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2022-03-31-accounts

REGISTERED COMPANY NUMBER: 02845852 (England and Wales) REGISTERED CHARITY NUMBER: 1037084

TRUSTEES' REPORT AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 MARCH 2022

FOR

THE JERICHO FOUNDATION

THE JERICHO FOUNDATION

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2022

Page
Trustees' Report 1 to 7
Report of the Independent Auditors 8 to 10
Statement of Financial Activities 11
Statement of Financial Position 12
Statement of Cash Flows 13
Notes to the Statement of Cash Flows 14
Notes to the Financial Statements 15 to 24
Detailed Statement of Financial Activities 25 to 26

THE JERICHO FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 30 MARCH 2022

The Trustees, who are also directors for the purposes of company law, have pleasure in presenting their report and the financial statements for the charitable company for the year ended 30 March 2022. The Trustees have adopted the provisions of 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 the Republic of Ireland (FRS 102) (effective 1 January 2019).

STRATEGIC REPORT

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

02845852 (England and Wales)

Registered Charity number

1037084

Registered office

196-198 Edward Road, Balsall Heath Birmingham West Midlands B12 9LX

Trustees

The Trustee and officers serving during the year and since the year end were as follows:

Graham Cook Michael Royal (resigned 18/11/21) Martin Warner (resigned 21/07/22) Eleanor Searley Zac Dixon Colin Marsh (appointed 21/07/22) David Wickens (appointed 21/07/22) Uniqua Brown (appointed 21/07/22) James Crystal (appointed 21/07/22)

Banker

Unity Trust Bank 9 Brindley Place Brimingham B1 2HB

Auditors

Copia Wealth & Tax Limited Chartered Accountants Statutory Auditors 8 Pendeford Place Pendeford Business Park Wobaston Road Wolverhampton WV9 5HD

Page 1

THE JERICHO FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 30 MARCH 2022

PERFORMANCE FOR THE YEAR 2021/22

Overall the 21/22 financial year went better than expected for Jericho with reasonable social impact and a financial surplus (compared with a break even budget).

It was a year in which Covid continued to affect the population but we saw much less serious illness and death and the world began to move on to new challenges: the Russian invasion of Ukraine, spiralling fuel and energy costs and a cost of living crisis.

Beneficiary recruitment was slightly down on 'normal' years due to the continuing uncertainty around Covid but despite this, overall, we supported 131 beneficiaries in the year of which over 100 undertook paid work in one of our social enterprises. 82% of leavers progressed onto positive outcomes, including 91% of completers and we delivered 5,393 person days of supported employment and £1.329m of social value (calculated using the Social Value Portal software).

Our Equiano Plus project, working with survivors of modern slavery, continued to go from strength to strength with beneficiaries taking up placements in Wood Shack, Reception, Change Kitchen and Cleaning during the year. In addition our thought leadership work around modern slavery included lecturing at Birmingham City University, radio interviews and contribution to significant policy reports including the CSJ's A Path to Freedom and Justice and Lord McColl's amendment to the nationality and borders bill. We also delivered modern slavery training for a range of corporates as diverse as the building company, Sir Robert McAlpine, and Santander bank.

We recruited 14 new apprentices during the year, in addition to continuing to support those already on programme. We also succeeded in progressing our Workwise project for Yr 10 and 11 kids at risk of exclusion with our first 7 pupils joining the programme. Workwise had previously been delayed by the Covid pandemic as schools had to focus on their internal Covid protocols.

Some of our Ignition Pathways job clubs came back to life during the year, but many remained closed as churches struggled with finding their new normal. We thus re-focussed on giving extra skills to volunteers who are already working with vulnerable individuals at food banks, pantry's, community hubs and debt advice centres, to equip them to have employment focussed conversations with their service users. We also expanded the programme to include coaching skills training, in recognition of the wider challenges many people are now facing.

Overall, it was a reasonable year for our social enterprises, with business returning to somewhere near normal in most areas and an overall contribution of circa £180k in the year which compares well with pre covid levels.

Jericho Cleaning in particular had an exceptional year with record turnover and profit levels. This is partly due to the increased attention on infection control caused by the pandemic, but also boosted by a number of contracts linked to the preparation works for the Commonwealth Games which was held in July/August 2022.

ReUsers saw foot fall return to around 80% of pre covid levels, but we also began to reap the rewards of last year's investment in infrastructure, with new departments opening in previously underutilised areas of the site. By the end of the year plans were in place for a return to 7 day opening and we had also started a work trial with a full time professional Ebayer, to increase our online retail income. At the time of writing (November 22), it is clear that both of these initiatives were excellent business decisions.

