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2024-03-31-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 2024

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 Mitchell Charlesworth (Audit) Limited
Suite 5.1
Tempest
12 Tithebarn Street
Liverpool
L2 2DT
Bankers Barclays Bank PLC
Lord Street
Liverpool
L2 1TD

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE CONTENTS

Page
From our Chair and Chief Executive 1
Trustees' report 2 - 20
Statement of trustees' responsibilities 21
Independent auditor's report 22 - 24
Statement of financial activities 25 - 26
Balance sheet 27
Statement of cash flows 29
Notes to the financial statements 30 - 56

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE FROM OUR CHAIR AND CHIEF EXECUTIVE

FOR THE YEAR ENDED 31 MARCH 2024

In 2023-24 Fusion21 marked its 21st anniversary and we are proud of what our team of procurement and social value specialists have achieved through work with our members, suppliers and partners_

To date, we have delivered more than £200 million in social impact value and created more than 13,550 employment outcomes_ Last year alone, we completed £550 million worth of projects and we already have £1 2 billion worth of projects committed over the next four years

We have more than 1,100 members, with projects spanning the UK, it's clear that our collective impact is only set to grow_ Since 2002, we have secured £380 million efficiency savings and completed more than 7,000 procurement projects_

We now work in sectors outside of housing including education and health_ But we started in housing, and we're immensely proud of the work we're continuing to deliver with our members_ Over the years, we have worked closely with the government and been involved in initiatives that have led to policy change and regulation, linking procurement to social value in a way that hasn't been done before_

We will continue to grow, evolve and innovate_ Our mission remains the same: to procure solutions that not only save money but create jobs and training opportunities and have a positive impact on society_ The Fusion21 Foundation is becoming a force that will help us to continue to make a difference for our members through our grant funded programmes and social investment work_

So, to our people, and that's our staff, our members, our suppliers and our partners - we say congratulations on our achievements to date_ Together, we have truly set the standard for delivering 'Procurement with Purpose' and creating social value you can see_ We look forward to seeing what the future holds for us_

c 41£w � Chris Murray Group Chair

-���-----------Dave Neilson Group Chief Executive 17/12/24 Date:-------------------------

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2024

The trustees present their annual report and financial statements for the year ended 31 March 2024.

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).

2023-24 Headlines

Achievements and performance

It’s been a record-breaking year for the Foundation in terms of spend and impact, with £1,431,671 of grants distributed and £1,228,571 in social investments.

Grants programme

We spent £727,851 through our mainstream grants programme, covering our priority areas as follows:

Employment and Skills 6%
Health and Wellbeing 36%
Financial Inclusion and Resilience 58%

The geographical spread of our mainstream grants provision looks like this:

UK-wide 2%
England-wide 63%
NW 14%
London 10%
SE Eng 2%
South >1%
W Mids 6%
SW Eng 3%

Additional grant investment

In addition, the Fusion21 Ltd board, in recognition of the severe and enduring impact of the cost-of-living crisis, donated an additional £1m to create the ‘Cost of Living Hardship Fund’. £703,820 of that fund was spent in grants this year to create England-wide impact under our ‘financial inclusion and resilience’ priority, with the remainder committed for 2024-25.

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Best practice

Driving best practice as a funder is really important to us. So, we were delighted to be welcomed into Institute For Voluntary Action Research’s (IVAR) community of open, trusting and flexible funders in February. IVAR and London Funders, in collaboration with a small group of UK foundations and charities, are calling for funders to sign up to eight commitments for open and trusting grant-making.

We're one of over 100 funders who have already signed up and joined a community of funders and charities working to improve together.

Employment and skills

Health and social care

This was the final year of our three-year partnership with The Prince’s Trust to support young people to enter employment in the Health and Social Care Sector. Our £150,000 funding over three years has helped The Prince’s Trust to access match funding of £450,000 from the public sector. Our financial support has meant 600 young people have been engaged in the Health and Social Care programme with over 180 young people starting a job in the sector.

In 2023-24, 200 young people participated in the programme, with 63 starting a job/apprenticeship and 48 of those jobs/apprenticeships being sustained. These figures are set to increase over time, as it can take up to a year from the young person engaging with the programme to sustaining a job outcome, due to the complexities of recruitment and onboarding in the sector.

In the whole programme so far, 47% of participants have identified themselves as from Black, Asian and Minority Ethnic backgrounds and 24% live in areas with the highest levels of deprivation (IMD1 postcodes).

Community based provision

The Fusion21 Foundation is delighted to have co-funded a new employability and finance initiative called the Future Focus Project, on behalf of Fusion21 member Torus. Torus wanted to develop a programme which was responsive to the needs of its community in South Liverpool, and so it was specifically designed to support those where English is not their first language.

Aiming to improve the financial situation of those living in the area, the programme is helping people to build their skills and find work, improve their health and wellbeing, and get access to money advice. 222 participants have received support and advice from the programme, with 165 of those people from black and racially minoritised communities. The impact so far has been fantastic – with 57 people starting a job, and 76 people starting training.

Health and wellbeing

Young people

Our £145,000, three-year commitment to New Horizon Youth Centre (NHYC) continues to be impactful, helping 16– 24 year olds across London who are experiencing homelessness to access to wide-ranging health support. The number of young people accessing NHYC who were sleeping rough, has increased from a third to 50%. This is in part due to Home Office changes to the notice period for newly recognised refugees to be evicted from National Asylum Support Service (NASS) hotels, brought into force in August 2023, and the decision to fast track asylum decisions through the Streamlined Asylum Process (SAP).

The young refugees NHYC support are more likely to have been homeless for over a month. The longer someone spends on the streets, the more likely they are to have multiple, and complex needs due to trauma. Of the refugees NHYC supported in 2023-24, 30% declared a mental health need and 15% a physical health need, requiring the Health Team to adapt their work, such as using translation services, to better support all young people in need.

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

The Health Team has had a positive impact on the health and wellbeing of hundreds of young people supported by New Horizon. 239 young people reporting their mental health improved, 250 young people reported their physical health improved and 232 young people reported improved understanding of their emotions. The Clinical Lead has successfully embedded trauma informed practice across the organisation to help young people work through and heal the impact of traumatic life experiences, which in turn supports them to develop the skills they need to build and sustain positive changes in their lives.

The resident nurse supported young people to improve their physical health through interventions such as minor wound treatments for young people who have been sleeping on the streets, contraception and referrals into NHS services. The Clinical Practitioner (Health Services Manager) has supported young people with their general health needs, for example attending appointments for health assessments and visiting young people who have been admitted into hospital to ensure they continue to feel supported by New Horizon throughout.

The creation of a centralised Health Team which is equipped with the capacity and resources to foster trust and psychological safety among young people navigating the healthcare system has made a significant difference. This approach has enabled NHYC to address the often disjointed nature of existing processes, providing young people with support throughout, free from judgment.

The Clinical Lead has laid strong foundations with local services who can offer interventions that NHYC cannot provide. Having a dedicated person to focus on partnership working has been hugely beneficial in bridging the gap between voluntary and statutory services. In addition, advocacy work across the Health Team has been vital in helping the young people they work with to understand their healthcare rights. As part of this, a significant piece of work has been to support young people to improve their communication skills, so they have the tools available to voice their health needs and navigate the system effectively.

Older people

Our partnership with HACT, the National Lottery Community Fund, Clarion Futures and South Yorkshire Housing – the ‘Age Friendly’ Social Housing Programme – continued this year. The programme aims to improve outcomes for older people in communities, including social isolation and loneliness. 31 housing associations have engaged in the programme and 146 organisations have participated in local working groups. The second year of the programme has continued to focus and develop on the work in Bradford; Bournemouth, Christchurch and Poole (BCP); and Southwark.

As part of the programme, the Make it Happen micro grant has helped unlock new conversations with local residents and galvanize energy around a wide range of social connection activities. £4500 of grants have been allocated to each area. The provision of micro-grants has encouraged staff teams in the pilot areas to have new conversations with residents about what they like to do or would like to try. So far, nine micro grants have been allocated with an estimated 115 individuals have benefitted from the funded projects.

