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2022-03-31-accounts

Company number: 2906362 Charity number: 1035525

Prison Reform Trust

Report and financial statements For the year ended 31 March 2022

Prison Reform Trust

Contents

For the year ended 31 March 2022

Reference and administrative information ...................................................................................... 1 Trustees’ annual report .................................................................................................................. 3 Independent auditor’s report ....................................................................................................... 26 Statement of financial activities (incorporating an income and expenditure account) ................... 31 Balance sheet ............................................................................................................................... 32 Statement of cash flows ................................................................................................................ 33 Notes to the financial statements ................................................................................................. 34

Prison Reform Trust

Reference and administrative information

For the year ended 31 March 2022

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
Honorary Positions The Right Honourable the Lord Hurd of Westwell CH, CBE: President
The Right Honourable the Lord Woolf of Barnes CH: Honorary President
Trustees 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)
Shadae Cazeau (appointed 8 February 2022)
Mifta Choudhury: (Member of Staffing & General Purposes Sub-
Committee)
Professor Dr Benjamin Crewe
Geoff Dobson OBE: (Member of Finance & Fundraising Sub-
Committee)
The Right Honourable the Lord Edward Garnier QC
The Right Honourable David Gauke (appointed 11 March 2022)
Dr Ann Hagell (resigned 5 October 2021
Julia Killick CBE: (Chair of Staffing & General Purposes Sub-
Committee)
Michelle Nelson QC (resigned 5 October 2021)
Nigel Newcomen CBE: (Member of Staffing & General Purposes Sub-
Committee)

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Prison Reform Trust

Reference and administrative information

For the year ended 31 March 2022

Rebecca Page: (Member of Finance & Fundraising Sub-Committee) (appointed 8 February 2022)

Elizabeth Rantzen: (Treasurer/Chair of Finance & Fundraising SubCommittee) Dale Simon CBE Osmond Junior Smart OBE James Timpson, OBE: (Chair) 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 2022

The trustees present their report and the audited financial statements for the year ended 31 March 2022.

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; which includes the rehabilitative impact of prison, contribution to the prevention of crime; 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 2022

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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Trustees’ annual report

For the year ended 31 March 2022

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

Overview of the year

In common with every other organisation, we spent the year continually adjusting our priorities and activity in response to the twists and turns of the pandemic. Successive waves of Covid frustrated what we had anticipated would be a year of recovery. Nevertheless, the emphasis we put on involving prisoners in policy, and the strength of our techniques for doing so, put us in very close contact with the team responsible for designing post pandemic prison regimes. We are trusted and consulted on a regular basis behind the scenes, and the work being done in that context provides a glimmer of positivity in a prison landscape that is otherwise extremely bleak.

What we might not have expected in the midst of a pandemic was to be so fully occupied with both a major bill and a white paper devoted entirely to prisons policy. The outcomes on both were frustrating, but we can claim modest success in securing the first legislative change to Imprisonment for Public Protection (IPP) arrangements since 2012, and the formation of a very broad and impressive coalition of Peers dedicated to wider IPP reform. On the white paper, there are ambitions we would share, though very few are resourced or timetabled. But perhaps as significant is that the very real risk of a damaging shift in policy towards harsher conditions appears to have been averted.

The work of the commission chaired by Bishop James Jones also represents a very significant achievement in the most testing of circumstances, pursuing a policy shift that will take many years to achieve but which might otherwise be abandoned altogether.

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At every opportunity we have visited prisons, and our daily contact with prisoners – through record breaking numbers of inquiries to the advice service and the constant emailing and letter writing of both the Prisoner Policy Network (PPN) and Building Futures networks – has never been more intense. If we are pushing a boulder up a hill, we would have to admit that progress has been slow. But we have stopped it from rolling to the bottom, which remains a serious risk.

Thanks to the continuing support of long-term funders, a broadening of that base and a boost in the contributions made from many individual supporters in our 40[th] anniversary year, PRT is in a sound financial position. This has enabled us to continue to employ a new generation of outstanding colleagues from a diverse range of personal backgrounds, many with personal experience of imprisonment. A third of the team as a whole, and half of the senior management team, have that experience. The organisation benefits hugely from its diversity of background, experience and expertise, and that has played a significant part in allowing us to come through the pandemic with no loss of energy, influence,or focus.

Our progress against each of our 4 strategic objectives in 2021/22 was as follows.

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

The number of adults in prison started to rise slowly from the low of around 78,000 caused by the cessation of much court activity during the pandemic, reaching around 80,000. Remand numbers remained high by recent standards – for the same reason. Recalls are now firmly established as one of the main drivers of population growth, with nearly 10,000 people now in prison for that reason, rising by 6% a year. Over 6,000 people are serving extended determinate sentences – in its various forms essentially the successor to the IPP sentence. The government’s projection remains that there will be nearly 100,000 adults in prison by 2026, driven by longer sentences, a greater proportion of sentences spent in custody, and increased detections and prosecutions due to increased police numbers.

