2021-03-31-accounts - Sharedimpact

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SharedImpact (Company Limited by Guarantee)

Company Number 07551618 Registered Charity Number 1145471

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2021

SharedImpact CONTENTS

	Page
Trustees' Annual Report	1 - 4
Independent Auditor's Report	5 - 8
Consolidated Statement of Financial Activities	9
Consolidated Balance Sheet	10
Charity Balance Sheet	11
Consolidated Statement of Cash Flows	12
Notes to the Financial Statements	13 - 21

SharedImpact TRUSTEES' ANNUAL REPORT REPORT AND FINANCIAL STATEMENTS

SharedImpact is a charitable company limited by guarantee and incorporated as Company number 07551618, registered in England and Wales, on 4 March 2011 and listed on the Central Register of Charities under registration number Charity number 1145471.

The charity was established under, and is governed by, its Articles of Association. The directors of the charity are its trustees for the purposes of charity law and throughout this report are collectively referred to as 'the trustees'.

As set out in the Articles of Association, the trustees may be appointed for such terms as thought fit by the trustees.

Reference and administrative information

Trustees	P Cheng
	R North
Registered Office	9 Appold Street
	London
	EC2A 2AP
Auditors	Moore Kingston Smith LLP
	9 Appold Street
	London
	EC2A 2AP
Bankers	Barclays
	36/38 Park Royal Road
	London
	NW10 7JA
Solicitors	Charles Russell Speechlys LLP
	5 Fleet Place
	London
	EC4M 7RD
	Withers LLP
	20 Old Bailey
	London
	EC4M 7AN

SharedImpact TRUSTEES' ANNUAL REPORT (continued) REPORT AND FINANCIAL STATEMENTS

Report of the trustees for the year ended 31 March 2021

The trustees present their report along with the financial statements of the Trust for the year ended 31 March 2021.

The financial statements comply with statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice - Accounting and Reporting by Charities and have been prepared in accordance with Companies Act 2006 and Charities Act 2011.

Objects, Objectives, Governance and	The Objects of the Charity are the promotion of the efficiency and
Management	effectiveness of charities and the effective use of resources by charitable
	and non charitable bodies for such purposes in any part of the world as
	are exclusively charitable in accordance with the laws of England and
	Wales, by intervening to help restructure debt accrued to further charitable
	purposes, and by helping charities and non charitable bodies pursuing a
	charitable purpose to access funding solutions to help them to thrive for
	the benefit of the public.
Activities and Achievements	The activities in this operational period have continued to focus on
	building donor and charity relationships. Impact investment in the
	supported living sector is allowing a nascent sector to be nurtured which
	can benefit people with learning conditions and potentially transform their
	lives.
Impact of Covid-19	The Charity is largely sheltered by the effects of Covid-19 due to it's long-
	standing donor base, the charities ability to give grants which are are
	scaleable in line with its income and due to the level of reserves that it
	holds.
Public Benefit	As required by the Charities Act 2011, the trustees have referred to the
	Charity Commission's general guidance on public benefit when setting up
	the Trust. In shaping our objectives for the year and planning our
	activities, the trustees have considered the Charity Commission’s
	guidance on public benefit, including the guidance ‘public benefit: running
	a charity (PB2).’
Financial Review	Income for the year from donations and investments was £1,158,779
	(2020: £424,365) Total expenditure for the year was £661,448 (2020:
	£381,284) and donations and grants totalling £638,999 (2020: £335,041)
	were made. It is anticipated that donations will increase significantly in
	future as the Charity’s donor-advised fund platform is now fully
	operational, whcih has been demonstrated in the current year.
	All funds at the year end are unrestricted and the charity holds no
	restricted funds. At the year end the parent's reserves were £918,514
	(2020: £419,145) and unrestricted group reserves were £776,649 (2020:
	£273,286).
Risk Management	The major risks to which the Charity is exposed, as identified by the
	trustees, have been reviewed and the trustees are satisfied that the
	systems in place mitigate those risks.
	▪ There is a risk we will not attract sufficient philanthropic capital.
	Mitigation:we are pursing a range of approaches to reach out to
	philanthropists to explain the benefits of impact investing and the services
	we can provide.
	▪ There is a risk that the impact investments we make will not yield
	the impact we would like to see.
	Mitigation:we are pursing a range of approaches to reach out to
	philanthropists to explain the benefits of impact investing and the
	services we can provide.

