagine having to adapt every aspect of how we work to accommodate the new ‘COVID-secure’ rules, keeping all our staff and clients safe. COVID has hindered our world in so many ways, particularly how we interact with one another, as well as highlighting the importance of mental health.

It has destroyed so many lives, taking away loved ones and forcing us to isolate ourselves, which is especially hard if you are already in a lonely place.

Communities have worked together helping each other stay safe and practise social distancing. We have had to look at new ways to stay connected, be it with family or in a work environment. For us, the workplace looks very different.

This is the story of how one of our Hubs in East Kent has adapted to continue to facilitate the Dover Day programme, supporting people with substance misuse issues.

Before the pandemic, staff and clients would all come together as a group - in the same room - and this would help clients support one another to stay abstinent.

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Staff would also deliver one-to-one key work in person, because being able to connect visibly in a therapeutic environment is so important.

The programme usually ran from 10am to 3pm, Monday to Friday. When lockdown happened, this changed almost overnight.

The Team knew that they had to adapt quickly to make sure the programme could still be delivered. Clients were in the middle of their treatment programmes, and we had to support them no matter what.

The Team quickly responded and adapted the programme to run online, using digital services such as Microsoft Teams and Zoom.

This was not easy, as a number of both staff and clients were insufficiently technically literate. But by coming together and supporting each other they were able to get up to speed quickly.

In addition to running groups online, the Team also set up a secure group for clients on Kaizala (a chat app similar to WhatsApp), where clients could access out-of-hours support if they needed to. One-to-one key work was now done over the phone, including contacting any clients who needed a chat after online group sessions.

Colleagues supported each other remotely when service users wanted check-ins, providing — * people the chance to talk, or be an ear to listen - in confidence, of course – as well as signposting clients to other services they needed. Clients were offered remote support with their assignments as well. Despite all the changes and restrictions, we have even had the pleasure of seeing participants actually graduate from the programme.

Usually we would celebrate the achievements of the graduates with cake, but under the circumstances, cake will have to wait a bit longer.

Forward are passionate about change, and what better opportunity does a person get to embrace change than during these times. We can all learn from these experiences and listen to the powerful messages of hope as we come together again post COVID, just in a different way.

As COVID restrictions diminish, Forward is seeing a lot more people coming into our services. Our ability as an organisation to support these clients is unwavering despite the challenges of running a service during a pandemic, because we have adapted to the situation and – in many ways – actually improved the way that we work together. The message is out there for all to see.

We never give up because everyone deserves a chance, and if we all pull together, we can continue to demonstrate that change is possible.

Reach Out – Forward’s On-Line Chat Service…

Reach Out: Forward’s online chat service grew from an emergency pandemic response into a valuable safety net.

In May 2020, Forward launched its first ever live chat service: Reach Out.

We were mindful that a lot of vulnerable people, both our current service users and those not currently getting help but struggling, would be looking for sources of support at what was an incredible lonely and anxious time.

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Reach Out seemed to be one small way in which we could help.

It took a while for people to learn about the service, but – with funding from the National Lottery’s Coronavirus Community Support Fund and from J Leon Group to help with marketing and promotion – it has become increasingly popular.

We have now seen a 500% growth in call volume since November of last year.

Although Forward delivers a range of different types of support, including employment and housing, we are best known for our drug and alcohol services. So we thought it was likely that the vast majority of people contacting us would do so to chat about issues with substances. And, to begin with, they did.

However, in the course of the last year, we have had an increasing amount of people getting in touch due to mental health issues, and these actually now form a significant proportion of the calls we receive: 60% in total.

Lockdown has, of course, been a driver in people wanting to reach out, but the biggest thing we have noticed is people getting in touch because they had no-one else to talk to.

We are helping people who are feeling quite lost and, although that is a big responsibility, it is also a huge privilege

to know that we can be a source of support and comfort to them.

Reach Out is run by a team of Forward staff and volunteers, who have been able to set aside time during lockdowns

to become ‘agents’ for the service.

One of the amazing things is that it is not just callers who have benefitted from the service, but our team. Many of them have told us that, in addition to the satisfaction of knowing that they are helping people, volunteering for Reach Out has helped them to hone their skills and knowledge base.

This has been particularly important for frontline staff whose interaction with clients have been severely limited due to the restrictions on face to face contact in the past year.

For everyone that has been involved, whether it is the people who are getting in touch, or the amazing team at the end of the line, Reach Out has served an incredibly important purpose.

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Forward’s New IAPT Service for Health and Wellbeing…

April 2020 saw the introduction of Forward’s new ‘Improving Access to Psychological Therapies’ (IAPT) services at HMPs Warren Hill, Hollesley Bay, High Point and The Mount. This was in addition to HMP Chelmsford, where we had already been delivering an IAPT service for two years.

IAPT services help people who are experiencing low-level mental health issues, such as depression and anxiety. As a service, IAPT began in 2008 in the community, and has transformed the treatment of anxiety disorders and depression in adults in England. It is widely-recognised as one of the most ambitious programmes that uses talking therapies, and more than one million people have accessed its services for help since it first launched.

IAPT is designed to help people take positive steps that will improve their wellbeing through structured, evidencebased interventions. It largely consists of techniques from Cognitive Behavioural Therapy (CBT), a talking therapy that can help people manage their problems by changing the way they think and behave.

Insight: Additional Support for IAPT Clients from the Recovery Support Service

Our Recovery Support Service supports people who have completed one of our programmes and can help with the transition back into the community. The Forward Trust are now offering this service to IAPT clients who have completed an IAPT programme at Hollesley Bay, Warren Hill, The Mount, Highpoint or Chelmsford.

The service provides:

The opportunity to be connected to a mentor in the community;

The opportunity to be linked into our national Forward Connect network in prison and in the community

Support for up to eight weeks after release into the community.

.

Building Stability… CSD According to MOJ figures, nearly two in five prisoners (37%) state that they need help finding a place to live when they are released. Of these, 84% report needing a lot of help.

Prisoners who reported needing help with a drug or alcohol problem were also more likely to report needing help finding a place to live when they leave prison, compared with those who did not report needing help with a drug or alcohol problem.

Three-fifths (60%) of prisoners believed that having a place to live was important in stopping them from reoffending in the future.

The Forward Trust

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Accommodation and Recovery Housing

In 2020/21, Forward assessed the housing needs of clients and offered advice and information across all our services (e.g. for prison clients, we know that over 50% will leave to no fixed abode).

We also offered a range of housing options to clients, depending on their need and readiness to live independently.

With three established housing pathways for our clients (supported housing/high-care residential settings, Recovery Houses, and independent flats in the private rented sector) and with good sustainment results for each, our priority in the coming period is to scale-up each of the options, increasing placements, whilst maintaining these positive outcomes.

Whilst limited public funding impedes the availability of supported housing, we have exciting plans to expand Recovery Houses.

We also hope to encourage more private landlords to make their properties available by working with Forward’s housing team – our Vision Housing service – which is an efficient model of ‘Housing First, providing good quality accommodation and working with tenants to build the skills and resilience to successfully sustain them.

Reach

Insight: Housing Clients During the Pandemic

COVID-19 and subsequent lockdowns presented our Resettlement Housing Team and the people we support with significant risks and challenges. With an increased risk of street homelessness, in particular for prison leavers, people were no longer able to ‘sofa surf’ with friends, which brought with it a health risk from exposure to the virus.

In response, the Government put emergency measures in place to find hotels for homeless people and also to enable people in temporary accommodation to remain in situ while the pandemic lasted.

While this provided effective short-term respite (in London, over 4,000 homeless people were accommodated in hotels, including prison leavers with only six COVID-19 related deaths compared to 86 in New York City), long term housing solutions were and are still needed, and we offered and adapted our services to meet the needs of local authorities and charities in order to support our clients.

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For our Resettlement Housing Team based in London, who source private rented sector accommodation for clients and provide a tenancy sustainment service, one of the greatest challenges in responding to this demand was being unable to view potential properties in person due to social distancing rules.

We quickly adapted our assessment and viewing processes, organising online viewings with landlords and providing pictures and videos for clients.

Once in their tenancy, as with other parts of the organisation, we maintained remote support for clients 7 days a week through telephone and video contact (providing smart phones and move in packs for those who needed them); our efforts were supported by volunteers

Between March 2020 and June 2020 we arranged 86 viewings and supported 16 people into private rented flats, whilst continuing to support another 51 clients who we had housed pre-March 2020 through the pandemic with tenancy sustainment and wellbeing support.

We continue to support local authorities and charities to support individuals who need stable accommodation, and our move on services have made a difference to so many people.

Building Communities

At Forward, one of the key skills we have is building communities that are capable of sustaining individuals through their recovery journey, be that through addressing substance misuse, long-term unemployment and homelessness, or other criminogenic needs.

Building from our early successes in running effective Recovery Wings in our Prisons, and more recently in community settings, we have developed a range of services in support of meeting those needs that our experience tells us are most critical in nurturing those undertaking transformational change and supporting them through it.

Insight: The Health and Wellbeing Wing at HMP Brixton

For many years, Forward has delivered our Substance Dependence Treatment Programme (SDTP) at HMP Brixton within a dedicated 48- bed ‘Recovery Wing’ devoted to those undertaking the programme.

