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2021-11-30-accounts

COMPANY REGISTRATION NUMBER: 07665606 CHARITY REGISTRATION NUMBER: 1145692

Promise Works Limited Company Limited by Guarantee Unaudited Financial Statements

30 November 2021

Promise Works Limited

Company Limited by Guarantee

Financial Statements

Year ended 30 November 2021

Page
Trustees' Annual Report (incorporating the Director's Report) 1
Independent Examiner's report to the trustees 13
Statement of Financial Activity (including Income and Expenditure
Account) 14
Balance Sheet 15
Notes to the financial statements 16

Promise Works Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report)

Year ended 30 November 2021

The trustees, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 30 November 2021.

Reference and administrative details

Registered charity name Promise Works Limited Charity registration number 1145692 Company registration 07665606 number Principal office and Tilham Farm registered Baltonsborough office Glastonbury Somerset BA6 8QA The trustees M S Conway K A O'Donnell R H Peto L Martin C E Drew M G Elliott A R Holmes T Knight (Appointed 15 December 2020) Accountants Burton Sweet Limited, Chartered accountants The Clock Tower 5 Farleigh Court Old Weston Road Flax Bourton Bristol BS48 1UR

- 1 -

Promise Works Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 30 November 2021

Structure, governance and management

Promise Works Limited is a charitable company (company number 07665606; charity registration number 1145692) governed by Articles of Association for a Charitable Company dated 1 November 2011.

Risk Management

PROMISEworks maintains a formal Risk Management process, employing a Risk Matrix to assess the charity’s exposure to a variety of risks and to define its mitigation efforts.

The risks to which the charity is exposed are reviewed regularly by the Board of Trustees. They are divided into five categories:

The impact of each risk is assessed together with the likelihood of its occurrence. The product of these two factors is used to identify the most significant risks to the charity; prioritise mitigation efforts and ensure that those efforts employed are adequate.

The most significant risk to the charity is Personal Safety and the consequential Reputational risk that would be associated with one of our clients or volunteers suffering abuse or sustained physical or emotional harm as a result of their mentoring activities. Such an occurrence would risk a critical loss of credibility and carry with it the potential for closure of the service.

To mitigate this primary risk, the charity employs robust and constantly reviewed safeguarding processes and procedures. These include:

These requirements are all reflected in the charity’s Safeguarding Policy which is reviewed on an annual basis.

- 2 -

Promise Works Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 30 November 2021

Each year, in the light of this risk management process, the charity reviews its insurance arrangements to ensure that it is adequately covered should any worst cases transpire.

Objectives and activities

The objects of the charity are: -

(1) to help vulnerable children, young people and families in Somerset and nationally by providing practical and emotional support, and;

(2) the advancement of education by the provision of training, educational programmes and information to a range of voluntary, public and professional individuals, groups and organisations for the public benefit.

PUBLIC BENEFIT

The charity provides mentoring services and support to some of the most vulnerable and atrisk children and young people in Somerset. Many of these young people are classed as "Children in Need" as defined in the Children Act 1989. The charity does not fund services and support which are within the statutory duty of the local authority.

We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities.

ACHIEVEMENTS AND PERFORMANCE

Summary – a year of recovery, consolidation, and continued growth

PROMISEworks has emerged from the COVID-19 pandemic period a stronger, more resilient charity. The pandemic affected all aspects of the charity’s operation but the energy and creativity of everyone involved overcame these difficulties.

We continued to grow the number of children and young people that we support, reaching the milestone of 100 open relationships by mid-year. Since we started our service in April 2017, we have matched almost 200 vulnerable children and young people with a long-term volunteer mentor.

Twenty young people graduated successfully from the scheme during the year. These graduates felt able to dispense with the formal support of their mentor, each confident that the programme had helped them to build their own “life that works”.

However, success has come with increasing demands and responsibilities. As professional agencies across the County recognised the unique value of our service, referrals grew rapidly. We ended the year with nearly 250 children and young people on our waiting list.

We strengthened our operations team and improved the resources and tools at their disposal. This included a complete refresh of our website, www.promiseworks.org.uk.

- 3 -

Promise Works Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 30 November 2021

The highlight of our fundraising year was a large grant from The National Lottery Community Fund. This three-year funding will allow us to expand our capacity to address the growing waiting list. It will also fund recruitment into the new post of General Manager. This will allow the trustees currently providing operational management to assume more traditional governance and development roles.

PROMISEworks & COVID-19

The COVID-19 pandemic continued to affect the charity in a variety of ways during 2020-21. These paragraphs describe those effects and how they were managed.

