8wrrcHBACK<I 2023 ANNUAL REPORT Switchback's annual report for the year ended 31 December 2023
The Trustees (who aTe also the directors) are pleased to present their annual report for the year ended 31 December 2023. Contents About Switchback Our values 2023 in numbers p.6-7 p.8-9 Sage's joumey p.10-11 Spotlight on Switchback's EXrtS by Experience Board p.12 Equity. Diversity & Inclusion update p.14-15 r plan. 2022-25 p.16 Aim 1.. A platform for more young Londoners p.17-18 2: A platform tor changing the system p.19-20 m 3.. A platform for collaboratlon p.21-22 im 4= A platform on strong foundations p.23-24 Fin8n¢ial review p.25-29 Introduction
About Switchback Switchback is an award-winning charity supporting young Londoners to find their way out of the justice system and build stable. rewarding lives. Switchback's model is centred on a meaningful relationship between a Switchback Mentor ar)d a Switchback Trainee, beginr)ing in prison and lasting as long as it takes after release. We also make sure that Tr8inee8' practical needs are met in the crucial days and weeks after release. providing essentitls such as mobile phones and data. travel cards and shopping vouchers. as well as supporting Trainees to access housing. training and meaningful work. This is new territory for most Trainees: a frank. non-judgemental relationship with someone who is there for thetn on a daily basis. helping to navigate the turbulent transition trom prison to ¢ommunlty. Building on over 15years of impa¢t. we work with others to share what we've learned and inspire change across the criminal justice system and beyon(J. Our ambition Switchback's ambition is that everyone has the opportunty to live Stsble and rewarding life as an active member of society. Our purpose Switchback's purpose is to enable young men to find a way out of the justice system and build a stsble. rewarding life they can be proud of.
Our values Switchback's values cut through everything we do, from our work with Trainees to our fundraising and partnerships. 1. Human 4. Ambitious Keeping Trainees at the heart of everything we do Having high expectations We assume strengths, resources and abilitles in Trainees. We don't do things for people: we challenge and encourage our TTainees to take control. We are distinctive in our high expectstion8 of Trainees. our own conduct. the qualty of our partnerships and the impact of our work. We build tnjst. confidence, independence and resilience in all areas of a Trainee's life. In all decisions we use the lens.. -does this help us improve the prospects of young prison-leavers7- 2. Authentic 5. Pioneering Rolling with the ups and downs of real life Pushing into our stretch zone We prize integrity and honesty. We don't sell a dream: we are realistic about what It means to genuinely start over and the huge courage needed to change. We recogni8e that change is not linear and we provide a space to learn from rnistake8. We challenge Trainees to move outside their comfort zone and we encourage adventure to learn and grow. As a charity we strive to do the same. constantly seeking to reflect and improve. We pioneer an alternative appioach and share our evidence with others. 3. Committed Taking the long way around Our commitment to Trainees Is consistent and continuous. lasting for as long as it tskes. We reject quick flxes. shortcuts and tick boxes. We do what we say we are golng to do and coach ourTrainees to do the same.
2023 in numbers 824 2,171 young prisoTrl&8vers supported In total by Swltchback Mentors outcomes achieved byTralnees across the 10 Switchback Pathways 69 14 young men engaged as Switchback Trainees- our highest ever number on our intensive 12 Y4eek mentoring programme prisons from which Switchback Trainees were released The lack of effective resettlement support in prison created additional challenges (figures relate to Switchback Trainees 2023): had un8table finances on release with an identifiod mentsl hèalth issue 35% released homeless with an identified drug or alcohol issue
The number of Trainees achieving significant progress rose even further: 87% achieved at least one practical education, employment or training outcome (up from 80% in 2022) • 460/0 had started a job, apprentleeship or further/higher education course within the first 12 months post-release (the same rate as for 2022 for the comparable cohort) progressed from unstable to stablé on S+ pathways (up from 77% in 2022) reached our benchmark of Raal. Lasting Change (up from 65% in W22) Since Switchback began: 3,021 yo of Trainees who have Completed the programme (334 men) Total number ot SwitchbackTrainees who have received meaningful support from a Switchback Mentor since Switchback was founded in 2008 555 Total number of Switchback Trainees sin¢e Switchback vlas founded In 2008
Introduction A criminal justice system in Crisis programme. we also worked with another 755 young men before or after release. ranglng from coaching them to create their own resettlement plan. introducing them to relevant support services. or working with them to write a CV or apply fof housing. training or work. And for the fit3t time we accepted a government grant to be a Probation referral partner and are alieady seeirwJ significantly greater engagement from probation officers and more referrals. In March 2023. the UK prison population reached 99% of safe capacity. rnarking an unprecedented level of overcrowding. The contlnued under- resourcing of both the prison and probation services prevented people serving a prison sentence from accessing the effective support needed to build a stsble life on release. It's strlking that HM Inspectorate of Prisons failed to rate a single prlson as -good° in 2022-23 for their work on rehabilitation and release planning. The unpredictability of early releases. intended to reduce overcrowding, also made it harder to plan timely support for housing and other essential needs. And when people were released. it was into an acutety challenging economic enviror)ment of a national housing crisis and rising livirbg costs with minimal access to support or guidance. The power of including lived experience in policymaking The impact data in this report clearly shows the power of providing consistent through-the-gate support, but it is the Trainèes themselves who are the most persuasive advocates of the need for change. In June 2023. Switchback Experts by Experience (EbE) made a visible impact on the Minister for Prisons and Probation as they shared their experience and views about the benefit to Trainees and our society of our transformational post-re12ase wraparound support and a phased introduction to work. Doing resettlement differently Amongst the polltical and media noise surrounding this perfect stortn, Switchback has contlnued to offer the consistent. reliable support th* makes it possible tor young men to live life differently after PTison. 2023 w8s Dur busiest year yet, with 69 young men engaging as Switchback Trainee6 on our intensive twelve- week mentoring programme. Despite all the challenges they faced. almost half of 2023's cohart who completed the programme a year ago have already secuTed permanent WOTk or long- term training. giving them vital economic stabilty and a sense of belonging and purpose. In the year leading up to the General Election, we worked with our EbE Board to develop our costed National Resettlement Framework to share our proposals with the main polltical parties. Our evidence showed how investing in resettlement SUPPOTt services like Switchback's can swe the taxpayer significant sums, both through reducing the cost of an unnecessarily large prison estate and through supporting people leang prison to make a positive contribution to society. At the time of writing this ieport, vie are encouraged by the new Government's early comments about the scale of the challenge and the need for systemic, sustainable solutions that prioritise effective At Switchback we want everyone leaving prsson to rèceive the most appropriate support. end in this report you wll leam more about our pilots to expand our reach. Alongside our intenslve
resettlement. We particularly welcome the appointment of James fimpson as the Minister foi Prisons. as it demonstrates a clear understsnding of the need for sector expert involvement when tsckling a problem of this SC21e. We look forward to working with him and the Minlstry of Justice team in their renewed focus on tackling the crisis in our prisons. Thankyou Finally. as always. we owe a huge debt of gratitude to all our supporters and partners for YOUT invaluable contribution to this work. encompassing everything from encouragement to funding, from practical guidance and advice to opportunities forTrainee£, and much more besides. Your unwavering generosity and belief In our mission and model are what enable us to help even more men leaving prison to build a stable and rewarding life they can be proud of. As we enter a new chapter under a new Government. we feel incre2singly hopéful that lastir)g systemic change towards effective resettlement policy and practice might be possible. We invite you to join us and the Switchback EbE Board as we continue our work to reshape the LJK'S resettlement landscape and flip the script about living life differently on release. Looking forward - scaling our impact in 2024 and beyond We entered 2024 wtth a refreshed Board and Leadership Team. vrfho together bring valuable skills and expertise and make us more representative both of the men we work alongside and of modein London. Our collective challenge in developing our next strategic plan is to consider how we can best scale our impact so that even more men can access the support they need to build a stable, rewarding life after prison. Alongside growing our team of highly skilled Switchback Mentors so we can directly support more men in London, we also wantto build our capacity to shar6 our person-centred, relational model with other8 working in this fi'eld. That includes employers who war)t to hire people leaving prison but struggle to know how to do that well. That's why we are renewing our focus on sharing oui model and insight. including developing a business modol that enables sustainable sharing. If you're interested in how we can help you offer tiansformational support to people leaving prisorTr, we'd love to hear from you. Duncan Shrubsole. Chair Sian Williams, CEO
Sage's journey -1 always had big ambfcions. I grew up on a council estate just kicking a b811 in a cage but I knew that there was more to life. Growing up there was a lot of poverty. To be honest, I hated school.118ft with zero GCSES but thats not becÈuse I wasn't interest&d. Nothing in school caught my attention. If I was to do it now. it might be different because I've seen some colleges with courses on making games and with recording studios. It's so advanced. Back then it was a pen on paper or reading from a book. so I didn t like education beoause I found it boring. Its crazy because l actually have a thing for knowledge. I love information. My name is Sage. And when l Googled it one time the descflption came up as- wise man. esoteric. knowledge. deep thinker of philosophy. I thought: 'That describes me to a tee!. Ending up in prison is really down to the people you're around. That s just point blank how it is. If you're around a bunch ot drug dealers. consciously or unconsciously. you funnel habits and just by being in the wrong crowd. you start to do thé wrong things. Everything boils down to money as well. People turn to Cfime to change their circumstances.
