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2021-03-31-accounts

Registered number: 01984355 Charity number: 1010796

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MARCH 2021

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the Company, its Trustees and advisers 1
Trustees' report 2 - 16
Independent auditors' report on the financial statements 17 - 20
Statement of financial activities 21
Balance sheet 22 - 23
Notes to the financial statements 24 - 40

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE PERIOD ENDED 31 MARCH 2021

Trustees C Bailey, Chair
P J Le Rasle
B Streader M.B.E.
S Hussain (resigned 15 September 2020)
F Vawda
L Kowalczyk
Company registered
number
01984355
Charity registered
number
1010796
Registered office
5 -11 Ellingham Road
Leytonstone
London
E15 2AU

Page 1

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE PERIOD ENDED 31 MARCH 2021

This is the first report together with the audited financial statements presented by the Trustees since the alteration of the accounting period undertaken in January 2020. Historically, at a time when it received significant ESF funding, Ellingham’s financial year mirrored the European financial year. However, since that is no longer applicable, Trustees unanimously agreed to revert to the UK financial period of April to March. This report therefore covers the period 1 January 2020 to 31 March 2021.

Since the company qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required.

We must report the resignation of Mrs. Saira Hussein from the Board of Trustees in September 2020. As the parent of an Ellingham client, Saira provided a valuable long-standing liaison role between parents and the Board. She leaves with the Board’s grateful thanks for her long years of service. Also, at the AGM in 2020, Mrs. Fatima Vawda stood down from the role of Hon. Secretary, and the Board are extremely grateful that she will remain on the Board. Mr. Lucas Kowalczyk was elected to the position of Hon Secretary.

The Board are also pleased that they were able to appoint Mrs. Helen Gore as Chief Operating Officer in May 2020.

Several major changes impacted on Ellingham’s work during 2020, with the unanimous decision by Trustees at the end of 2019 to come to a mutually agreed termination of DWP Work & Health Programme contract with Maximus People Services on top of which staff & clients had to deal with the impact of the Covid-19 pandemic (further details below). Trustees are extremely saddened at the loss of the dedicated team of Employment staff who had run the DWP work preparation courses for many years, but wish them well in their futures. The whole Board of Trustees must extend its overwhelming gratitude to all its staff team for the handling of these events, during which they all showed their commitment to the well-being & protection of Ellingham’s clients, and their flexible approach to finding ways to support clients, and each other, during this extremely difficult time and to their hard work to ensure a safe, prompt return to services in line with government instructions. The Board would like to thank London Borough of Waltham Forest for its accelerated programme of staff vaccinations which saw the entire Ellingham team to be among the first front line care support staff to receive their inoculations. Staff continue to undertake LCF & PCR tests weekly and follow social distancing and safety & hygiene guidelines with clients to safeguard everyone, with a weekly deep clean of premises to maintain health of all. Trustees would also like to thank the Finance & Development team for the strict financial controls and successful external funding applications received that enabled Ellingham to sustain its financial viability during this year. Trustees continue to be extremely impressed with the prompt reactive responsiveness its dedicated staff team makes when needed for the benefit of our clients.

Page 2

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

Objectives and activities

a. Policies and objectives

The main objectives and activities for the year had been to focus upon the excellent work carried on from previous successful years, but these had to be extensively modified due to Covid-19 restrictions:

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

Page 3

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

Objectives and activities (continued)

b. Strategies for achieving objectives

Partnership Working

The Trustees are proud of the current work that is being undertaken in the field of working partnerships. The Board also recognise that this strategy is key to its future development and in particular essential to long term funding as the major Funders are now requiring a partnership procedure to ensure successful bids for finance and grants. These working partnerships continued electronically during the Covid-19 closure period.

New for 2020 was the creation of a CIC partnership with SEND Coffee, an initiative developed through the Supported Intern programme, whereby Ellingham is the benefitting charity of all profits generated by the CIC. Unfortunately, due to trading restrictions during Covid-19 this is likely to be delayed.

Representatives from Ellingham continue to be members of the following groups, although meetings held electronically:

Member of Work Redbridge, a partnership led by Redbridge Regeneration team, which has developed a Strategy and an Action Plan which aims to address unemployment and low skill levels, to support business growth, and to help businesses recruit people with the right skills to meet their needs;

Member of Redbridge & Waltham Forest Learning Disability Partnership Day Opportunities Forum;

It is with great pleasure to report that Rosemary Clark, Manager of I Can Ventures, continued in the role as Chair of the Newham Learning Disability and Autism Provider Forum.

Close working with Hackney Learning Trust and 6th form Colleges in the delivery of Ellingham’s Supported Internship-style programme.

Such partnerships enrich the work of the Organisation and open potential opportunities for broadening its scope for development, as well as establishing closer working and meaningful links within the Community.

It is a strategic part of the Ellingham infrastructure that Partnerships will continue.