We led efforts, working very closely with the Howard League and principally in the House of Lords, to secure amendments to the Police, Crime, Sentencing and Courts bill in relation to IPP sentences and to new powers to “re-sentence” people subsequently considered to be dangerous. In the face of an overwhelming government majority in the Commons, we were only able to get a modest reform on IPPs, making referral for consideration of licence cancellation automatic after 10 years, but that is the first change in IPP legislation since 2012. Nevertheless, in the process we have helped form a powerful cross-party coalition in the Lords which will be significant when the Justice Committee publishes its report into IPPs before the summer recess. We gave written and oral evidence to that inquiry, and continued to work very closely with UNGRIPP, an organisation dedicated to the IPP issue and in particular the support of families of people serving that sentence.

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Securing amendments proved impossible in the face of the government’s determination to press ahead.

The root and branch review was not complete by the end of this reporting year, delayed by the departure of one Justice Secretary, Robert Buckland, and the arrival of another with significantly different views – Dominic Raab. We responded to the one element of the review – concerning public hearings – which has been consulted upon. The publication of the review after the end of the reporting year has demonstrated the dramatic impact of that change in leadership and dealing with the very serious and damaging consequences will be a major focus for our work in 2022/23.

The lack of published data prevented us from updating local incarceration rates. But we punched above our weight in this area despite the very limited resources we can now devote to it. In particular, our forensic analysis of the progress (or lack of it) in implementing the female Offender Strategy bore fruit in a very critical National Audit Office (NAO) report on exactly that topic, leading to a very difficult session before the Public Accounts Committee for the minister and senior officials. There has been a noticeable re-invigoration of the implementation effort as a result. Nevertheless, with others, we continue to highlight the nonsense of a commitment to build 500 new prison places for women when the government’s stated aim is to reduce the number of women in prison.

We submitted evidence to this review, the fate of which remains uncertain given Robert Buckland’s departure.

“Building Futures” (BF) is our five-year programme, funded by the National Lottery Community Fund, to examine the challenges facing the very long-term prison population, including how people in that situation are enabled to spend their time in prison in a way which will support their eventual successful reintegration into society.

Within the Building Futures Programme, we said we would

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By the end of the reporting year we had groups in four prisons (Swaleside, Rye Hill, Aylesbury and Low Newton (women)) with plans for a further three.

Around 340 prisoners have now joined the Building Futures network, and we have developed a sophisticated database to allow us to analyse what they have to tell us.

This crucial project was a main focus over the reporting year and produced a very detailed paper about progression within the system for long term prisoners. That paper will form the basis of a report to be published in the summer of 2022.

We published this unique analysis in the summer of 2021.

Despite the cessation of all research permission during the pandemic, we were able to secure agreement to carry out and complete a preliminary survey for this project.

This was in its early stages by the end of the reporting year and will be an early priority for the next 12 months.

We use the evidence that was gathered to support a strand within the project on women serving long sentences in particular.

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“Invisible women” was published in the summer of 2021, and has led to the formation of one network group in Low Newton, with another planned for HMP Send.

We have not been able to complete this work, which will be picked up as part of the “Ageing Inside” strand.

Although hampered by the pandemic, these links have been established.

In addition, David Maguire, representing PRT as the only external body invited to sit on a scrutiny panel looking at the future of interventions within prisons, was able to represent what prisoners have told us about the significant challenges and shortcomings with intervention programmes. Having been part of the panel since September 2019 up until its conclusion in January 2022, PRT’s contribution was recognised by the HMPPS deputy director of reducing reoffending as: “unique input, {that} provided important insights and challenged our thinking to the benefit of the overall programme... {we} have valued your commitment and input as we have edged towards a potential new approach to accredited programmes.”

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

This time last year we said we would:

The Commission’s report was published on 16 June, after the end of this reporting year – a delay occasioned largely by a desire to secure coverage on Radio 4, which we achieved. In the event, it has coincided with a serious attack by the government on the prospects for progression of indeterminate and long sentence prisoners. There has never been a more important moment for a

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balanced and thoughtful contribution to the issue of how the most serious crime should be punished and the people who commit it given some hope for the future.

A and I has adapted ceaselessly, all under the pressure of an unprecedentedly high workload, including a record number of safeguarding contacts.

This work has continued, though hampered by the sheer volume of casework

Circumstances did not permit, unfortunately, with significantly reduced ROTL from prisons all year. The absence of a trainee placed even more pressure on the rest of the A & I team.

This project is nearing completion.

After several years of trying, we finally found a sympathetic policy contact in HMPPS for this work and plan to take it forward with the deputy director for the female estate.

We have had monthly meetings with this team, and they have made extensive use of Covid Action Prisons Project: Tracking Innovation, Valuing Experience( CAPPTIVE) and other PRT outputs. This has been one of the most important areas of activity during the reporting period, and we are optimistic that despite operational and political headwinds, it will produce a positive and principled framework for what life in prison should be like for the people who live there. It has underlined the importance of our work to engage prisoners in the policy process. On this theme we said we would:

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We did this in the context of the Building Futures programme.

This is not yet in operation, and remains an ambition for 2022/23.

We are taking this forward specifically in the context of young adult women, and expect to complete early in the new reporting year.

This was overtaken by a separate CAPPTIVE consultation to inform future regime design, producing the report “It doesn’t have to be like this”.

There are over 1000 PPN members, including a growing community of people who have joined in prison but now left. PPN members have been active in numerous focus groups and discussion workshops, with the Prison Leavers project on therapeutic interventions, and resettlement passport, as well as user design of phone apps for those with learning disabilities and acquired brain injury. They have taken part in discussions about the trial and plea bargaining process with a partner organisation Fair Trials, and on prisoner experiences of interventions for heroin use whilst in prison as well as work with the Nuffield Trust on women’s healthcare.

