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2020-09-30-accounts

Trustees report and financial statements for the year ended 30 September 2020

Contents

Reference and administrative information // 3 Chairs statement // 4 Our funders and su orters // 7 pp Achievements and activities // 8 Charity structure, governance and mana ement // 13 g Inde endent examiner’s re ort // 17 p p Financial statements // 18

Reference and administrative information

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The Trustees (who are directors of the charity for the purposes of the Companies Act) present their annual report together with the independently examined financial statements of MAC-UK (the charitable company) for the year ended 30 September 2020.

The Trustees confirm that the Trustees’ Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company’s governing document and the provisions of the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (The FRS 102 Charities SORP).

Trustees

Independent Auditors

MHA McIntyre Hudson 6th Floor 2 London Wall Place London EC2Y 5AU

Bank

HSBC Bank Plc 122 Finchley Road London NW3 5JD

Company number 06693712

Co-Leadership Team

Registered charity number

1126144

Registered office address

20 East Road, London, N1 6AD

Chairs statement

We started the year excited to develop our new strategy, continue strong partnership working and keep focused on the voices of young people and communities we work with.

While we were able to do this, the wider context had an unprecedented impact on the way we worked and how we have had to adapt to achieve the mission and vision in the ‘new normal’.

It has been a challenging year both internally for the organisation and externally for the young people who we aim to support. We are immensely proud of the way the staff team, communities and partners responded to the impact of the pandemic despite the challenges it brought.

MAC-UK in many ways was well placed, as an organisation which is designed to work flexibly and respond to changing contexts. In doing so we have continued to innovate and address the impact of health, social and economic inequalities.

Responding to the wider context of 2019-2020

Working through the pandemic

In early 2020 MAC-UK wrote a response to Covid-19 outlining how the organisation would adapt. This has guided how we have worked over the last year with the priority being on maintaining our work and the well-being of the team. Members were furloughed where appropriate or possible, staff were supported to work from home, and regular spaces were held for team well-being. As always, prioritising staff wellbeing has enabled the team to function despite the unexpected and challenging context. Staff continue to report that working at MAC-UK is a positive part of their week, that they maintain commitment

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to the work and that much of the work has been able to continue, albeit with some significant limitations. MAC-UK has been involved in Covid-19-related work as well as pre-existing projects. For example the Public Health and Prevention team contributed to a partnership report amplifying the voices of young people and their experiences of the pandemic (see Public Health and Prevention section below) in order to guide understanding and policy responses.

The purposes of the Charity as per its Memorandum and Articles are to advance in life and help young people through:

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Chairs statement

Working to identify and challenge Inequalities

Racial and ethnic inequalities received increased global attention in the context of lives lost to Covid-19. This was further highlighted by the murder of George Floyd amongst other less high profile but equally important racially-driven losses.

As a result there has been increasing worldwide momentum to challenge this, in the form of the Black Lives Matters movement and other initiatives that oppose racial and social inequality. The relationship between racial, economic and social inequalities also became more widely apparent.

We have seen the direct impact of inequality on the disproportionate rates of lives lost due to Covid-19 according to socioeconomic status, the increase in numbers of people living with food poverty and the disproportionate effect of lockdowns on education and mental health across England and internationally.

Those with less financial resources have had less power to protect themselves and provide

for their families. The impact on young people living with lack of resources and facing the impact of racism has been widespread e.g. young people who have been more likely to be stopped and searched, young people who have not had safe, creative spaces to go to during lockdown and as a result are drawn into the criminal justice system.

Within MAC-UK we acknowledge that as an organisation in England we can be part of unknowingly contributing to such inequality whilst also attempting to challenge it. We have responded by having an anti-racism working group that is ongoing and is implementing different ways of challenging racism and therefore inequality.

