Charity Registration in England and Wales No. 1108210 Scotland Registration No. SC044207 Company Registration No. (England and Wales) 05331412 THE SHEILA MCKECHNIE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) UNAUDITED TRUSTEES. REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021
THE SHEILA MCKECHNIE FOUNDATION A COMPANY LIMITED BY GUARANTEEI CONTENTS Page Legal and Admini$lrative Information Trustees, Report Independent Examinerfs report 15 Stslement of Financial A¢livitie$ 17 Balan¢e Sheet 18 Notes to the A¢¢ounts 19
THE SHEILA MCKECHNIE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE INFORMATION Trustees Peter Moorey (interim Chairl Stuart Davis (Treasurer) Cecilie Heslbaek Rhea Stevens Bushra Ahmed (Appointed 16 December 20201 Kimberley Garande (Appointed 16 December 20201 Patrick Sleene (Appointed 16 December 20201 Zainab Ali Khan (Appointed 16 Dember 20201 Deborah Doane (Appointed 16 Dember 20201 Sarah Woolon IResigned 16 February 20211 Moira Fraser-Pearce Iresigned 24 February 20211 Richard Lane (Appointed 7 April 20211 Kierra Box (Resigned 16 December 20201 Louise Hanson (Resigned 16 December 2020} John Rudkin (Resigned 16 December 20201 Alastair Wilson (Resigned 16 December 20201 Principal address and Registered Office The Foundry 17 Oval Way London SE115RR Independent Examiner D J Bond FCA 8rebners Chartered Accountants 130 Shaftesbury Avenue London W1D5AR Bankers Unity Trust Bank Nine Brindleyplace Birmingham 812HB
UNAUDITED TRUSTEES REPORT AND ACCOUNTS FOR THE FINANCIAL YEAR APRIL 2020-MARCH 2021 THE SHEILA MCKECHNIE FOUNDATION (SMK) This trustees, report includes the directors, report as required by company law. Introduction SMK envisages a confident and powerful civil society in which people work together to drive change. We collaborate with our community to explore change, deepening understanding, generating insights and creating tools to help others. We share knowledge through our training and consultancy, which can be tailored to individual or organisational needs. We are a champion for civil society campaigning and work to protect civic space. Each year, we celebrate the best campaigns and campaigners. Together, we are unleashing civil society's sociol power. Objectives of the charity To promote the efficiency and effectiveness of charities and the effective application of resources for charitable purposes for the benef it of the public by raising the standard of, and promoting excellence in, campaigni ng on behalf of charitable purposes in particular bv-. Recognising individuals who have conducted effective and lawful campaigns that further charitable purposes Raising awareness of good practice in campaigning Providing information and guidance to people who are campaigning in furtherance of charitable objectives Public benefit statement In setting our objectives and planning our objectives our Trustees have given careful consideration to the Charity Commission's general guidance on public benefit and in particular to its supplementary public benefit guid ance on advancing citizenship and community development.
Activities and Review 2020121 wasn't the year anyone expected to have. Covid-19 arrived as our financial year started, and has dominated minds and lives sin ce. We at SMK have fared reasonably well compared to a great number of charities. We have managed to keep all staff and have worked throughout. But we did suffer a rapid decline in earned income- down roughly a half compared to the year before. And conversations we were having with funders were paused as they understandably turned their attention to the frontline. We are very grateful to have received a £25K emergency Covid grant from Esmee Fairbairn which helped off-set some of this loss, and also to Tudor Trust who gifted us a £2K 'well-being' grant. However, our year-end position is lower than the year before in a year in which we were hoping to continue on our planned path to growth. There have been upsides.. remote working has meant that we have had to take all our training and consultancy on-line, which has hel ped extend our reach geographically. With a few exceptions, we intend to keep most of our training on- line. We also had to take our SMK National Campaigner Awards on-line broadcasting live on Youtube allowing us to reach a much larger audience. As you will read below, most of the rest of our work has been 'business as usual,, albeit all mediated on-line. As with many others, we have Zoomed and Teamed our way through the yearl Notable activity includes the second year of our Power Sharing Project, which continued to explore what would it look like if civil society in London was better at sharing power in pursuit of social change. Working closely with our Core Learning Group, the project has continued to navigate this complex and sensitive topic with a view to finding insights, tools and ideas that can help the social sector work in closer collaboration with those with 'lived' or 'first-hand' experience. These outputs are due to launch in October this year, and we are hopeful of securing on-going funding to then put them to the test and evaluate their impact. This ha5 also been a busy year for SMK in term5 of civic space. As detailed below thi5 last year has seen a raft of proposed legal changes that directly affect the space to campaign, as well the ramping up of 'culture wars, with charities in the frontline. We continue to play an active role tracking the impact of these developments on campaigners and speaking up for campaigners via our annual Campaigner Survey. We are also very excited to say that we have started working with a grouping on household name charities who want to work together to help charities 'take their place in the national conversation,. Participants a re contributing towards the costs of the work bringing a valuable new income stream into the charity. Business development and fundraising have also been a clear focus, particularly in the second half in the year in large part thanks to the arrival of our new Deputy CEO. Rob Abercrombie. Rob is overseeing all our earned income and also working closely with the CEO on trying to get SMK back on a path to growth.