The programme has also seen the powerful impact of in person gatherings, for both residents and partners locally and how this goes a long way to building important bonds and trust that strengthen feelings of community. 19 community events that have taken place with 1236 older people engaged in these events and wider outreach activity across the local pilot area.

In addition to the coordinators’ activity across the three pilot areas, they were able to secure additional funds for a Financial Resilience Officer, funded by Independent Age, to further support older residents in Southwark. This additional resource has engaged 286 people with 68 provided with 121 support.

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

In all three pilot areas, residents’ voices have informed and guided the work. Their insights have been shared with the wider sector to help show how diverse the older resident population is and what they feel will help them to age well in their local communities and society at large. As a team and a partnership, the programme has reflected on the wider learning and developed an overview of the systems and practice learning that has emerged from this pilot:

Healthy relationships

Through our member Magenta Living, we were introduced to Tomorrow’s Women, a charity for women, run by women, offering support with a range of issues including domestic abuse, mental health, substance misuse, wellbeing & confidence, and social isolation. Magenta had identified a rise in domestic abuse across their communities and were keen for Fusion21 Foundation to support the organisation as they work in partnership with them, and it meets their community investment priorities.

Tomorrow’s Women wanted to create an online platform to house a six-week holistic and creative intervention that can help individuals affected by domestic abuse feel better supported, have greater understanding, feel not alone and empowered. This programme will enable them to offer their support to women further afield and who may not be able to come and access on site services, to ensure Domestic abuse support and awareness is available to all.

The platform is currently under development, and we look forward to its launch in 2024.

In addition, we are supporting Southern Housing Group’s charity, Fresh Visions, with their pilot project ‘Respect’ – a test bed for domestic abuse prevention in social housing.

This specialist area of work is exploring how best to support, educate and build skills that prevent domestic violence and abuse cycles.

The project is working with families and young people in Sussex and London. It is testing and developing preventative educational work alongside more in-depth one to one support over 12 months. The project works with targeted 'at risk' households, parents, young people and includes whole family support, linking to community partners such as Police, local NHS health and social services.

Key themes of the work include promoting healthy relationships, managing mental wellbeing and anger in young people/teens, adult behaviour patterns and identifying ‘red flag’ behaviour. The Respect project will develop best practice and produce a practical prevention ‘toolkit’ for wider use within the social housing sector.

So far, 30 young people and 17 adults have completed skills sessions, with 27 completing family coaching / counselling programmes. Nine adults have said their mental wellbeing has improved, with 12 reporting their confidence has increased and they are feeling less depressed and anxious. 37 young people reported that their confidence has increased.

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Health data

Prima Group has embarked on an exciting project that could significantly enhance the quality of healthcare and support services available to their tenants. A collaboration with Prima Group and Mersey Care NHS Foundation Trust, supported by our Foundation, has launched a project seeking to transform how Prima support customers by leveraging the power of data integration.

At its core, this project aims to securely integrate social housing data, encompassing living conditions, accessibility, and locality, into NHS health records. By doing so, they can identify patterns linking social housing conditions to various health outcomes. This integration will not only facilitate a more comprehensive understanding of tenants' health needs but also enable them to offer proactive support services tailored to individual circumstances.

The rationale behind this initiative is clear: the health of individuals is intricately linked to their living conditions. By proactively addressing potential health risks and concerns, we can create a healthier and more supportive community for all tenants. Examples of where data sharing can help could include, alerting social landlords when minor adaptations are needed for frail residents or where respiratory conditions may mean prioritising tenants' homes for energy efficiency upgrades to reduce the risk of damp and mould.

The project will be completed in the Autumn of 2024.

From John Ghader, Chief Executive of Prima Group

“Housing associations have a key role in reaching groups facing some of the biggest health inequalities and providing preventative support services to people in their homes. When we get this right, we see tenants maximise their independence and reduce demand on the health service. This exciting collaboration will help us do more of this, pre-empting when customers need changes made to their home and ensuring resources are targeted where they make the most impact, prioritising property interventions around preventative health management. “

Financial inclusion and resilience

Welfare rights

Last year, we worked with the Child Poverty Action Group (CPAG) to co-fund 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.

Since its launch in February 2023 the handbook has been viewed over 57,000 times and is used often by organisations such as; Citizens Advice branches, charities, law centres, housing associations, local authorities and NHS staff.

Food insecurity

We funded FareShare Midlands to expand their Community Meals Service pilot into the West Midlands. FareShare Midlands are the region’s largest food redistribution charity, sourcing good quality food that’s surplus to requirements from 360 food industry partners to redistribute to over 550 frontline charities and community groups.

The project was based in a commercial kitchen in Nottingham, where two chefs and a team of 25 volunteers create healthy, nutritious and delicious meals using surplus food. Meals are distributed to local charities, including social eating spaces and community cafes, to help feed people experiencing food insecurity, financial hardship and social isolation.

In the period April – July 2023, a total of 2,105 meals were redistributed in Birmingham city, made from 736KG of difficult-to-use surplus. 17 local charitable partners benefitted from the service and 840 people were supported with hot, nutritious meals.

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Healthy eating

We have continued to work with the Food Foundation this year to look at the impact that the financial insecurity has on nutrition, particularly on children. The cost-of-living crisis, with food prices remain at their highest levels for decades, is impacting on dietary quality, especially for lower income families with just under half of households experiencing food insecurity reportedly buying less fruit and vegetables, dairy and oily fish.

As a response to the crisis, The Food Foundation launched the Kids Food Guarantee (KFG) a set of actions which they think retailers (and manufacturers) should have in place as a minimum to support low income families to access and afford healthy staples. This includes the following areas: multibuys and price promotion deals, fruit and vegetables, staple carbohydrates, first infant formula, children’s lunchboxes, yogurt and cereals, and the Healthy Start scheme.

As part of the work, the Food Foundation launched the Kids Food Guarantee Dashboard on their website to publish the tracking of retailer progress. Their findings over the period were shared with Food Standards Agency, Food Standards Scotland, Defra and Department for Health and Social Care (DHSC)and their work on particular areas (eg. children’s packed lunches) received a range of press coverage.

There have been several successes in terms of retailer’s commitments, demonstrating that the data is a powerful tool for holding retailers to account and driving action:

The Food Foundation will be releasing a briefing in May 2024 to summarise their findings, looking at retailer progress and performance.

Fuel poverty

Last year, Clarion launched a responsive retrofit pilot project in a co-ordinated response to the challenges their residents are facing with fuel poverty. They are clear that to have meaningful impact on fuel poverty they need to simultaneously tackle the underlying issues that cause fuel it: stock condition, poverty, and behaviour.

Through their Responsive Retrofit pilot, Clarion made outbound calls to 354 households in the Midlands who are at risk of fuel poverty due to living energy inefficient properties. 85% of those who they made contact with engaged in basic guidance and 99 households took up the offer of an in-home assessment. By the end of 2023/24 46 assessments had been completed and 276 energy efficiency measures installed.

Our funding has supported National Energy Action (NEA) to independently evaluate the project in order to influence the longer-term implementation of Clarion’s Fuel Poverty Strategy. We look forward to receiving the final report in 2024.

Furniture poverty

Curo, a housing association based in Bath, were keen to test the idea of furnished tenancy provision with their tenants through a 12-month pilot in Bath and North East Somerset. We match funded the project, following a successful application by Curo to a local charitable foundation. The pilot offered furnished tenancies to new customers in one- or two-bedroom properties, targeting single people and care leavers moving into general needs from temporary accommodation or homelessness.

In total, 16 furnished tenancies were set up, with all of the tenancies sustained and no tenant falling into rent arrears. Six customers completed an evaluation – the overall satisfaction rate was 4.5 out of 5 and all of them reported feeling safer and settled in their environment due to the additional provision.

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Appliance poverty

The report we co-funded with the Association of Charitable Organisations (ACO) was launched in June. ‘ More than making do: understanding the economic impact of essential household appliances ’ highlighted the scale of appliance poverty while shining a spotlight on the UK’s network of benevolent charities which provide vital funds to help plug the gap in support for those unable to gain access to local authority support.

The report, which included analysis from Pro Bono Economics, had considerable media coverage, including The Times and ITV. It was shortlisted for the ‘Best Collaboration’ award at the ACO conference and received a special commendation from the judges.

