Reoistered numtw.. I￿2]22f& Charity number: 1056777 INVOLVE NORTHWEST LIMITED {A company limited by guarantee) TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 INVOLVE NORTHWEST LIMITED IA company limited by guarantee) CONTENTS Page Refer8nce and administrative details of the ¢harity, its trustees and advisers Trustees. report Independent auditorfs report 10-12 Statement of financial activities 13 Balance sheet 14 Statement of cash flo 15 Notes to the financial statements 16-32 INVOLVE NORTHWEST LIMITED IA company limited by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2022 Trustees J Calcott (retired 6 May 2022) D Cheyne G Doran A Barr M O'connor Company reglstered number 03212268 Charity registered number 1056777 Registered office 334 New Chester Road, Birkenhead, Wirral. CH42 1 LE Company secretary J Molyneux Chief executive officer J Molyneux Senior management team J Molyneux, CEO L Robinson, Deputy CEO Independent auditor Crowe U.K LLP. 3rd floor, Tha Lexicon, Mount Street, Man¢hester, M2 5NT Bankers Barclays Bank PLC. 2 Bebington Road, BirkenheaLt, CH42 6PU Solicitors Brabners, Horton House, Exchange Flags, Livèrpool, L2 3YL Page 1 INVOLVE NORTHWEST LIMITED {A company limited by guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2022 The tnjstees are pleased to present their annual directors, report together with the financial statements of the charity for the year ending 31 Thllarch 2022 which are also prepared to meet the requirements for a directors, report and accounts for Companies Act purposes. The financtal statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Asswiation, and Accounting and ReFX)rting by Charities." Statement of Recommended Practi applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (revised 1 January 20191. Chaiffs report Since the end of the financial year, the charity has su￿SsfUllY secured an extension to the Reachout employment support project until 31 March 2024 with the potential for further extension, subject to funding being available The senior management team have worked tirelessly to be able to continue the valued work delivered by the organisation and they are continuing to work on securing future funding streams to enable the rest of the services to Gontinue and develop. The 7 key community support seNices are.. Reachout- employment support for people who are long-temi unemploy￿. Community Connectors- low level mental health support for isolated individuals DoTnestic Abuse- supporting mums & children with practs.cal and emotional domestic abuse support via a 10 week programme called Leapfrog, a local peer mentoring project and Wirral Councils domesti¢ abuse pledge for businesses. Welfare Benefits helping disabled individuals tackling p)vety crisis through health related benefit awards and tribunals. Debt l Money Mana9ement- debt advi￿ and guidance for all Wirral residents. Clear Minds - GP referral pathway for practical support for issues affecting mild to moderate mentsl health. The Community Hub element of service delivery at the Community Village Involve's aims are to support the quality of life improvement for each person, family or communty it del(vers the services to or within and we have focussecl our delivery around the above strands and delivered some very impresswe results for Wirral people. I would like lo thank the team who worked through the difficult arena of Ihe pandemic, giving everything to continue to deliver our services in different ways, went into commUn￿e$ to help deliver food to farnilies and individuals, took Christmas presents to local children and certainly went the extra mile for the Wrral communities that we a￿ he￿ to seNe. To know more visit our website www.involvenorthwesl.ory.uk or telephone our office on 0151644 4500. Davtd Cheyne. l8- N) L) Lo LL hair Pagel 2 INVOLVE NORTHWEST LIMITED IA ¢ompany limited by guarantee) TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2022 Our purposes and activities The purposes of the charty are: To benefit the inhabitants Wirral wide by the promotion of such charitable purposes as the trustees in th&ir absolute discretion may from time to time decide. The Trustees have currendy decided to support the delivery of quality of life interventions for people, families and communtties. The vision for the organisation has always been "people. Sin￿ its inception in 1991. The drnrer for the delivery of the services is about knowng what our ¢lients' needs are by the services and projects delivered and then looking strategically at how to gain the funds to support each service area with a funding stream that can sustain longevity in delivery. Involve's clients and passlonate staff team help support the growth and development of the organisation for the future. The majority of staff are recruited from the Wirral population and they bring a wealth of experien￿. qualifications, life resources and the passion to want to make a difference in whatever part of the charity they work wthin. The 7 key service areas are.. Employment S￿[al isolation Disability Benefrts Domestic Abuse Debt Mental Health The Community Hublwell-being hub In shaping our objectives for the year and planning our acttvities, the trustees have considered the Charity Cornmission's guidan￿ on public benefit, including the guidance 'public benefit running a charity {PB21'. Al seNices delivered by Involve Northwest are free of charge as we are able to secure grant funding to deliver the key strands and often are able to provide further wrap around support packages. The strategies