**Charity Registration No. 1158695**
**Company Registration No. 08447370 (England and Wales)**
## **PROMISE FOUNDATION**
# **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **PROMISE FOUNDATION**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|C Lewis|
|---|---|
||S Reynolds|
||E Shapero|
||P Knight|
||A Yakubu|
||M Hulme|
||J Campbell|
||T Whitwell|
||N Ramsay|
||C Miller|
|**Secretary**|J Campbell|
|**Charity number**|1158695|
|**Company number**|08447370|
|**Registered office**|Plot 7|
||70 Craven Park|
||London|
||NW10 9AZ|
|**Independent examiner**|Rouse Partners LLP|
||55 Station Road|
||Beaconsfield|
||Buckinghamshire|
||HP9 1QL|
## **PROMISE FOUNDATION**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 4|
|Independent examiner's report|5|
|Statement of financial activities|6|
|Balance sheet|7|
|Notes to the financial statements|8 - 13|
## **PROMISE FOUNDATION**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_
The trustees present their report and financial statements for the year ended 30 September 2020.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's article of association , the Companies Act 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 UK and Republic of Ireland (FRS 102) ".
## **Objectives and activities**
The charity's mission statement is as follows:
Promise Foundation deploys the resources of the community to provide young people with a mentoring relationship that unlocks their unique potential.
The charity's objectives are to:
-Advance academic and career prospects.
-Provide formal mentoring and training.
-To promote the advancement of education for the public benefit, in particular, but without limitation by providing advice, training, coaching and mentoring to students and young persons aged 13 to 18 years.
Our mentees come from households in which the following are pressing issues, and are referred based on the prevalence of:
-Pupil Premium.
-Single-parent families.
-Being in care. -'Complex' needs such as crowded housing.
-Not having English as a first language (relevant to 60% of mentees).
## **Main activities**
Over a hundred and sixty people including young people from disadvantaged communities between the age of 12 – 18 and adults benefited directly from the services provided by Promise Foundation.
Activities for young people include: mentoring, academic support, training , work experience and extracurricular trips.
For adults: volunteering, work experience and training .
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
## **Objectives for the Year**
The charity has delivered its objectives of running a wide range of mentoring and training activities for young people from disadvantaged communities and adults. These activities have focused on raising attainment of young people from disadvantaged communities, broadening their horizons, increasing independence and improving well-being socially and academically.
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## **PROMISE FOUNDATION**
## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_
## **Achievements and performance**
30 young people from disadvantaged communities received mentoring and training and made significant progress.
70% of students made progress in three or more of their subjects.
Teachers reported that 39% of mentees made an improvement in their grades in both Maths and English; followed by a 54% improvement in Science.
66% of students agreed with the statement ‘mentoring has helped me to do better in school’.
## Skills Club, Confidence, Self-esteem
76% of students said that attending weekly mentoring sessions had made them feel more confident.
A mentee said that one of the most beneficial development activities she worked with her mentor on was ‘self confidence’ and this had an impact on her personal growth when it comes to public speaking.
A mentee spoke about the impact his mentoring sessions had on his low self-esteem. He said ‘my mentor has helped me figure out how to improve my confidence when talking to strangers. I am more confident when talking to new people’
54% of students agreed that ‘attending mentoring sessions has had a positive impact on my self-esteem’; with over a third saying that mentoring extremely made an impact.
71% of students felt more positive about how they view their future.
78% of mentees in year 10 received work experience placements in a number of industries including, the Media, Architecture and Home Automation.
## Targets
83% of mentees said that their mentors provided regular feedback and constructive criticism in order to help them achieve their targets.
A mentee said ‘my mentor has helped me express myself. I learnt to articulate my thoughts better. I am able to identify struggles and make them better.’
30 Adults comprising of volunteers from the local area delivered and received mentoring and training. All of these were involved in a mentoring relationship. A number of adult mentors say that they now feel confident enough to get involved in their local community.
60 parents benefitted from having their children participate in the mentoring programme. 60% are single parents or families otherwise identified as having 'complex' needs such as crowded housing.
The charity has reviewed the business plan and continues to identify the need to improve its fundraising performance and thus future viability in order to maintain the fundamental services needed to co-ordinate the project. The charity has continued to pursue many areas of funding in order to further secure its income stream for the academic year 2020/21.
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## **PROMISE FOUNDATION**
## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_
Impact on how students view their future/how they feel about life after school
88% of students saying that they now felt more positive about how they view their future.
Pupils were asked if having a mentor had helped them think more clearly about what they wanted to do when they left school and 66% of pupils said that it had.
30 Adults comprising of volunteers from the local area delivered and received mentoring and training. All of these were involved in a mentoring relationship, with 79% overall attendance this year. A number of adult mentors say that they now feel confident enough to get involved in their local community.