More recently and working in partnership with our healthcare partner, we have re-launched the wing as a place of Health and Wellbeing, allowing access to a wider group of people – those participating in the intensive addiction recovery programme, but also prisoners committed to using their sentence to build a more positive and healthier lifestyle. Health and Wellbeing clients remain on the wing for a period of three months and then have the opportunity to become a Peer Supporter.

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There are a range of health and wellbeing interventions available to them, including sleep hygiene, managing stress and worry, managing mood, yoga, acupuncture, and more time at the gym. All clients are also invited to some of the SDTP groups such as ‘mutual aid’ fellowship. They are also asked to SDTP graduations.

Insight: Forward Connect

Forward Connect is Forward’s national community of ex-offenders and people in recovery from addiction who give and receive support both face to face (e.g. at reunion events) and via apps and online. Forward Connect has three calls to action for its current 1,000+ members.

Building Relationships

The Ministry of Justice’s own research shows that for a prisoner who receives visits from a family member the odds of reoffending are 39% lower than for those who do not.

Employment and education are repeatedly cited as mainstream rehabilitation activities in offender management that all prisoners are expected to undertake whilst.

In stark contrast, work to maintain and improve family and other relational ties is rarely even mentioned. Yet such work can provide meaning and all-important motivation to these other strands of activity. It also has proven success in preventing re-offending in its own right.

It has long been widely known amongst both practitioners and prisoners how important getting relationships back on track is, and how much of an opportunity can be missed whilst in prison, where insufficient focus and resource is applied to ensuring that prisoners are able to establish, maintain, and repair family relationships.

At Forward, we recognise this, and have set about embedding programmes aimed at strengthening ties with family members wherever we work.

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One of the biggest challenges of the past six months, for people across the globe, has been the far-reaching consequences of separation from friends and family.

Whilst much of the world has been grappling with restrictions on contact, many of our Prison clients and their families have been dealing with a “lockdown within a lockdown” with family visits cancelled and an increased reliance on phone calls, letters and video calling ‘visits’.

In the community, many of our Concerned Significant Others (CSOs) have been faced with the suspension of faceto-face support and groups transferring online. Circumstances have also meant that family members have been forced to spend longer periods at home with loved ones, many of whom are still struggling with drug or alcohol dependency.

Insight: Dave’s Story

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Forward Family Connections Service

During this time of uncertainty, Forward’s Family Connections Service has continued to offer help and support by adapting interventions and working in a more remote capacity. All practitioners have worked hard to find ways to deliver the service and to continue to offer hope and much needed guidance.

Within our Prisons all groups were cancelled, and face-to-face contact was restricted for some time. During the early part of the pandemic, we created ‘distraction packs’ for clients which focussed on self-care and positive thinking. We also put together some ‘Parent and Child Contact Packs’ to send out.

In total 400 packs were distributed, 50 for each of our Family Work teams in Rochester, Standford Hill, Wandsworth, Brixton, Lewes, Coldingley, Send, Maidstone, East Sutton Park and Downview prisons.

As lockdown measures eased, our Family Connections Workers were able to meet with clients face-to-face while adhering to social distancing guidelines. The most common intervention has been checking on welfare, while other appointments have been more in-depth, focussing on managing the impact of the pandemic on family relationships.

The usual areas of support are still very much needed, such as help navigating social services and supervised contact along with managing worries about family members getting sick. We have also worked with other professionals in the prison and community to support our clients and their families far as possible and the results have been largely positive.

Step Back (Violence Reduction at HMP Swaleside) —

rrrr—“—~SRDT—)

The decline in numbers completing our structured treatment dependence programmes is partly caused by an increasingly violent and therefore disruptive prison environment, making it difficult for clients to engage and focus on recovery. To tackle this problem, we are piloting a violence reduction programme (‘Step Back’) in HMP Swaleside, a Category B men’s prison in Kent, where we have delivered substance misuse services for 18 years.

With funding from the Colyer Ferguson Foundation, we are recruiting dedicated practitioners to identify and work with clients who are the most frequent cause of violent incidents.

The work is centred on one-to-one sessions (using CBT techniques) and group workshops to help clients manage their behaviour in the short term, whilst also tackling the underlying causes of violence (e.g. substance misuse, debt, gambling, involvement in gangs).

The programme will also feature distraction packs (e.g. containing mindfulness exercises, puzzles, and craft materials) and alternative therapies (acupuncture and therapy dogs), alongside visits from More Than My Past ambassadors.

Finally, we are training peer supporters who are positive role models in de-escalation techniques, allowing them to intervene to prevent violence where appropriate.

We are actively looking for other pilot sites for the delivery of this programme and believe this would be a compelling inclusion in any Prison Violence Reduction Strategy.

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Forward Looking – Outlook for 2021 and Beyond

During the period of our last three-year strategic plan, and as a result of the various slowdowns in activity either in respect of accessing charitable income, or securing new contract growth into different sectors., we have continued to operate with a turnover of circa £21m, with over 430 employees and around 140 volunteers.

The restructuring and cost reduction measures undertaken in previous years are now embedded and largely accountable for the relative health of the Charity despite an extremely challenging year, both financially and operationally. We have come through this year stronger and better organised, and we look forward to great things during 2021 and beyond.

Throughout 2021, we have already secured growth through merger and contract wins that will increase our budgeted turnover to in excess of £33m, and we expect to be entering a period of further growth, as new commissioning opportunities emerge post COVID-19, including:

New models of accommodation for clients in recovery, probation service clients and prison leavers.

Whilst our success during the latter part of 2020-21, and the early months of the 2021-22 year will see us hit our original target of increasing turnover to between £30-35 million by 2023 early, we will continue to conduct a wideranging programme of business development over the next 3-year period.

Our expansion plans will continue to be informed by our programme of continuous improvement to our service provision – refining and developing new models of intervention, responding to user feedback, and adding to our sector-leading portfolio of evaluation and outcome research. We are also aware that we have a number of contracts due for re-tender, and our commitment to retaining these remains one of our key priorities.

We will continue to support our mission and contracted service delivery by maximising the promotion of ‘visible recovery’ in all its forms, including recovery from addiction, crime, homelessness, and unemployment – developing and creating role models who demonstrate the possibility and value of recovery and rehabilitation. We will achieve this through continuous expansion of our Forward Connect recovery community, and extending the reach of the ‘More Than My Past’ online campaign.

Mike Trace

Mike Trace

Chief Executive Officer

The Forward Trust

Annual Report and Consolidated Financial Statements 2020-21 17

The Forward Trust For the year ending 31[st] March 2021

FINANCE REPORT

Message from the Treasurer

This Trustees’ Annual Report and Accounts has been produced in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the FRS102 Charity SORP (Statement of Recommended Practice effective 1st January 2019).

The accounts for 2020/21 record a period that has seen the Charity standing up to the significant challenges of operating amidst the considerable impacts of the worldwide COVID-19 pandemic crisis.

Although returning a small deficit for the year (£105k), the Charity can take pride in a hugely creditable performance, particularly when set against the significant additional costs relating to sustaining delivery in the midst of COVID-19 restrictions, as well as dealing with the impact of some of our major funders either cancelling or deferring budgeted income.

We have come through this year with our contracts base intact, and with the appreciation and good will of our commissioners across the board for our co-operation, and for the support we have offered them in sustaining their services through significant challenges.

As ever, and perhaps even more so than previously, this outcome has resulted from carefully and consistently matching the Charity’s resources against its service obligations throughout the year. This has represented particular challenges during this period, and it is testament to the good stewardship of our leaders, and the excellent support provided by our Finance Team, that our outturn for the year was within tolerance of forecast.

As ever, the Charity remains dependent on its fundraising activities, and we pay tribute to all involved for their generosity and dedication in supporting the Charity, particularly through difficult times.

On a personal note, I wish to thank my fellow Trustees and all members of the Executive Team without whose expertise and wisdom the Charity would not find itself in the strong position reported here.

Anthony Hazell

Treasurer

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The Forward Trust For the year ending 31[st] March 2021

Financial Highlights –Forward in Numbers

The Charity’s total income for the period increased slightly to £21.38 million (2020: £21.29 million). This is largely due to a relatively stable period with only a small movement in contract flow throughout the year.

This income derives principally from contracts with local authorities, NHS Trusts or similar institutions, commercial contracts, fundraising activities including trust and grant income.

Income from charitable activities, which represented 94.3% of total income, increased slightly by 0.4% on the previous financial year.

Principal funding resources are explained in the notes to the financial statements.

These funds are directly applied to the delivery of addiction treatment services, accommodation services, mental health, and employability services.

The Statement of Financial Activities (SOFA) shows the analysis of charitable activities split between a number of service offerings.

Substance Misuse/Health & Well-Being Services, Family Services, Recovery Support Services, Residential Rehabilitation Services, Clinical Services, Employment Services, Apprenticeships and Vocational Training Services and activity related to the Forward Enterprise Fund.

The total spending on charitable activities has risen in the period from £20.56m to £21.53m.