Donal Watkin, Chief Executive of the Association of Charitable Organisations, said:

“We’re proud to be connected with this report. It reflects a strong collaboration between a group of organisations that play an active role in supporting individuals and families in financial crisis. The end product is a set of tangible findings that will contribute not just to how charities effectively measure the impact of their activities, but also make an important broader contribution to the debate around how we work to reduce the prevalence of appliance poverty in the UK.”

Children and young people

The Hackney Family Centre was launched last year to provide a ‘Baby Bank’ facility next to a Guinness housing estate. In partnership with The Guinness Partnership, it is a collaboration of three charities: Little Village which runs a network of baby banks across London; Boiler House Spaces which manages community spaces in Hackney; and Sal’s Shoes, which provides good quality second-hand shoes and other essentials to those who need them.

This year, the centre supported 172 families, including 259 children under five.

The ‘Hometruths House’ pilot with Clarion Housing Group supported 206 young people this year. The early intervention project supports new young tenants to effectively navigate and sustain their first tenancy, reducing rent arrears and eviction rates amongst 18–30 year old residents. The project will deliver a virtual training session and an interactive website, alongside additional follow-up support and advice available for those who need it.

The programme covers topics including rights and responsibilities, setting up bills and managing money, getting involved in community activities, damp and mould prevention, cooking on a budget and simple DIY. Broadband access is provided through a three month MiFi subscription to ensure digital exclusion does not affect participation. Upon completion of the programme, young residents receive a £70 supermarket voucher to get them off to a flying start. Since July 2023, Clarion have introduced free bi-monthly cook-along sessions with their partner Cracking Good Food to enable young people to learn to cook nutritious, delicious, yet affordable meals.

All 206 participants reported improved mental health, confidence and control of their lives.

Financial resilience in communities

We have collaborated with Royal Borough of Kensington and Chelsea (RBKC) on two projects to support their priority of financial resilience in communities.

Firstly, we co-funded RBKC to work in partnership with St Giles Trust to create a food pantry in RBKC’s Kensal Resource Centre (KRC). The holistic community support ‘hub’ was launched in March and includes food poverty support, financial inclusion support and advice, digital inclusion and digital skills training, and other educational services – such as cooking classes.

Secondly, we are supporting RBKC to improve financial resilience in the Lancaster West estate. The Lancaster West Neighbourhood Team (LWNT) was formally established in April 2018, in response to the Grenfell Tower Tragedy. The LWNT wanted to work with local service providers to research and create pathways for residents to improve financial resilience by reducing debt, rent arrears, additional financial pressure whilst simultaneously increasing education and independence, ultimately preventing the risk of homelessness.

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

As such, we have co-funded an extended pilot within LWNT, to inform their longer-term approach, building a new model of integrated, holistic local housing services, informing process, systems and outputs that could support residents to reduce financial instability and prevent homelessness.

Although in its early stages, the project has had 19 residents referred onto the project, with 13 of them being supported. Two residents have been helped with decreased rent arrears / lower debts, 11 residents provided with support with households’ costs/savings (eg. grant applications, energy bills, changing providers).

Money mentoring

In partnership with Southern Housing, we co-funded a new Money and Wellbeing Project in London, trialling a holistic combination of money mentoring and health and wellbeing interventions to improve the financial resilience and general health of social housing tenants.

This will in turn reduce residents’ chances of falling into an acute financial crisis and avoid them having to rely on emergency financial inclusion and hardship support from their landlord and/or other agencies. The purpose of the project will be to effect long term and sustainable change and reduce participant reliance on short-term emergency support.

A Money Mentor and Wellbeing Coach are working together to build resilience among residents to increase the chances of them dealing more effectively with financial crises. The project offers 1-2-1 and group activities to cover a wide range of topics based on money and wellbeing. Volunteers within the community will be recruited and trained as Mental Health First Aiders and Money Champions, so they can cascade what they have learned to others who may not directly access the service provided.

So far, 67 people have been supported on the programme, with 14 group sessions run.

Evaluation of cost-of-living interventions

Sovereign created a £1.5m per annum Customer Support Fund (CSF) programme in 2022 running over two years until Spring 2024. The CSF comprises a range of programmes and interventions that will improve the financial wellbeing of Sovereign residents. It was developed in response to the cost-of-living crisis and the disproportionate effect it was having on vulnerable residents. The CSF is made up of a range of both new and existing interventions and services, split into crisis or proactive support.

The Foundation has supported Sovereign to comprehensively evaluate the impact of the cost of living interventions from the CSF. It will be carried out by a reputable external organisation who specialise in financial inclusion and tenancy support initiatives, along with evaluating programmes that tackle poverty and help people to sustain tenancies. The evaluation report is due in early 2025.

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Cost of Living Hardship Fund

This year, the Foundation dedicated £1 million to a Cost-of-Living Hardship Fund, benefiting 70 Fusion21 members and their communities so far in 2023-24, with investment set to continue into 2024-25.

Our housing association members tell us that the cost-of-living challenges in communities will continue to have a considerable impact for years to come. The resilience of individuals, communities, and the voluntary, community and social enterprise (VCSE) sector is low with austerity, the pandemic, inflation, and changes to the funding landscape having had a deep impact.

Our members also tell us that their support services (particularly financial inclusion services) are seeing a significant increase in demand. New customers, many of whom are in employment, are tipping into poverty and needing additional support (for example, food banks) for the first time due to in-work poverty.

Based on feedback from our members and wider research, our response has been twofold to directly impact the challenges facing our members in their communities. We have worked with partners to assist individuals needing financial support as well as VCSE organisations within their communities that needed strategy support.

· VCSE Sector Resilience Programme

We teamed up with Clarion Futures and Places for People to co-fund a new programme providing strategy support and core cost grants to VCSE organisations in communities across England.

This programme supports community based VCSE services through targeted funding and capacity building. These services are key partners to housing associations as they provide vital support to individuals and families in their local neighbourhoods – from financial advice to sports activities, mental health and wellbeing and youth services and skills development.

The programme also delivers strategic business advice so that the VCSE organisations are equipped to face current and future challenges, ensuring viability for the longer term.

We initially pledged £500,000 and have made another £300,000 available to help fund an extension to the project.

To date, 101 VCSE organisations have been referred for specialist charity consultant support on income generation, business and strategic planning, and governance. 47 of those organisations have also received funding to support their core costs.

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

The programme is undergoing an external evaluation by Rocket Science. Interim findings show the programme has positively impacted governance structures, leadership, networking, and the efficiency of the organisations. Participation has led to empowerment and confidence in organisations, and there are early examples of significant wins from other funders, meaning that capacity building support has contributed to making them more attractive to funders. We look forward to the full report which is due in September 2024.

· HACT 2023 Fuel Fund

We co-funded the HACT 2023 Fuel Fund, a new wave of fuel vouchers providing social housing residents with support beyond the cold winters. We provided £200,000 to a fund for residents of Housing Associations in England, Wales and Northern Ireland, which allowed housing associations to access fuel vouchers for residents who are struggling to pay their energy bills currently.

Over a six week period between May and June 2023 the fund distributed over £339,330 to 1,568 households via a network of social housing providers. The average value of support received by household was just over £216.

The scheme was so successful that we committed an additional £300,000 from our mainstream budget this year to support a new Fuel Fund that will launch in April 2024.

Community voices

Tenant’s voices

We were sad to be informed that the TAROE Trust had to take the tough decision to close the charity in December. A combination of factors, including the unfavourable operating conditions which many VCSE organisations are currently facing, led to this decision.

Fusion21 Foundation remains committed to supporting the fantastic legacy of the TAROE Trust. In the spirit of this, we are working with representatives across the housing sector through their steering group ‘A Voice for Tenants’ and have agreed to co-fund research into how tenants can have greater influence on national policymaking and how this could be funded over the long term. The findings are due in summer 2024.

Asset Based Community Development (ABCD)

The need for social housing providers to truly understand who their tenants are has never been more important, with the Social Housing Act 2023 adding emphasis to this. Understanding the needs, challenges and issues faced by tenants means that landlords can deliver services that address those needs and improve their quality of life as well as playing a significant positive role in their communities.

