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2021-03-31-accounts

Company no. 5669443 Charity no. (England & Wales) 1130568 Charity no. (Scotland) SC047314

The Involve Foundation Report and Audited Financial Statements 31 March 2021

The Involve Foundation

Reference and administrative details

For the year ended 31 March 2021

Company number 5669443
Charity numbers 1130568 and SC047314
Registered office and Oxford House
operational address Derbyshire Street
London
E2 6HG
Trustees Trustees, who are also directors under company law, who
served during the year and up to the date of this report were as
follows:
Claire Ainsley
Edward Cox
Kathryn Jones
Julie Mellor
Golam Morshed
Paul Skidmore (retired 22 May 2021)
Sharon Squires
Hannah White
Temidayo Eseonu (appointed 27 May 2021)
Paul Braithwaite (appointed 27 May 2021)
Company secretary Tim Hughes (retired 5 September 2021)
Sarah Castell (appointed 6 September 2021)
Key management personnel Tim Hughes (retired 5 September 2021)
Sarah Castell (appointed 6 September 2021)
Clive Mitchell (Director of Operations)
Bankers Unity Trust Bank CCLA
9 Brindley Place Senator House
Birmingham 85 Queen Victoria Street
B1 2HB London
EC4V 4ET
Auditors Godfrey Wilson Limited
Chartered accountants and statutory auditors
5th Floor Mariner House
62 Prince Street
Bristol
BS1 4QD

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The Involve Foundation

Report of the trustees

For the year ended 31 March 2021

The Trustees, who are also directors under company law, present their report and financial statements for the year ended 31 March 2021.

The reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association, and the Statement of Recommended Practice - Accounting and Reporting by Charities (effective from January 2019).

Objectives

Our vision is of a vibrant UK democracy, with people at the heart of decision making . And our mission is to develop, support and campaign for new ways of involving people in the decisions that affect their lives.

We believe that democracy should be underpinned by the principles of:

We are seeking these outcomes from our work:

Our vision and mission support our core charitable objectives, which are:

In shaping our objectives for the year, and planning our activities, the Trustees have considered the Charity Commission's guidance on public benefit.

During the past year we have focused on making the case for how the principles we advocate are fundamental to bridging the divisions in our society, overcoming the complex challenges we face, and giving people power over the decisions that affect them.

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The Involve Foundation

Report of the trustees

For the year ended 31 March 2021

We have continued to pioneer participatory processes that involve people in decisions that affect their lives. From working with citizens to help shape Scotland’s response to climate change, to exploring whether assisted dying should be allowed in Jersey, we have demonstrated the role that the public can play in making better decisions.

All of our work in some way has been aimed at helping to solve the toughest and most complex challenges we face as a country. We have continued to champion public participation in decisions on issues such as climate change, the ethics of data use, and how we respond to the coronavirus pandemic. Our work shows how the public can be involved in shaping them in a responsible way.

The coronavirus pandemic has had a significant impact on how we design and facilitate public participation, and we outline some of the ways that we’ve been adapting to this in our programme highlights below. But the pandemic has not removed the need for a stronger democracy - on the contrary, as public bodies seek to navigate new and very challenging territory, involving citizens in the many critical and important decisions that are affecting all our lives has become more important than ever.

Activities, achievements and performance

Here are some of the highlights of our work and achievements in 2020/21.

Climate Assembly UK

We were commissioned by the House of Commons in 2019 to run Climate Assembly UK, an assembly of over a hundred citizens from across the country that considered how the UK can meet its legally binding target to get to net zero emissions of greenhouse gases by 2050. Funded by the House of Commons, the Esmee Fairbairn Foundation, and the European Climate Foundation, and working closely with partner organisations mySociety and the Sortition Foundation, Involve’s role was to ensure we delivered a high quality citizens’ assembly.

The coronavirus pandemic meant that we had to move the assembly online during April 2020, rapidly redesigning the meetings so that the assembly could continue to meet and deliberate remotely, using online conferencing technology. As a result we were able to successfully complete the assembly’s work and produce its report and recommendations, which were published in September 2020.

Following publication of the report, over 800 politicians, civil servants and stakeholders attended briefings on the assembly’s work. The Government has said that it “welcome[s] the report and will be considering its findings closely as we shape our approach to net zero.”

Darren Jones MP, Chair of the Business, Energy and Industrial Strategy Select Committee, said “This is an extremely important contribution to the debate on how the UK reaches our net zero target and I hope it gives impetus to policy makers to take bold action to reduce our emissions. The range of voices within these pages reflect our population. The fact that assembly members have been able to arrive at clear recommendations whilst respecting each others’ values and experiences sets an example for us all.”

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The Involve Foundation

Report of the trustees

For the year ended 31 March 2021

Scotland's Climate Assembly

Commissioned by the Scottish Government, and partnering with The Democratic Society and the Sortition Foundation, Involve successfully delivered Scotland’s Climate Assembly. The assembly brought together people from all walks of life across Scotland to learn about and discuss the question: “How should Scotland change to tackle the climate emergency in an effective and fair way?”.

