**The Big Issue Invest Trust (A Company Limited by Guarantee)**
Report and Financial Statements
Year Ended
31 March 2021
**Company Registration No. 02995859 (England and Wales)**
**Charity Registration No. 1042514 (England and Wales)**
## **The Big Issue Invest Trust**
**Report and financial statements for the year ended 31 March 2021**
## **Contents**
## **Page:**
- 1 Trustees' report 8 Trustees' responsibilities 9 Independent auditor's report
- 12 Statement of financial activities (incorporating income and expenditure account)
- 13 Statement of financial position
- 14 Notes forming part of the financial statements
## **Trustees**
Parveen Bird Roger Hooley Mohamed Omer Lucy Findlay (appointed 8[th] April 2020) Rebecca Perlman (appointed 24[th] April 2020) Chair Timothy West (appointed 25[th] November 2020) Robert Gilligan (appointed 25[th] November 2020)
## **Company registration number**
02995859
## **Charity registration number**
1042514
## **Registered office**
113-115 Fonthill Road, London, N4 3HH
## **Bankers**
National Westminster Bank plc, 63 Piccadilly, London, W1A 2AG The Co-operative Bank plc, 1 Balloon Street, Manchester, M60 4EP Unity Trust Bank, 9 Brindley Place, Birmingham, B1 2HB
## **Solicitors**
Squire Sanders, Solicitors, Trinity Court, 16 John Dalton Street, Manchester, M60 8H8
## **Auditor**
BDO LLP, 55 Baker Street, London, W1U 7EU
## **The Big Issue Invest Trust**
## **Trustees' report for the year ended 31 March 2021**
|Parveen Bird|Parveen is a Director on The Big Issue Group Board, Big Issue Invest|
|---|---|
||(BII) Board, Big Issue Fund Management Board and Big Issue|
||Foundation Board. Her role is to ensure mission alignment and ensure|
||we continue to provide a hand-up to those who need it at the point of|
||need. Parveen has worked in various roles in the Publishing division at|
||The Big issue over the last ten years. Prior to that she spent ten years|
||working at the BBC and GMTV as a Broadcast Journalist.|
|Roger Hooley|After a long banking career and five years as Senior Commercial|
||Lending Manager at West Bromwich Building Society, Roger is now a|
||Head of In-Life Portfolio Management at Aldermore Bank. Roger joined|
||the Big Issue Invest Trust (BIIT) Board in 2010 and is Head of the joint|
||Credit Committee for the Big Issue Invest Trust and BII Boards.|
|Mohamed Omer|Mohamed is Financial Director of lntellicomm Solutions and also Board|
||Member-External Affairs. Gardens of Peace Muslim Cemetery Trust,|
||the largest dedicated Muslim Cemetery in the UK.|
||Mohamed is a Chartered Accountant and has been on the BllT Board|
||since 2009.|
|Lucy Jane Findlay|Lucy Findlay MBE has played a leading role in the UK social enterprise|
||sector for the last 20 or so years. She is the founding Managing Director|
||of Social Enterprise Mark CIC, the international social enterprise|
||accreditation authority. Lucy is publicly recognised as a key player in|
||the sector at an international level advocating on behalf of the need to|
||maintain credible and ethical business standards.|
|Rebecca Perlman|Rebecca is a senior corporate and charity law specialist at leading|
||global law firm, Herbert Smith Freehills. She is the founder and Co-|
||Chair of the firm’s impact investment and social finance practice – HSF|
||Impact – which supports social entrepreneurs, impact investors and|
||social finance intermediaries across the globe in fields such as|
||education, energy, agribusiness, financial inclusion, climate change,|
||consumer products, housing and healthcare.|
|Timothy West|Tim is the founder editor and CEO of Pioneers Post and mission-|
||focused marketing and social innovation company The Fable Bureau.|
||Tim is a trustee with ECT Charity and a director of Big Issue Invest, and|
||has served on a number of national programmes, advisory groups and|
||awards panels – including the Deloitte Social Innovation Pioneers, the|
||awards panel for Un Ltd, and the UK social enterprise awards.|
|Robert Gilligan|John Gilligan has worked in the private equity and venture capital|
||industry for over 30 years.|
||He started his career in 1988 at 3i Group plc and was then a Corporate|
||Finance Partner of Deloitte and latterly BDO for over twenty years.|
||Since 2018 he has been the Director of the Oxford Saïd Finance Lab at|
||Saïd Business School, University of Oxford. He is the author of four|
||editions of “Private Equity Demystified” (OUP 2020) and is also a|
||Visiting Professor at Imperial College Business school. He is an|
||Investment Committee member of Big Issue Invest.|
1
## **The Big Issue Invest Trust**
## **Trustees' report for the year ended 31 March 2021** _**(continued)**_
Welcome to the 2021 Trustees' Report for The Big Issue Invest Trust (BIIT). Our Report has been prepared under the requirements of the Companies Act 2006, and Statement of Recommended Practice (SORP 2nd Edition effective 1 January 2019) applicable to Charities preparing their accounts in accordance with Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The Big Issue Invest Trust was established in 1994 (originally called the Local Investment Fund and subsequently called The Social Enterprise Loan Fund) and is a Social Investment Financial Intermediary ("SIFI").
