Power2 Ltd
## FINANCIAL STATEMENTS
## 12 MONTHS ENDED 31 JULY 2024
REGISTERED CHARITY NUMBER: 1099782 (England and Wales)
COMPANY NUMBER: 4001308
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## **Power2 Ltd**
These financial statements cover the 12-month period from 1 August 2023 to 31 July 2024. Last year we changed our accounting period and so the comparator is the 17 months to 31 July 2023. We made this change to match the school year which determines our annual work pattern and our impact reporting. This change has brought our financial and impact reporting together with our delivery calendar, thus making it easier for us to present our work to funders and commissioners.
2023-24 was a year of significant growth for Power2, with our revenue nearly doubling compared to the last 12-month accounting period (to February 2022)- £2,359,821 vs £1,203,150. We worked with nearly 1,300 children and young people, compared to just over 1,000 the previous year; our reach hasn’t increased in proportion to our income because we are increasingly working with our programme participants more intensively and for a longer period, and we expect this to continue in the future as we work with those in greater need. 25% of those we worked with were careexperienced or supported by a social worker. We know that this group is amongst the most vulnerable in society.
We finished the first year of our five-year strategy well on the way to achieving our ambitious growth plans. Our flagship group programme, Teens and Toddlers, continues to be in high demand from schools and we were delighted to be funded by the npower Business Solutions Foundation to take it to Leeds in 2024/25. We were also delighted to be funded by the Garfield Weston Foundation and the National Lottery Community Fund to scale up delivery of our Power2 Thrive programme in London and the North West, and by the Prudence Trust to carry out an intensive evaluation of its impact. Our Power2 Rediscover intensive 1:1 approach continues to be widely used, both as our own 10-week programme being delivered in schools and as an intervention commissioned by local authorities where we provide support for up to three years. The needs and challenges of these participants have increased significantly and we’re now working with more children and young people at crisis point, whether that’s involvement in child criminal exploitation or with emotionally based school avoidance. We’re delighted that all commissioners we’ve worked with so far have recommissioned us as a provider.
This commissioned work has led to an increase in the size of the staff team, from 51 people to 62. Power2 is nothing without its people, and we are emphasising staff wellbeing and development in our new strategy. We’re proud that so many of the team has lived experience of the issues we seek to address, and we’ll continue to centre this in our recruitment and communications – as well as ensuring we hear the voices of the experts-through-experience who are our programme participants.
We’ve continued to raise the profile of Power2 and held two successful externally-facing events; a dinner at the House of Lords for current and potential major donors, hosted by our Ambassador Lord Knight of Weymouth, and the launch of our Impact Report. We were delighted as part of this to highlight our Social Return on Investment; for every £1 invested in us we create value in society of £17.82.
We also refreshed our brand, vision and values, to ensure they are fit for purpose as our work, and the needs of the children and young people we serve, changes. Our new vision is of a world where all children and young people – no matter their background and challenges – can thrive and reach
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their full potential. We work to achieve this vision by supporting children and young people experiencing vulnerabilities and disadvantages to improve their wellbeing so they can thrive and reach their full potential. We do this by helping them identify their strengths, address their challenges and develop their skills. Our values define who we are and how we behave. They are the fundamental beliefs of Power2. We are brave, we are expert, and we are passionate.
Our focus for the next year – year 2 of our five-year strategy – is threefold: to increase the number of schools we work with, to increase awareness of our work and our impact, and to continue to make Power2 a great place to work. I’m confident that we can achieve these aims and improve outcomes for those we work with this year.
The work we do at Power2 changes lives. I’m incredibly proud of the staff team, their skill and determination in making a difference to the lives of our programme participants and, above all, the children and young people we work with and everything they have achieved.
Julie Randles Chief Executive **Power2 Ltd**
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## **Report of the Trustees for the 12 Months ending 31 July 2024**
The Trustees are pleased to present their Trustees’ Report together with the audited financial statements of the charity for the 12 months ending 31 July 2024, 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. Among our programmes are the award-winning Teens and Toddlers programme and Power2 Rediscover, a programme developed during COVID when group work in schools was not possible. 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 period to July 2024, we worked in 24 local authorities and 102 secondary schools.
## **Financial review**
Power2 had a surplus of £90,159 for the 12 months to July 2024. For the 17 months to July 2023 our audited surplus was £67,009.
