OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2020-03-31-accounts

Khulisa Report and Financial Statements For the year ended 31 March 2020

Charity number England: 1120562 Company number: 6210432

1

KHULISA (A company limited by guarantee)

Report and Financial Statements For the year ended 31 March 2020

Contents Page
Reference and Administrative Information 3

Report of the Board of Trustees
4-14
Independent Auditors’ Report
15-17
Statement of Financial Activities 18
Balance Sheet 19
Cash Flow Statement 20
Notes Forming Part of the Financial Statements 21-30

2

KHULISA TRUSTEES’ REPORT For the year ended 31 March 2020

Reference and Administrative Information Charity registration number: England and Wales: 1120562 Company registration number: 6210432 Registered office address: 32 Cubitt Street, King’s Cross, London, WC1X 0LR

Board of Trustees

Jean-Marc Morel (Treasurer and Interim Chair from 23 December 2020) Philippa Frankl A Y Thorat – Resigned 3 September 2020 Jonathan D Bines Sharon Kalsy Shivonne Graham (Interim Chair to 23 December 2020) Soraya Catanzaro – Resigned 12 December 2019 Peter Babudu - Resigned 12 December 2019 Rob Dickinson – Appointed 12 December 2019

Company Secretary

Iman Haji

Leadership Team Dominique Airey Chief Executive until February 2020 Cara Cinnamon Chief Executive from February 2020 Lisa Rowles Director of Evidence & Innovation Damian Castello Director of Delivery

Auditors

Myrus Smith Chartered Accountants, Norman House, 8 Burnell Road, Sutton, Surrey, SM1 4BW

Bankers

Lloyds TSB PLC, 19-21 The Quadrant, Richmond, TW9 1BP

3

KHULISA TRUSTEES’ REPORT CONTINUED For the year ended 31 March 2020

Structure & Governance

Khulisa is a limited company by guarantee, a registered charity in England and Wales and is governed by its Memorandum and Articles of Association. We were incorporated in 2007, having originated in South Africa. Khulisa brings new dynamism and unique models of social impact to the criminal and social justice sectors. Programmes tested in extremely fragile and challenging social/financial environments have provided innovative and effective solutions to addressing crime and violence in the UK.

Khulisa has a Board of Trustees with 6 current members: Jonathan Bines, Jean-Marc Morel, Shivonne Graham, Dr Sharon Kalsy, Philippa Frankl and Rob Dickinson. Trustees are recruited through an open and transparent process and can be elected by a majority vote of the Trustees at any regular meeting. Trustees are appointed for a 3-year term with a limit of 2 consecutive terms served. Trustees receive a full-induction with the Chair, Treasurer, CEO and other members of the leadership team to include a background to organisation, programmes and impact alongside their legal financial responsibilities as trustees.

All decisions pertaining to budget approval, salaries and new senior hires (at leadership level) are made through board consultation and other operational decision-making is made by the CEO and leadership team. Khulisa leads a performance management process annually; based on performance and the financial health of the organisation, salary recommendations are made to the board (with a requirement that 50% of the board are present to approve). These salary increase levels are based on Khulisa’s Pay & Remuneration Policy which sets out salary banding for different levels of seniority (bench-marked to equivalent-sized charities) and increases based on performance rating (under-performance, meets, exceeds or significantly exceeds expectations).

Khulisa has approximately 30 members who are invited to attend our AGM, usually held in December each year.

As of March 31, 2020, Khulisa had 14 staff members (full and part-time) based in London and Manchester. Programme delivery is managed by staff and supported by circa 15 free-lance facilitators who are trained in our programme methodologies and curriculum and live close to our delivery locations. Khulisa also has a cohort of volunteers, most of whom are mentors on our Milestones through-the-gates mentoring programmes.

Meeting the Public Benefits Requirements of the Charities Act 2011

Our Mission is to break the cycle of crime and violence by helping people to change their lives. Our Vision is a society where young people have a voice and are empowered to live healthy, crime-free lives Our Values are:

In reviewing Khulisa’s aims and objectives as outlined in our 2017-2020 Strategic Plan, the Trustees paid due regard to the Charity Commission’s guidance on public benefit to inform what activities the charity should undertake.

4

KHULISA TRUSTEES’ REPORT CONTINUED For the year ended 31 March 2020

Objectives & Activities

We deliver behaviour-change programmes and provide therapeutic support and mentoring in schools, prisons and the community, enabling children and young adults to make more positive life choices. These programmes have a strong emphasis on developing emotional resilience, improving wellbeing and raising aspirations, and are proven to reduce violence, offending and support young people to thrive.

Our objectives for the period 2017-2020 are outlined in full in the CEO report (see 2017-2020 Objectives).