SharedImpact TRUSTEES' ANNUAL REPORT (continued) REPORT AND FINANCIAL STATEMENTS

Report of the trustees for the year ended 31 March 2021

Future Plans	As the charity continues to build relationships with charities, donors and
	their wealth advisors it is looking to further its social investment activities,
	focussing primarily in the UK, to provide early-stage strategic support
	where alternative funding sources are unavailable. The current focus on
	supported living will be continued in partnership with trade and
	government agencies to maximise the impact that can be achieved.
Investment Policy and Performance	Under the Charity’s Articles of Association, the trustees have wide powers
	of investment in respect of the Charity’s assets. In recognition of their
	general duty of prudence and the need to have proper regard to the
	suitability of investments and the need to consider diversification, the
	trustees are, for the time being, holding any income in interest-earning
	bank accounts in order to keep the funds highly liquid. The trustees are in
	discussions with various fund managers with regards to developing the
	Charity's investment policy with a view to building a diversified portfolio.
Going concern	The Trustees have assessed whether the use of going concern is
	appropriate and made this assessment for a period of at least one year
	from the date of the approval of these financial statements. The Trustees
	have given due consideration to the effects of the Covid-19 outbreak and
	Brexit. Having reviewed forecasts prepared by management the Trustees
	are confident that the charity will continue to meet its obligations as they
	fall due and that therefore the going concern basis continues to be
	appropriate.
	A letter of support from the charity's Trustee Paul Cheng has been given
	stating that any amounts owed to him from the group will not be requested
	for a period of 12 months from the approval of these financial statements.
Reserves Policy	The trustees are currently considering the future plans and priorities of the
	Charity and will develop a more structured reserves policy in line with
	these development plans in the future. In the short term, the charity has
	minimal core costs and no staff or premises to support and has targeted a
	minimal level of reserves to cover these costs, which for the financial year
	ended 31 March 2021 was £20,000.
Key management	The trustees are not remunerated and the Trust has no employees.
Grant-Making Policy	The trustees assess prospective funding recipients by reference to the
	definitions of charitable activity provided by the Charity's regulators.
Appointment of new trustees	New trustees may be appointed by the trustees, to fill a vacancy or as an
	additional trustee. The Charity shall select appropriate trustees and
	provide them with an induction to acquaint them with the governance and
	policies of the Charity as well as what is expected of them in their new
	role. Additional training and/or information will be provided to the trustees
	on an ongoing basis.
	The charity acknowledges that the financial statements have been filed
	significantly later than anticipated and their actions have fallen below the
	required level of governance required from the Trustees. This was due to
	a number of exceptional circumstances and the Trustees are confident
	that they will be able to get the statutory reporting of the charity and its
	subsidiary up to date in the near future with the assistance of their
	professional advisors.

SharedImpact TRUSTEES' ANNUAL REPORT (continued) REPORT AND FINANCIAL STATEMENTS

Report of the trustees for the year ended 31 March 2021

Auditors

Moore Kingston Smith LLP have indicated their willingness to continue in office and in accordance with the provisions of the Companies Act, it is proposed that they be re-appointed as auditors for the ensuing year.

Statement of Trustees' Responsibilities

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

Company law requires trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company and of the incoming/outgoing 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:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP;
make judgements and estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping proper 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.

Audit information

So far as each of the trustees at the time the trustee's report is approved is aware:

there is no relevant information of which the auditors are unaware; and
they have taken all relevant steps they ought to have taken to make themselves aware of any relevent audit information and to establish that the auditors are aware of that information.

This report has been prepared in accordance with the special provisions relating to small entities within Part 15 of the Companies Act 2006.

Approved by the Trustees on:

…………………………………… P Cheng

Date: 21/06/2022

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF SHAREDIMPACT

Opinion

We have audited the financial statements of SharedImpact (the ’parent charitable company’) for the year ended 31 March 2021 which comprise the Group Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheets, the Group Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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:

give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 March 2021 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.

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

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

We have nothing to report in this regard.

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF SHAREDIMPACT

Opinions on other matters prescribed by the Companies Act 2006

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

the information given in the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
trustees’ annual report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent 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 where the Companies Act 2006 and the Charities Act 2011 require us to report to you if, in our opinion:

the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the Trustees’ Annual Report and from preparing a strategic report.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 4, 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 group and parent 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 the trustees either intend to liquidate the group or parent 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

We have been appointed as auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts.