Financial Highlights – Key Comparisons

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FT Total Income 2016-2021
£25,000
£22,615 £22,032 £21,324 £21,426
£20,000 £18,255
£15,000
£10,000
£5,000
£-
Total Income £,000
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----- Start of picture text -----
2016/17
2017/18
2018/19
2019/20
2020/21
----- End of picture text -----

----- Start of picture text -----
FT Total Costs 2016-2021
£25,000 £23,313 £22,346
£20,558 [£21,531 ]
£20,000 £17,918
2016/17
£15,000
2017/18
2018/19
£10,000
2019/20
2020/21
£5,000
£-
Total Costs £,000
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The Forward Trust For the year ending 31[st] March 2021

----- Start of picture text -----
FT Annual Surplus 2016-2021 FT Total Assets 2016-2021
£1,000 £831 £4,000 £3,583
£800 £3,500 £3,344
£3,148
£600 £3,000 £2,712
£400 £337 2016/17 £2,452 2016/17
£2,500
£200 2017/18 2017/18
-£698 -£314 £2,000
£- 2018/19 2018/19
-£200 -£105 2019/20 £1,500 2019/20
-£400 2020/21 £1,000 2020/21
-£600 £500
-£800 £-
Total Surplus £,000 Total Assets £,000
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The above comparisons offer a clear representation of how the organisation has maintained performance, even against significant financial headwinds largely due to the pandemic, and in particular the impact of charitable income and costs of keeping our staff and clients safe.

Our contractual base, which constitutes over 94% of total income, remains stable and indeed will grow significantly during the coming year. Despite a small operating loss, we retain a strong and healthy cash and reserves position.

For the 2021-22 financial year, we are budgeting a significant increase in turnover, and a healthy surplus.

Reserves Policy

The General Reserves Policy continues to protect our programme work from the risk of disruption at short notice due to a lack of funds, while at the same time ensuring that we do not retain income for longer than required. The Policy also provides parameters for future strategic plans and contributes towards decision-making. It determines an appropriate target level for general reserves, considering the following factors:

On 31[st] March 2021, the Charity’s General Reserves (excluding designated funds) are £2.63m (2020: £2.71 m) and represent unrestricted funds, excluding funds that have been designated and those funds tied up in fixed assets. The basis of determining the target reserves’ level is kept under periodic review, and will be adjusted as perceptions of risk and other factors change. Our total funds as at 31[st ] March 2021 are £3.15 million (2020: £3.25 million).

There is a degree of judgement involved in identifying risks faced by the Charity and in establishing the appropriate level of reserves that the Charity should maintain to mitigate these risks.

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The Forward Trust For the year ending 31[st] March 2021

The Trustees are of the opinion that the level of reserves is acceptable based on the level of activity, and therefore the appropriate target range for free reserves is between £2.1 million and £4.3 million. This will also provide a buffer should Forward Trust encounter adverse conditions in its market, and on this basis, the Trustees also consider that the Forward Trust has adequate resources to continue the business for the foreseeable future.

Designated Funds (unrestricted)

Designated funds are those unrestricted funds that have been set aside by the Trustees for particular purposes.

The designated funds held at 31[st] March 2021 were £0.47 million (2020: £0.47 million), which are allocated to cover our estimated maximum liability for redundancy payments, potential pension liabilities and dilapidation costs on The Bridges project and other property. Further details of the designated funds and their movements during the year are shown in Note 14 of the accounts.

Restricted Funds

These funds are used for specified purposes, as laid down by the donor. As at 31[st] March 2021, unspent restricted funds were £0.05 million (2020: £0.08 million).

Going Concern

The Trustees consider that there are sufficient reserves held at the year-end to manage any foreseeable downturn in the UK economy (including any future negative impact resulting from the COVID-19 worldwide pandemic), and that the Charity has adequate resources to continue in operational existence for the foreseeable future.

For this reason, the Trustees continue to adopt the ‘going concern’ basis in preparing the accounts.

Key Management Personnel Remuneration

The Trustees consider the Board of Trustees and the Executive Management Team (which includes the Chief Executive Officer) as comprising the key management personnel of the Charity in charge of directing, running, and controlling the Charity, and operating the Charity on a day-to-day basis.

All Trustees give their time freely and no Trustee remuneration was paid during the year. Details of any Trustee expenses and related party transactions are disclosed in Notes 8 and 18 to the accounts.

In deciding appropriate pay levels, The Forward Trust aims to strike a balance between paying enough to recruit and keep people with the skills we need, meeting our contracting partners’ needs, and the public and our supporters’ expectations that the money they entrust us with will be used wisely.

In setting Executive Management Team (ET) pay, the Trustees take account of the skills and experience required for each of the roles, and the remuneration in the sectors from which suitable candidates for such posts would be found. They also take account of affordability for The Forward Trust.

We do not pay bonuses or other incentive payments. Pay increases to the Executive Team and other employees are

reviewed annually subject to good performance and the Charity’s financial position.

The remuneration is also benchmarked against other competitors within the sector of a similar size to ensure that the remuneration is set fairly, and not out of line with that of generally similar roles.

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The Forward Trust For the year ending 31[st] March 2021

Financial Risk Management

Services are subject to contracts; prices of goods are based on market prices; and salary costs are subject to a formal annual review. Our standard payment terms are 30 days. Credit risk on amounts owed by debtors is low.

In terms of liquidity risk, The Forward Trust has no borrowings, and our policies on the management of investments and reserves are set out above.

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MANAGEMENT OF PRINCIPAL RISKS AND UNCERTAINTIES

In delivering our objectives, we face significant risks every day (whether that be to the safety of our staff, to our clients, to our financial health, a duty of care to those that attend our fundraising events etc.).

We have robust procedures to evaluate, design and implement effective measures to reduce both the likelihood and the potential impact of these risks occurring.

Risk Policy

The Forward Trust carries out annual risk identification, assessment, and management analysis. A register of risks has been compiled, with risks scored for likelihood and impact severity.

Risk management strategies and time scales are also established and reviewed at least annually. Individual senior managers or committees are nominated to take responsibility for each key risk, which is reviewed on a quarterly basis.

The Trustees reviewed how risk is managed within the Charity, and the level of reserves that should be held in relation to the principal risks that we face.

The Trustees have also examined other operational and business risks through an organisational risk management process; have identified those risks, which the Charity faces; and confirm that they have established systems to mitigate the significant risks.

Key Risks

For each risk identified, specific actions and performance indicators relating to them are monitored quarterly by the relevant committee. Risks are managed either through Directorate Workplans or by operating a Central Risk Register for those not mitigated by this process. The following major risks were identified at an organisational level for the Charity in 2020/21:

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The Forward Trust For the year ending 31[st] March 2021

Other key components of The Forward Trust’s risk management include:

The Trustees seek to monitor and manage the above risks through a strategic risk register, which outlines each risk’s likelihood, impact, severity, as well as the risk owner and the committee responsible for the risk. These risks are also reviewed on a regular basis and are standing agenda items during monthly supervisions of risk owners and quarterly committee meetings. Internal risks are minimised through a clear authorisation process for all transactions and projects to ensure consistent quality of delivery for all operational aspects of the Charity. These procedures are reviewed annually to ensure that they continue to meet the needs of the Charity.

The Trustees receive regular reports on compliance with regulatory and statutory frameworks including those in respect of the health and safety of staff and clients.

Coronavirus

Throughout this reporting year, the Forward Trust, like all other organisations was impacted by the continued prevalence of Coronavirus (COVID-19), and the restrictions imposed in order to ensure public safety.

The impact of this on our operations has continued to be largely mitigated by a comprehensive management response, continuous review of procedures and risk management, as well as continued new and innovative approaches to service delivery to our clients.

We do, however acknowledge that our ability to create the level of impact on the lives of those engaged with our services has not been as significant as we would have liked.

Annual Report and Consolidated Financial Statements 2020-21 24

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The Forward Trust For the year ending 31[st] March 2021

In financial terms, we have continued to benefit from the fact that the vast majority of our contract income, (which makes up over 94% of our total income), has been protected. This is because our main contract clients are HM Government Agencies such as the NHS and HMPPS, or local authorities.

As the country becomes fully vaccinated, and as the impact and risk from the continuation of COVID-19 restrictions reduces, we anticipate a rebound in our ability to secure our planned and budgeted levels of charitable income, which still represents a small, but important percentage of our total.

Auditor

A resolution proposing the reappointment of Haysmacintyre LLP as the group auditor will be submitted at the Annual General Meeting.

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The Forward Trust For the year ending 31[st] March 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The Forward Trust is a charity registered in England and Wales (Charity Number: 1001701) and a UK company limited by guarantee (Company Registration Number: 02560474). The governing document is the Articles of Association that determine its legal framework. The Charity does not have any share capital.

Board of Trustees (Directors)

As of 31[st] March 2021, the following members of the Board of Trustees were registered as Directors of the Charity:

Chair Hon David Bernstein Treasurer Anthony Hazell Lady Louise Gibbings Hon Isabelle Laurent Dame Benita Refson OBE Ben Houghton Dame Clare Gerada MB BS Andrew Wylie David Riddle

The Directors of the Charity, who are the Charity’s Trustees, form the Board of Trustees which is its ultimate governing body. The Board of Trustees is responsible for ensuring that all activities are within UK law and fall within the agreed charitable objectives. Its work includes governance, setting the strategic direction, ensuring the Charity upholds its values and delivers its objectives, and agreeing the financial plan.

The Board of Trustees reviews a schedule of matters reserved to them and delegates certain responsibilities to the Trustee sub-committees and the Chief Executive Officer. The day-to-day running of the Charity has been delegated to the Executive Management Team (Chief Executive Officer, Chief Operating Officer, Divisional Director of Substance Misuse, Divisional Director of Employment Services and Divisional Director of Business Development).

