2020-12-31-accounts

Transforming Lives for Good (TLG) Ltd. Annual Report and Accounts

FOR THE YEAR ENDED DECEMBER 31[ST] 2020

On the cover: Summer, who received Early Intervention coaching throughout the pandemic

Contents

2020 in Numbers: TLG’s Response to COVID-19	4
Message from the Chief Executive	6
Message from the Chair	8
Strategic Review	9
- Objectives and Activities	10
- Programme Review: Early Intervention	12
- Kai’s Story	15
- Programme Review: Education Centres	16
- Liam’s Story	18
- Programme Review: Make Lunch	20
- Clare and Mark’s Story	22
Organisational Initiatives	24
- Advisory Council	25
- Advocacy	26
- Collaborative Leadership	27
- Corporate Partnerships	28
- DfE Summer Holiday Activity Fund	29
- Therapeutic Support	30
- Shanice’s Story	32
Structure, Governance and Management	33
- Principal Risks and Uncertainties	37
Financial Review	39
TLG Financial Statements	44

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5
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2 0 2 0 I N N U M B E R S : TLG’s Response to COVID-19

34,001 794,064 PARCELS DISTRIBUTED EQUIVALENT MEALS SERVED TO THROUGH “BOX OF HOPE” STRUGGLING FAMILIES COVID-19 RESPONSE 15,754 children reached

222 NEW TLG EARLY INTERVENTION COACHES

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97%

OF CHILDREN SAY THEY ARE MORE HOPEFUL ABOUT THEIR FUTURE AFTER STARTING EARLY INTERVENTION COACHING

NEW MAKE LUNCH AND EARLY INTERVENTION CENTRES TRAINED

91% OF TLG EDUCATION CENTRE STUDENTS MADE EXPECTED OR BETTER-THAN-EXPECTED PROGRESS IN ENGLISH

448

CHURCHES TRAINED TO SPOT & RESPOND TO THE SIGNS OF EMOTIONAL DISTRESS IN CHILDREN & FAMILIES

1,214

PEOPLE TRAINED ON EMOTIONAL FIRST AID & THE EMOTIONAL ROLLERCOASTER COURSES

7

Message from the Chief Executive

Unprecedented. Challenging. Difficult. These are just some of the words that we now associate with 2020. Although 2020 was at times sad, frustrating and painful, at TLG it has also been an unprecedented year in a different way.

acceleration of our plans for the addition of a Therapeutic Support team in response to the growing emotional health crisis amongst children and young people during the pandemic has been amazing. We launched two free webinars – ‘Emotional First Aid’ and ‘The Emotional Rollercoaster’, training over 1,200 people from more than 400 churches in just six months! We are thrilled as this means that more children and young people will be supported in a therapeuticallyinformed, trauma-responsive way.

An unprecedented year of challenges overcome, difficulties conquered and most of all, a year of outstanding hope for the futures of struggling children, young people and their families.

Of course, 2020 also brought some sobering inequalities to light. At TLG – as an organisation and as individuals – we have been deeply impacted by the tragic events in the United States and beyond, clearly highlighting that racism remains prevalent in our world, including here in the UK. As an organisation, we stand united with people all over the world to declare that there is no place for racism in our communities. I am committed to leading TLG to play our part in addressing the racial prejudice that in our experience of supporting young people excluded, continues to exist.

We could not be more grateful to our incredible staff and volunteer team who made TLG’s emergency COVID-19 response such a success. Through our ‘ Box of Hope’ initiative we’ve been able to get food and essential supplies to struggling families, contributing to an incredible 794,064 meals! By adapting our Early Intervention Programme we’ve been able to provide remote coaching for children most in need of consistent support across the UK. Our 12 church-based Education Centres for excluded young people have remained open, even when schools have closed. It has been a complete privilege to lead TLG through this time and I want to personally thank everyone who has brought light and comfort to the families across all our programmes.

I want to end by thanking our Trustee Board for their unwavering support, encouragement and wisdom to myself and the Senior Leadership team. I also want to express my huge admiration and appreciation for church leaders across the UK who have done so much to serve children and families in their communities this year.

The creativity that has come out of the crisis has been nothing short of astonishing! Most significantly, the

Finally, thank you so much to each supporter who stands alongside us as we carry out our work. What you are reading of the impact of TLG is only possible because of you. Looking ahead, although we know the worst is yet to come for these children, young people and families, there are many ways in which we hope to build on the innovation of 2020.

With the incredible support of everyone within the TLG movement, over the next year I know that we will continue to bring hope and a future to struggling children like never before.

I know that we will continue to bring hope and a future to struggling children like never before.

TIM MORFIN TLG FOUNDER & CHIEF EXECUTIVE

Keren. TLG Education Centre pupil with Education Centre Coach, James

9

Message from the Chair

I’m delighted to introduce TLG’s Annual Report and Accounts for 2020.

As for the whole of the UK, 2020 has been quite a year for TLG. Despite the adverse circumstances, it is testament to the staff, volunteers and church partners who have worked so hard to support those most in need that we have been able to move forward towards our vision to be reaching 10,000 children a year by 2025 in partnership with 400 community churches.

With 2020 being such a difficult year, the significance of each TLG programme is clear to see, with their ability to connect trained staff and volunteers with a vulnerable child, young person or family. It has been great to see the innovation of TLG and to see each programme evolve as the challenges of lockdown and other restrictions became apparent.

I’m so delighted that Early Intervention was able to adapt quickly to enable remote coaching, with coaches dropping off activity parcels, videocalling with the whole family and providing that much-needed support for children and parents alike.

To see our Education Centres remain open and the incredible teaching teams across the UK go the extra mile for the young people we serve has also been an inspiration. Staff have gone above

It’s been great to see each programme evolve as the challenges of lockdown became apparent.

and beyond to ensure that no young person felt alone, visiting them at home and even dropping off their favourite TLG lunch specials!

Finally, I’ve been blown away by the resounding success of our Make Lunch programme’s response to the pandemic: Box of Hope. To see so many brand-new churches commit to delivering these parcels full of food, household essentials, fun activities and wellbeing support has been remarkable and I look forward to seeing what will come next for this exciting initiative.

2020 also marked significant developments to complement and support TLG’s main programmes, with the launch of the new Therapeutic Support team and our increased focus on advocacy and policy. I am so pleased that TLG continues to innovate, learn and grow so that we can lead the way in supporting and speaking up for struggling children.

All of this vital work is only possible through the generosity of each of the individuals and organisations who support TLG. I want to take this opportunity to express my immense gratitude for this generosity and to highlight our commitment to stewarding your gifts responsibly. As you read this report, I trust that you will be encouraged by the difference you are helping TLG make in the lives of children, young people and families across the UK.

ANDREW BURTON CHAIR OF TRUSTEES

Strategic Review

11

Our strategic vision is to be reaching 10,000 children a year through partnerships with 400 churches by 2025. In line with this vision, our main objectives in 2020 were to:

• Grow our 3 programmes to enable more and more children, young people and families to access much-needed support;

• Develop new resources to ensure that our services remain at the cutting edge of both educational and emotional wellbeing provision;

• Continue to innovate internally to improve our infrastructure, with particular focus on excellence standards, systems and impact measurement; and

• Increase focus on our policy and advocacy work, in order to speak out on behalf of the most vulnerable, at-risk children and young people in the UK.

Despite the unprecedented challenges caused by the COVID-19 pandemic, we are thrilled that we were able to successfully carry out the strategic activities necessary to meet these objectives in 2020. In shaping our activities in line with our objectives for the year, the Trustees have considered the Charity Commission’s guidance on public benefit, including the guidance ‘public benefit: running a charity (PB2)’. The Trustees are confident that all activities are undertaken in line with the furtherance of our charitable objectives and this is demonstrated in the Strategic Review for 2020.

The Trustees present the Strategic Review for 2020, which details TLG’s activities in 2020.

Yasmin and daughter Ayla who received TLG Box of Hope parcels during the pandemic

Objectives and Activities

The charitable objectives of Transforming Lives for Good (TLG) Ltd are:

• a. to relieve persons who are in conditions of need or hardship;

• b. to advance education by such means as the trustees may consider appropriate;

• c. to relieve unemployment by means of providing training for employment for those in financial and economic need;

• d. to advance the Christian faith; and

• e. to promote and fulfil such other charitable purposes beneficial in the United Kingdom or the world as the trustees may from time to time think fit.

In line with these objectives, TLG’s mission is to equip churches to bring hope and a future to struggling children, young people and their families.

We do this by coming alongside children and families at the stage where help is most needed. This may be through a volunteer coach offering a child one-to-one support, intensive help for those who have been excluded from school, providing food to children reliant on free school meals who would otherwise go hungry or trauma-informed support for children experiencing adverse childhood experiences (ACEs).

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Kamara and family
who also received vital food provision through TLG Box of hope
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Programme Review

Early Intervention

T H E N E E D :

Early Intervention connects struggling children with a volunteer coach from a local church, supporting them for one hour a week in school through any difficulties that they are facing and letting them know someone cares. Some children may be facing bullying, bereavement, family breakdown or poverty, while others could be struggling with a lack of confidence, a lack of positive role models or may simply need a trusted adult to talk to.

The data surrounding children’s wellbeing in the UK paints a stark picture, with primary school exclusions on the rise and young people’s mental and emotional wellbeing severely worsened as a result of COVID-19. The latest statistics show that:

• 71,549 of school exclusions in England were given to primary school, reception and nursery children in the 2018/2019 academic year; horrifyingly, 19,780 of these were given to children aged 6 and under. (Department for Education)

• Compared to 23 other European countries, children in the UK had the greatest fear of failure and the lowest life satisfaction. (The Children’s Society)

• In The Children’s Society multi-item measure of overall life satisfaction survey 2020, 18% of UK children scored below the midpoint and were deemed to have low well-being.

• In 2020, 16% of children aged 5-16-years had at least one mental disorder. (NHS Digital)

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Frankie
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with her Early Intervention coach, Kate.

113

TLG EARLY INTERVENTION CENTRES ACROSS THE UK

448 222 16 TOTAL NEW NEW VOLUNTEER COACHES PARTNER COACHES TRAINED CHURCHES

564

CHILDREN COACHED, DESPITE THE RESTRICTIONS OF COVID-19

97%

OF CHILDREN SAY THEY ARE MORE HOPEFUL ABOUT THEIR FUTURE AFTER STARTING COACHING

84%

OF CHILDREN FEEL MORE CONFIDENT IN THEMSELVES

COVID-19 Response

Whilst it was impossible to hold the weekly 1:1 face-to-face coaching sessions, TLG reacted quickly to enable our volunteers to maintain contact and provide the vital support these children need. They ran weekly remote coaching with the children from home, through video or phone calls with them and their family. Throughout this critical time, this contact – based around emotional wellbeing resources and fun activities – enabled this crucial support to continue.

• Overall, 75 church partners remotecoached 334 struggling children through the dedication of over 180 volunteer coaches throughout the height of the pandemic.

334 CHILDREN COACHED REMOTELY

I am working with a 13-year-old boy who was referred to me because of behaviour difficulties in school. I found it tricky to progress things for him before COVID-19 hit, but last week I spoke to him via WhatsApp video call. He was a different boy in his own home. He seemed very genuine and opened up about getting things wrong. For the first time he admitted he needed help. I felt this call was a breakthrough! He showed me his PowerPoint presentation for school, we played a game & had a laugh then I spoke to his mum for 10 mins. It was really great.