Page 4

ELLINGHAM EMPLOYMENT SERVICES (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

Objectives and activities (continued)

c. Activities undertaken to achieve objectives

Ellingham’s unique selling point is that we recognise that there is no single route to assisting people with learning disabilities and/or associated physical and/or sensory disabilities attain & maintain their potential goals. Therefore, Ellingham has developed a range of activities according to client’s requirements and needs:

• I Can Ventures (ICV) – services for people with more complex barriers and higher support needs. Activities include a full range of day opportunities, accredited and non accredited training activities, advocacy and peer support services. All activities have a meaningful purpose as a way of maintaining skills learned and developing new ones.

• Supported Internships (Forward Work Directions - FWD) – based on our experience of working with several local colleges in recent years, Ellingham developed its own in-house programme. Whilst the mainstream Supported Internship programme is one type of study programme specifically aimed at young people aged 16 to 24 who have a statement of special educational needs, a Learning Difficulty Assessment, or an EHC plan, who want to move into employment and need extra support to do so, Ellingham staff have created a tailored programme for those clients who required additional support to those who can access the mainstream programme, thereby filling a gap in client need.

• DWP Access to Work – is a tailored practical support programme to people who have a disability, health or mental health condition to enable them to start work, stay in work or to move in self employment.

d. Main activities undertaken to further the Company's purposes for the public benefit

The main areas of Charitable activities are the provision of vocational training (accredited & non accredited), vocational guidance and supported employment to people who have learning disabilities and/or associated physical, sensory and mental health needs. We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future projects. Our main activities, who we try to help, and who used and benefited from our services are described below.

Ellingham has made significant developments in its in house training strategies, which is assisting many people with severe disabilities to understand the complexities of the world of work, prior to placing them into valued and meaningful work experience. These programmes have been designed by the specialist staff teams to enhance their skills, provide confidence and equip the clients with a positive outlook and motivation, which will enable them to compete in an ever demanding and sometimes hostile world of work.

Previous comments have been made in this report on the growing development of Partnerships with other Agencies and Funding Bodies, and this scenario is one that the Board are keen to expand.

Page 5

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

Achievements and performance

a. Key performance indicators

Page 6

ELLINGHAM EMPLOYMENT SERVICES (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

Achievements and performance (continued)

b. Review of activities

FINDINGS ON THE IMPACT OF COVID-19

Trustees were already aware that 2020 might be a difficult financial year with the loss of the Work & Health Programme, but financial predictions showed that the financial savings outweighed the predicted loss. They were also confident as Reserves levels were beginning to improve once all the new building work had been completed and with the increased income to I Can Ventures and the expansion of services with the Forward Work Directions department with increased contracts for supported internship programmes. Access to Work was predicted to remain steady.

Ellingham is in the fortunate position in that despite being a charity it does not rely on fundraising for income, instead it is funded through contracts.

The Board acted very swiftly in March 2020 following Government guidelines regarding shutdown of all nonessential services. With the Senior Management Team, plans were put in place to ensure that all clients & staff remained well and safe. Resolutions were passed by the Board to enable media meetings to take place instead of face to face ones, and that, if necessary, the restricted reserves could be used to assist cashflow, on the understanding that those levels of finance were to be replaced as soon as possible and the restrictions put back in place.

As a result:

In preparation for re-opening, Ellingham staff again overwhelmed Board expectations in their urgent need to make the facilities as safe as possible for clients and staff in line with government guidelines at all time.

As a small gesture to show their appreciation of Ellingham’s greatest asset – its staff – Trustees continued to focus on ensuring that staff (particularly those isolating through furlough) were fully supported, not only by management & team members but by ensuring they were aware of Ellingham’s Employee Assistance Programme, a 24-hour freephone service through Health Assured confidential life management and personal support service available to all staff. Through the phased return to work, the introduction of flexible/hybrid working is being considered across all departments as appropriate.

Page 7

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

Achievements and performance (continued)

I Can Ventures - 2019 saw the start of development and expansion of in-house & community-based services for a greater number of clients with learning disabilities, enabling staff to work with clients with more complex needs. Plans for further development in 2020 were put on hold March 2020 with the total closure of in-house services due to Covid-19 pandemic. However thanks to the flexible & innovative approach staff had to ensuring the well-being of all clients during this difficult time, successful approaches were made to London Community Response Fund to enable a new outreach service to be established whereby weekly contact was made by phone or Zoom with all clients and the families, and monthly work-packs & competitions were created & posted to all. By remaining in close contact, staff were able to offer support and in some cases signpost families for additional support as required, whilst maintaining strict hygiene observances. As lockdown was lifted, “doorstep” visits were undertaken by staff to be with clients in person, again observing strict social distancing.

To ensure social distancing, client numbers for attendance has had to be reduced, which will possibly have an impact on potential income for 2021/22, depending on government guidelines. However, staff have tirelessly negotiated alternative day placements/support for those clients unable to yet return to Ellingham’s services. Activities for returning clients have been modified to following guidelines of social distancing. Staff are also noticing an increase in anxiety and mental health issues amongst clients and families, which too is leading to a change in approach to Ellingham’s services with signposting to additional support services as required.

To publicise all the new activities within I Can Ventures, and to promote all the other services we offer, Ellingham is making full use of the revamped website & social media platforms created through the work undertaken with Raising IT.