When I was in jail. two years of it was in a single cell for 23 hours a day. I'm an introvert. but in jail without distractions that'8 a lot of time to think. I remember being on theyard and someone pointed to a plane and sald. 'Do you see that in the sky? That's lrfe flying by right now.. In jail life flies by while you're on pause. And for some people they've been on pause for something like 18 years or even more. I've been out for nearly a year and I still find it weird sometimes that it rèally happened - I think 'Did 811 that time really go?, Lite is chilled now. Its not that fast pace of before where my lite's on the line, I've got my freedom and I've got my family. For my whole three-and-a-h8lf-year prison sentence I didn't see my mum. She wanted to come and see me but I knew she would start Crying seeing me in that kind of environment. That s very hard. The ftrst tima I told my mum I loved her in my whole life was on a prison phone. Not because I never loved her. it just felt mushy. but in jail that goes away and you See who really cares for you. Prison staff don't help. There's a loi of people in need that go to them with problems that they could help them with but don't. You might get that one in a d02en good oflicer. When I met Switchback, I could tell everyone had pure Intentions and that they just wanted to help. That's good because people that have come from a jail environment can see that there are people that are really here foT them. willing to help. and can provide this kind of service after release. Even after completing the Switchback programme. I've lost count of how many times I've come back for things like EbE and I've kept engaging because there's so much that I've found value in. I'd love to carry on because I see the value of what I can become and the fact that I have a voice and Switchback are wllling to work with me. We. as prison leavers, can voice our opinion and we make things happen. Now. I'm focusing on fashion and jewellery. Fashion is where my passion and my heart is at. I love it because It's like cooking - you can have the same ingredients but make a completely different meal. With fashion, we might be wearing the Same thing. but we look completely different because It's all about how you wear it.. 66 In the future. I see myself being a role model for others where they see what I went through and how I did it in a certain way and changed my life. From prisoner to CEO the legit way. I'm aware of my thoughts and actions and I know the direction I'm heading in. I want to show people that this is how you do it. 99
Spotlight on Switchback's Experts by Experience Board Switchback's EbE Board is a place where current and former TTainees Can work with each other and the Swit¢hback team to influence for bettei policy and practice. Set up initially in 2017 to inform Swltchback's own practice, the EbE now routinely meet n8tional and local decision makers to share their insight and suggestions for more effective resettlement policy and practice. In 2023 EbE was attended by 69 current and former Trainees. who took part in a range of activities from meeting the then Prisons and Probation Minlster to creating social media campaigns to "flip the script" about living life differently after prison. The EbE is expertly facilitated by Elton Gilbert. Switchback's EbE PartiClP2tion Coordinator. For me, this work is about seeing a persorfs personal growth. about seeing individuals tsp inlo their potential and making a positive differen¢e in the worfd. It about empowering others to befRve in themselves and chase their dreams. no matter how big or small." Elton GiU)ert Feedback from our EbE Board members: 'EbE is about rnaking everyone¥ voice heard." "IVS made methirtk abo things that you dony think about. You see when growing up and there's so marry things wrong with the world. wilh authority and the justice system. Sometimes you just to deal with it but here it's like N You dorft just have to deal with it. It shouldrft be like that- rt s letting us actualty try and solve It." "Being a formar SwitchbackTrainee coming through the programme. and EbE Board membèr since 2017 has played a key role in my sÈlF- development. I'm not one to brag, but I'm genuinely proud ot whot we've achieved this year. °EbE allows usto understsnd and get a better insight on TAThat the criminal justice systèm is actualty dolng compared to what lthe government/ 8yStem] think Tt's doing and find an avenue to work on that." +ne of the main reasons [to attendl is because you can havethis type of conversation you bvould never have with your peers. Like I definitely woukln't be having these conversations outside of work but sometimes these are the conversations that need to be had." The EbE Board Is firing on all cylinders, and I'm excited to see it continue to Soar in the years to come. Now in my second year of organising and facilitsting our EbE Board. and as we move forward, I have a few dreams for EbE. I'd love to See usexpand our reach. not Just in terms of numbers but also in terms of impaet. l onvision us collaborotin9 Wtth EbE Boards from other organisations, sharing ideas, and amplifying our collective impact. And, because I'm also a freelance designer, I'm passionats about creing more pathways into the creattve industy for ourTraineès. "We've all ¢ome from the same place- wekn all got a different view on lite. Being able to have drfterent perceptions on the same place. It gives you a 360 outlook. We all respect each others opinions and each othets perspectives. So. we ave an insight on how we would liko theiustice system to work and to beneflt people." 12
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Equity, Diversity and Inclusion update Aim: Building a diverse team and Board re re5entative of our Trainees and modern London Nine in ten Swltchback Trainees are from an ethnic minority background. so tt is vit21 that our team is representative of the tnen we support. that our influencing work clearly challenges the structural reasons underpinning the overrepresentation of ethnic minority communities in the justice system. and that our organisational culture proactive includes and supports all forms of diversity. Switchback's Equity. Dwersity & Inclusion Policy focuses on both our people and our operation81 delivery and is published on our website alongside annu81 diverstty snapshots. Staff and Board recruitment Our prio(ity this yeai was to bring our Board and L£adeTship Team back up to full strength with increased diversity. including through lived experience of the justice system. both to broaden our skills and make us more representstive of ourTrainees. To achieve this. we worked on strengthening our inclusive recruitment process even further. In our re¢iuitment packs we consciously described lived experience as a desirable strength and acknowledged the challenges experienced by people vvith previous convictions when applying for both non-executive and executive leadership Toles. We committed to taking on responsibility for managing barriers arising from lived experience such as the requirement to apply tor a Charity Commission waiver or being refused access to prisons for roles where we would usu811y Consider that access esser)tial. We offered conhdential conversations with the CEO or a Trustee in advance of applying for anyone with lived experlence. And we ran online Q&A sessions for prospective applicants, giving thern the opportunity to hear from a cross- sectlon of the team, including from people with lived experience. These steps have led to signiftcantly more diverse 8pplicant pool tor both our Board and leadership vacancies. and as a result we have signiticantly incTeased the level of lived experience and diversty across our leadership. Our team Ouf annual staff survey snapshot showed that our team conrinues to become more diveise in terrns of age. gender, ethnicity and disability. In 2023.. Our staff weie split equally in age between over and undei 30-year-olds. compared to 69¥0 under 30 in 2021 and 53¥0 under 30 in 2022. 32% of our staff were male in 2023, compaTed to only 16% in 2022. The percentage of staff identifying as white has de¢rpased from 77% in 2021 and 68.4% in 2022 to 59Yo in 2023. 13.6% of OLJr staff described themselve8 ES having a disability. compared to 50h in 2022 and none in 2021. 270h of stsff have lived experience of the justlce system. compared to 28% in 2022. We now also offer flexible working wherever it meets both our HR and business needs. This is being used proactivety in recruitment and in our management and enables us to make Switchback a more accessible workplace and to provlde support lo staff to manage their wellbeing better.
Embedding equity, diversity and inclusion across Switchback Next steps Two key themes that emerged for u6 in 2023 were the additional challenges of entering the workforce for people with lived experience of the justice system. and how we can ensure EDI 18 embedded across all our work whilst recognising that our leam are woiking in an environment that exposes them to socondary trauma. To address tho first challenge. wve began by Creating an in- house induclion video to enable our new first-job joiners to easily understand our working culture and know how to seek support. To address the second. we strengthened our support offer to staff and their managers ir) multiple ways. through increasing access to clinical supetvision and launching our Employee Assistance Progiamme. as well as enhanced tr8ining around trauma- informed practice. Following a staff consultation on our EDI work. we have cleated a new staff EDI Advisory Group made up of volunteers trom across our team. including people with lived experience of the lustice system. They will act as an internal critical friend as we continue to review and strengthen our HR pollcies and frontline delivery 0de1 and practice. to ensure they are ftt for puipose so as to support an increasingly diverse group of Trainees and worktorce to thrive. Finally. we have begun a deep dive into the demographic data foi Trainees. to explore how Trainees. proftles have changed (or not) over time, and to ensure we are both aware of and able to tneet the full range ot Trainee needs. whatever their personal circumstances or demographic background.
