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2021-03-31-accounts

Code 7 Limited

REGISTERED COMPANY NUMBER: 05362713 (England and Wales) REGISTERED CHARITY NUMBER: 1138411

Report of the Trustees and Unaudited Financial Statements for the Year Ended 31 March 2021 for

Code 7 Limited

Code 7 Limited

Contents of the Financial Statements for the Year Ended 31 March 2021

Page
Report of the Trustees 3-9
Independent Examiner'sReport 10
StatementofFinancialActivities 11
BalanceSheet 12
Notes to theFinancialStatements 14-16
Detailed StatementofFinancialActivities 17

Code 7 Limited

Report of the Trustees

For the Year Ended 31 March 2021

The Trustees present the report and financial statements of Code 7 for the year ended 31 March 2021.

Legal and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, including the Statement of Recommended Practice: Accounting and Reporting by Charities (issued in March 2019).

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number 05362713 (England and Wales)

Registered Charity number 1138411

Registered office 11 Ashmere House London Acre Lane London SW2 5UQ

Trustees

S Lisbie (Chair) F Aniatu Kallay (Secretary) A McGregor (Treasurer)

Business Consultant Lee A Law CEO A Senator Director N Cayenne Independent examiner Abraham and Associates Ebenezer House 41 Clarence Street Southend-On-Sea England SS1 1BH

Bankers Lloyds TSB Bank Plc Head Office 25 Gresham Street London EC2V 7HN

Structure, Governance and Management

Governing Document

The organisation is a charitable company limited by guarantee, incorporated on 14 February 2005 and registered as a charity on 14 October 2010. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £10.

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Code 7 Limited

Recruitment and Appointment of Management Committee

The directors of the company are also charity trustees for the purposes of charity law and under the company’s articles are known as members of the Management Committee. Under the requirements of the Memorandum and Articles of Association the members of the Management Committee are elected to serve for a period of three years after which they must be re-elected at the next Annual General Meeting.

One of the board members Nyal Cayenne is a newly appointed director (April 2018) and is the youngest member of the board at 21. A former service user at Code 7, he is studying at college and works as a self-employed businessman. Lee-Ann Law Lee-Ann is a business consultant and works in high level businesses and companies. She has intense experience of operating businesses, especially in terms of project management and transfers her exceptional skills to ensure Code 7’s governance is regulated, monitored and evaluated thoroughly.

All members of the Management Committee give their time voluntarily and receive no benefits from the charity. Any expenses re-claimed from the charity are set out in the expenses note in the accounts.

Mr Stuart Lisbie , Miss Anne McGregor , Miss Fatmata Aniatu Kallay, Mr Nyal Cayenne , and Mrs Lee - Ann Law retire by rotation and, being eligible, offer themselves for re-election.

Due to the nature of mediation, the charity’s work inevitably focuses on young people. The Management Committee seeks to ensure that the needs of this group are appropriately reflected through the diversity of the trustee body. To enhance the potential of the pool of trustees, the charity has, through selective advertising via word of mouth with young people, sought to identify the young people who show good potential and interest in becoming a future board member.

Mr Joel Demming who was a previous member of the board and Mr Nyal Cayenne are prime examples, emerging from engaging as young men on workshops, then as trainees and finally becoming board members.

The more traditional business, financial and health skills are well represented on the board. To ensure that we maintain a wide range of skills, members of the board are requested to provide a list of their skills. We update the skills list yearly and identify where we need to replace skills before retirements, etc, from the board.

We currently have 5 voting board members and a membership consisting of 14 non-voting members. The non-voting members make up the numbers when required at board meetings, events, seminars, etc.

Trustee Induction and Training

All trustees are familiar with the practical work of the charity as they visit the Training Suite where work is delivered randomly. The trustees hear and see the productions of the young people and at first hand get to examine the work of the staff and volunteers. The trustees attend our open days which are promoted and delivered at least four times a year.

Along with physical training, the trustees have received their training in form of DVDs and online. This is relayed at board meetings so the other trustees can see how training went with the others.

The trustees also receive training from their workplaces (i.e. Accountants, etc) which enables all trustees to be able to share alternative learning with each other.

Our induction process consists of a Question & Answer pack, skills assessment, needs assessment, rules and regulations of a trustee documentation, health & safety procedures, and reference sections, and every new trustee must undergo this process.