60 parents benefitted from having their children participate in the mentoring programme. 60% are single parents or families otherwise identified as having 'complex' needs such as crowded housing.
The charity has reviewed the business plan and continues to identify the need to improve its fundraising performance and thus future viability in order to maintain the fundamental services needed to co-ordinate the project. The charity has continued to pursue many areas of funding in order to further secure its income stream for the academic year 201 9 / 20 .
## **Financial review**
Net incoming resources for the year amounted to a surplus of £ 7,569 (201 9: £ 4,764 ). Unrestricted reserves stand at £ 11,482 (201 9 : £ 12,355 ) and restricted reserves stand at £ 13,422 (201 9 : £ 5 , 000 ). All funding was spent in accordance with the key objectives of the charity.
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The trustees seek to maintain sufficient reserves to cover contingent liabilities . I n line with good governance, we seek to increase the level of our reserves.
The charity's fixed assets are few, because the accommodation and facilities it enjoys are provided by partner schools.
## **Investment policy**
The charity only invests funds in guaranteed investment/high interest deposit accounts operated by high street banks.
The trustees has assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
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## **PROMISE FOUNDATION**
## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_
## **Structure, governance and management**
The Charity is governed by its Article of Association dated 15 March 2013, registered with the Charity Commission with charity registration number 1158695 on 26 September 2014.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
C Lewis S Reynolds E Shapero P Knight A Yakubu M Hulme J Campbell T Whitwell N Ramsay C Miller
The board of trustees aims to represent a range of skills and backgrounds including: education, parents of children who attend or used to attend partner schools, media, charity and business professionals.
Membership of the board of trustees is for three years in the first instance. Following the resignation of a trustee, the board will consider the existing skills set alongside the strategic needs of the charity when deciding where to recruit a replacement. A committee of trustees will interview prospective candidates and select those to invite to become members of the board.
No preference dividends were paid. The directors do not recommend payment of a final dividend.
The trustees' r eport was approved by the Board of Trustees.
**P Knight** Trustee Dated: 9 February 2021
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## **PROMISE FOUNDATION**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF PROMISE FOUNDATION**
I report to the trustees on my examination of the financial statements of Promise Foundation (the charity) for the year ended 30 September 2020.
## **Responsibilities and basis of report**
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- 1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
- 4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Rouse Partners LLP
55 Station Road Beaconsfield Buckinghamshire HP9 1QL
Dated: 9 February 2021
- 5 -
## **PROMISE FOUNDATION**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2020**
**2020**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**2**
6,286
32,329
Charitable activities
**3**
-
-
**Total income**
6,286
32,329
**Expenditure on:**
Charitable activities
**4**
6,192
23,888
**Net income for the year/**
**Net movement in funds**
94
8,441
Fund balances at 1
October 2019
12,355
5,000
**Fund balances at 30**
**September 2020**
12,449
13,441|**Total**Unrestricted
Restricted
funds
funds
**2020**
2019
2019
**£**
**£**
**£**
38,615
15,775
14,238
-
200
-
38,615
15,975
14,238
30,080
11,211
14,238
8,535
4,764
-
17,355
7,591
5,000
25,890
12,355
5,000|Total
2019
**£**
30,013
200
30,213
25,449
4,764
12,591
17,355|
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
- 6 -
## **PROMISE FOUNDATION**
## **BALANCE SHEET**
## _**AS AT 30 SEPTEMBER 2020**_
|**Notes**
**Current assets**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**8**
Net current assets
**Income funds**
Restricted funds
**9**
Unrestricted funds|**2020**
**£**
29,446
(3,556)|**£**
25,890
13,441
12,449
25,890|**2019**
**£**
23,628
(6,273)|**£**
17,355
5,000
12,355
17,355|
|---|---|---|---|---|
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 September 2020.
The directors acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on 9 February 2021
P Knight
**Trustee**
## **Company Registration No. 08447370**
- 7 -
## **PROMISE FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_
## **1 Accounting policies**
## **Charity information**
Promise Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is Plot 7, 70 Craven Park, London, NW10 9AZ.
## **1.1 Accounting convention**
The accounts have been prepared in accordance with the charity's governing document, the Companies Act 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 UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
## **1.2 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.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
## **1.4 Income**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations and grants are recognised on receipt.
## **1.5 Expenditure**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings: Expenditure on charitable activities includes costs associated with mentoring programme , support and governance costs which are incurred in running the charity .
Support costs are those that assist the work of the charity and include overhead costs, governance costs and administrative costs. They are incurred directly in support of expenditure on the objects of the charity and allocated to expenditure on charitable activities on a basis consistent with use of the resources.