As the year began, approximately 50% of our mentor-mentee relationships had re-started regular face-to-face meetings. The remainder continued to meet virtually, using a variety of different methods to stay in touch at a distance. After the Christmas lockdown, the steady return to face-to-face meetings continued, with only a very small number still using virtual means by the end of March 2021. Throughout this transition, our operations team ensured that everyone involved was comfortable with any changes and that rules and guidelines were always understood and followed. The information and advice services provided by the National Youth Agency proved invaluable throughout these difficult times.

At the start of the year, we had effectively closed our service to new referrals. This moratorium was applied because the COVID-19 restrictions made it increasingly difficult to perform essential functions such as the assessment and training of volunteers; initial meetings with young people; matching meetings between prospective mentors and mentee and the final closure meetings when a young person graduates from the scheme.

Despite the moratorium, we received a steady trickle of requests throughout that early period. As we reopened the service, there was a very significant increase in referral rate. We received more than 230 over the course of the year and ended the year with 246 awaiting a match. While some of these unfortunate children and young people came to us as a direct result of the pandemic, most referrals were generated by a combination of two broader factors – Somerset professional agencies became increasingly aware of the usefulness of our service whilst at the same time experiencing a distinct lack of any alternative, long-term offering able to support their vulnerable children and young people.

As the restrictions eased, our operations team accelerated the training programme, completing three training courses in succession, with 28 new volunteers qualifying as mentors over the three-month period to the end of June.

COVID-19 factors complicated the organisation of efficient training programmes. Trainees were apt to make late changes to their intentions, dropping out of courses at the last minute due to illness, quarantine, or personal concerns. This made it difficult to find substitutions at short notice, risking the possibility of running less efficient courses with smaller training cohorts.

The Crisis Team that was established at the start of the pandemic continued to operate throughout the year, providing effective day-to-day management within the authority delegated to it by the Board of Trustees.

- 4 -

Promise Works Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 30 November 2021

The restrictions placed upon the charity during the COVID-19 period encouraged innovation and creativity within our team. This reinforced the benefits of information technology to deliver a more effective and efficient service. Extensive use was made of videoconferencing to improve the cohesion of the team as well as provide new routes for training staff & volunteers. In addition, social media packages such as WhatsApp and Facebook were used to keep mentors informed, maintain morale, and stay connected with PROMISE works .

The funding environment continued to be profoundly affected by the pandemic. Both large and small grant funds switched their focus to COVID-19 issues. In addition, several large funds were closed to new beneficiaries. Businesses which under more normal circumstances might have considered corporate sponsorship had to concentrate on more fundamental issues, giving them little time to consider charity requests or other social responsibilities. Restrictions made fundraising events impossible. In this difficult environment, the charity’s Fundraising Group formed smaller teams to focus upon specific segments such as local partners and large national grant bodies. This strategy proved successful. Despite the difficult funding environment, our fundraising targets were exceeded.

As in the previous year, the pandemic continued to bring out the best in the PROMISE works team. We were able to grow the team which, in turn, allowed us to expand the service we provide, keeping everyone involved with PROMISE works safe in the process. Throughout, the team was buoyed by the patience and commitment made to PROMISE works by our volunteers. Our established mentors worked tirelessly to minimise the effects of the pandemic on their young friends while new volunteers waited patiently as changes in guidelines wreaked havoc on schedules and training programmes. We owe a debt of gratitude to them all.

Delivery Performance

The 232 referrals received in 2020-21 took the total received since launch in 2017 to 566. The 246 open applications at the end of the year were more than double that at the end of 2019-20.

Since the service started in April 2017, by the end of November 2021, 197 children and young people had been carefully matched with a long-term volunteer mentor. Despite the COVID-related restrictions described above, 53 new matches were completed during the year, with 116 on-going relationships in place at year end.

During the year, 27 relationships closed. These disengagements were for a variety of reasons:

- 5 -

Promise Works Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 30 November 2021

In recognition of the vital role they have played in our success, in September, our volunteers were invited to join the trustees and staff to celebrate reaching the milestone of 100 ongoing PROMISE works relationships.

Volunteer Recruitment & Training

Our training organisation was bolstered during 2020, with the recruitment of an Area Coordinator who was also an experienced trainer. He assumed the charity’s lead trainer role during 2021 and organised a streamlining of the course and a refresh of the course materials.

