**REGISTERED COMPANY NUMBER: 04270652 (England and Wales) REGISTERED CHARITY NUMBER: 1090451**
Trustees' Report and
Financial Statements
for the Year Ended 31 August 2020
for
Ideas Foundation
Ideas Foundation
Contents of the Financial Statements for the Year Ended 31 August 2020
||Page|
|---|---|
|Trustees' Report|1 to 7|
|Report of the Independent Auditors|8 to 9|
|Statement of Financial Activities|10|
|Balance Sheet|11|
|Cash Flow Statement|12|
|Notes to the Cash Flow Statement|13|
|Notes to the Financial Statements|14 to 23|
|Detailed Statement of Financial Activities|24 to 25|
## Ideas Foundation
## Trustees' Report
## for the Year Ended 31 August 2020
The trustees are pleased to present their annual directors' report together with the financial statements of the charity for the year ended 31st August 2020, which are also prepared to meet the requirements for a directors' report and Companies Act purposes.
The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statements 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 2015).
## **OUR PURPOSE AND ACTIVITIES**
Our main activities concerning this purpose are:
To provide young people aged between 11-25 (focusing on young people facing disadvantage) with high-quality, inspiring creative experiences to develop their creative communication, marketing, digital design thinking, and enterprise skills.
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## Ideas Foundation
## Trustees' Report
## for the Year Ended 31 August 2020
Our education activities focus on live briefs from advertising companies and brands. Professional mentors from the creative industry help students to create a response to a brief and pitch their ideas. Workshops take place in school and also out of school curriculum through summer schools. We also develop bespoke education programmes for brands such as Burberry. We are increasingly developing programmes that show creativity can span different sectors - not just the creative industries.
Students, our Future Creatives, interested in a creative career are offered mentoring and workplace visits and a ladder of career development support.
Ideas Foundation has also sought to:
- Increase recognition of the value of learning through creativity and innovation within the Curriculum.
- Demonstrate the potential of creative and vocational learning projects to accelerate learning and engage pupils and teachers.
- Engage creative agencies, employers, and brands in education and promote diversity and social mobility in the sector.
- Provide models of creative education in partnership with brands.
## **During 2019-2020:**
- Ideas Foundation delivered high quality face-to-face learning activities and remodelled its work in the light of Covid to include more online digital delivery approaches.
- Strengthened its governance through the appointment of Ted Smith as Acting Chair and creating an advisory board.
- Remodelled its staffing structure to reflect the unpredictable nature of funding and delivery due to Covid creating a more agile and flexible staffing structure. Sadly, this involved making redundancies and reducing permanent staffing levels.
- Changed our partnership working with Comino Foundation and strengthened relationships with The Manchester College. We have continued to develop the work with the Robert F Kennedy Foundation on their Ripples of Hope initiative.
- Provided workshops in North Yorkshire as part of the Careers and Enterprise Company additional programmes.
- Updated our policies, including safeguarding, working from home, and finance.
- Adjusted our evaluation programmes to reflect digital delivery of experiences.
- Initiated creative programmes with Richard Garriott and the New York based Explorers Club themed around his adventure to the Mariana Trench.
- Delivered virtual work experience programmes with Canon and creating online toolkits linked with the UN Sustainable Development Goals in association with the University of Arts London.
- Maintained relationships with major funders such as Nike, BBC, Burberry Canon, and Careers and Enterprise Company, The Manchester - updating them on how to adapt programmes to virtual delivery. Many of our funders experienced restructuring, and we spent time building relationships with newly appointed staff.
- Used the digital experiences to provide national and international opportunities for student inspiration.
- Managed year 2 of the flagship Burberry Inspire programme in Yorkshire - and supported over 6000 young people with physical creativity kits. This year we have developed an international partnership with Burberry Inspire New York.
- Received awards for its work on inclusion and diversity, the Majors Award, and the IPA inclusion list and contributed to conversations about equality with partners in the light of the Black Lives Matter.
- Strengthened our financial systems with the appointment of Benedicta Joppa and transferred our accounting system to SAGE.
- Contributed to thought leadership pieces and campaigning activities related to creative careers, including National Careers Week.
- Continued to look at how we can work on briefs and activities that align with the global sustainable development goals.
- Increased the quality and range of resources available on our website
Page 2
## Ideas Foundation
## Trustees' Report for the Year Ended 31 August 2020
## **Impact**
We worked with over 6000 young people in Leeds, Keighley, Castleford Yorkshire through the Burberry Inspire programme and a further 300 young people in North Yorkshire.
