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2021-08-31-accounts

WORKING CHANCE 2020/21

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Report and financial statements For the year ended 31 August 2021

WELCOME!

A letter from our chair and chief executive .................................................................................... 3 Trustees’ annual report ....................................................................................................................... 5 Independent auditor’s report ........................................................................................................... 23 Statement of financial activities ...................................................................................................... 27 Balance sheet ....................................................................................................................................... 28 Statement of cash flows ................................................................................................................... 29 Notes to the financial statements .................................................................................................. 30 References and administrative information .................................................................................. 43

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Report from our Chief Executive and Chair of Trustees For the year ended 31 August 2021

A LETTER FROM OUR CHAIR AND CHIEF EXECUTIVE

Natasha Finlayson OBE Lin Hinnigan Chief Executive Chair

This was a hugely significant and busy year for Working Chance as we set the charity on a new path with renewed determination to make as big a difference for women with convictions as we can – both to them as individuals, and to the systems that can help and hinder them. As well as adapting our services so that they could be accessed remotely, we began implementing our bold new three-year strategy, launched a new website, refreshed our brand, and appointed a new Chair of our Trustee Board, Lin Hinnigan, who joined us in September 2020.

Last year we reported on the survey we conducted, of 600 women in prison and 200 women with convictions living in the community, to help us gain a deeper understanding of the challenges they face and what they think we should be doing to support them. The incredibly rich data and insights from this consultation underpin the three-year strategy that we commenced at the start of this year.

The first year of the strategy has seen our service become increasingly tailored to individual women’s needs, supporting them to find a path that will provide them with security and stability and ultimately enable them to thrive. Our aim is to help women with convictions to become resourceful and resilient, to create purposeful lives for themselves and to fulfil their potential. This shift has necessitated a change in how we evaluate our service, so this year we implemented a new impact framework designed around the Work Star, an evaluation tool designed specifically for use with adults out of work or returning to the workplace.

We invested in our frontline team (both in terms of numbers and training) this year so we can work towards the ambitious goal set out in our strategy of supporting 1000 women per year within three years. It’s vital that the team have the expert knowledge – for example around criminal records and DBS checks – that they need in order to deliver the best possible service for women, and so that they can bring a fully trauma-informed approach to their work with clients. We also trained our employability team in coaching skills and developed the careers coaching model that we had committed to in our strategy. This will enable staff to work with women to identify their strengths and aspirations, so that they can head confidently towards a fulfilling career.

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Report from our Chief Executive and Chair of Trustees For the year ended 31 August 2021

Working Chance has come through this strange year stronger than ever. We continued to support women throughout the pandemic, including women we had previously supported into work who had been made redundant or furloughed, with an uncertain future. We supported our staff with the logistical, technological and wellbeing challenges presented by being catapulted into home working. We learned that we can support women remotely which meant that our ambition to work with many more women outside London became a reality this year.

For the past 12 years, Working Chance has been a trailblazer in helping women with convictions to find meaningful work and to turn their lives around. Nationally, the reoffending rate for women in the UK is 21%, and for women who have been in prison on a short sentence, that leaps to 58%. The women that we support into employment almost never reoffend - there was only one recorded instance in the past year. Employment and hope for the future really do make all the difference, which is why what we do is absolutely vital.

Our work is only possible with the generous support of our funders, all of whom we thank and look forward to continued collaboration with. This year we were delighted to be chosen by the philanthropic collective Impact 100 London as their main beneficiary; our partnerships with Barclays and the Chanel Foundation also made a big difference to what we were able to achieve.

Our committed staff and trustee board are determined that Working Chance will continue to grow its reach and impact, with the generous support of funders, stakeholders and all those who help us spread the word to women with convictions and to employers about our unique, life-changing work.

Lin Hinnigan, Chair of Trustees Natasha Finlayson, Chief Executive

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Trustees’ annual report For the year ended 31 August 2021

TRUSTEES’ ANNUAL REPORT

The Trustees present their report and the audited financial statements for the year ended 31 August 2021.

Reference and administrative information set out on page 43 forms part of this report.

OBJECTIVES AND ACHIEVEMENTS

Since 2009, we have been pioneers in our sector and supported thousands of women to find employment and economic empowerment.

We are the UK’s only employment charity solely for women with convictions. We envisage a society in which no woman is held back by a conviction, and where each woman has the support, encouragement and opportunities she needs to reset her life and thrive.

For the women we work with, a job is more than an income – it offers the hope of a future where they can flourish and contribute to society. The benefits of our work extend far beyond each individual woman we support and her immediate family, representing significant cost savings for the state and safety benefits to the general public through reduction in reoffending.

We also influence policymakers, employers and the public to help them understand why women offend in the first place, and offer policy solutions that address the structural and systemic causes of many women’s offending.

The way that we collect, measure and interpret our impact data is becoming more robust each year, with significant investment in our impact and evaluation function. We look forward to reporting in future years in an even more meaningful way.

This report looks at what Working Chance achieved in 2020/21.

“I AM WHO I AM TODAY BECAUSE OF WORKING CHANCE. IT HELPED ME TO DEVELOP MY SELF-ESTEEM AND TO BELIEVE IN MYSELF ONCE MORE. IT WAS A SECOND LIFELINE. GENUINE WOMEN WITH ALL THE GOOD INTENTIONS TO SUPPORT WOMEN IN THEIR DARKEST HOUR.”

-AMEERA, WORKING CHANCE CLIENT

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Trustees’ annual report For the year ended 31 August 2021

EMPLOYABILITY SUPPORT

Our employability workshops and bespoke one-to-one sessions help to build the confidence of the women we support in a non-judgmental, trauma-responsive atmosphere, as well as teaching specific employability skills. In this first year of our strategy, we aimed to support 225 women. We exceeded this, supporting 243 women with their employability which was a remarkable achievement given the challenges of remote delivery during the pandemic.

For those women for whom the effects of trauma are a barrier to their employability, we offer psychotherapy provided by therapists whose specialism is working with women who have been in prison. Seventeen women received therapy through us this year compared with ten the year before.

86% of our clients said they now feel more hopeful about the future

We supported 135 women through our core employability service, and a further 108 from partner charities.

86% 243 rated our support women supported 5 out of 5

“I REALLY ENJOYED THE WORKSHOP ON MAKING A DISCLOSURE TO A POTENTIAL EMPLOYER. I WAS SO NERVOUS AT THE BEGINNING - WHAT HAPPENED TO ME ISN’T A NICE THING TO DISCUSS. BUT THE SESSION WAS FUN AND FULL OF INFORMATION. I NOW FEEL A LITTLE MORE CONFIDENT AND A LITTLE LESS ASHAMED.”

