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2023-03-31-accounts

Charity Registration No. 1164818

Company Registration No. 7998339 (England and Wales)

FUSION 21 FOUNDATION

COMPANY LIMITED BY GUARANTEE CONSOLIDATED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Ms A Astbury
Mr T Cahill
Mr E Livesey
Mr C E C Murray
Ms C Baxter
Ms A Taylor
Secretary Mr M Chadwick
Charity number 1164818
Company number 7998339
Registered office Unit 2
Puma Court
Kings Business Park
Knowsley
Merseyside
L34 1PJ
Auditor BWM
Tempest
Suite 5.1
12 Tithebarn Street
Liverpool
L2 2DT
Bankers Barclays Bank PLC
Lord Street
Liverpool
L2 1TD

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE CONTENTS

Page
Trustees report (including chair and chief executive statement) 1 - 45
Statement of trustees' responsibilities 46
Independent auditor's report 47 - 49
Statement of financial activities 50
Balance sheet 51
Statement of cash flows 53
Notes to the financial statements 54 - 80

Fusion 21 Foundation - Trustee Report

Trustee Report

The trustees present their report and financial statements for the year ended 31 March 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Providers of Procurement with Purpose

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Proud Providers of Procurement with Purpose

Fusion 21 Foundation - Trustee Report

Our purpose

“To be an organisation for positive change.”

Everything we do at Fusion21 is designed to support for purpose and drive for creating a positive change. We work with like-minded public sector organisations, partners, and suppliers to build up communities and motivate sustainable change where it’s needed most. Our team of procurement, social value and community investment specialists is driven by a passion to make a difference.

Consequently, our members benefit from our specialist knowledge and determination to help them procure more efficiently and meaningfully.

Our vision and mission

OUR VISON impact

Social impact | collaborative communities | social business | smart thinking | sustainability | thought leadership

OUR MISSION Helping members to buy smarter, championing social value and sustainability

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Fusion 21 Foundation - Trustee Report

Welcome

from our Chair and Chief Executive

It is our privilege to introduce the latest trustee report and to celebrate the achievements of our organisation over the past year.

2022-2023 saw the organisation celebrate its 20th anniversary, and it was fitting that we also surpassed 1,000 members this year. We continue to welcome new members from social housing, as well as members from education, health and other areas of the public sector.

The Foundation continued to go from strength to strength, with over £400,000 committed to supporting innovation and transformative thinking in communities. We are enormously proud of the depth and breadth of impact created by working in collaboration with key partners and members, a hallmark of the Foundation’s approach.

Our social enterprise, Fusion21 Ltd, continued to support our members with procurement and social value services. We were particularly delighted to partner with the Social Investment Business (SIB) to support the delivery of the Youth Investment Fund (YIF) to maximise social value and benefits through a government funding scheme to create, expand and improve youth facilities across the country.

We are excited to be celebrating 21 years of Fusion21 next year. This anniversary celebration will be an opportunity to recognise the achievements of Fusion21 over the past 21 years with our members, contractors and supply chain partners and our people.

Chris Murray, Group Chair

Dave Neilson, Group Chief Executive

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Our
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2022 - 2023

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£ 1024
£771,000 members in total
in social
investments
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233 young people reported an improved control of their life as a result of Foundation funding

over 100 apprenticeships created and over 60 sustained

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200
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over
1,000
procurement projects
supported
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young people completed a health and social care programme, part funded by the Foundation

Social value headlines Procurement headlines Fusion21 Foundation

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Fusion 21 Foundation - Trustee Report

over 1,000 over £375,000 people benefitted from training opportunities donated by suppliers and 555 volunteering days provided

£ £377m contract spend over £400,000 awarded in grant funding

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360 families including
568 children under
5 supported at baby food
banks, funded by the
Foundation
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£ £30m efficiencies 700 jobs created and 800 jobs sustained

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Foundation Trustee Report

Fusion21

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in review

Fusion 21 Foundation - Trustee Foundation Trustee ReportReport

1. Achievements and performance: grant funding

This year, the Foundation went from strength to strength, increasing its grant investments and pipeline for future years. We continued to raise the profile of the Fusion21 Foundation by developing the website content to make our work more visible and to showcase the great feedback we’ve had from our grantees and strategic partners. In addition, we took an active role in webinars and conferences to showcase our impact as a funder and shape thinking in our funding priority areas.

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We spent £415,464 in grant funding to support projects across the country...

• Financial inclusion and resilience

£415,464 invested

Our grantees were particularly focused on responding to the growing challenges around the cost of living and its impact on communities and their health

41% of spend was attributed to projects that were commissioned this year.

The total value of the (multi-year) projects that were newly commissioned this year is £585,766 .

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SPEND BY PRIORITY
THEME
19%
Employment and skills
39%
Health and wellbeing
Financial inclusion and resilience
42%
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SPEND BY REGION

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13%
North
West
5% 2%
51% 15% 14% West East
England National London Mids Mids
National England North West East Mids West Mids London
£62,000 £213,253 £52,494 £10,000 £20,628 £57,090
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Fusion 21 Foundation - Trustee Report

Our funding generated a range of outcomes across the priority themes including:

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233
young people
young people
reporting better
reporting improved
control of their lives
mental health
76
young people offered
jobs in health
and social care
2
1
national surveys on
online Mental Health
food insecurity
conducted and Benefits Handbook
launched
178
new young tenants reporting an
improvement in mental health,
confidence and loneliness as a
result of accessing the Hometruths
House programme to help them
effectively navigate and sustain
their first tenancy
360 200
families (with 568 children
under 5 years old) supported
to access a baby bank,
receiving clothes, toys young people completing
and equipment health and social care
employability programs
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Impactful long-term partnerships between four community food organisations and businesses were established in the East Midlands to improve the sustainability of the community groups and increase their ability to tackle the root causes of food poverty.

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2. Health and wellbeing

The long-standing effects of the Covid-19 pandemic and the economic climate continued to impact mental health and wellbeing across the country.

Young people

We made over £145,000 available to New Horizon Youth Centre (NHYC) to help fund a new £1 million project aimed at giving 16–24 year olds across London access to a wide range of mental health support over the next three years.

Led by a Head of Health and assisted by Clinical Practitioners, a Nurse and Occupational Health and Communications workers, the Wellbeing Project ensures a trauma-informed approach is implemented across all New Horizon services. This means they are designed to understand and address the psychological and emotional needs of young people experiencing homelessness. Many have suffered trauma and additional challenges from exposure to the criminal justice system, serious youth violence or going through the care system.

NHYC have been working with young homeless people across London for over 50 years. Through their day centre, outreach, and remote services they support young people to overcome the barriers life has put in their way and solve their homelessness for good. Their wider service offer includes expert help in safety, youth work and, housing.

Starting in October 2022, NHYC’s Wellbeing Project was launched in response to data that found 39 percent of people who came to the charity needed support with their mental health, many having experienced trauma in their lives.

“We’re incredibly thankful for the unwavering support and generous funding from Fusion21. Their contribution has enabled us to launch a holistic well-being initiative that will revolutionise our trauma responsive healthcare.

With these newfound resources, we can now reach young people who have been let down by other services and provide them with the support they desperately need and deserve. Thank you, Fusion21, for giving us this opportunity to make a tangible impact and for your ongoing support in our mission.”

The Wellbeing Project, based in NHYC’s day centre in King’s Cross as well as remotely, offers everything from counselling and psychotherapy to support with health provider registration. It also includes specialist provision for young people with speech, language, and communication needs.

Charly Dale, NHYC’s Head of Health

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Older people

We have funded a partnership with HACT, the National Lottery Community Fund, Clarion Futures and South Yorkshire Housing to build an ‘Age Friendly’ Social Housing Programme, aiming to improve outcomes for older people in communities, including social isolation and loneliness. Since its inception, a number of other social landlords have joined the partnership, bringing the combined partnership to 23.

“We believe that this programme will lead to significant changes in the way that social housing providers develop and support Age Friendly

communities across the UK. With 44 percent of social housing residents over the age of 55, there is the opportunity to improve the lives of thousands of older people through this pilot and as a result of the learning and recommendations that will be shared across the sector, through HACT’s Centre for Excellence in Community Investment Age Friendly Network.”