With this in mind, we co-funded a detailed ABCD mapping exercise with ForHousing, specifically focussing on their local communities within Salford, Oldham and Knowsley. The project supported ForHousing to understand who their tenants are, the communities they live in and how best to work alongside communities and tenants.

Key outputs included a detailed report of the findings (‘What Matters to Us’) and an asset map for each area that reflected what tenants said meant most to them in terms of both the strengths and assets but also the issues that generated the most passion. These outputs were shared with project steering groups, Community Voice groups and ForHousing’s Customer Committee for their feedback, which was incorporated into a final report.

Toria Buzza, Head of Communities and Tenant Involvement at ForHousing, said: “We are really excited about the ‘understanding our communities’ research. By using asset based approaches we have engaged with people who we don’t normally hear from, and are now working towards developing new relationships and co-producing solutions that we wouldn’t have ever thought of on our own. Thank you to the Fusion21 Foundation for supporting us to kickstart this essential piece of work.”

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Community researchers

We have funded Birmingham Voluntary Service Council (BVSC) to develop a bank of ‘community researchers. They have co-created a comprehensive course and have recruited and trained 17 researchers from the community. This work will help the infrastructure organisation to achieve their aim of developing a ‘Community Research Hub’ in Birmingham, alongside the longer-term ambition for BVSC to develop a wider training offer to the sector.

The co-creation of accredited training provides a range of exciting opportunities for people from communities across Birmingham to develop skills and expertise in community research, opening new opportunities for employment in the future as paid freelance Community Researchers. A wider accredited training offer will provide opportunities for skills development in a range of topics for the VCFSE workforce. This will make affordable training opportunities available to small-grass roots organisations, and will also target organisations led by, and supporting, people from Black, Asian and minority ethnic groups and other marginalised communities.

The trainees will be mentored through their fieldwork and will be creating two research report on two topics :

  1. Children and families’ services, parental support and links into education and information.

  2. Growing old in the West Midlands. What are people’s experiences so far? What ideas do they have to make the city a better place to grow old?

Community Researchers are often ideally placed to explore issues that are happening in their local communities, and many of the projects involving community researchers are focused on broad issues of health and wellbeing. BVSC’s links with Public Health, the Local Authority and wider health partners means that they are extremely well placed to facilitate activity in this area; building capacity within communities, to elevate their collective voice, and be active partners in addressing challenges.

Partnering as a thought leader

Homes UK 2023

The Foundation hosted a panel at Homes UK 2023 to discuss ‘Supporting tenants through the cost-of-living crisis’. We were delighted to be joined on stage by our partners from SNG, Peabody and HACT. The session was well attended, with the audience enjoying an informative, if stark, reflection on the impact of the crisis in communities and efforts of the housing sector to mitigate this.

Centre of Excellence in Community Investment (CECI) Conference

As joint funder of the Centre, we were delighted to be a sponsor of HACT’s CECI conference in Birmingham in September. This was the Centre’s first ‘in person’ event for some time and was warmly embraced by the participants in terms of attendance and enthusiasm.

Community investment experts from across the country came together to discuss ‘Working in place: the opportunities, challenges and future of delivering excellence in community investment’. As part of the conference, action-based workshops were held around six topics to think how innovative collaboration can birth new impactful solutions. Topics included food insecurity, being an effective partner for Black and Minority Ethnic led community organisations; social action in intergenerational activities; collaboration in community centres; health inequalities; digital inclusion.

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Social investment

Recovery Loan Fund (RLF)

As a Founding Investor, we are delighted to report that since its inception in December 2023, 47 loans have been approved by Social Investment Business for the Recovery Loan Fund. By March 2024, grants had been approved to 14 black and minority ethnicity led customers (alongside RLF loans) comprising £1.3m in unrestricted grants and a further £57k (to seven of the customers) of restricted grants, under the Flexible Finance programme. The proportion of black and minoritised ethnicity led organisations funded by Recovery Loan Fund is 29% compared to just 4% for its predecessor fund (Resilience and Recovery Loan Fund), significantly above the 14% that was targeted.

The fund is reaching a diverse range of organisations working with beneficiaries including people living in poverty or are financially excluded, those experiencing long term unemployment, vulnerable young people and children, and people with long-term health conditions. Many of these groups have been the hardest hit in society by the pandemic and cost of living crisis. The Index of Multiple Deprivation (IMD) based on delivery areas of the investees has an average of 3.34 with c. 66% of investments in the 30% most deprived geographies. The Index of Multiple Deprivation ranges from 1 being the 10% most deprived areas to 10 being the 10% least deprived areas in England.

Of the 23 organisations funded from 1st April 2023 to 31st March 2024:

As the first phase of the RLF closed, a second funding round was launched. This secured a further £6.5m external capital including £2.5m from new funders Ceniarth and Clothworkers to enable the RLF to continue to support charities and social enterprises that are improving people’s lives or the environment they live in.

Ambitions for the future

We have been delighted by the trajectory the Foundation has taken in recent years, not just in terms of level of spend but also in the way it’s responded swiftly to the various unprecedented national and global challenges that have come our way. These crises help inform our thinking and our future approaches. We want to be known as the funder of choice. One that is flexible, responsive and helps shape positive connections, ideas and networks as well as funds.

Being recognised as an IVAR ‘Flexible Funder’ this year is just the start. We are on a journey of continuous improvement and look forward to another year of connecting with other Foundations to share experiences and drive best practice.

The partnerships we created through our targeted Cost of Living Hardship Fund this year were significant, particularly in terms of the strong collaboration through the VCSE Sector Resilience Programme. As early indications from the external evaluation have been so positive, we will extend the programme into 2024/25 and hope to explore future funding opportunities with other partners to support its longer-term future. We will certainly be using the learning from this programme to form more strategic impactful investments for the future. We are particularly keen to understand more about the infrastructure of the VCSE sector across the country, and how we can best support this important work, which significantly contributes to the objectives of two of our key members; social housing providers and local government.

In addition, we want to continue to focus some investment on ‘Tenant Voice’ activities, to support the legacy of TAROE Trust’s excellent work. We will use the research we have co-funded this year (due to be published in July 2024) to plan our next steps in this area.

Our three funding priorities; health & wellbeing; employment & skills; financial inclusion & resilience, are now firmly established. It is becoming increasingly clear that we need to consider what role ‘climate’ could play in our investment portfolio. We will focus on this in 2024/25, to map the funding landscape in this area and shape our thinking so we understand what added value we can bring to this space in terms of grant provision and social investment.

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Fusion21 Ltd

Fusion21 Ltd, company number 05090266, is a company limited by guarantee (without share capital) whose sole member (and parent) is the Fusion21 Foundation. The organisation is the managing agent of the Fusion21 Members Consortium and focuses on providing procurement and social value services to 1121 members of this Fusion21 Consortium. It is also a social enterprise specialising in efficient and impactful public sector procurement through a framework approach with social value running through everything we do. At its core, the organisation’s ethos is a shared desire to be an organisation for positive change.

The business is well established with a 21-year history, and since its inception, has helped members to compliantly procure over £2.9bn, delivered over £380m in efficiency savings and created over £200m in social impact.

In 2023-24 Fusion21 supported members to procure over £550m of works, generating over £38m in procurement efficiency savings and over £29m in social impact. This included generating over 2,100 employment opportunities and creating training opportunities for over 2,000 people. The organisation continues to welcome new members from social housing, as well as members from education, health, and other areas of the public sector.

Four frameworks were renewed during the period, worth a total over £1.7b in value and are a direct result of our inclusive approach to developing and updating our offer, these included, Building Improvement Works, Heating, Renewables & Electrical and Refurbishment, Construction, New Build and Modular Building Works and for the benefit of our members, Fusion21 Ltd continued to support with procurement and social value services. We were particularly delighted to continue our partnership 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.

Review of the financial position

The consolidated Statement of Financial Position shows total group income for the year was £12,463,945 (2023: £8,513,866). Total income relates predominantly to other trading activities which is generated mostly by the trading subsidiary, Fusion 21 Limited, 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 2024 a donation was paid to the foundation of £3,350,000 (2023: £3,200,000). Further donations were made in respect of the year ended 31 March 2024 totaling £4,205,124 with the amounts being paid post year end.

