Charity Reglstration No. 1088592 Company Reglstratlon No. 04107226 (England and Wales) PURSUING INDEPENDENT PATHS ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 PURSUING INDEPENDENT PATHS LEGALAND ADMINISTRATIVE INFORMATION Trustees J Leach D Wakerley J Wilcox M 83rrie T Lang IAppointed 29 March 20221 Charlty number 1088592 Company number 04107226 Registered i)ffi 306 Kensal Road London WIO 5&E United Kingdom Auditor HW Fisher LLP Acre House 11-15 William Road London NWI 3ER United Kingdorn &anker5 Unity Trust Bank Nine BrindlÈyplacÈ Birmingham 12HB PURSUING INDEPENDENT PATHS CONTENTS Page Trustee5' report Statement of trustees. respon5ibilitie5 Independent auditor's report 8-10 Statement of financial activities 11-12 Balance sheet 13 statement of cash flows 14 Notes to the fin8ncial statements 15-27 _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **PURSUING INDEPENDENT PATHS** ## **S REPORT)** 31 March 2022.The trust for Companies Act purposes. The financial statements comply with the Companies Act 2006, the Memorandum and Articles of Association 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** PiP which will assist adults (aged over 18) living in Greater London who have learning difficulties and/or mental health problems, by the advancement of education and the protection of health. In 2021 PiP adults with a learning disability . The mission (or purpose) work together with people with a learning disability and their support networks to gain skills and opportunities for independence and to and work is continuing to align impact measurement more directly to these statements. In a normal year PiP would deliver the four community-based services detailed below, however, as in 2020-21, we were forced to modify our delivery because of lockdowns and to protect the health of our students and staff. We have continued with the online delivery programme developed at the start of the pandemic gradually moving back through hybrid delivery (online and physical) as restrictions eased and are pleased to report that by the end of the 2021-22 financial year we were largely back to physical delivery. Along the way we have learned a lot about providing online support to our students (and their families) and grant funders have enabled us to ensure that all students have the appropriate technology to be able to access online classes. We hope that this be a necessity in the future, but we think the experience will prove valuable as we assess different ways of reaching the larger student population we aspire to serve. More information is provided in the Achievements & Performance section on how PiP continued to adapt through the pandemic to provide the best possible service to students and their families but again we would like to recognise the extraordinary support PiP received last year from Westminster City Council, the Royal Borough of Kensington and Chelsea, our grant funders, corporate supporters and many others, which has enabled us navigate such a difficult period and to move to a larger and more flexible base in February 2022. Outside of lockdown and social distancing restrictions PiP delivers four community-based services aimed at enabling adults with a learning disability, autism and mental health needs to live more independent lives - **PiP W10 (since February 2022)** . This service based at PiP - at enhancing independent living skills and personal development. - Learners come from Westminster, Brent, Kensington and Chelsea and Islington. During 2021-22, 58 PiP students used this service for sessions ranging from 3.5 to 35 hours each week. - **PiP SW1** . This service is based in the south of Westminster and supports service users who are 50+ and generally isolated in their community and often living alone. SW1 offers a range of activities to build and improve social skills such as arts and crafts and community outings. In 21-22, 11 service users attended sessions on a weekly basis at PiP SW1. - **PiP Community Development Project** . This service works intensively on a one to one basis with service users who have high support needs and can only access the outside community on a limited basis. The service aims to help users achieve short-term goals, establish individual networks of community support and, where appropriate, help users graduate to W10 or equivalent group-based services. - 1 - ## **PURSUING INDEPENDENT PATHS** ## **S REPORT)** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ **PiP Travel Training** . This service is aimed at enhancing the skills and confidence of young adults with learning disabilities to travel independently and thereby increasing their opportunities for accessing work, education and leisure activities. Personal objectives for each student are agreed between the student, their family or carer, their local authority case manager and PiP. These objectives and progress against them are reviewed regularly and a formal review is conducted involving all parties at least once each year. Our students make their own personalised learning programme, choosing sessions from our four delivery pathways: Employment and Vocational Training; Creative and Performing Arts; Health and Wellbeing; and Independent Living Skills, some examples are described below: ## - **Employment and Vocational Training** - Fruitful, our social enterprise style juice pop up stall - Employability support in small groups and 1:1 job coaching, work experience, job tasters and placements - Petit Miracles, a local social enterprise that teaches upcycling furniture skills ## - **Creative and Performing Arts** - Drama - Cabaret - Art and Sensory Art - Music and Singing - Creative Writing - Making Podcasts ## **- Health and Wellbeing** - Exercise and Fitness - Gardening - Social Wellbeing - Men - Using health services, health checks ## **- Independent Living Skills** - Travel skills to enable students to travel independently - Advocacy, to support students