## **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. Reserves held at 31 July 2024 are £456,713 (2023: £366,554). The Trustees are satisfied with the level of unrestricted reserves. There were unrestricted reserves of £256,340 at 31 July 2024.
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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 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. The reserves policy is regularly reviewed by the Board.
**Reference and administrative details** Charity number: 1099782 Company number: 4001308 Principal & Registered Office: 26A Warrington Street, Ashton-under-Lyne, Tameside, OL6 6AS
## **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|Nicci Russell (resigned 10 June 2024)|
|---|---|
|Interim Chair|Lauren Livingston (appointed 13 December 2024)|
|Trustees|Alex Reppold (resigned 15 April 2024)|
||Amira Shariif Ali|
||Emily Wells (appointed 20 September 2024)|
||Gemma Carroll|
||James Potter|
||Juliette Wilson-Thomas (appointed 20 September 2024)|
||Lara Norris (appointed 2 October 2024)|
||Michael Hartig (appointed 2 October 2024)|
||Mohamed Abdallah (resigned 13 December 2023)|
||Nina Ma (resigned 29 July 2024)|
||Reena Gogna|
||Shazia Latif Book (appointed 12 October 2024)|
||Troels Henrikson (appointed 20 September 2024)|
||Wendy Doherty (appointed 20 September 2024, resigned 19 January|
||2025)|
|Company Secretary|Julie Randles|
|Chief Executive|Julie Randles|
|Auditors|MHA|
||910 The Crescent, Colchester Business Park, Colchester, Essex, CO4|
||9YQ|
|Bankers|Unity Trust Bank PO Box 7193, Planetary Road, Willenhall, WV1 9DG|
||Barclays Bank plc, Borough High Street, London, SE1 1LY. accounts|
||closed February 2024|
Senior Management Team Paul Hopkins - Finance Director
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Samantha Marcus - Director of Services Jennifer Smith – Head of Operations Sam Broderick – Head of Fundraising Danielle Garwood – Head of Brand, Marketing and Comms
## **Fundraising**
The Charity does not use any professional fundraisers other than those individuals employed by the Charity. During the financial period 2023-24 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.
We would like to thank all our funders, some of whom are listed below. Other not listed prefer to remain anonymous.
Action Together Alex Ferry Foundation BBC Children in Need Breathe HR Centre for Social Justice Charles and Elsie Sykes Trust CVC Foundation Derwent London Community Fund Drapers' Charitable Fund Foux Foundation Garfield Weston Foundation Heathrow Community Trust John Lyon’s Charity Leathersellers' Foundation Masonic Charitable Foundation Moorhouse Consulting Newcomen Collett Educational Foundation North Central and East London CAMHS Provider Collaborative (NCEL) North West Young People's Development Trust npower Business Solutions Foundation Pilkington Charities' Fund Progress Foundation Prudence Trust Raymond James Private Capital Advisory St James’s Place Charitable Foundation St Olave's Foundation Fund Sir Bernard and Lady Schreier Foundation Sir Donald and Lady Edna Wilson Charitable Trust Social Investment Business Somers Town Big Local Team London Bridge
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Tesco Community Grants The #IWill fund partners: The National Lottery Community Fund, DCMS The Childhood Trust The Clifford Chance Foundation The Ernest Ingham Charitable Trust The Fair Education Alliance & Credit Suisse The Mercers' Charitable Foundation The National Lottery Community Fund The Peter Stebbings Memorial Charity The Rayne Foundation The Topinambour Trust The Walcot Foundation The Warburtons Foundation Transport for Sick Children – HMR Children’s Fund UCB Community Health Fund, managed by the King Baudouin Foundation UK Youth / Youth Endowment Fund United St Saviour's Charity Waverton Investment Management Weil, Gotshal and Manges LLP (London) Westminster Foundation William Wates Memorial Trust Womble Bond Dickinson
## **Structure, Governance and Management**
## _**Governing Document**_
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**_
New trustees receive an induction pack and undergo orientation 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 they meet key employees and other trustees. The intention is also that they visit one of our programmes in action.
## _**Organisation**_
The board of trustees administers the charity. The Board normally meets five times per year and during the period covered by these accounts there were sub-committees for finance and risk, (Finance and Risk Committee), programmes and impact measurement (Programmes and Impact Committee), and safeguarding (Safeguarding 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). The delegated authority scheme is agreed by the Board and reviewed every 3 years.