In addition, Ellingham’s programmes during 2020 also included:

DWP Work & Health Programme – At the end of 2019, Trustees made the unanimous decision with Senior staff to negotiate a mutual termination of this contract with Maximus People Services. This was an extremely hard decision to make as it would mean the loss of 20+ years of service delivery of DWP work preparation programmes and the loss of a dedicated team of loyal staff. The contract was finally concluded end-March 2020, coinciding with Covid-19 lockdown, with the team being TUPE-ed to the new contractor.

Supported Internships – As a result of the previous successes, under contract to Hackney Learning Trust, Ellingham is running an in-house “supported internship”-style programme, but aimed at clients with higher support needs, who would not be eligible for the statutory programme. Due to Covid shutdown, staff remained in contact with learners electronically undertaking some distance learning. Unfortunately, learners were unable to undertake any work experience placements, a key part of the programme, so have been granted a 6-month extension to their course.

Whilst FWD have been delivering this programme through a small contract with Hackney Learning Trust for the past 3 years, during lockdown the contract was put out to open tender. We are extremely pleased to say that Ellingham has been awarded as sole external contractor for the 2-year contract (with a rolling 2-year extension) for up to double the number of learners. Contract is to start September 2021.

In addition to the tailored programme, the new initiative working with a Jewish Orthodox school & a local employer, which saw the development of a specific supported employment/internship programme to benefit the clients and the employer, saw all learners offered paid employment September 2020.

New for 2020/21 academic year was a pre-internship programme aimed at those learners in their final year of specialist college. Due to social distancing, this started in the college, but as lockdown measures lifted, so the learners were able to undertake their learning at Ellingham’s premises. Due to the success of this initial programme, negotiations are underway to explore developments for academic year 2021/22.

Page 8

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

Achievements and performance (continued)

c. Factors relevant to achieve objectives

With the ever growing concerns from the Board regarding long term financial security, an issue regularly reported in the Trustees annual reports, Ellingham has continued to be an effective service deliverer in the supported employment and vocational training field. The difficulty of this insecurity has meant planning and development of the Organisation has been down to minimal longevity to programmes and staff remaining on annual contracts, this is despite the Organisation having a wide range of contracts with a diverse group of Statutory funding bodies.

The Finance and Development section work tirelessly to ensure that funding appropriate to the organisation’s principles is explored, and partnership working is proving successful in this area, although major funding streams, especially from DWP are no longer available as a direct finance source for an organisation as Ellingham, as the Department seeks to offer contracts solely through major Prime Contractors.

The lack of longer term funding and financial resources has always been a particular weakness in the Trustees view of strategic planning and development of its services, its nature of being one of the more respected and experienced employment services in the Greater London region has encouraged funders to invest in its work, however, such conditions will need to be marketed in a totally different way if this level of funding is to be sustained.

d. Investment policy and performance

The Board continue to strongly refuse any sums for deposit that have risk potential, as in stocks and shares and other volatile/risk-based funds and will continue to desist from speculating in such practices.

2018 saw a major impact on Ellingham’s reserves due to the shortfall in funding from BIG Lottery for the new building and as a result Ellingham’s reserve levels have dipped to below the levels as set by the Reserves Policy. However, the contingencies made by Trustees to prudent longer-term financial planning (i.e. reduction in use of rental properties, smaller staff teams, budgetary controls, minimising bad debt through non payment of invoices) and proved successful in that despite the financial difficulties during 2020/21 due to Covid-10 restrictions, the period ended with higher reserves that at the start. However, Ellingham still awaits information regarding the debt from Working Links’ Administrators.

Financial review

a. Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

Page 9

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

b. Reserves policy

It is agreed that Ellingham Employment Services will ring fence and hold reserves that will enable more accurate and prudent control of its resources. These reserves will be to cover the contingencies of:

In addition, the Directors may decide from time to time to divert reserves to cover capital expenditure to facilitate the start of a new project, or to build up additional funds to cover a long term capital project, such as refurbishment of buildings, such levels to be decided by the Board of Directors under the guidance of the Treasurer.

The Board will reserve amounts as it sees necessary in line with the Charity Commission’s recommendations of 3 months to 2 years operating costs as good financial practice. The amounts will vary, as dictated by external influences that decide the levels of income through funders and grant making authorities which are outside the control of the Board of Directors, although every effort must be made to ensure that levels do not fall below 3 months operating costs at any time. For the year 2021/22, it is anticipated that this sum will be in the region of £270,000. Based on the annual audited accounts to March 2021, the Reserves held were below the level set down in this Policy, although actual cash in the bank was higher than the previous year. The level of trade debtors had increased from the previous year, despite best efforts to attain timely payment.

Reserves will be invested to earn the best interest, yet with reasonable access to funds, the interest being added to increase the capital thereby adding to reserves. Levels of reserves will be reported to the Board of Directors quarterly as part of the financial report.

These actions will empower the Board of Directors to exercise its authority to ensure the continuation of the financial security of the organisation, through its Instruments of the Memorandum and Articles of Association.