to speak up and out regarding subjects they care about - Daily Living Skills such as healthy cooking, managing money and using equipment around the house PiP , MYGOALS, , and being further developed to align with revised vision and mission statements. This enables PiP operational team to discuss progress with students, families and carers, and social services, and to tailor individual programmes to meet their needs. Weekly student meetings and a Student Council ensure that the student voice is kept central to the way PiP operates. We have started work with students to ascertain how best to amplify this at all levels of the organisation so that the management team and the Board of trustees can respond to the changes and service improvements students wish to see. ## **ACHIEVEMENTS AND PERFORMANCE** 2021-22 was another challenging year in terms of continuing Covid 19 outbreaks and further restrictions on people meeting both inside and outside. As noted last year, the close relationships we have with local authorities and our funders have enabled our students to continue to learn and develop as well as stay in touch with peers and maintain friendships. We now have a proven structure for both online and community-based service and were able to swiftly revert to one or other or a blend of both types of delivery. Highlights of the summer and our newfound freedom to be able to meet up again in person were two events PiP-adilly and Fruitful Wednesdays The PiP-adilly popup shop , a joint venture with Westminster City Council and Crown Estates, saw PiP students from our Performing and Creative Arts pathway take over a shop at Prin Arcade, Piccadilly for a 4-week residency. Students created and sold their own work. We welcomed over 100 visitors to the shop and hosted workshops with school students from Paddington Academy. - 2 - ## **PURSUING INDEPENDENT PATHS** ## **S REPORT)** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ Paddington Central, part of British Land, commissioned Fruitful Wednesdays allowing our social enterprise juice stall, to pop up every Wednesday over the summer giving local businesses, employees and residents a well-deserved treat plus the chance to meet PiP students. It was an excellent opportunity for us in terms of relationship building, awareness raising and student skills development. Students were paid London Living Wage for working on the stall and were able to put their training in hospitality into practice, an opportunity they welcomed wholeheartedly. Keeping our students and staff well was central to the work we did when restarting classroom delivery. The use of bubbles students and staff in one group, temperature checks, face masks, twice weekly Lateral Flow Testing and distancing where possible became part of our normal routines, as well as supporting the local health team s vaccination programme. Including a mechanical fresh air circulation system in our new centre became an essential component of keeping people safe now and in the future. Finally, the much-planned move to our new home took place at the end of February. It was several years in the making and involved searching for suitable premises, raising the money to adapt them and then carry out the necessary work. The new centre is a ground floor unit which allows us to welcome more students with a wider range of needs and to offer a broader curriculum of support. We have more classroom space, a dedicated Performing and Creative Arts space and a Fruitful kitchen. Our digital room alongside the audio-visual technology we have installed allows student access to excellent resources and our staff to develop materials to enhance the learning experience. The centre now provides us with the platform to grow our student numbers and to offer a wider range of learning opportunities as part of the next stage of our development. We have held several welcome events and are getting considerable interest from prospective students, their families, and social workers. We look forward to all the opportunities that we will be able to offer for the future. ## **FUNDRAISING** Funders have been extremely flexible and supportive over the last two years, and we thank them for their ongoing support and understanding. We were able meet our targets for all income streams, including Trusts and Foundations, Corporates and Community. The success we had with our capital project allowed us to refurbish the new centre and gives us the opportunity to expand our service offer and reach out to new students who will benefit from fully accessible and modern facilities. Fundraising during 21-22 focused on: - Maintaining relationships with existing funders and corporate partners - Raising the remaining funds needed for the new centre (Beanstalk campaign) - Accessing funding towards several key projects aiming to rebuild skills, confidence and wellbeing such as exercise and sports, employability and using public transport safely Thanks to previous good working relationships and communication with donors and partners, PiP was able to access emergency funding during this time as well as renew corporate sponsorship of Fruitful and access multiyear funding towards new strategic initiatives such as employment and training. ## **FINANCIAL REVIEW** Overall, the total income increased by 23% to £1,456,326 (2020-21: £1,182,138) with the main increase being funding for the Beanstalk project of £250,123 to facilitate the move to the new premises in North Kensington. We are pleased to report that we have continued to achieve significant income from charitable activities of £872,966 which was an increase of 3% from last year (2020-21: £844,983). This is primarily student income from local authorities who have continued to support PiP through lockdown and beyond at the same level as pre-pandemic, enabling us to run a blended programme of digital and classroom learning, welfare support and wellbeing sessions throughout the