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**REGISTERED CHARITY NUMBER: 1162197**
**Report of the Trustees and Consolidated Financial Statements for the Year Ended 30 June 2021 for Founders4Schools**
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**Founders4Schools**
Online: https://www.founders4schools.org.uk/annual-review-index/
## **Contents of the Consolidated Financial Statements for the Year Ended 30 June 2021**
||**Page**|
|---|---|
|**Chairman’s Report**|1|
|**Report of the Trustees**|2 to 9|
|**Report of the Independent Auditors**|10 to 11|
|**Consolidated Statement of Financial Activities**|12|
|**Consolidated Statement of Financial Position**|13|
|**Charity Statement of Financial Position**|14|
|**Consolidated Statement of Cash Flows**|15|
|**Notes to the Consolidated Financial Statements**|16 To 27|
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## **Founders4Schools**
## **Chairman’s Report for the Year Ended 30 June 2021**
## **Access impact review online: https://www.founders4schools.org.uk/annual-review-index/**
It is 10 years since we put together the first prototype for Founders4Schools and I am pleased to report that since then, we have facilitated more than 1.5 million encounters between employers and students via educators - despite the recent backdrop of the recent global pandemic, which has been incredibly disruptive to all the elements of our value chain.
To have helped more than 500,000 young people with their transition to work is a testament to what can be achieved by stakeholders in their communities when they put their minds and resources together on important matters, but there is much more to do, and it is more important than ever.
I am pleased that innovation still beats strongly within our heart - and that our original offering now enables additional encounter-types in the tech-for-good sphere.
**Maths4Girls:** “If you can’t see it you can’t be it”. Our high impact and incredibly popular Maths4Girls project allows us to showcase women in all industries who deploy mathematics in their everyday professional lives to 11–14-year-old girls. Our online and in-real life encounters are cross referenced to the UN Sustainable Development Goals, allowing both educators and the employers of our volunteers to chart their impact on the SDG’s as well.
**Digital Boost.** To support members of our community who have been volunteering their time in classrooms for the past ten years, we leveraged the F4S platform so it could tap the highly expert volunteers from the professional services and digital sectors to inspire and upskill our volunteers who work for small business sector (rather than educators from schools). This preserves and makes more resilient the pipeline of (adult) talent we make available to teachers for the benefit of the young people they teach.
**Workfinder:** The classroom is a very narrow place from which to view the world and work experience is the single greatest booster of aspiration and attainment! For these reasons, we supplement the classroom-based encounters we make available to young people experiential learning, mentoring, masterclasses and short-online courses via Workfinder. Our experiential learning ranges from shorter employer tasters to placements of 1-4 weeks, to internships of 1-12 months, to apprenticeships and permanent roles.
Making the transition to work easier for 500,000 young people would not have been possible without phenomenal efforts of multiple stakeholders to whom I extend my wholehearted appreciation. From the educators who choose our platform to enrich their curriculum; to the volunteer role models who share their time, knowledge, and career journeys; to our individual donors and corporate partners whose donations and grants enable us to employ staff and contractors and to the wonderfully kind Trustees, Advisors and colleagues at F4S, whose activities support us throughout the year.
I am grateful to you all for thriving in what was a challenging year in an interesting journey so far. As I look forward, I am encouraged by what is already shaping up to be an impactful year supporting the next generation of talent as they prepare for the world of work.
Sherry Coutu CBE, Founder and Chair To access the accompanying impact report: click here: https://www.founders4schools.org.uk/annual-review-index/
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## **Founders4Schools**
## **Report of the Trustees**
## **for the Year Ended 30 June 2021**
The trustees present their report with the financial statements of the charity for the year ended 30 June 2021. The trustees have adopted the provisions of 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 statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity's governing document, the Charities Act 2011 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.
## **OBJECTIVES AND ACTIVITIES**
F4S’ charitable object, as set out in the constitution, is to advance and promote the education of people under the age of 25 by promoting, facilitating and assisting in the provision of careers education and advice with the intention of encouraging and enabling young people to leave formal education with a skill set that is appropriate for or consistent with available jobs, thereby reducing the skills gap.
The activities carried out by Digital Boost are closely linked to the educational objects of the charity. As Digital Boost has grown and flourished during the year, the Charity is currently in the process of expanding its objects to include helping those who work for SMEs and Charities to acquire the digital skills necessary to grow the organisation.
## **ABOUT US**
F4S operates in a double-sided marketplace, meeting the needs of both educators and the business community. With your help, F4S has become an award-winning charity connecting students with inspirational role models to improve their aspirations, to fulfil their potential and to prepare them for the rapidly changing world of work.
We collaborate with educators, partners, parents, volunteers and students to offer an online platform that makes recommendations to educators, so they can arrange StudentEmployer Encounters (SEEs) based on their preferred criteria in just minutes. Educators who use our services can choose from over twenty different types of SEEs, and our personalised guidance builds upon research commissioned by our partners including the Royal Society, Gatsby Foundation, Enabling Enterprise and other stakeholders who make this possible. These SEEs increase youth employability, improve social mobility and help close the skills-gap that is a major obstacle to economic growth.
Our approach has been endorsed by the IOD, FSB, Chamber of Commerce and CBI.
We continue to consult widely with educators as well as business to ensure it best meets their ongoing and future needs. In this way, teachers and volunteers are empowered not burdened with yet another initiative. Our success depends on engaging and collaborating with our core groups of stakeholders. We monitor NPS scores of our services, now including Digital Boost, and the number of repeat educator bookings to measure our success.
We are committed to supporting the continued learning and development of educators who use our services to enhance their ability to prepare students in our communities for the future of work.
We launched Digital Boost in partnership with BCG Digital Ventures and with the support of DCMS to help those who work for SMEs and Charities upskill digitally to help mitigate business challenges presented by the COVID- 19 crisis.
The services that F4S provides helps to improve social mobility, inclusivity and access to employability skills, levelling the playing field for those who need them the most.
## **HIGHLIGHTS OF THE YEAR**
Following the successful launch of our new StudentEmployer Encounter type called Maths4Girls, Maths4Girls was rolled out nationally. This has meant that including the pilot project by the end of June 2021 there were over 33,000 M aths4Girls encounters.