Risk Management

The Management Committee has conducted a review of the major risks to which the charity is exposed. We have a risk register which is reviewed and updated annually. Where necessary, systems or procedures have been established to mitigate the risks the charity faces. Risks to external funding have led to the development of strategic self-sufficient fund raising which will enable the charity to continue even if funds are delayed or not forthcoming.

Procedures are in place to ensure safety of the trustees, staff, volunteers and our young service users. These procedures are also reviewed annually.

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Code 7 Limited

Organisational Structure

The charity has a board of five voting members and a membership of 14, a service operational management team of two and a service operational team of five. The CEO has the duty to manage the day to day operations of the charity and the CEO reports all work, issues and challenges back to the board.

Related Parties

With the charity’s work becoming more intense with the many issues that the young service users bring along with them, it is important that we associate ourselves with relevant parties.

Our trustees and management serve on other boards such as Lambeth Youth Violence Forum.

Being a part of these other groups opens the charity to work and/or funding opportunities that can, will or do benefit the charity

Our Aims and Objectives

Purpose and Aims

Our charity’s purpose as set out in the objects contained in the company’s memorandum of association is: “To advance in life and relieve needs of young people through providing support and activities which develop their skills, capacities and capabilities to enable them to participate in society as mature and responsible individuals”

The aims of our charity are to take young people’s passion for music and creative arts and nurture and channel this into the development of practical, useful and marketable skills. We provide an opportunity for young people to develop the skills necessary for success in a wide variety of careers, whether directly in music or in other sectors.

Our aims fully reflect the purposes that the charity was set up to further.

Ensuring our Work Delivers our Aims

Every year we produce an annual report which contains a review of our aims, objectives and activities for the completed year. The review looks at what we achieved and the outcomes of our work in the previous twelve months.

We also ensure that all funding applications that we create and submit adhere closely to the purpose in our charity’s memorandum and articles.

The people whom we employ or take on as volunteers, all go through our induction process which includes them agreeing and signing up to our ‘Code 7 Core-Values’ mission. Our core-values are to Know, Want, Learn, Share, Help, Deliver and Care, which are specially designed to communicate how our staff and volunteers are expected to work with our project users always.

Our core-values help us to ensure that all our activities and our work continue to compliment and follow our aims and objectives as stated in our memorandum and articles. Our core-values also stand as a guideline for future-planning to guarantee that our focus remains within the boundaries of our charity’s aims and objectives while implementing future plans

The Focus of our Work

Our prime objectives for the year was to provide activities in music, media and performing arts and to contribute a service of mentoring, mediation, education, training and tuition for under-privileged young people in South London and surrounding Boroughs that do not have access to mainstream provision.

We delivered these activities and services by:

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Code 7 Limited

How our activities deliver public benefit

Below is a chart which identifies to whom and how Code 7’s activities deliver public benefit:

Public and Wider Public Beneficiaries How They benefit
All young people, aged 18 and under and from
all geographical areas, backgrounds, cultures,
races, etc, who: -
- Seek education in music and multimedia
- Have ambitions and aspirations to
engage in music and multimedia
- Would like to participate in running youth
projects and live events
- Want to gain skills in work experience
- Love to produce audio and visual
product		 These young people benefit by: -
• Receiving their teaching and development from experienced community and
industry staff and volunteers
• Gaining accredited and achievement certificates
• Using quality equipment that produces professional product
• Gaining services many of them would not be able to afford
• Working in an environment which enables them to progress personally
• Having an opportunity to better themselves while engaging in positive activities
which are popular and they love and enjoy
All young adults, aged 19 to 30 and from all
geographical
areas,
backgrounds,
cultures,
races, etc, who: -
- Have ambitions to improve their skills and
knowledge in business and enterprise
- Need support to gain the right skills to seek a
career in the multimedia industry
- Want to develop their product for
commercial use		 These young adults benefit by: -
• Using quality equipment, resources and facilities
• Gaining accredited and achievement certificates
• Improving their chances for employment or running a business
• Having an opportunity to better themselves while engaging in positive activities
which they demand, love and enjoy
Parents/Carers Parents/Carers benefit by: -
• Having extra activities to help keep their children/young people diverted from
boredom on the streets
• Having another platform to be able to bond with their children/young people (i.e.
approving and signing induction/policy documents, attending showcases, open
days,events,etc)
Community Residents Community residents benefit from: -
• The changes in the young people’s mind sets and behaviour which help residents
to be safer
• Being able to attend open days and presentations where they talk to young people
and gain more understanding of their aspirations which helps build community trust
• Volunteering to give something back to the community which gives residents self
satisfaction and accomplishment
• Participating in activities themselves which help them to develop their skills and
education also
Senior Community Residents Our senior community residents benefit from: -
• Our lovable staff and volunteers who happily help them with shopping and bag
carrying, etc
• Having activities nearby which keep their minds active as they always enquire
about what is new
• Having a service, which is nearby, where they can come to or call when they need
some help quitequickly (i.e. water leaks,lost keys,swollen andjammed doors,etc)
Police The police benefit by utilising the service to build better relations with the young
people, i.e. –
• Holding question & answer sessions
• displaying newsletters
• liaising with staff/volunteers/youths
• attending performances/events
• actingas talentjudges on talentquests,etc
Local Councils (Lambeth/Hackney) The local councils benefit by utilising the service to be able to reach the young
people so they can continue to strategise and implement new and improved youth
services,i.e. –

