2020-08-31-accounts - Catch 22 Charity Limited

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CATCH 22
CHARITY
LIMITED
Report and
Financial Statements
FOR THE YEAR ENDED 31 AUGUST 2020
Company number: 06577534
Registered charity number: 1124127
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p4 Trustees’ Report - Intro from Chris Wright, CEO
p5 About Catch22
p6 Justice
p10 Education
p14 Employability and Skills
p20 Apprenticeships
p22 Young people and Families
p26 Community Links
p27 Partnerships
p28 Close from Terry Duddy, Chair
p31 Finance and Governance p43 Auditor’s Report p47 Consolidated Statement of Financial Activities for the year ended 31 August 2020
p48 Consolidated Balance Sheet at 31 August 2020 p49 Charity Balance sheet at 31 August 2020 p50 Consolidated Cash Flow Statement for the year ended 31 August 2020 p51 Notes to the Financial Statements for the year ended 31 August 2020

“ CATCH22 IS AN OPTIMISTIC ORGANISATION”

Every annual report for 2020, whether from the private, public, or voluntary sectors will inevitably start by recognising that this was a year like no other in recent memory, certainly none that I can recall in my lifetime.

People, communities, and organisations from across the country have stepped up and done extraordinary things to support others, providing kindness, love, and compassion to the many who have struggled over the past year or so. These are the characteristics of a good society.

My colleagues at Catch22 have demonstrated these behaviours day in and day out over the last 15 months. They have gone to extraordinary lengths to continue reaching the people we are here to support. This report is full of stories and impact from our frontline, but it also reflects the work of those who behind the scenes do so much to ensure that we can deliver. That effort was reflected last March when, like everyone else, we suddenly were no longer in the office. Within short-order we managed to connect over 1000 people to our Microsoft Teams solution.

This report reflects a

collective effort not only of Catch22 colleagues but of our partners, our funders, and commissioners. There has been a lot of commentary about building back better

but we must also take into the future the lessons we have learnt from the pandemic. That people matter, that there are ways to demonstrate accountability and performance which might look different to the orthodox approach to contract management. Organisations like Catch22 are agile, we can move at pace and make things happen providing there is a degree of trust between those asking and those doing.

We’ve also seen the

willingness of colleagues to think and act differently, these are the lessons we need to build into our future plans. And finally, the pandemic has demonstrated more than ever the need to do more to level up society, to address the digital divide, to ensure people have the skills and capability to secure decent jobs, and to root out the systemic inequalities and discrimination that continue to blight our systems and people’s lives.

I’ve always advocated that Catch22 is an optimistic organisation. We attract passionate people to work with us and to support us, as this report demonstrates we are privileged to gain insight into the lives of those we support and we are committed to applying these insights to contribute to a better way.

Chris Wright Catch22 CEO

Last ear y

Our Justice team worked with:

JUSTICE

There is no doubt that the past year has seen many challenges, on a global, national and criminal justice sector level. Catch22 and our Justice Hub has, throughout this time, remained solution focussed, adaptable and committed to providing quality commissioned services, supporting our service users and contributing to making our communities safer. Within the Catch22 Justice footprint, we are proud of the evidenced impact of our work across both victim, community and offender focussed services. We have navigated the complexities of delivering our quality provision by adapting to change, being innovative and by blending our model by increasing the use of technology to provide vital support virtually.

and national needs; as such we are working at the forefront of social justice policy and organisational coalitions. During a time of financial unpredictability, and a national, perhaps global recession, we have continued to promote our vision and methodology as drivers for change for good. We have increased our reach, by gaining new contracts at HMP Wandsworth resettlement and extending our Wolverhampton Violence Reduction Team to include a young person’s resettlement in the community service. In addition, we have seen contract extensions and growth in our Victim’s services.

2020 was without doubt memorable for all sorts of reasons but I am sure that 2021 will be even more so.

Our social impact, along with our strategy going forward are informed by our partners, commissioners, service users and local

Lisa Smitherman Director of Justice

FOLLOWING WORKING WITH CATCH22 THERE WAS:

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of commissioners were overall
either satisfied or very
satisfied with our work
100%
13%
96.5%
Catch22
increase in participants
custody.who reported that they
of service users were satisfied
with the service provided by
were unlikely to engage in
criminal/gang activity in
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18% increase in participants who reported no intention of carrying a weapon in the community.

Resettlement & Rehabilitation Reparation Services Victim Services & Offender Management Unit Violence Reduction Team 13 Custodial Gang/Violence Reduction Services Child Exploitation Services 14 10

GANGS AND VIOLENCE REDUCTION

The Catch22 Gangs and Violence Reduction Custodial Service works within the prison to promote an understanding of community issues and how these issues may impact a custodial setting. We support prison management by reducing the risk posed by gang-involved prisoners, so that violent incidents are prevented.

Catch22 Gang services work with 7708 Service users in both custodial & community settings. We have 4 services permanently based in prisons and an in reach approach to many more. We also have 2

WOLVERHAMPTON VIOLENCE REDUCTION TEAM

Catch22 Wolverhampton Violence Reduction Service uses an end to end approach working with individuals, families, schools, custodial estates and communities in a joined up way that aims to reduce gang involvement and its effect on local areas. Our work targets and builds on service users strengths to prevent them from becoming involved in gangs, and provides a range of interventions for gang-involved young people to support them to exit. We use a variety of methods to deter young people from engaging in, or continuing negative behaviours associated with gang activity by providing support to maintain or re-enter education, training or employment, one to one key working, providing activity intervention. We work within the secure estate and support individuals transition as they reintegrate back into community and support pro-social lifestyles.

LONDON GANG EXIT

Catch22 is a partner within theLondon Gang Exit (LGE) consortium. LGE aims to reduce offending, support individuals to access safe, stable housing and encourages young people back into employment, education or training across the 32 boroughs in London.

Catch22 owns the Custodial estate pathway for the consortium which sees us responsible for generating a referral pipeline of gang affiliated individuals from the secure estate into the service - often regarded as the most complex and gang entrenched cohort. The model is based on an endto-end management approach.

This ensures that positive behavioural change achieved during custody has a greater chance of success, supported through a continuous relationship through the gate, which the offender recognises as supportive, trusting and knowledgeable.

THROUGH THE GATE

Working in collaboration with community-based Offender Managers and Responsible Officers, Catch22 supports prisoners as they transition through the gate and into the community.

Our peer-mentors are volunteers currently serving their sentence and offer a unique perspective while supporting prisoners’ rehabilitation.

Our evidence-based approach involves collaboration with housing and employment partners and brings in the support of family members.

Our robust resettlement plans include practical and tangible enhancements for the following pathways:

Accommodation - Victims of domestic violence
- Education, training and - Victims of sexual assault employment - Support for sex workers
- Finance, benefits and debt - Support for care leavers - Physical and mental health - Support for ex-military - Substance misuse - Support for foreign nationals - Relationships and families - Attitudes, thinking and behaviour

VICTIM SERVICES

HERTFORDSHIRE BEACON

VICTIM FIRST

NOTTINGHAMSHIRE VICTIM CARE

PARTNER ENGAGEMENT

Our victim services proactively bring organisations together to share best practice and to improve the support available to victims.

HERTFORDSHIRE BEACON

VICTIM FIRST designed and developed the Victim First Champions initiative . These

NOTTINGHAMSHIRE VICTIM

lead a countywide Restorative Justice Forum which brings together criminal justice partners from around the county. The forum raises awareness about the work we are doing, to increase referrals, and to take a strategic approach to exploring best practice around restorative justice.

CARE collaborate closely with local partners Redthread , who deliver youth violence interventions in the county’s A&E department. This partnership has created a seamless support journey for young people, ensuring vulnerable service users get the help they need to continue a positive recovery journey.

Champions are key individuals at partner agencies who we have trained to promote our service to victims within their own organisations. Champions can directly refer service users to us or help those in need to self-refer.

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Read the full Justice Review here
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EDUCATION

I want to acknowledge and celebrate the ethos, resilience and continuing high expectations of every colleague in our schools and the leadership of every Headteacher, the Executive Principals and the wider Education Senior Leadership Team during the Covid-19 challenge.

Our schools have remained open for our pupils throughout this extraordinary time and the new provision arrangements put in place have maintained rigour and proactivity in our safeguarding, enhanced bespoke support for children, young people and families and ensured continuity of a personalised learning offer for all pupils.

The focus and actions of all leaders on our strategic priorities to further strengthen the quality of education has continued at pace. The positive impact on

pupil outcomes and overall achievement is evident in the improving trends across our performance and impact data. Each of our schools have made demonstrable progress on their school improvement journey…making all that has been achieved during this disruptive period all the more remarkable.

Every day everyone in our schools is a role model for our pupils. Because of their ethos and professionalism, specialist skills and knowledge, unique talents and creative practice they support our pupils to be safe and feel safe, stay healthy, enjoy learning and achieve well and to make a positive contribution to a better society. To everyone in our schools every day… thank you for being amazing role models

Jane Reed, Education CEO

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83%
of our learners
achieved a GCSE in
English
of leavers across our
schools went on to a
positive destination
85%
83% 80%
GCSE in Maths educational needs
of our learners achieved a of our learners have special
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54% of our learners receive free school meals

MULTI ACADEMY TRUST Ashwood Academy - Basingstoke Austen Academy - Basingstoke Brunel Academy - Paignton Burton Academy - Torquay Coppice Spring Academy - Basingstoke Everitt Academy - Lowestoft Fen Rivers Academy - King’s Lynn Spires Academy - Northampton

INDEPENDENT

Norfolk - Norwich PPP - Ladbrook Grove, West London Suffolk - Ipswich Oxford - Oxford Wales - Newport

The Burton Academ y

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The headteacher and staff share a commitment to provide pupils with an opportunity to be
successful. Most pupils arrive at the school with negative experiences of education. Many pupils
have complex needs. As a result, they exhibit challenging behaviour. Staff take time to get to know
each pupil. Building strong relationships with pupils and gaining their trust are paramount.” [Ofsted
impact statement]
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100% of our learners achieved an English and Maths qualification

The Burton Academy supports the social, emotional, academic and vocational development of young people who are impacted by a range of traumatic life experiences. We use the advantages of a smaller setting and a high staff to student ratio to ensure that every student has a good place to learn, good people to learn from and a strong sense of purpose which reflects their own skills, needs and interests.

good progress and gaining the qualifications necessary to move onto their next stage of education, employment or training.

Students come to us with a myriad of challenges that include failure to succeed in mainstream education: crime, drugs, lack of family support and the pressures of materialism, the media and 24-hour social

networking. We work with our learners and give them the tools to become active, responsible and employable citizens who:

understand healthy relationships

The Burton Academy offers every learner an ambitious curriculum, within which they will access a personalised pathway designed to

help them become independent and resilient learners. Our classroom teachers use their strong subject and pedagogical knowledge to design and deliver lessons which stretch and challenge all learners, leading to our students making consistently

can recognise risks to their wellbeing
use technology appropriately
celebrate diversity
tolerate difference
promote equality for all

Include Wales

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“Across the school, the strong working relationships between staff and pupils have a positive impact
on improving pupils’ confidence and behaviour…they show interest in their work and participate
enthusiastically.” [Estyn Inspection Report]
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80% of our pupils have Special Educational Needs

Catch22 Newport Primary School is an Estyn registered Independent School. We provide full-time, alternative education for young people, most of whom have social, emotional, and/or mental health needs.

We are registered with the Welsh Government for 18 places at Key Stage 1 and 2. Pupils attend our school for assessment, social nurture and academic intervention, before being supported back into appropriate mainstream or specialist schooling.

Pupils present with multiple barriers to learning, and generally this manifests as pupils who display a lack of selfesteem and/or confidence within a school setting.

Our mission is to enable each pupil to leave school with renewed confidence in their ability, and for this stepping stone to provide a springboard that reinvigorates their school life.

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Read the full Education Review here
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EMPLOYABILITY & SKILLS

After what has been a very difficult year all round, I am very proud to be part of such a dedicated hard-working organisation. We have had to adapt at pace, keep ourselves and everyone we work with safe and ensure our customers and service users are still given the best quality programmes we can offer. Building on the achievements of last year as set out in this review, as we enter a new year we’ve seen amazing collaborations and new ventures with Jobs22, Kickstart Community, JP Morgan Chase and also National Grid - while also having funding extended by Barclays.

I’m optimistic about our ability to grow our offering and support more people to find their purpose and thrive. With the commitment and drive from our teams, we can continue to make a difference to peoples’ lives; whether that’s helping them gain qualifications and vital life skills in our Colleges and through our NCS programmes or supporting them in their search for sustainable employment.

Victoria Head Director of NCS, Employability and Skills

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378
learners in
our colleges
100%
1,000
qualifications commissioners
satisfied with the
delivered
service
1,324
of clients felt that they
received sound advice to support them goals
towards their career
523
88% clients into paid
employment
people enrolled with our
employability services
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COLLEGES

Bishop Auckland Great Yarmouth Kent Maidstone Nottingham Peterlee Southend Thetford

EMPLOYABILITY

NCS

North East: Durham County, Newcastle, North Tyneside West Midlands: Herefordshire, Shropshire, Telford and Wrekin, Wolverhampton, Worcestershire

North West: Cheshire East (Macclesfield), Liverpool, Manchester, Oldham, Sefton, Stockport, Tameside, Wirral South East: Bracknell Forest, East Sussex, Hampshire, West Berkshire, Windsor and Maidenhead, Wokingham East Midlands: Bakewell, Belper, Buxton, Chesterfield, Glossop, Ilkeston, Kettering, Wellingborough South West: Bath and Bristol

Barclays Connect with Work (London, Liverpool and Manchester) Bright Light (London) Digital Edge (London and Manchester) Social Switch (London) Inspiring Connections (London) Digital Leap (National) JP Morgan (National) Inspiring Families (National) Family Works (National) JETs (National)

DIGITAL EDGE

Digital Edge is a programme delivered by Catch22 in partnership with Microsoft, which helps people facing barriers to work embark on digital apprenticeships. The project sees Catch22 find and recruit candidates with a range of challenges – from gender and ethnicity barriers, homelessness, mental health issues, school exclusion and disability – and support them to access a digital apprenticeship with a local employer within Microsoft’s network of customers and partners.

The pilot project launched in January 2020, reaching out to people aged 18 to 25 in London and Manchester through job centres. The initial pilot phase of 23 trainees undertook a four-week training programme, building both the technical and employability skills required to gain a digital apprenticeship with a local employer within Microsoft’s network of customers and partners. The majority were from disadvantaged backgrounds, 13 were of minority ethnic origin, two had learning difficulties and one was disabled. Four were women.

The trainees learnt to present themselves positively (including through social media), write a good CV and cover letter, prepare for interviews, problem-solve and work in a team, while developing digital skills and commercial awareness. The course was initially delivered in person, and later remotely using Microsoft Teams in light of the Covid-19 pandemic, ensuring that everyone was able to participate and graduate, despite social distancing and travel restrictions.

Overall, from the Digital Edge pilot project, three people have gone on to gain an apprenticeship , including two with Microsoft or their partners, and one is planning to undertake further qualifications.

Given the success of the pilot, the programme has now been extended to cover Birmingham and Bristol – and now supports people not only into apprenticeships but also into other job roles.