JASMINE, WORKING CHANCE CLIENT

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Trustees’ annual report For the year ended 31 August 2021

Lisa’s story

“I have multiple convictions from over the years and I used to really struggle with addiction. I had trouble finding a job because of my criminal record, but Working Chance helped me to see what my options were, and found so many fantastic opportunities.

Over the years, I came into repeated contact with the police and the criminal justice system, after I was taken into care when I was 12. Once I’d grown up and left care, the father of my children was murdered. That was when I started using drugs - to deal with the pain of it. By the time I found Working Chance I had ten convictions and no idea where to start to turn my life around. I had been reliant on benefits for years, but I wanted to be financially independent. After years of things happening to me, I was ready to take control.

Working Chance supported me to get ready for work. One of the advisors supported me to write my CV, to develop my interview skills, and to practise answering interview questions. She also helped me to learn how to disclose my convictions to potential employers. She helped me to see that what happened could be presented in a way I was happy with, to tell the story in a way that made me look strong instead of a victim.

Once I was ready to look for a job, they were able to find me an interim role - it was parttime, and a step on my journey towards the full-time work I really wanted.

Now I’m in full-time work at an energy company thanks to Working Chance and it’s so rewarding. I finally feel proud of what I’m doing - plus the money at the end of the month means I’m not operating in survival mode. I feel like I’m finally free.”

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Trustees’ annual report For the year ended 31 August 2021

GETTING WOMEN INTO WORK

When women who have completed our employability programme are ready to enter employment, we work closely with them to find jobs that align with their skills and career aspirations. Most of these are with employers who are keen that their workforces are diverse and inclusive, and who therefore have some understanding of the needs and challenges that women with convictions may experience.

Despite the effect on the recruitment market of the pandemic from March 2020 onwards, we supported 56 women with convictions into paid employment, which not surprisingly is fewer than the number of women we supported into work last year (77) and lower than our target of 75. However, as we emerge from the pandemic, we are seeing the number of women we support into jobs increase as employers struggle to fill vacancies, and we are hopeful that we can help to make this a permanent change in the employment landscape.

Of the women we supported into employment, there was only one recorded incident of reoffending, compared with four in the previous year.

Caroline’s story

“During an acrimonious divorce my ex-partner let himself into my house, and we ended up having an argument – a fight. The police were called, we were both arrested, and I received a caution.

I wish that was the end of it. But after spending 30 years in a job in the health and social care sector, all of a sudden, I’m someone “with a conviction”. I’m 61, scared of technology, and I hadn’t written a CV in years. I heard about Working Chance on the radio and was so pleased there was something out there for people like me.

After sitting with a caution or a conviction for a long time, you start believing what people say about you. There’s a lot of prejudice and I felt really ashamed for a long time, even after going to counselling.

The Working Chance team helped me in lots of ways – with my CV, with how to make a disclosure, with getting ready for an interview.

I used to really struggle to talk about what happened – so having to tell a potential employer about it all during a job interview was really daunting. I’d get emotional and find myself blubbing. Working Chance helped me with that, and now I can speak about it in a way where I find that I don’t get so emotional.

My advisor at Working Chance showed me that I had more experience than I thought I did – so-called soft skills that I didn’t even realise were skills. She encouraged me to be more ambitious in my job search and apply for jobs at manager level. In summer 2021 I succeeded in getting a senior level role. After the knocks I’d faced, I didn’t think I had the confidence to do that.”

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Trustees’ annual report For the year ended 31 August 2021

CAPTURING OUR IMPACT

This year we introduced a new case management database to help ensure that each woman we work with receives a tailored approach that is right for her, and so that we can track trends and themes in our work.

We also started to use a new evaluation model, Work Star, which allows us to improve the way we measure and demonstrate our impact, as well as enabling us to learn where and how we can do better.

At three points in a client’s journey, she rates how she feels about her progress across seven key areas of life that are important in gaining and keeping a job.

In 2020/21:

82%

of our clients saw an improvement in their job skills and experience

64%

86%

95%

68%

saw an saw an saw an improvement in improvement in improvement in their aspiration and their job-search their stability motivation skills

86%

45%

saw an saw an saw an improvement in improvement in improvement in their basic skills – their workplace and their health and maths, English, and social skills wellbeing IT skills needed for the sort of job they want

Clients have also begun to tell us that analysing their progress in this way is a helpful exercise in itself. They can see how far they have come, and identify any areas where more support would be useful.

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Trustees’ annual report For the year ended 31 August 2021

COMMUNICATIONS AND MARKETING

The public consciousness around criminal justice is predominantly punitive, resulting in a highly negative view of people with convictions - despite the fact that over 11 million people in the UK have a criminal record. It is particularly difficult for women to overcome the prejudice and labelling that comes with a conviction, because of the heightened expectations that society places on women to be pro-social and caring.

We are a small charity, but we can have a big voice. It is a core part of our mission to help shift attitudes towards women with convictions and to raise awareness about the issues that often underlie women’s offending. This year we invested in our capacity to do this, establishing a small communications team, creating a new website and launching our newly refreshed brand.

This investment in our marketing has already paid dividends in helping us to explain clearly and compellingly to a range of audiences what we do, why it works and how they can engage with us in our mission to improve the lives of women with convictions. Our new strapline, ‘Unlocking Women’s Potential’, speaks to our mission and makes the gender-specific nature of our service clear.

In 2020/21, 19,107 people visited our website. From September to February – this was our old website, but in March we launched a new website, incorporating our refreshed brand and with entirely new content. From March to end of this reporting year it was visited by 11,445 people - almost as many visitors in those six months alone as the old website received in the entirety of 2019/20 (12,619).

As a result of our social media activity, our awareness among employers and professional audiences increased dramatically this year: our LinkedIn following saw a 65% increase in 12 months (980 to 1624). Our reputation in the sector, as well as contact with policymakers and journalists was enhanced by our Twitter output, with an 18% increase in our Twitter following over the year.

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Trustees’ annual report For the year ended 31 August 2021

POLICY INFLUENCING

We work with policymakers and politicians to share our knowledge about what helps women with convictions to secure employment, and about the systems and barriers that hold them back. Policy highlights this year included:

RESEARCH INTO RACISM IN THE CRIMINAL JUSTICE SYSTEM

This year saw the launch of our research report Worst-Case Scenario: How racism in the criminal justice system harms women’s chances of finding work.

We released the report at an event in June 2021, attended on Zoom by over 150 policymakers and professionals from the criminal justice sector. Based on new analysis and the lived experiences of women we have supported, the report highlights the barriers faced by racially minoritised women with criminal convictions when they look for jobs. It also provides recommendations for the government and employers to combat employment discrimination on the basis of gender, race, and criminal record.

As well as generating media coverage, the report and the findings made their way into parliamentary questions and the Ministry of Justice, as we presented our recommendations to the Ministry of Justice’s Female Offender Minority Ethnic Group. The National Police Library added the report to their online library collection.