Despite these challenges, MAC-UK has been able to develop a new three-year strategy (which can be found on our website). This strategy places emphasis on a public health and preventative approach to inequality, violence and associated mental health needs. The focus is therefore on enabling organisations to involve young people at all stages including commissioning and service design and in turn on increasing excluded young people’s access to appropriate services in their communities. The importance of relationships continues to be at the core of all practice. Both internally and in our work with others MAC-UK hopes to advance equalities and inclusion.

At a time of national funding crises for the third sector, we have been able to benefit from having relationships based on shared values and practice with our existing funders and have also secured some additional funding. Our strong working relationships with partners has also continued to create meaningful systemic change despite the challenges that the Covid-19 pandemic has brought.

Chairs statement

Moving Forward

There has emerged a clear need for MAC-UK to advocate now more than ever for spaces for social interactions where young people can feel safe, and for real opportunities for young people to change their circumstances.

Within the context of the past year, there is a greater awareness of the injustices that exist in society, and of the impact of these on mental health. Public understanding of mental health as a social issue is increasing. Government and health initiatives such as the Long Term Plan (2019) are strongly reinforcing the need for mental health services to be flexible, responsive and co-produced alongside young people and communities.

Steph Taylor Chair, MAC-UK

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As a result disseminating the INTEGRATE approach could not be more timely. MAC-UK will hope to continue to work at multiple levels in partnership with young people, communities and organisations to effect change.

We will continue to think about the best ways of adapting our practices of working to be accessible to communities, young people and partners. This includes finding a safe way to hang out, being mindful of the potential vulnerability of the communities we work with and ensuring we are thoughtful and responsible within our Covid-19 management and engagement with young people, our partners and communities that we aim to work alongside.

Julian Thompson Vice Chair, MAC-UK

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Our funders and su orters pp

With sincere thanks to all of our funders, partners and supporters who make our work possible:

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Achievements and activities

The main activities undertaken in relation to the purposes of the Charity and for the furtherance of Public Benefit have been discussed below.

Sharing throughout the Pandemic

We have continued to support young people to teach at various prestigious universities, informing and influencing the next generation of Clinical Psychologists in our INTEGRATED approach working with young people.

We have presented at a number of conferences including:

Influencing: Public Health and Prevention

The Public Health and Prevention Team has participated in various policy forums, influencing people in decision making positions through holding round tables, conducting research and curating projects with a view to widening policy maker’s understanding of the social determinants that affect youth violence and mental health.

A Public Health and Prevention Intern has also been employed to the team. Their role has involved co-producing work that supports the wider policy influencing strategy.

In my role as public health and prevention intern I’ve enjoyed having a voice to address social issues, which I think young men from ethnic minority groups are hardly given a voice to speak on.

In my role I have been invited to conferences and had the opportunity to speak on social issues which affect young people like myself.

I have learnt a range of skills including developing and hosting projects, and working with a diverse group of practitioners.

The role has supported me in my professional development and I have learned new ways to be creative in tackling social issues.”

Shaheem Carty

Public Health and Prevention Intern

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Achievements and activities

Achievements in the context of Covid-19

For more information, visit: https://www.redthread.org.uk/ living-through-a-lockdown

Partnerships have Included:

Learning:

•[Importance of ] acknowledging the benefits and pitfalls of using a public health approach to youth violence. Although effective and important it has not always been fully implemented across the sector. This approach can overlook issues of structures of inequality and how to tackle these in a way that will both support the continued improvement of our collective mental health, but also contribute to a reduction in violence.

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Achievements and activities

Dissemination: Trusted Spaces Barnet

Achievements in the context of Covid-19

Despite the arrival of Covid-19, Barnet Trusted Relationships project has continued to deliver on all of their project activities. Adjusting quickly to online working, they have been able to maintain strong working relationships and continue to fulfil objectives to embed psychologically informed environments and our INTEGRATE approach and to contribute to systems change. Partnerships include:

Evaluation

A report carried out between February and May 2020 by the Behavioural Insights Team celebrated many aspects of the trusted relationships project. MAC-UK was recognised as supporting AAK to embed psychologically informed environments within creative spaces. AAK staff reported feeling more supported when working with young people who navigate complex lives and learning new knowledge and skills. MAC-UK were noted to have introduced new strategies and ways of thinking about how best to support young people: MAC-UK were also recognised as supporting

[In clinical supervision] I’ll get techniques, for example, that encourage me to think about things in different ways... she would encourage me to use tools that we learnt from AMBIT such as localising and talking together.”