PPN team members and PPN community members continue to be sought out for membership of Advisory Boards for university research and are currently engaged in projects with:

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The PPN team has continued to work very closely with Unlocked Graduates, with team members being involved in the recruitment and assessment process, induction training, as well as hosting a panel discussion at the Unlocked Graduates Summer conference with 4 PPN members, One PPN member was supported to secure a paid role with Unlocked Graduates to work as a trainer at the Summer School. The team led a session for officer keyworkers at Highpoint prison to discuss the challenges of key working with IPP prisoners.

The team’s head, Paula Harriott, has undertaken multiple speaking engagements, most notably in the Channel Islands for Lloyds Bank Foundation, including a visit to Guernsey Prison. She has presented to the strategy team of the Save the Children global fund about the need to focus resources on support for the children of incarcerated parents. In Northern Ireland and Scotland, she has been working to support the launch of lived experience networks. The Secret life of Prisons podcast continues to flourish and was yet again nominated in the Radio Academy awards as one of the top five independent podcasts.

Promoting equality and human rights in the justice system

This time last year we said we would:

This was not possible because of the restrictions in prisons, but a workshop was completed in HMP Belmarsh shortly after the year’s conclusion.

We finally secured a first meeting of an expert advisory panel with external membership to oversee the use of force generally, including PAVA. We have received monthly updates on the use of PAVA specifically and meet with the relevant officials every couple of months to review. Encouragingly, we have also been shown an unpublished but updated evaluation of the 4 original pilot sites for PAVA. We continue to liaise with the Equality and Human Rights Commission (EHRC,) since the data shows disproportionate use against people from ethnic minorities, and a continuing absence of data on people with disabilities. Our view is that the care taken over evaluation and the still very slow progress of the national rollout of PAVA may owe something to the degree of very detailed scrutiny and challenge we have provided. The importance of external involvement in an expert advisory group is that we will be able to share that role with bodies like the inspectorate and independent advisory panel on deaths in custody amongst others. The Chief Inspector continues to take a close and helpful personal interest, with prison reports regularly commenting on the issue.

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We have done this and highlighted the inadequacy of equality assessments for both the Police, Crime, Sentencing and Courts (PCSC) bill and the Prison Strategy white paper. We have not yet secured the publication of the HMPPS Race Action Programme.

The review has stalled, partly because of the pandemic but also with significant changes in personnel in both Youth Justice Board (YJB) and HMPPS. But it also owes much to the disastrous failure of both Rainsbrook and Oakhill STCs during the year and the firefighting that all of those involved in the system have been doing as a result. The “secure school” at Medway appears no closer to opening. So the opportunity to press for the strategy that is still desperately needed has been minimal.

We contributed fully both to the decision in the National Audit Office (NAO) to review the implementation of the Female Offender Strategy and to the review itself. Its conclusions referenced PRT directly and rested heavily on the analysis which we provided. We can say with confidence that we have forced the department to give this the attention which it has been denied since the strategy was published in 2018. We continue to be a major voice in this area, and to punch above our weight.

PRT Associate Sarah Beresford is continuing the work on Child Impact Assessments for children with a mother in the criminal justice system. It has been agreed that Sarah will produce a toolkit (to be published in October 2022) that can be used by any relevant partnership groups (e.g. Criminal Justice Boards, local authorities, Women’s Alliances, etc.) to pilot the use of Child Impact Assessments. The toolkit will clarify the purpose of a Child Impact Assessment and will explore how this might be used at every stage of a mother’s journey (arrest, court, imprisonment or community sentence, release) to ensure children are meaningfully and appropriately involved in decision-making about any support they may need.

Drawing on a year-long consultation process, which has given rise to a wide range of feedback from children and mothers with lived experience, statutory and voluntary sector staff who support them, as well as policy makers, the toolkit will comprise case studies and practical tools (e.g. a podcast) to paint a picture of how the Child Impact Assessment might be piloted in various contexts.

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In the event, the persistence of the pandemic meant that we devoted PPN energies to continuing the work of reflecting the prisoner experience of lockdown and, latterly, to informing the work to design new post-pandemic regimes. But with the assistance of the PPN advisory board, the groundwork for this consultation was completed and it has been launched in May 2022.

Learning difficulties and disabilities

Over the last decade, PRT played a prominent role in highlighting the discrimination suffered by people with learning difficulties and disabilities, helping to transform the provision of liaison and diversion services in the criminal justice system. That leadership has, for a number of years, been recognised by the Open Society Foundation, which has again provided very substantial funding for the PRT colleague who leads that work, Jenny Talbot OBE, to co-ordinate a major international programme to promote awareness and good practice overseas and continue the learning process within the UK.

Around the globe, people with disabilities confront unfairness and discrimination in justice systems: from interactions with law enforcement, to reporting crimes, restrictions on serving as witnesses, appointing and instructing defence counsel, and lack of accommodations for participating in legal processes. Law enforcement and justice systems continue to play a role in depriving people with disabilities of their liberty through involuntary psychiatric commitment and other forms of forced institutionalisation. People with disabilities are over-represented in jails and prisons. Deep-seated assumptions about the capacity of people with disabilities reinforce inequitable access to justice. These are rooted in discriminatory laws and policies denying personhood and participation, and are frequently compounded by systemic racism, classism, sexism, and heteronormativity.

