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2023-03-31-accounts

Registered number: 07984016 Charity number: 1148420

Spark Inside

(A company limited by guarantee)

Trustees' report and financial statements for the year ended 31 March 2023

Spark Inside

(A company limited by guarantee)

Contents

Page
Reference and administrative details of the Charity, its Trustees and advisers 1
Trustees' report 2 - 14
Independent auditors' report on the financial statements 15 - 18
Statement of financial activities 19
Balance sheet 20
Statement of cash flows 21
Notes to the financial statements 22 - 41

Spark Inside

(A company limited by guarantee)

Reference and administrative details of the Charity, its Trustees and advisers for the year ended 31 March 2023

Trustees R D Ferguson, Vice Chair
M Conway (resigned 1 August 2022)
K Imafidon (resigned 28 April 2022)
M Case (appointed 28 July 2022)
H MacLellan
S Davin
J Lyseight, Treasurer
E Handling, Chair
S Ruddock (resigned 25 April 2023)
S Drysdale (appointed 28 July 2022)
P Heardman (appointed 28 July 2022)
Company registered
number
07984016
Charity registered
number
1148420
Registered office
Unit 386
Salisbury House
London Wall
London
EC2M 5SQ
Chief executive officer
Vicki Cardwell
Independent auditors
Kreston Reeves LLP
Chartered Accountants
Statutory Auditor
Plus X Innovation Hub
Lewes Road
Brighton
East Sussex
BN2 4GL
Bankers
CAF Bank Ltd
West Malling
Kent
ME19 4JQ
Solicitors
Arnold & Porter LLP
Tower 42
25 Old Broad Street
London
EC2N 1HQ

Page 1

Spark Inside (A company limited by guarantee)

Trustees' report for the year ended 31 March 2023

The Trustees present their Annual report together with the audited financial statements of the Company for the year 1 April 2022 to 31 March 2023. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the Charity qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

A Message from our Board Chair

In last year’s Annual report, I wrote that in 2022/23 we would be “driving forward on delivery so we can continue to make a real difference.” I am pleased to say that we have absolutely delivered on that promise. In the face of enormous challenges, Spark Inside has had a stellar year and I am extremely proud of what the team has achieved.

Whilst most of society has moved well beyond Covid restrictions, the prison estate lags behind, with only 18 out of 122 prisons running a full regime of activities. Whilst there are continuing difficulties in accessing people for all charities working in prisons and YOIs, Spark Inside has been able to coach more than 200 young people this year and 80 prison staff to date. This means that we are now operating at pre-Covid levels, and we are seeing the incredible impact that our life-changing coaching support is having on participants.

All of this has been achieved because of the resilience and commitment of our staff and coaches, as well as the young people we are coaching. Their passion and drive is what sustains us, and the ability of our staff and coaches to build and maintain relationships with young people, with prison teams and other partner agencies, is what enables us to facilitate the successful delivery of our programmes. So we thank them wholeheartedly.

As well as increasing delivery we have grown our profile and influence, and made real strides towards our ambitions to drive culture change in the criminal justice system. We were proud to publish our Being Well Being Equal Report – created as part of our very first campaign, which called for the prioritisation of the wellbeing needs of young men, particularly young Black men in prison. We’ve been so encouraged to see the response to this Report and look forward to taking the next steps to ensure our calls to action are taken forward.

As Spark Inside continues on its own Hero’s Journey, aiming to grow and expand our reach in the coming year, we will hold on to our unwavering belief in the power of coaching. In the face of what we know are complex challenges, we will continue to be guided by our mission, to unlock the potential of individuals and drive culture change in the criminal justice system so that rehabilitation is possible. Our direction of travel will be shaped by the voices and experiences of the young people we serve. And the resilience, commitment and passion of our fantastic team will sustain us as we take our next steps.

My sincere thanks to the brilliant Spark Inside team, our amazing coaches, funders and donors and everyone working and living in prison who make what we do possible. We absolutely could not do this without you.

Erica Handling Chair, Board of Trustees

Page 2

Spark Inside (A company limited by guarantee)

Trustees' report (continued) for the year ended 31 March 2023

A Message from our CEO

This year has been one characterised by growth, exciting milestones and new adventures. Most of all this Annual report demonstrates significant, lasting change in young people’s lives made possible by their own commitment, effort and unique strengths. And it truly shows the power of coaching.

An incredible 96% of young people that Spark Inside has coached this year reported making progress in their lives. In real life terms, that meant for one young person: “Every area of my life, [my coach] sat down and helped me realise what I could do better, and I’ve taken that on board. I’ve now got my own business, which I’m building, I have the highest paying job I’ve ever been in by far and I’m in a healthy relationship. Everything is better now.” We were keen to make up for lost time after the pandemic, and to reach more people who live and work in prisons. We are proud to have coached many more prison staff including 9 Governors, expanded into a new prison and successfully piloted our innovative programme, Black Hero’s Journey.

We were delighted to see the results of an independent Cost Benefit Analysis of our Hero’s Journey programme, which found that every £1 invested in the Hero’s Journey generates at least £5.94 of benefits, for criminal justice agencies, health services, victims and employers. This means that the savings generated for society significantly outweigh the cost of our programme, which we were very pleased to hear.

This year Spark Inside celebrated turning 10. It’s a new decade, with the same spark. We are incredibly grateful to all our donors and supporters. The grant funders, corporates and individuals who have helped us are part of an exciting mission. I hope this report encourages you too.

Vicki Cardwell Chief Executive Officer

Page 3

Spark Inside (A company limited by guarantee)

Trustees' report (continued) for the year ended 31 March 2023

Objectives and activities

Spark Inside runs coaching programmes in prisons and the community primarily across London and the South East. Our programmes unlock the potential of those living and working in prison, encourage rehabilitation, change prison culture, and contribute towards a reduction in reoffending. We are one of the first organisations to offer young people in prison the support of highly qualified, expert coaches and give them access to the same calibre of coaching made available in the corporate world. In addition to the one to one coaching support we offer, every Hero’s Journey™ Programme starts with group work that encourages young people to open up and be vulnerable in front of one another in a way that would be extremely difficult outside of the Hero’s Journey setting and allows young people to consider the positives qualities they have to draw on and enhances their belief in their ability to make change. This year we completed a pilot of Hero’s Journey in HMP Lincoln, our first ever outside of London and the South East.

Black Hero’s Journey is our tailored coaching programme, co-designed with young Black men with lived experience, that addresses the specific experiences of young Black men in the prison system, who are overrepresented.

Our prison staff coaching was developed during the initial Covid-19 lockdowns to support frontline staff and ultimately the people in their care. Given its impact, we have extended the programme to work with all prison staff grades and will ensure prison staff coaching remains a core delivery, alongside our direct work with young people.