Frontline staff

the local authority to embed INTEGRATE principles into their way of working and re-designing the provision of services for young people.

Co-production

The Barnet TR team have continued to co-produce an early help exploitation risk assessment tool in consultation with practitioners from the local authority and held two consultation sessions with young people who access creative spaces. The team continues to consult on co-production in the local authority, encouraging the embedding of INTEGRATE principles and meaningful involvement of young people into existing systems.

Events have included:

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Achievements and activities

Direct services with young people: Youth Employment

Adapting to Contextual Changes

The pandemic impacted on the Youth Employment Team’s ability to utilise their key strengths of meeting young people where they are at. The move to more remote working, reliance on technology and lack of spaces for young people more widely to be supported led to a strong focus on maintaining the wellbeing of staff. During this period the team has been focusing on supporting the internal recruitment of young people and working with partners to support youth employment and development opportunities with their young people.

Areas of work have included:

and employment due to intersecting social, economical or cultural factors. The team have been working on utilising their expertise in co-production to consult with young people about the challenges they experience in their professional development. This will feed into the scoping and design of the program.

Dissemination:

Trusted Spaces Ealing

The Project’s overarching aim has been to increase young people’s access to support and build young people’s resilience to reduce their risk of exploitation, violence and exclusion. MAC-UK has supported the intensive work with 94 young people in-directly through group supervision, consultations, joint outreach and schools work and 12 young people directly through outreach.

A psychologically informed environment

MAC-UK have supported staff in the partnership to:

Developing opportunities to address structural inequalities for young people

Post pandemic the number of young people in employment has fallen and unemployment has increased (Powell, 2021). A lack of wider opportunities for young people in conjunction with the media coverage of black people being murdered and assaulted has highlighted more than ever the need to tackle structural inequalities, particularly for those from ‘excluded/minority’ groups. The team have been reflecting on how they can respond to some of these issues through a mentoring programme. The aim is to develop a mentoring programme that supports young people who come from diverse backgrounds who might experience barriers in education

Co-production

Achievements and Activities

needs e.g. localised youth centre and biking competition and building and bridging relationships with local youth services and the community.

Key strengths and successes

Charity structure, governance and mana ement // 13 g

The Trustees’ Annual Report contains a Directors’ Report as required by company law. The report and accounts comply with the requirements of the Companies Act 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with FRS102.

Governance, internal control and trustee recruitment

MAC-UK is governed by a Board of Trustees who are responsible for the organisation’s strategic direction, providing challenge and support to the Co Leadership Team as well as ensuring compliance with charity, employment and other relevant statutory requirements. A skills audit is undertaken annually by the board which informs board recruitment and training. At August 2021, the board consists of 11 trustees with a wide range of relevant skills and experience. Page 3 of this report sets out the complete list of trustees who served during the year and up to the date of signature of the financial statements. The governing document does not set a maximum of trustees. The minimum number of trustees is 3. The quorum for trustee meetings is 2 Trustees or 1/3 of the trustees, whichever is the greater. The Board of Trustees delegate responsibility for day to day management to key management personnel, namely the MAC-UK Co Leadership Team. The trustees make clear the authorities which are delegated to the key management personnel through a documented schedule of responsibilities.

Company status

MAC-UK is a charitable company limited by guarantee. It was incorporated on 10 September 2008 and is governed by its Memorandum and Articles of Association dated 10 September 2008 as amended by special resolutions dated 17 May 2017 and 18 July 2019.