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Trustees’ annual report For the year ended 31 August 2021

LIVED EXPERIENCE ADVOCACY

The voices of women with lived experience of the criminal justice system are too often overlooked or ignored. We want to be part of a movement that enables advocacy for women with convictions that is at least informed by lived experience, and at best led by it.

Our vision is that the challenges faced by women with lived experience of the criminal justice system are presented in their own words to policymakers, so that there is a stronger chance that policy takes account of these women’s needs. This is why our new strategy committed us to creating opportunities for women with convictions to inform policy briefings, feed into consultations and inquiries and give evidence to policymakers, ensuring that their interests and perspectives are heard.

We committed in our strategy to establishing an advisory group of women with convictions to inform development and delivery of our policy positions. We launched the group, ‘Changemakers’, in June and this year it has focused on recommendations to policymakers on how Universal Credit needs to change so that it no longer adversely affects the employment chances of women like themselves. Members of the group have been given training on campaign planning, public speaking, and how to maintain mental wellbeing when using their own lived experience in policy influencing work.

The Changemakers’ launch video received over 4,000 views on social media. Their stories were featured in national media and they have been invited to speak to the All Party Parliamentary Group (APPG) on Universal Credit in autumn 2021.

The first year of the Changemakers project has been made possible through the kind support of the Lloyds Bank Foundation.

Sonja’s story

“I know what it’s like to have a conviction. I've experienced the negativity, the judgements, and everything that’s gone with that. I don’t think you can understand the impact a conviction has without living through it. I want my experience to help others, especially women leaving the criminal justice system. I first got on benefits after I lost my job because of my criminal conviction. I've since moved on and have been working as a care worker for the last three years. But when that job ended, I didn’t have a choice but to apply for Universal Credit again. I've worked my whole life, and I've paid my taxes. It's just that I'm currently at a point where I need help.

As tough as it has been, I'm realising that my experience of going through the criminal justice system is an asset. I’m now at a point where I can speak up, and I want my voice to make a difference. That's why I recently started my degree part-time. I’m studying Criminology, Psychology, and Social Justice with the hope of bringing a criminal justice and mental health perspective to the work I do in the care sector. That's also why I wanted to join Changemakers.

Women with convictions need and deserve more support. I believe that the whole system needs an overhaul, and we can change things for the better.”

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Trustees’ annual report For the year ended 31 August 2021

COVID-19

Women with convictions felt the impact of the pandemic particularly hard. Jobs that were already scarce and difficult for them to access disappeared entirely, and attending our employability programme needed to be juggled alongside home-schooling children and increased pressures at home.

In August 2021 we started to return to our London office. After 18 months of perfecting the art of the Zoom workshop, and growing our remote service in regions outside London, we had to answer the question: what sort of workplace do we want to be? We are now a ‘hybrid’ workplace, balancing the many benefits of home working alongside time when we come together to collaborate in our London office. From the start of 2022 we look forward to welcoming clients back to our office, too.

The charity has emerged from the pandemic in a stronger position and with a more comprehensive employability offer for women with convictions than before. The employment landscape is shifting, with many employers prepared to take a chance on a new untapped pool of talent. We will capitalise on this opportunity to convince employers that women with convictions deserve a chance all the time, not just when labour shortages force a change of heart.

Fortunately, the Covid pandemic has not negatively affected our funding or our costs, and we have continued to receive support from our funders during this difficult time.

PUBLIC BENEFIT STATEMENT

The Trustees have considered the Charity Commission’s Public Benefit requirements and believe Working Chance meets its objectives by virtue of its ongoing work to empower women with convictions to cross the social divide from lives of exclusion to lives of contribution.

By assisting these women to secure employment, develop their career prospects and become financially autonomous, the charity’s work has a real, lasting and positive impact, not only on the lives of the women it supports, but on the community more broadly – representing significant cost savings for the state and benefits to society generally through a reduction in reoffending.

FUNDRAISING

Each year we rely on our supporters to enable us to transform the lives of hundreds of women. We are committed to being fully transparent and accountable about how our donations and grants are used. We share the impact of our work with our supporters and donors on a regular basis.

This year all fundraising was done in-house, with the exception of engaging a freelance specialist to support development of our individual giving strategy. This strategy will begin delivery in 2021/22. We did not receive any complaints about our fundraising. We keep up to date with changing regulation and ensure we comply with it by changing processes if needed. Working Chance is a member of the Fundraising Regulator.

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Trustees’ annual report For the year ended 31 August 2021

FINANCIAL REVIEW

Where our income comes from

----- Start of picture text -----
Other, 2%
Donations, 9%
Statutory , 15%
----- End of picture text -----

----- Start of picture text -----
Grants, 74%
----- End of picture text -----

What we spent our funds on

----- Start of picture text -----
Fundraising,
8%
Influencing,
29%
Delivery of
service, 63%
----- End of picture text -----

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Trustees’ annual report For the year ended 31 August 2021

Income this year dropped slightly compared to last year although we raised more than we expected at the start of the year. As planned, we invested in our delivery and communication teams, building our staff base to support more women and increase our influencing activities. Our expenditure grew significantly over the year and our net surplus for the year was £11k (2020: £246k).

Total income for the financial year was £856k (2020: £933k), a decrease of 8% on the prior year mainly reflecting grant agreements that came to an end during the year. Grant income remains our main source of income at 74% (2020: 81%). We continued to have strong relationships with our funders and we are continually seeking out new funding opportunities. Our total other income of £82k (2020: £110k), including donations and trading income, was less than last year as we wound down our furlough scheme and therefore received less Coronavirus Job Retention Scheme (CJRS) income.

Our expenditure increased significantly to £845k (2020: £687k), an increase of 23% over the previous year as we expanded teams in line with our organisational strategy, implemented other commitments in that strategy and launched our communications strategy.

This year, we improved the way we reported on expenditure by splitting our charitable costs according to our key activities of influencing and service delivery. Our service delivery costs relate to our direct work with women and our influencing work aims to create better informed and more empathetic attitudes about women with convictions and to shift policy and practice. Overall, once support costs had been allocated, we spent 63% of our costs on delivery of service and 29% on influencing, alongside 8% on fundraising.

The small surplus for the year meant that our total reserves remained broadly in line with last year at £1,028k (2020: £1,017k) at the end of the year. This reserve will be used to ensure we remain sustainable and provides us with an opportunity to invest in capacity building in order to increase our impact. See below for further details on our reserves.

Working Chance’s balance sheet remains healthy. We do not foresee any cashflow problems as we continue to hold the majority of our reserves in cash (liquid assets).

RESERVES

In light of the continuing uncertainty stemming mainly from the pandemic, the Trustees feel it is prudent to hold a higher level of reserves in order to maintain our resilience in a volatile, unpredictable external environment, in particular to mitigate risks to future income.