15

Kai’s story

Kai was already finding school hard. He was restless and struggled to focus during lessons. He distracted others and quickly became angry, both at school and at home.

“I got in trouble in class because I couldn’t sit still,” said Kai. “I found it so hard to concentrate.”

Lockdown was no easier. Kai became frustrated at having ‘school’ invade his home environment. Tension was rising with his younger sister and he was scared of catching COVID-19 so he would refuse to play in the garden. As the days passed, he found himself getting angrier.

Kai is one of hundreds of children that TLG have continued to support throughout 2020.

Emma, Kai’s TLG Early Intervention coach in Stoke-on-Trent, has been a rock for Kai.

“Emma dropped a folder full of activities at my house at the beginning of lockdown! It really helped me because it gave me some fun activities to do,” said Kai.

Seeing the impact of sibling tension, Emma set exciting ninja challenges each week for Kai to complete with his sister, encouraging teamwork. Their relationship has flourished.

“We have seen some absolutely beautiful bonding time between them, which at times has been quite emotional to watch.” said Carol, Kai’s Nan.

Many of the activities were designed for the outdoors, encouraging Kai to overcome his fear of spending time in the garden and helping him to grow in confidence. “I liked all the ninja activities the best!”

Early Intervention key objectives for 2021:

“Some activities were more complicated than others, especially some of the wooden construction kits. But Kai persevered, making him even more proud of himself.” said Carol.

• To open 18 new Early Intervention centres in partnership with local churches.

• Target the 10% most deprived communities in the UK.

The activities have benefited Kai’s education too, helping him to practice patience and focus.

• Ongoing development of new, trauma-informed resources and increasing of regional staff support for volunteers.

“Coaching has helped me to think about things and to take my time so I don’t rush my work. It has helped me to concentrate,” said Kai.

• Work with the University of York’s Institute of Educational Effectiveness to publish data demonstrating the impact of volunteer-driven intervention.

Even the return to school looks more positive than ever. Once an isolated student, with Emma’s help Kai has been writing letters to one particular friend in his class. As schools begin to reopen, the friendship created will help Kai return to the classroom with increased confidence and assurance that he really is seen and heard. “

Carol can’t help but notice the transformation in Kai.

Coaching has helped me to think about things and to take my time

“Knowing he still had that connection with Emma during these last few months and hearing her encouragement has really helped him to build his self-esteem. Hopefully it will help him to settle back into school life.”

Hearing his coach’s encouragement has really helped him to build his self-esteem. Hopefully it will help him to settle back into school life. ”

Emma was creative in the activities and resources she delivered.

• Kai

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TLG West London
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Programme Review

Education Centres

T H E N E E D :

Sadly, the situation for excluded young people in the UK remains of huge concern, with fixed-term exclusions on the rise and COVID-19 increasing the impact of challenging circumstances on future life chances. The latest data shows that:

Our Education Centres exist across the UK to support young people who have been excluded from mainstream school. These young people are often at crisis point and may be experiencing family breakdown or drug and alcohol abuse, be living in care or poverty or be involved in gangs and knife crime. We provide intensive programmes in a safe environment where we can support the wider needs of these 11-16 year-olds, helping them to achieve qualifications, learn strategies to engage with and manage their emotions, gain essential skills to sustain their progress beyond TLG and inspire them with hope for their future.

• In England, 446,194 exclusions were given in the 2018/2019 academic year, with a 7% increase in fixed-term exclusions. (Department for Education)

• Appallingly, black Caribbean children are 2.5 times more likely to be permanently excluded than white children, while those from a Gypsy/ Roma background are nearly 4 times more likely to be permanently excluded. (Department for Education)

• A maximum of 5% of the children most in need have been at school during the COVID-19 crisis. (Department for Education).

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Phoebe
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with headteacher Vivian at TLG South Birmingham

205

TLG EDUCATION CENTRES 12 ACROSS THE UK

YOUNG PEOPLE SUPPORTED

89%

91%

OF STUDENTS MADE EXPECTED OR BETTERTHAN-EXPECTED PROGRESS IN ENGLISH

OF STUDENTS MADE EXPECTED OR BETTERTHAN-EXPECTED PROGRESS IN MATHS

COVID-19 Response

When the government announced school closures our Education Centre team had to work quickly to devise ways in which our at-risk young people could continue to be supported. Directed by our Curriculum Development Manager, TLG provided online work and a personalised timetable, supported by regular (usually daily) Zoom calls, socially-distanced home visits and emails (all pupils were set up with email addresses by TLG staff) between young people and staff. Those in more vulnerable family situations had food and lesson resources dropped off and had face-toface catch-ups through ‘doorstep chats’. In one case, even the familiarity of a teacher dropping off special ‘TLG beans’ to the family of a young person so that they could have a favourite meal made a huge difference!

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Jacob
online learning at TLG Bradford
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Liam’s story

Liam’s story shows the immense impact that emotional distress can have on a young person’s education and wellbeing. But it is also an example of the enormous difference that love, connection and support can make.

“Liam was bullied quite badly at school. They couldn’t put a stop to it. It affected his self-esteem quite badly; he wouldn’t go out at all,” explains his Mum. “His coping mechanism was to run around school, but that became a safety issue, so they would ring me up and I’d bring him home. He lost out on a lot of time in education.”

The bullying and the loss of education caused heightened anxiety for Liam.

“What Liam needed was somebody to believe him when he said that difficult things were going on. He needed support to try and get back on track” said Mum. When the family first heard about TLG, they thought it was just somewhere where “naughty children’ go. They refused to join. But after speaking to Gavin and the local TLG Education Centre team, they decided to give it a go.

“I wish I’d come here a year earlier!”

The progress in Liam’s confidence has been truly phenomenal, as his Mum explains: “Liam is more settled; he’s not as agitated anymore! I don’t think he’d be the way he is now without the help of TLG, to be honest with you.”

Over lockdown, Liam continued to receive lots of one-to-one support to help get him back on track. “Liam’s mood always lifts after a visit from Gav. He never normally leaves his room much, but he’s always at the door before he even arrives!”

Education Centre key objectives for 2021:

• To continue building relationships and networks with a view to opening 2 new Education Centres in 2022 in partnership with local churches.

• Develop our provision to offer online classes for all young people one day per week.

• Increase our educational policy work to influence government decisions provision for children at risk of exclusion.

• Empower our Education Centre teams to provide trauma informed support to students whose learning has been impacted by Adverse Childhood Experiences (ACEs).

Liam and his family received continued support from his Education Centre during lockdown

“

Liam is now much happier and his future looks bright. And the best part? Seeing the positive impact this has had on his relationships with the rest of the family. “Liam spends time downstairs now, watching movies, playing games. TLG has really given him the confidence to keep going.”

I wish I’d come to the Education Centre a year earlier!

Liam is more settled; he’s not as agitated anymore! I don’t think he’d be the way he is now without the help of TLG. ”

• Liam

21

Programme Review

Make Lunch

T H E N E E D :

Make Lunch exists to tackle holiday hunger, social isolation and the onset of an attainment gap by supporting children and families who face food insecurity and are at risk of malnutrition. When free school meals stop during the school holidays, Make Lunch clubs open to provide free, healthy, hot food for low-income families alongside fun and enriching activities, while also building community and acting as a gateway to other local support services.

The current landscape for children and families on low-incomes in the UK is unacceptable, with those who were already vulnerable before COVID-19 facing extremely difficult situations exacerbated by the pandemic. The latest statistics show that:

• Comparing May 2019 and May 2020, independent food banks have seen a shocking 177% increase in emergency food parcels distributed and an 85% increase in children benefitting. (Independent Food Aid Network)

• In September 2020, 14% of adults living with children reported experiencing moderate or severe food insecurity in the last 6 months. A troubling 2.3 million children live in these households. (The Food Foundation)

• With disadvantaged children facing a 1.5 year attainment gap prior to COVID-19, worryingly, this is known to be worsening as a result of multiple lockdowns . (Education Policy Institute)

TLG Box of Hope

BEFORE NATIONAL LOCKDOWN BEGAN AND IN THE FIRST THREE MONTHS OF 2020:

MEALS WERE SERVED MEALS WERE SERVED TO PARENTS TO CHILDREN 67 62

94

TLG MAKE LUNCH CLUBS ACROSS THE UK

786

18 NEW MAKE LUNCH PARTNERSHIPS SIGNED IN 2020

TOTAL VOLUNTEERS HELPING TO RUN A MAKE LUNCH CLUB

24 NEW MAKE LUNCH CLUBS TRAINED AND READY TO OPEN THEIR DOORS

90 NEW MAKE LUNCH VOLUNTEERS TRAINED

COVID-19 Response

I cannot tell you how grateful our family is for our parcel this week. Hubby has been furloughed and I am working all the hours I can at the residential home. Having this gift full of the necessities, a lot of which we have struggled to get in the shops, has been such a relief for me. The older two children are enjoying the activity books and modelling clay too!

Lockdown began two weeks before the Easter holidays. We quickly re-aligned our support to churches across the UK, enabling them to deliver ‘ Box of Hope.’ These emergency care packages include food provisions to feed a family of four for up to three days, as well as essential household items such as soap and toiletries. The boxes also contained wellbeing resources, fun activities for the children and links to other support available locally.

Since we launched Box of Hope, we have had over 200 churches join with us in preparing and delivering these packages to vulnerable families within their communities! In total, this means we have been able to support more children than ever before, with 34,001 parcels distributed to 15,754 children and 10,147 parents throughout the COVID-19 period so far. We are also thrilled to have been able to contribute to the equivalent of 794,064 meals! Finally, we are pleased that all families reached will have continuity-of-support when the traditional Make Lunch clubs re-open in each locality.

Sarah receiving Box of Hope food provision from St John’s Church, Hinkley

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Clare and Mark’s story

Make Lunch key objectives for 2021:

“Life was incredibly tough even before lockdown,” Clare explains. “There were days when I’d be hunting around the house trying to find any loose change I could so we could afford food for our dinner.” Having both been made redundant, Clare and Mark found it almost impossible to make ends meet. With work hard to find, Mark became a self-employed builder.

When lockdown first hit, this income dried up almost overnight. The impact was devastating. “It was heart-breaking. I couldn’t afford activities to keep the kids entertained, and there were times when they were hungry but we didn’t have enough food in the cupboards,” adds Clare.

The pressure and distress this was causing to the family was “almost unbearable”. However, it all changed when Shirley from New Brighton Baptist Church heard about their situation. The church had just started running TLG’s Box of Hope initiative, so Shirley quickly came round with their first delivery of emergency food and activities for the children.

• To open 15 new Make Lunch centres in partnership with local churches, with particular focus on transitioning churches who ran Box of Hope to a longer-term commitment.

“The relief when that first parcel arrived was absolutely incredible. It was a God-send,” Clare says emotionally. The activities brought the family closer together, and Clare would get the other children on their street involved as well.

• Target the 10% most deprived communities in the UK.

Things are still tough for the family, and they are anxious about the challenges that the winter months will bring, but you can hear the relief in her voice when she says, “just knowing Shirley and her church are there for us makes all the difference.” Clare has already volunteered to cook at future church outreach events, to help provide others with the same support that has been a lifeline for them.

• Ongoing development of new resources and increasing of regional staff support for volunteers.

• Increase our food insecurity advocacy work to influence long-term policy relating to poverty.

“

The relief when that first parcel arrived was absolutely incredible. Throughout It was a God-send! lockdown it was really hard for mum and dad. But once we got the packages it got so much better.