Continued our partnership working with the National Association of the Teaching of English, Edge Gain, to develop sustainable models of cross-curriculum digital storytelling.
Received on average 250 monthly downloads of resources that we have shared on the TES Online resource hub. Worked with over 100 industry professionals.
Continued to evaluate the work with external experts Bean Research.
Developed an alumni group that is continuing to support both the Charity and each other.
## **Our Volunteers**
Volunteers played a significant role in our ability to nurture creativity, helping us to provide insights into the creative industries. Volunteers through our advisory Board have also provided specific support on marketing and fundraising.
A considerable number of brands and agencies offered at least a half-day of their time to provide insights into the creative industries, lead workshops, and judge students work. University volunteers also helped at events providing peer role models. Our alumni also supported summer schools and other activities that we organised to share their expertise. Two of our alumni serve on Ideas Foundation Board. Volunteers such as Melissa Fretwell and others have also provided informal advice and projects.
Our volunteer board members continue to give time and expertise to our Charity.
## **Staffing**
Our staffing during this past year has had to adapt to the situation in relation to the Covid crisis. Staff initially continued to work on projects, but as uncertainty and funding increased, we used the government furlough funding to provide some financial respite and an opportunity to rethink operational models. We consulted with staff and made redundancies that affected Zosia Mrozek-Folkierska, Leonia Goromba, and Angela Conway. Helen Poole was by the end of the financial year the only full-time member of staff. Heather MacRae continued to offer additional hours above the three days per week within her contract. We are pleased that all team members who were affected by redundancies or reduction in hours were offered positions elsewhere.
The Charity is supported by a network of highly skilled associates and freelancers who support our work. Many of these associates offer us heavily discounted rates and have been helping our work for many years.
## **Board Membership**
Trevor Johnson was appointed as Chair. Trevor, for family and work reasons, took paternity leave from the Board, and Ted Smith took on the role of Acting Chair. Mark Lainas has moved to New York. Benedicta Joppa has joined the Board as an informal advisor.
## **Creative Advisory Board Membership**
We have developed an active creative advisory board with representatives from education, industry, and government. Our members include Emma Pell, Richard Mason, Sarah Gregory, Tolu Farinto, Michael Cockerham, Clive Booth, Simeon Quarrie, Lydia Thornley, Vivian Muride, Justine Wright, Sherwin Beckford, Ben Conway, Yane Amos, , Stuart Knapman, Mala Mawkin, Rachael Quarmby, Lisa Thompson. Hillary Cross.
Page 3
## Ideas Foundation
## Trustees' Report for the Year Ended 31 August 2020
## **Partnerships**
In addition to our partnerships with agencies, brands, and schools we have worked closely with the National Association for the Teaching of English, Adobe, and Edge Gain to deliver our digital storytelling programmes. We continue to develop our relationships with the University of Arts London, Amos Bursary Trust, The Manchester College, Global Academy, Teesside University, Durham University and Queen Mary University of London to help deliver our programmes. We have contributed to the content on the Times Education Supplement website and have also contributed thought leadership pieces for the Design and Technology Association.
## **Agency Involvement**
Agencies that have supported us during the past year include:
- Canon
- Adam & Eve
- Engine
- Bartle Bogle Hegarty
- Karmarama
- Ogilvy and Mather
- McCann Manchester
- WaveMaker
- Nike
- BBC Creative
- VCCP
- BJL
- Analog Folk
## **Public benefit statement**
In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission's guidance on public benefit, including the guidance 'public benefit: running a charity (PD2). The achievements and activities above demonstrate the public benefit arising through the Charity's activities.
## **FINANCIAL REVIEW**
The Charity's Financial Statements show net unrestricted expenditure of £84,220 for the year (compared with £86,584) and free reserves of £76,385 (compared with £160,138 in 2019). The Trustees are of the view that these results have secured the immediate future of the Charity for the next 12 to 18 months. On this basis the Charity is a going concern.
The Statement of Financial Activities shows a net deficit of £53,542 (2019- deficit £334,325) for the year resulting in Reserves standing at £122,885 (2019 - £176,427) at 31 August 2020.
The Charity was able to secure additional funding as detailed below and also controlled its costs resulting in a surplus which has improved the Charity's liquidity and reserves.