The charitable company has no share capital, and in the event of a winding up, each member and those that have ceased being a member within the preceding twelve months, has undertaken to contribute £10.

Induction and training

ln line with Charity Commission guidance, Trustees are made aware of their roles and responsibilities and carry out inductions into the many different activities and services provided by MAC-UK. Prior to formal appointment, potential trustees attend a strategy and governance session, meet members of the team and observe a board meeting. Once appointed, the trustees have access to a drive of Trustee Resources, including relevant organisational documents, policies and procedures.

Charity structure, governance and mana ement // 14 g

Additionally, trustees attend an annual board away day and whole organisation away days.

Risks

Trustees have conducted a review of the major risks to which the charity is exposed. MAC-UK maintains an organisational risk register which is appraised dynamically and reviewed at least every 6 months, though more frequently if required. Where appropriate, systems and procedures are in place to mitigate the risks the charity faces. Policies and internal controls have been reviewed during the reporting period. Procedures continue to be in place to ensure compliance with safeguarding, data protection, health and safety of staff, volunteers, young people and visitors to the MAC-UK’s projects and these are regularly reviewed.

Public Benefit

In setting objectives and planning for current and future activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance ‘Public benefit: running a charity (PB2)’.

Financial Review

During the year, total income was £405,464 (2019: £653,608), of which £381,443 related to unrestricted income. Total expenditure was £596,349 (2019: £718,433) resulting in a deficit for the year of £190,885 (2019: deficit of £64,825). Income decreased because of delays in securing funds due to Covid-19.

The trustees kept the financial situation under review during the year. Fundraising results were seriously affected in Spring 2020 by the pandemic and national lockdown. Expenditure

was adjusted accordingly, and income and expenditure realigned by use of the UK Government Jobs Retention Scheme. The trustees agreed a deficit budget for the current financial year (2020-2021), but the budget has since been adjusted so that forecast expenditure better matches the expected income in a Covid-19 funding environment.

93.5% of the charity’s expenditure in the year was spent on the delivery of the charitable objectives, 4.7% was spent on fundraising activities and 1.8% was spent on governance. The trustees are satisfied that the level of fundraising costs is appropriate to ensure MAC-UK remains a sustainable organisation.

With thanks to our partners and supporters, MAC-UK was in receipt of £3,750 (2019: £26,250) of in- kind income. This took the form of specialist pro-bono advice and consultancy across the areas of legal, business planning, strategy development and impact management.

MAC-UK welcomes, but is not reliant on, the occasional input of skilled volunteers to assist with projects from time to time. MAC-UK also hosts part-time and short-term student placements of individuals in further or higher education in a field of study related to our work.

Reserves Policy

The trustees have reviewed and agreed the reserves policy which requires sufficient free reserves (unrestricted funds less unrestricted fixed assets) to be maintained to meet three months’ operating expenses. Budgeted expenditure for 2020/21 is £440,428 and therefore the level of reserves to be maintained is £110,107 in general funds. At the balance

Charity structure, governance and mana ement // 15 g

sheet date, free reserves totalled £201,028. Trustees note the reserves levels exceed policy but they have agreed that in the current climate and owing to the ongoing impact of Covid-19 and uncertainty, that the excess is prudent.

Remuneration Policy

The trustees consider the Board of MAC-UK and the Co Leadership Team as comprising the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day to day basis.

All trustees give of their time freely and no trustee remuneration was paid in the year. There were no related party transactions in the year 2019/20.

Trustees are required to disclose all relevant interests and register them with the Head of Governance and in accordance with MAC-UK’s policy, withdraw from decisions where a conflict of interest arises.

MAC-UK has a salary banding structure in place for the remuneration of its employees, benchmarked with charities of a similar size and activity, to ensure that the remuneration set is fair and comparable with that generally paid for similar roles.

Periodic reviews of the salary banding structure take into account movement in average earnings. Pay reviews for any individual employee take into account the average salary of other employees. In 2019/20, the 3 highest paid members of staff earned between £49,242 - £51,737 full-time equivalent.