After taking in account the total expenses of £7,854,095 (2023: £7,383,844), investment gains of £326,791 (2023: £nil) and other losses of £187,000 (2023: £87,000) the group recorded a net surplus for the year of £4,749,641 (2023: £1,043,021) and had total carried forward funds of £18,556,550 (2023: £13,806,908).

Of the total group funds carried forward £7,911,397 (2023: £5,650,031) relate to reserves held within the trading subsidiary Fusion 21 Limited. The Trustees have chosen to retain such funds within Fusion 21 Limited 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 Fusion 21 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 35.

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

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 2024 saw total group funds increase to £18,556,550 (2023: £13,806,909). The current year donation from the trading subsidiary, Fusion 21 Ltd, of £3,350,000 will look to be expended on charitable activities in 2024/25 and beyond in line with the foundation’s future plans and strategy.

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Structure, governance and management

The Fusion 21 group consists of the following entities:

Fusion 21 Foundation.

Fusion 21 Ltd.

Fusion 21 Asset Management Ltd

CoreHaus Ltd

Fusion 21 Trading Ltd

Fusion 21 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 Fusion 21 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 Fusion 21 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.

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

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.

Fusion21’s executive (the Executive 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, Executive Director of Operations and Executive 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 one individual who is 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.

Public benefit

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 set. The Trustees have taken a review of The Foundation’s public benefit to satisfy 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.

Objects

The objects of the Foundation remain the same as the previous year and can be found in the table below.

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

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Staff Awards

At our annual staff conference in December, we took time to recognise the achievements of some of our colleagues over the year. Voted for by colleagues, the awards shine a spotlight on three areas of achievement that are integral to Fusion21’s success. The awards were presented by John Beckford, Non-Executive Director at Fusion21 Ltd.

Mission Possible Award

This award recognises talented and hardworking employees that go above and beyond to achieve just about anything in their role. Peter Beck, Framework Manager (Building Safety & Compliance) won the award for his professionalism, leadership and nurturing approach to his team, and Megan Railes (Digital Marketing Manager) was runner up for her work leading the digital transformation of our marketing.

Rising Star Award

The rising star award recognises individuals who are emerging leaders and have shown exceptional growth in their career so far. Lauren Banner (Social Value Manager) was the winner of this award for her maturity and ability to develop excellent relationships, her 'can do attitude' and thoughtful approach to her role. Abbie Barton (Procurement Assistant) was runner up for her willingness to go above and beyond her role which was immensely valued by colleagues.

Got Your Back Award

This award looks to recognise talented and hardworking individuals who are the ultimate team player and demonstrate ‘having your back’ no matter what. Julie Smith (Receptionist) was this year’s recipient for being the first to support colleagues; always willing to go above and beyond, creating such a friendly, welcoming and sunny atmosphere when people come to the office. Peter Higgins (Management Accountant) was recognised for aways being there for people when they need support who was described as the ultimate team player by his colleagues.

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

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.

Business plan spotlight:

We are delighted to share that we’ve retained our gold level Investors in People (IIP) accreditation, recognising our commitment to investing in the development of our employees. IIP is an international standard for people management, recognising organisations who provide exceptional leadership and support to enable staff to thrive.

To achieve the accreditation, we underwent a rigorous evaluation of our people management practices, including our leadership, strategy, learning and development and performance management. Information was gathered by IIP assessors and included feedback from our employees.

Feedback from IIP highlighted that Fusion21 continues to be a fantastic place to work, performing highly in areas of leading and inspiring people; living our values; continuous improvement and creating sustainable success.

IIP also recognised the positive impact we are having on sector and community initiatives year on year, delivering social value you can see through procurement with purpose, in addition to the investments made through the Fusion21 Foundation.

Charitable objects

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:

(a) the relief of financial hardship,

(b) the relief of unemployment,

(c) the advancement of education, training or retraining, particularly among unemployed people and offenders, and providing unemployed people and offenders with experience,

(d) the provision of financial assistance, technical assistance or business advice or consultancy in order to provide training and employment opportunities for unemployed people in cases of financial or other charitable need through help (i) in setting up their own business, or (ii) to existing businesses,

(e) the creation of training and employment opportunities by the provision of workspace, buildings, and/or land for use on favourable terms,

(f) the improvement of housing in the public sector or in charitable ownership provided that such power shall not extend to relieving any local authorities or other bodies of a statutory duty to provide or improve housing,

(g) the protection or conservation of the environment,

(h) the advancement of education in the use of information technology by the provision of facilities and resources in particular for those who by virtue of their age or social or economic circumstances would not have otherwise have access to information technology,

(i) the promotion of social inclusion by preventing people from becoming socially excluded, relieving the needs of those people who are socially excluded and assisting them to integrate into society (socially excluded means being excluded from society, or parts of society, as a result of one of more of the following factors: unemployment; financial hardship; youth or old age; ill health (physical or mental); substance abuse or dependency including alcohol and drugs; discrimination on the grounds of sex, race, disability, ethnic origin, religion, belief, creed, sexual orientation or gender re-assignment; poor educational or skills attainment; relationship and family breakdown; poor housing (that is housing that does not meet basic habitable standards; crime (either as a victim of crime or as an offender rehabilitating into society)),

(j) such other means as may from time to time be determined subject to the prior written consent of the charity commissioners for England and wales

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 FLrtur8 Plans and Obl•ctlv•s Our focus in 2024-25 is to continue to build upon the successes of ihis year. focusing on supporting our members through procurement. social value and our Foundathon activty. Planning is 81ready underway ft>r the implementakn'on of the Procurefflent Act 2023 as we work to ensure 8 srnooth transrtion to the new regulations. Our locus will also be on renewing our L￿s, Materials and Supply, Worf(place and Facilities Management, Building Safety and Consultants frameworks in the coming year. In preparation for the anticipated introduction of Wave 3 Decarbonisation ftjnding. we're delighted to be launching our Decarbonisation Hub which provide dedicated support and resources lo our members in prepar8tion for the fundin9. We'll also be exhibiting at Housing 2024. Housing and Communitses Summit, Procurex, HOMES UK 2024, Education Estates as well as a number of other events Ihroughoul the year. The Foundation will continue to support the Cost•ofliving Hardship Fund collaboration as well 86 exploring opportunits'es 10 5UPPOrt the Tenant Voice in housing. Audltor In accordance with the company's artides. a resolution proposing Ihat Mitchell Charfesworth (Audrtl Limrted be reappointed as auditor ol the company wiu btr pul 81 a Gtrneral Meeting. 018cIo8ur• of Infomiatlon to audrtor Each of the trustees has confirmed th8t there is no Info￿￿￿￿on ol whth they are awa￿ which is relevant lo the audit, bul of which the 8udilor 15 unaware. They have lurlher Confi￿e[l that they have taken appropriate steps lo id&ntify such r$levanl inlormalion and io &slablb$h thal lh¢ audilor 1$ awaf¢ of such inlomation. Th¥ Iruslees. report was appfoved by the 6o•rd of Trustees. Mr E Livesey Tru$i¢o Mr C E C Murray Tru¥t*• 12112124 Datè.. 19-

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

FOR THE YEAR ENDED 31 MARCH 2024

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 2024 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 Mitchell Charlesworth (Audit) Limited

18/12/2024

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

Accountants Statutory Auditor

Suite 5.1 Tempest 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 2024

Unrestricted Unrestricted
funds funds
(Restated)
2024 2023
Notes £ £
Income from:
Donations and legacies 3 4,791 22,129
Other trading activities 4 12,194,098 8,406,379
Investments 5 265,056 85,358
Total income 12,463,945 8,513,866
Expenditure on:
Raising funds 6 6,310,933 6,871,014
Charitable activities 7 1,510,114 628,449
Other 14 33,048 (115,619)
Total expenditure 7,854,095 7,383,844
Net gains/(losses) on investments 13 326,791 -
Net income 4,936,641 1,130,022
Other recognised gains and losses
Actuarial loss on defined benefit pension schemes (187,000) (87,000)
Net movement in funds 4,749,641 1,043,022
Fund balances at 1 April 2023 13,806,909 12,763,887
Fund balances at 31 March 2024 18,556,550 13,806,909
Net movement in funds for the financial year is attributable to:
- Parent charity 4,984,946 1,329,005
- Non controlling interest (235,305) (285,983)
4,749,641 1,043,022