## **Principal Funding Sources**
Principal funding sources are broken down as:
- Brand Funding - £443,610
- Agency Funding (including Awards) - £10,000
- Government Funding (including CEC) - £30,000
- Charity, Grants and donations - £17,012
- School / University - £9,020
- Government Grant (Furlough) – £15,555
Page 4
## Ideas Foundation
## Trustees' Report for the Year Ended 31 August 2020
## **Investment powers and policy**
Under the Memorandum and Articles of Association, the Charity has the power to make any investment which the trustees see fit. The trustees have considered the most appropriate policy for investing funds and have found that cash deposits meet their requirements to generate income.
## **Reserves policy**
The Directors consider it prudent to maintain an adequate balance of unrestricted funds to cover the Charity's contractual commitments and ideally would like these to be at a minimum level of between 3- and 6-months annual expenditure.
The Directors consider that the Charity's reserves will enhance the services provided and provide financial security for the future. The reserves held in unrestricted funds, which have not been designated or invested in fixed assets, at the 31 August 2020 were £76,385 (2019 - £160,138).
These reserves have been designated to help with business continuity, development, and preparation for online accounting systems.
## **FUTURE ACTIVITIES**
Our aims for 2020 - 2021 are:
1. To continue to delivery high quality education programmes using an increasingly hybrid model of delivery
2. To identify new sources of funding that will enable us to work more broadly across the creative industries and become less reliant on agency funding.
3. To continue to develop and support our alumni through the alumni network
4. To continue to raise awareness of the value of creativity within the Curriculum.
5. To continue to review our management and governance.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
Ideas Foundation (the word "Limited" being omitted by licence from the Board of Trade) is registered as a company limited by guarantee and not having a capital divided by shares. In the event of the company being wound up, members are required to contribute an amount not exceeding £10.
The Company's operations are governed by its Memorandum and Articles of Association dated 18 July 2001. The company was registered as a charity on 6 February 2002 under registration number 1090451.
## **Appointment of Trustees**
The directors of the company are also charity trustees for the purposes of charity law.
A full list of the Trustees/Directors who served during the year is set out on page 2. The power to appoint new Trustees rests with the existing Trustees.
## **Organization**
The Charity is structured so that the Board of Trustees, who meet at regular intervals, deal with the policy and overall control of the Charity's activities. Day to day management is in the hands of the Managing Director, who reports to the Board of Trustees.
Daily operations are the responsibility of the Co-ordinators, reporting to the Managing Director. The Charity is assisted by 17 young people, members of the alumni group. The alumni group communicate regularly online, . meet regularly, run projects, advise the staff and Board of Directors and Trustees, and represent young people within the organisation.
Page 5
## Ideas Foundation
## Trustees' Report
## for the Year Ended 31 August 2020
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Risk management**
The trustees have a risk management strategy which comprises:
- An annual review of the risks the Charity may face.
- The establishment of systems and procedures to mitigate those risks identified in the plan; and
- The implementation of procedures designed to minimise any potential impact on the Charity should those risks materialise.
This work has identified that financial sustainability is the major financial risk for the Charity. Attention is also focused on safeguarding, business continuity, and staff retention. A key element in the management of financial risk is via a reviewed reserves policy and the retention of sufficient working capital.
## **REFERENCE AND ADMINISTRATIVE DETAILS**
**Company Number:** 04270652
## **Charity Number:** 1090451
**Directors:** E M Smith - Chair J A Wilkins C J Harris N Desalegene M G Lainas P M Prince T L Johnson
## **Secretary:** Sarah Brown
**Senior Management:** Heather MacRae - Chief Executive Officer **Registered Office:** 93 Tabernacle Street, London EC2A 4BA
**Auditors:** SKS Audit LLP, Sheen Road, Richmond, TW91AD **Bankers:** Coutts & Co., 440 Strand, London WC2R 0QS
Page 6
## Ideas Foundation
## Trustees' Report
## for the Year Ended 31 August 2020
## **DIRECTOR' RESPONSIBILITIES**
The Trustees (who are also directors of Ideas Foundation for the purposes of company law) are responsible for preparing the Trustees' Annual 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 for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently.
- observe the methods and principles in the Charities SORP.
- make judgements and estimates that are reasonable and prudent.
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements.
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
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.
## **DISCLOSURE OF INFORMATION TO AUDITORS**
The directors who held office at the date of approval of this report confirm that, so far as they are each aware, there is no relevant audit information of which the auditors are unaware; and each director has taken all the steps that he/she ought to have taken as a director to make himself/herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.
## **CHARITABLE AND POLITICAL DONATIONS**
During the year the company made no political or charitable donations.