In addition to our coaching programmes, a key part of our work is ensuring that the voices of young people who have come into contact with the criminal justice system are listened to, and that they help to shape our strategy, coaching programmes and campaigns.

We also remain committed to working with parliamentarians and government officials to influence criminal justice policy and shift the perception of people in prison, platforming their voices and highlighting their unlocked potential.

Our main activities and who we provide support to are described in detail below. All our charitable activities focus on encouraging rehabilitation and contributing to a reduction in reoffending through the running of coaching programmes in prisons, and now also in the community, for young people, based mainly in London and the South East.

The Trustees confirm that they have had due regard to Charity Commission guidance on public benefit in setting the Charity’s objectives and activities.

Page 4

Spark Inside (A company limited by guarantee)

Trustees' report (continued) for the year ended 31 March 2023

Achievements and performance

This was the second year of delivering our three-year Strategic Plan. While we faced challenges due to the ongoing impact of the pandemic, we are proud of our achievements. We have structured our report under our three pillars of impact: individual, institutional and systemic.

Individual change

Using coaching to unlock the potential of individuals

Hero’s Journey

Hero’s Journey™ is our award-winning life coaching programme for young people in contact with the criminal justice system.

The programme consists of group workshops in prison, where our life coaches support young people to identify what they want in life and how they can achieve their goals. In 2022/23 we delivered over 60 workshops across 5 prisons, supporting 117 young people to embark on their Hero’s Journey.

After the workshops, young people can choose to receive one-to-one life coaching sessions that can start in prison, and continue on release if they are near the end of their sentences. This year we were able to offer oneto-one coaching to 143 young people, through a total of 416 sessions.

We measure the impact of our coaching with young people using the Youth Outcome Star, a recognised industry tool, where young people assess their progress against a number of metrics including interests and activities, hopes and dreams, health and wellbeing, education and work, communicating, choices and behaviour.

We were delighted that this year, 96% of young people who we have coached reported making progress in at least one area, 88% reported making progress in at least two areas, and 82% made progress in three areas.

“ Now, looking back, I see the difference doing the Hero's Journey made for me. I'm now more open to talking about things - even my mum has noticed the change in me. The one-to-one coaching and Hero's Journey workshops gave me a new perspective. If people who don't know me well can see my potential it gives me hope for the future ". Hero’s Journey participant.

Mia Motter, Governing Governor at HMP Brixton said this about Hero’s Journey: " I was honoured to be invited to share in the celebrations of men who bravely shared their commitments for a more positive future, reflecting and exposing some of their most personal mistakes and aspirations before graduating from the Hero's Journey Programme with Spark Inside. Their vulnerability and strength was humbling, inspiring and harder than I think anyone really appreciates. Finding how to articulate their hopes for a future they were always capable of creating was raw and deep.

Spark Inside genuinely makes a difference to their perspective and future decisions. I am so passionate about the astounding change and impact that can be achieved in some of the most challenging environments in our society. "

Page 5

Spark Inside (A company limited by guarantee)

Trustees' report (continued) for the year ended 31 March 2023

Achievements and performance (continued)

Black Hero’s Journey

In 2022/23 we ran the first two pilots of our Black Hero’s Journey programme in HMP YOI Isis. Originally developed in 2019, the decision to create this programme came following feedback from young people in prison, who told us that it would be beneficial for our coaching workshops to acknowledge the specific challenges young Black men face. Our initial pilot of the programme had to pause due to Covid, so we were delighted to get it up and running this year, and have been heartened to hear the positive responses so far.

Our 2022/23 pilots, involving 15 participants, have gone brilliantly well and have been enormously valued by the participants. We even saw young men giving up their social time, including choosing to leave an England World Cup match, to attend the workshops – something virtually unheard of in our experience of prisons.

Participants have shared their thoughts on the experience: “It's like a sense of self-worth…before I'd only see myself in the light of, ‘I'm just gonna sell drugs for the rest of my life’, in and out of jail. I've been in jail like four or five times…and I never saw a point where I thought ‘I need to stop’, I just come out, do the same thing. But this made me see that there's other options in life. I’m not just worth selling drugs. I can do other things, put my mind to other things. ”

Prison staff also rate the programme: “ We are delighted to be piloting the Black Hero’s Journey here in HMPYOI Isis. We have seen brilliant engagement from young people for the programme, as there is really nothing else like it in the prison system. We have also seen - and been impressed by - the positive changes in the attitudes and behaviours of young people after their participation. I would like to see this programme rolled out to many more young Black men in prisons and YOIs ". Emily Thomas, Governor of HMPYOI Isis.

If you would like to know more about the impact Black Hero’s Journey has on young people, you can watch a video interview with Jeffrey, one of our longest-serving coaches and Tyrone, a young man who was in the very first pilot group, here: sparkinside.org/our-impact/participants-stories/tyrone-26

Institutional change

Prison Staff Coaching

In 2022/23 we reached an exciting milestone, having coached more than 80 prison staff, including 9 prison Governors, through a total of 367 sessions. We also began a new project, offering coaching to every member of prison staff in London who went through the most recent Custodial Manager assessment – Custodial Managers being the highest grade of uniformed staff. We are so pleased that 26 staff members chose to take up the offer and are still being coached today, building their skills and confidence as they settle into these new positions.

Ian Bickers, London Prisons Group Director, had this to say about the project: “ Such important work and talking to this group of staff they have been hugely grateful for a brilliant intervention at the start of their next career step - thank you Spark Inside and good to see how we are impacting this vital group! I am proud of this association with such a brilliant organisation. ”

Page 6

(A company limited by guarantee)

Spark Inside

Trustees' report (continued) for the year ended 31 March 2023

Achievements and performance (continued)

Alex, Prison Governor and Spark Inside coaching recipient

“ I think it was that opportunity to step away from day-to-day work and talk with someone independent. It was solely about my development. I liked the fact that I was able to be really honest about my current experience and what I wanted to achieve.

I really liked the fact that it was external to prison. Talking about leadership and managing people and career goals almost outside the lens of prison, that was really refreshing. It was the bigger picture issues of ‘what kind of a leader do I want to be’? ‘What leadership skills do I need to develop’?

I recognised that it was a real investment in me as well. And I think that gives people a boost. I feel like people want me to develop and be a great leader and they’ve put this on for me.

If I think about myself, I manage maybe six or seven people who would in turn manage six or seven people, and it kind of spreads. I think that it has value for more than just me. There is a value to the organisation in that if the seven people I manage are developed in terms of their skills, their ability to manage their workloads, their ability to do the jobs that they’re employed to do, that can only be a positive thing to the wider organisation .”