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

FOR THE YEAR ENDED 31 MARCH 2024

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 AT31 MARCH 2024 2024 2023 Notes Flx•d assèts Intangible assets Tangible assets Inve51menl properties Investments 16 129.998 1,055,671 1,455.0(X) 8,790.214 102.795 874,386 19 21 3,199,055 11,430.883 4,176,238 Current a8¥ets Stocks Debtors Cash at bank and in hand 24 756.293 2,571.211 7,970.753 4,076,840 4.835.457 8.912.297 11,298.257 Cr•dltor8'. amounts falllng du• vAthln ono year 11,512,817) 11,306,243) Net current assets 7.399.680 9,992.014 Total a8Jet8 le8• current Ilabllllle• 18.830.563 14,168,250 ¢r•dltors'. •mounts f•lllng due •ft•r mor• than on• yéar 115,OCw)I 1189,1881 Provl•lon8 lor Ilabllltl•8 32 12S9,0131 1172,1541 Net assets 18,556,550 13,806,908 Incom• lund8 Unrestricted funds Designated fijnds General unrestricted fvnds 3.642,034 15.550,670 3,642,034 10,565,723 Funds attributable to parent charity Non controlling inlerest 19,192,704 1636.1541 14,207,757 1400,8491 18.556.550 13,806,908 12112124 The financial statement5 were approved by the Trustees on ....................... . Mr E Livesey Trustee Company Reglstratlon No. 7998339 Mrc E C Murray Tru#ts• -26-

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE CHARITY BALANCE SHEET AS AT31 MARCH 2024 2024 2023 Notes Flx•d assèts Intangible assets Investment properties Inveslrnenls 17 7.407 480,000 8,790.214 21 3,163,524 9,277,621 3,163,524 Currnnt a83•t8 Debtors Cash at bank and in hand 1,833 836,899 2,197 4,666,088 638.732 4,868.285 Cr•dltors'. amounts lalllng du• vAthln on• y•ar 19,1681 {53,2231 Net cu￿nt assets 829.584 4,61 5,082 Total a88et8 le88 curr•nt Ilabllllle8 9.￿7.185 7,778.588 Incom• funds nr Designated funds G¥n¢ral unreslri¢led fund$ 3.642.034 6,265,151 3,642.034 4,136,552 9,￿7,185 7,778,588 9,9)7,185 7,778,588 As pemiitted by s408 Companies Act 20C6, the charitable ccompany has not presented rts own statement of rinancial activity and related notes. The charitable compa￿'S net income for the year was £2,128,599 12023.. £2,615.8991 12112124 The financial statement5 were approved by the Trustees on ....... .............. Mr E Livesey Trustee Mrc E C Murray Trustee Company Registration No. 7998339 -27_

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2024

2024 2023
Notes £ £ £ £
Cash flows from operating activities
Cash generated from operations 39 3,888,979 1,857,482
Interest paid (15,694) (10,979)
Income taxes refunded / (Paid) - (177,952)
3,873,285 1,668,551
Investing activities
Purchase of intangible assets (86,391) -
Purchase of tangible fixed assets (254,447) (45,574)
Purchase of investments (6,754,899) (2,789,953)
Repayment of fixed asset loans 35,531 -
Investment income received 265,055 85,358
Net cash used in investing activities (6,795,151) (2,750,169)
Financing activities
Repayment of bank loans (213,430) (51,263)
Net cash used in financing activities (213,430) (51,263)
Net decrease in cash and cash equivalents (3,135,296) (1,132,881)
Cash and cash equivalents at beginning of year 7,970,753 9,103,634
Cash and cash equivalents at end of year 4,835,457 7,970,753

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

FOR THE YEAR ENDED 31 MARCH 2024

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 2024

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

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7 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 2024

1 Accounting policies

(continued)

1.8 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.

1.9 Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

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.

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting policies

(continued)

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.

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 2024

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

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

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 2024

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 2024

(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 Donations and legacies

**Unrestricted ** Unrestricted
funds funds
2024 2023
£ £
Government grants 4,791 22,129
4 Other trading activities
**Unrestricted ** Unrestricted
funds funds
2024 2023
£ £
Professional service and training contracts 12,194,098 8,406,379

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

FOR THE YEAR ENDED 31 MARCH 2024

5 Investments

**Unrestricted ** Unrestricted
funds funds
2024 2023
£ £
Rental income 56,765 50,300
Interest receivable 208,291 35,058
265,056 85,358

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

FOR THE YEAR ENDED 31 MARCH 2024

6 Raising funds

Unrestricted Unrestricted
funds funds
(Restated)
2024 2023
£ £
Trading costs
Other trading activities 1,937,675 1,996,804
Staff costs 4,221,847 3,864,322
Depreciation and amortisation 129,473 146,658
Share of support and governance costs (see note 9) 21,938 863,230
Trading costs 6,310,933 6,871,014
6,310,933 6,871,014

7 Charitable activities

Unrestricted
Unrestricted
funds funds
2024 2023
(restated)
£ £
Staff costs 84,621 106,946
Depreciation and impairment 2,469 -
87,090 106,946
Grant funding of activities (see note 8) 1,376,671 415,464
Share of support costs (see note 9) 11,722 24,803
Share of governance costs (see note 9) 34,631 81,236
1,510,114 628,449

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

FOR THE YEAR ENDED 31 MARCH 2024

8 Grants payable

Grants payable
Unrestricted Unrestricted
funds funds
2024 2023
£ £
Mainstream grants programme:
Association of Charitable Organisations 2,000 8,000
Birmingham Voluntary Service Council 16,175 -
The Boiler House Community Space 11,250 7,500
Bus in Community - 10,000
Child Poverty Action Group 1,000 29,000
Clarion Futures - Hometruths House 4,000 -
Curo Places Ltd 20,000 -
FareShare Midlands 14,558 -
Food Foundation - 15,000
ForHousing 33,000 -
Fresh Visions 28,000 -
Furniture Resource - 25,000
Hackney Family Centre - 2,500
Housing Associations' Charitable Trust (HACT) 455,000 37,500
Longleigh Foundation 8,050 -
National Energy 12,000 22,000
New Horizon Youth 16,975 26,462
One Knowsley - 52,494
Oneside Youth Zones - 41,255
Prima Housing Group 30,000 -
Royal Borough of Kensington and Chelsea 22,982 -
Shared Lives Plus - 6,253
Southern Housing Group 7,500 -
Sovereign Housing Association 8,000 -
Taroe Trust - 60,000
The Housing Association - 22,500
The Princes Trust - 50,000
Tomorrow's Women Wirral 10,000 -
Torus Foundation 27,361 -
727,851 415,464
Cost of Living Hardship Fund:
Clarion Futures - VSCE Sector Resilience Programme 503,820 -
The Housing Association 200,000 -
703,820 -
Total grants distributed 1,431,671 415,464

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

FOR THE YEAR ENDED 31 MARCH 2024

8 Grants payable

(continued)

Social Investment Fund:
Power to Change
Grants returned:
Taroe Trust Limited
Total grants to institutions
Support costs
Impairment
Office costs
Travel and subsistence
Computer & software
costs
Postage
Marketing
Audit fee of the parent
charity
Accountancy
Legal and professional
Analysed between
Trading
Charitable activities		 Support
costs
Governance
costs
£
£
-
-
3,000
-
7,974
-
628
-
85
-
35
-
-
15,225
-
15,306
-
26,038
11,722
56,569
-
21,938
11,722
34,631
11,722
56,569		 5,000
5,000
(60,000)
(60,000)
1,376,671
2024Support costs Governance
costs
£
£
£
-
842,625
-
3,000
-
-
7,974
17,702
-
628
740
-
85
88
-
35
6,273
-
15,225
-
17,250
15,306
-
11,335
26,038
-
73,256
68,291
867,428
101,841
21,938
842,625
20,605
46,353
24,803
81,236
68,291
867,428
101,841		 -
-
-
-
415,464
2023
£
842,625
-
17,702
740
88
6,273
17,250
11,335
73,256
969,269
863,230
106,039
969,269

9 Support costs

Support and governance costs associated with the parent charity have been allocated to charitable activities. Costs associated with the subsidiaries have been allocate to trading activities.