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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF SHAREDIMPACT

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the group and parent charitable company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group and parent charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or parent charitable company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit report.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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 is detailed below.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF SHAREDIMPACT

Our approach was as follows:

We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council and UK taxation legislation.
We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 and, in respect of the consolidated financial statements, to the charity’s trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees those matters which 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 any party other than the charitable company, the charitable company’s members, as a body, and the charity’s trustees, as a body, for our audit work, for this report, or for the opinion we have formed.

Shivani Kothari, FCCA, DChA (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

9 Appold Street London EC2A 2AP

Date: 22/06/2022

Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.

SharedImpact Consolidated Statement of Financial Activities (incorporating the Income and Expenditure account) For the year ended 31st March 2021

Restricted Funds 300,000	Unrestricted Funds £ 844,295 14,484	Total 2021 Funds £ 1,144,295 14,484	Total 2020 Funds £ 399,337 25,028
300,000	858,779	1,158,779	424,365
300,000	361,448	661,448	381,284
300,000	361,448	661,448	381,284
- -	7,476 (1,444)	7,476 (1,444)	(10,180) 873
- -	503,363 273,286	503,363 273,286	33,774 239,512
-	776,649	776,649	273,286

All income and expenditure derive from continuing activities. The Consolidated Statement of Financial Activities includes all gains and lossed recognised in the year.

The notes on pages 13 to 21 form an integral part of these financial statements.

SharedImpact Consolidated Balance Sheet as at 31st March 2021

	Note	2021	2021	2020	2020
		£	£	£	£
Fixed assets
Investments	7		361,518		84,029
Social investments	8		648,000		419,243
			1,009,518		503,272
Current assets
Cash at bank and in hand		12,787		6,368
Debtors	9	16,595		16,595
		29,382		22,963
Creditors: amounts falling due
within one year	10	(262,251)		(252,949)
Net current liabilities			(232,869)		(229,986)
Total assets less current liabilities			776,649		273,286
Funds
Unrestricted funds
General Funds			776,649		273,286
			776,649		273,286

The directors acknowledge their responsibility for complying with the requirements of the Act with respect to accounting records and for the preparation of the financial statements. These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved and authorised for issue by the Board on 21/06/2022 Signed on their behalf by:

P Cheng Trustee Company Number 07551618

SharedImpact Charity Balance Sheet as at 31st March 2021

	Note	2021	2021	2020	2020
		£	£	£	£
Non current assets
Investments	7		361,518		84,029
Social investments	8		648,000		419,243
Current assets
Cash at bank and in hand		9,037		5,874
Debtors	9	1,000		1,000
		10,037		6,874
Creditors: amounts falling due
within one year	10	(101,001)		(91,001)
Net current assets/(liabilities)			(90,964)		(84,127)
Total assets less current liabilities			918,554		419,145
Funds
Unrestricted funds
General Funds			918,554		419,145
			918,554		419,145

Approved and authorised for issue by the Board on 21/06/2022 Signed on their behalf by:

P Cheng Trustee Company Number 07551618

SharedImpact Consolidated Statement of Cash Flows for the year ended 31st March 2021

Cash generated from operating activities Net cash provided by operating activities Cash flows from investing activities Purchase of social investments Impairment of social investments Conversion of social investments Repayment/transfer of social investments Net movement of cash held in investments balance Net cash outflow from investing activities Decrease in cash and cash equivalents in the year Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year Dividends and Interest from investments	2021 £ 491,935 14,484 (500,000) - (270,013) 270,013 - (485,516) 6,419 6,368 12,787	2020 £ (4)
		25,028 (98,330) 26,621 - - 371
		(46,310)
		(46,314) 52,682
		6,368

Reconciliation of net income to net cash flow from operating activities 2021 £ Net income for the reporting period 503,363 Adjustments for: (14,484) (Gain)/Loss on revaluation of investments (6,246) Decrease in debtors - Increase in creditors 9,302 Net cash provided by operating activities 491,935 Dividends and interest from investments		2020 £ 33,774 (25,028) 9,411 (15,594) (2,567)
		(4)

Analysis of cash and cash equivalents

Cash in hand Analysis of changes in net debt Cash Loans falling due within one year	At Cash 01/04/2020 flows

SharedImpact Notes to the Financial Statements For the year ended 31st March 2021

1 Accounting Policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention as modified by the revaluation of investments to market value and in compliance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard 102, "The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland" ("FRS 102") and the Charities Act 2011.