We are pleased that next year, we will be working with a team of researchers and academics from the University of Lincoln to evaluate the impact of our prison staff coaching. We will be interviewing a broad sample of our prison staff coaching clients to understand how they benefited from the experience, how our service could be improved and what worked best for them. We look forward to publishing the report in November 2023!

Systemic change

Driving culture change in the criminal justice system so that rehabilitation is possible

As well as using coaching to unlock the potential of people who live and work in prison, a key part of our mission is to drive culture change in the criminal justice system, so that rehabilitation is possible. We have ambitions to change entire systems, championing equity and opportunity, and we do this through our advocacy, policy and campaigning work.

In 2022/23 we have made some exciting strides towards this mission.

Being Well Being Equal

This year we published our Being Well Being Equal Report. Our campaign, calling for the prioritisation of the wellbeing needs of young men, particularly Black men in prison, initially launched in 2020 when young people in prison were telling us about the terrible impacts that Covid restrictions, and the prison environment, was having on their wellbeing. And with 75% of the young people we work with coming from Black and Minority Ethnic backgrounds, a clear theme that emerged through our conversations was that many felt that their identity and heritage played a significant role in how they were being treated.

“ Black people are getting treated unfairly – everyone needs to be thinking about equal rights. On the surface it seems okay, but behind the scenes there is a real problem… are Black young men getting equal access to jobs in prison? Do they have roles like Wing Reps? There is a lot that prisons need to be held to account for ”. Young man in custody

It was clear to us that if we want to truly support young people to build a brighter future, that we also have to fight to create a better system and ensure young people’s voices are really heard.

In February 2023 we published our report which included the expertise and insights of our Being Well Being Equal Alliance, made up of Wipers CIC, Zahid Mubarek Trust, Race Equality Foundation, Centre for Mental Health and Clinks.

The report presents a consolidation of the research, policy and practice concerned with the wellbeing of young

Page 7

Spark Inside (A company limited by guarantee)

Trustees' report (continued) for the year ended 31 March 2023

Achievements and performance (continued)

men in custody, as well as insight from expert organisations and, most importantly, young men themselves.

“I think it would be better if they looked at people to see what their strengths are, see what their talents are, see where they shine! ” Young man in custody

We were encouraged to see the report met with great enthusiasm and support from policymakers, senior HMPPS leaders and the wider sector.

“ I think it’s brilliant! Particularly in thinking about how to promote this work and ensure that prisons understand how to practically implement the learning from the Report to produce better outcomes for young adults from black and minority ethnic backgrounds ”. Lisa Short, HMPPS Young Adults Team Lead

“There is lots within this report for us to consider in terms of our future activities across HMPPS”. Alana Ajani, HMPPS Race Action Programme Director

We were delighted that Leroy Logan, MBE - Chair of Transition to Adulthood, former Chair and founder of the Black Police Association and subject of the Steve McQueen film series Small Axe, published a blog in support of our Report.

He wrote: “Spark Inside’s recommendations could not be more timely when we consider the scale of the challenges young adults face…Right now, with organisations like Spark Inside working directly with young adults, we have a chance to create a criminal justice system that focuses on rehabilitation rather than punishment. A system where young adults can gain the skills and confidence they need to thrive. A system where every young adult can unlock their full potential. But we need to grab this chance with both hands if we are to ever make it a reality”.

We hosted a Roundtable event, to discuss the findings of the Report and ensure our calls to action are implemented. The event was chaired by Leroy Logan MBE, and guest speakers included Alana Ajani Director of HMPPS Race Action Programme, Lisa Short HMPPS Young Adults Team Lead, alongside our CEO. We were pleased to welcome some fantastic guests from the London Probation Service, MOPAC, HMPPS, NHS England as well as representatives from the Alliance. We saw such interest in the event that we are now hosting a followup online event, in collaboration with the HMPPS Race Action Programme, which will be open to all prison staff.

Empowering young people to have their voices heard

This year we focused our efforts on developing our Champions Group and In-Prison Advisory Boards – two initiatives that empower young people with lived experience of imprisonment to have their voices heard, to shape and influence our work and to speak truth to power.

Our Champions Group consists of 5 young people, who have spent time in prison and who have been coached by Spark Inside, either through our Hero’s Journey Programme or one-to-one coaching. The Champions meet online every 6-8 weeks, and have group discussions facilitated by our Participation and Engagement Manager, on a range of topics which have included informing our policy strategy, feeding back on our business plan, our 10 year vision and more. We also offer the Champions opportunities to develop professionally and personally, and have been pleased to team up with our corporate sponsors, PwC, whose staff have hosted tailored workshops for the group on admin, business, as well as a session on Neurodiversity.

In 2022/23 we held our first In-Prison Advisory Board in HMP Isis. Our model involves recruiting a small group (typically 2-4) of young people in prison as Spark Inside Ambassadors. We equip them with the skills, tools and confidence to survey and interview their peers on the wings, on a topic that relates to Spark Inside’s work, in this case, ‘What would enable you to participate in a programme that brings together prison staff and young people in prison, with the aim of building trust, empathy and respect?’ The Ambassadors gather the insights and present their findings back to a member of our Senior Management Team and two members of our Board, who come into the prison to meet the group. The Ambassador role is a paid role, and young people are given the chance to build skills in communication, interviewing and research that they can draw on in the future.

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Spark Inside (A company limited by guarantee)

Trustees' report (continued) for the year ended 31 March 2023

Achievements and performance (continued)

Our first In-Prison Advisory Board was a great success, and Ambassadors gathered the opinions of 35 other young people on the wings. The Ambassadors thoroughly valued the experience – they told us that it had encouraged them to push their own boundaries and to try new things. One person spoke of never having given a presentation before but now felt that they had a better sense of what is needed to deliver a good presentation, including planning and preparation.

Cecilia Cappel, Spark Inside Participation and Engagement Manager said: “They spoke of being heard and feeling listened to. They said it was one of the few times they felt equal to those they were sharing the space with. They also felt comfortable and human. They said that they felt Spark Inside would create change and follow through on things”.

A visit from the Prisons Minister

In February 2023 we were delighted to meet Prisons Minister Damian Hinds who came to visit our programme at HMP Wormwood Scrubs. The Minister met with members of our team working in the prison, as well as a group of young people who have embarked on their Hero's Journey, who shared with him the impact that coaching has had on their lives. The Minister also learned more about our work coaching staff in the prison. He heard from the Governor about how valuable it is to have an organisation in the prison that works with both staff and prisoners, and one that doesn’t shy away from working with remand prisoners who make up a large proportion of the population at Scrubs, but who are often overlooked.

The young people were our greatest ambassadors, with one person saying: " The one-to-one coaching gives you the space to be emotionally vulnerable. I can't tell you what a relief that is".

