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2021-03-31-accounts

Company number: 2906362 Charity number: 1035525

Prison Reform Trust

Report and financial statements For the year ended 31 March 2021

Prison Reform Trust

Contents

For the year ended 31 March 2021

Reference and administrative information ...................................................................................... 1 Trustees’ annual report .................................................................................................................. 3 Independent auditor’s report ....................................................................................................... 24 Statement of financial activities (incorporating an income and expenditure account) ................... 29 Balance sheet ............................................................................................................................... 30 Statement of cash flows ................................................................................................................ 31 Notes to the financial statements ................................................................................................. 32

Prison Reform Trust

Reference and administrative information

For the year ended 31 March 2021

Company number 2906362 Charity number 1035525 Registered office 15 Northburgh Street and operational LONDON address EC1V 0JR Country of England & Wales Registration Country of United Kingdom incorporation Trustees The Right Honourable the Lord Hurd of Westwell CH, CBE: President The Right Honourable the Lord Woolf of Barnes CH: Honorary President

Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows:

Muhammed Maqsood Ahmed, OBE: (Member of Staffing & General Purposes Sub-Committee)

The Right Honourable the Lord Keith Bradley PC: (Vice Chair)

Mifta Choudhury: (Member of Staffing & General Purposes SubCommittee)

Professor Dr Benjamin Crewe

Geoff Dobson OBE: (Member of Finance & Fundraising SubCommittee)

The Right Honourable the Lord Edward Garnier QC

Dr Ann Hagell

Julia Killick CBE: (Chair of Staffing & General Purposes SubCommittee)

Michelle Nelson QC

Nigel Newcomen CBE: (Member of Staffing & General Purposes SubCommittee)

Elizabeth Rantzen: (Treasurer/Chair of Finance & Fundraising SubCommittee)

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Prison Reform Trust

Reference and administrative information

For the year ended 31 March 2021

Dale Simon CBE Osmond Junior Smart OBE James Timpson, OBE: (Chair/Member of Finance & Fundraising SubCommittee) Key management Peter Dawson Director Bankers Lloyds Bank plc 30-34 Moorgate LONDON EC2R 6DN Solicitors Bates Wells & Braithwaite Cheapside House 138 Cheapside LONDON EC2V 6BB Auditor Sayer Vincent LLP Chartered Accountants and Statutory Auditor Invicta House 108-114 Golden Lane LONDON EC1Y 0TL

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Prison reform trust

Trustees’ annual report

For the year ended 31 March 2021

The trustees present their report and the audited financial statements for the year ended 31 March 2021.

Reference and administrative information set out on pages 1 and 2 form part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Objectives and activities

Purposes and aims

The objects of the charity are; for the public benefit to further and promote improvements in the penal system in the United Kingdom and the prevention of crime. This report provides an explanation of how the Prison Reform Trust’s significant activities fulfil the aims of the charity for the public benefit.

The strategies employed to achieve the charity’s objectives, and so create a just, humane and effective penal system, are to inquire into the workings of the system; inform prisoners, staff and the wider public; and influence Parliament, Government and officials towards reform. To do this the Prison Reform Trust combines public education and work through the media with applied research, advocating for change, advice and information and parliamentary work, including provision of the secretariat to the All-Party Parliamentary Penal Affairs Group. Its four major programmes of work during this period were: reducing unnecessary imprisonment; improving treatment and conditions for prisoners and their families; promoting equality and human rights in the justice system; and informing the public, Parliament and policy development.

The trustees review the aims, objectives and activities of the charity each year. This report looks at what the charity has achieved and the outcomes of its work in the reporting period. The trustees report the success of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. The review also helps the trustees ensure the charity's aims, objectives and activities remained focused on its stated purposes.

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set.

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Prison Reform Trust

Trustees’ annual report

For the year ended 31 March 2021

Our purpose

To create a just, humane and effective penal system.

Our vision

We will influence decision makers, opinion formers and the public to:

Reduce the use of prison. That is about who goes to prison and for how long, and means:

Improve conditions for prisoners, which requires:

Promote equality and human rights in the criminal justice system, by:

How we work

All the work we do is underpinned by the following core principles:

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Prison Reform Trust

Trustees’ annual report

For the year ended 31 March 2021

Our work in furtherance of our vision is organised under four broad challenges for the period of our 5-year strategic plan (2018-23):

In 2020/21 we made progress under each of these challenges.

Reducing unnecessary imprisonment; Change who goes to prison and for how long

The prison population has fallen dramatically during the year, from around 83,000 to just under 78,000. This has been caused almost entirely by the interruption to court activity. Neither the promised increase in Home Detention Curfew (HDC) nor early conditional release have made any significant impact, despite being part of the government’s advertised strategy to reduce the risks posed by Covid. The Ministry of Justice (MoJ’s) projections are for a prison population of nearly 100,000 by 2026, and its planning is dominated by the proposed creation of an additional 18,000 prison places. The impact of the pandemic has not all been helpful in terms of reducing prison numbers, either. The remand population has grown, and custody time limits have been extended. Recalls are now firmly established as one of the main drivers of population growth, with around 10,000 people now in prison for that reason.

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Prison Reform Trust

Trustees’ annual report

For the year ended 31 March 2021

Our main achievements under this heading were:

In addition:

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Prison Reform Trust

Trustees’ annual report

For the year ended 31 March 2021

We were not able to make progress as predicted in partnership with NACRO on promoting diversion from the criminal justice system. We have established a close working relationship with NACRO, however, including joint public letters, and they have resumed a more proactive advocacy role on both diversion and resettlement policy issues. Like them, we have liaised closely with officials responsible for the government’s reducing reoffending agenda, and there have been positive developments both in additional one-year funding for accommodation, employment, and substance misuse support, and in some sections of the White Paper. The development of the new probation model has been less positive, with voluntary sector organisations dismayed by a repeat of the burdensome procurement arrangements heavily criticised during the Transforming Rehabilitation programme, leading to the probable exclusion of many smaller organisations in the delivery of services.