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## _**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 the Chief Executive is reviewed annually by the Remuneration Committee (2 trustees) with approval by the Trustee Board 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.
- A regular 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 3 trustees which meets separately from the main Board to review financial forecast in detail as well as other financial risks.
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;
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- 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
James Potter, Finance Committee Chair
By order of the Board of Trustees
Date 31 March 2025
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**Independent Auditor’s Report to the Members of Power2 Ltd**
## **Opinion**
I have audited the financial statements of Power2 Limited (the 'charitable company') for the year ended 31 July 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.
This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
In my opinion the financial statements:
give a true and fair view of the state of the charity's affairs as at 31 July 2024 and of its incoming resources and application of resources 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 Charities Act 2011.
## **Basis for opinion**
I conducted my audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. My responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of my report. I am independent of the charity in accordance with the ethical requirements that are relevant to my audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I
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believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, I have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work I have performed, I 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.
My responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the Annual Report other than the financial statements and my Auditor's Report thereon. The Trustees are responsible for the other information contained within the Annual Report. My opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in my report, I do not express any form of assurance conclusion thereon. My responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact.
I have nothing to report in this regard.
## **Matters on which we are required to report by exception**
I have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires me to report to you if, in my opinion:
the information given in the Trustees' Report is inconsistent in any material respect with the financial statements; or
sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or I have not received all the information and explanations I require for my audit.
## **Responsibilities of trustees**
As explained more fully in the Trustees' Responsibilities Statement, the Trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
I have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
My 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 my 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. I design procedures in line with my responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which my procedures are capable of detecting irregularities, including fraud is detailed below:
Enquiry of management 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 reviewing accounting estimates for bias;
Reviewing minutes of meetings of those charged with governance;
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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 I 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 I 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 my 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 my Auditor's Report.
## **Use of my report**
This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My audit work has been undertaken so that I might state to the charity's trustees those matters I am required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and its trustees, as a body, for my audit work, for this report, or for the opinions I have formed.
## **Cara Miller ACCA on behalf of MHA**
Colchester, United Kingdom
Date: 24 April 2025
MHA is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)
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## **Power 2 Ltd**
## **STATEMENT OF FINANCIAL ACTIVITIES AND INCOME AND EXPENDITURE ACCOUNT**
||||**12 Months Ending July 2024**|**12 Months Ending July 2024**|**12 Months Ending July 2024**||**17 Months**
**to July 2023**|
|---|---|---|---|---|---|---|---|
||||**Unrestricted**|**Restricted**||||
||||**Funds**|**Funds**|**Total**||Total|
||**Notes**||**£**|**£**|**£**||£|
|Income and endowments from:||||||||
|||||||||
|Grants|**1**||240,454|683,439|923,893||1,204,259|
|Income from commissioned services|**1**||1,335,406|-|1,335,406||1,022,435|
|Bank interest receivable|**1**||3,986|-|3,986||740|
|Donations and events|**1**||96,536|-|96,536||86,443|