Our fantastic coach Michael Roper took the Minister and three young people through a bitesize session of our Hero's Journey life coaching programme, and we were pleased to hear that the experience made an impact.

The Minister said: "I was delighted to meet with young people who had completed the Hero's Journey, and to have the opportunity to talk with them at length about how it helped and encouraged them; it was really uplifting".

Financial review

a. Financial review

The statement of financial activities is shown on page 19. The surplus for the year was £39,804 (2022: £95,934) and net assets amounted to £855,356 (2022: £815,552) at the year end.

This year we delivered coaching across five prisons, with face-to-face coaching work taking place in all of them. As expected, with Covid restrictions lifting, our delivery within prisons significantly increased this year. We also maintained some community coaching, both online and face-to-face. We began a new programme of prison staff coaching, encouraging institutional change and we continued to advocate for coaching and culture change within the criminal justice sector. To meet the increased demand for our services, we expanded our staff team, spent more on our coaches and direct programmes but, with careful management, kept other overhead costs broadly unchanged. The growth in activity this year was primarily funded from grants and donations. With such committed support from our funders and staff, together with sound financial management, the charity generated a positive financial outcome with a modest surplus for the year.

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Spark Inside

(A company limited by guarantee)

Trustees' report (continued) for the year ended 31 March 2023

b. Principal funding sources

Spark Inside is primarily grant-funded and this income stream has remained largely stable. We have attracted several new funders this year and continue to receive grants from from previous or existing funders, many of whom support us with multi-year grants, providing stability and enabling us to plan ahead for the future. Details of funders providing restricted grants can be found in note 18 to the financial statements, they fund some wonderful projects and we are very grateful. We are also very grateful to those funders who give unrestricted grants and donations, supporting our whole organisation, allowing us flexibility, security and enabling us to deliver on our mission.

Our commissioned income has grown again this year as planned. We continue our contract with the Forward Trust to deliver Hero’s Journey in the community. We are delighted to have completed a contract and then been recommissioned by Practice Plus Group to coach in HMP Wormwood Scrubs. We have also won a significant new contract with CNWL Healthcare to coach young men in HMP High Down and HMP Coldingley (starts 1 April 2023).

c. Reserves

It is now the aim of the Trustees to hold reserves on the unrestricted general fund equivalent to between four to eight months of operating expenditure (based on budgeted expenditure for the following year). Our previous policy was to hold unrestricted reserves of between three to six months but, as we grow, the financial risks increase, and so we implemented a more prudent policy, building our reserves to ensure future financial stability.

Any reserves on restricted funds are set aside to fund the specific project or programmes for which the funds were granted. It is common for income to be received in one year, yet for programme expenditure to straddle several years. Reserves for restricted funds therefore represent monies for programmes that are currently ongoing or due to start. In the unlikely event that at the end of the programme a surplus exists we will contact the donor to confirm whether funds should be returned or whether they can be re-designated.

Unrestricted funds amounted to £523,158 at the year end (2022: £474,867) including unrestricted designated funds of £nil (2022: £17,413). The free reserves of Spark Inside consist of those reserves which are not already allocated to other costs and are freely available for the general purposes of the charity. The free reserves at 31 March 2023 amounted to £523,158 (2022: £474,867). The free reserves at the year end represented 5 months' reserves based on budgeted expenditure for the following year. Restricted funds amounted to £332,198 at the year end (2022: £340,685).

d. Going concern

The Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies..

Structure, governance and management

a. Constitution

Spark Inside is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 24/02/2012.

The company is constituted under a Memorandum of Association dated 24/02/2012 and is a registered charity number 1148420.

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Spark Inside (A company limited by guarantee)

Trustees' report (continued) for the year ended 31 March 2023

Structure, governance and management (continued)

b. Methods of appointment or election of Trustees

Board members are appointed by majority vote for three-year terms. Trustees may serve on the Board for two consecutive terms or following discussion and approval by the Board for an additional term of up to 3 years. In exceptional circumstances, following discussion and approval by the Board and subject to disclosure of the rationale for the extension of term in the charity’s Annual report, such additional terms as the Board determines are appropriate.

c. Organisational structure and decision-making policies

In March 2023 Spark Inside had nine Trustees. There are three Board Committees currently operating: the Finance and Risk Committee, the Philanthropy Board and the newly created Coaching Committee. We established the Coaching Committee to support Spark Inside with recommendations and advice on coaching quality.

Spark Inside has a Delegation of Authority Policy in place which outlines how the charity makes decisions. The Policy covers decision making in all areas of the charity, clarifying which decisions are reserved to the Board or the Chief Executive, and which decisions, if any, are delegated further through the organisation. In addition, the charity has a Finance Policy which sets out limits and conditions to the Chief Executive and senior staff being authorised to commit the charity to incur expenditure within the approved annual budget plan.

Spark Inside’s Trustees have a fiduciary responsibility for Spark Inside and provide strategic oversight and direction. Trustees are volunteers and receive no remuneration or financial benefits. They convene every three months for Board meetings and annually for a strategy away day. Trustees are recruited through a range of methods including online advertising on Trustee recruitment websites. All Trustee roles are advertised, and subject to a competitive process.

The Chair receives an annual appraisal, conducted by the Vice-Chair with the opportunity for all Trustees and the CEO to input. The Board reflects regularly on its performance and specifically at the annual away day.

d. Policies adopted for the induction and training of Trustees

Trustees are introduced to the work of the charity through meetings with the Chair, the CEO and staff and by taking part in a taster session of the Hero’s Journey™. New Trustees have an induction day run by the Senior Leadership Team. New Trustees are also offered governance training. An induction pack containing the Memorandum and Articles of Association, strategy, vision, mission, budgets, key policies and other relevant information, including minutes of recent Trustees’ meetings is provided. These documents, along with the papers and minutes of all Board and Committee meetings are made available to the Trustees through a shared secure internet site.

To maintain a broad and appropriate skills mix, a review is regularly undertaken to ensure that should a member resign, an appropriate replacement is found. The Board also review its diversity with particular regard to lived experience similar to that of our participants. We encourage Trustee applicants with lived experience of prison or the criminal justice system. We also actively encourage applications from people from Black or racially minoritized backgrounds and groups who are under-represented on Boards.

This year we welcomed two new Board Fellows (open to people under the age of 30) to ensure greater age diversity of our Board and to provide meaningful development opportunities for first time Board members. We have been running this programme since 2014 with several Fellows going on to become Trustees with Spark Inside or elsewhere.