BIIT provides grants to sustainable charities and social enterprises in some of the most deprived areas of the UK which cannot otherwise raise financing from high street lenders. Over the past year we have provided £479k of grants to social enterprises to encourage the development of social trading.
We are confident that our grant program which focuses on development assistance will demonstrably help social enterprises and charities to deliver social impact and we hope to raise further funding to deliver similar grant programs.
I would like to thank my fellow Trustees, the BII Board and staff for their hard work and dedication. On behalf of everyone at BIIT, I would like to thank our various partners, especially our previous and current banking partners, funders, and investees for their ongoing support.
Sincerely
**Parveen Bird** Trustee
Date 27/01/2022
2
**Trustees' report for the year ended 31 March 2021** _**(continued)**_
## **The Big Issue Invest Trust**
## **Objectives and Activities**
The Objectives of the Charity are to promote charitable purposes by the provision of grants and other assistance. Our grantees are charities and social enterprises with charitable purposes, who find it difficult to borrow money from the main high street lenders. We consider grant requests from charities and social enterprises throughout England but we concentrate our efforts onto organisations which have a high social impact on their communities.
When planning the Institute’s activities for the year, the Trustees have considered the Charity Commission guidance on public benefit. In compiling this report, the Trustees have paid due regard to relevant guidance in deciding which activities the charity should undertake and report on
In the year ending March 2021, the Charity has made one grant to The Big Issue Company, totalling £479,000.
## **Going concern**
As at the date of approval of these financial statements, the Trustees are of the opinion that the going concern basis of preparation of the financial statements of the charitable company is appropriate.
In reaching this opinion the Trustees have considered the impact of Covid-19 and concluded that all long term debts have been repaid and income has not been negatively impacted by the virus. The Trustees have determined there are sufficient cash flows to meet all current debts as they fall due.
## **Fundraising Activities**
Section 162a of the Charities Act 2011 requires charities to make a statement regarding fundraising activities. During the year £846,008 of grants and donations were received, of which £141,858 were from the general public.
The fundraising approach taken by Big Issue Invest Trust is to utilise the existing network of business corporations and high net worth individuals already known to the Big Issue Group. These fundraising activities were carried out exclusively by Big Issue Group employees.
All fundraising activities are in line with the standards mandated by the fundraising regulator.
During the year Big Issue Invest Trust received 0 complaints (2020 – 0) relating to its fundraising activities.
## **Governance and decision making**
The Big Issue Invest Trust is a company limited by guarantee that was incorporated in November 1994.
3
**Trustees' report for the year ended 31 March 2021** _**(continued)**_
## **The Big Issue Invest Trust**
## **Decision making processes**
The Big Issue Invest Trust Board of Trustees meets quarterly. Its key functions include:
1. Reviewing and guiding BllT's corporate strategy, major plans of action, risk policy, annual budget and business plans; setting performance objectives; monitoring implementation and corporate performance; and overseeing major capital expenditures, acquisitions and divestitures.
2. Monitoring and managing potential conflicts of interest of management, Trustees and stakeholders, including misuse of corporate assets and abuse in related party transactions.
3. Ensuring the integrity of BIIT's accounting and financial reporting systems, including the independent audit, and that appropriate systems of control are in place, particularly systems for monitoring risk, financial control and compliance with the law.
4. Monitoring the effectiveness of the governance practices under which BllT operates and making changes as needed and ensuring a formal and transparent Trustee nomination process.
5. Overseeing the process of disclosure and communication.
## **Trustees and their interests**
The Trustees who also serve as Board Directors during the year and up to the date of signing the financial statements were:
Parveen Bird Roger Hooley Mohamed Omer Lucy Findlay (appointed 8[th] April 2020) Rebecca Perlman (appointed 24[th] April 2020) Timothy West (appointed 25[th] November 2020) John Gilligan (appointed 25[th] November 2020)
None of the Trustees have any beneficial interest in the company. Big Issue Invest Limited is the sole corporate member of the Charity and has agreed to contribute £1 in the event of the charity being wound up.