employed to achieve the chanty's aims and objectives are to.. Offer free employment support lo people who are long-term unemployed on Wirr21, alsD delivering job clubs in accessible venues in the community., Provide a service that delivers and supports socially isolated people through a door knocking project., Support people on health related benefits maintain or enhance what they receive., Provide a domestic abuse seNice for mums and children, peer mentoring volunteering proje¢t and deliver the domestic abuse kite mark for businesses Provide advice and guidance for indtviduals living in debt & ff nancial povety Offer support to individuals with mild to moderate mental health issues Piovidè free ¢lothing or pay as you feel and a rang8 of free communty acttvities Support the provision of free food Providing holistic therapies to our clients Putting these strategies into action we have supported annually over 12,000 vulnerable people. Our ServI￿S we describe as supporting qualty of life improvements. Pagel 3 INVOLVE NORTHWEST LIMITED (A company Ilmlted by guarantee) TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2022 Reachout The Reachout service has been delivered by Involve for the past 16 years and has significantly grown in delivery. The main airn of the service is to support people who are long-lerm unemployed and inactive to help them find sustainable employment. The service is also delivered across Wirral via local community work clubs and three hub based community venues. Reachout also provides a discretionary fund to help tackle the pre employment barriers that individuals and families face whilst looking forwork, this fund helps issues such as inteNiew clothes. training and travel CDSts. An employer engagement officer supports the Servi￿ and is able to find employers on Wirral and beyond to ensure that Reachout is the first place they recruit from with our bank of people looknng for wort. Communty Connectors The community connectoffs contract was won in Fèbruary 2017 has now been extended until January 2025. The main aims of the project are to go out into the community via a door knocking Servi￿ and find isolated people to help them gain a place back in the community. The service also helps small voluntary groups with a spark fund to help them to ¢oAtinue to deliver the vital resources in the community such as. Knit and natter groups IT groups Men's mental health Toast and lalk The Communty Connector service was awarded an extra contract in December 2021 to increase the team by another 23 people to be out in the communty offering this vital service. This additional contracl was then extended to run until 31st January 2023 and is helping help people and commursities recover from the effects of the pandemic_ Benefits seNlce The benefits service is one of the longest standing servI￿S delivered by Involve and it was actually how the organisation stsrted in 19911 Since then various funders have helped deliver this projectto help Tnany thousands of people across Vwrral. The rnain aim of the service is to support people with a health related condition either apply for benefit support, sustain benefit support or make a challenge rfthatfinancial sup5X)rt has been removed. The service also offers representation at tribunal level if noeded. Domestic Abusp The award of funding from The Steve Morgan Foundation meant that in September 2020 we started the development of the new Lighthouse families centre. The new centre has three dedicated staff members operating 5 days a week and 2 evenings offering a safe place if you are or have suffered domestic abuse. The ¢entre is now funded vntil March 2023 with the grant and we are aiming to be able to add services to the Lighthouse centre that complement the delivery. The other aspect of the domestic abuse service is a specific programme tsalled Leapfrog which supports mL(ms and children who have experienc￿ domestic abuse with a slrong obje¢tThie of rebuilding the family back together. In addition to leapfrog, #GTFS (Got The T-shirt) is a domesti¢ abuse peer mentoring project delivered by volunteers in the community via coffoe clubsjmornings. Debt l Money Management The aim of this project is to help individuals in financial crisis ta¢kle their debts, advocate on their behalf with the lenders and also support individuals and families with bespoke money management plans moving forward. Pagel 4 INVOLVE NORTHWEST LIMITED IA company limited by guarantee) TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2022 Mental Health This project specifically wort(s with individuals who have presented at their GP with anxiety and dèpression and who are awaiting intensive therapy. The project can intervene at pre- and post-therapy stsge to tackle the identffied practical issues to help alleviate the overall mental health pressures and reduce down NHS waiting lists. Our volunteers The charity is very involved within the community and relies on voluntary help. The main area that volunteers are involved is through the domestic abuse service via peer mentoring l#gotthetshirtl. This crucial part of the organisation delivers coffee mornings across Wirral supporting and helping suffefftrs of domestic abuse. Achievements and perforniance Involve has achieved the following during 2021- 2022.. The Reachout Project has placed at least 700 people into employment and typically 800/0 are still in employment 6 months later. Involve has sustained 86 jobs for Wirral people wthin the charity Involve has maintained all the services and projects