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2024-03-31-accounts

Charity registration number 1086306

Company registration number 03978344 (England and Wales)

DIGITAL POVERTY ALLIANCE

(FORMERLY LEARNING FOUNDATION)

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

DIGITAL POVERTY ALLIANCE (FORMERLY LEARNING FOUNDATION) LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr S T Bethel Ms I F Brannen Mr D S Burrows Ms B C Clarke Mr T C Kane Mr W N McLean Ms M Thomas (Appointed 27 August 2024) Charity number 1086306 Company number 03978344 Registered office 3rd Floor, 86-90 Paul Street London EC2A 4NE Auditor Baxter & Co Lynwood House Crofton Road Orpington Kent BR6 8QE

DIGITAL POVERTY ALLIANCE (FORMERLY LEARNING FOUNDATION) CONTENTS

Page
Trustees' report 1 - 6
Independent auditor's report 7 - 8
Statement of financial activities 9
Balance sheet 10
Statement of cash flows 11
Notes to the financial statements 12 - 23

DIGITAL POVERTY ALLIANCE (FORMERLY LEARNING FOUNDATION) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2024

The trustees present their annual report and financial statements for the year ended 31 March 2024.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "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).

Objectives and activities

Since the end of the financial year, the Learning Foundation has re-branded as the Digital Poverty Alliance. The Digital Poverty Alliance has, since 2021, been the name of an initiative of the charity, and in 2023 became the working name and main public facing brand. In 2024, the Trustees agreed that the name should be changed in order to promote clarity, transparency and accountability, as well as streamlining communications.

The charity’s research and associated programmes, has identified key determinants which lead to digital exclusion. The key issues relate to equipment and connectivity, access, capability, motivation and support, although there are also other issues such as home environment and socio-economic challenges.

These are the key concepts we are looking to address in our work, which focuses on two main areas: advocacy and research to create social change, and direct delivery of services and support – including through our DMS scheme and Tech4Families.

MISSION AND CHARITABLE OBJECTS

Our mission is: " We will inspire and support schools and families across the UK to take positive action so that every schoolchild in this country can benefit from good access to learning technologies when and where they need them.

Charitable objects as stated in our Articles: “The charitable advancement of education, in particular of those who have a social or economic disadvantage or who have disability, through the provision or assistance in the provision of information, learning and communications technology.”

DIGITAL POVERTY ALLIANCE (FORMERLY LEARNING FOUNDATION) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Strategy

The Digital Poverty Alliance (DPA) has a long history in tackling inequality caused by a lack of access to digital tools. Our Donation Management Service provides support to schools looking to engage with digital on a 1:1 basis, and for many years this has been at the core of our work.

Our broader work aims to unite the digital inclusion sector across all areas of civil society, with the aim of ending digital poverty once and for all within the UK. We do this through advocacy, research, community building and delivery of projects.

Structure

All staff report to the Chief Executive. Functions include operations, external affairs, policy and insights, project management, events and administration. Matters of strategic, operational, financial and governance day to day running of the organisation are delegated to the Chief Executive.

Looking back at the year 2023-2024

In 2023, the main focus of the organisation was between advocacy and delivery.

At the start of the period, we launched our first National Delivery Plan, setting out six key missions to end digital poverty, and building on the previous year’s UK Evidence Review. The Plan was launched at the House of Lords and was referenced within The Times. Shortly after, the House of Lords held an inquiry into digital exclusion, in which our report was referenced.

We were able to expand our flagship Tech4Families programme that autumn, taking in Lincolnshire coast, and more notably the whole of Northern Ireland. The scheme continues to be funded by donations from customers at Currys stores, with Currys having continued to promote and invest in their running of this promotional activity. We began evaluating the scheme, specifically looking for evidence of how mobile first families benefited or were impacted by a shift to a laptop and keyboard.