Mark and Clare, with Ruby and twins George and Thomas ”

• Ruby

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Ayla

who was provided with activities and vital food through TLG’s Box of Hope project

Organisational Initiatives

Advisory Council

TLG’s Advisory Council comprises over forty influential leaders from a range of professional fields, including children’s work, church leadership, education, the charity sector and business.

Representing a range of diverse backgrounds, our volunteer members are well-placed to give voice to the myriad of challenges faced by struggling children and families across the country. Each member shares in TLG’s commitment to vulnerable children and families and plays an instrumental role in shaping our strategy.

The Advisory Council meet twice a year, giving us the unique opportunity to gain insight from expert stakeholders. Despite the challenges surrounding social distancing and lockdowns throughout 2020, the Advisory Council were still determined to assist us as we navigated the unprecedented challenges of the year. We held two virtual meetings with the Council during the year, focusing on how to respond to the pandemic. The impact of both food and digital poverty was highlighted as were the emotional wellbeing challenges facing children as a result of the lockdown.

The Council also offered their insight into encouraging increased fundraising and advocacy work through our network of partners and supporters, in order to influence policy on behalf of children and young people across the UK.

TLG is all about the wellbeing of every child and young person; helping them to be more than their circumstances, to grow, and to develop. On the Advisory Council, we problem solve, we bring creative ideas and pass wisdom and advice on these matters and the work TLG does with young people.

AMIE BUHARI FOUNDER & CEO OF THE HEBE FOUNDATION

We are extremely grateful for the support, time and counsel of this amazing group of volunteers:

Organisational Initiatives

Amie Buhari - The Hebe Foundation James Entwisle - Hymans Robertson Rob Anderson - Edengene Limited Andrew Fordyce - Pedm ore Trust Jenny Peters - St Mary’s, London Rob Wickham - CofE (London Diocese) Alan Charter - Global Children’s Forum Lindsay Melluish - St Paul’s, Ealing Sam Donoghue - CofE Bajo Akisanya - Jesus House Louise Bomber - Touchbase (London Diocese) Bekah Legg - Restored Marcel Simpson - New Testament Sam Ward - The Message Trust Danielle Babatunde - Church of God Shola Oladipo - Food for Purpose Transcend Movement Mark Massey - Frinton Free Church Simon Barrington - Forge Leadership Dayalan Mahesan - Mark Melluish - New Wine & St Paul’s Simon Benham Evangelical Alliance Martin Warner - Cinnamon UK - Kerith Community Church Deborah Barnett - TLG Mary Hawes - Church of England Simon Downham - St. Paul’s Duncan Layzell - Soul Survivor Natalie Williams - Jubilee+ Hammersmith Efrem Buckle - Ecclesia Church Natasha Beckles - Primary Education, Steve Clifford - HOPE Elaine Storkey - Author & Theologian St. Luke’s Kentish Town Steve Whittington - Jubilee Church, Hull Gavin Calver - Evangelical Alliance Philip Watts - Formerly Shell & CofE Tayo Arikawe - Langham Partnership Gareth Davies - Bible Society Rachel Gardner -Youthscape Tim Pilkington - Good Faith Partnership Graham Miller - London City Mission Rachel Warwick - Scripture Union Yemi Adedeji - Jesus House

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Advocacy

Children across the UK are facing some of the toughest starts in life, from school exclusion to poverty and from anxiety to inequality. As well as supporting families in communities across the UK, we want to play our part in bringing about lasting change on a national level.

Using TLG’s expansive knowledge and frontline experience, our Policy and Advocacy Team work to raise awareness, build relationships and bring forward practical policy recommendations to tackle the challenges facing children and families.

In 2020 it has become even more vital for TLG to speak out about the issues facing struggling children and young people across the UK. This was the perfect year for TLG to further invest in Policy and Advocacy, with significant opportunities to speak out on behalf of those we support, particularly with COVID-19 highlighting various issues of injustice facing the UK today.

Some highlights were as follows:

• Our CEO Tim Morfin was able to address MPs, Peers and representatives from the children’s sector across the UK at the All-Party Parliamentary Group (APPG) for School Exclusions and Alternative Provision.

• Tim was also invited to join the Alternative Provision Stakeholder Group at the Department for Education, giving TLG an important opportunity to input directly into policy around schools supporting excluded young people.

• TLG made submissions to the Education Select Committee’s call for evidence on the impact of COVID-19 on children and the Commission on Race and Ethnic Disparities’ call for evidence into ethnic disparities and inequality in the UK.

• We also contributed to a number of external projects with other organisations, including with the Centre for Social Justice and YoungMinds. TLG will continue to play an active role within this group, which in 2021 is starting an enquiry into the quality of Alternative Provision across the UK.

• TLG has been represented at a number of other APPG meetings including the Poverty and School Food groups.

• TLG’s Influence team commenced the draft of a policy briefing paper “The Hidden Crisis”, which will be released in 2021, focusing on the impact of COVID-19 on children’s emotional wellbeing and the link to school exclusions.

Collaborative Leadership

Data from the Education Policy Institute and the Department for Education shows not only that Black Caribbean children are 2.5 times more likely to be permanently excluded than their white peers, but by the end of primary school, Black Caribbean pupils are 5 months behind academically.

TLG’s Collaborative Leadership project team was developed in 2019 to focus on diversity and inclusion within TLG as well as looking at how we engage children, families and churches across a diverse range of communities. Centred on various support functions including HR, Education Centres, Church Partnership and Volunteer Programmes, the team consists of leaders from within TLG who together work to encourage greater cross-cultural participation internally and in our interactions with partners and volunteers.

The team invited discussion around how best to support black colleagues in the aftermath of the tragic death of George Floyd and the growing focus on racial injustice.

As part of this, the TLG ‘Book Club’ was introduced. An initiative led by CEO Tim Morfin, it offered all staff the opportunity to review a book together, which focused on the impact of racism in the UK and provided a platform for all staff to explore together the lived experience of black people.

Importantly, a staff survey was conducted in October 2020 to evaluate the current progress of our collaborative leadership journey and to identify areas of development as we continue to work to tackle racial injustice and inequality, in particular for young black people in mainstream education.

The results of the pulse survey and comments showed that, in general, staff are encouraged by the plans, conversations and different activities taking place across TLG in relation to diversity – particularly around recruitment. In the pulse survey, we asked about leadership commitment. 89% of those who responded agreed or strongly agreed that the TLG Leadership Team is committed to supporting a diverse culture at TLG.

Looking ahead, the Collaborative Leadership team continues to bring leadership to this important area, along with Core Team and our Trustees. In the new year, Volunteer Programmes will be looking at how Early Intervention, Make Lunch, and ‘ Box of Hope’ can be developed to support greater uptake and effectiveness with a range of churches, particularly with black-majority church partners. We will continue to develop TLG recruitment and culture to attract and retain a thriving staff team that reflects the diversity of the communities we want to serve and the partners we want to work with. There will be a range of new training opportunities across TLG to support staff, including ‘Collaborative Leadership Management Training’.

The year ahead will also see the appointment of our first Head of Inclusion, whose focus will be to strengthen TLG’s help to children facing barriers such as poverty, race or special educational needs.

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Corporate Partnership

2020 was a fantastic year for the launch of our TLG Corporate Partnerships programme. Our strategy was to engage with organisations across the UK aligning our shared purpose and to support them with their commitment to Corporate Social Responsibility. In particular, we saw both local and national companies joining with TLG to combat the rise in food poverty across the UK as communities struggled with the impact of the pandemic.

TLG celebrated our first Charity of the Year partnership with Delifresh, a food company with national coverage specialising in delicatessen and dried foods. At the height of the first lockdown, Delifresh made the decision to donate all the proceeds from their home deliveries in addition to match funding other fundraising activities, gifting TLG a total of £32,600!

We were also nominated as one of Barclays’ COVID-19 relief Community Champions, with a £100,000 grant awarded through their 100x100 Community Aid Relief Programme. This focussed on our ‘ Box of Hope’ initiative as well as emotional health and wellbeing support through our ‘Emotional First Aid’ webinars. Along with other corporate donations and funding from Tesco and Frugi for our Make Lunch network, an incredible total of £236,288 was raised in corporate donations!

We look forward to launching our ‘Corporate Future Builders’ programme in 2021, which will offer organisations of all sizes the opportunity to contribute to the work of TLG on a monthly basis. It will also introduce companies to a variety of ways to partner with TLG, including one-off and in-kind donations.

The devotion and energy we have witnessed through everyone we have encountered at TLG has been uplifting, and feeling part of the journey is extremely rewarding for all of our team.

NOEL KERSHAW DELIFRESH LTD.

By reaching those most in need of support, local charities such as Transforming Lives for Good have played a vital role in this crisis to date, and no doubt they will do going forward.

DANIEL STYLER BARCLAYS

DfE Summer Holiday Activity Fund

“Due to COVID-19, the project enabled us to continue to bridge the gap and reduce learning loss by providing fun activities with an element of learning.” - Delivery Partner (School)

TLG and LCF (Leeds Community Foundation) submitted a joint application to the DfE to coordinate delivery of the Holiday Activity and Food Programme 2020 across the summer. LCF coordinated in Leeds, while TLG coordinated in Bradford. We were successful in being awarded £752,970.

Despite the uncertainty of the pandemic, TLG worked through 88 local partners , reaching 6,326 children directly, providing 129,215 portions of food to children and parents.

We were able to be innovative and consider various models of projects early on in the pandemic. The model was split between delivery of boxes – with remote connection with the children – and in-person summer clubs.

It was another excellent opportunity, as in previous years, to connect with the ‘Let’s Cook’ project, who developed new appropriate resources for partners with the pandemic and delivery model in mind. Furthermore, TLG partners witnessed more family involvement and overwhelmingly positive feedback throughout the programme, even with the adjustments to the delivery model.

With the ongoing high-profile media reporting on the intervention of Marcus Rashford in campaigning for the government to manage the continuation of free school meals throughout the holidays, we envisage that the management and delivery of this activity in the year ahead will be retained by Local Education Authorities. Opportunity will, however, be given for local holiday food providers, including TLG Make Lunch clubs, to access the funding to support the need in their communities.

We had fabulous engagement from the families with the project. Building relationships over 6 weeks, we found that families opened up and we have been able to support in other areas of need beyond food.

DELIVERY PARTNER (COMMUNITY GROUP)

My mum won’t buy pizzas anymore because now we can make them from scratch!

JACOB, AGED 7

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Therapeutic Support 2020 highlights:

Therapeutic Support

We know that within each community that TLG works with, there are many children, young people and parents being supported who have experienced Adverse Childhood Experiences (ACEs). At the beginning of the COVID-19 pandemic we were acutely aware of the heightened trauma that many children would be experiencing due to the lockdown restrictions – many of them already living in very difficult circumstances. Statistics support this, showing that worryingly:

• 50% of those with a probable mental disorder were more likely to say that lockdown had made their life worse. (NHS Digital)

• 80% of young people believe that the coronavirus pandemic has made their mental health worse, with 41% saying it has made their mental health ‘much worse’. (Young Minds)

• There were 80,226 more under-18s referred to NHS mental health services in England between April and December 2020 than during the same period in 2019. (The Royal College of Psychiatrists)

With this in mind, using the 22 years’ experience TLG has engaging with struggling children, we accelerated our plans and launched our new Therapeutic Support team in 2020. This team is responsible for ensuring that therapeutically-informed and trauma-responsive support is at the centre of all our programmes, as well as delivering brand new resources to empower staff, volunteers and church partners to understand the impact of ACEs and the importance of emotional and mental health.

