2021-02-28-accounts - Power2 Ltd

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Teens and Toddlers Trading as Power2 Limited

Formerly Teens and Toddlers

FINANCIAL STATEMENTS

YEAR ENDED 28 February 2021

REGISTERED CHARITY NUMBER: 1099782 (England and Wales)

COMPANY NUMBER: 4001308

Teens and Toddlers Trading as Power2 Limited (Formerly Teens and Toddlers Ltd)

I arrived at Power2 on January 6[th] 2020, the day after the World Health Organisation published its first Disease Outbreak news briefing on a new disease which was subsequently named COVID-19. This set the scene for the whole of our financial year with our new strategy development running in tandem with our response to the crisis.

As the UK went into lockdown in March 2020 our immediate concern was for the young people we work with. We carried out extensive outreach to support them, in some cases having daily calls, and moved our support online where needed. We introduced a new COVID-19 response programme, Power2 Rediscover, which provides 1:1 emotional and practical support to young people as they deal with the impact of the pandemic and lockdown, and includes support for wellbeing and school engagement. Many of our funders agreed to re-purpose their funding to support this new programme, and we were successful in securing new funding. We are delivering Power2 Rediscover widely, and we expect it to become a core part of our programme portfolio.

The pandemic brought big changes to the way we worked during the year. We closed our offices in London and Manchester in line with government guidelines in March 2020, and office-based staff have largely worked from home since. We have moved our IT infrastructure to the Cloud, with help from generous tech donations from two of our corporate partners. Staff who work in schools have continued to do so where necessary, and we are grateful for their categorisation as key workers. The vulnerable young people we work with have in many cases been attending school throughout the pandemic, and others have been brought into school for the day by their teachers so that we can work with them; a great endorsement of the importance and value of face-to-face work. We have delivered online to other young people which has extended our geographical reach from Cumbria to the Isle of Wight, and we plan to continue to use this route to reach young people in need of our services in future.

We have also made sure that the voices of our young people have been captured and amplified. In spring we launched a national young people survey and recorded interviews with young people, their teachers and support workers to inform our first youth voice campaign. A short film about our support for young people was made by the Daily Mirror and our Young Leaders spoke at many external events. These included the Northern Powerhouse’s Education, Employment and Skills Summit where they were in conversation with Mayor of Greater Manchester, Andy Burnham, and Channel 4 News talking about the effect of the pandemic on children and young people’s mental health. Our first youth-led in-conversation event, Look Back to the Future, ran in November 2020.

We recruited new Ambassadors including Angela Rayner MP, Lord Jim Knight, actress Jane Asher, Moss Side ambassador Kemoy Walker, and young adult author Dan Freedman. Our Ambassadors have supported our campaigns and increased our visibility, and we look forward to working more with them in the future.

My priority for the financial year was to refocus on income, to ensure we recovered from the deficit of FY 19/20 because of some pauses in funding. A new team, structure and strategy paid dividends, and thank you to all our donors for your invaluable support. Our revenue increased substantially over the previous year, in part due to a new Income and Engagement team, structure and strategy

and new (to us) funding sources such as the Big Give. We also took advantage of the government Coronavirus Job Retention Scheme to retain delivery staff and took out a Coronavirus Business Interruption Loan to protect us against short term cash flow issues which may arise due to school closures and delays in the resumption of our work in schools. The surplus in the year, contrasting with the deficit of the previous year, is largely due to careful cost management; we restructured the organisation with the unfortunate loss to redundancy of two members of staff, and were able to negotiate a substantial rent reduction with our landlord, for which we were very grateful. We also made a substantial saving in travel costs since most of our programmatic work was delivered online.

Our future plans focus on the recommencement of our Teens and Toddlers programme, expected from September and for which we already have a number of schools signed up. The external evaluation of Power2 Rediscover will be delivered in spring, after which we will be able to make any changes needed to take it into our core portfolio. We will also be piloting Power2 Progress, which uses key principles for Teens and Toddlers to support children through the all-important transition from primary to secondary school. We will be testing the market for a Train the Trainer model for our programmes, enabling them to be delivered by schools and other third sector organisations, and we will be exploring new commissions. The changes we have made to the organisation and our infrastructure over the year mean that we are now much more nimble, able to scale up as needed to deliver large contracts.