We also launched End Digital Poverty Day, a key new awareness day on 12th September, focusing on raising the profile of digital poverty. As well as our own webinars and Gala Reception (sponsored by Meshii Wifi), a number of other events around the country were held by our partners, and the activity was referenced in the Sun newspaper. At the same time, we launched our Industry Forum, which allows corporate organisations to support our work and provide input on business strategies for digital inclusion.

In October, we launched the Socio-Economic research which Deloitte had prepared for us pro bono. This highlighted a number of key opportunities for tackling digital exclusion in over 16s – notably including the £17bn boost the economy if digital skills were increased, and that up to 24,000 lives a year in over-65s could be saved through better access to digital health literacy information.

Alongside this, we concluded our Tech4Prison Leavers project funded by Intel, and launched our Tech4Teachers evaluation paper, amongst many other activities. We also continued to run our highly successful Donation Management Service, supporting thousands of students across the UK to receive one to one devices thanks to small, monthly parental donations.

We closed the reporting year by receiving funding from the Barratt Foundation towards a new Tech4Youth scheme, supporting 90 young people with devices, connectivity and skills workshops.

The profile of the organisation continues to rise. From September to April, the DPA received 120 media mentions. The charity’s CEO and senior staff regularly speak at conferences across the UK.

Organisationally, the Chief Executive of the charity moved on during the reporting year, with our Chief Operating Officer – Elizabeth Anderson – moving into first an Interim CEO position from June, and then from autumn becoming the Chief Executive.

Internally the DPA has continued to focus on creating a strong team, fostering ever improving ways of remote working, strengthening its project management discipline, and developing appropriate processes and procedures.

DIGITAL POVERTY ALLIANCE (FORMERLY LEARNING FOUNDATION) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Achievements and performance

Significant activities and achievements against objectives

During the year, we reviewed our fundraising approach, opening up new ways for supporters to work with us. The majority of our funding continues to come through the DMS, with parental donations providing £1,025k to our income, which is restricted income directly granted to schools. We continued, in addition, to receive other ad-hoc donations, as well as support from new Industry Forum members such as Virgin Media O2 and Meshii Wifi. Whilst our outgoings were greater than our income, this was expected for this year, as we continued to use the funding provided by Currys for the initiation of the Digital Poverty Alliance. A major focus remains on generating further funding from corporates, the public sector and charities. The charity has not received, nor sought, government funding for over ten years.

Financial review

Reserves policy

As part of the management of risk, the charity recognises the need to retain free reserves to enable it to work to a long term strategy without the need to make short term adjustments forced on it by temporary deficits in funding. The charity has no regular guaranteed sources of income but does have fixed operating costs in terms of activities required to maintain its presence and further its charitable objectives. The Trustees believe that a target of 6 months cover of all operating costs, plus an estimated cost of closing the charity down in an orderly manner, is a reasonable target of reserves to carry forward.

The target level of free reserves is based on forward budgets and forecasts and takes into account anticipated future income flows adjusted to reflect the risk of non-receipt.

Through the reporting year, the reserves policy was reviewed, and adjustments are made to ensure that the charity can operate within its means. The reserves policy and the adequacy of current reserve levels is reviewed regularly, and this was conducted during the year.

Investment policy

Funds not immediately required for the running of the charity or for the furtherance of its objects are placed on deposit with the charity’s bankers to generate interest as part of the charity’s treasury management operations. No other investment instruments or facilities e.g. equities, bonds or unit trusts are approved by the board. No investments were made during the year.

Structure, governance and management

The charity is a charitable company limited by guarantee number 1086306, incorporated under the Companies Act 1985 registration number 3978344 on 17 April 2000, and formally launched at the House of Commons in February 2001 following application to the Charity Commission. It is governed by a memorandum and articles of association, last amended in December 2022.

The Board of Trustees meets in full on at least four occasions during the year. The board delegates the finance function to the Finance Lead, Mr Tom Kane. Given the size of the organisation other specialised governance work is taken on either by the whole board or through an individual Trustee. This work includes on areas such as risk, fundraising, employment & remuneration. At least once each year the board reviews both its Risk and Reserves policies.