Our plan, 2022-25 1. A platform for more young Londoners 2. A platform for changing the system 3. A platform for collaboration 4. A platform on strong foundations , 8wrrGHwY 18
Aim 1: A platform for more young Londoners A platform for more young Londoners: we'll expand our team of Switchback Mentors to double the number of young Londoners we can support, estsblishing Switchback as a beacon ot best practice inspiring change across the system. Year 2 update Overview Throughout 2023. the continuing Imp8Ct of the cost-of-living crlsis. overcrowding in prisons and overburdened probation caseloads all had a demonstrable impact on Tialnees. In particular. the implementation of emergency measures to reduce overcrowding made release dates unpredictable. thus undertnining effective resettlement planning. We responded by increasing our wsible presence in prisons and extending the timeframe after release within which we begin working with someone from four weeks to six months. This last change has enabled us to allow for the court backlogs and probation stsff short8ges that often result in delayed referials. In 2023 we supported a total of 824 young men, the highest ever number ofyoung men in Switchback's history. both through signposting and guidance to access appropriate support. arld on our intensive post-release programme. 69 young men become Switchback Trainees on our12-week Real. Lasting Chan9e programme. our highest ever number in 3 single year. And we worked with further 735 yOLJng men in prison to develop their plans for life post-release or access appropriate services through 1-to-18essions with Switchback Mentois. This pre-release supporc typical covers tinding safe housing. accessing mental health or other Support services post-release. or connecting with an employer or training provider. Whilst harder to quantify our impact. feedback clearly shows that our timely support here can make a significant difference to someone's ability to thrive after ielease. The types of support Trainees needed in 2023 also shifted signiftcantly. There was a notable improvement in access to basic amenities, such as ID and bank accounts. that freed up time in the Mentor-Trainee relationship to focus on longer-term issues. and removed some bureaucratic barriers to accessing housing. training. work and benefits. The success of the cross-sector campaign to end Friday releases also improved access to support and helped creare more sustainable resettlement environment for OUT Trainees. Eut the lack of suitable houslng on release was 8 persist8nt theme which affected Trainees, ability to create the consistency needed to find and retain work. build good mental health and repair relationships. AlorTrgside this, Trainee financial wellbeing was on average more likely to remain precarlous than for Trainees completing the programme in 2022. reflecting the increasingly challenging economic enviionment. 17
Aim 1: A platform for more young Londoners Year 2 progress Impact 69 755 Switchback Trainees engaged additional men received support to address a specilic noed of Trainees reached Real, Lasting Change of Tralnees achieved sustsinable employment. education or training Placed ¢)ver a third of Tralnees into sustsinable jobs Increasing our reach Piloted working with prison-legv•rs aged over Extsnded the timeframe we work with people up to six months post-release 30 31 Learning Lliiloclced Collaborated with Unlocked Graduates on full sustainable employment review Invested in training and skills for Mentors 18
Aim 2: A platform for changing the system A plattorm for changing the system: we'll support more Trainees to take an ever-greater role in championing change across the justice system and tsckling social and racial injustice - foregrounding their experience and shifting perceptions by amplifying Trainee voice and influence at every opportunity. Year 2 update Overview Antonia May Cross joined us in June 2023 as our new Head of Influencing. Her skill sot has driven our systems change work and she has led on building Strategic relationships with our EbE Board and a broad range of national media and decision-makers. 2023 saw Svvit¢hback s EbE Board. comprised of current and former Trainees. take an even greater role in shaping our infiuencing work. as well as sharing their proposals for better resettlement policy with a range ot key policy stakeholders and media channels. -Reshape Release.- Wo co-hosted the then Minister for Prisons and Probatlon. Damian Hinds. with our Real Work Training partner, the I Dusty Knuckle Bakery. creating an opportunity for three Switchback Trainees to share both their journey and theirviews on what needs to change for more effective resettlement policy diiectly with the goveTnment minister making those decisions. With a general electlon on the horizon. we ramped OUT work to develop a National Resettlement Framework proposal. We were P8rticvlarly grateful for support on this fro Pro Bono Economics in the form of a cost- benefi't analysis which increased the impact of our proposal when we shared it vvith the main political parties ahead of mani*esto development. We received encouraging interest in our proposals. including from the new Secretsry of State for Justice, Shabhana Mahmood, who held the Shadow post at the time. We continue to use every opportunity to press policymakers to Pfioritise better post-release support. As palt of our Flip the Script campaign, we began to measure the extent to which we are changing h¢)w journalists and media outlets talk about people with lived experience of prison. Our EbE Board worked with us to redesign OLtr metrics of success for our media strategy, creating an EbE quality scale for the language and framing Journalist8 and m&dia outlets use when portraying people with lived experien¢e of the justice system. We now use thls scale to provlde feedback to journalists we work wwth as part of EbE's journey telling process, thereby 'flipping thè script, on the power dynamic in media relations. We conrinued to build our relationships with televant government departments. including the Ministry ot Justice's Resettlement Team. to share our learning and lived experience of successful resettlement with key decision- makers in pursuit of our campaign goal to Responding to the ewdence from ourTrainee data that poor mental hoalth was a significar)t yet unaddressed issue for prison leavers. we wero grateful to Clinks for supporting our collaboration with our neighbour. the antl-PDverty charity Toynbee Hall. to scope the potential for peer-18d research Into the scale of the problem. as well as potential solutions.
Aim 2: A platform for changing the system Who? What they did 69 people attended an EbE Board sesslon Provided expert experience to th6 APPG lor Ending Homelessness to raise awarèness ot the issue of being released from prison into homelessnèss Facilitstion training and upskilling of Infiuencing Team to better support EbE Christmas Reshape Release film won the Big Give Awards 'So¢ial Media Expert. Award and Swit¢hba¢k's 'Thme S Agairf podcast series won Gold and Bronze at the British Podcast AvrdS Averay ot Supported the CoverThe Cost Coalition - the campaign successfully tralled on Governm&nt to stop more people becoming homeless by ensurbng Local Housing Allowance will 'Cover The ¢ost' of rents EbE members per s•ssi<)n 20
Aim 3: A platform for collaboration A platform for collaboration.. we'll work creatively with others to enable growth of our delivery and drive change across the system. Year 2 update Overview In 2022. the closufe of key training partners following the pandemic 8nd cost-of-living crisis had shown us the need to broaden our pipeline of training and employment opportunities for Tiainees. This theme continued into 2023. as we saw increasing diversity amongst Trainees. life and work experience. as w?11 as greater neurodivergence. We continued to invest in our partnerships and strategic relationships within the sector, sharing our model for relational working with prospective employment partners. We paiticularly locused on the two key thernes of bolstering our links with the creative industry to provide a wider variety of opportunities and investing in supporting those with neurodlvergences with sustainable routes into employment. education and training. Coordinator has supported our drive to pursue engagement with the creative sectoi, helping build new partnerships Wlth Dazed & Confused magazine, Dazed Club and Hatch Media, as well as sharing paid media opportunities bvith Trainees through a new creètive jobs board. A large part of our work in 2023 centred on reinforcing our repLttstion as a trusted and high-quality service provider to prison governors, probation teams and other relevant agencies to build a stronger inward referral pipeline and share our learning. For the first time in oui history. we have accepted a government grant to take referrals from probation. and this is already leading to an increase in referrals and successful engagement. At the other end of our pipeline. we have also strengthened our network of service providers, building our capacity to support Trainees across the ten different pathways in our Real, Lasting Change programme. Parti¢ularly relevant in a cost-of- living crisis has been our partnership with the Financial Conduct Authority. with FCA employees volunteeilng to create an accessible tinancial wellbeing guidè for Switchback Mentors to support Trainees. This approach has led to a mutualw beneffcial experience for both OUT Trainees and the employers we work with. A key factor in our success lay in our partnerships work being led by a former Montor with the practical understanding of the environmental and culiural best practice employeis need for hiring 8nd onboarding that support those with experience of the justice system. And our EbE Participation 21
Aim 3: A platform for collaboration Progress on objectives Shared our model at: catch Youth Work Matters Unlocking Hospitality (New Futures Network Events) Cat¢h 22'8The Role of the Third Sector in the Criminal Justice Systsm The Ministry of JusticèThird Sector Partnership event 22 Ministry of Justi Collaborated with: I.IBERTY Liberty Human Rights and representing on an APPG discussing the racial discrimination prevalent in the CJS .t4