into 2022 with no alteration to delivery and for some seNices have grown the staff team Involve has supported during the past year Over 12,000 vulnerable people Involve's benefrt seroice has managed to increase the benefits received by sick and vulnerable people by over£2m. Fundraising The charity had no fundraising a¢tivities Tequiring disclosure under S162A of the Charities Act 2011. Financial review The resLtIts for the year and the ¢harity's financial positr.on at the end of the year are shown in the attached financial statements. Incoming resources in the year were £3,175,58812021- £2,392,993) of which £3,091,081 {2021- £2.355,1911 related to project restricted activities. The main reason for the increase in income was a temporary increase in the Connectors Contract that will run from Decernber 2020 until January 2023. The main funder for Involve Northwest is Wirral Council, who provided £912,26512021." £894,383) in respect of Wirral Worklessness Support and £1,487,21812021'. £759,256) for the Community Connectors project Resources expended were £2,810,961 (2021= £2,128,181). £2,657,441 12021- £2,061,169) related lo restrlcted actTriities. Total incoming resources exceeded outgoing resourGes by £364,627 12021.. £264,812) of which £312,419 15 restricted12021.. £197,107}. Our pricing policy Our pricing policy reffects our strategy of enabling all within our community, whatever their means, to take part in our activities, thus everything delivered is free. We price our services competitively so as to enable us lo gain the grants and fijnds to sustain the charity into the future. Pagel 5 INVOLVE NORTHWEST LIMITED {A company Ilmlted by guarantee} TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2022 Reserves policy and going concern Reserves are primarily needed to ensure that the core and support costs of the charty can be met should a significant contract be ended. The trustèes, policy is lo ensure that sufficient free reserve5 are held to cover up to six months of core and support costs in order to cover such costs should major contracts be terminated and to give time for atsrnative funding to bè obtained or for a reorganisation of the charity. In addition, the trustees have designated sufficient reserves to cover the unfvnded redundancy liability to which il would be exposed should its contracts be terminated. Finally, the twslees have designated an amount equal lo the net book value of the building and improvements to a designated buildings reserve, as these ￿ndS are not readily realisable. At 31 March 2022, SLX months core costs are estimated to be around £200,000 and free unrestricted reserves amounted to £249.766 {2021'. £186,016). In addition, the designated redundancy reserve totals £118,00412021'. £109,214} and the designated building fttnd totals £278,466 {2021'. £298,7981- Total unr85tricted funds amounted to £646,23612021.- £594,028). Going Concern The trustees have considered the financial position of the charity, the levels of free reseNes and financial forecasts for 2022-23 and, as a consequen￿. the trustees are satisfied that the charity is well placed to manage its financial risks Successfully. The charity is funded to a signrfiont extent by short term contracts that are subject to periodic re-tender or extension. The main risks that the charity faces would be the impact on recovery of core costs should certain key contracts not be renewed and the redund2nGy costs that might arise in the event that happens. A significant part of the incorne of the charity is provided through its Reachout contract which has now been extended after successful re-tender to 31* March 2024 with the possibility of further extension, subject to funding being available. Another significant soune of income in the Connect Us contract, the core part of which has been extended until 31sf January 2025. A number of contra¢ts have provision for potential liability included within them. In addition to that, the tnjstees have designated sufficient funds in a redundancy reserve to cover the maximum estimated redundancy costs in excess of the amounts provided within individual contracts, should all its contracts not be renewed and the relevant staff team made redundant. In addition, the charity retains up to six rnonths of core costs in free reserves to cover those costs in event that major contracts were not renewed when they fell due. This would provide time and resources tr) seek alternative income sources or to arrange an orderly restructure of the charity. The Trustees do not Ihefftfore consider there to be ? material uncertainty in relation to going concern and the financial statements have been prepared on such a basis Pagel 6 INVOLVE NORTHWEST LIMITED IA Company limited by guarantee) TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2022 Plans for future periods Following the lifting of Covid restrictions and the reopening of the Hub to be a service to Ihe Community and the securing of the ￿new81 of thè Reachout Contract, the objectives for developmènt over the next few months in¢lude= Investing in the building to ensure its suitsbility and sustalnabllity to support the work of Involve Northwest and other partner organisations who use the building into the future Renewal and extension of the funding for the Lighthouse Centre beyond 2023. Ensuring stability of current contracts in line with funders Exploration the development of services outside Wirral Maintaining a fvlly tenanted building in the ethos of Involve Northwest Developing the Wellbeing Centre to provide