The Board of Trustees meets quarterly to consider strategic business issues. Each year we approve the annual budget and review the strategic plan of the Charity.

The Trustees and Chair are appointed for an initial period of three years that can be extended for further three-year

terms. Any further extension may be made if it is deemed to be in the best interests of the Charity.

The Trustees are recruited to provide the skills and experience required to govern the Charity. We seek to appoint Trustees from among our Trustees’ network and through external advertisement. Recommendations for appointments are made to the Board by the Chair, which is then ratified by the Board.

New Trustees are provided with information on legal obligations under Charity and Company Law, the Charity Commission’s guidance on public benefit; and the content of the Articles of Association, the committee and decision-

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The Forward Trust For the year ending 31[st] March 2021

making processes, the business plan and recent financial performance of the Charity. New Trustees also spend a day meeting key employees and other Trustees. Trustees are required to complete mandatory training modules and are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.

The Chair is an ex officio member of all Committees. Any Trustee may attend any Trustee sub-committee meeting. The sub-committees each have specific responsibilities on behalf of the Charity as outlined below. They provide counsel, expertise, and support to the Senior Management Team. Individual Trustees also take reasonable steps to ensure there is regular and direct contact between Trustees, staff, volunteers, and people who use our services at a local level. There are annual scheduled visits to Programmes by Trustees with an Executive Management Team member, although these have been suspended during this period due to COVID-19 restrictions.

Finance and General Purposes Sub-committee

During the reporting year, the committee was comprised of the following members: Six Trustees (Tony Hazell (Chair), Ben Houghton, Hon David Bernstein, Hon Isabelle Laurent, David Riddle, and Andrew Wylie), together with the Chief Executive, Chief Operating Officer, Head of Human Resources, and Director of Finance & Commercial.

The Committee is responsible for the oversight of all aspects of the Charity’s financial policies and operations. It monitors the short and long-term financial viability of the Charity, ensuring there are sufficient resources to fund its commitments. The committee reviews and approves for recommendation the Investment and Reserves Policy and monitors the effectiveness of the Charity’s risk management and internal control systems. It reviews the annual financial plans of the Charity and monitors performance against plans, and recommends action where necessary. The Committee also reviews all issues concerning human resources (including sickness, staff turnover, and equality, diversity, and inclusion). It met five times during the reporting year (one of these an extraordinary meeting regarding the merger).

Governance & Quality Assurance Sub-committee

The Committee has responsibility for the implementation and monitoring of effective governance throughout the organisation, including clinical governance. During the reporting year the committee was comprised of the following members: Five Trustees (David Riddle (Chair), Hon David Bernstein, Lady Louise Gibbings, Dame Clare Gerada MB BS, and Dame Benita Refson OBE), the Chief Executive, Chief Operating Officer, Divisional Directors of Services, the Clinical Director and the Head of Governance and Quality Assurance.

A separate Clinical Governance Quality Assurance Forum is responsible for ensuring the collection and analysis of data and other information sufficient to ensure effective clinical governance, ensuring the input of clinical leadership and advice, promoting quality of care, including the safety and wellbeing of service-users, families, and carers. This forum reports into the Governance and Quality Assurance Sub-committee via the Clinical Director.

The Committee is responsible for managing a culture of statutory compliance, as well as processes for managing health & safety issues; facilitating an examination and review of significant events and incidents; ensuring audits of services

are undertaken and acted upon; and ensuring compliance with all legislation and contractual obligations. During the period, the Charity was assessed and achieved accreditation (with zero non-compliance) against ISOs 9001, 14001, and 45001 as well as Cyber Essentials Plus accreditation.

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The Forward Trust For the year ending 31[st] March 2021

Research, Fundraising and Communications Sub-committee

The Committee members include four Trustees (Lady Louise Gibbings (Chair), Hon David Bernstein, Hon Isabelle Laurent, and Dame Benita Refson OBE) and the Chief Executive together with the Divisional Director of Business Development. All the meetings are chaired by a Trustee. The Committee is responsible for providing an effective governance framework for the management of all aspects of the Research, Fundraising and Communications functions of the Charity’s Business Development Division.

Public Benefit Statement

In preparing the report, the Board of Trustees have considered the requirements of the Charities Act 2011 and have satisfied themselves that they have complied with their duty to have due regard to the ‘Public Benefit’ guidance published by the Charity Commission.

We have referred to the Charity Commission’s guidance on public benefit in reviewing our activities and objectives, and in planning future activities. We have reviewed our reporting to ensure our activities clearly indicate public benefit through achievement of our aims.

Our main activities and achievements within these are described in the Chief Executive’s section of this report. Broadly, our activities help advance health and save lives amongst our direct beneficiaries by the provision of treatment and support to rehabilitate substance misusers; we advance citizenship through reintegration support; and we deliver benefits to the wider public through the prevention of crime and destructive behaviour. In addition to the many thousands of prisoners who have received services from the Charity, our programmes have also had a positive benefit for the families of the individuals we directly help, as well as for the wider community though reducing reoffending among some of the most prolific offenders and improving life chances through the delivery of education and vocational training to disadvantaged groups.

Supporting Our Employees and Volunteers

As at 31[st] March 2021 we employed a total of 431 staff, an increase of 1.89% . on the 423 people we employed at 31[st] March 2020.

Achieving the desired transformational changes in our clients will depend on the expertise and motivation of those who work with us, and we have continued throughout the last year with efforts to support our workforce to adapt to the changes in the way that we work.

We have a strong commitment to develop the diversity of our staff and volunteers through equal opportunity policies, training, and practical action. As at 31[st] March 2021 the representation of women in our total workforce was increased slightly to 68.3% . from 66.9%.

The percentage of staff from an ethnic minority decreased slightly to 26.89% of the total workforce for whom their ethnic origin is known.

We remain particularly indebted to the commitment of the 12,164 hours volunteered to us during the year from the 243 volunteers we engaged over the year. Our volunteers work tirelessly in various projects. These incredible people are at the heart of everything that we do.

We calculate the value of these hours to be in excess of £115,565 (based on the Outer London Real Living Wage), and our services and events simply would not be possible without them. The roles

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The Forward Trust For the year ending 31[st] March 2021

vary from project to project, and event to event: it might be a few hours or entire days. Whatever their role, our volunteers generously provide significant amounts of their time to The Forward Trust, and we are enormously grateful.

We are committed to strengthening skills training for all our volunteers, ensuring that they are able to gain new experiences and feel they have a greater connection to our work.

Lived Experience

The Charity is strengthened by the number of people with Lived Experience, both those in recovery from addiction, and ex-offenders who are involved in the day-to-day operations at all levels. This involvement ranges from Board members to ‘peer supporters’ and serving prisoners who volunteer to support our programme delivery. In the year 2020/21, an average of over 38.7% of our paid staff (who identified as such) had their own lived experience of being in recovery from drug or alcohol addiction. This is a significant increase from last year where the figure was 32.5%’

Employee Engagement Forum

The Employee Engagement Forum (EEF) has evolved significantly over the year in response to lockdowns and exploiting the opportunities provided by virtual participation. The forum is now convened via Zoom but remains an important element in our quest to be fully inclusive, championing employee involvement and two-way communication between management and employees.

The EEF provides an opportunity to share information and consult on proposed changes to employees’ contractual terms and conditions and the policies that sit alongside them. It is not intended to replace or undermine other methods and channels of communication, but rather to enhance them. Its purpose is to:

Zoom has allowed us to widen participation in these forums and reach more of our people.

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The Forward Trust For the year ending 31[st] March 2021

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees, (who are also directors of The Forward Trust for the purposes of company law), are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company and charity law requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the Charity and of the net movement in funds and application of resources, including the income and expenditure of the Charity for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity, and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

In so far as we are aware:

The auditor, Haysmacintyre LLP is willing to be re-appointed in accordance with section 485 of the Companies Act 2006.

The Trustees’ Report, incorporating the Strategic Report, was approved, and authorised by the Board of Trustees on 10[th] November 2021 and signed on their behalf by:

Hon David Bernstein Chair of Trustees

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The Forward Trust For the year ending 31[st] March 2021

GOING CONCERN DECLARATION

The Trustees have reviewed the circumstances of The Forward Trust and consider that adequate resources are available to fund the activities of the Charity for the foreseeable future. Twelve-month rolling cashflow projections are included in management’s regular financial reports to Trustees, and income and expenditure is monitored against budget. The Trustees are of the opinion that the Charity and the group are a going concern and the accounts have been prepared on this basis.

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YQ
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Hon David Bernstein Chair of Trustees

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The Forward Trust For the year ending 31[st] March 2021

AUDITOR’S REPORT

Independent Auditor’s Report to The Members of The Forward Trust

Opinion

We have audited the financial statements of The Forward Trust for the year ended 31 March 2021 which comprise the Statements of Financial Activities, the Balance sheet, the Cash flow Statement, and 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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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 work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charitable Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

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Other Information

The Trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report. 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.

Opinions 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 the knowledge and understanding of the Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (which incorporates the strategic report and the directors’ report).

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees for the Financial Statements

As explained more fully in the Trustees’ Responsibilities Statement set out on page 30, 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.

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In preparing the financial statements, the Trustees are responsible for assessing the charitable 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 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.