The financial statements are prepared in sterling which is the functional currency of the Group. Monetary amounts in these financial statements are rounded to the nearest pound. SharedImpact is a Public Benefit Entity as defined by FRS 102.

1.2 Basis of consolidation

The consolidated financial statements comprise the financial statements of SharedImpact and its trading subsidiary: SharedImpact Ventures Limited. The year end for SharedImpact and SharedImpact Ventures Limited are coterminous. The total income and expenditure of these entities is shown in the Statement of Financial Activities ("SOFA") and the detailed results of the trading subsidiary are disclosed in note 2 of the financial statements. The statements are consolidated on a line by line basis.

The subsidiary company’s assets and liabilities are consolidated in the Balance Sheet on a line-by-line basis.

1.3 Going concern

The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cause significant doubt on the ability of the charity to continue as a going concern. In particular the trustees have considered the charity's income from donations, which are adhoc in nature and forecasts and projections having taken account of the Covid-19 pandemic, which has now passed. Those beneficiaries in receipt of social investments have been particularly affected by the pandemic financially and there may be a consequential increase in impairments on existing social investments. The trustees take assurance that the charity has no long term significant liabilities or commitments and the making of grants is at the discretion of trustees where funds are available for distribution. In addition to this, a letter of support from the charity's Trustee Paul Cheng has been given stating that any amounts owed to him from the group will not be requested for a period of 12 months from the approval of these financial statements. The trustees are therefore satisfied the charity has adequate resources to continue in operation for at least twelve months from the approval of the financial statements. The charity continues to adopt the going concern basis in preparing its financial statements.

1.4 Income

All incoming resources are included in the Statement of Financial Activities when the Foundation is entitled to the income, the receipt is probable and the amount can be measured reliably. Income received in advance is deferred where it would be repayable if conditions are not met in the future.

1.5 Fund accounting

Unrestricted funds - these resources arise from grants and donations provided for unrestricted purposes and from accumulated surpluses and deficits in the operations for charitable purposes and are expendable at the discretion of the Trustees.

Restricted funds - these are funds that have restrictions imposed by donors and can only be applied for the particular purposes specified by donors.

1.6 Expenditure

Expenditure is classified under the principal categories of charitable expenditure. Irrecoverable VAT is treated as an expense. Charitable expenditure comprises of direct expenditure attributable to the Foundation. Where costs cannot be directly attributed, they have been allocated to activities on a basis consistent with the use of the resources.

Governance costs represent the audit fee and services provided by the charity’s legal advisors and any other expenditure related to governance or the strategic direction of the charity.

SharedImpact Notes to the Financial Statements For the year ended 31st March 2021

1.7 Investments

The Group has equity investments in listed and unlisted entities. Fixed asset investments are a form of basic financial instruments and are initially recognised at their transaction value and subsequently measured at fair value using the closing quoted market price or fair value (if unlisted). The Consolidated SOFA includes the net gains and losses arising on revaluations and disposals throughout the year, as investments are revalued to fair value continuously. The SOFA includes any realised or unrealised gain or loss during the year.

Impairments

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss terms unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

1.8 Social Investments

Programme related investments are included at the value of loans advanced to beneficiaries less any provision against those deemed irrecoverable. Social investments are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the loan, the estimated future cash flows have been affected, The impairment loss is recognised in the statements of financial activities.

These loans are considered to meet the conditions for exemption from the requirement to account for these under FRS 102 at amortised cost, as they meet the definition of public benefit entity concessionary loans; as such they are accounted for and their transaction value less impairment.

1.9 Foreign exchange

SOFA transactions have been converted at the spot rate on the date of transaction. All closing balances have been converted at the year end exchange rates.

1.10 Taxation

The charity has suffered no tax charge, as it is not subject to UK corporation tax on its charitable activities.

1.11 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.

1.12 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

With the exceptions of prepayments and deferred income all other debtor and creditor balances are considered to be basic financial instruments under FRS 102. See notes 9 and 10 for the debtor and creditor notes.

SharedImpact Notes to the Financial Statements For the year ended 31st March 2021

1.13 Key estimates and judgements

In preparing financial statements the Trustees are required to make certain judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and assumptions are based on historical experience and other known factors that are considered relevant. Actual results may differ from these estimates. Estimates and assumptions are reviewed on an ongoing basis, with revisions to accounting estimates being recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects both periods.