The project launched in August 2022 and will run for two years

HACT Head of Communities, Dr. Robert Sugden

to build local partnerships in three areas across the UK (with aspirations to deliver in an additional three areas in the second year of the programme), connecting social housing to local networks, partners and communities who are committed to building better places and services for our ageing populations.

The programme is facilitated by ‘on-theground’ project coordinators in each place who are working closely with, and between, housing associations and partners in the following three areas to support them to understand and embed the principles of Age Friendly Communities in their work and places, and to support local people to access, and potentially deliver, a wide range of services for over 55s:

HACT hopes this approach to joined-up working between housing associations will become a blueprint for collaborative community investment, demonstrating the incredible impact social landlords can have as local investors in people and places when they pool energies and resources

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3. Financial inclusion and resilience

Our biggest area of focus this year has been mitigating the huge impact of the cost-ofliving crisis.

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“People struggling with their mental health need to know they can at least cover their bills but the benefits system can be opaque and overwhelming. Without the right support, vulnerable people can fall through the cracks. Our guide offers expert back-up for those who are supporting someone so that they can access the money they are entitled to and live with dignity.”

Alison Garnham, Chief Executive at CPAG

Welfare rights

Following the commission of a report with Child Poverty Action Group (CPAG) last year, which highlighted the issues people with mental health problems face when interacting with the universal credit system, we co-funded a free online resource with The Riverside Group and the Northwick Trust.

CPAG collaborated with mental health charity Mind to produce the Mental Health and Benefits Handbook which provides practical advice and guidance for the different stages of benefit claims and health assessments and the problems that might be encountered during the process.

The comprehensive guide is informed by the lived experience of people with mental health needs and the social security system. The book is aimed at benefits advisers and is also helpful for other professionals such as social workers and housing officers, or carers and families. Over 2000 users accessed the guide in the first month alone.

“Each year there are hundreds of thousands of claims for disability benefits like personal independence payment, with mental health being

the single most common reason for claiming. Those benefits mean that people who are unwell can get the security they need to focus on moving forward with their lives, to build connections with other people and to live more independently. Mind is proud to have worked with CPAG in the development of this essential resource, and hope that it can play a part in helping those of us with mental health problems get support and respect from the benefits system.”

Stephen Buckley, Head of Information at Mind

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Proud Providers of Procurement with Purpose

00@ NEWS Cost of living.. Rise in Britons saying they skip meals or go hungry g Il•y 5(X) lknur l Jk8 • p•opl• iDtbe UK ￿ dnJ99lln9 10 •floTdto W Illets •we¥y d8y •5 wc•s rise. Srphscrlbe Nl.'L (wi¥icf Whit¢ muslYmn$ F#inr* twwn C4Kthd 18D Gu(Irdi(In I'r¢¢ rJn¥¢ eg¥> ts Lhetse c1￿¢¢ne￿al nr4will Untssel I kilo 5W¢rt I WW¢ milk I I More than 2m adults in UK cannotafford to eateveryday, surveyfinds Sor .{ 15

Food

insecurity

The Food Foundation conducted another two food insecurity surveys this year, thanks to our support. The survey published in May received over 400 pieces of press coverage within the first 24 hours across the UK and abroad.

Our funding with Business in the Community (BITC) concluded this year. We funded BITC to support five community organisations in the East Midlands through the Tackling Food Poverty project, to develop activity around food pantries, community cafes and community growing. The project focused on two counties; Nottingham and Northamptonshire. These were chosen because of the unemployment rates in these areas and the number of children in poverty. One in four children under 16

are living in poverty in the East Midlands. The project aimed to tackle food insecurity in the region by partnering businesses with charitable organisations to share their specialist skills to support the sustainability of local community food organisations, including help with marketing and business planning.

Proud Providers of Procurement with Purpose

Business support included:

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As part of the project BITC developed a report to highlight good practice examples of the different ways community groups and other organisations are tackling food insecurity and supporting people to be less reliant on food banks. We have shared this report widely with our colleagues in the housing and VCSE sectors.

Fusion 21 Foundation - Trustee Report

Furniture poverty

Furniture Poverty is an ongoing issue across communities – including those living in social housing, where around 50% of tenants are already living in poverty and unable to afford basic furniture or white goods. This year, we collaborated with End Furniture Poverty, funding them to produce their latest research report ‘A Blueprint for Furniture Provision in Social Housing’ which was launched via a webinar in November.

End Furniture Poverty also wrote a series of blogs to support the publication of the report, for Inside Housing, Homes for Cathy, and CIH.

The report provides a template business case for furnished tenancies and guidance for social landlords. It also outlines the benefits if more were to be done to increase the number of furnished rented properties available.

Claire Donovan, Head of Policy, Research and Campaigns for End Furniture Poverty:

“We have been supporting social landlords who are interested in furnished tenancies for several years, helping them to prepare business cases and also raising awareness of the huge benefits furnished tenancies can offer both tenants and landlords.

“Thanks to funding from the Fusion21 Foundation, we have been able to take this to a new level by compiling this detailed guide, speaking to dozens of social landlords and putting together a compelling case for every social landlord to provide essential furniture to their tenants.”

End Furniture Poverty continue to meet regularly with social landlords across the UK who are recognising that an increasing number of tenants need support with furniture and the Blueprint has always been their first port of call, helping them to hit the ground running.

Following the launch of the report, we were approached by our Fusion21 member, Curo, to match fund a furnished tenancy pilot, targeting single people and care leavers moving from temporary accommodation or homelessness into general needs. The project aims to deliver furnished tenancies to around 20-25 customers over 12 months in Bath and North East Somerset. We look forward to reporting the impact this has had on individual tenants in our next annual report.

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Fusion 21 Foundation - Trustee Report

Fuel poverty

Clarion has launched a responsive retrofit pilot project in a co-ordinated response to the challenges their residents are facing with fuel poverty. They stress that to have meaningful impact on fuel poverty, the underlying issues causing this must be addressed: stock condition, poverty, and behaviour.

The pilot project will enable Clarion to systematically address energy behaviours and poverty alongside improving the efficiency of the property and ensuring any repairs that may impact on efficiency are completed. Working under the fuel poverty and sustainability agendas, it brings together the Asset Management, Repairs and Money Guidance teams who will work together to maximise the savings that can be made on household bills. The project will provide interim solutions to household efficiency, minimising fuel bills for those who need it most, until large scale, planned retrofit happens.

Fusion21 Foundation has funded National Energy Action (NEA) to independently evaluate the project in order to influence the long-term implementation of Clarion’s Fuel Poverty Strategy. Once complete, the final report will summarise key impacts of the programme, including recommendations for improvement (should investment be secured to extend the programme) identify trends and outcomes for residents on their energy consumption and home comfort, including considering impact on health and wellbeing.

The evaluation will be used as a model of good practice throughout the wider Housing Associations network. NEA will share the findings with over 400 members and wider campaigning activities as a model that can be applied to influence government for real change when tackling fuel poverty throughout housing stock.

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Children and families

We were delighted to be approached by a Fusion21 member, The Guinness Partnership, to fund a partnership between them, Sal’s Shoes, Boiler House and Little Village to open a new family centre in Hackney, East London.

About 48 percent of children in Hackney live in poverty according to figures compiled by Trust for London, way above the London average. It also has one of the highest rates of households in temporary accommodation, with 28 households per 1,000.

Provided by The Guinness Partnership, the formerly unused building off Harrington Hill in Lower Clapton, was refurbished to become a welcoming and vibrant family centre, providing baby bank services to help local families with young children.

Sal’s Shoes, which provides good quality second-hand shoes and other essentials to those who need them.

Alistair Smyth, The Guinness Partnership’s Director of External Affairs and Social Investment:

“This much-needed family centre will help more and more families who are struggling financially right now. They’re faced with really difficult choices about what to spend and how, or if, they can make money go further. And we’re talking about essentials here; housing, food, energy, clothes, the basics all families need. The cost of living crisis means the Baby Bank, Sal’s Shoes and all other services provided at The Boiler House are likely to be needed more than ever, and by even more families over coming weeks and months.”

The baby bank operates like a food bank but supplies children’s equipment and provides essentials for babies and young children, including; clothes, shoes, cots, nappies, toiletries, buggies, and toys to families needing extra support. It helps local families with children aged up to five. Parents who visit are also able to find details of where to find further support.