Page 10

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

c. Principal funding

Due to the extensive range of services that Ellingham offers to enhance the skills of the clients it serves, we therefore have a wide range of funding streams to finances these services.

For financial prudence, all areas are self financing, with management costs proportioned to each department to finance such areas.

Page 11

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

Structure, governance and management

a. Constitution

The company is registered as a charitable company limited by guarantee and was set up by a Trust deed.

The company is constituted under a Trust deed and is a registered charity number 1010796.

The principal object of the charitable company is to relieve the need of people with learning and/or physical disabilities, in particular, but not exclusively by the provision of accredited and/or vocational training, sheltered and supported work placements in the Greater London area.

In the event of the Company being wound up Members are required to contribute an amount not exceeding £1.

b. Methods of appointment or election of Trustees

The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed.

The management of the charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association.

Under the terms of the Memorandum and Articles of Association the Trustees are elected to serve on an annual basis after which they must be re-elected at the next Annual General Meeting.

Due to the work undertaken at Ellingham, its function is to support people who have a range of learning and associated physical and sensory disabilities into employment. The Trustees are recruited on their empathy and direct understanding of people with learning disabilities, and on the Board, are representatives from parents/carers to fulfil this role, in addition to those with professional experience in this field.

Page 12

ELLINGHAM EMPLOYMENT SERVICES (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

Structure, governance and management (continued)

c. Organisational structure and decision-making policies

All Trustees carried out their duties well, undertaking the restructuring of I Can Ventures department to meet the changing needs of the clients. The Trustees (& SMT) also undertook a self-assessment to measure its governance and leadership skills. Based on the NCVO tool, an Action Plan for development was put in place for 2020 but was interrupted due to Covid-19 shutdown.

The structure of the day to day responsibility for the provision of the charity's services resting with all members of the Senior Management Team, who also have responsibility for ensuring the respective areas of its sections operate in accordance with Team goals/targets is working exceeding well. This, together with individual supervision and annual staff appraisal of the staff team and also ensuring that the team continue to develop their skills and working practices in line with up to date training and knowledge, whilst working jointly and collaboratively on common issues and developments

Whilst the entire SMT team works extremely well undertaking all areas that Trustees expect, one aspect of the impact of the Covid-19 shutdown was the realisation by the (part-time) Executive Director that the direct management from a distance for day to day issues was not the most effective way forward for the organisation. Trustees therefore agreed to the creation of the post of Chief Operating Officer to head up the SMT, taking over responsibility for day to day management of the organisation. It is with great pleasure that Trustees appointed Helen Gore to this role with effect from May 2020.

The Executive Director, remains an intermediary between the Trustees and the Senior staff in the organisation, continues to combine regular direct communication with Chief Operating Officer as well as with individual Senior Managers. Members of the Senior teams attend Trustees' meetings submitting written reports to discuss specific aspects of work or projects where Trustees may need further information.

Page 13

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

Structure, governance and management (continued)

d. Policies adopted for the induction and training of Trustees

Most, if not all, of the Trustees are already familiar with the practical aspects of the working structures employed at Ellingham, either from their experiences within their own profession, or experience/expertise with other groups. However, Trustees are offered training as and when specific courses are identified by the Executive Directors. Some of these courses have been taken up during the year.

All new recruits to the Board attend a day long induction to the Organisation which covers;

As part of the Induction package the new recruit will also be given the latest edition of Ellingham’s Code Of Practice Of Trusteeship, which identifies Trustees' roles and responsibilities in running a charitable company. They are also provided, within this pack, with the latest documents from the Charity Commission in the appropriate areas of trusteeship. This Code is revised to reflect changes in governance when indicated from central government or the Charity Commission.

Trustees are encouraged, where practicable to attend seminars organised by the Charity Commission et al. to keep abreast of the latest changes in Government legislation. All Trustees are enrolled onto NVCO Trustee Training Programmes to assist with their professional development in their roles.

e. Pay policy for senior staff

Currently Ellingham’s Board of Trustees have responsibility of ratifying all salary increases across the whole organisation, ensuring that Ellingham continues to be a Living Wage organisation. Unfortunately, due to financial constraints, it was not possible to award staff an increase in 2020/21.

Page 14

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

Structure, governance and management (continued)

f. Risk management

The Trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.

A risk assessment register for all Trustees and Senior Staff has been created and is updated at least annually and processes are being reviewed by COO & SMT in the light of the Covid-19 shutdown & its implications.

Where appropriate, systems or procedures have been identified to mitigate the risks the charity faces. Funding being the most adherent risk to the Organisation has meant that a broader diversification of funding providers and matrixes allow for this risk to be minimised to an extent. As the organisation works with vulnerable people, all staff & Trustees undergo regular enhanced DBS checks.

Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects.

Procedures are in place to ensure compliance with Health and Safety of the charity's staff, clients and visitors to the charity's facilities.

Staff are updated with risk assessment awareness through regular training sessions either in house or externally run courses with external consultants.

