Front ine nnual report nd accounts 2021-22 Mlll **Frontline is England’s largest social work charity, and our vision is of a society where no child’s life chances are limited by their social or family circumstances.** **Everything we do aims to make life better for children who need a social worker, to help keep them safe from harm and to give them every possible chance to fulfil their potential.** **We do this by developing social workers’ practice, building their leadership skills and encouraging them to innovate and find new ways to improve outcomes for children and families.** **By doing this, and by coming together we hope we can achieve our mission of creating social change for children who don’t have a safe or stable home.** **Trustees’ annual report and accounts 2021–22 Contents** ## **Contents** **Welcome from the chair and chief executive officer, Lord Tony Hall and Mary Jackson 2 Trustees’ report 4** Why we're here **4** Strategic report **6** Key achievements and performance in 2021–22 **6** 2025 Strategy **6** 600+ people complete programmes annually **6** Develop excellent social work practice, leadership and innovation **8** Cultivate innovation in children’s social work **10** Support employees to achieve goals and ensure Frontline is sustainable **12** Plans for the future **13** Risks and uncertainties **16** Statement of trustees’ responsibilities **19** Reference and administrative details **20 Financial statements 25** Statement of financial activities **26** Balance sheet **27** Statement of cash flows **28** Notes to the financial statements **29 Thank you 38** **1** **Trustees’ annual report and accounts 2021–22 Welcome** ## **Welcome from the chair and chief executive officer** ## **Lord Tony Hall** I have been fortunate enough to be chair of Frontline since January 2022. And in fact, it was one stark statistic that drew my attention and made me want to get involved with this fantastic charity – every year over 700,000 children in England need the support of a social worker. These children often live in the toughest circumstances, often because their family is struggling with multiple challenges such as domestic abuse, poverty and mental ill-health. This means that these children don’t always get the love, care, and protection they deserve, and might experience abuse, neglect and trauma. This not only harms them in the here and now but, without help, can do long-term damage too. Out of a population of around 13 million children and young people in this country, that is a truly shocking figure. What I have seen and learnt over past months has only served to strengthen my conviction that children’s social work is a crucial but also phenomenally challenging role. I have seen the huge complexity that children’s social workers have to deal with, the incredibly difficult decisions they have to make concerning children’s lives, and the risk and uncertainty they have to live with. I have been impressed by their passion, their belief in social justice and their desire to make a positive difference for children and their families. Yet this essential work and the profession are too often badly represented in the media and under-recognised by the public. The rest of the board and I are committed to supporting Frontline to continue its work to change this. I’m delighted to welcome our new trustee and Frontline fellow, Theresa Jacob, who will bring invaluable insight to this work. I would like to thank Cordie Gwilym for her commitment over the past two years as her term as fellow trustee comes to an end. Michael Clark also stepped down from the board this year, having made a significant contribution to Frontline over the last nine years, so I want to extend my appreciation to him for his valuable support and commitment. We have collectively achieved so much over the past decade, but we know there is still so much more to be done. Why? Because of those 700,000 children who need help each year. I am excited to be with the charity on the next phase of its journey, as it continues to create social change for children by developing excellent social work practice, leadership and innovation. **2** ## **Mary Jackson** As England’s largest children’s social work charity, Frontline’s job is to help keep the 700,000 children whose families need the support of a social worker safe and well supported, and to give them every possible chance in life. We do this by developing excellent social work practice, training sector leaders and innovating to find better ways of working. Over the past year, we have heard daily from local authorities around the country that children and families need social work support more than ever before, due to setbacks from covid and increases in the cost of living. With the country facing an economic crisis, nearly a third of UK children are living in poverty. The skill and support of committed, talented social workers has never been more needed. I am proud of all of the work we have done over the past year to continue to support and champion both the profession of social work and all the skilled and resilient people who work with families day in, day out. We’ve continued to train people in the latest evidence-based practice and leadership skills through our programmes as well as through our Fellowship. With over 2,500 fellows nationally as of this year, we have worked hard to provide opportunities to mobilise this impressive and influential network, to spark ideas, share knowledge and build expertise. None of this would have been possible without the hard-working, skilled and dedicated team I have worked alongside, or without the continued support of those who make our work possible. I would like to thank the Department for Education, our other funders and local authority partners for all their backing to date. I am looking forward to the new partnerships we will undoubtedly make, particularly through the Pathways programme, along the next steps of Frontline’s journey as a charity. But there is much more to do. The social work sector is facing extreme challenges, and it is because of this landscape that we need to accelerate and intensify our work over the next few years – working more closely with local authorities to look for new ways to help create a more stable social work workforce and system. It is essential that we do so, if we are to help break the cycles of poverty and improve the life chances of vulnerable children. We have always been clear on our mission and direction at Frontline. As we enter our 10th anniversary year in 2023, the current climate only serves to make us more determined and focused than ever to bring about social change for children and families through excellent social work leadership and innovation. **3** **Trustees’ annual report and accounts 2021–22 Trustees’ report** ## **Trustees’ report** ## **Why we're here** Frontline is England’s largest social work charity. Everything we do aims to make life better for children whose family needs the support of a social worker, to help keep them safe from harm and to give them every possible chance to fulfil their potential. Through our social work training and leadership programmes, we recruit, develop and equip social workers with the skills they need to do, and be, the very best they can. We encourage and support our social workers to innovate and find new ways to improve outcomes for children and families. And we work with sector leader and local authorities to help create an environment that empowers social workers to do their best work, by reducing the challenges they face and improving the system they work in. We show people just how vital and transformational social workers can be. At its best, their work is lifechanging and ensures children get the protection and support they deserve. We’re determined to do everything we can to help them do this work today to help change the lives of children and families