Since its opening, the centre has supported 360 families, including 568 children under five.

The centre is run by three local charities: Little Village which runs a network of baby banks across London; Boiler House Spaces which manages community spaces in Hackney; and

Anna Iskander-Reynolds, CEO of Boiler House:

“The pandemic highlighted existing poverty, and now as the cost of living increases, we’re seeing greater support needs. It’s hard enough being a parent or carer without the financial burdens and impossible choices you have to make in order to survive the week. We want to support families through such times and ease their burden. The Family Centre will not only provide access to a wide range of essential childcare items, it will also offer a nurturing space for families to gain further support, build relationships, and feel more able to move through current challenges.”

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Fusion 21 Foundation - Trustee Report

Evidencing impact

We are acutely aware that the current cost of living crisis may continue for several years.

With this in mind we have made an investment to support the Association of Charitable Organisations (ACO) in its work to demonstrate the impact of individual hardship funds. The ACO is the united voice of the benevolence sector, they champion the contribution of charities that provide financial and wellbeing support to individuals.

The benevolent charity sector provides crucial services for the housing sector and wider communities to refer into, particularly during the cost-ofliving crisis. This research will provide a more robust approach to measuring and articulating the sector’s impact, enabling better quality conversations with regulators, potential funders, and other bodies. The report is due to be published in June 2023.

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4.

Employment and skills

The second year of our three year partnership with The Prince’s Trust continued to enable them to provide life changing support to young people to kickstart their careers in the Health and Social Care Sector.

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Thanks to the £50,000 annual donation from Fusion21 Foundation, The Prince’s Trust has been able to unlock a further £150,000 of public sector match funding each year to support even more young people.

Through this overall donation, The Trust can support an average of 200 young people each year to engage in the Health and Social Care programme.

In years one and two of the programme The Prince’s Trust supported 400 young people to engage with the scheme, enabling young people to develop the practical skills, confidence and experience needed to move into sustainable and worthwhile careers.

In addition to empowering young people, the partnership is focused on securing a more diverse workforce for the NHS and Health and Social Care sector, with a focus on engaging and reaching young people from different backgrounds, demographics and communities.

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Proud Providers of Procurement with Purpose

5. More than just a funder...

Housing, Learning and Work Conference

In February, we teamed up with our colleagues in the social value team and sponsored the Learning and Work Institute’s joint annual conference with Communities that Work to discuss this year’s theme of ‘securing prosperous futures for all’.

The conference brought joined-up

thinking to the social housing, employment and skills sectors. It explored how economic growth and prosperity can be shared, the opportunities that devolution of power bring, and how green jobs can help to achieve sustainable growth across more communities. The conference married the political dimension with practical considerations to understand how we can best come together to drive new and better chances for all.

Cost of living webinars

This year, in response to the ongoing economic challenges, HACT developed a fortnightly cost of living event series from the Centre For Excellence in Community Investment. These informative webinars connected networks of community investment colleagues with expert speakers in the areas of energy, food, income maximisation, hardship funds, mental health, and a range of other issues related to supporting residents through the costof-living crisis.

We were delighted to be asked to chair one of the webinars which explored how The Hyde Foundation’s Cost of Living and Universal Credit tools can benefit residents in housing associations across the country.

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Fusion 21 Foundation - Trustee Report

Transition to ‘Green’

Our continued commitment to the green agenda was demonstrated through our sponsorship of HACT’s White Paper: A Just Green Transition, which examined how the housing sector can deliver sustainable communities alongside sustainable homes. To deliver this, HACT have identified six principles housing

associations should incorporate into their sustainability strategy, so that the investment made into making homes sustainable results in sustainable communities.

Homes UK 2022

The Foundation hosted a panel at Homes UK 2022 to discuss ‘Addressing the cost-of-living challenge through innovation and collaboration’. We were delighted to be joined on stage by our partners from National Energy Action (NEA), Sovereign Housing Association, The Guinness Partnership, and the Food Foundation.

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Fusion 21 Foundation - Trustee Report

6.Social investment

Our funding investment with Social Investment Business’ (SIB) Recovery Loan Fund has gone from strength to strength this year, with 23 organisations now receiving loans from the fund.

The fund is reaching a diverse range of organisations working with beneficiaries including people who are homeless, in poverty or are financially excluded, those experiencing long term unemployment, have learning disabilities, mental health needs, vulnerable young people and children as well as older vulnerable people and ex-offenders. Many of these beneficiary groups have been the hardest hit in society by the pandemic and cost of living crisis.

Case study

Change Please Coffee, which was launched in 2015, has been dedicated to improving the lives of the local homeless community. Beginning with a single coffee cart in Covent Garden, the initiative has since grown to eleven locations across London with all profits being reinvested into initiatives aimed at alleviating homelessness.

Change Please provides individuals experiencing homelessness with a job, a living wage, access to housing and comprehensive training. Through their training program, over 79% of trainees who have completed the training have secured ongoing employment, and 286 trainees have become trained baristas in the last two years, thanks to the Change Please training program.

Change Please has utilised the Recovery Loan Fund (RLF) to secure new locations for their cafes, to help move forward with their mission to make a positive social impact.

With the RLF, Change Please has expanded their capacity, increased their visibility, and multiplied their social impact one cup of coffee at a time.

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Fusion 21 Foundation - Trustee Report

7. Ambitions for the future

Our partnership approach has helped us shape our response to some of the biggest challenges faced in a lifetime; the pandemic, the economic crisis, and a crisis in mental health. It is through our partnerships that we can effectively target and magnify our resources and funding to best effect.

We will continue our collaborative approach, strengthening existing relationships and developing new ones, as we navigate the considerable cost of living challenges that will undoubtedly continue in 2023-2024.

Supporting growth and opportunities in the employment and skills sector is still a priority and is the ultimate way of empowering people out of poverty. We hope to develop more investment opportunities with our partners in this area next year.

Alongside the continuation of our grants programme, we will also seek further opportunities to create new social investments, through the learning we have gained from our work with Social Investment Business (SIB).

Listening to our members and understanding their priorities remains at the heart of our strategy and we will use this to shape our investments to meet the needs of communities across the country. We will share the learning from our projects and work together to drive innovation and learning across the public and community sectors.

Our ambition in 2023-2024 is to broaden our reach to more members, particularly those in local government, to understand how we can collaborate and support VCSE sector organisations - the lifeblood of communities - in their local areas.

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Fusion 21 Foundation - Trustee Report

in review

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Fusion 21 Foundation - Trustee Report

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Procurement

Four frameworks were renewed and launched in 2022-2023 to benefit our members and the communities they work in. These include:

The frameworks total over £750m in value and are a direct result of our inclusive approach to developing and updating our offer, for the benefit of our members. By listening to and responding to both supplier and member feedback, we are able to better service our members and the communities they work in through our framework offers.

Our members not only benefit from rigorously assessed and approved supply chain, but they are also supported in delivering social value you can see throughout each project journey.

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Decarbonisation

In 2020, the Government announced it’s commitment to a £3.8bn Social Housing Decarbonisation Fund (SHDF) over a 10-year period, to improve the energy performance of social rented homes.

The main focus of the funding is to:

Deliver warm, Reduce carbon Tackle fuel energy-efficient homes emissions poverty Support Develop the Improve the comfort, green jobs retrofit sector health and well-being of social housing tenants

A £62m fund was announced in 2020 followed by £160m for the first wave of the SHDF in financial year 2021-2022 delivering to January 2023.

Local authorities, combined authorities, registered providers of social housing, and registered charities who own social housing are eligible to apply for the fund.

Fusion21 is well positioned to support our members through several frameworks already working with 38 members to deliver on their carbon zero journey.

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Fusion 21 Foundation - Trustee Report

Social value

Our social value mission is to empower communities to think differently, work smartly and truly deliver on social value. By using legislation as a lever, we work to support the procurement and planning process by helping to embed social value at the heart of decision making to maximise impact.