Meeting over seven weekends between December 2020 and March 2021, 101 citizens learnt about climate change, deliberated on the question above, and produced a series of goals and a statement of ambition that were set out in the assembly’s interim report, which was laid in the Scottish Parliament on 24 March 2021. The full report of the Assembly, which contains detailed recommendations for how these goals should be achieved, was laid before the new Parliament in June 2021.

Susie, an assembly member from Dumfries and Galloway, said, “We've worked really hard. If you give ordinary people this evidence base, it is amazing what they can do in collaboration with each other. When I joined the Climate Assembly my daughter told me ‘that's amazing, you’re part of history!’ It’s democracy in action.”

A democratic response to Covid-19

In many ways this has been a year like no other. The pandemic has affected our lives so much, and will continue to do so for years to come. Involve wanted to explore what these impacts mean for our democracy. What role can and should the public play in decisions about how the country responds to the pandemic?

In a joint project with the Centre for the Study of Democracy at the University of Westminster, Involve explored these questions in collaboration with our wider network of deliberative democracy practitioners. We collectively produced a handbook “Building Back With: a handbook for local government”, intended to support local authorities working with their communities to develop their responses to and recovery from Covid-19.

We also curated a blog series on our website, from a wide range of contributors, on participation, democracy and Covid-19.

Building on this work, we will be publishing a book “Democracy in a Pandemic” in 2021, jointly authored with Professor Graham Smith from the University of Westminster.

Citizen participation in Jersey

In partnership with New Citizenship Project and the Sortition Foundation, we were commissioned by the Government of Jersey to run two major deliberative democracy projects in 2020/21: a Citizens’ Assembly on Climate Change and a Jersey’s Assisted Dying Citizens’ Jury.

Citizens' Assembly on climate change

Following the declaration of a climate emergency in 2019, the States Assembly of the island of Jersey approved a carbon neutral strategy setting out a ‘people powered’ approach, giving islanders a real say over when and how Jersey should become carbon neutral. The convening of the Citizens’ Assembly was a key part of this strategy. Comprising 45 citizens, the assembly met over 14 sessions between March 2021 and May 2021. The assembly’s report will in due course be presented to the States Assembly.

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The Involve Foundation

Report of the trustees

For the year ended 31 March 2021

Assisted dying citizens' jury

In 2018 an e-petition was launched calling for the States Assembly to amend the legislation on assisted dying. In light of the public debate that took place following the launch of the petition, the Jersey Minister for Health and Social Services committed to establishing a citizens’ jury to consider whether assisted dying should be permitted in Jersey.

The jury of 23 citizen jurors - selected randomly, and demographically representative of the island’s population - met in a number of online sessions between March and May 2021. They considered the question: “Should assisted dying be permitted in Jersey and, if so, under what circumstances?”. An independent advisory panel oversaw and scrutinised the delivery of this project. The jury’s report will in due course be presented to the Minister of Health and Social Services.

Rethinking water citizens' juries

We rely on water every day and in many different ways. In a rapidly changing climate it is vital to ensure there is clean and plentiful water for everyone who lives, works and plays in an area, all without harming rivers, estuaries, lakes and seas. Working in partnership with the Sortition Foundation, Involve was commissioned by the Environment Agency (EA) to run three citizens’ juries across the UK: in Lower Tyne, Ilkley, and Thames. Each jury took a local approach to what is a national issue, and each of them considered the question: “How do you connect with water in your local environment, and what needs to be changed in the future to benefit people and wildlife?”.

Each jury brought together 22 randomly selected and demographically representative members of the public, and met online between January and March 2021. The juries’ recommendations will be presented to the Environment Agency’s Board, and will inform the development of EA’s future water ambition and action plan for delivering improvements to water management. EA are also continuing to build the local partner relations that were developed through the local advisory groups to identify opportunities for joint action to deliver local catchment plans.

Financial review

2020/21 has been another successful year in terms of our funding. Significant sources of funding included the Scotland Climate Assembly, Sciencewise, and the Bristol Climate Assembly.

At 31 March 2021 Involve had total funds of £463,177 (2020: £398,132), of which £266,666 were general funds, with the balance being our designated fund of £125,748 and restricted funds of £70,763. Historically, Involve’s funding has come from a mix of contracts and grants, with little or no core funding. In 2017 we received our first significant core-funding grant (£60,000 from the Joseph Rowntree Charitable Trust). In 2018 we successfully applied for further unrestricted core funding from the Joseph Rowntree Charitable Trust, amounting to £150,000 payable over a period of three years from January 2019. However, most of our income continues to come from contracts and restricted grants.

Looking ahead to the future, our longer-term strategy is to re-balance our sources of funding, to enable us to sustain focus on our new strategic goals. Our work is now focused in three areas:

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The Involve Foundation

Report of the trustees

For the year ended 31 March 2021

This new strategic focus will have implications for our funding streams: we are likely to move towards greater reliance on grant funding.

We have reorganised Involve’s senior leadership team, to enable delivery of our new strategic goals. From 2021/22 the senior team will comprise:

Reserves policy

Involve’s reserves comprise our general fund and two designated funds.