## **APPROVED BY THE TRUSTEES AND SIGNED ON ITS BEHALF BY:**
**E M SMITH CHAIR**
## **16[th] June 2021**
Page 7
## Report of the Independent Auditors to the Members of Ideas Foundation
## **Opinion**
We have audited the financial statements of Ideas Foundation (the 'charitable company') for the year ended 31 August 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
- In our opinion the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 August 2020 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. 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.**
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
- the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
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.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Trustees' Report has been prepared in accordance with applicable legal requirements.
Page 8
## Report of the Independent Auditors to the Members of Ideas Foundation
## **Matters on which we are required to report by exception.**
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to take advantage of the small companies’ exemption from the requirement to prepare a Strategic Report or in preparing the trustees' Report.
## **Responsibilities of trustees**
As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees 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 charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Our responsibilities for the audit of the financial statements**
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 a Report of the Independent Auditors 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.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
## **Use of our report.**
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
James Foskett (Senior Statutory Auditor) For on behalf of SKS Audit LLP 3 Sheen Road, Richmond TW9 1AD
Date: **27[th] July 2021**
Page 9
## Ideas Foundation
## Statement of Financial Activities
## for the Year Ended 31 August 2020
|Unrestricted
Restricted
funds
fund
Notes
£
£
**INCOME**
Donations and legacies
2
949
85,300
**Charitable activities**
3
Charitable Activities
27,374
496,874
**Total**
28,323
582,174
**EXPENDITURE**
**Raising funds**
Raising donations and legacies
4
15,808
-
15,808
-
**Charitable activities**
5
Creativity Programme
97,335
550,896
**Total**
113,143
550,896
**NET INCOME/(EXPENDITURE) AND NET**
**MOVEMENT IN FUND FOR THE YEAR**
(84,820)
31,278
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
161,205
15,222
**TOTAL FUNDS CARRIED FORWARD**
76,385
46,500|2020
Total
funds
£
86,249
524,248
610,497
15,808
15,808
648,231
664,039
(53,542)
176,427
122,885|2019
Total
funds
£
88,300
301,254
389,554
24,198
24,198
699,682
723,880
(334,326)
510,753
176,427|
|---|---|---|
The notes form part of these financial statements
Page 10
## Ideas Foundation
|Balance Sheet
31 August 2020
Notes
**FIXED ASSETS**
Tangible assets
12
**CURRENT ASSETS**
Debtors
13
Cash at bank and in hand
**CREDITORS**
Amounts falling due within one year
14
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
**NET ASSETS**
**FUNDS**
16
Unrestricted funds
Restricted funds
**TOTAL FUNDS**|2020
£
-
7,940
167,446
175,386
(52,501)
122,885
122,885
122,885
76,385
46,500
122,885|2019
£
1,066
98,633
89,165
187,798
(12,437)
175,361
176,427
176,427
161,205
15,222
176,427|
|---|---|---|
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies’ regime.
The financial statements were approved by the Board of Trustees and authorised for issue on **16[th] June 2021** and were signed on its behalf by:
............................................. **E M Smith (Chair)**
The notes form part of these financial statements
Page 11
## Ideas Foundation
## Cash Flow Statement
|for the Year Ended 31 August 2020
2020
Notes
£
**Cash flows from operating activities**
Cash generated from operations
1
78,281
Net cash provided by/(used in) operating activities
78,281
**Change in cash and cash equivalents in the**
**reporting period**
78,281
**Cash and cash equivalents at the beginning**
**of the reporting period**
89,165
**Cash and cash equivalents at the end of the**
**reporting period**
167,446|2019
£
(415,789)
(415,789)
(415,789)
504,954
89,165|
|---|---|
The notes form part of these financial statements
Page 12
## Ideas Foundation
## Notes to the Cash Flow Statement
## for the Year Ended 31 August 2020
## **1. RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES**
|**ACTIVITIES**||||
|---|---|---|---|
|||2020|2019|
|||£|£|
|**Net expenditure for the reporting period (as per the Statement of**||||
|**Financial Activities)**||(53,542)|(334,326)|
|**Adjustments for:**||||
|Depreciation charges||1,066|2,144|
|Decrease/(increase) in debtors||90,693|(44,673)|
|Increase in creditors||40,004|(38,935)|
|**Net cash provided by/(used in) operations**||78,281|(415,789)|
|**ANALYSIS OF CHANGES IN NET FUNDS**||||
|At|1.9.19|Cash flow|At 31.8.20|
||£|£|£|
|**Net cash**||||
|Cash at bank and in hand|89,165|78,281|167,446|
|**Total**|89,165|78,281|167,446|
2. **ANALYSIS OF CHANGES IN NET FUNDS**
The notes form part of these financial statements
Page 13
Ideas Foundation
## Notes to the Financial Statements
for the Year Ended 31 August 2020
## **1. ACCOUNTING POLICIES**
## **BASIS OF PREPARING THE FINANCIAL STATEMENTS**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charity SORP (FRS 102) Revised), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Ideas Foundation meets the definition of a public benefit entity under 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 accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.