Financial Review

Unrestricted reserves at 31st March 2020 were £147,924, which is in line with Khulisa’s reserves target of £148,000. Total net expenditure of £19,763 was comprised of £25,814 surplus on unrestricted funds and £45,577 deficit on restricted funds. Total income of £766,717 in 2020 represents an increase of £36,504 from 2019. Restricted income was £398,260 (2019: £392,395) and unrestricted income was £368,457 (2019: £337,818). The charity received unrestricted grants and donations totalling £338,220 (2019: £303,952). Khulisa is particularly indebted to The Monument Trust for their generous support. Sales and fees amounted to £30,197 (2019: £33,806). The Balance Sheet at 31 March 2020 showed cash balances of £140,779 (2019: £186,385) and net assets of £218,833 (2019: £238,596). This is represented by unrestricted funds amounting to £147,924 (2019: £122,110) and restricted funds of £70,909 (2019: £116,486).

Khulisa Risk Management Framework

Khulisa’s risk assessment process requires a subjective judgement to be made on the potential impact and likelihood of the risks by the Khulisa Board and Senior Management TEAM (SMT). The framework includes both operational (programme delivery) and organisational (strategic) risks. Once completed the likelihood is multiplied by the impact to provide a rating for each risk:

Impact
Likelihood Significant (3) Some (2) Limited (1)
High (4) (certain)
High (3) (probable)
Medium (2) (possible)
Low (1) (unlikely)

5

KHULISA TRUSTEES’ REPORT CONTINUED

For the year ended 31 March 2020
No. Risk description Likelihood Impact Rating Contingency / action Responsible officer(s) Review date
1. Inabilityto meet delivery
targets and donor
commitments		 2 2 Progress with all four of our 17-20 commitments have been very
positive
Professionals interventions progressed well and we completed the
year, ahead of target
Pace for YP interventions did not meet expectations, but depth
and quality measures reached
Financial growth and diversification targets met		 Director of Delivery Weekly
4
2. Business Continuity (death or
critical illness, long term
absence of SMT member)		 1 2 New org plan (to enable delivery of our 20-23 strategy ready to
implement)
Budget ready to be signed off, in order to invest in critical staff
members in 20/21 e.g. Lead Facilitator, Partnerships and HR		 Chief
Executive/Board		 Monthly
2
3. Participant, facilitator,
volunteer or member of the
public is harmed		 2 2 Safeguarding policies are in place, reviewed annually along with
supervision and training for frontline staff
Group supervision to be reintroduced in 20/21 for frontline
practitioners		 Director of Delivery
and Director of
Fundraising &
Operations		 Monthly
4
4. Volunteers/staff
corruption/misconduct with
participants		 1 3 Annual DBS checks to be completed as standard.
We only have two current volunteers, in addition to the Google
Analytics web team. We are recruiting for 3 new volunteers to
assist with web development, graphic design and content.		 Director of Delivery Monthly
3
5. Insufficient unrestricted
funding for full cost recovery
of the organisation		 2 2 We have grown the proportion of UR in 19/20 through sales and
an improved fundraising strategy
Commercial strategy review planned for Sept 2020 Board
meeting.		 Director of
Fundraising &
Operations + Head of
Finance		 Monthly
4
6. Data protection regulations
breached/no ready for GDPR		 1 2 Salesforce is fully embedded, along with digital data capture (via
Form Assembly) to limit risk of data breaches
GDPR Audit to be completed by Sept 2020
Need a new board DPO (in progress)		 Director of
Fundraising &
Operations		 Quarterly
2
7. Insufficient data available to
track funding allocations and
to manage financial
forecasting/reconciliation		 2 2 We have a new Finance Manager who started Feb 2020, to focus
on the development and improvement of our finance and
reporting systems
This needs to be addressed by Sept 2020 at the latest		 Director of
Fundraising &
Operations + Head of
Finance		 Monthly
4

6

8 Khulisa’s IP is vulnerable to
exploitation due to our AF
model and now, our digital
programmes		 2 2 We require Associate facilitators to sign NDAs/contracts with
appropriate clauses
We vet and protect attendees to webinars/training
We do need legal expertise on the board, and pro bono support
for the team moving forwards and are exploring securing Pro
Bono Lawyers		 CEO Monthly
4

7

KHULISA TRUSTEES’ REPORT CONTINUED For the year ended 31 March 2020

Reserves Policy

The Trustees have decided on the level of reserves that the charity ought to have. Unrestricted funds are needed to:

The Trustees consider that, as a medium term goal, it would be prudent that unrestricted funds should be sufficient to cover:

The organisation’s current target is to create a reserve fund of £148,000. Unrestricted general funds at 31 March 2020 were £147,924.

Statement of Trustees’ Responsibilities

The trustees (who are also directors of Khulisa for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year,which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for the year. In preparing those financial statements, the trustees are required to:

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

In so far as the trustees are aware:

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.