COVID-19 has impacted millions of people and we are not alone. We have had to be extremely nimble and responsive as an organisation, and the speed which we have been able to adapt will stand us in good stead in the future. As an organisation we are stronger than before the pandemic. The young people we work with, though, have been disproportionately affected by the crisis and we are extremely concerned about their mental wellbeing and the impact of lockdown on their learning and future life chances. We are here to support them – and support their schools in supporting them – for as long as it takes.

I’m very proud of everything the Power2 team has achieved in extremely difficult circumstances, all of which has put us in a strong position as vaccines allow us to look to a post-pandemic world and, most importantly, make a difference to the young people we work with.

Julie Randles Chief Executive Teens and Toddlers Trading as Power2 Ltd

Report of the Trustees for the year ending 28 February 2021

The trustees are pleased to present their annual Trustees’ report together with the audited financial statements of the charity for the year ending 28 February 2021, which are also prepared to meet the requirements for a directors’ report and accounts for 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: 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.

Our purposes and activities

The purpose of the charity is to foster and support the education, health, opportunity and development of children and young people. We believe there is no greater cost to society than unfulfilled potential. We support children and young people at key transition points to achieve their potential by developing crucial life skills, boosting confidence and improving self-esteem. Our main programmes are the award-winning Teens & Toddlers programme, the Young Leaders programme, and, currently, Power2 Rediscover, our COVID-19 crisis response programme. There have been no changes to the Charity’s objectives during the year. The Charity is a public benefit entity. The Trustees have had regard to the Charity Commission’s guidance on public benefit.

Strategic Report - Achievements and performance

In the year to February 2021, we worked in 21 local authorities, 55 secondary schools and 58 primary schools. Our reach was badly affected by school closures due to COVID-19 so we were reduced to 260 starters on Teens and Toddlers programmes (803 in 2020). None of these programmes were completed due to successive lockdowns and government guidelines on social distancing. We delivered our Power2 Rediscover programme from autumn 2020, reaching 157 young people.

A further 173 young people participated in our other programmes (Young Leaders and Power2 Advance).

COVID-19 related challenges and our programmes

We were badly hit by the COVID-19 pandemic; all delivery of our flagship programme, Teens and Toddlers, ceased in March 2020 as schools closed, and we lost revenue as a result. In May 2020 almost £500,000 of bids that were in process were lost or withdrawn as funders adjusted to the COVID-19 situation. This was due to loss of revenue from schools, grants being withdrawn altogether and decisions being delayed.

As a frontline service provider we were determined to continue to support young people, whose existing challenges are exacerbated by the effects of the pandemic. To do so we worked with current funders to re-purpose funding and direct it to core funding for our new Power2 Rediscover programme as well as bidding successfully to new funding sources that emerged as funders launched emergency funds to support organisations and individuals affected by the pandemic. We also took reasonable and prudent steps to access the Government’s furlough scheme and reviewed our cost structure. Furlough has allowed us to retain key staff and be in a position to resume our work when schools re-open. We took the decision in March 2020 to top up furloughed staff salaries to 100%.

Financial review

Power2 had a surplus of £64,170 for the year to February 2021 (2020: deficit of £265,062). This was an exceptional year because of a funding halt due to a change in CEO. The new CEO, Julie Randles started in January 2020. Soon after the COVID-19 crisis began, which closed schools and brought our work on school sites to a standstill. A review by the new CEO and a change in our fundraising approach led to an improved success rate in the 12 months to February 2021 and a return to surplus.

As already referenced almost £500,000 of bids that were in process were lost or withdrawn as funders adjusted to the COVID-19 situation. This was due to loss of revenue from schools, grants being withdrawn altogether and decisions being delayed.

However, whilst we worked with current funders to re-purpose funding as core or for our new Power2 Rediscover programme we also found new funding sources emerging as major funders created emergency funds to support those who were suffering from the effects of COVID-19.

As a result 2021 revenue has increased by £175k compared to the previous year. Due to COVID-19 we saw a reduction in schools revenue of £100k. However, this was offset by an increase in grants from Trust and Corporates and the Big Give campaign, and by Coronavirus Job Retention Scheme (furlough) grants. For the next financial year we expect to sustain revenue at its current level with the reduction in furlough income being taken up by the resumption of schools revenues and grants from Trust and Corporates.

We have been able to attract new and exciting partnerships and now have a healthy cash flow with 60% of income secured for our next financial year (YE Feb 2022).

We renegotiated out tenancy agreement with our landlord the Psychosynthesis Trust which involved a rent reduction and an exit from the premises on 31 March 2021 without penalties. We have taken space at lower cost on the Coram Foundation Campus in Bloomsbury from 1 May 2021. This has reduced our overhead costs significantly.