In our continued commitment to respond to the changing needs of young people, we launched our first virtual careers fair, Careers Jam, in May. Over 1,500 young people attended from over 100 UK locations, with almost 50% of attendees identifying as coming from a BAME origin.
Digital Boost, a service helping those who work for SMEs and Charities to acquire the digital skills necessary to grow the organisation, has flourished and in June Digital Boost was transferred into the charity’s limited arm. This will bring the charity’s core delivery back to career education whilst enabling Digital Boost to develop independent income and to generate profits in the future.
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## **Founders4Schools**
## **Report of the Trustees for the Year Ended 30 June 2021**
Also in June we launched our 'Sustainable Futures' programme, in collaboration with WWF and Villiers Park Educational Trust and supported by Evolution Education Trust. The programme aims to accelerate opportunities for young people and make sustainable careers an attractive place for them to focus their futures.
## **OUR IMPACT**
We are keen to discover new methodologies to collect insights measuring our impact. Using qualitative and quantitative data, we demonstrate the outcome F4S’ services make on student and educator satisfaction.
We create assets that demonstrate impact in the following ways:
Booking per Educator
Educator certification – From our CPD certified training programme
NPS scores – Net Promoter Score: a universally used benchmark measure to evaluate and improve customer loyalty.
All our projects are scalable and are monitored effectively to attract sustainable support from corporate partners. We are able to see and share the number and effectiveness of our services. We will continue to develop our insight services so we can effectively monitor our impact.
Public benefit statement
The trustees can confirm that in exercising their powers and duties they have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission.
## **Financial Review**
The Charity generated total income of £1,322k for the year ended 30 June 2021 (2020: £2,040k) This consists of £1,259k (2020 £2,038k) from donations and grants and £62k (2020 £1k) from other sources.
Restricted income, which can only be used for a specific purpose, amounted to £1,009k (2020: £306k) and makes up 76% (2020: 15%) of total income. £605k in the year ended 30 June 2021 (2020: £nil) relates to restricted income relating to Digital Boost.
There were no donated services in 2021. In the previous period, in-kind donations totalled £940k which represented the costs incurred to develop the Digital Boost project. On 1 June 2021 the Digital Boost project was transferred into a separate trading company.
Total costs were £1,336k (2020: £1,745k after restatement).
The 2020 expenditure includes software development costs of £560k in respect of the Digital Boost platform. Previously development costs were capitalised but, following a change to a more prudent accounting policy, development costs have been expensed in the year incurred so the prior period has been restated.
Funds carried forward at the end of the year were £1,164k (2020: £1,179k after restatement), which comprised of £946k (2020: £1,021k) in unrestricted funds and £218k (2020: £158k) in restricted funds.
Free reserves are the part of a charity’s unrestricted funds that are freely available to spend on any of the charity’s purposes.
Free reserves are calculated by taking the total unrestricted funds and excluding tangible fixed assets and investments as these assets are not freely available to contribute towards working capital requirements.
At the end of the year free reserves stood at £99k (2020: £177k).
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
F4S is a charitable incorporated organisation governed by its constitution.
It has the support of many stakeholders from the worlds of education, philanthropy and banking that support our important work.
## **Investment Policy**
The charity will only make investments in organisations whose objectives are consistent with the charitable aims of Founders4Schools.
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## **Founders4Schools**
## **Report of the Trustees for the Year Ended 30 June 2021**
The Charity has a wholly owned subsidiary Digital Boost Upskilling Limited which changed its name from F4S Trading Ltd on 16 November 2021. On 1 June 2021 the activities of Digital Boost were hived down to the subsidiary. Prior to the hive down the subsidiary was dormant. Digital Boost provides digital skills for SMEs.
The Charity also has an investment in Workfinder Limited. Workfinder was spun out of Founders4Schools in 2019. It is anticipated that the shareholding in Workfinder will reduce as Workfinder continues to raise further investment through the issue of share capital. Workfinder’s principal activity is the placement of young people in work internships and work placements.
## **Reserves Policy**
The charity is currently building its reserves balance and it aims to achieve the desired level of reserves by 2026. The Charity’s desired level of reserves is to hold 4 months of operating expenditure in free reserves. This will enable the charity to manage financial risk and short term income volatility.
The level of free reserves at 30 June 2021 is £99k which represents approximately two months of operating expenditure. Free reserves are the part of the charity’s unrestricted funds that are freely available to spend on any of the charity’s purposes.
Free reserves are calculated by taking the total unrestricted funds and excluding tangible fixed assets and investments as these assets are not freely available to contribute towards working capital requirements.
## **Principal Risks**
The principal risks facing the charity, as identified by the trustees, are outlined below along with the strategies to mitigate them:
- 1.Lack of funding - Risk mitigation:
- Ensuring the on-going strength of pipeline fundraising activity is split between managing the growth of existing supporters and the business development to identify and attract new supporters
- Diversification of fundraising sources and income streams related to services we provide including Work Experience Referrals, Training and Certification and Licence Fees
- Clear communication of F4S’ mission in a concise case for support to encourage unrestricted funding
- Ensure sufficient impact evidence and case studies to demonstrate worth of investment
- 2.The software platform is not effective - Risk mitigation:
- Ensuring consistent, robust software development and testing
- Ensuring regular feedback from users and software updates on operational functionality
- Securing specific funding and in kind support to redevelop the platform
3. Failure to attract and retain the right quality of staff – Risk mitigation:
- Annual salary survey and pay review was undertaken to align pay with sector market rates
- Training, conditions, performance development and feedback systems are reviewed on a regular basis
- Succession planning was undertaken
- Staff Survey and appropriate action taken on the outcomes highlighted
4. Reliance on Workfinder and Digital Boost success as an alternative income source to supplement our existing funding of charity operation
- Risk mitigation:
- Evaluating other providers of income
- Developing alternative revenue streams
5. Competition and increased web-based offerings from other similar programmes in the UK – Risk mitigation: Keeping abreast of competition and ensuring we have a clear brand and identity
- Ensuring clear service offer
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**Founders4Schools**
## **Report of the Trustees for the Year Ended 30 June 2021**
## **THANK YOU TO OUR DONORS AND PRO BONO PARTNERS**
We would like to thank all our partners for their ongoing support and look forward to working with you closely over the next year. To find out more about our partners, please visit www.founders4schools.org.uk/partners.
Thank you to all of our funders/partners for their generosity. We are immensely grateful for your ongoing support.