year. With the reopening after lockdown, we have seen additional student hours hence the slightly higher student income in this year. Voluntary income, generated by donations and fundraising, also increased by 89% to £582,562 (2020-21: £308,306) and includes grants to support online and remote delivery throughout the pandemic as well as after the lockdown period. Total expenditure has increased by 12% to £1,214,339 (2020-21: £1,083,465) due to the revenue expenses related to the new centre in addition to the resumption of in-person provision at the centre for normal PiP student activities post lockdown. - 3 - _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **PURSUING INDEPENDENT PATHS** ## **S REPORT)** The surplus for the year of £241,987 is higher than the 2020-21 figure of £98,673. This is almost entirely due to capital expenses relating to the move to new premises that have been capitalised to be depreciated over the period of the lease despite all the income having been recognised in this financial year. This has led to the creation of a designated fixed assets reserve of £461,435 representing the net book value of . As at 31 March 2022, PiP held general unrestricted reserves of £407,828 (2020-21: £427,899) and unrestricted designated reserves (as mentioned above) of £461,435 (2020-21: £nil). At that date PiP held £111,864 (2020-21: £311,241) in restricted reserves. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **Governing document** Pursuing Independent Paths (PiP) is a charitable company limited by guarantee governed by its Memorandum and Articles of Association dated 9 November 2000 as amended on 20 September 2015. It is registered as a charity with the Charity Commission. PiP was established in 1984 as a charitable trust (originally called the Paddington Integration Project). It changed its name on incorporation to indicate its activities were no longer solely based in Paddington. ## **Directors and trustees** The directors of the charitable company (charity) are its trustees for the purpose of charity law. The trustees and officers serving during the year and since the year end were as follows: ## Trustees Mark Barrie Tilly Lang - Appointed March 2022 John Leach (Chair) Daniel Wakerley Judith Wilcox Tim Mathews - Resigned December 2021 David Fletcher - Resigned March 2022 Francesca Carbonaro - Resigned March 2022 Chief Executive Denise Largin None of the trustees have any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up. ## **Appointment of trustees** Unless otherwise determined by a General Meeting the number of trustees shall be no less than three and a maximum of fifteen. In accordance with the Articles of Association, trustees are appointed at a General Meeting for a term of three years with the possibility of being renewed for a further three years. The three resignations in 21-22 were due to trustees reaching the end of their second terms and we are in the process of recruiting new trustees To date, PiP has recruited trustees by targeting people with the professional skills that it considers will add value and strength to the organisation. In order to make sure that the student voice is better heard and reflected in PiP ed in March 2022 the set-up of an advisory board comprising students and families. ## **Trustee induction and training** New trustees undergo induction to brief them on their legal obligations under charity and company law and the Charity Commission guidance on public benefit and inform them of the content of the Memorandum and Articles of Association, decision making processes, the strategic plan and PiP recent financial performance. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role. ## **Organisation** The Board normally meets four to five times a year and trustees are responsible for setting and monitoring the strategic direction, managing and supporting the Chief Executive and ensuring that the charity meets its charitable objectives by using the best possible - 4 - ## **PURSUING INDEPENDENT PATHS** ## **S REPORT)** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ practice and financial prudence. To facilitate effective operations, the Chief Executive has delegated authority, within terms of delegation approved by the trustees, for operational matters. ## **Remuneration policy for senior staff** The trustees consider that the Board of trustees, the Chief Executive, the Fundraising and Communications Manager and the Service Manager comprise the key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day-to-day basis. All trustees give of their time freely and no trustee received remuneration in the year. The base salaries of the Chief Executive and Senior Management Team are reviewed every three years (or sooner in exceptional circumstances) with the review taking into account benchmark data. Discretionary bonuses may be paid at the discretion of the Board, where there is clear evidence that they individually and PiP collectively have exceeded key targets and where PiP has the cash resources to do this. ## **Public benefit** The trustees have given due consideration to the Charity the Charities Act 2011. The trustees have considered the objectives and activities, together with the achievements and performance, reported separately and have concluded that: The aims of the organisation continue to be charitable; and - The aims and the work done to give identifiable benefits to the charitable sector and both directly and indirectly to individuals in need; and - The benefits are for the public and not unreasonably restricted in any way and certainly not by ability to pay; and There is no detriment or harm arising from the aims or activities. ## **KEY RISKS AND UNCERTAINTIES** A formal Risk Register with risk ratings was created in 2020-21. It goes without saying that COVID-19 was a key unforeseen risk for all organisations . Pandemics or COVID-19 resurgence is included within the Register, and