Aim 4: A platform on strong foundations A platform on strong foundations: we'll make the operational step-change needed to become a thriving mid-size charity while closely guarding our values and agility. building a team representative of modern London. Year 2 update Overview Our new Diiector of Finance and Operatlons. Chris Andeison. who joined us at the start of 2023. has contlnued our work to improve our operation81 effi.ciency. including roviewing and updating oui financial processes and launching tenders to inciease value for money in our operations, as well as bringing our Management Accounts in-house. We have implemented both a new HR system and ?n Employee Assistsnce Programme, which together are helping us analyse absence data better and support staff wellbeing fflore effectively- We have also worked on improving our staff induction process for former Trainees who join our staff team. both to help make theii first experience of working in an office environfflent as positive as we would expect from other employers we refer to. and to support our managers to understand the need tor a trauma-informed appioach. with the appointment of Charmaine Best in February 2024. Charmaine brings a wealth of expertise in safeguarding and scaling a successful delivery model. We stsrted 2023 in a strong fi.nancial position. having already secured 46% (£631.2581 of income tor the year and achieved our full income target for the year in December. We were joined in April 2023 by Jack Robson to cover our Head of Fundrai8ing's maternity leave and have benefited from Jack's experience at the RSA in developing relationships wlth larger trusts and foundations. which was o major priority for us in 2023. However, in sumtner 2023 we reviewed our fundraising pipeline wlth the conclusion that there were relatively few new larger funding opportunities still open to us. This was in part due to our success in securing several large grants in 2022 and 2023, but also simply due to there being a faiTly lirnited number of funders whlch prowde large frontline delivery tunding for resettlement work in London. We ther8fore began to put in place the infrastructure to diversify our income in 2024, with the aim of growing our individual giving and corporate partnerships. alongside OUT larger trusts and foundations income, and thus to incfease our unrestricted income for the future. We ale d81ighted that Hayley Topley h2s returned from her maternity lewe to lead our Philanthropic giving programme. while Jack has stayed on to lead our trusts and toundations fundraising. This shared leadership approach in our fundraising has already significantly increased our capacity at a time when fundraising is growing ever more challenging. After several years of a STable BDard and Leadership Team. in summer 2023 we launched a highly successful reeruitment process to bring new Trustees onto our Board. We redesigned our iecruitment process to be as ir+clusive as possible for people with lived experience ot the justice tystem. We were delighted to welcome three newTrustees - Nicola Hurley. Jasmine Ashley- Tagoe and Hariiette Tillott- and a Board Adviser. Omar Mentesh. Together they bring vital skills and experience in growing income and impact. safeguarding. diversity and inclusion, as well as expelience of the criminal justice system. and ar8 already making signlflcant eontiibutions to strengthening our governance. We also completed recruitment for our permanent Leadership Team 28
Aim 4: A platform on strong foundations Progress on objectives New HR and financial Infrastructure tor effI¢TeY and best praclice Switchback¥ team and Board is more representati of modern London with new opportunities forTraine&s Redesigned our recruitment process to bè more inclusive for people from diverse backgrounds and/or with rived experienco of the Justice system Increased our offer of paid Yiork to Trainees Raised Achieved our annual income tsrget £25,000 £1,219,788 InThe Blg Give Christmas Challenge. winning an award tor our campaign Diversified our income stream, bringing 13 new fvnders. This includes multi-year grants from Garfield Weston Foundation. City Bridge Foundation and The Henry Smith Charity
Financial review Income and expenditure summary As thè cost-of-living crisis continued in 2023 we aro extremety proud that Switchback has continued to demonstrate financial resilience. We had a strong fundraising year ft)r Switchback with a record amount of income raised for the organisation. We continued to benefit from existing donors and multi-year grants as well as secuiing new multi-year grant funding and running our first Blg Give Christmas Cha118nge Campaign. However. due to several factors expenditure for the year was lower than budgeted at 21.216.990. A review of 811 expenditure enabled savings to be made versus budgeteé costs and del2y8 in recruitmènt. 81ongside other unforeseen staff cost savings. resulted in staff costs being significantly lower than budgeted. Expenditure was appropriately focused and facilitated the achievements and performance described above: our expenditure on charitable activities increased by £45.200 in 2023. The total cost of the Switchback programme in 2023 was budgeted at just under £1.4 million. 2020 2021 2022 Ineome 758.305 914.653 1.151.335 1.219.788 Expendrture 612.981 859.676 1.151.342 7,218.990 Surplus/(deficlt) 143.324 {7} 2.798 Total funds- restricted ond unstrIcted 929.282 984.259 984.252 987.050 Income by type 2023 3.3% 4.3% The fundraising landscape continues to be a rough environment within which to operate. De8Plte this we grevl our income in 2023 by 6% compared to 2022: Corporates Individuals 11.4 % Trusts Other 25
Financial review Some of our key donors aré listed below, and - Particular considering the cost-ot-liwng crisis - we are hugely thankful to those many loyal funders who have chosen to support us again in 2023. Additionally, we extend our enormous thanks to the generous anonymous individuals who are not listed here as well as to all donor8 who contributed less than WO,000~ these gifts ale truly vital to our work. Management pay The key man8gement personnel are comprised of the Chief Executive and four Directors/ Heads of Departtnent. The remuneration for key management was reviewed during the Trustées. annual salary review for the whole t8am. Their review considers the following.. Donors that supported Swit¢hba¢k in 2023 (£10.000 or more) Benchrnarking with similar roles in the sector. The charity's financial position. Changes to Cost of living and inflation. City BTldge Foundation Garfield Weston Foundation Ministry of Justice AB Charitable Trust The Henry Smith Charty The National Lottery Communlty Fund The Swire Charitable Tru8t Aurum Charitsble Trust Barrow CadburyTrust Bernard Lewis Family Charitable Trust Brown Dog Comic Relief Esmée Fairbairn Foundation Girdlers. Company Iguano Group Livingbridge Foundation Milton D8merel Trust R.U.B White Charltable Tmst Raise Your Hands The Mark Leonard Trust The Tom Ap Rhys pryce Memorial Trust The Triangle Tru* Investment policy Our annu81 Investment Policy review concluded Switchback funds will not be invested (outside of regular deposit accounts) as the Trustees feel it inappropriatè to take on the level of risk th8t investment brings at this current time. Fundraising regulation The vast majority of our fundraising 8Ctivlty IS arried OLrt by oui in-house fundraising team. Switchback follows the Code set out by the Fundraising Regulator although we are not members ot their Directory due to the scale of our fundraising artivtties. There have been no failures to comply with the Fundraising Code nor has Switchback received any cotnplaints concerning its activities in this aiea Since the foundation of the organisation. Reserves policy Swit¢hback provides a long-term programme. ané we know that our reserves policy should reflect the commitment we make to our Trainees that we will remain available to them for as long as they need. not constrained by limited timeframes. 26
Financial review The Board of Trustees is Tequired to annually review and agree the reserves policy. The Finance & Resources Sub-committee, therefore. discussed our current policy at its meeting in November 2023, which was then agreed by the full Board at its meeting in December 2023. In setting our reserves policy. the TTustees wish to maintain 8 level of reserves that provides a stable basis for its continuing activities whilst at the same time ensurlng that funds are utilised for rhe benetit of Trainees. Structure, governance and management The charity number. principal addresses and details of professional advisers are included in the administratlve information sheet at the front of these accounts. The Switchback Initiative (trading as "Switchback.) is a company limited by guarantee. registered in England and Wales on 10th June 2008 and governed by Articles of Association. 2023 has seen some changes to ourTrustee Board as three Trustees retired. We undertook a recruitment process at the end of 2023 and were delighted to identify four suitable candidates to join the Board. Three have been formally appointed to the Board as Trustee in 2024. and the fourth is currently acting as ar) Adviser. Our policy states that the minimum level of resetves should be the cost 8ssociated with the extreme scenario of having to wind down the organisatiork, in an orderly fashion. were no more funds to be recefved. This is calculated at 4 months, running costs. Beyond this. we want to ensure that we are able to maintain sufficient financial flexibility to enable us to move quickly on an innovation to enable us to enhance our impact or to cover the costs of any unforeseen loss ol funding or adverse circumstance8. prior to taking remedial action. Switchba¢k has always been gratetul for the support ot a range of experts. advisers 8nd supporters from 8 rènge ot fields. Special thanks to our long-term Patrons- Hugh Fearnley-whittingstall 2nd Primrose Bell for their continued support and advice. Our Reserves Policy. therefore, is to retsin unrestricted reserves of 4 months - 6 months of the following year's budgeted expenditure. Based on our 2024 forecast expenditure of £1.33m. this requires retaining unrestricted reserves of between £439.534 and 2665,960. These figures are regularly reviewed by the Finance & Resources Sub-committee. Trustees Duncan Shrubsole- Chair Olivia Gillan - Deputy Chair Gillian Mcmillan - Treasurer Ben Summerskill - Diversity Lead Burphy Zumu Harriette Tillott Jasmine Ashley-T2goe- Safeguarding Co-lead Nicola Hurley- Safeguardir)g Co-lead The Trustees are confident that there are sufficier)t unrestricted reserves to meet future commitments. At 31 December 2023. Switchback's unrestricted reseNes stood at £640,61912022.. £640.8341.