8

KHULISA DIRECTOR’S REPORT For the year ended 31 March 2020

Chief Executive’s Report for Year Ending 2019-20

Introduction

Khulisa’s work continues to be known for putting well-being at the heart of rehabilitation; increasing selfesteem, enabling educational inclusion and reducing violence and re-offending. The highlights from April 2019 to March 2020, include:

We are hugely proud of the achievements of our team, particularly over the last 12 months where we have overcome huge challenges in the wake of Covid-19, and are responding well to the surge in demand for mental health and wellbeing services for young people across the UK. We look forward to implementing our learning from this experience into our new strategy for 2021 onwards.

Achievements in 2019/20

Strategic Objective #1 - Scale and deepen programme impact

Between April 2019 and March 2020, Khulisa reached a total of 1,152 young people and professionals across London and the North West of England, working with a total of 30 partner organisations. This includes 232 young people in 14 schools, reached through the delivery of 28 wellbeing programmes. We also supported 116 young people through a combination of mentoring, and 8 wellbeing programmes in 4 prisons.

We trained a total of 804 professionals and adults who work with young people in 12 of our partner organisations and through 37 trauma-informed training sessions. As part of this, Khulisa supported two London schools to implement a whole-school approach to trauma-informed care.

Khulisa’s Wellbeing Programmes for Young People

Uniquely, our programmes are delivered by therapeutically qualified professionals. We build the social and emotional skills and wellbeing of young people through a mixture of art and drama-therapy, small group and individual sessions, strength-based and restorative approaches. Crucially, we also provide trauma-informed training for the professionals who work with our young people.

Our programmes are designed to support a broad spectrum of social and emotional skills. Khulisa prioritises the core skills listed below because they provide the foundation for the successful development of other important skills and life outcomes: Resilience, coping skills, emotional regulation and social and emotional wellbeing[1] .

1 We use the following validated scales to measure these core outcomes: The Children’s Hope Scale, The Children’s Coping Questionnaire, The Emotional Regulation Questionnaire and the Shortened Warwick Edinburgh Mental Wellbeing Scale.

9

KHULISA DIRECTOR’S REPORT CONTINUED For the year ended 31 March 2020

Our impact in schools

Our impact in prisons

Our impact on professionals

Khulisa made a significant contribution to building the capacity of the sector by delivering Trauma-Informed training and other skills development programmes to prison officers, educators and other professional staff working with vulnerable adults and young people. Data from our in-person training shows that:

2 NHS Survey for England Data (2011) available at:

https://warwick.ac.uk/fac/sci/med/research/platform/wemwbs/using/howto/wemwbs_population_norms_in_health_survey_for_england_data_201

1.pdf (Last accessed 19 November 2020).

3 Gross, J.J., & John, O.P. (2003). Individual differences in two emotion regulation processes: Implications for affect, relationships, and well-being. Journal of Personality and Social Psychology, 85 , 348-36

4 Riemer, M., Athay, M. M., Bickman, L., Breda, C., Kelley, S. D., & Vides de Andrade, A. R. (2012). The Peabody Treatment Progress Battery: history

and methods for developing a comprehensive measurement battery for youth mental health. Administration and policy in mental health , 39 (1-2), 3– 12. https://doi.org/10.1007/s10488-012-0404-1

5 OECD, “Society at a Glance: OECD Social Indicators” (2016) available at: https://www.oecd-ilibrary.org/social-issues-migration-health/society-at-aglance-2016/life-satisfaction_soc_glance-2016-26-en;jsessionid=vKLzWleSKdhPNH4M3kHZgWZu.ip-10-240-5-60

10

KHULISA DIRECTOR’S REPORT CONTINUED For the year ended 31 March 2020

Qualitative feedback confirms that our 1 & 2 day training is unique in its: (1) Focus on practical tools and techniques that are “easy to implement with young people”; (2) Interactive delivery (3) decades of practitioner experience which informs the design and delivery of the content.

Strategic Objective #2 Partner for deeper impact

We have remained committed to partnership working for both direct delivery and our influencing work. Notable partnerships this year include:

  1. A collaborative, multi-partnership approach in Harrow. In July 2019, Khulisa led the set up of a partnership with three other charities (Ignite, The Wish Centre and Synergy Theatre), Harrow Council and the University of Bedfordshire. This work was funded by the Home Office’s Early Intervention Youth Fund and sought to trial collaborative approaches to preventing and reducing the rise in youth violence in the London Borough of Harrow, where youth violence had risen by 40%. The partners worked together to support young people aged 12-14 who were at risk of involvement in crime. We worked with three secondary schools over a 12 month period and collectively we had a range of specialisms which enabled us to meet individual needs and to address the root causes of the children’s negative patterns of behaviour. Young people started our programme with a well-being score below the national average (47.5), and completed it above the national average (51) after just three days of intervention. Young people have fed back that participating in this programme helped them; trust other people, care about others, focus more, find their voice, be heard, respect people, grow in confidence and feel nurtured. We know that the higher young people’s emotional wellbeing, the more likely they are to stay in education, create positive relationships with peers and trust adults. We know that all of these positive outcomes reduce the likelihood of their involvement with crime.