we have worked hard to keep our community safe through regularly reviewing our risk assessments and continuing to mitigate risk through safety measures such as student and staff bubbles, Covid testing, temperature checks and wearing of masks. Staff and Student Guidelines are regularly updated alongside frequent discussions and communications around best practice. Commissioners and Grant Funders have been extremely supportive during the pandemic but income generation is key to PiP sustainability and remains a concern in the current climate both from local authorities and voluntary income. As we graduate to new expanded premises, it remains key that our service expands at a sensible and safe rate to respond to local demand and continues delivering a quality service as we grow. ## **PLANS FOR FUTURE PERIODS** o provide services and be able to meet the increasing demand for support, we eventually moved into the new centre (see Achievements and Performance section for more detail). This provides us with a bigger platform from which to offer a wider variety of services in house and in the community to a larger number of students with more diverse support needs. In order to take full advantage of this new base we have been working internally over the past few months to develop our thinking on recruitment, service delivery, impact measurement, organisational structure and, critically, partnership with statutory, charitable and private sector organisation. We have recently engaged external consultants specialising in organisational development to provide a check and challenge to that work and to help us develop a detailed action plan for the next 24 months and to build medium term financial projections. ## **RESERVES POLICY AND GOING CONCERN** The trustees review PiP charitable objectives with the objective of maximising the funding available for those activities. - 5 - ## **PURSUING INDEPENDENT PATHS** ## **S REPORT)** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ The trustees have agreed the policy that general reserves should comprise two elements: 2022 is £218,242 (2020-21: £211,246) An income shortfall reserve of 15% of total standard service income. The requirement for 31 March 2022 is £218,449 (2020-21: £177,321) The general reserves requirement for the current year is therefore £436,691 in total (2020-21: £388,567). General unrestricted reserves levels (excluding designated funds) are £407,828 (2020-21: £427,899). This indicates a slight shortfall from our reserves policy of £28,862 (2020-21 exceeded by £39,332) which we will look to rebuild the in the coming financial years. ## **STATEMENT AS TO DISCLOSURE TO THE AUDITOR** Each trustee has confirmed that in so far as they there is no relevant information, being information needed by the auditor in connection with preparing their report, of which the auditor is unaware, and each trustee, having made enquiries of fellow trustees and the auditor, has taken all steps that he/she is obliged to take as a trustee in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. By order of the board of trustees John Leach (Chair) Date: - 6 - PURSUING INDEPENDENT PATHS STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2022 The trustees, who 4re a150 the directors of Pursuing Independent Paths for the purpose of comp4ny law, are re5POn5ible for preparing the Tru5tees' Report and the fin3ncial statements in accordance with applic3ble law 3nd United Kingdom Accounting Standards (United Kin8dom Generally Accepted Accounting Practice). Company L3w require5 the trustees to prepare financial ststernents for each financial year which give a true and fairview of the state of affair5 of the charity ènd of the incoming resources and application of re50urce5, including the incorne and expenditure, of the haritable companyfor that year. In preparing these financial 5tstementS, the trustee5 are require(I to. select 5uitsble accounting policies and then applythern con515tentlyi observe the method5 and principle5 In the Charitie5 SORP,. make judgernents and estimates that are reasonable 3nd prudent. and prep3re the financial 5t3tetnents on the going concern basis unle55 It Is inappropriate to pre5urne that the charity will continue in operation. The trustees are responsible for keeping 3dequate accounting records that disclose with reosonoble accuracy at any tirne the financial p051tion of the charity and enable thern to ensure that the finènci31 statement5 cornply with the Cornpènie5 Act 2006. They are also responsible for 5èfeguèrding the assets of the chèrity and hence fortaking reasonable steps for the prevention and detertion of fraud and other irregularities. PURSUING INDEPENDENT PATHS INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PURSUING INDEPENDENT PATHS Opinion WÈ h8ve auditÈd the financial statements of Pursuing Independent Paths IthÈ 'charity'l for the ye8r ended 31 M8rch 2022 which comprise the st8tement of financi318rtivities, the balance sheet, the statement of c8sh flows and the notes to the financial statÈments, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting stsndards, including Financial Reporting Standard 102 The Finonciol Reporting Stortdord Gppllcoblt the UKond Republlc of Irelond (United Kingdom Generally Accepted Accountlng Pratticel. In our opinion, the finèncial 5taternent5'. give 8 true and fair view of the state of the charitable company's affairs ès at 31 March 2022 8nd of its incoming resources and applicètion 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 Att 2006. 