This year also saw us take our first steps on our journey towards being able to being able to offer accommodation to individuals with the repurposing of Timbers, a 6 bed HMO, as accommodation for vulnerable female survivors and the commencement on site of a project to create five 1 bed flats for survivors of domestic violence.

We also succeeded in securing a grant of £75k towards the refurbishment and extension of Change Kitchen's premises, which will triple the size of the kitchen space (and thus beneficiary capacity) as well as creating a hot food takeaway in which we can pilot an idea we have for a healthy vegetarian fast food chain.

This year Mike Royal left the Jericho board after serving a term of nearly 5 years. We are hugely grateful for the wisdom and energy that Mike brought to Jericho through some of our toughest years and wish him well with future endeavours. This also prompted us to commence a trustee recruitment process, with a focus on expanding the skill base and increasing lived experience on board. We are pleased to report that this process was very successful and, at the time of writing, we now have a strong and diverse board of 7 trustees who are well equipped to guide us in the season ahead.

Page 2

THE JERICHO FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 30 MARCH 2022

Objects of the Charity

The objects and mission statement as set out in the Memorandum of Association are:-

  1. To promote the relief of those in need, hardship, distress or other disadvantage due to youth, age, financial hardship, poverty, illness, disability or homelessness.

  2. To promote social inclusion for the public benefit by preventing people from becoming socially excluded, relieving the needs of those people who are socially excluded and assisting them to integrate into society.

For the purpose of this clause 'socially excluded' means being excluded from society, or parts of society, as a result of one of more of the following factors: unemployment; financial hardship; youth or old age; ill health (physical or mental); substance abuse or dependency including alcohol and drugs; poor educational or skills attainment; relationship and family breakdown; poor housing; crime (either as a victim of crime or as an offender rehabilitating into society).

  1. The relief of unemployment for the benefit of the public in such ways as may be thought fit, including assistance to find employment.

  2. To provide facilities in the interests of social welfare for recreation and leisure time occupation, with the object of improving the conditions of life for the inhabitants of the said city.

  3. To pursue any other charitable purpose which the charity thinks fit for pursuit, in conjunction with any of the charitable purposes aforesaid which are pursued under a Christian ethos.

Mission Statement

Jericho seeks to help those most disadvantaged in our communities

The mission statement used on a day to day basis is "Jericho supports individuals to become fulfilled, skilled and employed".

How our activities deliver public benefit

The Trustees confirm that they have complied with the duty in section 4 of the Charities Act 2006 to have due regard to the Charity Commission's general guidance on public benefit, 'Charities and Public Benefit'. Our main activities and who we try to help are described above. Our charitable activities focus on helping disadvantaged people to find solution to the problems they face and are undertaken to further our charitable purposes for the public benefit.

Strategies for achieving aims

In order to achieve our aims Jericho offers voluntary and paid work experience placements and/or apprenticeships in our social enterprise businesses (and partner enterprises) in the following vocational areas:

We also offer the following services, both to clients working in our social enterprise businesses, and to others who come to us through drop-in or outreach activities:

Advice and guidance

Page 3

THE JERICHO FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 30 MARCH 2022

In addition, we train and equip churches and other faith/community groups to run employability training courses and job clubs to help unemployed people in their local areas through the Ignition Pathways Programme.

We also support start-up businesses, social enterprises and charities through our co-working and business incubation facility called Jericho Workspace.

Financial Review

Income for the year amounted to £1,910,564 (2021: £1,833,095), whilst expenditure amounted to £1,831,766 (2021: £1,587,291). This gave rise to a surplus of £78,798 (2021: £245,804) and an increase in unrestricted funds for the year to £617,180, as shown on the Statement of Financial Activities.

Total funds carried forward at 30 March 2022 are £838,631 (2021: £759,833).

Reserves Policy

The Trustees have agreed a policy to aim towards maintaining reserves at a minimum level of 3 months' essential expenditure and a maximum of 6 months' expenditure. This will allow the charity to be resilient, properly manage its finances and deal with future funding issues. This means the required level of reserves is between £422,000 and £844,000. The Trustees have also decided that the best measure of reserves for the Charity is the unrestricted funds which amounted to £617,180.

Principal Funding Sources

During the year we received £761,987 (2021: £1,033,088) to provide focussed support for our clients. This funding used to be primarily from statutory sources, but is now mainly grant making trusts.

Social Enterprise / trading income amounted to £1,148,577 (2021: £800,007), which included Wood Recycling, ReUse, and Cleaning activities. These operations provide the supported work placements for clients.