Last year, the Trustees approved a temporary change to the reserves policy which required us to maintain free reserves equivalent to at least nine months of expenditure, an increase of three months compared with 2019. This enables the charity to be managed efficiently, to provide for termination costs, should the need arise, as well as to mitigate against unexpected shortfalls.

The board reviews the level of reserves on a quarterly basis to ensure that they are adequate to meet the policy and fulfil our continuing obligations.

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Trustees’ annual report For the year ended 31 August 2021

Trustees have continued to support holding nine months of expenditure during, and at the end, of 2021 and will continue to monitor the need of holding nine months of reserves over the coming year.

At the end of August 2021, our total reserves were £1,028k (2020: £1,017k). Our free reserves were £905k (2020: £836k), equivalent to nine months’ expenditure from the total 2021-22 budgeted spend and therefore just within our policy.

In 2019 the Trustees created a designated fund of £200k to support strategic development. This year we used part of this fund to support the Communications team as part of our strategic aim to increase influencing activity alongside spend on our brand and social media footprint. Next year we will continue to utilise this fund to embed and deliver on our strategy.

Total reserves also included restricted funds of £1k (2020: £2k); these funds are to be used for specific purposes as requested by the donor.

Further detail on reserves is given below in note 17 to the accounts.

GOING CONCERN

Management have reviewed funding for the coming year and, at the time of writing this report, we have secured 82% of grant funding for 2021-22. We will continue to bid for new opportunities and explore new partnerships. We have recently recruited a new fundraiser who will focus on Trusts and Foundations as well as help us to develop our individual giving activities and corporate partnerships. We also intend to use some of the reserves next year to fund our delivery.

Based on the information above, the Board are confident that Working Chance will be able to continue for 12 months from signing without material uncertainties and therefore consider Working Chance to be a going concern.

INVESTMENTS

Our investment objective is to maintain sufficient liquidity of funds and their overall value in order to ensure that the charity can be managed effectively and to mitigate against unexpected shortfalls.

As at 31 August 2021, Working Chance had cash deposits of £1,203k (2020: £1,223k) representing primarily unrestricted reserves (see above section for more details on reserves).

Working Chance’s investment policy requires that deposits should be spread by counterparty, subject to maximum exposure of 40% of the total cash balance per institution. We monitor the distribution of cash among the banks on a monthly basis and as at 31 August 2021 we were within this limit across our bank accounts.

PRINCIPAL RISKS AND UNCERTAINTIES

The Trustees and executive management of Working Chance believe that sound risk management is integral to both good management and good governance practice.

A Finance and Assurance Committee (FAC) was established in 2019 and during the year, we reviewed our approach to risk management within Working Chance.

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Trustees’ annual report For the year ended 31 August 2021

We refreshed our risk management policy to ensure it was fit for purpose and undertook a full review of the risk management framework to ensure risk management is fully embedded into everything we do.

We identified and analysed our key strategic risks in five areas (governance, external, regulatory, financial, operational) and prioritised these based on their impact and likelihood. We also developed a risk appetite statement which was agreed by the Board to describe our approach to risk in key areas such as service delivery, finance and influencing activity.

Alongside our existing risk management framework, the following new processes are now in place to ensure risk management is embedded across the organisation and that key risks are monitored effectively.

This year we identified one of our key risks as a decrease in charitable impact due to achieving fewer placements if we fail to deliver a sufficient level of ‘matching’ between a) the vacancies we have available through the employers we work with and b) our clients, in terms of their job preferences, skills, aspirations and geographical location. A number of mitigating measures have been put in place such as promoting the vacancies that we have available more effectively to our clients, and we are hopeful that we can maximise the chances of having vacancies available that our clients want to apply for and have a realistic chance of being successfully appointed to.

In terms of financial risks, ensuring sustainability is a priority looking forwards. To manage this, the executive team work to ensure that enough funding is secured to cover running costs. Our fundraising focus is on securing larger multi-year grants to ensure continuity and financial security. A reserves policy requiring that a minimum level of core expenditure cover is maintained also helps to mitigate this risk. During 2021 we developed weighted income pipelines which allow us to better identify and manage any uncertainties around income.

There is also a financial risk around exposure to a banking crisis and the loss of funds. This is mitigated by our investment policy and in particular the requirement to have no more than 40% of cash in any one banking Institution.

Other risks include safeguarding, data protection, cyber security and health and safety. We are committed to providing a safe environment for everyone and continue to review all our safeguarding policies and related procedures to ensure they are in line with the latest guidance and ensure that all staff and Trustees receive appropriate training. During the year, we were pleased to gain Cyber Essentials Plus certification, which forms part of our mitigation against cyber-security threats.

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Trustees’ annual report For the year ended 31 August 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Working Chance was incorporated as a company limited by guarantee on 6 August 2009 and registered as a charity on 24 September 2009. It is regulated by its Memorandum and Articles of Association.

The Articles set out that the charity was established to support socially disadvantaged members of our community. The Working Chance mission evolved from those objects – namely to empower women with convictions to fulfil their potential and reintegrate into mainstream society by helping them to develop their employability and self-belief and find a job they can thrive in.

Working Chance applies and follows the Charity Governance Code (for smaller charities) which was refreshed in December 2020. The Board of Trustees has collective responsibility for everything that the charity does, including the legal responsibility to ensure it is controlled and properly managed. The Board delegates responsibility for operational management to the Chief Executive. The Chief Executive leads the senior management team to develop plans, policies and processes following the Board’s advice and approval.

The Board of Trustees is responsible for the strategic direction of the charity and meets quarterly together with the Chief Executive and senior management team to review progress and to ensure the charity is on track to meet its objectives.

All Trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 8 to the accounts.

APPOINTMENT OF TRUSTEES

The directors of the company are also charity Trustees for the purposes of charity law. Under the requirements of the Memorandum and Articles of Association:

The Directors shall be appointed by ordinary resolution of the Members at a General Meeting or AGM and the Directors shall nominate in writing all individuals to be considered for appointment as Directors. Each Director

• may serve one or more terms in office but shall not be eligible to hold office as a Director for more than six consecutive years without a resolution of the Members at a General Meeting or AGM for up to an additional year under exceptional circumstances.

In an effort to maintain a broad skill mix, the Board of Trustees reviews its effectiveness regularly and in the event of particular skills being needed individuals are recruited to the Board.

When recruiting new Trustees, we always seek to increase the diversity of the Board, particularly with regard to lived experience of the criminal justice system and ethnicity.

During 2020-21, three Trustees retired from the Board and one new Trustee was appointed. Another Trustee was appointed in the period from the end of the year to the signing date, and two further individuals were appointed to Trustee roles pending decisions from the Charity Commission regarding exemptions for specific individuals with criminal records. Trustees serving in 2020-21 are listed on page 43.