We normally budget to make a modest surplus on unrestricted funds each year. For 2020/21, in light of the uncertainties at that time around funding streams during the coronavirus pandemic, Trustees approved a break-even budget for the year. As it turned out, our income streams during the pandemic have held up remarkably well, not least because we made a successful transition to running participation events online. As a result our unrestricted funds had grown by financial year end. At 31 March 2021 unrestricted funds stood at £392,414, compared to the balance brought forward at the start of the financial year of £311,598 - a surplus of £80,816.

Trustees reviewed Involve’s reserves during 2020/21. Given the healthy position in the general fund, and the introduction of our new strategic goals and senior leadership team, Trustees committed to allocating £80,000 of the general fund to pay for some of our Advocacy & Communications work in 2021/22.

Involve has a 'stability' designated fund, which we hold as a reserve. We hold this in a deposit account with the CCLA, which is a charity fund manager that invests its clients' funds in various ways. Other than the CCLA account, Trustees have decided not to have any investments. The purpose of the stability fund is to enable Involve to weather shocks and remain resilient, and (if necessary) close the organisation with honour.

Trustees recognised that the amount held in the stability fund, whilst sufficient to close down the organisation, was insufficient to meet its other intended purpose: weathering income shocks. Trustees resolved to gradually grow the fund over time to £100,000 (equivalent to approximately two months worth of operating expenses). At 31 March 2021 the stability fund stood at £45,748 (2020: £40,748).

Going concern

Trustees gave very careful consideration at the start of 2020/21 to the impact that the COVID-19 pandemic would have on Involve’s current and future financial position. They identified the key risks as follows:

▪The risk that some of our projects might have been delayed till later in the year, or cancelled;

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The Involve Foundation

Report of the trustees

For the year ended 31 March 2021

But given the profound impact of the pandemic on public sector organisations, and their likely appetite to engage citizens in adapting their policy responses, we recognised that there was likely to be an on-going demand for good quality participation work.

Trustees implemented a number of mitigating actions to address these risks:

The Trustees consider that Involve will continue as a going concern for a period of at least 12 months from the date on which these financial statements are approved, for the following reasons:

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The Involve Foundation

Report of the trustees

For the year ended 31 March 2021

The Trustees therefore consider it appropriate to adopt the going concern basis for the preparation of the accounts, as detailed in note 1(b) to the financial statements.

Principal risks and uncertainties

Involve has a risk register which is actively managed by both the management team and by Trustees. Our principal risks and uncertainties, and the steps we take to manage them, are outlined below.

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The Involve Foundation

Report of the trustees

For the year ended 31 March 2021

Future plans

There is a growing recognition that our current model of democracy is not fit for purpose, and people are increasingly looking for ways to make it better. Our work demonstrates how. Over the coming years we plan to accelerate the work we have started to demonstrate how a different type of democracy is possible. We want to seize the current malcontent and channel it into creating change in a positive direction.

We have long had a reputation for designing and delivering world class participatory and deliberative decision-making processes, but we are clear that this is not enough to achieve the scale of change that is required. Our 2017 strategy identified the need for us to significantly increase our advocacy and communications capacity, and to build external networks, in order to shift the narrative about democracy and embed the principles of openness, participation and deliberation within institutions. We have since broadened our strategy to cover capacity building and standard setting so that organisations and practitioners are helped to make that shift to a better democracy.

During 2020/21 we continued to work on refining our strategy and developing our plans and business models for reshaping the organisation. Our new organisational structure is now in place from 2021/22, and our Business Plan for 2021/22 sets out how we will achieve our strategic goals of: Making the case, Embedding change, and Pioneering practice.

In terms of Involve’s confirmed programmes for 2021/22, these include the ongoing delivery of the Sciencewise programme for UK Research and Innovation, Devon County Council’s Climate Assembly, further work on data ethics in Scotland in partnership with Carnegie UK and funded by the Scottish Government, building local authority capacity across the Northern Ireland / Republic of Ireland border (funded by the Irish Department of Foreign Affairs), the People’s Panel on Health and Care in partnership with Engage Britain and The Democratic Society, and a citizens’ assembly on democracy after Brexit in collaboration with the Constitution Unit at University College London. We will be building our work on advocacy & communications this year, as well as extending the work we do to build capacity and set standards around participatory and deliberative practice.

Structure, governance and management

Involve is a charitable company limited by guarantee. It was incorporated on 9 January 2006 and registered as a charity on 15 July 2009. We also registered as a charity with the Office of the Scottish Charity Regulator on 10 April 2017. Involve’s Memorandum of Association establishes the objects and powers of the charitable company, which is governed under its Articles of Association.

Involve has a Board of Trustees who meet every two months and are responsible for the strategic direction, finances and policy of Involve. Our Articles of Association allows us to have up to 15 Trustees. At 31 March 2021 there were 8 Trustees, with a range of experience, skills and knowledge relevant to Involve’s mission. Two new Trustees were appointed to the Board in May 2021. The company Secretary (who is Involve’s Director) also sits on the Board, but has no voting rights. Other staff also attend the Board as required. The Board has one sub-committee, a Finance & Risk Subcommittee.