|**Total Income and endowments**|||**1,676,382**|**683,439**|**2,359,821**||**2,313,877**|
|||||||||
|**RESOURCES EXPENDED**||||||||
|Raising Funds|**5**||231,094|-|231,094||354,997|
|Charitable activities|**3**||1,436,102|602,466|2,038,568||1,891,871|
|||||||||
|**Total expenditure**|||**1,667,196**|**602,466**|**2,269,662**||**2,246,868**|
|||||||||
|**Surplus**|||**9,186**|**80,973**|**90,159**||**67,009**|
|||||||||
|**Transfers between funds**|**11**||-|-|-||-|
|||||||||
|**NET INCOMING/(OUTGOINGS) RESOURCES FOR THE YEAR**|||**9,186**|**80,973**|**90,159**||**67,009**|
|||||||||
|Reconciliation of funds||||||||
|Total funds brought forward|||247,154|119,400|366,554||299,545|
|||||||||
|**Balances carried forward at the end of theperiod**|||**256,340**|**200,373**|**456,713**||**366,554**|
|||||||||
|All income and expenditure derive from continuing activities||||||||
The notes on pages 17 to 25 form part of these financial statements
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## **Power2 Ltd**
## **Balance Sheet for the 12 Months Ending 31 July 2024**
||||**At 31 July 2024**|**At 31 July 2024**|**At 31 July 2024**||**At 31 July 2023**|**At 31 July 2023**|**At 31 July 2023**|
|---|---|---|---|---|---|---|---|---|---|
||**Notes**||**£**||**£**||£||£|
|||||||||||
|**FIXED ASSETS**||||||||||
|Computer equipment|**7**||||23,084||||23,192|
|||||||||||
|**CURRENT ASSETS**||||||||||
|Debtors|**8**||336,462||||179,749|||
|Cash at bank and in hand|||541,248||||429,372|||
|||||||||||
||||877,710||||609,121|||
|||||||||||
|**CREDITORS:**Amounts falling due||||||||||
|within one year|**9**||210,931||||228,033|||
|||||||||||
|||||||||||
|**NET CURRENT ASSETS**|||||666,780||||381,088|
|||||||||||
|**Loans falling due after more than one year**|**12**||||233,151||||37,726|
|||||||||||
|**NET ASSETS**|||||**456,713**||||**366,554**|
|||||||||||
|||||||||||
|||||||||||
|**FUNDS**||||||||||
|||||||||||
|Unrestricted General fund|**11**||||256,340||||247,154|
|||||||||||
|Restricted|||||200,373||||119,400|
|||||||||||
|**TOTAL FUNDS**|||||**456,713**||||**366,554**|
The Financial Statements were approved and authorised for issue by the Board on 31 March 2025.
Signed on behalf of the Board of Trustees
James Potter
Chair of Finance Committee and Treasurer
31 March 2025
The notes on pages 17 to 25 form part of these financial statements
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## **Power2 Ltd**
## **Statement of Cash Flows for the 12 Months Ending 31 July 2024**
||||**12 Months to**
**July 2024**|**12 Months to**|**17 Months to**
**July 2023**|
|---|---|---|---|---|---|
||**Notes**||**£**||**£**|
|||||||
|Cash flow from operating activities|||90,159||67,009|
|||||||
|_Adjustments for:_||||||
|Depreciation|||11,856||6,100|
|Interest paid|||11,206||8,776|
|Interest received|||(3,986)||(740)|
|Increase in debtors|||(156,713)||(135,597)|
|Increase in creditors|||(31,861)||136,750|
|||||||
|**Net cash flow from operating activities**|||**(79,339)**||**82,298**|
|||||||
|Cash flow from investing activities||||||
|Purchase of tangible assets|||(11,748)||(29,292)|
|Interest received|||3,986||740|
|||||||
|**Net cash flow from investing activities**|||**(7,762)**||**(28,552)**|
|||||||
|**Cash flows from financing activities**||||||
|New loan advance|||236,900||-|
|Repayment of loans|||(26,717)||(36,270)|
|Interest paid|||(11,206)||(8,876)|
|**Net cash from financing activities**|||**198,977**||**(45,146)**|
|||||||
|**Net increase /(decrease) in cash and cash equivalents**|||**111,876**||**8,600**|
|||||||
|||||||
|Cash and cash equivalents brought forward at beginning of period|||429,372||420,772|
|||||||
|**Cash and cash equivalents carried forward at end ofperiod**|||**541,248**||**429,372**|
The notes on pages 17 to 25 form part of these financial statements
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## **Power2 Ltd**
## **Note 1 Summary of significant accounting policies**
## **(a) General information and basis of preparation**
Power2 is a charitable company limited by guarantee incorporated in England and Wales. 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.
Last year the Trustees have changed the financial year end for the Company from 28 February to 31 July. These financial statements have been prepared for the 12 month period from 1 August 2023 to 31 July 2024, this being 366 days. The previous financial statements were prepared for the period from 1 March 2022 to 31 July 2023, this being 518 days. The financial year end was changed in order to synchronise with the school year, which is the basis for the Company’s work schedule and impact reporting.
## **(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.
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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.
18
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 capitalises computer equipment with monetary value of greater than £500. Capitalised assets are written off over 3 years on a straight line basis. 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 4.