We developed and rolled out two resources in 2020. ‘Emotional First Aid’ is a free webinar designed for TLG partners wanting to learn how to spot the signs of emotional distress in adults and children and how to respond effectively, while ‘Emotional Rollercoaster’ has been designed for educational practitioners and church leaders working with young people aged 8-14.

The response for participation in the webinars was overwhelming, with a total of 1,214 people trained through the two webinars. These participants were from 448 different churches, equipping them as they supported children whose struggles have worsened due to the three cycles of COVID-19-induced lockdowns.

Recognising the broad emotional needs of the young people we work with, the Therapeutic Support team began a pilot therapeutic practice provision in our Education Centres from the Autumn term. This involved offering one-to-one support with a professional therapist, counsellor or mentor from our Therapeutic Support network to young people referred by an Education Centre. Vitally, we were able to extend this support to some of the families of our students, with virtual Therapeutic Support via conference or phone call given to a selection of parents/carers.

This support has provided a lifeline for those struggling to cope as a result of the current pandemic exacerbating their historic trauma, enabling them to reengage with education, increase aspirations and look to a positive future.

Therapeutic Support key objectives for 2021:

• To continue delivering training for our church partners, staff and volunteers, facilitating a greater breadth and depth of emotional support on offer to all young people engaging in our programmes.

• To develop new resources, including an Emotional First Aid Journal and a Parents Emotional First Aid booklet.

• To continue to roll out and review the therapy pilot in our Education Centres, with a view to establishing future best practice for staff and students.

Mackenzie TLG Education Centre student

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Sarah and Archie

Shanice’s story

“Each Box of Hope keeps us going for a few more days which is a real God-send!”

Shanice’s anxiety around school became so entrenched that some days she couldn’t physically walk through the school gates. Despite good grades, she really struggled with mainstream education.

“I just couldn’t stay in class. I missed lessons and didn’t complete my work. I wasn’t working well with the teachers and I needed help to stop giving up on my work,” said Shanice.

Shanice would rip out her work if she felt like she had made a mistake or felt like her work wasn’t good enough. Following several violent incidents, her school felt they could no longer meet Shanice’s Special Educational Needs.

“Shanice needed help building up her confidence and thinking skills. She had to understand that it’s okay to make a mistake and that her work was good enough for a teacher to mark,” said Cathy, Shanice’s mum.

Shanice joined the TLG Lewisham Education Centre in Autumn 2019 and things quickly began to improve. She was encouraged to talk about her feelings and be patient with herself.

The early stages of lockdown were particularly hard. Living as a family of five in temporary one-bedroom accommodation felt overcrowded and noisy.

“Shanice was desperate to go back to the Education Centre as we didn’t have a lot of space at home,” explains Cathy, “but she coped well thanks to TLG.”

The team stayed in contact via phone calls, texts and email every day to ensure Shanice and her family were coping and check if they

Shanice now has big ambitions “Now I want to become a crime prosecutor and then open up my own law firm!”

needed anything. They even helped the family get a laptop to help Shanice’s home learning.

“Shanice learnt to be calm and be proud of her work,” reflects Cathy. “She is now able to regulate her emotions much better, which means she can focus and learn more in the classroom. As a result, our family life has changed tremendously and we’re able to enjoy spending time together without the stress of school following us home. We are now a strong and confident family because we know we can get help and support from TLG whenever we need.”

Shanice’s future now looks bright. She feels confident and is filled with ambition. “TLG has been really fun, I’m so glad I came here. I’m not disruptive in lessons anymore and I don’t give up on my work. Before, I wouldn’t ask for help and would just sit until the lesson had finished, but now I ask the teachers for help,” explains Shanice. “Now I want to become a crime prosecutor and then open up my own law firm!”

Structure, Governance & Management

35

Structure, Governance & Management

Charity name: Transforming Lives for Good (TLG) Ltd

Charity number: 1074114 (England and Wales); SC050810 (Scotland)

Company registration number: 3690871

Business address and registered office: TLG National Support Centre, Hope Park City Gateway, Bradford, BD5 8HH

Legal Form: Company limited by guarantee without a share capital

Trustees:

Andrew Burton (Chair) Simon Barrington (Vice Chair) Sheron Kantor Michael Royal (resigned 15 February 2021) John Kirkby Bethany Whitehouse Victoria Fafalios (appointed 20 January 2020) Simon Benham (appointed 20 January 2020)

Secretary: Grace Cousins

Senior Leadership Team:

T Morfin (Chief Executive) C Blackham (Director of Strategy & Programmes) P Chenery (Director of Innovation & Implementation) S Wrangles (Director of National Development) E Alty (Director of People & Culture) S Halligan (Director of Education) R Edden (Director of Finance to December 2020) D Proctor (Director of Finance from January 2021)

Auditors:

BHP LLP, 1st Floor Mayesbrook House, Redvers Close, Lawnswood Business Park, LS16 6QY

Solicitors:

LCF Law, One St. James Business Park, Bradford, BD1 5LL

Bankers:

Governing Document

Transforming Lives for Good (TLG) Ltd is a registered charity in England, Wales and Scotland. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association.

Transforming Lives for Good is a charitable company limited by guarantee without a share capital in England and Wales and was incorporated in December 1998 as the Lighthouse Outreach, changing its name in June 2005 to The Lighthouse Group UK Limited, to TLG The Education Charity on 4th May 2012 and finally to Transforming Lives for Good (TLG) Ltd. on 11th May 2018.

Organisational Structure

TLG has a voluntary Trustee Board currently made up of 8 members who are responsible for the strategic direction and policy of the Charity. The TLG Senior Leadership Team is made up of the CEO and 6 Directors who each manage one part of the charity’s operations. The Trustees meet with the Senior Leadership Team each quarter to ensure TLG’s shortand long-term objectives are being met in accordance with the strategic plan, which is supported by a report encompassing progress against Key Performance Indicators.

Managers are appointed for each team, including each Education Centre, to oversee day-to-day activity, line-manage staff and ensure excellent delivery to all beneficiaries. Reporting to the Directors, managers are essential in enabling TLG’s programmes to run efficiently and effectively.

Finally, the Volunteer Programmes team includes 11 Regional Leaders, who take responsibility for the management of all Early Intervention and Make Lunch volunteers from within their region. This includes termly one-to-ones with Coordinators, regular forums and annual reviews with each church partner and their linked school(s).

Volunteers

Volunteers are at the heart of TLG and its partnerships with local churches across the UK. These dedicated individuals are invaluable, regularly supporting struggling children and families through Early Intervention or Make Lunch, fundraising for TLG, speaking at church services and offering prayerful and financial support.

Our Fundraising Activities

TLG strives to maintain the highest standard of supporter care, ensuring that each of our donors is treated fairly and with respect. We voluntarily subscribe to the Fundraising Regulator and had no major complaints during 2020. All our fundraising activities are carried out by centrally-employed staff and we monitor and control all fundraising communications to ensure that our supporters have a great experience and can choose to be removed from phone, email or mail lists at any time in line with GDPR regulations. Major donors, grant-funders and corporate partners are assigned designated contacts within TLG to ensure appropriate levels of communication throughout the funding relationship. All funds raised are allocated according to relevant restrictions.

Yorkshire Bank, 14 Broadway, Bradford, BD1 1EZ

Surveyors:

Hayfield Robinson, Property Consultants (RCIS), Temple Chambers, Keighley, BD21 2JT

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Measuring our achievements and performance

Throughout the Trustees report, we have highlighted the amazing impact on the lives of children and families across our different projects at TLG that are impacting people’s lives on a personal, emotional, behavioural, educational and spiritual level.

As a charity, we have a range of KPIs and impact measurements that measure performance against our mission, strategic objectives and programme aims to ensure we are fulfilling our purpose and achieving the change we seek. Our specific measures help staff and Trustees focus on results and work to achieve their vision.

Principal risks and uncertainties

The Trustees and TLG Senior Leadership team have a risk management strategy that ensures that they actively review the potential risks and uncertainties that may seriously impact the charity. A risk register ensures that all areas of the charity are assessed with suitable policies and procedures put in place to mitigate those risks.

This strategy has identified the following potential risks and how to manage them, as detailed in the following table.

We collect an array of data through different forms including:

TLG Golden Numbers – A dashboard of our top performance measurements i.e. number of children helped, qualifications achieved, destinations, engagement in learning, improvements in behaviour, meals served and so forth.

Departmental and programme KPIs – monitoring performance against agreed objectives with a focus on specific outputs, outcomes and impact i.e. number of volunteers trained, financial performance, new partners, number of coaching sessions, regular giving and many more.

Data, assessments and impact measurement from external agencies such as Ofsted, schools, the DfE, and the University of York evaluation of Early Intervention.

Recruitment and appointment to the Board of Trustees

To fully support and represent the work of TLG, trustees are sought who bring experience in children’s and youth work, organisational and charity sector leadership, and education. In an effort to reflect a broad mix of skills, backgrounds and cultures, the existing trustees regularly consider any areas not fully represented on the Board, actively seek out individuals who could provide specific input and approach them to consider joining the Board. Trustees are usually recruited through TLG’s existing contacts who already have some understanding of its work.

Potential trustees are invited to visit TLG and to discuss the role with the Chair of Trustees and the Chief Executive, utilising a clear role description. They are also invited to attend a Board meeting and meet the other trustees. If, following this process, they would like to be considered as a trustee, their appointment will be discussed by the existing trustees and a decision made as to their suitability.

Trustee Induction and Training

Most trustees are already familiar with the practical work of TLG but new trustees will be invited to spend some time observing the different aspects of the work and meeting department managers and staff. New trustees will spend some time with the Chief Executive and the Chair of Trustees looking at the role of a trustee, the governing documents, current financial information, the strategic plan and discussing future plans. New trustees are also given the opportunity to attend a one-day conference outlining the roles and responsibilities of trustees.

Risk Management

The Board of Trustees has conducted a review of the major risks to which TLG may be exposed. A risk register has been established and is updated regularly. A strategic plan is in place which is updated annually to ensure action is taken to minimise any risks identified. Please see pages 37 and 38 for further information.

POTENTIAL RISK	RISK MITIGATION & MANAGEMENT
Child Protection and Safeguarding	Volunteer Programmes • Volunteer coaches must be referred by a coordinator or church leader who have known them for at least 6 months. References are checked by TLG staff. • Volunteers must complete safeguarding training and DBS check before commencing coaching. • Volunteers must attend TLG training before participation. • Volunteers read and sign the safeguarding policy - either church or school depending on the progamme. Education Centres • Child Protection policy and staff training. • Child Protection named person in every centre and national lead. • Staff code of conduct. • Whistle Blowing policy. • Staff acceptable use of IT training. • Concerns recorded on TLG’s intranet by all staff members, seen by lead person in centre and ECD team. • CCTV. • Staff records ensure 100% compliance before start date to ensure safer recruitment principles otherwise staff cannot start in centres. Trustees • Safe Recruitment forms part of the induction process. Trustees will complete regular safeguarding training
Reputational damage	As the infuence and profle of TLG increases, there is increased media scrutiny. Inappropriate conduct or behaviour of our staff, volunteers and partners could damage the brand. We operate a staff onboarding process that includes TLG culture and values and provide regular training and operating frameworks.