Responsibility for the day to day management of the organisation is delegated to the Director. The Director is supported by a management team, which in 2020/21 comprised:

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The Involve Foundation

Report of the trustees

For the year ended 31 March 2021

Tim Hughes stood down in September 2021, and the senior leadership has been reorganised. From 2021/22 the new management team will be:

Recruitment and appointment of Trustees

The directors of the company are also charity Trustees for the purposes of charity law and under the company’s articles are known as the Trustees. Trustees are appointed for an initial period of three years by resolution of the Trustees. This is renewable for a further term of three years. Trustees who have served six continuous years must leave and remain out of office for a period of one year unless the Trustees resolve that it is in the best interests of Involve for that person to continue to serve as a Trustee.

Due to the nature of Involve’s work, which is oriented towards participation, advocacy, democratic practice, and building capacity, the Trustees have agreed that suitably experienced individuals are required to exercise adequate governance. Trustees identify potential new Board members through relevant networks and contacts and by open recruitment, followed by interview. When appointing new members, Trustees look for a commitment to Involve’s vision and mission and attempt to achieve a balance of skills and experience on the Board.

One of our Trustees came to the end of their six-year term in May 2021. We undertook a round of Trustee recruitment at the start of 2021 and appointed two new Trustees in May 2021.

Trustee induction and training

All new Trustees are provided with a pack of information about governance, management and the work of Involve. This pack includes key financial and governance documents. In addition, all new Trustees attend a short training session with the Chief Executive or Director of Operations. The purpose of this session is to familiarise them with the charity, its purpose, structure, financing and activities, as well as the role of a Board member.

Related parties and relationships with other organisations

Involve is a small organisation and, although we have a strong set of skills and experiences amongst our staff and Associates, we partner with other organisations and individuals on a significant proportion of our work. This partnering includes work where we are the lead organisation in a partnership as well as subcontracting by us or to us.

A full list of our funders in 2020/21, and details of our Associates and partner organisations, is available on our website: https://www.involve.org.uk/.

Involve has an established conflicts of interest policy for Trustees. Trustees, and senior management staff, are required to complete an annual declaration of interests. Declaring interests is a standing item at the start of all Board and subcommittee meeting agendas. The policy outlines how any interests are then handled at the meeting, guided by the overall principle that Trustees should not be able to unduly influence decision-making on issues where they have an interest. Note 17 in the attached notes to the financial statements provides details of related party transactions.

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The Involve Foundation

Report of the trustees

For the year ended 31 March 2021

Remuneration policy for key management personnel

Involve’s pay policy and pay scales are approved by Trustees. We will be reviewing our pay policy and pay scales in 2021. We reviewed our staff development and appraisal process, and introduced a new process, in 2018/19.

Statement of responsibilities of the trustees

The trustees (who are also directors of the charity 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, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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

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

In so far as the Trustees are aware:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

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The Involve Foundation

Report of the trustees

For the year ended 31 March 2021

Auditors

Godfrey Wilson Limited were re-appointed as auditors to the charitable company during the year and have expressed their willingness to continue in that capacity.

Approved by the trustees on 12 October 2021 and signed on their behalf by

Golam Morshed

Ed Cox, Chair

Golam Morshed, Treasurer

12

Independent auditors' report

To the members of

The Involve Foundation

Opinion

We have audited the financial statements of The Involve Foundation (the 'charity') for the year ended 31 March 2021 which comprise the statement of financial activities, balance sheet, statement of cashflows and the related notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

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

13

Independent auditors' report

To the members of

The Involve Foundation

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

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement set out in the trustees’ report, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Our responsibilities for the audit of the financial statements

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

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Independent auditors' report

To the members of

The Involve Foundation

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The procedures we carried out and the extent to which they are capable of detecting irregularities, including fraud, are detailed below:

(1) We obtained an understanding of the legal and regulatory framework that the charity operates in, and assessed the risk of non-compliance with applicable laws and regulations. Throughout the audit, we remained alert to possible indications of non-compliance.

(2) We reviewed the charity’s policies and procedures in relation to:

(3) We inspected the minutes of trustee meetings.

(4) We enquired about any non-routine communication with regulators and reviewed any reports made to them.

(5) We reviewed the financial statement disclosures and assessed their compliance with applicable laws and regulations.

(6) We performed analytical procedures to identify any unusual or unexpected transactions or balances that may indicate a risk of material fraud or error.