## **Preparation of accounts on a going concern basis**
The Charity's Financial Statements show net unrestricted expenditure of £53,542 for the year and free reserves of £76,385. The Trustees are of the view that these results have secured the immediate future of the Charity for the next 12 to 18 months and on this basis the Charity is a going concern.
## **INCOME**
Income is recognised when the Charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received, and amount can be measured reliably.
(a) Income received by way of donations are included in full in the Statement of Financial Activities when received, unless they relate to a specified future period, in which case they are deferred.
(b) Income from charitable activities received by way of revenue grants and donations are credited to restricted incoming resources on the earlier date of when they are received or when they are receivable, unless they relate to a specified future period, in which case they are deferred.
(c) Grants and donations of general nature which are not conditional on delivering certain levels of service are included as part of donations as shown under note 2. Performance related grants and donations which have conditions for a specific outcome are include as Income from Charitable Activities as shown in Note 3.
(d) Income from charitable activities include income recognised as earned (as the related goods and services are provided) under contract.
## **Volunteers and donated services, facilities and goods**
Donated professional services and donated facilities are recognised as income when the Charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the Charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time of the Charity is not recognised in the main body of the financial accounts, but detail is contained in the Trustees report.
On receipt, donated professional services, donated facilities and goods are recognised on the basis of the value of the gift to the Charity which is the amount the Charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
continued...
Page 14
Ideas Foundation
## Notes to the Financial Statements - continued
for the Year Ended 31 August 2020
## **1. ACCOUNTING POLICIES - continued**
## **EXPENDITURE**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources.
## **Allocation of support costs**
Support costs are those functions that assist the work of the Charity but do not directly undertake charitable activities. Support costs include back-office costs, finance and administration personnel, payroll and governance costs which support the Charity's programmes and activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The bases on which support costs have been allocated are set out in note 7.
## **TANGIBLE FIXED ASSETS**
Tangible fixed assets are stated at cost less depreciation. Individual fixed assets costing £500 or more are capitalised at cost.
Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following basis:
Office equipment - 25% on cost.
## **TAXATION**
The charity is exempt from corporation tax on its charitable activities.
## **FUND ACCOUNTING**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **FINANCIAL INSTRUMENTS**
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## **Pension Costs**
The Charity operates a contributory defined contribution pension scheme, the assets of which are held separately from those of the Charity. Pension costs are charged to the SOFA in the period to which they relate.
Page 15
continued...
Ideas Foundation
## Notes to the Financial Statements - continued
for the Year Ended 31 August 2020
## **1. ACCOUNTING POLICIES - continued**
## **Judgement and key sources of estimation uncertainty**
In the application of the Charity's accounting policies, the Charity is required to make judgments, 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.
## **2. DONATIONS AND LEGACIES**
|Unrestricted
Funds
Restricted Funds
Just Giving
467
-
Donation
50
-
MARSHCOM
13
-
BJL Agency Manchester - donation in kind
419
4800
Canon - donation in kind
-
5,000
National Association for Teaching of
English
-
5,000
Octagon Studio - donations in kind
-
10,000
Ogilvy & Mather - donation in kind
-
35,000
Queen Mary University of London
-
5,000
Salesforce - donation in kind
-
-
University of Arts - donation in kind
-
12,500
Advertising agencies - donation in kind
-
8,000
**TOTAL**
**949**
**85,300**|2020
£
467
50
13
5,219
5,000
5,000
10,000
35,000
5,000
-
12,500
8,000
**86,249**|2019
£
-
-
-
4,800
5,000
5,000
10,000
35,000
5,000
3,000
12,500
8,000
**88,300**|
|---|---|---|
The donations income in 2019 totalling £88,300 was attributed fully to restricted funds.
Page 16
continued...