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Code 7 Limited

• EYS (Electronic Youth Service)
• CAF (Common Assessment Framework)
• Safeguarding (for children and young adults), etc
The local councils also benefit: -
• By funding young people led projects, which helps bring awareness to the young
people of the councils’ commitments to them
• By having an alternative service where they can refer young offenders
• From having a structure whereby they can know every young person and how
theyare beingengaged
Schools/Colleges Schools and Colleges benefit: -
• From having a specialised music and multimedia service where they can send
their pupils/students to gain hands on and live experience
• From having a service they can call on to curve difficult young people and help
put them back on track with their behaviour and education (i.e. Code 7 engaged 3
male pupils at Mitcham Vale Secondary School who were set to fail their GCSEs in
music, which would obviously affect their route into college. Code 7’s input helped
to steer these 3young people back on track and allgained the requiredgrades)
Businesses - Local businesses benefit from the continued relations built through the continuity
of our service which helps them to generate more business
- Local shop owners liaise with us in terms of minor difficulties with young people
and we act on these accordingly creating better understandings between them and
the young people
- Shop owners sponsor various projects with us and in turn advertise their trade
- Clothes shop owners have loaned clothes to young people to perform in videos so
theycan advertise their brands
Health Departments of the health sector benefit from implementing projects and also
advertising through our services to the young people, i.e. –
• Lambeth NHS have funded a sexual health project through Code 7 which engaged
30 young people
• Lambeth NHS funded a music therapy programme called ‘Music Healing’
• Lambeth NHS display their advertisement leaflets with us Code 7 has also
provided pilot workshops and specialised programmes for young men and woman
with mental health issues.
Housing Code 7 have built relations with various parts of the housing sector and they benefit
by having a specialised music and multimedia service they can call on to help
maintain community relations amongst their residents, i.e.
‐Penrose Housing Association have funded history workshops for young people at
Code 7
‐Look Ahead Hostels have funded portable music workshops for their residents on
their Aldgate and Earls Court sites and always book our portable Christmas Party
Service every year
Transport The funds that we apply for include travel costs which continues to help support,
and benefit,the transport industry
Other Community Organisations,
Groups & Projects		 Other community organisations, groups and projects benefit: -
• By working together with Code 7 which helps them to broaden their young people
client group
• By gaining access for their young people client group to services and facilities
they may not have or are able to afford
• By gaining strength and more recognition from being a part of a consortium
• By joiningtogether in fundingapplications to helpmaintain their services
Funding Organisations Funding organisations benefit by being able to fund an organisation which has a
proven track record of engaging many hard to reach young people and reporting to
the standards set. Funding bodies have seen the benefits and continue to fund Code
7,whether it is in a long-term contract or in small, yearlyfundingapplications.

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Code 7 Limited

The trustees are mindful of the public benefit tests for charities, and confirm they have complied with the duty in section 4 of the Charities Act 2006 to have due regard to public benefit guidance published by the Charities Commission.

Financial Review

We are working with a professional consultant with the intention to maximise our income generation. We have faced difficult periods but have worked hard to secure continued and further funding.

Principle funding sources

Below is a list of our funding/income and approximate grant amounts for the year to 31 March 2021: -

Investment Policy

Under the Memorandum of Association, the charity has the power to make any investment which the trustees see fit. The funds held by the charity during the year under review were not sufficient to justify separate investment, other than to be placed on deposit with the charity’s bankers.