Investment powers and policy

The operating management, taking into account the liquidity requirements of operations, have kept available funds in an interest-bearing deposit account and seek to achieve a rate on deposit which matches or exceeds inflation as measured by the retail prices index. Due to wider economic circumstances deposit rates have been depressed and so this aim was not achieved in the year.

Reserves Policy

Power2 must ensure its long-term sustainability, viability, and success. In determining the reserves policy the trustees have considered the current economic conditions and the risks to key funding sources. The trustees have also considered the organisation’s core financial responsibilities. The Trustees have agreed that the Charity’s objective is to have free cash reserves of no less than 3 months and no more than 6 months normal operating expenditure in order to continue to operate programmes. Normal operating expenditure, for this purpose excludes expenditure which is covered by restricted reserves. Unrestricted reserves held at 28 February 2021 are £204,410 (2020:

£140,240). The Trustees are satisfied with the level of unrestricted reserves. There were no restricted reserves at 28 February 2021.

The Trustees recognize the difficult conditions for the Charity, the level of free reserves and the challenging environment of the Charity sector. The Trustees have no material concerns relating to the ability of Power2 to continue to operate as a going concern.

In setting its budgets, level of charges for services and in negotiating the level of funding for grants, Power2 takes account of the need to maintain adequate reserves. The Board of Directors and the Finance Committee continually monitor whether the level of income is appropriate to establish and maintain reserves in line with this policy through the processes of annual budgeting, periodic management accounts and cash flow reporting. This policy will be reviewed at least annually.

Reference and administrative details

Charity number: 1099782 Company number: 4001308 Principal & Registered Office: 92 Tooley Street, London Bridge, SE1 2TH

Directors and Trustees

The directors of the charitable company (the 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:

Chair	Marc St John
Trustees	Anthony Clinch
	Chris Mulrooney (resigned 30 April 2021)
	Edward Scully
	Gemma Carroll
	Georgia Hart
	Jane Hinchliffe
	Reena Gogna (appointed 1 June 2020)
	Karen Tyerman (resigned 21 August 2020)
	James Potter (appointed 21 January 2021)

James Potter joined the Power2 Board in January 2021. In Autumn 2020 in his role as Investment Director at Big Issue Invest James acted on behalf of the Social Investment Business in preparing a Power2 application for a Coronavirus Business Interruption Loan from the Resilience and Recovery Loan Fund. This fund is managed by the Social Investment Business (SIB). Big Issue Invest no longer acts as an agent for SIB in relation to the CBILS loan to Power2, nor was it acting as an agent at the time James was appointed.

Company Secretary Julie Randles Chief Executive Julie Randles

Auditors MHA MacIntyre Hudson 6[th] Floor, 2 London Wall Place, London, EC2Y 5AU Bankers Barclays Bank plc, Borough High Street, London, SE1 1LY Senior Management Team Paul Hopkins – Director of Operations & Finance Abigail Moss – Director of Income and Engagement Samantha Marcus – Head of Programme Delivery Will Cole – Head of Programme Development

Fundraising

The Charity does not use any professional fundraisers other than those individuals employed by the Charity. During the financial year 2020/21 the charity paid due regard to its fundraising practices in line with the guidelines set out by the Fundraising Regulator’s Fundraising Code of Practice. There were no complaints made against the charity regarding fundraising practices. Fundraising is monitored by the Trustees.

Structure, Governance and Management

Governing Document

Teens and Toddlers Trading as Power2 is a company limited by guarantee governed by its Memorandum and Articles of Association dated May 2000. It is registered as a charity with the Charity Commission.

Trustee induction and training

Normally new trustees receive an induction pack and undergo an orientation day to brief them on their legal obligations under charity and company law, the Charity Commission guidance on public benefit, and inform them of the content of the Memorandum and Articles of Association, the committee and decision-making processes, the business plan and recent financial performance of the charity. During the induction day they meet key employees and other trustees. They also visit one of our programmes in action.

Successive lockdowns in the financial year meant we were unable to run trustee induction days; instead, our new trustees had a number of briefing sessions with our Chair and key employees, and attended a virtual session where several of our young people spoke about themselves .

Organisation

The board of trustees administers the charity. The board normally meets six times per year and there are sub-committees for finance and audit (Finance Committee) and impact measurement (Impact Committee). A Chief Executive is appointed by the trustees to manage the day-to-day operations of the charity and to delegate through the Senior Management Team (SMT).