CONTINUED >

POTENTIAL RISK RISK MITIGATION & MANAGEMENT Reduced income As with any charity that is reliant on voluntary donations for its income, a large reduction in funding would have a serious impact on the charity’s ability to carry out its charitable activities, especially as we seek to expand those activities. We focus on the growth of various regular income streams to ensure that we are not reliant on any one source for our funding. Fraud Financial fraud will always be a risk and we need to constantly ensure the correct systems, accountability and legal requirements are in place. New systems in place to capture relevant data and impact Not demonstrating and funding to develop the impact measures. Board members sufficient impact in carefully selected to bring appropriate skills. our work • Information Ongoing GDPR regulations are being adhered to and all new contacts have the required consents. Technology systems • Secure password protected electronic storage. • compromised or Cloud backup of data. • data lost Personal staff information in locked storage. • Personal student information secure online. • Annual training for all staff. • Access reviewed for all staff and IT platforms.

39 Preston “Hope for my family makes me happy, thank you!”

Education Centres

• TLG GDPR lead fully trained in order to conduct the audit and assess risk.

Health and Safety

Volunteer Programmes

• Robust approval/monitoring process for all publicly-available media (web, social, printed, email).

• • Photo consent records reviewed and strengthened.

• • Training for all staff involved in publishing images.

• • Clear communication of protocol to all existing partners.

• • Intensive training included as standard for all new partners.

• Comprehensive staff training.

• • Continuous risk assessment. • National Health & Safety Compliance lead appointed.

Closure of National IT Support was updated to facilitate agile working of National Offices Support. Financially, we have prudently modelled the impact to ensure we COVID-19 pandemic retain sufficient reserves in line with our policy. We diversified our income sources and have sought to access COVID-19 funding support where appropriate. Practically, all programmes have Financial adjusted to be delivered in a safe but effective way, and staff were able to work from home in line with government policy. Review

41

Financial Review for the year ended 31 December 2020

During 2020 we have received significant grants from a number of grant-making trusts and we would like to express our appreciation to all those who have generously supported the work of TLG, including:

2020 has been challenging for everyone, no less for charities like us who rely upon the kindness of donors. The COVID-19 pandemic affected our entire operation. Instead of face-to-face events, TLG used online platforms to connect with supporters and raise funds. Remote working was facilitated by the purchase of laptops and an emphasis on strengthening our infrastructure. Employees continued to work from home despite the demands of home-schooling and COVID19-related sickness. TLG received numerous emergency COVID-19 grants during this time. Many of these funds were redirected by donors and may not be available in 2021; this will undoubtedly affect the receipt of future grants in 2021.

Behind every donation is a person to whom we wish to express our thanks. Without their generosity, our vital work supporting the most vulnerable children, young people and families through this challenging time would not have been possible.

----- Start of picture text -----
2020 INCOME SPLIT:
33% 33%
Donations Fees
& Legacies
8% 13%
MYGs Individual
Future Years Donations
13%
Property
----- End of picture text -----

----- Start of picture text -----
2020 EXPENDITURE SPLIT:
----- End of picture text -----

----- Start of picture text -----
14% 66%
Property Costs Services
to children
19%
Fundraising
1%
Governance
----- End of picture text -----

Our Funding Mix

TLG has a strong ‘funding mix’ in relation to our income to help ensure that we do not solely rely on one source of funding. It’s been inspiring to see the rate of progress with our regular giving income. Our investment in this area is helping to create a step change for TLG by delivering above expectations and we continue to see a significant increase year on year. A key priority for the charity is to continue to invest in our regular giving strategy from individuals and churches. Growing the number of regular financial givers that we have whilst also maintaining our strong record of accessing Trusts, Foundations and Corporate Partners are ensuring we provide a sustainable source of income. The two buildings which we run as business centres also yield consistent income from tenants which goes directly towards TLG.

Balance Sheet

TLG completed the building in 2012 of Hope Park, that incorporated our ‘National Support Centre’. TLG continue to own 2 properties, Hope Park and Beta House (within Hope Park Business Centre Ltd). During 2020, refurbishments continued albeit delayed by the COVID-19-related lockdowns and we are now in the last phases of completing the agile working model. The balance sheet shows a modest amount of additions to improvements that have added value to our investment property. Further work will be completed in 2021.

Both properties were valued in April 2021, provided by an independent valuer who holds recognised and relevant professional qualifications. That opinion held that the properties should not be changed from Hope Park at £4.65m and Beta House at £1.1m. The fair value of the investment properties at 31st December 2020 have been arrived at on the basis of a valuation being carried out by the Trustees based on their best estimate of market value. In forming their opinion, they have considered the valuation undertaken in April 2021 and projections of the future investment income.

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Investment Properties

It is the intention of the Trustees that the properties continue to be used to generate income to enable the long-term stability of the charity, through subletting premium office space and meeting rooms. During 2020, a total of £814,190 income (2019: £765,222) was generated by the investment property. The space is used by TLG as our National Support Centre, with the excess space used to generate unrestricted income for the charity. Hope Park Business Centres Limited, the subsidiary, has produced a profit of £6,163 for the year ended 31st December 2020.

Reserves Policy

Transforming Lives for Good recognises that, in order to provide for unforeseen circumstances resulting in reduced income or additional expenditure and to guard against any negative impact that may have on our work, it would be best practice to designate a level of funds as reserves. A clearly defined reserves policy, with a realistic level of designated funds, enables TLG to absorb setbacks and to take advantage of change and opportunity to demonstrate that we are effectively managing our resources. This will also demonstrate that we have thought through how we might secure our viability beyond the immediate future and provide reliable services over the longer term. In light of the current economic climate, it has been recognised to be prudent and TLG has enhanced the cash reserve policy to a value of £460,000, equating to approximately three times monthly salary costs.

The total funds at the end of year ended December 2020 was £3,688,690. Of this, £408,000 has been put aside into the Designated Funds for IT system improvements, strategic investment in capital, post-Covid improvements and other strategic improvements. Of the total funds, £806,644 is free reserves which are unrestricted and not tied up in fixed assets or long-term liabilities. This is well above the minimum cash reserve amount of £460,000 and is in line with our reserves policy.

As more Education Centres transition to the new model, there will be an increased

payroll and the cash reserves will be increased in keeping with the reserves policy.

Pay Policy and Senior Staff

The Trustees consider that the Board of Trustees (who are the charity’s Directors) and the Senior Leadership Team comprise of 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 Trustees give of their time freely and no trustee received remuneration in the year as a trustee. Details of Trustees’ expenses and related party transactions are disclosed in Note 14 and Note 30 to the financial statements. The charity has conducted a full review of its salary structure, including that of its Senior Leadership Team. As well as introducing a full job evaluation system and grading structure, salaries were externally benchmarked against charities of a similar size, location and service.

One employee received emoluments of more than £60,000 in 2020 (2019: None).

Grants Received

During 2020 the Charity was awarded grants of £470,428 (2019: £210,093) that related to future years and fully recognised as revenue within 2020 under the current income recognition rules within FRS102. This has resulted in a reported group surplus of £859,296 for the year ending 31st December 2020 (2019: £460,872).

Grants Made

As TLG responded to the needs of the communities we served during the pandemic, we identified that we could not achieve this without the help of our church partners. We were able to reach 15,754 children through making “seed-funding” grants to all organisations participating in our COVID-19 response initiative “TLG Box of Hope”. As part of the initiative, we offered start-up funding of £200 to churches to be spent strictly only on the creation and distribution of these emergency care packages to support vulnerable families in each church’s local community. The grants were made within an agreed strategy which included partner guidelines on fulfilment of TLG’s spending restrictions, contents guidelines, safeguarding stipulations and subsequent reporting to monitor impact.

Approved by order of the members of the board of Trustees on 8th September 2021 and signed on their behalf by:

ANDREW BURTON CHAIR OF TRUSTEES

45

44

TRANSFORMING LIVES FOR GOOD (TLG) LTD (A Company Limited by Guarantee)

CONTENTS

TLG Financial Statements

	Page
Trustees' responsibilities statement	3 46
Independent auditors' report on the financial statements	4 47-51
Consolidated statement of financial activities	5 - 9 52
Consolidated balance sheet	53-54
Charity balance sheet	55-56
Consolidated statement of cash flows	57
Notes to the financial statements	58-87

FOR THE YEAR ENDING 31 DECEMBER 2020

47

TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' Report including the Strategic Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. 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 Group and the Charity and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

• select suitable accounting policies and then apply them consistently;

TRANSFORMING LIVES FOR GOOD (TLG) LTD (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRANSFORMING LIVES FOR GOOD (TLG) LTD

Opinion

We have audited the financial statements of Transforming Lives For Good (TLG) Ltd (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 December 2020 which comprise the consolidated statement of financial activities, the consolidated balance sheet, the charity balance sheet, the consolidated statement of cash flows and the related notes, 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).

• observe the methods and principles of the Charities SORP (FRS 102);

• make judgments and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards (FRS 102) have been 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 Group will continue in business.

In our opinion the financial statements:

• give a true and fair view of the state of the group's and of the parent charitable company's affairs as at 31 December 2020 and of the group's incoming resources and application of resources, including its income and expenditure 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 and the Charities Act 2011.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and 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 Group and the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the members of the board of Trustees and signed on its behalf by:

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 section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the in the United Kingdom, including the Financial Reporting Council'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.

................................................

A Burton

Date: 8 September 2021

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' 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 group's or the parent 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.

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TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRANSFORMING LIVES FOR GOOD (TLG) LTD (CONTINUED)

Other information

The other information comprises the information included in the trustees' annual report, other than the financial statements and our auditors' report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the 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 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.

TRANSFORMING LIVES FOR GOOD (TLG) LTD (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRANSFORMING LIVES FOR GOOD (TLG) LTD (CONTINUED)

Responsibilities of trustees

As explained more fully in the trustees'responsibilities statement, the trustees (who are also the directors of the parent 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 group's and the parent 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 group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

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:

• the information given in the trustees' report (incorporating the strategic report and the directors' report) for the financial year for which the are prepared is consistent with the financial statements; and.

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion:

• the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent charitable company's 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.

51

TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRANSFORMING LIVES FOR GOOD (TLG) LTD (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

We have been appointed auditor under the Companies Act 2006 and Section 151 of the Charities Act 2011 and report in accordance with those Acts.

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 auditors' 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 .

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which our are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRANSFORMING LIVES FOR GOOD (TLG) LTD (CONTINUED)

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

A further description of our responsibilities for the audit of the is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' 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 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, and the charitable company's trustees as a body for our audit work, for this report, or for the opinions we have formed.

• we identified the laws and regulations applicable to the charity through discussions with management, and from

• our commercial knowledge and experience of the sector;

• we focused on specific laws and regulations which we considered may have a direct material effect on the

• accounts or the operations of the charity, including the Charities Act 2011;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting correspondence; and

• identified laws and regulations were communicated within the audit team and the team remained alert to

• instances of non-compliance throughout the audit.

• We assessed the susceptibility of the charity’s accounts to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge

• of actual, suspected and alleged fraud; and

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and

• regulations.

Michael Jackson (senior statutory auditor)

for and on behalf of

BHP LLP

Chartered Accountants Statutory Auditor 1st Floor Mayesbrook House Redvers Close Lawnswood Business Park LS16 6QY

Date: 23 September 2021

To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify any unusual or unexpected relationships;

• tested journal entries to identify unusual transactions;

• assessed whether judgements and assumptions made in determining the accounting estimates set out in the

• accounting policies were indicative of potential bias; and

• investigated the rationale behind significant or unusual transactions.

• In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation;

• reading minutes of meetings of those charged with governance; and

• enquiring of management as to actual and potential litigation and claims.