These include:
100 Women in Finance ABB Power Grids Barclays BCG Digital Ventures Bloomberg BT Chubb Chesterfield Charitable Foundation Draper Foundation Department for Digital, Culture, Media and Sport Enders Analysis Evolution Education Trust EY Goldman Sachs Google Innovate UK Insurance Industry Charitable Foundation JP Morgan Kusuma Trust LinkedIn London Borough of Hammersmith and Fulham Novartis Pharmaceuticals Sage Foundation Scottish Government Scottish Tech Army Shoosmiths Snap Tata Consultancy Services The Hone Family Charitable Trust The Worshipful Company of Actuaries Tides Foundation Villiers Park Educational Trust Visa
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## **Founders4Schools**
## **Report of the Trustees for the Year Ended 30 June 2021**
## **ORGANISATIONAL STRUCTURE**
The charity decision-making and overall strategic direction of the charity are determined by the trustees, who are supported by Advisory Councils, which are made up of senior business leaders and educationalists.
The following table summarises the key elements of the charity’s organisational structure:
**Organisational Element Key Roles and Responsibilities** Trustee Board: Meet quarterly The ultimate responsibility for directing the affairs of the charity, ensuring it is solvent, well-run, as well as manages and assesses risks and ensure it is achieving its charitable status Meet quarterly to advise on impact, to refer funding opportunities, and to Advisory Councils: act as ambassadors for F4S in their communities
Meet weekly to execute plans that have been approved by the trustees and to review and mitigate key strategic and operational risks. It is Senior Management Team: responsible for fundraising, business development and internal operations including financial control and; programmes Daily stand up meetings Staff: Reviews and provide input to strategic three-year business plan and annual business plan
The Chairman is Sherry Coutu.
New trustees are appointed by the board, after a skills audit and a gap analysis, at the recommendation of the Nominations Committee. New trustees are issued with an appointment letter together with an agreement for signing and as part of their induction will meet with each member of the senior management team to gain a comprehensive overview of all current activities. Trustee training and development is reviewed on an annual basis.
The trustees and the senior management team constitute the key management personnel of the charity. No trustee received remuneration during the period.
The Board of Trustees has delegated responsibility to the Board Remuneration Committee (“Remco”) to oversee the remuneration arrangements in respect of the managing director and set the targets for performance-related pay.
The Remco reviews the existing remuneration of the Managing Director, making comparisons with peer charities of similar size and complexity and is informed by a range of external benchmarking reports.
The pay of all senior staff is reviewed annually by the managing director initially who then makes recommendations to the Board of Trustees. It is our policy to remunerate fairly, to ensure that we attract and retain the skills we require to deliver our service offering and future strategy. We benchmark roles and job descriptions to relevant not-for profit sector role
## **INFORMATION ON FUNDRAISING PRACTICES**
F4S is supported by a number of corporations, charitable trusts and foundations, as well as philanthropic gifts from major donors. We thank supporters appropriately and demonstrate the difference their money makes.
The Charity has in place a range of policies and processes that promote corporate responsibility and ethical behaviour, and we have further strengthened our approach during the course of the year. This includes an updated whistle blowing policy
Since 1 September 2021 F4S has been registered with the Fundraising Regulator, an independent body who set and maintain the standards for charitable fundraising.
In registering we agree to fundraise according to the regulator's strict set of codes and adhere to the Fundraising Promise, ensuring that our fundraising is legal, open, honest and respectful
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## **Founders4Schools**
## **Report of the Trustees for the Year Ended 30 June 2021**
We do not sub-contract fundraising activities to third parties.
We have received no complaints about our fundraising activities during both this year and the previous one.
We are developing our fundraising strategy and plans for 2021/22 and beyond as part of the business planning process. The high-level goals are:
To diversify our sources of funding, including:
i. Build a new corporate and major donor prospect pipeline to increase the number of organisations we work with and secure financial support from
ii. Grow unrestricted income to support our activity
iii. Secure restricted income only where it fits with our strategic goals
iv. Develop and implement an engagement strategy for high net worth individuals
v. Devote time and resources into building long-term relationships with potential donors
vi. To build a case for support which attracts High Net Worth support
To build capacity and infrastructure to support a more diverse funding model, including:
i. Grow capacity in the team to support UK expansion
ii. Continue to add members to our trustee board and advisory councils to steer our fundraising strategy and expand our funding networks iii. Communicate effectively with partners and donors with regular impact reports, newsletters, events, and other engagement activities
iv. Improve donor communication and recognition via the website
v. Integrate fundraising messages into our marketing activities
During the year the charity spent £175k on raising funds of £1,322k compared to £140k on £2,0401k in the previous year.
## **PLANS FOR THE FUTURE**
## Looking Forward
We’re proud of the work we delivered throughout a challenging year. As the impacts of Covid-19 are expected to be with us for a long time, close attention to ensuring financial sustainability is a priority for the Trustees and senior management team who will continue to closely monitor the impact on the overall delivery and development of the charity. That said we have big ambitions for both our future activity and the impact we have on creating brighter futures for young people across the UK.
## Diversifying our income streams
We have laid the foundations on which to strengthen our activity in securing corporate partnerships and driving individual giving to support our income diversification particularly in terms of unrestricted funding. We will build on this work through projects already in the pipeline such as our inaugural Role Model Week and Big Give campaigns that will support us in delivering our mission and future sustainability.
## Expanding our reach
Our platform is built to scale and has the capacity to support far more educators. We have plans to expand our offer to more schools and more young people. We will amplify the work we do through partnerships, developing internal processes and a strengthened marketing proposition. We will also work to ensure that as we open our services we maintain and strengthen the delivery of our core values of equality, diversity and inclusion - social and geographic.
## Aligning with our strategic priorities
Digital skills, sustainability and equity in STEM - we are passionate about these areas, believing they are important to the wider UK economy. Raising awareness, overcoming unconscious bias, tackling socio-economic barriers and developing a pipeline of talent who believe their future belongs to these sectors will be a focus when developing projects and partnerships.
## Putting impact at the heart of our work
We will strive to improve the ways we show the impact of the work that we do and that it reflects the society in which we live. The work that we do to help prepare young people can take years to bear fruit but as a data-driven organisation, we believe that demonstrating impact is a key element of the work we do.