We would like to thank all of the many individuals, churches, companies and grant making trusts that funded our work during the course of the year. This includes the following:

Arnold Clark Community Fund BBC Children in Need British and Foreign School Society (BFSS) Charles Brotherton Trust DCR Allen Charitable Trust Ecclesiastical Insurance Office plc Edgar E Lawley Foundation Esmee Fairbairn Foundation G J W Turner Trust Goldieslie Lodge Benevolent Fund Grantham Yorke Trust H E & E L Botteley Charitable Settlement IM Properties Plc Miss Albright Grimley Charity National Lottery Community Fund - Reaching Communities National Lottery Community Fund - Awards for all Paul Hamlyn Foundation Real Life Church R S Brownless Charitable Trust Souter Charitable Trust Sutton Coldfield Baptist Church Sutton Coldfield Charities The Alfred Haines Charitable Trust The Balcombe Charitable Trust The Clothworkers' Foundation

Page 4

THE JERICHO FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 30 MARCH 2022

The Edward Gostling Foundation The Edward & Dorothy Cadbury Charitable Trust The Eric W. Vincent Trust Fund The Eveson Charitable Trust The George Henry Collins Charity The Grimmitt Trust The Haramead Trust The Helianthus Charitable Trust The Henhurst Charitable Trust The Joseph Hopkins & Henry James Sayer Charity The Lillie C Johnson Charitable Trust The Prime Foundation The Rank Foundation The Roger & Douglas Turner Charitable Trust The Saintbury Trust The William A Cadbury Charitable Trust

Risk Management

All significant activities undertaken are subject to a risk review as part of initial project assessments and implementation. Major risks are identified and their potential impact and likelihood evaluated. These risks are kept under regular review by the Executive Management Team and the Trustees to satisfy themselves that adequate system and procedures are in place to manage the identified risks. Where appropriate, the risks are covered by insurance.

The following framework is central to ensuring adequate risk assurance:-

o Regular monitoring of major risks and development of action plans o Embedding risk identification and assessment within operating procedures o A clear structure of delegated authority and control o Review of key systems and procedures o Regular summary reports on risk management to the Trustees.

In assessing risk, the Trustees recognise that some areas of our work require the acceptance and management of risk if our key objectives are to be achieved.

Principal risks and uncertainties

The 3 main risks identified last year and the mitigating actions taken are:

Covid 19 related business risks

Clearly the impacts of the pandemic have continued to be our biggest single risk in the last year. We have continued to mitigate these risks through good infection control procedures, strict adherence to government guidance and, where appropriate, accessing Covid related grants and support. We have also adapted our social enterprise models to reflect changes in customer behaviour as a result of the pandemic, including significantly increasing our online retail activity.

Health and Safety risks

Health and Safety became a much bigger risk during the pandemic, so in the last year, we have continued to mitigate these risks by increased health and safety manager hours, intensive staff training and provision of 'best in class' Covid safety measures on all of our sites.

Financial risks i.e. relatively poor balance sheet, low reserves, poor cash flow

We have further reduced this risk over previous years through careful stewardship of existing resources and excellent fundraising, including securing £75k towards the refurbishment and extension of Change Kitchen's facilities at our Balsall Heath HQ building. Unrestricted funds/reserves have been maintained well above minimum levels and cash flow remains good.

Page 5

THE JERICHO FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 30 MARCH 2022

Future Plans

The Trustees and Senior Management Team revisited our strategic plan at a strategy day held in September 2021. The team agreed that this was not the time for radical change, as the post Covid future is still uncertain. However, they agreed some principles for our work in the year ahead as follows:

- Focus on growing social impact - not turnover, headcount or outputs - use the Social Value Portal to measure success.

- Invest in the right people in the right places to build a more resilient staffing structure and trustee board.

Structure, Governance and Management

Governing Document

The organisation is a charitable company limited by guarantee, incorporated on 18 August 1993 and registered as a charity on 28 April 1994. The company was established under a Memorandum of Association that established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up, members are required to contribute an amount not exceeding £10 per member.

Method of appointment of Directors and members

The Directors of the charity are the charity's trustees as defined by section 177 of the Charities Act 2011. The minimum numbers of directors is three. One third of the Directors come up for re-election every three years. The voting takes place at the AGM.

Any person wishing to become a member of the charity may apply to the charity in the form required by the Directors and must be approved by the Directors. The Directors may only refuse an application for membership if, acting reasonably and properly, they consider it to be in the best interests of the charity to refuse the application. If membership is granted to individuals or organisations which are not also Directors, an amendment to the Articles of Association of the charity will be required.

Induction and Training of Directors

New Directors are briefed on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the Board of Directors and its decision-making processes, future plans and recent financial performance. All Directors are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.