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Spark Inside (A company limited by guarantee)

Trustees' report (continued) for the year ended 31 March 2023

Structure, governance and management (continued)

e. Pay policy for key management personnel

An annual Remuneration Committee is held to review staff pay and proposed increases. The Remuneration Committee is made up of the Trustees who sit on the Finance and Risk Committee, plus the Chair and the lead Trustee for Equality, Diversity and Inclusion. The CEO submits a proposal to the Remuneration Committee with recommendations for salary increases in line with salary bandings.

f. Risk management

Trustees have implemented a risk management strategy that comprises:

Plans for future periods

Our Strategic Plan 2021-2024 provides our solid direction of travel, and we have a skilled and passionate team to deliver our crucial coaching and advocacy work. Our ambition for Spark Inside over the next three years is to grow both the reach of our work, and the impact we have on individuals, institutions and the justice system.

Vision

The futures of people affected by the criminal justice system are determined by their potential, not their past.

Mission

We use coaching to unlock the potential of individuals and drive culture change in the criminal justice system so that rehabilitation is possible.

Strategic Aims

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Spark Inside (A company limited by guarantee)

Trustees' report (continued) for the year ended 31 March 2023

Plans for future periods (continued)

Priorities for 2023-24

Engage new donors, supporters and influencers with a focus on corporates.

Our supporters & funders

We are hugely grateful for the support of our funders and supporters. The vital backing and care from our grant funders, who were proactively flexible and understanding during the pandemic, have enabled us to get back into prison quickly this year and to rapidly increase our coaching of young people, as evidenced in this Report. Thank you to all of the grant-giving Trusts and Foundations – you can see a list in the financial section.

We are equally thankful to our other supporters, friends and philanthropists, including the individuals who donated through our Big Give match-funding campaign at Christmas, which raised £73,930 to empower young people to thrive after prison. We were also delighted to receive a further donation from PwC for our work and first ever donations from Artemis Charitable Trust amongst others.

Other ways you can support our work

In addition to making a financial donation, there are many ways you can support Spark Inside to coach young people in prison, such as:

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Spark Inside

(A company limited by guarantee)

Trustees' report (continued) for the year ended 31 March 2023

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the Charity 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. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity 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 Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Auditors

Kreston Reeves LLP was re-appointed as the charitable company's auditors during the year and has expressed its willingness to continue in that capacity.

Approved by order of the members of the board of Trustees and signed on their behalf by:

................................................ E Handling Chair of Trustees Date: 26 October 2023

Page 14

Spark Inside (A company limited by guarantee)

Independent auditors' report to the Members of Spark Inside

Opinion

We have audited the financial statements of Spark Inside (the 'charitable company') for the year ended 31 March 2023 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 Auditors' 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 United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Page 15

Spark Inside (A company limited by guarantee)

Independent auditors' report to the Members of Spark Inside (continued)

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

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

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

Page 16

Spark Inside (A company limited by guarantee)

Independent auditors' report to the Members of Spark Inside (continued)

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 Auditors' 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:

Capability of the audit in detecting irregularities, including fraud

Based on our understanding of the charity and sector, and through discussion with the trustees and other management (as required by auditing standards), we identified that the principal risks of non compliance with laws and regulations. We considered the extent to which non compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, Statement of Recommended Practice, taxation and pension legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risk was related to posting inappropriate journal entries. Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non compliance.

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

Page 17

Spark Inside (A company limited by guarantee)

Independent auditors' report to the Members of Spark Inside (continued)

of the charitable company's internal control.

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

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 Auditors' 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Kreston Reeves LLP

Chartered Accountants Statutory Auditor Brighton

Date: 9 November 2023

Kreston Reeves LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 18

Spark Inside

(A company limited by guarantee)

Statement of financial activities (incorporating income and expenditure account) for the year ended 31 March 2023

Note
Income from:
Donations and legacies
4
Charitable activities
6
Investments
7
Other income
8
Total income
Expenditure on:
Raising funds
9
Charitable activities
10
Total expenditure
Net income/(expenditure)
Transfers between funds
19
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2023
£
320,073
109,745
7,394
4,541
441,753
31,985
345,502
377,487
64,266
(12,975)
51,291
474,867
51,291
526,158		 Restricted
funds
2023
£
486,035
-
-
-
486,035
1,269
509,228
510,497
(24,462)
12,975
(11,487)
340,685
(11,487)
329,198		 Total
funds
2023
£
806,108
109,745
7,394
4,541
927,788
33,254
854,730
887,984
39,804
-
39,804
815,552
39,804
855,356		 Total
funds
2022
£
786,407
46,420
1,697
-
834,524
30,084
708,506
738,590
95,934
-
95,934
719,618
95,934
815,552

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 22 to 41 form part of these financial statements.

Page 19

Spark Inside

(A company limited by guarantee) Registered number: 07984016

Balance sheet as at 31 March 2023

Note
Fixed assets
Tangible assets
16
Current assets
Debtors
17
Cash at bank
Creditors: amounts falling due within one
year
18
Net current assets
Total net assets
Charity funds
Restricted funds
19
Unrestricted funds
19
Total funds		 21,896
907,380
929,276
(75,116)		 2023
£
1,196
854,160
855,356
332,198
523,158
855,356		 53,799
803,071
856,870
(43,233)		 2022
£
1,915
813,637
815,552
340,685
474,867
815,552

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

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

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

................................................

E Handling Chair of Trustees Date: 26 October 2023

The notes on pages 22 to 41 form part of these financial statements.

Page 20

Spark Inside (A company limited by guarantee)

Statement of cash flows for the year ended 31 March 2023

Cash flows from operating activities
Net cash used in operating activities (note 22)
Cash flows from investing activities
Dividends, interests and rents from investments
Purchase of tangible fixed assets
Net cash provided by/(used in) investing activities
Cash flows from financing activities
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year (note 23)
The notes on pages 22 to 41 form part of these financial statements		 2023
£
96,914
7,395
-
7,395
-
104,309
803,071
907,380		 2022
£
69,251
1,697
(2,155)
(458)
-
68,793
734,278
803,071

Page 21

Spark Inside (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2023

1. General information

The charity is a private company limited by guarantee incorporated in England and Wales. The members of the company are the Trustees named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity.

The registered office and principal place of business of the charity is:

Unit 386 Salisbury House London Wall London EC2M 5SQ

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Spark Inside meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The financial statements are presented in UK sterling, the charity's functional currency, and rounded to the nearest pound.

2.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

2.3 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit 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.

Support costs are those costs incurred directly in support of expenditure on the objects of the company and include project management carried out at Headquarters. Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements.

Page 22

Spark Inside (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2023

2. Accounting policies (continued)

2.4 Expenditure (continued)

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities and Governance costs are costs incurred on the charity's operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities.

All expenditure is inclusive of irrecoverable VAT.