None of the Trustees have any beneficial interest in the organisations that receive loan or grant funding from The Big Issue Invest Trust.
## **Recruitment, induction & training of Trustees**
It is our clear policy that the BIIT Board of Trustees will have a suitable combination of experience and leadership necessary to support the effective provision of loan finance to charities and social enterprises. In particular we need individuals with experience in:
- Banking.
-
- Financial and risk management.
- Commercial law.
- Marketing.
- Social Enterprises.
-
- Potential sources of new funds.
4
## **The Big Issue Invest Trust**
## **Trustees' report**
## **for the year ended 31 March 2021** _**(continued)**_
## **Recruitment, induction & training of Trustees** _**(continued)**_
In addition, we endeavour to have an appropriate mix of gender, ethnic, and regional representation on the board to strengthen our ability to best understand relevant issues, and to identify and adopt suitable strategic responses. Big Issue Invest has the right to appoint up to four Trustees and another three are people who are independent of Big Issue Invest. Trustees who are employees of Big Issue Invest may continue in post until they end that employment. All other Trustees are appointed for a fixed three year term and may serve no more than three consecutive three year terms.
If we needed to recruit a new trustee to the Board, we would:
- Review what skills / expertise we most needed to recruit;
- Draw up a "Job Description”;
- Consider advertising the role I using trustee brokerage services;
- Broaden the diversity of the Board so long as that is consistent with obtaining the right skills;
- Undertake appropriate background checks; and
- Ensure there are no legal or technical barriers to the appointment of the preferred individual.
Having selected the best individual, our induction and training process have actually included:
- Providing copies of our governing document (M&AA) and Policies & Procedures Manual;
- Providing our latest Audited and Management Financial Statements;
- Providing our current Plan;
- Providing Minutes of recent Board Meetings;
- Providing relevant Charity Commission publications including "The essential Trustee - what you need to know”; and
- Arranging a familiarisation programme
## **Financial review**
The only activity of the Charity during the year ending March 2021 was providing financial support, investments and grants to social enterprises.
Income for the year was £847,508 (2020 - £3,475) and expenditure totalled £515,700 (2020 - £273,915).
We ensure that our resources are closely focused onto looking after our existing clients and finding new organisations that need our support.
Despite the challenges of the current economic environment, the charity has sufficient cash on hand to meet all financial obligations for at least the next 12 months.
We have taken a prudent approach to raising bad debt provisions when a loan is considered doubtful.
## **Related parties**
Big Issue Invest Trust has entered into a management services agreement with Big Issue Invest (BII) under which BII carry out the day to day activities of the Charity. In the year to 31 March 2021 the Charity paid BII £24,000 (2020 - £24,000) under this arrangement. The terms of the management services agreement including the annual budget are reviewed each year by three Trustees with no link to BII.
During the year Big Issue Invest Trust disbursed a grant of £Nil (2020: £75,000) to Big Issue Invest Corporate Social venturing to be used for investment purposes as part of the “Power Up Midlands” programme.
During the year Big Issue Invest Trust disbursed a grant of £Nil (2020: £20,000) to Big Issue Invest to be used for the purpose of issuing micro grants to social enterprises.
5
**Trustees' report for the year ended 31 March 2021** _**(continued)**_
## **The Big Issue Invest Trust**
## **Related parties (continued)**
During the year Big Issue Invest Trust disbursed a grant of £479,000 (2020: £Nil) to The Big Issue Company. This grant is to be used for the following purposes:
- ensuring the survival of the Recipient during the period for which it continues to be materially affected by the COVID-19 pandemic; and
- supporting the Recipient’s transition to a new trading model that will allow it to continue to relieve poverty in the long term.
## **Risk review**
The major risk, to which the charity is exposed, is financial risk as identified by the Trustees, this has been reviewed and systems or procedures have been established to manage the risk.
## **Reserves policy**
BIIT's Unrestricted Funds include funds which have been loaned to enterprises and are expected to be repaid. BIIT also needs Unrestricted Funds to cover the management and administration costs without which the Charity could not function. Any “surplus" reserves will be invested in financially viable Social Enterprises as soon as possible. The Trustees consider it prudent that Unrestricted Reserves should be sufficient to:
1. Continue to fund the loans that have already been drawn down or irrevocably committed, until such time as they are repaid;
2. Meet any new applications for funding support from regional funds that have been specifically designated for those regions by the Trustees; and
3. To cover one year's management and administration costs, net of expected investment income and discretionary expenditure.