The rest of this report is structured under each of our four strategic objectives below.. WE CAPACITY BUILD.. Our unique onalysis of social change ond the potentialfor power in civil society (which we coll 'social power'j underpins our wide range of troining ond expert consultancy. Our relentless curiosity keeps our onolysis up to date. Using our years of experience as campaigners and change-makers, on-going reseorch ond real-world opplicotions of ourfindings, we con help you to achieve lasting and transformative change. Core Training One of the biggest changes in our work this year has been to take our historically face-to-face training service and re-launch it as a digital offer. SM K's new 'Campaign Carousel, was trialled in autumn 2020 and launched at the beginning of 2021.The Campaign Carousel doesn't just take our existing training online= we have comprehensively reviewed and revised our training offer to ensure it equips campaigners with the tools needed to create change in the current environment. There are 13 individual workshops that together form the Campaign Carousel, covering the basics of planning for change, and a range of more specialist topics from Working with Lived Experience and Influencing Locally through to Digital Campaigning and Using the Law. We are working with 'best in class, partners to deliver some of the specialist content. All workshops can be accessed individually, or campaigners can build their own package of campaign training designed to be completed f lexibly over a year. The decision to take all training on-line was prompted by the Coronavirus crisis, but we are delighted with the results. Going virtual has democratised SMK'S training, transforming the geographical spread of organisations taking it up, and unleashing strong demand from across the nations and regions. The Carousel is structured around three semesters a year and we've sold out all three 2021 places, with more than 50 campaigners doing the full Carousel training over the course of the year, and around 500 training places f illed altogether. The Carousel has allowed us to deepen our connectio ns to budding campaigners, has established the foundations of an 'alumni' network, and cemented our training programme as a core piece of sector infrastructure. It also represents the completion of the evolution of our training offer f rom something foundations commissioned for their grantees, to a service offered on the open market and paid for directly. The reception from trainees has been overwhelmingly positive, with more than 90% of respondents rating their session 4 or 5 out of 5. We have exciting plans to develop the Carousel further, with workshops being revised, new trainers recruited, and plans for a 'Masterclass' programme for experienced campaigners.
We said in our report last year that we hoped to secure some support to run a bursary scheme. We have since decided that we want to go further than this in opening up our capacity building offer to those who can't afford to pay. We've developed a new proposal for what we are currently calling 'The Centre for Campaign Excellence, The idea of the Centre is to create an online resource that can hold much of SMK'S and others, resources, tools and tips. Alongside this, the Centre will create networks of campaigners providing peer support and sharing ideas. We plan to start talking to potential funders about th e Centre soon. Commissioned training & Consultancv Commissioned training has also continued to be popu lar, and we've run bespoke and in-house training programmes for a wide variety of organisations. From big charities like Centrepoint and NSPCC, to local organisations such as Map and Warwickshire Wildlife Trust. One trend we've observed is the popularity of commissioned training for groups of young activists. In response we are developing a new training offer specifically designed for young people which will l aunch in autumn 2021. Meanwhile, SMK continues to provide strategic consu Itancy, helping clients to make their organisations and campaigns effective. We provided a significant level of support to the Royal College of Nursing facilitating 'listening events, with members as they try and shift their culture towards becoming a more campaigning organisation; we produced a trends pack for the Mark Leonard Trust that we used with their grantees to help them consider how they need to adapt in response- and we have supported grassroots charities like the Traveller Movement with their campaigning strategy. We were also commissioned by the Local Trust ILTI to deliver a programme of workshops, interviews and coaching for local activists in Big Local and Creative Civic Change areas around policy inf luencing. The aim was to increase individuals, capacity while helping Local Trust ILTI to understand how it might support greater policy collaboration between local areas and LT nationally. WE CHAMPION.. We seek to build a more confident and powerful civil society, whose role in social chonge is recognised ond valued. We help civil society be heard by bringing octors together and creoting platforms that Strengthen visibility ond voice. We also celebrate success at the onnual SMK National CampaignerAwards. We continue to support individual change-makers. organisations and civil society as a whole to: understand the campaigning environment, trends and drivers,. ensure their experiences and voices are part of the wider public debate,. and celebrate excellence and success wherever we see it. This year, we have focused on advocating for the needs and benefits of campaigning, protecting the space to campaign (against both formal and informal threats), sharing our insights into the way change-making is itself shifting, and leading by example.