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:

Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to charity and company law applicable in England and Wale, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to revenue recognition, in particular in relation to income from donations, legacies and income from charitable activities and management override of controls. Audit procedures performed by the engagement team included:

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

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Use of Our Report

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

Murtaza Jessa (Senior Statutory Auditor)

For and on behalf of Haysmacintyre LLP, Statutory Auditors 10 Queen Street Place London EC4R 1AG

Date: 15 December 2021

The Forward Trust

Annual Report and Consolidated Financial Statements 2020-21 35

The Forward Trust For the year ending 31[st] March 2021

STATEMENT OF FINANCIAL ACTIVITIES

Including the income and expenditure accounts for the year ended 31[st] March 2021.

Notes
INCOME
Donations and Legacies
2
Charitable Activities
3
Substance Misuse
Family Services
Young People Services (FEF)
Recovery Support Services
Residential Rehabilitation Services
Clinical Services
Employability Services
Investment Income
Income from Other Trading Activities
Total Income
EXPENDITURE
Costs of Raising Funds
4
Raising Funds
Expenditure on Charitable Activities
4
Substance Misuse
Family Services
Young People Services (FEF)
Recovery Support Services
Residential Rehabilitation Services
Clinical Services
Employability Services
Total Expenditure
Net Income (Expenditure)
Other Recognised Gains and Losses
Actuarial gains on Def Ben Pension Scheme
20/21
Net Movement of Funds
Reconciliation of funds
Total Funds Brought Forward
Total Funds Carried Forward		 Restricted
Funds
£’000
946
-
-
-
-
-
-
-
-
-
946
-
185
25
144
377
106
-
144
981
(35)
-
(35)
82
47		 Unrestricted
Funds
£’000
272
14,788
52
104
1,041
730
1,487
1,854
1
101
20,430
23
15,675
30
(34)
739
677
1,595
1,845
20,550
(120)
50
(70)
3,171
3,101		 2021
Total funds
£’000
1,218
14,788
52
104
1,041
730
1,487
1,854
1
101
21,376
23
15,860
55
110
1,116
783
1,595
1,989
21,531
(155)
50
(105)
3,253
3,148		 2020
Total Funds
£’000
1,310
14,830
55
110
826
578
1,994
1,520
9
63
21,295
17
15,296
56
113
853
597
2,057
1,569
20,558
737
64
801
2,452
3,253

The notes on pages 39 to 58 form part of these financial statements. The statement of financial activities includes all gains and losses recognised in the year. All amounts derive from continuing activities.

The Forward Trust

Annual Report and Consolidated Financial Statements 2020-21 36

The Forward Trust For the year ending 31[st] March 2021

BALANCE SHEET

Company Number 02560474

As at 31[st] March 2021

As at 31[st]March 2021
ASSETS 2021 2020
Notes £’000 £’000
FIXED ASSETS
Tangible Assets 9 1 3
CURRENT ASSETS
Debtors and Prepayments 10 2,877 3,979
Cash at Bank and In Hand 2,285 1,725
5,162 5,704
CREDITORS
Amounts Falling Due Within One Year 11 (2,015) (2,454)
NET CURRENT ASSETS 3,147 3,250
TOTAL ASSETS LESS CURRENT LIABILITIES 3,148 3,253
FUNDS
Unrestricted Funds
General Reserves 14/15 2,632 2,702
Designated fund 14/15 469 469
3,101 3,171
Restricted Funds 14/15 47 82
TOTAL 3,148 3,253

The financial statements were approved and authorised for issue by the Board of Trustees on 10[th] November 2021 and signed on their behalf, by:

Anthony Hazell

.....................................

YQ

...................................

Tony Hazell

Treasurer

Hon David Bernstein

Chairman

The notes on pages 39 to 58 form part of these financial statements.

The Forward Trust

Annual Report and Consolidated Financial Statements 2020-21 37

The Forward Trust For the year ending 31[st] March 2021

CASH FLOW STATEMENT

2021
£’000
£’000
Cash Flows from Operating Activities
559
Cash Flows from Investing Activities
Dividends, Interest and Rents from Investments
1
Purchase of Property, Plant, and Equipment
-
Net Cash Provided By (Used In) Investing Activities
1
Increase (Decrease) in Cash and Cash Equivalents
560
Analysis of Cash and Cash Equivalents
Cash and Cash Equivalent at the Beginning of the Period
1,725
Cash and Cash Equivalent at the End of the Period
2,285
Reconciliation of Net Movement in Funds to Cash Flow Operating Activities
Net income/(expenditure) for the reporting period (as per the statement of financial activities)
Pension Service Cost Net of Finance cost
Depreciation Charges
Dividends, Interest, and Rents from Investments
Decrease (Increase) in Debtors
Decrease (Increase) in Creditors
Net Cash Provided By (Used) in Operating Activities		 2020
£’000
£’000
(519)
9
-
9
(510)
2,235
1,725
2021
2020
£’000
£’000
(155)
737
50
64
2
2
(1)
(9)
1,102
(1,408)
(439)
95
559
(519)		 2020
£’000
£’000
(519)
9
-
9
(510)
2,235
1,725
2021
2020
£’000
£’000
(155)
737
50
64
2
2
(1)
(9)
1,102
(1,408)
(439)
95
559
(519)
(510)
2,235
1,725
2020
£’000
737
64
2
(9)
(1,408)
95
(519)

The notes on pages 39 to 58 form part of these financial statements.

The Forward Trust

Annual Report and Consolidated Financial Statements 2020-21 38

The Forward Trust For the year ending 31[st] March 2021

NOTES TO THE FINANCIAL STATEMENTS

  1. Accounting Policies

Status of the Charity.

The Forward Trust is a charity registered in England, a Limited Company by guarantee without share capital use of 'Limited' exemption limited by guarantee and not having share capital. It is a registered charity with its registered office at Unit 106-7, Edinburgh House, 170 Kennington Lane, London SE11 5DP, and is not liable to direct UK taxation on its charitable activities.

Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of Preparation

The financial statements of The Forward Trust have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Forward Trust meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Going Concern

The Trustees have reviewed the circumstances of the Charity and consider that adequate resources continue to be available to fund their activities for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis.

Income

All income is recognised once the Charity has entitlement to income, it is probable that income will be received, and the amount of income receivable can be measured reliably.

Income is recognised when the Charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably.

Recognition of income is deferred where conditions specify that such income relates to future accounting periods. Where donors specify that funds are for specific purposes such income is included in incoming resources of restricted funds.

The Forward Trust Annual Report and Consolidated Financial Statements 2020-21 39

The Forward Trust For the year ending 31[st] March 2021

Grant Income

Income from Government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received, and the amount can be measured reliably and is not deferred.

Investment Income

Investment income is recognised on a receivable basis once the amounts can be measured reliably.

Donations & Legacies

Income from donations and legacies includes donations and gifts in wills, which are recognised where there is entitlement, probability of receipt and the amount of the gift is measurable. Income from donations, covenants and gift aid includes receipts from fundraising events.

Donations together with the resulting tax credit from gift aid, is credited directly to the statement of financial activities on an accruals basis. Donations and all other receipts (including capital receipts) from fundraising are reported gross and the related fundraising costs are reported in raising funds.

Fund Accounting

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

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes.

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that the settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings.

Cost of raising funds comprises the direct and indirect costs associated in the day-to-day running of a Fundraising Department.

Expenditure on charitable activities includes the costs of all activities undertaken to further the purposes of the charity relating to the strategic vision and their associated support costs.

Direct costs are allocated on an actual basis to the relevant expenditure headings.

Support costs are allocated between expenditure headings on the basis of time spent and the number of staff working on projects and activities. Governance costs are allocated in line with the support costs.

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

The Forward Trust

Annual Report and Consolidated Financial Statements 2020-21 40

The Forward Trust For the year ending 31[st] March 2021

Employee Benefits

Short term benefits

Short term benefits including holiday pay are recognised as an expense in the period in which the service is received.

Employee termination benefits

Termination benefits are accounted for on an accrual basis and in line with FRS102.

Operating Leases

Rentals payable under operating leases are charged to the SOFA on a straight-line basis over the lease term.

The Forward Trust strives to ensure that its property leases are co-terminus with its contracts. Where a property lease is longer than the initial contract, we strive to ensure that break clauses are in place.

Pension Costs

The Charity operates five defined benefit pension schemes on behalf of its employees. The Pension Scheme has been accounted for in accordance with FRS 102.

A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including 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 reporting date less the fair value of the plan’s assets at the reporting date.

The defined benefit obligation is calculated using the projected unit credit method. Annually the Group 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 the estimated period of the future payments

Tangible Fixed Assets

Tangible fixed assets costing over £1,000 are capitalised and included at cost including any incidental expenses of acquisition. Depreciation has been provided on the straight-line method to write off the cost of tangible fixed assets on a straight-line basis over their considered useful economic lives as follows:

°o Furniture, fixtures, and fittings over 3 years 12) Computer equipment over 3 years 12) Motor vehicles & equipment over 3 years

A full year of depreciation is charged in the year of acquisition.

The Forward Trust

Annual Report and Consolidated Financial Statements 2020-21 41

The Forward Trust For the year ending 31[st] March 2021

Financial Instruments

Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost with the exception of investments which are held at fair value. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash equivalents are used as working capital. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes and provisions

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.

Cash and Cash Equivalents

Cash and cash equivalents include cash and short term highly liquid investments

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 the 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.

Share Capital

The Charity has no share capital but is limited by guarantee. The members of the Charity are the Trustees who are also ordinary members. 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.