Social value through procurement

This year, we helped:

Over 400

people into employment 800 people to stay in employment

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apprenticeships whilst sustaining another 60

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1,000 people benefitted from training

225

took part in work experience placements

Over

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1,400
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people benefitted from careers advice and presentations

Over

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£372,000
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contributed by our framework supply chain partners in donations to provide additional funding for social value activities

Social value through planning

Through our collaborations with local authorities, developers and the VCSE sector, we supported:

313 people supported into employment

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new apprenticeship opportunities

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opportunities supported for local subcontractors to win work, helping improve the local subcontractor market

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Foundation Trustee Report

£375,000 donated in additional funding

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Fusion 21 Foundation - Trustee Report

Governance

A key priority in our strategy is to support projects that:

are transformational in terms of their design, delivery or impact

add value and don’t duplicate existing work. They seek to shape and inform future work and dialogue

demonstrate clear partnership working between beneficiaries and relevant stakeholders

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Fusion 21 Foundation - Trustee Report

Our vision and mission

OUR VISON To make a visible impact

Social impact | collaborative communities | social business | smart thinking | sustainability | thought leadership

OUR MISSION Helping members to buy smarter, championing social value and sustainability

One Fusion21

“Our One Fusion21 mantra enables us to focus on our members and the communities they operate in. From our governance model that supports both the charitable and commercial work, to the dedication of our staff team, we work together, as one, to make this happen. We’re proud to help create a visible impact to benefit those who need it most.

Chris Murray, Group Chair

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Charitable objects

Fusion 21 Foundation - Trustee Report

The Trustees have referred to guidance published by the Charity Commission’s general guidance on public benefit when reviewing the charity’s objectives and activities, and in future planning. Particular attention has been paid as to how the planned activities will contribute to the objectives that have been set. The Trustees have undertaken a review of The Foundation’s public benefit to satisfy themselves that the Foundation’s activities meet with Charities Commission requirements on ‘public benefit’.

The Foundation’s public benefit principally derives from the social investment and support provided to the residents and communities of its 1,000+ public sector members. The Foundation is fully funded by Fusion21 Ltd and projects are often co-funded by Fusion21 Members. The Foundation does not engage in fundraising activities with its sole source of revenue currently being Fusion21 Ltd.

The objects of the Foundation remain the same as the previous year and can be found on page 38.

Our funding priorities are health & wellbeing , employment & skills , and f inancial inclusion & resilience . We fund research to better understand issues and/or to create opportunities for policy advocacy. We also fund delivery projects that are innovative – projects that have a ‘test and learn’ approach – creating new solutions to ongoing issues.

We see partnership working as the best way to maximise impact with the grant funding we have available. We take a proactive approach to our grant making and we like to develop relationships with our potential grantees. We do this by collaborating directly with our members (the public sector organisations using our procurement services) to understand the need in their communities. This helps us to spot opportunities to co-fund projects with them. Sometimes those projects are directly commissioned from organisations in the voluntary, community and social enterprise (VCSE) sector.

We fund research to better understand challenges in communities and create opportunities for policy advocacy. We also fund innovative delivery projects that have a ‘test and learn approach, creating new solutions to ongoing issues.

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Fusion 21 Foundation - Trustee Report

The charity’s objects are the advancement of citizenship and community development for the benefit of the public by the promotion of urban and rural regeneration in areas of social and economic deprivation by all or any of the following means:

of their age or social or economic circumstances would not have otherwise have access to information technology,

Proud Providers of Procurement with Purpose

38

Foundation Trustee Report Future plans and objectives

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Foundation Trustee Report

Business plan

We launched our new five year business plan in 2022-2023, focusing on key areas of strategic importance to our membership including procurement, social value and community investment.

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Proud Providers of Procurement with Purpose

BUSINESS PLAN SPOTLIGHT

Leadership development

One of the key priorities in our business plan has been to develop the future leaders of the organisation. We partnered with Laughology to deliver a bespoke Leadership Development Programme for colleagues from aspiring into leadership through to our experienced business leaders.

designed to be fun yet impactful.”

Equality, Diversity and Inclusion (EDI)

SSK,

Laughology Graduate

Partnering with the Housing Diversity Network, we began working towards an EDI strategy for Fusion21. Led from the Foundation and Ltd boards, we spend 2022-23 looking at our current approach, opportunities to improve and developing a draft strategy to be launched in 2023-24.

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Foundation Trustee Report

Fusion21 turns 21

turn 21.

4 42[4] 3 3

Proud Providers of Procurement with Purpose Proud Providers of Procurement with Purpose

Fusion 21 Foundation - Trustee Report

Financial review Review of the financial position

The consolidated Statement of Financial Position shows total group income for the year was £8,513,865. (2022: £7,084,844). Total income relates predominantly to other trading activities which is generated mostly by the trading subsidiary, Fusion21 Ltd, through its procurement support work.

The charitable activities of the foundation are funded solely from donations received from the trading subsidiary and in the year to 31 March 2023 a donation was paid to the foundation of £3,200,000 (2022: £1,989,845). Further donations were made in respect of the year ended 31 March 2023 totaling £3,150,000 with the amounts being paid post year end.

After taking in account the total expenses of £7,383,844 (2022: £5,906,901) and other losses of £87,000 (2022: Other gains of £640,511) the group recorded a net surplus for the year of £1,043,021 (2022: £1,818,454) and had total carried forward funds of £13,806,908 (2022: £12,763,887).

Of the total group funds carried forward £6,352,804 (2022: £7,916,463) relate to reserves held within the trading subsidiary Fusion 21 Limited. The Trustees have chosen to retain such funds within Fusion21 Ltd to reflect the fact that a significant proportion of the group’s financial liabilities are held within the company. Such reserves are therefore considered necessary to enable the subsidiary to meet its debt obligations and to protect it against any potential future claim made against it. Funds have also been retained within the subsidiary to support the company’s growth and secure a source of considerable future funding through further annual donations.

The Foundation has designated funds totaling £3,642,034 set aside to fulfil the charitable objectives of the Fusion21 Foundation and includes £2m allocated for Social Investment supporting Social Enterprises and Charites struggling following Covid-19. Further details regarding the designated fund are set out in note 30.

Policy for holding reserves

Fusion21 Foundation endeavor to maintain free reserves in each financial year to meet any reasonably foreseeable contingency. The free reserves are defined as funds that are available for use at the discretion of the Trustees. This excludes funds retained in the trading subsidiary, amounts held as fixed asset investments and any amounts designated for other specific purposes.

A core part of the strategy of the Foundation is to play an active role in within the social investment community. As such, the Trustees agreed in December 2020 to work towards a model of 2/3 of available reserves to be committed to social investment activities and 1/3 for grant making. Provision has already been made within the designated funds for a social investment of up to £2m, with additional investments of similar size scheduled to follow thereafter.

The surplus recorded for the year ended 31 March 2023 saw total group funds increase to £13,806,908 (2022: £12,763,887). The current year donation from the trading subsidiary, Fusion 21 Ltd, of £3,200,000 will look to be expended on charitable activities in 2023/24 and beyond in line with the foundation’s future plans and strategy.

Going Concern

At the time of approving the accounts the trustees are satisfied that the group and charity has adequate resources to continue as a going concern. There are uncertainties over one of the trading subsidiaries, CoreHaus Ltd.’s ability to continue in operational existence for the foreseeable future and the position is being monitored. This however has no significant impact on the group position.

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Fusion 21 Foundation - Trustee Report

Structure, governance and management

The Fusion21 group consists of the following entities: L

Fusion21 Foundation.

Fusion21 Ltd.

Fusion 21 Asset Management Ltd

CoreHaus Ltd

Fusion 21 Trading Ltd

Fusion21 Foundation (company number 07998339, charity number 1164818) is the parent company of Fusion21 Ltd (company number 05090266) a social enterprise subsidiary. Fusion21 Ltd holds subsidiary investments in Fusion 21 Asset Management Ltd (company number 11194061), CoreHaus Ltd (company number 09287021) and Fusion 21 Trading Ltd (company number 07879611). The Foundation Trustees are responsible for the charity and can exercise control over Fusion21 Ltd, although they are governed and managed by an independent board of non-executive directors. In order to foster cohesion across the group there are two common directors (one common chair and one common director) with both boards having an independent majority.

Fusion 21 Foundation is a registered charity and company limited by guarantee. The charitable company is governed by its Memorandum and Articles of Association dated 4 March 2014. The company has no share capital, being a company limited by guarantee. The charity was formed as a company limited by guarantee on 20 March 2012.