SMK Annual Campaigner Survey Our Annual Campaigner Survey continues to provide the social sector with evidence and insight. It is regularly quoted by organisations such as Bond and the Quakers le.g. in evidence to select committees and in the Civil Society Voice report on Campaigning During Coronavirusl. In 2020, we ran the fifth Annual Campaigner Survey, the results of which attracted coverage in both the Guardian the sector press. We found that campaigners in civil society are encountering an increasingly hostile political environment, but politicians are now far more likely to be negative about campaigning than the general public- and it's a growing gap. This comes after years of tightening government restrictions on campaigning and increasingly intolerant attitudes to dissent. Campaigners say that people and organisations are becoming bolder and braver, with more community-led campaigns. The public seem to be more receptive to carnpaign messages, especially amidst the pandemic and high-profile campaigns like Black Lives Matter and Marcus Rashford's food poverty work. Plus, there's simplv greater need and people are responding by campaigning. Unfortunately, a more hostile political environment has seen politicians shutting down channels of communication, and attacking campa igners and their allies as a threat to the common good. The pandemic has made traditional ways of campaigning difficult or even impossible, and there are signs of digital 'exhaustion'. We had good coverage of the Annual Campaigner Survey this year, most notably by Patrick Butler in the Guardian. It stayed high u p the page ranking5 in the Society section for a couple of days, and even spent time i n the 'Headlines' section. The response on social media was enthusiastic and across January on Twitter we had 205k tweet impressions, nearly 7000 profile visits, and gained 105 new followers 160% more than usuall. Protecting Civic Space The past year has seen a greater volume of 'formal' and 'informal' threats to civic space than ever before. Proposed changes to judicial review, protest law, and regulation of third-party campaigning have been introduced in legislation currently going through Parliament. At the same time, we have seen a raft of attacks on legitimate charity activity Ithe most high-profile of which have been the National Trust, RNLI, and Barnardo'sl, which have had knock-on effects of across the social sector. In some cases, it has made organisations more determined to stand up, in others it has led to greater caution. This is something we will explore in the 2021 Survey. SMK continues to play an active role in sector activity to defend civic space. SM K is currently a core member of the Civil Society Voice directors and policy groups, which has acted as a hub for intelligence sharing and coo rdination of joint activity. In partnership with other organisations. we have submitted letters to ministers and MPS, and evidence to select committees on: work of the Charity Commission; a
better selection process for the next Charity Commission chair- and Danny Krugerfs review of civil society. We also sit on cross-sector groups on judicial review and the Police Bill. Looking ahead, we are working with colleagues who share our interest in civic space to secure f unding that will help all players in thi s area to better understand who is working on what and how funding for this work can be improved. A Reforming Civil Society We have recruited a group of large, household name charities who share an ambition for charities to 'take their proper place in the national conversation, We convene regular discussions, at both CEO and senior campaigner/comms levels that allow them to share experiences and analysis. The aim is for SMK to host activity that will support each of them to 'lead by example, to be 'bold and brave, in injecting their broader social analysis into our national debate, and to better understand the broader context in which they are working. This feels particularly timely as we start to come out of the most critical phase of the pandemic here in the UK. In 2021-22, those discussions will start to happen face-to-face, providing a space for mutual support and innovative ideas. Law Family Commission The Law Family Commission on Civil Society, which i s well-funded and potentially influential, launched a programme of inquiries into the effectiveness and potential of civil society. SM K's CEO contributed an essay for its launch collection, we sit on its Technical Panel, and we have offered comment on its outputs throughout the year. Annual Awards Ceremony SMK'S 15th Annual Campaigner Awards were due to be held at Union Chapel in May 2020. However due to the on-going pandemic the Awards were postponed, taking place virtually on 30 September live on Youtube. We had fantastic winners, as ever, including Marcus Rashford and Fareshare who won a new Campaign of the Year category for their work on food poverty, and Joeli Brearly who won a new Campaigner of the Year award for her brilliant Pregnant then Screwed campaign. They were viewed over 1600 times. With new Awards branding in place we made full use of digital to run a month-long campaign in the run up to the Awards. In this peri od, including the Youtube live event, we made 180,000 Tweet impressions, a 368% increase from the previous month of activity. The Awards team continues to work on improving the Awards year on year to ensure that we are offering our audiences an engaging experience, celebrating and championing change-making and convening civil society campaigners so that they have the knowledge and power to drive Social change. "Whot ofantostic wotch I Congratulations to oll concernedfor pulling off this event in such a slickfa5hion in a pandemic"