Since 2007, Ellingham became a member of Peninsula Business Services to assist with Personnel, employment Law and Health and Safety Issues, by providing a 24-hour advice line in addition to providing training and sending regular updates and newsletters. All staffing issues are administered in consultation with Peninsula. This service was extended in 2014 to include the services of Peninsula in reviewing all HR policies and procedures of the organisation, and in 2015 to a confidential Employee Assistance Programme to all staff, offering confidential life management and personal support services to all employees and their families, thereby increasing the well being aspect of staff. All Ellingham’s premises also undergo annual external Health & Safety checks, fire/intruder alarm checks, Legionella check and electrical PAC testing to ensure the safety of clients and staff. These are all currently under review to ensure best competitive support to Ellingham’s needs.

Plans for future periods

Page 15

ELUNGHAM EMPLOYMENT SERVICES (A company limited by guardntee} TRUSTEES. REPORT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021 ststernent of Trustèes. responsibil¢ties The Trustees (who are also the diredors of the Cornpany for the purposes of o)mpany law} are responsible for preparing the Trustees, report and the financial statements in accordance with applicable law and United lfjngdom Accounling Standards {United lfjngdom Generaty Actepted Acix)unting Pr¥tKel. Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees must not approve the financial statements unless they ale satisfied that they give a true and fair view of the state of affairs of the Company and of tts incoming resour￿ and application of resources, including its income and eypendtiure. for that perul. In preparing these financial Stat￿nts. the Trustees are required to.. select suitable accounting polues and then appty them consistenty. observe the methods and prirriples of the Charities SORP IFRS 1021,. make judgements and accounb.ng estr"mates that are reasonable and pnjdent., state whether applicable UK Aeeounting Slandards {FRS 102) have been folk)wed, subj.￿[ to any material departures disclosed and explained in the financial statements,. prepare the finaneial statements on the going concem basis unless It is inappropriate to presume that the Company wtll continue in business. The TTUStees are responstble for keeping adequate accounting records that are sufficient to show and explain the Companys Iransaclions and di￿Se with wsonable accurary at ariy time the financial positson of the Company and enable them lo ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps foT the prevention and detection of fraud and other irregularthes. Disclosure of Infomiatlon to auditors Each of the persons who are Tnjstees ai the time when thi8 Trustees, report 55 approved has wnfimied that.. so far as that Trustee is aware. there is no relevant audrt infDmith"on of which the charilable compan￿$ auditors are unaware, and that Trustee has taken all the sleps that ought to have been taken as a Trustee in order to be aware ot any relevant audit infom)ation and to establish that the chaFrtable compan￿$ auditors are aware of that information. Auditors The auditor5, Haslers, have indicated their willingness to continue in office. The designated Truslees will propose a motion reappointing the audttors at a meeting of the Trustees. Approved by order of the members of the ty)ard ofTrustees on 7 September 2(Y21 and signed on their behalf by: ey {Chair of Trustees) Page 16

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ELLINGHAM EMPLOYMENT SERVICES

Opinion

We have audited the financial statements of Ellingham Employment Services (the 'charitable company') for the period ended 31 March 2021 which comprise the Statement of financial activities, the balance sheet, the statement of cash flows and the related notes, 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.

Page 17

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ELLINGHAM EMPLOYMENT SERVICES (CONTINUED)

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditors' report thereon. Our opinion on the financial statements does not cover the other information and 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Page 18

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ELLINGHAM EMPLOYMENT SERVICES (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' 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:

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 auditors' report.

Page 19

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ELLINGHAM EMPLOYMENT SERVICES (CONTINUED)

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an auditors' 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Haslers

Chartered Accountants Statutory Auditor

Old Station Road

Loughton

Essex

IG10 4PL

7 September 2021

Haslers are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 20

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE PERIOD ENDED 31 MARCH 2021

Note
Income from:
Donations and legacies
2
Charitable activities
3
Other trading activities
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
15 Months
Ended 31
March 2021
£
207,640
1,019,901
11,587
1,239,128
3,377
1,220,004
1,223,381
15,747
245,081
15,747
260,828		 Restricted
funds
15 Months
Ended 31
March 2021
£
-
-
112,461
112,461
-
108,726
108,726
3,735
347
3,735
4,082		 Total
funds
15 Months
Ended 31
March 2021
£
207,640
1,019,901
124,048
1,351,589
3,377
1,328,729
1,332,107
19,482
245,428
19,482
264,910		 Total
funds
12 Months
Ended 31
December
2019
£
5,151
1,165,356
40,469
1,210,976
10,438
1,320,202
1,330,640
(119,664)
365,092
(119,664)
245,428

The Statement of financial activities includes all gains and losses recognised in the period.

The notes on pages 24 to 40 form part of these financial statements.

