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2021-12-31-accounts

Charity registration number 1124492

Company registration number 06481146 (England and Wales)

CAREFREE-FOSTERING INDEPENDENCE CORNWALL ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

CAREFREE-FOSTERING INDEPENDENCE CORNWALL

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Ms JB Hampton (Chair) Mr M Ellis (Treasurer) Mr R Grant Ms C Walker-Booth Ms M Carne Ms H Seymour Mr L Tilley Ms ND Johnson (Appointed 17 June 2021) Secretary Ms S Mari Eggins, Chief Executive Officer Charity number 1124492 Company number 06481146 Principal address Clinton Passage REDRUTH Cornwall TR15 2AY Registered office Clinton Passage REDRUTH Cornwall TR15 2AY Independent examiner Mark Williams FCA DChA RRL LLP Peat House Newham Road TRURO Cornwall TR1 2DP Bankers CAF Bank Limited 25 Kings Hill Avenue Kings Hill WEST MALLING Kent ME19 4JQ

CAREFREE-FOSTERING INDEPENDENCE CORNWALL

CONTENTS

Page
Trustees' report 1 - 10
Independent examiner's report 11
Statement of financial activities 12
Balance sheet 13 - 14
Statement of cash flows 15
Notes to the financial statements 16 - 30

CAREFREE-FOSTERING INDEPENDENCE CORNWALL

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees present their annual report and financial statements for the year ended 31 December 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019).

Objectives and activities

The objects of the Charity are:

To act as a resource for young people up to the age of 25 with particular focus on those aged 13 to 17 living in Cornwall and who have been, are or at risk of being in care by providing advice and assistance and organising programmes of physical, educational and other activities as a means of:

a) Advancing in life and helping them by developing their skills, capacities and capabilities to enable them to participate in society as independent, mature and responsible individuals; b) Advancing education and training;

Principal activity

The principal activity of the charity is to work with young people in or leaving care, giving them the skills to do things for themselves and others.

CAREFREE-FOSTERING INDEPENDENCE CORNWALL

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Achievements and performance

In December 2021 staff reviewed and remembered this strange year, underpinned by a pandemic. Here are the pictures we drew of each quarter of the year.

CAREFREE-FOSTERING INDEPENDENCE CORNWALL

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Our Target Outcomes

During 2021 Carefree staff, Board and young people worked together to identify a set of target outcomes that we could measure our work against. Originating as a Covid 19 Recovery Plan, the outcomes are intended to show all of Carefree’s stakeholders how our work is based in the same principles across all the areas of our work – the principles of building strong relationships, supporting young people at times of transition and enabling care experienced young people to have a voice.

We have written this annual review against those targets, expressed in the diagram below; on the following pages, we have identified each of the individual targets and shown our progress against them, along with an example of work delivered against each outcome.

120 young people are involved in 30-50 hours of peer led group activity – sports, arts and personal development

CAREFREE-FOSTERING INDEPENDENCE CORNWALL

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Our actual outcomes:

132 young people attended an average of 42.5 hours of group activity. This included week-long residentials, ten week evening groups and holiday and weekend activity. Almost all of the young people were evidenced to have increased their ability to work with others in a group setting and develop their understanding of self and others. 46 young people gained a total of 63 formal accreditations for their work including in Team work, Managing Social Relationships, Arts Award and animal care.

Spotlight on… The Culture Card

Carefree and Cornwall Museums Partnership worked together this year to bring young people’s work towards a Culture card, allowing children and young people in care ‘plus one’ entry to many of Cornwall’s wonderful museums and galleries. Young people worked with the Museums Partnership in a range of group work activities where, whilst forming positive relationships. offering peer support and creating their own original art work, they showed how care experienced young people can advocate for better access and inclusion, overcome barriers, celebrate creativity and share success.

160 – 180 young people who have been in the care of Cornwall Council for at least 13 weeks after their 14th birthday, including their 16th birthday, receive a Personal Advisor service which helps them to move into adulthood.

Our actual outcomes:

Our team of Personal Advisors supported 196 young people in this way through 2021. Supporting young people in Cornwall and undertaking out of county visits when a young person originally from Cornwall had moved, Carefree PA’s were in touch with all of the young people on their caseloads and acted as a consistent adult to support the complex move into adulthood.

Spotlight on… Care Leavers’ Photography project, April 2021

Personal Advisors supported young people to work with a photographer at Restormel Castle, learning to take photographs, reflecting on their own lives in a safe context and making new friends.

