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2021-03-31-accounts

School of Hard Knocks

Annual Report and Financial Statements

31 March 2021

Company Limited by Guarantee Registration Number 07743730 (England and Wales)

Charity Registration Numbers 1147009 (England and Wales) SC046118 (Scotland)

Contents

Reports

Reference and administrative
information 1
Trustees’ report 2
Independent auditor’s report 14
Financial statements
Statement of financial activities 19
Balance sheet 20
Statement of cash flows 21
Principal accounting policies 22
Notes to the financial statements 27

School of Hard Knocks

Reference and administrative information

Trustees Mr David Thomas
Mr Jonathan Teckman
Ms Deborah Griffin
Mr Olly Spry
Mr James Cameron
Ms Victoria Griffin
Mr Mike Francis
Ms Pauline Broomhead
Chief Executive Mr Ken Cowen
Registered office The Graystone Centre
28 Charles Square, Old Street
London
N1 6HT
Company Registration Number 07743730
Charity Registration Numbers 1147009 (England and Wales)
SC046118 (Scotland)
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Solicitors Memery Crystal
11 Southampton Buildings
London
WC2A 1AP
Milbank, Tweed, Hadley & McCloy LLP
10 Gresham Street
London
EC2V 7JD
Bankers CAF Bank Ltd
25 Kings Hill Avenue
Kings Hill
West Malling
ME19 4JQ

School of Hard Knocks 1

Trustees’ report 31 March 2021

The trustees, who are the directors for the purposes of company law, present their statutory report together with the financial statements of School of Hard Knocks for the year to 31 March 2021.

The report has been prepared in accordance with Part 8 of the Charities Act 2011 and constitutes a directors’ report for the purposes of the Companies Act 2006.

The financial statements have been prepared in accordance with the accounting policies set out on pages 22 to 26 of the attached financial statements and comply with the charitable company’s memorandum of association, the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

Our Aims and objectives

Purposes and Aims

The principal objects of the charity are set out in the charity’s Memorandum of Association:

To assist persons who may have need of support by virtue of poor health, disability, financial hardship or other disadvantage, in particular but not exclusively by the provision of facilities and programmes of physical, educational and other activities as a means of:

Ensuring our work delivers our aims

We review our aims, objectives and activities each year. This review looks at what we achieved and the outcomes of our work in the previous 12 months. We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aim and objectives and in planning our future activities.

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Trustees’ report 31 March 2021

Achievements and performance

To achieve these aims, we deliver two streams of work: courses for unemployed adults, to help them find and sustain employment; and courses for school pupils at risk of exclusion, to help them complete mainstream education and develop skills to help them find employment once they have completed full time education.

England

Our England Adult programme secured its first ever multi-year grant funding at the end of the last financial year with the Quilter Foundation to deliver six courses over three years that will enable a stable presence in London. Due to in-person delivery being postponed during Covid19 lockdowns, we were only able to deliver one of the intended courses ‘in-person’, although we were able to deliver the second Quilter funded course virtually in November 2020. This presented us with the opportunity to adapt our delivery via an online course in order to support our England Adult beneficiaries. We were able to use our grant funding from the Walcot Foundation to deliver one online course in February 2021, secure commissioning from the RFU to run an online pilot course that we hope will lead to a larger partnership in the new financial year and secure a contract with DWP West London that allowed us to deliver two online courses in March 2021. While Covid-19 restrictions did postpone our in-person adult work, the programmes’ ability to adapt, afforded multiple opportunities to secure unrestricted funding and diversify our income within the England Adult programme.

Prior to Covid-19 school closures, our England Schools programme delivered to over 500 pupils across eight schools in London, Surrey, and Hertfordshire. As a testament to the strength and sustainability of the programme model and our existing staff, all eight schools have sought to reinstate delivery post Covid-19 school closures. During school closures, our England Schools staff created online resources for students to access, and supported schools with virtual delivery throughout the 2020 calendar year. Within Covid-19 restrictions, our England Schools staff were able to visit several of the schools to deliver sessions via their learning platforms and see pupils that were still attending. This combination of in-person and virtual delivery has seen real positives as it affords a mixture of exercise and workshops that students can continuously revisit or catch-up on if they could not attend an in-person session. Schools delivery also focused more on mental health and wellbeing, and in fact an increased number of vulnerable pupils that were able to attend school received more one-to-one mentoring than would have occurred in a typical delivery setting.

Scotland

Our Scotland Adult programme (OSCR registration number SC046118) was the first to return to in-person delivery and was also able to deliver hybrid courses throughout the financial year and Covid-19 pandemic.

We completed one in-person course commissioned by the DWP in partnership with Streetwork to support adults experiencing homelessness in Edinburgh. The adult delivery team supported 29 Streetwork service users, 3 of which moved into full-time work following the course. One beneficiary started a college course with a view to work within childcare, four beneficiaries underwent accredited training courses and qualifications, and five beneficiaries have moved into more permanent housing.

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Trustees’ report 31 March 2021

Achievements and performance (continued)

Scotland (continued)

We also delivered a hybrid ‘in-person’ virtual course with funding from Aspiring Communities. This consisted of outdoor physical activity in Edinburgh followed by online delivery sessions in the afternoon. This course saw a 92% retention rate, and 30% of beneficiaries reached a positive destination of work, education, training, or volunteering upon completing the course and despite Covid-19 lockdowns and restrictions 100% of beneficiaries noted an improvement in their wellbeing and 85% felt in better physical condition by the end of the course.

Our Scotland Adults team was also able to deliver an online course to 11 beneficiaries with grant funding from the Robertson Trust, as well as an online employability course commissioned by the DWP to 16 beneficiaries.

We have been able to continue our work at all four of the Scotland schools we were delivering at prior to Covid-19 school closures, via virtual sessions for the current academic year. As inperson delivery opened in schools towards the end of the financial year, our schools programme continued to combine in-person activity with virtual sessions to provide one-toone support to our pupils. The 2021-2022 academic year looks promising for our Scotland Schools team as we look to double our number of schools and return to fully in-person delivery, starting with a summer camp in 2021.