Two years ago, the Open Society Foundations (OSF) began developing a global Hub of activists from the disability and criminal justice fields involved in cutting-edge reform efforts in their respective regions. These include Africa, Asia, Europe, and the Americas. Pooling their expertise, members of the Access to Justice Knowledge Hub (the Hub) work to create new standards and tools to challenge discrimination and ensure justice systems function in line with the Convention on the Rights of Persons with Disabilities (CRPD).

To date, the work of the Hub has been organised around three interrelated areas, and each of these will be explored during the 2022 inaugural Access to Justice Institute, facilitated by Jenny Talbot with support from PRT colleagues:

Following the Institute, and with input from our new Fellows, it is expected that new areas of work will be developed to continue to build upon existing activities.

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

Under this heading we said we would:

Further podcasts have been produced, notably one featuring Jimmy McGovern discussing the TV series “Time”.

This fell victim to Covid, and in particular to the fact that both education departments and libraries, on which we depend to encourage participation, were largely not operating in prisons.

Both editions have been published, although we have moved the December version to January on a permanent basis to make sure we can incorporate the most up to date numbers. The January edition’s opening section, on public knowledge about sentencing, has helped secure a Justice select committee inquiry promised for 2022/23.

The history has been published, and we believe contributed to a surge in individual donations in December and January.

We published the HDC briefing in April 2021 but decided not to pursue the overcrowding briefing for lack of fresh data.

We have had more traction on IPPs than on the first report. The “No life, no freedom, no future” report was regularly quoted in the progress of the PCSC bill and formed the substance of our evidence to the Justice Committee inquiry on IPPs. Dr Mia Harris gave expert oral evidence to that committee based on the report.

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IT and capacity issues have made this go more slowly than we wanted, but we are now testing some simple hypotheses against the data.

The APPG has continued to operate remotely, and we have a new chair in Paula Maynard MP, following the retirement of Lord Ramsbotham.

This was completed shortly after the end of the reporting year and represents both a major improvement and the fulfilment of a long-held ambition.

We hosted a successful webinar on PRT’s 40[th] birthday history.

We have achieved this against the odds, given the overwhelming news focus on the pandemic. Our links with both Inside Time and Prison Radio are very strong, and both have played a key role during the extended lockdown of the last two years. They have been key to recruiting members for both the PPN and Building Futures networks.

We continue to devote resource to making detailed and persuasive response to consultations. In the reporting year we responded to the following consultations:

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Charity Governance Code

The trustees undertook a review and assessment of PRT, using the Charity Governance Code and the seven principles, (leadership, integrity, decision-making, risk and control, board effectiveness, diversity, openness and accountability) which all underpin organisational purpose. The review resulted in a revised Equalities, Diversity and Inclusion policy and statement.

Priorities and new work for 2022/23

Predicting our future environment has always been difficult, but the uncertainties that continue to surround public health, the disintegration of normal political life, the crisis in cost of living and the continuation of a major European war all conspire to make the next 12 months even more uncertain than usual. Already, the government has delivered a Queen’s speech which has the potential to occupy a good deal of our energy. It is far from clear whether legislation on radical and unwelcome changes to the parole system will be brought forward, but administrative changes already announced create much the same need for us to lobby intensively for their reversal or mitigation. A major assault on the human rights of prisoners seems certain the context of the proposed Bill of Rights, and we are already liaising with others in civil society whose interests go well beyond prisons.

IPP reform will remain a key priority, where the report due from the Justice Committee in the summer should provide a lever to return to subjects raised during the PCSC Bill. They will also include race, where the major project for the PPN this year will be an investigation into how prisoners’ experience is affected by their race and creating opportunities to promote the longterm debate on sentencing called for by the Independent Commission into the Experience of Victims and Long-Term Prisoners (ICEVLP) report.

However, an implication of a policy environment where so much has already been promised is that our attention should properly also be focused on the detail of how policy can best be implemented. This is where prisoner participation through the PPN, the Building Futures programme and the day-to-day insight we gain from the advice and information service has so much to contribute. Contributing to the design of future regimes remains a key priority.

Research has been difficult during the pandemic, with access limited both by the suspension of the HMPPS approvals process and of course by the difficulty of getting into prisons. We will soon complete a study into the use of ICT in prisons, but we have also been laying the groundwork for research which will use the immense amounts of data available to us because of an agreement to access MQPL survey outcomes, and through the government’s “datafirst” programme which is gradually releasing data from the last 10 years drawn from operational information systems in

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police, courts, prison and probation settings. We also hope to be able to start work on a study of how prisoners can contribute to the recruitment, development and appraisal of prison officers.