The accelerated programme completed in the Spring and the more structured quarterly programme resumed later in the year, combined to train a total of 44 volunteers on 5 courses. All of these trainees went on to be matched with a child or young person (some matches being completed after the end of the financial year). At the end of the year, in addition to the 116 on-going relationships there were 7 matches in progress with a further 5 trained mentors awaiting the start of their matching or re-matching process.

Throughout the year, we have continued to benefit from word-of-mouth recruitment efforts encouraged by our positive profile and delivered by our growing mentor and supporter community. This produced a steady stream of applications, even during lockdown when we had little hope of training in the foreseeable future. This gave us an adequate number of trainees with which to pump prime our accelerated Spring programme. Thereafter, we returned to our reliance upon social media. This effort was assisted by two volunteers with social media experience who structured and re-vitalised our social media offering.

Improved Infrastructure

In addition to the improvements in our social media offering, over the course of the year PROMISE works invested in the charity’s infrastructure including:

- 6 -

Promise Works Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 30 November 2021

Staffing

We continued the steady growth of our operations team during the year. We recruited another full time Case Holder & Area Coordinator to fill the opportunity in Mendip. This post is funded by our successful 2020 bid to the Somerset Community Foundation Early Help Fund.

With the new Mendip recruit domiciled in Sedgemoor and our Sedgemoor incumbent living in Mendip, we took the opportunity to reorganise the team, switching the two staff members so that each could work closer to home.

At the end of the year, our staff team consisted of:

As in 2020, we were also able to expand the Board of Trustees. We recruited a qualified accountant as Trustee Treasurer who brings expertise and experience to this important role.

The Strategic Importance of the National Lottery Community Fund

In mid-2019, the trustees and staff of PROMISE works reviewed the strategic position of the charity. Faced with the need to grow to meet the ever-expanding demand for our services, we identified the obstacles in our path and mapped a route to overcome them.

A major strategic vulnerability was our reliance upon volunteer trustees in key managerial roles. To remove this reliance and create a sustainable, employee-led organisation, we identified a small group of potential funders that had sufficient resources and who might be prepared to fund such an organisational transformation. The National Lottery sat at the top of this short list of large grant bodies. Consequently, we put in place a plan to:

In 2019, we had not factored in the consequences of a global pandemic, which caused us to put our plans on hold for a year. However, the delay did allow us to work even harder on infrastructure and planning improvements. This work bore fruit in September 2021, when the National Lottery Community Fund awarded us a three-year grant totalling £337,000, subject to performance and regular review. This grant will support the following:

- 7 -

Promise Works Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 30 November 2021

The trustees and staff are excited by the future that will be enabled by the National Lottery grant and the improvement and expansion of service that it will allow.

Fundraising Performance

As described above, the pandemic continued to have an adverse effect upon PROMISE works ’ ability to raise sufficient funds. In the light of these difficulties, the charity’s Fundraising Group reorganised its small team to focus upon specific, key targets. This strategy bore fruit, with the overall result being that we raised £247,498, almost £21,000 more than the budget we set at the start of the year.

The following successes were of particular significance:

The fundraising income for the year breaks down as follows:

Personal Donations (including JustGiving)
General Fundraising (public appeals etc)
Fundraising Events
Corporate Donations
Unrestricted Grants
Restricted Grants
Fundraising Total		 2021
£
17,923
678
-
31,062
59,200
138,635
247,498

The Trustees thank the organisations and volunteers who have helped the charity to continue

- 8 -

Promise Works Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 30 November 2021

to grow successfully during the year and who have provided encouragement and advice as well as financial and practical support. In particular:

In addition to these organisations, the Trustees are grateful to the many other community groups and individual donors and fundraisers who have given of their time and money in support of PROMISEworks during the year.

As in previous years, the Trustees would also like to thank and recognise the work of the staff who have continued the successful development of our mentoring operations.

Finally, we reserve our greatest thanks and admiration for the volunteer mentors upon whom our service depends. It is their dedication and commitment that improves the life chances of our children and young people.

Financial Review

Financial Controls

The necessary financial processes and procedures have been set out in a Finance Manual. The procedures outlined therein are followed at all times by trustees, staff, and volunteers.

The Finance Manual includes the customary internal controls on receipts and payments. All payments must be authorised by trustees or the appropriate delegated authority. Online banking payments require input and authorisation, and cheques require signature by two authorised signatories. Expenses may be reimbursed to volunteers, trustees, and staff where costs are incurred in their role in the normal course of charity business.