Page 21

ELLINGHAM EMPLOYMENT SERVICES (A company limited by guarantee) REGISTERED NUMBER: 01984355

BALANCE SHEET AS AT 31 MARCH 2021

Note
Fixed assets
Tangible assets
8
Current assets
Debtors
9
Cash at bank and in hand
Creditors: amounts falling due within one
year
10
Net current assets
Total net assets
Charity funds
Restricted funds
11
Unrestricted funds
11
Total funds		 171,398
237,303
408,701
(149,895)		 31 March
2021
£
6,104
6,104
258,806
264,910
4,082
260,828
264,910		 194,889
195,432
390,321
(165,180)		 31
December
2019
£
20,287
20,287
225,141
245,428
347
245,081
245,428

Page 22

ELLINGHAM EMPLOymETr￿ SERVICES {A company limited by guarantee) REGISTERED NUMBER: 0198435S BALANCE SHEET (Co￿lNUED) AS AT 31 MARCH 2021 The entity was entiued to exempth?n from audtt under section 4T[ ofthe c(￿panieS Act 2006. The Membe￿ have not required the entity to obtsin an audÈl for the period in question in 8￿rdance with Section 476 of the Companies Act 20(￿. However, an audf( is required in accordan￿ with Sectic￿ 144 of Ihe Charibes Aet 2011. The Trustees acknowtedge their responsibilit￿S for comp￿"n9 the rEquirements of the Act with respect to actounting records and preparation of financial ststements. The financial statements have been prepared in accordance with the provisions applicable to entrties subj.ect to the small eompanies regime. The financial statements were approved and authorised for issue by the Trustees and signed on their behaw by.. (Chair of Trustees) Dale". 7 September 2021 The notes on pages 24 to 40 form part ofthese financial statement$. Page 23

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

1. Accounting policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Ellingham Employment Services meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

1.2 Income

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

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

1.3 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs.

1.4 Government grants

Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

1.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

Page 24

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

1. Accounting policies (continued)

1.6 Tangible fixed assets and depreciation

Tangible fixed assets costing £250 or more are capitalised.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Short-term leasehold property - fully depreciated
Motor vehicles - 25%
Fixtures and fittings - 20%

1.7 Debtors

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

1.8 Cash at bank and in hand

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

1.9 Liabilities and provisions

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the statement of financial activities as a finance cost.

Page 25

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

1. Accounting policies (continued)

1.10 Financial instruments

The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

1.11 Pensions

The Company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Company to the fund in respect of the period.

1.12 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 Company 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 Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

2. Income from donations and legacies

Unrestricted
funds
15 Months
Ended 31
March 2021
£
Donations
1,491
Government Grant Receivable
206,149
207,640
Unrestricted
funds
2019
£
Donations
5,151		 Total
funds
15 Months
Ended 31
March 2021
£
1,491
206,149
207,640
Total
funds
2019
£
5,151

Page 26

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

3. Income from charitable activities

Unrestricted
funds
15 Months
Ended 31
March 2021
£
Personalised Budget Client
539,389
London Borough of Newham
53,961
Work and Health Programme
27,173
Support Work
281,994
Workchoice
-
Supported Internships
118,422
Outreach East
(1,038)
Total 2021
1,019,901
Unrestricted
funds
2019
£
Personalised Budget Client
605,143
London Borough of Newham
58,131
Work and Health Programme
131,839
Support Work
229,495
Workchoice
14,328
Supported Internships
119,846
Outreach East
6,574
Total 2019
1,165,356		 Total
funds
15 Months
Ended 31
March 2021
£
539,389
53,961
27,173
281,994
-
118,422
(1,038)
1,019,901
Total
funds
2019
£
605,143
58,131
131,839
229,495
14,328
119,846
6,574
1,165,356

Page 27

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

4. Analysis of expenditure by activities

Direct costs
Direct costs		 Activities
undertaken
directly
15 Months
Ended 31
March 2021
£
1,047,084
Activities
undertaken
directly
2019
£
1,083,718		 Support
costs
15 Months
Ended 31
March 2021
£
281,645
Support
costs
2019
£
236,483		 Total
funds
15 Months
Ended 31
March 2021
£
1,328,729
Total
funds
2019
£
1,320,201

Page 28

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

4. Analysis of expenditure by activities (continued)

Analysis of direct costs

Staff costs
Motor expenses
Travel and subsistence
Recruitment
Qualification costs
Staff Training
Rent
Rates
Light and heat
Cleaning
Repairs and maintenance
Printing, postage and stationery
Entertainment
Telephone and internet
Sundry expenses
Equipment and materials
Client allowance		 Activities
15 Months
Ended 31
March 2021
£
934,877
370
2,678
784
385
75
64,793
2,419
3,250
455
5,600
3,645
164
4,776
1,368
21,343
102
1,047,084		 Total
funds
15 Months
Ended 31
March 2021
£
934,877
370
2,678
784
385
75
64,793
2,419
3,250
455
5,600
3,645
164
4,776
1,368
21,343
102
1,047,084

Page 29

(A company limited by guarantee)

ELLINGHAM EMPLOYMENT SERVICES

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

4. Analysis of expenditure by activities (continued)

Analysis of direct costs (continued)