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“ THE DIGITAL EDGE PROGRAMME
HAS BEEN REALLY SUPPORTIVE
AND CREATIVE IN THE WAY
THAT THEY WORK. IT PROVIDES
A STIMULATING ENVIRONMENT
WITH BIG OPPORTUNITIES TO
MAKE A HUGE IMPACT. THE TEAM
SUPPORTED ME TO COMPLETE
ONLINE IT COURSES AND GAIN
VIRTUAL WORK EXPERIENCE.”
[DIGITAL EDGE PARTICIPANT]
“I FOUND THE DIGITAL EDGE
PROGRAMME GOOD BECAUSE I
MET NEW PEOPLE WHILE I WAS
THERE . IT GOT ME WORKING WITH
NEW PEOPLE AND IN ACTIVITIES
AND WATCHING VIDEOS ON
HELPFUL TIPS AND WORKSHOPS
ABOUT DIGITAL AND TECHNOLOGY ”.
[DIGITAL EDGE PARTICIPANT]
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THE SOCIAL SWITCH PROJECT

Our innovative programme switches the narrative on how social media’s relationship to youth violence is understood, tackled and solved. Initially funded by Google.org, it is co-delivered by Catch22 and youth violence charity Redthread.

Recognising our impact last year, the Mayor of London’s Violence Reduction Unit is now supporting our next phase, backing our work to divert at-risk young people towards fulfilling digital careers. The programme has three elements – a digital skills pre-employability training designed to channel the creativity of London’s youth, an interactive training for professionals working with young people in London to help them apply best practice offline to the digital world, and grants for individuals or organisations that have creative ideas to support young people at risk of being affected by violence.

In the last year 750 frontline professionals and 65 young people were trained by the programme. 40 grants, totalling £99,500 were awarded to organisations – directly helping 1,672 at risk young people.

CATCH22 COLLEGES

We run 7 colleges for learners aged 16-19 year old which are focussed on the education and employment goals of our individual learners.

Last year we worked with 378 learners, delivering more than 1,000 qualifications. 74% of our learners progressed to a positive destination.

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“THE STAFF ARE ABLE TO
GET THE VERY BEST FROM
STUDENTS . AS A PARENT IT IS
STRESS FREE KNOWING YOUR
CHILD IS AT CATCH22 ”
[PARENT OF A LEARNER AT CATCH22
COLLEGE MAIDSTONE]
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OUR APPROACH

We work with students to develop a tailored learning programme which is matched to their interests and goals for the future. Students can pick from a range of learning options covering five key areas:

Functional skills
Vocational qualification
Life skills
Work experience
Progression

Our learners have enjoyed courses on life skills and wellbeing, employability skills, IT skills, construction, land-based studies, hair and beauty, hospitality and catering – as well as English and Maths functional skills.

With the Covid-19 pandemic affecting studies for the latter part of the College year, we provided a mix of in-school teaching for our most vulnerable children, homework packs and online learning.

DEVICES AND DATA – RASPBERRY PI

Having a device to use for home schooling was a major barrier for many of our pupils. Through our partnership with Raspberry Pi, we were able to secure 250 devices for our college students to help them continue their learning effectively.

NATIONAL CITIZEN SERVICE

We revised our programme to emphasise volunteering and community needs, and young people rose to the challenge. While not being able to be on site for NCS, hundreds of young people made the most of their NCS time with Catch22.

Catch22 is the largest delivery partner for NCS – covering 6 regions across England and engaging nearly 2,500 young people last year. Despite the immense challenges of 2020, our teams ensured that this year’s NCS Keep Doing Good Programme allowed young people to meet new people, challenge themselves and try extraordinary things.

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“I’M SO GLAD I GOT
INVOLVED… IT’S AN
AMAZING WAY TO SPEND
THE SUMMER , HELPING THE
LOCAL COMMUNITY AND
GAINING LIFE EXPERIENCE.”
MATTHEW, AGED 16
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Read the full Employability Review here

APPRENTICESHIPS

effectively with our apprentices has increased significantly. The increase in distinctions for our apprentices is a reflection in this method seeing results.

allows our tutors to support them more effectively in relation to their learning. This has already proved impactful with learners who are accessing the system and its strategies already reporting the difference it has made to their learning and progress. In addition, during Lockdown 1.0, we ensured every one of our apprentices were provided with a Microsoft 365 account, which gave them access to software such as Teams, Word, Excel as well as OneDrive for file storage. This enabled 100% of our learners with continued, uninterrupted access to their learning.

Internally, we have increased the number of Catch22 colleagues on a range of apprenticeship programmes. We launched an exciting Leadership & Management Development Programme in December 2020 with 30 aspiring managers and leaders, and with a further 26 staff accessing the Apprenticeship Levy on programmes from Level 2 through to Level 7 Degree Apprenticeships to enhance their learning, Catch22 are proudly invested in the development of our staff.

This last year has proved to be the most challenging that we have ever experienced both personally and professionally. The Apprenticeships Team have risen to this challenge and proved to be adaptable, resilient and passionate about the work we do. Embracing the new technology at our fingertips, we transitioned overnight to a fully remote delivery model that allowed our apprentices to continue to access their learning despite the restrictions.

We have used this period of remote learning to reflect on our delivery and have designed new models for every apprenticeship we deliver, and the impact that has made is interesting. We have seen an increase in learners engaging with our trainers more than twice per month, which in turn has enabled our average levels of progression to increase across the board. It has demonstrated to us that the traditional methods of face to face engagement can be blended with a remote approach. The stresses that face our trainers in terms of being on the road for a lot of the time have reduced and time spent interacting

Chris Stoker-Jones Director of Vocational Training

Investment in our processes and technology was vital to us maintaining a high level of support during 2020. We invested in Cognassist, which is a platform that provides insight into our apprentices’ cognitive needs and

100% of our learners engaged with their learning during Lockdown 1.0

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100%
of our apprentices provided
with a Microsoft 365 account
to enable access to technology
and software
to continue their
learning
Worked with over
2020
apprentices during
250
3%
increase on our Higher
Level Apprenticeships
83%
43%
achieving of apprentices increase in number
distinctions of our apprentices are
2019 under the age of 23
compared to
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What our employers say…

“We have worked with Catch 22 on our Property Management apprenticeships and have been extremely pleased with the level of tuition and support that they provide to our learners. They certainly live up to their vision to be a supportive network of people around the individual learner!”

Richard Scott – Head of HR, HML Group

“The apprenticeships have benefited our company by creating a talent pool of enthusiastic qualified individuals who are eager to succeed and develop themselves, many of our current apprentices are already looking to the future and visualising themselves in different roles and areas of the business, it’s an exciting journey for them and for us to guide and support them along the way.”

Jade Myers – Apprenticeship Scheme Team Leader, AA

What our apprentices say…

“I was pleased to be able to finish my showcase evidence remotely. It was not a major setback that we were not able to do this face-to-face, and this was due to the great software (Teams) that I was provided with by Catch22. This enabled us to complete the remaining discussions easily, using screen sharing.”

Harry, Customer Service Apprentice

“I have made more progress with my apprenticeship in the last few weeks than in the previous few months. Working from home has allowed me to avoid the dreaded commute and focus more time on my project. I have more regular meetings with my tutor now, using online technology”

Samantha, Property Management Apprentice

YOUNG PEOPLE AND FAMILIES

The Young People and Families Hub sits at the heart of Catch22. We cover a wide range of risks, harmful behaviours and challenges faced by young people and their families today. These include: Missing From Home, Child Exploitation, Substance Misuse, Emotional Wellbeing, Crisis Support and Mediation. Our approach is solution focused and evidence based.

The Young People and Families workforce of 200 staff and 60+ volunteers is passionate about the work they do. Our skilled teams form trusting relationships and work alongside children, young people and families helping them to build on their strengths, increasing their resilience in order to:

Feel safer
Be healthier both physically and mentally
Be more confident to make positive choices
Be more able to enjoy their life

Kate Wareham, Director of Young People and Families

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95%
feel safer
Over
100%
11,000
commissioners
people
satisfied with the
engaged service
90%
92%
improved
mental
health
of young people leave with a positive outcome
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LONDON

The Hive - Camden

The Hive - Social Enterprise - Camden Camden Mediation - Camden Wandsworth YPH - Wandsworth Merton - Risk and Resilience Service - Merton Merton – Wimbledon Foundation Health & Wellbeing - Merton

MIDLANDS

Northampton Crisis Intervention & Appropriate Adults - Northampton Coventry Life Long links Service - Coventry Coventry Child Exploitation Service - Coventry

NORTH WEST

Wigan Floating Support - Wigan Stoke & Staffs Child Exploitation - Services/Missing from home Wirral IDVA Pan Merseyside Child Exploitation Service and Missing from home inclusive of St Helens/Wirral and Knowsley contracts

Trafford Missing from Care Service Derby and Derbyshire CARES – NLCBF National

SOUTH EAST

Young Persons Substance Misuse - Surrey Music to my Ears - Surrey Hampshire 24/7 Service - Hampshire YP&F Bespoke - Essex CHIP - Colchester Kent SAiFE - Kent

EAST

Suffolk Reparation - Suffolk Suffolk Mentoring - Suffolk Norfolk Mediation - Norfolk Suffolk Positive Futures - Suffolk

THE HIVE

79% of young people reported making a significant positive change

The Hive is a space, a service and a community. It is a preventative service, challenging the stigma of mental health by giving young people a safe space to be themselves and was cited as best practice for mental health provision in the NHS Long Term Plan. The Hive is open to any young person living or working Camden aged 16-25.

The Hive caters for young people who either don’t meet the threshold for statutory mental health services, yet need help – or are unable or unwilling to access statutory services. It provides 1:1 sessions with clinicians and a social hub where users are able to take part in a range of activities.

It is jointly commissioned by the Camden Clinical Commissioning Group(CCG) and Camden Council led by Catch22 in partnership with Camden and Islington NHS Foundation Trust, Tavistock and Portman NHS Foundation Trust, Anna Freud Centre, The Brandon Centre, and The Winch.

There are an average of 5,000 visits to The Hive a year
78% of young people reported making a significant positive change(the national CAMHS average is 50%[1] )
93% of young people seen by The Hive’s transitions service engaged with proposed treatment pathway
Since its existence, it’s estimated more than 80 hospital admissions due to poor mental health have been prevented

1 Using Unity Based Goal measures

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“A YOUNG WOMAN CAME INTO THE HUB, WHILE SHE WAS IN THE MIDDLE OF A
PSYCHOTIC EPISODE. WE SAT WITH HER FOR 2 HOURS, THEN ESCORTED HER TO AN
APPOINTMENT. SHE WOULDN’T HAVE GOT THERE ON HER OWN.”
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STOKE AND STAFFORDSHIRE

MISSING

AND CHILD EXPLOITATION SERVICE

of children and young people exiting the 86% service demonstrate positive improvements

Each year we work with more than 1,200 children and young people who are subject to exploitation and/or who have gone missing from home. We also engage with nearly 1000 professionals through consultations, awareness raising workshops, meetings, promotional events, conferences, schools and training events.

We recruit volunteer mentors and lived experience champions who enable us to connect more effectively with certain communities of people that we sometimes find difficult to support.

The team constantly explore new ways to engage with its service users – including working with their Young People’s Forum to produce a series of brief TikTok style videos to promote our service directly to young people.

93% of incidents were offered a return interview – with 82% completed and 77% of those completed within the 72 hour target
86% of children and young people exiting the service have demonstrate positive improvements
• 100% of mentors strongly agree that they have personally benefited from volunteering.

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“I’M REALLY IMPRESSED. IT’S A VERY
PASSIONATE SERVICE WHICH ONLY HAS THE
BEST INTERESTS AT HEART IN REGARD TO
SUPPORTING YOUNG PEOPLE AT RISK OF CSE,
MISSING AND INVOLVED WITH GANGS. I THINK
THE STAFF ARE SO PASSIONATE, THEY CARE
ABOUT THE CHILDREN AND THE GROWTH
AND PROGRESS OF THE SERVICE. THIS IS
SOMETHING THAT SHOULD BE ADMIRED AND
IMITATED BY OTHER SERVICES”
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Read the full YP&F Review here
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COMMUNITY LINKS

We are committed to supporting the people of Newham through these challenging times, as we have always done. We anticipated that with the impact on jobs, declining household incomes would lead to a surge of need for advice and guidance. From the outset of the first lockdown, Community Links rapidly pivoted frontline services to remote delivery and mobilised volunteers, ensuring we continued to safely support people in crisis. Many of our services saw a record level of demand during lockdown.

During the peak of the pandemic we saw:

Requests for advice and guidance increase by 23%
Homelessness related cases increase by 316%
Demand for our Emergency Food Support Service double
Hardship support requests, such as food voucher enquiries, increase by 400%.

We continue to see high demand for support from families who are concerned about the basics like food, bills, childcare and keeping a roof over their heads. Responding directly to the dire impact of the pandemic on the people of Newham, we ran an emergency appeal to support their most pressing needs. As a result of the emergency appeal, we launched:

A local 7-day-a-week Covid-19 telephone advice helpline, in partnership with the local authority, who recognised our position in the borough, capacity to mobilise at pace and ability to refer to a broad partner network
A homelessness prevention service, supporting people at risk of eviction or homelessness with advice, guidance and specialist support, in collaboration with Crisis, the national homelessness charity
A mental health and wellbeing service, providing peer-support and wellbeing activities with the support of mental health charity Mind.

We are running two innovative new schemes to test ways of working in this new landscape:

A Violence Prevention Pilot for at-risk young people and their families, providing peer support and advice for children and adults living in poverty, in conjunction with the Impetus Youth Endowment Fund
A remote Music Therapy Pilot for young people in mental health distress.

Chi Kavindele, Director of Community Links

Read the Community Links Review here

PARTNERSHIPS

Catch22 unlocks innovation through collaborative partnerships. Together, we tackle the pressing issues in public services and this year has been no different. You’ll have read throughout this report – and in our individual hub reports – how our partnership are growing from strength to strength.

Thank you to all our partners and we look forward to continuing our work with you in 2021!

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Read more about our Partnerships here
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“ CATCH22 COLLEAGUES STEPPED UP TO THE CHALLENGE”

This review captures the activity of Catch22 over our 2019/2020 reporting cycle. When we entered the year none of us could have predicted what was to follow but like so many others over the last 12 months or so Catch22’s colleagues stepped up to the challenge and continued to work hard to reach out and support many of the people who have been most impacted by the pandemic. That’s across our schools, working across the prison estate, with children who have still gone missing and we have continued to help people get into jobs. We have shown enormous initiative and energy to find different ways to engage with our beneficiaries including a brilliant digital event with young people on our NCS programme.

But, what the last 12 months has also brought into sharp focus is the reason we exist in the first place. The crisis has exposed deep inequalities across our communities powerfully emphasised by the extent of digital exclusion we have witnessed. Home schooling is incredibly difficult without the tools to access the input on offer – and that’s not just hardware but access to data too, surely a utility like clean drinking water, that needs to be available to all. We are grateful to our supporters such as Raspberry PI and Microsoft amongst others who have helped us to reach those

who would otherwise have been left behind. Similarly, we are hugely grateful to the National Lottery who provided resources so we could enhance our delivery on the ground right across the range of our delivery.