- 9 -

Promise Works Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 30 November 2021

Reserves Policy

In principle, PROMISE works aims to maintain free reserves which are available for its general purposes, i.e., funds which are not restricted, designated, or otherwise committed, at a level which is likely to sustain its activities over an appropriate closure period and, in doing so, minimise any adverse consequences for our mentees.

PROMISE works wants to grow its services to children and young people but will temper all growth decisions by reference to this policy.

The success of the PROMISE works mentoring model is founded upon the long-term promise that is made to each young mentee when they join the programme - that they can count on having their mentor for at least two years. The fidelity of this promise must be protected for the service to continue to be effective.

If the charity failed it could cause significant distress to mentees. Suddenly losing the trusted relationship with their mentor, perhaps the first trusting relationship they had ever experienced, could be traumatic and only serve to exacerbate a young person's problems. Consequently, the PROMISE works Reserves Policy has been designed to minimise the risk of breaking these promises for purely financial reasons. This translates, in financial terms, into maintaining enough unrestricted funds to cover the cost of completing all the promises that have been made to our children and young people. To this end, the Trustees of PROMISE works have designated two funds to represent these financial commitments:

When taken together, the Closedown Costs and Completed Promises designated funds represent the minimum unrestricted cash holding needed by the charity to maintain a safe service in the event of closure. It is, in effect, the charity's minimum reserve holding.

The charity uses a detailed model to estimate these two designated funds, identifying, in essence, the minimum unrestricted cash holding (reserves) that must be in place to ensure the maintenance of a safe service for those children and young people we support. At the end of the year, this model identified a minimum reserves fund level of £102,297. This was adequately supported by the actual unrestricted free reserves of £116,163.

Designated Funds

In addition to the Reserves-related designated funds described above, the trustees may earmark unrestricted funds for specific charitable purposes in accordance with the charity's

- 10 -

Promise Works Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 30 November 2021

objectives. At the end of the 2020-21 financial year, the Trustees had retained two such additional designated funds:

Risk Assessment

The Trustees regularly review the risks to which the charity is exposed and minimise these risks through implementation of such controls and procedures as they deem appropriate, taking into consideration the likelihood of occurrence and the potential severity of each risk.

The charity has a safeguarding policy which is reviewed every year.

Statement of trustees’ responsibilities

The trustees (who are also directors of Promise Works Limited for the purposes of company law) are responsible for preparing the Trustees’ Report (incorporating the strategic report and directors’ report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom 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 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.

- 11 -

Promise Works Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 30 November 2021

The trustees' annual report was approved on 22 March 2022 and signed on behalf of the board of trustees by:

K A O'Donnell Trustee

- 12 -

Promise Works Limited Company Limited by Guarantee

Independent Examiner's Report to the Trustees of Promise Works Limited

Year ended 30 November 2021

I report to the charity trustees on my examination of the financial statements of Promise Works Limited ('the charity') for the year ended 30 November 2021.

Responsibilities and basis of report

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

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your 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 matters have come to my attention in connection with the examination giving me cause to believe:

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

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

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

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

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

Joshua Kingston BSc. ACA Burton Sweet Limited The Clock Tower 5 Farleigh Court Old Weston Road Flax Bourton Bristol BS48 1UR

Date: 22 March 2022

- 13 -

Promise Works Limited

Statement of Financial Activities (Including Income and Expenditure Account)

Year ended 30 November 2021

Note
Income from:
Grants, donations and legacies
2
Other trading activities
3
Investments
4
Total income
Expenditure on:
Raising funds
5
Charitable activities
6
Total expenditure
Net income/(expenditure)
9
Transfers between funds
16
Net movement in funds
16
Total funds at start of year
16
Total funds at end of year
16		 Unrestricted
Funds
£
109,345
678
148
110,171
782
121,132
121,914
(11,743)
(385)
(12,128)
131,942
119,814		 Restricted
Funds
£
138,635
-
-
138,635
-
75,341
75,341
63,294
385
63,679
23,957
87,636		 Total Funds
2021
£
247,980
678
148
248,806
782
196,473
197,255
51,551
-
51,551
155,899
207,450		 Total Funds
2020
£
184,670
1,250
614
186,534
309
173,702
174,011
12,523
-
12,523
143,376
155,899

The Charity has no recognised gains or losses other than the results for the year as set out above.

All of the activities of the charity are classed as continuing.