We will keep in touch with 180 young people who attend our youth and community and/or Careers IAG services at least every 3 months

CAREFREE-FOSTERING INDEPENDENCE CORNWALL

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Our actual outcomes:

We learnt during the Pandemic how important our phone calls and exchange of texts were to the young people we work with and developing a ‘Keeping in Touch’ process this year has been a strong element of our Covid recovery. In actual fact we were in touch in 2021 with 231 young people who came to our services on a voluntary, social education basis. Every care experienced young person now has a ‘Keeping in Touch’ worker who will ensure that they are engaged with activities, receiving regular offers and being supported to know that they are held in mind. One of the strongest pieces of feedback we’ve ever been given is that ‘Carefree never forgot me’. This process will ensure that all our young people have that sense of being kept in mind.

Spotlight on…

25+ Celebration lunch and Graduation day, BF Adventure, October 2021

A group of young people who had reached 25 and were moving out of Carefree’s age range met with staff to reflect on their journey through Carefree. Three of the young people had been with the organisation for at least ten years. Some are continuing to volunteer for us. Tears were shed, memories were shared and the young people confirmed that their take-way from Carefree was in the positive relationships they had developed, with youth workers, with PA’s, with each other.

We will help 240 young people to move through the Leaving Care process through an integrated Personal Advisor, Youth and Community and Careers IAG service.

Our actual outcomes:

In 2021 we provided an in-person support service to 286 young people aged 16 and older

Spotlight on…

Carefree’s Housing Project

Towards the end of 2021 we were able to take our Housing project from an idea – from young people, staff and partners – to a reality, developing a project with the following outcomes:

CAREFREE-FOSTERING INDEPENDENCE CORNWALL

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

We will help 80 – 100 young people improve their outcomes in terms of Education, Employment and Training

Our actual outcomes:

94 young people were helped move closer to fulfilling employment and/or education, with 25 unemployed young people now in long term employment because of our help. 63 employers agreed to consider the Care Leavers’ Covenant, where employers commit to acting as ‘Corporate Aunties and Uncles’ to care leavers.

Spotlight on…

Carefree Drop In

In 2021 we developed a regular drop in for care experienced young people moving closer to employment. Sessions included making informed decisions, interview skills, CV writing, what employers are looking for, job choice, life skills, accreditation, relationship building skills and fun. Seven young people achieved the “Understanding Self for Personal Development” accreditation and are moving on to “Preparation for employment”.

We will support 5 - 10 sets of care-experienced parents and their children

Our actual outcomes:

In 2021 we developed our commitment to the children of our care leavers, following Public Health’s commitment to the Corporate Parenting Board that we will aim for ‘no child in care to have a child in care’. We took part in regular development sessions with health visitors and midwives on the needs of care experienced parents and helped ensure that health services automatically offered these parents an enhanced level of midwifery support. We were able to send parents baby boxes and toys for children during lockdowns and increased capacity for PA’s and youth workers to hold the children of care leavers in mind through joint training with WILD young parent’s project.

Spotlight on…

Consultation day with young parents, December 2021

We worked with a group of care-experienced parents and their children about how we can support them and their children to have better lives. At the workshop young parents told us that ‘others don't get how it feels to be a care experienced and a parent' and spoke about fear and stereotypes around assessments, as well as how difficult it can be to ask for help. We are continuing to develop this project through 2022.

CAREFREE-FOSTERING INDEPENDENCE CORNWALL

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

We will enable 30-50 young people to positively influence local policies relating to the Care system

Our actual outcomes:

32 young people took an active part in local participation this year. Positive changes young people brought about included a recognition that care leavers needed better transport support, which is informing planning, a continued focus on emotional well being and mental health, enabling children and young people access galleries and museums, increased support to care experienced parents and the development of the Housing initiative.

Spotlight on…

Carefree Zine for world leaders – and locals!

Young people designed, created and printed a zine for the G7 Summit expressing their views on issues they feel are important. The exhibition was displayed at the event in Carbis Bay and then at County Hall, Truro.

We will enable 5-10 young people to influence national policy and practice for care experienced children and young people

Our actual outcomes:

9 young people were involved in national participation this year which included informing a national research project on Covid, the National Leaving Care Benchmarking Forum, the England Care Review and the All Party Parliamentary group on children in care and care leavers. Professional advice was given to workers in other local authorities including Devon and Jersey.