holistic therapies and free hairdressing. Dire¢tors and trustees The directors of the charitable company (the chartyl are its trustees for thè purpose of Charity law. The trustses and Office￿ serving during the year and since the year end were as follows_. Chair D Gheyne Elected trustees: G Doran A Baw Ifrorn 14tr July 20211 M O'connor (from 23rd September 20211 J Calcott (retired S May 2022) structur?, Governance and Management Governing DoGument Involve Northwest is a company limited by guarantee govemed by its Memorandum and Articles of Association dated 14 June 1996. It is registered as a charity with the Charity Commission_ Appointmont of trustees As set out in the Articles of Association the charity appoints trustees through a recruitment process to join Ihe boaid. The board will always have a quorum for voting proTrsses as set out in the articles. The board also retain the fjght to Co-opt board membars with specialist skills if needed by the charity. Trustee induction and trnining New trustees undergo an orientation day to brief them on th8ir legal obligations under charity and company law, the Charity Commission guidance on public benefit, and inforrn them of the content of the Memorandum and Articles of Association. the committee and decision-rnaking processes, the business plan and reTrnt financial performance of the charity. During the induction day they rneet key employees and other trustees. Trustees are encouraged to attend appropriat8 extemal training events where these will facilitate the undertaking of their role. Pagel 7 INVOLVE NORTHw￿sT LIMJTED IA company limited by guarantee) TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2022 Organisation The board of trustees, which can have up to 12 mernber5, administers the charity. The board normally meets quartedy with an annual away day. A Chief Executive is appointed by the trustees to manage the day-to-day operations of the charity. To facilitate effective operations, the Chief Executive has delegated authority, within terms of delegation approved by the trustees, for operational matters including finance. employmenl and strategic development. Related parties and co-operation with other oryanisations None of our trustees receive ffmuneralion or other benefit from their work with the charity. Any connection between a trustee or senior manager of the charity must be disclosed lo the full board of trustees in the same way as any other contractual relationship with a related paty. In the current year no such relatecj paty transactions were ￿POrted. Pay policy for senior staff The directors consider the board of dire¢tDrs, who are the chartty trustees, and the senior management team comprise the key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day-to-day basis. All directors give their time freely and no director received remuneration in the year. The pay of the senior staff is reviewed annually and normally increased in accordance with average earnings. In view of the riatuie of the charity, the directors benchm2rk against pay levels in other provincial charities of a simi18r sEe run on a voluntary basis. Risk management The Irustees have a risk management strategy which comprises.. an annual review of the principal risks and uncertainties that the charity is compliant to ISO 9001'.2015 stsndards the establishment of policies, systems and procedures to M￿gate those rt5ks identified in the annual review., and the implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise. This work has idefttified that financial sustainability is the major financial risk for the charity. A key element in the management of financial risk is a regular review at each board meèting which is discussed with the trustees. Attention has also been fo¢ussed on non-financial risks arising from ffre, health and safety such as lone working. These risks are managed by ensuring accreditation is up to date, having rDbust policies and procedure5 in place, and regular awareness training for staff working in these operational areas. Pagel 8 INVOLVE NORTHWEST LIMtTED {A company limrted by guarantee) TRUTEES REPORT FOR THE YEAR ENDED 31 fMRCH 2022 Trustees, responsibilities in relation to the financial statements The Charity trustees are responsible for preparing a tru5tees' annual report and financial statements in ac¢ordan¢e with applicable law and United Kingdom Accounting Standards (United Sfjngdom Generally A¢¢epted Accounting PractiTrl. Company law requires the charity trustees to prepare financial statements for each year whi¢h give a true and fair view of the slate of affairs of the charitable company and the group and of the incoming resources and application of resouTrs, including the income and expendrture, of the charitable group for that period. In preparing the financial ststements, the trustee5 are required to.. select suitable accounting policies and then apply them consistendy., observe the methods and principles in the Charities SORP., make judgements and estimates that are reasonable and prudent., state whether applicable UK accounting standards have b&n followed, subject to any material departures disclosed and explained in the financial statements., prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will ￿ntinue in business. The trustees are wponsible for keeping proper accounting re￿rdS that disclose with reasonable accuracy at any time the financial position of the charity and to enable thern to ensure that the financial statements cornply with the Companies Act 2006_ They are also responsible