We are currently working with professional consultants to enable us to maximise our capacity in investments and reserves.

Reserves Policy

As the funds we receive are mainly grants, the expenditure usually caters for the actual projects we delivered for that particular funder. This makes it difficult for us to contribute money to investment or reserves, although this is an area we are keeping under review.

We are now in the process of implementing procedures to enable us to transfer small investments into our reserves and we aim to build upon this gradually. Our work with professional business consultants will enable us to increase the potential of our reserves. A percentage of the donation that was received in this financial year, 2020-21, was transferred to our reserves.

Plans for Future Periods

The charity plans to continue the work set out in our memorandum and articles and mission statement over the coming years once funding permits.

We look forward to completing our London Youth Quality Mark with Rocket Science and still aim to raise funding to reapply for PQASSO Quality Mark Level 1 and Level 2 thereafter, to ensure the company maintains high quality standards at board level, and in operational management and project delivery.

We are working with Lambeth Council to secure long-term premises for Code 7.

Code 7 is now operating within a Public Health context which ensures our future provisions have the best possible foundations to help us create and sustain positive change in our community.

Responsibilities of the Management Committee

Company law requires the Management Committee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year. In preparing those financial statements, the Management Committee should follow the best practice and:

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Code 7 Limited

The Management Committee is responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. The Management Committee is 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.

Members of the Management Committee

Members of the Management Committee, who are directors for the purpose of the company and trustees for the purpose of charity law, who served during the year and up to the date of this report are set out on page 1.

Small Company Provisions

This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (issued in March 2005) and in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime.

Approved by the Management Committee on 22/12/2021 and signed on its behalf by:

S Lisbie - Chair

On behalf of the trustees’ board

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Code 7 Limited

Independent Examiner's Report to the Trustees of Code 7 Limited

I report to the charity trustees on my examination of the accounts for the year ended 31 March 2021 set out on pages eleven to seventeen.

Respective responsibilities of trustees and examiner

As the charity’s trustees of the Company (who are also the directors of the company for the purposes of company law), you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (“the 2006 Act”).

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

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention which gives me cause to believe that:

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

Xavier Abraham FCCA

Abraham and Associates Chartered Certified Accountants Ebenezer House, 41 Clarence Street Southend on Sea Essex, SS1 1BH

Date : 14/01/2022

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Code 7 Limited

Statement of Financial Activities

for the Year Ended 31 March 2021

Notes
INCOMING RESOURCES
Incoming resources from generated
funds
Voluntary income
RESOURCES EXPENDED
Charitable activities
Governance costs
Other resources expended
Total resources expended
Tax charges
NET INCOMING/(OUTGOING)
RESOURCES BEFORE TRANSFERS
Gross transfers between funds
9
Net incoming/(outgoing) resources
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED
FORWARD		 31.03.21
Unrestricted
Restricted
Total
fund
funds
funds
£
£
£
75,282
135,254
210,536
149,925
149,925
1,170
1,170
30,984
-
30,984
32,154
149,925
182,079
-
-
-
43,128
(14,671)
28,457
(19,725)
19,725
-
23,403
5,054
28,457
(6,511)
11,144
4,633
16,892
16,198
33,090		 31.03.20
Total
funds
£
96,326
84,982
1,140
9,924
96,046
-
280
-
280
4,353
4,633

11

Code 7 Limited

Balance Sheet

At 31 March 2021

Notes
FIXED ASSETS
Tangible assets
5
CURRENT ASSETS
Debtors
6
Cash at bank
CREDITORS
Amounts falling due within one year
7
NET CURRENT ASSETS/(LIABILITIES)
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amounts falling due after more than one year
8
NET ASSETS/(LIABILITIES)
FUNDS
9
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Unrestricted
Restricted
fund
funds
£
£
-
23,973
1,453
-
34,813
-
36,266
-
(6,366)
-
29,900
-
29,900
23,973
(20,863)
-
9,037
23,973		 31.03.21
Total
funds
£
23,973
1,453
34,813
36,266
(6,366)
29,900
53,873
(20,863)
33,010
9,037
23,973
33,010		 31.03.20
Total
funds
£
18,919
1,453
1,016
2,469
(1,140)
1,329
20,248
(15,615)
4,633
(14,286)
18,919
4,633

12

Code 7 Limited

Balance Sheet - continued

At 31 March 2021

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2021.