  2. Park View School. In September 2019, Khulisa also began working with Park View, a mixed comprehensive secondary school, based in Tottenham (London Borough of Haringey) with around 8001000 children. Our aim with this school is to build a sustainable trauma-informed model that sees both young people and staff supported in terms of their wellbeing, with a focus on the most vulnerable young people given equal opportunities to reach their potential. Khulisa first delivered a whole school training session for 160 staff in September 2019, focusing on the benefits of being trauma-informed. At the same time, we also delivered our social and emotional skills development programme for the most vulnerable and behaviourally challenging young people. The outcomes of this partnership are yet to be evaluated but we continue to work collaboratively and plan to replicate this whole-school model to other boroughs in London.

  3. Recycling Lives . Recycling Lives is a rehabilitation organisation supporting prisoners to gain employment in the North-West of England. We have partnered to support young men during the final months of their sentences, whilst they engage in employability workshops in preparation for release. This partnership has extended to work across the North-West, including HMP Kirkham, HMP Lancaster Farm and Longridge agency for offenders on Release on Temporary License (ROTL). The partnership began with four mentees at HMP Kirkham, and the initial plan was to deliver a 6 month pilot programme. This was extended beyond the six months due to the positive outcomes achieved, and we have since supported 58 prisoners in total in the North-West. Through this local partnership, we have also established good relationships with statutory and support agencies, such as housing providers.

Strategic Objective #3 Build our evidence-based and speak up to influence Policy & Practice

Khulisa has significantly increased its capacity to influence policy and practice this year. Most notable is the completion of our 3-year involvement with the Youth Empowerment and Innovation Project. This involved working with 18 partners across 7 EU countries to construct and test an innovative policy and practice intervention aimed at preventing radicalisation. During the course of the Youth Empowerment and Innovation Project we engaged with 3,540 individuals in 7 countries aged between 16 and 78 to capture their attitudes

11

KHULISA DIRECTOR’S REPORT CONTINUED For the year ended 31 March 2020

and knowledge about radicalisation, while violent radicalisation through positive psychology and the application of the Good Lives Model with 354 practitioners and 195 policy makers. The project found that education is key and in fact the most effective tool to help prevent violent youth radicalisation. Through our contribution to the YEIP project, we helped create a range of training, books, and toolkits to help policy makers, both nationally and internationally form more effective policies to tackle violent youth radicalisation. The materials are all available here: https://yeip.org/

Other notable policy contributions and involvement in roundtables include:

Strategic Objective #4 Grow income and develop a sustainable business model

We had aimed to raise £850,000 in 19/20 and we eventually raised £766,717 (equivalent to 5% income growth). Whilst this income growth is positive, we are also pleased with the excellent progress we’ve made in diversifying our income sources: corporate and individual donations are now worth 15% (3% in 18/19) and sales are worth 4% (vs 5% in 18/19) meaning we are now less reliant on Trusts and Foundations (81% vs 92% in 18/19). A key benefit of this more diverse funding base is a growth in the proportion of unrestricted income (46% to 48%).

The Future of Khulisa

In 2021, we will launch our new 3 year strategy. In developing this plan, we have reflected on our key learnings from 2017-2020 and intend to:

12

KHULISA DIRECTOR’S REPORT CONTINUED For the year ended 31 March 2020

A message of thanks

Whilst the impact of Covid-19 and changes to our programme does not fall within this reporting period, we would be remiss in not mentioning it and how it affects our future. Since the outbreak of Covid-19, Khulisa has transformed our delivery model onto an online platform. Within the first 12 weeks of the lockdown, we had a suite of digital programmes and toolkits which gave young people and the professionals and family who care for them constant access to our resources. Within the first 12 weeks of lockdown, our digital programmes reached 50 young people and over 2,000 professionals (more than double the number of professionals we reached in the preceding twelve months). With the surge in demand for wellbeing support for young people during and after the outbreak of Covid-19, we are working hard to respond to a waiting list of over 160 organisations that require our help.

As ever, delivery of our programme would not be possible without the support of key partners and funders, including local authorities, schools and prisons. We are also members of the Fair Education Alliance, London Youth, Clinks, the SCYJ and various other community groups that promote the wellbeing of vulnerable young people.

We would like to give our heartfelt thanks to our valued donors, partners and commissioners — we hope you see us continuing to realise our shared objectives with passion, positivity and integrity. We would like to recognise our long-standing partnerships with: The Monument Trust, The Esmée Fairbairn Foundation, the Paul Hamlyn Foundation, the Henry Smith Charity, The Rank Foundation, Evan Cornish Foundation, AB Charitable Trust and the Zochonis Charitable Trust. We hope you continue to feel that the growth of our impact, evidence and influence in the sector is our shared success.

Thank you also to our outstanding team of staff, trustees, volunteers and ambassadors - your commitment to our participants, vision and values is the cornerstone of our success and we should all feel justly proud of another impactful year of work.