The Foundation has made a commitment to adopting the Good Governance Code and has been working with Anthony Collins Solicitors on this objective to comply with the recommendation and guidance outlined in the “Decoding the Charity Governance Code” report published by RSM Accountants. To ensure consistency Fusion21 Ltd has also committed to adopting the 7 principles of The Good Governance Code along with an additional theme that will report annually on company viability.

An Inter Group Agreement has also been drafted which will be adopted by the Foundation and Ltd. These matters represent significant commitments to establishing long term good practice and will help to demonstrate how the Ltd board has ceded overall group control to the Foundation.

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Fusion 21 Foundation - Trustee Report

Structure, governance and management

Fusion21’s executive (the Leadership Team) is responsible for the day-to-day management of both organisations. Considering the charity is the newest addition to the Fusion21 group, management services are provided by Ltd either by gift aid or at actual cost. The executive comprises the Chief Executive, Director of Operations, Director of Business Services. This team is employed and remunerated by Fusion21 Ltd, from trading revenue, ensuring that no executive costs are attributed to the charity.

The only employee management costs incurred by the charity relate to two individuals who are directly involved in managing the day-to-day activities of the Foundation. Fusion21 Ltd has a remuneration policy, managed by a Remuneration Panel of Non-Executive Directors, that determines executive pay. The Remuneration Panel commissions independent advice on executive pay and ensures that the policy is based on the commercial environment that Fusion21 Ltd operates within. This Panel also sets Recruitment, Retention and Succession Policy to attract and retain the appropriate knowledge, skills and experiences required by Fusion21 Ltd. The only other costs the Foundation incur are professional fees directly related to Foundation business.

Trustees are appointed in line with the group ‘Recruitment, Retention & Succession’ and ‘Equality & Diversity’ group policies which apply to all staff, Directors, and Trustees. The articles of association also defines Trustee recruitment and appointment arrangements; and minimum and maximum Trustee numbers. Vacancies are actively recruited in the public domain using the services of professional recruitment agencies. Trustees are appointed on agreed ‘Terms of Office’ policy which provides for a three year term with options to extend to 2 further 3 year terms. A Board appraisal process is in place will be undertaken when the current trustees reach one year’s service and annually thereafter.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Ms A Astbury Mr T Cahill Mr E Livesey Mr C E C Murray Ms C Baxter Ms A Taylor

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees’ report was approved by the Board of Trustees.

………………………. ………………………. Mr E Livesey Mr C E C Murray Trustee Trustee Dated: ………………….. Dated: ……………………

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FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2023

The trustees, who are also the directors of Fusion 21 Foundation for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FUSION 21 FOUNDATION

Opinion

We have audited the financial statements of Fusion 21 Foundation (the ‘charity’) and its subsidiary (the "Group") for the year ended 31 March 2023 which comprise the Consolidated Statement of Financial Activities, the Consolidated and parent charitable company Balance Sheets, the Consolidated Statement of Cash Flows and the notes to the accounts, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF FUSION 21 FOUNDATION

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group, the charity, the subsidiaries and their environment obtained in the course of the audit, we have not identified material misstatements in the directors’ Report included within the Trustees' 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:

Responsibilities of trustees

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

In preparing the financial statements, the trustees are responsible for assessing the group's and 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 group or the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Extent to which the audit has considered capable of detecting irregularities, including fraud

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

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

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF FUSION 21 FOUNDATION

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

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

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

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

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Louise Casey ACA (Senior Statutory Auditor) for and on behalf of BWM

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

Chartered Accountants Statutory Auditor

Tempest Suite 5.1 12 Tithebarn Street Liverpool L2 2DT

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING THE CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted Unrestricted
funds funds
2023 2022
Notes £ £
Income and endowments from:
Other trading activities 3 8,406,379 7,004,602
Investments 4 35,058 435
Other income 5 72,428 79,807
Total income 8,513,865 7,084,844
Expenditure on:
Raising funds 6 6,028,388 5,325,650
Charitable activities 7 1,471,075 498,628
Other 13 (115,619) 82,623
Total expenditure 7,383,844 5,906,901
Net incoming resources 1,130,021 1,177,943
Other recognised gains and losses
Other gains or losses 16 (87,000) 640,511
Net movement in funds 1,043,021 1,818,454
Fund balances at 1 April 2022 12,763,887 10,945,433
Fund balances at 31 March 2023 13,806,908 12,763,887
Net movement in funds for the financial year is attributable to:
- Parent charity 1,329,004 2,028,965
- Non controlling interest (285,983) (210,511)
1,043,021 1,818,454

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

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

The movement in funds detailed above compiles withthe requirement for a statement of changes in equity under FRS102.

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE CONSOLIDATED BALANCE SHEET

AS AT 31 MARCH 2023

Notes
Fixed assets
Goodwill
17
Other intangible assets
17
Total intangible assets
Tangible assets
18
Investments
19
Current assets
Stocks
21
Debtors
23
Cash at bank and in hand
Creditors: amounts falling due within
one year
24
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
25
Provisions for liabilities
note 27 &
28
Net assets
Income funds
Unrestricted funds
Designated funds
30
General unrestricted funds
Funds attributable to parent charity
Non controlling interest		 2023
£
£
-
102,795
102,795
874,386
3,199,055
4,176,236
756,293
2,571,211
7,970,753
11,298,257
(1,306,243)
9,992,014
14,168,250
(189,188)
(172,154)
13,806,908
3,642,034
10,565,723
14,207,757
(400,849)
13,806,908		 2022
£
£
842,625
160,371
1,002,996
917,486
409,103
2,329,585
734,153
2,336,585
9,103,634
12,174,372
(1,335,569)
10,838,803
13,168,388
(245,730)
(158,771)
12,763,887
3,642,034
9,236,719
12,878,753
(114,866)
12,763,887

The financial statements were approved by the Trustees on .........................

.............................. ..............................
Mr E Livesey Mr C E C Murray
Trustee Trustee
Company Registration No. 7998339

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE CHARITY BALANCE SHEET

AS AT 31 MARCH 2023

Notes
Fixed assets
Investments
19
Current assets
Debtors
23
Cash at bank and in hand
Creditors: amounts falling due within
one year
24
Net current assets
Total assets less current liabilities
Income funds
Unrestricted funds
Designated funds
30
General unrestricted funds		 2023
£
£
3,163,524
2,197
4,666,088
4,668,285
(53,223)
4,615,062
7,778,586
3,642,034
4,136,552
7,778,586
7,778,586		 2022
£
£
371,916
3,490
4,793,281
4,796,771
(6,000)
4,790,771
5,162,687
3,642,034
1,520,653
5,162,687
5,162,687		 2022
£
£
371,916
3,490
4,793,281
4,796,771
(6,000)
4,790,771
5,162,687
3,642,034
1,520,653
5,162,687
5,162,687
5,162,687
5,162,687
5,162,687

As permitted by s408 Companies Act 2006, the charitable ccompany has not presented its own statement of financial activity and related notes. The charitable company’s net income for the year was £2,615,899 (2022: £1,501,083).

The financial statements were approved by the Trustees on .........................

.............................. .............................. Mr E Livesey Mr C E C Murray Trustee Trustee

Company Registration No. 7998339

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2023

2023
Notes
£
£
Cash flows from operating activities
Cash generated from operations
34
1,907,782
Interest paid
(10,979)
Income taxes refunded / (paid)
(177,952)
1,718,851
Investing activities
Purchase of intangible assets
-
Purchase of tangible fixed assets
(45,574)
Purchase of investments
(2,789,953)
Amounts received from fixed assets
investments
-
Investment income received
35,058
Net cash used in investing activities
(2,800,469)
Financing activities
Repayment of bank loans
(51,263)
Net cash used in financing activities
(51,263)
Net (decrease)/increase in cash and cash
equivalents
(1,132,881)
Cash and cash equivalents at beginning of year
9,103,634
Cash and cash equivalents at end of year
7,970,753		 2022
£
£
1,687,354
(10,189)
52,428
1,729,593
(12,600)
(63,549)
-
28,104
435
(47,610)
(46,633)
(46,633)
1,635,350
7,468,284
9,103,634

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

Charity information

Fusion 21 Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office for the charity and its subsidiaries is Unit 2, Puma Court, Kings Business Park, Knowsley, Merseyside, L34 1PJ.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's memorandum and articles of association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

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

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

In respect of long term contracts and contracts for ongoing services, income represents the value of work done in that year, including estimates of amounts not invoiced. Income in respect of long term contracts and contracts for ongoing services is recognised by reference to the stage of completion.