The Trustees review the appropriateness of this policy annually.
At 31 March 2021, the level of Unrestricted Reserves required under this policy would have amounted to £36,700 (2020 - £47,915). The actual level of Unrestricted Reserves as at that date was £467,629 (2020 - £210,806). The trustees expect that reserves not expended on operating costs will be used to provide loans and grants to sustainable social enterprises and charities on an on-going basis.
## **Investment policy**
The Trustees have considered the requirements and purpose of the charity and consider it appropriate for the funds to be held as cash and / or short term instruments with banks approved by the Trustees. Changes to this investment policy would be decided upon by the Board of Trustees.
## **Grant making Policy**
All grant applications are reviewed by the Trustees and assessed on their suitability and compatibility with the charities objectives. The full value of grants committed to by the Trustees is recognised in the Profit & Loss account at the point of contract completion.
## **Funding**
The Trustees are satisfied that the Charitable Company's assets are available and adequate to fulfil its obligations.
6
**for the year ended 31 March 2021** _**(continued)**_
## **The Big Issue Invest Trust**
## **Trustees' report**
## **Community Loan Fund Limited**
The Community Loan Fund Limited is a dormant company of which The Big Issue Trust is the sole Member. It has not traded since incorporation and does not have any assets or liabilities.
## **Small companies note**
In preparing this report, the Directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
## **Auditors**
The auditor, BDO LLP, will be proposed for appointment in accordance with section 485 of the Companies Act 2006.
## **By order of the Board of Trustees on 27/01/2022**
**----- Start of picture text -----**
Parveen Bird Roger Hooley
Trustee Trustee
Mohamed Omer Robert Gilligan
Trustee Trustee
Lucy Findlay Tim West
Trustee Trustee
**----- End of picture text -----**
7
## **The Big Issue Invest Trust**
## **Trustees' responsibilities**
## **for the year ended 31 March 2021**
The Trustees are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and regulations.
Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the Charity for that period.
In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
8
## **The Big Issue Invest Trust**
## **Independent auditor's report to the Trustees of Big issue Invest Trust**
## **Opinion on the financial statements**
In our opinion, the financial statements:
- give a true and fair view of the state of The Big Issue Invest Trust Charitable Company’s affairs as at 31 March 2021 and of its incoming resources and application of resources for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements of The Big Issue Invest Trust (“the Charitable Company”) for the year ended 31 March 2021 which comprise the statement of financial activities, the statement of financial position 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).
## **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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Independence**
We remain 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.
## **Conclusions related to going concern**
In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charitable Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The Trustees are responsible for the other information. The other information comprises the information included in the Annual Report and Accounts, other than the financial statements and our auditor’s report thereon. The other information comprises the Trustees Report.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 course of 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.
9
## **The Big Issue Invest Trust**
## **Independent auditor's report to the Trustees of Big issue Invest Trust** _**(continued)**_
## **Other Companies Act 2006 reporting**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees’ Report, which includes the Directors’ Report prepared for the purposes of Company Law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Directors’ Report, which is included in the Trustees’ report, has been prepared in accordance with applicable legal requirements.
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 misstatement in the Trustees’ 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;
- adequate accounting records have not been kept by the Charitable Company, or returns adequate for our audit have not been received from branches not visited by us; or
- the Charitable Company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Directors’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of Trustees**
As explained more fully in the Trustee’s responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determines 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**
We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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.
10
## **The Big Issue Invest Trust**
## **Independent auditor's report to the Trustees of Big issue Invest Trust**
_**(continued)**_
## **Auditor’s responsibilities for the audit of the financial statements** _**(continued)**_
## _Extent to which the audit was capable of detecting irregularities, including fraud_
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. No irregularities, including fraud were identified during the audit.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. We:
- Discussed with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud, read the minutes of meetings of those charged with governance and reviewed correspondence with HMRC to identify any actual or potential frauds or any potential weaknesses in internal control which could result in fraud susceptibility.
- Challenged assumptions made by management in their significant accounting estimates.
- In addressing the risk of fraud, including the management override of controls and improper income recognition, we tested the appropriateness of a sample of manual journals, reviewed the application of judgements associated with accounting estimates for the indication of potential bias and tested the application of cut-off and revenue recognition.
A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at:
https://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. 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.