The notes on pages 16 to 27 form part of these financial statements See note 11 for fund-accounting comparative figures

14

Promise Works Limited

Balance Sheet

As At 30 November 2021

Company number: 07665606

Note
Fixed assets
Tangible assets
12
Current assets
Debtors
13
Cash at bank and in hand
Liabilities
Creditors : amounts falling
due within one year
14
Net current assets
Total assets less current liabilities
Net assets
FUNDS
Unrestricted funds
General funds
17
Designated funds
17
Restricted funds
17
Total funds		 2021
£
2,044
2,044
2,193
225,814
228,007
(22,601)
205,406
207,450
207,450
15,910
103,904
87,636
207,450		 2020
£
2,480
2,480
4,314
165,659
169,973
(16,554)
153,419
155,899
155,899
54,390
77,552
23,957
155,899

For the year ending 30 November 2021 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

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

These financial statements were approved by the Trustees on 22 March 2022 and are signed on their behalf by:

T Knight Trustee

The notes on pages 16 to 27 form part of these financial statements

15

Promise Works Limited

Notes To The Financial Statements

Year ended 30 November 2021

1 Accounting policies

Accounting convention

The financial statements have been prepared under the historical cost convention, and in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2019.

The charity is a public benefit entity as defined under FRS102. Along with other similar charities and organisations, the COVID-19 pandemic has brought many uncertainties to the global economy. The impact of this on the charity is highlighted in further detail within the Trustees' annual report. Notwithstanding these uncertainties, the Trustees have chosen to prepare the financial statements on a going concern basis given the free reserves held by the charity and the careful planning of the Trustees.

Income

Income from donations is included in income when these are receivable, except as follows:

I. When donors specify that donations given to the charity must be used in future accounting periods, the income is deferred until those periods;

II. When donors impose conditions which have to be fulfilled before the charity becomes entitled to use such income, the income is deferred until the pre-conditions have been met.

Legacies are included on a receivable basis where charity is entitled to the income, it can be measured reliably and receipt is probable. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is not included in income but is treated as a contingent asset and disclosed if material.

Investment income is included on a receivable basis.

Donations in kind comprise donated services where the costs are measurable and the services would otherwise have to be paid for to maintain operational effectiveness.

Expenditure

Expenditure is recognised in the period in which it is incurred. Expenditure includes attributable VAT which cannot be recovered.

Raising funds

Raising funds expenditure include those costs incurred in seeking voluntary contributions, costs of goods sold and other costs which include the costs of running and participating in fundraising events and collections and cost of goods purchased for resale.

Charitable Activities

Grants awarded are allocated to charitable activities. Grants awarded are treated as expenditure and a liability in the accounts as soon as they become legal or constructive obligations. In the case of multi-year grant awards, the funding for all years is immediately recognised unless there are conditions which need to be met by the recipient to enable the release of subsequent years’ funding.

16

Promise Works Limited

Notes To The Financial Statements

Year ended 30 November 2021

1 Accounting policies (continued)

Governance costs

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity. Governance costs are included within support costs.

Allocation and apportionment costs

Certain expenditure is directly attributable to specific activities and this has been included in those cost categories. Other costs, which are attributable to more than one category, are apportioned across cost categories on the basis of an assessment of workload carried out from time to time.

Overhead support costs have been allocated between fundraising and publicity costs, fundraising trading and charitable activities. The apportionment has been allocated on the basis of usage and is analysed in note 7.

Pension costs and other post-retirement benefits

The charity contributes to defined contribution pension schemes. Contributions payable to the charity's pension schemes are charged to the Statement of Financial Activities in the period to which they relate.

Tangible fixed assets

Fixed assets are held at cost less accumulated depreciation. Depreciation is calculated so as to write off the cost of an asset, less its estimated ultimate residual value, over the useful life of that asset as follows:

Plant and machinery - over 3 years; straight line Equipment - over 3 years; straight line

Debtors

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

Cash and cash equivalents

Cash at the 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.

Creditors

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

Fund accounting

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

17

Promise Works Limited

Notes To The Financial Statements

Year ended 30 November 2021

1 Accounting policies (continued)

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.

Designated funds form part of unrestricted funds and have been identified as being for particular purposes by the Trustees. They are not restricted and can be transferred to general funds at any time at the discretion of the Trustees.