Cara Cinnamon

Chief Executive

13

KHULISA Note from the Chair of Trustees For the year ended 31 March 2020

Chair’s note

Khulisa continues to build its reputation as an effective, evidence-based charity. We consistently demonstrate that when we improve young people’s social and emotional wellbeing, we help reduce mental health issues, prevent behavioural difficulties and promote not only academic attainment but lifelong learning and success (Early Intervention Foundation, 2015, OECD, 2020).

As well as our continued support to young people, this year Khulisa has made significant progress in training frontline professionals. This is crucial because frontline professionals often find themselves playing many roles for a young person, ranging from an authority figure to being the closest they have to a primary care-giver. This matters because positive relationships and nurturing support systems are a strong buffer against the effects of trauma and adverse childhood experiences. Positive relationships give young people space to test and develop adaptive coping skills. It is this responsibility that frontline professionals must be aware of and Khulisa is there to help. We support professionals to not only have an understanding of how trauma affects both brain and body, (particularly during childhood and adolescence) but also in developing skills to (1) help young people to regulate their emotions (co-regulation); (2) effectively manage their own wellbeing and resilience, in pursuit of role modelling positive relationships for young people and avoiding the impact of compassion fatigue.

Our work to train professionals is now in high demand and we look forward to expanding our work as a key part of our 2021-24 strategy. In preparation for the launch of this new strategy, Khulisa has matured significantly as an organisation and made strategic investments in its organisational capacity in preparation for expansion, such as:

I would like to give my heartfelt thanks to our valued donors, partners and commissioners – we hope you see us continuing to realise our shared objectives with passion, positivity and integrity. Thank you also to our outstanding team of staff, trustees, volunteers and ambassadors – your commitment to our participants, vision and values is the cornerstone of our success and we should all feel justly proud of another impactful year of work.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by the Board of Trustees on 27 January 2021 and signed by:

Jean-Marc Morel

Chair

14

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF: KHULISA (A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL)

Opinion

We have audited the financial statements of Khulisa (the ‘charitable company’) for the year ended 31 March 2020 which comprise the Statement of Financial Activities (incorporating Income and Expenditure Account), the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

15

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF: KHULISA (A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL)

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

16

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF: KHULISA (A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL)

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Kevin Fisher BA FCA CTA (Senior Statutory Auditor) For and on behalf of Myrus Smith Chartered Accountants and Statutory Auditor

Norman House 8 Burnell Road Sutton, Surrey SM1 4BW

27 January 2021

17

KHULISA

STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 March 2020

(Incorporating Income and Expenditure Account)

Notes
Income and endowments from:
Donations and legacies
2

Charitable activities
3
Investments
4
Expenditure on:
Raising Funds
5
Charitable Activities
6
Net income / (expenditure)
7
Transfers between funds
14
Net movement in funds
Total funds brought forward
14
Total funds carried forward
14		 Unrestricted
Funds
Restricted
Funds
2020
Total
Funds
2019 Total
Funds
£
£
£
£
338,220
61,929
400,149
382,023
30,197
336,331
366,528
348,130
40
-
40
60
368,457
398,260
766,717
730,213
73,217
-
73,217
95,681
269,426
443,837
713,263
670,120
342,643
443,837
786,480
765,801
25,814
(45,577)
(19,763)
(35,588)
-
-
-
-
25,814
(45,577)
(19,763)
(35,588)
122,110
116,486
238,596
274,184
147,924
70,909
218,833
238,596

The Statement of Financial Activities includes all recognised gains and losses.

All income and expenditure derives from continuing activities.

The accompanying notes form part of these Financial Statements.

18

KHULISA (Company no. 06210432)

BALANCE SHEET As at 31 March 2020

Notes
FIXED ASSETS
Tangible fixed assets
9
CURRENT ASSETS
Debtors
10
Cash at bank
CREDITORS
Amounts falling due within one year
11
NET CURRENT ASSETS
NET ASSETS
15
Represented by:
Unrestricted Funds
14
Restricted Funds
14
TOTAL FUNDS		 2020
£
£
1,877
115,863
140,779
256,642
39,686
216,956
218,833
147,924
70,909
218,833		 2019
£
£
3,974
120,087
186,385
306,472
71,850
234,622
238,596
122,110
116,486
238,596		 2019
£
£
3,974
120,087
186,385
306,472
71,850
234,622
238,596
122,110
116,486
238,596
256,642
39,686		 306,472
71,850
238,596
122,110
116,486
238,596

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

The accompanying notes form part of these Financial Statements.

Approved by the Board of Trustees on 27 January 2021.