Grants receivable are credited to the Statement of Financial Activities in the year in which they are received.

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(continued)

1.5 Expenditure

Expenditure is included within the Statement of Financial Activities on an accruals basis and is recognised when there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.

Expenditure is categorised under the following headings:

Grants payable to third parties are within the charities charitable objectives. Where unconditional grants are offered, they are accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.

Charitable activity costs include expenditure which is directly attributable to specific activities and has been included within these cost categories. Certain other costs which are attributable to more than one activity are apportioned across cost categories on the basis of an estimate of the proportion of time spent by staff on those activities.

Governance costs are costs incurred in connection with the strategic management of the charity and in compliance with constitutional and statutory requirements.

Irrecoverable VAT is charged as an expense against the activity for which the expenditure arose.

1.6 Research and development expenditure

1.7 Intangible fixed assets - goodwill

Goodwill is being amortised over 10 years

1.8 Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software Development costs

3 years straight line 5 years straight line

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(continued)

1.9 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold property Not depreciated Leasehold improvements 3 years straight line Office improvements 3 years straight line Fixtures and fittings 3 years straight line Equipment 3 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.10 Fixed asset investments

In the parent company financial statements interests in subsidiaries, associates and joint ventures are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in net income/(expenditure) for the year.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a longterm interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

The group has issued loans with fixed or determinable payments that are not quoted in an active market. These loans are recorded at transaction price.

1.11 Impairment of fixed assets

At each reporting end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.12 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.13 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(continued)

1.14 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(continued)

1.15 Taxation

The charity benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation tax on income or gains falling within those exemptions.

The tax expense represents the sum of the tax currently payable and deferred tax in respect of the subsidiary company.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.16 Employee benefits

The costs of any short-term employee benefits are recognised as a liability and an expense.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.17 Retirement benefits

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as incurred.

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(continued)

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in income/(expenditure) for the year.

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other recognised gains and losses in the period in which they occur and are not reclassified to income/(expenditure) in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

1.18 Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

1.19 Consolidation

The group financial statements consolidate the results of Fusion21 Foundation (the charity) and its subsidiaries, Fusion 21 Limited, Fusion 21 Asset Management Limited and Corehaus Ltd. The results of the charity's subsidiaries have been incorporated on a line by line basis.

No separate SOFA or income and expenditure accounts has been presented for the charity alone as permitted by the exemption afforded by section 408 of the Companies Act 2006 and the SORP.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

2 Critical accounting estimates and judgements

(continued)

Key sources of estimation uncertainty

Accrued income

The accrued income is calculated at the year end based on relevant % of the individual contract values less any amounts invoiced to date. In calculating the accrued income reliance is placed on the accuracy of the estimated contract values.

Useful economic lives of tangible assets

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are assessed on initial acquisition and reassessed periodically to ensure they remain appropriate. They are amended when necessary to reflect current estimates based on technological advancement, future investments, economic utilisation and the physical condition of the assets. The useful economic lives for each class of asset are set out in the relevant accounting policy note.

Goodwill amortisation

The annual amortisation charge for goodwill is based on the trustees judgement that 10 years was appropriate. The trustees consider this on an ongoing basis and amended when necessary to reflect current estimates. Following an impairment review in the year goodwill has been fully written off as detailed in note 15

3 Other trading activities

**Unrestricted ** Unrestricted
funds funds
2023 2022
£ £
Professional service and training contracts 8,406,379 7,004,602

4 Investments

**Unrestricted ** Unrestricted
funds funds
2023 2022
£ £
Interest receivable 35,058 435

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

5 Other income

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Other income 72,428 79,807

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

6 Raising funds

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Trading costs
Other trading activities 2,017,408 1,848,548
Staff costs 3,864,322 3,209,607
Depreciation and amortisation 146,658 267,495
Trading costs 6,028,388 5,325,650
6,028,388 5,325,650
Unrestricted
Unrestricted
funds funds
2023 2022
£ £
Staff costs 106,947 102,973
Grant funding of activities (see note 8) 415,464 334,561
Share of support costs (see note 9) 867,428 46,013
Share of governance costs (see note 9) 81,236 15,081
1,471,075 498,628

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

8 Grants payable

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Grants to institutions:
ACO - Financial Impact Research 8,000 -
BITC Sustainability of food community Covid Phase 2 - 20,000
Boiler House 7,500 -
Bus in Community 10,000 -
Child Poverty Action Group 29,000 29,488
Dream High - 6,250
Food Foundation 15,000 35,000
Furniture Resource 25,000 -
Hackney Family Centre 2,500 -
HACT 37,500 20,000
National Energy 22,000 -
New Horizon Youth 26,462 -
One Knowsley 52,494 17,498
Oneside Youth Zones 41,255 13,163
Onside Youth zones - -
Onside: Culture of Health - 13,162
Post lockdown recovery - 30,000
SEUK - 5,000
Shared Lives Plus 6,253 25,000
Taroe Trust 60,000 70,000
The housing association 22,500 -
The Princes Trust 50,000 50,000
415,464 334,561

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

9 Support costs

Impairment
Office costs
Travel and subsistence
Computer & software
costs
Postage
Marketing
Audit fee of the parent
charity
Legal and professional
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
842,625
-
-
-
17,702
-
740
-
88
-
6,273
-
-
7,980
-
73,256
867,428
81,236
867,428
81,236		 2023Support costs Governance
costs
£
£
£
842,625
-
-
-
294
-
17,702
332
-
740
432
-
88
31
-
6,273
44,924
-
7,980
-
6,000
73,256
-
9,081
948,664
46,013
15,081
948,664
46,013
15,081		 2022
£
-
294
332
432
31
44,924
6,000
9,081
61,094
61,094

10 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year (2022 - no remuneration paid to trustees).

11 Auditor's remuneration

The analysis of auditor's remuneration is as follows:
Fees payable to the charity's auditor:
Audit of the charity's annual accounts
Other services to the group
- the audit of the subsidiaries
Total audit fees
Non-audit services
All other non-audit services		 2023
£
4,500
12,750
17,250
8,730		 2022
£
3,250
10,420
13,670
7,360

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

12 Employees

Number of employees

The average monthly number of employees during the year was:

Management
Client facing, adminstration and support
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2023
Number
6
64
70
2023
£
3,438,507
364,832
167,930
3,971,269		 2022
Number
6
57
63
2022
£
2,867,004
296,198
149,378
3,312,580
The number of employees whose annual remuneration was £60,000 or more
were:
2023 2022
Number Number
£60,000 - £70,000 7 6
£70,001 - £80,000 3 4
£80,001 - £90,000 - 1
£90,001 - £100,000 1 -
£110,001 - £120,000 2 2
£130,001 - £140,000 - 1
£140,001 - £150,000 2 -
£150,001 - £160,000 1 -

13 Other

Unrestricted Unrestricted
funds funds
2023 2022
Taxation (115,619) 82,623
(115,619) 82,623

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

14 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

15 Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023 2022
£ £
In respect of:
Goodwill 842,625 -

During the year the directors of Fusion 21 Ltd reviewed and impaired its investment in the subsidiary company, CoreHaus Ltd. As such, the goodwill included in these group accounts in relation to CoreHaus Ltd has also been impaired and the balance written down to £nil.

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

16 Other gains or losses

The other gains and losses shown on the Statement of Financial Activity, totalling loss of £87,000 (2022 - gain £640,511) relate to the goodwill and non controlling interest movements recognised on consolidation and actuarial gains / losses on the defined benefit pension scheme.