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

2 Income from grants, donations and legacies

Donations
Personal donations
Corporate donations
Grants received
Hinkley Point C Community Fund (SCF)
Medlock Charitable Trust
Ninesquare Trust
Powell & Samuel
Taunton Fund
The National Lottery - Covid 19
Orchard Fund (SCF)
Card Factory Foundation
Somerset Community Foundation
Alison Heart - My Brain
Rotary Club of Langport & Somerton Trust
Cyril & Eve Jumbo Trust
Brent Knoll Parish
Fairfield Charitable Trust
Coronavirus Job Retention Scheme		 Unrestricted
Funds
£
17,923
31,062
-
15,000
10,000
9,000
-
-
5,000
-
-
-
-
-
200
20,000
1,160
109,345		 Restricted
Funds
£
-
-
42,944
-
-
-
25,000
40,211
-
1,000
25,000
1,000
980
2,500
-
-
-
138,635		 Total Funds
2021
£
17,923
31,062
42,944
15,000
10,000
9,000
25,000
40,211
5,000
1,000
25,000
1,000
980
2,500
200
20,000
1,160
247,980

18

Promise Works Limited

Notes To The Financial Statements

Year ended 30 November 2021

2
Income from grants, donations and legacies (continued)
Prior year comparatives
Donations
Personal donations
Corporate donations
Grants received
Hinkley Point C Community Fund (SCF)
Medlock Charitable Trust
Ninesquare Trust
Sherborne Castle Country Fair
Powell & Samuel
Taunton Fund
Gooch Charitable Trust
The National Lottery - Covid 19
Huish Episcopi Parish Council
7 Star Foundation - Shine Bright Fund
Street Parish Council - SPC Grant
The Pixel Fund
Orchard Fund (SCF)
Brympton Parish Council
Coronavirus Job Retention Scheme
3
Income from: Other trading activities
Unrestricted
Funds
£
Fundraising activities
678
678		 Unrestricted
Funds
£
22,233
31,405
-
15,000
15,000
250
-
-
-
-
-
-
-
-
5,000
450
11,633
100,971
Restricted
Funds
£
-
-		 Restricted
Funds
£
-
-
11,639
-
-
-
9,000
25,000
3,000
28,710
500
350
2,000
3,500
-
-
-
83,699
Total Funds
2021
£
678
678		 Total Funds
2020
£
22,233
31,405
11,639
15,000
15,000
250
9,000
25,000
3,000
28,710
500
350
2,000
3,500
5,000
450
11,633
184,670
Total Funds
2020
£
1,250
1,250

All prior year income from other trading activities was unrestricted.

4 Income from: Investments

Interest received Unrestricted
Funds
£
148
148		 Restricted
Funds
£
-
-		 Total Funds
2021
£
148
148		 Total Funds
2020
£
614
614

All prior year income from Investments was unrestricted.

19

Promise Works Limited

Notes To The Financial Statements

Year ended 30 November 2021

5 Expenditure on: Raising funds

Fundraising costs
Expenditure on: Charitable activities
Assisting vulnerable young people
Support costs
Prior year comparatives
Assisting vulnerable young people
Support costs
Support costs
Training costs
Communication and IT
General Office
Finance costs
Professional services
Governance costs
Depreciation		 Unrestricted
Funds
£
102,669
18,463
121,132
Unrestricted
Funds
£
87,232
14,589
101,821		 Total Funds
2021
£
782
782
Restricted
Funds
£
68,841
6,500
75,341
Restricted
Funds
£
69,523
2,358
71,881
Total Funds
2021
£
3,105
8,690
3,654
68
6,058
2,107
1,281
24,963		 Total Funds
2020
£
309
309
Total Funds
2021
£
171,510
24,963
196,473
Total Funds
2020
£
156,755
16,947
173,702
Total Funds
2020
£
3,295
5,535
1,982
80
-
5,228
827
16,947

6 Expenditure on: Charitable activities

7 Support costs

20

Promise Works Limited

Notes To The Financial Statements

Year ended 30 November 2021

8 Staff costs and numbers

The aggregate payroll costs were:

----- Start of picture text -----
|||| |---|---|---| |2021|2020| |£|£| |Wages & salaries|134,164|125,748| |Social security costs|7,609|2,578| |Pension contributions|6,554|7,968| |148,327|136,294|

----- End of picture text -----

No employee received emoluments of more than £60,000.

The average weekly number of employees during the year was 6 (2020: 5), calculated on the basis of average headcount.

The key management personnel are considered to be the trustees and members of senior management. The total employment benefits received by key management personnel in the year were £76,264 (2020: £74,364).

One trustee has been reimbursed for their out of pocket travel and subsistence expenses totalling £286 (2020: £605). No Trustee received any remuneration during the year.