53

TRANSFORMING LIVES FOR GOOD (TLG) LTD (A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2020

Net income/(expenditure) Transfers between funds Net movement in funds before other 22 recognised gains Other recognised gains: Gains on revaluation of fixed assets Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward Note Income from: Donations and legacies 4 Charitable activities 5 Investments 6 Total income Expenditure on: Raising funds 7 Charitable activities 9 Costs relating to income from property 10 Total expenditure	989,114 (672) 988,442 - 988,442 Unrestricted funds 2020 £ 2,135,125 1,958,436 819,499 4,913,060 312,568 2,872,911 738,467 3,923,946 1,980,665 988,442 2,969,107	(129,818) 672 (129,146) - (129,146) Restricted funds 2020 £ 1,121,564 - - 1,121,564 - 1,251,382 - 1,251,382 848,729 (129,146) 719,583	l 859,296 - 859,296 - 859,296 Tota funds 2020 £ 3,256,689 1,958,436 819,499 6,034,624 312,568 4,124,293 738,467 5,175,328 2,829,394 859,296 3,688,690	As restated Total funds 2019 £ 2,552,316 1,970,497 767,717
				5,290,530
				387,036 3,697,097 761,323
				4,845,456
				445,074 -
				445,074 15,798 460,872 2,368,522 460,872 2,829,394

The Consolidated Statement of Financial Activities has been restated to allocate prior year support costs amongst the Charity's activities. These amounts were shown separately as 'National Support Costs' and 'Governance Costs' in 2019.

TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee) REGISTERED NUMBER: 03690871

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2020

Note Fixed assets Intangible assets 15 Tangible assets 16 Investment property 17 Current assets Debtors: amounts falling due after more than one year 19 Debtors: amounts falling due within one year 19 Cash at bank and in hand Creditors: amounts falling due within one year 20 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 21 Net assets excluding pension asset Total net assets Charity funds Restricted funds 22 Unrestricted funds: Designated funds 22 General funds 22 Total unrestricted funds 22 Total funds	225,615 867,796 1,419,286 2,512,697 (735,461) 408,000 2,561,107	2020 £ 65,730 588,959 5,376,585 6,031,274 1,777,236 7,808,510 (4,119,820) 3,688,690 3,688,690 719,583 2,969,107 3,688,690	274,205 585,669 1,007,728 1,867,602 (636,579) - 1,980,665	2019 £ - 585,398 5,280,795 5,866,193 1,231,023 7,097,216 (4,267,822) 2,829,394 2,829,394 848,729 1,980,665 2,829,394

The Consolidated statement of financial activities includes all gains and losses recognised in the year. The notes on pages 58 to 87 form part of these financial statements.

55

TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee) REGISTERED NUMBER: 03690871

CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2020

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

................................................

A Burton

(Trustee) Date: 8 September 2021

The notes on pages 58 to 87 form part of these financial statements.

TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

REGISTERED NUMBER: 03690871

CHARITY BALANCE SHEET

AS AT 31 DECEMBER 2020

Note Fixed assets Intangible assets 15 Tangible assets 16 Investments 18 Investment property 17 Current assets Debtors: amounts falling due after more than one year 19 Debtors: amounts falling due within one year 19 Cash at bank and in hand Creditors: amounts falling due within one year 20 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 21 Net assets excluding pension asset Total net assets Charity funds Restricted funds 22 Unrestricted funds: Designated funds 22 General funds Total unrestricted funds Total funds	225,615 2,172,902 1,304,264 3,702,781 (580,906) 408,000 2,740,557	2020 £ 65,730 560,241 100 4,240,014 4,866,085 3,121,875 7,987,960 (4,119,820) 3,868,140 3,868,140 719,583 3,148,557 3,868,140	1,257,638 826,066 983,247 3,066,951 (521,223) - 2,166,093	2019 £ - 556,021 100 4,180,795 4,736,916 2,545,728 7,282,644 (4,267,822) 3,014,822 3,014,822 848,729 2,166,093 3,014,822

57

TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee) REGISTERED NUMBER: 03690871

TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS

CHARITY BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2020

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

................................................

A Burton

(Trustee) Date: 8 September 2021

The notes on pages 58 to 87 form part of these financial statements.

FOR THE YEAR ENDED 31 DECEMBER 2020

Note 25 26 Cash flows from operating activities Net cash used in operating activities Cash flows from investing activities Dividends, interests and rents from investments Purchase of intangible assets Purchase of tangible fixed assets Purchase of investment property Net cash used in investing activities Cash flows from financing activities Net cash provided by financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year The notes on pages58to87form part of these financial statements	2020 £ 535,663 103,265 (65,730) (65,850) (95,790) (124,105) - 411,558 1,007,728 1,419,286	2019 £ 797,004 33,648 - (98,643) - (64,995) - 732,009 275,719 1,007,728

59

TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. General information

Transforming Lives for Good (TLG) Ltd is a private company limited by guarantee, incorporated in England & Wales. The registered office is Centre of Excellence, Hope Park Business Park, Bradford, BD5 8HH. The members of the company are the trustees detailed on page 34 . In the event of the company being wound up, the liability in respect of the guarantee is limited to £10 per member of the company.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Transforming Lives For Good (TLG) Ltd 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.

TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

2. Accounting policies (continued)

2.3 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charity, can be reliably measured.

Grants are included in the Consolidated Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

2.4 Expenditure

The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial statements.

2.2 Going concern

The Trustees (who are directors of TLG for the purposes of company law and Trustees of TLG for the purposes of charity law) have reviewed the charity's financial position, taking into account the satisfactory level of reserves and cash, the annual plan and the three year financial plan, and its systems of financial and risk management. As a result of their review, the Trustees believe that the charity is well placed to manage operational and financial risks successfully despite the ongoing uncertain economic outlook. Accordingly, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The Trustees, therefore, continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

All expenditure is inclusive of irrecoverable VAT.

2.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

61

TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

2. Accounting policies (continued)

2.6 Intangible assets and amortisation

Intangible assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Assets in the course of construction are included at costs incurred to date. Amortisation on these assets is not charged until they are brought into use.

2.7 Tangible fixed assets and depreciation

Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

The estimated useful lives are as follows:

Freehold property - 50 years Long-term leasehold property - 50 years Fixtures and fittings - 4 years

TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

2. Accounting policies (continued)

2.9 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.10 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.11 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Group anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated Statement of Financial Activities as a finance cost.

2.12 Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.8 Investments

2.13 Pensions

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated Statement of Financial Activities.

The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.

Investments in subsidiaries are valued at cost less provision for impairment.

Investment property, which is property held to earn rentals and/or for capital appreciation, is recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently, it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the Consolidated Statement of Financial Activities.

63

TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

2. Accounting policies (continued)

2.14 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

3. Critical accounting estimates and areas of judgment

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Critical areas of judgment:

Valuation of investment property:

Valuations of investment properties may have a material impact on the accounts. Professional valuations are sought to ensure that the properties are included at fair value.

Accrued and deferred income:

Accrued and deferred income are classed as a significant estimate. Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probably that income will be received and the amount can be measured reliably.

TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

4. Income from donations and legacies

Donations Legacies Grants Government grants Total 2019 as restated Income from charitable activities TLG Volunteer Programmes TLG Therapeutic Support TLG Education Centres Total 2019 as restated	Unrestricted funds 2020 £ 1,339,618 - 755,119 40,388 2,135,125 1,135,967	Restricted funds 2020 £ 270,735 - 850,829 - 1,121,564 1,416,349 Unrestricted funds 2020 £ 158,375 2,998 1,797,063 1,958,436 1,970,497	Total funds 2020 £ 1,610,353 - 1,605,948 40,388 3,256,689 2,552,316 Total funds 2020 £ 158,375 2,998 1,797,063 1,958,436 1,970,497	As restated Total funds 2019 £ 931,907 1,000 1,619,409 -
				2,552,316
				As restated Total funds 2019 £ 127,270 - 1,843,227
				1,970,497

5. Income from charitable activities

Allocation of support costs:

It is a requirement to allocate support costs on an activity basis. The allocation of support costs is a key estimate due to the allocation of support costs to restricted funds. This allocation is regularly reviewed to ensure allocation is in line with the funding agreements.

65

TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

6. Investment income

Income from Property - Charity Income from Property - Subsidiary Bank interest receivable Total 2019	Unrestricted funds 2020 £ 530,568 283,622 5,309 819,499 767,717	Total funds 2020 £ 530,568 283,622 5,309 819,499 767,717	Total funds 2019 £ 552,277 212,945 2,495
			767,717

7. Expenditure on raising funds

Training Travel Promotion Wages and salaries Support costs Total 2019 as restated	Unrestricted funds 2020 £ 373 614 32,999 187,919 90,663 312,568 387,036	Total funds 2020 £ 373 614 32,999 187,919 90,663 312,568 387,036	As restated Total funds 2019 £ 396 3,084 98,029 167,729 117,798
			387,036

TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

8. Analysis of grants paid

				As restated
		Grants to	Total	Total
		Institutions	funds	funds
		2020	2020	2019
		£	£	£
Volunteer Programmes		487,518	487,518	402,694
Total 2019 as restated		402,694	402,694
During the year, Transforming Lives for Good (TLG) Ltd made grants of £277,653 to 42 schools, £84,200 to 18 other
Charities, £113,665 to 24 Youth and Community Centres and £12,000		to 4 other organisations supporting children.
Grants are provided for the provision of free food, nutritional education, enriching activities and physical activities.
A provision was made during the 2020 School Summer holidays in		Bradford to children with Free		School Meal
entitlement. The individual grants paid were between £1,000 and £10,000.
Support costs of £75,294 (2019: 61,780) have been allocated to grant-making activities.
Analysis of expenditure on charitable activities
Summary by fund type
	Unrestricted funds	Restricted funds	Total funds	As restated Total funds
	2020	2020	2020	2019
	£	£	£	£
TLG Volunteer Programmes	751,352	1,248,996	2,000,348	1,712,576
TLG Therapeutic Support	58,977	-	58,977	-
TLG Education Centres	2,062,582	2,386	2,064,968	1,984,521
	2,872,911	1,251,382	4,124,293	3,697,097
Total 2019 as restated	2,986,533	710,564	3,697,097

During the year, Transforming Lives for Good (TLG) Ltd made grants of £277,653 to 42 schools, £84,200 to 18 other Charities, £113,665 to 24 Youth and Community Centres and £12,000 to 4 other organisations supporting children. Grants are provided for the provision of free food, nutritional education, enriching activities and physical activities. A provision was made during the 2020 School Summer holidays in Bradford to children with Free School Meal entitlement. The individual grants paid were between £1,000 and £10,000.