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**Founders4Schools**
## **Report of the Trustees for the Year Ended 30 June 2021**
## **REFERENCE AND ADMINISTRATIVE DETAILS**
**Registered Charity number** 1162197
## **Principal address**
22 Chancery Lane London WC2A 1LS
## **Trustees**
Sherry Coutu CBE Stephen Bolton (stepped down 30 September 2020) Janet Coyle Joanne Hannaford Gary Hanson (appointed 1 July 2021) John Mushriqui (appointed 16 November 2020) Jonathan Pearl Russ Shaw CBE Claire Valoti (appointed 4 September 2020) Lauren Von Stackelberg Gori Yahaya (appointed 9 December 2020)
## **Key management personnel**
M Eschbach – Managing Director J Wong / J Dunn – Finance Director N Scott / L Robinson – Director of Fundraising S Shoyinka – Head of Project and Business Analyst R Stuart – Director of Partnership
## **Auditors**
MHA Monahans Statutory Auditor Chartered Accountants Fortescue House Court Street Trowbridge Wiltshire BA14 8FA
## **Solicitors**
Shoosmiths No.1 Bow Churchyard London EC4M 9DQ
## **Bank**
Metrobank One Southampton Row London WC1B 5HA
## **Registered office**
22 Chancery Lane London WC2A 1LS
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## **Founders4Schools**
## **Report of the Trustees for the Year Ended 30 June 2021**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"
The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charity SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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.
Approved by order of the board of trustees on 29[th] April 2022 and signed on its behalf by:
........................................................................ Sherry Coutu CBE - Trustee
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## **Report of the Independent Auditors to the Trustees of Founders4Schools**
## **Opinion**
We have audited the financial statements of Founders4Schools (the 'parent charity') and its subsidiary (the ‘group’) for the year ended 30 June 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated Statement of Financial Position, the Charity Statement of Financial Position, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In our opinion the financial statements:
- give a true and fair view of the state of the group’s and of the parent charity’s affairs as at 30 June 2021 and of the group’s incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s and the parent charity'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 trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.
## **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:
- the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which 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.
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## **Report of the Independent Auditors to the Trustees of**
## **Founders4Schools**
In preparing the financial statements, the trustees are responsible for assessing the group’s and parent charity'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 charity or to cease operations, or have no realistic alternative but to do so.
**Our responsibilities for the audit of the financial statements** We have been appointed as auditors under Section 144 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 a Report of the Independent Auditors 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
- Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;
- Understanding of management's internal controls designed to prevent and detect irregularities, and fraud;
- Reviewing the minutes of Board of Trustees meetings;
- Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing of expenses;
- Performing analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud;
- Reviewing of the financial statements disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations discussed above;
- Testing transactions entered into outside of the normal course of the charitable company's business; and
- Identifying and testing journal entries, in particular any journal entries with fraud characteristics such as journals with round numbers
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
## **Use of our report**
This report is made solely to the charity's trustees, 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 charity's trustees 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 charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.
MHA Monahans Statutory Auditor Chartered Accountants Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 Fortescue House Court Street Trowbridge Wiltshire BA14 8FA 29/4/2022 Date: .............................................
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## **Founders4Schools**
## **Consolidated Statement of Financial Activities for the Year Ended 30 June 2021**
|Notes
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
2
**Charitable activities**
4
Educational support
**Other trading activities**
14
Trading company income
Investment income
3
Other income
**Total**
**EXPENDITURE ON**
Raising funds
5
**Charitable activities**
6
Educational support
Other 14
**Total**
**NET (EXPENDITURE)/INCOME**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
As previously reported
Prior year adjustment
12
**As restated**
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
funds
£
279,728
-
-
79
32,552
312,359
174,977
212,570
-
387,547
(75,188)
1,689,916
(668,674)
1,021,242
946,054|Restricted
funds
£
979,678
-
29,779
-
-
1,009,457
-
896,421
52,263
948,684
60,773
157,604
(198)
157,406
218,179|2021
Total
funds
£
1,259,406
-
29,779
79
32,552
1,321,816
174,977
1,108,991
52,263
1,336,231
(14,415)
1,847,520
(668,872)
1,178,648
1,164,233|2020
Total
funds
as restated
£
2,038,440
550
-
410
296|
|---|---|---|---|---|
|||||2,039,696
139,731
1,605,563
-|
|||||1,745,294|
|||||294,402
884,246
-|
|||||884,246|
|||||1,178,648|
The notes form part of these financial statements
Page 12
DocuSign Envelope ID: 971128FF-5B9A-4BD3-A049-63769DEE3D1A
## **Founders4Schools**
|**Consolidated Statement of Financial Position**
**30 June 2021**
Unrestricted
Restricted
funds
funds
Notes
£
£
**FIXED ASSETS**
Tangible assets
13
6,516
-
Investments
14
840,452
-
846,968
-
**CURRENT ASSETS**
Debtors
15
45,367
145,759
Cash at bank
215,083
157,726
260,450
303,485
**CREDITORS**
Amounts falling due within one year
16
(161,464)
(85,206)
**NET CURRENT ASSETS**
98,986
218,279
**TOTAL ASSETS LESS CURRENT LIABILITIES**
945,954
218,279
**NET ASSETS**
945,954
218,279
**FUNDS**
18
Unrestricted funds
Restricted funds
**TOTAL FUNDS**|2021
Total
funds
£
6,516
840,452
846,968
191,126
372,809
563,935
(246,670)
317,265
1,164,233
1,164,233
946,054
218,179
1,164,233|2020
Total
funds
as restated
£
3,322
840,452
843,774
379,493
295,860
675,353
(340,479)
334,874
1,178,648
1,178,648
1,021,242
157,406
1,178,648|
|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 29[th] April 2022 and were signed on its behalf by:
............................................. Sherry Coutu CBE - Trustee
The notes form part of these financial statements
Page 13
DocuSign Envelope ID: 971128FF-5B9A-4BD3-A049-63769DEE3D1A
## **Founders4Schools**
## **Charity Statement of Financial Position 30 June 2021**
|Notes
**FIXED ASSETS**
Tangible assets
13
Investments
14
**CURRENT ASSETS**
Debtors
15
Cash at bank
**CREDITORS**
Amounts falling due within one year
16
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**NET ASSETS**
**FUNDS**
18
Unrestricted funds
Restricted funds
**TOTAL FUNDS**|Unrestricted
funds
£
6,516
840,552
847,068
45,367
215,083
260,450
(161,464)
98,986
946,054
946,054|Restricted
funds
£
-
-
-
145,750
66,000
211,750
-
211,750
211,750
211,750|2021
Total
funds
£
6,516
840,552
847,068
191,117
281,083
472,200
(161,464)
310,736
1,157,804
1,157,804
946,054
211,750
1,157,804|2020
Total
funds
as restated
£
3,322
840,552