CAREFREE-FOSTERING INDEPENDENCE CORNWALL

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Spotlight on…

Carefree presentation to All Party Parliamentary Group on Community, June 2021:

We will enable 20-30 young people with care experience to volunteer to support their peers

Our actual outcomes:

26 young people supported others as peer mentors or young adult volunteers in this year. A comprehensive training offer was provided and young people gained accreditation in areas like Interpersonal Skills, Team Work and Developing Skills for a Healthy Lifestyle. Peer mentoring has been the bedrock of Carefree’s relationship based philosophy since we began, with 6 young people and one worker, in 2005. A care experienced peer mentor exemplifies the values we believe in; that young people with care experience are able to do things for themselves, and to support others.

Spotlight on…

Carefree pilot work with adopted young people

In 2021 Carefree used the learning we have developed over 18 years, and the voices of adopted young people and their parents, to develop a bespoke week for adopted young people. We learnt from young people and their families that there were many similarities between young people who had left care to be adopted and their peers who had grown up in care. Two adopted young people took part in Carefree peer mentor training, and two of Carefree’s existing peer mentors supported the programme’s development. Seven adopted young people took part in this pilot, with six completing a week in October at BF Adventure.

CAREFREE-FOSTERING INDEPENDENCE CORNWALL

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Working in Partnership

Throughout 2021, Carefree has worked closely with local and national partners who include:

Financial review

The results for the year are shown in the statement of financial activities on page 12 and show net (outgoing)/ incoming resources for the year of £133,581 (2020: £231,537), a surplus of £57,189 was generated in respect of unrestricted funds (2020: £17,547).

Reserves policy

The charity holds three months running costs plus closure costs at year end in line with its reserves policy. This is monitored monthly. The current balance in general reserves (excluding the capital reserve) is £84,458 which is assessed as adequate to support the organisation's financial stability going forwards.

Investment policy

The trustees have considered the most appropriate policy for investing funds and find that the current arrangement with short term bank deposits meets the requirement to generate a reasonable return on capital whilst maintaining access to funds for operational purposes.

Risk management

The trustees have examined the major strategic risks to which the charity is exposed and are satisfied that systems are in place to minimise or mitigate these. The trustees will continue to review potential risks on a regular basis and will take further action to minimise or mitigate these risks as required.

Plans for future periods

Carefree has built on our learning in the last year and will be developing work in the future which enables more care experienced young people to have a good life.

In 2022 we will continue to focus on enabling care experienced young people to have positive relationships, support them at times of transition and enable them to have a voice. We will use these strategies to develop our services in several areas, including

Structure, governance and management

Carefree - Fostering Independence Cornwall is a company limited by Guarantee governed by its Memorandum and Articles of Association dated 23 January 2008 and amended 23 May 2008. It became a registered charity with the Charity Commission on 12 June 2008. In the event that the charity is wound up the members agree to contribute an amount of not more than £10 to the assets of the charity.

CAREFREE-FOSTERING INDEPENDENCE CORNWALL

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Ms JB Hampton (Chair) Mr M Ellis (Treasurer) Mr R Grant Ms C Walker-Booth Ms M Carne Ms H Seymour Mr L Tilley Ms ND Johnson (Appointed 17 June 2021)

Recruitment and induction of trustees

The directors of the company are also charity trustees for the purposes of charity law. The trustees may appoint a person who is willing to act to be a trustee. Potential trustees meet the trustees and management prior to the proposal as a trustee. Once appointed, trustees undertake an induction into the working of the charity including observing operational activity, discussions with staff and reading information such as accounts and other evaluation documents.

Organisation

The trustees are legally responsible for the overall control and management of the charity. The Chief Executive Officer is responsible for the day to day management and administration of the charity and reports to the trustees.

Remuneration policy for key management personnel

The trustees consider the Chief Executive Officer and the Finance Manager to comprise the key management personnel of the charity.

The pay of the senior staff is reviewed annually and normally increased in accordance with average earnings. In view of the nature of the charity, the Trustees benchmark against pay levels in other similar organisations.

The trustees' report was approved by the Board of Trustees.