9 Net income/(expenditure) for the year

This is stated after charging:

----- Start of picture text -----
|||| |---|---|---| |2021|2020| |£|£| |Fees payable to the independent examiner for:| |Independent examination fee|1,667|1,216| |Depreciation|1,281|827|

----- End of picture text -----

10 Taxation

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

21

Promise Works Limited

Notes To The Financial Statements

Year ended 30 November 2021

11 Statement of Financial Activities comparative figures

For the year ended 30 November 2020
Income from:
Donations and legacies
Other trading activities
Investments
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net income/(expenditure) for the year
and net movement in funds
Total funds at start of year
Total funds at end of year		 Unrestricted
Funds
100,971
1,250
614
102,835
309
101,821
102,130
131,237
131,942
705		 Restricted
Funds
83,699
-
-
83,699
-
71,881
71,881
12,139
23,957
11,818		 Total Funds
2020
184,670
1,250
614
186,534
309
173,702
174,011
143,376
155,899
12,523

12 Tangible fixed assets

Cost or valuation
At 1 December 2020
Additions
Disposals
At 30 November 2021
Depreciation
At 1 December 2020
Charge for the year
Disposals
At 30 November 2021
Net book value
At 30 November 2021
At 30 November 2020		 Plant &
machinery
£
1,206
-
-
1,206
187
449
-
636
570
1,019		 Equipment
£
2,859
845
(340)
3,364
1,398
832
(340)
1,890
1,474
1,461		 Total
£
4,065
845
(340)
4,570
1,585
1,281
(340)
2,526
2,044
2,480

22

Promise Works Limited

Notes To The Financial Statements

Year ended 30 November 2021

13 Debtors
Due in less than one year:
Prepayments and accrued income
14 Creditors: amounts falling due within one year
Trade creditors
Other creditors
Accruals and deferred income		 2021
2,193
2,193
2021
£
4,818
4,970
12,813
22,601		 2020
4,314
4,314
2020
£
307
6,569
9,678
16,554

15 Related party transactions

There are no transactions with trustees or other related parties other than those disclosed as required by the Statement of Recommended Practice elsewhere in the financial statements.

23

Promise Works Limited

Notes To The Financial Statements

Year ended 30 November 2021

16 Movement in funds

For the year ended 30 November 2021

Restricted funds
Taunton Fund
Gooch Charitable Trust
Huish Episcopi Parish Council
Mental Health
SCF Early Help Mendip Fund
JUMBO Relationship Fund
Unrestricted funds
General funds
Designated funds:
Hardship fund
Mental health
Complete Promises
Closedown costs
Total funds
Hinkley Point C Community
Fund (SCF)
7 Star Foundation - Shine
Bright Fund
Card Factory Foundation
Community Fund
National Lottery Reaching
Communities Fund
Street Parish Council - SPC
Grant		 At 1 Dec
2020
£
9,758
6,803
2,718
500
350
1,798
2,030
-
-
-
-
23,957
54,390
552
1,000
32,000
44,000
77,552
155,899		 Income
£
42,944
25,000
-
-
-
-
1,980
25,000
2,500
40,211
1,000
138,635
110,072
99
-
-
-
99
248,806		 Expenditure
£
(29,259)
(19,180)
(1,031)
(935)
(232)
(874)
(1,855)
(16,651)
(1,270)
(3,054)
(1,000)
(75,341)
(121,870)
(44)
-
-
-
(44)
(197,255)		 Transfers
£
-
-
-
435
(50)
-
-
-
-
-
-
385
(26,682)
-
-
11,397
14,900
26,297
-		 At 30 Nov
2021
£
23,443
12,623
1,687
-
68
924
2,155
8,349
1,230
37,157
-
87,636
15,910
607
1,000
43,397
58,900
103,904
207,450

24

Promise Works Limited

Notes To The Financial Statements

Year ended 30 November 2021

16 Movement in funds (continued)

Prior year comparatives

Restricted funds
Prowe Foundation
Powell and Samuel (SCF)
Taunton Fund
Gooch Charitable Trust
The National Lottery - Covid 19
Huish Episcopi Parish Council
Mental Health
Unrestricted funds
General funds
Designated funds:
Hardship fund
Mental health
Complete Promises
Closedown costs
Total funds
Street Parish Council - SPC
Grant
Hinkley Point C Community
Fund (SCF)
7 Star Foundation - Shine
Bright Fund		 At 1 Dec
2019
£
11,639
500
-
-
-
-
-
-
-
12,139
50,218
609
1,000
25,120
54,290
81,019
143,376		 Income
£
11,639
-
9,000
25,000
3,000
28,710
500
350
2,000
3,500
83,699
102,835
-
-
-
-
-
186,534		 Expenditure
£
(13,520)
(500)
(9,000)
(18,197)
(282)
(28,710)
-
-
(202)
(1,470)
(71,881)
(102,073)
(57)
-
-
-
(57)
(174,011)		 Transfers
£
-
-
-
-
-
-
-
-
-
-
-
3,410
-
-
6,880
(10,290)
(3,410)
-		 At 30 Nov
2020
£
9,758
-
-
6,803
2,718
-
500
350
1,798
2,030
23,957
54,390
552
1,000
32,000
44,000
77,552
155,899

Restricted funds

Hinkley Point C Community fund is a grant that supports the establishment of a mentoring services in the Bridgwater/Sedgemoor region in the county.