## Ideas Foundation
## Notes to the Financial Statements - continued for the Year Ended 31 August 2020
## **3. INCOME FROM CHARITABLE ACTIVITIES**
|Unrestricted
Funds
Restricted Funds
**Grant Income:**
Burberry Inspire
-
404,000
The Careers & Enterprise Company -
Burberry North
-
30,000
Canon (UK) Ltd
-
8,850
Comino Foundation
-
16,064
Manchester College
-
7,200
**Sponsorship & Prize Income**
The Creative Floor
-
-
Pearson
1,820
-
BBH
10,000
-
**Programme Income**
-
-
Nike
-
18,760
BBC
-
3,000
Canon Sellafield
-
9,000
**Government Furlough Grant**
15,554
-
**TOTAL**
**27,374**
**496,874**|2020
£
404,000
30,000
8,850
16,064
7,200
-
1,820
10,000
-
18,760
3,000
9,000
15,554
**524,248**|2019
£
-
37,500
8,539
56,248
-
22,500
-
-
176,467
-
-
-
-
**301,254**|
|---|---|---|
The income from charitable activities in 2019 totalling £301,254 was attributed to £102,287 restricted funds and £198,967 unrestricted funds.
## **4. RAISING DONATIONS AND LEGACIES**
|Unrestricted
Restricted
funds
funds
£
£
Staff costs
15,720
-
Fundraising Costs
88
-
15,808
-|2020
Total
funds
£
15,720
88
15,808|2019
Total
funds
£
18,648
5,550|
|---|---|---|
|||24,198|
continued...
Page 17
## Ideas Foundation
## Notes to the Financial Statements - continued for the Year Ended 31 August 2020
## **5. CHARITABLE ACTIVITIES COSTS**
|Direct
Costs (see
note 6)
£
Creativity Programme
584,198|Support
costs (see
note 7)
£
64,033|Totals
£
648,231|
|---|---|---|
Direct Costs includes £33,302 unrestricted fund and restricted fund of £550,896 which relates to charitable activities
## **6. DIRECT COSTS OF CHARITABLE ACTIVITIES**
|Staff costs
Advertising
Trainers materials programme development and delivery.
Travel
Printing, postage and stationery
Subcontractors
External venue hire
Consultancy
Office Rent|2020
£
155,511
5,638
299,841
719
19,510
17,335
35,644
15,000
35,000
584,198|2019
£
123,870
30,818
448,903
-
-
-
-
-
-|
|---|---|---|
|||603,591|
## **7. SUPPORT AND GOVERNANCE COSTS**
|General
General office & finance staff (Inc.
subcontractors)
Premises costs
Other office costs
Professional fees
Insurance
Depreciation
Audit fees
**TOTAL**|Support
Costs
Governance
Function
41,025
-
105
-
4,657
-
8,712
-
1,867
-
1,066
-
-
6,600
**57,433**
**6,600**|2020
£
41,025
105
4,657
8,712
1,867
1,066
6,600
**64,033**|2019
£
43,835
35,000
7,159
630
1,322
2,144
6,000
**96,090**|
|---|---|---|---|
## **8. NET INCOME/(EXPENDITURE)**
Net income/(expenditure) is stated after charging/(crediting):
||2020|2019|
|---|---|---|
||£|£|
|Auditors' remuneration|6,600|6,000|
|Depreciation - owned assets|1,066|2,144|
continued...
Page 18
Notes to the Financial Statements - continued for the Year Ended 31 August 2020
## Ideas Foundation
## **9. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 31 August 2020 nor for the year ended 31 August 2019.
## **TRUSTEES' EXPENSES**
There were no trustees' expenses paid for the year ended 31 August 2020 nor for the year ended 31 August 2019.
## **10. STAFF COSTS**
|**STAFF COSTS**|||
|---|---|---|
|Wages and salaries|2020
£
212,258
212,258|2019
£
186,353|
|||186,353|
Gross Wages - £186,482, employer's NI - £17,919, employer's pension - £4,309, temporary staff - £3,548.
Key Management Personnel of the charity comprise of the Chief executive officer. During the year the CEO was paid salary and fees of £51,911, (2019 - £62,157), for providing management program related services.
The average monthly number of employees during the year was as follows:
|Direct charitable work
Administrative work|2020
5
1
6|2019
5
1|
|---|---|---|
|||6|
No employees received emoluments in excess of £60,000.
Page 19 continued...