Mr M Ellis (Treasurer)

Trustee

9 June 2022

CAREFREE-FOSTERING INDEPENDENCE CORNWALL

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF CAREFREE-FOSTERING INDEPENDENCE CORNWALL

I report to the trustees on my examination of the financial statements of Carefree-Fostering Independence Cornwall (the charity) for the year ended 31 December 2021.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Mark Williams FCA DChA

RRL LLP Peat House Newham Road TRURO Cornwall TR1 2DP

Dated: 17 June 2022

CAREFREE-FOSTERING INDEPENDENCE CORNWALL

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income from:
Donations and legacies
3
70,301
-
Charitable activities
4
37,205
770,064
Investments
5
7
-
Total income
107,513
770,064
Expenditure on:
Charitable activities
6
50,784
960,930
Net gains/(losses) on
investments
10
556
-
Net incoming/(outgoing)
resources before transfers
57,285
(190,866)
Gross transfers
between funds
(96)
96
Net movement in funds
57,189
(190,770)
Fund balances at 1 January
2021
167,825
309,438
Fund balances at 31
December 2021
225,014
118,668		 Total Unrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
70,301
15,887
20,000
807,269
116,169
866,040
7
49
-
877,577
132,105
886,040
1,011,714
112,116
674,015
556
(477)
-
(133,581)
19,512
212,025
-
(1,965)
1,965
(133,581)
17,547
213,990
477,263
150,278
95,448
343,682
167,825
309,438		 Total
2020
£
35,887
982,209
49
1,018,145
786,131
(477)
231,537
-
231,537
245,726
477,263

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

CAREFREE-FOSTERING INDEPENDENCE CORNWALL

BALANCE SHEET

AS AT 31 DECEMBER 2021

Notes
Fixed assets
Tangible assets
13
Investments
12
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within
one year
16
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
18
Unrestricted funds
Designated funds
20
General unrestricted funds		 2021
£
88,769
291,937
380,706
(43,178)
140,556
84,458		 £
556
5,598
6,154
337,528
343,682
118,668
225,014
343,682		 2020
£
60,685
443,441
504,126
(34,274)
59,113
108,712		 £
1,113
6,298
7,411
469,852
477,263
309,438
167,825
477,263

CAREFREE-FOSTERING INDEPENDENCE CORNWALL

BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2021

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2021.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 9 June 2022

Mr M Ellis (Treasurer)

Trustee

Company Registration No. 06481146

CAREFREE-FOSTERING INDEPENDENCE CORNWALL

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
Cash flows from operating activities
Cash (absorbed by)/generated from
operations
24
Investing activities
Proceeds on disposal of investments
Interest received
Net cash generated from investing
activities
Net cash used in financing activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
£
(152,767)
1,256
7
1,263
-
(151,504)
443,441
291,937		 2020
£
1,076
49		 £
223,088
1,125
-
224,213
219,228
443,441

CAREFREE-FOSTERING INDEPENDENCE CORNWALL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

Charity information

Carefree-Fostering Independence Cornwall is a private company limited by guarantee incorporated in England and Wales. The registered office is Clinton Passage, REDRUTH, Cornwall, TR15 2AY. In the event that the charity is wound up the members agree to contribute an amount of not more than £10 towards the assets of the charity in the event of liquidation. The members of the charity are the trustees named on the legal and administrative information page.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

CAREFREE-FOSTERING INDEPENDENCE CORNWALL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.5 Expenditure

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

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

Governance costs

Governance costs include costs of the preparation and examination of the statutory accounts, the costs of trustee meetings and the cost of any legal advice to trustees on governance or constitutional matters.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating staff costs by the time spent and other costs by their usage.

1.6 Tangible fixed assets

Tangible fixed assets costing £500 or more are capitalised and are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings 25% straight line basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

CAREFREE-FOSTERING INDEPENDENCE CORNWALL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

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.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

CAREFREE-FOSTERING INDEPENDENCE CORNWALL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted Unrestricted
Restricted
funds
funds
funds
2021
2020
2020
£
£
£
Donations and gifts
69,781
446
20,000
Government grants
520
15,441
-
70,301
15,887
20,000		 Total
2020
£
20,446
15,441
35,887

HMRC - grants have been received totalling £520 (2020: £15,441) to help with the furloughed staff whilst in a nationwide lockdown due to COVID-19.