'Well done SMK- this is the very best virtuol event/ceremony I hove been to." WE ARE CURIOUS: Moking social change hoppen is olwoys complex, often messy and rarely, if ever, easy. The world around us is constantly changing. Tools and toctics evolve. Attitudes in society ond in our own orgonisotions change. We bring together change-makers from all ports of civil society and create spaces where we can explore change-making together. We listen and share our evolving understanding of sociol chonge, os well os our unique tools, freely. SMK aims to help bring the campaign community together, which we do by circulating a regular newsletter, our social media channels and through our training and other events. Power Sharing Project The Power Sharing Project continued to explore what would it look like if civil society in London was better at sharing power in pursuit of social change, with a focus on lived experience, poverty and socio-economic inequa lity. Grace Wyld departed SM K in autumn 2020 and Sarah Thomas joined us to lead t he project. Her recent masters degree in Power, Participation and Social Change, a nd varied experience in social sector, brought a new dimension to our collective knowledge. Covid-19 forced us to redesign our approach, as most of our plans were for face-to- face discussions. We hosted on-line workshops with organisations already starting to explore the question and undertook more desk-based research to ensure we were drawing on the many years of thinking about power that already exists. We also invested more time and resource in the Core Learning Group, which has a good mix of people with lived experience, learned experience and a mixture of both. Our monthly collaborative inquiry sessions provided a great deal of insight into the practical challenges and the usability of the tools we had started to develop. A final publication is already in the process of be ing drafted (due autumn 20211. It will be complemented by a variety of online resources. Looking ahead, we are seeking f unding to put the ideas in the project i nto practice, in partnership with a group of organisations. We are in conversation with Trust for London about continuing their support, and others about securing match funding. The Change Network We hosted a Change Network event on 22 April on the reduction in the number of young people in custody over the last ten years. Ou r first Zoom-based public event. it attracted higher turnout than usual, with 95 people registering, and engagement from across the UK. Campaign Shakedown 2020 Our quarterly Change Network events were halted by the pandemic and the departure of Grace Wyld. However, we were keen to capitalise on audience interest
and, in partnership with Alice Fuller (Save the Children) and Kath Christie ISM K Associate), we held a review of the year in December 2020. It was a success, with over 50 attendees and such a rich conversation that it took a series of three blogs to capture and share it more widely. Campalgn trends & drlvers Our ambition is to continue to track and capture what's new. what's working and the emerging challenges in change-making. We have struggled to find the capacity to do this consistently in 2021 (though events like the Campaign Shakedown were part of our effort51, but a commi55ion by Mark Leonard Trust enabled u5 to carry out a one- off exercise towards the end of the year. It remains our ambition to do more of this work in 2021-22. SMK is o high performing orgonisation driven by the desire tofind the best ways to SUPPOrt campaigning excellence ORGANISATIONAL INFRASTRUCTURE Comms, brand and marketing As for all others, It has been a challenging year for SMK as we adjusted to working remotely and delivering so much of our work on-line. Despite that, we still managed to complete a significant programme of work across our brand, visual identity and digital transformation. Having developed a Digital Transformation Strategy in the previous financial year, implementation also began to install and customise Salesforce for SMK'S constituent management needs. Although this work is on-going and will require on-going resource and capacity, the project team focused this first phase on a full sweep and clean of SM K's contact5 data. The team will continue to train staff, improve the quality of data and continue to integrate Salesforce across SM K's programmes. In 2019-20, SMK tendered for a brand and design agency to update the vision and mission, the brand positioning, boilerplate and ton e of voice as well as full visual identity overhaul that included a new logo, strapline, colour palette, font and guidelines for internal use. The chosen agency was Brand Ethos. They completed the project in summer 2020 and it was a huge success. The branding is now clearer, is memorable and there is more confidence is how we present what we do at SMK. The new visual identity has been applied across all existing and new digital channels including a new website. 'For the size of 5MK, you would thinkfrom the bronding and visuals that it was a lot bigger than it is. It hos a very memorable look andfeel.,
Staff and other organisational changes In this year, SMK had a core team of four full-time staff and three part-time staff on a mixture of permanent and fixed-term contracts. Emma Burnell joined on a f ixed-term contrart as a Head of Training - a role we have not been able to re-fill. This resource has been used in part to recruit a new PIT Deputy CEO, Rob Abercrombie. Grace Wyld (full timel departed in September 2020. Sarah Thomas took on her management and leadership of the Power Sharing Project on a part-time basis, also in September. Other core members of the team are Sue Tibballs ICEO F/T,' Chloe Hardy, Director of Policy & Comms14 dayslwkl,. Emma Boyd (Head of Marketing &Comms IFITI; Rumenna Begum Financial Review Total income for the year wa5 £434,0431£528,767 in 2020}, an 18% decrease compared with the previous year. We continued to receive income from a diverse range of sources. 23°A of our income was restricted to funding specific projects. These funders and projects are listed in the accounts (Note 31. The difference is in income is accounted for in part due to a decrease in earned income.. this was down £40K on the previous year chiefly due to the effects of Covid- 19. One of our core grants also came to an end. Our actual budget in 2020121 has been higher as we carried forward income for activity that had to be delayed due to the pandemic notably the SMK National Campaigner Awards. Hence why the reserve position at the end of 19120 looks high lover £40K of this was spent on delayed activity) and why expenditure in 20121 was higher than income. In terms of the future, we are very confident that income in 21122 will bounce back to 19120 levels, and we are hopeful of growing it f urther as set out below. Expenditure Total expenditure amounted to £478,1581£465,046 in 20201 a 2.8% increase compared with the previous year. Funds at year-end were £61,82412020 £105,9391. The future SMK has made significant progress in recent years establishing itself as a valuable think tank and capacity-builder focused on campaign ing, social change and civil society's reforming power. We are asking questions about social change and how it happens that people recognise are important and want to discuss