Financial review EbE Board Adviser Company law requires the Trust&s to prepare tinancial statements tor each frnancial year which give a true and fairview of the state of affairs of the charitsble company and of the income and expenditure of the charitsble company for that peri¢xl. We would Ilke to thank Sergio Gogoa for acting 88 EbE s Board Adviser in 2023. Sergio has now completed his term. 2nd we will be recruiting two new EbE Board Advisers in 2024 to expand the opportunity forTrainees to learn about and contribute to our governance. In preparing those flnancial statements. th8 Trustees are required to: Recruitment. induction and training of new Trustees Select suitable acoounting policies and then apply them consistently.. Observe the methods and principles In the Chaiities SORP- Make judgements and estimates that are reasonable and prudent., State vvhether applicable accounting standards have been followed. subject to any material departures disclosed and explained in the financial statements; Prepare the tinancial statements on the going concern basis unless it is inappropriate to piesume that the charity will continue in business. We completed a recruitment process at the end of 2023 and were delighted to identity four candidates to appoint to oui Bo8rd. Three have been formalty appointed as Trustees. whilst the fourth will act as an adviser. All four wlll be supported through our robust induction process which is designed to ensure that newTrustees nd Advisers fully understand their roles and responsibilities as well as the objeetlves. activities and ethos of the charity. NewTrustees meet with the CEO. the lezdership team and the Chair as well as being provided the relevant background information about the charity- Trustees also visit the Switchback office, training environments 2nd PTISDn to hèlp their understanding of how we deliver the programrne, the environments in which we vvork and the associated risks. The Trustees ale responsible for keeping proper accounting recoids that are sufficient to show and explain the charTtable company's transactions and disclose with reasonable accuracy at any time the tinancial position of the charitsble company and enable them to ensvTe that the ftnancial statements comply wwth the Companies Act 2006. They are also responsible for safeguarding the assets of the charttable company and hence for taking reasonable steps for the prevention and detection of fraud and other iiregularities, Trustees. responsibilities The Trustees (who are also the diiectors of the Switchback Initiative for the puiposes of company law) are responsible for preparing the Annua1 Report and the tinancial statemeTrnts in accordance with applicable law and United Kingdom Accounting Standards (Unf(ed Kingdom Generally Accepted Accounting Practice). The Trustees. Report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. 28
Financial review Tre TrLJStees delegate day to day decision making and operations to the CEO and the leadership team. The Trustee Board has set up a Finance & Resourcès Sub-committee that meets quarterly to review management accounts. fundraising forecast and cashflow analysis. Recommendations are then presented to the full Board which also meets quarterly. The Trustees believe that the charity is a going CDncern and tor this reason. the going concern basis of the preparation for the finanoial statements Is considered valid. Trainee Engagement= Engaging potential Trainees is rèliant on access to prisons and rèferrals trom partners such as the Probation Service. We are working in a range of prisons and have been trialling extended referral times post release from four weeks to six months. We have been successful in receiving a grant from the Ministry of Justice that will help promote referrals from the Probation Service tor the next 3 years. The Trustees are satisfied that the (isks identitied above have been mitigated oi addressed as required and that arrangements are in place to review them on an ongoing basis. Risk management and uncertainties Effectnie rlsk management is critical in working towards the achievement ot our mission. The Board of Trustees maintains overdll accountsbilty for ensuring that effective risk management practices are in place. They review and agree these arrgngements on an annual basis. They are supported in this by the Finance & Resources Sub-committee. which reviews the risk register every quarter. The financial statements comply with the Charities Act 2011. the Companies Act 2006, and the charities Statement of Recommended Practice. The Trustees have taken Charty Commlssion Guidance on public benefit into account. The Tiustees. Report was approved by the Trustees on 28August 2024 and signed on their behalf by The leadership team has responsibility for the risk Tegister ènd review this monthty. A summary of the prlncipal iisks and uncertainties identified by the Trustees is as follows: .bl Duncan Shrubsole, Chair Fundraising.. Due to tsctors such as the cost-of- Ilving crisis the fundraising12ndscape is a tough environment in which to operate. A robust work programme has been developed which identities a wide range of trusts. foundations and grant programmes to which Switchback can apply. In 2024 we will be increasing our st8ff capacity within our Fundraislng Team to support our divetsification of income plans.
l_j FfF' sWrrCVcK( I I Thank you to all our partners. supporters and donors for your continued support. It's thanks to you that Switchback can work with even more young men to build stable. rewarding lives. Switchback, 3rd Floor. Norvin House. 45-55 CommeTcial Street. London E16BD Registered Charity Number 11251001 Company Number 06615923 | Published 28 August 2024 office switchback.org.uk 020 7650 8989 wMv.switchback.org.uk @switchback_ldn wrrcHBACK Thank you to Selena Brown Photography @_SerenaBrown and Venetia Menztes Photography @Venetiamenzies
swrrcHBACK< The Switchback Initiative (Limited by Guarantee) Trustees, Report and Financial Statements For the year ended 31 December 2023 Registered Company number.. 06615923 (England and Wales) Registered Charity number: 1125100 31
THE SWITCHBACK INITIATIVE LEGAL AND ADMINISTRATIVE INFORMATION Trustees M Ashley-Tagoe (Appointed 9 Fèbruary 20241 S Eyers (Retired 28 lune 20231 O Gillan N Hurley IAppointed 9 February 20241 G Mcmillan K Paul-christian IResi8ned 28 lune 20231 D Reid IResigned 10 August 20231 D Shrub501e Summerskill H Tillott (Appointed 9 February 20241 B Zumu Senlor Mana8ementTeam S WilliaTns- Chief Executive A Cross H Topley C Anderson J Robson 5 Boyd IRe5igned 26 April 20231 S Dedola (Resigned 16 February 20241 Charfty Number 11251 Company Number 06615923 Reglstered Office and Prlnciple Address Switchback 3rd Flo¢r Norvin Hoe 45-55 Commercial Street London E16BD Independent Audltor TC Group The Courtyard Shoreham Road Upper Beeding Steyning West Sussex BN44 3TN Maln Banker Co-operative Bank Ltd PO Box 101 l Balloon Street Manchester M60 4EP 32
THE SWITCHBACK INITIATIVE CONTENTS Page Report of the Independent Auditor 34-37 Statement of Financial Acbvlties 38 Balance Sheet 39 Cashflow 5tatewnent 40 Notes to the accounts 41-50 33
THE SWITCHBACK INITIATIVE REPORT OFTHE INDEPENDENT AUDITOR FOR THE YEAR ENDED 31 DECEMBER 2023 We have audited the financial statements of The Switchback Initiative (the 'charitable companrfl for the year ended 31 December 2023. The financial reportlng framework that has been applied In their preparaOn is applicable law and United Kingdom Accounting Standards, including Financial Reporting stsndard 102 The Flnan¢ial Reporbng Standard applicable in the UK and Republic of Ireland (United Kingdom Generally A£pted Accounting practi). In our opinion the financial 5tstements: glve a true and fair view of the state of the charitsble companvs affairs as at 31 DecembÈr 2023 and of its incoming resources and application of resources. including its income and expenditure. for the year then have been properly pPared in accordance with United Kingdom Generally ACpted Accounting Prartice,. nd have been prepared in accordance with the requirements of the Companie5 Act 2W6 and the Charities Act 2011. Ba515 for oplnlon We conducted our audit in accordance with International Standard5 on Auditlng IUKI IISAS IUKII and applicable law. Our responsibiltties under those standards are further described In the Audltorf5 responsibilitie5 for the audit of the financial statements section of our report. We are independent of the charltable company in accordance with the ethlcal requirements that are relevant to our audit of the financial ststements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethlcal responsibilitie5 in actordartce with these requirements. We belleve that the audlt evidènce we have obtained is sufficient and appropriate to provide a lJa5i5 for our opinion. CondusSons relatingto going concern In aud1tingthe financial statements, we have concluded that the trustees use of the going conr basis of accounJng in the preparatlon of the flnancial statements is appropriate. Based on the work we have performed. we have not identlfied any material uncèrtaints'e5 relatingto events or Conditions that. individually or collectively, may cast Sign[tant doubt on the charitable companV5 ability to continue as a going concern for a period of at least twelve months from when the financial statemènt5 are authorised for issue. Our responsibilitie5 and the responsibilities of the trustees with respect to going concern are described in the relevant Sections of this report. Other Informatlon The trustees are responsible for the other information. The othèr informatlon comprises the information included in the trustees, annual rèport. other than the financial ststements and our auditorf5 report thereon. Our opinion on the financial statements does not cover the other information and, except tts the extent otherwlse explicitly stated in our report, we do not express anyform of assurance conclusion thereon. 34