Related parties and co-operation with other organisations

None of our trustees receive remuneration or other benefit from their work with the charity.

Indemnity Insurance

Professional indemnity insurance is paid on behalf of the Trustees to protect them from claims arising from negligent acts, errors, or omissions while on charity business.

Pay policy for senior staff

The directors consider that the board of directors, who are the Charity’s trustees, the Chief

Executive and the senior management team, comprise the key management personnel of the Charity in charge of directing and controlling, running and operating the Charity on a day-to-day basis. All directors give of their time freely and no director received remuneration in the year. The pay of senior staff is reviewed annually by the Remuneration Committee (2 trustees) with approval by the Finance Committee and increased in accordance with average earnings, where relevant, and benchmarked against other similar charities.

Risk management

The trustees have a risk management strategy which comprises:

a risk register which is reviewed by the full Board at each meeting along with a list of changes since the previous Board meeting.
an annual review of the principal risks and uncertainties that the charity is subject to by the main Trustee Board.
the establishment of policies, systems and procedures to mitigate those risks identified in the annual review; and
the implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise.
a Finance Committee comprising at least 3 trustees which meets separately from the main Board to review financial forecast in detail.

The principal risks of the Charity identified by the Trustees include the availability of funding for projects and the safeguarding risks arising in relation to the teenagers and young children involved in the projects. These risks are mitigated by active financial management and by robust policies and procedures in respect of selection and training of staff working with young people.

Trustees’ responsibilities in relation to the financial statements

The charity trustees are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing the 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 (FRS 102);
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 charity will continue in business.

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and the group and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Disclosure of information to the auditors

We, the directors of the company who held office at the date of approval of these Financial Statements as set out above each confirm, so far as we are aware, that: • there is no relevant audit information of which the company’s auditors are unaware; and • we have taken all the steps that we ought to have taken as directors to make ourselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.

In approving the Trustees' Annual Report, we also approve the Strategic Report included therein, in our capacity as company directors.

On behalf of the board

By order of the board of trustees Marc St John

Date 25 June 2021

Independent Auditor’s Report to the Members of Teens and Toddlers Trading as Power2 Ltd (formerly Teens and Toddlers Ltd)

Opinion

We have audited the financial statements of Teens and Toddlers Trading as Power2 Ltd (the ‘charitable company’) for the year ended 28 February 2021 which comprise the Statement of financial Activities (incorporating the income and Expenditure account), the Balance Sheet, the Statement of Cash Flows and related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the charitable company’s affairs as at 28 February 2021, 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 Auditor’s 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

In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the Trustees’ assessment of the Charity’s ability to continue to adopt the going concern basis of accounting included the review of charity forecasts and financial performance post year end.

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report 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 (incorporating the strategic report and the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Trustees’ Report been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the 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 in relation to which 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 directors’ 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 prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the directors’ report

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 8 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.

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

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

Enquiry of management and those charged with governance around actual and potential litigation and claims;
• Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and revieing accounting estimates for bias;
• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s 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 auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the 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.

Brendan Sharkey FCA Senior Statutory Auditor For and on behalf of MHA Maclntyre Hudson Statutory Auditors

6[th] Floor 2 London Wall Place London EC2Y 5AU

01 July 2021

Teens and Toddlers Trading as Power2 Limited (formerly Teens and Toddlers Ltd)