Staff costs
Motor expenses
Travel and subsistence
Recruitment
Qualification costs
Rent
Rates
Light and heat
Cleaning
Repairs and maintenance
Printing, postage and stationery
Entertainment
Telephone and internet
Advertising
Sundry expenses
Equipment and materials
Client allowance		 Activities
2019
£
983,691
1,298
9,995
3,057
896
56,750
3,466
6,762
1,749
3,594
1,440
527
3,273
1,603
770
4,350
498
1,083,719		 Total
funds
2019
£
983,691
1,298
9,995
3,057
896
56,750
3,466
6,762
1,749
3,594
1,440
527
3,273
1,603
770
4,350
498
1,083,719

Page 30

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

4. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs
Depreciation
Travel and subsistence
Training
Light and heat
Cleaning
Repairs and maintenance
Insurance
Printing, posting and stationery
Telephone and internet
Equipment and materials
Auditors' remuneration
Legal and professional
Bank charges
Hospitality
Subscriptions
Profit and loss on disposal
Storage costs
Bad debts
Irrecoverable VAT		 Activities
15 Months
Ended 31
March 2021
£
155,167
5,074
133
15,668
2,880
1,524
3,173
16,426
4,712
20,132
1,483
8,000
15,437
67
446
5,465
9,109
1,093
(5,588)
21,244
281,645		 Total
funds
15 Months
Ended 31
March 2021
£
155,167
5,074
133
15,668
2,880
1,524
3,173
16,426
4,712
20,132
1,483
8,000
15,437
67
446
5,465
9,109
1,093
(5,588)
21,244
281,645

Page 31

(A company limited by guarantee)

ELLINGHAM EMPLOYMENT SERVICES

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

4. Analysis of expenditure by activities (continued)

Analysis of support costs (continued)

Staff costs
Depreciation
Motor expenses
Travel and subsistence
Training
Repairs and maintenance
Insurance
Printing, posting, stationery
Telephone and internet
Sundry expenses
Equipment and Materials
Property refurbishments
Auditors' remuneration
Legal and professional
Bank charges
Hospitality
Subscriptions
Profit and loss on disposal
Storage costs
Bad debts
Irrecoverable VAT
5.
Auditors' remuneration
Fees payable to the Company's auditor for the audit of the Company's
annual accounts		 Activities
2019
£
109,127
4,907
298
1,455
473
5,590
13,853
3,679
22,511
805
543
21,469
7,875
11,909
(46)
797
4,231
(74)
2,786
3,892
20,403
236,483
15 Months
Ended 31
March 2021
£
8,000		 Total
funds
2019
£
109,127
4,907
298
1,455
473
5,590
13,853
3,679
22,511
805
543
21,469
7,875
11,909
(46)
797
4,231
(74)
2,786
3,892
20,403
236,483
2019
£
7,875

Page 32

(A company limited by guarantee)

ELLINGHAM EMPLOYMENT SERVICES

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

6. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 15 Months
31 March
2021
£
1,002,210
68,311
19,524
1,090,045		 2019
£
1,005,880
68,486
18,452
1,092,818

The total amount of redundancy payments during the year was £48,089 (2019: £19,497) which includes pay in lieu.

The average number of persons employed by the Company during the period was as follows:

Directors
Management
Admin
Tutors
Catering
Support
Employment consultant		 15 Months
Ended 31
March 2021
No.
6
5
2
5
11
27
5
61		 2019
No.
6
7
3
6
15
31
10
78

No employee received remuneration amounting to more than £60,000 in either year.

Total remuneration including employee benefits paid to key management personnel during the year was £217,412 (2019: £210,264)

7. Trustees' remuneration and expenses

During the period, no Trustees received any remuneration or other benefits (2019 - £NIL) .

During the period ended 31 March 2021, no Trustee expenses have been incurred (2019 - £NIL) .

Page 33

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

8. Tangible fixed assets

Cost or valuation
At 1 January 2020
Disposals
At 31 March 2021
Depreciation
At 1 January 2020
Charge for the period
On disposals
At 31 March 2021
Net book value
At 31 March 2021
At 31 December 2019
Debtors
Due within one year
Trade debtors
Other debtors
Prepayments and accrued income		 Short-term
leasehold
property
£
145,317
-
145,317
145,317
-
-
145,317
-
-		 Motor
vehicles
£
8,916
-
8,916
8,850
20
-
8,870
46
66		 Fixtures and
fittings
£
95,007
(77,316)
17,691
74,786
5,054
(68,208)
11,632
6,059
20,221
31 March
2021
£
79,170
14,248
77,980
171,398		 Total
£
249,240
(77,316)
171,924
228,953
5,074
(68,208)
165,819
6,105
20,287
31
December
2019
£
65,167
12,715
117,007
194,889

9. Debtors

Page 34

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

10. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Pension fund loan payable
Other creditors
Accruals and deferred income		 31 March
2021
£
28,627
13,635
1,814
-
105,819
149,895		 31
December
2019
£
15,904
15,760
4,915
25,336
103,265
165,180