Relationships between the charity and other parties

The charity had previously held a company called E-Learning Enterprises Limited which had never traded. This entity was dissolved on 3rd October 2023. Whilst we cooperate with a wide variety of commercial, governmental and NGO organisations, our contracted relationships are limited to the supply of operational services (including for IT, accountancy and audit, and PR), as well as subscriptions to various software services.

DIGITAL POVERTY ALLIANCE (FORMERLY LEARNING FOUNDATION) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mr S T Bethel Ms I F Brannen Mr D S Burrows Ms B C Clarke Mr T C Kane Mr W N McLean Mr D Norrish (Resigned 14 June 2023) Ms V Thompson (Resigned 19 September 2023) Ms M Thomas (Appointed 27 August 2024)

Recruitment and appointment of trustees

The Trustees regularly review the skill set of the board and match this against the requirements of the business plan. On this basis they are able to review the make-up of the board and if necessary recruit new members to fill any apparent gaps or vacancies. New Trustees may be sought by open advertisement, through specialist recruitment agencies and more commonly through recommendation.

Prospective Trustees are reviewed by the Chairman whose recommendations for Trustee appointments are then put before the full Board for approval. Prospective Trustees are invited to attend a Board Meeting as observers to meet the other Trustees and confirm their continued interest to act as a Trustee before the appointment is recorded at Companies House and with the Charities Commission. This is followed by an induction session with the Chief Executive to brief each new Trustee on the detailed operations and operating policies of the charity.

Risk management

During the year the Trustees re-examined the major strategic, business and operational risks that the charity faces and the existing risk register was updated accordingly. A programme continues to be in place for the regular monitoring and management of risk on an ongoing basis.

Other matters

Employee and volunteer involvement

The organisation has a flat structure with staff reporting to the Chief Executive. Employees are consulted on issues of concern and interest to them by means of regular team meetings. They are also kept informed on specific matters directly by management through e-mail and ad-hoc meetings. The charity carries out exit interviews for all staff leaving the organisation. The charity has implemented a number of detailed policies in relation to all aspects of personnel matters including:

These are set out in detail in a Staff Handbook.

The charity is fortunate to have a number of people to call on as volunteers for short term support where needed. The charity also recruits volunteers to support policy, research and fundraising activities on an ad hoc basis within the team. We thank them for everything they do and bring to us.

Public benefit

The principles of public benefit, as defined by the Charity Commission, are regularly reviewed and the Trustees confirm that they have had regard to the Charity Commission’s guidance and their belief that the Digital Poverty Alliance provides identifiable benefits to a section of the public.

DIGITAL POVERTY ALLIANCE (FORMERLY LEARNING FOUNDATION) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Statement of trustees' responsibilities

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

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities and to provide reasonable assurance that:

In so far as we are aware:

The DPA’s systems of internal control are designed to provide reasonable, but not absolute, assurance against material misstatement or loss, and include:

I would like to thank my board for their enthusiasm, commitment and for their input, advice and guidance without which I and the charity would not be as effective. I would also like to thank the staff at the charity for their continued energy and hard work.

Auditor

Our auditors are Baxter and Co. Their work and ours is supported through Hedley Dunk who provide us with day-today financial support.

DIGITAL POVERTY ALLIANCE (FORMERLY LEARNING FOUNDATION) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Small companies’ exemption

This report has been prepared in accordance with the small companies’ regime of the Companies Act 2006, approved by the board on 19th December 2024 and signed on its behalf by:

.............................. Mr W N McLean Trustee

Date: .19th December 2024...........