Improving treatment and conditions for prisoners and their families; Improve life in prison

Covid has caused a very extreme deterioration in prison conditions. Almost all prisoners have spent almost all year in conditions amounting to solitary confinement. We discuss the impact of Project CAPPTIVE, but we have sought to maintain work in other areas too. Our main achievements have been:

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For the year ended 31 March 2021

  - HMPPS to “build back better” after the pandemic, and the officials leading policy on safety in prisons, where several PRT colleagues participate in a regular roundtable.

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Trustees’ annual report

For the year ended 31 March 2021

In addition, we have contributed to an HMCIP review of their expectations for prisons holding women.

On a weekly basis throughout the pandemic, we have acted as the sponsor of a special interest group formed by Clinks to liaise with HMPPs on immediate operational issues arising from the pandemic. Over the year, this has helped to produce a much fuller and prompter flow of information, and also given us the opportunity to contribute to the design of the “Exceptional Delivery Models” which have determined what regimes have been like. We have established direct lines of communication to Gold command in HMPPS to pass on concerns and suggested improvements.

In the course of the year, we have written a series of detailed joint letters with the Howard League to the Lord Chancellor and received detailed responses which we have published in a regularly updated website section dedicated to the pandemic. For the first two months of the pandemic, we submitted weekly updates for the Justice Select Committee on the information we were receiving and our concerns about the department’s response.

The pressure on our own resources but more especially on HMPPS has meant that other objectives in this section have not been met. In particular:

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standard reading, and with several members of the team regularly taking part in training and development events.

Promoting equality and human rights in the justice system

As we predicted, the pandemic has brought active citizens workshops to a temporary halt. We also decided not to go ahead with an annual meeting of the Care not Custody coalition. In the absence of any research applications being considered by HMPPS, we also shelved the idea of a repeat of “Punishing Disadvantage” and intend to rethink whether this is a project worth pursuing for the foreseeable future. The need for a published plan for the future of the youth estate remains unmet, although the government has finally committed to a date for the opening of the first secure school. The number of children in custody has fallen during the pandemic, but the proportion of children from minority communities, and on remand have both increased.

The death of George Floyd in the spring of 2020 and the reaction to it, together with the apparent disproportionate impact of Covid-19 on minority communities have both focused more of our attention on race in particular over the last 12 months. We remain concerned that both the government as a whole and HMPPS have let race and the implementation of the Lammy report slip down the list of priorities, to put it at its most generous. The willingness to acknowledge that policies will have a discriminatory impact but proceed regardless suggests that the situation may be worse than that, and for prisons the short and long term prospect is of a prisoner population where disproportionality in its composition becomes more not less pronounced as a consequence of policies being pursued on sentencing in particular.

Our achievements under this heading have been:

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For the year ended 31 March 2021

In addition to anticipated objectives, we have:

Informing the public, Parliament and policy development Get the facts about prison and prisoners better known

The pandemic removed at a stroke the most important tools for holding prisons to account for the treatment of prisoners at the precise moment that extraordinary and extreme restrictions were imposed on their daily way of life. Inspection ceased, Independent Monitoring Boards (IMBs) largely did not go into prisons, parliamentary accountability all but disappeared, and press interest was (and remains) utterly dominated by the impact of Covid on the community at large. Slowly, some of those mechanisms re-asserted themselves. We were pleased to help IMBs set up confidential freephone lines for prisoners to speak to them direct. The Inspectorate has instigated an increasingly impressive and assertive programme of short in-person visits. We have re-convened the All-Party Group on Penal Affairs remotely. After a good deal of coverage in the early stages concerning our joint work with the Howard League to secure an emergency early release scheme, national press coverage has been difficult to secure. But we have achieved national coverage for our report on recalled IPP prisoners, and for one CAPPTIVE report, as well as local coverage for our data release on differential rates of imprisonment of women.

Above all, we have delivered project CAPPTIVE, refocusing the work of every part of the PRT team on the task of listening to prisoners and their families about what life has actually been like, and reflecting that experience back to ministers, policy makers, the operational line and, so far as possible, the public.

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Prison Reform Trust

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For the year ended 31 March 2021

Our achievements against what we planned have been:

In addition, we have:

We have also given close attention to the need to communicate about our work with people in prison and their families. In addition to our regular column in Inside Time and The Secret Life of Prisons podcasts, we have contributed Inside Time articles both to launch CAPPTIVE and to report its findings.

Priorities and new work for 2021/22

Prisons are still a very long way from recovery. The depth of the suffering that prisoners are experiencing is becoming clearer, due in significant part to our CAPPTIVE work and a series of hard-hitting reports from the new Chief Inspector of Prisons. It follows that the damage done to people’s well-being, but also to their progression within sentences and their prospect of successful resettlement is very extensive and will not be easily repaired. A very unhealthy narrative that reductions in violence during the pandemic might be maintained by regimes which keep prisoners locked up for longer has been dented by the clearer acknowledgement of the harm being done under lockdown, and the operational hierarchy in the prison service seems clear that

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Prison Reform Trust

Trustees’ annual report

For the year ended 31 March 2021

such a narrative is both wrong and self-defeating. But the operating context as lockdown eases will include:

In addition, the government’s decision not to prioritise vaccination in prisons will delay the decline in infection rates, and it is already clear that restrictions will ease more slowly in prisons than in the community.

Politically, the passage of the bill to implement the White Paper proposals on more severe sentencing will dominate attention, but the department’s energies are also likely to be focused on implementing new probation arrangements and delivering the commitment to 18,000 new prison spaces. There must also be a possibility that levels of reported crime rise as lockdown in the community ceases. The recruitment of an additional 20,000 police staff is likely to lead to growth in prison numbers, but also create pressure on the government if crime appears to be back on the rise regardless.

We expect and have planned for detailed involvement in legislation, and we are closely linked already to the HMPPS team that is considering the longer-term learning from the pandemic. There is much less clarity about planning for the immediate consequences of restrictions being eased.

It follows that PRT will be starting another year where we will need to be prepared to react nimbly to events as well as pursuing longer term objectives. The suggested objectives below seek to strike a balance between those two elements of our work, reflecting the need to deliver on projects for which we have restricted funding and to stay true to our strategic plan, but also to show that we are responding to the immediate crisis, the depth of which may only become apparent in the coming months.