Page 35

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

11.
Statement of funds
Statement of funds - current period
Unrestricted funds
General Funds - all funds
Restricted funds
David Solomon Grant
Lottery Community Fund
London Community Fund
GLA Barrista
LBWF Infection Control
Total of funds		 Balance at 1
January
2020
£
245,081
347
-
-
-
-
347
245,428		 Income
£
1,239,128
-
74,533
23,528
9,000
5,400
112,461
1,351,589		 Expenditure
£
(1,223,381)
(280)
(74,533)
(23,528)
(9,000)
(1,385)
(108,726)
(1,332,107)		 Balance at
31 March
2021
£
260,828
67
-
-
-
4,015
4,082
264,910

Page 36

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

11. Statement of funds (continued)

Statement of funds - prior period

Balance at
1 January
2019
£
Unrestricted funds
General Funds - all funds
351,500
Restricted funds
Lottery Capital Grant
9,307
David Solomon Grant
3,284
David Soloman Grant
1,000
13,591
Total of funds
365,091
12.
Summary of funds
Summary of funds - current period		 Income
£
1,210,977
-
-
-
-
1,210,977		 Expenditure
£
(1,309,171)
(17,532)
(3,284)
(653)
(21,469)
(1,330,640)		 Transfers
in/out
£
(8,225)
8,225
-
-
8,225
-		 Balance at
31
December
2019
£
245,081
-
-
347
347
245,428

General funds
Restricted funds		 Balance at 1
January
2020
£
245,081
347
245,428		 Income
£
1,239,128
112,461
1,351,589		 Expenditure
£
(1,223,381)
(108,726)
(1,332,107)		 Balance at
31 March
2021
£
260,828
4,082
264,910

Page 37

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

12. Summary of funds (continued)

Summary of funds - prior period

General funds
Restricted funds		 Balance at
1 January
2019
£
351,500
13,591
365,091		 Income
£
1,210,977
-
1,210,977		 Expenditure
£
(1,309,171)
(21,469)
(1,330,640)		 Transfers
in/out
£
(8,225)
8,225
-		 Balance at
31
December
2019
£
245,081
347
245,428

Restricted Funds

National Lottery Community Fund Covid - Reponse: This is in respect of Covid 19, to support Ellingham in relation to the 'I Can Connect' Project.

The Bailey Thomas Grant and David Soloman Grant were donations received that are to be used for the I Can Ventures project.

London Community Response Fund (LCRF) Grant: This is in respect of purchasing Laptops and Ipads for employees and clients to work remotely.

(LCRF) Mayor's Young Londoners Fund GLA Grant: This is in respect to funds received for a new Barrista Project.

LBWF Infection Control Grant: This is in respect to funds received from Waltham Forest to support staff costs of receiving regular Covid 19 testing and travel to and from work to maintain infection control.

Unrestricted Funds

General funds represent the "free reserves" of the charity for its unrestricted use in connection with its overall charitable objectives

Page 38

(A company limited by guarantee)

ELLINGHAM EMPLOYMENT SERVICES

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

13. Analysis of net assets between funds

Analysis of net assets between funds - current period

Unrestricted
funds
31 March
2021
£
Tangible fixed assets
6,104
Current assets
404,619
Creditors due within one year
(149,895)
Total
260,828		 Restricted
funds
31 March
2021
£
-
4,082
-
4,082		 Total
funds
31 March
2021
£
6,104
408,701
(149,895)
264,910

Analysis of net assets between funds - prior period

Tangible fixed assets
Current assets
Creditors due within one year
Total		 Unrestricted
funds
31
December
2019
£
20,287
389,974
(165,180)
245,081		 Restricted
funds
31
December
2019
£
-
347
-
347		 Total
funds
31
December
2019
£
20,287
390,321
(165,180)
245,428

14. Contingent liabilities

In 1998 the charity received a restricted grant of £150,000 from National Lottery Charities Board in order to build and set up a training centre. The conditions of the grants stipulated that such assets shall not be disposed of without prior written consent of the National Lottery Charities Board and, that they shall not be used for any other financial purpose. This restriction applies for 80 years from the date of acquisition, and expires in the year 2078. If the charity does not comply with these conditions, the grant received will have to be repaid.

We are aware that there is a potential clawback of funding in relation to the work choice income strea. However, at this stage this amount has not been quantified or accepted by the Charity.

Page 39

ELLINGHAM EMPLOYMENT SERVICES

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

15. Pension commitments

The charity operates a defined contribution scheme whose assets are held independently and administered separately from those of the charity. During the year, the cost was £19,524 (2019: £18,452). Contributions totalling £1,814 (2019: £4,914) were payable to the fund at the balance sheet date and are included in creditors. The charity has a commitment in respect of the capital repayment of pension contributions being paid by the London Borough of Waltham Forest of £24,450 (2019: £24,450) due as at year-end.

16. Operating lease commitments

At 31 March 2021 the Company had commitments to make future minimum lease payments under noncancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years		 31 March
2021
£
31,000
124,000
333,250
488,250		 31
December
2019
£
50,917
124,000
364,250
539,167

17. Related party transactions

During the year the Amplified IT, a company in which a trustee is the director, provided the Charity with IT services. The total amount of services provided for the current year was £21,641 (2019: £15,413). There is no balance outstanding at the year end to Amplified IT.

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