Wales

Our Wales Adult programme has been successful in securing grant funding from Comic Relief and the National Lottery ‘Awards for All’ to deliver 5 adult courses in 2020-2021. We were able to deliver one Comic Relief-funded course prior to the December 2020 lockdown by adapting delivery within Covid-19 restrictions and produced great outcomes for our beneficiaries including improvement in wellbeing, confidence, and employability skills. The course also included the additional resource of two psychotherapists that have further developed new content for continued use within the adult programme.

In addition to in-person delivery, our adult team delivered an online course funded by the National Lottery Awards for All, and via our partnership with the WRU that commissioned 7 online courses. These courses saw a 54% into-work rate after the course and 82% reached a positive destination including further training, referrals to our partners, or volunteer work. This has led to a strong relationship with the Welsh Rugby Union and we are optimistic about our future partnership to deliver more in-person work within the new financial year.

We have been able to maintain delivery at all our Wales schools and were able to add three additional schools at the start of the 2020-2021 academic year. While virtual mentoring has had its struggles, the schools saw an increase in engagement once delivery was able to return to in-person activity combined with online mentoring. Our Wales Schools’ teams developed wellbeing packs for pupils which have been used by multiple organizations as a standard of good practice in engaging with young people during lockdown. We have secured three new schools for the 2021-2022 academic year, which will bring our number of Wales schools to 10 in total and is a testament to the resiliency of the programme and the staff’s ability to adapt how they communicate to pupils during the Covid-19 pandemic, which will prove a valuable resource for the charity in the future.

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Trustees’ report 31 March 2021

Achievements and performance (continued)

Fundraising

The charity experienced a decrease in overall income as a result of the Coronavirus pandemic, though we are extremely happy to have maintained a strong and stable financial position and cashflow throughout the financial year due to diligent cost control, reduced delivery spending, and the Coronavirus Job Retention Scheme all of which have attributed to the charity’s ongoing financial security.

Our income in 2020-2021 continued to be driven largely by grant income, which contributed 37% (2020-36%) of our overall turnover. This also includes grant income received from the Coronavirus Job Retention Scheme as well as multi-year grant funding.

As part of our fundraising strategy and our planned delivery in light of the Coronavirus pandemic detailed in the 2020 accounts, we were successful in adapting our programmes as face-to-face delivery was limited throughout the year. The shift to online delivery allowed us to commission courses with the DWP, the WRU, the RFU, and our corporate partners which allowed us to diversify our income and achieve our fundraising strategy.

Although our summer fundraiser and our annual End of Dry January event were cancelled causing a 33% decrease in income from fundraising events compared to the prior year, we were successful in executing multiple virtual fundraising events including online quizzes, a social media ‘Bake or Break’ challenge, an online summer auction, and most notably a virtual Land’s End to John o’ Groats cycle fundraiser which raised over £76k. This was instrumental in the charity ending the financial year with £149,405 in unrestricted reserves and thus meeting our reserves target of £150k as outlined in the 2020 accounts.

Approach to fundraising

SOHK is a values-driven charity that conducts its activities in line with the highest ethical standards. The charity uses a mixed funding economy to spread risk and ensure stability. Currently, the main methods for accessing individual donors are fundraising events, personal referrals from ambassadors and social media campaigns targeted at friends and supporters of the charity. This greatly reduces the risk of SOHK inadvertently contacting members of the public, especially vulnerable people, in an unreasonably intrusive or persistent manner. The charity has robust internal policies on data collection and handling, is fully GDPR compliant and has a robust, externally validated complaints procedure. The charity is prepared to refund any donation which is shown to have been gained through unreasonable fundraising, whether advertently or inadvertently. During the year the charity received no complaints in respect of its fundraising activities.

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Trustees’ report 31 March 2021

Achievements and performance (continued)

Looking ahead

Delivery during the Coronavirus pandemic has brought about numerous challenges, including reduced income, postponement and deferment of grant-funded courses, furloughed staff, and the ability for staff to connect in-person with each other and beneficiaries. However, in confronting these challenges, we have undoubtedly become a stronger organization.

The determination of the SOHK staff to continue to fulfil the vision and mission of the charity led to an entirely new approach to delivery and the creation of a live, online course called ‘Back in the Game’. Virtual delivery has not only allowed us to diversify our income throughout the year and aided in maintaining financial security and increasing our unrestricted reserves, but it has also allowed us to inter-connect staff between the three regions as they have been able to deliver virtually on the same courses-something that would very seldom occur in faceto-face delivery.

This has allowed for increased knowledge of best practices between staff and allowed for greater consistency in our services across the regions that are invaluable lessons to the charity for the future. Online delivery has also established multiple commissioned sources that we hope to continue as long-term partnerships to deliver both online and in-person courses.

The circumstances brought about by the Coronavirus pandemic has necessitated the development of the charity. Our schools’ programmes will continue to utilize the online resources created during lockdown and will continue to utilize one-to-one mentoring with pupils as we look to bring more behavioural support into our schools across the three regions. Our adults programmes will continue to be delivered through both our shortened, virtual course as well as in-person courses with the aim of achieving high impact outcomes and reaching an increased number of beneficiaries.

How our activities deliver public benefit

All our programmes focus on either relieving unemployment or advancing education through creating internal changes, which then affect external behaviour.

Throughout our work, we aim to relieve unemployment and prevent exclusion from school. If someone who has been unemployed gains sustainable employment, it benefits their families and particularly their children, their friends and their physical, mental and economic health. Similarly, children who are excluded from school are statistically more likely to offend, achieve poor educational outcomes, become unemployed and suffer from poorer mental and physical health. Relieving and preventing these issues delivers a clear public benefit.

2. Can we make a difference? Is there a sufficient geographical concentration of beneficiaries for us to run group-based interventions? How well is the area served by other agencies? Are there location-specific barriers to our types of work? Can we meet the logistical challenges of working there?

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Trustees’ report 31 March 2021

Achievements and performance (continued)

How our activities deliver public benefit (continued)

  1. Can we fund our work there? Is the area a priority area for national funders? How many local funders are there who might be favourable to us and able to fund our work? How competitive is the funding landscape in the area?

Using these criteria, we will continue to establish our presence throughout England, Scotland, and Wales as well as improve our delivery and adapt our courses as the charity navigates the continued effects of the Coronavirus pandemic.

Outside the UK, our award winning sister project in South Africa continues to deliver SOHK programmes; these projects are helped via a sharing of knowledge and best practice rather than financial support.