We are trusted to host significant projects that ask big and complex questions, and produce insights and tools designed that help others think and behave differently. A very wide range of organisations working across a raft of issues are asking for our help to guide strategy and build capacity. We have shown that with high quality IP, we can generate signif icant earned income. We are helping not just protect civic space but also build a new narrative and engagement with the importance of civic space and civil society's reforming role. We speak up for the campaign community and produce valuable evidence a5 to their experiences and attitudes. High profile and well-regarded charities trust us a nd want to work with us to build a new understanding of charities, reforming role in societv. Our annual SMK National Campaigner Awards celebrate people and organisations whose achievements might otherwise be unsung. We use our network to provide a platform to others, and work with partners and Associates to make their expertise more widely available. Our reports are making national news, we are regularly asked to give comment. and our evidence is cited widely. SMK - set up in memory of the brilliant Sheila McKechnie - is. we think, doing her proud. But we want to do more. We think civil society and the social sector in the UK could be doing so much more - driving even more transformational change - if they were working without constraint and with the right support. What we call Social Power. Our role is to unleash it. It remains that where there is a size-able industry in the US, there is very little in the UK. SMK is working very hard to fill that gap. but to meet need and demand, we need to be bigger ourselves. We have set out a clear vision for our future that we are now sharing with funders and donors in the hope we can grow our capacity and impact. We feel hopeful of securing that support so that we can grow this valuable organisation. Reserves Policy The charitvs reserves policy is set out in the note 1.7 to the accounts. Strurturei governance and management Sheila McKechnie Foundation is a charitable company limited by guarantee governed by its Memorandum of Association as adopted at the extraordinary general meeting on 21st February 2005. It is registered as a charity with the Charity Commission and as a Company with Companies House. 12
Pay and remuneration of staff is determined in accordance with SMK'S pay & remuneration policy. As a very small employer, there are some key principles that underpin SMK'S approach to pay and remuneration= It must be simple and straightforward to administer It should be flexible, recognising that SM K's income can fluctuate, and that organisational needs can change It must reflect the values of the organisation It must be in line with best practice in the sector Pay levels are reviewed annually, taking into account evidence of pay levels across the sector more widely, and SMK reviews Cost of living annually, and makes an award accordingly. SMK is a London Living Wage employer. Appolntment of Trustees Our Articles of Association provide that SMK may have no less than three trustees but it is not subject to any maximum. SMK uses a transparent and fair method when recruiting new trustees. We advertise all trustee vacancies and they are open to anyone who wishes to be a trustee. From time to time the Board may call for trustees with specialist skills and experience that it identifies 15 needed for the effective governance of the organisation. The process is led by the Resource Committee, and applicants for trusteeship are asked to make their application in writing and to attend an interview. During this time, each applicant and interviewee goes through the same process. We also apply our equal opportunities policy to trustee recruitment. Each new trustee received an introduction pack and an induction to the organisation. and support is readily available from the Officers of the organisation. The board of Trustees meets regularly and there were 5 meetings held during the year12020'. 51. The present members are listed in this report. The following changes in trustees occurred during this financial year.. In line with the charity's Mem & Arts, the three longest standing trustees stood down at the AGM in December 2020.. Alastair Wilson; Kierra Box and Louise Hanson Ichairl. In the course of the year, f ive new trustees were initially co-opted and then formally appointed: Bushra Ahmed,. Zainab Ali Khan, Deborah Doane; Kimberley Garande and Patrick Steen. We are delighted that our new trustees have significantly diversified the Board's collective experience and expertise. Trustee Pete Moorey was appointed interim Chair at the AGM and continues in that role.
List of Trustees is in Page 2 Legal and Administrative Information. Members of the Trust guarantee to contribute an amount not exceeding £10 to the assets of the charity in the event of winding up. The total amount of such guarantees at 31st March 2021 was 1012020.. 101. Risk statement The trustees and staff jointly reviewed the possible risks facing the organisation during the year. Therefore they were aware of the major risks facing the charity and are taking adequate steps to protect the charity. The major risks are related to the nature of the work within which the charity supports through grants and awards and the use of appropriate volunteers and people who su pport the charity. Independent examiners Brebners were appointed as the charitable company's independent examiners and have expressed their willingness to continue in that capacity. Small company provisions This report has been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006. 08 September 2021 Approved by the trustees on and signed on their behalf by Pete Moorey Stuart Davis Interim Chair Treasurer 14