843,874
379,493
295,860
675,353
(340,381)
334,972
1,178,846
1,178,846
1,021,242
157,604
1,178,846|
|---|---|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 29[th] April 2022 and were signed on its behalf by:
............................................. Sherry Coutu CBE - Trustee
The notes form part of these financial statements
Page 14
DocuSign Envelope ID: 971128FF-5B9A-4BD3-A049-63769DEE3D1A
## **Founders4Schools**
||**Consolidated Statement of Cash Flows**|**Consolidated Statement of Cash Flows**||
|---|---|---|---|
||**for the Year Ended 30 June 2021**|||
||2021||2020|
||||as restated|
||Notes|£|£|
|**Cash flows from operating activities**||||
|Cash generated from operations|20|82,098|292,867|
|Net cash/provided by operating activities||82,098|292,867|
|**Cash flows from investing activities**||||
|Purchase of tangible fixed assets||(5,227)|(3,458)|
|Purchase of fixed asset investments||-|(21,458)|
|Sale of tangible fixed assets||-|448|
|Interest received||79|410|
|Net cash used in investing activities||(5,148)|(24,058)|
|**Change in cash and cash equivalents in**||||
|**the reporting period**||76,950|268,809|
|**Cash and cash equivalents at the**||||
|**beginning of the reporting period**|295,860||27,051|
|**Cash and cash equivalents at the end of**||||
|**the reporting period**|372,810||295,860|
The notes form part of these financial statements
Page 15
DocuSign Envelope ID: 971128FF-5B9A-4BD3-A049-63769DEE3D1A
**Founders4Schools**
**Notes to the Consolidated Financial Statements for the Year Ended 30 June 2021**
## **1. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
Founders4Schools is a charitable incorporated organisation registered in England and Wales. The principal address of charity is given within the reference and administration details of these financial statements. The nature of the charity's operations and principal activities are provided in the Report of the Trustees.
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice.
The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view'. This departure has involved following the 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) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £1. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all periods presented unless otherwise stated.
## **Basis of consolidation**
These group financial statements consolidate the results of the charity and its wholly-owned subsidiary Digital Boost Upskilling Limited, both of which make up their financial statements to 30 June. Inter group income and expenditure is eliminated and all income and expenditure relate to external transactions only. A separate statement of financial activities for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by Section 24 of Accounting and Reporting by Charities: Statement of Recommended Practice.
The prior year's financial statements were prepared for the charity only as the subsidiary was dormant previously and only started trading from 1 June 2021.
## **Going concern**
The trustees have considered the charity’s cash flow projections to ensure that the charity will continue to be able to operate with the resources it is likely to have available and concluded that the charity is a going concern.
## **Income**
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. Donations and any associated Gift Aid are recognised on receipt of the donation. Gift in kind donations for services are recognised at the estimated value to the Charity.
## **Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **Software development costs**
The charity's trustees have taken the decision not to capitalise software development costs as intangible assets and instead treat software development costs as expenses in the Statement of Financial Activities when incurred. This is a change to the previous accounting policy which was to recognise costs as an intangible asset when certain criteria were met and then amortise over the estimated useful life. As this is a change in accounting policy the previously capitalised costs less amortisation have been accounted for as a prior year adjustment – see note 12 to the financial statements.
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DocuSign Envelope ID: 971128FF-5B9A-4BD3-A049-63769DEE3D1A
**Founders4Schools**
## **Notes to the Financial Statements - continued for the Year Ended 30 June 2021**
## **1. ACCOUNTING POLICIES - continued**
## **Fixed asset investment**
The investment valuation represents a prudent view of the costs of developing the Workfinder App. In 2019 the charity sold the intellectual property rights of the asset to an associate company Workfinder Newco Limited (now Workfinder Limited). Workfinder Limited plans to obtain additional 3rd party investment to further develop the product and the asset will be valued at fair value or in these accounts the asset is valued at capitalised cost of development less any impairment. Other costs incurred during development not capitalised were expensed as appropriate.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Computer equipment - 33% on straight line basis
## **Taxation**
The charity is exempt from tax on its charitable activities.
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **Pension scheme**
From October 2017 Founders4Schools has operated a defined contribution pension scheme for the benefit of its employees. The assets of the scheme are held independently from those of Founders4Schols in an independently administered fund. The pension costs charged in the financial statements represent the contributions payable during the year.
## **Debtors and creditors**
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Loans are initially recognised at transaction price and then subsequently measured at amortised cost using the effective interest rate model, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.
## **Financial instruments**
The charity has only 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.
## **Key sources of estimation uncertainty**
The most significant areas of uncertainty that affects the carrying value of assets held by the charity are the assumptions that affect the valuation of the Workfinder investment asset. In the previous year the charity sold the intellectual property rights of the asset during the year end to an associate company Workfinder Limited. Workfinder Limited plans to obtain additional 3rd party investment to further develop the product.
Uptake and future cash inflows will remain uncertain until the project is fully complete. The charity's trustees have therefore taken a prudent view of the value of the asset and have expensed significant costs, during the development phase, to reflect this uncertainty. The trustees consider that there is no impairment to the value at the balance sheet date.
Although the valuation reflects a prudent view of the costs incurred, it is anticipated that the investment will be valued at fair value in future periods as 3rd party investment is obtained. The value could significantly increase or decrease accordingly.
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DocuSign Envelope ID: 971128FF-5B9A-4BD3-A049-63769DEE3D1A
## **Founders4Schools**
## **Notes to the Financial Statements - continued**
## **for the Year Ended 30 June 2021**
## **2. DONATIONS AND LEGACIES**
|Donations
Gift aid
Grants
Donated services|2021
£
187,127
27,557
1,044,722
-
1,259,406|2020
£
724,486
82,863
291,091
940,000
2,038,440|
|---|---|---|
Donated Services received in 2020 represented consultancy time donated by the Boston Consultancy Group. The charity has considered the commercial rates of the donated time and is satisfied that the value to the charity is at a level the charity would have paid for the time if it had commissioned and paid for the work itself.