(7) We assessed the risk of fraud through management override of controls and carried out procedures to address this risk. Our procedures included:

▪Testing the appropriateness of journal entries;

▪Testing transactions that are unusual or outside the normal course of business.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. Irregularities that arise due to fraud can be even harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

15

Independent auditors' report

To the members of

The Involve Foundation

Use of our report

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

Alison Godfrey

Date: 18 October 2021

Alison Godfrey FCA (Senior Statutory Auditor)

For and on behalf of:

GODFREY WILSON LIMITED

Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

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The Involve Foundation

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2021

Restricted
Unrestricted
Note
£
£
Income from:
Donations
-
566
Charitable activities
3
135,199
1,526,945
Investments
-
-
Total income
135,199
1,527,511
Expenditure on:
Raising funds
-
44,000
Charitable activities
207,914
1,345,751
Total expenditure
5
207,914
1,389,751
Net income / (expenditure)
(72,715)
137,760
Transfers between funds
56,944
(56,944)
Net movement in funds
7
(15,771)
80,816
Reconciliation of funds:
Total funds brought forward
86,534
311,598
Total funds carried forward
70,763
392,414		 2021
Total
£
566
1,662,144
-
1,662,710
44,000
1,553,665
1,597,665
65,045
-
65,045
398,132
463,177		 2020
Total
£
6,135
1,856,531
248
1,862,914
41,795
1,664,003
1,705,798
157,116
-
157,116
241,016
398,132

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 15 to the accounts.

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The Involve Foundation

Balance sheet

As at 31 March 2021

Note
Fixed assets
Tangible assets
10
Current assets
Debtors
11
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within 1 year
12
Net current assets
Net assets
14
Funds
15
Restricted funds
Unrestricted funds
Designated funds
General funds
Total charity funds		 £
398,503
475,280
873,783
(416,920)		 2021
£
6,314
456,863
463,177
70,763
125,748
266,666
463,177		 2020
£
10,532
202,449
414,493
616,942
(229,342)
387,600
398,132
86,534
40,748
270,850
398,132

These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

Approved by the trustees on 12 October 2021 and signed on their behalf by

Ed Cox, Chair

Golam Morshed

Golam Morshed, Treasurer

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The Involve Foundation

Statement of cash flows

For the year ended 31 March 2021

Cash used in operating activities:
Net movement in funds
Adjustments for:
Depreciation charges
Dividends, interest and rents from investments
Decrease / (increase) in debtors
Increase / (decrease) in creditors
Net cash provided by / (used in) operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of tangible fixed assets
Net cash provided by / (used in) investing activities
Increase / (decrease) in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2021
£
65,045
5,608
-
(196,054)
187,578
62,177
-
(1,390)
(1,390)
60,787
414,493
475,280		 2020
£
157,116
4,492
(248)
2,845
76,298
240,503
248
(6,007)
(5,759)
234,744
179,749
414,493

The charity has not provided an analysis of changes in net debt as it does not have any long term financing arrangements.

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The Involve Foundation

Notes to the financial statements

For the year ended 31 March 2021

1. Accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Involve Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

b) Going concern basis of accounting

The accounts have been prepared on the assumption that the charity is able to continue as a going concern. Despite the impact of the ongoing Covid-19 pandemic, the charity holds unrestricted reserves of £392k and a cash balance of £475k at 31 March 2021. The charity also has significant confirmed funding for 21/22 and a positive cash flow forecast for the next 12 months. On this basis the trustees consider that the charity will continue as a going concern for a period of at least 12 months from the date on which these financial statements are approved.

c) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from the government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income received in advance of provision of consultancy services is deferred until criteria for income recognition are met.

d) Donated services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item, is probable and the economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

e) Interest receivable

Interest on funds held on deposit is included when 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.

20

The Involve Foundation

Notes to the financial statements

For the year ended 31 March 2021

1. Accounting policies (continued)

f) Funds accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity.

g) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

h) Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Governance costs are the costs associated with the governance arrangements of the charity, including the costs of complying with constitutional and statutory requirements and any costs associated with the strategic management of the charity’s activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities on the following basis, which is an estimate of staff time spent on activities:

2021 2020
Raising funds 7.1% 7.0%
Charitable activities 92.9% 93.0%

i) Tangible fixed assets

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated
residual value over its expected useful life. The depreciation rates in use are as follows:
Website
3 years straight line basis
Computer and office equipment
3 years straight line basis

j) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

k) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

l) Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

21

The Involve Foundation

Notes to the financial statements

For the year ended 31 March 2021

1. Accounting policies (continued)

m) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently recognised at amortised cost using the effective interest method.

n) Pension costs

The company operates a defined contribution pension scheme for its employees. There are no further liabilities other than that already recognised in the SOFA.

o) Foreign currency transactions

Transactions in foreign currencies are translated at rates prevailing at the date of the transaction. Balances denominated in foreign currencies are translated at the rate of exchange prevailing at the year end.

p) Accounting estimates and key judgements

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

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

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are depreciation as described in note 1(i).