2.5 Government grants

Grants of a revenue nature are recognised in the statement of comprehensive income in the same period as the related expenditure.

2.6 Interest receivable

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

2.7 Tangible fixed assets and depreciation

Tangible fixed assets costing £2,000 or more are capitalised.

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives.

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of financial activities incorporating income and expenditure account.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives. .

Depreciation is provided on the following bases:

Computer equipment - 3 years straight line
CRM Software - 3 years straight line

2.8 Debtors

Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid.

Page 23

Spark Inside (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2023

2. Accounting policies (continued)

2.9 Cash at bank

Cash at bank 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.

2.10 Liabilities and provisions

Liabilities 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.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. 2.11 Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.12 Operating leases

Rentals paid under operating leases are charged to the Statement of financial activities incorporating income and expenditure account on a straight line basis over the lease term.

2.13 Pensions

The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.

2.14 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Page 24

Spark Inside (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2023

3. Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. There are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

4. Income from donations and legacies

Unrestricted
funds
2023
£
Donations
65,073
Grants
255,000
Government grants
-
Total 2023
320,073
Total 2022
301,374		 Restricted
funds
2023
£
55,000
431,035
-
486,035
485,033		 Total
funds
2023
£
120,073
686,035
-
806,108
786,407		 Total
funds
2022
£
117,140
666,033
3,234
786,407

Page 25

Spark Inside (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2023

5. List of grants (listed in order of donation date)

Unrestricted
funds
2023
£
Garfield Weston Foundation
30,000
The Goldsmiths Company Charity
22,000
Confidential Donor
1,000
29th May 1961 Charitable Trust
5,000
Highway One Trust
10,000
Colyer Fergusson Charitable Trust
-
Paul Hamlyn Foundation
-
1772 The Debtors Relief Funds Charity
2,000
Prundential PLC
-
The Portal Trust
-
The Stephen Clark Charitable Settlement
1965
1,000
AB Charitable Trust
20,000
The Tokien Trust
-
DCR Allen Charitable Trust
5,000
Barrow Cadbury Trust
-
Bernard Lewis Family Charitable Trust
30,000
Drapers Charitable Fund
-
Esmée Fairbairn
84,000
The Field Family Charitable Trust
-
Fidelity UK
-
St James' Place Charitable Foundation
-
Charles Hayward Foundation
-
The Henry Smith Charity
-
Groundworks
-
Porticus UK
-
Swire Charitable Trust
15,000
PHF Expert Support
-
Leathersellers
-
Dawes Trust
-
Treebeard Trust
-
Aurum Charitable Trust
30,000
The Listening Fund
-
City Bridge Trust
-
Total 2023
255,000
Total 2022
256,500		 Restricted
funds
2023
£
-
-
-
-
-
36,000
100,000
-
1,500
25,000
-
-
25,000
-
27,000
-
15,000
5,000
3,000
41,828
30,000
25,000
25,000
(3,293)
45,000
-
30,000
-
-
-
-
-
-
431,035
409,533		 Total
funds
2023
£
30,000
22,000
1,000
5,000
10,000
36,000
100,000
2,000
1,500
25,000
1,000
20,000
25,000
5,000
27,000
30,000
15,000
89,000
3,000
41,828
30,000
25,000
25,000
(3,293)
45,000
15,000
30,000
-
-
-
30,000
-
-
686,035
666,033		 Total
funds
2022
£
-
35,000
500
-
10,000
-
140,000
-
3,000
-
-
-
25,000
-
28,000
30,000
-
60,000
-
67,622
-
20,000
-
47,000
45,000
-
4,636
10,000
60,000
20,000
30,000
23,400
6,875
666,033

Page 26

Spark Inside

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2023

6. Income from charitable activities

Charitable activities
Total 2022
7.
Investment income

Interest received
Total 2022
8.
Other income

Other income		 Unrestricted
funds
2023
£
109,745
46,420
Unrestricted
funds
2023
£
7,394
1,697
Unrestricted
funds
2022
£
4,541
4,541		 Total
funds
2023
£
109,745
46,420
Total
funds
2023
£
7,394
1,697
Total
funds
2022
£
4,541
4,541		 Total
funds
2022
£
46,420
Total
funds
2022
£
1,697
Total
funds
2022
£
-
-

Page 27

Spark Inside (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2023

9. Expenditure on raising funds

Costs of raising voluntary income

Unrestricted
funds
2023
£
Costs of raising voluntary income
31,985
Total 2022
27,084		 Restricted
funds
2023
£
1,269
3,000		 Total
funds
2023
£
33,254
30,084		 Total
funds
2022
£
30,084

10. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2023
£
Charitable activities
345,502
Total 2022
248,346		 Restricted
funds
2023
£
509,228
460,160		 Total
2023
£
854,730
708,506		 Total
2022
£
708,506

Page 28

Spark Inside

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2023

11. Analysis of expenditure by activities

Charitable activities
Total 2022
Analysis of direct costs
Staff costs
Training and events
Coaching and programme
Evaluation
Marketing
Travel expenses
Rent and office costs
Sundry and subscriptions
User involvement costs
Subcontractor costs
Charitable and political donations
Redundancy costs
Total 2022		 Direct
costs
2023
£
791,582
618,283		 Support
costs
2023
£
63,148
90,223
Charitable
activities
2023
£
520,034
9,306
164,911
20,216
7,241
535
33,960
8,745
1,584
24,800
250
-
791,582
618,283		 Total
funds
2023
£
854,730
708,506
Total
funds
2023
£
520,034
9,306
164,911
20,216
7,241
535
33,960
8,745
1,584
24,800
250
-
791,582
618,283		 Total
funds
2022
£
708,506
Total
funds
2022
£
449,993
5,173
66,467
10,816
15,736
108
23,481
10,995
1,419
23,490
-
10,605
618,283

Page 29

Spark Inside (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2023

11. Analysis of expenditure by activities (continued)

Analysis of support costs

Depreciation
Legal and professional
Recruitment
Computer costs
Insurance
Bank fees
Other staff costs
Licencing
Entertaining
Governance costs
Total 2022		 Charitable
activities
2023
£
718
21,071
1,460
15,208
3,215
78
8,028
-
20
13,350
63,148
90,223		 Total
funds
2023
£
718
21,071
1,460
15,208
3,215
78
8,028
-
20
13,350
63,148
90,223		 Total
funds
2022
£
240
34,664
24,676
19,882
3,055
102
(39)
73
-
7,570
90,223

12. Auditors' remuneration

2023 2022
£ £
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts (inclusive of irrecoverable VAT) 10,200 6,480
Fees payable to the Charity's auditor in respect of:
All non-audit services not included above 3,150 1,920

Page 30

Spark Inside (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2023

13. Staff costs

Wages and salaries
Social security costs
Pension costs		 2023
£
451,413
46,091
22,530
520,034		 2022
£
392,090
38,652
19,251
449,993

The average number of persons employed by the Charity during the year was as follows:

Staff
Directors		 2023
No.
11
9
20		 2022
No.
8
10
18

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2023 2022
No. No.
In the band £70,001 - £80,000 - 1
In the band £80,001 - £90,000 1 -

The one employee disclosed above was a Director of the Company until August 2022.