**Fiona Condron** (Senior Statutory Auditor) For and on behalf of BDO LLP, statutory auditor London
Date: 27 January 2022
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
11
## **The Big Issue Invest Trust**
## **Statement of financial activities (incorporating the income and expenditure account) for the year ended 31 March 2021**
|**Unrestricted**
**Restricted**
**Note**
**funds**
**funds**
**£**
**£**
**Income from:**
Bank interest
4
**4**
**-**
Donations and grants
5
**769,348**
**76,660**
Loan interest
6
**1,496**
**-**
**________**
**________**
**Total income**
**770,848**
**76,660**
**________**
**________**
**Expenditure on:**
Charitable activities
7
**(515,700)**
**-**
**________**
**________**
**Total expenditure**
**(515,700)**
**-**
**________**
**________**
**Net income/(expenditure)**
**255,148**
**76,660**
Transfers between funds
12,13
**1,675**
**(1,675)**
**________**
**________**
**Net movements in funds**
**256,823**
**74,985**
Balance brought forward at
1 April 2020
12,13
**210,806**
**1,675**
**________**
**________**
**Balance carried forward at**
**31 March 2021**
12,13
**467,629**
**76,660**
|**Total**
**2021**
**£**
**4**
**846,008**
**1,496**
**________**
**847,508**
**________**
**(515,700)**
**________**
**(515,700)**
**________**
**331,808**
**-**
**________**
**331,808**
**212,481**
**________**
**544,289**
|**Total**
**2020**
**£**
53
-
3,422
________
3,475
________
(273,915)
________
(273,915)
________
(270,440)
-
________
(270,440)
482,921
________
212,481
|
|---|---|---|
All gains and losses recognised in the year are included above.
The notes on pages 14 to 22 form part of these financial statements.
12
## **The Big Issue Invest Trust**
## **Statement of financial position**
## **as at 31 March 2021**
|**_Company Registration_**
**_No. 02995859 (England & Wales)_**
**Note**
**2021**
**£**
**Fixed assets**
Programme related investments
9
**-**
**Current assets**
Programme related investments
9
**10,418**
Debtors
10
**16**
Cash and cash equivalents
**553,482**
**________**
**563,916**
**Creditors: amounts falling due**
**within one year**
11
**(19,627)**
**________**
**Net current assets**
**Total assets less current**
**liabilities**
**Net assets**
14
**Financed by:**
**Funds of the charity**
Restricted funds
13
Unrestricted funds
12
**Total funds**|**2021**
**2020**
**£**
**£**
**-**
-
25,141
76
219,102
________
244,319
(44,173)
________
**544,289**
**________**
**544,289**
**________**
**544,289**
________
**76,660**
**467,629**
**________**
**544,289**
|**2020**
**£**
**12,335**
**200,146**
**________**
**212,481**
**________**
**212,481**
________
**1,675**
**210,806**
**________**
**212,481**
|
|---|---|---|
The financial statements have been prepared in accordance with the special provisions of the Companies Act 2008 relating to small companies.
Approved and authorised for issue on behalf of the Trustees on 27/01/2022
**Parveen Bird Roger Hooley Mohamed Omer Lucy Findley Timothy West Robert Gilligan** Trustee Trustee Trustee Trustee Trustee Trustee
The notes on pages 14 to 22 form part of these financial statements.
13
## **The Big Issue Invest Trust**
**Notes forming part of the financial statements for the year ended 31 March 2021**
## **1 General information**
The Big Issue Invest Trust is a charitable trust, limited by guarantee, incorporated in England and Wales under the Companies Act 2006 and the Charities Act 2011. The address of the registered office is given on the contents page and the nature of the operations and its principal activities is set out in the Trustees’ Report.
## **2 Accounting policies**
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
## _**Basis of preparation**_
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102) 2nd edition) the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
As a small company, advantage has been taken of the FRS 102 exemption to present a statement of cash flows and reconciliation of net debt.
The Big Issue Invest Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
The preparation of the financial statements in accordance with FRS 102 requires the Trustees to make judgements, estimates and assumptions that affect the application of policies and reported amounts in the financial statements. The areas involving a higher degree of judgement, or areas where assumptions or estimates were significant to the financial statements are disclosed in note 3.
## _**Going concern**_
As at the date of approval of these financial statements the Trustees are of the opinion that the going concern basis of preparation of the financial statements of the company is appropriate. In reaching this opinion the Trustees have considered the impact of Covid-19 and concluded that all long term debts have been repaid and income has not been negatively impacted by the virus. The Trustees have determined there are sufficient cash flows to meet all current debts as they fall due.
## _**Programme Related Investment loans and Provision for Bad and Doubtful debts**_
Investment loans are recognised in the accounts when funds are drawn by the client and interest on loans made is recognised on a receivable basis.