Catch22 has navigated this period with the support of our funders and commissioners alike and we are grateful for the flexibility in approach to contract management and procurement we have benefitted from. And, there are lessons that we are keen to take into the future – to influence the approach to government procurement and to strengthen the role that social businesses like Catch22 can play in the provision of public services. We have used the last 12 months to reflect on who we are and what we need to do to sustain ourselves so we can continue to contribute to improving the life chances of those we support. I am grateful to my colleague Trustees, to the staff and volunteers of Catch22 and to all our supporters. Thank you.

Terry Duddy Catch22 Chair

FVV,

31 FINANCE AND GOVERNANCE

FINANCIAL HIGHLIGHTS

The group responded positively to the impact of the Covid-19 outbreak, which first occurred during the year covered by these financial statements. The group was largely sheltered from any significant financial impact due to most of its income being derived from the delivery of public services.

We accelerated the roll-out of improvements to our IT infrastructure, enabling our staff to communicate effectively and to continue to deliver high quality support to our beneficiaries that met and exceeded the expectations of our commissioners, who continued to fund us in line with our contracts. We are grateful for their support and that of our other funders.

We were able to achieve significant cost savings through lower travel expenditure and reduced building maintenance expenditure. Virtual working also meant that less agency staff were required to cover absence and to provide additional capacity. These savings were partially offset by increased IT costs to enable our staff to work remotely.

Following the outbreak, the trustees considered areas of delivery that were not financially viable and/or were no longer core to the achievement of the group’s charitable objectives. In addition, the trustees decided to rationalise the group structure to both save costs and promote collaborative working for the benefit of our service users. This resulted in the following changes:

The closure of two college sites
The scaling back and refocus of our apprenticeship delivery
Launch22 Limited closed on 31 July 2020
Only Connect UK left the group on 1 September 2020
Community Links Trust’s service delivery merged into Catch22 from 1 February 2021

The group is now well positioned for 2020/21 and beyond and we expect to deliver healthy surpluses moving forward. We have secured significant new voluntary income from corporate organisations in 2020/21 such as Microsoft, Salesforce and JP Morgan and our successful Connect with Work’ programme funded by Barclays Bank has been extended for a further 2 years. We have also recently successfully bid for new contracts to support offenders that will grow our Justice delivery. Additionally, our new joint venture company, Jobs22, secured a £200m contract with DWP in April 2021 to deliver the Restart employability programme. This contract will both deliver social impact and a financial return to Catch22. Jobs22 was incorporated in June 2020 and was dormant throughout the financial year.

The group’s financial performance for the year to 31 August 2020 is set out in the Statement of Financial Activities.

Movements in the Restricted Pension Funds and Restricted Fixed Asset Funds relate

to the operations of the Catch22 Multi Academies Trust and in particular the establishment of new academies. The underlying financial performance of the group is therefore better represented by the movements on Restricted Funds, decrease of £0.1m (2019: increase of £1.2m) and Unrestricted Funds, decrease of £0.3m (2019: £1.2m).

The decrease in Unrestricted Funds is after net exceptional items of £0.9m (2019: charge of £1.5m), relating to the recovery from a third party of the clawback of funds as a result of non-delivery by a subcontractor, less the costs of organisational restructures and service closures and a provision against a debt owed by a subsidiary charity, Launch22, that is not consolidated.

Last year’s decrease in Unrestricted Funds also included a revaluation of the group’s head office of £1.5m.

The group’s consolidated balance sheet remains strong, with Restricted Reserves of £4.4m (2019: £4.5m) and Unrestricted Reserves of £9.3m (2019: £9.7m). These reserves provide a solid base for the future of the organisation, but the challenging economic environment in which all providers of public services are operating since the outbreak of the Covid-19 pandemic continues to persist.

We continue to review all our services on a regular basis and take steps to either turnaround or close services that are not financially viable, without compromising on the quality of our delivery. We are also continuing to focus on ensuring our support services and management structures are efficient and cost effective; investing in digital solutions where possible, for example during the year we significantly upgraded our IT infrastructure. We are also grateful to have secured the support of the Social Business Trust, who among other things, will conduct a review of our systems and processes during 2020/21 with a view to suggesting possible improvements.

We continue to have a real focus on growth in areas that both align with our charitable objectives and there is funding available. A key objective continues to be to grow grant and other voluntary income, and we are beginning to see the impact of our investment in our partnership team through new funding secured. This funding enables us to add value to our services, maximise impact and to meet service user needs in innovative ways to contribute to our reform agenda, as well as contributing to improved cash flow.

Service user need continues to accelerate, whilst regulation in service delivery becomes increasingly more onerous, but we remain confident that our solid foundations and experience will enable us to respond to these challenges, despite the expected pressure on public finances following the pandemic. We continue to believe that through innovation and doing things differently with support from partners, we will be able to unlock the funding and capacity needed from society to achieve the social impact and reform of public services that we seek.

Income

Total income for the year to 31 August 2020 was £53.2m, compared with £57.2m for the previous year.

Voluntary income in the period included £6.5m (2019: £5.0m) of long leasehold land and buildings transferred from local authorities used by new academies in the Catch22 Multi Academies Trust.

After adjusting for these ‘one-off’ income amounts, income for the year is £46.7m, compared to £52.2m in the previous year.

Donations, legacies, and grants were 7% of income excluding ‘one-offs’ (2019: 8%). The benefits of our active strategy to increase voluntary income will be seen in the 2020/21 financial year, where a greater proportion of income is expected to come from grant sources.

Income from charitable activities fell to £42.5m (2019: £46.8m). NCS & Employability income fell by £2.4m, mainly due to the restricted summer NCS programme caused by the pandemic. The other most significant fall, £0.7m, was in our Place Based Delivery and Early Action delivery where the pandemic significantly impacted our ability to deliver our health screening activity. Young people and families income fell by £0.5m due to contracts coming to an end during 2019/20.

Expenditure

Total expenditure for the year the year to 31 August 2020 was £46.7m, compared with £54.2m for the previous financial year. Included within the cost of charitable activities are exceptional items, which are explained above.

Deficit on investment assets

The net loss on investments during the year was £0.5m (2019: gain £0.1m) and at 31 August 2020, after withdrawals, the portfolio was valued at £10.5m (31 August 2019: £10.9m), in addition, income earned from the portfolio was £0.3m (2019: £0.3m).

Although the pandemic had an impact on the value of the investment portfolio in the financial year, much of this loss has been recovered in the current financial year.

HSBC Private Bank, the investment managers, offer a working capital facility (currently with an agreed limit of £5.0m) secured against the portfolio at a very competitive interest rate. The trustees regularly consider the cost of borrowing to finance working capital against expected investment returns in order to decide whether investments should be sold to fund working capital requirements. The trustees’ current opinion is that market returns are likely to exceed the cost of borrowing for the foreseeable future and therefore investments should not be sold. At 31 August 2020 £3.75m of the facility has been drawn (2019: £3.75m).

Support costs

We monitor the effectiveness and efficiency of our overheads on a continual basis. During 2019/20 we continued to seek to reduce costs through consolidation of support services across the group and system improvements. We will continue to drive down costs where possible through process and system improvement and simplification of structures. During 2020/21 we will seek further opportunities for digitalisation to improve efficiency with the support of the Social Business Trust.

Reserves

The Finance Growth and External Audit Committee, on behalf of the Board of Trustees, conducts an annual review of the level of unrestricted reserves in the general fund by considering risks associated with the various income streams, expenditure plans and balance sheet items.

The level of Free Reserves that should be maintained by the organisation is determined by balancing two competing objectives. On the one hand ensuring we have maximum and speedy use of resources to deliver real impact for beneficiaries and realise our reform ambitions and, on the other hand, ensuring we have adequate resources to continue to deliver our services through periods of financial challenge and uncertainty and can be here for our beneficiaries over the medium and long term.

The trustees assess the risks that the charity is exposed to on a regular basis and determine a range for Free Reserves considering these risks. The principle risks include:

an unexpected change in the level of our income;
the need to maintain services over the short term if funding streams reduce;
the likelihood of unexpected expenditure; and
working capital requirements.

In determining the figures trustees also consider future plans for the group and the need to protect vulnerable beneficiaries, staff and volunteers in the unlikely event of unplanned closure of some of its services.

Whilst this process cannot come up with a precise figure for Free Reserves, after taking these factors into consideration the trustees believe that the appropriate level for Free Reserves is between £2.2m and £3.6m for the group.

Free Reserves are those that are freely available at the trustees’ discretion to help manage financial variability i.e. Unrestricted Reserves excluding fixed assets and bank borrowing secured against those fixed assets.

At 31 August 2020 the group’s total reserves amounted to £37.4m (2019: £31.9m) of which £28.0m was restricted (2019: £22.2m) and £9.3m was unrestricted (2019: £9.7m). Of the unrestricted amount £3.9m (2019: £4.3m) is deemed to be free reserves, which is slightly above the range set by the trustees but is considered reasonable given the current economic uncertainty caused by the pandemic.

Investments

All investments were acquired within the Trustees’ powers. The portfolio is held in general funds and is managed in accordance with an Investment Policy, which sets out the objectives of the fund, considers risk and liquidity requirements and sets out how the fund should be managed including the Board’s expectations around ethical investment. The objective of the general fund is to provide a regular flow of income to support the daily activity of Catch22 and in addition, to achieve a level of capital growth which will preserve the real value of the fund over time and provide a capital fund for investment in approved development projects within Catch22.

Our investment portfolio is managed by a firm of professional investment managers. The Trustees consider the performance of those managers and the investment portfolios they manage to be satisfactory and that our underlying investments are sound.

FINANCIAL RISKS

Liquidity risk

The Group’s objective is to maintain a balance between cash balances and long-term investments. The Group’s policy on liquidity risk is to ensure there are sufficient cash balances to meet the day-to-day needs of the organisation while investing surplus balances in fixed asset investments.

Market risk

The Group’s exposure to market risk arises primarily from the Group’s fixed asset investments. The Group’s policy is to utilise the services of professional investment managers to manage the fixed asset investments. Performance of these investments and therefore the investment managers is reviewed every month by the senior management team. The Finance, Growth and External Audit Committee have been appointed by the Board to oversee the performance of our investment managers.

Credit risk

The Group is mainly exposed to credit risk in relation to money due from commissioners in relation to its delivery of services. The vast majority of these commissioners have proved to be extremely credit worthy. Nevertheless, we operate a proactive credit control system designed to ensure payment is received quickly and that problems are identified as early as possible and the appropriate action is taken. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheet.

Foreign exchange risk

The Group does not have any significant exposure to foreign exchange risk.

Other risk

The impact of the Covid-19 outbreak has been considered on the charity’s future plans and budgeting processes and the effect of the outbreak, including on future government spending, will continue to be a risk into the August 2021 year end and beyond.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Formation and structure of the Charity

Catch22 was incorporated as a Company Limited by Guarantee on 28 April 2008. It was registered as a charity on 19 May 2008.

Its objectives, as stated in its memorandum of association, are: ‘to promote opportunities for the development, education and support of young people in need to lead purposeful, stable and fulfilled lives and to promote safer, crime free communities for the benefit of the public.’

We have considered the Charity Commission’s guidance on public benefit, including the guidance ‘Public benefit: running a charity (PB2). In particular, the Trustees consider how planned activities will contribute to the aims and objectives they have set, taking account of the available guidance on public benefit.

The trustees are satisfied that Catch22 has aims and objectives and carries out activities that are for the public benefit in that the support provided to individuals, families and communities directly benefits each of those groups and therefore the wider public.

Catch22 is the sole trustee of The Royal Philanthropic Society incorporating the Rainer Foundation and is the sole member of The Crime Concern Trust Limited. Both are charities. The Rainer Foundation has released its permanent endowment and is now dormant. Crime Concern is also now dormant.

Catch22 holds 100% of the share capital of Catch22 Social Enterprise Limited

Catch22 owns 100% of Pupil Parent Partnership Limited, a company limited by guarantee.

Catch22 also owns 100% of Catch22 Social Enterprise Solutions Limited.

Catch22 also owns 100% of Include, a company limited by guarantee.

Catch22 also owns 100% of Catch22 Multi Academies Trust Limited, a company limited by guarantee.

Catch22 also owns 100% of Community Links Trust Limited, a company limited by guarantee. Community Links Trust Limited owns 100% of Community Links Trading Limited. – Community Links Trust merged with Catch22 with effect from 1 February 2021.

Catch22 also owns 100% of Launch22 Limited, a company limited by guarantee.

Catch22 also owned 100% of Citizen22, a company limited by guarantee - struck-off February 2020

Catch22 also owned 100% of Only Connect UK, a company limited by guarantee – ownership relinquished 1 September 2020

Catch22 also owns 100% of Unlocked Graduates, a company limited by guarantee – ownership relinquished 1 September 2020

Please see note 12 for disclosure of activities and performance of each subsidiary.

GOVERNANCE

Safeguarding

Catch22 is a diverse and dispersed organisation, supporting some very vulnerable service users. We have a dedicated post within the organisation to ensure that we appropriately manage risk and drive improvements in our practice across our various delivery arms particularly education and social care. This post of Safeguarding Manager has been in place since January 2018 and is focussed on continuous improvement to our safeguarding practice.

Over this financial year, there were various safeguarding incidents, as we would expect given the nature of our work, primarily made up of disclosures made by the vulnerable young people and adults that we work with. Where appropriate these were escalated to the Local Authority Designated Officer (LADO).

We have rolled-out an IT platform for safeguarding incident reporting and management in our schools to improve communication and reduce the bureaucratic burden, both at the point of reporting and in the administration of the monitoring and follow up actions so that more resources can be focussed on keeping our service users safe.

Modern Slavery

Catch22 has a zero-tolerance approach to modern slavery and we are committed to acting ethically and with integrity in all our business dealings and relationships and to implementing and enforcing effective systems and controls to endeavour to ensure that modern slavery is not taking place anywhere in our own business or in any of our supply chains.

We are also committed to ensuring there is transparency in our own business and in our approach to tackling modern slavery throughout our supply chains, consistent with our disclosure obligations under the Modern Slavery Act 2015. We expect the same high standards from all of our contractors, suppliers and other business partners, and as part of our contracting processes, we include specific prohibitions against the use of forced, compulsory or trafficked labour, or anyone held in slavery or servitude, whether adults or children. We also expect that our suppliers will hold their own suppliers to the same high standards.

Board and Committees

The Trustee board meets at least four times a year and has established three committees to which certain functions are delegated. These are: the Finance, Growth and External Audit Committee, the Governance, Risk and Internal Audit Committee and the People and Performance Committee.

Each committee meets at least four times a year and reports back to the Trustee Board.

The committees monitor progress against goals and targets that flow from the strategic plan set by the Trustee board.

Catch22 complies with ‘Good Governance: A Code for the Voluntary and Community Sector’ issued by the Governance Code Steering Group.

There is a scheme of delegation in place which sets out what matters are reserved for the trustee board and what is delegated to the chief executive and senior management.

Matters reserved for the board include (among others):

Setting the charity’s strategy;
Approval of the organisational business plan and annual budget;
Approval of any changes to the group structure;
Appointment of the chief executive

Matters delegated to the chief executive include (among others):

Establishing partnerships and joint working arrangements;
Development of new services;
Tenders for new contracts (with a value of up to £2m);
Appointment of the executive management team

Setting Pay and Remuneration of Key Management Personnel

Setting Pay and Remuneration of key management personnel is the responsibility of the People and Performance Committee. In setting pay and remuneration, they consider performance management information and relevant benchmarks within the sector.