for safeguarding the assets of the charity and the group and hence taking reasonable steps for the prevention and detection of fraud and other Ir￿gu[arlIJes. The trustees are responsible forthe maintenanTr and integrity of the corporate and financial infomiation included on the charitable company's webstte. Legislation in the United ￿ngdoM governing the preparation and dissemination of financial statements may differ from legislation in other jijrisdictions. ststement as to disclosure to ourauditors In so far as the trustees are aware at the time of approving our trustees, annual report there is no relevant infomiation, being infomiation needed by the auditor in connection with preparing their report of which the charities auditor is unaware, and the trustees, having made enquiries of fellow directors and Ihe group's auditor that they ought to have indtvidually taken, have each taken all step5 that helshe is obliged to take as a director in order to make themselves aware of any relevant audFt information and to establish that the auditor Is aware of that information. Small Company Provisions This report has been prepared in accordance with the special provisions relating to small companies Within Part 15 of the Companies Act2006. Bwde 1741) {5.5201 14,474 44.587 156,608 23,626 26.140 14,989 61,324 451,272 8,321 40,948 264 435 ￿81 2 657 441 121221 576 854 Total funds ReachOut- Ernployment partnershipworknng with long-term unemployed individuals over the age of 30, including sustainability 5UPPOrt for 6 months post returning to the labour market. Advice Services- Advi￿ and guidance service for people wth health conditions up to and including tribunal representstion. Domestic Abusè Advice Services- The provision of a two-tiered programme to support families in rglation to domestic abuse. 10 week programrnes of support and interventions for mums and children and 1 to 1 support. Communlty Connectors- The Servi￿ engages the disengaged by setting up a neknork of new roles in the community to tackle the issue of social isolation and promote active inclusion which will improve and provide health benefits and lead to greater readiness for work. Other Community Activities- Provision of various community activities to in¢lude an annual pensioners paty etc. Page | 29 INVOLVE NORTHWEST LIMITED IA company Ilmlted by guarantsel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 14. Statement of funds Icontinuedl Designated Funds The Fixed assets Fund represents the net bcok valLte of fixed assets held for use by the charity and so these fvnds are not readily realisable. The Redundancy Fund represents the potential additional redundancy costs to the charty rf none of the current contracts were renewed at the end of their tem. Transfers in the year represent costs allocated by the Trustees to allocate central propety cost5 across the clifferent restricted activities and to create the Fixed Asset fund. No fvrther amounts were transferred to the redundancy fvnd in theyear. Statement of fund8 - prior year Balance at 31 March 2021 Balance at I Apnl 2020 Incon7e Expenditure Transfers Designated funds Fixed Asset Fund 298,798 298,798 Redundancy costs 162,591 153,3771 109.214 General funds General Funds 363 732 14 186 016 Totsl Unrestiicted fvnds 96 594 028 Restricted funds Reach Out Advi￿ Services Domestic Abuse Advice Services Community Connectors Other Community Activitie$ Clear Minds 894.383 165,579 284,159 857,616 46.826 106,628 838,452 150,253 260,033 702,090 31,533 78.808 (55,931) {14,006) 12,0221 111.3921 {5,040) (8,524) 13,154 22.483 11,474 13,373 14A74 44,587 155.608 23,626 26,140 7 328 2 355 191 2 061 169 Total fvnds Page | 30 INVOLVE NORTHWEST LIMITED IA company Ilmited by guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 15. AnalysÈs of net assets belween funds Analysls of net assets belmen funds - current year Unrgstricted Restricted funds funds 2022 2022 Total funds 2022 Tangible fixed assets Current assets Creditors due within one year 278.466 790,254 (422,484) 278,466 1,367,108 1422,4841 576,854 Anatysls of nel assets between funds - prior year Unrestricted funds 2Q21 RestrTcted funds 2021 Total funds 2021 Tangible fixed assets Current assets Creditors due wthin one year 298, 798 588, 855 (293.625) 298.798 853,290 (293.625) 264.435 16. Reconciliation of net movement in funds to net cash flow from operating activities 2022 2021 Nel income for the year (as per Statement of Financi21 Activiliesl 364,627 264, 812 Adjustment for: Depreciation charges Rent income (Increase)/decrease in debtors Increase in creditors 28,836 {52,071} 146,1641 128 859 27,135 f33. 737) (779, 153) 166 175 Net ca$h generated byl (used in) operating actIV￿leS Page | 31 INVOLVE NORTHWEST LIMITED (A company limited by guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 17. Analysis of cash and cash equivalents 2022 2021 Cash in hand 1011981 544 Total 18. Pension commltments The charity operates a defined contribution pension scheme which is a multi-employer scheme. The assets of the scheme are held separatety from those of the charity in an independendy administered fund. The pension costs charge represents contributions payable by the charity to the fund and amounted to £30,746 (2021= £19,987). No amount was outstanding as at 31 March 2022 (2021.- £nil}. Operating lease commitments 19. At 31 March 2022 the total of the Charity's futu￿ minimum lease payments under non-cancellable operating leases was: 2022 2021 Amounts payable: Within 1 year Between l and 5 years 7,894 5,180 Totsl Page | 32