Taxation

The Charity is registered and therefore is not subject to Corporation Tax on surpluses arising from charitable activities. The Charity is registered for VAT purposes. VAT is paid on inputs (purchases/costs) and is charged to the relevant expense category, unless expressly reclaimable under HMRC guidance.

Judgement in Applying Accounting Policies and Key Resources of Estimation Uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are based on Management’s best knowledge of the amount, events or actions, actual results may ultimately differ from those estimates. The Trustees consider the following items to be areas subject to estimation and judgement.

Annual Report and Consolidated Financial Statements 2020-21 42

The Forward Trust

The Forward Trust For the year ending 31[st] March 2021

Depreciation:

The usual economic lives of tangible fixed assets are based on Management’s judgement and experience. When Management identifies that actual useful lives differ materially from the estimates used to calculate depreciation, that charge is adjusted retrospectively.

As tangible fixed assets are not significant, variances between actual and estimated useful economic lives will not have a material impact on the operating results. Historically no changes have been required.

Pensions:

The Charity has obligations to pay pension benefits to certain employees.

The cost of these benefits and the present value of the obligation depend on a number of factors, including; life expectancy, salary increases, asset valuations and the discount rate on corporate bonds.

Management estimates these factors in determining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends.

2. Income from Donations and Grants

2021 2020
£’000 £’000
Individual Donations 29 29
Other Income 1,112 1,224
Events Income 77 57
1,218 1,310

3. Income from Charitable Activities

Substance Misuse
Family Services
Young People Services (FEF)
Recovery Support Services
Residential Rehabilitation
Clinical Services
Employability Services		 2021
£’000
14,788
52
104
1,041
730
1,487
1,854
20,056		 2020
£’000
14,830
55
110
826
578
1,994
1,520
19,913

The Forward Trust Annual Report and Consolidated Financial Statements 2020-21 43

The Forward Trust

For the year ending 31[st] March 2021

4. Analysis of Expenditure

Direct Other Total
Costs Direct Support Costs
Staff Costs Costs 2021
£’000 £’000 £’000 £’000
Substance Misuse 9,467 4,609 1,784 15,860
Family Services 33 16 6 55
Young People Services (FEF) 66 32 12 110
Recovery Support Services 666 325 125 1,116
Residential Rehabilitation Services 468 228 87 783
Clinical Services 952 463 180 1,595
Employability Services 1,187 578 224 1,989
Cost of Raising Funds 12 11 - 23
12,851 6,262 2,418 21,531
Direct Other Total
Costs Direct Support Costs
Staff Costs Costs 2020
£’000 £’000 £’000 £’000
Substance Misuse 8,921 4,281 2,094 15,296
Family Services 33 16 7 56
Young People Services (FEF) 66 32 15 113
Recovery Support Services 497 239 117 853
Residential Rehabilitation Services 348 167 82 597
Clinical Services 1,200 576 281 2,057
Employability Services 915 439 215 1,569
Cost of Raising Funds 10 7 - 17
11,990 5,757 2,811 20,558

5. Analysis of Support Costs

Substance Misuse
Family Services
Young People Services (FEF)
Recovery Support Services
Residential Rehabilitation Services
Clinical Services
Employability Services		 Executive
& Central
Admin
£’000
607
2
4
43
30
61
76
823		 Resources
£’000
1,003
3
7
70
48
101
126
1,358		 Governance
£’000
174
1
1
12
9
18
22
237		 2021
Total
£’000
1,784
6
12
125
87
180
224
2,418

The Forward Trust

Annual Report and Consolidated Financial Statements 2020-21 44

For the year ending 31[st] March 2021

The Forward Trust

Substance Misuse
Family Services
Young People Services (FEF)
Recovery Support Services
Residential Rehabilitation Services
Clinical Services
Employability Services		 Executive
& Central
Admin
£’000
805
3
6
45
31
108
83
1,081		 Resources
£’000
1,117
4
8
62
44
150
114
1,499		 Governance
£’000
172
-
1
10
7
23
18
231		 2020
Total
£’000
2,094
7
15
117
82
281
215
2,811

6. Governance Costs

Staff Costs
Legal and Professional Fees
Audit Fees and Other Fees Payable to Auditor		 2021
£’000
151
56
30
237		 2020
£’000
200
3
28
231

7. Net Income for the Year

These are stated after charging:

hese are stated after charging:
2021 2020
£’000 £’000
Depreciation 2 2
Auditors Remuneration (excludes VAT) 30 28
Operating Lease Charges
Property 340 435
Other 78 51

The Forward Trust

Annual Report and Consolidated Financial Statements 2020-21 45

The Forward Trust

For the year ending 31[st] March 2021

8. Staff Numbers and Costs

The average number of employees during the year, excluding trustees/directors was:

Charitable
Administration		 2021
£’000
387
52
439		 2020
£’000
362
49
411

Staff Costs Were as Follows:

Salaries and Wages
Social Security Costs
Pension Contributions
Apprenticeship Levy
Operating Costs of the Defined Benefit Pension Scheme
Redundancy and Termination Costs
Other Forms of Employee Benefit (Life, Critical Illness Insurance and Health Plan)		 2021
£’000
12,471
1,246
649
48
50
28
147
14,639		 2020
£’000
11,941
1,171
666
47
64
66
134
14,089

The redundancy and termination costs are accounted for in full during the year.

There are no liabilities at the balance sheet date that relate to ex gratia payments or payments in lieu of notice. The number of employees whose annualised earnings were over £60,000 per annum:

2021 2020
£60,000 - £69,999 6 5
£70,000 - £79,999 4 4
£80,000 - £89,999 1 1
£90,000 - £99,999 2 2
£100,000 - £109,999 1 1

In respect of the higher paid employees above, contributions for the provision of pension benefits totalled £101k (2020: £92k).

The total remuneration of the key management personnel of the of the group, including benefits were £1,331k (2020 £1,125k)

The Key Management personnel of the organisation are the Chief Executive Officer, Chief Operating Officer, Divisional Director of Substance Misuse Services, Divisional Director of Employment Services and Divisional Director of Business Development.

The Forward Trust

Annual Report and Consolidated Financial Statements 2020-21 46

The Forward Trust For the year ending 31[st] March 2021

During the year, no Trustee received any remuneration (2021: £Nil), any benefits in kind (2021: £Nil), or any reimbursement of expenses or amounts that were paid directly to third parties (2021: £Nil).

9. Tangible Assets

Total
(Fixtures, Fittings, Motor
Vehicles and Equipment)
£’000
Cost
At 1stApril 2020 126
Additions in Year -
Disposals -
As at 31stMarch 2021 126
Depreciation
At 1stApril 2020 123
Additions in Year 2
Disposals -
As at 31stMarch 2021 125
Net Book Value
At 1stApril 2020 3
As at 31stMarch 2021 1

10. Debtors: Due Within One Year

Trade Debtors
Other Debtors
Prepayment and Accrued Income		 2021
£’000
2,416
85
376
2,877		 2020
£’000
3,670
95
214
3,979

Annual Report and Consolidated Financial Statements 2020-21 47

The Forward Trust

The Forward Trust

For the year ending 31[st] March 2021

11. Creditors: Amounts Falling Due Within One Year

Trade Creditors
Other Taxes and Social Security
Accruals
Other Creditors
Deferred Income
eferred Income Within One Year
At 31stMarch 2020
Released to Incoming Resources
Income Deferred to a Future Year		 2021
£’000
458
313
368
88
786
2,013
2021
£’000
702
(497)
581
786		 2020
£’000
682
348
566
156
702
2,454
2020
£’000
892
(493)
303
702

12. Deferred Income Within One Year

Deferred income are funds received for charitable activities in future years.

13. Financial Instruments

Cash
Financial Measures that are Debt Instruments Measured at Amortised Cost
Trade Debtors
Other Debtors
Financial Liabilities Measured at Amortised Cost
Trade Creditors
Other Creditors		 2021
£’000
2,285
2,416
85
2,501
458
88
546		 2020
£’000
1,725
3,670
95
3,765
682
156
838

The Forward Trust Annual Report and Consolidated Financial Statements 2020-21 48

The Forward Trust

For the year ending 31[st] March 2021

14. Statement of Funds

Designated Funds
Redundancy & Pension Fund
Works – The Bridges
Works – Head Office
General Funds
Total Unrestricted Funds
Designated Funds
Redundancy & Pension Fund
Works – The Bridges
Works – Head Office
General Funds
Total Restricted Funds		 1st April
2020
£’000
350
30
89
469
2,702
3,171
1st April
2019
£’000
350
30
89
469
1,675
2,144		 Income
£’000
-
-
-
-
20,430
20,430
Income
£’000
-
-
-
-
20,381
20,381		 Expenditure
£’000
-
-
-
-
(20,550)
(20,550)
Expenditure
£’000
-
-
-
-
(19,418)
(19,418)		 Transfers
Gains/Losses
£’000
-
-
-
-
50
50
Transfers
Gains/Losses
£’000
-
-
-
-
64
64		 31st March
2021
£’000
350
30
89
469
2,632
3,101
31st March
2020
£’000
350
30
89
469
2,702
3,171

The Designated Fund represents funds set aside to cover the potential redundancy and pension liabilities towards its staff, refurbishment costs of the Bridges Project in Hull, Head Office in London and funding earmarked for Employment Services employment/training work.