Significant grants and donations received, included in the above, are as follows:
|**Donations and legacies**
Sherry Coutu
Other donations
**Grants**
DCMS
The Scottish Government
Bloomberg
Evolution Education Trust
Barclays
Tides Foundation
JP Morgan Chase Foundation
Other grants|2021
£
112,829
74,298
187,127
2021
£
214,570
206,050
150,000
145,750
100,000
86,152
-
142,200
1,044,722|2020
£
300,000
424,486
724,486
2020
£
-
86,539
-
80,000
-
-
98,075
26,477
291,091|
|---|---|---|
A number of funders prefer to remain anonymous and their names have been excluded accordingly.
## **3. INVESTMENT INCOME**
|**INVESTMENT INCOME**|||
|---|---|---|
||2021|2020|
||£|£|
|Deposit account interest|79|410|
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DocuSign Envelope ID: 971128FF-5B9A-4BD3-A049-63769DEE3D1A
## **Founders4Schools**
## **Notes to the Financial Statements - continued**
## **for the Year Ended 30 June 2021**
## **4. INCOME FROM CHARITABLE ACTIVITIES**
|||2021|2020|
|---|---|---|---|
||Activity|£|£|
|Fee income|Educational support|-|550|
## **5. RAISING FUNDS**
## **Raising donations and legacies**
|**Raising donations and legacies**|||
|---|---|---|
|Staff costs
Insurance
Postage and stationery
Travel and subsistence
Rent
Sundries|2021
£
171,030
679
-
230
-
3,038
174,977|2020
£
121,876
227
234
1,418
9,128
6,848|
|||139,731|
## **6. CHARITABLE ACTIVITIES COSTS**
|Educational support
**7.**
**SUPPORT COSTS**
Management
£
Educational support
28,711|Direct
Costs
£
1,067,766
Finance
£
467|Support
costs (see
note 7)
£
41,225
Governance
costs
£
12,047|Totals
£
1,108,991|Totals
£
1,108,991|
|---|---|---|---|---|
|||||Totals
£
41,225|
Support costs are allocated between raising funds and charitable activities based on the estimated proportions of use of those resources.
Support costs, included in the above, are as follows:
|2021
Educational
support
£
Rent
-
Insurance
2,373
Postage and stationery
212
Advertising and marketing
4,431
Sundries
6,762
Events and entertaining
-
Recruitment
1,908
Legal fees
11,445
Depreciation of tangible and heritage assets
1,580
Bank charges
467
Auditors' remuneration
12,047
41,225|2020
Total
activities
£
43,412
1,360
1,510
24,520
6,906
3,475
19,371
65,685
402
390
8,911|
|---|---|
||175,942|
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DocuSign Envelope ID: 971128FF-5B9A-4BD3-A049-63769DEE3D1A
## **Founders4Schools**
## **Notes to the Financial Statements - continued for the Year Ended 30 June 2021**
## **8. AUDITORS' REMUNERATION**
|Fees payable to the charity's auditors for the audit of the charity's financial
statements|2021
£
10,800|2020
£
10,300|
|---|---|---|
## **9. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 30 June 2021 nor for the period ended 30 June 2020.
## **Trustees' expenses**
In 2021 no trustees claimed expenses. (2020: One trustee reclaimed expenses on behalf of the Charity totalling £4,006. Expenses included travel, subsistence and accommodation).
## **10. STAFF COSTS**
|Wages and salaries
Social security costs
Pension|Year
ended
30.6.21
£
675,780
70,769
17,544
764,093|Year
ended
30.6.20
£
507,594
47,467
12,545|
|---|---|---|
|||567,606|
The total amount of employee benefits received by key management personnel is £274,535 (2020: £294,132). The charity considers its key management personnel comprise the trustees and senior management team.
1 employee (2020: 1) received emoluments in excess of £60,000 per annum:
|Salary band
£60,000 - £70,000
£70,000 - £80,000
£80,000 - £90,000
The average monthly number of employees during the year was as follows:
Developers
Partnerships and operations
Management
Administration
Fund-raising|2020
2020
no.
no.
-
1
-
-
1
-
2021
2020
as restated
5
1
5
7
2
2
1
1
2
2
15
13|
|---|---|
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DocuSign Envelope ID: 971128FF-5B9A-4BD3-A049-63769DEE3D1A
## **Founders4Schools**
## **Notes to the Financial Statements - continued for the Year Ended 30 June 2021**
|**11.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
Unrestricted
funds
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
1,732,349
**Charitable activities**
Educational support
550
Investment income
410
Other income
296
**Total**
1,733,605
**EXPENDITURE ON**
Raising funds
139,731
**Charitable activities**
Educational support
1,291,378
**Total**
1,431,109
**NET INCOME/(EXPENDITURE)**
302,496
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
718,746
**TOTAL FUNDS CARRIED FORWARD**
1,021,242|Restricted
funds
£
306,091
-
-
-
306,091
-
314,185
314,185
(8,094)
165,500
157,406|Total
funds
as restated
£
2,038,440
550
410
296|
|---|---|---|
|||2,039,696
139,731
1,605,563|
|||1,745,294|
|||294,402
884,246|
|||1,178,648|
## **12. PRIOR YEAR ADJUSTMENT**
The prior year adjustment represents software development costs previously capitalised as intangible assets that following a change in accounting policy have now been treated as expenses. The impact of this is a decrease in intangible assets of £668,674 being the cost of £741,124 less amortisation of £72,450, and a decrease in funds of £668,674.
The prior year adjustment of £198 represents the inclusion of the Digital boost Upskilling Ltd comparatives in the consolidated financial statements.