Jean-Marc Morel Chair

19

KHULISA

CASH FLOW STATEMENT

For the year ending 31 March 2020

FLOW STATEMENT
e year ending 31 March 2020
Cash flows from operating activities
Net movement in funds per Statement of Financial Activities
Adjustments for:
Depreciation
Loss/(profit) on disposal of tangible fixed assets
Interest receivable
(Increase) / decrease in debtors
Increase / (decrease) in creditors
Net cash provided by / (used in) operating activities
Cash flows from investing activities
Interest received
Purchase of tangible fixed assets
Proceeds from disposal of tangible fixed assets
Net cash provided by / (used in) investing activities
Change in cash and cash equivalents
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward
Analysis of cash and cash equivalents
Cash at bank		 2020
£
(19,763)
789
2,504
(40)
4,224
(32,164)
(44,450)
40
(1,196)
-
(1,156)
(45,606)
186,385
140,779
2020
£
140,779		 2019
£
(35,588)
2,413
(273)
(60)
(13,699)
30,237
(16,970)
60
(5,299)
2,520
(2,719)
(19,689)
206,074
186,385
2019
£
186,385

20

KHULISA

NOTES TO THE FINANCIAL STATEMENTS For the year ending 31 March 2020

1 ACCOUNTING POLICIES

a) Basis of accounting

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: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Companies Act 2006, the Charities Act 2011 and UK Generally Accepted Accounting Practice.

The financial statements are prepared on a going concern basis and under the historical cost convention. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

b) Company status

Khulisa is a private company, registered in England and Wales, limited by guarantee, has no share capital and is also a registered charity. In the event of the Company being wound up, each member is liable to contribute an amount not exceeding £1. The address of the registered office is given in the Reference and Administrative Information on page 3.

c) Capital items & depreciation

Office equipment and fixtures and fittings are depreciated using the straight line method over four years. Other Project assets are depreciated over the life of the project, (normally three years) apart from project assets that are fully grant funded, which are written off in the year of purchase. Capital items have a minimum purchase cost of £500.

d) Income

Items of income are recognised in the Statement of financial Activities (SOFA) when all of the following criteria are met:

e) Expenditure

Expenditure is recognised on an accruals basis as soon as there is a legal or constructive obligation committing the charity. Expenditure includes any VAT which cannot be recovered.

Expenditure on raising funds includes those costs incurred on attracting donations and grant funding.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Expenditure is allocated under the principal categories of the SOFA on a basis designed to reflect the use of the resource. Direct costs relating to a particular activity are allocated directly, support costs are allocated on an appropriate basis, e.g. floor areas, per capita or estimated usage.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include audit fees and costs linked to the strategic management of the charity. In addition to ongoing Governance costs, one-off costs incurred in connection with building governance capacity are included within Charitable Activities and are in part matched by specific funding.

21

KHULISA

NOTES TO THE FINANCIAL STATEMENTS For the year ending 31 March 2020

f) Fund accounting

Restricted funds are funds subject to specific conditions imposed by the donors, or by appeals for specific projects, and the purpose and use of restricted funds is set out in the notes to the financial statements. Designated funds are unrestricted funds which are set aside for specific purposes at the discretion of the Trustees.

The general fund comprises the accumulated surpluses on the SOFA less any funds designated for specific purposes by the Trustees.

g) Pension costs

The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

22

KHULISA

NOTES TO THE FINANCIAL STATEMENTS For the year ending 31 March 2020

2
INCOME FROM DONATIONS AND LEGACIES
Core support grants
Donations		 2020
2019
£
£
387,929
358,719
12,220
23,304
400,149
387,023

Of the £400,149 recognised in 2020 (2019: £387,023), £338,220 (2019: £308,952) related to unrestricted funds and £61,929 (2019: £78,071) related to restricted funds.

3
INCOME FROM CHARITABLE ACTIVITIES
Sales of Training
Grants
Face It
Silence The Violence (formerly named Prison Delivery)
Resettlement: Mentoring
Resettlement: Community (now integrates Mentoring)
Trauma
Research & Internships
Leigh Trust		 2020
2019
£
£
30,197
33,806
170,179
171,698
54,892
73,500
-
30,000
103,260
30,000
5,000
-
-
9,126
3,000
-
366,528
348,130

Of the £366,528 recognised in 2020 (2019: £348,130), £30,197 (2019: £33,806) related to unrestricted funds and £336,331 (2019: £314,324) related to restricted funds.

4 INCOME FROM INVESTMENTS
4
INCOME FROM INVESTMENTS
Bank interest		 2020
2019
£
£
40
60
40
60

All the income is unrestricted for both years.