The Prowe Foundation provided a grant specifically to part fund the purchase of a moped for a mentee. This grant was fully spent in the year.

25

Promise Works Limited

Notes To The Financial Statements

Year ended 30 November 2021

16 Movement in funds (continued)

The Powell and Samuel (SCF) Fund relates to the grants from Michael Samuel Charitable Trust and C&J P Fund provided via the Somerset Community Foundation which were restricted to volunteer expenses associated with supporting mentees. This fund was exhausted in the prior year.

The Taunton Fund relates to grants received from Toroce Investments Limited and Gravis Capital Limited, restricted to covering the costs of a Case Holder in the Taunton area.

The Gooch Charitable Trust issued a grant which was restricted to supporting the mentoring of young people in the Ilminster area.

The National Lottery Community Fund issued a grant from its Coronavirus Community Support Fund in order to cover gaps in funding from individual and corporate fundraising, community fundraising events and small scale grants that closed their application streams. This fund was exhausted in the prior year.

The Huish Episcopi Parish Council provided a grant restricted for use by mentors in the Langport area.

The 7 Star Foundation - Shine Bright Fund relates to a grant received specifically for an event at Hallr Woods which was postponed due to the government restrictions in 2020.

The Street Parish Council - SPC Grant is restricted to providing mentoring services in Street.

The Mental Health Fund relates to two funds received in the year from the Pixel Fund and My Brain Books (A. Hart), not the designated fund of the same name. This funding is restricted to providing counselling services to vulnerable children and young people.

The SCF Early Help Mendip Fund is a grant from Somerset County Council via the Somerset Community Foundation. The grant is restricted to the establishment of mentoring services in the Mendip area of the county.

The Cyril and Eve JUMBO Charitable Trust has provided a grant to fund a third party evaluation of our mentoring programme.

The National Lottery Reaching Communities Fund provided a grant via the RC South West Region Programme. This grant is restricted to covering specific employment costs with a view to increasing mentoring across Somerset.

The Card Factory Foundation Community grant was provided to cover the costs of training venues. This grant was exhausted in the year.

Designated funds

The Closedown Costs designated fund reflects a prudent estimate of the costs that would be incurred over the six months following any decision to close the mentoring service. Some of the charity’s own staff would be retained during this period to manage the closure and to support the ongoing mentoring relationships.

26

Promise Works Limited

Notes To The Financial Statements

Year ended 30 November 2021

16 Movement in funds (continued)

The Complete Promises designated fund reflects an estimate of the costs that would be incurred by the charity in funding a third-party organisation to support those mentoring relationships that still had some of their two-year promise to complete at the end of the six-month Closedown period.

The Hardship Fund is for the benefit of children and young people living in poverty and to help fund their immediate short-term needs for food, shelter, clothing, heat, light & power and other basic and essential needs.

The Mental Health Fund is to cover the costs of occasional therapeutic counselling sessions arranged to help some of our young people cope with various issues in their lives. This designated fund represents the Trustees commitment to maintaining a minimum level of funding in this area, should the restricted funds provided for this purpose by donors be exhausted.

Transfer of funds

The fund transfers between general funds and the designated funds are to reflect changes during the year in respect of reserve targets for Complete Promises and Closedown Costs.

17 Analysis of net assets between funds

As at 30 November 2021
Tangible fixed assets
Other net assets
As at 30 November 2020
Tangible fixed assets
Other net assets		 General
Funds
£
2,044
13,866
15,910
General
Funds
£
2,480
51,910
54,390		 Designated
Funds
£
-
103,904
103,904
Designated
Funds
£
-
77,552
77,552		 Restricted
Funds
£
-
87,636
87,636
Restricted
Funds
£
-
23,957
23,957		 Total
£
2,044
205,406
207,450
Total
£
2,480
153,419
155,899

18 Limited by guarantee

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 £10.

27