The members have not required the charitable company to obtain an audit of its financial statements for the year ended 31 March 2021 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Co mpanies Act 2006 relating to small charitable companies and with the Financial Reporting Standard for Smaller Entities (effective April 2008).

The financial statements were approved by the Board of Trustees on 22/12/2021 and were signed on its behalf by:

S Lisbie

Trustee

The notes form part of these financial statements

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Code 7 Limited

Notes to the Financial Statements

for the Year Ended 31 March 2021

1. ACCOUNTING POLICIES

Accounting convention

The financial statements have been prepared under the historical cost convention, and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008), the Companies Act 2006 and the requirements of the Statement of Recommended Practice, Accounting and Reporting by Charities.

Incoming resources

All incoming resources are included on the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.

Resources expended

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

These are capitalised if they can be used for more than one year and are valued at cost. Depreciation is provided on the following rates.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

2. NET INCOMING/(OUTGOING) RESOURCES

Net resources are stated after charging/(crediting):

31.03.21 31.03.20
£ £
Depreciation- owned assets 4,241 4,118

3. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2021 nor for the year ended 31 March 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2021 nor for the year ended 31 March 2020.

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Code 7 Limited

Notes to the Financial Statements - continued

for the Year Ended 31 March 2021

4. STAFF COSTS

Wages and salaries
Noemployees received emolumentsin excess of £60,000.
5.
TANGIBLE FIXEDASSETS
Plant and
machinery
etc
£
Cost
At 1 April 2020
54,761
Additions
-
Disposals
-
At 31 March 2021
54,761
Depreciation
At 1 April 2020
52,434
Charge for the year
582
On disposals
-
At 31 March 2021
53,016
Net book value
At 31 March 2021
1,745
At 31 March 2020
2,327
6.
DEBTORS: AMOUNTS FALLINGDUEWITHINONE YEAR
Other debtors
7.
CREDITORS: AMOUNTS FALLINGDUEWITHINONE YEAR
Other creditors
8.
CREDITORS: AMOUNTS FALLINGDUEAFTERONE YEAR
Finance lease and HP contracts		 31.03.21
31.03.20
£
£
39,889
21,248
Motor
vehicles
Total
£
£
18,437
73,198
23,399
23,399
(18,437)
(18,437)
23,399
78,160
1,845
54,279
3,659
4,241
(4,333)
(4,333)
1,171
54,187
22,228
23,973
16,592
18,919
31.03.21
31.03.20
£
£
1,453
1,453
31.03.21
31.03.20
£
£
6,366
1,140
31.03.21
31.03.20
£
£
20,863
15,615

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Code 7 Limited

Notes to the Financial Statements - continued for the Year Ended 31 March 2021

9. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Current Assets
Restricted funds
Tangible fixed asset fund
TOTAL FUNDS		 Net
movement
Transfers
At 01.04.20
in funds
between
funds
At 31.03.21
£
£
£
£
(16,755)
43,128
(53,522)
(27,149)
2,469
33,797
36,266
(14,286)
43,128
(19,725)
9,117
18,919
(14,671)
19,725
23,973
4,633
28,457
-
33,090

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
TOTAL FUNDS		 Incoming
Resources
Movement in
resources
expended
funds
£
£
£
75,282
(32,154)
43,128
135,254
(149,925)
(14,671)
210,536
(182,079)
28,457

16

Code 7 Limited

Detailed Statement of Financial Activities for the Year Ended 31 March 2021

INCOMING RESOURCES
Voluntary income
Grants
Total incoming resources
RESOURCES EXPENDED
Costs of Charitable activities
Wages
Rent and utilities
Insurance
Workshops/subcontractors
Equipment
Project expenses
Support costs Management
Telephone
Postage and stationery
Fees
Other office expenses
Motor
Travel and subsistence
Staff pensions
Profit/loss on sale of fixed assets
Dep - Fixtures and fittings
Dep - Motor vehicles
Governance cost
Professional fees
Finance
Bank charges
Total resources expended
Net (expenditure)/income		 31.03.21
£
210,536
210,536
39,889
4,446
1,462
39,635
10,364
54,129
149,925
2,646
571
14,760
2,733
3,922
429
629
272
582
3,659
30,203
1,170
781
182,079
28,457		 31.03.20
£
96,326
96,326
21,248
1,659
1,433
56,300
2,678
1,664
84,982
2,579
366
922
490
2,283
1,138
107
(3,037)
776
3,342
8,966
1,140
957
96,045
281

17