Financial review

Our revenue

SOHK’s revenue decreased by 15% compared to the last year. This was largely due to the deferment (£207k) of restricted grant income needed to postpone delivery during the Coronavirus pandemic into the new financial year. The charity was successful in multiple virtual fundraising events that allowed the charity to meet our reserves target set in the 2020 accounts despite the Coronavirus pandemic and the postponement of delivery.

We experienced a 63% decrease in corporate income compared to the prior year due to a shift in funding strategy within our Wales Adult programme. As detailed in the 2020 accounts, the Wales Adults programme had to rely on unrestricted funds to continue increasing delivery between 2018 and 2020. At the end of the financial year ending 31 March 2020, we secured a multi-year grant from Comic Relief to deliver 12 courses over 3 years that allowed us to shift towards more stable grant funding. We have not completely ceased the commissioning of our work from corporate partners as we have established a partnership with the Welsh Rugby Union to deliver our Back in the Game course to unemployed adults.

We experienced a 317% increase in unrestricted grant income compared to the prior year due to the Coronavirus Job Retention Scheme which was utilized by the charity primarily during the summer months of 2020 when delivery was heavily paused across all programmes. Though the charity has deferred a large portion of restricted grant income to support postponed delivery that will now take place in the new financial year or grants that cover the current academic year, restricted grant income continues to be a large portion of the charity’s income (31% in 2021 compared to 33% in 2020).

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Trustees’ report 31 March 2021

Financial review

Our revenue (continued)

We experienced a 25% decrease in fee income compared to the prior year due to continued school closures at the start of the 2020-2021 academic year which particularly affected our schools’ income in England and Scotland. We were successful however in securing DWP contracts in England and Scotland to deliver our Back in the Game course as a part of our fundraising strategy detailed in the 2020 accounts. This has enabled us to diversify the charity’s income and reduce our over-reliance on restricted grant income that has needed to be deferred. Our DWP funding in West London will continue within the new financial year as we strive to maintain multiple income sources and utilize our deferred income as a financial runway needed to continue expanding course delivery.

Principal funding sources

Grant income accounted for 45% of SOHK’s income. The principal sources of this were Comic Relief, the Quilter Foundation, Laureus Sport for Good, Masonic Charitable Foundation, the SOL Foundation, the Young Londoners’ Fund from the Greater London Authority, Paul Hamlyn Foundation, the Walcot Foundation, and the Coronavirus Job Retention Scheme.

Aside from grant income, SOHK received 18% of our total turnover in contracted income, with the majority from the contribution made by schools and the DWP.

Reserves policy

The trustees have considered the charity’s need for free reserves. These are required to cover an unexpected loss of income, cash flow shortage, or unforeseen operational cost.

For some years now, the charity has set a reserve target which has proved extremely difficult to fund practically. In recognition of this, the charity established a risk level reserves target within the last financial year that set a short-term and a medium-term reserves target. As outlined in the 2020 accounts, the trustees set the reserves target of £150,000 by 31 March 2021. We are extremely pleased to have reach this reserve target with a level of free reserves totalling £149,405.

As this milestone has been achieved, the charity will work towards the medium-term reserves target which considers risks to multi-year funding, planned commitments, and key risks of the charity identified in the risk register. This currently equates to £300,000 and aims to have sufficient free reserves to cover the provision of three months’ delivery of the charity’s programmes within 3 years from 31 March 2021.

Financial position

At the year end the balance sheet showed total funds of £166,300 (2020- £94,878). Of these £16,895 were restricted (2020 £-20,086). At the year-end free reserves were £149,405 (2020£114,964). The charity ended the year with a net surplus of £71,467, nearly achieving our targeted surplus of £75k as detailed in the 2020 accounts.

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Trustees’ report 31 March 2021

Going concern

Following a thorough going concern assessment at the end of the 31 March 2020 financial year and navigating the 31 March 2021 financial year with an initial level of unknown and uncertainty in light of the Coronavirus pandemic, the charity has followed the advice of the UK government regarding employees working from home, social distancing measures, and further Coronavirus restrictions throughout the year and has established procedures to facilitate virtual delivery of our programmes and effective support functions such as finance and administration remotely. As unemployment, homelessness, and mental health issues continue to rise as a result of the Coronavirus pandemic, our case for support continues to increase with the challenges facing our beneficiaries.

The trustees and senior staff remain highly conscious of the potential ongoing impact of the Coronavirus pandemic on how the charity will operate delivery and administrative functions in the long-term. However, the trustees are confident in the charity’s ability to continue to adapt, whether in-person or online to provide a much-needed service. This can be seen in the charity’s ability to maintain a stable financial position and cashflow throughout the financial year by executing diligent cost control and by diversifying the charity’s income sources as outlined in the charity’s fundraising strategy.

The trustees continue to monitor and maintain sufficient cashflow and continue to execute the Board’s Finance Subcommittee monthly review of the financial position of the charity and each programme, the balance of restricted and unrestricted funds, and the balance sheet, profit and loss, and budget variance for the year to date.

On the basis of their assessment of the Charity’s financial position the Trustees have continued to adopt the going concern basis in preparing the financial statements.

Plans for Financial Year 2021-2022

SOHK will prioritise the delivery of postponed courses, commissioning of our online Back in the Game course and establishing long-term partnerships, securing additional schools across all regions, and executing multiple fundraising events to continue increasing our unrestricted reserves.

Restricted grant income will continue to be our main source of income, compromising 47% of our forecasted budget.

Sales income (income from fundraising events and contracted income from schools and commissioned courses) compromises 40% of our forecasted budget. This is a 10% increase compared to the 31 March 2021 financial year and is a target of the charity in order to continue increasing our level of free reserves. The contribution from schools to the costs of the school programme is an integral part of our financial sustainability. It also ensures that the schools have ‘skin in the game’ and so cooperate on the management and information sharing necessary to the programme. SOHK now has a well-structured income pipeline, with a clear process for engaging and securing schools, and we aim to increase delivery and therefore revenue from schools in all three regions next academic year.