tomorrow. **4** **Trustees’ annual report and accounts 2021–22 Trustees’ report** ## **Strategic report** ## **Key achievements and performance in 2021–22** This report reflects activity and achievements from September 2021 to August 2022. ## **2025 strategy** Everyone in the charity has continued to work towards our 2025 strategy and goal of having 4,000 impactful fellows by 2025. We currently have over 2,500 fellows and are ahead of schedule in attaining this ambitious goal, primarily due to the successful launch of our exciting new Pathways programme. Given this rapid progress towards our goals we plan to revisit our strategic approach in early 2023, the halfway point. To aid this we have commissioned a system map to help us identify where we can focus and help children and families the most. ## **600+ people complete programmes annually** Through 2021–22 we continued to evolve our organisational design to stay future ready and achieve our charity goals by delivering 600+ people completing our programmes each year. We created the new role of chief social worker to lead the vision, strategy and standards for all our work, while consolidating all programmatic execution within the remit of our programmes director. This has allowed us to maintain a focus on core programmes against the challenging backdrop in the sector, while accelerating pace on our fast-growing areas of new work in leadership and innovation. It was an incredibly difficult year for our Frontline programme participants, as for all social workers, as they continued to experience the long-term impact of the pandemic. Children’s services across the country faced high numbers of social workers leaving the workforce or staff absence due to illness or wellbeing. Caseloads not only remained high in number, but also increased in complexity. To mitigate the impact this had on capacity we increased our provision for participant support services, including dedicated and specialist expertise, one-to-one coaching and mentoring and financial assistance to those most in need. We also listened and responded to participant feedback and adapted our programme to retain and embed the technological changes made during the pandemic. Our teaching days were adapted to be a combination of in-person and online, while all our digital teaching material was reviewed and refreshed for optimum accessibility. As a result, we were proud that over 380 of the 2021 Cohort completed year 1 of the Frontline programme, registering as newly qualified social workers and progressing to their assessed and supported year in employment. Meanwhile, demand for our participants remained very strong, as the partnerships team continued to strengthen our relationships with local authority partners and secured commitments to five-year collaboration agreements. For the third consecutive year we were **6** **Trustees’ annual report and accounts 2021–22 Trustees’ report** able to recruit and place over 400 new participants across 64 local authority partners to start the programme in 2022. Half of our local authority partners are Ofsted rated as inadequate or requires improvement, highlighting our commitment to supporting the sector and raising the quality of practice for children and families. Our Firstline and Headline programmes continued to deliver impactful leadership training to social work managers and leaders across the country. A further 160 team managers completed the Firstline programme. 83% of these reported that the programme supported their teams to deliver for children and families. The Headline programme was a tremendous success, with 23 heads of service completing the 10-month programme with 100% participant satisfaction. 2022 also marked a significant milestone for our programmes, as we were delighted to be awarded the new social work leadership development contract by the Department for Education. The Social Work Leadership Pathways programme (known as the Pathways programme) is a national practice leadership development programme, and will replace the Practice Supervisors Development Programme (PSDP), Firstline programme, Headline programme and Practice Leaders Development Programme (PLDP), consolidating all leadership development into one cohesive offer. Frontline is proud to be developing and delivering the Pathways programme to 2,000 leaders over the next two years in partnership with North Yorkshire County Council and What Works for Children’s Social Care, and with the support of Hertfordshire County Council. Everything we have learned so far from the delivery, strengths and impact of the Firstline and Headline programmes, as well as that of the PSDP and PLPD, has fed into the Pathways programme and will continue to do so. We are hugely excited by the prospects this opens up, not only to strengthen our ability to meet our charity goals but also to provide more strategic partnerships with local authorities where we can co-create and deliver workforce strategies across our portfolio of programmes for practice, leadership and innovation. ## **Develop excellent social work practice, leadership and innovation** At the heart of everything we do as a charity is an unwavering commitment to ensuring the best possible outcomes for children and families receiving social work support and intervention. Our belief that relational, systemic social work practice is crucial to ensuring excellent practice, leadership and innovation remains ever present at the core of all our programmes. We continue to build on our existing theories and models in a way that improves the participant experience and, ultimately, their social work practice and leadership. Our new, hybrid model of delivery has been designed by experts in curriculum design (our pedagogy leads) and content and delivery experts (curriculum and delivery staff), and marks a new and innovative approach. It has enabled us to re-imagine what we do while retaining our core focus and expertise in relational practice and leadership to deliver teaching that is more accessible, flexible and responsive to current research. Evidence of the benefits of this approach can be seen in the formal curriculum refresh we undertook for the Frontline programme, which was approved with no conditions by our validating academic partner, Lancaster University. We incorporated current social work research around risk, working with fathers’, understanding and identifying nonaccidental injury and sudden and unexpected infant death into the refresh of content, and used our pedagogy expertise to design a curriculum that is attuned to the evidence of how people learn and retain information. Members of our academic team have attended national conferences to share their research with the wider sector, as well as to learn from the experience of others. We currently have four staff completing their PhDs in areas relating to their roles within Frontline, enabling them to directly feed their learning and expertise back into our programmes. We have also continued to embed an approach and support mechanisms rooted in our commitment to anti-racism, working closely with our racial diversity and inclusion steering group. In addition to the increased support put in place for participants, we **8** created community spaces designed to support minoritised participants and give them a peersupported space, facilitated by academic staff, in which to explore the specific issues and barriers they may be facing. These are in place for racially minoritised, LGBTQ+ and neurodiverse participants. The Pathways programme mirrors this support package and encourages the creation of communities of practice. We have been working with our local authority partners to explore how they can implement similar spaces and create an environment which supports and promotes excellent, relationship-based social work practice. One way we did this was by holding two events, one in London and one in Leeds, focusing