Annual Report and Consolidated Financial Statements 2020-21 49

The Forward Trust

The Forward Trust For the year ending 31[st] March 2021

Summary of Restricted Funds

FY 2020/21
Restricted Funds
The Julia and Hans Rausing Trust
The Saintbury Trust
The Taylor Family Foundation
J Leon Group
Monday Charitable Trust
The Reso Charitable Foundation
The Cyril & Eve Jumbo Charitable Trust
The Big Give
The Mackie Foundation
Michael and Shirley Hunt Charitable Trust
The Souter Charitable Trust
Hull & East Riding Charitable Trust
Shepherd Building Group Ltd
The Liz and Terry Bramall Foundation
The Sir James Reckitt Charity
Joseph and Annie Cattle Trust
HULL County Council
Colyer-Fergusson charitable Trust
Clifford Chance Global Foundation
City of London Corporation
Police & Crime Commissioner for Kent
CHK Charities Limited
Suffolk Community Foundation
The Rayne Foundation
Fowler Smith and Jones Trust
Kent Police
The John Armitage Charitable Trust
Regulatory Settlement, Gambling Commission
The National Lottery Community Fund
Payne-Gallwey Charitable Trust
The Rothschild Foundation
The Aurum Charitable Trust
Symphony Communication services
Other restricted funding		 1 April
2020
£’000
39
17
7
3
3
3
2
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8
82		 Income
£’000
329
-
-
10
6
-
-
3
15
3
3
5
2
50
6
3
15
35
4
11
44
55
10
25
2
6
100
31
5
10
53
77
2
26
946		 Expenditure
£’000
(368)
(7)
(2)
(10)
(3)
(1)
(1)
(1)
(5)
(1)
(3)
(5)
(2)
(50)
(6)
(3)
(15)
(35)
(4)
(11)
(44)
(55)
(10)
(25)
(2)
(6)
(100)
(31)
(5)
(10)
(53)
(77)
(2)
(27)
(980)		 31 March
2021
£’000
-
10
5
3
6
2
1
2
10
2
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7
47

Annual Report and Consolidated Financial Statements 2020-21 50

The Forward Trust

The Forward Trust

For the year ending 31[st] March 2021

FY 2019/20
Restricted Funds
City Bridge Trust
Hans & Julia Rausing
Rothschild Foundation
Liz & Terry Bramhall Foundation
Police & Crime Commissioner for Kent
John Armitage
City of London
Other Restricted Funding
Rayne Foundation
Sainsbury Trust
Kent Police
Millhills Charitable Trust
Holbeck Charitable Trust
Deloite LLP
S Shepherd & S Dickson
Taylor Family Foundation
Sir James Reckitt Charitable Trust
J Leon
Monday Charitable Trust
Banham Foundation
Green Hall Foundation
Reso Charitable Foundation
Joseph & Annie Cattle Trust
Cyril & Eve Jumbo Charitable Trust
Barclays Grant
Tempest of Brough Charitable Trust
Goldsmiths
Paul Stephenson Memorial trust
W.L. Pratt Charitable Trust		 1 April
2019
£’000
23
285
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
308		 Income
£’000
-
453
82
50
45
40
32
25
25
25
17
16
15
26
12
10
6
5
5
4
4
4
3
3
2
2
1
1
1
914		 Expenditure
£’000
(23)
(699)
(82)
(50)
(45)
(40)
(32)
(17)
(25)
(8)
(17)
(16)
(15)
(26)
(12)
(3)
(6)
(2)
(2)
(4)
(4)
(1)
(3)
(1)
(2)
(2)
(1)
(1)
(1)
(1,140)		 31 March
2020
£’000
-
39
-
-
-
-
-
8
-
17
-
-
-
-
-
7
-
3
3
-
-
3
-
2
-
-
-
-
-
82

Annual Report and Consolidated Financial Statements 2020-21 51

The Forward Trust

The Forward Trust For the year ending 31[st] March 2021

The purpose of restricted funds are:

The Souter Charitable Trust Funding towards the core costs of the Bridges Hull & East Riding Charitable Trust Funding towards the core costs of the Bridges Shepherd Building Group Ltd Funding towards the core costs of the Bridges The Liz and Terry Bramall Foundation Funding towards the core costs of the Bridges The Sir James Reckitt Charity Funding towards the core costs of the Bridges Joseph and Annie Cattle Trust Funding towards the core costs of the Bridges HULL County Council Funding for Adult Social Care Lateral Flow Testing Grant HULL County Council Funding for Adult Social Care Infection Control Grant The Big Give Funding towards the costs of Family Services across the Surrey prisons Monday Charitable Trust Funding towards the costs of Family Services across the Surrey prisons The Mackie Foundation Funding towards the core costs of family Services Michael and Shirley Hunt Charitable Trust Funding towards the core costs of family Services The Saintbury Trust Funding towards the core costs of family Services The Taylor Family Foundation Funding towards the core costs of family Services The Reso Charitable Foundation Funding towards the core costs of family Services The Cyril & Eve Jumbo Charitable Trust Funding towards the core costs of family Services Colyer-Fergusson charitable Trust Funding for Violence reduction programme at HMP Swaleside Clifford Chance Global Foundation Funding towards care packages for clients in HMP Brixton City of London Corporation Funding towards the core costs of Recovery Support Services Police & Crime Commissioner for Kent Funding towards the core costs of Recovery Support Services The Julia and Hans Rausing Trust Funding towards the core costs of Recovery Support Services CHK Charities Limited Funding towards the core costs of Recovery Support Services Suffolk Community Foundation Funding for Recovery & Reintegration Worker in Suffolk Police & Crime Commissioner for Kent Funding for East Kent Violence Reduction Peer Mentor Initiative The Julia and Hans Rausing Trust Funding towards the core costs of East Kent Recovery The Rayne Foundation Funding towards the core costs of Housing & Resettlement Fowler Smith and Jones Trust Funding for Recovery & Resettlement Worker HES Prisons Kent Police Funding towards the core costs of East Kent The John Armitage Charitable Trust Funding towards the core costs of Surrey HMP Caesars Entertainment UK Funding towards National Strategy - Gambling Harms CHK Charities Limited Funding towards the development of a recovery programme for young people J Leon Group Funding for Online Chat Service The National Lottery Community Fund Funding for Digital Communications Services Payne-Gallwey Charitable Trust Funding towards the core costs of Blue Sky Services The John Armitage Charitable Trust Funding towards the core costs of Employment Services The Rothschild Foundation Funding towards the core costs of Employment Services The Aurum Charitable Trust Funding towards the core costs of Employment Services Symphony Communication services Funding towards the core costs of Employment Services

Annual Report and Consolidated Financial Statements 2020-21 52

The Forward Trust

The Forward Trust For the year ending 31[st] March 2021

CHK Charities Limited

The Julia and Hans Rausing Trust The Aurum Charitable Trust Aurum Charitable Trust Symphony Communication services CHK Charities Limited Hans & Julia Rausing Aurum Charitable Trust The Souter Charitable Trust

Funding towards the core costs of Employment Services Funding towards the core costs of the Forward Enterprise Fund Funding towards the core costs of the Forward Enterprise Fund Funding towards the core costs of Employment Services Funding towards the core costs of Employment Services Funding towards the core costs of Employment Services Funding towards the core costs of the Forward Enterprise Fund Funding towards the core costs of the Forward Enterprise Fund Funding towards the core costs of the Bridges

15 . Summary of Funds

Designated Funds
General Funds
Total Restricted Funds		 1st April
2020
£’000
469
2,702
82
3,253		 Income
£’000
-
20,430
946
21,376		 Expenditure
£’000
-
(20,550)
(981)
(21,531)		 Transfers
Gains/Losses
£’000
-
50
-
50		 31st March
2021
£’000
469
2,632
47
3,148

16. Analysis of Net Assets Between Funds

At 31st March 2021
Fixed Assets
Current Assets
Current Liabilities
At 31st March 2020
Fixed Assets
Current Assets
Current Liabilities		 Restricted
Funds
£’000
-
47
-
47
Restricted
Funds
£’000
-
83
-
83		 Unrestricted
Funds
£’000
1
5,115
(2,015)
3,101
Unrestricted
Funds
£’000
2
5,622
(2,454)
3,170		 Total
Funds
£’000
1
5,162
(2,015)
3,148
Total
Funds
£’000
2
5,705
(2,454)
3,253

The Forward Trust Annual Report and Consolidated Financial Statements 2020-21 53

The Forward Trust For the year ending 31[st] March 2021

17. Operating Lease Commitments

At 31[st] March 2021, the Charity’s future minimum operating lease payments are as follows:

BUILDINGS
Leases That Expire:
Within One Year
Two to Five Years
Over Five Years		 2021
£’000
234
27
-
261		 2020
£’000
293
216
-
509

During the year, the Charity incurred rental costs in respect of assets under operating leases of £340k (2020: £435k).

18. Related Party Transactions

There were no related party transactions in the year.

Donations from Trustees in aggregate were £2.6k (2020: £4.6k).

19. Pensions

The Charity contributes to both defined contribution and defined benefit pension schemes for its employees. All defined benefit schemes are closed to new entrants and the numbers of active members can only grow as a result of the transfer of staff from other organisations (TUPE).