THE SHEILA MCKECHNIE FOUNDATION IA COMPANY LIMITED BY GUARANTEEI INDEPENDENT EXAMINER'S REPORT TO THE ACCOUNTS OF THE SHEILA MCKECHNIE FOUNDATION LIMITED Responsibilities and basis of report I report lo the charity Iruslees on my examination of the accounts of the company for the year ended 31 March 2021. As the charity trustees of the company land also its directors for the purposes of company lawl you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 20061'lhe 2006 Acl'l and in accordance with the terms of the Charities and Trustee Investment (Scotlandl Act 2005 and the Charities Accounts (Scotlandl Regulations 2006 las amended). The charity trustees consider that the audit requirement of Regulation110111 lal to Icll of the Accounts Regulations does not apply. It is my responsibility lo examine the accounts as required under section 44111 Icl of the Act and lo slate whether particular matters have come to my attention. Having satisfied myself that the accounts of the company are not required lo be audited under Part 16 of the 2006 Act and are eligible for Independent examination, I report in respect of my examination of your company's accounts as carried out under section 145 of the Charities Act 20111'the 2011 Acl'l and Section 4411 Ilcl of the 2005 Act. In carrying out my examination I have followed the reqU1MeNtS of Regulation 11 of the Charities Accounts (Scollandl Regulations 2006 {8S amended) and the Directions given by the Charity Commission under section 14515llbl of the 2011 Act. My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeks explanations from the trustees Conrning any such mallers. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts. Independent examiner's statement Since the company's gross income exeded £250,000 your examiner musl be a member of a body listed in section 145 of the 2011 Act. Further, since the company is required by company law to prepare ils accounts on an accruals basis and is registered as a charity in Scotland your examiner musl be a member of a body listed in Regulation 11121 of the Charities Accounts (Scollandl Regulations 2006 las amendedl. I confirm that l am qualified to undertake the examination because I am a member of the ICAEW, which is one of the listed bodies in both instanTrs. I have completed my examination. I confirm that no matters have come to my attention In connection with the examination giving me cause to believe that in any material respect.. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act and RulatioN 4 of the 2006 Accounts Regulations., or the accounts do not accord with those records with the accounting requirements of Regulation 8 of the Charities Accounts (Scollandl Regulations 2006., or the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair view, which is not a matter considered as part of an independent examination or., the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended PracliTr for accounting and reporting by charities applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. 15
THE SHEILA MCKECHNIE FOUNDATION IA COMPANY LIMITED BY GUARANTEEI INDEPENDENT EXAMINER'S REPORT TO THE ACCOUNTS OF THE SHEILA MCKECHNIE FOUNDATION LIMITED I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order lo enable a proper under3tanding of the accounts lo be reached. Signed.......................................... DJ Bond FCA For Brebners 130 Shaftesbury Avenue London W1D5AR Dale 29th September 2021 16
THE SHEILA MCKECHNIE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021 COMPANY REGISTRATION NO. (ENGLAND AND WALES) 5331412 Statement of Financial Activities for the year ended 31 March 2021 2021 Unrestricted Restricted funds funds 2020 Total Total Incomin resource5 Notes Voluntary income Charitsble a¢livilies Total Incoming resources 2,395 332,148 334,543 2,395 99.500 431,648 99,500 434.043 1,528 527.239 528,767 Resources ex ended Raising funds Charitsble activities Total resources expended 6.7.8,9 385,797 385,797 92,361 478,158 92,361 478,158 465,046 465,046 Net movgment in funds 13 151,2551 7.139 144,1151 63,721 Fund balances at 1 April 2020 97.675 8,264 105,939 42,218 Fund Transfers Fund balances at 31 March 2021 46.420 15,403 61,824 105,939 All Income and expenditure derive from continuing activities. The Statement of Financial Activities includes all gains and losses recognised during the year. 17
THE SHEILA MCKECHNIE FOUNDATION IA COMPANY LIMITED BY GUAIiANTEE} BALANCE SHEET AS AT 31 MARCH 2021 COMPANY REGISTRATION NO. (ENGLAND AND WALES} 5331412 Note8 2021 Re$tri¢ted fund5 2020 Total Unre$tri¢ted fund5 Totol Fixed asset 10 3,554 3,554 6.988 Current a$$ets Debtors Investment Cash at bank and in hand 11 75,488 11,500 86,988 35,675 94,094 169,583 3.903 15,403 97,997 184,986 162,720 198,395 Llabllltles Creditors falling due within one year 12 1126,7171 1126.7171 199,4431 Net ¢urrent a$$ets 42,866 15.403 58,270 98,952 Net a$$ets 46,420 15.403 61,824 105.940 Funds brought fOard 97,675 8,264 105,939 61,147 SurplusllL05sI for the year 151,2551 7,139 144,1151 118,9291 Fund Transfers Funds ofthe charity 46,420 15,403 61,824 42,218 The tru5te8s are Satisfied that the company is entitled to exemption from the provisions of the Companie5 Act 2006 (the Act) relating to the preparation of the unaudited Accounts for the period by virtue of section 477121. 8nd that no member or members have requested an audit pursu3nt lo sedion 476111 of the Act. The trustees aeknowledge their responsibilities for. lil ensuring that the cornpsny keep5 adequate accounting records which comply with section 386 of the Act, and lill preparing unaudrted aceounls which give a true and fair view of the state of affairs of the company as at the end of the financial period and of its profit loss for the financial period in accordan with the requirernents of section 393. and which otherwise cornply with the requir8ments of the Act relating lo the unaudited financial ststem8nls, so far as applicable lo the company. These accounts have been prepared with the special provisions of Part 15 of the Cornpanies relating to small cotnpanies and constitute th8 annusl account5 required by the Companies Act 20C6. The accounts were approved by the Board on 08 September 2021 Peter Moorey Interim Chair of Trustees stuart Davis Treasurer 18