Page 21
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DocuSign Envelope ID: 971128FF-5B9A-4BD3-A049-63769DEE3D1A
## **Founders4Schools**
## **Notes to the Financial Statements - continued for the Year Ended 30 June 2021**
## **13. TANGIBLE FIXED ASSETS**
## **Group and charity**
|**Group and charity**||
|---|---|
||Computer|
||equipment|
||£|
|**COST**||
|At 1 July 2020|4,358|
|Additions|5,227|
|At 30 June 2021|9,585|
|**DEPRECIATION**||
|At 1 July 2020|1,036|
|Charge for year|2,033|
|At 30 June 2021|3,069|
|**NET BOOK VALUE**||
|At 30 June 2021|6,516|
|At 30 June 2020|3,322|
## **14. FIXED ASSET INVESTMENTS**
## **Group and charity**
|Shares in
group
Unlisted
undertakings
investments
£
£
**COST LESS IMPAIRMENT**
At 1 July 2020 and 30 June 2021
100
840,452
**NET BOOK VALUE**
At 30 June 2021
100
840,452
At 30 June 2020
100
840,452|Totals
£
840,552|
|---|---|
||840,552|
||840,552|
There were no investment assets outside the UK.
The net book value of shares in group undertakings consists of £100 investment representing shares held in Digital Boost Upskilling Ltd, formerly F4S Trading Ltd, (incorporated in the United Kingdom, company number 10187293) which is a wholly owned subsidiary.
In July 2019, the intellectual property relating to the Workfinder App, was transferred to a 3rd party company - Workfinder Newco Limited, now Workfinder Limited (Company number 12072557). In exchange for this transfer the charity has received a shareholding in Workfinder Limited. It is anticipated that this will reduce as Workfinder Limited will continue to raise further investment through the issue of share capital.
The net book value of the unlisted investments of £840,452 represents the deemed cost of developing the intellectual property of the Workfinder App of £988,215 less the value of long term loans that were transferred to Workfinder Limited as part of the transaction of £147,763.
The asset is recorded at cost less impairment as there is insufficient information to reliably value the asset at fair value at the balance sheet date.
As described in note 19 - Sherry Coutu, a Trustee of Founders4Schools, is also a director of Workfinder Limited and M Eschbach (managing director of Founders4Schools) is Chief Executive Officer of Workfinder Limited from 31 January 2022.
Page 22
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DocuSign Envelope ID: 971128FF-5B9A-4BD3-A049-63769DEE3D1A
## **Founders4Schools**
## **Notes to the Financial Statements - continued for the Year Ended 30 June 2021**
## **14. FIXED ASSET INVESTMENTS - continued**
A summary of the financial performance of the subsidiary is shown below:
|Turnover – external
– transfer
Total expenditure
Profit / (loss)
The assets and liabilities of Digital Boost Upskilling Ltd were:
Current assets
Current liabilities
Total net assets
Share capital and reserves|Year
ended
30.6.21
£
29,779
29,111
(52,263)
6,627
Year
ended
30.6.21
£
88,982
(82,453)
6,529
6,529|Year
ended
30.6.20
£
940,000
-
(940,098)
(98)
Year
ended
30.6.20
£
11,284
(11,382)
(98)
(98)|
|---|---|---|
## **15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|
Trade debtors
Prepayments and accrued income|**Group**
2021
2020
As restated
£
£
27,746
282,920
163,380
96,573
191,126
379,493|**Charity**
2021
£
27,746
163,371
191,117|
2020
As restated
£
282,920
96,573
379,493|
|---|---|---|---|
## **16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|
Other loans (see note 17)
Trade creditors
Social security and other taxes
Other creditors
Amounts due to Digital Boost Upskilling
Accruals and deferred income|**Group**
2021
2020
As restated
£
£
-
280,000
18,886
1,994
114,044
17,227
26,114
2,780
-
-
87,626
38,478
246,670
340,479|**Charity**
2021
£
-
14,193
78,599
4,048
1,771
62,853
161,464|
2020
As restated
£
280,000
1,994
17,227
2,682
-
38,478
340,381|
|---|---|---|---|
Included in accruals and deferred income is an amount of £46,000 received from Sherry Coutu which has been deferred as the donation has been given in relation to the period after 30 June 2021 (2020: £nil).
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DocuSign Envelope ID: 971128FF-5B9A-4BD3-A049-63769DEE3D1A
## **Founders4Schools**
## **Notes to the Financial Statements - continued for the Year Ended 30 June 2021**
## **17. LOANS**
## **Group and charity**
An analysis of the maturity of loans is given below:
|Amounts falling due within one year on demand:
Other loans|2021
2020
as restated
£
£
-
280,000|
|---|---|
The £280,000 loan repayable in one year was from a Trustee. The loan was repaid during the year end and the amount donated to the charity.
No interest was payable on either loan.
## **18. MOVEMENT IN FUNDS**
|**Unrestricted funds**
General fund
**Restricted funds**
Scottish Government
Teacher Training
Villiers Park Project
Drapers Project
Reece Project
London Borough of Hammersmith &
Fulham
Digital Boost
Sustainable Futures Programme
**FUNDS OF CHARITY**
Funds of subsidiary
**FUNDS OF GROUP**|At 1.7.20
£
1,689,916
(5,744)
89,944
55,318
10,531
5,485
3,857
(1,787)
-
157,604
1,847,520|Prior
year
adjustment
£
(668,674)
-
-
-
-
-
-
-
-
-
(668,674)|Net
movement
in funds
£
(75,188)
15,744
(49,944)
(39,318)
(10,531)
(5,485)
(3,857)
1,787
145,750
54,146
(21,042)|At
30.6.21
£
946,054
10,000
40,000
16,000
-
-
-
-
145,750|
|---|---|---|---|---|
|||||211,750|
|||||1,157,804|
||-
1,847,520|(198)
(668,872)|6,627
(14,415)|6,429|
|||||1,164,233|
Within the unrestricted fund balance at 30 June 2021 of £946,504, the level of free reserves is £99,086 which represents approximately two months of operating expenditure. Free reserves are the part of the charity’s unrestricted funds that are freely available to spend on any of the charity’s purposes. Free reserves are calculated by taking the total unrestricted funds and excluding tangible fixed assets and investments as these assets are not freely available to contribute towards working capital requirements.