Teens and Toddlers Trading as Power2 Limited (formerly Teens and Toddlers Ltd)g as Power2 Limited (formerly Teens and Toddlers Ltd) as Power2 Limited (formerly Teens and Toddlers Ltd)(formerly Teens and Toddlers Ltd)formerly Teens and Toddlers Ltd)y Teens and Toddlers Ltd) Teens and Toddlers Ltd)) STATEMENT OF FINANCIAL ACTIVITIES AND INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 28 February 2021 2021 2021 Unrestricted Restricted Funds Funds Notes £ £ Income and endowments from:	Teens and Toddlers Trading as Power2 Limited (formerly Teens and Toddlers Ltd)g as Power2 Limited (formerly Teens and Toddlers Ltd) as Power2 Limited (formerly Teens and Toddlers Ltd)(formerly Teens and Toddlers Ltd)formerly Teens and Toddlers Ltd)y Teens and Toddlers Ltd) Teens and Toddlers Ltd)) STATEMENT OF FINANCIAL ACTIVITIES AND INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 28 February 2021 2021 2021 Unrestricted Restricted Funds Funds Notes £ £ Income and endowments from:	Teens and Toddlers Trading as Power2 Limited (formerly Teens and Toddlers Ltd)g as Power2 Limited (formerly Teens and Toddlers Ltd) as Power2 Limited (formerly Teens and Toddlers Ltd)(formerly Teens and Toddlers Ltd)formerly Teens and Toddlers Ltd)y Teens and Toddlers Ltd) Teens and Toddlers Ltd)) STATEMENT OF FINANCIAL ACTIVITIES AND INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 28 February 2021 2021 2021 Unrestricted Restricted Funds Funds Notes £ £ Income and endowments from:	Teens and Toddlers Trading as Power2 Limited (formerly Teens and Toddlers Ltd)g as Power2 Limited (formerly Teens and Toddlers Ltd) as Power2 Limited (formerly Teens and Toddlers Ltd)(formerly Teens and Toddlers Ltd)formerly Teens and Toddlers Ltd)y Teens and Toddlers Ltd) Teens and Toddlers Ltd)) STATEMENT OF FINANCIAL ACTIVITIES AND INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 28 February 2021 2021 2021 Unrestricted Restricted Funds Funds Notes £ £ Income and endowments from:	2021 Total £	2020 Total £
Grants Sale of services	1 1	370,330 -	387,115 64,494	757,446 64,494	787,478 157,324
Interest	1	181	-	181	819
Donations,events and CJRS	1	90,948 461,460	302,031 753,640	392,979 1,215,100	94,535
Total Income and endowments					1,040,157
RESOURCES EXPENDED
RaisingFunds Charitable activities	5 3	271,861 189,599	689,470	271,861 879,069	213,492 1,091,727

Total expenditure		461,460	689,470	1,150,930	1,305,219
Surplus 2021 /(Deficit) 2020		(0)	64,170	64,170	(265,062)

Transfers between funds	11	64,170	(64,170)	-	-
NET INCOMING/(OUTGOINGS) RESOURCES FOR THE YEAR		64,170	-	64,170	(265,062)

Reconciliation of funds
Total funds brought forward		140,240	-	140,240	405,302
Balances carried forward at the end of theperiod		204,410	-	204,410	140,240

All income and expenditure derive from continuingactivities

The notes on pages 17 to 24 form part of these financial statements

:	:	:	:
Teens and Toddlers Trading as Power2 Limited(formerly Teens and Toddlers Ltd) BALANCE SHEET YEAR ENDED 28 February 2021 Notes £ £ CURRENT ASSETS Debtors 8 45,814 Cash at bank and in hand 534,282 2021 :				£ £ 50,091 268,053 2020

:		580,095		318,144
CREDITORS:Amounts fallingdue :
within oneyear :	9	273,697		177,904
:
:
NET CURRENT ASSETS :			306,398		140,240
Loans falling due after more than oneyear :	12		101,988
NET ASSETS :			204,410		140,240
:
FUNDS Unrestricted General fund :	11		204,410		140,240
:
:			204,410		140,240

The Financial Statements were approved and authorised for issue by the Board on 25 June 2021.

Signed on behalf of the Board of Trustees

Marc St John (Chair)

25 June 2021

The notes on pages 17 to 24 form part of these financial statements

Teens and Toddlers Trading as Power2 Limited(formerly Teens and Toddlers Ltd) STATEMENT OF CASH FLOWS YEAR ENDED 28 February 2021 2021 Notes £ Cash flow from operatingactivities 17 164,060	Teens and Toddlers Trading as Power2 Limited(formerly Teens and Toddlers Ltd) STATEMENT OF CASH FLOWS YEAR ENDED 28 February 2021 2021 Notes £ Cash flow from operatingactivities 17 164,060	2020 £ (94,300)

Net cash flow from operatingactivities	164,060	(94,300)
Cash flow from investingactivities Interest received	181	819
Loan	101,988
Net cash flow from investingactivities	102,169	819
Net increase /(decrease)in cash and cash equivalents	266,229	(93,481)
Cash and cash equivalents brought forward at 1 March	268,053	361,534

Cash and cash equivalents carried forward at 28 February	534,282	268,053

The notes on pages 17 to 24 form part of these financial statements

Teens and Toddlers Trading as Power2 Ltd (formerly Teens and Toddlers Ltd)

Note 1 Summary of significant accounting policies

(a) General information and basis preparation

Power2 is a charitable company limited by guarantee incorporated in England and Wales. On 9 May 2018 the Charity changed its name to Teens and Toddlers Trading as Power2 Ltd. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 5 of these financial statements. The nature of the charity’s operations and principal activities are to foster and support the education, health, opportunity and development of children and young people. We run programmes where teenagers mentor young children, and build the life skills and self-belief they need to succeed at school, in work and in the community. There have been no changes to the Charity’s objectives during this year.