on diversity and inclusion. Hosting representatives from over 60 local authorities across the country, the events gave attendees the opportunity to hear about other local authorites’ journeys towards building a more inclusive workforce, learn how the new Pathways programme will support with this journey and network, build new connections and share experiences. We continue to put significant focus on how we can best support our social workers once they’ve completed our programmes. Whether by continuing to develop their practice and leadership skills, connect with each other or use their insights to find new ways to overcome challenges they and the sector face, it is always with the aim of making a positive difference for children and families. In order to offer more targeted support and drive our impact to create better outcomes for children and families, our chief social worker has created a more coherent structure for the Frontline Fellowship. Aligned to our three organisational pillars – practice, leadership and innovation – the Fellowship offer now includes a clear programme of activity linked to each, designed to amplify the impact of our fellows in the sector. We also launched a new series of our Social Work Coffee Breaks in which Frontline fellows share their research and talk through how this can be applied in practice. We’re pleased that this has been the most popular series to date, with multiple local authority partners requesting recordings and sharing with their wider teams. **9** **Trustees’ annual report and accounts 2021–22 Trustees’ report** ## **Cultivating innovation in children’s social work** This year we expanded the scope of our innovation work by delivering, for the first time, a new Innovation programme. The programme has been designed to give social workers the opportunity to turn their ideas to improve outcomes for children and families into a reality. 20 fellows participated in the first iteration of the programme, through which they were equipped with the skills to develop a wide variety of ideas for new innovations that have the potential to make a difference to children’s families and lead to systemic change. The programme was a great success. All participants learnt practical, action-based skills they can apply in their roles as social work leaders to encourage and drive innovative approaches to challenges faced. Frontline also awarded grant funding to three fellows on the programme to deliver early-stage pilot projects to implement their innovations. These three initiatives focused on improving nutrition in foster care, youth custody diversion and using arts to engage young people at risk outside of the family home. **10** **Trustees’ annual report and accounts 2021–22 Trustees’ report** ## **Support employees to achieve goals and ensure Frontline is sustainable** ## **Our people** We’ve continued to invest in our people to support them to do their best work and we’re pleased that this has had a positive impact. In an externally commissioned engagement survey, Frontline scored in the top percentile of over 600 organisations globally, with an improved score from last year. We have also evolved our culture over the past year to ensure it continues to reflect our current ways of working and sets an ambition of where we want to be. In collaboration with our trustees and the whole organisation, we have now distilled our culture and values into four core areas: - putting children first - making diversity and inclusion everyone’s business - working as one team and - making decisions based on common sense and evidence. These areas allow us to focus on what’s most important to us and help us work most effectively together. We appointed our new head of diversity and inclusion, to enhance our work in this area. They work with our senior leadership team and employeeled affinity groups to set ambitious targets across our key priority areas of anti-racism, disability inclusion and LGBTQ+ education on our programmes and internally with our colleagues. We also ran our second Flair survey (a people analytics survey that measures how anti-racist an organisation is) and are pleased that we’ve been able to reduce some racial inclusion barriers significantly, while identifying racial awareness as a significant improvement area for the next 12 months. We were also delighted to be shortlisted again for the PinkNews Third Sector Organisation award, recognising Frontline’s contributions to LGBTQ+ equality in the charity sector. **Frontline employee engagement survey This year's top scoring areas** People in my area do their best for Frontline **4.7/5** I believe in what Frontline is trying to achieve **4.7/5** I understand how my work contributes to the success of Frontline **4.7/5** My manager recognises and comments when I do good work **4.5/5** My manager is open to receiving feedback from me **4.5/5** **12** ## **Sustainability** We continue to be grateful for the funding from the Department for Education and local authority partners that enabled us to deliver our Frontline and Firstline programmes, and will enable us to deliver the Pathways programme from September 2022. As a charity, philanthropic support from trusts and foundations, businesses and individuals is vital to our work to create social change through the Fellowship. We were pleased that in 2021–22 the Garfield Weston Foundation renewed their support for Frontline by funding our new Step Forward programme for Frontline fellows (to be launched in 2023) that bridges the gap between the Frontline and Pathways programmes. We also welcomed two new trust funders and three new corporate supporters to our community of donors, while 10 supporters chose to run the Hackney Half Marathon to raise funds for Frontline. With our tenth anniversary approaching in 2023, we will use this upcoming milestone to grow our income and have a greater impact on children and families through our Fellowship and innovation work. ## **Plans for the future** Next year is Frontline’s 10-year anniversary and we are more determined and focused than ever, as we near this momentous moment, to bring about social change for children and families through excellent social work practice and leadership. We have achieved so much over the last 10 years, but there is still so much more to do. 2023 will bring a continuity of many areas of our work, as well as several new and very exciting ventures for us as a charity. The first of these is our inaugural Frontline Awards, which we are holding in May 2023. The awards aim to recognise excellent practice, leadership and innovation in children’s social work, and celebrate the fantastic work that so many social workers are doing to support almost 700,000 children and their families across England each year. The awards will also provide a platform to highlight and share the achievements of young people who have had the support of a social worker. In fact, young people are at the heart of the awards – they are helping us to shape the awards, will be involved in judging, hopefully will nominate social workers and will be involved at the event itself in London in May 2023. The awards will sit alongside other established award ceremonies in the sector, providing another opportunity to shine a spotlight on the amazing work that social workers do. We see this work so clearly through our fellows and, to develop the support and development we offer them, we will be embedding a new model oriented more closely to our three pillars of practice, leadership and innovation. This includes the launch of Step Forward. The Step Forward progamme is designed specifically for social workers in the early stages of their career, or who want to take the next step into a management position. It will boost their leadership skills and confidence, equip them with the skills to increase their impact, influence others in the workplace and prepare for a management