The list of specific objectives we suggest for 2022/23 reflects this context:

Change who goes to prison and for how long

Improve life in prison

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Get the facts about prison and prisoners better known

Promote equality and active citizenship

Conclusion

The operating context for prisons in 2022/23 looks set to be extremely challenging, with rising prisoner numbers and the real prospect of falling staff numbers. We should expect a good deal of our attention to be given over to the issues that creates, informing the public and pressing ministers to mitigate impacts which are the product to a large extent of policy choices that they have made. It is entirely possible that we will also continue to be dealing with a system hobbled by Covid-related restrictions. Given the hostile policy climate, it makes sense for us to play to our strengths of influence behind the scenes, constant attention to detail, and, increasingly, of

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securing the influence of prisoners in the decision-making processes that determine their futures. Though it is already clear that the appetite to use prison issues for political advantage continues unabated and our skills in parliamentary and media facing work will once again be required more than we might have anticipated. We must continue to balance our interest in the long term – reducing the unnecessary use of imprisonment – with the short-term imperative to improve conditions for people in prison now and protect their human rights.

This will be the final year of our current 5-year strategic plan, and we will consult over the summer and autumn to inform the production of a new 5-year strategic plan to begin in April 2023.

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. Work to create a new five-year strategic plan, beginning in 2023, is underway.

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 on 31 March 2022 was 15, (31 March 2021:14)

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.

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

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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. Two trustees stepped down during the financial year (Ann Hagell and Michelle Nelson). Three trustees joined during the financial year (Shadae Cazeau, David Gauke and Rebecca Page).

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 regarding induction and training. Outside of the 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 2021/22 overall income exceeded expenditure by £279,760 (2021: income exceeded expenditure by £15,806). Total incoming resources for the year to 31 March 2022, including legacies, grants and donations, was £1,906,759, compared to £1,493,191 in 2021.

Income included a grant from the Open Society Foundation of £435.350. Unusually, this sum is to span three years of programme expenditure and was paid upfront it is restricted to a single programme.

Unrestricted grant, donation, subscriptions, and legacy income shows an increase of approximately 21% (£83,319) from £390,460 in 2021 to £473,779 in 2022, (note 2).

Included in ‘Other trading activities’ in the Statement of Financial Activities are fee income of £56,101 and a reimbursement of £2,154, giving a total of £58,255. In 2021, ‘Other trading activities’ comprised £35,851 fee income and £115, 382 furlough income, totalling £151,233. No furlough income was claimed in 2022. Overall unrestricted income was £530,069, a decrease of £12,045 from 2021 (£542,114).

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Trustees’ annual report

For the year ended 31 March 2022

The Northmoor Trust made a donation in 2019 and this was designated, to specific purposed by trustees who agreed to use the designation largely over three financial years from 2019. £97,179 remains from £500,000 after this third financial year. The residual funds will be used to cover new roles created as a result of the funding for an additional year.

Restricted income shows approximately 45% increase of £425,613, from £951,077 to £1,376,690. This is explained by the receipt of three years of funding for the Open Society Foundation programmes in the 2022 financial year (£437,504).

Further details of funders who generously provided support for restricd 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 Emmanuel Kaye Foundation; the Miranda Fund; the 29th May 1961 Charitable Trust; the AB Charitable Trust; the PR& SH Southall Charitable Trust.

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 estates of Margaret Bryer, Janet Trevelyan, Jill Stephenson, Hans Toch and Averil Stedeford, (note 2).

Total resources expended in the year amounted to £1,626,999, compared to £1,477,385 in the previous financial year, an increase of approximately 10% and amounting to £149,614. Net assets at the year-end totalled £1,530,321 of which 5% were represented by fixed assets. The charity’s net liquid assets at the year-end covered approximately 10 months’ total operating costs.

In the 2021/22 financial year the Prison Reform Trust deployed unrestricted reserves to support programmes in the sum of £15,461 (2021: £25,280). This is shown as ‘Transfers between funds’ in the Statement of Financial Activities, and is further detailed in note 15a.

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 continues to benefit from by the co-option of a specialist member, Neil Yazdani, with specific financial expertise.

22

Prison Reform Trust

Trustees’ annual report

For the year ended 31 March 2022

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.

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

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 (or one month) 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 £367,669 (2021: £339,677) for the financial year (approximately 2.5 months total expenditure on 2022 results). Restricted funds total £987,373 (2021: £567,783), 7.5 months total expenditure. Together, amounting to £1,355,042, 10 months expenditure, (2021: £907,460, 7.3 months).

Designated funds consist of cash of £97,179 (2021: £261,451) which will be spent over the next financial year, (on extensions of posts created as a result of the designated funding), and a lease with a value of £78,100.

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 Prison Reform Trust is registered with the Fundraising Regulator and the Information Commissioner’s Office.

23

Prison Reform Trust

Trustees’ annual report

For the year ended 31 March 2022

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, (subscriptions).

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).

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.

24

Prison Reform Trust

Trustees’ annual report

For the year ended 31 March 2022

In so far as the trustees are aware:

This confirmation is given and should be interpreted in accordance with the 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 2022 was 15 (2021: 14). The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

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 22 September 2022 and signed on their behalf by

James Timpson OBE Chair

25

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 2022 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.

26

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:

27

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:

28

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.

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.