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Trustees’ report 31 March 2021

Plans for Financial Year 2021-2022 (continued)

As well as generating revenue, the trustees recognise the need to continue our cost control processes and the continuation of the Board’s Finance Subcommittee with the charity’s finance manager. Remaining in surplus is a critical aim for SOHK and streams of work which are not financially sustainable will be paused or scaled back. The charity aims to deliver a surplus of £75,000 in the current financial year and aims to increase our level of free reserves by 5% of our turnover to work towards the medium-term reserves target of £300,000.

Structure, governance and management

Governing document

The organisation is a charitable company limited by guarantee, incorporated on 17 August 2011. It is registered with the Charity Commission, charity number 1147009. The charity was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association.

The charity registered with OSCR, the Scottish Charity Regulator, on 9 November 2015, charity number SC046118.

Recruitment and appointment of trustees

The directors of the company are also charity trustees for the purposes of charity law and Members for the purposes of the Articles of Association. The management of the charity is the responsibility of the trustees who are elected for three-year terms for a maximum of nine years, under the terms of the Articles of Association. The charity is managed by the trustees via periodic Board meetings and the day to day operation of the charity is delegated by the trustees to Mr. Ken Cowen, the Chief Executive Officer.

The trustees review each year the skills and experience of the Board of Trustees and

determine the need to appoint further trustees.

The Members of the company guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up.

Key management personnel

The key management personnel of the charity in charge of directing, controlling, running and operating the charity on a day-to-day basis comprise the trustees (who are not remunerated), the Chief Executive, the Operations Manager and the Finance Manager.

Their remuneration is set annually by the Board, considering individual performance, the performance of the charity as a whole, and the financial outlook of the charity. This process is informed by SOHK’s Performance & Development Reviews, which are conducted by line managers with all staff and by the Chair of Trustees for the CEO.

Employee involvement and employment of the disabled

Employees have been consulted on issues of concern to them by means of regular staff meetings and have been kept informed on specific matters directly by management. The charity has implemented a number of policies in relation to all aspects of personnel matters:

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Trustees’ report 31 March 2021

Structure, governance and management (continued)

Employee involvement and employment of the disabled (continued)

 Health and safety policy

In accordance with the charity’s equal opportunities policy, the charity has established fair employment practices in recruitment, selection, retention and training of disabled staff.

Full details of these policies are available from the charity’s offices.

Risk management

The trustees have conducted a review of the major risks to which the charity is exposed. A risk register has been established and is updated quarterly. Where appropriate, systems or procedures have been established to mitigate the risks the charity faces. The charity has a strategic plan, business plan, and fundraising plan, updated annually, which considers and mitigates major risks to the organisation. Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures re in place to ensure compliance with health and safety of staff, volunteers and clients.

SOHK’s risk register scores risks for their probability and severity, to give an unmitigated risk score. Mitigation is then put in place and the risk is re-evaluated. The charity’s risk registers show the biggest unmitigated risks to the charity to be the following (the mitigation is also included):

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Trustees’ report 31 March 2021

Structure, governance and management (continued)

Risk management (continued)

Trustees' Responsibilities Statement

The trustees (who are also directors of the charitable company 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 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:

School of Hard Knocks 12

Trustees. report 31 March 2021 Structure, governan¢o and management {¢onlinuedl Trustees, Responsibilities Statement Iconlinuedl The Iruslees are responsible lor keeping proper accounting records thal digclose with reasonable accur2cy al any lime the linan¢ial position ol the charitable company and enable Ih&m lo ensure that the financial slalemenls comply with the Companies Act 2006, the Charities and Tru51ee Investment IScolland} Acl 2005 and the Charities Accounts Iscollandl, Regulations 2006. They are also responsible for safeguarding the assets of the charitable cotllpany and hence lor taking reasonable steps lor the prevention and detection of fraud and other iiregularilies. Each of the Trustees confirms thal.. so f81" as the Trustee is aware, there is no relevant audit information of which the ¢harily's auditor is Linaware,. and the Trustee has laken all the steps Ihal helshe ought lo have taken as a Trustee in order lo make himselflhersell aware of any relevant audit information and lo establish that the charity s auditor is aware ol that infom)alion. This confirmation is given and should be inlerpreled in accordance with the provisions of s418 of the Companie5 Act 2006. The Iruslees are responsible for the maintenance and integrity of the corporate and financial information included in the charity's website. Le9islalion in the United Kingdom governing the preparation and dissemination of finan¢ial slalemenls may differ from legislation in other jurisdictions. In preparing this report, the Trustees have taken advantage of the small ¢ompanies' exemptions provided by section 415A of the Companies Act 20￿. Approved by the Iruslees and signed on their behalf by.. Trustee Deborah Griffin Approved by the Iruslees on". b, £ ¥a 2021 School of Hard Knocks 13

Independent auditor’s report Year to 31 March 2021

Independent auditor’s report to the trustees and members of School of Hard Knocks

Opinion

We have audited the financial statements of School of Hard Knocks (the ‘charitable company’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the 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 group and charitable parent 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.

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Independent auditor’s report Year to 31 March 2021

Other information

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

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.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

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Independent auditor’s report Year to 31 March 2021

Responsibilities of trustees

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

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

Auditor’s responsibilities for the audit of the financial statements

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

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

How the audit was considered capable of detecting irregularities including fraud Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

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Independent auditor’s report Year to 31 March 2021

Auditor’s responsibilities for the audit of the financial statements (continued)

We assessed the susceptibility of the charity’s financial statements to material misstatement, including how fraud might occur by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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Independent auditor’s report Year to 31 March 2021

Auditor’s responsibilities for the audit of the financial statements (continued)

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

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 to the charity’s trustees as a body, in accordance with Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Catherine Biscoe (Senior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

Date: 27 September 2021

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Statement of financial activities

(incorporating an Income and Expenditure Account) Year to 31 March 2021

Notes Unrestricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£



Unrestricted
funds
£		 Restricted
funds
£
2020
Total
funds
£
Income and expenditure
Income from:
Donations
1
Other trading activities
2
Charitable activities
• Provision of training courses
3
Coronavirus Job Retention
Scheme Grants
4
Total income
Expenditure on:
Raising funds
5
Charitable activities
• Provision of training courses
6
Total expenditure
Net income (expenditure)
before transfers
Transfer between funds
16
Net movement in funds for the
year
16
Reconciliation of funds:
Fund balances brought forward at
1 April 2020
Fund balances carried forward
at 31 March 2021		 280,199
110,728
225,520
131,678		 10,000
9,468
340,153
—		 290,199
120,196
565,673
131,678
390,963

178,843

300,935

—		 —
1,471
434,801
—
390,963

180,314

735,736
—
748,125 359,621 1,107,746
870,741		 436,272 1,307,013
81,433
597,853		 28,963
328,030		 110,396
925,883
152,426

706,169		 22,917
433,878
175,343
1,140,047
679,286 356,993 1,036,279
858,595		 456,795 1,315,390
68,839
—
2,628
—		 71,467
—
12,146

(34,398)		 (20,523)
34,398		 (8,377)

—
68,839
80,566
2,628

14,267		 71,467
94,833
(22,252)

102,818		 13,875
392		 (8,377)
103,210
149,405
16,895		 166,300
80,566		 14,267 94,833

All of the charity’s activities derived from continuing operations during the above two financial periods.