9. Analysis of expenditure on charitable activities

67

TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

9. Analysis of expenditure on charitable activities (continued)

Summary by expenditure type

TLG Volunteer Programmes TLG Therapeutic Support TLG Education Centres Total 2019 as restated		Staff costs 2020 £ 1,052,416 49,454 908,738 2,010,608 1,520,780	Depreciation 2020 £ 19,435 505 16,154	Other costs 2020 £ 928,497 9,018 1,140,076	Total funds 2020 £ 2,000,348 58,977 2,064,968	As restated Tota funds 2019 £ 1,712,576 - 1,984,521
			36,094	2,077,591	4,124,293	3,697,097
			53,935	2,122,382	3,697,097

10. Costs relating to income from property

Direct property costs - Charity - Subsidiary - Wages and salaries costs - Support costs Total 2019 as restated	Unrestricted funds 2020 £ 295,134 167,793 218,609 56,931 738,467 761,323	Total funds 2020 £ 295,134 167,793 218,609 56,931 738,467 761,323	As restated Total funds 2019 £ 338,243 129,436 219,102 74,542
			761,323

TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

11. Analysis of expenditure by activities

TLG Volunteer Programmes TLG Therapeutic Support TLG Education Centres Total 2019 as restated Analysis of support costs Depreciation IT, Website & Business systems Training and recruitment Travel Premise expenses Bad and doubtful debts Insurance Telephone Other support costs Governance costs		Activities undertaken directly 2020 £ 1,236,965 56,067 1,973,153 3,266,185 2,821,191	Grant funding of activities 2020 £ 487,518 - - 487,518 402,694	Support costs 2020 £ 275,865 2,910 91,815 370,590 473,212	Total funds 2020 £ 2,000,348 58,977 2,064,968 4,124,293 3,697,097 Total funds 2020 £ 36,094 76,415 41,731 15,810 74,232 22,356 14,864 11,674 51,707 25,707 370,590	As restated Total funds 2019 £ 1,712,576 - 1,984,521
						3,697,097
						As restated Total funds 2019 £ 53,935 77,265 53,813 65,551 98,765 314 10,809 6,189 73,573 32,998
						473,212

69

TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

12. Auditors' remuneration

2020 2019 £ £ Fees payable to the Group's auditor for the audit of the Charity's annual accounts 14,700 13,904

TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

13. Staff costs (continued)

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

Group Group 2020 2019 No. No. In the band £60,001 - £70,000 1 -

13. Staff costs

The gross remuneration of key management personnel during the year was £333,744.

Group 2020 £ Wages and salaries 1,996,365 Social security costs 167,354 Contribution to defined contribution pension schemes 253,417 2,417,136	Group As restated 2019 £ 1,602,297 123,322 181,992 1,907,611	Charity 2020 £ 1,947,892 162,163 247,351 2,357,406	Charity As restated 2019 £ 1,524,925 119,964 176,338
			1,821,227

The average number of persons employed by the Group during the year was as follows:

TLG Education Centres TLG Volunteer Programmes TLG Therapeutic Support Fundraising & Partnerships National Development Centre Support & Teaching & Learning Operations inc. Commercial & Other Support Staff	Group 2020 No. 15 17 3 11 10 10 19 85	Group 2019 No. 14 14 - 22 1 7 18
		76

71

TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

14. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2019 - £NIL).

During the year ended 31 December 2020, expenses totaling £372 were reimbursed or paid directly to 4 Trustees (2019 - £505 to 4 Trustees). Three of the Trustees received reimbursement for travel expenses incurred or had train tickets purchased for them during the year. One Trustee has a legal letter reimbursed.

15. Intangible assets

Group and Charity

Cost Additions At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019 Assets under construction relate to new HR and finance systems.	Assets under construction £ 65,730 65,730 65,730 -

TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

16. Tangible fixed assets

Group

Cost or valuation At 1 January 2020 Additions At 31 December 2020 Depreciation At 1 January 2020 Charge for the year At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019	Freehold property £ 525,150 - 525,150 55,945 10,853 66,798 458,352 469,205	Long-term leasehold property £ 139,818 - 139,818 136,095 1,755 137,850 1,968 3,723	Fixtures and fittings £ 454,872 65,850 520,722 342,402 49,681 392,083 128,639 112,470	Total £ 1,119,840 65,850
				1,185,690
				534,442 62,289
				596,731
				588,959
				585,398

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TRANSFORMING LIVES FOR GOOD (TLG) LTD (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

16. Tangible fixed assets (continued)

Charity

Cost or valuation At 1 January 2020 Additions At 31 December 2020 Depreciation At 1 January 2020 Charge for the year At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019	Freehold property £ 525,150 - 525,150 55,945 10,853 66,798 458,352 469,205	Long-term leasehold property £ 139,430 - 139,430 136,095 1,755 137,850 1,580 3,335	Fixtures and fittings £ 411,986 54,700 466,686 328,505 37,872 366,377 100,309 83,481	l Tota £ 1,076,566 54,700
				1,131,266
				520,545 50,480
				571,025
				560,241
				556,021

17. Investment property

Group

Valuation At 1 January 2020 Additions At 31 December 2020	Freehold investment property £ 5,280,795 95,790
	5,376,585

TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

17. Investment property (continued)

Charity

Valuation At 1 January 2020 Additions At 31 December 2020	Freehold investment property £ 4,180,795 59,219 4,240,014

Investment properties consist of the freehold properties known as The Centre of Excellence and Beta House in Bradford. The freehold investment property valuation of £5,376,585 is a proportion of the total value of the groups property assets which is £5,834,937 and includes £458,352 which is recognised within tangible fixed assets.

The Centre of Excellence is owned by Transforming Lives for Good (TLG) Ltd while Beta House is owned by the subsidiary, Hope Park Business Centres Limited. The Centre of Excellence property is classed as a mixed-use property. The property's main use, 88.33% (2019 - 88.33%) is to generate income to enable the long-term sustainability of the charity through subletting premium office space and meeting rooms. Transforming Lives for Good (TLG) Ltd occupies 11.67% (2019 - 11.67%) of the property for its charitable activities. The property has therefore been apportioned accordingly between Investment Property and Freehold Land & Buildings.

Beta House is used to generate income for the charity.

The fair value of the investment properties has been arrived at on the basis of a valuation carried out by the Trustees at 31 December 2020 based on their best estimate of market value. In forming their opinion they have taken into consideration a desktop valuation performed by E J Robinson MRICS, a director of Hayfield Robinson, an independent valuer. The valuation of £5,750,000, provided by the independent valuer, was based on existing knowledge from a previous valuation completed in 2017 and under the assumption that there have been no significant physical changes on site. However, the Trustees believe that the additions made since the 2017 valuation have enhanced the value of the property which has resulted in increased occupancy and rents being charged to tenants. For this reason, no impairment has been made for additions to investment properties during the year ended 31 December 2020.

The historic cost and accumulated depreciation of investment properties is as follows:

Historic cost Accumulated depreciation and impairments	Group 2020 £ 7,709,961 (1,825,203) 5,884,758	Group 2019 £ 7,614,171 (1,671,004) 5,943,167	Charity 2020 £ 6,567,477 (1,564,047) 5,003,430	Charity 2019 £ 6,508,258 (1,432,698) 5,075,560

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TRANSFORMING LIVES FOR GOOD (TLG) LTD (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

18. Fixed asset investments

Charity Cost or valuation At 1 January 2020 At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019	Investments in subsidiary companies £ 100 100 100 100

The charity holds 100 shares of £1 in its wholly owned subsidiary company Hope Park Business Centres Limited (company registration number 09851811) which is incorporated in England & Wales. These are the only shares allotted, called up and fully paid.

Details of the registered office, principal activity, income, expenditure and net liabilities can be found in note 32.

TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

19. Debtors

Group 2020 £ Due after more than one year Amounts owed by group undertakings - Prepayments and accrued income 225,615 225,615 Grant income due after more than one year has been recognised at Group 2020 Due within one year £ Trade debtors 288,739 Amounts owed by group undertakings - Other debtors 94,083 Prepayments and accrued income 484,974 867,796	Group Charity 2019 £ 2020 £ - - 274,205 225,615 274,205 225,615 net present value. Group Charity 2019 2020 £ £ 113,326 286,903 - 1,328,074 33,214 72,951 439,129 484,974 585,669 2,172,902	Charity 2019 £ 983,433 274,205
		1,257,638
		Charity 2019 £ 106,739 284,094 31,553 403,680
		826,066

Grant income due after more than one year has been recognised at net present value.

At the year end amounts due from Hope Park Business Centres Limited as intercompany loans were not subject to a formal agreement, as such the full loan of £1,328,074 has been recognised as due on demand and included within debtors due within one year.

Since the year end the Charity has entered into a formal agreement over the intercompany loans. This includes loans from the Charity to Hope Park Business Centres Limited to purchase investment property, which are to be repaid in line with the terms of the Charity's bank loan agreement, and further amounts of £320,000 loaned by the charity to be repaid over a period of 20 years.

All amounts due are subject to interest. Under the post year end agreements the amounts payable are as follows:

Amount due within 1 year 113,179 Amount due in 2 to 5 years 323,409 Amounts due in more than 5 years 891,485

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TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

20. Creditors: Amounts falling due within one year (continued)

20. Creditors: Amounts falling due within one year

Bank loans Trade creditors Other taxation and social security Other creditors Accruals and deferred income	Group 2020 £ 156,991 340,061 70,595 39,049 128,765 735,461	Group 2019 £ 140,781 231,954 63,489 90,878 109,477 636,579	Charity 2020 £ 156,991 256,289 69,747 39,049 58,830 580,906	Charity 2019 £ 140,781 168,194 61,976 64,580 85,692
				521,223

Deferred income represents tenants' rent invoiced for future periods and not earned. Deferred income at 31 December 2019 was £23,679, all of which was released to income in 2020. The deferred income for 2020 of £18,697 will be released to income in 2021.

The loans are secured on the freehold properties known as Centre of Excellence, Hope Park Bradford and Beta House, Bradford by way of a legal charge.

Charity Bank Limited holds fixed and floating charges over all freehold, leasehold and other immovable property now and in the future. The amount outstanding on the loans at 31 December 2020 is £3,205,855.

The Social Investment Business (previously known as Futurebuilders England Limited) holds a legal charge over the freehold land and buildings at Trevor Foster Way. The amount outstanding on the loans at 31 December 2020 is £678,580.

City of Bradford Metropolitan District Council holds a legal charge against the freehold land and buildings at Hope Park, Trevor Foster Way. This was put in place as a condition of funding. The amount secured at 31 December 2020 is up to a maximum of £250,000.

City of Bradford Metropolitan District Council also holds a charge amounting to £269,873 against the freehold land and buildings at Trevor Foster Way and £21,000 over 540 Great Horton Road, Bradford.

Yorkshire Bank plc hold a charge over the property known as 6 Gathorne Street, Great Horton, Bradford.

Big Issue Invest Limited holds a fixed and floating charge over all freehold and leasehold at Beta House, Parkside Court, Rooley Lane, Bradford.

The loans secured against the Centre of Excellence and Beta House represent 77% of the valuation of these properties.

Charges held on 6 Gathorne Street, Great Horton, Bradford and 540 Great Horton Road, Bradford were satisfied when the properties were sold in 2008 and 2011 respectively. These charges are currently showing as being outstanding at Companies House, steps are being taken to update Companies House.

The Social Investment Business loan term is 20 years and bears interest at 6% per annum and is secured.

The Charity Bank Limited loan term is 20 years and bears interest at 3% above Bank of England base rate and is secured.