## **(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.
19
## **(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.
20
## **Power2 Ltd**
## **Notes to the Financial Statements for the 12 Months to 31 July 2024**
|**1**||**INCOMING RESOURCES**|**Unrestricted**
**Funds**|**Restricted**
**Funds**|**12 Months to**
**31 July 2024**|**12 Months to**|**17 Months**
**to 31 July**
**2023**|
|---|---|---|---|---|---|---|---|
||||**£**|**£**|**£**||**£**|
|||||||||
|||Grants|240,454|683,439|923,893||1,204,259|
|||Income from commissioned services|1,335,406||1,335,406||1,022,435|
|||Bank interest receivable|3,986|-|3,986||740|
|||Donations and events|96,536||96,536||86,443|
||||**1,676,382**|**683,439**|**2,359,821**||**2,313,877**|
|||||||||
|||In the prior period income of £2,313,877 comprised £145,527 unrestricted and £2,168,349 restricted.||||||
|||||||||
|**2 **|**RESOURCES EXPENDED**|||||||
|||||||||
|**Costs directly attributable to activities**||||||||
||Salary costs||||1,498,604||1,408,275|
||Project materials||||35,778||19,243|
||Other delivery costs||||134,956||103,618|
||Postage and freight||||933||580|
||Travel||||64,236||65,096|
||Training Quality Assurance and Accreditation (inc salaries)||||5,020||6,399|
||Research and Evaluation (inc salaries)||||74,186||100,747|
||||||**1,813,714**||**1,703,958**|
|*****|Prior period adjusted to reflect current classification methodology, No change to total figures|||||||
|||||||||
|**Support costs allocated to activities**||||||||
||Bank charges and loan interest||||11,206||8,776|
||Building, and utility costs||||5,732||6,010|
||Equipment hire and purchase||||405||1,490|
||Insurance||||3,698||2,839|
||Recruitment||||2,408||16,191|
||IT software and web development||||71,836||55,480|
||Legal and professional fees||||22,038||14,120|
||Other||||3,020||4,020|
||Postage, printing and stationery||||3,467||7,364|
||Rent and rates||||53,953||49,171|
||Telephone||||32,058||24,815|
||Audit||||18,528||12,228|
||Depreciation||||11,856||6,100|
||||||**240,205**||**208,606**|
|||||||||
|**Total Cost of Charitable Activities**|||||**2,053,919**||**1,912,564**|
|||||||||
|**Raising Funds**||||||||
||Salary costs||||210,648||328,492|
||Communications and PR||||5,095||5,506|
||Donor Costs||||-||306|
||||||**215,743**||**334,304**|
|||||||||
|**TOTAL RESOURCES EXPENDED**|||||**2,269,662**||**2,246,868**|
21
## **Power2 Ltd**
## **Notes to the Financial Statements for the 12 Months to 31 July 2024**
|||**Analysis of Expenditure on charitable**|||||||
|---|---|---|---|---|---|---|---|---|
|**3**||**activities**|||||||
|||||**Costs directly**
**attributable**
**to activities**|**Costs directly**
**Support**
**costs**|**12 Months**
**to July 2024**||**17 Months to**
**July 2023**|
||||||||||
|||**Costs directly attributable to activities**|||||||
|||Delivery||1,917,632|120,937|2,038,569||1,891,871|
||||||||||
|||||**1,917,632**|**120,937**|**2,038,569**||**1,891,871**|
||||||||||
|**4**||**Allocation of Support costs**|||||||
|||||**Raising**
**Funds**|**Delivery**|**12 Months**
**to July 2024**||**17 Months to**
**July 2023**|
|||Governance-audit||2,470|19,462|21,932||12,228|
|||Office costs inc Rent||3,737|29,441|33,178||59,000|
|||Information Technology||7,229|56,953|64,182||47,690|
|||Other||1,914|15,081|16,995||0|
|||||**15,350**|**120,937**|**136,287**||**118,918**|
||||||||||
||Fees paid to the auditors for the audit of the Charity's annual accounts £18,528 (2023: £12,228).||||||||
||||||||||
|||||||**12 Months**||**17 Months to**|
|**5**||**Raising Funds**||||**to July 2024**||**July 2023**|
|||||||**£**||£|
|||Costs directly attributable||||215,744||334,304|
|||Support costs||||15,350||20,693|
|||||||**231,094**||**354,997**|
||||||||||
|**6**|**Staff costs and employee benefits**||||||||
|||||||**12 Months**||**17 Months to**|
|||||||**to July 2024**||**July 2023**|
|||||||**£**||£|
||Wages and Salaries|||||1,551,776||1,588,830|
||Social Security Costs|||||132,653||142,824|
||Defined contribution pension costs|||||99,010||105,761|
||**Total staff wages and salaries**|||||**1,783,439**||**1,837,415**|
||In the|In theperiod redundancycosts were incurred of £16,737(2023: £7,420). These costs are included in salaries.|||||||
The emoluments of the higher paid employees fell within the ranges indicated below. These emoluments include gross salary and exclude pension contributions.