Trustees responsibilities

The Trustees are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and charity and of the surplus or deficit of the Group for that period.

In preparing these financial statements, the Trustees are required to:

select suitable accounting policies and then apply them consistently
make judgements and accounting estimates that are reasonable and prudent
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation.
observe the methods and principles in the Charities SORP;

In so far as the trustees are aware:

there is no relevant audit information of which the charitable company’s auditor is unaware; and
the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

Trustees responsibilities (continued)

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity’s transactions and disclose with reasonable accuracy at any time the financial position of the Charity 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 Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Financial statements are published on the Charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the Charity’s website is the responsibility of the Trustees. The Trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein.

Valuing our Trustees – recruitment, induction and ongoing training

The People and Performance Committee oversees the recruitment of Trustees and undertakes a periodic skills audit of the Board. Applications for Trusteeship are sought through open advertisement, use of a specialist agency and personal contacts. Applicants are assessed against a trustee job description and shortlisted candidates are interviewed by a panel of Trustees and appointed by the Trustee Board. Trustees are normally appointed for four years and may be reappointed for a further four years subject to agreement of the Board. A further four year period is available if it is considered to be in the best interest of Board stability.

New Trustees are provided with induction meetings with key staff and are given a detailed governance pack. Arrangements are made for Trustees to visit Catch22’s projects and services. Trustees receive information newsletters, presentations on aspects of Catch22’s work and on matters affecting the voluntary sector.

Catch22 looks to all those involved in its governance to make a reasonable commitment to ongoing development and training. This may involve away days, visits, presentations and other internal functions as well as opportunities to attend relevant external events such as seminars, courses and conferences.

Catch22 also circulates publications of general interest and provides access to magazines, articles, newsletters, policy briefings and other documents of more specialist interest.

Risk mana ement g

The Trustees have in place a robust risk management process. The process identifies the types of risks the Charity faces, prioritises them in terms of likelihood of occurrence and potential impact, identifies the means of managing these risks and monitors how they are managed. Development and review of the risk management arrangements are the responsibility of the Governance, Risk and Internal Audit Committee. The Chief Officer Group are responsible for managing risk across the organisation and receive regular updates at their fortnightly meetings on key risks and they ensure that collaborative mitigating action is taken.

The key risks identified by Catch22 at the end of 2019/20, together with the actions taken or intended to be taken in response to these risks are as follows:

Loss of income due to public sector spending cuts and increased competition. Catch22’s response is to continue to focus resources in our business development team, keep our quality high and our costs competitive to ensure that our cost basis is sustainable over the longer-term. We also continue to be focussed on securing an increased proportion of voluntary grant income and developing income streams from trading activity.
Loss of income and increased service user demand due to the Covid-19 outbreak. Catch22’s response is to accelerate the delivery of its three year business plan that began in September 2019, that stated our desire to become more digital, embrace new technology to enhance service delivery and to ensure services are safe, efficient and effective. We committed to greater cross-service collaboration and to focus on going deeper in our main geographical areas, and to growing our presence. We have made some significant cost savings during 2020/21 and will continue to identify opportunities to do things differently, reducing unnecessary spending and eliminating duplication and inefficiencies. We will continue, if necessary, to close services that put a significant financial strain on the organisation.
Increasingly stringent delivery conditions and regulation imposed by commissioner. Catch22’s response is to ensure a strong focus on quality and performance as well as careful consideration and control on the contract terms we accept.
Commissioner payment terms are increasingly significantly ‘in arrears’ and this combined with more contracts being on a ‘payment by results’ basis can mean that some payments are not received for more than 6 months after the initial engagement with the beneficiary. Catch22 is responding by regularly monitoring and forecasting working capital requirements, securing facilities with both its investment managers and bankers to fund general requirements and engaging with other funders e.g. social investors and grant funders to secure funding for specific projects.
Loss of control of personal or sensitive data. Mitigated by robust data protection and information security policies, in line with the General Data Protection Regulation (GDPR), supported by staff briefings and compulsory training. We review the risk of a breach of our IT platforms on an ongoing basis and take appropriate mitigating action to keep them secure. By December 2021 we aim to be ISO 27001 certified, strengthening our commitment to robust information security management.
Failure to keep our service users safe. Established policies and procedures with clear training and staff competency expectations, monitored through regular supervisions and internal audit, overseen by a Safeguarding Manager. Compliance with recruitment

policies monitored to ensure relevant employment checks are completed.

Failure to ensure the wellbeing and safety of staff, particularly those working with vulnerable beneficiaries. Our People team continuing to develop our wellbeing offer and our policy on staff supervision meetings includes the requirement to discuss staff welfare. We have a professional health and safety team in post with embedded health and safety polices and procedures, underpinned by compulsory training for managers and regular health and safety inspections with follow-up of actions. Emphasis on learning from incidents and near misses. Increased focus on mental health support within the organisation.
Serious incident results in adverse publicity leading to reputational damage. Appropriate policies and procedure are in place to mitigate the risk of a serious incident occurring. Crisis Management policy in place and crisis management training provided to key staff. Reactive communication strategy prepared.

Further information about Catch2, including our Social Business Review can be found at: www.catch-22.org.uk

Signed on behalf of the Board of Trustees on 26 May 2021.

Terry Duddy Chair, Catch22 Charity Ltd

AUDITOR’S REPORT

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF CATCH22 CHARITY LIMITED

Opinion

We have audited the financial statements of Catch22 Charity Limited for the year ended 31 August 2020 which comprise the Group Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheets, the Group Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Ireland’.

In our opinion the financial statements:

give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 August 2020 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

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

the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group’s and parent charitable company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

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

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

the information given in the strategic report and the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the trustees’ annual report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the trustees’ annual report.

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

the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page [x], 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 group and parent 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 group or parent 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the group and parent charitable company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group and parent charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or parent charitable company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit report.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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 which 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 any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Neil Finlayson (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP Devonshire House 60 Goswell Road London EC1M 7AD

26th May 2021

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 August 2020

		Restricted	Restricted	Restricted	Unrestricted	Year to Year to	Year to Year to	Year to Year to
		Pension	Fixed	Funds	Funds	31 August 31 August
		Funds	Assets			2020 2019
		(MAT)	Funds
	Note		(MAT)
		£’000	£’000	£’000	£’000	£’000 £’000
Income from
Donations and legacies		-	-	469	495	964 952
Grants	2	-	555	1,799	235	2,589 3,393
Donations – academy transfers
(MAT)	3	(297)	6,830	-	-	6,533 5,020
Income from charitable activities	6	-	-	15,585	26,943	42,528 46,756
Income from trading activities		-	-	-	301	301 763
Income from investments	4	-	-	-	289	289 318
Total income		(297)	7,385	17,853	28,263	53,204 57,202
Expenditure on
Raising funds		-	-	-	261	261 408
Charitable activities
Ordinary activities	6	734	241	17,637	28,318	46,930 51,663
Exceptional	6	-	-	-	(886)	(886) 1,506
Trading activities		-	-	-	417	417 668
Total expenditure		734	241	17,637	28,110	46,722 54,245
Net gains/(losses) on investments	11	-	-	-	(517)	(517) 98
Net income/(expenditure)
for the period		(1,031)	7,144	216	(364)	5,965 3,055
Transfers between funds	17,18	317	(23)	(321)	27			- -
Net income/(expenditure) before
other recognised gains/(losses)		(714)	7,121	(105)	(337)	5,965 3,055
Other recognised gains/(losses)
Gain on revaluation of Fixed Assets		-	-	-	-		- 1,511
Actuarial gain/(loss) on defined
benefit pension scheme	21	(469)	-	-	-	(496) (444) 6)9
Net movement in funds		(1,183)	7,121	(105)	(337)	5,496 4,122
Reconciliation of funds
Total funds brought forward		(1,499)	19,206	4,483	9,666	31,856 27,734
Total funds carried forward		(2,682)	26,327	4,378	9,329	37,352 31,856

The Group had no recognised gains or losses other than those dealt with in the Statement of Financial Activities. All income and expenditure derive from continuing activities.

The statement provides the consolidated information for the charitable company and its subsidiary undertakings. Total income for the charitable company alone was £33,281k (2019: £39,617k) and net expenditure was £662k (2019: £2,038k).

The notes on pages to form part of these financial statements. The notes on pages 51 to 77 form part of these financial statements

CONSOLIDATED BALANCE SHEET - 31 August 2020 Company number: 06577534

31 August 2020 £’000 £’000 358 31,547 10,642 42,547 9 5,539 5,642 11,190 (12,506) (1,316) 41,231 (183) (3,696) 37,352 (2,682) 26,327 4,378 9,329 37,352	31 August 2020 £’000 £’000 358 31,547 10,642 42,547 9 5,539 5,642 11,190 (12,506) (1,316) 41,231 (183) (3,696) 37,352 (2,682) 26,327 4,378 9,329 37,352	31 August 2019 £’000 £’000 281 24,679 11,001 35,961 8 7,511 2,519 10,038 (11,337) (1,299) 34,662 (293) (2,513) 31,856 (1,499) 19,206 4,483 9,666 31,856	31 August 2019 £’000 £’000 281 24,679 11,001 35,961 8 7,511 2,519 10,038 (11,337) (1,299) 34,662 (293) (2,513) 31,856 (1,499) 19,206 4,483 9,666 31,856
	42,547 (1,316)		35,961 (1,299)
11,190 (12,506)		10,038 (11,337)

	41,231 (183) (3,696)		34,662 (293) (2,513)
	37,352		31,856
	(2,682) 26,327 4,378 9,329		(1,499) 19,206 4,483 9,666
	37,352		31,856

The financial statements were approved by the Board of Trustees and authorised for issue on 26 May 2021

Terry Duddy Chair

The notes on pages 51 to 77 form part of these financial statements The notes on pages to form part of these financial statements.

CHARITY BALANCE SHEET - 31 August 2020 Company number: 06577534

31 August 2020 £’000 £’000 358 4,424 - 10,528 15,310 9 4,519 3,594 8,122 (13,242) (5,120) 10,190 (183) (1,014) 8,993 2,156 6,837 8,993	31 August 2020 £’000 £’000 358 4,424 - 10,528 15,310 9 4,519 3,594 8,122 (13,242) (5,120) 10,190 (183) (1,014) 8,993 2,156 6,837 8,993	31 August 2019 £’000 £’000 281 4,207 253 10,885 15,626 8 6,418 565 6,991 (11,655) (4,664) 10,962 (293) (1,014) 9,655 2,285 7,370 9,655	31 August 2019 £’000 £’000 281 4,207 253 10,885 15,626 8 6,418 565 6,991 (11,655) (4,664) 10,962 (293) (1,014) 9,655 2,285 7,370 9,655
	15,310 (5,120)		15,626 (4,664)
8,122 (13,242)		6,991 (11,655)

	10,190 (183) (1,014)		10,962 (293) (1,014)
	8,993		9,655
	2,156 6,837		2,285 7,370
	8,993		9,655

As permitted by s408 of the Companies Act 2006, the company has not presented its own statement of financial activities and income and expenditure account. The company’s net expenditure in 2020 was £662k (2019: £2,038k)

The financial statements were approved by the Board of Trustees and authorised for issue on 26 May 2021

Terry Duddy Chair

Company Registration No. 06577534

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 August 2020

Year to 31 August 2020 £’000 £’000 5,965 517 - (6,831) 5 339 104 297 382 35 (5) (289) 94 (555) (1) 1,972 1,191 3,220 (181) (381) 555 62 69 5 129 (110) (94) (204) 3,145 (1,253) 1,892 5,642 (3,750) 1,892	Year to 31 August 2020 £’000 £’000 5,965 517 - (6,831) 5 339 104 297 382 35 (5) (289) 94 (555) (1) 1,972 1,191 3,220 (181) (381) 555 62 69 5 129 (110) (94) (204) 3,145 (1,253) 1,892 5,642 (3,750) 1,892	Year to 31 August 2019 £’000 £’000 3,055 (99) (5,020) - 168 356 126 - 224 20 (3) (318) 94 (318) 6 33 663 (1,013) (261) (135) 318 316 3 101 342 (110) (94) (204) (875) (378) (1,253) 2,519 (3,772) (1,253)	Year to 31 August 2019 £’000 £’000 3,055 (99) (5,020) - 168 356 126 - 224 20 (3) (318) 94 (318) 6 33 663 (1,013) (261) (135) 318 316 3 101 342 (110) (94) (204) (875) (378) (1,253) 2,519 (3,772) (1,253)
	3,220 129 (204)		(1,013) 342 (204)
(110) (94)		(110) (94)

	3,145 (1,253)		(875) (378)
	1,892		(1,253)
	5,642 (3,750)		2,519 (3,772)
	1,892		(1,253)

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2020

1. Accounting policies

A summary of the principal accounting policies adopted (which have been applied consistently except where noted), judgements and key sources of estimated uncertainty, is set out below.

Catch22 Charity Limited is a charitable company (no. 06577534), limited by guarantee, incorporated in England and Wales and registered with the Charity Commission (no 1124127). The registered office is 27 Pear Tree Street, London EC1V 3AG.

Basis of preparation

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The company is a public benefit entity for the purposes of FRS 102 and a registered charity established as a company limited by guarantee and therefore has also prepared its financial statements in accordance with the 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 (the FRS 102 Charities SORP) and the Companies Act 2006.

Going concern

The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charitable group to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular, the trustees have considered the charitable company’s forecast and projections and have considered the potential impact of the Covid19 outbreak on the viability of the charitable group. whilst some income lines continue to be affected, they are partly mitigated by costs savings. The trustees have also taken action to rationalise the charitable group to save cost and strengthen its financial position by merging subsidiary charities fully into Catch22 and relinquishing membership of organisations that are not core to the charitable groups’ objectives. Annual budgets and forecasts have been revised taking this into account with prudent figures for both income and expenditure. The charity has an investment portfolio held in relatively liquid funds valued at £10.53m as at 31 August 2020 with an available working capital facility secured against this of up to £5.0m (£3.75m drawn as at 31 August 2020). This facility is due for renewal in December 2021, but the trustees expect that it will be renewed on similar terms. Since the balance sheet date, the value of the portfolio has increased to £11.35m (as at 31 March 2021), this amounts to £7.6m of available cash should it be required and in addition there is a £1.0m unsecured overdraft facility available with Barclays Bank plc (£nil utilised at 31 August 2020). This overdraft is due for review imminently, but the trustees have no reason to believe that it will not be renewed on similar terms. After making enquiries the trustees have concluded that there is a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. The charitable company therefore continues to adopt the going concern basis in preparing its financial statements.

The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts are rounded to the nearest thousand pounds.

The charity has taken advantage of the exemption in the Companies Act 2006 not to present its own statement of financial activities. The results of the charity for the year ended 31 August 2020 are set out here: total income of £33,281k (2019: £39,617k) total expenditure of £33,417k (2019: £41,753k), net losses on investments £526k (2019: £99k gain) and revaluation of a property £nil (2019: £1,511k), resulting in net movement in funds of (£662k) (2019:(£527k)).