All recognised gains and losses are included in the above statement of financial activities.

School of Hard Knocks 19

Balance sheet 31 March 2021 2021 2021 2020 2020 Notes Flxed asset5 Tangible assets 13 940 1,883 Current assets Debtois Gash al bank ènd in hand 14 139,GG1 321,189 460.850 64,139 161.432 225.571 Creditors.. amounls falling due within on8 year 15 1295,4901 1132,6211 Met current assets 165,360 92,950 Total net assets 166,300 94,833 The funds of th? charlty: Unreslri¢led funds General fund Reslricled lun(Ss Total charity funds 16 16 149,405 16,895 166,300 80.566 14,267 94,833 The financial slalemenls have been prepared in accordan￿ with the small companies exemptions provided by section 415A ol the Companies Act 2006. Approved by the Iruslees and signed on their behalf by.. Deborah Griffin Trustee Approved on.. Company Registration Number.. 07743730 (England and Wales) Charity Registration Numbers.. 1147009 (England and Wales) and SC046110 IScolland} School of Hard Knocks 20

Statement of cash flows Year to 31 March 2021

Notes
2021
£		 2020
£
Cash flows from operating activities:
Net cash provided by operating activities
A
Cash flows from investing activities:
Purchase of tangible fixed assets
Net cash used in investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 April 2020
B
Cash and cash equivalents at 31 March 2021
B

159,757		 12,852


—		 (1,751)
— (1,751)

159,757


161,432
 11,101
150,331

321,189		 161,432

Notes to the statement of cash flows for the year to 31 March 2021.

A Reconciliation of net movement in funds to net cash used in operating activities

2021
£		 2020
£
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Depreciation charge
(Increase) decrease in debtors
Increase (decrease) in creditors
Net cashprovided by operating activities
71,467
943
(75,522)
162,869		 (8,377)
942
32,938
(12,651)
159,757 12,852

B Analysis of changes in net debt

Analysis of changes in net debt
As at 31
March 2020
£		 Cash flows
£		 As at 31
March 2021
£
Cash at bank and in hand
Total cash and cash equivalents		 161,432 159,757
321,189
161,432 159,757
321,189

No separate reconciliation of net debt has been prepared as there is no difference between the net cash (debt) of the charity and the above cash and cash equivalents.

School of Hard Knocks 21

Principal accounting policies Year to 31 March 2021

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.

Basis of preparation

These financial statements have been prepared for the year to 31 March 2021, with comparative information given in respect to the year ended 31 March 2020.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011, Charities Accounts (Scotland) Regulations 2006 and the Companies Act 2006.

The charity constitutes a public benefit entity as defined by FRS 102.

The financial statements are presented in sterling and are rounded to the nearest pound.

Assessment of going concern

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements.

The trustees and senior staff remain highly conscious of the potential ongoing impacts of the Coronavirus pandemic on how the charity will operate delivery and administrative functions in the long-term. However, the trustees are confident in the charity’s ability to continue to adapt whether in-person or online to provide a much-needed service. This can be seen in the charity’s ability to maintain a stable financial position and cashflow throughout the financial year by executing diligent cost control and by diversifying the charity’s income sources as outlined in the charity’s fundraising strategy.

The trustees continue to monitor and maintain sufficient cashflow and continue to execute the Board’s Finance Subcommittee monthly review of the financial position of the charity and each programme, the balance of restricted and unrestricted funds, and the balance sheet, profit and loss, and budget variance for the year to date.

On the basis of their assessment of the Charity’s financial position the Trustees continue to adopt the going concern basis in preparing the financial statements.

School of Hard Knocks 22

Principal accounting policies Year to 31 March 2021

Critical accounting estimates and areas of judgement

Preparation of the financial statements requires the trustees and management to make significant judgements and estimates.

The items in the financial statements where these judgements and estimates have been made include:

Income recognition

Income is recognised in the period in which the charity has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received.

Income comprises donations and grants, fee income, sponsorship, income from events and investment income.

Donations are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

Donated services provided to the charity are recognised in the period when it is probable that the economic benefits will flow to the charity, provided they can be measured reliably. This is normally when the service is provided to the charity. An equivalent amount is included as expenditure.

Donated services are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services of equivalent economic benefit on the open market.

In accordance with the Charities SORP FRS 102 volunteer time is not recognised.

School of Hard Knocks 23

Principal accounting policies Year to 31 March 2021

Income recognition (continued)

Grants and fee income from government and other agencies have been included as income from charitable activities where these amount to a contract for services, but as donations where the money is given in response to an appeal or with greater freedom of use, for example monies for core funding. Income is deferred when the charity has not satisfied the requirements for entitlement or when the donor has specified funds for use in a future accounting period. Income from the Government’s Coronavirus Job Retention Scheme is recognised when the charity has made a valid claim for the income, the amount can be measured and when it is entitled to receive the income. Sponsorship income is receivable on an annual basis in recognition of the charity’s participation in certain activities.

Fee income is recognised once the charity has fully met all performance criteria as specified in the relevant contract.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings. The classification between activities is as follows:

All expenditure is stated inclusive of irrecoverable VAT.

Allocation of support and governance costs

Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charity it is necessary to provide support in the form of project management carried out at Headquarters, personnel development, financial procedures, provision of office services and equipment and a suitable working environment.