4 Charitable activities

Grants and contracts for general charitable purposes
Grants and contracts for specific purposes
Other income
Analysis by fund
Unrestricted funds
Restricted funds		 2021
£
37,330
770,064
(125)
807,269
37,205
770,064
807,269		 2020
£
116,019
866,040
150
982,209
116,169
866,040
982,209

CAREFREE-FOSTERING INDEPENDENCE CORNWALL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

4 Charitable activities

Charitable activities
Grants and contracts
Big Lottery
BBC Children in Need
Bleu Blanc Rouge Foundation
Esmée Fairbairn
Learning Partnership - Building Better Opportunities
Cornwall Council (see below)
British Foreign Schools Society
Learning Partnership - Ambitions
Youth Music
Learning Partnership - Skills Your Way
Other		 (Continued)
67,778
83,337
71,163
74,647
-
125,000
50,000
76,000
-
36,222
402,961
383,722
30,588
15,079
-
9,558
-
10,498
55,238
-
129,666
167,996
807,394
982,059		 (Continued)
67,778
83,337
71,163
74,647
-
125,000
50,000
76,000
-
36,222
402,961
383,722
30,588
15,079
-
9,558
-
10,498
55,238
-
129,666
167,996
807,394
982,059
982,059

The amounts included in Cornwall Council include the following for specific purposes: £152,484 - 16+ Careleaver Service

£135,567 - Leaving Care Services (Via The Learning Partnership for Cornwall and the Isles of Scilly) (2016 - 2021)

£56,292- Participation and Engagement Services (2021 - 2026) £38,294 - Participation and Engagement Services (2016 - 2021) £8,324 - Careers, Information and Advice Guidance Year 11's Pilot £7,000 - Contain Outbreak Management Fund Adoption Pilot £5,000 - DWP Household Support

The amounts included in other grants and contracts include the following for specific purposes: £23,000 - The Listening Fund £20,000 - Lloyds Foundation £19,250 - Barnardos - Triangles Care Journey Project £15,000 - Cornwall Community Foundation £14,089 - Compass Project £997 - Reverberate

The amounts included in other grants and contracts include the following for general charitable purposes: £25,000 - Lloyds Foundation £9,130 - Cornwall Council £1,500 - Other grants £750 - Esmée Fairbairn £550 - Edulink £400 - Listening Fund

CAREFREE-FOSTERING INDEPENDENCE CORNWALL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

5 Investments

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Interest receivable 7 49
Charitable activities
2021 2020
£ £
Staff costs 776,778 606,648
Depreciation and impairment 557 557
Activity venue hire 12,801 6,290
Project resources 8,370 5,576
Young peoples travel 22,392 16,609
Other project costs 17,275 39,775
Funds 4 care purchases 50,578 -
888,751 675,455
Share of support costs (see note 7) 113,091 105,879
Share of governance costs (see note 7) 9,872 4,797
1,011,714 786,131
Analysis by fund
Unrestricted funds 50,784 112,116
Restricted funds 960,930 674,015
1,011,714 786,131

6 Charitable activities

CAREFREE-FOSTERING INDEPENDENCE CORNWALL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

7 Support costs


Staff costs
Rent, rates and
insurance
Repairs and
maintenance
Telephone and fax
Computer software and
maintenance costs
Printing, postage and
stationery
Sundry expenses
Cleaning
Bad debt write off
Advertising
Bank charges
Audit fees
Accountancy
Legal and professional
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
53,378
-
17,713
-
4,363
-
12,610
-
16,906
-
3,040
-
3,148
-
1,715
-
-
-
-
-
218
-
-
3,720
-
2,080
-
4,072
113,091
9,872
113,091
9,872		 2021
£
53,378
17,713
4,363
12,610
16,906
3,040
3,148
1,715
-
-
218
3,720
2,080
4,072
122,963
122,963		 Support
costs
Governance
costs
£
£
47,000
-
18,021
-
8,730
-
16,259
-
7,305
-
2,357
-
3,396
-
1,714
-
360
-
612
-
125
-
-
-
-
3,203
-
1,594
105,879
4,797
105,879
4,797		 2020
£
47,000
18,021
8,730
16,259
7,305
2,357
3,396
1,714
360
612
125
-
3,203
1,594
110,676
110,676

8 Trustees

None of the trustees (or any persons connected with them) received any remuneration from the charity during the year.

No trustees were reimbursed for expenses in the year (2020: one trustee £23).

9 Employees

The average monthly number of employees during the year was:

2021 2020
Number Number
Charitable activities 31 28

CAREFREE-FOSTERING INDEPENDENCE CORNWALL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

9
Employees
Employment costs
Wages and salaries
Social security costs
Other pension costs		 (Continued)
2021
2020
£
£
752,590
592,126
49,359
43,751
28,207
17,771
830,156
653,648		 (Continued)
2021
2020
£
£
752,590
592,126
49,359
43,751
28,207
17,771
830,156
653,648
653,648

Included in the above wages and salary costs are redundancy costs totalling £18,000 (2020: £Nil).