17 Intangible fixed assets Group

Cost
At 1 April 2022
Disposals
At 31 March 2023
Amortisation and impairment
At 1 April 2022
Amortisation charged for the year
Impairment losses
Disposals
At 31 March 2023
Carrying amount
At 31 March 2023
At 31 March 2022		 Goodwill
£
951,389
-
951,389
108,764
-
842,625
-
951,389
-
842,625		 Software
Development
costs
£
£
87,405
187,122
(37,000)
-
50,405
187,122
67,375
46,781
10,795
46,781
-
-
(37,000)
-
41,170
93,562
9,235
93,560
20,030
140,341		 Total
£
1,225,916
(37,000)
1,188,916
222,920
57,576
842,625
(37,000)
1,086,121
102,795
1,002,996

The brought forward goodwill relates to the acquisition of a controlling interest in Corehaus Ltd by Fusion 21 Limited during the year ended 31 March 2021 and subsequent further purchase of shares in the year ended 31 March 2022. During the year this goodwill has been fully impaired.

More information on the impairment arising in the year is given in note 15.

Charity

There are no intangible fixed assets held within the charity

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

18
Tangible fixed assets
Group
Freehold land
and buildings
Leasehold
improvements
£
£
Cost
At 1 April 2022
782,301
56,903
Additions
-
-
Disposals
-
-
At 31 March 2023
782,301
56,903
Depreciation and impairment
At 1 April 2022
-
20,939
Depreciation charged in the year
-
18,968
Eliminated in respect of disposals
-
-
At 31 March 2023
-
39,907
Carrying amount
At 31 March 2023
782,301
16,996
At 31 March 2022
782,301
35,964		 Plant &
machinery
Fixtures and
fittings
£
£
20,311
137,379
9,521
2,444
-
(89,931)
29,832
49,892
6,616
115,088
7,702
13,180
-
(89,931)
14,318
38,336
15,514
11,556
13,692
22,293		 Equipment
£
213,475
33,609
(30,886)
216,198
150,238
48,826
(30,886)
168,179
48,019
63,236		 Total
£
1,210,369
45,574
(120,817)
1,135,126
292,881
88,676
(120,817)
260,740
874,386
917,486

Charity

There are no tangible fixed assets held within the charity

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

19 Fixed asset investments Group

Shares in
group
undertakings
and
participating
interest
Other
investments
£
£
Cost or valuation
At 1 April 2022
1,654
407,449
Additions
-
2,791,608
Consolidation adjustments
(1,654)
-
At 31 March 2023
-
3,199,057
Carrying amount
At 31 March 2023
-
3,199,057
At 31 March 2022
1,654
407,449
Charity
Cost or valuation
At 1 April 2022
Additions
At 31 March 2023
Impairment
At 1 April 2022 & 31 March 2023
Carrying amount
At 31 March 2023
At 31 March 2022		 Total
£
409,103
2,791,608
(1,654)
3,199,057
3,199,057
409,103
Total
£
371,916
2,791,608
3,163,524
-
3,163,524
371,916

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

20 Subsidiaries Group & Charity

Subsidiary undertakings

The charity is the sole member of Fusion 21 Limited, a company limited by guarantee which provides support to public sector members and other training services

Fusion 21 Limited owns 100% of the share capital of Fusion 21 Trading Limited, a dormant company.

Fusion 21 Limited owns 100% of the ordinary share capital of Fusion 21 Asset Management Limited, a building development company.

Fusion 21 Limited owns 65% of the ordinary share capital in CoreHaus Ltd, a company which specialises in offsite construction.

Details of the charity's subsidiaries at 31 March 2023 are as follows:

Name of undertaking Registered Nature of business Class of % Held
office shares held Direct
Fusion 21 Ltd England & Wales Pubic sector member support Ltd by guarantee 100
Fusion 21 Trading Ltd England & Wales Dormant Ordinary 100
Fusion 21 Asset England & Wales Development of building Ordinary 100
Management Ltd projects
Corehaus Ltd England & Wales Offsite construction Ordinary 65

The aggregate capital and reserves and the result for the year of the subsidiaries included in the consolidation was as follows:

Name of undertaking Capital and
Turnover Expenditure Profit/(loss) Reserves
£ £ £ £
Fusion 21 Ltd 8,324,966 6,617,851 1,836,341 6,352,804
Fusion 21 Trading Ltd - - - 1
Fusion 21 Asset
Management Ltd 37,401 25,299 12,102 417,385
Corehaus Ltd 81,415 1,023,641 (289,869) (339,987)

Loans

In the three years to 31 March 2017 Fusion 21 Limited invested a sum of £199,999 in Big Issue Invest Corporate Social Venturing Limited, a corporate social venturing programme. At 31 March 2023 an amount of £35,531 was outstanding in respect of this loan.

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

21
Stock
Group
Home plots
Charity
The is no stock held witin the charity		 2023
£
756,293		 2022
£
734,153

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

22
Financial instruments
Group
Carrying amount of financial assets
Debt instruments measured at amortised cost
Carrying amount of financial liabilities
Measured at amortised cost
Charity
Carrying amount of financial assets
Debt instruments measured at amortised cost
Carrying amount of financial liabilities
Measured at amortised cost
23
Debtors
Amounts falling due within one year:
Trade debtors
Corporation tax recoverable
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income
24
Creditors: amounts falling due within one year
Bank loans (secured)
26
Corporation tax payable
Other taxation and social security
Deferred income
Trade creditors
Amounts owed to group undertakings
Other creditors
Accruals and deferred income		 2023
2022
£
£
11,665,825
10,057,837
825,875
833,968
2023
2022
£
£
7,493,596
4,793,281
53,223
6,000
Group
Group
Charity
Charity
2023
2022
2023
2022
£
£
£
£
764,581
819,117
-
-
103,001
95,056
-
-
-
-
370
-
17,022
23,418
-
-
1,686,607
1,398,994
1,828
3,490
2,571,211
2,336,585
2,198
3,490
Group
Group
Charity
Charity
2023
2022
2023
2022
£
£
£
£
49,242
43,963
-
-
-
173,843
-
-
532,781
416,468
-
-
136,775
157,020
-
-
164,278
109,879
-
-
-
-
307
-
33,129
8,346
-
-
390,038
426,050
52,916
6,000
1,306,243
1,335,569
53,223
6,000		 2023
2022
£
£
11,665,825
10,057,837
825,875
833,968
2023
2022
£
£
7,493,596
4,793,281
53,223
6,000
Group
Group
Charity
Charity
2023
2022
2023
2022
£
£
£
£
764,581
819,117
-
-
103,001
95,056
-
-
-
-
370
-
17,022
23,418
-
-
1,686,607
1,398,994
1,828
3,490
2,571,211
2,336,585
2,198
3,490
Group
Group
Charity
Charity
2023
2022
2023
2022
£
£
£
£
49,242
43,963
-
-
-
173,843
-
-
532,781
416,468
-
-
136,775
157,020
-
-
164,278
109,879
-
-
-
-
307
-
33,129
8,346
-
-
390,038
426,050
52,916
6,000
1,306,243
1,335,569
53,223
6,000		 2023
2022
£
£
11,665,825
10,057,837
825,875
833,968
2023
2022
£
£
7,493,596
4,793,281
53,223
6,000
Group
Group
Charity
Charity
2023
2022
2023
2022
£
£
£
£
764,581
819,117
-
-
103,001
95,056
-
-
-
-
370
-
17,022
23,418
-
-
1,686,607
1,398,994
1,828
3,490
2,571,211
2,336,585
2,198
3,490
Group
Group
Charity
Charity
2023
2022
2023
2022
£
£
£
£
49,242
43,963
-
-
-
173,843
-
-
532,781
416,468
-
-
136,775
157,020
-
-
164,278
109,879
-
-
-
-
307
-
33,129
8,346
-
-
390,038
426,050
52,916
6,000
1,306,243
1,335,569
53,223
6,000		 2022
£
10,057,837
833,968
2022
£
4,793,281
6,000
2,198
3,490
Charity
2023
£
-
-
-
-
-
307
-
52,916
53,223		 Charity
2022
£
-
-
-
-
-
-
-
6,000
6,000

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

25 Creditors: amounts falling due after Creditors: amounts falling due after more than one year
Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Bank loans (secured) 26 189,188 245,730 - -
189,188 245,730 - -
26 Loans and overdrafts
Group
2023 2022
£ £
Bank loans 238,430 289,693
Payable within one year 49,242 43,963
Payable after one year 189,188 245,730
Included in the above is a loan totaling £203,430 which is secured by way of a fixed charge over the premises
at Unit 2, Kings Business Park, Kings Drive, Prescot dated 7 July 2017 and a debenture comprising a further
fixed and floating charge over all assets of the company dated 8 June 2017.
27 Provisions for liabilities 2023 2022
Group Notes £ £
Deferred tax liabilities 28 5,654 11,771
Retirement benefit obligations 29 166,500 147,000
172,154 158,771

Charity

There are no provisions for liabilities within the charity accounts.