29

Independent auditor’s report

To the members of

Prison Reform Trust

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)

28 October 2022

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

30

Prison Reform Trust

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

For the year ended 31 March 2022

2022 2021
Unrestricted Restricted Total Unrestricted Restricted Total
Note £ £ £ £ £ £
Income from:
Grants, donations and legacies 2 473,779 - 473,779 390,460 - 390,460
Charitable activities 3
1
Reducing unnecessary imprisonment		 - 518,793 518,793 - 532,291 532,291
2
Improving treatment & conditions for prisoners
and their families - 314,993 314,993 - 224,993 224,993
3
Promoting equality and human rights in the
justice system - 435,350 435,350 - 114,800 114,800
4
Informing the public, Parliament and policy
development - 105,400 105,400 - 78,993 78,993
Other trading activities 56,101 2,154 58,255 151,233 - 151,233
Interest 189 - 189 421 - 421
Total income 530,069 1,376,690 1,906,759 542,114 951,077 1,493,191
Expenditure on:
Raising funds 30,000 - 30,000 30,000 - 30,000
Charitable activities
1
Reducing unnecessary imprisonment		 305,974 401,199 707,173 333,195 370,212 703,407
2
Improving treatment & conditions for prisoners
and their families 193,576 314,574 508,150 210,797 232,505 443,302
3
Promoting equality and human rights in the
justice system 43,711 149,448 193,159 47,599 64,627 112,226
4
Informing the public, Parliament and policy
development 81,177 107,340 188,517 88,398 100,052 188,450
Total expenditure 4 654,438 972,561 1,626,999 709,989 767,396 1,477,385
Net income / (expenditure) for the year 5 (124,369) 404,129 279,760 (167,875) 183,681 15,806
Transfers between funds 15 (15,461) 15,461 - (25,280) 25,280 -
Net movement in funds (139,830) 419,590 279,760 (193,155) 208,961 15,806
Reconciliation of funds:
Funds brought forward 682,778 567,783 1,250,651 875,933 358,822 1,234,755
Total funds carried forward 542,948 987,373 1,530,321 682,778 567,783 1,250,561

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.

31

Prison Reform Trust

Company no. 2906362

Balance sheet

As at 31 March 2022

Note
Fixed assets:
10
Current assets:
11
Liabilities:
12
15
Total unrestricted funds:
Debtors
Restricted income funds
Unrestricted income funds
Designated funds (Northmoor Trust)
The funds of the charity:
Creditors: amounts falling due within one year
Net current assets
Total net assets
Cash at bank and in hand
Tangible assets
Total charity funds
Designated funds (lease)		 £
62,333
1,446,117		 2022
£
78,100
1,452,221		 £
31,747
1,177,935		 2021
£
81,650
1,168,911
1,508,450
(56,229)		 1,209,682
(40,771)
367,669
97,179
78,100		 339,677
261,451
81,650
1,530,321 1,250,561
987,373
542,948		 567,783
682,778
1,530,321 1,250,561

Approved by the trustees on 22 September 2022 and signed on their behalf by

James Timpson OBE Chair

32

Prison Reform Trust

Statement of cash flows

For the year ended 31 March 2022

Reconciliation of net expenditure to net cash flow from operating activities

Net income for the reporting period
Interest income
(as per the statement of financial activities)
Net cash used in investing activities
Depreciation charges
Increase in debtors
Increase in creditors
Net cash from/(used in) operating activities
Purchase of fixed assets
Cash flows from investing activities:
Interest income
Net cash from/(used in) operating activities
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		 £
£
274,520
189
(6,527)
(6,338)
268,182
1,177,935
1,446,117
2022		 £
£
274,520
189
(6,527)
(6,338)
268,182
1,177,935
1,446,117
2022		 2022
£
279,760
10,077
(189)
(30,586)
15,458		 2021
£
15,806
13,584
(421)
57,791
24,485
274,520 111,245
268,182
1,177,935		 101,632
1,076,303
1,446,117 1,177,935

33

Prison Reform Trust

Notes to the financial statements

For the year ended 31 March 2022

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 open throughout the financial year, the government staff retention scheme was not accessed. There is no current assessment that staff contracts will be affected, other than in the normal course of events, in the period to September 2023. 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.

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

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

i) Fund accounting

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.

34

Prison Reform Trust

Notes to the financial statements

For the year ended 31 March 2022

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.

35

Prison Reform Trust

Notes to the financial statements

For the year ended 31 March 2022

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 charitable activities (unrestricted)

Income from charitable activities (unrestricted)
Unrestricted charitable activity-Grants
Esmée Fairbairn Foundation
Hadley Trust
J Leon Charitable Fund
Alchemy Foundation
AB Charitable Trust
Other
Other
Gifts & donations
Total unrestricted income from charitable
activities
Grants (see below for list of funders)
Legacies		 Unrestricted
£
257,000
146,671
70,108
56,290		 £
-
-
-
-
Restricted		 2022
Total
£
257,000
146,671
70,108
56,290		 Unrestricted
£
274,192
111,268
5,000
151,654		 £
-
-
-
-
Restricted		 2021
Total
£
274,192
111,268
5,000
151,654
530,069 - 530,069 542,114 - 542,114
60,000
70,000
-
30,000
40,000
57,000		 -
-
-
-
-
-		 60,000
70,000
-
30,000
40,000
57,000		 50,000
50,000
25,000
30,000
40,000
79,192		 -
-
-
-
-
-		 50,000
50,000
25,000
30,000
40,000
79,192
257,000 - 257,000 274,192 - 274,192

Legacies derived from the estates of: Margaret Bryer (£2,000); Janet Trevelyan (£1,000); Jill Stephenson (£24,637); Hans Toch (£35,804) & Averil Stedeford (£6,667).