Reducing unnecessary imprisonment: Change who goes to prison and for how long We will:

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Prison Reform Trust

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For the year ended 31 March 2021

Improving treatment and conditions for prisoners and their families: Improve life in prison We will:

Promoting equality and human rights in the justice system We will:

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Prison Reform Trust

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Informing the public, Parliament and policy development: Get the facts about prisons and prisoners better known

We will:

Overview of the year

2020 has clearly been a year like no other. In common with so many other organisations, we were forced quickly to adapt our working methods and after a brief period when the majority of colleagues were furloughed, resumed the majority of our activity within a couple of months. The stored-up capital of strong relationships both within PRT and between PRT and our stakeholders and partners has meant that the organisation has proved to be extremely resilient. As the preceding sections demonstrate, we were able to adapt to focus on the immediate priorities for prisons, created by the pandemic, without losing momentum on longer term priorities which will if anything be more important as the system emerges from lockdown.

Sadly, the pandemic did nothing to disrupt the political direction of travel described in last year’s report. Indeed, the government has chosen to make highly punitive sentencing changes its first priority for non-Covid and non-Brexit legislation. There is no effective opposition in the Commons to its unevidenced and cruel proposals. The damaging cycle of the two main parties looking to “out-tough” the other on crime has reasserted itself.

But the admirable response of colleagues at PRT, and the distinctly less than admirable political response of the politicians to the pandemic in prisons, all pale into insignificance when set alongside the suffering of prisoners through this extraordinary year. That suffering has attracted very little media coverage – understandably perhaps when so many others have faced unforeseen tragedy. But it has been beyond anything those familiar with prisons could have contemplated – a year of conditions amounting to solitary confinement for virtually the whole prison population. PRT has been tireless in listening to the voices of those subjected to this awful experience and representing the reality of their suffering to decision makers in both Westminster and Whitehall.

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So, in PRT’s 40[th] year the goal of reducing the unnecessary use of imprisonment appears more challenging than ever. The overcrowding that results continues to undermine our goals of improving prison conditions and safeguarding the human rights of prisoners. In those circumstances, the continued loyalty of so many existing supporters is both gratifying and essential. We continue to expand our funding base incrementally, in particular in relation to our work on engaging and empowering prisoners and their families in advocacy on policy. Our insight, both corporately and as a team of individuals with an exceptionally wide range of personal and professional backgrounds, continues to be sought as well as offered. In fact, the more challenging the operating context, the more essential it becomes to nurture and organisation that cleaves to evidence and the actual experience of prisoners.

Prisons are about to enter another critical period, with the pandemic having obliterated norms and expectations, both good and bad. Because of its reputation, earned over 4 decades, PRT finds itself in the centre of the debate about what emerges from that maelstrom.

Structure, governance and management

Governing document

The company is established under a memorandum of association, which sets out its objects and powers as a charitable company and is governed under its articles of association. The Prison Reform Trust is currently working to a five-year strategic plan, published in June 2018.

The trustees

The trustees, who are also directors under company law, who served during the year and up to the date of this report are listed on page one. Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 March 2020 was 13.

Organisation

The Prison Reform Trust is a small organisation with clear objectives, a high national profile and a strong track record of achieving policy and practice change. It is governed by an experienced and knowledgeable Board of Trustees which meets four times a year. It operates within an equal opportunities policy the implementation of which is kept under review. Oversight of personnel matters and risk management is maintained by its Staffing and General Purposes sub-committee. Oversight of money is overseen by the Finance and Fundraising sub-committee. Management and development of the charitable company is delegated to its director, Peter Dawson, who is accountable to the Chair. Reports are submitted as required to Companies House and the Charity Commission by the company secretary. Systems for line management, appraisal, staff development and supervision are in place together with grievance and complaints procedures. A strategic plan was agreed by the Board for the period 2018-2023.

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Prison Reform Trust

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For the year ended 31 March 2021

The organisation is a charitable company limited by guarantee, incorporated on 3 March 1994 and registered as a charity on 23 March 1994.

All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 6 to the accounts.

Remuneration policy

The Prison Reform Trust aims to pay salaries which are fair, competitive with the charity sector and proportionate to the complexity of each role. In determining the right level of pay PRT uses the National Joint Council for Local Government Services pay scales and job evaluations as guidance. All staff are entitled to 7% of their gross salary as a non-contributory pension payment. The Prison Reform Trust ensures all staff are paid above the living wage as defined by the Living Wage Foundation, as well as paying above the London Living Wage.

James Timpson OBE has been the Chair since April 2016. Following a process by which the Staffing and General Purposes Sub-Committee considers the board’s needs in terms of its overall experience and skills, and the diversity of its membership, new trustees are invited to join the board. No trustees stepped down in this financial year. Dale Simon joined.

Trustee induction and training

Opportunities to visit prisons alongside Prison Reform Trust staff are made available to those who wish to take them up. As far as possible, NCVO guidelines are followed in regard to induction and training. Outside formal meetings structure there is a good level of trustee involvement in steering major programmes and project advisory work.

Financial review

In the financial year 2020/21 overall income exceeded expenditure by £15,806 (2020: income exceeded expenditure by £44,876). Total incoming resources for the year to 31 March 2021, including legacies, grants and donations, was £1,493,191, compared to £1,669,893 in 2020. Income included claims to the job retention scheme (‘furlough’) totalling £115,382. Costs of staff on furlough, which would have been otherwise charged against restricted funds, have been allocated against unrestricted funds, where the furlough income has been recognised.

Unrestricted grant income shows an increase of approximately 8% from £253,000 to £274,192.

The Northmoor Trust made a donation in 2019 and this was designated, trustees agreed to use the designation largely over three financial years from 2019. £264,451 remains from £500,000 after this second financial year. The designated expenditure is outlined as follows; £338,000 salaries for new roles created as a result of the fund; £102,000 development fund; £30,000 IT hardware and website refreshment; £10,000 staff training and development and £20,000 for an award.

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Prison Reform Trust

Trustees’ annual report

For the year ended 31 March 2021

Restricted income shows a 13% decrease of £143,953, from £1,095,030 to £951,077.

Further details of funders who generously provided support for restricted funding programmes during the year are shown in note 14.