DIGITAL POVERTY ALLIANCE (FORMERLY LEARNING FOUNDATION) INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF DIGITAL POVERTY ALLIANCE

Opinion

We have audited the financial statements of Digital Poverty Alliance (the ‘charity’) for the year ended 31 March 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

DIGITAL POVERTY ALLIANCE (FORMERLY LEARNING FOUNDATION) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF DIGITAL POVERTY ALLIANCE

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Louise Hallsworth FCA (Senior Statutory Auditor) for and on behalf of Baxter & Co .........................19 December 2024

Chartered Accountants Statutory Auditor

Lynwood House Crofton Road Orpington Kent BR6 8QE

Baxter & Co is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

DIGITAL POVERTY ALLIANCE (FORMERLY LEARNING FOUNDATION) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2024

Unrestricted
Restricted
funds
funds
2024
2024
Notes
£
£
Income from:
Donations and legacies
3
89,156
1,337,554
Charitable activities
4
153,909
-
Other trading activities
5
21,338
-
Investments
6
4,005
-
Total income
268,408
1,337,554
Expenditure on:
Raising funds
7
12,236
-
Charitable activities
8
646,951
1,307,887
Other expenditure
14
878
-
Total expenditure
660,065
1,307,887
Net income/(expenditure)
(391,657)
29,667
Transfers between
funds
-
-
Net movement in
funds
11
(391,657)
29,667
Reconciliation of funds:
Fund balances at 1 April 2023
391,657
144,702
Fund balances at 31 March
2024
-
174,369		 Total
Unrestricted
Restricted
funds
funds
2024
2023
2023
£
£
£
1,426,710
196,168
1,481,918
153,909
139,395
-
21,338
-
-
4,005
1,064
-
1,605,962
336,627
1,481,918
12,236
27,961
-
1,954,838
974,597
1,165,414
878
-
-
1,967,952
1,002,558
1,165,414
(361,990)
(665,931)
316,504
-
578,941
(578,941)
(361,990)
(86,990)
(262,437)
536,359
478,647
407,139
174,369
391,657
144,702		 Total
2023
£
1,678,086
139,395
-
1,064
1,818,545
27,961
2,140,011
-
2,167,972
(349,427)
-
(349,427)
885,786
536,359

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

DIGITAL POVERTY ALLIANCE (FORMERLY LEARNING FOUNDATION) BALANCE SHEET

AS AT 31 MARCH 2024

2024 2023
Notes £ £ £ £
Fixed assets
Tangible assets 16 3,356 5,580
Current assets
Stocks 17 120 9,399
Debtors 18 110,000 138,991
Cash at bank and in hand 469,302 672,453
579,422 820,843
Creditors: amounts falling due within 19
one year (408,409) (290,064)
Net current assets 171,013 530,779
Total assets less current liabilities 174,369 536,359
The funds of the charity
Restricted income funds 20 174,369 144,702
Unrestricted funds 21 - 391,657
174,369 536,359

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2024, although an audit has been carried out under section 144 of the Charities Act 2011.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the trustees on 19th December 2024.

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

Mr W N McLean Trustee

Company registration number 03978344 (England and Wales)

DIGITAL POVERTY ALLIANCE (FORMERLY LEARNING FOUNDATION) STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2024

Notes
Cash flows from operating activities
Cash absorbed by operations
24
Investing activities
Purchase of tangible fixed assets
Proceeds from disposal of tangible fixed
assets
Investment income received
Net cash generated from/(used in)
investing activities
Net cash used in financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2024
£
£
(206,558)
(698)
100
4,005
3,407
-
(203,151)
672,453
469,302		 2023
£
£
(180,207)
(4,636)
-
1,064
(3,572)
-
(183,779)
856,232
672,453

DIGITAL POVERTY ALLIANCE (FORMERLY LEARNING FOUNDATION) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting policies

Charity information

Digital Poverty Alliance is a private company limited by guarantee incorporated in England and Wales. The registered office is 3rd Floor, 86-90 Paul Street, London, EC2A 4NE.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. In assessing the charity's ability to remain a going concern, the trustees have considered the level of future minimum outgoings of the charity in comparison with the available funds and expected future incomings. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Parental donations collected via the Donation Management System (DMS) are included when receivable. Incoming resources generated from sponsorship and advertising are included when receivable. Income from equity investment is accounted for an ex div date basis. Bank and other interest is accounted for on a receivable basis.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Assets for distribution are recognised only when distributed. Assets given for use by the charity are recognised when receivable. Stocks of undistributed donated goods are not valued for balance sheet purposes.