role. It will also focus on providing support and training to social workers from under-represented groups to help them overcome the barriers they face. By 2025 our Fellowship will be made up of over 6,000 social workers – which is 20% of the children's social work workforce – thanks to our Pathways programme. We are hugely proud to have been awarded the Pathways programme by the Department for Education, which we will begin delivering in September 2022 and beyond. Through the programme, over two years, we will develop 2,000 sector leaders across the country with the skills to create the conditions and culture which enable good practice to thrive. **13** **Trustees’ annual report and accounts 2021–22 Trustees’ report** Individually these social workers have huge potential, but together this potential grows substantially. Through them, we have a fantastic opportunity to support the sector and have a very real impact on the families we are working to support. To do this, we need to continue to innovate and find new ways to do things, which is why we will be running a second cohort of our Innovation programme in the spring. This programme, alongside the Step Forward programme and all the other events, practice master-classes drawing on latest evidence, coaching, mentoring and peer support we offer for fellows, is 100% funded through our fundraised income. None of this would be possible without the support of our incredible community of funders and supporters. We will continue our drive to increase philanthropic funding throughout 2023, as well as introducing a diversification strategy to look at other sources of income. Alongside these new ventures, we remain as committed as ever to our Frontline programme, training the next cohort of over 400 new social workers. We will continue to embed our new and updated curriculum, working with experts across the sector and drawing on the latest evidence-based approaches. Our commitment to recruiting social workers from a diverse range of backgrounds will remain a core focus to ensure we are contributing to a workforce that is representative of the children and families it serves. This sits within our wider work and commitment to becoming a truly anti-racist and inclusive organisation. To support this work, we will be launching the next phase of our This is the Work campaign in early 2023. Both through this campaign, and throughout our tenth anniversary year, we want to really highlight the crucial work social workers do day in, day out and challenge stereotypes and negative perceptions of social work that are so often perpetuated by the media and society. This, as with all our work, will continue to have children and families at the heart as we strive to create social change through excellent social work practice, leadership and innovation. **14** ## **Financial review for the year** During the year Frontline generated a surplus of £1.0m in line with our plans. Our income for the year was £24.8m, representing growth of 5% on the previous period, with the principal source of income being our contract with central government for our Frontline programme. The growth in income reflects the increased number of participants on the Frontline programme. Our £2m of income from charitable foundations, individual donors and pro bono supporters has enabled us to further increase our impact. We have continued to provide coaching support for year 2 participants of the Frontline programme, as well as supporting our fellows to innovate and use their ideas to overcome challenges they, and the sector, face. Based on ongoing contracts for the Frontline programme, we have confirmed core programme income until at least the end of the 2023 Cohort and are in the process of bidding for the National Fast Track to Social Work programme from the 2024 Cohort onwards. Frontline had total expenditure of £23.8m in the period. 11% of charitable expenditure was spent on participant recruitment to the Frontline programme and 86% on participant leadership development, of which 39% was spent on participant bursaries. The bursaries are awarded to all participants at a fixed regional amount to support them in year 1 of the Frontline programme. Our support costs amounted to £2.9m, including £0.1m of pro bono support, and have been allocated as detailed in note 6 to the accounts. Our expenditure on staff costs was £8.4m. The average FTE of employees increased by 2% over the course of year, as a result of the growth in scale of the Frontline programme. At 31 August 2022, the charity had net current assets of £4.7m. In line with our cash management policy, surplus cash is invested in fixed rate deposits generating low risk returns. At 31 August 2022 the charity held total funds of £7.3m, represented by restricted, unrestricted funds and designated funds. ## **Restricted funds** Restricted funds are those that can only be used a specific purpose in accordance with the terms set by the donor. The charity retained £250k of restricted funds at the end of the year. ## **Unrestricted funds** Unrestricted funds are available to use for the purposes of the charity as the trustees see fit. The charity had free reserves of £4.7m at the end of the period. In addition, at 31 August 2022 the charity had designated funds of £2.3m and held £0.1m of funds as tangible fixed assets. ## **Reserves policy** The charity holds free reserves in order to: - provide working capital to finance day-to-day operations; - provide a safeguard against the risks of unforeseen liabilities and expenditure and shortfalls in income; and - cover the costs of wind-down of one or more programmes in the event of key funding being curtailed. The necessary level of free reserves is determined by conducting a risk-based assessment of factors likely to reduce income or increase expenditure, working capital requirements and the costs associated with programme wind-down. The trustees have therefore set a free reserves target of £4.8m, to be reviewed every 12 months. The charity’s free reserves at the end of the year were £4.7m which is 98% of the target. The charity has plans in place to increase free reserves to meet the target within the next year. During the period, the trustees have designated £1.5m of currently held reserves to support the 2024 National Fast Track to Social Work programme. Should the organisation be awarded the contract, income may be reduced should participant attrition be higher than forecast due to the contract’s payment by results mechanism. This designation of funds has been made to pro-actively mitigate any material risk. Having considered the level of our free reserves, cash flow forecasts and the level of designated funds to mitigate any reduction in income as a result of a payment by results mechanism, the trustees consider the charity to have sufficient resources to continue for the foreseeable future. The accounts have therefore been prepared on the basis that the charity is a going concern. **15** **Trustees’ annual report and accounts 2021–22 Trustees’ report** ## **Risks and uncertainties** Frontline’s trustees have overall responsibility for risk management but also recognise that for risks to be identified and managed successfully, there needs to be shared accountability throughout the organisation. The finance, audit and risk committee has been delegated the authority to review the risk management systems and make appropriate recommendations to the board. In line with our risk management policy, a risk register is maintained that captures the nature of the risk, its likelihood and impact, and mitigations that are to be put in place to reduce the likelihood and/or impact. The risk register is reviewed by the leadership team on a monthly basis and by the finance, audit and risk committee on a quarterly basis. Frontline has started to develop locally held risk registers for specific programmes and activities that feed into