Organisational Structure & Decision Making

The Directors manage the business of the charity and may exercise all the powers of the charity unless they are subject to any restrictions imposed by the Companies Act, or the articles, or any special resolution. The Directors meet a minimum of four times a year to consider major decisions of the charity. There are currently no sub-committees of the Board of Directors.

The Chief Executive is responsible for the day-to-day management of the charity and for implementing policies agreed by the Directors. The Chief Executive is assisted by a group of senior managers (the Senior Management Team).

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of The Jericho Foundation for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

Page 6

THE JERICHO FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 30 MARCH 2022

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

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 those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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:

AUDITORS

The auditors, Copia Wealth & Tax Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Trustees' report, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 21 December 2022 and signed on the board's behalf by:

G Cook - Trustee

Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE JERICHO FOUNDATION

Opinion

We have audited the financial statements of The Jericho Foundation (the 'charitable company') for the year ended 30 March 2022 which comprise the Statement of Financial Activities, the Statement of Financial Position, the 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 (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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 this gives rise to a material misstatement in the financial statements themselves. 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:

Page 8

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE JERICHO FOUNDATION

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' Report.

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, 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.

Our 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 a Report of the Independent Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Page 9

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE JERICHO FOUNDATION

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 auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

S D Philpott

Shaun Philpott FCA (Senior Statutory Auditor) for and on behalf of Copia Wealth & Tax Limited Chartered Accountants Statutory Auditors 8 Pendeford Place Pendeford Business Park Wobaston Road Wolverhampton WV9 5HD

21 December 2022

Page 10

THE JERICHO FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 MARCH 2022

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Income from charitable activities
3
Total
EXPENDITURE ON
Raising funds
Raising donations and legacies
4
Charitable activities
5
Grants- support costs
Social enterprise activities
Charitable activities
Total
NET INCOME/(EXPENDITURE)
Transfers between funds
21
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
132,699
1,148,577
1,281,276
80,772
80,772
121,510
487,398
489,710
1,179,390
101,886
10,000
111,886
505,294
617,180		 Restricted
funds
£
629,288
-
629,288
-
-
-
-
652,376
652,376
(23,088)
(10,000)
(33,088)
254,539
221,451		 2022
Total
funds
£
761,987
1,148,577
1,910,564
80,772
80,772
121,510
487,398
1,142,086
1,831,766
78,798
-
78,798
759,833
838,631		 2021
Total
funds
as restated
£
1,033,088
800,007
1,833,095
59,868
59,868
110,733
353,481
1,063,209
1,587,291
245,804
-
245,804
514,029
759,833

The notes form part of these financial statements

Page 11

THE JERICHO FOUNDATION

STATEMENT OF FINANCIAL POSITION 30 MARCH 2022

Notes
FIXED ASSETS
Tangible assets
12
Social investments
13
CURRENT ASSETS
Stocks
14
Debtors
15
Cash in hand
CREDITORS
Amounts falling due within one year
16
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amounts falling due after more than one year
17
NET ASSETS
FUNDS
21
Unrestricted funds:
General fund
Revaluation reserve
Restricted funds
TOTAL FUNDS		 2022
£
588,930
660,379
1,249,309
162,783
171,773
379,629
714,185
(384,941)
329,244
1,578,553
(739,922)
838,631
495,729
121,451
617,180
221,451
838,631		 2021
as restated
£
550,377
600,000
1,150,377
99,707
203,884
359,830
663,421
(206,123)
457,298
1,607,675
(847,842)
759,833
380,024
125,270
505,294
254,539
759,833

The financial statements were approved by the Board of Trustees and authorised for issue on 21 December 2022 and were signed on its behalf by:

G Cook - Trustee

The notes form part of these financial statements

Page 12

THE JERICHO FOUNDATION

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 MARCH 2022

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Purchase of social investments
Net cash used in investing activities
Cash flows from financing activities
Loan repayments in year
Net cash used in financing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2022
a
£
313,163
(30,918)
282,245
(72,202)
(139,821)
(212,023)
(50,423)
(50,423)
19,799
359,830
379,629		 2021
s restated
£
446,048
(27,514)
418,534
(18,795)
-
(18,795)
(39,909)
(39,909)
359,830
-
359,830

The notes form part of these financial statements

Page 13

THE JERICHO FOUNDATION

NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 MARCH 2022

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES OPERATING ACTIVITIES
2022 2021
as restated
£ £
Net income for the reporting period (as per the Statement of Financial
Activities) 78,798 245,804
Adjustments for:
Depreciation charges 113,091 35,769
Interest paid 30,918 27,514
(Increase)/decrease in stocks (63,076) 168,763
Decrease in debtors 32,111 23,182
Increase/(decrease) in creditors 121,321 (54,984)
Net cash provided by operations 313,163 446,048

2.