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

28 Deferred taxation (Group)

Deferred tax assets and liabilities are offset where the charity has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Group Liabilities Liabilities
2023 2022
Balances: £ £
Accelerated capital allowances 5,654 11,771
Charity Liabilities Liabilities
2023 2022
Balances: £ £
Accelerated capital allowances - -
Retirement benefit obligations - -
- -
Group Group
2023 2023
Movements in the year: £ £
Liability at 1 April 2022 11,771 23,795
Charge to other expenditure (6,117) (12,024)
Liability at 31 March 2023 5,654 11,771

The deferred tax liability set out above is expected to reverse within 36 months and relates to accelerated capital allowances that are expected to mature within the same period.

A deferred tax asset has been recognised for the current year in respect of the scheme and this has been offset against the net defined benefit pension scheme liability, as shown in note 29.

29 Retirement benefit schemes

The charity's trading subsidiary, Fusion 21 Limited, operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

29 Retirement benefit schemes

(continued)

Defined benefit schemes

The trading subsidiary contributes to the Social Housing Pension Scheme (SHPS) which is a multiemployer defined benefit pension scheme with approximately 150 sponsoring employers. The scheme is administered by TPT Retirement Solutions (formerly The Pensions Trust( ('TPT'). Under the scheme the employees are entitled to retirement benefits based on a percentage of their final salary on attainment of a retirement age . No other post retirement benefits are provided.

The most recent actuarial valuations of plan assets and the present value of the defined benefit obligation were provided by TPT Retirement Solutions for the period ended 31 March 2023. The present value of the defined benefit obligation, the related current service cost and past service cost were measured using the projected unit credit method.

Key assumptions

Key assumptions
2023 2022
% %
Discount rate 4.82 2.77
Expected rate of salary increases 3.83 4.11
Inflation (RPI) 3.15 3.39
Inflation (CPI) 2.83 3.11

Mortality assumptions

The assumed life expectations on retirement at age 65 are:

Retiring today
- Males
- Females
Retiring in 20 years
- Males
- Females
Amounts recognised in the profit and loss account:
Net interest on defined benefit liability/(asset)
Other costs and income
Total costs		 2023
Years
21.0
23.4
22.2
24.9
2023
£
5,000
3,000
8,000		 2022
Years
21.1
23.7
22.4
25.2
2022
£
14,000
3,000
17,000

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

29 Retirement benefit schemes (continued)
Amounts taken to other comprehensive income:
2023 2022
£ £
Actual return on scheme assets 1,004,000 (404,000)
Less: calculated interest element 59,000 37,000
Return on scheme assets excluding interest income 1,063,000 (367,000)
Actuarial changes related to obligations (976,000) (63,000)
Total costs/(income) 87,000 (430,000)
The amounts included in the balance sheet arising from the charity's
obligations in respect of defined benefit plans are as follows:
2023 2022
£ £
Present value of defined benefit obligations 1,384,000 2,298,000
Fair value of plan assets (1,162,000) (2,102,000)
Deficit in scheme 222,000 196,000
Deferred taxation balance relating to pension schemes (55,500) (49,000)
Total liability recognised 166,500 147,000
Movements in the present value of defined benefit obligations:
2023
£
Liabilities at 1 April 2022 2,298,000
Benefits paid (5,000)
Actuarial gains and losses (976,000)
Interest cost 64,000
Other 3,000
At 31 March 2023 1,384,000

The defined benefit obligations arise from plans which are wholly or partly funded.

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

29
Retirement benefit schemes
Movements in the fair value of plan assets:
Fair value of assets at 1 April 2022
Interest income
Return on plan assets (excluding amounts included in net interest)
Benefits paid
Contributions by the employer
At 31 March 2023
The actual return on plan assets was £1,004,000 (2022 - £404,000)
The fair value of plan assets at the reporting period end was as follows:
Equity instruments
Debt instruments
Property
Liability driven investments
Absolute return
Alternative risk permia
Secured income
Other categories		 (continued)
2023
£
2,102,000
59,000
(1,063,000)
(5,000)
69,000
1,162,000
2023
2022
£
£
22,000
404,000
185,000
250,000
88,000
117,000
535,000
587,000
13,000
84,000
2,000
69,000
53,000
78,000
264,000
513,000
1,162,000
2,102,000

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

30 Designated funds (Group & charity)

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Balance at
1 April 2021
£
Corehaus
investment
370,000
Employment
skills, health
wellbeing &
deprivation
2,592,359
Social
investment
manager
64,500
3,026,859		 Movement in funds
Incoming
resources
Resources
expended
Balance at
1 April 2022
£
£
£
-
-
370,000
679,675
-
3,272,034
-
(64,500)
-
679,675
64,500
3,642,034		 Movement in funds
Incoming
resources
Resources
expended
31
£
£
-
-
-
-
-
-
-
-		 Balance at
March 2023
£
370,000
3,272,034
-
3,642,034

Corehaus investment: The Fusion21 Foundation has designated the purchase of 2 housing units made with modern methods of construction. These units will use innovate building solutions to enhance the experience of the occupants and will be available at an affordable rent to support the housing crisis.

Employment skills, health wellbeing & deprivation: The programme will deliver benefits in all three themes and support the achievements of impacts. As part of the programme we will encourage our members to share their social value priorities and long term thinking with the Foundation in return for access to a grass roots grant to fund current projects. This will help to develop the Foundation’s research and member engagement capabilities and improve the knowledge base around member requirements. Projects that receive funding will contribute to meeting the programme objectives and addressing the specific impacts listed against each theme. The designated fund includes £2,000,000 allocated for Social Investment supporting Social Enterprises and Charites struggling following Covid-19.

Social investment manager: The social investment manager was responsible for discharging social value activity on behalf of the Fusion21 Foundation,.

31 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Within one year
Between two and five years
Total		 2023
£
126,500
221,375
347,875		 2022
£
139,403
347,875
487,278

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

31
Operating lease commitments
Charity
Within one year
Between two and five years
In over five years
Total		 (continued)
2023
2022
£
£
-
-
-
-
-
-
-
-		 (continued)
2023
2022
£
£
-
-
-
-
-
-
-
-
-

32 Members' liability

The company is limited by guarantee and has no share capital. Every member of the charity undertakes to contribute to the assets of the charity, in the event of it being wound up while he or she is a member or within one year of ceasing to be a member or within one year of ceasing to be a member for debts and liabilities of the charity contracted before he or she ceases to be a member, such amounts as may be required not exceeding £1.

33 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023 2022
£ £
Aggregate compensation 517,191 436,692

Transactions with related parties

The group has taken advantage of the disclosure exemptions to which it is entitled regarding transactions between parent and 100% owned subsidiary companies.

No guarantees have been given or received.

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

34
Cash generated from operations
Surplus for the year
Adjustments for:
Taxation (credited) / charged
Investment income recognised in statement of financial activities
Interest payable
Amortisation and impairment of intangible assets
Depreciation and impairment of tangible fixed assets
Consolidation adjustments re Goodwill arising on acquisition
Movements in working capital:
(Increase) in stocks
(Increase)/decrease in debtors
Increase in creditors
(Decrease)/increase in provisions
(Decrease)/increase in deferred income
Cash generated from operations
35
Analysis of changes in net funds
At 1 April 2022
£
Cash at bank and in hand
9,103,634
Loans falling due within one year
(43,963)
Loans falling due after more than one year
(245,730)
8,813,941		 2023
£
1,043,021
12,025
(35,058)
10,979
57,576
88,674
842,625
(22,141)
(226,681)
143,624
13,383
(20,245)
1,907,782
Cash flowsAt 31
£
(1,132,881)
(5,279)
56,542
(1,081,618)		 2022
£
1,818,454
(46,127)
(435)
10,189
146,094
121,401
(328,756)
-
107,392
42,404
(335,248)
151,986
1,687,354
March 2023
£
7,970,753
(49,242)
(189,188)
7,732,323