Trustees’ Responsibilities in relation to the Financial Statements

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

Company law requires trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company and of its income and expenditure for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies

Charity structure, governance and mana ement // 16 g

Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Impact of Covid-19 Pandemic

The Trustees have considered the ongoing impact of the Covid-19 pandemic and government regulations. Trustees consider that the disruption to the charity’s business has significantly recovered but that the impact of Covid-19 is long-term.

Going concern

The Trustees are confident that the Charity can continue as a going concern for a period of at least twelve months from the date of approval of these financial statements. The Trustees have a reasonable expectation that the Charity will have adequate resources to continue in operation for the foreseeable future. In the nine months of the new financial year to June 2021, the Charity has secured a new multi-year grant and a major donation from a philanthropist, and expects to record no significant deficit.

MAC-UK Annual Report

MAC-UK has a long-established flexible and remote working practice and a deeply embedded culture of risk assessment, risk planning and risk management that has aided our adaptation. The majority of our activities for 2020 were carried out remotely.

The report of the Trustees has been prepared taking advantage of the small companies’ exemption within the Companies Act 2006.

Signed on its behalf by Trustees:

MAC-UK’s leadership team continues to plan and implement various contingency measures to make sure MAC-UK remains as functional as possible, considering factors such as funding termination or failure to secure new funding, physical distancing, and the loss of key staff to illness. Project teams are doing this work with external partners too, to make sure that delivery can continue, and to support partners through this.

Steph Taylor Chair, MAC-UK Date: 07/10/2021

Julian Thompson Vice Chair, MAC-UK Date: 07/10/2021

MAC-UK has been focussing on wellbeing and team building since staff started working from home due to Covid-19, and have put substantial efforts into healthy and safe working from home, and into wellbeing initiatives for staff. We believe that our activities will sustain via a blend of online and outdoors, with appropriate protective measures for in-person working.

Julia Eisenstadt Treasurer, MAC-UK Date: 07/10/2021

Inde endent examiner’s re ort // 17 p p

I report to the charity trustees on my examination of the accounts of the company for the year ended 30 September 2020 which are set out on pages 18 to 31.

Responsibilities and basis of report

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

Having satisfied myself that the accounts of the company 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 your company’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

  1. the accounts do not accord with those records; or

  2. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or

  3. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

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 accounts to be reached.

Independent examiner’s statement

Since the company’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 The Institute of Chartered Accountants in England and Wales, 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:

Stuart McKay BSc FCA DChA

MHA MacIntyre Hudson Chartered Accountants 6th Floor 2 London Wall Place London EC2Y 5AU

Date: 30/11/2021

  1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or

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Financial statements

Statement of financial activities (including income and expenditure account) for the year ended 30 September 2020

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Financial statements

Balance sheet as at 30 September 2020

Steph Taylor Chair, MAC-UK Date: 07/10/2021

Stephen Hyams Trustee, MAC-UK Date: 07/10/2021

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Financial statements

Cash flow statement for the year ended 30 September 2020

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Financial statements

Notes to the financial statements for the year ended 30 September 2020

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Financial statements

Notes to the financial statements for the year ended 30 September 2020

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Financial statements

Notes to the financial statements for the year ended 30 September 2020

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Financial statements

Notes to the financial statements for the year ended 30 September 2020

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Financial statements

Notes to the financial statements for the year ended 30 September 2020

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Financial statements

Notes to the financial statements for the year ended 30 September 2020

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Financial statements

Notes to the financial statements for the year ended 30 September 2020

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Financial statements

Notes to the financial statements for the year ended 30 September 2020

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Financial statements

Notes to the financial statements for the year ended 30 September 2020

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Financial statements

Notes to the financial statements for the year ended 30 September 2020

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Financial statements

Notes to the financial statements for the year ended 30 September 2020

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