Specific provisions are made against loans when, as a result of regular appraisals of the assets it is considered that recovery is doubtful. The specific provision is deducted from the Programme Related Investment. Provisions made during the year, less amounts released, are charged to the Statement of Financial Activities. The Trustees also consider each year if it is appropriate to make an additional reserve against those loans that are known to be higher risk but have not yet reached the point where default is considered probable.
## _**Income from donations and grants**_
Income represents donations, which are recognised when the Trust has entitlement, the donation can be measured reliably, and receipt is probable.
## _**Investment Income**_
Investment income, including associated tax recoveries, is recognised when receivable and is allocated against the fund that facilitated the investment.
14
## **The Big Issue Invest Trust**
**Notes forming part of the financial statements for the year ended 31 March 2021** _**(continued)**_
## **2 Accounting policies** _(continued)_
## _**Expenditure**_
Expenditure and liabilities are recognised when a legal or constructive obligation exists to make payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis.
- expenditure incurred directly to the fulfilment of the Charity's objectives (Charitable activities).
- expenditure on the governance infrastructure which allows the charity to operate and to generate the information required for public accountability. This includes the strategic planning processes that contributes to future development of the charity. (Governance costs - included within Expenditure on Charitable activities).
- All grant applications are reviewed by the Trustees and assessed on their suitability and compatibility with the charity’s objectives. The full value of grants committed to by the Trustees is recognised in the Statement of Financial Activities at the point of contract completion.
Within Governance Costs premises and operational costs are allocated directly.
All Items of expenditure are allocated entirely to one cost category.
## _**Fund Accounting**_
Restricted funds are to be used for specific purposes laid down by the donor. Expenditure for those purposes is charged to the fund, together with a fair allocation of overheads, support costs and interest income.
Unrestricted funds are donations and other income received or generated for expenditure on the general objectives of the Charity.
Transfers are recognised where the terms of the grant allow a draw down to cover operating costs.
## _**Taxation**_
The Charity is a registered charity and as such is entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried out in the furtherance of the Charity’s primary objectives, if these profits and surpluses are applied solely for charitable purposes.
## _**Financial instruments**_
## Debtors and creditors
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement in other operating expenses.
## Cash and cash equivalents
Cash and cash equivalents in the Charity's balance sheet consists of cash at bank, in hand, deposits and notice accounts with an original maturity of three months or less.
15
**Notes forming part of the financial statements for the year ended 31 March 2021** _**(continued)**_
## **The Big Issue Invest Trust**
## **3 Accounting estimates and judgements**
In preparing the financial statements, the Trustees are required to make estimates and judgements. The matters considered below are considered to be the most important in understanding the judgements that are involved in preparing the financial statements and the uncertainties that could impact the amounts reported in the results of operations, financial position and cash flows. Accounting policies are shown at note 1 to the financial statements.
## _**Loan provision policy**_
The loan portfolio is assessed annually to determine an appropriate level of bad debt provision using the below guideline for the different fund sources of loans.
## Grant funding
Existing provisions are reversed to the extent that grant funding is available to absorb potential losses.
## Non-grant funded loans
For any loans where BllT is liable for any bad debts a specific provision is made on a case-by-case basis for each loan if the loan manager has any information to suggest that the client may default on some or all of the outstanding balance.
## **4 Income from investments**
|**Unrestricted**
**Restricted**
**£**
**£**
Bank interest
**4**
**-**
________
________
revious year income all related to unrestricted funds.
**Income from donations & grants**
**Unrestricted**
**Restricted**
**£**
**£**
Charitable donations
**769,348**
**76,660**
**________**
**________**
revious year income all related to unrestricted funds.
ignificant donations in the year include:
Advent International
Permira
Square Enix
Natasha Muller
Veritas
Johanna Barr
BII Board Members Challenge
Nick Rose
The Harrison Foundation
Nicholas Loufrani
All other donations in the year|**Total**
**2021**
**£**
**4**
________
**Total**
**2021**
**£**
**846,008**
**________**
**2021**
**£**
**454,439**
**101,600**
**100,000**
**85,000**
**26,260**
**25,000**
**12,484**
**10,000**
**10,000**
**9,000**
**12,225**
**________**
**846,008**
________|**Total**
**2020**
**£**
53
________
**Total**
**2020**
**£**
-
**________**
2020
£
-
-
-
-
-
-
-
-
-
-
-|
|---|---|---|
Previous year income all related to unrestricted funds.
## **5 Income from donations & grants**
Previous year income all related to unrestricted funds.