The Charity contributes to a number of schemes: Group Personal Pension Plan managed by Aviva, NHS Pension Scheme managed by NHS Pensions, Shropshire County Pension fund managed by Shropshire Council, Civil Service Pension managed by The Cabinet Office and The Prudential Platinum Pension Scheme. The Group Personal Pension Plan managed by Aviva is a defined contribution plan.

The NHS Pension Fund is a closed defined benefit scheme specific to employees TUPEd who were members of a NHS Pension Scheme at the time of transfer. Shropshire County Pension is a closed defined benefit scheme applicable to employees TUPEd who were members of Shropshire Pension Scheme at the time of transfer. Civil Service Pension Scheme is a closed defined benefit scheme applicable to employees who were members of the Civil Service Pension Scheme at the time of transfer.

The Charity participates in ‘Prudential Platinum Pension – The Forward Trust’, a funded defined benefit statutory pension scheme in the UK which is contracted out of State Second Pension. This scheme was set up to ensure that we provide a comparable scheme for staff who are TUPEd with final salary pension rights. The assets of all pension schemes are held separately from those of the Charity.

Pension costs charged in the Statement of Financial Activities represent all the contributions payable by the Charity for the year together with any material provision to record the Charity’s liability in relation to a defined benefit pension scheme, where this can be identified, in accordance with the accounting standard incorporated in FRS102.

The Forward Trust

Annual Report and Consolidated Financial Statements 2020-21 54

The Forward Trust For the year ending 31[st] March 2021

20. Pensions: Prudential Platinum Pension – The Forward Trust

Prudential Platinum Pension is a centralised scheme which is available to employers throughout the United Kingdom. Each participating employer (or group company arrangement) has its own ring-fenced section and accordingly there is no cross subsidy between employers, other than in a group company arrangement.

The Scheme provides retirement and death in service benefits for Members and their Dependants. It is a defined benefit scheme which means that the benefits under it are calculated on a pre-determined basis specified in the Scheme’s rules.

The Scheme, which is legally and financially separate from the employers, is constituted by a Trust Deed and is administered in accordance with the rules by the Trustees. The Forward Trust is legally bound by a Deed of Adherence to the Scheme and became a participating employer with effect from 18 May 2012.

Note 20 to the Financial Statements reflects the position appropriate to The Forward Trust for the purposes of the UK pensions accounting standard FRS 102. It does not reflect the position of any other participating employer in the Prudential Platinum Pension Scheme. The costs and balance sheet items in respect of the Charity’s other pension arrangements are included elsewhere in the Charity's disclosures.

The Prudential Platinum Pension scheme is set up on a tax relieved basis as a separate trust independent of the Charity and supervised by an independent Trustee. The Trustee is responsible for ensuring that the correct benefits are paid, that the Scheme is appropriately funded and that Scheme assets are appropriately invested.

This scheme provides pensions and lump sums to members on retirement and to their dependants on death. Members who leave service before retirement are entitled to a deferred pension.

Active members of the Scheme pay contributions at a rate based on their pensionable pay and the Charity pays the balance of the cost as determined by regular actuarial valuations. The independent trustee is required to use prudent assumptions to value the liabilities and costs of the scheme whereas the accounting assumptions must be best estimates.

The liabilities for this year’s accounting disclosures have been calculated by rolling forward the 31 December 2015 liabilities from that valuation date to 31 March 2021 allowing for member movements and cash-flows and using the assumptions set out below. The figures in the following disclosure were measured using the Projected Unit Method.

The amounts recognised in the statement of financial position are as follows:

Defined Benefit Obligation
Fair Value of Plain Assets
Net amount recognised year end (before any adjustment for deferred tax)
Adjustment of Non-Recognition of Surplus		 2021
£’000
(561)
711
150
150
(150)		 2020
£’000
(354)
674
320
320
(320)

The amounts recognised as comprehensive income are:

The Forward Trust Annual Report and Consolidated Financial Statements 2020-21 55

The Forward Trust For the year ending 31[st] March 2021

SERVICE COST
Current Service Cost (Net of Employee’s Contributions)
Administration Expenses
Loss (Gain) on Plan Introductions, Changes, Curtailments and Settlements
Net Interest Expense (Credit)
Change (Credit) Recognised in Profit and Loss
Change (Credit) Recognised in Profit and Loss
Re-measurements of the Net Liability
Return on Scheme assets (Excluding amounts Included in Net Interest Expense)
Actuarial Gains (Losses)
Credit Recorded on Other Comprehensive Income
Total Defined Benefit Cost
he Principal Actuarial Assumptions Used Were:
Liability Discount Rate
Inflation Assumption – RPI
Inflation Assumption - CPI
Rate of Increase in Salaries
Revaluation of Deferred Pensions - CPI
Increases for Pensions Payment - CPI
Expected age of Death of Current Pensioner at Age 65:
Male Aged 65 at Year End
Female Aged 65 at Year End
Expected age of Death of Future Pensioner at Age 65:
Male Aged 45 at Year End
Female Aged 45 at Year End		 2021
£’000
13
44
-
(7)
50
2021
£’000
-
(10)
189
179
229
2021
%
2.1
3.1
2.1 / 2.9
2.6 / 3.4
2.1 / 2.9
2.1 / 2.9
87.2
89.5
88.5
90.9		 2020
£’000
13
43
12
(4)
64
2020
£’000
50
(15)
(107)
(72)
(58)
2020
%
2.2
2.3
1.5
2.0
1.5
1.5
87
89.4
88.7
91.1

The Principal Actuarial Assumptions Used Were:

The Forward Trust Annual Report and Consolidated Financial Statements 2020-21 56

The Forward Trust

For the year ending 31[st] March 2021

Reconciliation of Scheme Assets and Liabilities
At Start of Period
Benefits Paid
Administration Expenses
Current Service Cost
Contributions from the Employer
Contributions from the Employees
Interest Income (Expenses)
Return on Assets (Excluding Amount Included)
Net interest Expense
Actuarial Gains (Losses)
At End of Period
The Return on Plan Assets Was:
Interest Income
Return on Plan Assets (excluding amounts included in net interest expense)
Total Return on Plan Assets		 Assets
£’000
674
(4)
(44)
-
59
1
15
10
-
-
711		 Liabilities
£’000
(354)
4
-
(13)
-
(1)
(8)
-
(189)
-
(561)
2020
£’000
15
10
25		 Total
£’000
320
-
(44)
(13)
59
-
7
10
(189)
-
150
2019
£’000
15
15
30

The Scheme has no investments in the Charity on property occupied by the Charity.

The Major Categories of Scheme Assets are as Follows:

Corporates
Index Linked
Total Market Value of Assets		 2020
£’000
366
344
710		 2019
£’000
337
337
674

21. Post Balance Sheet Events

On 1st May 2021 Forward Trust merged with another addictions charity, Action on Addiction. The merger between Forward Trust and Action on Addiction presents an opportunity to strengthen our mission and its implementation through service provision, campaigning and awareness raising. The merger will add circa £5m to Forward Trust turnover and £3.7m (see note to RHS) to our Balance Sheet, predominantly through the transfer of three freehold properties.

In February 2021, Forward was successful in bidding for 12 new contracts to deliver probation services as part of HMPPS Dynamic Framework across the UK. 9 of these are delivering Personal Wellbeing services to probation clients across the East of England, Kent, Surrey, Sussex as well as Cheshire and 3 are delivering accommodation services in South Wales, Gwent, and Dyfed Powys. These 42 month contracts are valued at circa £17.2m.

The Forward Trust

Annual Report and Consolidated Financial Statements 2020-21 57

The Forward Trust For the year ending 31[st] March 2021

REFERENCE AND ADMINISTRATIVE DETAILS

The Forward Trust is a charitable company limited by guarantee.

Charity Number: 1001701 Company Number: 02560474 Trustees/Directors Chair Hon David Bernstein Treasurer Anthony Hazell Lady Louise Gibbings Hon Isabelle Laurent Ben Houghton Dame Benita Refson OBE Rev John Wates OBE (Resigned August 2020) John Mason (Resigned November 2020) Andrew Wylie David Riddle Dame Clare Gerada MB BS COMPANY SECRETARY John Biggin OBE PATRONS Tony Adams MBE The Revd. Jonathan Aitken Chris Difford Roger Graef OBE Sir Anthony Hopkins CBE Erwin James Mick May OBE Jonathan Pryce CBE The Hon. Emma Soames

The Forward Trust Annual Report and Consolidated Financial Statements 2020-21 58

The Forward Trust For the year ending 31[st] March 2021

FOUNDERS Jonathan Wallace Jonathan Wallace
Peter Bond
Michael Meakin
BUSINESS ADDRESS/ Unit 106, Edinburgh House
REGISTERED OFFICE 170 Kennington Lane
London SE11 5DP
KEY MANANGEMENT Michael Trace Chief Executive Officer
PERSONNEL John Biggin OBE Chief Operating Officer
Jason Moore Divisional Director of Substance Misuse Services
Asi Panditharatna Divisional Director of Employment Services
Carwyn Gravell Divisional Director of Business Development.
BANKERS HSBC
The Peak
333 Vauxhall Bridge
Victoria
LondonSW1V 1EJ
AUDITOR HAYSMACINTYRE LLP
Chartered Accountants & Registered Auditors
10 Queens Street Place
London EC4R 1AG
SOLICITORS BATES WELLS & BRAITHWAITE
10 Queens Street
London EC4R 1BE

The Forward Trust

Annual Report and Consolidated Financial Statements 2020-21 59