22

The Involve Foundation

Notes to the financial statements

For the year ended 31 March 2021

2. Prior period comparatives

Income from:
Donations
Charitable activities
Investments
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net income / (expenditure)
Transfers between funds
Net movement in funds
Income from charitable activities
Grant income
Consulting income
Training
Total income from charitable activities
Prior period comparative:
Grant income
Consulting income
Training
Total income from charitable activities		 Restricted
£
£
-
6,135
642,994
1,213,537
-
248
642,994
1,219,920
-
41,795
657,400
1,006,603
657,400
1,048,398
(14,406)
171,522
4,925
(4,925)
(9,481)
166,597
Restricted
£
£
135,199
57,500
-
1,467,705
-
1,740
135,199
1,526,945
Restricted
£
£
642,994
62,500
-
1,148,937
-
2,100
642,994
1,213,537
Unrestricted
Unrestricted
Unrestricted		 2020
Total
£
6,135
1,856,531
248
1,862,914
41,795
1,664,003
1,705,798
157,116
-
157,116
2021
Total
£
192,699
1,467,705
1,740
1,662,144
2020
Total
£
705,494
1,148,937
2,100
1,856,531

3. Income from charitable activities

* Included within unrestricted grants is £37,500 (2020: £62,500) of funding received from the Joseph Rowntree Charitable Trust and £20,000 (2020: £nil) from the Esmée Fairbairn Foundation as contributions to core costs.

23

The Involve Foundation

Notes to the financial statements

For the year ended 31 March 2021

4. Government grants

The charitable company receives government grants, defined as grant funding from NHS trusts, local authorities and government departments to fund charitable activities. The total value of such grants in the period ending 31 March 2021 was £nil (2020: £230,000). There are no unfulfilled conditions or contingencies attaching to these grants.

5. Total expenditure

Total expenditure
Direct costs
Staff costs (note 8)
Other staff costs
Premises costs
Office and IT costs
Other costs
Trustee meeting costs
Audit fees
Sub-total
Total expenditure
Allocation of support and
governance costs		 Raising
funds
£
-
20,311
-
-
-
4,201
-
-
24,512
19,488
44,000		 Charitable
activities
£
£
1,030,123
-
267,186
167,047
-
9,080
-
17,373
-
19,410
-
57,784
-
150
-
5,000
1,297,309
275,844
256,356
(275,844)
1,553,665
-
Support and
governance
costs		 2021 Total
£
1,030,123
454,544
9,080
17,373
19,410
61,985
150
5,000
1,597,665
-
1,597,665

Total governance costs were £14,997 (2020: £14,003).

24

The Involve Foundation

Notes to the financial statements

For the year ended 31 March 2021

5. Total expenditure (continued)

Prior period comparative
Direct costs
Grants payable (note 6)
Staff costs (note 8)
Other staff costs
Premises costs
Office and IT costs
Other costs
Trustee meeting costs
Audit fees
Sub-total
Total expenditure
Allocation of support and
governance costs		 Raising
funds
£
-
-
18,257
-
-
-
5,388
-
-
23,645
18,150
41,795		 Charitable
activities
£
£
1,052,963
-
123,488
-
244,489
170,578
-
5,979
-
20,086
-
17,936
-
40,396
-
1,438
-
4,800
1,420,940
261,213
243,063
(261,213)
1,664,003
-
Support and
governance
costs		 2020 Total
£
1,052,963
123,488
433,324
5,979
20,086
17,936
45,784
1,438
4,800
1,705,798
-
1,705,798

6. Grants payable

Grants payable
Grants paid to institutions:
RSA
The Democratic Society
SocietyWorks Ltd
Cambridge County Council
Dudley Metropolitan Borough Council
Test Valley Borough Council		 2021
£
-
-
-
-
-
-
-		 2020
£
53,900
12,900
21,450
6,493
15,358
13,386
123,488

All grants paid in 2020 were for the Innovation in Democracy project. No support costs have been allocated to grants payable.

25

The Involve Foundation

Notes to the financial statements

For the year ended 31 March 2021

7. Net movement in funds

This is stated after charging:

Depreciation
Operating lease payments
Trustees' remuneration
Trustees' reimbursed expenses
Auditors' remuneration:
Statutory audit (excluding VAT)
Other services		 2021
£
5,608
16,254
-
-
5,000
8,011		 2020
£
4,492
17,807
3,000
666
4,800
6,165

Trustees' remuneration in the prior year relates to Julie Mellor's facilitation services at the Climate Assembly UK. No trustee was paid for their role as trustee. Trustees' reimbursed expenses in the prior year relate to payments made to 3 trustees for reimbursed meeting, accommodation and travel expenses.

8. Staff costs and numbers

Staff costs were as follows:

Salaries and wages
Social security costs
Pension costs		 2021
£
395,813
36,765
21,966
454,544		 2020
£
377,757
36,469
19,098
433,324

No employee earned more than £60,000 during the year.

The key management personnel of the charitable company comprise the Director and the Director of Operations. The total employee benefits of the key management personnel were £92,478 (2020: £91,326).