8asisfor opinion We conducted our 8udit in accordance with International Standards on Auditing IUKI IISAS IUKII ènd applicèble law. Our responsibilities under those standards are further described In the Auditors responsibilitieslor the Gudit of thefinonciol stotements section of our report. We are independent of the charity In accordance with the ethical requirements that are relevant to our audit of the flnanclal statements In the UK, Including the FRC'S Ethlcal Standard, and we h8ve fulfilled our other ethlc81 responsibllitles 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. Con¢lusions relatingto going ¢on¢ern In 8uditing the financial ststements, we h8ve concluded th8t the trustees, use of the going concern basis of accounting in the preparation of the fin8ncial statements is appropriate. Based on the work we have performed, we have not identif1ed any material uncert8intie5 relating to events or conditions that, individu811y or collectively, may c8St Signifi￿nt doubt on the charity's ability to continue as a eoing concern for a period of 8t least twelve months from when the financial ststements are 8Uthorised 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 informatlon The other information cornprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustee5 are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or OLJr 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 thi5 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 thi5 Other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed bythe Companies Act 2￿J6 In our opinion, b3sed on the work undertaken in the course of our Hudit.. the information given in rhe trustees. report. which includes the directors, report prepared for the purposes of comp8ny law, for the financial year for which the financial st8tementS 8re prepared is consistent with the financi31 statements,- and the directors, report included within the trustees, report ha5 been prepared in accord4nce with applicable legal requirements. Matters on which we are required to report by exception In the light of thÈ knowlèdge and understanding of thÈ tharity Ènd its environment obtainèd in the Course of the audit, wè havè not identified rnateri41 mi5Statements in the director5. report included within the trustee5' report. PURSUING INDEPENDENT PATHS INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF PURSUING INDEPENDENT PATHS We have nothing to report in respect of the following mitters in relation to which the Cornp4nies Act 2006 requires us to report to you if, in our opinion.. adequatÈ atcounting records have not been kept, or returns adequate for our audit have not been reteived from branches not visited by us,. or the financial statements are not in agreement with the accounting records and returns,. or certain disclosures of trustee5' retnuneratlon specified by law are not mode,. or we have not received all the information and exp13nations we require for our audit,- or the trustee5 were not entitled to prepare the financial statement5 in accordance with the small companies regime and take advantage of the small companies, eKemptions in preparing the trustees. report and from the requirement to prepare a strategic report. Responsibilities of trustees As explained morè fully in thè statèmènt of trusteès, rÈsponsibilitiès, thè trustèÈs, who are also thè directors of thè charity for the purpose of company law, are re5pon5ible for the prep4ration of the financi315tatements and for being 5atlsfied that they give 4 true and fÈir view, and for 5u¢h internal iontrol a5 the tru5tee5 determine is necessary to enable the preparation of finaniial statements that are free from material mi5Statement, whether due to fraud or error. In preparing the financial statement5, the trustee5 are rÈsponsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going tontèrn and using thè going tontern basis of aÈtountinÈ unless thè trustÈes Éither intend to liquidatè the tharitsblè tompany or to cease opèrations, or h8vÈ no rÈalistit altèrnative but to do so. Audilor's respon5ibilitie5 forthe )udil of the finan¢i¥l statements Our objectives are to obtain reasonable assurance about whether the financi31 statements as a whole are free from material misstatement, whether due to fraud or error. and to issue 8n auditor's report that includes our opinion. Reason8ble assurance is a high level of assurance but is not a guarantee th8t an audit condurted in accordance with ISAS IUKI will 8Iw8ys detect 8 material misstatement when it exists. Misstatements c8n 8rise from fraud or error 8nd ère considered material If, individu811y or In the aggregate, rhey could reasonably be expected to influence the economic decisions of users taken on the b8sis of these financial statements. Irregularities, including fraud. are Instances of non-compliance with laws 8nd regulations. We design procedures in line wirh our responsibllities, outlined above, to detect m8teri81 misstatements in respert of Irregularlties, includlng fraud. The extent to which our procedures are capable of detecting irregularities, Includlng fraud, is detailed below. As part of our planning process-. We enquired of management the systems and controls the charity has in plate, the 3rÈas of the fin3ntial statÈments that are most susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or 811eged fraud. The charity did not inform us of any known, suspected or alleged fraud. We obtained an understanding of the legal and regulatory frameworks applicable to the charity. We determined that the following were most relevant.. the Charity SORP, FRS 102, Charities Act 2011. CompaniÈs Act 2006. We considered the incentives and opportunlties that exist In the charlty, Including the extent of management blas, whlch present a potential for irregularities and fraud to bÈ perpetuated, and tailored our risk assessment accordingly. Uslng our knov41edge of the charlty, together with the discussions held with the ch3rity at the planning stage, we formed a concluslon on the risk of misstatement due to irregularitles including fraud and tallored our procedures according to thls risk assessment. PURSUING INDEPENDENT PATHS INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF PURSUING INDEPENDENT PATHS The key procedures we undertook to detect irregularities including fraud during the course of the audit included.. Identifying