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
Hadley Trust
Porticus UK Foundation
Goldsmiths' Company
Blagrave Trust
Rank Foundation
Lankelly Chase Foundation
AB Charitable Trust
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
£
-
-		 £
-
518,793
Restricted		 2022
Total
£
-
518,793		 Unrestricted
£
-
-		 £
27,416
504,875
Restricted		 2021
Total
£
27,416
504,875
- 518,793 518,793 - 532,291 532,291
-
-
-
-
-
-
-		 130,000
84,993
30,000
30,000
10,000
30,000
-		 130,000
84,993
30,000
30,000
10,000
30,000
-		 -
-
-
-
-
-
-		 150,000
49,993
-
-
-
-
25,000		 150,000
49,993
-
-
-
-
25,000
-
 314,993 314,993 - 224,993 224,993

36

Prison Reform Trust

Notes to the financial statements

For the year ended 31 March 2022

Income from charitable activities (restricted) continued ntinued
Unrestricted
£
The Open Society Foundation
-
Other
-
-
The Bromley Trust
-
Rank Foundation
-
Persula Foundation
-
Barrow Cadbury Trust
-
Porticus UK Foundation
-
Other
-
-
-
Sub-total for informing the public, Parliament
& policy development
Total restricted income from charitable
activities
Sub-total for promoting equality & human
rights in the justice system
Informing
the
public,
Parliament
&
policy
development
Promoting equality & human rights in the
justice system		 Unrestricted
£
-
-		 £
435,350
2,154
Restricted		 2022
Total
£
435,350
2,154		 Unrestricted
£
-
-		 £
114,800
-
Restricted		 2021
Total
£
114,800
-
- 437,504 437,504 - 114,800 114,800
40,000
-
20,000
45,400
-
-		 40,000
-
20,000
45,400
-
-		 -
-
-
-
-
-		 30,000
-
-
19,000
29,993
-		 30,000
-
-
19,000
29,993
-
- 105,400 105,400 - 78,993 78,993
- 1,376,690 1,376,690 - 951,077 951,077

37

Prison Reform Trust

Notes to the financial statements

For the year ended 31 March 2022

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 2022
Total expenditure 2021		 Cost of
raising funds
£
19,241
-
-
-
-
-
-
-
-
-
10,759		 Charitable activities Charitable activities Governance
costs
£
-
140
-
-
-
892
-
-
-
-
445		 Support
costs
£
497,833
7,149
46,888
688
3,287
18,160
2,236
60
(109,375)
10,077
145,958		 2022
Total
£
1,125,882
32,548
157,622
25,032
3,287
19,052
29,008
9,746
-
10,077
214,745		 2021
Total
£
1,119,654
6,603
100,199
-
21,534
17,378
45,300
10,029
-
13,584
143,104
Reducing
unneccessary
imprisonment
£
259,036
10,603
26,552
-
-
-
4,069
1,256
95,581
-
4,102		 Improving treatment
& conditions for
prisoners & their
families
£
240,249
12,412
19,751
658
-
-
10,220
8,430
5,000
-
17,854		 Promoting
equality & human
rights in the
justice system
£
38,349
2,186
63,581
23,686
-
-
630
-
6,034
-
14,982		 Informing the
public, Parliament,
and policy
development
£
71,174
58
850
-
-
-
11,853
-
2,760
-
20,645
30,000
-
-		 401,199
305,250
724		 314,574
193,118
458		 149,448
43,608
103		 107,340
80,985
192		 1,477
-
(1,477)		 622,961
(622,961)
-		 1,626,999
-
-		 1,477,385
-
-
30,000 707,173 508,150 193,159 188,517 - - 1,626,999 1,477,385
30,000 703,407 443,302 112,226 188,450 - -

38

Prison Reform Trust

Notes to the financial statements

For the year ended 31 March 2022

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 2021		 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
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
-
-
30,000 703,407 443,302 112,226 188,450 - - 1,477,385

39

Prison Reform Trust

Notes to the financial statements

For the year ended 31 March 2022

This is stated after charging / (crediting):

This is stated after charging / (crediting):
2022 2021
£ £
Depreciation 10,077 13,584
Auditor's remuneration (including VAT):
Audit 9,840 9,360
Under accrual from prior year - -
Trustee's indemnity insurance 892 886

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 personal pension schemes
Employer’s contribution to defined contribution pension schemes		 2022
£
959,844
98,288
53,918
13,832		 2021
£
953,284
99,817
53,434
13,119
1,125,882 1,119,654

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

2022 2021
No. No.
£90,000 - £99,999 1 1

The total employee benefits (including pension contributions and national insurance) of the key management personnel were £98,797 (2021: £96,862).

The charity trustees were not paid or received any other benefits from employment with the charity in the year (2021: £nil). No charity trustee received payment for professional or other services supplied to the charity (2021: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £140 (2021: £nil) incurred by 1 (2021: 0) member relating to attendance at meetings of the trustees. Training expenses were £nil (2021: £nil). Hospitality and refreshments totalled £445, and insurance £892.

7 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 26 (2021: 26).