The Prison Reform Trust received significant donations and grants towards core costs from The Esmée Fairbairn Foundation; The Hadley Trust; The Persula Foundation; The Emmanuel Kaye Foundation; The J Leon Charitable Fund; The Network for Social Change; The 29th May 1961 Charitable Trust; The AB Charitable Trust; PR& SH Southall Charitable Trust; Uber Global Citizenship.

The Alchemy Foundation granted a sum restricted for use towards the fundraising costs and salary. This has been included in unrestricted totals.

Legacies derived from the estate of Audrey Stern (£5,000).

Total resources expended in the year amounted to £1,477,385, compared to £1,625,017 in the previous financial year, a decrease of approximately 9% and amounting to £147,632. Net assets at the year-end totalled £1,250,561 of which 6.5% were represented by fixed assets. The charity’s liquid assets at the year-end covered approximately 9 ½ months’ total operating costs.

In the 2020/21 financial year the Prison Reform Trust deployed unrestricted reserves to support programmes in the sum of £25,280 (2020 £11,810).

Principal risks and uncertainties

The Trust’s risk register is considered at bi-monthly senior management team meetings and forms part of the director’s report to quarterly board meetings. It is also considered periodically by both finance and general purposes sub committees.

The board’s structure of quarterly meetings with a finance sub-committee and a general purposes sub-committee working to it has works well, and the process of the board tenure procedures continues.

The finance sub-committee has been strengthened by the co-option of a specialist member, Neil Yazdani, with specific financial expertise.

Operationally, the political upheavals referred to above have posed significant challenges for an organisation devoted to strategic reform. Our ability to build new relationships quickly has been tested and found to be in good order, bolstered by the quality of evidence and analysis which we are able to provide.

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Trustees’ annual report

For the year ended 31 March 2021

Our ability to attract candidates of quality when posts fall vacant has been shown to be high, with two appointments during the year. We continue to look for a diverse and talented workforce and encourage applications from those with lived experience of prison.

Covid

The pandemic’s most immediate affect has been on the Prison Reform Trust’s operations. Adaptions have been made in accordance with government and health guidelines. The office closed, some staff were ‘furloughed’ for a limited time, and prisons and other places where work is conducted have likewise been closed.

In terms of income, most of the Prison Reform Trust’s funding comes from trusts, foundations and grant-making bodies. These were contacted and informed of our plans and any necessary revisions, and there is ongoing communication. Funders have been supportive and understanding. The fundraising strategy has been revised in preparation for the prospect of a more challenging landscape. Some events, like a supporter’s party and a quiz, were cancelled, however engagement was the aim of these events, rather than financial targets.

The Prison Reform Trust’s only fixed asset is the lease on the office premises. No income is derived from this lease and its value has not been affected.

There are no commercial or banking debts, other than charge cards which are paid in full monthly.

As stated previously, some staff were full-time ‘furloughed’ for up to a 2-month period, between April -May 2020 inclusive, thereafter some part-time furlough arrangements have variously been in place, and claims made on the government’s job retention scheme. Staff are held on a variety of contracts, some of which are fixed. Most staff are held on one-month notice periods, only three staff have three-month notice periods. Some funding is restricted to pay for all, or part, of a specific role/staff members salary.

Reserves policy and going concern

Although the Prison Reform Trust is fortunate in the breadth of its donor base, the trustees believe that in the absence of endowments, and with few guaranteed recurrent grants, the charity should aim to maintain liquid reserves sufficient to cover at least three months’ total anticipated expenditure. At least one-third should be held as unrestricted, free liquid reserves. Notwithstanding the present difficult economic environment, the charity has developed a strategy to enable it to meet this objective.

Free reserves, which are unrestricted funds not designated or held as fixed assets, total £339,677 (2020: £405,059) for the financial year (approximately 2.7 months total expenditure on 2021 results). Restricted funds total £567,783 (2020: £358,822), 4.6 months total expenditure. Together, amounting to £907,460 and 7.3 months, (2020: £763,881 5.6 months).

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Prison Reform Trust

Trustees’ annual report

For the year ended 31 March 2021

Designated funds consist of cash of £261,451 (2020: £385,674) which is to be largely spent over the next financial year, and a lease with a value of £81,650.

The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. The trustees and the management team have reviewed all expected income and expenditure projections and have concluded that, together with the reserves, there is a reasonable expectation that the Prison Reform Trust has adequate resources to continue in operational existence for the foreseeable future. The Prison Reform Trust, therefore, continues to adopt the going concern basis in preparing its financial statements.

Fundraising

The Prison Reform Trust has the benefit of a part-time development manager, who is a member of the Institute of Fundraising. This role is generously funded and supported by The Alchemy Foundation.

The majority of our funding across restricted and unrestricted areas comes from grants awarded upon application, from charitable trusts and foundations.

We also receive money from individual donors, corporations, legacies, and members of our Friends scheme.

We do not use direct marketing, telemarketing, street collections, sponsorships or any other form of fundraising, other than that stated above. The Prison Reform Trust complies fully with fundraising regulations and codes and has not received any complaints with regards to its fundraising activities. The Prison Reform Trust considers if people may be vulnerable or be in vulnerable circumstances-if we have reasonable grounds for believing that a potential donor lacks the capacity to make a decision to support us, then a donation will not be taken. If a donation has already been made, and at the time of donating the individual lacked capacity (and we receive evidence of this) then we will return that donation.

We do not use professional fundraisers or commercial participators, or any third parties.

Statement of responsibilities of the trustees

The trustees (who are also directors of Prison Reform Trust for the purposes of company law) are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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Prison Reform Trust

Trustees’ annual report

For the year ended 31 March 2021

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company 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 charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

This confirmation is given and should be interpreted in accordance with he provisions of Section 418 of the Companies Act 2006.

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

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 March 2021 was 14 (2020: 13). The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

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Prison Reform Trust

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For the year ended 31 March 2021

Auditor

Sayer Vincent LLP was re-appointed as the charitable company's auditor during the year and has expressed its willingness to continue in that capacity.

The trustees’ annual report has been approved by the trustees on 5 October 2021 and signed on their behalf by

James Timpson OBE Chair

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Independent auditor’s report

To the members of

Prison Reform Trust

Opinion

We have audited the financial statements of Prison Reform Trust (the ‘charitable company’) for the year ended 31 March 2021 which comprise the statement of financial activities, balance sheet, statement of cash flows 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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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 Prison Reform Trust'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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Independent auditor’s report

To the members of

Prison Reform Trust

Other information

The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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.