Employer pension contributions of £4,008 (2022: £3,919) were paid on behalf of the above staff.

In 2023 Spark Inside consider their key management personnel to consist of:

Vicki Cardwell Chief Executive, Luke Carey, Head of Service Delivery, Tom Currie, Head of Impact and Innovation, Louise Potter, Head of Communications and Advocacy, Julia Ross, Head of Finance and Operations.

In 2022 Spark Inside consider their key management personnel to consist of:

Vicki Cardwell Chief Executive, Luke Carey, Head of Service Delivery, appointed 1 February 2022, Tom Currie, Head of Impact and Innovation, appointed 1 December 2021, Louise Potter, Head of Communications and Advocacy, appointed 7 March 2022, Julia Ross, Head of Finance and Operations appointed 1 Jan 2022, Nic Shoults, Head of Finance and Resources, resigned 1 September 2021, Karen Graham, Head of Programmes, resigned 31 December 2021, Indy Cross, Head of Communications, resigned 20 January 2022.

These 5 (2022: 8) key management personnel received total aggregate remuneration of £304,001 (2022: £246,935) made up of salaries of £259,894 (2022: £212,022), employers national insurance £31,112 (2022: £24,312) and employers pension contributions of £12,995 (2022: £10,601).

Page 31

Spark Inside (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2023

14. Directors' remuneration

Directors' emoluments
Company contributions to defined contribution pension schemes		 2023
£
26,520
1,326
27,846		 2022
£
78,390
3,920
82,310

During the year retirement benefits were accruing to 1 director (2022: 1) in respect of defined contribution pension schemes.

15. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2022 - £NIL).

During the year ended 31 March 2023, no Trustee expenses have been incurred (2022 - £NIL).

16. Tangible fixed assets

Cost or valuation
At 1 April 2022
Disposals
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
On disposals
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Computer
equipment
£
11,837
-
11,837
9,922
719
-
10,641
1,196
1,915		 CRM
software
£
11,800
(11,800)
-
11,800
-
(11,800)
-
-
-		 Total
£
23,637
(11,800)
11,837
21,722
719
(11,800)
10,641
1,196
1,915

Page 32

Spark Inside

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2023

17. Debtors

Trade debtors
Prepayments and accrued income		 2023
£
11,754
10,142
21,896		 2022
£
2,936
50,863
53,799

18. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred income at 1 April 2022
Resources deferred during the year
Amounts released from previous periods		 2023
£
31,392
14,593
3,039
26,092
75,116
2023
£
-
9,200
-
9,200		 2022
£
8,188
12,662
2,519
19,864
43,233
2022
£
4,636
-
(4,636)
-

Deferred income arises from grants received in the financial year that also relate to subsequent financial years.

Page 33

Spark Inside (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2023

19. Statement of funds

Statement of funds - current year

Unrestricted funds
Designated funds
Project specific designated
funds
Office move
IT upgrade
General funds
General funds
Total Unrestricted funds		 Balance at 1
April 2022
£
4,889
7,639
4,885
17,413
457,454
474,867		 Income
£
-
-
-
-
438,753
438,753		 Expenditure
£
-
(3,236)
(210)
(3,446)
(374,041)
(377,487)		 Transfers
in/out
£
(4,889)
(4,403)
(4,675)
(13,967)
992
(12,975)		 Balance at
31 March
2023
£
-
-
-
-
523,158
523,158

Page 34

Spark Inside (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2023

19. Statement of funds (continued)

Restricted funds
Charles Hayward Foundation
Black Perspective
St James's Place Charitable
Foundation
Big Give The Conversation
Colyer Fergusson Charitable
Trust
Esmée Fairbairn Foundation
Fund
The Field Family Trust
Listening Fund
Paul Hamlyn Foundation
The Henry Smith Charity
Prudential PLC
Porticus UK
The Tolkien Trust
Barrow Cadbury Trust
Portal Trust
Champions for Children
Groundworks
PWC
PHF Expert Support
Fidelity UK Foundation
Total of funds		 Balance at 1
April 2022
£
-
25,049
-
52,808
36,000
-
-
25,223
47,422
-
-
30,361
12,712
14,315
-
15,500
19,523
9,900
-
51,872
340,685
815,552		 Income
£
25,000
-
30,000
-
36,000
5,000
3,000
-
100,000
25,000
16,500
45,000
25,000
27,000
25,000
58,000
(3,293)
-
30,000
41,828
489,035
927,788		 Expenditure
£
(8,333)
(7,187)
(12,541)
-
(27,092)
(5,000)
(1,250)
(25,223)
(104,908)
(10,370)
(7,750)
(54,497)
(30,947)
(29,823)
(19,919)
(29,959)
(18,856)
(9,900)
(40,328)
(66,614)
(510,497)
(887,984)		 Transfers
in/out
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
21
2,626
-
10,328
-
12,975
-		 Balance at
31 March
2023
£
16,667
17,862
17,459
52,808
44,908
-
1,750
-
42,514
14,630
8,750
20,864
6,765
11,492
5,081
43,562
-
-
-
27,086
332,198
855,356

Page 35

Spark Inside (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2023

19. Statement of funds (continued)

Designated funds

Project specific designated funds - fund to ensure coaching in prisons was maintained for the financial year.

Office move - fund for office move.

IT upgrade - fund for IT upgrade.

At the end of the financial year, the Trustees made the decision to undesignate all three of the charity's designated funds, and therefore they have each been transferred back in to general unrestricted funds at the Balance sheet date.

Restricted funds

Bernard Lewis Family Charitable Trust - a fund from The Bernard Lewis Family Charitable Trust towards developing the expansion of our programmes via a social licensing or partnership approach.

Black Perspective - a fund for development of a culturally-specific version of our Hero’s Journey™ life coaching programme for Black and Minority Ethnic young men in prison.

Groundworks - a fund from the London Community Response Fund to fund our community coaching programmes working with young people in contact with Youth Offending Services or criminal justice charities in London.

Big Give - a restricted fund for the project ‘The Conversation’.

Henry Smith Charity - a fund to contribute to the running costs of the charity including salaries of the management team.

Hero’s Journey™ - a fund (supported by multiple grant funders) for delivery of the Hero’s Journey™ Life Coaching Programme in prisons.