School of Hard Knocks 24

Principal accounting policies Year to 31 March 2021

Allocation of support and governance costs (continued)

Governance costs comprise the costs involving the public accountability of the charity (including audit costs) and costs in respect to its compliance with regulation and good practice.

Support costs and governance costs are allocated to the charity’s sole activity, provision of training courses.

Taxation

Accounting policies Corporation tax - The company is a charity under the Finance Act 2010 (schedule 6, paragraph 1) definition. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains within categories covered by the Corporation Tax Act 2010 (part 11, chapter 3) or the Taxation of Chargeable Gains Act 1992 (section 256), to the extent that such income or gains are applied exclusively to charitable purposes. No tax charge arose in the period.

Tangible fixed assets and depreciation

All assets costing more than £1,000 are capitalised.

Tangible assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful economic lives on the following basis:

Computer equipment 33.33% straight line Outdoor equipment 33.33% straight line Motor vehicles 20.0% straight line

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

School of Hard Knocks 25

Principal accounting policies Year to 31 March 2021

Funds

Restricted funds comprise monies raised for, or their use restricted to, a specific purpose, or contributions subject to donor imposed conditions.

The general fund represents those monies which are freely available for application towards achieving any charitable purpose that falls within the School of Hard Knock’s charitable objects.

Pension costs

Contributions in respect of the charity’s defined contribution scheme are charged to the statement of financial activities when they are payable to the scheme.

School of Hard Knocks 26

Notes to the financial statements Year to 31 March 2021

1 Income from donations

Income from donations
Unrestricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£
Individuals
Corporate donations
Trusts and Foundations
Gifts in Kind
2021 Total funds		 127,650
38,065
13,500
100,984		 10,000
—
—
—		 137,650
38,065
13,500
100,984
280,199 10,000 290,199
Unrestricted
funds
£		 Restricted
funds
£		 2020
Total
funds
£
Individuals
Corporate donations
Trusts and Foundations
Gifts in Kind
2020 Total funds		 159,721
103,630
14,540
113,072		 —
—
—
—		 159,721
103,630
14,540
113,072
390,963 — 390,963

2 Income from other trading activities

Income from other trading activities
Unrestricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£
Sponsorship income
Income from fundraising events
2021 Total funds		 —
110,728		 —
9,468		 —
120,196
110,728 9,468 120,196
Unrestricted
funds
£		 Restricted
funds
£		 2020
Total
funds
£
Sponsorship income
Income from fundraising events
2020 Total funds		 768
178,075		 —
1,471		 768
179,546
178,843 1,471 180,314

3 Income from charitable activities

Income from charitable activities
Unrestricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£
Grant income
Fee income
2021 Total funds		 27,500
198,020		 340,153
—		 367,653
198,020
225,520 340,153 565,673

School of Hard Knocks 27

Notes to the financial statements Year to 31 March 2021

3 Income from charitable activities (continued)

Income from charitable activities(continued)
Unrestricted
funds
£		 Restricted
funds
£		 2020
Total
funds
£
Grant income
Fee income
2020 Total funds		 38,195
262,740		 434,801
—		 472,996
262,740
300,935 434,801 735,736

Income from charitable activities includes £47,100 (2020 - £85,150) received from Government.

4 Other income

Other income
Unrestricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£
Coronavirus Job Retention Scheme grants
2021 Total funds		 131,678 — 131,678
131,678 — 131,678

5 Expenditure on raising funds

Expenditure on raising funds
Unrestricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£
Fundraising staff costs (note 10)
Cost of fundraising events
2021 Total funds		 74,437
6,996		 24,163
4,800		 98,600
11,796
81,433 28,963 110,396
Unrestricted
funds
£		 Restricted
funds
£		 2020
Total
funds
£
Fundraising staff costs (note 10)
Cost of fundraising events
2020 Total funds		 99,460
52,966		 18,582
4,335		 118,042
57,301
152,426 22,917 175,343

6 Expenditure on charitable activities
Unrestricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£
Training courses
Course delivery staff costs (note 10)
Support costs (note 7)
2021 Total funds		 50,304
282,023
265,526		 84,333
210,471
33,226		 134,637
492,494
298,752
597,853 328,030 925,883

School of Hard Knocks 28

Notes to the financial statements Year to 31 March 2021

6 Expenditure on charitable activities (continued)
Unrestricted
funds
£		 Restricted
funds
£		 2020
Total
funds
£
Training courses
Course delivery staff costs (note 10)
Support costs (note 7)
2020 Total funds		 123,778
263,756
318,635		 191,327
203,470
39,081		 315,105
467,226
357,716
706,169 433,878 1,140,047

7 Support costs
Unrestricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£
Office and rent costs
Communication costs
Accommodation, travel and subsistence costs
Staff expenses reimbursed
Insurance
Website and promotional material
Consultancy fees
Depreciation
Sundry expenses
Bad debt write off
Support staff costs (note 10)
Seconded personnel (note 10)
Irrecoverable VAT
Governance costs (note 8)		 67,467
—
2,742
456
1,329
4,624
65,163
942
5,316
—
96,744
—
5,318
15,425		 20,708
—
—
246
788
11,142
—
—
—
—
—
—
—
342		 88,175
—
2,742
702
2,117
15,766
65,163
942
5,316
—
96,744
—
5,318
15,767
265,526 33,226 298,752
Unrestricted
funds
£		 Restricted
funds
£		 2020
Total
funds
£
Office and rent costs
Communication costs
Accommodation, travel and subsistence costs
Staff expenses reimbursed
Insurance
Website and promotional material
Consultancy fees
Depreciation
Sundry expenses
Bad debt write off
Support staff costs (note 10)
Seconded personnel (note 10)
Irrecoverable VAT
Governance costs (note 8)		 84,908
—
14,006
4,267
2,411
10,497
45,914
942
9,086
18,118
93,097
4,186
4,625
26,578		 20,571
3,616
1,792
95
22
9,209
—
—
900
—
1,066
—
—
1,810		 105,479
3,616
15,798
4,362
2,433
19,706
45,914
942
9,986
18,118
94,163
4,186
4,625
28,388
318,635 39,081 357,716

All support costs are attributable to the charitable activities of the charity.