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:

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Independent auditor’s report

To the members of

Prison Reform Trust

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, 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.

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 are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

26

Independent auditor’s report

To the members of

Prison Reform Trust

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

27

Independent auditor’s report

To the members of

Prison Reform Trust

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.

Judith Miller (Senior statutory auditor) 4 November 2021

for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

28

Prison Reform Trust

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2021

Note
Income from:
2
3
1
2
3
4
14
1
2
3
4
4
5
14
Reconciliation of funds:
Total income
Expenditure on:
Grants, donations and legacies
Charitable activities
Reducing unnecessary imprisonment
Improving treatment & conditions for prisoners
and their families
Promoting equality and human rights in the
justice system
Informing the public, Parliament and policy
development
Other trading activities (including government job
retention scheme payments for 2020/21)
Interest
Raising funds
Total expenditure
Charitable activities
Promoting equality and human rights in the
justice system
Informing the public, Parliament and policy
development
Reducing unnecessary imprisonment
Improving treatment & conditions for prisoners
and their families
Funds brought forward
Net income / (expenditure) for the year
Transfers between funds
Net movement in funds
Total funds carried forward		 Unrestricted
£
390,460
-
-
-
-
151,233
421		 Restricted
£
-
532,291
224,993
114,800
78,993
-
-		 2021
Total
£
390,460
532,291
224,993
114,800
78,993
151,233
421		 Unrestricted
£
550,332
-
-
-
-
23,357
1,174		 Restricted
£
-
507,890
355,693
99,954
131,493
-
-		 2020
Total
£
550,332
507,890
355,693
99,954
131,493
23,357
1,174
542,114 951,077 1,493,191 574,863 1,095,030 1,669,893
30,000
333,195
210,797
47,599
88,398		 -
370,212
232,505
64,627
100,052		 30,000
703,407
443,302
112,226
188,450		 38,778
310,753
196,599
44,393
82,444		 -
367,149
360,412
115,976
108,513		 38,778
677,902
557,011
160,369
190,957
709,989
(167,875)
(25,280)		 767,396
183,681
25,280		 1,477,385
15,806
-		 672,967
(98,104)
(11,810)		 952,050
142,980
11,810		 1,625,017
44,876
-
(193,155)
875,933		 208,961
358,822		 15,806
1,234,755		 (109,914)
985,847		 154,790
204,032		 44,876
1,189,879
682,778 567,783 1,250,561 875,933 358,822 1,234,755

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 14 to the financial statements.

29

Prison Reform Trust

Company no. 2906362

Balance sheet

As at 31 March 2021

Note
Fixed assets:
10
Current assets:
11
Liabilities:
12
14
Total unrestricted funds:
Total charity funds
Designated funds (lease)
Cash at bank and in hand
Tangible assets
The funds of the charity:
Creditors: amounts falling due within one year
Net current assets
Total net assets
Restricted income funds
Unrestricted income funds
Designated funds (Northmoor Trust)
Debtors		 £
31,747
1,177,935		 2021
£
81,650
1,168,911		 £
89,538
1,076,303		 2020
£
85,200
1,149,555
1,209,682
(40,771)		 1,165,841
(16,286)
339,677
261,451
81,650		 405,059
385,674
85,200
1,250,561 1,234,755
567,783
682,778		 358,822
875,933
1,250,561 1,234,755

Approved by the trustees on 5 October 2021 and signed on their behalf by

James Timpson OBE Chair

30

Prison Reform Trust

Statement of cash flows

For the year ended 31 March 2021

Reconciliation of net expenditure to net cash flow from operating activities

Net income for the reporting period
Interest income
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Depreciation charges
Decrease in debtors
Increase in creditors
Net cash from/(used in) operating activities
(as per the statement of financial activities)
Net cash used in investing activities
Purchase of fixed assets
Cash flows from investing activities:
Interest income
Net cash from/(used in) operating activities		 £
£
111,245
421
(10,034)
(9,613)
101,632
1,076,303
1,177,935
2021		 £
£
111,245
421
(10,034)
(9,613)
101,632
1,076,303
1,177,935
2021		 2021
£
15,806
13,584
(421)
57,791
24,485		 2020
£
44,876
21,823
(1,174)
(67,332)
(31,954)
111,245 (33,761)
101,632
1,076,303		 (50,860)
1,127,163
1,177,935 1,076,303

31

Prison Reform Trust

Notes to the financial statements

For the year ended 31 March 2021

1 Accounting policies

a) Statutory information

Prison Reform Trust is a charitable company limited by guarantee and is incorporated in the United Kingdom.

The registered office address is 15 Northburgh Street, London, EC1V 0JR.

b) Basis of preparation

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

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

c) Public benefit entity

The charitable company meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

The impact of the Covid-19 pandemic has been considered. There are no post-balance sheet events that require adjustments in the accounts or disclosure in the notes to the accounts. The lease asset has not been impaired and no borrowings are held. Income, largely through grants, has yet to be materially affected. Office premises were closed from April 2020, and the government staff retention scheme was accessed as needed throughout the financial year. There is no current assessment that staff contracts will be affected, other than in the normal course of events, in the period to September 2022. The majority of staff are subject to one-month notice periods, with three subject to three-month notice periods.

e) Income

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

Income from 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.

f) Legacies

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

g) Donations of gifts, services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution.

On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

h) Interest receivable

i) Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

32

Prison Reform Trust

Notes to the financial statements

For the year ended 31 March 2021

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

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

k) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity.

Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.

Where such information about the aims, objectives and projects of the charity is also provided to potential donors, activity costs are apportioned between fundraising and charitable activities on the basis of area of literature occupied by each activity.

Support and governance costs are re-allocated to each of the activities on the following basis which is an estimate, based on staff time, of the amount attributable to each activity.

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

l) Operating leases

Service charges are charged quarterly over the term of the lease.

m) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £1,000. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

n) 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.

o) Cash at bank and in hand

Cash at bank and cash 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.

p) Creditors

Creditors 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 are normally recognised at their settlement amount after allowing for any trade discounts due.