10 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year (2023 - no remuneration paid to trustees).

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

FOR THE YEAR ENDED 31 MARCH 2024

11 Auditor's remuneration

Fees payable to the charity's auditor and associates:
Audit of the charity's annual accounts
Other services to the group
- Audit of the charity's subsidiaries
Total audit fees
Non-audit services
All other non-audit services
12
Employees		 2024
£
4,725
10,500
15,225
15,306		 2023
£
4,500
12,750
17,250
11,335

The average monthly number of employees during the year was:

Management
Client facing, adminstration and support
Total
Employment costs
Wages and salaries
Social security costs
Other pension costs
The number of employees whose annual remuneration was more than £60,000
is as follows:
£60,000 - £70,000
£70,001 - £80,000
£80,001 - £90,000
£90,001 - £100,000
£110,001 - £120,000
£140,001 - £150,000
£150,001 - £160,000
£160,001 - £170,000		 2024
Number
10
62
72
2024
£
3,792,117
408,734
105,617
4,306,468
2024
Number
6
3
2
1
2
1
1
1		 2023
Number
6
64
70
2023
£
3,438,506
364,832
167,930
3,971,268
2023
Number
7
3
-
1
2
2
1
-

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

FOR THE YEAR ENDED 31 MARCH 2024

13 Net gains/(losses) on investments

Unrestricted Total
funds
2024 2023
£ £
Revaluation of investment properties 326,791 -
14 Other
Unrestricted Unrestricted
funds funds
2024 2023
Taxation 33,048 (115,619)
33,048 (115,619)

15 Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in statement of financial activities:

2024 2023
£ £
In respect of:
Goodwill - 842,625

In the prior year the directors of Fusion 21 Ltd reviewed and impaired its investment in the subsidiary company, CoreHaus Ltd. As such, the goodwill in relation to CoreHaus Ltd was 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 2024

16 Intangible fixed assets Group

Cost
At 1 April 2023
Additions - separately acquired
At 31 March 2024
Amortisation and impairment
At 1 April 2023
Amortisation charged for the year
At 31 March 2024
Carrying amount
At 31 March 2024
At 31 March 2023		 Goodwill
£
951,389
-
951,389
951,389
-
951,389
-
-		 Software
Development
costs
£
£
50,405
187,122
86,391
-
136,796
187,122
41,170
93,562
12,408
46,780
53,578
140,342
83,218
46,780
9,235
93,560		 Total
£
1,188,916
86,391
1,275,307
1,086,121
59,188
1,145,309
129,998
102,795

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, which was fully impaired in the prior year.

During the current year, Fusion 21 Ltd acquired a further 10.7% of the share capital, No goodwill has been included for the acquired shares.

17 Intangible fixed assets Charity

Cost
At 1 April 2023
Additions - separately acquired
At 31 March 2024
Amortisation and impairment
At 1 April 2023
Amortisation charged for the year
At 31 March 2024
Carrying amount
At 31 March 2024
At 31 March 2023		 Software
£
-
9,876
9,876
-
2,469
2,469
7,407
-

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

18
Tangible fixed assets
Group
Freehold land
and buildings
Leasehold
improvements
£
£
Cost
At 1 April 2023
782,301
56,903
Additions
-
-
At 31 March 2024
782,301
56,903
Depreciation and impairment
At 1 April 2023
-
39,907
Depreciation charged in the year
-
16,823
At 31 March 2024
-
56,730
Carrying amount
At 31 March 2024
782,301
173
At 31 March 2023
782,301
16,996		 Plant &
machinery
Fixtures and
fittings
£
£
29,832
49,892
408
214,699
30,240
264,591
14,319
38,337
9,516
16,475
23,835
54,811
6,405
209,780
15,514
11,556		 Equipment
£
216,198
39,340
255,538
168,179
30,346
198,526
57,012
48,019		 Total
£
1,135,126
254,447
1,389,573
260,742
73,160
333,902
1,055,671
874,386

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 2024

19
Investment property
Group
Fair value
At 1 April 2023
Transfer from investments
Transfers from inventories
Net gains or losses through fair value adjustments
At 31 March 2024		 2024
£
-
371,916
756,293
326,791
1,455,000

Investment property comprises £1,455,000. The fair value of the investment property has been arrived at on the basis of a valuation carried out in May 2024 by Urban Base, a lettings company, who are not connected with the charity. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

The directors have reconsidered the treatment of the properties held by Fusion 21 Asset Management Limited and reclassified them from stock as they are now considered to be held for long term capital appreciation and rentals.

The properties held by Fusion 21 Foundation have also been reclassified to be treated as property investments.

20
Investment property
Charity
Fair value
At 1 April 2023
Transfer from investments
Net gains or losses through fair value adjustments
At 31 March 2024		 2024
£
-
371,916
108,084
480,000

Investment property comprises £480,000. The fair value of the investment property has been arrived at on the basis of a valuation carried out in May 2024 by Urban Base, a lettings company, who are not connected with the charity. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

The properties held by Fusion 21 Foundation have also been reclassified to be treated as property investments to show this more clearly.

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

FOR THE YEAR ENDED 31 MARCH 2024

21 Fixed asset investments Group

Unlisted
investments
Other
investments
£
Cost or valuation
At 1 April 2023
3,163,524
35,531
Additions
5,998,606
-
Transfer to investment property
(371,916)
-
Repayments
-
(35,531)
At 31 March 2024
8,790,214
-
Carrying amount
At 31 March 2024
8,790,214
-
At 31 March 2023
3,163,524
35,531
2024
Other investments comprise:
£
Loans
-		 Total
£
3,199,055
5,998,606
(371,916)
(35,531)
8,790,214
8,790,214
3,199,055
2023
£
35,531

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 2024 an amount of £nil was outstanding in respect of this loan.

22 Fixed asset investments Charity

Fixed asset investments
Charity
Unlisted
investments
£
Cost or valuation
At 1 April 2023 3,163,524
Additions 5,998,606
Transfer to investment property (371,916)
At 31 March 2024 8,790,214
Carrying amount
At 31 March 2024 8,790,214
At 31 March 2023 3,163,524

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

23 Subsidiaries (Group and Charity)

Details of the charity's subsidiaries at 31 March 2024 are as follows:

Name of undertaking Registered Nature of business Class of % Held % Held
office shares held **Direct ** Indirect
Fusion 21 Limited England & Wales Public sector member support Limited by 100.00
guarantee
Fusion 21 Asset England & Wales Development of building Ordinary 100.00
Management Ltd projects
Fusion 21 Trading Ltd England & Wales Dormant Ordinary 100.00
CoreHaus Ltd England & Wales Offsite construction Ordinary 75.70
Name of undertaking Profit/(Loss) Capital and
Reserves
£ £
Fusion 21 Limited 5,789,616 7,914,397
Fusion 21 Asset
Management Ltd 236,557 653,942
Fusion 21 Trading Ltd - 1
CoreHaus Ltd (1,635,589) 172,196

The charity is the sole member of Fusion 21 Limited (company number: 05090266), a company limited by guarantee which provides support to public sector members and other training services.

Fusion 21 Limited owns 100% of the ordinary share capital of Fusion 21 Asset Management Limited (company number: 11194061), a building development company.

Fusion 21 Limited owns 100% of the share capital of Fusion 21 Trading Limited (company number: 07879611), a dormant company.

Fusion 21 Limited owns 75.7% of the ordinary share capital in CoreHaus Ltd (company number: 09287021), a company which specialises in offsite construction.

All of the above companies have been included in the consolidated accounts.

Fusion 21 Asset Management Ltd was entitled to exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies.