The average number of employees during the year was as follows:

Average head count 2021
No.
11.3		 2020
No.
11.1

9. Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

26

The Involve Foundation

Notes to the financial statements

For the year ended 31 March 2021

10. Tangible fixed assets

Cost
At 1 April 2020
Additions in year
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020
11. Debtors
Trade debtors
Prepayments
Accrued income
Other debtors
12. Creditors : amounts due within 1 year
Trade creditors
Accruals
Other taxation and social security
Deferred income (see note 13)
Other creditors		 Website
£
10,471
-
10,471
4,945
3,490
8,435
2,036
5,526		 £
6,007
1,390
7,397
1,001
2,118
3,119
4,278
5,006
2021
£
290,224
3,602
104,677
-
398,503
2021
£
192,141
92,666
97,679
27,500
6,934
416,920
Computer
and office
equipment		 Total
£
16,478
1,390
17,868
5,946
5,608
11,554
6,314
10,532
2020
£
176,373
1,786
23,100
1,190
202,449
2020
£
141,234
21,275
39,847
21,667
5,319
229,342

27

The Involve Foundation

Notes to the financial statements

For the year ended 31 March 2021

13. Deferred income

Deferred income
At 1 April 2020
Released during the year
Deferred during the year
At 31 March 2021		 2021
£
21,667
(21,667)
27,500
27,500		 2020
£
1,000
(1,000)
21,667
21,667

Deferred income comprises consultancy income received in advance of work being delivered.

14. Analysis of net assets between funds

Analysis of net assets between funds
Tangible fixed assets
Current assets
Current liabilities
Net assets at 31 March 2021
Prior period comparatives
Tangible fixed assets
Current assets
Current liabilities
Net assets at 31 March 2020		 £
-
70,763
-
70,763
£
-
86,534
-
86,534
Restricted
funds
Restricted
funds		 £
-
125,748
-
125,748
£
-
40,748
-
40,748
Designated
funds
Designated
funds		 General
funds
£
6,314
677,272
(416,920)
266,666
General
funds
£
10,532
489,660
(229,342)
270,850		 Total
funds
£
6,314
873,783
(416,920)
463,177
Total
funds
£
10,532
616,942
(229,342)
398,132

28

The Involve Foundation

Notes to the financial statements

For the year ended 31 March 2021

15. Movements in funds

Movements in funds
At 1 April
2020
£
Restricted funds
5,812
35,177
6,863
36,209
2,473
-
-
Forum for the Future Just Transitions
-
-
-
-
-
Total restricted funds
86,534
Designated funds:
Stability fund
40,748
Advocacy and communications
-
Total designated funds
40,748
General funds
270,850
Total unrestricted funds
311,598
Total funds
398,132
Public Participation Capacity
Building (Cross-border)
Unrestricted funds
Coalition for Deliberative Democracy
MH:2K Mental Health Project
- Round 2
Climate Assembly UK
Practitioners' Network on Citizens'
Assemblies
Distributed Dialogue on data sharing
UK Citizens' Jury on Genome
Editing - Wellcome Sanger Institute
Climate Assembly UK Legacy
- European Climate Foundation
Climate Assembly Evaluation
- European Climate Foundation
Climate Change and Deliberative
Democracy - Calouste Gulbenkian
Foundation
University of Westminster
- Democratic response to Covid		 Income
£
-
-
56,000
-
-
20,000
8,928
8,123
-
21,168
6,667
14,313
135,199
-
-
-
1,527,511
1,527,511
1,662,710		 £
(7,200)
(12,956)
(117,288)
(18,419)
(6,311)
(17,778)
(10,221)
(6,924)
(268)
(1,090)
(7,333)
(2,126)
(207,914)
-
-
-
(1,389,751)
(1,389,751)
(1,597,665)
Expenditure		 £
£
1,388
-
-
22,221
50,425
(4,000)
-
17,790
3,838
-
-
2,222
1,293
-
-
1,199
-
(268)
-
20,078
-
(666)
-
12,187
56,944
70,763
5,000
45,748
80,000
80,000
85,000
125,748
(141,944)
266,666
(56,944)
392,414
-
463,177
Transfers
between
funds
At 31 March
2021
70,763
45,748
80,000
125,748
266,666
392,414
463,177

29

The Involve Foundation

Notes to the financial statements

For the year ended 31 March 2021

15. Movements in funds (continued) Purposes of restricted funds

MH:2K Mental Health Project - An innovative, youth-led approach to influencing decision-making Round 2 around youth mental health prevention, support and services, in four areas in England. The project was funded by Wellcome and the four local authority areas.

Coalition for Deliberative Democracy Building a coalition of supporters of participatory and deliberative democracy to advocate for its adoption. Funded by the Esmee Fairbairn Foundation.