and testing journal entries the overall accounting records, in particular those that were significant and unusual. Reviewing the financial statement disc105ures and determining whether accounting policies have been appropriately applied. Reviewing 3nd challenging the assumptions 3nd judgement5 used by management, and the conclusion that there are no significant accounting e5timate5. Assessing the extent of cotnpliance, or lack ol, with the relev3nt law5 and regulations. Testing key incorne lines, in particular cut-off, for evidence of management bias. Assessing the v31idity of the c1355ific3tion ol incorne. expenditure, assets 3nd li3bilities between unrestricted, design4ted and restricted funds. Performing a physical verification of key assets. Obtsining third-party coDlirrnation of material bank balances. Documenting and verifying all significant re13ted p3rty balances and tr?nsactlOn5. Reviewing documentètion such 35 the charity board minute5 and correspondence with 501icitor5, for discussions of Owing to the inherent limitations ol audit, there is an unavoidable risk that we rn4y not have detected some m3terial misstatements in the financi41 statements even though we have properly pl4nned and perforrned our audit in accord4nce with auditing standard5. The primary responsibility for the prevention and detection of irregularitie5 and fr3ud rests with the trustees of the charity. A further description of our responsibilities is available on the Financial Reporting Council's website at.. https.'Ilwww.frc.org.uV auditorsresponsibilities. Thi5 description forms part of our auditor's report. Use of our report Thi5 report Is rnade solely to the ch3ritable company'5 members, 35 a bodyi in accordance with Chapter 3 of Part 16 of the Cornpanie5 Act 2006. Our audit work has been undertaken 50 that we might State to the charitable cornpany's rnember5 those tnatters we 4re qUI￿d to state to them in an auditor'5 report and for no other purpose. To the fullest extent permitted bylaw, we do not accept or a55ume responsibility to anyone other than the charitable company and the charitsble company's members as a body, for our audit work, for thi5 report, orfor the opinions we have formed. Andrew Rich Isenior Statutory Auditorl for and on behaw ol HW Fisher LLP Chartered Accountants Statutory Auditor Acre House 11-15 William Road London NWI 3ER United Kingdotn 06 Oct 2022 10- PURSUING INDEPENDENT PATHS STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2022 Current financlal year Unrestrirted Unrestrirted funds lunds general designated 2022 2022 Re5trirted funds Total Total 2022 2022 2021 Notes Income and endowment5 from: Donations and legaties Income from charitable activities Inve5ttnents Other Income 112,402 872,966 798 470,160 582,562 872,966 798 308,306 844,983 1,761 27,088 Total income 986,166 470,160 1,456,326 1,182,138 enditure on: Raising funds 81,180 81,180 88,334 449,472 669.537 1,119,0( 995.131 Other expenditure 12 14,150 14,150 Total resourre5 expended 544,802 669,537 1,214,339 1.083,465 Net incomin¥lloutgoinEI resources before transfers 441,364 1199,3771 241,987 98,673 Gross transfers between funds 17 1461,4351 461,435 Net lexpendlturelllncome forthe yearl Net movement in funds 120,0711 461,435 1199,3771 241,987 98,673 Fund balances at l April 2021 427,899 311,241 739,140 640,467 Fund balances at 31 March 2022 407,828 461.435 111,864 981,127 739,140 The statement of financial activities includes 311 g8ins and losses recognised in the year. All income and Èxpenditure dÈrive from tontinuing 3rtivitiÈs. The staternent of financi31 activitie5 3150 cornplies With the requirernents for 3n incorne and expenditure account under the Companie5 Act 2006. PURSUING INDEPENDENT PATHS STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2022 Prlorflnanclal year Vnre5trirted funds 2021 Re51ricted funds 2021 Totsl 2021 Ntstes Income and endowments from: DonatlOn5 and le83cies IncomÈ from charitable activities 117,582 844,983 1,761 27,088 190,724 308,306 844,983 1,761 27,088 Investments Other income Total income 991,414 190,724 1,182,138 Ex endlture on: Raising lund5 88,334 88,334 794,613 200,518 995,131 Total resource5 expended 882,947 200,518 1,083,465 Net incominglloutgoingl resources beforetransfers 108,467 19,7941 98,673 Gross transfers between funds 500 15001 Net lexpenditurellirtcome forthe year/ Net movement in funds 108.967 110,2941 98,673 Fund balances at l April 2020 318,932 321,535 640,467 Fund balances at 31 Marth 2021 427,899 311,241 739,140 The statement of financièl activities includes all g8ins and losses recognised in the year. All incorne and expenditure derive from continuing activities. The staternent of f1nancial activities also cornplies with the requirernent5 for an income and expenditure account under the Companies Act 2006. 12- PURSUING INDEPENDENT PATHS BALANCE SHEET AS AT31 MARCH 2022 2022 2021 Notes Fixed assets Tangible assets Current assets Debtors Cash at bank and in hand 461,435 30.552 14 113,589 842,535 121,653 858,047 956,124 1436,4321 979,700 1271,1121 Creditors: amountsfalling due within one year 15 Net current assets 519,692 708.588 Total assets less current Ilabllltles 981,L27 739,140 Income funds Restricted funds un￿$tri￿ed funds- designated Unrestricted funds- general 16 17 111,864 461,435 407,828 311,241 427.899 981,127 739,140 The fin8ncial statements were approved by the Trustees on 06 Oct 2022 J Leach Trustee Company RegI￿ration No. 04107226 Charity Registration No. 1088592 13- PURSUING INDEPENDENT PATHS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022 2022 2021 Notes Cash flow5 frorn operatinK artivities Cash gener8ted from oper8tions 21 446,375 260,821 Investing attivities Purchase of tsngible fixed assets Inve5ttnent incorne received 1462,6851 798 116,7601 1,761 Net cash used in investing activities 1461,8871 114,9991 Net cash used In flnancing adlvities Net Idecreaselllncrease In cash and cash equlvalents 115,5121 245,822 Cash and cash eouivalents at beginning of year 858.047 612,225 Cash and cash equivalents at end of year 842,535 858,047 14- PURSUING INDEPENDENT PATHS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Accounting policies Charity information Pursuing Independent Path5 15 3 private comp4ny limited by guarantee incorporèted in England 3nd Wales. The registered office 15 306 Ken5al Road, London, WIO 5BE, United Kingdom. 