79

TRANSFORMING LIVES FOR GOOD (TLG) LTD (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

21. Creditors: Amounts falling due after more than one year

Bank loans Included within the above are amounts falling due a Between two and five years Bank loans Over five years Bank loans	Group 2020 £ 4,119,820 s follows: 797,132 3,322,688	Group 2019 £ 4,267,822 696,458 3,571,364	Charity 2020 £ 4,119,820 797,132 3,322,688	Charity 2019 £ 4,267,822 696,458 3,571,364

TRANSFORMING LIVES FOR GOOD (TLG) LTD (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

22. Statement of funds

Statement of funds - current year

Statement of funds - current year
Unrestricted funds Designated funds IT System Development Strategic investments in Capital Post-Covid Improvements Other Strategic Investments General funds Unrestricted funds Revaluation reserve Fixed assets less long term liabilities Total Unrestricted funds Restricted funds Expansion of Education Centres Volunteer Programmes Boxes of Hope Boxes of Hope - National Lottery Community Fund Therapeutic Support Property Church Revitalisation Trust DfE Holiday Activities and Food Programme (HAFP)	Balance at 1 January 2020 £ - - - - - 2,331,301 (1,808,226) 1,457,590 1,980,665 1,980,665 27,000 300,903 - - - 520,826 - - 848,729	Income £ - - - - - 4,913,060 - - 4,913,060 4,913,060 - 107,168 201,820 32,706 9,900 - 17,000 752,970 1,121,564	Expenditure £ - - - - - (3,923,946) - - (3,923,946) (3,923,946) (27,000) (277,214) (151,820) (32,706) - - (9,000) (753,642) (1,251,382)	Transfers in/out £ 257,500 80,000 16,000 54,500 408,000 (705,545) - 296,873 (408,672) (672) - - - - - - - 672 672	Balance at 31 December 2020 £ 257,500 80,000 16,000 54,500
					408,000
					2,614,870 (1,808,226) 1,754,463 2,561,107 2,969,107 - 130,857 50,000 - 9,900 520,826 8,000 - 719,583

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TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

----- Start of picture text -----
22. Statement of funds (continued)
Total of funds 2,829,394 6,034,624 (5,175,328) - 3,688,690
----- End of picture text -----

Transfers between funds:

During the year £408,000 was transferred from unrestricted funds into designated funds. The reason for the designation has been detailed below.

Designated Funds:

IT System Development

Funds dedicated to improve our internal systems.

Strategic Investments in Capital

Funds to facilitate transitioning to new Education Centre ('EC') model and improvements to EC Centres.

Post-Covid Improvements

Funds dedicated to post-Covid improvements, e.g. implementation of IT and remote working facilities.

Other Strategic Investments

Funds to support various costs: New EC set-up costs, demonstration of impact, crisis response engagement fund etc.

Restricted Funds:

Expansion of Education Centres

Development of the network of Education Centres by opening new centres across the UK to reach children struggling in mainstream education.

Volunteer Programmes

Includes Early Intervention providing one-to-one coaching for primary school children and Make Lunch clubs to tackle food insecurity and isolation in school holidays.

Boxes of Hope

Providing food, household essentials and well-being resources to support children and parents on low income and/ or in receipt of free school meals.

Therapeutic Support

Emotional First Aid and Emotional Rollercoaster training and resources for TLG partners and schools.

Church Revitalisation Trust

Funding received for the Love Christmas Campaign to distribute locally. Not all the funding was distributed and the remaining £8,000 was returned to the Church Revitalisation Trust in January 2021.

TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

22. Statement of funds (continued)

Statement of funds - prior year as restated

Unrestricted funds Unrestricted funds Revaluation reserve Fixed assets less long term liabilities Restricted funds Expansion of Education Centres Volunteer Programmes Property Reaching Communities DfE Holiday Activities and Food Programme (HAFP) Total of funds	Balance at 1 January 2019 £ 1,562,044 (1,824,024) 1,439,001 1,177,021 54,000 596,301 520,826 20,374 - 1,191,501 2,368,522	As restated Income £ 3,874,181 - - 3,874,181 23,500 593,979 - - 798,870 1,416,349 5,290,530	As restated Expenditure £ (3,086,335) - - (3,086,335) (50,500) (346,877) - (20,374) (798,870) (1,216,621) (4,302,956)	Transfers in/out £ (18,589) - 18,589 - - (542,500) - - - (542,500) (542,500)	Gains/ (Losses) £ - 15,798 - 15,798 - - - - - - 15,798	Balance at 31 December 2019 £ 2,331,301 (1,808,226) 1,457,590 1,980,665 27,000 300,903 520,826 - -
						848,729
						2,829,394

DfE Holiday Activities and Food Programme (HAFP)

Provision of free food, nutritional education, enriching activities and physical activities during the School summer holidays in Bradford for children entitled to Free School Meals (FSM).

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TRANSFORMING LIVES FOR GOOD (TLG) LTD (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

23. Summary of funds

TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

24. Analysis of net assets between funds (continued)

Summary of funds - current year

Designated funds General funds Restricted funds Summary of funds General funds Restricted funds	Balance at 1 January 2020 £ - 1,980,665 848,729 2,829,394 - prior year as restated Balance at 1 January As restated 2019 Income £ £ 1,177,021 3,874,181 1,191,501 1,416,349 2,368,522 5,290,530	Income £ - 4,913,060 1,121,564 6,034,624 As restated Expenditure £ (3,086,335) (1,216,621) (4,302,956)	Expenditure £ - (3,923,946) (1,251,382) (5,175,328) Transfers in/out £ - (542,500) (542,500)	Transfers Balance at 31 in/out December 2020 £ £ 408,000 408,000 (408,672) 2,561,107 672 719,583 - 3,688,690 Balance at Gains/ 31 December (Losses) 2019 £ £ 15,798 1,980,665 - 848,729 15,798 2,829,394	Transfers Balance at 31 in/out December 2020 £ £ 408,000 408,000 (408,672) 2,561,107 672 719,583 - 3,688,690 Balance at Gains/ 31 December (Losses) 2019 £ £ 15,798 1,980,665 - 848,729 15,798 2,829,394
					3,688,690
					Balance at 31 December 2019 £ 1,980,665 848,729 2,829,394

24. Analysis of net assets between funds

Analysis of net assets between funds - current period

Tangible fixed assets Intangible fixed assets Investment property Debtors due after more than one year Current assets Creditors due within one year Creditors due in more than one year Total	Unrestricted Restricted funds funds 2020 2020 £ £ 68,133 520,826 65,730 - 5,376,585 - 210,615 15,000 2,103,325 183,757 (735,461) - (4,119,820) - 2,969,107 719,583	Total funds 2020 £ 588,959 65,730 5,376,585 225,615 2,287,082 (735,461) (4,119,820) 3,688,690

Analysis of net assets between funds - prior period

Unrestricted funds Restricted funds 2019 £ 2019 £ Tangible fixed assets 64,572 520,826 Investment property 5,280,795 - Debtors due after more than one year 153,346 120,859 Current assets 1,386,353 207,044 Creditors due within one year (636,579) - Creditors due in more than one year (4,267,822) - Total 1,980,665 848,729 Reconciliation of net movement in funds to net cash flow from operating activities Group 2020 £ Net income for the period (as per Statement of Financial Activities) 859,296 Adjustments for: Depreciation charges 62,289 Dividends, interests and rents from investments (103,265) Decrease/(increase) in debtors (233,537) Increase/(decrease) in creditors (49,120) Net cash provided by operating activities 535,663

Total funds 2019 £ 585,398 5,280,795 274,205 1,593,397 (636,579) (4,267,822) 2,829,394 Group 2019 £ 445,074 39,237 (33,648) 142,763 203,578 797,004

25. Reconciliation of net movement in funds to net cash flow from operating activities

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TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

26. Analysis of cash and cash equivalents

Cash in hand Total cash and cash equivalents	Group 2020 £ 1,419,286 1,419,286	Group 2019 £ 1,007,728 1,007,728

27. Analysis of changes in net debt

Cash at bank and in hand Debt due within 1 year Debt due after 1 year	At 1 January 2020 £ 1,007,728 (140,781) (4,267,822) (3,400,875)	Cash flows £ 411,558 (16,210) 148,002 543,350	At 31 December 2020 £ 1,419,286 (156,991) (4,119,820) (2,857,525)

TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

29. Operating lease commitments

At 31 December 2020 the Group and the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year Later than 1 year and not later than 5 years	Group 2020 £ 971 1,249 2,220	Group 2019 £ 971 2,220
		3,191

At 31 December 2020 the Group and Charity had commitments to receive future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year Later than 1 year and not later than 5 years	Group 2020 £ 479,533 616,408 1,095,941	Group 2019 £ 567,993 401,982 969,975	Charity 2020 £ 396,752 608,323 1,005,075	Charity 2019 £ 393,743 363,145
				756,888

28. Pension commitments

The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £253,417 (2019 - £181,989). Contributions amounting to £nil (2019 - £16,356) were payable to the fund at the balance sheet date and are included in creditors.

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TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

30. Related party transactions

• Hope Aid Charitable Trust loaned TLG £100,000 in December 2017 on a 5 year term with interest chargeable at 5% per annum. Andrew Burton is a trustee of both TLG and Hope Aid Charitable Trust. The balance outstanding at 31st December 2020 was £100,000 and interest paid by TLG amounted to £5,014 (2019: £5,001). Andrew Burton receives no remuneration from Hope Aid Charitable Trust.

Forge Leadership Consultancy Ltd provided leadership training to the value of £3,648 and made a donation of £2,500 ( 2019: £4,588). The balance outstanding as at 31st December 2020 was £0 (2019: £300). Simon Barrington is a director of Forge Leadership Consultancy Ltd and a trustee of TLG.

New Wine Resources Limited provided advertising services to the value of £2,416 during 2020 (2019: £22,984). The balance outstanding as at 31st December 2020 was £0 (2019: £0). Michael Royal is a director of New Wine Resources Limited and was a trustee of TLG until 15/02/2021.

TLG South Birmingham was set up in September 2019 and is run in partnership with Ecclesia International Church. TLG had purchases totalling £57,290 during 2020 (2019: £20,353) with Ecclesia International which are made up of the payment of pupil fees received from the local authority by TLG and paid over to Ecclesia International in accordance with the Franchise agreement. During the period September 2019 to July 2020 TLG paid 100% of the pupils fees to Ecclesia International rather than the usual 70%. Although this is not normal practice, the trustees have agreed similar terms with other partners to assist in challenging times and in the start-up phase of a Centre. Payments made from August 2020 were made at the usual rate and conducted at an arm's length basis. The debtor balance outstanding as at 31st December 2020 was £1,333 (2019 creditor balance: £3,332). Michael Royal is a trustee of Ecclesia International and was a trustee of TLG until 15 February 2021.

TRANSFORMING LIVES FOR GOOD (TLG) LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

32. Principal subsidiaries

The following was a subsidiary undertaking of the Charity:

Company Registered office or principal place Principal activity number of business

Name

Centre of Excellence, Hope Park, Property Holding Bradford, BD5 8HH Company

Hope Park Business Centres Limited 09851811			Centre of	Excellence, Hope	Park,	Property Holding
			Bradford, BD5 8HH			Company
Class of	Holding	Included in
shares		consolidation
Ordinary	100% Yes
The financial results of the subsidiary for the year			were:
Name			Income	Expenditure	Profit/(Loss)/		Net assets
			£	£		Surplus/	£
					(Deficit) for the
						year
						£
Hope Park Business Centres Limited			283,622	277,459		6,163	(179,350)

The financial results of the subsidiary for the year were:

During the year, TLG donated £1,000 to Cinnamon Network UK towards their work helping churches support people in local communities through replication projects such as the TLG programmes. Michael Royal is the Co- Chief Executive of Cinnamon Network UK and until 15 February, Michael was a trustee of TLG.

Partnership income totalling £675 was received from Kerith Community Chur

ch during 2020. Simon Benham is a director of Kerith Community Church and a trustee of TLG from 20/01/2020. The total of voluntary donations to TLG by trustees and related parties amounted to £1,140 in the year (2019: £9,632).

31. Controlling party

There are no controlling parties.

TLG, National Support Centre, Hope Park, Bradford, BD5 8HH Transforming Lives for Good (TLG) Ltd. is a company limited by guarantee, registered in England & Wales no.3690871 Registered Charity no. 1074114