23

KHULISA

NOTES TO THE FINANCIAL STATEMENTS For the year ending 31 March 2020

5 EXPENDITURE RAISING FUNDS

5 EXPENDITURE RAISING FUNDS
Direct Support 2020 2019
Costs Costs Total Total
£ £ £ £
Face It 53,477 19,740 73,217 81,119
Silence the Violence (formerly named Prison Delivery) - - - 14,562
53,477 19,740 73,217 95,681
Expenditure on raising funds was entirely unrestricted in both years.
6
EXPENDITURE ON CHARITABLE ACTIVITIES
Analysed by activity:
Face It
Silence the Violence (formerly named Prison Delivery)
Resettlement: Community (including Mentoring)
Analysed by nature:
Direct Costs
Delivery staff salaries
Facilitator costs
Other direct programme costs
Assessment and evaluation
Staff training
HR & recruitment
Support Costs
Accounting & payroll
Office & IT(Business Admin Costs)
Premises costs (Rent)
Core Staff salaries
Governance: Staff Salaries
Governance: Audit Fees
Governance: Trustee Expenses and Strategy		 2020
2020
Direct
Support
Costs
Costs
£
£
201,822
67,887
171,654
61,190
168,254
42,456		 2020
2019
Total
Total
£
£
269,709
248,714
232,844
222,448
210,710
198,958
541,730
171,533		 713,263
670,120
2020
2019
£
£
394,631
362,207
46,409
63,290
26,940
22,283
10,850
-
11,553
-
51,347
53,720
541,730
501,500
1,710
5,251
29,424
48,321
30,616
28,918
100,540
75,585
5,982
7,403
3,000
2,520
261
622
171,533
168,620
713,263
670,120

Of the £713,263 expenditure recognised in 2020 (2019: £670,120), £269,426 (2019: £221,223) was charged to unrestricted funds and £443,837 (2019: £448,897) was charged to restricted funds.

24

KHULISA

NOTES TO THE FINANCIAL STATEMENTS For the year ending 31 March 2020

7 NET INCOME / (EXPENDITURE)
7
NET INCOME / (EXPENDITURE)
This is stated after charging/(crediting):
Depreciation
Loss/(Profit) on disposal of tangible fixed assets
Operating lease rentals
Auditor’s remuneration – Audit services
8
STAFF COSTS
Salaries
Employer’s National Insurance
Employer’s Pension Costs
Details of employees who received total employee
benefits (excluding employer pension costs) in
excess of £60,000 were as follows:
£60,000 - £70,000
Total employee benefits of key management personnel
Under FRS 102, employee benefits includes gross salary,
employer’s NIC and employer’s pension contributions
Average number of staff based on full-time equivalents
Average monthly number of staff		 2020
2019
£
£
789
2,413
2,504
(273)
30,616
28,918
3,000
2,520
£
£
493,835
451,863
29,095
45,461
39,637
22,874
562,567
526,198
2020
2019
No.
No.
0
1
212,669
240,535
2020
2019
No.
No.
13.0
12.0
14.0
13.0

25

KHULISA

NOTES TO THE FINANCIAL STATEMENTS For the year ending 31 March 2020

9 FIXED ASSETS

Cost
At 1 April 2019
Disposals in year
Additions in year
At 31 March 2020
Depreciation
At 1 April 2019
Charge for the year
Eliminated on disposal
At 31 March 2020
Net book value
At 31 March 2020
10 DEBTORS
Trade debtors
Other debtors
Prepayments and accrued income
11
CREDITORS
Amounts falling due within one year
Deferred income
Trade creditors
Accrued expenses
Social security and other taxes		 2020
2019
£
£
9,654
7,155
(7,694)
(2,800)
1,196
5,299
3,156
9,654
5,680
3,335
789
2,413
(5,190)
(553)
1,279
5,680
1,877
3,974
2020
2019
£
£
32,450
5,719
500
500
82,913
113,868
115,863
120,087
2020
2019
£
£
2,434
-
6,910
6,930
8,767
16,896
21,575
48,024
39,686
71,850

Deferred income relates to contracts for which the income is received in advance of the services to be provided.

26

KHULISA

NOTES TO THE FINANCIAL STATEMENTS For the year ending 31 March 2020

12 RELATED PARTY TRANSACTIONS

No trustee received remuneration in 2019-20 or 2018-19. The total cost of Board activity in 2019-20 was £3,293 (£3,142 in 2018-19). £9 in expenses was reimbursed to 1 trustee in 2019-20 (Nil in 2018-19).

Unrestricted donations from
related parties		 2020
2019
£300
£300

13 TAXATION

No Corporation tax has been provided in these financial statements because the company, a registered charity, is within the exemption granted by Part 11 of the Corporation Tax Act, 2010.