DIGITAL POVERTY ALLIANCE (FORMERLY LEARNING FOUNDATION) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting policies

(Continued)

1.5 Expenditure

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 are allocated on the portion of the asset’s use.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings 25% straight line Computers 25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Stocks

Stocks of donated goods are recognised at the fair value (being the estimated market value) of the goods at the time they are received with a corresponding entry to income. Stocks are recognised as an expense at the time they are donated to the charity's beneficiaries.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

DIGITAL POVERTY ALLIANCE (FORMERLY LEARNING FOUNDATION) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting policies

(Continued)

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Income from donations and legacies

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2024 2024 2024 2023 2023 2023
£ £ £ £ £ £
Donations and gifts 89,156 1,337,554 1,426,710 196,168 1,481,918 1,678,086

DIGITAL POVERTY ALLIANCE (FORMERLY LEARNING FOUNDATION) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

3
Income from donations and legacies
Unrestricted
Restricted
funds
funds
2024
2024
£
£
Donations and gifts
Digital Poverty Alliance
-
-
Donations of less than
£2,000 including parental
donations from DMS
-
1,024,715
Tech 4 Teachers
-
-
Donated laptops relating
to DIgital Poverty Alliance
50,400
-
Gift Aid contributions on
DMS income
-
19,589
Tech 4 Schools
-
-
Tech 4 Prison Leavers
-
-
Tech 4 Families
-
-
Pennies Donations
-
213,250
Tech 4 Young Carers
-
80,000
Other
38,756
-
89,156
1,337,554
4
Income from charitable activities
Charitable activities
Commissions, conferences and admin fees
5
Income from other trading activities
Other income		 Total
Unrestricted
Restricted
Total
funds
funds
2024
2023
2023
2023
£
£
£
£
(Continued)
-
45,838
-
45,838
1,024,715
-
977,412
977,412
-
-
140,448
140,448
50,400
68,000
-
68,000
19,589
-
19,038
19,038
-
-
25,000
25,000
-
-
140,448
140,448
-
-
179,572
179,572
213,250
58,167
-
58,167
80,000
-
-
-
38,756
24,163
-
24,163
1,426,710
196,168
1,481,918
1,678,086
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
153,909
139,395
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
21,338
-

DIGITAL POVERTY ALLIANCE (FORMERLY LEARNING FOUNDATION) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

6 Income from investments

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Interest receivable 4,005 1,064

7 Expenditure on raising funds

Unrestricted Unrestricted Unrestricted
funds funds
2024 2023
£ £
Fundraising and publicity
Conferences and exhibition costs 3,861 6,275
Advertising 8,375 21,686
12,236 27,961
Expenditure on charitable activities
Grant School
Campaignin		 Governance Support Total
funding of support g costs
activities
2024 2024 2024 2024 2024 2024
£ £ £ £ £ £
Direct costs
Charitable projects - 270,110 - - - 270,110
Grant funding of activities
(see note 9) 1,032,543 - - - - 1,032,543
Share of support and governance costs (see note 10)
Support - 1,323 28,185 - 565,613 595,121
Governance - - - 57,064 - 57,064
1,032,543 271,433 28,185 57,064 565,613 1,954,838
Analysis by fund
Unrestricted funds - 209,339 28,185 57,064 352,363 646,951
Restricted funds 1,032,543 62,094 - - 213,250 1,307,887
1,032,543 271,433 28,185 57,064 565,613 1,954,838