A summary of the principal accounting policies adopted (which have been applied consistently, except where noted), judgements and key sources of estimation uncertainty, is set out below:

Basis of consolidation

The consolidated financial statements incorporate those of Catch22 Charity Limited and all its subsidiaries apart from Launch22 Limited. The company has taken advantage of the exemptions provided by section 405 of the Companies Act 2006 not to include Launch22 as it is not material to the group.

On acquisition of subsidiaries, acquisition accounting is used. All of the assets and liabilities that exist at the date of acquisition are recorded at their fair values reflecting their condition at that date. Where subsidiaries are acquired for nil consideration and are akin to a gift, the fair value of the assets and liabilities at the date of acquisition are recognised as voluntary income in the statement of financial activities. All changes to those assets and liabilities and the resulting surpluses or deficits that arise after the group has gained control of the subsidiary are charged to the post-acquisition statement of financial activities. All intra-group transactions and balances between group companies are eliminated on consolidation.

Income

All income is recognised when there is entitlement to the funds, the receipt is probable and the amount can be measured reliably. The following accounting policies are applied to income.

Grants and fees

Where contract and grant funding is subject to specific performance conditions, the income is recognised as earned (as the related services are provided or outcomes delivered). Any amounts received in excess of what has been earned by the year end are included within deferred income in current liabilities. Other grant income is recognised where there is entitlement, receipt is probable and the amount can be measured with sufficient reliability.

Donations

Donations and all other receipts from fundraising are reported gross and are accounted for on a receivable basis. The related fundraising costs are reported in costs of raising funds.

Investment Income

Investment income is accounted for when receivable and includes the related tax recoverable.

Expenditure

Liabilities are recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefit will be required in settlement and the amount of the obligations can be measured reliably. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. The following accounting policies area applied to expenditure:

Allocation of overhead and support costs

Overhead, support and governance costs are allocated between the cost of raising funds and charitable activities. Overhead, support and governance costs relating to charitable activities have been apportioned between activities.

Governance costs

Governance costs are included within support costs and consist of trustees’ expenses and annual audit and non-audit fees.

Costs of raising funds

The costs of generating funds consist of investment management fees and the costs of raising funds, including an apportionment of overhead, support and governance costs.

Charitable activities

Costs of charitable activities include grants payable and other costs directly associated with providing the services and support provided by the charity and an apportionment of overhead, support and governance costs.

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2020

1. Accounting policies (continued)

Expenditure (continued)

Trading activities

Costs of trading activities include costs directly associated with providing the services provided through trading and an apportionment of overhead, support and governance costs.

Intangible Assets

Development costs for future IT projects are capitalised at cost, provided it is likely to bring future economic benefit to the group. If the criteria for recognition as assets are not met, the expense is recognised in the statement of financial activities in the period in which it is incurred. Capitalised IT costs include all direct and indirect costs that are directly attributable to the development process. The costs are amortised using the straight line method over 3 to 5 years being their estimated useful lives.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense. The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Pension costs – Defined Contribution Schemes

The Group makes payments to defined contribution pension schemes on behalf of qualifying employees. Such contributions are charged in the Statement of Financial Activities as they fall due. The contributions are invested separately from the charity’s assets.

Pension benefits – Defined Benefit Pension Schemes

Capitalisation of assets

Assets with a value of greater than £10,000 (and some lower value vehicles and IT equipment with an estimated useful life of at least 4 or 3 years respectively) are capitalised and depreciated to write off the cost of the assets over their estimated useful lives.

Tangible fixed assets

Land and buildings and equipment are stated in the balance sheet at cost or, in the case of certain freehold and long leasehold land and buildings, valuation less depreciation which is provided in equal annual instalments over the estimated useful life of the assets. The rates of depreciation are:

Freehold property – 2% per annum
Long leasehold property – over term of lease
Furniture and equipment – 20% and 33% per annum
Motor vehicles – 25% per annum

Goodwill

Goodwill represents the excess of the cost of an acquisition over the fair value of the Group's share of the identifiable net assets of the acquired subsidiary at the date of acquisition. Goodwill has been amortised on a straight line basis over three or five years.

Investments

Investments are stated at market value at the balance sheet date. Any change in the market value of investments is taken to the relevant fund together with any profits or losses on disposal of investments during the year.

Stock

Stocks are valued at the lower of cost and net realisable value. Cost is based on the cost of purchase on a first in, first out basis. Net realisable value is based on estimated selling price less additional costs to completion and disposal

Financial Instruments

Cash and cash equivalents

Cash and cash equivalents include cash at banks and in hand and short term deposits with a maturity date of three months or less.

Retirement benefits to employees of the Catch22 Multi Academies Trust are provided by the Teachers’ Pension Scheme (‘TPS’) and the Local Government Pension Scheme (‘LGPS’). These are defined benefit schemes and the assets are held separately from those of the Trust.

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees’ working lives with the Trust in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quadrennial valuations using a prospective unit credit method. As stated in note 21, the TPS is a multi-employer scheme and there is insufficient information available to use defined benefit accounting. The TPS is therefore treated as a defined contribution scheme for accounting purposes and the contributions recognised in the period to which they relate.

The LGPS’ are funded schemes and the assets are held separately from those of the Trust in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit credit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent term and currency to the liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The amounts charged to operating surplus are the current service costs and the costs of scheme introductions, benefit changes, settlements and curtailments. They are included as part of staff costs as incurred. Net interest on the net defined benefit liability/asset is also recognised in the Statement of Financial Activities and comprises the interest cost on the defined benefit obligation and interest income on the scheme assets, calculated by multiplying the fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations. The difference between the interest income on the scheme assets and the actual return on the scheme assets is recognised in other recognised gains and losses. Actuarial gains and losses are recognised immediately in other recognised gains and losses.

Leased assets

Rental costs under operating leases are charged to the statement of financial activities in equal amounts over the period of the leases.

Debtors and creditors

Debtors or creditors receivable or payable within one year of the reporting date are carried at their transaction price. Debtors and creditors that are receivable or payable in more than one year and not subject to a market rate of interest are measured at the present value of the expected future receipts or payment discounted at a market rate of interest.

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2020

1. Accounting policies (continued)

In kind funding/support

The Group benefits from the services of secondees, many thousands of voluntary hours and unclaimed out-of-pocket expenses by a very large number of supporters. In addition, companies, organisations and individuals have, in many cases, provided the use of facilities, equipment and premises for various activities and meetings without charge. The value of such gifts in kind have been estimated and included in the consolidated statement of financial activities as income and expenditure when there is a cost to the third party of donating the gift/service. Although our systems are not set up to summarise the total value of these gifts in kind, we do know they are worth in excess of £50k (2019: £50k). This figure does not include a value for the volunteer work which is indispensable to the work that the Group undertakes.

Taxation

The charitable company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, it is potentially exempt from taxation in respect of income or capital gains received within categories covered by part 11, chapter 3 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively for charitable purposes.

Critical accounting estimates and areas of judgement

In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. The following judgements and estimates are considered by the trustees to have most significant effect on amounts recognised in the financial statements:

a) Local Government Pension Scheme liability The present value of the Local Government Pension Schemes defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 21, will impact the carrying amount of the pension liability. Furthermore, a roll forward approach which projects results from the latest full actuarial valuation performed at 31 March 2019 has been used by the actuary in valuing the pensions liability at 31 August 2020. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability. Parliament has agreed, at the request of the Secretary of State for Education, to a guarantee that, in the event of academy closure, outstanding Local Government Pension scheme liabilities would be met by the Department for Education. The guarantee came into force on 18 July 2013.

Fund Accounting

The group maintains various types of funds as follows:

Restricted Pension funds

Restricted pension reserves are resources or liabilities relating to the group’s obligations to the Local Government Pension Scheme, of which some of its employees are members.

Restricted fixed asset funds

Restricted fixed asset funds are resources which are to be applied to specific capital purposes imposed by funders where the asset acquired or created is held for a specific purpose.

Restricted funds

Restricted funds represent grant, donations and legacies received which are allocated by the donor for specific purposes.

Unrestricted funds

Revaluation reserves relate to the measurement of the fair value of certain freehold property. Designated funds are funds that the trustees have designated to be used for specific purposes. General unrestricted funds represent funds which are expendable at the discretion of the trustees in the furtherance of the objects of the Charity.

b) Useful Economic Lives of Intangible Assets The annual amortisation charge for intangible assets is sensitive to changes in the estimated lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advances, future investments and economic utilisation. Goodwill and computer software impairment reviews are performed annually. These reviews require an estimation of the value is use of the cash generating units to which goodwill and software has been allocated and the public benefit derived from the services provided to beneficiaries in fulfilment of the company and group’s charitable objectives.
c) Impairment of Investments in Subsidiaries Impairment reviews of investment in subsidiaries are carried out annually. These reviews require an estimation of both the expected future cash generation of the charitable subsidiaries to which the investments relate and consideration of the public benefit derived from the services provided to beneficiaries in fulfilment of the company and group’s charitable objectives.
d) Land and buildings transferred on conversion Long leasehold title of land and buildings has been transferred to the Catch22 Multi Academies Trust at £nil consideration. The premises have been recognised in the Trust’s accounts at their fair value as at the date of transfer. This has been estimated at the most recent valuation figures provided by the transferring local authority, as a best approximation of fair value.

e) Impairment of Long Leasehold Land & Buildings Impairment reviews of long leasehold land and buildings are carried out annually. These reviews require an estimation of their market value of the land and buildings and the public benefit derived from the charitable group’s services provided to beneficiaries in fulfilment of the company and group’s charitable objectives. The trustees recognise the significant uncertainty in the valuation of commercial property caused by the Covid-19 pandemic but do not think there is sufficient evidence to indicate that that the value of the company’s long leasehold land and buildings has been materially impaired.

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2020

Comparative Consolidated Statement of Financial Activities for the Year Ended 31 August 2019

Note Income from Donations and legacies Grants 2 Donation – academy transfers (MAT) 3 Income from charitable activities 6 Income from trading activities Income from investments 5 Total income Expenditure on Raising funds Charitable activities 6 Ordinary activities Exceptional Trading activities Total expenditure Net gains on investments 11 Net income/(expenditure) for the period Transfers between funds 17,18 Net income/(expenditure) before other recognised gains/(losses) Other recognised gains/(losses) Gain on revaluation of Fixed Assets Actuarial gain/(loss) on defined benefit pension scheme 21 Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward	Restricted Pension Funds (MAT) Restricted Fixed Assets Funds (MAT) Restricted Funds Unrestricted Funds Year to 31 August 2019 £’000 £’000 £’000 £’000 £’000 - - 429 523 952 - 318 2,894 181 3,393 - 5,020 - - 5,020 - - 13,523 33,233 46,756 - - - 763 763 - - - 318 318
	- 5,338 16,846 35,018 57,202
	- - - 408 408 503 527 15,321 35,312 51,663 - - - 1,506 1,506 - - - 668 668
	503 527 15,321 37,894 54,245 - - - 98 98
	(503) 4,811 1,525 (2,778) 3,055 259 - (373) 114 -
	(244) 4,811 1,152 (2,664) 3,055 - - - 1,511 1,511 (444) - - - (444)
	(688) 4,811 1,152 (1,153) 4,122 (811) 14,395 3,331 10,819 27,734
	(1,499) 19,206 4,483 9,666 31,856

The Group had no recognised gains or losses other than those dealt with in the Statement of Financial Activities

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2020

2. Donations, legacies and grants

NCS & employability Vocational training Education Justice Young people & families Place based delivery and early action Other	Year to 31 August 2020 Year to 31 August 2019 Fixed Asset Restricted Restricted Unrestricted Total funds Fixed Asset Restricted Restricted Unrestricted Total funds £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 693 - 693 1,868 - 1,868 - - - - - - - - 555 - - 555 313 - - 318 - 15 115 130 - 70 74 144 - 191 126 317 - 432 89 521 - 407 301 708 - 429 415 844 - 962 188 1,150 - 524 126 650
	555 2,268 730 3,553 313 3,323 704 4,345

NCS & employability
Vocational training
Education
Justice
Young people & families
Place based delivery and
early action
Other

Year to 31 August 2020
Year to 31 August 2019
Fixed Asset
Restricted
Restricted
Unrestricted
Total
funds
Fixed Asset
Restricted
Restricted
Unrestricted
Total
funds
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
693
-
693
1,868
-
1,868
-
-
-
-
-
-
-
-
555
-
-
555
313
-
-
318
-
15
115
130
-
70
74
144
-
191
126
317
-
432
89
521
-
407
301
708
-
429
415
844
-
962
188
1,150
-
524
126
650

555
2,268
730
3,553
313
3,323
704
4,345

The group has benefited from the support of a number of private donors, trusts, foundations and corporate entities including Barclays Bank plc, The Tides Foundation, The National Lottery Community Fund and The Clothworkers’ Foundation.

3. Donations – academy transfers (MAT)

On 1 September 2019, The Coppice Spring Academy was transferred to the Catch22 Multi Academies Trust from the Delta Education Trust. Balances transferred in are detailed below.

Tangible fixed assets Long leasehold land and buildings Pension liabilities Net Assets	Restricted Pension Fund £000 - (297) (297)	Restricted Fixed Asset £000 3,730 - 3,730	Restricted £000 - - -	Total Funds £000 3,730 (297)
				3,433

In March 2020, land and buildings for use by The Spires Academy was transferred to the Catch22 Multi Academies Trust from the ESFA, as set out below.

Tangible fixed assets Long leasehold land and buildings Net Assets	Restricted Pension Fund £000 - -	Restricted Fixed Asset £000 3,100 3,100	Restricted £000 - -	Total Funds £000 3,100
				3,100

Transfer from local authority for the year ended 31 August 2019 relates to the following:

On 1 September 2017 The Everitt Academy and on 1 June 2018 The Fen Rivers Academy converted to academy status under the Academies Act 2010 and all the operations and assets and liabilities were transferred to Catch22 Multi Academies Trust from Norfolk County Council and Suffolk County Council respectively, for £nil consideration.

The transfer was accounted for in the comparative period as a combination that is in substance a gift. The assets and liabilities transferred were valued at the best estimate of their fair value and recognised in the balance sheet under the appropriate headings with a corresponding net amount recognised as a net gain in the Statement of Financial Activities as Donations – transfer from local authority on conversion.