## Ideas Foundation
## Notes to the Financial Statements - continued
## for the Year Ended 31 August 2020
## **12. TANGIBLE FIXED ASSETS**
|**COST**
At 1 September 2019 and 31 August 2020
**DEPRECIATION**
At 1 September 2019
Charge for year
At 31 August 2020
**NET BOOK VALUE**
At 31 August 2020
At 31 August 2019
**13.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Trade debtors
Prepayments
**14.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Trade creditors
Other creditors
Accruals and deferred income (see Note 16)
**15.**
**ANALYSIS OF NET ASSETS BETWEEN FUNDS**
Unrestricted
Restricted
funds
fund
£
£
Fixed assets
-
-
Net Current assets
76,385
46,500
76,385
46,500|2020
£
7,000
940
7,940
2020
£
661
-
51,840
52,501
2020
Total
funds
£
-
122,885
122,885|Fixtures
and
fittings
£
8,577
7,511
1,066
8,577
-
1,066
2019
£
97,662
971
98,633
2019
£
5,885
552
6,000
12,437
2019
Total
funds
£
1,066
175,361
176,427|
|---|---|---|
continued...
Page 20
Ideas Foundation
Notes to the Financial Statements - continued for the Year Ended 31 August 2020
## **16. DEFERRED INCOME**
|Brought Forward
Carried Forward|2020
£
-
45,240
45,240|2019
£
-
-
-|
|---|---|---|
Deferred Income represents programming income of £45,240 received for next financial year.
## **17. MOVEMENT IN FUNDS**
|Balance at
01.09.2019 in £
**Restricted Funds: -**
The Burberry Foundation
-
Nike
-
The Careers & Enterprise Company -
Burberry North Yorkshire
-
BBC
-
Comino Foundation
15,223
Canon Sellafield
-
Manchester College
Cannon (UK) Ltd
-
-
BJL Agency Manchester - donation in kind
-
Canon - donation in kind
-
National Association for Teaching of
English
-
Octagon Studio - donations in kind
-
Ogilvy & Mather - donation in kind
-
Queen Mary University of London
-
University of Arts - donation in kind
-
Advertising agencies - donation in kind
-
Total Restricted Funds
15,223
**Unrestricted Fund: -**
General Funds
161,205
**TOTAL FUNDS**
**176,428**|Income
Expenditure
Balance at
31.08.2020 in £
404,000
375,827
28,173
18,760
16,448
2,312
30,000
16,608
13,392
3,000
375
2,625
16,064
31,287
-
9,000
9,000
-
7,200
8,850
7,200
8,850
-
-
4,800
4,800
-
5,000
5,000
-
5,000
5,000
-
10,000
10,000
-
35,000
35,000
-
5,000
5,000
-
12,500
12,500
-
8,000
8,000
-
582,174
550,896
46,500
28,323
113,143
76,385
**610,497**
**664,039**
**122.885**|
|---|---|
## Ideas Foundation
## Notes to the Financial Statements - continued for the Year Ended 31 August 2020
## **17. MOVEMENT IN FUNDS - continued**
## **Movement in Funds - Previous year**
|Balance at
01.09.2018 in £
**Restricted Funds: -**
BJL Agency Manchester - donation in kind
-
Canon - donation in kind
-
National Association for Teaching of
English
-
Octagon Studio - donations in kind
-
Ogilvy & Mather - donation in kind
-
Queen Mary University of London
-
Salesforce - donation in kind
-
University of Arts - donation in kind
-
Advertising agencies - donation in kind
-
The Burberry Foundation
388,082
The Careers & Enterprise Company -
Burberry North Yorkshire
-
Canon (UK) Ltd
-
Comino Foundation
18,543
Royal Academy of Engineering
29,507
Total Restricted Funds
436,132
**Unrestricted Fund: -**
General Funds
74,621
**TOTAL FUNDS**
**510,753**|Income
Expenditure
Balance at
31.08.2019 in £
4,800
4,800
-
5,000
5,000
-
5,000
5,000
-
10,000
10,000
-
35,000
35,000
-
5,000
5,000
-
3,000
3,000
-
12,500
12,500
-
8,000
8,000
-
-
388,082
-
37,500
37,500
-
8,539
8,539
-
56,248
59,568
15,223
-
29,507
-
190,587
611,496
15,223
198,967
112,383
161,205
**389,554**
**723,879**
**176,428**|
|---|---|
## **Description, nature, and purpose of restricted funds:**
**Advertising Agencies:** Donation in kind supplied to the charity, in the form of venues for Ladder events.
**BJL Agency Manchester:** Donation in kind supplied to the charity, in the form of venue, equipment and staffing for BJL Summer School.