8 Expenditure on charitable activities

DIGITAL POVERTY ALLIANCE (FORMERLY LEARNING FOUNDATION) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

8
Expenditure on charitable activities
Previous year:
Grant
funding of
activities
School
support
Campaignin
g
Governance
costs
2023
2023
2023
2023
£
£
£
£
Direct costs
Charitable projects
-
504,674
-
-
Grant funding of activities
(see note 9)
1,001,784
-
-
-
Share of support and governance costs (see note 10)
Support
-
324,080
57,947
87,240
Governance
-
-
-
40,210
1,001,784
828,754
57,947
127,450
Analysis by fund
Unrestricted funds
-
665,124
57,947
127,450
Restricted funds
1,001,784
163,630
-
-
1,001,784
828,754
57,947
127,450
9
Grants payable		 8
Expenditure on charitable activities
Previous year:
Grant
funding of
activities
School
support
Campaignin
g
Governance
costs
2023
2023
2023
2023
£
£
£
£
Direct costs
Charitable projects
-
504,674
-
-
Grant funding of activities
(see note 9)
1,001,784
-
-
-
Share of support and governance costs (see note 10)
Support
-
324,080
57,947
87,240
Governance
-
-
-
40,210
1,001,784
828,754
57,947
127,450
Analysis by fund
Unrestricted funds
-
665,124
57,947
127,450
Restricted funds
1,001,784
163,630
-
-
1,001,784
828,754
57,947
127,450
9
Grants payable		 (Continued)
Support
Total
2023
2023
£
£
-
504,674
-
1,001,784
124,076
593,343
-
40,210
124,076
2,140,011
124,076
974,597
-
1,165,414
124,076
2,140,011		 (Continued)
Support
Total
2023
2023
£
£
-
504,674
-
1,001,784
124,076
593,343
-
40,210
124,076
2,140,011
124,076
974,597
-
1,165,414
124,076
2,140,011
2,140,011
974,597
1,165,414
2,140,011
Grant
funding of
activities
Grant
funding of
activities
2024
2023
£
£
Grants to institutions:
Other
1,032,543
1,001,784
Grants payable
Grant Grant
funding of funding of
activities activities
2024 2023
£ £
Grants to institutions:
Other 1,032,543 1,001,784

DIGITAL POVERTY ALLIANCE (FORMERLY LEARNING FOUNDATION) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

10 Support costs allocated to activities

Staff costs
Depreciation
Communications
Travel
Premises & general office
IT & Telecommunications
Accountancy fees
Bank charges
Irrecoverable VAT
Governance costs
Analysed between:
School support
Campaigning
Governance costs
Support
11
Net movement in funds
The net movement in funds is stated after charging/(crediting):
Fees payable for the audit of the charity's financial statements
Depreciation of owned tangible fixed assets
Loss on disposal of tangible fixed assets		 2024
£
476,192
1,945
189
10,871
43,849
48,020
19,200
855
-
51,064
652,185
1,323
28,185
57,064
565,613
652,185
2024
£
8,000
1,945
878		 2023
£
493,676
9,387
441
15,300
19,538
25,547
18,410
2,988
8,056
40,210
633,553
324,080
57,947
127,450
124,076
633,553
2023
£
6,000
9,387
-

12 Trustees

None of the trustees (or any persons connected with them) received any remuneration charity during the year. During the year travel payments incurred on behalf of the charity, of £128 (2023: £36) was reimbursed and paid directly to 1 trustee (2023: 1 trustee).

Other related party transactions involving the trustees are set out out within the related parties note.

13 Employees

The average monthly number of employees during the year was:

2024 2023
Number Number
Administration 9 10

DIGITAL POVERTY ALLIANCE (FORMERLY LEARNING FOUNDATION) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

13 Employees (Continued)
Employment costs 2024 2023
£ £
Wages and salaries 476,192 493,676

Redundancy and termination payments totalling £26,122 were made to staff in the reporting period, where £18,406 was paid in lieu of notice & £7,716 was paid in redundancy.

Charitable rental income

The number of employees whose annual remuneration was more than £60,000 is as follows:

2024 2023
Number Number
£60,001 - £70,000 - 2
£70,001 - £80,000 1 -

Remuneration of key management personnel

The total remuneration and benefits received by key management personnel (including employer pension contributions and employer national insurance contribution) during the year was £89,211 (2023: £168,887).