Significant donations in the year include:
16
## **The Big Issue Invest Trust**
**Notes forming part of the financial statements for the year ended 31 March 2021** _**(continued)**_
## **6 Interest income**
|**Total**
**Unrestricted**
**Restricted**
**2021**
**£**
**£**
**£**
Loan interest
**1,496**
**-**
**1,496**
**________**
**________**
**________**
Previous year income all related to unrestricted funds.
**7**
**Expenditure on charitable activities**
**Direct**
**charitable**
**Governance**
**costs**
**costs**
**£**
**£**
Direct costs:
Premises and operational
**479,000**
**-**
Bank charges
**-**
**707**
Support costs:
- Trustee expenses
**-**
**58**
- Legal and professional fees
**-**
**1,353**
- Finance costs
**-**
**10,582**
- Audit fee
**-**
**24,000**
**________**
**________**
**Total 2021**
**479,000**
**36,700**
________
________|**Total**
**2020**
**£**
3,422
**________**
**Total**
**2021**
**£**
**479,000**
**707**
**58**
**1,353**
**10,582**
**24,000**
**________**
**515,700**
________|
|---|---|
Included within the operational expense is £479,000 (2020 - £95,000) in relation to grants paid to Big Issue related companies, details of these are set out in note 15.
Further details of these grants are set out in the Trustees Report.
The expenditure for the year totalled £515,700 (2020 - £273,915) of which £515,700 was unrestricted general (2020 - £178,915) and £Nil was restricted (2020 - £95,000).
|**Direct**
**charitable**
**Governance**
**costs**
**costs**
**£**
**£**
Direct costs:
Premises and operational
**260,204**
**-**
Support costs:
- Legal and professional fees
**-**
**1,380**
- Finance costs
**-**
**1,484**
- Audit fee
**-**
**10,847**
**________**
**________**
**Total 2020**
**260,204**
**13,711**
|**Total**
**2020**
**£**
**260,204**
**1,380**
**1,484**
**10,847**
**________**
**273,915**
|
|---|---|
17
## **The Big Issue Invest Trust**
**Notes forming part of the financial statements for the year ended 31 March 2021** _**(continued)**_
- **8 Analysis of staff costs, Trustee remuneration and expenses, and the cost of key management personnel**
No remuneration was paid to Trustees nor any persons connected with them in the year (2020 - £Nil).
Employee costs during the year were £Nil (2020 - £Nil).
The average monthly number of employees of the Charitable Company during the year was Nil (2020 - £Nil).
No employee earned £60,000 per annum or more in the current or preceding year.
Travel expenses of £Nil (2020 - £Nil) were incurred on behalf of the Board of Trustees. Reimbursed expenses do not form part of remuneration, and are subject to the normal processes of internal financial control.
Key management personnel of the group include Trustees, directors of the subsidiary and the senior management team. The total employee benefits to the key management personnel were £Nil (2020 - £Nil).
|**9**
**Programme related investments**
_Cost_
At 1 April
Additions
Repayments
At 31 March
_Provisions_
At 1 April
Charge for the year
Disposals
At 31 March
**Net book amount at 31 March**|**2021**
**£**
**44,099**
**-**
**(27,058)**
**________**
**17,041**
________
**(6,623)**
**-**
**-**
**________**
**(6,623)**
________
**10,418**
________|**2020**
**£**
62,617
6,623
(25,141)
________
44,099
________
-
(6,623)
-
________
(6,623)
________
37,476
________|
|---|---|---|
18
## **The Big Issue Invest Trust**
**Notes forming part of the financial statements for the year ended 31 March 2021** _**(continued)**_
## **9 Programme related investments** _(continued)_
Programme related investments are repayable in the following manner:
|**Within one year**
**Repayable after one year:**
After one and within two years
After two and within fve years
After fve years
Total investments|**2021**
**£**
**10,418**
**________**
**-**
**-**
**-**
**________**
**-**
**________**
**10,418**
|**2020**
**£**
25,141
________
12,335
-
-
________
12,335
________
37,476
|
|---|---|---|
Programme related investments repayable within one year are included within current assets.