**BBC:** Creative media camp.
**Canon:** Donation in kind in the form of venue and resource creation.
**Canon (UK) Ltd:** Funding towards Imaging for Good project.
**Canon Sellafield:** Digital Storytelling activities in West Cumbria.
**Comino Foundation:** Project funding for work in the Northwest of England.
**Manchester College:** Employability bootcamp activities
Ideas Foundation
## Notes to the Financial Statements - continued
## for the Year Ended 31 August 2020
**National Association for Teaching of English:** Donation in kind in the form of advice and consultancy for Curriculum.
**Nike:** Education programme in relation to Black History month.
**Octagon Studios:** Donation in kind supplied to the charity, in the form of for assistance with the Augmented Reality project.
**Ogilvy & Mather:** Donation in kind supplied to the charity, in the form of office space and associated facilities.
**Queen Mary University of London:** Donation in kind in the form of advice and consultancy for Curriculum.
**Royal Academy Engineering:** Funding towards the Digital Story Telling Project, which involves engineers working with young people to promote stem careers.
**Salesforce:** Donation in kind supplied to the charity, in the form of software licence.
**The Burberry Foundation:** Funding towards This Project aims to positively impact social mobility in young people from disadvantaged communities in Yorkshire through the use of arts and culture to improve young people’s confidence, self-belief and critical thinking.
**The Careers & Enterprise Company - Burberry North Yorkshire: -** Funding towards the working with Burberry in North Yorkshire to nurture creativity.
**University of Arts:** Donation in kind supplied to the charity, in the form of venue, equipment and staffing for CMC Summer School.
## **Description, nature and purpose of unrestricted funds:**
**General funds:** General fund represents funds available to spend at the discretion of the Trustees after allowing for all the designated funds.
## **18. RELATED PARTY DISCLOSURES**
There were no related party transactions for the year ended 31 August 2020.
Details of Senior Management are shown in Note 10.
## **19. POST BALANCE SHEET EVENTS**
During the year-end, the Coronavirus (COVID-19) has emerged globally, resulting in a significant impact on businesses worldwide. As a result, some operations have been restricted. However, the Charity continues to operate using alternative methods and remote working. The trustees are unable to evaluate the overall financial impact on the Charity at present. Hence financial statements do not include any adjustments that might result from the outcome of this uncertainty. The trustees are continuing to monitor, assess, and act to the current changing environment to position the Company to ensure its future success."
## **20. SHARE CAPITAL**
The charity is constituted as a company limited by guarantee and does not have a share capital divided by shares.
## Ideas Foundation
|Detailed Statement of Financial Activities
for the Year Ended 31 August 2020
**INCOME AND ENDOWMENTS**
**Donations and legacies**
Donations
**Charitable activities**
Contract income Programmes
The Creative Floor
Grants
**Total incoming resources**
**EXPENDITURE**
**Raising donations and legacies**
Wages
Fundraising Costs
**Charitable activities**
Wages
Advertising
Trainers materials programme development and delivery.
Travel
Printing, postage and stationery
Subcontractors
External venue hire
Consultancy
Office Rent|2020
£
86,249
27,374
-
496,874
524,248
610,497
15,720
88
15,808
155,511
5,638
299,841
719
19,510
17,335
35,644
15,000
35,000
584,198|2019
£
88,300
176,467
22,500
102,287|
|---|---|---|
|||301,254|
|||389,554
18,648
5,550|
|||24,198
123,870
30,818
448,903
-
-
-
-
-
-|
|||603,591|
This page does not form part of the statutory financial statements
Page 24
## Ideas Foundation
|
**Support costs**
**Management**
Wages
Insurance
Telephone
Postage and stationery
Premises Cost
Other office costs
Refreshments
Sundry expenses
Legal and professional Cost
Subscriptions and membership
Computer cost
Fixtures and fittings
**Governance costs**
Auditors' remuneration
Total resources expended
**Net expenditure**|Detailed Statement of Financial Activities
for the Year Ended 31 August 2020
|2020
£
41,027
1,867
1,324
245
105
623
589
1,216
7,250
1,462
659
1,066
57,433
6,600
664,039
(53,542)|2019
£
43,835
1,323
-
-
35,000
7,159
-
-
630
-
-
2,144
90,091
6,000
723,880
(334,326)|
|---|---|---|---|
|||||
This page does not form part of the statutory financial statements
Page 25