THE SHEILA MCKECHNIE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 Company status The Sheila McKechnie Foundation is a company limited by guarantee and has no share capital. The liability of each member does not exceed £10. 11 is a charity registered in England and Wales Iregistralion No. 11082101, Scotland (Registration No. SC0442071. Ils company registration number is 05331412 (England and Wales). Ils registered address is The Foundry, 17 Ov81 Way, London SE11 5RR. Note Accounting policigs Basis of proparation The Sheila McKechnie Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise slated in the relevant accounting policy notes. These accounts have been prepared using the historical cost convention except any items disclosed in the accounting policies as being shown al fair value and a presented in sterling, which is the functional currency of the enlily. Balances within the accounts have been rounded to the nearest £1. The accounts are prepared under the historical cost convention, in accordance with the Slalemenl of Recommended practi 2019.. Accounting and Reporting by Charities preparing their 8ccounls in aordanCe with the Fin8nci81 Reporting Stand8rd applicable in the United Kingdom and the Republic of Ireland IFRS 1021 and the Financial Reporting Standard applicable In the United Kingdom and Republic of Ireland IFRS 1021 and the Companies Act 2006. In preparing the accounts, the Trustees have assessed the Charity's ability lo continue as a going concem. The principle financial risk facing the Charity is ils ability lo generate sufficient income lo cover expenditure incurred in fulfilling its objectives. The Trustees have reviewed the cash position of the Foundation and cash forecasts at the dale of signing the accounts, including grants and donations secured or pledged, together with unavoidable financial commitments, and are satisfied that the Foundation will be able lo meet all of ils financial commitments. As a consequence the Trustees believe that the Foundation is well placed lo manage its financial risks successfully, including the impact of Covid-19, and that the Foundation has adequate reserves to continue in operational existen for the foreseeable future and al least, but not limited to, 12 months from the dale of approval of these accounts. Accordingly the Trustees continue to adopt the going concern basis in preparing the accounts and are satisfied that the are no material uncertainties related lo events or conditions that cast significant doubt on The Sheila McKechnie Foundation's ability lo continue as a going concern. Fund accountlng The charity's accounts are defined as follows.. Unrestricted Funds comprise accumulated surpluses and deficits on general funds.. they are available for use al the discretion of the Trustees in furtherance of the general Charitable objectives. Restricted Funds are funds subject lo specific restricted conditions imposed by the donors. 19
Incoming resource8 l incoming resources are accounted for when the charity has entitlement, there is certainty of receipt and the amount is measurable. Income is deferred when it is in respect of work to be carried out in the following year. Voluntary income comprises all incoming resources from donations and gift aid. Charitable activities comprises incoming resources from grants and charitable trading. Investment income is Bank interest accounted for on a receivable basis. Other income comprises income from non-charilable trading. Resources oxpand8d Expenditure is recognised when a liability is incurred. Contractual arrangements and perfomiance related grant are recognised as services are supplied. Costs of generating funds are those costs incurred in attracting voluntary income. Charitable activities comprise those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. 11 includes both costs that can be allocated directly lo such activities and those costs of an indirect nature necessary lo support them. Debtors, Cash and Crgditors Debtors- short term debtors are measured al transaction price. Cash and cash equivalents- comprise cash al bank and in hand. Creditors - short term creditors are measured at the transaction price. Fixed A88ets and Depreciation All fixed assets are initially recorded al cost. Depreciation is calculated so as to write off the Cost of an asset over the useful economic life. The rale adopted is as follows.. Fixtures and Fittings Computer Equipment 330A straighl-line 33% slraight-line Reserves policy The Directors of SMK lake the view that a reserve should be held sufficient to pay notice periods for all staff plus any other liabilities re. nt or other suppliers in the event the charity has lo wind up. Based on SMK'S current head count and notice periods, this means a figure of £88K would ideally be held in Reserve. Recognising that it is very unlikely the charity will have lo wind up at no notice, and that some wind down costs could potentially be covered from other sources. the Board has agreed that the more moderate figure of 60K is reasonable to hold in reserve and is proportionate lo the Charity's income. Pension Pension costs represent payments lo individual personal pension schemes of employees. Pension costs are charged to the Slalemenl of Financial Activities in the period in which they are paid. VAT Income and expenditure is slated gross of VAT as il is not recoverable. SMK is not registered for VAT. 1.10 Independent Examination The Independent Examiner's remuneration for 2021 was £3,60012020 £3,000. 2020 fees were paid by a third-party donor) 20
THE SHEILA MCKECHNIE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 Note Voluntary income 2021 2020 Total Unrestricted funds Restricted funds Total Donations Misc Income 959 1,435 2.395 959 1,435 2.395 986 542 1,528 Incomlng resources from charltable actlvltles 2021 2020 Total Unrestricted Resiricted Total funds fund5 Grants Charitable Activity income Totsl resources 173,750 158,398 332,148 99,500 273,250 158.398 431,648 345,158 182,081 527,239 99,500 Grants John Ellerman Foundation Barrow Cadbury Trust Cornerstone - City Bridge Cornerstone - Trust for London Esmee Fairbairn Foundation Joseph Rownlree Charitable Trust Paul Hamlyn Foundation Tudor Trust Tudor Trust IWellbÈingl Shelter Crisis RSPCA RNID The Wildlife Trusts 50,000 1£37,500 deferred to 2021-221 8,000 8,500 50,000 25,000 30,000 40,000 25,000 1£6,250 accrued lo 2019-201 2,000 5,000 (Deferred lo 2021-221 S,000 IDeferred lo 2021-221 5,000 IDeferred lo 2021-221 5,000 IDeferred lo 2021-221 5,000 IDeferred lo 2021-221 Add deferral from 2019120 67,000 Icity Bridge £17,500 John Ellerman £37,500 Barrow Cadbury £2,000 Joseph Rownlree Charitsble Trust £10,000) Less accrual lo 2019120 Add accrual from 2021122 Less deferral lo 2021122 16,2501 labovel 11.500 (Barrow Cadbury £7,500 City Bridge £4,000) 162,5001 labovel Total Grants 273,250 Deferred Income refers lo cash grants reiVed before the Balance Sheet dale but relating to activities ommencing thereafter Acctued Income refers lo e8sh grants received after the Balance Sheet date bul re18ting to activities conducted beforehand 21