School of Hard Knocks 29

Notes to the financial statements Year to 31 March 2021

8 Governance costs

Governance costs
Unrestricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£
Accountancy and audit costs
Other professional fees
2021 Total funds		 13,297
2,128		 —
342		 13,297
2,470
15,425 342 15,767
Unrestricted
funds
£		 Restricted
funds
£		 2020
Total
funds
£
Accountancy and audit costs
Other professional fees
2020 Total funds		 22,189
4,389		 —
1,810		 22,189
6,199
26,578 1,810 28,388

9 Net income (expenditure)

This is stated after charging:

2021
Total
funds
£		 2020
Total
funds
£
Staff costs (note 10)
Depreciation of tangible fixed assets
Auditor’s remuneration
. StatutoryAudit		 687,838
942
10,980		 683,617
942
10,500

10 Staff costs

Staff costs were as follows:

Staff costs
Staff costs were as follows:
2021
£		 2020
£
Wages and salaries
Social security costs
Pension costs
Gift in kind: seconded personnel		 617,933
51,800
18,105		 609,877
52,025
17,529
687,838
—		 679,431
4,186
687,838 683,617

Total staff costs have been allocated between expenditure on raising funds, course delivery, governance and support costs based on the approximate percentage of staff time spent in each area, as follows:

School of Hard Knocks 30

Notes to the financial statements Year to 31 March 2021

10 Staff costs (continued)

Staff costs(continued)
2021
£		 2020
£
Expenditure on raising funds
Course delivery
Support costs		 98,600
492,494
96,744		 118,042
467,226
94,163
687,838 679,431

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

2021
No.		 2020
No.
Management
Operational		 3
17		 3
16
20 19

One employee received remuneration between £60,000 and £70,000 in the year (2020 - one). Pension contributions of £1,950 (2020 - £1,950) were paid in respect of this employee.

The key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis comprise the trustees (who are not remunerated), the Chief Executive, the Operations Manager and the Finance Manager. The total remuneration (including taxable benefits, employer's pension contributions and employers national insurance contributions) of the key management personnel for the year was £152,142 (2020 - £149,277).

11 Trustees’ remuneration

No trustee received any remuneration for services or reimbursed expenses as a trustee in the current year (2020 - none).

12 Taxation

School of Hard Knocks is a registered Charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

School of Hard Knocks 31

Notes to the financial statements Year to 31 March 2021

13 Tangible fixed assets

14 Cost
At 1 April 2020 and 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Computer
equipment
£
2,824
942
942
1,884
940
1,882
2021
£
128,546
9,754
1,361
139,661		 Total
£
2,824
942
942
1,884
940
1,882
Debtors
2020
£
Trade debtors
Prepayments and accrued income
Other debtors		 50,671
4,525
8,943
64,139

15 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
2021
£
55,338
14,999
3,061
4,467
217,625
295,490
2021
£
48,781
(208,290)
(48,781)
208,290		 2020
£
Trade creditors
Other taxation and social security
VAT
Other creditors
Accruals and deferred income		 46,210
14,813
—
4,208
67,390
132,621
2020
£
Deferred income brought forward at 1 April 2020
Income deferred in year
Deferred income released in year
Deferred income carried forward at 31 March 2021		 51,153
48,781
(51,153)
48,781

School of Hard Knocks 32

Notes to the financial statements Year to 31 March 2021

16 Statement of funds

At
1 April
2020
£		 Income
£		 Expenditure
£		 Transfers
£		 At
31 March
2021
£
Unrestricted funds
General
Cardiff Central Unrestricted
Vale Unrestricted
Restricted funds
Aspiring Communities
Coalfields
Comic Relief
Fidelity Foundation
John Lyon’s Charity
Laureus Sport for Good
Masonic Charitable
Foundation
National Lottery Awards for
All
Paul Hamlyn Foundation
Paul Hamlyn Covid-
Response
Quilter Foundation
Robertson Trust
Sir John Cass Foundation
SJP Foundation
SOL Foundation
Tabard RFC
Walcot Foundation
Wates Foundation
Young Londoners Fund
Total funds		 77,269
—
3,297		 616,447
131,678
—		 (547,608)
(131,678)
—		 —
—
—		 146,108
—
3,297
80,566 748,125 (679,286) — 149,405
—
—
—
—
—
3,298
—
—
6,825
—
—
—
—
2,066
—
—
—
—
2,078		 17,344
18
70,796
30,729
8,949
34,288
29,691
9,405
23,228
6,150
28,086
14,000
5,388
—
30,247
19,468
13,788
18,046
—		 (17,344)
(18)
(68,728)
(30,729)
(8,949)
(32,955)
(29,691)
(9,405)
(22,478)
(6,150)
(28,086)
(14,000)
(5,388)
(2,066)
(30,247)
(18,925)
(13,788)
(18,046)
—		 —
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—		 —
—
2,068
—
—
4,631
—
—
7,575
—
—
—
—
—
—
543
—
—
2,078
14,267 359,621 (356,993) — 16,895
94,833 1,107,746 (1,036,279) — 166,300

School of Hard Knocks 33

Notes to the financial statements Year to 31 March 2021

16 Statement of funds (continued)

At
1 April
2019
£		 Income
£		 Expenditure
£		 Transfers
£		 At
31 March
2020
£
Unrestricted funds
General
Cardiff Central Unrestricted
Vale Unrestricted
Restricted funds
Aberdeen Asset
Active Wales
Aspiring Communities
Bill McLaren Foundation
Fidelity Foundation
John Lyon’s Charity
Laureus Sport for Good
Masonic Charitable
Foundation
Paul Hamlyn Foundation
Prince of Wales Charitable
Foundation
Quilter Foundation
Robertson Trust
Scottish Children’s Lottery
Sir John Cass Foundation
SJP Foundation
SOL Foundation
Tabard RFC
The Monica Rabagliati
Charitable Trust
Wates Foundation
Young Londoners Fund
Total funds		 102,818
—
—		 820,241
30,000
20,500		 (811,393)
(30,000)
(17,203)		 (34,398)
—
—		 77,269
—
3,297
102,818 871,741 (858,595) (34,398) 80,566
—
—
—
—
—
—
1,501
—
—
—
—
—
—
—
2,066
(5,253)
—
—
—
2,078		 18,291
(7,126)
43,036
5,000
42,144
30,000
47,882
26,050
28,500
1,500
24,724
14,000
10,000
10,000
32,820
50,527
7,816
3,000
20,000
28,108		 (18,291)

(26,435)
(43,036)
(5,000)
(42,144)
(30,000)
(46,085)
(26,050)
(21,675)
(1,500)
(24,724)
(14,000)
(10,000)
(10,000)
(32,820)
(46,111)
(7,816)
(3,000)
(20,000)
(28,108)		 —
33,561
—
—
—
—
—
—
—
—
—
—
—
—
—
837
—
—
—
—		 —
—
—
—
—
—
3,298
—
6,825
—
—
—
—
—
2,066
—
—
—
—
2,078
392 436,272 (456,794) 34,398 14,267
103,210 1,307,013 (1,315,390) — 94,833

Aberdeen Asset Management

Aberdeen Asset Management kindly supported us with a donation to run one adult employability course in Scotland.