THE SWITCHBACK INITIATIVE REPORT OF THE INDEPENDENT AUDITOR FOR THE YEAR ENDED 31 DECEMBER 2023 In connection with our audit of the financlal ststements, our re5ponslbility isto read the other Information and. in doing so, consSder whether the other Information is materially inconsistent with the financial statÉments or our knowledge obtained in the audit or otherwise appears to be materially misststed. If we identify such mater131 incons15tencies or apparent material misststement5, we are requirèd to determine whether there is material misstatèment in the financial statements or a material misstatement of the other information. If, b35ed on the work we have performed, we conclude that there is a material misstatement of this other Information, we are required to reporrthat fact. We have nothSng to report in this regard. Oplnions on other matter5 pres¢rlbed by the Companies Art 2006 In our opinion, based on the work undertaken in the course of thè audit.. the information given in the trustees, report for the financial year for which the flnancial ststements are prepared is consistent with the financial statements- and thè trustees, report has been prepared in atcordan¢e with applicable legal requirements. Matters on which wè are requirèd to report by exteption In the light of our knowledge and understandlng of the charitable company and its environment obtsined in the course of the audit, we have not identified materlal rnisstatements in the trustees, report. We have nothing to report in respect of the following matter5 in relation to whlch the Companles Act 2(KJ6 and Charitle5 Act 2011 requires us to Teportto you if, in our opinion.. adequate accounting records have not been kept. or returns adequate for our audit have not been received from branches not visited by us- or the financial statements are not in agrèement with the accountln8 records and returns,. or certain disc105ures of tru5tees' remuneratlon specified by law are not made,. or we have not recelved all the information and explanations we require for our audit. Responsibllities of trustees As explained more fully in the trustees. responsibilities ststement, the trustèes are responsible for the preparation of the financial statements and for bèln8 satlsfied that thèy give a true and fair view, and for such internal control as the trustee5 determine is necessary to enable the prepatstion of financial Statements that are free from material misstatement, whether due to fraud or error. In preparlng the financial Statements. the trustees are responsible for assessing the charitable incorporated organisation's abilityto continue as a going concern, disclosin& as applicable, matter5 related tc> going concern and using the going concern bas55 of accounting unless the trustees either intend to liquidate the charitable rncorporated organisation or to cease operations, or have no realistlc 8ltematSve but to do so. 35
THE SWITCHBACK INITIATIVE REPORT OF THE INDEPENDENT AUDITOR FOR THE YEAR ENDED 31 DECEMBER 2023 Audltoff5 r¢sponslbilltle$ forthe audlt of the finan¢ial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are freè from material mi5Statement. whether due to fraud or error. and to issue an auditorfs report that includes our opinion. Reasonable a55urance is a high level of assurance. but is not a guarantee that an audit condurted In accordance with ISAS IUKI will alway5 detert a material misstatemènt when ht exist5. Misstatements can arise from fraud or error and are consldered material if. individually or in the aggregate. they could rea59nably be expècted to influence the economic decisions of users taken on the basis of these financial statements. Afurther description of our responsibilities forthe audit of the financial statements 15 located on the Financial Reporting Council's website at- http5=Ilwvw.frc.orE.uklOur-WorVAudit/Audit-and-a55urancelStandards-and- guidancelstandards-and-8uidance-for-auditor5lAuditors-responsibilities-for-3udit/Oes¢ription-of-auditors- respon5ibilities-for-audit.a5px. This description forms part of our auditorfs report. Irregularities, Including fraud, are instances of non-compliance wlth law5 and regulations. Thè extent to which our procedures are tapable of detecting Irregularities, includlngfraud, is detailed below. Extent to whith the audit was cansldered capable of dptertlng irre8ularitles, Indudlng fraud The objettlve5 of our audit, In respect to fraud. are-. to Identlfy and assess the ri5k5 of matsrial misstatement of the financial statements due tofraud., to obtain sufficlent approprlate audlt evidence regardin8 the assessed risk5 of material misstatement due to fraud, through designing and implementing approprlate response5- and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detectlon of fraud rests with both those charged with 8overnance of the entity and it5 managemenL Our approach was as follows.. We Identified areas of laws and gUlationS that could reasonably be expected to have a material effect on the flnanci31 statements from OUT general Sector experience, and throu8h discussion with the trustees and other management las required by auditin8 standaTd51, and discussed wlth the trustees and other management the policies and procedures regardin8 compliance with laws and regulations (see belowl- We Identified the fullowlng arèas as those most likely to have such an effect: health and Safety,. GeTheral Data Protection Regulation IGDPRI,. fraud,. brlbery and corruption, and employment law. Auditlng 5tandard5 limit the Tèquired audit procedures to identlfy non-compliante with these laws and regulation5 to enquiry of thè trustees and othèr managernent and inspection of regulatory and lègal corresponden, if any. The Identified attual orsuspected non-compliance was not sufficlently significant to ouraudit to result In our response being identified as a key audit matter. We considered the legal and regulatory framewor directly applicable to the financial statements reportinE framework IFRS 102, the Companies Aci 2Q06 and the Charities Act 20111 and the relevant tax compliance regulations in the UK. Wé considered the nature of the charitvs operations, the control environment and financial performance. We communTcated idèntified laws and regulatyonsthroughout uurteam and remained alertto any indication5 of non-compliance throughout the audit: We considered the Procedures and controls thatthe charity has establlshed to address risks identified. or that otherwise prevent, (Jeter and detect fraud,. and how senior management monitors those programmes and control5. 36
THE SWITCHBACK INITIATIVE REPORT OF THE INDEPENDENT AUDITOR FOR THE YEAR ENDED 31 DECEMBER 2023 Based on this understanding we designed cur audit procedures to identify non-compliance with such laws and regulations. Where the risk was corb5idered to be hlgher, we performed audit procedure5 to address each identified fraud risk. These protedures included-. testing manual journals- reviewing the financial statement disclosures and testin8 to supporting documentation,. perforrning analytical procedures,. and enquiring of management, and were designed to provide reasonable assurance thotthe financial statements werèfree from fraud or error. Owingto the inherent limitation5 of an audlt, there is an unavoidable riskthat we may not have detected some material misstatements in the financial statements. evèn though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulation5 lirregularitie51 is from the events and transactions reflected in the financial statements, the less likèly the inherently limited procedures iequired by auditing standards would identify il. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional Conalment, forgery, collusion. Dmission or misrepresentation. We are not responsible for preventing non-compliance and annot be expecteil io detect non-compliancè with 311 laws and regulations. Use of our rèport This report 15 made 501ely to thè charitable company's members, as a body, in accordan with Chapter 3 of Part 16 of the Cornpanies Act 2006. Our audit work has been undertaken 50 that we might stale to the charitable Company's merrbers those matters we are required to state to them In an auditor5, report and for the no other purpc*se. To the fullest extent permltted by law. we do not accept or assume responsibility to anyone other than the charitable company and the charitsble company's membèr5, as a body, for our audit work, or for the opinlons we have formed Mark Cummins FCCA1Senior Statutory For and on behalf of TC Group Statuttsry Auditor5 Office.. Steynin& West Sussex ditorl Dated.. 37
THE SWITCHBACK INITIATIVE STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023 Unrestricted fund5 Re5tritted funds Total 2022 Total 2023 Income fram: Notes Donations 594,678 7,704 1.290 616,116 1,210.794 7,704 1,290 1.144,275 6,810 250 Investments Other trading Total Income 603,672 616.116 1,219,788 1,151.335 endlturè on: Raising funds Charitable artivities 178,467 425,42D 178,467 1.038.523 158,019 993.323 613,103 Total expenditure 603,887 613,103 1,216,990 1,151.342 Net Incomellexpenditurel 12151 3,013 2.798 171 Fund balances at I January 2023 640,834 343,418 984,252 984,259 Fund balan$ at 31 Dè£ember2023 15 640.619 346,431 987,050 984,252 All activities are classed as eontlnuSng. There are no rectsgnised galns or10ssès other than those reported on the Statement of Financial Activities. The results for the year all relate to continuing activitie5. The on pages 41 to 50 form part of the financlal statements. 38
THE SWITCHBACK INITIATIVE BALANCE SHEEr ASAT31 DECEMBER 2023 2023 2022 Notes Flxed assets Tangible assets li 9,513 8.861 9,513 8,861 Current A55ets Debtors Cash at bank and in hand 12 157,931 902,971 55.857 978.196 1,0fj0,902 1,034,053 Creditors: amgurts fallin8 due wlthin one year 13 183,3651 158,6621 Net current assets 977,537 975,391 Net asset5 987.050 984,252 Funds Unrestritted funds Restricled funds 15 640.619 346,431 640,834 343,418 14 TOTAL FUNDS 987.050 984,252 The financial statements have been prepared In accordance with thè special provisions of Part 15 of the Companies Act 2006 relatin8 to small companies. 0810512024 The accounis were approvèd by the Board of Trustee5 on .................................. Gllllan Mcmillan Treasur Company Registratlort No. 06615923 39