the overall risk management system. The key risks that we identified, and were managing and mitigating were: Impact of covid pandemic recovery and in particular the indirect risk of Local Authorities being under even greater pressure and demands and therefore the knock impact it has on the progression and experience of participants on all of our programmes. Mitigating actions taken include various programme adjustments, increased and more flexible support offer to local authorities and participants. ## **Cost of Living** Frontline has closely monitored the increase in cost across services and supplies and has used our internal cost controls to ensure we remain financially sound during this time. The increased costs facing participants on our programmes have been pronounced and as a result we have proactively increased hardship funding and awards to mitigate this challenge and enable participants on the Frontline programme to sustain. ## **Structure, governance and management** The Frontline Organisation is a registered charity and company limited by guarantee in England and Wales. It is governed by its Memorandum of Association and Articles of Association, last revised in November 2016. The charity’s trustees are also its members and the company directors. This annual report containing the information required by company law in a directors’ report. Any person who is willing to act as a trustee, and who would not be disqualified from acting, may be appointed by a majority decision of the trustees. Absolute Return for Kids (Ark) has the option to nominate up to two candidates for appointment as trustees. One position on the board is reserved for a Frontline fellow. The trustees take into account the skills and composition of the board when making such appointments. New trustees receive a comprehensive handbook that helps them to understand both the organisation and their own responsibilities. They also meet with key management personnel. The trustees are responsible for the governance and strategic direction of The Frontline Organisation and make decisions in accordance with the provisions of the Companies Act 2006 and Charities Act 2011. The board meets at least four times a year. Day-to-day management is delegated by the trustees to the chief executive and some matters are delegated to the board committees in line with their terms of reference. The board committees in operation during the period were: **16** **Trustees’ annual report and accounts 2021–22 Trustees’ report** ## **Finance, audit and risk committee** This committee meets on a quarterly basis and is responsible for reviewing annual and longer-term budgets, monitoring financial performance and reviewing the charity’s financial controls and risk management. ## **Remuneration committee** This committee meets at least once a year and considers the pay and remuneration of the senior leadership team and charity-wide pay increases. Decisions are taken in line with the charity’s pay and promotion policy and role bandings. ## **Programme quality committee** This committee meets at least three times a year and additionally as necessary. It is responsible for providing guidance and challenge on programme content and delivery, in order to improve programme quality. ## **Safeguarding, policies and complaints committee** This committee meets at least once a year and additionally as necessary. It is responsible for monitoring organisational policies and reviewing key policies that are not reserved for the board or another committee or delegated to the executive. It is responsible for monitoring complaints against Frontline and any instances of whistleblowing. It is responsible for monitoring Frontline’s compliance with its safeguarding policy and with applicable regulations. ## **Nominations committee** This committee meets once a year or more frequently if required. It evaluates the suitability of all proposed trustee nominations and determines and addresses any key strategic skills shortages of the board. We are proud to have such a skilled and diverse group of trustees, with three women and three coming from racialised minority ethnic backgrounds at the time of writing this report, on a board of ten. **18** ## **Statement of trustees’ responsibilities** The trustees, who are also directors of The Frontline Organisation for the purposes of company law, are responsible for preparing the trustees’ report (including the strategic report) and financial statements in accordance with applicable law and regulations. The law applicable to charities in England and Wales requires the trustees to prepare the annual report and financial statements for each financial period which give a true and fair view of the charity’s financial activities during the period and of its financial position at the end of the period. In preparing financial statements giving a true and fair view, the trustees should follow best practice and: - select suitable accounting policies and then apply them consistently; - make judgments 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 operation. and ensure that the financial statements comply with the Companies Act 2006. The trustees are responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are not aware of any relevant audit information that has not been disclosed to the charity’s auditors. The trustees have taken all the steps that ought to have been taken in order to make themselves aware of any relevant audit information and to establish that the charity’s auditors are aware of that information. The trustees are responsible for the maintenance and integrity of the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. The trustees’ report on pages 4–19, including the strategic report, is approved and signed on behalf of the board of trustees by: Lord Anthony hall (Apr 18, 2023 20:04 GMT+2) ## **Tony Hall** Lord Hall of Birkenhead CBE The trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the charity and which enable them to ascertain the financial position of the charity Trustee and Chair, Frontline Date: 18-Apr-2023 **19** **Trustees’ annual report and accounts 2021–22 Trustees’ report** ## **Reference and administrative details** **Registered name** The Frontline Organisation **Working name** Frontline **Charity number** 1163194 **Company number** 09605966 **Address of principal office and registered address** Coram Campus 41 Brunswick Square London WC1N 1AZ ## **Website** www.thefrontline.org.uk ## **Trustees** Tim Aldridge Baroness Hilary Camilla Cavendish _(resigned 3 November 2021)_ Michael Clark _(resigned 5 October 2022)_ Andrew Elvin Oliver Gayle Cordula Gwilym _(resigned 5 October 2022)_ Lord Tony Hall _(appointed 1 January 2022)_ Theresa Jacob _(appointed 5 October 2022)_ Sue Macmillan Jeremy Newman Jacob Rosenzweig Sukriti Sen Sir John Timpson **Chief Executive** Mary Jackson ## **Bankers** Lloyds Bank 95 George Street Croydon Surrey CR9 2NS ## **External Auditors** Mazars LLP 2nd Floor 6 Sutton Plaza Sutton Court Road Sutton Surrey SM1 4FS ## **Solicitors** Baker & McKenzie LLP 100 New Bridge Street London EC4V 6JA Bates Wells Braithwaite LLP 10 Queen Street Place London EC4R 1BE Herbert Smith Freehills LLP Exchange House Primrose Street London EC2A 2EG Kirkland & Ellis International LLP 30 St Mary Axe **20** 21 **Trustees’ annual report and accounts 2021–22 Independent auditor's report** ## **Independent auditor’s report** ## **Opinion** We have audited the financial statements of The Frontline Organisation (the ‘charity) for the year ended 31 August 2022 which comprise the Statement of financial activities, the Balance sheet, the 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, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the charity’s affairs as at 31 August 2022 and of its surplus for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the “Auditor’s responsibilities for the audit of the financial statements” section of our report. We are independent of the 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. may cast significant doubt on the 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the annual report which includes the strategic report and the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the strategic report and directors’ report included within the annual report has been prepared in accordance with applicable legal requirements. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, **22** ## **Matters on which we are required to report by exception** In light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the annual report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees’ remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of Trustees** As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company laws) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the 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. ## **Auditor’s responsibilities for the audit of the financial statements** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. Irregularities, including fraud, are instances of noncompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Based on our understanding of the charity and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation and anti-money laundering regulation. To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to: - Inquiring of management and, where appropriate, those charged with governance, as to whether the charity is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations; - Inspecting correspondence, if any, with relevant licensing or regulatory authorities; - Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and - Considering the risk of acts by the charity which were contrary to applicable laws and regulations, including fraud. **23** **Trustees’ annual report and accounts 2021–22 Independent auditor's report** We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as pension legislation and the Companies Act 2006. In addition, we evaluated the trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance and income recognition (which we pinpointed to the cut-off assertion), and significant one-off or unusual transactions. Our audit procedures in relation to fraud included but were not limited to: - Making enquiries of the trustees and management on whether they had knowledge of any actual, suspected or alleged fraud; ## **Use of the audit report** This report is made solely to the charity’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s members as a body for our audit work, for this report, or for the opinions we have formed. Nicola Wakefield (Apr 20, 2023 16:10 GMT+1) ## **Nicola Wakefield** (Senior Statutory Auditor) for and on behalf of Mazars LLP Chartered Accountants and Statutory Auditor 6 Sutton Plaza, Sutton Court Road, Sutton, Surrey, SM1 4FS Date: 20-Apr-2023 - Gaining an understanding of the internal controls established to mitigate risks related to fraud; - Discussing amongst the engagement team the risks of fraud; and - Addressing the risks of fraud through management override of controls by performing journal entry testing. There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of nondetection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. **24** Financial tatements -I,i//'/i 25 **Trustees’ annual report and accounts 2021–22 Financial statements** ## **Statement of financial activities for the year ended 31 August 2022** (incorporating an income and expenditure statement) ||**Note Unrestricted**|**Designated Restricted Total 2022 Total 2021**| |---|---|---| ||**general funds**|**funds funds**| ||**£’000**|**£’000 £’000 £’000**| |**Income from:**||| |Donations|2 999|- 986 1,985 1,222| |Charitable activities|4 22,758|- - 22,758 22,283| |Other|49|- - 49 6| |**Total income**|**23,806**|**- 986 24,792 23,511**| |**Expenditure on:**||| |Raising funds|5 -|- 445 445 228| |Charitable activities|5 21,753|1,330 291 23,374 21,860| |**Total expenditure**|**21,753**|**1,330 736 23,819 22,088**| |**Net income/(expenditure)**|**2,053**|**(1,330) 250 973 1,423**| |Transfer of funds|(1,500)|
1,500 - -| |**Net movement in funds**|**2,053**|**(1,330) 250 973 1,423**| |**Reconciliation of funds:**||| |Total funds brought forward|4,198|2,146 6,344 4,921| |**Total funds carried forward**|**6,251**|**816 250 7,317 6,344**| All activities relate to continuing activities. There are no other recognised gains and losses. The notes on pages 29–37 form part of these financial statements. **26** ## **Balance sheet as at 31 August 2022** The Frontline Organisation, Company number 09605966 **Note Total 2022 Total 2021 £’000 £’000 Fixed assets:** Tangible fixed assets 9 94 106 **Total fixed assets 94 106 Current assets:** Debtors 10 2,776 2,117 Cash at bank and at hand 7,416 6,264 **Total current assets 10,192 8,381 Liabilities:** Creditors: Amounts falling due within one year 11 (2,969) (2,143) Net current assets 7,223 6,238 Total assets less current liabilities 7,317 6,344 **Total net assets 7,317 6,344 The funds of the charity:** Restricted income funds 12 250 - Unrestricted general funds 12 6,251 4,198 Designated funds 12 816 2,146 **Total funds 7,317 6,344** The financial statements were approved by the trustees on and signed on their behalf by:18-Apr-2023 Lord Anthony hall (Apr 18, 2023 20:04 GMT+2) ## **Tony Hall** Lord Hall of Birkenhead, CBE Trustee and Chair, Frontline **27** **Trustees’ annual report and accounts 2021–22 Financial statements** ## **Statement of cash flows for the year ended 31 August 2022** **Note Total 2022 Total 2021 £’000 £’000 Net cash provided by/(used in) operating activities:** A **1,197 (1,110) Cash flows from investing activities:** Dividends, interest and rents from investments 19 5 Proceeds from the sale of property, plant and equipment – – Purchase of property, plant and equipment (64) (19) **Net cash (used in) investing activities (45) (14)** Change in cash and cash equivalents in the reporting period 1,152 (1,124) Cash and cash equivalents at the beginning of the reporting period 6,264 7,389 **Cash and cash equivalents at the end of the reporting period** B **7,416 6,264** ## **Notes to the statement of cash flows** ## **A: Reconciliation of net income/(expenditure) to net cash flow from operating activities** **Total 2022 Total 2021 £’000 £’000 Net income for the reporting period (as per the statement of financial activities) 973 1,423 Adjustments for:** Depreciation charges 76 65 Dividends, interest and rents from investments (19) (5) (Increase) in debtors (659) (1,186) Increase/(decrease) in creditors 826 (1,407) **Net cash provided by/(used in) operating activities 1,197 (1,110) B: Analysis of cash and cash equivalents Total 2022 Total 2021 £’000 £’000** Cash in hand 3,393 3,259 Notice deposits (less than 3 months) 4,023 3,005 **Total cash and cash equivalents 7,416 6,264** **28** ## **Notes to the financial statements for the year ended 31 August 2022** ## **1. Accounting policies** ## **Basis of preparation** The financial statements have been prepared under the historical cost convention and in accordance with the Companies Act 2006 and Charities Act 2011. The Financial Reporting Standard applicable in the UK and Republic of Ireland (‘FRS102’) and the Accounting and Reporting by Charities: Statement of Recommended Practice (‘Charities SORP (FRS 102)’)have been followed in the preparation of these financial statements. The Frontline Organisation meets the definition of a public benefit entity under FRS 102. The financial statements have been prepared on a going concern basis. The trustees assess whether the use of going concern is appropriate and have identified no material uncertainties related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. The trustees make this assessment in respect of a period of 12 months from the date of approval of the financial statements. ## **Income