The charity constitutes a public benefit entity as defined by FRS 102.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011, the companies Act 2006 and UK Generally Accepted Practice.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £1.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

(b) Funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

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

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

(c) Income recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised, the charity will have been notified of the amounts and the settlement date in writing. It there are conditions attached to the donations and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

Donated facilities, assets and professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity, for example the amount the charity would be willing to pay in the open market for such facilities, assets and services. A corresponding amount is recognised in expenditure.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102).

Where practicable, gifts in kind donated for distribution to the beneficiaries of the charity are included in stock and donations in the financial statements upon receipt. If it is impracticable to assess the fair value at receipt or if the costs to undertake such a valuation outweigh any benefits, then the fair value is recognised as a component of donations when it is distributed and an equivalent amount recognised as charitable expenditure.

For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity however it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed.

Grants are accounted for under the accruals model as permitted by FRS102. The deferred element of the grants is included in creditors as deferred income.

Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

Investment income is earned through holding assets for investment purposes. It includes interest and interest income is recognised using the effective interest method and included when receivable.

(d) Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it

is probable that the settlement will be required and that amount of the obligation can be measured reliably. It is categorised under the following headings:

Costs of raising funds includes fundraisers’ salaries and costs associated with applying for funds
Power2 does not capitalise assets with monetary value of less than £1,000. As such, capital purchases of less than this amount are recognised through the Statement of Financial Activities and Income and Expenditure Account
Expenditure on charitable activities includes delivery costs.

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

(e) Support costs allocation

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters. Where support costs cannot be directly attributed to particular headings they have allocated to cost of raising funds and expenditures on charitable activities on a basis consistent with use of the resources. Overheads have been allocated as detailed in note 3.

Fund-raising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.

The analysis of these costs is included in note 5.

(f) Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

(g) Financial Instruments

The charity has only financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at settlement value.

(h) Provisions

Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

(i) Leases

Rentals payable and receivable under operating leases are charged to the SoFA on a straight-line basis over the period of the lease.

(j) Employee pensions and benefits

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. Where employees are informed of redundancies by balance sheet date, provisions are included in the financial statements.

The charity operates a defined contribution pension plan for the benefit of its employees. Contributions are expensed as they become payable in accordance with the rules of the scheme.

(k) Tax

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

(l) Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

(m) Judgements and key sources of estimation uncertainty

The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements:

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material, adjustment to the carrying amounts of assets and liabilities within the next financial year include the valuation of deferred income in creditors. The trustees have reviewed the deferred income and are satisfied that this is valued in accordance with the accounting policies.

Teens and Toddlers Trading as Power2 Limited (formerly Teens and Toddlers Ltd)

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 28 Februar	YEAR ENDED 28 February 2021

1	INCOMING RESOURCES	Unrestricted Funds	Restricted Funds	Total 2021	2020
		£	£	£	£

	Grants	370,330	387,115	757,446	787,478
	Income from commissioned services		64,494	64,494	157,324
	Bank interest receivable	181	-	181	819
	Donations,events and CJRS	90,948	302,031	392,979	94,535
		461,460	753,640	1,215,100	1,040,157

£302,029 was received in the year under the Government's Coronavirus Job Retention Scheme (CJRS) and is included in donations, events and CJRS.

2 RESOURCES EXPENDED

Costs directly attributable to activities	Costs directly attributable to activities	Costs directly attributable to activities
	SalaryCosts		645,771	705,343
	Self Employed facilitators		-	27,222
	Project materials		2,349	10,006
	Other deliverycosts		21,164	18,062
	Postage and Freight		68	132
	Travel		2,243	52,076
	Training QualityAssurance and Accreditation(inc salaries)		1,471	3,380
	Research and Evaluation(inc salaries)		31,707	53,369
	Youth Events(inc salaries)		94,403	66,383
			799,177	935,973
Support costs allocated to activities
	Bank charges		447	479
	Building,and utilitycosts		2,424	12,035
	Equipment hire andpurchase		1,275	770
	Insurance		1,735	1,813
	Recruitment		2,750	25,974
	IT software and web develo	IT software and web development	32,526	28,028
	Legal andprofessional fees		6,328	6,183
	Other		2,688	1,525
	Postage, printingand stationery		1,097	3,141
	Rent and rates		55,570	80,437
	Telephone		13,472	17,679
	Audit		10,960	8,790
			131,273	186,855
Raising Funds
	Salary Costs		217,452	171,197
	Communications and PR		2,606	8,951
	Donor Costs		423	407
	Event Costs		-	1,837
			220,480	182,391