THE SWITCHBACK INITIATIVE CASHFLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Notes Net tash provlded byllusÈd Inl operating actlvtties iio,ioi) 17 {76,54S) Cash flow5 from investlng artivltles: Purchase of tangible fixed assets Interest on investments Net cash used In investlng activitl•s li (6,384) 7,704 17,5641 6,810 1.320 17541 Increaselldetteasej in ¢a5h and ¢ash equivalents In the year Cash and cash equlvalents at the beglnnin¥ of the yèaf Cash and tash equivalents at the end of the year 110.8551 (75,225) 978,196 989,051 978.196 902,971 Analysls of net tash Atljan 2023 Cash flow At 31 Dec 2023 Cash at bank and In hand 978,196 175,225) 902,971
THE SWITCHBACK INITIATIVE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 AccOU1NG POLICIES The principal accounting policies adopted, judgèment5 and key sources of estimation uncertainty in the prèparation of financial 5tstements are as follows.. 1.1 Basls of accountin8 The financial statements have been prepared in accordance with Accounting and Reporting by Charltie5.' Statement of Recommended Prattice applicable to charities preparing their accounts in actordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021 (effective l January 20151 Charities SORP IFRS 1021, and the Companies Att 2006. The charity meets ihe definition of a public benefit entlty under FRS 102. The financial statements are prepared in stèrling, which Isthe functional currency of the charitable company. Monetary amounts in these financial statements are rounded to thè nearest pound. 1.2 Preparation of the accounts on a going cOnM basis After making appropriate enquirlès, thetrustees have a reasonable expectation thatthe charity has adequate resources to continue in operational eStence for the foreseeable futLJre. 1.3 Income All income is recognised once the charity has entitlement to the Income, it 15 probable that the income will be received and the amount of incoffle can be measured reliably. Grants and donations are recognised when the charity has entitlement to the funds, any performance onditions have been met. it is probable that the income will be rÈTrived and the amount can be measured reliably. In the event that such income is subjcctto conditions that rèquire a level of performance before the charity is entitled to the funds, the income is deferred and not recognised untrl those conditions are fully met, or the fulfilment of those condttions is wholly within the control of the charity and it is probable that those Conditions will be fuwillecl in the reporting period. Glfts in kind arè included at fairvalue within donatlons. Trading Income Is recognlsed upon delivery of the service provided. Investment in¢ome is credited to income when it Is receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. 1.4 Expenditure Expenditure Is recognised on an arcruals basis inclusive of any VATwhich cannot be recovered. Suppttrtcosts which are not directly attributable to a specific charitable activity are allocated on a percentage basis b35ed on staff time applied to each activity during the year. Governance c¢)Sts inclLrde those incurred in the governance of the charSty and its assets and are primarily associated with constitutional and statuttsry requirements. Thèse are included withln support costs. 41
THE SWITCHBACK INITIATIVE NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 ACCoU1NG POLICIES l¢ontlnued) 1.5 Tangible flxed assets Tangible fixed assets are stated at cost less depreclation. Depreciation is provlded as the followng annual rates in orderto wrlte off each a55et over its estimated useful Ilfe. Computer Equipment Furniture & Fittirhgs 33% on cost 25% on cost Only aets over £500 a capitalised. 1.6 Lease commltments Operating leases and the payments made under them are charged to the Statement of Financial Actlvities on a straight line bas15 over the lease term. 1.7 Taxation The charftable company Is registered as a charity and all of Its Income falls within thè exemption5 ufider Part 11 of the Corporati¢Jn Tax Act 2010. 1.8 Fund a¢¢ountlnK Unrestricted fund5 can bÈ used in accordance with the charitsble oblectives at the discretion of the trustee5. Re5trlcted funds can be used for particulaT restricted purpose5 wlthin the objects of the charity. Restrittions arise when specified by the donor or when funds are raised for particular restricted purposes. Designated funds are unrestrlcted funds of the charity which the trustee5 have decided at their discretion to set aside to Use for a specific purpose. Furtherexplanatlon of thÈ nature and purpose of each fund Is Included in the notesto the financial statements. 1.9 Penslon costs and vther post.retirement benefits The charitsble company operates a dèfined contributlon penslon scheme. Contributions payable to the chatablE Company's pension scheme are charged to the Statement of Financlal Activitles in the period to whlch they relate. 1.10 Debt(Jrs Trade and other debtors are recognised at the settlement amount due. 1.11 Cash at bank and In hand Cash at bank and in hand includes bank accounts, cash and short term highly Ilquid investments wlth a short maturity of three month5 or less from the date of acquisition or opening of the deposits or similar account. 1.12 Creditors and provislons Creditors and provisions are recognised where the charity ha5 a present obligatlon resulting from a past event that will probably result in the transfer of fundsto a thlrd party and the amount due to settle the obligation can be measured or estlmated reliably. 42
THE SWITCHBACK INITIATIVE NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 ACCOUNTING POLICIES Icontinuedl 1.13 Critical aecountlng estlmates andjudgements In the application of the charlS accounting policies, the tnjstees are reqUId to makejudgements, estimates and assumptions 3bout the carrying 3mount Df assets and liabilities that a not readily apparent from other sources. The estimates and associated assumptions are based on historical experience an(J other fartors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on on ongoing bèsls. Revisions toaccountingestimats5 are recognised in the period in which the estimatels reVed. The trustees do not considerthat there are anycrltical estimates or areas of judgementthat need to be brought to the attention of the readers of the financial Statements. DONATION5 INCOME Unrestrltted Réstricted 2023 2022 Donations & grants Gift aid recovery 570,137 24,541 616.116 1.186.2S3 24,541 1,210.794 1,116.332 27.943 594,678 616,116 1,144,275 INVESTMEwf INCOME Unrestritted Restritted 2023 2022 Deposit account interest 7,704 7.704 6.810 7,704 7,704 6,810 OTHER TRADING INCOME Unrestricted Restrided 2023 2022 Trading income 1.2 1.290 250 1,290 1,290 250 43
THE SWITCHBACK INITIATIVE NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 S. EXPENDITURE Depreclation Other CQSts Staff costs Total 2023 Total 2022 Ralslngfund5 173,609 4,858 178N67 158,019 Charitable attlvltles Activities undertaken directly Support costs (note 61 Total 4,340 577,057 229,864 811.261 772.432 1,018 180,129 46,115 275,979 227,262 220,891 993,323 5,358 757,186 1.038.523 Total 5358 930,795 280,837 l.Z16,990 1,151,342 SUPPORT cosrs 2023 2022 Staff costs Rent and utilltles offi costs 180.129 13,066 3,180 4,282 2526 2,044 397 1,018 1.594 163,515 11,033 4,505 3,877 10,118 2,341 2,926 991 8.097 Sundry costs Bank charges Recruitment Depreciation Events other support costs Governance costs (note 71 li 1,687 17,339 1,310 12,178 227,262 220,891 7. GOVERNANCE COSTS 2023 2022 Auditors, remuneT3tion- auditfees Auditi)rs' remuneratlon-othersethS Trustees, eXnSeS 12.000 5.112 227 10,200 1,813 165 17.339 12,178
THE SWITCHBACK INITIATIVE NOTES TO THE ACCOUNTS {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 8. STATEMENT OF FINANCIALACTIvlEs COMPARATIVE FUNDS-YEAR ENDED 31 DECEMBER 2022 Unrestricted funds Restricted funds Total 2022 Intthne from: Note5 Donations Investments Other trading Total income 1,048.722 6,810 250 95,553 1.144,275 6,810 250 1,055,782 95,553 1.151,335 dlture on: Raising fund5 Charitable activities Total expenditure 157.342 917.883 677 75,440 158.019 993.323 1,075,225 76.117 1,151,342 Net Income 119,4431 19,436 {7) Fund balances at l January 2022 660,277 323,982 d4.259 Fund balances at 31 December2022 16 640,834 343.418 984.252 9. TRUSTEES. REMUNERATION AND BENEFITS There was no trustee remunèratlon or other benefits forthe year ended 31 December 2023 nor for the year ended 31 Dember 2022. Trustee expenditure totaling £22712022.. £1651 was reSmbursed during the year. 10. srAFF COSTS 2023 2022 Wage5 and salaries Social security costs Other ponsion Costs 815,252 74.S15 41,028 930,795 764,517 74.324 31,795 870,636 45
THE SWITCHBACK INITIATIVE NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 10. AFF COSTS Icontlnued) The average number of employeés during the year was a5 follows.. 2023 Number 2022 Number Programme Delivery Policy and Influencing Other io 12 Z4 23 The number of employee5 whose emoluments fell within the following band5 was.. 2023 Number 2022 Numbèr £70.001- £80,OCMJ £80,001- £90,000 Of the employees whose emoluments exceed £60,OQK). 112022= 11 have retirement benefits accruing under defined contribution pension schemes. Pension contrlbutions for higher paid employee5 in the year amounted to £4,10212022- £3,135]. Duringthe year the key management personnel of the charltable company comprised of the Chlef Executive, Director of Finance and Operations and the three Heads of Department. The total employee benefits of the key management personnel (including Employerfs National Insurance Contributions) were £359,77812022: £350,689).