School of Hard Knocks 34

Notes to the financial statements Year to 31 March 2021

16 Statement of funds (continued)

Active Wales

The Active Inclusion Fund (part of the East Wales European Social Fund overseen by the Welsh Government) awarded grants to SOHK to work with long-term unemployed and economically inactive adults. Our last grant from Active Wales covered a project that took place in FY19 and was accrued into 2019, with our final claim received in FY20. Wales Adult therefore had to rely on unrestricted funds to continue increasing delivery within the last 2 years. We are extremely pleased to have secured a grant from Comic Relief that will allow us to run 12 courses over the next 3 years and shift our unrestricted income towards achieving our free reserves target.

Aspiring Communities

Aspiring Communities (part of Project Scotland) provided a grant to run one adult course at Inch Park in Edinburgh focused on mental wellbeing.

Comic Relief

Comic Relief awarded 3 years of funding from 2020 to deliver adult courses in Wales with psychotherapy support.

Bill McLaren Foundation

The Bill McLaren Foundation contributed a grant towards the costs of running SOHK for Schools in Scotland, in one of our Fife Schools.

Fidelity Foundation

The Fidelity Foundation gave us funding for 2 years starting in 2019, covering the marketing executive's full salary for the first year as well as one-off costs to establish our online membership scheme. The second year covers 50% of the marketing exec's salary and filming/editing costs.

John Lyon's Charity

John Lyon's Charity provided a grant to allow us to expand our schools programme into West London. The grant supports our schools programme for 3 years with the first instalment received in December 2018 for work that started in September 2019 and was deferred into the 2019 financial year.

Laureus Sport for Good

Laureus Sport for Good funded five SOHK for Schools cohorts working with girls – two in Cardiff, two in Fife and one in London. Work with these girls’ cohorts is ongoing.

Masonic Charitable Foundation

The Masonic Charitable Foundation kindly gave us funding for three years starting in 2019 for our work with children at risk of exclusion in Wales.

Monica Rabagliati Charitable Trust

The Monica Rabagliati Charitable Trust supported our schools work in England with a general grant.

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Notes to the financial statements Year to 31 March 2021

National Lottery

National Lottery Awards for All provided funding to support adult work in Wales and is being used to provide our on line ‘Back in the Game’ course.

Paul Hamlyn Foundation

The Paul Hamlyn Foundation provided a two-year grant starting in 2019 to support our behavioural specialists and mentoring programme in 5 of our Wales Schools.

Prince of Wales Charitable Foundation

The Prince of Wales Charitable Foundation supported our schools work in Wales with a general grant.

Quilter Foundation

The Quilter Foundation has provided a grant for three years starting in 2020 to fund two England adult courses per year.

Robertson Trust

The Robertson Trust gave SOHK a partial grant towards work with unemployed adults in Fife. The grant involves a contribution each year for three years starting in 2018.

Scottish Children’s Lottery

Chance to Succeed provided a grant to help partially fund SOHK for Schools in Fife.

Sir John Cass Foundation

Sir John Cass Foundation gave us funding for 2 years for our work in London schools, particularly Bacon's College and Westminster School.

SJP Foundation

St James’ Place Foundation generously supported our schools work in Wales for three years, the last grant instalment was received in 2019.

SOL Foundation

The SOL Foundation provided a grant to support our work in 3 London based schools for three years starting in 2018.

Tabard RFC

Tabard RFC and their President, Ross Hopcroft, have raised money to support our SOHK for Schools intervention in Hertfordshire. This funding will be used to support our Hertfordshire based schools.

Wates Foundation

The Wates Foundation fully funded a course for unemployed adults in Wales.

Young Londoners Fund

The Mayor’s Young Londoners Fund provided a grant to support our work in schools across London, working with children at risk of permanent exclusion for three years starting in 2018.

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Notes to the financial statements Year to 31 March 2021

Cardiff Central Unrestricted

Cardiff Central Unrestricted funded one Wales Adult course in Cardiff supported by our corporate partners.

Vale Unrestricted

Vale Unrestricted funded one Wales Adult course in Barry supported by our corporate partners.

Walcot Foundation

The Walcot Foundation provided funding to support adult work in England and is being used to support our on line ‘Back in the Game’ course.

17 Analysis of net assets between funds
Unrestricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£
Tangible fixed assets
Current assets
Creditors due within one year		 940
235,665
(87,200)		 —
225,185
(208,290)		 940
460,850
(295,490)
149,405 16,895 166,300
Unrestricted
funds
£		 Restricted
funds
£		 2020
Total
funds
£
Tangible fixed assets
Current assets
Creditors due within one year		 1,883
162,523
(83,840)		 —
63,048
(48,781)		 1,883
225,571
(132,621)
80,566 14,267 94,833

18 Related party transactions

During the year the charity received donations of £8,350 (2020 - £9,130) from the trustees. In addition, the charity received donations in kind in the form of donated auction prizes with a value of around £nil (2020 - £9,800) from the trustees.

In addition, the charity received pro bono services of £65,163 (2020 - £45,914) from a law firm of which one of the trustees is a partner.

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Notes to the financial statements Year to 31 March 2021

19 Commitments under operating leases

At 31 March 2021, the total of the charity’s future minimum lease payments under noncancellable operating leases was as follows:

2021
£		 2020
£
Amounts due within one year
Amounts due between two and five years inclusive		 11,950
52,183		 1,547
—
64,133 1,547

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