|**10**
**Debtors: amounts falling due within one year**
Prepayments, accrued income and loan interest receivables
**11**
**Creditors: amounts falling due within one year**
Amounts owed to related undertakings
Accruals|**2021**
**£**
**16**
________
**2021**
**£**
**8,782**
**10,845**
**________**
**19,627**
________|**2020**
**£**
76
________
**2020**
**£**
28,589
15,584
________
44,173
________|
|---|---|---|
19
## **The Big Issue Invest Trust**
## **Notes forming part of the financial statements**
**for the year ended 31 March 2021** _**(continued)**_
## **12 Unrestricted funds**
|**General fund**
General fund
General fund
**13**
**Restricted funds**
Advantage
Community Loan
Fund
Permira
**Community Loan**
**Fund**
Advantage|**At**
**1 April**
**2020**
**£**
210,806
________
At
1 April
2019
£
332,624
________
**At**
**1 April**
**2020**
**£**
1,675
-
________
1,675
________
At
1 April
2019
£
150,297
|**Transfers**
**£**
1,675
________
Transfers
£
53,622
________
**Transfers**
**£**
(1,675)
-
________
(1,675)
________
Transfers
£
(53,622)
|**Income**
**Expenditure**
**£**
**£**
770,848
(515,700)
________
________
Income
Expenditure
£
£
3,475
(178,915)
________
________
**Income**
**Expenditure**
**£**
**£**
-
-
76,660
-
________
________
76,660
-
________
________
Income
Expenditure
£
£
-
(95,000)
|**At**
**31 March**
**2021**
**£**
**467,629**
________
At
31 March
2020
£
210,806
________
**At**
**31 March**
**2021**
**£**
**-**
**76,660**
**________**
**76,660**
________
At
31 March
2020
£
1,675
|
|---|---|---|---|---|
The purpose of each Community Loan Fund is to provide assistance in contributing to the regeneration of deprived areas of England.
The restricted Advantage grant contains a provision that allows BIIT to draw down from this to cover operating costs which effectively releases restricted reserves to un-restricted. This is reflected in the transfers shown in the table above.
The Permia restricted fund is to support BIIT’s response to the Covid-19 pandemic and to cover core costs associated with delivering support and services to The Big Issue magazine’s 2,000 vulnerable vendors.
20
## **The Big Issue Invest Trust**
## **Notes forming part of the financial statements**
**for the year ended 31 March 2021** _**(continued)**_
## **14 Analysis of net assets between funds**
|**Programme**
**Current**
**related**
**assets**
**investment**
**£**
**£**
**As at 31 March 2021**
General fund
**476,838**
**10,418**
**________**
**________**
**Total unrestricted funds**
**476,838**
**10,418**
________
________
**Restricted funds**
Advantage
**-**
**-**
Permira
**76,660**
**-**
**________**
**________**
**Total restricted funds**
**76,660**
**-**
________
________
**Total**
**553,498**
**10,418**
________
________
**Analysis of net assets between funds – prior year**
**Programme**
**Current**
**related**
**assets**
**investment**
**£**
**£**
**As at 31 March 2020**
General fund
217,503
37,476
________
________
**Total unrestricted funds**
217,503
37,476
________
________
**Restricted funds**
Advantage
1,675
-
________
________
**Total restricted funds**
1,675
-
________
________
**Total**
219,178
37,476
|**Current**
**liabilities**
**£**
**(19,627)**
**________**
**(19,627)**
________
**-**
**-**
**________**
**-**
________
**(19,627)**
________
**Current**
**liabilities**
**£**
(44,173)
________
(44,173)
________
-
________
-
________
(44,173)
|**Net**
**assets**
**£**
**467,629**
**________**
**467,629**
________
**-**
**76,660**
**________**
**76,660**
________
**544,289**
________
**Net**
**assets**
**£**
210,806
________
210,806
________
1,675
________
1,675
________
212,481
|
|---|---|---|
21
**Notes forming part of the financial statements for the year ended 31 March 2021** _**(continued)**_
## **The Big Issue Invest Trust**
## **15 Liability of members**
The liability of members is limited. In the event of the Charitable Company being wound up during a member's period of membership or within a year afterwards an amount not exceeding £1 may be required from that member towards the payment of debts and liabilities of the company incurred before membership ceased. As at 31 March 2020 the Charitable Company had 1 member (2020 - 1), BII.
## **16 Related party transactions**
During the year the Charitable Company paid management fees of £24,000 (2020 - £24,000) to its corporate member company Bll. At the year end the Charitable Company owed BII £Nil (2020 - £28,589).
The following entities sit within the Big Issue Group, of which The Big Issue Invest Trust is a member:
The Big Issue Invest Trust paid a grant of £Nil (2020 - £75,000) to Big Issue Invest Corporate Social Venturing Limited during the year. At the year end £Nil (2020 - £Nil) was outstanding.
The Big Issue Invest Trust paid a grant of £Nil (2020 - £20,000) to Big Issue Invest Limited during the year. At the year end £Nil (2020 - £Nil) was outstanding.
The Big Issue Invest Trust paid a grant of £479,000 (2020 - £Nil) to The Big Issue Company during the year. At the year end £Nil (2020 (£Nil) was outstanding.
22