recognition** All income is recognised in the statement of financial activity as soon as the charity has entitlement to the income, the receipt is probable and the amount is quantifiable. Donations are recognised on receipt. Grant income is not recognised, and deferred when received in advance, where there are explicit or implied terms that require the funds to be spent in a future period or there are other unfulfilled conditions outside the control of the charity. For contracted income, entitlement is determined according to the stage of completion of the services in accordance with the rules set out in FRS 102. ## **Donations in kind** Donations in kind are included at the value to the charity to the extent that this can be quantified and are recognised when received. ## **Expenditure** Expenditure is recognised on an accruals basis. It has been classified under headings that aggregate all costs relating to that activity and include irrecoverable VAT. Shared costs are apportioned on a basis consistent with the use of resources. Support costs have been allocated to the raising of funds and charitable activities directly where applicable and then on the basis of costs of activities undertaken directly and staff numbers as set out in Note 6. They include the costs of all activities not directly engaged in charitable or fundraising activities. ## **Pension costs** The charity operates a defined contribution pension scheme for all eligible members of staff. Pension costs charged in the statement of financial activities represent the contributions payable by the charity in the year. ## **Foreign currencies** Transactions in foreign currencies are translated at rates prevailing at the date of the transaction. Any gains or losses arising on translations are reported as part of the transaction within the statement of financial activities and are not material; they are therefore not disclosed separately. ## **Leases** Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the statement of financial activities on a straight line basis over the lease term. **29** **Trustees’ annual report and accounts 2021–22 Financial statements** ## **Tangible fixed assets** All assets costing more than £500 and with an expected useful life exceeding one year are capitalised. Depreciation is charged on a straight line basis beginning in the month in which the asset is brought into use at the following annual rates: — Furniture and fittings 25% p.a. — Computer equipment 33.33% p.a. — Server and firewall 20% p.a. — Leasehold improvements dependent on the term of the relevant lease ## **Current investments** Surplus cash is held on fixed term deposit. Deposits maturing in more than three months are recognised at transaction price as current investments and treated as a basic financial asset. ## **Liabilities** Future liabilities are recognised when the charity has a legal or constructive financial obligation that can be reliably estimated and for which there is an expectation that payment will be made. ## **Fund accounting** Unrestricted funds represent monies which may be applied for any purpose within the charity’s objects. Designated funds represent monies which the charity’s trustees have designated for use on specific activities or for specific purposes. Restricted funds are funds received with specific conditions attached and are restricted for use on those activities only. ## **Volunteers** The charity has benefited from a small number of short term, general administrative volunteers in the head office but as it is not possible to accurately measure the value of their contribution, it has not been recognised in the statement of financial activities. ## **Tax** The charity is exempt from income and corporation tax on income and gains to the extent that they are applied for its charitable objects. ## **Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, and other short–term liquid investments with original maturities of three months of less. **30** ## **2. Donations** **Unrestricted Restricted Total 2022 Total 2021 £’000 £’000 £’000 £’000** Donations 113 - 113 111 Donations in kind 864 - 864 291 Government grants - 198 198 227 Grants from charitable bodies 22 788 810 593 **999 986 1,985 1,222** Frontline was in receipt of one government grant from the Department for Education during the year. This was for the Firstline programme. The income from this grant is included in government grants above. ## **3. Donations in kind** **Unrestricted Restricted Total 2022 Total 2021 £’000 £’000 £’000 £’000** Professional services 743 - 743 177 Software licences 43 - 43 33 Advertising solutions 31 - 31 43 Staff development 47 - 47 38 **864 - 864 2914** ## **4. Income from charitable activities** **Unrestricted Restricted Total 2022 Total 2021 £’000 £’000 £’000 £’000** Central government contracts 22,270 - 22,270 21,841 Local authority fees 488 - 488 442 **22,758 - 22,758 22,283** **31** **Trustees’ annual report and accounts 2021–22 Financial statements** ## **5. Expenditure** **Activities Bursary Support Total 2022 Total 2021 undertaken directly funding costs £’000 £’000 £’000 £’000 £’000** Raising funds 392 53 445 228 **392 53 445 228 Charitable activities** Participant recruitment 2,121 - 421 2,542 1,705 Participant leadership development 9,975 7,841 2,328 20,144 19,538 Fellows programme 577 - 111 688 617 **12,673 7,841 2,860 23,374 21,860 Total expenditure 13,064 7,841 2,913 23,819 22,088** Bursary funding represents the payment of bursaries to participants in Year 1 of the Frontline programme. All bursaries are given to individuals and no support costs have been allocated to them. Expenditure on charitable activities includes £616k (2021: £288k) of donations in kind. An additional £247k was received to support Raising Funds in the period (2021: £3k). ## **6. Support and governance costs** **Basis of allocation Total 2022 Total 2021 £’000 £’000 Support costs** Financial management Activities undertaken directly 420 361 Human resources Employee headcount 539 511 Information systems and technology Permanent staff FTE 439 497 Premises and overheads Permanent staff FTE 454 415 Operations and management Activities undertaken directly 309 202 Professional fees, governance & compliance Activities undertaken directly 252 273 External relations Activities undertaken directly 500 219 **2,913 2,478 Governance costs** External auditors' remuneration – audit services 15 14 Management liability insurance 4 2 **Total 19 16** Support costs include £107k (2021: £131k) of donations in kind. **32** ## **7. Net income** **Total 2022 Total 2021 £’000 £’000** This is stated after charging: Auditors' remuneration – audit 15 14 Depreciation 76 65 Operating leases 314 300 **8. Staff costs A. Staff costs Total 2022 Total 2021 £’000 £’000** Wages and salaries 6,859 6,209 Pension 529 494 Social security 694 616 Termination payments 33 63 Agency & seconded staff 307 193 Other staff benefit costs - - **8,422 7,575** The total amount of termination payments for the period was £33,329 (2021: £62,734). There are no outstanding payments at the balance sheet date. ## **B. Average headcount** The average monthly number of employees during the period, including agency staff and secondees, was: ||**2022 2021**| |---|---| |**Headcount**|**FTE Headcount FTE**| |Average headcount – full time 136|136 131 131| |Average headcount – part time 58|18 69 19| |**194**|**154 200 150**| ## **C. Higher paid employees** Number of employees whose emoluments for the period fall: ||**2022 2021**| |---|---| |Between £60,000 and £69,999
|5 6| |Between £70,000 and £79,999
|2 2| |Between £80,000 and £89,999
|2 1| |Between £90,000 and £99,999
|1 1| |Between £100,000 and £109,999