14 MOVEMENT IN FUNDS

Opening
Balance
1 Apr 2019
Income
Expenditure
Transfers
between
funds
£
£
£
£
RESTRICTED FUNDS
Early Intervention Pathway
66,429
170,179
198,844
-
Resettlement Pathway
28,471
103,260
112,424
-
Rehabilitation Pathway
21,586
54,892
62,640
-
Trauma – Matrix Chambers
-
5,000
5,000
-
Leigh Trust
-
3,000
3,000
-
Henry Smith
-
45,000
45,000
-
BSBT
-
16,929
16,929
-		 Closing
Balance
31 Mar 2020
£
37,764
19,307
13,838
-
-
-
-
Total Restricted Funds
116,486
398,260
443,837
-		 70,909
UNRESTRICTED FUNDS
General fund 122,110 368,457
342,643
-		 147,924
Total Unrestricted Funds
122,110
368,457
342,643
-		 147,924

27

KHULISA

NOTES TO THE FINANCIAL STATEMENTS For the year ending 31 March 2020

14 MOVEMENT IN FUNDS / Cont.

Comparative information for the movement in funds is as follows:

14 MOVEMENT IN FUNDS
Opening
Balance
1 Apr 2018
Income
Expenditure
Transfers
between
funds
£
£
£
£
RESTRICTED FUNDS
Early Intervention Pathway
104,486
171,698
209,755
-
Research and Internships
9,557
9,126
18,683
-
Resettlement Pathway
14,513
60,000
46,042
-
Rehabilitation Pathway
23,632
73,500
75,546
-
Monitoring and Evaluation
Development
20,800
-
20,800
-
Henry Smith
-
50,000
50,000
-
BSBT
-
28,071
28,071
-		 Closing
Balance
31 Mar 2019
£
66,429
-
28,471
21,586
-
-
-
116,486
122,110
122,110
238,596
Total Restricted Funds
172,988
392,395
448,897
-
UNRESTRICTED FUNDS
General fund
101,196
337,818
316,904
Total Unrestricted Funds
101,196
337,818
316,904
-
Total Funds
274,184
730,213
765,801
-

Early Intervention Pathway – Funds provided to Khulisa are committed to delivering Silence the Violence/Face It programmes in schools and community settings for 11-18 year olds at risk of gang violence and school exclusion who may or may not already be in contact with the police and youth offending services.

Research and Internships – Funds provided to provide admin support and research theories.

Resettlement and Rehabilitation Pathways – Funds provided to Khulisa to provide services for those recently released back into the community after prison. – Rehabilitation is Silence the violence

Monitoring and Evaluation Development – Funds provided are committed to supporting the delivery and development of Khulisa's programmes along with our overall monitoring and evaluation processes.

Henry Smith – Funds provided to support the expansion of our prison delivery and mentoring of people who are preparing to be released from prison

BSBT (Building a Stronger Britain Together) – Funds provided to deliver programmes to support young people who are vulnerable to extremism.

Trauma – Funds from Matrix Chambers for the delivery of trauma training.

Leigh Trust – Funds to support the delivery of our prisoner rehabilitation programme and our through-the-gate mentoring programme.

28

KHULISA

NOTES TO THE FINANCIAL STATEMENTS For the year ending 31 March 2020

15 ANALYSIS OF ASSETS AND LIABILITIES BETWEEN FUNDS

15 ANALYSIS OF ASSETS AND LIABILITIES BETWEEN FUNDS
Fixed assets
Tangible fixed assets
Current assets
Debtors
Cash at bank
Liabilities
Creditors falling due within one year
Net Assets		 2020
Unrestricted
2020
Restricted
2020
Total
£
£
£
1,877
-
1,877
23,670
92,193
115,863
140,779
-
140,779
164,449
92,193
256,642
18,402
21,284
39,686
18,402
21,284
39,686
147,924
70,909
218,833

Comparative information for the net assets between funds is as follows:

Fixed assets
Tangible fixed assets
Current assets
Debtors
Cash at bank
Liabilities
Creditors falling due within one year
Net Assets		 2019
Unrestricted
2019
Restricted
2019
Total
£
£
£
3,974
-
3,974
28,290
91,797
120,087
147,326
39,059
186,385
175,616
130,856
312,462
57,480
14,370
71,850
57,480
14,370
71,850
102,110
116,486
238,596

29

KHULISA

NOTES TO THE FINANCIAL STATEMENTS For the year ending 31 March 2020

16 CONTINGENT ASSETS

The total grant funding awarded to the charity in respect of multi-year grants but not recognised as income amounts to £492,856 as at 31 March 2020 (2019: £705,844). These funds will be recognised in accordance with agreed budgets and specified or implied timeframes.

17 OPERATING LEASE COMMITMENTS

At 31 March 2020, the total minimum payments due under non-cancellable operating lease agreements amounted to £9,888 (2019: £7,656). These payments fall due within one year.

18 SUPPORTERS AND DONORS

Everyone involved in all of Khulisa’s projects would like to thank all those who have supported our work over the past year.

BCBN Charles Hayward Foundation Children In Need Ellis Campbell Foundation Esmée Fairbairn Evan Cornish Foundation Henry Smith Charity Home Office John Ellerman Foundation John Lyon's Charity Matrix Chambers Monument Trust MOPAC Nesta Paul Hamlyn Foundation Sir John Cass's Foundation Southall Trust Sue and Sandy Arbuthnot St James's Place Charitable Foundation The Goldsmiths' Company The Grocers' Company The Mercers' Company The Noel Buxton Trust The Vintners' Company Zochonis Foundation

30