The Trustees consider the key area of judgement deemed to have the most significant effect on values recognised in the financial statements relates to the valuation of social investments and the valuation of financial investments. The charitable company makes an estimate of the recoverable value of social investments as part of an annual impairment review. The charity also makes an estimate of the fair value of unlisted investments.

A provision is considered against any potential irrecoverable or impaired investments at the financial year end at fair value.

SharedImpact Notes to the Financial Statements For the year ended 31st March 2021

2 Operating profit of trading subsidiary

The Charity owns 100% of the issued share capital of SharedImpact Ventures Ltd, a company incorporated in the United Kingdom and registered in England, company number 08154452.

The Company's income is made up of management fees received from the charity to pay for the expenses incurred by running the charitable activities of SharedImpact.

Its trading results for the year ended 31 March 2021 were as follows:

Profit and loss Turnover Administrative expenses Gain/(Loss) on ordinary activities before taxation Taxation Profit/(loss) for the year Balance Sheet Current assets Debtors Cash Creditors: amounts falling due within one year Net current liabilities Capital and reserves Called up shared capital profit and loss reserves 3 Net movement in funds Consolidated net income for the year is stated after charging: Audit fees Accountancy fees Other non audit fees 4 Donations and legacies Donations	2021 £ 26,000 (22,046) 3,954 - 3,954 25,595 3,750 29,345 (171,250) (141,905) 1 (141,906) (141,905) 2021 £ 11,040 4,896 1,656 2021 £ 1,144,295 1,144,295	2020 £ 36,484 (19,050)
		17,434 -
		17,434
		15,595 494
		16,089 (161,948)
		(145,859)
		1 (145,860)
		(145,859)
		2020 £ 10,584 3,302 708
		2020 £ 399,337
		399,337

Included within donations are restricted donations totalling £300,000 (2020: £nil)

SharedImpact Notes to the Financial Statements For the year ended 31st March 2021

5 Investment income Interest on cash deposits Dividends, bond interest and social investment income 6 Total expenditure Charitable Activities Charity support Charitable Activities Charity support 6a Direct Costs - Grants Dangerous Dreamers Street League Onside Foundation Ebury St Paul's School Hall School Saatchi Shul Julias House Street Invest RGS Guildford Winchester Project Swiss Cottage School Kisharon Hoare Gareth Neame Foundation Street League Founders for Food Mission Motorsport Be Well Collective South Hill Park Impairment of social investments	Direct Costs (note 6a) £ 638,999	2021 £ - 14,484 14,484 Support Costs (note 6b) £ 22,449 22,449 Support Costs (note 6b) £ 19,622 19,622 2021 £ 294,428 25,000 3,000 - - 10,000 7,000 6,000 15,000 - 3,750 4,000 - 5,000 25,000 229,165 7,500 656 3,500 638,999 - 638,999	2020 £ - 25,028
			25,028
			Total 2021 £ 661,448
	638,999		661,448
	Direct Costs (note 6a) £ 361,662		Total 2020 £ 381,284
	361,662		381,284
			2020 £ 205,287 25,000 25,000 24,193 12,000 10,000 6,500 5,000 5,000 4,500 4,250 3,500 2,500 1,941 370 - - - - -
			335,041 26,621
			361,662

SharedImpact Notes to the Financial Statements For the year ended 31st March 2021

6a Direct Costs - Grants (continued)

6b	Analysis by fund Unrestricted funds Restricted funds Support Costs Rent Computer costs Travelling costs Audit and accountancy fees (see note 3) Telecommunications Printing costs Bank charges Legal and professional fees Other costs	638,999 -	361,662
		638,999	361,662
		2021 £ 732 880 - 17,592 687 - 440 2,083 35	2020 £ 861 - 160 14,594 702 19 536 2,450 300
		22,449	19,622

The total audit fees attributable to the parent entity were £11,040 (2020: £10,584)

SharedImpact Notes to the Financial Statements For the year ended 31st March 2021

7 Investments - listed and unlisted

Group and Charity

Investments - listed and unlisted
Group and Charity Market value at 1 April Additions Disposals Realised gains Impairment Movement in cash Unrealised (losses)/gains Market value at 31 March	2021 £ 84,029 270,013 - - - - 7,476	2020 £ 94,580 - - - - (371) (10,180)
	361,518	84,029

Included within investments above are unlisted investments of £270,013 (2020: Nil) at cost, which is considered to be its fair value.