1.1 Accounting convention The finantial ststemÈnts h8ve been prÈpared in actordancè with thÈ tharity's Memorandum and Articlès of Assotiation, the Companies Art 2006 and"Atcounting and Reporting by Charities." Statement of RetommendÉd Practice 3pplit8ble to charities preparing their accounts in accordance with the Financial RepDrting Standard applitable in the UK and Republi¢ of I￿land IFRS 1021 leffettive l January 20191" The tharity is a Publit Benefit Entity as defined by FRS 102. The fin3ncial ststetnents are prepared in sterlingi which is the functional currency of the charity. Monetary 3rnount5 in these financi31 statement5 are rounded to the nearest £. The financial statement5 have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. l.Z Golng concern At the time of 3pproving the fin3nci31 statement5, the trustees have 3 re350nable expectation that the charity ha5 3dequate resources to continue in oper3tional existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financi31 statements. 1.3 Charitable funds Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Restrirted fund5 are subject to specific condition5 by donor5 85 to how they tnay be used. The purpose5 3nd use5 of the restricted fund5 are set out in the notes to the financial statements. Designated funds are subject to speciflc conditions for use, as set by the trustees. 1.4 Incoming resour￿5 Income is recogni5ed when the charity is legally entitled to it after any performance conditlOn5 h3ve been met, the 3mountS con be me45ured reliablyll Bnd it 15 probable that income will be received. sh donations 8re recognised Dn receipt. Other donations are recognised once the charity has been notified of the donation, unless perform8nte conditions require deferral of the amount. Income tax recoverable In relation to don8tions received under Gift Aid Is recognised at the time of the donation. 15- PURSUING INDEPENDENT PATHS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 Accounting polities Icontinuedl 1.5 Resources expended Liabilities are recognised as expenditure once there is a legal or constructive obligation committing the charity to that expenditure, it Is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis. Direct charitable eKpenditure comprises all the expenditure relating to the activities carried out to achieve the charitable objective. Support costs represent costs that cannot be directly attributed to zctivities. Governance costs include the costs of statutory audit and other costs related to the governance of the charity. Support and governance costs have been allocated to the 51ngle charitable activity 'Supporting Adults with Learning 1.6 TanBible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreci3rion and anv Imp8irment losses. Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following Le35ehold improvetnent5 Furniture and equipment Striight line over 5 year5 Str8ight line over 3 years Expenditure forfurniture and eguiprnent which exceeds £500 is capitalised. The gain or1055 arising On the disposal of an asset is determined as the difference between the sale protreds and the carrying value of the asset, and 15 recognised in net income/lexpenditurel for the year. 1.7 Financial instruments The charity h8s elected to 8pply the provisions of Section 11 'Basic Fin8ncial Instruments, 8nd Section 12 '0ther Fin8ncial Instruments Issues, of FRS 102 to all of its financi81 instruments. instruments are initially recognised at transaction value and subsequently measured at their settlement value. 1.8 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. 1.9 Retlrement beneflts Payments to defined contribution retirement benefit scheme5 are charged as an expense as theyfall due. 1.10 Govemmentgrants Government grants are accounted for under the perform3nce tnodel and are recogni5ed at the fair v31ue of the amount received or receivable when there 15 reasonable assurance that the grant conditions will be met and the grant5 will be received. Government gr3nts are being received under the Coronaviru5 Job Retention Scheme designed to compensate for staff c05t5. Amounts received or receivable are recogni*d in the 5tstetnent of financi31 activitie5 over the same period 35 the Costs to which they relate. 16- PURSUING INDEPENDENT PATHS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 Critical accounting estimates and judgements Trustees do not believe there to be any critical estimates oriudgements in the financial statement5. Donatlons and legacles Unrestritted funds general 2022 Restritted funds Total UnrÈstritted funds gener31 2021 Restrirted funds Total 2022 2022 2021 2021 Donations and gifts 112,402 470,160 582,562 117,582 190,724 308,306 Incomefrom charitable activitles Supporting Adults with learning difficullies 2022 Supporting Adults with learning drfficultie5 2021 Special project5 Local 8Uthority personal budgets 29,893 843,073 301 844,682 872.966 844,983 Investments Unrestricted funds general Unrestricted fund5 general 2022 2021 Interest receivable 798 1,761 17- PURSUING INDEPENDENT PATHS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 Other incorne Unrestricted funds general Unrestricted fund5 general 2022 2021 Other incotne 27,088 Other incotne relates to amounts re¢eived underthe Coronavirus Job Retention Scheme a5 a governtnent grant. Raising funds Unrestrltted funds 8enÈral 2022 Unrestritted fund5 Eeneral 2021 Costs of volunt3 Other fundraising costs Staff costs ener3tin income 22,439 58,741 27,353 60,981 Costs of generating