|1 –| **33** **Trustees’ annual report and accounts 2021–22 Financial statements** Total pension contributions made by Frontline into a defined contribution scheme for the higher paid employees during the period were £72,222 (2021: £69,264). ## **D. Key management personnel** The key management personnel of the charity consist of the trustees and Senior Leadership team. The total emoluments paid to the Senior Leadership team in the period were £537,832 (2021: £585,231). None of the trustees have been paid any remuneration or received any other benefits from the charity during the period ended 31 August 2022. 1 trustee had travel expenses of £508 met by the charity during the period (2021: none). ## **9. Tangible fixed assets** **Fixtures, fittings Leasehold Total and equipment £’000 £’000 £’000 Cost** At 1 September 2021 258 85 343 Additions 64 - 64 **At 31 August 2022 322 85 407 Depreciation** At 1 September 2021 193 44 237 Depreciation 59 17 76 **At 31 August 2022 252 61 313** Net book value at 1 September 2021 65 41 106 Net book value at 31 August 2022 70 24 94 **10. Debtors 2022 2021 £’000 £’000** Trade debtors 2,048 1,183 Accrued income 446 697 Prepayments 272 217 Other debtors 10 20 **2,776 2,117** **34** ## **11. Creditors** ## **A. Creditors** **2022 2021 £’000 £’000 Amounts falling due within one year** Trade Creditors 362 176 Deferred Income 1,181 858 Accruals 1,151 782 Taxation and social security 275 274 Other creditors - 53 **2,969 2,143 B. Deferred income 2022 2021 £’000 £’000** At 1 September 2021 858 2,140 Deferred in the year 1,181 850 Released to income in the SOFA (858) (2,132) **At 31 August 2022 1,181 858** Deferred income has arisen from a combination of — advance receipt of funds for the 2022 Cohort bursary payments relating to the quarter beginning September 2022; and — local authority income for cohorts of the Firstline and Headline programmes ending in Autumn 2022. **12. Movement in funds Balance at Income Expenditure Transfer Balance at 1 September 31 August 2021 2022 £’000 £’000 £’000 £’000 £’000 Restricted funds** Firstline programme - 198 (198) - - Transformation activities - 788 (538) - 250 - 986 (736) - 250 **Unrestricted funds** Unrestricted general funds 4,198 23,806 (21,753) (1,500) 4,751 Designated funds – Cohort 2024 onwards - - - 1,500 1,500 Designated funds – transformation 1,679 - (1,009) 670 Designated funds – improvement projects 467 - (321) 146 **Total funds 6,344 24,792 (23,819) - 7,317** **35** **Trustees’ annual report and accounts 2021–22 Financial statements** ## **Firstline programme** Frontline was in receipt of a grant from the Department for Education for delivery of the Firstline programme until 31st March 2022. ## **Transformation activities** Support was received from multiple funders to continue to enable Frontline to provide participants with a leadership coach in the second year of the programme, run additional participant events, establish the Frontline Fellowship, raise the status of the profession through methods including communications and public affairs work, fundraise for future enhancement activities and continue the independent evaluation of the Frontline programme. ## **Designated funds – Transformation activities** Funds have been designated for ‘transformation activities’ included in Frontline’s 2020–25 strategic plan. These activities include development of new leadership programmes and accelerating the impact of our fellows by backing their promising ideas to improve safety and stability for children. ## **Designated funds – Improvement projects** Funds have been designated for investment in one–off projects designed to improve the long–term quality and effectiveness of Frontline and its programmes. Examples of such projects are development of Frontline’s management information systems and development of Frontline’s approach to pedagogy. ## **Designated funds – Cohort 2024 onwards** During the period, the trustees have designated £1.5m of currently held reserves to support the 2024 National Fast Track to Social Work programme. Should the organisation be awarded the contract, income may be reduced should participant attrition be higher than forecast due to the contract’s payment by results mechanism. This designation of funds has been made to pro-actively mitigate any material risk. ## **13. Analysis of net assets between funds** **Unrestricted Designated Restricted Total 2022 Total 2021 general funds funds funds £’000 £’000 £’000 £’000 £’000** Fixed assets 94 - - 94 106 Net current assets 6,157 816 250 7,223 6,238 **Total 6,251 816 250 7,317 6,344** ## **14. Operating leases** At 31 August 2022, Frontline has commitments under non–cancellable operating leases as follows: **2022 2021 £’000 £’000 Leases which expire** Within one year 215 237 **215 237** **36** ## **15. Related party transactions** Ark and Ark UK Programmes have a trustee in common with The Frontline Organisation, but the trustee does not have a controlling interest in any of the charities. During the period, £3,570 was paid to Ark in return for support relating to Fellowship innovation. During the period, Frontline received £679k (2021: £77k) of pro bono consultancy support from The Boston Consulting Group. One of Frontline’s trustees is a senior partner and managing director of The Boston Consulting Group. During the period, £4,070 was paid to The Boston Consulting Group for the secondment of one member of staff (2021: £34k); the rate paid to Boston Consulting Group was comparable to the salary Frontline would have paid if the individual had been recruited from the open market. During the period, Frontline paid £9,924 to Coco Operative Ltd in return for delivering participant leadership sessions on the Firstline programme and associated travel costs. During the period, three trustees (2021: three) were employed by Local Authorities with which Frontline partnered for the purpose of delivering either the Frontline programme or Firstline programme. All related transactions with these Local Authorities were carried out at arm’s length. ## **16. Charity information** The Frontline Organisation is a registered charity and a company limited by guarantee (England & Wales) with registered office 41 Brunswick Square, London, WC1N 1AZ. ## **17. Comparative statement of financial activities for the period ended 31 August 2021** **Note Unrestricted Designated Restricted Total 2020 general funds funds funds £’000 £’000 £’000 Income from:** Donations 2 804 – 1,049 1,853 Charitable activities 4 20,899 – – 20,899 Other 7 – – 7 **Total income 21,710 1,049 22,759 Expenditure on:** Raising funds 5 – – 245 245 Charitable activities 5 19,237 – 1,226 20,463 **Total expenditure 19,237 1,471 20,708 Net income 2,473 – (422) 2,051** Transfer of funds (1,700) 1,700 – – **Net movement in funds 773 1,700 (422) 2,051 Reconciliation of funds:** Total funds brought forward 2,198 – 672 2,870 **Total funds carried forward 2,971 1,700 250 4,921** **37** **Trustees’ annual report and accounts 2021–2022 Thank you** ## **Thank you** **Our work is made possible with the support of the Department for Education and our incredible community of philanthropic funders who donate funds, time and expertise to Frontline to support our mission of creating social change for children who do not have a safe or stable home.** **We would like to thank the following organisations and their staff, for their support and friendship this year, as well as the growing and essential collection of individual donors who support our work.** AKO Foundation Andrew & Belinda Scott Charitable Trust Arnold Clark Community Fund Credit Suisse EMEA Foundation Duncan Ford Garfield Weston Foundation Gerson Lehrman Group (GLG) Hadley Trust M&G plc Community Fund Mayden Foundation The Portal Trust Porticus The Rangoonwala Foundation Scrap Car Comparison Worshipful Company of Builder's Merchants **38** If you have any questions about our work, please get in touch: thefrontline.org.uk/contact-us - FrontlineChangingLives - FrontlineSW - Frontline – Changing Lives - Frontline_SW Charity number: 1163194 Company number: 09605966 Coram Campus 41 Brunswick Square London WC1N 1AZ