ANALYSIS OF CHANGES IN NET DEBT

At 31.3.21 Cash flow At 30.3.22
£ £ £
Net cash
Cash at bank
and in hand 359,830 (340,031) 379,629
359,830 (340,031) 379,629
Debt
Debts falling due
within 1 year (24,613) (57,497) (82,110)
Debts falling due
after 1 year (847,842) 107,920 (739,922)
(872,455) 50,423 (822,032)
Total (512,625) (289,608) (442,403)

The notes form part of these financial statements

Page 14

THE JERICHO FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.

Going concern

The financial statements have been prepared on a going concern basis as the trustee believe that no material uncertainties exist. The trustee have considered the level of fund held and the expected level of income and expenditure for 12 month from authorizing these financial statement. The budgeted income and expenditure is sufficient with the level of reserve for the charity to be able to continue as a going concern.

Tangible fixed assets

Tangible fixed assets, other than freehold land, are stated at cost or valuation less depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the followings basis:

Freehold Property 2.5% Straight line
Equipment 25% Straight line

Taxation

The charity is exempt from corporation tax on its charitable activities.

2. DONATIONS AND LEGACIES

Unrestricted
funds		 Restricted
funds		 2022 2021
£ £ £ £
Donations received 24,645 8,125 32,770 481,017
Grants received 108,054 621,163 729,217 552,071
132,698 629,288 761,987 1,033,088

3. INCOME FROM CHARITABLE ACTIVITIES

2022 2021
£ £
Unrestricted funds
Social Enterprise activities
Income from charitable activities 1,076,959 717,409
Activity 3
Income from charitable activities 71,618 82,598
1,148,577 800,007

Page 15

continued...

THE JERICHO FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 MARCH 2022

4. RAISING DONATIONS AND LEGACIES

2022 2021
£ £
Unrestricted funds
Donations 80,772 59,868
80,772 59,868

5. COSTS OF CHARITABLE ACTIVITIES BY FUND TYPE

Unrestricted
Funds		 Restricted
Funds		 2022 2021
£ £ £ £
Grants and contracts - 227,912 227,912 253,615
Social enterprise activities 620,186 293,988 914,174 809,594
Support costs 478,434 130,474 608,908 464,214
1,098,620 652,376 1,750,994 1,527,423

Costs of charitable activities by activity type

Activities
undertaken
directly		 Support
costs		 2022 2021
£ £ £ £
Grants and contracts 227,912 121,510 349,422 364,348
Social enterprise activities 914,174 487,398 1,401,572 1,163,075
1,142,086 608,908 1,750,994 1,527,423

6. SUPPORT COSTS

Grants and
contracts		 Social
enterprise
activities		 2022 2021
£ £ £ £
Finance 6,814 27,333 34,147 29,104
Staff salaries & Related 51,572 206,861 258,433 214,326
Communication costs 1,063 4,263 5,326 5,654
Office costs 4,785 19,196 23,981 23,373
Premises costs 8,226 32,997 41,223 35,593
Deprecation 22,568 90,523 113,091 35,769
Legal and professional 16,793 67,360 84,153 61,499
Governance costs 9,689 38,865 48,554 58,896
121,510 487,398 608,908 464,214

Page 16

continued...

THE JERICHO FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 MARCH 2022

7. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

Depreciation - owned assets
Auditors' remuneration £6,000 (£5,400 in 2021).		 2022
as
£
33,649		 2021
restated
£
25,770

8. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 30 March 2022 nor for the year ended 30 March 2021.

Trustees' expenses

During the year no transactions have taken palace between the charity and the trustees and senior management team. The trustees consider that in certain circumstances it is in the interests of the charity for the trustees to use the services of the charity's social enterprises rather than alternative suppliers.

9. STAFF COSTS AND EMOLUMENTS

Totals staff costs for the period ended 30 March 2022 were:

2022 2021
£ £
Salaries and wages 1,062,439 888,531
Social security costs 78,040 59,926
Pension costs 44,335 28,904
1,184,185 977,361

The average number of employees for the year were 62 (57 in 2021).

There was one member of staff with the salary in the band range £60,001 to £70,000.

continued...