During the current year the land and buildings at these schools have been revalued following receipt of the land and buildings valuation as at 31 August 2019 performed by Montagu Evans. The increase in valuation of land and buildings is as follows:

Tangible fixed assets Long leasehold land and buildings Net Assets	Restricted Pension Fund £000 - -	Restricted Fixed Asset £000 5,020 5.020	Restricted £000 - -	Total Funds £000 5,020
				5,020

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2020

4. Investment income

4. Investment income
Investment income All prior year investment income was also unrestricted	Restricted funds £’000 Unrestricted funds £’000 Year to 31 August 2020 £’000 Year to 31 August 2019 £’000 - 289 289 318
	- 289 289 318

5. Net income/(expenditure) for the year

	Year to	Year to
	31 August	31 August
	2020	2019
	£’000	£’000
This is stated after charging:
Depreciation of tangible fixed assets	338	355
Loss on disposal of tangible fixed assets	5	168
Amortisation of goodwill and intangible fixed assets	104	126
Property rental	1,126	1,396
Auditor’s remuneration
Audit fees for Charity’s annual accounts	31	30
Audit fees for other services:
- the audit of the Charity’s subsidiaries, pursuant to legislation	44	44
- other fees and taxation advice	32	26

6. Charitable activities

Analysis of income from charitable activities for the year ended 31 August 2020

NCS & Employability Education Justice Young people & families Vocational training Place based delivery and early action Other Total	Restricted Funds Unrestricted Funds Year to 31 August 2020 £’000 £’000 £’000 44 3,173 3,217 10,088 5,948 16,036 3,850 6,825 10,675 1,131 6,798 7,929 - 3,165 3,165 472 1,023 1,495 - 11 11
	15,585 26,943 42,528

Analysis of income from charitable activities for the year ended 31 August 2019

NCS & Employability Education Justice Young people & families Vocational training Place based delivery and early action Other Total	Restricted Funds Unrestricted Funds Year to 31 August 2019 £’000 £’000 £’000 - 5,628 5,628 8,216 7,991 16,207 3,447 7,224 10,671 573 7,829 8,402 - 3,598 3,598 1,287 929 2,216 - 34 34
	13,523 33,233 46,756

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2020

6. Charitable activities (continued)

Analysis of expenditure on charitable activities for the year ended 31 August 2020

NCS & employability Education Justice Young people & families Vocational training Place based delivery and early action Other Exceptional items Total	Restricted Pension Funds Restricted Fixed Assets Funds Restricted Funds Unrestricted Funds Year to 31 August 2020 £’000 £’000 £’000 £’000 £’000 - - 1,310 3,024 4,334 734 241 9,686 6,916 17,577 - - 3,705 6,306 10,011 - - 1,314 6,918 8,232 - - - 3,907 3,907 - - 1,060 1,197 2,257 - - 562 50 612 - - - (886) (886)
	734 241 17,637 27,432 46,044

Included within place based delivery and early action expenditure is £nil (2019: £50k) related to the transition of Community Links Trust into the Catch22 group and the related Community Links Trust restructuring costs.

Included in restricted income (total) and expenditure for Justice is £3,840k and £3,705k respectively for the Unlocked Graduates programme. From 1 September 2020 this project has been transferred to a separate company, of which Catch22 is no longer a member. See note 23 for more details.

Included in income (total) and expenditure for Justice is £474k and £495k respectively from the subsidiary Only Connect UK. With effect from 1 September 2020, the charity left the group and Catch22 ceased to be a member. See note 23 for further details.

Analysis of expenditure on charitable activities for the year ended 31 August 2019

NCS & employability Education Justice Young people & families Vocational training Place based delivery and early action Other Exceptional items Total	Restricted Pension Funds Restricted Fixed Assets Funds Restricted Funds Unrestricted Funds Year to 31 August 2019 £’000 £’000 £’000 £’000 £’000 - - 1,044 5,109 6,153 503 527 7,667 9,609 18,306 - - 3,312 6.784 10,096 - - 973 7,836 8,809 - - - 4,307 4,307 - - 1,921 1,493 3,414 - - 404 174 578 - - - 225 225
	503 527 15,321 35,537 51,888

NCS & employability
Education
Justice
Young people & families
Vocational training
Place based delivery and early action
Other
Exceptional items
Total

Restricted
Pension Funds
Restricted
Fixed
Assets
Funds
Restricted
Funds
Unrestricted
Funds
Year to
31 August
2019
£’000
£’000
£’000
£’000
£’000
-
-
1,044
5,109
6,153
503
527
7,667
9,609
18,306
-
-
3,312
6.784
10,096
-
-
973
7,836
8,809
-
-
-
4,307
4,307
-
-
1,921
1,493
3,414
-
-
404
174
578
-
-
-
225
225

503
527
15,321
35,537
51,888

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2020

6. Charitable activities (continued)

Support Costs

The group operates a shared services approach with the majority of support services being provided by Catch22 Charity Limited to the other companies within the group. Support costs incurred directly by other companies within the group, mainly relating to management and administration, are included within the direct costs of the activity carried out by that company. An analysis of the cost of support services (which are included in the charitable expenditure above) provided by Catch22 Charity Limited to the group is set out below. Costs have been allocated to charitable activities as a proportion of the direct expenditure incurred on that activity.

Year Ended 31 August 2020 Raising Funds Charitable activities: NCS & employability Education Justice Young people & families Vocational training Place based delivery and early action Other Trading activities	Business development, marketing and communications Facilities & IT Finance and commercial Human resources Management and strategy Compliance and risk management Total £’000 £’000 £’000 £’000 £’000 £’000 £’000 4 5 6 5 2 3 25 66 80 117 81 40 44 428 266 324 479 329 160 178 1,736 151 184 273 187 91 101 987 125 152 224 154 75 83 813 59 72 106 73 36 40 386 34 42 61 42 21 23 223 9 11 17 11 6 6 60
	710 865 1,277 877 429 475 4,633 6 8 11 8 4 4 41
	720 878 1,294 890 435 482 4,699

Year Ended
31 August 2020
Raising Funds
Charitable activities:
NCS & employability
Education
Justice
Young people &
families
Vocational training
Place based delivery
and early action
Other
Trading activities

Business
development,
marketing and
communications
Facilities
& IT
Finance and
commercial
Human
resources
Management
and strategy
Compliance
and risk
management
Total
£’000
£’000
£’000
£’000
£’000
£’000
£’000
4
5
6
5
2
3
25
66
80
117
81
40
44
428
266
324
479
329
160
178
1,736
151
184
273
187
91
101
987
125
152
224
154
75
83
813
59
72
106
73
36
40
386
34
42
61
42
21
23
223
9
11
17
11
6
6
60

710
865
1,277
877
429
475
4,633
6
8
11
8
4
4
41

720
878
1,294
890
435
482
4,699

Governance costs included in the above support costs amount to £88k

Year Ended 31 August 2019 Raising Funds Charitable activities: NCS & employability Education Justice Young people & families Vocational training Place based delivery and early action Other Trading activities	Business development, marketing and communications Facilities & IT Finance and commercial Human resources Management and strategy Compliance and risk management Total £’000 £’000 £’000 £’000 £’000 £’000 £’000 5 5 9 7 5 3 33 75 68 133 103 73 46 499 224 202 396 306 218 136 1,483 124 111 219 169 120 75 818 108 97 191 147 105 66 714 53 48 93 72 51 32 349 42 32 74 57 41 25 277 7 6 12 9 7 4 44
	638 575 1,127 870 621 387 4,217 8 7 14 11 8 5 54
	646 582 1,141 881 629 392 4,271

Year Ended
31 August 2019
Raising Funds
Charitable activities:
NCS & employability
Education
Justice
Young people &
families
Vocational training
Place based delivery
and early action
Other
Trading activities

Business
development,
marketing and
communications
Facilities
& IT
Finance
and
commercial
Human
resources
Management
and strategy
Compliance
and risk
management
Total
£’000
£’000
£’000
£’000
£’000
£’000
£’000
5
5
9
7
5
3
33
75
68
133
103
73
46
499
224
202
396
306
218
136
1,483
124
111
219
169
120
75
818
108
97
191
147
105
66
714
53
48
93
72
51
32
349
42
32
74
57
41
25
277
7
6
12
9
7
4
44

638
575
1,127
870
621
387
4,217
8
7
14
11
8
5
54

646
582
1,141
881
629
392
4,271

Governance costs included in the above support costs amount to £88k

Exceptional Items

Included within Cost of Charitable Activities are the following exceptional items:

Organisational restructuring and service closures Provision against group company debtor (not consolidated) Recovery from third party / (clawback) of funding relating to non-delivery by a subcontractor Total Expected recovery from third party/(clawback) of funding relating to non-delivery by subcontractor	Year to 31 August 2020 £’000 Year to 31 August 2019 £’000 81 225 33 267 (1,000) 1,014
	(886) 1,506

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2020

7. Staff costs

7. Staff costs
Salaries Redundancies National Insurance contributions Pension contributions The average number of employees during the period split as follows: Charitable Activities Trading Support Total	Year to 31 August 2020 £’000 Year to 31 August 2019 £’000 26,392 28,297 133 143 2,508 2,598 1,728 1,367
	30,761 32,405
	876 945 5 5 86 97
	967 1,047

During the period payments to agencies for temporary staff amounted to £1,590,548 (2019: £2,030,435) Agency staff are used to cover temporary vacancies and to meet short-term needs.

The number of employees whose annual emoluments were £60,000 and above excluding pension contributions were as follows:

	Year to	Year to
	31 August	31 August
	2020	2019
	£’000	£’000
£60,001 - £70,000	17	17
£70,001 - £80,000	7	7
£80,001 - £90,000	3	3
£90,001 - £100,000	2	2
£100,001-£110,000	-	-
£110,001-£120,000	-	-
£140,001-£150,000	1	1

Employer’s pension contributions of £201,499 (2019: £203,851) were paid on behalf of the above staff.

No trustees received any remuneration during the period. One (2019: one) trustee was reimbursed £884 (2019: £1,015) during the year for travelling expenses incurred during the year.

Key Management Personnel

The total employee benefits of the Key Management Personnel were £1,052,140 (2019: £1,184,242).

Volunteers

The average number of volunteers for the year to 31 August 2020 totalled 134 (2019: 162). 95 volunteers worked in Young People & Families on various projects, 33 volunteers worked in Justice, 5 worked in Vocational Training and one worked in Education.

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2020

8. Intangible fixed assets – Consolidated

Cost 1 September 2019 Additions 31 August 2020 Amortisation 1 September 2019 Charge for the year 31 August 2020 Net book value At 31 August 2020 At 31 August 2019	Computer Software £’000 Goodwill £’000 Total £’000 1,780 457 2,237 181 - 181
	1,961 457 2,418
	1,499 457 1,956 104 - 104
	1,603 457 2,060
	358 - 358
	281 - 281

9. Intangible fixed assets – Charity only

Costs 1 September 2019 Additions 31 August 2020 Amortisation 1 September 2019 Charge for the year 31 August 2020 Net book value At 31 August 2020 At 31 August 2019	Computer Software £’000 Total £’000 1,780 1,780 181 181
	1,961 1,961
	1,499 1,499 104 104
	1,603 1,603
	358 358
	281 281

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2020

10. Tangible fixed assets – Consolidated

Cost or Revaluation 1 September 2019 Additions Disposals 31 August 2020 Depreciation 1 September 2019 Charge for the year Disposals 31 August 2020 Net book value At 31 August 2020 At 31 August 2019	Long leasehold land and buildings £’000 Freehold land & buildings £’000 Furniture & equipment £’000 Motor Vehicles £’000 Total £’000 24,545 782 483 30 25,840 6,831 - 381 - 7,212 - - (55) - (55)
	31,376 782 809 30 32,997
	637 128 366 30 1,161 245 13 80 - 338 - - (49) - (49)
	882 141 397 30 1,450
	30,494 641 412 - 31,547
	23,908 654 117 - 24,679

10. Tangible fixed assets – Charity only

Cost or Revaluation 1 September 2019 Additions 31 August 2020 Depreciation 1 September 2019 Charge for the year 31 August 2020 Net book value At 31 August 2020	Long leasehold land and buildings £’000 Freehold land & buildings £’000 Furniture & equipment £’000 Total £’000 3,478 782 328 4,588 - - 350 350
	3,478 782 678 4,938
	- 128 253 381 58 13 62 133
	58 141 315 514
	3,420 641 363 4,424
	3,478 655 74 4,207

At 31 August 2019

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2020

11. Investment in subsidiary – Charity only

Cost 31 August 2019 and 31 August 2020 Impairment 1 September 2019 Charge for the year 31 August 2020 Net book value At 31 August 2020 At 31 August 2019 11. Investments – Consolidated Investment in associated LLP Other investments at market value Investments at market value Quoted investments Cash held by investment managers Unlisted investments 1 September 2019 Acquisitions at cost Disposal proceeds Increase/(decrease) in cash in the portfolio Change in market value Market value at 31 August 2020 Historic cost at 31 August 2020 HSBC - equity HSBC – funds HSBC – fixed income HSBC - others HSBC - cash Other - listed Other - unlisted	Investment in subsidiary £’000 Total £’000 475 475 222 222 253 253 475 475 - - 253 253 31 August 2020 £’000 31 August 2019 £’000 105 105 10,537 10,896 10,642 11,001 10,001 10,438 531 453 110 110 10,642 11,001 11,001 11,001 7,056 3,518 (7,001) (3,591) 103 (25) (517) 98 10,642 11,001 10.290 9,885 31 August 2020 31 August 2019 Market value Original cost Market value Original cost £’000 % £’000 £’000 % £’000 1,011 10 1,115 1,379 12 1,198 5,048 43 4,582 5,426 49 4,698 2,850 27 2,888 2,375 22 2,280 1,088 14 1,060 1,278 12 1,166 531 5 531 428 4 428 4 - 4 5 - 5 110 1 110 110 1 110 10,642 100 10,290 11,001 100 9,885		Investment in subsidiary £’000 Total £’000 475 475	Investment in subsidiary £’000 Total £’000 475 475
			222 222 253 253
			475 475
			- -
			253 253






				9,885

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2020

11. Investments – Charity only

Investments at market value Quoted investments Cash held by investment managers 1 September 2019 Acquisitions at cost Disposal proceeds Increase in cash in the portfolio Change in market value Market value at 31 August 2020 Historic cost at 31 August 2020	31 August 2020 £’000 31 August 2019 £’000 10,528 10,886	31 August 2020 £’000 31 August 2019 £’000 10,528 10,886
	9,997 10,458 531 428
	10,528 10,886
	10,886 10,885 7,056 3,518 (7,001) (3,591) 103 (25) (516) 98
	10,528 10,886
	10,176 9,770
		2019 Original cost £’000 1,198 4,698 2,280 1,166 428
HSBC – equity
HSBC – funds HSBC – fixed income HSBC – others HSBC – cash
		9,770

12. Subsidiaries

The charity is the parent of the following subsidiaries:

Name of subsidiary	Country of incorporation	Registered Office	Activity	Level of control	Aggregate amount of assets, liabilities and funds £’000	Turnover incl. invest income £’000	Costs £’000	Surplus/ (deficit) for the year £’000
The Royal Philanthropic	England and	N/A	Dormant	100%	-	-	-	-
Society incorporating	Wales
the Rainer Foundation
Charity Number
229132
Crime Concern Trust	England and	(1)	Dormant	100%	-	-	-	-
Limited	Wales
Company Number:
02259016
Charity Number
800735
Catch22 Social	England and	(1)	Dormant	100%	(646)	-	-	-
Enterprise Limited	Wales
Company Number:
06166785
Catch22 Social	England and	(1)	Providing training and	100%	(5)	-	-	-
Enterprise Solutions	Wales		employment opportunities
Limited			for the unemployed
Company Number:
07971380

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2020

12. Subsidiaries (continued)

Name of subsidiary	Country of incorporation	Registered Office	Activity	Level of control	Aggregate amount of assets, liabilities and funds £’000	Turnover incl. invest income £’000	Costs £’000	Surplus/ (deficit) for the year £’000
Pupil Parent Partnership	England and	(2)	Dormant	100%	-	-	-	-
Limited	Wales
Company Number:
04872659
Include	England and	(2)	Dormant	100%	-	-	-	-
Company Number:	Wales
02429781
Charity Number
0803333
Catch22 Multi	England and	(2)	Advancing for the public	100%	24,930	17,402	(11,382)	6,020
Academies Trust	Wales		benefit, education in the
Limited			UK through the operation
Company Number:			of alternative provision
08299181			schools
Only Connect UK	England and	(3)	Advancing the education	100%	59	734	495	239
Company Number:	Wales		and prospects of
05848399			prisoners, ex-offenders
Charity Number			and young people at risk
1116147			of crime in London
Citizen22	England and	(2)	Dissolved	100%	-	-	-	-
Company Number:	Wales		4 February 2020
09754657
Community Links Trust	England and	(4)	Community delivery and	100%	3,438	2,364	(2,099)	265
Limited	Wales		early action
Company Number:
02661182
Charity Number
1018517
Community Links	England and	(4)	Events management,	100%	(63)	301	(376)	(75)
Trading Limited	Wales		production services and
Company Number:			storage
05737749
Unlocked Graduates	England and	(5)	Dormant	100%	-	-	-	-
Company Number:	Wales
11448853
Charity Number
1187552
Not consolidated:
for the year ended 31 August 2020
Launch22 Limited	England and	(2)	Mentoring, advice and	100%	(491)	227	(298)	(71)
Company Number:	Wales		training, access to
08789117			facilities and workspace to
Charity Number			enable persons to become
1156715			self-supporting
			Ceased operating July
			2020

Launch22 is not included in the consolidated financial statements of Catch22 Charity Limited as the company has taken advantage of the exemption provided by section 479A of the Companies Act 2006 not to include Launch22, as it is immaterial to the group.