Climate Assembly UK The first UK-wide citizens' assembly on climate change took place in early 2020, bringing together 110 citizens from across the UK, randomly selected to be representative of the national population. The Assembly was commissioned by six select committees of the House of Commons, and looked at how the UK can meet its target of net zero greenhouse gas emissions by 2050. The work was funded by the UK parliament, the Esmee Fairbairn Foundation and the European Climate Foundation. Distributed Dialogue on data sharing Funded by Wellcome and the London Borough of Camden (and initially by the Scottish Government), this project will pilot models of distributed, community-based dialogue, which will explore how the data sharing debate can be widened and sustained. Practitioners' Network on Citizens' This grant from the Network for Social Change helped to establish Assemblies a growing network of engagement practitioners to share learning and build capacity for deliberative democracy, including learning from recent citizens' assemblies. Climate Change and Deliberative This grant from the Calouste Gulbenkian Foundation has enabled Democracy - Calouste Gulbenkian Involve to maximise the impact of Climate Assembly UK, including Foundation retaining external advocacy and media expertise and capacity. University of Westminster This grant from the University of Westminster enabled Involve to - Democratic response to Covid develop a 'Build Back With' guide for local government, in collaboration with our wider practitioners' network, and also to curate a blog series on our website on participation, democracy and Covid-19. Forum for the Future Just This grant from Friends Provident Charitable Foundation, subTransitions granted to Involve from Forum for the Future, will enable us to work with Forum for the Future to support local economies by demonstrating community-led fair transitions to net zero in two pilot locations UK Citizens' Jury on Genome This grant from the Wellcome Sanger Institute will enable Involve to Editing - Wellcome Sanger Institute run a citizens' jury in the UK, as part of a global series of deliberations on genome editing.

30

The Involve Foundation

Notes to the financial statements

For the year ended 31 March 2021

15. Movements in funds (continued)

Public Participation Capacity Building (Cross-border)

This grant from the Republic of Ireland's Department of Foreign Affairs will enable Involve to help build capacity in public participation amongst local authorities on both sides of the Ireland / Northern Ireland border.

Climate Assembly UK Legacy This grant from the European Climate Foundation has enabled - European Climate Foundation Involve to maximise the impact of Climate Assembly UK, including retaining external advocacy and media expertise and capacity.

Climate Assembly Evaluation This grant from the European Climate Foundation will enable - European Climate Foundation Involve to commission some additional evaluation of Climate Assembly UK, to complement the evaluation commissioned separately by the UK Parliament. Purposes of designated funds Stability fund This fund enables Involve, if necessary, to close down the organisation in an orderly and honourable manner.

Advocacy and communications This fund will be used to invest in Involve's Advocacy & Communications work, as part of Involve's new strategic focus.

Transfers between funds

Transfers made from general funds serve the purpose of covering overspend from restricted funds.

Funds in deficit

All funds in deficit comprise restricted funds which have been spent in advance of the receipt of further income. All deficits are expected to be recovered in 2021-22.

31

The Involve Foundation

Notes to the financial statements

For the year ended 31 March 2021

15. Movements in funds (continued) Prior period comparatives

Restricted funds
Total restricted funds
Designated funds:
Stability fund
Total designated funds
General funds
Total unrestricted funds
Total funds
Practitioners' Network on Citizens'
Assemblies
Distributed Dialogue on data sharing
Climate Assembly UK
Innovation in Democracy
Coalition for Deliberative Democracy
MH:2K Mental Health Project
- Round 2
Ministry of Justice
- Teeside Reform Prisons
Unrestricted funds
Citizens Convention on UK
Democracy		 At 1 April
2019
£
1,523
6,555
35,683
2,254
50,000
-
-
-
96,015
40,500
40,500
104,501
145,001
241,016
 Income
£
-
-
-
-
230,000
360,000
45,270
7,724
642,994
248
248
1,219,672
1,219,920
1,862,914		 £
(2,343)
(743)
(506)
(5,380)
(280,979)
(353,137)
(9,061)
(5,251)
(657,400)
-
-
(1,048,398)
(1,048,398)
(1,705,798)
Expenditure		 £
£
820
-
-
5,812
-
35,177
3,126
-
979
-
-
6,863
-
36,209
-
2,473
4,925
86,534
-
40,748
-
40,748
(4,925)
270,850
(4,925)
311,598
-
398,132
Transfers
between
funds
At 31 March
2020		 £
£
820
-
-
5,812
-
35,177
3,126
-
979
-
-
6,863
-
36,209
-
2,473
4,925
86,534
-
40,748
-
40,748
(4,925)
270,850
(4,925)
311,598
-
398,132
Transfers
between
funds
At 31 March
2020
86,534
40,748
40,748
270,850
311,598
398,132

16. Operating lease commitments

The charity had operating leases at the year end with total future minimum lease payments as follows:

Amount falling due:
Within 1 year
Within 1 - 5 years		 2021
£
14,176
5,907
20,083		 2020
£
4,548
-
4,548

32

The Involve Foundation

Notes to the financial statements

For the year ended 31 March 2021

17. Related party transactions

Claire Ainsley, a trustee, was also a Director of the Joseph Rowntree Foundation until April 2020, from whom Involve received £26,000 of income in the year (2020: £67,489).

Julie Mellor, a trustee, is also a trustee of The Young Foundation. Involve had a lease agreement with The Young Foundation for rental of office space until 15 January 2021. During the year, Involve paid rent of £8,591 to The Young Foundation (2020: £15,347) and £10 in sundry expenses (2020: £nil).

Paul Braithwaite, a trustee, is a senior employee of Community Foundation for Northern Ireland, from whom Involve received £5,000 of income during the year. Paul became a trustee in May 2021, some time after the funding was agreed.

33