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DocuSign Envelope ID: 971128FF-5B9A-4BD3-A049-63769DEE3D1A
## **Founders4Schools**
## **Notes to the Financial Statements - continued for the Year Ended 30 June 2021**
## **18. MOVEMENT IN FUNDS - continued**
Net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
**Restricted funds**
Scottish Government
Teacher Training
Villiers Park Project
Drapers Project
Reece Project
London Borough of Hammersmith &
Fulham
Digital Boost
Sustainable Futures Programme
Goldman Sachs
Maths 4 Girls
**TOTAL FOR CHARITY**
Subsidiary company
**FUNDS FOR GROUP**
**Comparatives for movement in funds**
**Unrestricted funds**
General fund
**Restricted funds**
Scottish Government
Teacher Training
Villiers Park Project
Drapers Project
Reece Project
London Borough of Hammersmith &
Fulham
Digital Boost
**FUNDS FOR CHARITY**
Funds of subsidiary
**FUNDS FOR GROUP**||Incoming
resources
£
312,359
206,050
-
-
-
5,025
10,700
575,653
145,750
23,000
13,500
979,678
1,292,037
29,779
1,321,816
At 1.7.19
£
718,746
67,500
98,000
-
-
-
-
-
165,500
884,246
-
884,246|Resources
expended
£
(387,547)
(190,306)
(49,944)
(39,318)
(10,531)
(10,510)
(14,557)
(573,866)
-
(23,000)
(13,500)
(925,532)
(1,313,079)
(23,152)
(1,336,231)
Net
movement
in funds
as restated
£
302,496
(73,244)
(8,056)
55,318
10,531
5,485
3,857
(1,787)
(7,896)
294,600
(198)
294,402|Movement
in funds
£
(75,188)
15,744
(49,944)
(39,318)
(10,531)
(5,485)
(3,857)
1,787
145,750
-
-
54,146
(21,042)
6,627
(14,415)
At
30.6.20
as restated
£
1,021,242
(5,744)
89,944
55,318
10,531
5,485
3,857
(1,787)
157,604
1,178,846
(198)
1,178,648|
|---|---|---|---|---|
||||||
||||||
||||||
||||||
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DocuSign Envelope ID: 971128FF-5B9A-4BD3-A049-63769DEE3D1A
## **Founders4Schools**
## **Notes to the Financial Statements - continued for the Year Ended 30 June 2021**
## **18. MOVEMENT IN FUNDS - continued**
|**Unrestricted funds**
General fund
**Restricted funds**
Scottish Government
Teacher Training
Villiers Park Project
Drapers Project
Reece Project
LSE Intern Placement
London Borough of Hammersmith &
Fulham
Expedia Project
Digital Boost
**TOTAL FOR CHARITY**
Subsidiary company
**TOTAL FOR GROUP**|Incoming
resources
as restated
£
1,733,605
86,539
98,075
80,000
15,000
10,000
1,477
5,000
10,000
-
306,091
2,039,696
-
2,039,696|Resources
expended
as restated
£
(1,431,109)
(159,783)
(106,131)
(24,682)
(4,469)
(4,515)
(1,477)
(1,143)
(10,000)
(1,787)
(313,987)
(1,745,096)
(198)
(1,745,294)|Movement
in funds
as restated
£
302,496
(73,244)
(8,056)
55,318
10,531
5,485
-
3,857
-
(1,787)
(7,896)
294,600
(198)
294,402|
|---|---|---|---|
The specific purposes for which the funds are to be applied are as follows:
Scottish Government To develop young person employability programmes throughout Scotland Teacher Training To develop an online course CPD accredited certification to support teacher’s careers education in schools Villiers Park Project To improve social mobility and develop skills for success for young people- Using Big Data to Improve the Employability of Young People Drapers Project To break down the barriers for young people who are unable to access opportunities which will improve their lives Reece Project To improve the Life Chances of Young in South Tyneside LSE Intern Placement To support an internship at F4S London Borough of Hammersmith & To help shape the next diverse generation and enable future economic Fulham growth for all Expedia Project To promote female leaders to young people Digital Boost To provide Digital Skills for SME’s Sustainable Futures Programme To accelerate opportunities for young people and make sustainable
To accelerate opportunities for young people and make sustainable careers an attractive place for them to focus their futures (in collaboration with WWF and Villiers Park Educational Trust and supported by Evolution Education Trust)
Maths4girls To assist educators in increasing the proportion of girls pursuing maths beyond GCSE Goldman Sachs Supporting software engineering at F4S
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DocuSign Envelope ID: 971128FF-5B9A-4BD3-A049-63769DEE3D1A
## **Founders4Schools**
## **Notes to the Financial Statements - continued for the Year Ended 30 June 2021**
## **19. RELATED PARTY DISCLOSURES**
The charity has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
During the year, the charity received a total of £158,829 (2020; £280,000) in donations either directly from S L Coutu (a Trustee) or from organisations in which S L Coutu is connected. At the year end £46,000 of the donations received have been deferred and will be recognised as income in the year ended 30 June 2022.
Included within other loans is an amount of £Nil (2020: £280,000) payable to S L Coutu. The 2020 loan was repaid to S L Coutu during the year end.
M Eschbach (managing director of Founders4Schools) is Chief Executive Officer of Workfinder Limited from 31 January 2022. As at 30 June 2021 Founders4Schools had a shareholding in Workfinder Limited valued at £840,451 as set out in note 14 to the financial statements. There is a commercial agreement under which the charity receives referral fees from Workfinder for every placement they facilitate. Fees payable by Workfinder to the charity were £380 (2020: £nil).
## **20. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES**
|**ACTIVITIES**||||
|---|---|---|---|
|||2021|2020|
||||as restated|
|||£|£|
|**Net (expenditure)/income for the reporting period (as per the**||||
|**Statement of Financial Activities)**||(14,415)|294,402|
|**Adjustments for:**||||
|Depreciation charges||2,033|402|
|Profit on disposal of fixed assets||-|(296)|
|Interest received||(79)|(410)|
|Prior year adjustment||(98)|198|
|Debtors relating to loans||(280,000)|280,000|
|Decrease/(increase) in debtors||188,367|(225,698)|
|Increase/(decrease) in creditors||186,290|(55,731)|
|**Net cash (used in)/provided by operations**||82,098|292,867|
|**ANALYSIS OF CHANGES IN NET FUNDS**||||
||At 1.7.20|Cash flow|At 30.6.21|
||£|£|£|
|**Net cash**||||
|Cash at bank and in hand|295,860|76,949|372,809|
||295,860|76,949|372,809|
|**Loan**||||
|Loans falling due within 1 year|(280,000)|280,000|-|
||(280,000)|280,000|-|
|**Total**|15,860|356,949|372,809|
## **21. ANALYSIS OF CHANGES IN NET FUNDS**
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