The list of Registered Offices is set out below:

(1) Rectory Lodge, High Street, Brasted, Kent, TN16 IJF
(2) 27 Pear Tree Street, London, EC1V 3AG
(3) 32 Cubitt Street, London, WC1X 0LR
(4) 105 Barking Road, London, E16 4HQ
(5) 36 Whitefriars Street, London, EC4Y 8BQ

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2020

13. Debtors: amounts due within one year

Consolidated Grant and trade debtors Other debtors Prepayments and accrued income Amounts owed by other group companies Charity only Grant and trade debtors Other debtors Prepayments and accrued income Amounts owed by other group companies	31 August 2020 £’000 31 August 2019 £’000 1,755 3,498 1,161 282 2,623 3,723 - 8
	5,539 7,511
	1,362 2,847 1,072 162 1,916 3,292 169 117
	4,519 6,418

14. Creditors: amounts falling due within one year

Consolidated Bank overdraft Bank loan Trade creditors Accrued expenditure and income in advance Other taxes and social security Other creditors	31 August 2020 £’000 31 August 2019 £’000 3,750 3,772 110 110 801 1,862 5,822 3,873 1,699 1,400 324 320
	12,506 11,337

Included in other creditors are outstanding pension contributions amounting to £218k (2019: £187k). £3,750k (2019: £3,750k) of the bank overdraft is secured by a fixed charge over the investments of the charity. It is provided by HSBC Private Bank and is repayable on demand and interest is charged at 1.25% above the base rate. the total facility available is £5,000k. In addition, the charitable group has a £1m unsecured overdraft available from Barclays Bank with interest charged at 3% above the base rate.

Charity only Bank overdraft Bank loan Trade creditors Accrued expenditure and income in advance Other taxes and social security Amounts owing to other group companies Other creditors	3,750 3,772 110 110 418 1,528 4,728 3,159 1,545 1,220 2,525 1,766 166 100
	13,242 11,655

Included in other creditors are outstanding pension contributions amounting to £90k (2019: £96k). £3,750k (2019: £3,750k) of the bank overdraft is secured by a fixed charge over the investments of the charity. It is provided by HSBC Private Bank and is repayable on demand and interest is charged at 1.25% above the base rate. the total facility available is £5,000k. In addition, the charity has a £1m unsecured overdraft available from Barclays Bank with interest charged at 3% above the base rate.

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2020

14. Creditors: amounts falling due within one year

Consolidated–deferred income movement Balance at 1 September 2019 Amount released in the period Amount deferred in the period Balance at 31 August 2020 – all due within one year Charity only–deferred income movement Balance at 1 September 2019 Amount released in the period Amount deferred in the period Balance at 31 August 2020 – all due within one year	£’000 1,539 (1,539) 4,296
	4,296
	£’000 1,209 (1,209) 3,613
	3,613

15. Creditors: amounts falling after more than one year

15. Creditors: amounts falling after more than one year
Consolidated Bank loan Charity only Bank loan	31 August 2020 £’000 31 August 2019 £’000 183 293
	183 293
	183 293
	183 293

A bank loan of £1.1m was received in May 2013 and is repayable in 120 monthly instalments of £9,167. The amount outstanding at the 31 August 2020 is £293k – shown as £183k due in more than one year and £110k due in less than one year - (2019: £403k). The bank loan is secured by a fixed charge over the charity’s leasehold property at Pear Tree Street, London. Interest is charged at 3.28% above base rate.

16. Provisions

Consolidated Pension fund deficit (note 18) Potential clawback of funding relating to non-delivery by a subcontractor Charity only Potential clawback of funding relating to non-delivery by a subcontractor	31 August 2020 £’000 31 August 2019 £’000 2,682 1,499 1,014 1,014
	3,696 2,513
	1,014 1,014
	1,014 1,014

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2020

17. Restricted funds

Consolidated Balance at 1 September 2019 Income Expenditure Transfers between funds Actuarial gain/(loss) on defined benefit pension scheme Balance at 31 August 2020 Charity only Balance at 1 September 2019 Income Expenditure Balance at 31 August 2020	Restricted pension funds £’000 Restricted fixed asset funds £’000 Restricted funds £’000 Total Restricted funds £’000 (1,499) 19,206 4,483 22,190 (297) 7,385 17,853 24,941 (734) (241) (17,637) (18,612) 317 (23) (321) (27) (469) - - (469)
	(2,682) 26,327 4,378 28,023
	- - 2,285 2,285 - - 6,712 6,712 - - (6,841) (6,841)
	- - 2,156 2,156

The specific purposes for which the funds are to be applied are as follows: Restricted pension funds

These arise in Catch22 Multi Academies Trust and represent the negative reserve in respect of the liability on the LGPS defined benefit pension scheme.

Restricted fixed asset funds

These arise in Catch22 Multi Academies Trust and represent the net book value of the land and buildings of academies transferred from the local authority on conversion.

Restricted funds

These arise from donations, grants and fees to fund activities or services as specified by the donor. Income represents donations, grants and fees from government bodies and corporate and trust donors. Expenditure represents expenditure on specific services linked to these restricted donations, grants and fees. Restricted funds also include the activities of the subsidiary company, Catch 22 Multi Academies Trust Limited.

An analysis of restricted funds by activity is set out below:

Transfers between funds

Restricted pension funds: £317k (2019: £259k) – this represents the actual employer contributions in year to the LGPS scheme, transferred from restricted funds in the Catch22 Multi Academies Trust

Restricted fixed asset funds: (£23k) (2019: (£nil)) – this represents property maintenance expenditure transferred to restricted funds in the Catch22 Multi Academies Trust

Restricted funds : (£321k) (2019: £(373k)) - (£317k) and £23k as described above. The remaining (£27k) (2019: (£114k) represents charges for services between the Charity and Catch22 Multi Academies Trust, transferred from/(to) general funds

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2020

17. Restricted funds (continued)

17. Restricted funds (continued)
Prior year Consolidated Balance at 1 September 2018 Income Expenditure Transfers between funds Actuarial gain/(loss) on defined benefit pension scheme Balance at 31 August 2019 Charity only Balance at 1 September 2018 Income Expenditure Balance at 31 August 2019 Current year Consolidated by charitable activity NCS and employability Education Justice Young people and families Place based delivery and early action Place based delivery and early action – fixed assets Other Total restricted funds Charity only by charitable activity NCS and employability Justice Young people and families Other Total restricted funds Prior year Consolidated by charitable activity NCS and employability Education Justice Young people and families Place based delivery and early action Place based delivery and early action – fixed assets Other Total restricted funds	Restricted pension funds £’000 Restricted fixed asset funds £’000 Restricted funds £’000 Total Restricted funds £’000 (811) 14,395 3,331 16,915 - 5,338 16,846 22,184 (503) (527) (15,321) (16,351) - - (373) (373) (185) - - (185) (1,499) 19,206 4,483 22,190 - - 1,149 1,149 - - 6,855 6,855 - - 5,719 5,719 - - 2,285 2,285 Balance 1 September 2019 £’000 Income £’000 Expenditure £’000 Transfers between funds £’000 Balance 31 August 2020 £’000 1,264 736 (1,310) - 690 1,074 10,088 (9,686) (321) 1,155 206 4,104 (3,705) - 605 467 1,323 (1,314) - 476 817 1,039 (1,024) - 832 372 - (37) - 335 283 563 (561) - 285 4,483 17,853 (17,637) (321) 4,378 Balance 1 September 2019 £’000 Income £’000 Expenditure £’000 Transfers between funds £’000 Balance 31 August 2020 £’000 1,264 736 (1,310) - 690 271 4,090 (3,656) - 705 467 1,323 (1,314) - 476 283 563 (561) - 285 2,285 6,712 (6,841) - 2,156 Balance 1 September 2018 £’000 Income £’000 Expenditure £’000 Transfers between funds £’000 Balance 31 August 2019 £’000 438 1,869 (1,043) - 1,264 899 8,216 (7,668) (373) 1,074 2 3,517 (3,313) - 206 434 1,005 (972) - 467 985 1,715 (1,883) - 817 409 - (37) - 372 164 524 (405) - 283 3,331 16,846 15,321 (373) 4,483	Restricted pension funds £’000 Restricted fixed asset funds £’000 Restricted funds £’000 Total Restricted funds £’000 (811) 14,395 3,331 16,915 - 5,338 16,846 22,184 (503) (527) (15,321) (16,351) - - (373) (373) (185) - - (185)
		(1,499) 19,206 4,483 22,190
		- - 1,149 1,149 - - 6,855 6,855 - - 5,719 5,719
		- - 2,285 2,285

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2020

17. Restricted funds (continued)

Prior year

Charity only by charitable activity NCS and employability Education Justice Young people and families Total restricted funds	Balance 1 September 2018 £’000 Income £’000 Expenditure £’000 Transfers between funds £’000 Balance 31 August 2019 £’000 438 1,869 (1,043) - 1,264 112 3,447 (3,288) - 271 435 1,005 (973) - 467 164 524 (405) - 283
	1,149 6,845 (5,709) - 2,285

18. Unrestricted funds

Consolidated *Revaluation reserve* *Designated fixed assets* *General fund* *Total* Charity *Revaluation reserve* *General fund* *Total*	Balance 1 September 2019 £’000 Income £’000 Expenditure £’000 Transfers between funds £’000 Net gains/(losses) on investments £’000 Net gain on revaluation of fixed assets £’000 Balance 31 August 2020 £’000 2,589 - (67) - - - 2,522 55 - (4) - - - 51 7,022 28,263 (28,029) 27 (527) - 6,756
	9,666 28,263 (28,100) 27 (527) - 9,329
	1,707 - (58) - - - 1,649 5,663 26,569 (26,518) - (526) - 5,188
	7,370 26,569 (26,576) - (526) - 6,837

Revaluation reserve

This represents the difference between the net book value and valuation of revalued property.

Designated fixed assets

This represents the net book value of Community Links Trust fixed assets, which were not purchased with restricted funds. Depreciation relating to such fixed assets is charged to this fund.

General fund

This represents funds which are not restricted or designated for specific purposes. General funds are expendable at the discretion of the trustees to further the charitable objects of the Catch22 group.

Prior year
Consolidated
Revaluation reserve
Designated transition
funding
Designated fixed assets
General fund
Total
Charity
Revaluation reserve
General fund
Total

Balance
1September
2018
£’000
Income
£’000
Expenditure
£’000
Transfers
between
funds
£’000
Net gains on
investments
£’000
Net gain on
revaluation
of fixed
assets
£’000
Balance
31 August
2019
£’000
1,087
-
(9)
-
-
1,511
2,589
50
-
(50)
-
-
-
-
55
-
-
-
-
-
55
9,627
35,018
(37,835)
114
98
-
7,022
10,819
35,018
(37,894)
114
98
1,511
9,666
196
-
-
-
-
1,511
1,707
8.837
32,773
(36,045)
-
98
-
5,663
9,033
32,773
(36,045)
-
98
1,511
7,370

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2020

19. Analysis of net assets between funds

Consolidated Fund balances at 31 August 2020 are represented by: Tangible fixed assets Intangible fixed assets Investments Current assets/(liabilities) Long term liabilities Provisions Total net assets Charity Only Fund balances at 31 August 2020 are represented by: Tangible fixed assets Intangible fixed assets Investments Current assets/(liabilities) Long term liabilities Provisions Total net assets Consolidation Fund balances at 31 August 2019 are represented by: Tangible fixed assets Intangible fixed assets Investments Current assets/(liabilities) Long term liabilities Provisions *Total net assets* *Charity Only* Fund balances at 31 August 2019 are represented by: Tangible fixed assets Intangible fixed assets Investments Current assets/(liabilities) Long term liabilities Provisions *Total net assets*	Restricted pension funds £’000 Restricted fixed asset funds £’000 Restricted funds £’000 Unrestricted funds £’000 31 August 2020 Total £’000 - 25,819 335 5,393 31,547 - - - 358 358 - - - 10,642 10,642 - 508 4,043 (5,867) (1,316) - - - (183) (183) (2,682) - (1,014) (3,696)
	(2,682) 26,327 4,378 9,329 37,352
	- - - 4,424 4,424 - - - 358 358 - - - 10,528 10,528 - - 2,156 (7,276) (5,120) - - - (183) (183) - - - (1,014) (1,014)
	- - 2,156 6,837 8,993
	Restricted pension funds £’000 Restricted fixed asset funds £’000 Restricted funds £’000 Unrestricted funds £’000 31 August 2019 Total £’000 - 19,129 372 5,175 24,676 - - - 284 284 - - - 11,001 11,001 - 77 4,111 (5,487) (1,299) - - - (293) (293) (1,499) - - (1,014) (2,513)
	(1,499) 19,206 4,483 9,666 31,856
	- - 4,204 4,204 - - - 537 537 - - - 10,885 10,885 - - 2,285 (6,949) (4,664) - - - (293) (293) (1,014) (1,014)
	- - 2,285 7,370 9,655

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2020

20. Commitments under operating leases

Consolidation

At 31 August 2020 the group had future minimum commitments under non-cancellable operating leases as follows:

Land and buildings: expiring in the first year expiring in the second to fifth year expiring after five years	31 August 2020 £’000 31 August 2019 £’000 383 845 105 265 285 286
	773 1,396

Charity only

At 31 August 2020 the charity had future minimum commitments under non-cancellable operating leases as follows:

Land and buildings: expiring in the first year expiring in the second to fifth year expiring after five years	31 August 2020 £’000 31 August 2019 £’000 383 883 105 265 285 286
	773 1,434

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2020

21. Pension and Similar Obligations

The Catch22 Multi Academies Trust employees belong to six principal pension schemes: the Teachers’ Pension Scheme England and Wales (TPS) for academic and related staff; and Local Government Pension Scheme (LGPS’) for non-teaching staff, consisting of the Hampshire County Council Pension Fund which is managed by Hampshire County Council for Ashwood Academy and The Coppice Springs Academy staff, the Northamptonshire Pension Fund which is managed by Northamptonshire County Council for the Spires Academy staff, the Devon County Council Pension Fund which is managed by Devon County Council for the Burton Academy and Brunel Academy staff in Torbay, the Norfolk County Council Pension Fund which is managed by Norfolk County Council for Fen Rivers Academy staff and the Suffolk County Council Pension Fund which is managed by Suffolk County Council for Everitt Academy staff.