TOTAL RESOURCES EXPENDED			1,150,930	1,305,219

Teens and Toddlers Trading as Power2 Limited (formerly Teens and Toddlers Ltd)

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 28 February 2021

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|||||||| |---|---|---|---|---|---|---| |3|Analysis of Expenditure on charitable activities| |Activities|Grant|Costs directly| |undertaken|funded|attributable to|Support|Total 2021|2020| |costs| |directly|Activities|activities| |Costs directly attributable to activities| |Delivery|279,126|462,263|741,389|100,427|841,816|1,029,246| |Training and evaluation|12,352|20,456|32,809|4,444|37,253|62,482| |291,478|482,720|774,198|104,871|879,069|1,091,727| |4|Allocation of Support costs| |Training| |Raising| |Funds|Delivery|and|Total 2021|2020| |Evaluation| |Governance - audit|2,589|8,016|355|10,960|8,790| |Office costs|14,848|45,978|2,035|62,861|101,425| |Information Technology|7,294|22,587|1,000|30,881|24,468| |Other|7,701|23,846|1,055|32,602|23,606| |32,432|100,427|4,444|137,304|158,289| |Fees paid to the auditors for the audit of the Charity's annual accounts £10,960 (2020: £8,790).| |5|Raising Funds|2021|2020| |£|£| |Costs directly attributable|239,428|187,601| |Support costs|32,432|25,891| |271,861|213,492| |6|Staff costs and employee benefits| |2021|2020| |£|£| |Wages and Salaries|877,028|883,808| |Social Security Costs|76,593|81,382| |Defined contribution pension costs|35,712|33,993| |Total staff wages and salaries|989,333|999,183| |In the period £29,401 of redundancy costs were incurred (2020 nil). These costs are included in salaries. There were no| |outstandong balances at 28 February 2021| |The emoluments of the higher paid employees fell within the ranges indicated below. These emoluments include salary,| |and other benefits but exclude pension contributions.| |2021|2020| |£60,000 to £69,999|2|2| |£70,000 to £79,999| |£80,000 to £89,999|1| |Retirement benefits are accruing under defined contribution pension schemes in respect of these employees. Contributions| |paid amounted to ££9,378 (2020: £4,812)| |The average number of employees, calculated on a full-time equivalent basis, analysed by function was:| |2021|2020| |Raising Funds|4.7|4.4| |Charitable activities|21.2|23.7| |25.9|28.1|

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The key management personnel of the charity comprised the trustees of the charity, who received no remuneration, and the Chief Executive and senior management team. Their combined salaries and pensions totalled £222,941 (2020: £198,176)

Teens and Toddlers Trading as Power2 Limited(formerly Teens and Toddlers Ltd)	Teens and Toddlers Trading as Power2 Limited(formerly Teens and Toddlers Ltd)

*NOTES TO THE FINANCIAL STATEMENTS(continued)***

YEAR ENDED 298 February 2021


7	DIRECTORS' AND OFFICERS' REMUNERATION AND EXPENSES

	No trustee received remuneration or expenses from the Charityfor their services as a trustee(2020: none)


8	DEBTORS	2021	2020
		£	£

	Trade debtors	5,785	33,405
	Other debtors	3,410	5,901
	Prepayments and accrued income	36,619	10,785
		45,814	50,091

9	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
		2021	2020
		£	£

	Trade creditors	18,573	34,851
	Accruals and provisions	33,121	32,642
	Other taxation and social security	32,670	27,689
	Deferred income	181,322	82,722
	Other loans	8,012
		273,697	177,904
	The amount of £8,012 represents a Coronavirus Business Interruption Loan, secured by the government, repayable by instalments commencing in		The amount of £8,012 represents a Coronavirus Business Interruption Loan, secured by the government, repayable by instalments commencing in
	November 2021 and ending in October 2025.

10	Deferred Income

		2021	2020
	At start of period (1 March)	82,722	35,150
	Released to income during the year	(82,722)	(35,150)
	Additions during the year	181,322	82,722
	At end date 28 February	181,322	82,722

	Deferred income comprises grant income received in advance of delivery.