||||||**12 Months**|**12 Months**||**17 Months to**|
|---|---|---|---|---|---|---|---|---|
||||||**to July 2024**|**2024**||**July 2023**|
||||||||||
|£60,000 to £69,999||||||||1|
|£70,000 to £79,999|||||||||
|£80,000 to £89,999|||||1|||1|
|£90,000 to £109,999|||||||||
|£110,000 to £119,999||||||||1|
||||||||||
|During the 12 months accounting period staff over £60,000 received pension benefts of £18,275|||||||||
|The average number of employees, calculated on a full-time equivalent basis, and headcount basis, analysed by function was:|||||||||
||||||||||
||||||**Calculated on a Head Count basis**||**Calculated on a Head Count basis**||
||||||**12 Months**|||**17 Months to**|
||||||**to July 2024**|**2024**||**July 2023**|
|Raising Funds||||||4.3||5.4|
|Charitable activities||||||54.5||37.5|
|||||||**58.8**||**42.9**|
Key management personel of the charity comprised the trustees of the charity who received no remuneration, and the Chief Executive and senior management team (6 staff). Their combined salaries and pensions totalled £303,492 for the 12 month period ( 2023 - £268,846).
22
## **Power2 Ltd**
## **Notes to the Financial Statements for the 12 Months to 31 July 2024**
|**7**|**FIXED ASSETS - COMPUTER EQUIPMENT**|||||**£**|
|---|---|---|---|---|---|---|
||||||||
||Cost or Valuation||||||
||Brought forward 1 August 2023|||||29,292|
||Additions in the period|||||11,748|
||**Carried forward 31 July 2024**|||||**41,040**|
||||||||
||**Depreciation**||||||
||Brought forward 1 August 2023|||||6,100|
||Additions in the period|||||11,856|
||**Carried forward 31 July 2024**|||||**17,956**|
||||||||
||**Net book value**|b/f 1 August 2023||||**23,192**|
||||||||
|||c/f 31 July 2024||||**23,084**|
||||||||
|**8**|**DEBTORS**|||**At 31 July 2024**||**At 31 July 2023**|
|||||**£**||£|
||||||||
||Trade debtors|||249,696||27,499|
||Other debtors|||1,839||2,430|
||Prepayments and accrued income|||84,927||149,820|
|||||336,462||179,749|
||||||||
|**9**|**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**||||||
|||||**At 31 July 2024**||**At 31 July 2023**|
|||||**£**||£|
||||||||
||Trade creditors|||26,220||8,629|
||Accruals and provisions|||43,221||17,981|
||Other taxation and social security|||41,081||39,373|
||Deferred income|||57,760||134,159|
||Other loans|||42,649||27,891|
|||||**210,931**||**228,033**|
||The amount of £42,649 includes a Coronavirus Business Interruption Loan (£29,915), secured by the government, repayable by
instalments commencing in November 2021 and ending in October 2025 (2023 £27,891).||||||
||||||||
|**10 **|**Deferred Income**||||||
||||||||
|||||**At 31 July 2024**||**At 31 July 2023**|
||At start of period|||134,159||10,195|
||Released to income during the year|||(134,159)||(10,195)|
||Additions during the year|||57,760||134,159|
||Carriedforward 31July|||**57,760**||134,159|
||||||||
||Deferred income comprises income received in advance of delivery.||||||
23
## **Power2 Ltd**
## **Notes to the Financial Statements for the 12 Months to 31 July 2024**
## **11 RESTRICTED & UNRESTRICTED FUNDS**
|**Fund Name**|**Fund Balances b/f**|**Income**|**Expenditure**|**Transfers**||**Fund Balances**
**c/f**|
|---|---|---|---|---|---|---|
||**£**|**£**|**£**|**£**||**£**|
|Power2 Advance London|119,400|94,339|(154,412)||-|59,327|
|London Individual support|-|55,125|(55,125)||-|-|