THE SHEILA MCKECHNIE FOUNDATION IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 Note Comparator for Prlor Year SOFA Values 2020 Unr88tricled R88triclÈd funds funds Total Voluntary income Charitable artivitie$ Totsl Incoming resources 1,528 367.115 1fj0,124 368.643 160,124 1,528 527,239 528,767 Re urtss Èx ende Raising funds Charitable activities Total resourc&s expended 313,047 151,999 313.047 151,999 485,048 465,046 Nel moveffÉnt in funds 55,596 8.125 63.721 Fund balances at 1 April 2019 38,189 4,030 42,218 Fund Transfers 3,891 13,8911 Fund balances at 31 March 2020 97,675 8.264 105.939 Grant-making Activiti85 The total of grants paid was £Nil12020.. £20.0001. 2021 2020 Total Cost of charitablè activftie$'. Unrostrfctsd Rosthctsd Total fund$ staff Cost Projecls expenditure Office overheads 268.019 47.405 70.373 385,797 82,380 10,001 350,379 57,406 70,373 478,158 301.778 101.494 61.774 465.046 92,361 Number of employeos The avÈragÈ monthly number of Full TIMÈ Equnfalent employees during the year was 61202D". 51. Employment cost8 2021 2020 Wage5 and 581aries Social security Pension costs Con5uttancylProfessional 5etvices Travel & Subsislen 289.297 27,380 14.477 19.225 218,916 2Q,959 10,946 50,653 304 301,778 350,379 One employee eamed beeen £70,000 and £80,000 12020.. 11 The CEO is considered to be the Key Management Person of the charty. The total paid to the CEO during the year lexcluding pensKn payments) was £78,79512020 £77,250) TrLtsteÈs None of the trustees lor any persons connected wrth Iheml received any remuneration or benefits from the tharity during the year. Trustees reimbursed expenses were nil12020.. £Nill 22
THE SHEILA MCKECHNIE FOUNDATION IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 Notes 10 Tanglble Flxed Assets OST BIF 3t 31 M3r 20 11.789 CIF 11.789 De BIF 4.801 3.434 8.235 Charge for year CIF NET BOOK VALUE BIF at 311312020 CIF at 311312021 6.988 3.554 Invoslments BIF at 31 Mar 20 Additions CIF 11 Debtor8 2021 2020 Total Unr¢$triCted Restiitted Totsl Jnds funds Trade debtors Provision for Doubtful Debt Accrued incotne Prepayments & Deposits 62,192 11.2401 12,000 2.536 75,488 62.192 1,2401 23.500 2.538 86,988 20,618 11.500 11,406 3,651 35,675 11,500 12 Croditors- amount falling due within one year 2021 2020 Total Unre$triCt#d Jnds Restritted funds Totsl Trade creditors Deferred incorne 11.118 92.412 10.569 20,302 70,000 9,141 92,412 10,569 Ljnpaid Sharè Capital Accruals 12,619 126,717 12.619 126,717 99,443 Operating Lease Minimum lease payments under the non-¢anl1ab operating lease for the office Spa a". 2021 2020 Not later than one year Later than one year and not later than five years Later than five years Lease payments COgnised as an expense. 10.140 25.372 23
THE SHEILA MCKECHNIE FOUNDATION {A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 Notè$ 13 Movement in funds At start of Incoming Outgoing Fund thè year Rosources Rasourcos Transfers At end of thè yèar Restricted funds Power Sharing Restricted Core 8,264 80.000 19,500 74,861 17,500 13,403 2.000 Total Restricted Funds 8,264 99,500 92,361 15,403 Unrestricted funds Campaigner Carousel Consutsncy Awards Core Reserves 59,259 72.057 46.000 157,227 13,962 13,546 18,108 340,182 {45,2971 158.5111 {27,8921 182,955 {51,2551 97,675 46.420 Total Unrostsleted Funds 97,675 334.543 385.797 46.420 Total Funds 105,939 434,043 478,158 61,824 Restricted projects.. The Power Sharing Project is a Corneislone funded two-year project that 15 exploring what il would look like If oivil society in London was better at sharing power in pursuit of social change. with a fo¢us on lived experience, poverty and soci(Feconomic inequality. Restricted Core Tudor Trust generously awarded a grant of £2,000 for staff wellbeing in Feb 2021 which iernained unspent al the end of the FY. Other Restricted Core income w8$ awaided by Barrow Cadbury as a grant restricted to Core activities. Transfer of funds At 1 Apr 2020, £51,255 was transferred from Reserves to Unrestricted operational areas to enable activities delayed from 19-20 into 2(k21 as a result of Covid-19. At 31 Mar 21, all Unrestricted FLJnds were wnsolidaled into Reserve5. The remaining balances on the Resliicled Fund5 'Power Sharing, of £13,403 and Restricted Core of £2,000 were carried forward, together with Unrestricted Reserves of £46,420. There were no transfers between Restricted and Unrestricted Funds. 24
THE SHEILA MCKECHNIE FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 Notes 14 POST BALANCE SHEET EVENT- COVID 19 IMPACT The emergency measures imposed by the Government lo control the COVID 19 pandemic restricted the ability of the Sheila McKechnie Foundation lo operate normally through 20-21. While the situation is beginning lo return lo a degree of normality, that reslriclion on normal operations is still being fell. The Trustees continue to work lo minimise the impact of the exceptional challenges caused by the pandemic and the measures taken by the Government to control il and the effects of the pandemic do not result in any adjustment being needed lo the value of assets and liabilities al the balance sheet date. The Trustees of the Sheila McKechnie Foundation remain confident that they will be able to overcome the continuing operational differences and as a Consequen these accounts have been prepared on a going concern basis. 15 POST BALANCE SHEET EVENT- TRADING SUBSIDIARY On 1 April 2021 the Sheila McKechnie Foundation moved all trading activity into a Trading Subsidiary (Sheila McKechnie Trading, Company Registration Number 132488801 which was registered with Companies House during March 2021. 100 % of the shares in the Trading Subsidiary were purchased by Sheila M¢Kechnie Foundation. There was no activity in the Trading Subsidiary prior lo the Balan Sheet date and al that date the Trsding Subsidiary had no assets, liabilities or funds other than the £1 Called- up Share Capital. Group Accounts have therefore not been prepared for the 2020-21 year. 25