Page 17

THE JERICHO FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 MARCH 2022

10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted
Funds		 Restricted
Funds		 2021
£ £ £
Income and endowments from
Donations and legacies 467,392 565,696 1,033,088
Charitable activities 800,007 - 800,007
Total 1,267,399 565,696 1,833,095
Expenditure on:
Raising funds (59,868) - (59,868)
Charitable Activities (985,172) (542,251) (1,527,423 )
Total
1,045,040 (542,251) (1,587,291 )
Transfer between funds 10,000 (10,000) -
Net Movement in funds
232,359 13,445 245,804
Reconciliation of fund
Total Funds brought forward 272,935 241,094 514,029
Total fund carried forward 505,294 254,539 759,833

11. PRIOR YEAR ADJUSTMENT

During the year, the brought forward balance on the Revaluation Reserve was reviewed and found to be overstated at 30 March 2021 by £104,198 with a corresponding understatement of the General Unrestricted Fund. The Revaluation Reserve and Unrestricted General Fund balances as at 30 March 2021 have been restated accordingly.

continued...

Page 18

THE JERICHO FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 MARCH 2022

12. TANGIBLE FIXED ASSETS

Freehold
Property		 Equipment Total
£ £ £
Cost or Valuation
At 31st March 2021 550,000 355,367 905,367
Additions - 72,202 72,202
At 30th March 2022 550,000 427,569 977,569
Depreciation
At 31st March 2021 27,500 327,490 354,990
Charge 13,750 19,899 33,649
At 30th March 2022
41,250 347,390 388,640
Net Book Value
At 30 March 2022 508,750 80,179 588,929
At 30 March 2021 522,500 27,877 550,377

The Freehold Property was professionally revalued by Chivers Chartered Surveyors on 24 September 2019 on an open market basis £550,000.

In respect of freehold property stated at valuation, the comparable historic cost and depreciation values were as follows:

Historic cost
Accumulated deprecation
Net Book Value
.
13.
SOCIAL INVESTMENTS
MARKET VALUE
At 31 March 2021
Additions
Impairments
At 30 March 2022
NET BOOK VALUE
At 30 March 2022
At 30 March 2021		 2022(£) 2021(£)
681,129 681,129
(269,060) (252,031)
412,069 429,098
Programme
Related
Investment
£
150,000
-
(10,000)
140,000
140,000
150,000		 Mixed
Motive
Investments
£
450,000
139,821
(69,442)
520,379
520,379
450,000		 Totals
£
600,000
139,821
(79,442)
660,379
660,379
600,000

continued...

Page 19

THE JERICHO FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 MARCH 2022

13. SOCIAL INVESTMENTS - continued

The Mixed Motive Investments was professionally revalued by Chivers Chartered Surveyors on 24 September 2019 on an open market basis £450,000. This was prior to recent refurbishment, which was in progress at 30 March 2022.

14. STOCKS

Donated goods for resale
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Other debtors
Prepayments and accrued income		 2022
a
£
162,783
2022
a
£
115,683
1,209
54,881
171,773		 2021
s restated
£
99,707
2021
s restated
£
127,413
1,223
75,248
203,884

15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022
a
£
Bank loans and overdrafts (see note 18)
82,110
Trade creditors
19,473
Social security and other taxes
39,033
Other creditors
20,728
Accruals and deferred income
223,597
384,941
17.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2022
a
£
Bank loans (see note 18)
739,922		 2021
s restated
£
24,613
38,988
37,434
19,752
85,336
206,123
2021
s restated
£
847,842

continued...

Page 20

THE JERICHO FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 MARCH 2022

18. LOANS

An analysis of the maturity of loans is given below:

Amounts falling due within one year on demand:
Bank loans
Amounts falling due between two and five years:
Bank loans - 2-5 years
Amounts falling due in more than five years:
Repayable by instalments:
Bank loans more 5 yr by instal
19.
SECURED DEBTS
The following secured debts are included within creditors:
Secured Loan
The bank loan is secured on the fixed assets of the charity.
20.
ANALYSIS OF NET ASSETS BETWEEN FUNDS
Unrestricted
funds
£
Fixed assets
588,930
Investments
520,379
Current assets
632,734
Current liabilities
(384,941)
Long term liabilities
(739,922)
617,180		 Restricted
funds
£
-
140,000
81,451
-
-
221,451		 2022
a
£
82,110
328,440
411,482
2022
a
£
678,686
2022
a
Total
funds
£
588,930
660,379
714,185
(384,941)
(739,922)
838,631		 2021
s restated
£
24,613
328,440
519,402
2021
s restated
£
696,705
2021
s restated
Total
funds
£
550,377
600,000
663,421
(206,123)
(847,842)
759,833

continued...