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Trustees’ annual report For the year ended 31 August 2021

TRUSTEE INDUCTION AND TRAINING

We ensure that new Trustees receive any training they need associated with their legal obligations under charity and company law and the requirements of the Charity Commission.

In addition, they are provided with a full induction pack containing information about the charity focused on its mission, strategy, structure and performance. They also spend time with the Chair and key staff to gain a greater understanding of the Charity.

Trustees are given opportunities throughout the year to meet staff and service users through participation in planned events, service visits, workshops and staff presentations to the Board, although this year the majority of this activity was carried out virtually.

RELATED PARTIES AND RELATIONSHIPS WITH OTHER ORGANISATIONS

None of our Trustees receive remuneration or other benefit from their work with the charity. Any connection between a Trustee or senior manager of the charity with other industry-related bodies or organisations must be disclosed to the full Board of Trustees, in the same way as any other contractual relationship with a related party. In the current year no such related party transactions were reported.

REMUNERATION POLICY FOR KEY MANAGEMENT PERSONNEL

It is important for Working Chance to pay competitive, market-median salaries in the sectors and locations where it employs people. Base pay rates are benchmarked on a continuous, ad-hoc basis through our recruitment processes against sector pay movements and annually against inflationary indices; organisational affordability is also taken into account. Working Chance competes for labour in a variety of job markets and so one benchmark is difficult to identify.

Remuneration for the Chief Executive and senior management team is approved by the Remuneration Committee. The remuneration ratio for the charity, defined as the multiple between the highest pay to median pay in the organisation, is considered as well as external market conditions for the specific roles.

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Trustees’ annual report For the year ended 31 August 2021

All Working Chance employees are paid above the London living wage as defined by the Living Wage Foundation.

The Remuneration Committee is a Sub-Committee of the Board of Trustees. It meets at least once a year to review remuneration policy and to provide scrutiny to remuneration decisions.

PLANS FOR THE FUTURE

Our three-year strategy sets out an ambitious target – that by the end of 2023 we will be in a position to support around 1000 women a year. Our three key areas of focus over the next two years therefore must be increasing enquiries and referrals coming in to our service; moving women through the service at a pace that is right for them but also efficient and outcomes-focused; and ensuring that we have a sufficiently broad range of vacancies (both in terms of role and location) to maximise the number of women we are able to support into employment.

In recent months, as Covid restrictions lift and labour shortages make themselves felt, we have seen an exponential increase in the number of employers contacting us to enquire about hiring women with convictions. This is a moment of opportunity for us to help the more risk-averse employers to take a chance and do things differently, and to ensure that we do everything we can to make this a permanent shift towards more inclusive hiring policies and practice.

A key part of our mission is to change the attitudes of employers (and the wider public) towards the employment of women with convictions, which is why next year we will start a major market research project establishing and tracking any change in employers’ attitudes towards hiring people with convictions, with a particular emphasis on specifically women. We will survey 1000 employers (and interview a sample of them in depth) and share our findings about their views and feelings about bringing people with convictions into their workforces.

We will continue to champion the involvement of women with lived experience both within our charity and in the criminal justice sector more broadly. We will increase the proportion of our trustees who have lived experience to ensure that we are more representative of the women we serve. We will launch the Working Chance Advisory Panel, which is a paid opportunity for women with convictions to influence our work – in particular the design, delivery and promotion of our service. 2021/22 will also see the launch of the debut campaign from the ‘Changemakers’ policy advisory group.

In the next year we will also undertake more original research. As part of this we will look into the employability provision offered by the prison and probation services, assessing quality and gaps. We will make policy and practice recommendations to help ensure that the system works and keeps the unique needs of women in mind.

We will hold two roundtables with opinion-formers in the business world to share thinking around ways to improve the employment of women with convictions. By the end of 2022, we aim to be the ‘go to’ organisation for media looking to do pieces on the employment of women with convictions, and to achieve this we will adopt a more proactive approach to building relationships with relevant journalists.

We will continue to live our value of partnership and will collaborate with and support other organisations who share our vision. We will participate in joint campaigning and build relationships that facilitate referral pathways for women who need our service

20

Trustees’ annual report For the year ended 31 August 2021

from women’s centres, other charities, prisons and the probation service. We look forward to delivering more and better for the women we serve and, alongside our sector colleagues, to continuing to improve life outcomes for women who find themselves caught up in the criminal justice system.

STATEMENT OF RESPONSIBILITIES OF THE TRUSTEES

The Trustees (who are also directors of Working Chance for the purposes of company law) are responsible for preparing the Trustees’ annual report including the strategic report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company 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 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.

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 total number of such guarantees at 31 August 2020 was 5 (2019, 8). The Trustees are members of the charity but this entitles them only to voting rights. The Trustees have no beneficial interest in the charity.

21

Trustees’ annual report For the year ended 31 August 2021

AUDITOR

Sayer Vincent LLP was appointed as the charitable company's auditor during the year and has expressed its willingness to continue in that capacity.

The Trustees’ annual report has been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

The Trustees’ annual report has been approved by the Trustees on 15 December 2021 and signed on their behalf by:

Lin Hinnigan Chair of Trustees

22

Independent auditor’s report

INDEPENDENT AUDITOR’S REPORT

OPINION

We have audited the financial statements of Working Chance Limited (the ‘charitable company’) for the year ended 31 August 2021 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

CONCLUSIONS RELATING TO GOING CONCERN

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 Working Chance Limited’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 other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on

23

Independent auditor’s report

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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

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

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual 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 TRUSTEES

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

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless

24

Independent auditor’s report

the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

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

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 extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

CAPABILITY OF THE AUDIT IN DETECTING IRREGULARITIES

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

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. This risk increases the more that compliance with a law or regulation is removed from the events and transactions

25

Independent auditor’s report

reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

USE OF OUR REPORT

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

Noelia Serrano (Senior statutory auditor)

Date: 9 February 2022

for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

26

Statement of financial activities For the year ended 31 August 2021

STATEMENT OF FINANCIAL ACTIVITIES

(Incorporating an income and expenditure account) For the year ended 31 August 2021

Note
Income from:
Donations and legacies
2
Charitable activities
3
Other trading activities
4
Investments
Other grant income
5
Total income
Expenditure on:
Raising funds
6
Charitable activities
6
Delivery of services
Influencing
Total expenditure
Net movement in funds
Reconciliation of
funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
£
72,848
493,788
1,306
30
8,561
576,533
70,240
298,964
195,856
565,060
11,473
1,015,105
1,026,578		 Restricted
£
-
279,684
-
-
-
279,684
-
228,222
51,982
280,204
(520)
1,776
1,256		 2021
Total
£
72,848
773,472
1,306
30
8,561
856,217
70,240
-
527,186
247,838
845,264
10,953
1,016,881
1,027,834		 Unrestricted
£
71,274
473,467
3,443
2,078
33,163
583,425
76,565
144,145
104,013
324,723
258,702
756,403
1,015,105		 Restricted
£
-
349,669
-
-
-
349,669
-
322,460
39,613
362,073
(12,404)
14,180
1,776		 2020
Total
£
71,274
823,136
3,443
2,078
33,163
933,094
76,565
466,605
143,626
686,796
246,297
770,583
1,016,881

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 17a to the financial statements.