There were no employees whose annual remuneration was more than £60,000.

10 Net gains/(losses) on investments

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Revaluation of investments 482 (546)
Gain/(loss) on sale of investments 74 69
556 (477)

11 Taxation

The company is a registered charity and is, therefore, exempt from taxation.

12 Fixed asset investments

Fixed asset investments
Listed
investments
£
Cost or valuation
At 1 January 2021 6,298
Valuation changes 482
Disposals (1,182)
At 31 December 2021 5,598
Carrying amount
At 31 December 2021 5,598
At 31 December 2020 6,298

CAREFREE-FOSTERING INDEPENDENCE CORNWALL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

13
Tangible fixed assets
Cost
At 1 January 2021
At 31 December 2021
Depreciation and impairment
At 1 January 2021
Depreciation charged in the year
At 31 December 2021
Carrying amount
At 31 December 2021
At 31 December 2020
14
Financial instruments
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
15
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
16
Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 Fixtures and fittings
£
4,456
4,456
3,343
557
3,900
556
1,113		 Fixtures and fittings
£
4,456
4,456
3,343
557
3,900
556
1,113
4,456
3,343
557
3,900
556
1,113
2021
£
5,598
2021
£
-
1,131
87,638
88,769
2021
£
11,632
6,457
8,772
16,317
43,178		 2020
£
6,298
2020
£
22,645
35,340
2,700
60,685
2020
£
13,420
7,336
7,580
5,938
34,274

CAREFREE-FOSTERING INDEPENDENCE CORNWALL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

17 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to the statement of financial activities in respect of defined contribution schemes was £28,207 (2020: £17,771).

There was £4,151 (2020: £4,776) of outstanding contributions at the year end.

Restricted funds The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes: Movement in funds
Movement in funds		 Balance at
Incoming
Resources
Transfers
Balance at
Incoming
Resources
Transfers
Balance at		 1 January 2020
resources
expended
1 January 2021
resources
expended
31 December		 2021 £
£
£
£
£
£
£
£
£		 Big Lottery
3,721
83,337
(76,811)
-
10,247
42,284
(52,622)
91
-		 BBC Children in Need
5,572
74,647
(40,691)
39
39,567
71,163
(93,909)
-
16,821		 Co-Operative Foundation
-
35,000
(35,000)
-
-
-
-
-
-		 Esmée Fairbairn Foundation
35,254
50,000
(42,652)
(2,000)
40,602
50,000
(53,102)
-
37,500		 Cornwall Council - 16+ Careleaver Service
-
-
-
-
-
152,484
(152,484)
-
-		 Cornwall Council - Participation and Engagement Services
-
-
-
-
-
56,292
(33,494)
-
22,798		 Cornwall Council - Other
-
-
-
-
-
20,324
(11,560)
-
8,764		 Youth Music
4,699
10,498
(15,197)
-
-
-
-
-
-		 British and Foreign Schools Society
10,239
15,079
(25,322)
4
-
30,588
(30,589)
1
-		 Listening Fund (Blagrave Trust)
10,035
-
(9,704)
(331)
-
23,000
(17,187)
-
5,813		 Barnardos
-
13,750
(8,123)
-
5,627
19,250
(24,879)
2
-		 Big Lottery Keeping in Touch
-
-
-
-
-
25,494
(12,377)
-
13,117		 Cornwall Council - Participation and Engagement Services (2016 - 2021)
13,473
112,588
(77,705)
-
48,356
38,294
(86,650)
-
-		 Local Authority - Leaving Care Services (Via The Learning Partnership for Cornwall and the Isles of Scilly) (2016 - 2021)
22,430
271,134
(236,295)
-
57,269
135,567
(192,835)
(1)
-		 Other Grants
-
181,436
(73,666)
-
107,770
105,324
(199,242)
3
13,855		 Learning Partnership - Building Better Opportunities End to End
(11,250)
30,447
(25,880)
6,683
-
-
-
-
-		 Learning Partnership - Building Better Opportunities participant costs
3,911
-
-
(3,911)
-
-
-
-
-		 Learning Partnership - Ambitions
(2,636)
8,124
(6,969)
1,481
-
-
-
-
-		 95,448
886,040
(674,015)
1,965
309,438
770,064
(960,930)
96
118,668		 - 26 -
18