THE SWITCHBACK INITIATIVE NOTES TO THE ACCOUNTS {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 11. TANGIBLE FIXED ASSETS Furnlture & Ftttings Computer Equlpment Total Cost At l January 2023 Addition5 Disposals At 31 December 2023 697 23.930 651 5,733 15,8691 23,794 6,384 (S,869) 25,142 Depre¢latlon At l January 2023 Charge for the year Ellminated on dlsposal At 31 December 2023 697 15.069 15.766 5,358 15,4951 IS,629 72 5,286 15,4951 14,860 769 Net book value At 31 Dember 2023 579 8,934 9,513 At 31 December 2022 8.861 8,861 IZ. DEBTORS- amounts falllng due wlthln one year 2023 2022 Trade debtors Other debtors Prepayments and accrued Income 2,440 2,053 51,364 55,857 4.460 153,471 157.931 13. CREDrroRS. amounts falllng due wlthin on? year 2023 2022 Track creditors al security and other taxè5 Accruals and deferred Income Other creditors 642 20,618 55,833 6,272 20,634 19.851 12,565 5,612 83,365 58,662 47
THE SWITCHBACK INITIATIVE NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 RESTRicfED FUNDS The income fund5 of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes- Balan at l January 2023 In¢om• Expendlture Balan at 31 Dmber 2023 Austin and Hope Pilkington Trust Barrow CadburyTrust City Brldge Foundation Clinks Ccmic Relf Donation to Reserves Dusty Knuckle Event Esmée Fairbairn Foundation Garfield Weston Foundatlon The Henry Smith Charity The Hobson Charity Anonymous HMPPS The National Lottery Communlty Fund Shèriffs, and Recorder's Fund The Considered Ask The Wilmington Trust Triangle Trust 15,0001 130,243 {19,0371 15.5001 1131.9021 3,732 33,600 19,037 5.5 131,902 7.089 299,999 299.999 350 99,194 25,(X)O 60,000 13501 190,2351 125,0001 150,0001 15,woI (lo,() 126.354 1164,2831 12501 23,556 113,0741 781 17811 15,350 30.ClX) 136,0941 343,418 616,116 1613,1031 Austln ondHope Pllkington Trust- Fundlng towards the costs of supporting Trainees. Barrow Codbury Trust- Funding towards Re5haping ResettlemeDtfor young adult prison leavers. Clty 8rldge Ffjundotiotr FundinÉ towards the costs of Mentors and c05t of supportlngTrainees. Clinks- Funding for a Mentsl Health research project. ComicRvlief- Supporting young men to live 5tsble, rewardinglsves after thelr release from prison. Llonotlon to Reserve5- Restricted for use to underpin a portion of reserves. Dusty Knu¢kle Event- Funding to support attendance at partner event. Esmée Fairbt71rn Foundotlon- Funding towards reshaping resettlement foryoung prlsoner5. Guffjeld Weston Foundotion- Funding towards the costs of Mèntors 5UPPOrtinE Trainees. The Henrysmlth Ch¢7rlty- Fundlng for Mentoring to change lives and reduce reoffending. The Hobson Chtsrlty- FundlnE towartts the essential costs of 5UPPOrting Tralnees. Anonymous- Fundingfor the delivery of Film Industry training for Trainees. HMPPS- LoThdon Probation RÈgion Grants for People from Ethnic Minority Groups. The Nationul Lottery Communlty Fund- RÈaching Communities England and The Communlty Organisations Cost of Living Fund- Fundingfor Mentoring to change lives and reduce reoffendin8. sheriff und RecordePs Fund- Funding towards Trainee essential items. The Con51deredAsk- Fundirhg for the development of peer mentors and Intern scheme. rhe Wllmington Tru5t- Funding towards the development of our communications. Triongle Trust- Funding to expand Switchbacvs training and employment partnerships. 48 8.959 10,000 10.000 27,000 164.283 250 646 iOA82 9,256 346N31
THE SWITCHBACK INITIATIVE NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 15. ANALYSIS OF NEf ASS5 BETWEEN FUNDS Unrestricted funds Restrftted funds 2023 Total Fund balance5 at 31 December 2023 are represented by.. Fixed assets Current assets Creditors.- amounts falling due within one vear 9,513 714A71 9,513 1,060,902 346.431 {83.3651 183,3651 640.619 346,431 987,050 Unrestricted funds Restrirted funds 2022 Totsl Fund balances at 31 Dember 2022 are represented by.. Fixed assets Current assets Creditors= amounts falling due within one year 8.861 690,635 8,861 1,034,053 343.418 158.6621 158,6621 640,834 343,418 984,252 16. COmMITmErS UNDER OPERATING LEASES At 31 December 2023 the company had total commitments payable under norFcance113ble operating leases as follows: Land and bulldings Z023 2022 Within one year Between two and five years 40,052 79,988 49,993 40,052 129.981 Totsl lease payments recogni5ed as an expense in the year amounted to £64.08312022- £43,954). 49
THE SWITCHBACK INITIATIVE NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 17. NET CASHFLOW FROM OPERATING ACTMTIES 2023 2022 Net incomellexpènditurel Depreciation of tangible fixed assets L05s on dlsp05al of tangible fixed assets DNldends and Interèst from investments Iln¢reasel/de¢rease in debtors Increaselldecreasel in creditors 171 5,358 374 5,217 1,851 16,8101 115,7541 5,402 17,704) {102,074) 24.703 Net¢ath prov1d used in opÈratlng artivtiies [76.5451 iio,ioii 18. REiATED PARThTRANSAcrroNS DurSngthe year to 310ecember 2023 donations were received by the charlty from various Trustees totaling £2.550 12022.. £13.2331. The only further related party transattions relate to Trustees, expenditure reimbursement of £22712022- £1651 as disclosed in r¢ote 9. 19. CONTROL The Switthback Initiative is a company limited by guarantee and has no share tapital. No one member has overall control of the charity- ZO. COMPANY INFORMATION The Switchback InitSatlve 15 a charitable company, limited by guarantee, registered in England and Wales. The charitable company's regigtered number and reglstered office address can be found on the legal and administrative information page.