|Power2 Thrive|-|110,000|(110,000)||-|-|
|Business Development|-|56,100|(56,100)||-|-|
|Business Solutions Fund|-|62,829|(17,356)||-|45,473|
|Research Fund|-|40,286|(11,129)||-|29,157|
|Other Restricted Funds|-|264,760|(198,344)||-|66,416|
|**Total Restricted Funds**|**119,400**|**683,439**|**(602,466)**||**-**|**200,373**|
||||||||
|**Total Unrestricted Funds**|247,154|1,676,382|(1,667,196)||-|256,340|
||||||||
|**Total All Funds**|**366,554**|**2,359,821**|**(2,269,662)**||**-**|**456,713**|
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**|**At 31 July 2024**|**At 31 July 2024**|**At 31 July 2023**|
|---|---|---|---|---|---|---|
|Fixed assets||23,084|||23,084|23,192|
|Current assets||677,338|200,373||877,711|609,121|
|Creditors||(210,931)|||(210,931)|(228,033)|
|Long term creditors||(233,151)|||(233,151)|(37,726)|
|**Total**||**256,340**|**200,373**||**456,713**|**366,554**|
## **11a RESTRICTED & UNRESTRICTED FUNDS for the 17 MONTH PERIOD ENDING 31 JULY 2023**
||**Opening Balance 1**|**Net Incoming**|**Charitable**|**Transfers**|**Closing Balance**|
|---|---|---|---|---|---|
||**March 2022**|**resources**|**Expenditure**|**Between Funds**|**31 July 2023**|
|||||||
|Unrestricted Funds|252,541|145,527|(145,527)|(5,387)|247,154|
|Restricted Funds|47,004|2,168,350|(2,101,341)|5,387|119,400|
|||||||
|**Total Reserves**|**299,545**|**2,313,877**|**(2,246,868)**|**-**|**366,554**|
24
## **Power2 Ltd**
## **Notes to the Financial Statements for the 12 Months to 31 July 2024**
|**12**|**LOANS**|||||**At 31 July 2024**|**At 31 July 2023**|
|---|---|---|---|---|---|---|---|
|||||||**£**|**£**|
|||||||||
||Amounts falling due within 1 year|||||42,648|27,891|
||Amounts falling due 1-2 years|||||60,906|29,915|
||Amounts falling due 2-5 years|||||172,245|7,811|
|||||||||
||Other loans|||||**275,799**|**65,617**|
|||||||||
||Amounts fallingdue afteryear 1(£60,906plus £172,245)amount to £233,150 as disclosed in the Balance sheet onpage 15|||||||
|||||||||
|**13**|**RELATED PARTY TRANSACTIONS**|||||||
|||||||||
||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**|||||||
|||||||||
||OPERATINGLEASES|||||||
|||||||||
||At 31July2024the Charityhad thefollowing annualcommitments under non-cancellable operatingleases:|||||||
|||||||**Rent &**
**Equipment**|**Rent &**
**Equipment**|
|||||||**At 31 July 2024**|**At 31 July 2023**|
|||||||**£**||
||Operating leases which expire:|||||||
||Within one year|||||44,498|30,727|
||Within one to two years|||||21,408|23,986|
||Within two to five years|||||8,600|2,205|
|||||||**74,506**|**56,918**|
|||||||||
||Operating lease costs in the 12 months to 31 July 2024 were £29,389 (2023: £22,119)|||||||
|||||||||
|**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**|**Analysis of net debt**||||**At 31 July 2023**|**Cash Flow**|**At 31 July 2024**|
|||||||||
||Cash at bank||||429,372|111,876|541,248|
||Debt falling due within one year||||(27,891)|(14,757)|(42,648)|
||Debt falling due within one year
Debt falling due within more than one year||||(27,891)
(37,726)|(14,757)
(195,425)|(42,648)
(233,151)|
||Debt falling due within more than one year||||(37,726)|(195,425)|(233,151)|
||||||**363,755**|**(98,306)**|**265,449**|
|||||||||
|||||||||
|**18**|**DIRECTORS' ANDOFFICERS' REMUNERATION AND EXPENSES**|||||||
||During the year ending 31 July 2024, no Trustee expenses have been incurred (2023:Nil)|||||||
25