Restricted funds
(Continued)		 Description, nature and purpose of restricted funds Big Lottery Positive activities and accreditation for young people in and leaving care Positive activities and accreditation for young people in and leaving care BBC Children in Need Peer mentor development Co-Operative Foundation Enabling Carefree to work with young people in and leaving care to reduce youth loneliness Esmée Fairbairn Foundation Core funding to promote better emotional and mental health, improve local services and influence national services for young people in and leaving care Cornwall Council - 16+ Careleaver Service For provision of a Personal Advisor service for young people leaving care For provision of a Personal Advisor service for young people leaving care Cornwall Council - Participation and Engagement Services Enabling young people in and leaving care to associate with their peers and influence the services they receive Cornwall Council - Other •
Support to care experienced year 11’s with careers advice and guidance		 •
Support to care experienced year 11’s with careers advice and guidance		 •
Contain Outbreak Management Fund piloting work with adopted young people		 •
Dissemination of DWP Household Grant		 27
18

(Continued)
Restricted funds Youth Music Helping young people in care enjoy and achieve through music British and Foreign School Society Deliver Edulink, working in schools to enable young people in care to achieve Listening Fund (Blagrave Trust) Improving how we listen to young people and influencing the local authority to do the same Barnardos Supporting our partnership work with a national children's charity Big Lottery Keeping in Touch Group work, social and emotional support, resilience building positive activities to young people aged over 16 who are care experienced. Cornwall Council - Participation and Engagement Services (2016 - 2021) Enabling young people in and leaving care to associate with their peers and influence the services they receive Local Authority - Leaving Care Services (via The Learning Partnership for Cornwall and the Isles of Scilly) For provision of a Personal Advisor service for young people leaving care Learning Partnership - BBO End to End and Participant Costs Enable young people not in Education Training or Employment to improve their chances of positive careers Learning Partnership - Ambitions For provision of careers-based information advice and guidance to young people not in, or at risk of not being in, education employment or training - 28 -
18

CAREFREE-FOSTERING INDEPENDENCE CORNWALL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

19
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2021
2021
£
£
Fund balances at 31
December 2021 are
represented by:
Tangible assets
556
-
Investments
5,598
-
Current assets/
(liabilities)
255,318
82,210
261,472
82,210		 Total
Unrestricted
funds
Restricted
funds
2021
2020
2020
£
£
£
556
1,113
-
5,598
6,298
-
337,528
160,414
309,438
343,682
167,825
309,438		 Total
2020
£
1,113
6,298
469,852
477,263

20 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Balance at
1 January 2020
Resources
expended
Balance at
1 January 2021
Resources
expended
£
£
£
£
Closure costs
58,000
-
58,000
-
Capital reserve
1,670
(557)
1,113
(557)
59,670
(557)
59,113
(557)		 Transfers
Balance at
31 December
2021
£
£
82,000
140,000
-
556
82,000
140,556		 Transfers
Balance at
31 December
2021
£
£
82,000
140,000
-
556
82,000
140,556
140,556

Purposes of designated funds

Closure Costs - This fund is to be utilised should the charity cease to operate to ensure that all closure costs can be funded.

Capital Reserve - This fund equals the net book value of tangible fixed assets.

21 Capital commitments 2021 2020
£ £
At 31 December 2021 the charity had capital commitments as follows:
Contracted for but not provided in the financial statements:
Acquisition of intangible assets 3,000 -

CAREFREE-FOSTERING INDEPENDENCE CORNWALL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

22
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2021
£
Aggregate compensation
87,918
The charity is controlled by the trustees who are all directors of the company.
23
Analysis of changes in net funds
The charity had no debt during the year.
24
Cash generated from operations
2021
£
(Deficit)/surpus for the year
(133,581)
Adjustments for:
Gift of investment
-
Investment income recognised in statement of financial activities
(7)
Gain on disposal of investments
(74)
Fair value gains and losses on investments
(482)
Depreciation and impairment of tangible fixed assets
557
Movements in working capital:
(Increase) in debtors
(28,084)
Increase in creditors
8,904
Cash (absorbed by)/generated from operations
(152,767)		 2020
£
86,080
2020
£
231,537
-
(49)
(69)
546
557
(33,146)
23,712
223,088
2021
£
87,918