Listening Fund - a fund from the Blagrave Trust’s Listening Fund for development of mechanisms for listening to feedback and ideas from our participants.

Paul Hamlyn Foundation – a growth fund to support our strategic development and help fund our management team.

St James' Place Foundation - a fund from the St James’ Place Charitable Foundation to contribute to the salaries of Spark Inside’s Service Delivery Managers.

PHF Expert Support - an additional fund from Paul Hamlyn Foundation supporting access to expert support and advice.

Porticus - a fund for the coaching of young people and staff based at HMPYOI ISIS.

Tolkien Trust – a fund from The Tolkien Trust to provide a life coaching programme for prison staff.

Barrow Cadbury – a three-year grant or our policy work to advocate for the wellbeing of young people in prison and to champion racial inequity in the criminal justice system.

Colyer-Fergusson – a fund from Colyer Fergusson Charitable Trust for £36,000 per year for three years for work in HMP Cookham Wood.

Page 36

Spark Inside (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2023

19. Statement of funds (continued)

Champions for Children - two donations received in the year. £3,000 will help fund our work with young people affected by Covid and £12,500 will help us deliver our life coaching programmes to young people.

Field Family Trust - supporting life coaching for vulnerable young people in HMP Wormwood Scrubs.

Portal Trust - supporting the Hero's Journey programme, transforming the lives of vulnerable and disadvantaged young people in HMPYOI Isis.

Charles Hayward - supporting the delivery of Hero's Journey, Black Hero's Journey and Hero's Journey in the community.

PWC – this is to fund our Hero’s Journey™ Black Perspective pilot.

Fidelity – a fund from Fidelity UK Foundation to support our impact and innovation work, including funding the salary cost of Head of Impact and Innovation.

Esmée Fairbairn - funding a consultant providing expert advice on income growth.

Statement of funds - prior year

Unrestricted funds
Designated funds
Project specific designated
funds
Office move
IT upgrade
General funds
General funds
Total Unrestricted funds		 Balance at
1 April 2021
£
4,889
9,786
5,085
19,760
392,552
412,312		 Income
£
-
-
-
-
349,491
349,491		 Expenditure
£
-
(2,147)
(200)
(2,347)
(273,083)
(275,430)		 Transfers
in/out
£
-
-
-
-
(11,506)
(11,506)		 Balance at
31 March
2022
£
4,889
7,639
4,885
17,413
457,454
474,867

Page 37

Spark Inside (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2023

19. Statement of funds (continued)

Restricted funds
Confidential Donor
Black Perspective
Groundworks
Big Give The Conversation
City Bridge Trust
The Henry Smith Charity
Prudential PLC
Listening Fund
Paul Hamlyn Foundation
St James' Place Charitable
Foundation
PHF Expert Support
Porticus UK
The Tolkien Trust
Barrow Cadbury Trust
Colyer Fergusson Charitable
Trust
Champions for Children
Charles Hayward Foundation
PWC
Dawes Trust
Fidelity UK Foundation
Total of funds		 Balance at
1 April 2021
£
23,231
35,983
-
53,945
347
43,469
-
25,472
35,167
29,692
-
-
-
14,000
36,000
-
-
10,000
-
-
307,306
719,618		 Income
£
-
-
47,500
-
6,875
-
1,500
23,400
110,000
-
34,636
45,000
25,000
28,000
-
15,500
20,000
-
60,000
67,622
485,033
834,524		 Expenditure
£
(23,700)
(10,934)
(27,977)
(1,137)
(7,222)
(43,469)
(1,500)
(23,649)
(97,745)
(29,692)
(43,687)
(14,639)
(12,288)
(27,685)
-
-
(20,000)
(100)
(61,986)
(15,750)
(463,160)
(738,590)		 Transfers
in/out
£
469
-
-
-
-
-
-
-
-
-
9,051
-
-
-
-
-
-
-
1,986
-
11,506
-		 Balance at
31 March
2022
£
-
25,049
19,523
52,808
-
-
-
25,223
47,422
-
-
30,361
12,712
14,315
36,000
15,500
-
9,900
-
51,872
340,685
815,552

Page 38

Spark Inside (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2023

20. Summary of funds

Summary of funds - current year

Designated funds
General funds
Restricted funds		 Balance at 1
April 2022
£
17,413
457,454
340,685
815,552
Balance at
1 April 2021
£
19,760
392,552
307,306
719,618		 Income
£
-
438,753
489,035
927,788
Income
£
-
349,491
485,033
834,524		 Expenditure
£
(3,446)
(374,041)
(510,497)
(887,984)
Expenditure
£
(2,347)
(273,083)
(463,160)
(738,590)		 Transfers
in/out
£
(13,967)
992
12,975
-
Transfers
in/out
£
-
(11,506)
11,506
-		 Balance at
31 March
2023
£
-
523,158
332,198
855,356
Balance at
31 March
2022
£
17,413
457,454
340,685
Summary of funds - prior year
Designated funds
General funds
Restricted funds
815,552

21. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2023
£
Tangible fixed assets
1,196
Current assets
597,078
Creditors due within one year
(75,116)
Total
523,158		 Restricted
funds
2023
£
-
332,198
-
332,198		 Total
funds
2023
£
1,196
929,276
(75,116
855,356

Page 39

Spark Inside (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2023

21. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Tangible fixed assets
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2022
£
1,915
516,185
(43,233)
474,867		 Restricted
funds
2022
£
-
340,685
-
340,685		 Total
funds
2022
£
1,915
856,870
(43,233)
815,552

22. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Dividends, interests and rents from investments
(Increase) in debtors
Increase in creditors
Net cash provided by operating activities
23.
Analysis of cash and cash equivalents
Cash at bank
Total cash and cash equivalents		 2023
£
39,804
718
(7,394)
31,903
31,883
96,914
2023
£
907,380
907,380		 2022
£
95,934
240
(1,697)
(30,107)
4,881
69,251
2022
£
803,071
803,071

Page 40

Spark Inside (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2023

24. Analysis of changes in net debt

Cash at bank At 1 April
2022
£
803,071
803,071		 Cash flows
£
104,309
104,309		 At 31 March
2023
£
907,380
907,380

25. Pension commitments

The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £22,530 (2022: £19,251). At the balance sheet date there were contributions of £3,039 due to the fund (2022: £2,519).

26. Operating lease commitments

At 31 March 2023 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:

2023 2022
£ £
Not later than 1 year - 11,710

27. Related party transactions

There were no disclosable related party transactions during the year (2022 - £Nil) and there are no balances outstanding with any related parties at the Balance sheet date (2022 - £Nil).

28. Controlling party

The trustees who are also directors control the charity.

Page 41