Page 21

THE JERICHO FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 MARCH 2022

20. ANALYSIS OF NET ASSETS BETWEEN FUNDS - continued

Movement on Funds

At 31st
March 2021		 Income Expenditure Transfer At 30th
March 2022
Revaluation Reserve 125,270 (3,819) 121,451
General Fund 380,024 1,281,276 (1,179,390 ) 13,819 495,729
Total Unrestricted Funds 505,294 1,281,276 (1,179,390 ) 10,000 617,180
Restricted Funds
Salisbury Road 150,000 - - (10,000) 140,000
Arnold Clark Community Fund - 1,000 (1,000) - -
BBC Children in Need - 53,221 (53,221) - -
British and Foreign School Society
(BFSS)		 9,975 - (9,975) - -
Charles Brotherton Trust - 150 (150) - -
DCR Allen Charitable Trust - 3,000 (3,000) - -
Ecclesiastical Insurance Office plc 16,667 - (16,667) - -
Edgar E Lawley Foundation - 1,500 (1,500) - -
Esmee Fairbairn Foundation 41,087 66,961 (63,407) - 44,641
G J W Turner Trust - 2,000 (2,000) - -
Goldieslie Lodge Benevolent Fund - 1,000 (1,000) - -
Grantham Yorke Trust - 6,000 (6,000) - -
H E & E L Botteley Charitable
Settlement		 - 500 (500) - -
IM Properties Plc - 500 (500) - -
Miss Albright Grimley Charity - 500 (500) - -
National Lottery Community Fund -
Reaching Communities		 26,811 104,899 (104,899) - 26,811
National Lottery Community Fund -
Awards for all		 - 9,990 (9,990) - -
Paul Hamlyn Foundation - 130,000 (130,000) - -
Real Life Church - 1,000 (1,000) - -
R S Brownless Charitable Trust - 200 (200) - -
Souter Charitable Trust - 3,000 (3,000) - -
Sutton Coldfield Baptist Church - 6,625 (6,625) - -
Sutton Coldfield Charities - 113,212 (113,212) - -
The Alfred Haines Charitable Trust - 1,000 (1,000) - -
The Balcombe Charitable Trust 10,000 20,000 (10,000) - 10,000
The Clothworkers' Foundation - 15,000 (15,000) - -
The Edward Gostling Foundation - 5,000 (5,000) - -
The Edward & Dorothy Cadbury
Charitable Trust		 - 5,000 (5,000) - -
The Eric W. Vincent Trust Fund - 500 (500) - -
The Eveson Charitable Trust - 12,000 (12,000) - -
The George Henry Collins Charity - 2,000 (2,000) - -
The Grimmitt Trust - 2,000 (2,000) - -
The Haramead Trust - 5,000 (5,000) - -
The Helianthus Charitable Trust - 300 (300) - -
The Henhurst Charitable Trust - 750 (750) - -
The Joseph Hopkins & Henry James
Sayer Charity		 - 1,000 (1,000) - -
The Lillie C Johnson Charitable Trust - 500 (500) - -
The Prime Foundation - 980 (980) - -

continued...

Page 22

THE JERICHO FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 MARCH 2022

20. ANALYSIS OF NET ASSETS BETWEEN FUNDS - continued

The Rank Foundation - 30,000 (30,000) - -
The Roger & Douglas Turner Charitable
Trust		 - 1,000 (1,000) - -
The Saintbury Trust - 2,000 2,000 - -
The William A Cadbury Charitable
Trust		 - 20.000 20,000 - -
Total Restricted Funds 254,539 629,288 **(652,376) ** (10,000) 221,451
Total Funds 759,833 1,910,564 (1,831,766 ) - 838,631

21. MOVEMENT IN FUNDS

Unrestricted Funds

Balance at
31/03/2021		 Incoming
resources		 Outgoing
resources		 Balance at
Transfer
30/03/2022
General
General 380,024 1,281,276 (1,179,390 ) 13,819
495,729
380,024 1,281,276 (1,179,390 ) 13,819
495,729

Unrestricted Funds- Previous year

Balance at
31/03/2020		 Incoming
resources		 Outgoing
resources		 Balance at
Transfer
30/03/2021
General
General 144,368 1,267,399 (1,045,040 ) 13,297
380,024
144,368 1,267,399 (1,045,040 ) 13,297
380,024
Restricted Funds
Balance at
31/03/2021		 Incoming
resources		 Outgoing
resources		 Balance at
Transfer
30/03/2022
General
General 254,539 629,288 (652,376) (10,000)
221,451
254,539 629,288 (652,376) (10,000)
221,451
Restricted Funds- Previous year
Balance at
31/03/2020		 Incoming
resources		 Outgoing
resources		 Balance at
Transfer
30/03/2021
General
General 241,094 565,696 (542,251) (10,000)
254,539
241,094 565,696 (542,251) (10,000)
254,539

continued...

Page 23

THE JERICHO FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 MARCH 2022

22. RELATED PARTY DISCLOSURES

Mr Zac Dixon a Trustee, is a Director in Jericho Enterprises CIC, a company which was paid £139,821 for refurbishment works.