33

Prison Reform Trust

Notes to the financial statements

For the year ended 31 March 2021

1 Accounting policies (continued)

q) Pensions

The Prison Reform Trust contributes towards employees' personal pension plans with costs being charged to the Statement of Financial Activities as they fall due. The Prison Reform Trust contributes to staff pensions at the rate of 7% on gross salaries. Pensions can be taken out by all staff on all contracts.

2 Income from donations and legacies

Income from donations and legacies
Unrestricted charitable activity
Esmée Fairbairn Foundation
The Hadley Trust
J Leon Charitable Fund
Alchemy Foundation
The AB Charitable Trust
Other
Sub-total for unrestricted charitable activity
Grants (see below for list of funders)
Gifts & donations
Legacies		 Unrestricted
£
274,192
111,268
5,000		 £
-
-
-
Restricted		 2021
Total
£
274,192
111,268
5,000		 Unrestricted
£
253,000
183,719
113,613		 £
-
-
-
Restricted		 2020
Total
£
253,000
183,719
113,613
390,460 - 390,460 550,332 - 550,332
50,000
50,000
25,000
30,000
40,000
79,192		 -
-
-
-
-
-		 50,000
50,000
25,000
30,000
40,000
79,192		 100,000
-
25,000
30,000
40,000
58,000		 -
-
-
-
-
-		 100,000
-
25,000
30,000
40,000
58,000
274,192 - 274,192 253,000 - 253,000

Legacies derived from the estate of Audrey Stern (£5,000).

The value of services provided by advisors and volunteers is not incorporated into these financial statements. Acknowledgement of their contribution can be found in the Report of the Trustees.

Income from charitable activities (restricted)
Big Lottery
National Lottery
Barrow Cadbury Trust
Kowitz Family Foundation
The Hadley Trust
Porticus Foundation
Goldsmiths Charitable Foundation
Blagrave Trust
Garfield Weston Foundation
Donation
AB Charitable Trust
Other
Sub-total for improving treatment & conditions
for prisoners & their families
Sub-total for reducing unnecessary
imprisonment
Improving treatment and conditions for
prisoners and their families
Reducing unnecessary imprisonment		 Unrestricted
£
-
-
-
-		 £
27,416
504,875
-
-
Restricted		 2021
Total
£
27,416
504,875
-
-		 Unrestricted
£
-
-
-
-		 £
260,157
247,733
-
-
Restricted		 2020
Total
£
260,157
247,733
-
-
- 532,291 532,291 - 507,890 507,890
-
-
-
-
-
-
-
-		 150,000
49,993
-
-
-
-
25,000
-		 150,000
49,993
-
-
-
-
25,000
-		 -
-
-
-
-
-
-		 200,000
49,993
20,000
20,000
50,000
10,000
5,700		 200,000
49,993
20,000
20,000
50,000
10,000
5,700
-
 224,993 224,993 - 355,693 355,693

34

Prison Reform Trust

Notes to the financial statements

For the year ended 31 March 2021

Income from charitable activities (restricted) continued ntinued
Unrestricted
£
The Open Society Foundation
-
The AB Charitable Trust
-
-
The Bromley Trust
-
Rank Foundation
-
Persula Foundation
-
Barrow Cadbury Trust
-
Porticus Foundation
-
Other
-
-
-
Sub-total for informing the public, Parliament
& policy development
Total income from charitable activities
Sub-total for promoting equality & human
rights in the justice system
Promoting equality & human rights in the
justice system
Informing
the
public,
Parliament
&
policy
development		 Unrestricted
£
-
-		 £
114,800
-
Restricted		 2021
Total
£
114,800
-		 Unrestricted
£
-
-		 £
99,954
-
Restricted		 2020
Total
£
99,954
-
- 114,800 114,800 - 99,954 99,954
30,000
-
-
19,000
29,993
-		 30,000
-
-
19,000
29,993
-		 -
-
-
-
-
-		 30,000
20,000
25,000
21,500
34,993
-		 30,000
20,000
25,000
21,500
34,993
-
- 78,993 78,993 - 131,493 131,493
- 951,077 951,077 - 1,095,030 1,095,030

35

Prison Reform Trust

Notes to the financial statements

For the year ended 31 March 2021

Staff costs (Note 6)
Travel, training & subsistence
Research & consultancy fees
Events, legal & professional fees
Office & premises
Finance, audit & insurance
Printing & publications
Beneficiary engagement
Administration & support
Depreciation
Other costs
Support costs
Governance costs
Total expenditure 2021
Total expenditure 2020		 Cost of
raising funds
£
27,787
-
-
-
-
-
-
-
-
-
2,213		 Charitable activities Charitable activities Governance
costs
£
-
-
-
-
-
886
-
-
-
-
-		 Support
costs
£
574,761
1,983
24,274
-
21,534
16,492
11,946
5,301
(104,318)
13,584
113,546		 2021
Total
£
1,119,654
6,603
100,199
-
21,534
17,378
45,300
10,029
-
13,584
143,104		 2020
Total
£
1,056,295
78,781
153,434
28,917
18,995
15,509
51,311
7,597
70,186
21,823
122,169
Reducing
unneccessary
imprisonment
£
244,381
1,065
20,151
-
-
-
3,639
108
93,563
-
7,305		 Improving treatment
& conditions for
prisoners & their
families
£
162,492
1,183
22,685
-
-
-
21,769
4,620
5,000
-
14,756		 Promoting
equality & human
rights in the
justice system
£
24,207
2,372
27,314
-
-
-
3,085
-
3,115
-
4,534		 Informing the
public, Parliament,
and policy
development
£
86,026
-
5,775
-
-
-
4,861
-
2,640
-
750
30,000
-
-		 370,212
332,761
434		 232,505
210,522
275		 64,627
47,537
62		 100,052
88,283
115		 886
-
(886)		 679,103
(679,103)
-		 1,477,385
-
-		 1,625,017
-
-
30,000 703,407 443,302 112,226 188,450 - - 1,477,385
38,778 677,902 557,011 160,369 190,957 - - 1,625,017

Of the total expenditure, £709,990 was unrestricted (2020: £672,967) and £767,395 was restricted: (2020: £952,050). Restricted staff costs of £53,737 were absorbed by unrestricted funds in respect of claims made to the government job retention scheme.