14 Other expenditure

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Net loss on disposal of tangible fixed assets 878 -

15 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

DIGITAL POVERTY ALLIANCE (FORMERLY LEARNING FOUNDATION) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

16
Tangible fixed assets
Fixtures and
fittings
£
Cost
At 1 April 2023
530
Additions
378
Disposals
(428)
At 31 March 2024
480
Depreciation and impairment
At 1 April 2023
240
Depreciation charged in the year
120
Eliminated in respect of disposals
(214)
At 31 March 2024
146
Carrying amount
At 31 March 2024
334
At 31 March 2023
289
17
Stocks
Donated goods
18
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income		 Computers
£
43,306
320
(1,337)
42,289
38,015
1,825
(573)
39,267
3,022
5,291
2024
£
120
2024
£
11,950
92,652
5,398
110,000		 Total
£
43,836
698
(1,765)
42,769
38,255
1,945
(787)
39,413
3,356
5,580
2023
£
9,399
2023
£
36,091
75,110
27,790
138,991

DIGITAL POVERTY ALLIANCE (FORMERLY LEARNING FOUNDATION) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

19 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2024
£
5,318
102,291
282,608
18,192
408,409		 2023
£
12,483
26,457
247,857
3,267
290,064

20 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

General funds
Previous year:
General funds		 At 1 April
2023
Incoming
resources
Resources
expended
£
£
£
144,702
1,337,554
(1,307,887)
At 1 April
2022
Incoming
resources
Resources
expended
£
£
£
407,139
1,481,918
(1,165,414)		 Transfers
At 31 March
2024
£
£
-
174,369
Transfers
At 31 March
2023
£
£
(578,941)
144,702

21 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

General funds
Previous year:
General funds		 At 1 April
2023
Incoming
resources
Resources
expended
£
£
£
391,657
268,408
(660,065)
At 1 April
2022
Incoming
resources
Resources
expended
£
£
£
478,647
336,627
(1,002,558)		 Transfers
At 31 March
2024
£
£
-
-
Transfers
At 31 March
2023
£
£
578,941
391,657

DIGITAL POVERTY ALLIANCE (FORMERLY LEARNING FOUNDATION) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

22 Analysis of net assets between funds

Unrestricted
Restricted
funds
funds
2024
2024
£
£
At 31 March 2024:
Tangible assets
3,356
-
Current assets/(liabilities)
(3,356)
174,369
-
174,369
Unrestricted
Restricted
funds
funds
2023
2023
£
£
At 31 March 2023:
Tangible assets
5,580
-
Current assets/(liabilities)
386,077
144,702
391,657
144,702		 Total
2024
£
3,356
171,013
174,369
Total
2023
£
5,580
530,779
536,359

23 Related party transactions

Transactions with related parties

During the year the charity entered into the following transactions with related parties:

a) Donation income of £100 (2023: nil) was received from a trustee.

b) The charity also paid £325 to Beverley Clarke Consulting Ltd (2022: £334) as travel expenses. One of the trustees is a sole director of the company.

DIGITAL POVERTY ALLIANCE (FORMERLY LEARNING FOUNDATION) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

24 Cash generated from operations 2024 2023
£ £
Deficit for the year (361,991) (349,427)
Adjustments for:
Investment income recognised in statement of financial activities (4,005) (1,064)
Loss on disposal of tangible fixed assets 878 -
Depreciation and impairment of tangible fixed assets 1,945 9,387
Movements in working capital:
Decrease in stocks 9,279 189,801
Decrease/(increase) in debtors 28,991 (73,370)
Increase in creditors 118,345 44,466
Cash absorbed by operations (206,558) (180,207)

25 Analysis of changes in net funds

The charity had no material debt during the year.

26 Post balance sheet event

In November 2024 HMRC identified a VAT error on donated laptops which will give rise to an amount being repaid for VAT reclaimed. This matter remains ongoing as discussions with HMRC are continuing, and the amount of VAT to be repaid has not yet been determined.