Mr Nick Wallace and Mr Richard Beard are members of the senior management team, and are Directors of Jericho Enterprises CIC.

Page 24

THE JERICHO FOUNDATION

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 MARCH 2022

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Grants
Income from charitable activities
Social Enterprise activities
Other
Total incoming resources
EXPENDITURE
Raising donations and legacies
Donations
Charitable activities
Social Enterprise activities
Grants and contracts
Support costs
Management
Wages
Finance
Bank charges and loan interest
Communication costs
Telephone
Office costs
Office costs
Premises costs
Premises costs
Legal and professional
Legal and professional
Other costs
Governance costs
Carried forward		 2022
£
32,770
729,217
761,987
1,076,959
71,618
1,148,577
1,910,564
80,772
914,174
227,912
1,142,086
258,433
34,147
5,326
23,982
41,223
84,153
48,553
48,553		 2021
as restated
£
481,017
552,071
1,033,088
717,409
82,598
800,007
1,833,095
59,868
809,594
253,615
1,063,209
214,326
29,104
5,654
23,373
35,593
61,499
58,896
58,896

This page does not form part of the statutory financial statements

Page 25

THE JERICHO FOUNDATION

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 MARCH 2022

FOR THE YEAR ENDED 30 MARCH 2022
Other costs
Brought forward
Depreciation of tangible fixed assets
Impairment of investment
Total resources expended
Net income		 2022
£
48,553
33,649
79,442
161,644
1,831,766
78,798		 2021
as restated
£
58,896
25,769
10,000
94,665
1,587,291
245,804

This page does not form part of the statutory financial statements

Page 26

Issuer Copia Wealth & Tax Document generated Thu, 22nd Dec 2022 19:13:26 UTC Document fingerprint f815a6ed13e94ca134a27345f52f2188

Parties involved with this document

Document processed Party + Fingerprint Fri, 23rd Dec 2022 6:22:48 UTC Mr Graham Irvin Cook - Signer (a22e1067e6f234e145048e07d71a14ad) Fri, 23rd Dec 2022 8:10:35 UTC Shaun Philpott - Signer (3060c48c78b0abe1a6c2c44ec73cf926)

Audit history log

Date Action Fri, 23rd Dec 2022 8:10:37 UTC Shaun Philpott viewed the envelope. (109.73.121.152) Fri, 23rd Dec 2022 8:10:35 UTC The envelope has been signed by all parties. (109.73.121.152) Fri, 23rd Dec 2022 8:10:35 UTC Shaun Philpott signed the envelope. (109.73.121.152) Fri, 23rd Dec 2022 8:09:17 UTC Shaun Philpott viewed the envelope. (109.73.121.94) Fri, 23rd Dec 2022 6:22:49 UTC Mr Graham Irvin Cook viewed the envelope. (213.129.74.45) Fri, 23rd Dec 2022 6:22:48 UTC Document emailed to party email (18.170.49.136) Fri, 23rd Dec 2022 6:22:48 UTC Sent the envelope to Shaun Philpott for signing. (213.129.74.45) Fri, 23rd Dec 2022 6:22:48 UTC Mr Graham Irvin Cook signed the envelope. (213.129.74.45) Fri, 23rd Dec 2022 6:16:55 UTC Mr Graham Irvin Cook viewed the envelope. (213.129.74.45) Fri, 23rd Dec 2022 6:16:55 UTC Mr Graham Irvin Cook viewed the envelope. (213.129.74.45) Thu, 22nd Dec 2022 19:13:38 UTC Document emailed to party email (35.177.221.199) Thu, 22nd Dec 2022 19:13:28 UTC Sent the envelope to Mr Graham Irvin Cook for signing. (13.40.96.128) Thu, 22nd Dec 2022 19:13:28 UTC Shaun Philpott has been assigned to this envelope. (13.40.96.128) Thu, 22nd Dec 2022 19:13:28 UTC Mr Graham Irvin Cook has been assigned to this envelope. (13.40.96.128) Thu, 22nd Dec 2022 19:13:28 UTC Envelope generated. (13.40.96.128) Thu, 22nd Dec 2022 19:13:28 UTC Document generated with fingerprint f83db43cd08648a2851918c01d19251d. (13.40.96.128) Thu, 22nd Dec 2022 19:13:28 UTC Document generated with fingerprint f815a6ed13e94ca134a27345f52f2188. (13.40.96.128) Thu, 22nd Dec 2022 19:13:26 UTC Envelope generated with fingerprint 9a2378373336f3c165ab8c740e19b718 (35.176.231.177)