The pension costs are assessed in accordance with the advice of independent qualified actuaries. The latest actuarial valuation of the TPS related to the period ended 31 March 2016 and for the five LGPS schemes 31 March 2019.

Contributions amounting to £111,387 were payable to the schemes at 31 August 2020 (2019: £82,217) and are included within other creditors payable within one year.

Teachers’ Pension Scheme

Introduction

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers' Pensions Regulations 2014. Membership is automatic for teachers in academies. All teachers have the option to opt-out of the TPS following enrolment.

The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary – these contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

Valuation of the Teachers’ Pension Scheme

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS affecting contributions during the year was carried out as at 31 March 2016. The valuation report was published by the Department for Education on 5 March 2019. The key elements of the valuation and subsequent consultation are:

employer contribution rates set at 23.68% of pensionable pay (including a 0.08% employer administration levy)
total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £218,100 million, and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £196,100 million, giving a notional past service deficit of £22,000 million
the SCAPE rate, set by HMT, is used to determine the notional investment return. The current SCAPE rate is 2.4% above the rate of CPI, assumed real rate of return is 2.4% in excess of prices and 2% in excess of earnings. The rate of real earnings growth is assumed to be 2.2%. The assumes nominal rate of return including earnings growth is 4.45%.

The next valuation result is due to be implemented from 1 April 2023.

The employer pension costs paid to TPS in the period amounted to £665k (2019: £406k).

A copy of the valuation report and supporting documentation is available on the Teachers’ Pension website.

Under the definitions set out in FRS102, the TPS is a multi-employer pension scheme. The charitable group has accounted for its contributions to the scheme as if it were a defined contribution scheme. The charitable group has set out above the information available on the scheme.

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2020

21. Pension and Similar Obligations (continued)

Local Government Pension Schemes

The LGPS’ are funded defined benefit pension schemes, with the assets held in separate trustee-administered funds. The total contribution made for the year ended 31 August 2020 was £410k (2019: £332k), of which employer’s contributions totalled £317k (2019: £259k) and employees’ contributions totalled £93k (2019: £73k). The agreed contribution rates for future years is between 6.5 and 16.9 per cent for employers and is between 5.5 and 12.5 per cent for employees.

Parliament has agreed, at the request of the Secretary of State for Education, to a guarantee that, in the event of academy closure, outstanding Local Government Pension Scheme liabilities would be met by the Department for Education. The guarantee came into force on 18 July 2013.

Principal Actuarial Assumptions	At 31 August	At 31 August	At 31 August	At 31 August	At 31 August
	2020	2020	2020	2020	2020
	Hampshire	Norfolk	Northamptonshire	Suffolk	Torbay
Rate of increase in salaries	3.30%	2.90%	2.70%	2.90%	3.20%
Rate of increase for pensions in payment/inflation	2.30%	2.20%	2.20%	2.20%	2.20%
Discount rate for scheme liabilities	1.70%	1.70%	1.70%	1.70%	1.65%
Inflation assumption (CPI)	2.30%	2.20%	2.20%	2.20%	2.20%
RPI Inflation	3.30%	3.20%	3.20%	3.20%	3.20%
	At 31 August	At 31 August	At 31 August	At 31 August	At 31 August
	2019	2019	2019	2019	2019
	Hampshire	Norfolk	Northamptonshire	Suffolk	Torbay
Rate of increase in salaries	3.60%	2.60%	2.60%	2.30%	2.15%
Rate of increase for pensions in payment/inflation	3.50%	2.30%	2.30%	2.30%	2.15%
Discount rate for scheme liabilities	1.90%	1.90%	1.90%	1.90%	1.90%
Inflation assumption (CPI)	2.10%	2.30%	2.30%	2.30%	2.15%
RPI Inflation	3.10%	3.30%	3.30%	3.30%	3.15%

NOTES TO THE FINANCIAL STATEMENT YEAR ENDED 31 August 2020

21. Pension and Similar Obligations (continued)

Local Government Pension Schemes (continued)

Sensitivity Analysis

Approximate monetary increase to the obligation as a result of the following changes in assumptions at 31 August 2020 are set out below:

	At 31 August	At 31 August
	2020	2019
	£000	£000
Hampshire
0.1% increase in the salary increase rate	5	5
0.1% increase in the pension increase rate	56	15
0.1% decrease in real discount rate	64	19
Norfolk
0.5% increase in the salary increase rate	3	-
0.5% increase in the pension increase rate	42	24
0.5% decrease in real discount rate	46	24
Northamptonshire
0.5% increase in the salary increase rate	-	-
0.5% increase in the pension increase rate	40	47
0.5% decrease in real discount rate	40	48
Suffolk
0.5% increase in the salary increase rate	-	-
0.5% increase in the pension increase rate	56	27
0.5% decrease in real discount rate	56	27
Torbay
0.1% increase in the salary increase rate	1	3
0.1% increase in the pension increase rate	62	52
0.1% decrease in real discount rate	63	55

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2020

21. Pension and Similar Obligations (continued)

Local Government Pension Schemes (continued)

The current mortality assumptions include sufficient allowance for future improvements in mortality rates. The assumed life expectations on retirement age 65 are:

	At 31 August	At 31 August	At 31 August	At 31 August	At 31 August
	2020	2020	2020	2020	2020
	Hampshire	Norfolk	Northamptonshire	Suffolk	Torbay
Retiring today
Males	23.0 years	21.7 years	21.5 years	21.9 years	22.9 years
Females	25.5 years	23.9 years	23.7 years	24.1 years	24.1 years
Retiring in 20 years
Males	24.7 years	22.8 years	22.3 years	22.7 years	24.3 years
Females	27.2 years	25.5 years	25.1 years	25.6 years	25.5 years
	At 31 August	At 31 August	At 31 August	At 31 August	At 31 August
	2019	2019	2019	2019	2019
	Hampshire	Norfolk	Northamptonshire	Suffolk	Torbay
Retiring today
Males	23.1 years	21.1 years	22.1 years	21.3 years	22.5 years
Females	25.8 years	23.5 years	24.2 years	23.5 years	24.4 years
Retiring in 20 years
Males	24.7 years	22.4 years	23.9 years	22.3 years	24.2 years
Females	27.6 years	25.0 years	26.1 years	24.9 years	26.2 years

The charitable group’s share of the assets and liabilities in the scheme and the expected rate of return were:	Fair value at 31 August 2020 Fair value at 31 August 2019
	£000 £000
Equities	1,448 872
Government Bonds	403 135
Property	185 206
Corporate Bonds	36 13
Cash	49 28
Other	371 207
Total market value of assets	2,492 1,461

Amounts recognised in the statement of financial activities
	2020 2019
	£000 £000
Current service cost	(699) (427)
Past service cost	- (56)
Net interest cost	(35) (20)
Total operating charge	(734) (503)

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2020

21. Pension and Similar Obligations (continued)

Local Government Pension Schemes (continued)

Changes in the present value of defined benefit obligations were as follows:
	2020 2019
	£000 £000
At 1 September	2,960 1,909
Transfer of existing academy	836 -
Current service cost	699 427
Past service cost	- 56
Interest cost	76 55
Employee contributions	93 73
Actuarial (gain)/loss	535 472
Benefits paid	(25) (32)
At 31 August	5,174 2,960

Changes in the fair value of the charitable group’s share of scheme assets:
	2020 2019
	£000 £000
At 1 September	1,461 1,098
Transfer of existing academy	539 -
Interest income	41 35
Contributions by members	93 73
Contributions by the employer	317 259
Actuarial (loss)/gain	66 28
Benefits paid	(25) (32)
At 31 August	2,492 1,461

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2020

22. Related party transactions

a) During the year Catch22 provided services and recharged costs to The Catch22 Multi Academies Trust Ltd (MAT) amounting to £436k (2019: £490k). The MAT provided services to Catch22 amounting to £230k (2019: £273k). At the balance sheet date Catch22 was owed £34k by the MAT (2019: £14k was owed to the MAT).
b) There were no transactions between Catch22 and Catch22 Social Enterprise Solutions Ltd (Solutions) during the year. At the balance sheet date Catch22 was owed £109k (2019: £109k by Solutions.
c) There were no transactions between Catch22 and Catch22 Social Enterprise Ltd (Auto22) during the year. The amount that was due to Catch22 from Auto22 at 31 August 2020 amounting to £646k (2019: £646k) was written off as irrecoverable in prior years and therefore the balance due at 31 August 2020 included within the Catch22 financial statements was £nil (2019: £ nil).
d) During the year, the Pupil Parent Partnership (PPP) donated £1k (2019:£nil) to Catch22 and Catch22 assumed liability for PPP’s outstanding creditors of £50k.The amount owed by Catch22 to PPP at the balance sheet date was £nil (2019: £51k).
e) During the year, Include donated £253k (2019: £nil) to Catch22 and Catch22 assumed liability for Include’s outstanding creditors of £22k.The amount owed by Catch22 to Include at the balance sheet date was £nil (2019: £275k).
f) During the year Catch22 made payments on behalf of Only Connect UK (OC) amounting to £18k, which were fully repaid in the year (2019: £115k – net of amounts repaid). OC charged rent to Catch22 of £nil (2019: £53k). Also, during the year Catch22 converted £260k (2019: £nil) of the amount owed by OC into a donation to OC. At the balance sheet date Catch22 was owed £6k (2019: £295k) by OC. Included within this amount is a loan for £nil (2019: £260k) which is due after more than 1 year, as reported in Note 13. At the balance sheet date, a provision against the full amount of the debt, £6k (2019: £295k) has been made in the Catch22 accounts.
g) During the year Catch22 purchased services from Community Links Trust amounting to £1k (2019: £40k) and Catch22 made payments on behalf of Community Links Trust (net of amounts repaid) to Community Links Trust of £81k (2019: £151k). At the balance sheet date Catch22 owed £14k (2019: £nil) to Community Links Trust.
h) On 1 July 2019 Community Links Trust entered into an agreement to invest its surplus cash with Catch22, interest of 0.5% above Barclays bank base rate is payable on the amount invested. At 31 August 2020 Community Links had invested £2,511k (2019: £1,425k) with Catch22, which was the amount Catch22 owed Community Links Trust in respect of this agreement.
i) During the year Catch22 purchased services from Community Links Trading amounting to £nil (2019: £12k). Also, during the year Catch22 recharged costs to Community Links Trading, of £17k (2018: £8k – net of amounts reimbursed). At the balance sheet date Catch22 was owed £25k (2019: £8k) by Community Links Trading.
j) On 31 March 2015 Catch22 made a loan of £125k to another charity, Launch22 Limited (formerly Launchpad Labs Limited), at an interest rate of LIBOR plus 0.75% per annum. The amount remained due to Catch22 at 31 August 2020 (2019: £125k). The loan was due for repayment in four equal annual instalments commencing on the second anniversary of the agreement, but remains outstanding and Catch22 made a full provision against this debt in the financial year ended 31 August 2016. Catch22 became the sole member of Launch22 on 23 May 2017 and paid amounts totalling £33k on behalf of Launch22 during the financial year (2019: £78k). £300k was due to Catch22 at the balance sheet date (2019: £267k). At the balance sheet date a provision against the full amount of the debt has been made, including an additional £33k provision in the financial year (2019: £267k). Also, during the year Catch22 made a donation to Launch22 relating to rent on the property from which Launch22 operates amounting to £nil (2019: £53k). Launch22 has not been consolidated into the results of the group for the year ended 31 August 2020 as it is not material. Launch22 closed in July 2020.
k) Catch22 Social Enterprise Solutions Limited is a member of Public Services Lab LLP (PSL), which was incorporated on 24 November 2016, and it controls 32.5% of the voting rights in that entity. There were no transactions between PSL and the Catch22 group during the year and there were no balances outstanding between these entities at the balance sheet date (2019 £nil).
l) Catch22 owns 50% of the voting rights in Jobs22 Limited. This company was incorporate in June 2020 and remained dormant through to 31 d in June 2020 and remained dormant through to 31 August 2020.

23. Post balance sheet events

a) On 1 September 2020, Catch22 ceased to be a member of Only Connect UK and that company left the charitable group. The results of Only Connect UK for the year ended 31 August 2020 are disclosed in note 12. These results are stated after the donation of £260k (2019: £nil) from Catch22 to Only Connect UK as disclosed in note 22.
b) Following the successful incubation of the Unlocked Graduates programme within Catch22 from 1 September 2020 the programme was operated through a separate company, Unlocked Graduates (Company Number: 11448853; Charity Number 1187552). On 1 September 2020, Catch22 ceased to be a member of Unlocked Graduates. During the year ended 31 August 2020 income relating to the Unlocked Graduates programme was £3,840k and expenditure was £3,405k. At the balance sheet date £704k of Restricted Reserves were held in respect of this programme, which has been transferred to Unlocked Graduates during 2020/21.
c) On 1 January 2021 Catch22 completed a merger to become the sole member of Ripple Community Interest Company (Company Number: 07484690). Ripplez’ mission and passion is working alongside vulnerable women and families to meet their health and social needs, encourage aspiration and promote self-efficacy through high quality evidence based programmes. The majority of Ripplez services will be delivered within Catch22, with one legacy service continuing to be delivered by the company.
d) On 1 February 2021, the services delivered by Community Links Trust (see note 12) were transferred into Catch22, following completion of a merger process. All services previously delivered by Community links Trust will now be delivered from within Catch22.

A not for profit business with a social mission catch 22

CATCH22 PEOPLE

Patron

HRH The Princess Royal

Board of Trustees

Terry Duddy, Chairman Carl Cramer, Treasurer (resigned 8 June 2020) Caroline Artis, Treasurer (appointed 24 February 2021) Mike Adamson Elaine Bailey (resigned 16 December 2020) Kieron Boyle Pauline Campbell (resigned 16 September 2020) Ben Cooper Matthew Halstead (appointed 16 September 2020) Jeff Jacobs (appointed 1 July 2020) Daniel Kruger (resigned 21 January 2020) John Marlor (resigned 20 December 2019) Gita North (appointed 23 January 2020) Tove Okunniwa Pria Rai (appointed 28 January 2020) Claire Starza-Allen (appointed 16 September 2020) Paul Williams (resigned 20 December 2019) Richard Williams (appointed 1 July 2020 & resigned 19 March 2021) Sean Williams Honor Wilson-Fletcher

Chief Executive

Chris Wright

Bankers

Barclays Level 27, 1 Churchill Place London E14 5HP

Solicitors

Stone King LLP Boundary House 91 Charterhouse Street Clerkenwell London EC1M 6BHR

Investment Managers

HSBC Private Bank (UK) Limited 78 St James’s Street London SW1A 1JB

Auditors

Moore Kingston Smith LLP Devonshire House, 60 Goswell Road, London, EC1M 7AD

Company Secretary

Nigel Richards

Registered Office

27 Pear Tree Street London EC1V 3AG