36

Prison Reform Trust

Notes to the financial statements

For the year ended 31 March 2021

4b Analysis of expenditure (prior year)

Staff costs (Note 6)
Travel, training & subsistence
Research & consultancy fees
Events, legal & professional fees
Office & premises
Finance, audit & insurance
Printing & publications
Beneficiary engagement
Administration & support
Depreciation
Other costs
Support costs
Governance costs
Total expenditure 2020		 Cost of
raising funds
£
37,432
31
-
-
-
-
-
-
-
-
1,315		 Charitable activities Charitable activities Governance
costs
£
-
936
-
-
-
881
-
-
-
-
839		 Support
costs
£
421,287
19,653
20,288
2,510
18,995
14,628
13,664
-
-
21,247
99,261		 2020
Total
£
1,056,295
78,781
153,434
28,917
18,995
15,509
51,311
7,597
70,186
21,823
122,169
Reducing
unneccessary
imprisonment
£
216,347
20,842
48,166
13,002
-
-
2,649
1,215
58,784
576
5,568		 Improving treatment
& conditions for
prisoners & their
families
£
254,796
21,631
38,393
1,130
-
-
22,351
6,382
5,000
-
10,729		 Promoting
equality & human
rights in the
justice system
£
38,259
15,542
45,633
10,527
-
-
1,329
-
3,762
-
924		 Informing the
public, Parliament,
and policy
development
£
88,174
146
954
1,748
-
-
11,318
-
2,640
-
3,533
38,778
-
-		 367,149
309,451
1,302		 360,412
195,776
823		 115,976
44,207
186		 108,513
82,099
345		 2,656
-
(2,656)		 631,533
(631,533)
-		 1,625,017
-
-
38,778 677,902 557,011 160,369 190,957 - - 1,625,017

Of the total expenditure, £672,967 was unrestricted (2019: £407,218) and £952,050 was restricted (2019: £892,610).

37

Prison Reform Trust

Notes to the financial statements

For the year ended 31 March 2021

This is stated after charging / (crediting):

This is stated after charging / (crediting):
2021 2020
£ £
Depreciation 13,584 21,823
Auditor's remuneration (including VAT):
Audit 9,360 9,100
Under accrual from prior year - 100
Trustee's indemnity insurance 886 881

There were no fees for non-audit services.

Staff costs were as follows:

Staff costs were as follows:
Salaries and wages
Social security costs
Employer’s contribution to defined contribution pension schemes
Employer's contribution to personal pension schemes		 2021
£
953,284
99,817
53,434
13,119		 2020
£
898,551
95,102
49,421
13,221
1,119,654 1,056,295

The following number of employees received employee benefits (excluding employer pension costs and national insurance) during the year between:

2021 2020
No. No.
£90,000 - £99,999 1 1

The total employee benefits (including pension contributions and national insurance) of the key management personnel were £96,862 (2020: £92,114).

The charity trustees were not paid or received any other benefits from employment with the charity in the year (2020: £nil). No charity trustee received payment for professional or other services supplied to the charity (2020: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £nil (2020: £1,775) incurred by 0 (2020: 9) members relating to attendance at meetings of the trustees. Training expenses were £nil (2020: £nil).

The average number of employees (head count based on number of staff employed) during the year was 26 (2020: 25).

Staff deployment

Staff deployment
Improving treatment & conditions for prisoners & their families
Informing the public, parliament in the justice system
Support
Reducing unnecessary imprisonment
Promoting equality & human rights in the justice system		 2021
Approx.
head count
5.5
9.5
1
5.5
4.5		 2020
Approx.
head count
7
9
2
4
3
26 25

38

Prison Reform Trust

Notes to the financial statements

For the year ended 31 March 2021

8 Related party transactions

There are no related party transactions to disclose for 2021 (2020: none).

Aggregate donations from related parties were £nil (2020: £nil).

9 Taxation

The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

10 Tangible fixed assets

Cost or valuation
Depreciation
At the end of the year
At the start of the year
Charge for the year
At the start of the year
Additions in year
At the end of the year
At the end of the year
At the start of the year
Net book value		 Leasehold
property
£
177,500
-		 Fixtures and
fittings
£
44,476
-		 Computer
equipment
£
78,763
10,034		 Total
£
300,739
10,034
177,500 44,476 88,797 310,773
92,300
3,550		 44,476
-		 78,763
10,034		 215,539
13,584
95,850 44,476 88,797 229,123
81,650 - - 81,650
85,200 - - 85,200

All of the above assets are used for charitable purposes.

11 Debtors

Debtors
Accrued income
Other debtors
Prepayments		 2021
£
12,495
12,605
6,647		 2020
£
9,985
11,060
68,493
31,747 89,538

12 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Charge card
Trade creditors
Accruals & deferred income
Taxation, social security, pensions
Other creditors		 2021
£
32,225
811
1,022
473
6,240		 2020
£
3,345
-
1,208
2,633
9,100
40,771 16,286

39

Prison Reform Trust

Notes to the financial statements

For the year ended 31 March 2021

13a Analysis of net assets between funds (current year)

13a
Analysis of net assets between funds (current year)
13b
Net assets at the end of the year
Net current assets
Net assets at the end of the year
Net current assets
Tangible fixed assets
Analysis of net assets between funds (prior year)
Tangible fixed assets		 General
unrestricted
£
-
339,677		 £
81,650
261,451
Designated		 Restricted
£
-
567,783		 Total funds
£
81,650
1,168,911
339,677 343,101 567,783 1,250,561
General
unrestricted
£
-
405,059		 £
85,200
385,674
Designated		 Restricted
£
-
358,822		 Total funds
£
85,200
1,149,555
405,059 470,874 358,822 1,234,755

40

Prison Reform Trust

Notes to the financial statements

For the year ended 31 March 2021

14a Movements in funds (current year)