- 8 -
## **PROMISE FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_
## **1 Accounting policies**
## **(Continued)**
## **1.6 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs .
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
## **1.7 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
## **1.8 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## **2 Donations and legacies**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**£**
**£**
Donations and gifts
6,286
-
Grants
-
32,329
Gift Aid Tax
-
-
6,286
32,329
**For the year ended 30 September 2019**
15,775
14,238|**Total**
**2020**
**£**
6,286
32,329
-
38,615|**Total**
**2019**
**£**
8,727
20,238
1,048
30,013
30,013|
|---|---|---|
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## **PROMISE FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_
## **3 Charitable activities**
||**2020**|**2019**|
|---|---|---|
||**£**|**£**|
|Mentoring income|-|200|
|**Charitable activities**|||
||**Costs**|
**Costs**|
||**associated**|
**associated**|
||**with**|
**with**|
||**mentoring**|
**mentoring**|
||**programme**|
**programme**|
||**2020**|
**2019**|
||**£**|
**£**|
|Staff costs|22,699|
19,874|
|Mentoring programme costs|4,544|
2,000|
||27,243|
21,874|
|Share of support costs (see note 5)|1,030|
1,795|
|Share of governance costs (see note 5)|1,807|
1,780|
||30,080|
25,449|
|**Analysis by fund**|||
|Unrestricted funds|6,192|
11,211|
|Restricted funds|23,888|
14,238|
||30,080|
25,449|
## **4 Charitable activities**
- 10 -
## **PROMISE FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_
|**5**
**Support costs**
**Support costs Governance**
**costs**
**£**
**£**
Repairs
383
-
Telephone & Fax
338
-
Travelling expenses
178
-
Mentor Training
1,040
-
Subsistence
-
-
Advertising
60
-
Subscriptions
216
-
Event costs
112
-
Legal and
professional
190
162
Bank charges
-
83
Independent
examination fee
-
1,470
Filing of annual
return
-
13
**2,517**
**1,728**
Analysed between
Charitable activities
1,030
1,807|**2020**
**£**
383
338
178
1,040
-
60
216
112
352
83
1,470
13
**4,245**
2,837|**2019 Basis of allocation**
**£**
377 Actual basis
286 Actual basis
625 Actual basis
- Actual basis
14 Actual basis
560 Actual basis
216 Actual basis
338 Actual basis
84
Governance
- Governance
1,440
Governance
13
Governance
**3,953**
3,575|
|---|---|---|
## **6 Trustees**
None of the trustees (or any persons connected with them) received any remuneration during the year .
## **7 Employees**
The average monthly number of employees during the year was:
||**2020**|**2019**|
|---|---|---|
||**Number**|**Number**|
||1|1|
|**Employment costs**|**2020**|**2019**|
||**£**|**£**|
|Wages and salaries|22,699|19,701|
|Other pension costs|-|173|
||22,699|19,874|
- 11 -
## **PROMISE FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_
## **7 Employees**
## **(Continued)**
There were no employees who received total employee benefits (excluding any employer pension costs) of more than £60,000.
## **8 Creditors: amounts falling due within one year**
|Other taxation and social security
Accruals and deferred income|**2020**
**£**
2,116
1,440
3,556|**2019**
**£**
3,083
3,190
6,273|
|---|---|---|
## **9 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
|||**Movement in funds**|**Movement in funds**|||**Movement in funds**|**Movement in funds**||
|---|---|---|---|---|---|---|---|---|
||**Balance at**|**Incoming**|**Resources**||**Balance at**|**Incoming**|**Resources**|**Balance at**|
||**1 October 2018**|**resources**|**expended**|
**1**|**October 2019**|**resources**|**expended**|**30 September**|
|||||||||**2020**|
||**£**|**£**|**£**||**£**|**£**|**£**|**£**|
|Project Co-|||||||||
|ordinator|||||||||
|salary|-|14,238|(14,238)||
-|22,699|(22,699)|
-|
|Mentorship|||||||||
|Program|-|-|-||-|9,630|(1,189)|
8,441|
|Major capital|||||||||
|costs|5,000|-|-||5,000|-|-|5,000|
||5,000|14,238|(14,238)||
5,000|32,329|(23,888)|
13,441|
The Project Co-ordinator salary fund was set up due to a restricted grant received providing support towards the salary of a fundraising role.
Mentorship program relates to funds received to run the mentoring program in the year.
The Major capital costs fund was set up due to a restricted grant received providing support in case of major capital costs or professional fees incurred.
- 12 -
## **PROMISE FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_
|**10**
**Analysis of net assets between funds**
**Unrestricted**
**Restricted**
**2020**
**2020**
**£**
**£**
Fund balances at 30
September 2020 are
represented by:
Current assets/
(liabilities)
12,449
13,441
12,449
13,441|**Total**Unrestricted
Restricted
**2020**
2019
2019
**£**
£
£
25,890
12,355
5,000
25,890
12,355
5,000|Total
2019
£
17,355
17,355|
|---|---|---|
## **11 Related party transactions**
There were no disclosable related party transactions during the year.
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