27

Balance sheet For the year ended 31 August 2021

BALANCE SHEET

As at 31 August 2021

Company number: 06331809

Note
Fixed assets:
Tangible assets
12
Current assets:
Debtors
13
Cash at bank and in hand
Liabilities:
Creditors: amounts falling due within
14
one year
Net current assets
Total net assets
The funds of the charity:
17
Restricted income funds
Unrestricted income funds:
General funds
Designated funds
Total unrestricted funds
Total charity funds		 £
69,888
1,203,456
1,273,344
(255,280)
913,193
113,385		 2021
£
9,770
9,770
1,018,064
1,027,834
1,256
1,026,578
1,027,834		 £
49,313
1,222,869
1,272,182
(263,549)
844,481
170,624		 2020
£
8,248
8,248
1,008,633
1,016,881
1,776
1,015,105
1,016,881

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

Approved by the trustees on 15 December 2021 and signed on their behalf by

Lin Hinnigan Chair

28

Statement of cash flows For the year ended 31 August 2021

STATEMENT OF CASH FLOWS

For the year ended 31 August 2021

Note
Cash flows from operating
activities
Net cash provided by operating activities
Adjustments for:
Interest receivable
Depreciation
Loss/(profit) on sale of fixed assets
Increase in debtors
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 (used in) investing activities
Change 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		 £
10,953
(30)
3,522
343
(20,574
)
(8,269)
30
(5,388)		 2021
£
(14,055)
(5,358)
(19,413)
1,222,869
1,203,456		 £
246,298
(2,078)
4,261
-
(40,996
)
(71,496)
2,078
(4,179)		 2020
£
135,989
(2,101)
133,888
1,088,981
1,222,869

Notes to the financial statements

NOTES TO THE FINANCIAL STATEMENTS

1 ACCOUNTING POLICIES

a) Statutory information

Working Chance Limited is a charitable company limited by guarantee and is incorporated in the United Kingdom.

The registered office address (and principal place of business) is; Working Chance Limited, Claremont Building, 24-27 White Lion Street, LONDON, N1 9PD.

b) Basis of preparation

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

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

c) Public benefit entity

The charity meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

The trustees have also considered the impact of Covid 19 on the charity and do not consider there is any impact on the charity's ability to continue as a going concern (see Trustee's Report for detail on the temporary change in reserves policy). e) Income

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

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

Legacy income is recognised when the charity believes there is entitlement, receipt is probable and the amount can be measured reliably.

f) Donations of gifts, services and facilities

30

Notes to the financial statements

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

On receipt, donated gifts, 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.

g) 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.

h) Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes that are freely given and without specified purpose.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

i) 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. Expenditure is classified under the following activity headings:

⚈ Costs of raising funds relate to the costs incurred by the charity in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose, and any associated support costs.

Expenditure on charitable activities is split between the following categories:

⚈ Expenditure on direct delivery charitable activities includes the cost of delivering the front line service to women, undertaken to further the purposes of the charity, monitoring and evaluation costs and any associated support costs

⚈ Expenditure on influencing activities includes our work to create better informed and more empathetic attitudes about women with convictions and to shift policy and practice along with any associated support costs.

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

j) Allocation of support costs

Support and governance costs are allocated to charitable activities and fundraising based on the percentage of total cost attributable to that activity.

Governance costs are costs incurred in relation to constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

k) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

l) Tangible fixed assets

31

Notes to the financial statements

Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

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:

⚈ Fixtures, fittings, equipment and computer equipment (4 years)

m) 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.

n) 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.

o) Creditors and provisions

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.

p) Pension

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged in the Statement of Financial Activities in the year they are payable.

q) Termination Benefits

Termination benefits are payable when employment is terminated before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The charity recognises termination benefits when it is demonstrably committed to either (i) terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or (ii) providing termination benefits as a result of an offer made to encourage voluntary redundancy.

32

Notes to the financial statements

2 INCOME FROM DONATIONS AND LEGACIES

INCOME FROM DONATIONS AND LEGACIES
Gifts
Gift Aid tax reclaims
Gifts in kind		 2021
Total
£
49,743
3,000
20,105
72,848		 2020
Total
£
61,480
555
9,239
71,274

Income from donations and legacies was £72,848 (2020: £71,274) all of which is unrestricted income.

Gifts in kind income comprised the receipt of free counselling and life coaching sessions for candidates alongside free computers in the current financial year. These are valued at the amount the charity would have to pay to acquire. An equivalent charge is included in expenditure.

3 INCOME FROM CHARITABLE ACTIVITIES

Grants
Partnership Programme
Statutory - government grant income
Statutory - delivery of services
Total for charitable activities		 2021
Total
£
636,950
4,000
60,000
72,522

773,472		 2020
Total
£
758,820
8,000
56,316
823,136

Income from charitable activities was £773,472 (2020: £823,136) of which £279,684 (2020: £349,669) was attributable to restricted and £493,788 (2020: £473,467) was attributable to unrestricted funds. All restricted income is accounted for within grant income of £636,950 (2020: £758,820).

33

Notes to the financial statements

4 INCOME FROM OTHER TRADING ACTIVITIES

4
INCOME FROM OTHER TRADING ACTIVITIES
Employer placement fees
All income from trading activities is unrestricted.
5
OTHER GRANT INCOME
Coronavirus Job Retention Scheme		 2021
Total
£
1,306

1,306
2021
Total
£
8,561
8,561		 2020
Total
£
3,443
3,443
2020
Total
£
33,163
33,163

An amount of £8,561 was claimed from the Coronavirus Job Retention Scheme (JRS) for furloughed members of staff in September 2020 and October 2020.

34

Notes to the financial statements

6A ANALYSIS OF EXPENDITURE (CURRENT YEAR)

This year, we have split our charitable activity into our delivery of service costs (which relates to our frontline work and direct work with women) alongside our influencing work to create better informed and more empathetic attitudes about women with convictions and to shift policy and practice. The prior year figures have been re-stated to reflect this split.