11	RESTRICTED & UNRESTRICTED FUNDS

	Opening Balance 1 March 2020	Net Incoming resources	Charitable Expenditure	Transfers Between Funds	Closing Balance 28 February 2021

Unrestricted Funds	140,240	461,460	(461,460)	64,170	204,410

Restricted Funds	-	753,640	(689,470)	(64,170)	-

Total Reserves - all unrestricted	140,240	1,215,100	(1,150,930)	-	204,410

All of the restricted funds represent monies received that have been given specifically towards the advancement of Power2 programmes.

Transfers between funds

All surpluses on grants relating to projects in specific areas that have come to an end and where all conditions in respect of the grant have been met have been transferred to unrestricted funds. Grants where there are no longer any conditions for their specific use have been transferred to unrestricted funds accordingly. Deficits on completed projects are funded by transfers from unrestricted funds.

Analysis of net assets between funds
	Unrestricted	Restricted	Total 2021	2020
Cash at bank and in hand	352,960	181,322	534,282	268,053
Deferred income	-	(181,322)	(181,322)	(82,722)
Other net current assets	(148,550)		(148,550)	(310,153)
Total	204,410	-	204,410	(124,822)


		Operating cash	Coronavirus
Analysis of Net Debt	At 1 March 2020	flow plus bank	Business	At 28 Feb 2021
		interest	Interruption Loan

Cash and Cash Equivalents	268,053	164,241	101,988	534,282

Total net debt	268,053	164,241	101,988	534,282

Teens and Toddlers Trading as Power2 Limited (formerly Teens and Toddlers Ltd)

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 28 February 2021

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||||| |---|---|---|---| |12|CREDITORS DUE AFTER MORE THAN ONE YEAR|2021|2020| |£|£| |Other loans|101,988|-| |The amount of £101,988 represents a Coronavirus Business Interruption Loan, secured by the government, repayable by| |instalments commencing in November 2021 and ending in October 2025.|

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13 RELATED PARTY TRANSACTIONS

Certain IT costs for shared facilities were recharged by the charity to the Psychosynthesis Trust. This is a non-related charity which shares a number of facilities with Power2 on a commercial basis.

Power2 rents its registered office from Psychosynthesis Trust under an arms length contract and shares some services on a commercial basis. During the previous financial year to February 2020 pension contributions of £15,446 were paid on behalf of the charity Psychosynthesis Trust, by Power2, into a combined work place pension scheme. These amounts were reimbursed by the Psychosynthesis Trust. This is an administrative arrangement and Power 2 received no benefit from these transactions. This pension arrangement was discontinued in January 2020, in the previous financial period. At the balance sheet date no amounts were payable into the pension fund by Power2 under this arrangement (2020 : nil).

A number of the trustees of the charity are also involved as supporters and trustees of other charities and not for profit organisations which may provide grants to Power2. These trustees do not participate in any decisions in relation to these transactions.

14 COMMITMENTS

OPERATING LEASES

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||||| |---|---|---|---| |At 28 February 2021 the Charity had the following annual commitments under non-cancellable operating leases:| |Land &|Equipment,| |Loan|Land &| |Buildings| |Buildings| |2021|2021|2020| |£|£|£| |Operating leases which expire:| |Within one year|8,012|2,000|60,061| |Within one to two years|25,279|2,400| |Within two to five years|76,709| |110,000|2,000|62,461|

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Operating lease costs in the year to 28 February 2021 were £10,502 (2020: £13,743)

15 COMPANY LIMITED BY GUARANTEE Each member of the Charity has guaranteed to contribute up to £1 in the event of a winding up. 16 FUTURE INCOME AND THE CURRENT ECONOMIC CLIMATE

The Trustees consider that the income stream of the Charity will continue as forecast and unplanned expenditure would be minimal. The going concern basis is therefore considered to be appropriate as a basis of accounting.

17 RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERASTING ACTIVITIES

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|||| |---|---|---| |2021|2020| |£|£| |Net income/expenditure for the year|64,170|(265,062)| |Interest receivable|(181)|(819)| |Operating income|63,990|(265,881)| |Decrease in debtors|4,277|101,569| |Increase in creditors|95,793|70,012| |Net cash flow from operating activities|164,060|(94,300)| |18|Related party note| |During the year unconditional donations were received from one trustee totalling £50,000,|(2020 £50,150 from 2 trustees).|

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