Restricted funds:
Reducing unnecessary imprisonment
Total restricted funds
Unrestricted funds:
Designated funds:
Total designated funds
Unrestricted income fund
Total unrestricted funds
Total funds
Fixed asset fund
Active citizens-improving regimes
National Lottery-Building Futures
Independent Commission
Director salary
All Party Parliamentary Penal Group
Bromley Briefings Prison Factfile
Communications & policy
Writing competition
Disability in prison-global
Northmoor Trust
Advice & information service
Prisoner engagement
BIG Lottery-Reducing Women's Imprisonment
Improving treatment & conditions for
prisoners & their families
Promoting equality & human rights in the
justice system
Informing the public, Parliament & policy
development		 At the start
of the year
£
16,100
176,216
48,172
13,473
1,555
-
-
63,577
4,049
354
23,243
12,083		 Income &
gains
£
27,416
504,875
150,000
49,993
-
-
25,000
114,800
19,000
30,000
29,993
-		 Expenditure
& losses
£
64,421
305,791
156,643
44,932
1,555
4,375
25,000
64,627
18,145
16,861
52,963
12,083		 Transfers
£
20,905
-
-
-
-
4,375
-
-
-
-
-
-		 At the end of
the year
£
-
375,300
41,529
18,534
-
-
-
113,750
4,904
13,493
273
-
358,822 951,077 767,396 25,280 567,783
85,200
385,674		 -
-		 3,550
124,223		 -
-		 81,650
261,451
470,874 - 127,773 - 343,101
405,059
875,933		 542,114
542,114		 582,216
709,989		 (25,280)
(25,280)		 339,677
682,778
1,234,755 1,493,191 1,477,385 - 1,250,561

The narrative to explain the purpose of each fund is given at the foot of the note below.

41

Prison Reform Trust

Notes to the financial statements

For the year ended 31 March 2021

14b Movements in funds (prior year)

Movements in funds (prior year)
Total restricted funds
Unrestricted funds:
Designated funds:
Total designated funds
Unrestricted income fund
Total unrestricted funds
Total funds
Sex offenders
Disability in prison-global
Restricted funds:
Reducing unnecessary imprisonment
Improving treatment & conditions for
prisoners & their families
Promoting equality & human rights in the
justice system
Informing the public, Parliament & policy
development
BIG Lottery-Reducing Women's Imprisonment
Director salary
Northmoor Trust
Prisoner engagement
Active citizens-improving regimes
Writing competition
Independent Commission
Offenders work placements
Communications & policy
Bromley Briefings Prison Factfile
All Party Parliamentary Penal Group
Recall
National Lottery-Building Futures
Advice & information service
Fixed asset fund		 At the start
of the year
£
15,495
36,080
-
2,761
79,330
-
-
1,341
-
27,323
24,953
2,166
-
-
14,583		 Income &
gains
£
-
260,157
247,733
200,000
112,670
5,700
-
-
10,000
127,277
-
21,500
30,000
59,993
20,000		 Expenditure
& losses
£
15,495
280,137
71,517
154,589
178,527
4,145
4,480
1,341
17,330
91,023
24,953
19,617
29,646
36,750
22,500		 Transfers
£
-
-
-
-
-
-
4,480
-
7,330
-
-
-
-
-
-		 At the end of
the year
£
-
16,100
176,216
48,172
13,473
1,555
-
-
-
63,577
-
4,049
354
23,243
12,083
204,032 1,095,030 952,050 11,810 358,822
88,750
500,000		 -
-		 3,550
114,326		 -
-		 85,200
385,674
588,750 - 117,876 - 470,874
397,097
985,847		 574,863
574,863		 555,091
672,967		 (11,810)
(11,810)		 405,059
875,933
1,189,879 1,669,893 1,625,017 - 1,234,755

Purposes of restricted funds

In the financial year ended 31 March 2021, the Prison Reform Trust operated the following programmes through restricted funding:

Reducing unnecessary imprisonment

Reducing Women’s Imprisonment: Funded by the Big Lottery, this four- year programme pursued the reduction of women’s imprisonment across the UK. This programme was completed in November 2020.

Building Futures: Funded by the National Lottery, this is a five-year programme focusing on long-term imprisonment in the UK.

42

Prison Reform Trust

Notes to the financial statements

For the year ended 31 March 2021

14 Movement in funds (continued)

Improving treatment & conditions for prisoners and their families Advice & Information Service: Funded by the Hadley Trust, the Prison Reform Trust’s advice and information service responds to thousands of queries a year from prisoners, their friends and families, and from people working with prisoners.

Prisoner engagement: Funded by Porticus UK, the prisoner engagement programme involves and seeks views from those affected by the criminal justice system. This programme has also been supported by the Blagrave Trust (Listening Fund), Garfield Weston Foundation and Goldsmiths.

Active Citizens: On active citizenship, the Prison Reform Trust continued to engage with prisons to facilitate workshops to identify new ways in which prisoners can take more responsibility for the health of their community.

Writing competition: The annual writing competition is open to prisoners, prisoners’ families and friends and former prisoners across the UK.

Independent Commission: This work is supported by the Prison Reform Trust. It is looking at how prison sentences work for the most serious of crimes, and the experience of victims and prisoners. Some funding has been provided by the AB Charitable Trust.

Promoting equality & human rights in the justice system

Disability in prisons, global: This work is funded by the Open Society Foundation.

Informing the public, Parliament & policy development

All Party Parliamentary Penal Group: The Prison Reform Trust is funded by the Barrow Cadbury Trust to organise and provide the secretariat to meetings.

Bromley Briefings Prison Factfile: The Bromley Trust funds towards the bi-annual compilation, publication and dissemination of Prison: the Facts.

Communications & policy: Porticus UK supports the communication and policy function.

Director salary: The Rank Foundation awarded funding towards the director's salary.

Transfers

The reason for transfers at the Prison Reform Trust is to apply cash from unrestricted funds to finance a deficit on restricted funds. The total amount transferred from unrestricted funds to finance deficits in restricted programmes totals £25,280 for the financial year (2020: £11,810). Salary costs incurred by restricted programmes, totalling £53,737, were absorbed by unrestricted funds as a calculated element of income received by unrestricted funds through the government job retention scheme. The total received under the scheme for the financial year was £115,382.

Purposes of designated funds

Designated funds consist of: a single fixed asset fund, representing the lease at 15 Northborough Street. There remains 23 years at the current rate of amortisation.

A designated fund was established in the 2018/19 financial year from monies donated by the Northmoor Trust. These designated funds will be expended according to the agreement reached by trustees, see the trustees report for more details.

15 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

43