At 31st March 2021, the charity owned all of the issued ordinary share capital, consisting of 100 ordinary shares of £0.01 each, of SharedImpact Ventures Limited, a company registered in the UK, whose purpose is fund management. This investment value is £1 and is not included in the above disclosure. The results of the trading subsidiary, Shared Impact Ventures Ltd, are shown in note 2.

The following investments comprise in excess of 5% of the value of the portfolio:

	2021	2020
	£	£
OikoCredit Bond	50,000	50,000
M&G Charifund	20,010	16,247
Equity Income Trust for Charities A Income Units	21,494	17,781
Beam Up limited	270,013	-

8 Social investments

Group and Charity LGT Beam up Hibiscus Coral Living Total	As At 1st April 2020 £ 137,129 270,013 12,101	Purchased in year £ - 500,000	FX gain £ - - (1,230)	Transferred £ (270,013) - -	As at 31st March 2021 £ 137,129 - 10,871 500,000
	419,243	500,000	(1,230)	(270,013)	648,000

The investment in LGT is an impact investment fund investing in a range of social impact ventures.

Beam up (www.beam.org) is a social enterprise that crowdfunds job training for homeless people in the Greater London area, and supports them into stable, paid work. On the 29 April 2020 the charity converted the social investment to equity 'B' shares in Beam Up Limited, an unlisted entity. The cost of this investment been attributed to the original loan balance and has been included at fair value.

The Hibiscus investment is to support the establishment of the Hibiscus Cooperative (http://coophibiscus.freeoda.com/), a cooperative of 50 small farm producers in the town of Nandaime, Nicaragua, providing employment in the local area.

The trustees have assessed the need for an impairment and have concluded based on the financial position of the beneficiaries to impair these social investments by the amounts shown above.

SharedImpact Notes to the Financial Statements For the year ended 31st March 2021

8 Social investments (continued)

As At 1st April 2019 £ LGT 144,796 Beam up 190,637 Hibiscus 11,332 Total 346,765 9 Debtors: Amounts falling due within one year Loans Other debtors The loan is repayable on demand. 10 Creditors: Amounts falling due within one year Other creditors	As At 1st April 2019 £ 144,796 190,637 11,332	Purchased in year £ 18,954 79,376 -	Repaid £ - - 769	Impairment £ (26,621) - -	As at 31st March 2020 £ 137,129 270,013 12,101
	346,765	98,330	769	(26,621)	419,243
		262,251	252,949	101,001	91,001

Included in other creditors is a balance of £91,000 (2020: £91,000) due to a trustee. This is repayable on demand, no interest is charged on the loan.

11 Statement of funds

Balance at 1 April 2020 £ Restricted funds Dangerous Dreamers - - Unrestricted funds 273,286 Total funds 273,286	Balance at 1 April 2020 £ Restricted funds Dangerous Dreamers - - Unrestricted funds 273,286 Total funds 273,286	Income £ 300,000	Expenditure £ 300,000	Gains/(losses) Transfers £ - - - - 6,032 - 6,032 -	Gains/(losses) Transfers £ - - - - 6,032 - 6,032 -	Balance at 31 March 2021 £ -
	- 273,286	300,000 858,779	300,000 361,448	- 6,032	- -	- 776,649
	273,286	1,158,779	661,448	6,032	-	776,649

Purpose of Restricted Funds

Virgin Media has supported Dangerous Dreamers Foundation DAC in their commitment to transform the lives of disabled people. This is to fund five core programmes of activity that form part of The Valuable 500 (“V500”) initiative.

SharedImpact Notes to the Financial Statements For the year ended 31st March 2021

12 Limited Liability

The company is limited by guarantee and has no share capital. In the event of it winding up the liability of each

13 Related Party Transactions

At the balance sheet date a Trustee was owed £91,000 (2020: £91,000) by the charity. This is repayable on demand, no interest is charged on the loan.

At the balance sheet date SharedImpact Foundation (UK) Limited, a charity registered in England and Wales with common Trustees, owed the charity £1,000 (2020: £1,000). During the year the charity also received donations of £828,245 (2020: £256,468) from SharedImpact Foundation (UK) Limited.

The charity's trading subsidiary, SharedImpact Ventures Limited, incurred all administration and support costs in the year. A management charge of £26,000 (2020: £36,485) was re-charged to the charity to cover all administrative and support costs incurred by the trading subsidiary. At the balance sheet date SharedImpact Ventures Limited was owed £10,000 (2020: £Nil).