Staff costs (Note 8)
Other staff costs
Direct costs
Monitoring and evaluation
Marketing and Advocacy
Premises
Office running
Information technology
Insurance
Telephone
Depreciation and loss on disposals
Subscriptions
Other Expenditure
Support costs
Governance costs
Total expenditure 2022
Total expenditure 2021		 Raising
funds
£
47,555
-
2,488
-
-
-
-
-
-
-
-
-
-
50,043
16,893
3,304
70,240
76,565		 Charitable activities
Delivery of
services
Influencing
£
£
325,148
151,622
23,625
2,348
28,719
-
11,607
-
-
29,475
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
389,099
183,445
115,500
53,860
22,587
10,533
527,186
247,838
466,605
143,626		 Governance
costs
£
28,144
-
8,280
-
-
-
-
-
-
-
-
-
-
36,424
-
(36,424)
-
-		 Support
costs
£
74,698
29,997
3,276
-
-
31,838
17,388
11,198
3,480
6,882
3,866
3,150
480
186,253
(186,253)
-
-		 2021
Total
£
627,167
55,970
42,763
11,607
29,475
31,838
17,388
11,198
3,480
6,882
3,866
3,150
480
845,264
-
-
845,264
-		 2020
Total
restated
£
478,814
57,818
37,365
660
35,445
27,117
22,296
8,644
2,692
9,500
4,261
2,104
80
686,796
-
-
-
686,796

35

Notes to the financial statements

6B ANALYSIS OF EXPENDITURE (PRIOR YEAR RESTATED)

Staff costs (Note 8)
Other staff costs
Direct costs
Monitoring and evaluation
Marketing and Advocacy
Premises
Office running
Information technology
Insurance
Telephone
Depreciation and loss on disposals
Subscriptions
Other Expenditure
Support costs
Governance costs
Total expenditure 2020		 Raising funds
£
48,377
1,570
1,018
-
-
-
-
-
-
-
-
-
-
50,965
20,115
5,485
76,565		 Charitable activities
Delivery of
services
Influencing
£
£
284,119
70,744
20,264
-
11,210
-
660
-
-
35,445
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
316,253
106,189
118,136
29,416
32,216
8,021
466,605
143,626		 Governance
costs
£
23,865
21,857
-
-
-
-
-
-
-
-
-
-
45,722
-
(45,722)
-		 Support
costs
£
51,709
35,984
3,280
-
-
27,117
22,296
8,644
2,692
9,500
4,261
2,104
80
167,667
(167,667)
-
-		 2020
Total
£
478,814
57,818
37,365
660
35,445
27,117
22,296
8,644
2,692
9,500
4,261
2,104
80
Delivery of
services
£
284,119
20,264
11,210
660
-
-
-
-
-
-
-
-
-
316,253
118,136
32,216
466,605
686,796
686,796

36

Notes to the financial statements

7 NET INCOME FOR THE YEAR

This is stated after charging / (crediting):

Auditor's remuneration: Audit
Under accrual for prior year
Depreciation
Loss on disposal of tangible fixed assets
Operating lease payments: Land and buildings		 2021
2020
£
£
7,100
7,400
(340)
449
3,522
4,261
343
-
29,249
24,569

8 ANALYSIS OF STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES, AND THE COST OF KEY MANAGEMENT PERSONNEL

Salaries and wages
Social security costs
Pensions		 2021
£
543,055
54,452
29,660
627,167		 2020
£
424,055
36,717
18,045
478,817

There was one redundancy payment made in the year totalling £2,467 (2020: £nil) which is included in salaries and wages above, and none (2020: nil) outstanding at year end. The number of employees receiving employee benefits (excluding employer pension costs and employer's national insurance) greater than 60,000 are:

2021 2020
No. No.
£70,000 - £79,999 - 1
£80,000 - £89,999 1 -

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £277,936 (2020: £183,037).

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2020: £nil) although £25 was incurred by during the year relating to a gift to a trustee. No charity trustee received payment for professional or other services supplied to the charity (2020: £nil).

9 STAFF NUMBERS

The average monthly head count was 19 staff (16 excluding people on maternity leave) (2020: 14 staff). The average monthly number of full-time equivalent employees (including furloughed staff and staff on maternity leave) during the year was as follows:

and staff on maternity leave) during the year was as follows:
Delivery of services
Influencing
Raising funds
Support		 2021
No.
11.3
3.4
1.0
1.2
16.9		 2020
No.
restated
8.3
1.7
1.0
1.6
12.6

During the year, 4 members of staff were furloughed in September and October 2020 as a result of the Covid 19 pandemic.

37

Notes to the financial statements

10 RELATED PARTY TRANSACTIONS

There were no related party transactions during the year. Some trustees of Working Chance are also employed by organisations that have worked with or funded the charity. The trustees have no financial interest in these transactions.

There were no donations from related parties which were outside the normal course of business and no restricted donations from related parties. The total donations given by the charity trustees in the year was £2,000 (2020: £2,120).

11 TAXATION

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

12 TANGIBLE FIXED ASSETS

ANGIBLE FIXED ASSETS
Cost
At the start of the year
Additions in year
Disposals in year
At the end of the year
Depreciation
At the start of the year
Charge for the year
Eliminated on disposal
At the end of the year
Net book value
At the end of the year
At the start of the year		 IT
£
41,522
5,388
(26,401)
20,509
33,379
3,417
(26,057)
10,739
9,770
8,142		 Fixtures,
fittings and
equipment
£
12,915
-
(1,107)
11,808
12,809
106
(1,107)
11,808
-
106		 Total
£
54,437
5,388
(27,508)
32,317
46,188
3,522
(27,164)
22,547
9,770
8,248

All of the above assets are used for charitable purposes.

13 DEBTORS

Trade debtors
Other debtors
Prepayments
Accrued income		 2021
£
14,350
2,664
16,864
36,010
69,888		 2020
£
1,000
13,814
16,189
18,310
49,313

38

Notes to the financial statements

14 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Taxation and social security
Pension liability
Accruals
Deferred income		 2021
£
31,950
15,645
4,712
31,153
171,820
255,280		 2020
£
6,696
10,285
3,293
28,829
214,446
263,549

15 DEFERRED INCOME

Deferred income comprises of grants received in advance alongside income for delivery of services relating to a future period.

Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year
Balance at the end of the year		 2021
£
214,446
(214,446)
171,820
171,820		 2020
£
295,054
(295,054)
214,446
214,446

16A ANALYSIS OF NET ASSETS BETWEEN FUNDS (CURRENT YEAR)

Tangible fixed assets
Net current assets
Net assets at 31 August 2021		 Designated
funds
£
-
113,385
113,385		 General
unrestricted
£
8,514
904,679
913,193		 Restricted
£
1,256
-
1,256		 Total
funds
£
9,770
1,018,064
1,027,834

16B ANALYSIS OF NET ASSETS BETWEEN FUNDS (PRIOR YEAR)

Tangible fixed assets
Net current assets
Net assets at 31 August 2020		 Designated
funds
£
-
170,624
170,624		 General
unrestricted
£
8,248
836,233
844,481		 Restricted
£
-
1,776
1,776		 Total
funds
£
8,248
1,008,633
1,016,881

39

Notes to the financial statements

17A MOVEMENTS IN FUNDS (CURRENT YEAR)

Restricted funds:
Barclays
Blackrock
Fondation Chanel
Capital Group
Charles Hayward
Foundation
The Clothworkers'
Foundation
Lloyds Bank
Foundation
The Smallwood Trust
The Tolkien Trust
Total restricted funds
Unrestricted funds:
Designated Funds
General
funds
Total unrestricted
funds
Total funds		 At 1 Sept
2020
£
-
-
-
-
-
1,776
-
-
-
1,776
170,624
844,481
1,015,105
1,016,881		 Income &
gains
£
100,000
18,492
91,961
8,100
8,332
-
6,133
30,000
16,666
279,684
-
576,533
576,533
856,217		 Expenditure
& losses
£
(100,000)
(18,492)
(91,961)
(8,100)
(8,332)
(520)
(6,133)
(30,000)
(16,666)
(280,204)
(57,239)
(507,821)
(565,060)
(845,264)		 Transfers
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 At 31 Aug
2021
£
-
-
-
-
1,256
-
-
-
1,256
113,385
913,193
1,026,578
1,027,834

Purposes of restricted funds (current year)

Restricted Description, nature and purposes of funds the fund Barclays Funding of salaries and related costs. Blackrock Funding of salaries related to confidence workshops. Fondation Chanel Funding of delivery of service and influencing salaries and other project costs Charles Hayward Funding of salaries and related costs. Foundation The Clothworkers' Funding of equipment. Foundation Capital Funding of salaries to develop self-employment opportunities for Group women Lloyds Bank Funding of influencing salary and delivery costs relating to our Foundation Changemaker project. The Smallwood Funding of salaries and related costs. Trust The Tolkien Trust Funding of influencing salaries and related costs.

Purposes of designated funds (current year)

The Trustees set aside a designated fund of £200k in 2018-19 to be spent on the new strategy being developed for 2020 and beyond. So far, we have spent £87k of this fund building the capacity in our influencing team and supporting the strategic initiatives to

40

Notes to the financial statements

build awareness and better promote our service to women and employers. We intend to spend the rest during 2021-22 continuing to develop our strategic influencing activities and support our employability offering to more women.

17B MOVEMENTS IN FUNDS (PRIOR YEAR)

Restricted funds:
Barclays
Blackrock
Fondation Chanel
Charles Hayward
Foundation
The Clothworkers'
Foundation
Esmée Fairbairn
Foundation
Lloyds Bank
Foundation
The Rayne Foundation
RG Foundation
The Smallwood Trust
Big Potential Fund
City Bridge Trust
The Pilgrim Trust
The Tolkien Trust
Total restricted funds
Unrestricted funds:
Designated Funds
General
funds
Total unrestricted
funds
Total funds		 At 1 Sept
2019
£
-
-
-
-
-
-
-
-
-
14,180
-
-
-
14,180
200,000
556,403
756,403
770,583		 Income &
gains
£
66,667
8,016
31,277
24,996
9,500
29,835
24,999
4,800
30,080
30,000
-
41,166
15,000
33,333
349,669
-
583,425
583,425
933,094		 Expenditure
& losses
£
(66,667)
(8,016)
(31,277)
(24,996)
(7,724)
(29,835)
(24,999)
(4,800)
(30,080)
(30,000)
(14,180)
(41,166)
(15,000)
(33,333)
(362,073)
(29,376)
(295,347)
(324,723)
(686,796)		 Transfers
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 At 31 Aug
2020
£
-
-
-
-
1,776
-
-
-
-
-
-
-
1,776
170,624
844,481
1,015,105
1,016,881

Purposes of restricted funds (prior year)

Restricted funds which expired in prior year included below

Restricted funds Esmée Fairbairn Foundation The Rayne Foundation RG Foundation Big Potential Fund The Pilgrim Trust City Bridge Trust

Description, nature and purposes of the fund

Funding of salaries and related costs.

Funding of salaries and related costs. Funding of salaries and related costs. To support Working Chance to become investment ready. Funding of our work with care leavers with convictions Funding of salaries and related costs, this is now funded as Unrestricted

41

Notes to the financial statements

18 OPERATING LEASE COMMITMENTS PAYABLE AS A LESSEE

The charity's total future minimum lease payments under non-cancellable operating leases is as follows:

Less than one year
More than one year		 Property
2021
2020
£
£
36,447
35,732
36,447
-
72,894
35,732		 Property
2021
2020
£
£
36,447
35,732
36,447
-
72,894
35,732
35,732

19 LEGAL STATUS OF THE CHARITY

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

42

References and administrative information

REFERENCES AND ADMINISTRATIVE INFORMATION

Company number 06331809
Country of incorporationUnited Kingdom

Charity number		 1131802
Country of registration
(England & Wales, Scotland or Northern Ireland)

Registered office and
Claremont Building
operational address 24-27 White Lion Street
London
N19PD

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:
Lin Hinnigan Chair
Ciara Plunkett Vice Chair and Treasurer
Tijs Broeke resigned on 14th April 2021
Erica Handling
Lady Emma Hood resigned on 14th July 2021
Daksha Stancilas resigned on 24th September 2020
Caroline Bald appointed on 10th December 2020
Ami Jenick appointed on 13th October 2021

Key management		 Natasha Finlayson Chief Executive
staff Ruth Daniells Head of Finance (from 2 November 2020)
Katy Doolan Head of Recruitment (left 3rd November 2021)
Lizzy Jewell Head of Communications and Engagement (from
7 December 2020)
Helen Sweet Head of Employability
Richard Rowley Head of Strategic Partnerships (from 7th June
2021)
Bankers The Co-Operative Bank
CAF Bank
PO Box 250 25 Kings Hill Avenue
Delf House Kings Hill
Southway West Malling
Skelmersdale Kent
WN8 6WT ME19 4TA
Unity Trust Bank
23 Great Russell Street
London
WC1B 3UB

Auditor		 Sayer Vincent LLP
Chartered Accountants and Statutory Auditor
Invicta House
108-114 Golden Lane
LONDON
EC1Y 0TL

THANK YOU TO OUR SUPPORTERS

Acrisure London Wholesale Acrisure Re

City Bridge Trust

The JAC Trust

The Clothworkers’ Lloyds Bank Foundation Foundation The Emmanuel Kaye Ministry of Justice Foundation

Barclays

Esmée Fairbairn BlackRock Oak Foundation Foundation The Smallwood Brown Dog Fund Fondation CHANEL Foundation Garfield Weston Capital Group Tolkein Trust Foundation Charles Hayward Impact 100 London The Tomoro Foundation Foundation

Vicky Pryce

Lady Emma Hood

Working Chance Claremont Building 24 - 27 White Lion Street London N1 9PD info@workingchance.org

workingchance.org @working_chance @workingchance /workingchance /company/workingchance

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