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		 2022
Approx.
head count
4.5
10
1.5
5
5		 2021
Approx.
head count
5.5
9.5
1
5.5
4.5
26 26

40

Prison Reform Trust

Notes to the financial statements

For the year ended 31 March 2022

8 Related party transactions

One grant was received from 29 May Charitable Truste for whom a PRT trustee, Elizabeth Rantzen, is also a trustee (2021: none). Aggregate donations from related parties were £2,200, reimbursement from the Chair, James Timpson, for staff and volunteer Christmas meal (2021: £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

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
Cost or valuation
Depreciation		 Leasehold
property
£
177,500
-		 Fixtures and
fittings
£
44,476
-		 Computer
equipment
£
88,797
6,527		 Total
£
310,773
6,527
177,500 44,476 95,324 317,300
95,850
3,550		 44,476
-		 88,797
6,527		 229,123
10,077
99,400 44,476 95,324 239,200
78,100 - - 78,100
81,650 - - 81,650

All of the above assets are used for charitable purposes.

11 Debtors

Debtors
Accrued income
Taxation, social security, pensions
Creditors: amounts falling due within one year
Other debtors
Prepayments
Other creditors
Trade creditors
Accruals & deferred income (note 13)
Charge card		 2022
£
33,257
18,376
10,700		 2021
£
12,495
12,605
6,647
62,333 31,747
2022
£
14,744
261
-
4,264
36,960		 2021
£
32,225
811
1,022
473
6,240
56,229 40,771

41

Prison Reform Trust

Notes to the financial statements

For the year ended 31 March 2022

13 Deferred income

Deferred income comprises the annual payment of a grant from Goldsmiths, paid in March 2022 to be used over the course of the financial year commencing April 2022.

Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year
Balance at the end of the year		 2022
£
-
-
30,000		 2021
£
-
-
-
30,000 -

14a Analysis of net assets between funds (current year)

Net current assets
Tangible fixed assets
Net assets at the end of the year		 General
unrestricted
£
-
367,669		 £
78,100
97,179
Designated		 Restricted
£
-
987,373		 Total funds
£
78,100
1,452,221
367,669 175,279 987,373 1,530,321
General
unrestricted Designated Restricted Total funds
£ £ £ £
Tangible fixed assets - 81,650 - 81,650
Net current assets 339,677 261,451 567,783 1,168,911
Net assets at the end of the year 339,677 343,101 567,783 1,250,561

42

Prison Reform Trust

Notes to the financial statements

For the year ended 31 March 2022

15a 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
Advice & information service
Prisoner engagement
Improving treatment & conditions for
prisoners & their families
Promoting equality & human rights in the
justice system
Informing the public, Parliament & policy
development
Fixed asset fund
Active citizens-improving regimes
National Lottery-Building Futures
Independent Commission
All Party Parliamentary Penal Group
Bromley Briefings Prison Factfile
Communications & policy
Writing competition
Disability in prison-global
Northmoor Trust		 At the start
of the year
£
375,300
41,529
18,534
-
-
-
113,750
4,904
13,493
273		 Income &
gains
£
518,793
130,000
174,993
-
-
10,000
437,504
22,700
40,000
42,700		 Expenditure
& losses
£
401,199
184,948
119,626
-
-
10,000
149,448
18,594
55,535
33,211		 Transfers
£
-
13,419
-
-
-
-
-
-
2,042
-		 At the end of
the year
£
492,894
-
73,901
-
-
-
401,806
9,010
-
9,762
567,783 1,376,690 972,561 15,461 987,373
81,650
261,451		 -
-		 3,550
164,272		 -
-		 78,100
97,179
343,101 - 167,822 - 175,279
339,677
682,778		 530,069
-		 486,616
654,438		 (15,461)
(15,461)		 367,669
542,948
1,250,561 1,906,759 1,626,999 - 1,530,321

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

43

Prison Reform Trust

Notes to the financial statements

For the year ended 31 March 2022

15b 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
Disability in prison-global
Restricted funds:
Reducing unnecessary imprisonment
Improving treatment & conditions for
prisoners & their families
Advice & information service
Promoting equality & human rights in the
justice system
Informing the public, Parliament & policy
development
BIG Lottery-Reducing Women's Imprisonment
Prisoner engagement
Communications & policy
Bromley Briefings Prison Factfile
Director salary
Northmoor Trust
Fixed asset fund
All Party Parliamentary Penal Group
National Lottery-Building Futures
Writing competition
Independent Commission
Active citizens-improving regimes		 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

Purposes of restricted funds

In the financial year ended 31 March 2022, the Prison Reform Trust operated the following programmes through restricted funding:

Reducing unnecessary imprisonment

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

44

Prison Reform Trust

Notes to the financial statements

For the year ended 31 March 2022

15 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, Blagrave Trust, the Goldsmiths' Company and Lankelly Chase, the prisoner engagement programme involves and seeks views from those affected by the criminal justice system.

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 Rank Foundation.

Promoting equality & human rights in the justice system

Disability in prisons, global: This work is funded by the Open Society Foundation. This foundation gave funding in this financial year to expend over the next three financial years.

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: The Persula Foundation supports the communication and policy function.

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 £15,461 for the financial year (2021: £25,280).

Purposes of designated funds

Designated funds consist of: a single fixed asset fund, representing the lease at 15 Northburgh Street. There remains 22 years at the current rate of amortisation, and

A designated fund 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.

16 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.

45