voluntsry income 81,180 88,334 18- PURSUING INDEPENDENT PATHS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 Charitable artivities All charitable actNities relate to supporting adults with learning difficulties. Ongolng Buslness servlces development Total 2022 Ongolng Buslness servlces development Totsl 2021 2022 2022 2021 2021 Staff costs Depreciation and impairment 469,923 14,768 218,063 6,594 33.163 81,287 961 551,210 15,729 229,515 7.510 33,163 20,600 9,821 55,973 14,228 9,698 21,347 7,704 7,331 1,853 2,725 4,095 487,845 4,333 72,361 6,965 8,009 67,757 197 555,602 4,530 75,650 7,932 8,009 11,452 916 3,289 967 Re¢ruittnent & Training Activities & Events Business Development stsffing Travel Repairs & renewals Cle4ning Mobile & Telephone Computer Expenses Office Equipment Insurance 20,600 412 9,409 9,047 13,609 9,276 16,932 6,223 6.513 1,773 2,607 3,918 1,885 129,061 7,517 7,577 32,326 9,327 6,733 2,879 2,588 2,063 86 1,971 131,643 7,859 7,921 33,795 9,751 7,039 3,010 2,706 2,157 46,926 619 422 2,582 342 344 4,415 1,481 818 1,469 424 306 BOo￿. stationary & postage Equipment Le8se Sundry Expenses 80 118 131 118 177 94 821,818 170,684 992,502 781,469 78,106 859,575 Share of support costs Isee note 91 Share of governance cost515ee note 91 100,223 100,223 109,200 109,200 26,284 26,284 26,356 26,356 948,325 170,684 1,119,009 917,025 78,106 995,131 Analysis by fund Unrestricted funds general Restricted funds 360,075 588,250 89,397 81,287 449,472 669,537 716,507 200,518 78,106 794,613 200,518 948,325 170,684 1,119,009 917,025 78,106 995,131 19- PURSUING INDEPENDENT PATHS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 Support W515 Support costs Governan 2022 Support costs Governance 2021 tosts costs Staff costs Depreciation Rent, utilitiÈs & ratss Recruitment & training Tr3vel Repairs & renew31s Centre expenses Insurance Legal and professional Other 45.688 1,923 19,824 641 825 822 13,053 58,741 1,923 19,824 824 825 822 47,429 394 6,578 677 13,551 60.980 394 6,578 870 183 193 5,164 6,809 612 41,179 358 5,164 6,809 612 41,179 358 1,237 843 12,501 15,919 1.237 843 12.501 15,919 Audit and Accountancy 13,048 13,048 12,612 12,612 100,223 26,284 126.507 109,200 26,356 135,556 Analysed between 100,223 26,284 126.507 109,200 26,356 135,556 Governance cost5 include payments to the auditor5 of £13,048 12021.. £12,612) for audit fees. Legal and professional fees includes £2,57412021.. £2,395) in relation to other services provided by the auditors. io Trustees None of the trustees lor any person5 connected with them) received any remuneration or benefits frotn the charity in the urrent or prior year. No trustee5 were reirnbur5ed any expen5e5 during the current or prior year. -20- PURSUING INDEPENDENT PATHS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 li Employees Number of employees The average tnonthly number of etnployees during the year was.. 20ZZ 2021 Number Number Supporting people with learning difficulties 26 22 Employment cost5 2022 2021 Wage5 and $313rie5 Social security Costs Other pension costs 612,620 39,905 16,167 609,046 53,089 15,428 668,692 677,563 Remuneration paid to key management personnel in the year totalled £223,42712021.. £237,397). The number of employees whose annual emoluments £60,000 or more were.. 2022 2021 Number Number £70,000- £79,999 12 Other expenditure Unrestrirted funds Total 2022 general 2021 Loss on disposal of tangible fixed assets 14,150 21 PURSUING INDEPENDENT PATHS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 13 Trngible fixed assets Leasehold FuThiture 8nd Impr0￿MEnts e4uipmEnt Totsi Cost At l April 2021 Addition5 Disposals 71,301 66,606 154,5401 71,301 462,685 154,5401 396,079 At 31 March 2022 396,079 83,367 479,446 Depreciation and impairment At l April 2021 Depreciation charged in the year Elirninated in respect of disposals 40,749 9.886 140,3901 40,749 17,652 140,3901 7.766 At 31 March 2022 7.766 10,245 18,011 tarrying amount At 31 March 2022 388,313 73,122 461,435 At 31 March 2021 30,552 30,552 14 Debtors 2022 2021 Amount5 falling due within one year: Other debtors Prepayments and accrued incorne 90,370 23,219 91,324 30,329 113,589 121,653 Is Credi(ors: amounts falling due wf(hin one year 2022 2021 Other credltors Accruals and deferred income 27,021 409,411 9,994 261,118 436,432 271,112 -22- o o o p O Ln <0 ooootho¢oo 000m ￿rnL￿O 000￿ c o r4 Ln 0*0 Ln O Ln ￿ ¢Ji o) 841tipg I Ul * ty O IO tn O O O NO￿￿0000 00 00 4 Ln re f4 r4 0 0 00 00 rqthOCO￿￿0c oooorco Cn o Ln PURSUING INDEPENDENT PATHS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 17 Designated fund5 The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.. Movement In funds Incomln8 resour¢es Balance at l Aprll IOZI Transfers Balance at 31 March ZOZZ Fixed asset fund 461,435 461,435 461,435 461,435 The charity tnade the decision in the year to create a designated fund which represents the net book value of fixed a55et5 at the year end. -25- PURSUING INDEPENDENT PATHS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 19 Operating lease commitments At the reporting end date the charity h8d outstanding commitmÈnts for future minimum le8sÈ paymÈnts undÈr non- cancellable operating leases, which fall due as follows-. 2022 2021 Within one ye8r Between two and five years 165,006 478,674 79,680 236,546 643,680 316,226 20 Related partytransactions There were no related party trans8rtions during the year12021.' none). 21 Cash generated from operations 2022 2021 Surplus for the year 241,987 98,673 Adjustments for.. Investment income recognised in ststement of financial 8Ctivities Loss on disposal of tangible fixed 355ets Depreclation and Impairment of tanglble fixed assets 17981 14,150 17,652 11,7611 4,924 Movement5 in working capital.. Decreasellincre3sel in debtors Increase in creditors 8,064 165,320 154,2151 213,200 Cash generated from operations 446,375 260,821 22 Analysls ol changes In net funds The charity had no debt during the year. -27-