24
Stock
Group
Home plots
Charity
The is no stock held witin the charity		 2024
£
-		 2023
£
756,293

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

FOR THE YEAR ENDED 31 MARCH 2024

25
Financial instruments (group)
Carrying amount of financial assets
Debt instruments measured at amortised cost
Equity instruments measured at cost less impairment
Carrying amount of financial liabilities
Measured at amortised cost
26
Financial instruments (charity)
Carrying amount of financial assets
Debt instruments measured at amortised cost
Equity instruments measured at cost less impairment
Carrying amount of financial liabilities
Measured at amortised cost
27
Debtors
Amounts falling due within one year:
Trade debtors
Corporation tax recoverable
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income
28
Creditors: amounts falling due within one year
Notes
Bank loans (secured)
30
Other taxation and social security
Deferred income
31
Trade creditors
Amounts owed to group undertakings
Other creditors
Accruals		 2024
£
6,541,785
8,790,214
781,559
2024
£
636,899
8,790,214
8,280
Group
Group
Charity
2024
2023
2024
£
£
£
1,706,328
764,581
-
121,812
103,001
-
-
-
-
13,434
17,022
-
2,235,266
1,686,607
1,833
4,076,840
2,571,211
1,833
Group
Group
Charity
2024
2023
2024
£
£
£
10,000
49,242
-
647,708
532,781
-
98,350
136,775
888
290,950
164,278
-
-
-
-
16,597
33,129
-
449,012
390,038
8,280
1,512,617
1,306,243
9,168		 2024
£
6,541,785
8,790,214
781,559
2024
£
636,899
8,790,214
8,280
Group
Group
Charity
2024
2023
2024
£
£
£
1,706,328
764,581
-
121,812
103,001
-
-
-
-
13,434
17,022
-
2,235,266
1,686,607
1,833
4,076,840
2,571,211
1,833
Group
Group
Charity
2024
2023
2024
£
£
£
10,000
49,242
-
647,708
532,781
-
98,350
136,775
888
290,950
164,278
-
-
-
-
16,597
33,129
-
449,012
390,038
8,280
1,512,617
1,306,243
9,168		 2023
£
8,771,215
2,791,608
825,875
2023
£
4,666,088
2,791,608
52,028
Charity
2023
£
-
-
370
-
1,828
1,833 2,198
Charity
2023
£
-
-
888
-
307
-
52,028
53,223

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

FOR THE YEAR ENDED 31 MARCH 2024

29 Creditors: amounts falling due after more than one year Creditors: amounts falling due after more than one year
Group Group Charity Charity
2024 2023 2024 2023
£ £ £ £
Bank loans (secured)
30		 15,000 189,188 - -
15,000 189,188 - -
30 Loans and overdrafts
Group
2024 2023
£ £
Bank loans 25,000 238,430
Payable within one year 10,000 49,242
Payable after one year 15,000 189,188
Included in the above is a loan totaling £nil (2023: £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. This loan
was repaid during the year.
31 Deferred income
2024 2023
£ £
Other deferred income 98,350 136,775
Deferred income is included in the financial statements as follows:
2024 2023
£ £
Deferred income is included within:
Current liabilities 98,350 136,775
Movements in the year:
Deferred income at 1 April 2023 136,775 157,020
Released from previous periods (38,425) (20,245)
Deferred income at 31 March 2024 98,350 136,775

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

FOR THE YEAR ENDED 31 MARCH 2024

32
Provisions for liabilities
Group
Notes
Deferred tax liabilities
33
Retirement benefit obligations
34		 2024
£
66,263
192,750
259,013		 2023
£
5,654
166,500
172,154

Charity

There are no provisions for liabilities within the charity accounts.

33 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
2024 2023
Balances: £ £
Accelerated capital allowances 66,263 5,654
Charity Liabilities Liabilities
2024 2023
Balances: £ £
Accelerated capital allowances - -
Retirement benefit obligations - -
- -
Group Group
2024 2023
Movements in the year: £ £
Liability at 1 April 2023 5,654 11,771
Charge to other expenditure 60,609 (6,117)
Liability at 31 March 2024 66,263 5,654

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.

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

34 Retirement benefit schemes

Defined contribution 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.

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 2024. 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
2024 2023
% %
Discount rate 4.93 4.82
Expected rate of salary increases 3.80 3.83
Inflation (RPI) 3.08 3.15
Inflation (CPI) 2.80 2.83
Allowance for continuation of pension for cash at retirement 75% of 75% of
maximum maximum
allowance allowance
Mortality assumptions
The assumed life expectations on retirement at age 65 are:
2024 2023
Years Years
Retiring today
- Males 20.50 21.00
- Females 23.00 23.40
Retiring in 20 years
- Males 21.80 22.20
- Females 24.40 24.90

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

FOR THE YEAR ENDED 31 MARCH 2024

34 Retirement benefit schemes (continued)
Amounts recognised in the profit and loss account:
2024 2023
£ £
Net interest on defined benefit liability/(asset) 7,000 5,000
Other costs and income 3,000 3,000
Total costs 10,000 8,000
Amounts taken to other comprehensive income:
2024 2023
£ £
Actual return on scheme assets 132,000 1,004,000
Less: calculated interest element 58,000 59,000
Return on scheme assets excluding interest income 190,000 1,063,000
Actuarial changes related to obligations (3,000) (976,000)
Total costs 187,000 87,000
The amounts included in the balance sheet arising from the charity's
obligations in respect of defined benefit plans are as follows:
2024 2023
£ £
Present value of defined benefit obligations 1,384,000 1,384,000
Fair value of plan assets (1,127,000) (1,162,000)
Deficit in scheme 257,000 222,000
Deferred taxation balance relating to pension schemes (64,250) (55,500)
Total liability recognised 192,750 166,500
Movements in the present value of defined benefit obligations:
2024
£
Liabilities at 1 April 2023 1,384,000
Benefits paid (65,000)
Actuarial gains and losses (3,000)
Interest cost 65,000
Other 3,000
At 31 March 2024 1,384,000

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

FOR THE YEAR ENDED 31 MARCH 2024

34
Retirement benefit schemes
(continued)
The defined benefit obligations arise from plans which are wholly or partly funded.
Movements in the fair value of plan assets:
2024
£
Fair value of assets at 1 April 2023
1,162,000
Interest income
58,000
Return on plan assets (excluding amounts included in net interest)
(190,000)
Benefits paid
(65,000)
Contributions by the employer
162,000
At 31 March 2024
1,127,000
The actual return on plan assets was £132,000 (2023 - £1,004,000).
The fair value of plan assets at the reporting period end was as follows:		 34
Retirement benefit schemes
(continued)
The defined benefit obligations arise from plans which are wholly or partly funded.
Movements in the fair value of plan assets:
2024
£
Fair value of assets at 1 April 2023
1,162,000
Interest income
58,000
Return on plan assets (excluding amounts included in net interest)
(190,000)
Benefits paid
(65,000)
Contributions by the employer
162,000
At 31 March 2024
1,127,000
The actual return on plan assets was £132,000 (2023 - £1,004,000).
The fair value of plan assets at the reporting period end was as follows:		 34
Retirement benefit schemes
(continued)
The defined benefit obligations arise from plans which are wholly or partly funded.
Movements in the fair value of plan assets:
2024
£
Fair value of assets at 1 April 2023
1,162,000
Interest income
58,000
Return on plan assets (excluding amounts included in net interest)
(190,000)
Benefits paid
(65,000)
Contributions by the employer
162,000
At 31 March 2024
1,127,000
The actual return on plan assets was £132,000 (2023 - £1,004,000).
The fair value of plan assets at the reporting period end was as follows:		 34
Retirement benefit schemes
(continued)
The defined benefit obligations arise from plans which are wholly or partly funded.
Movements in the fair value of plan assets:
2024
£
Fair value of assets at 1 April 2023
1,162,000
Interest income
58,000
Return on plan assets (excluding amounts included in net interest)
(190,000)
Benefits paid
(65,000)
Contributions by the employer
162,000
At 31 March 2024
1,127,000
The actual return on plan assets was £132,000 (2023 - £1,004,000).
The fair value of plan assets at the reporting period end was as follows:
1,127,000
Equity instruments
Debt instruments
Property
Liability driven investments
Absolute return
Alternative risk permia
Secured income
Other categories		 2024
£
22,000
185,000
88,000
535,000
13,000
2,000
53,000
264,000
1,162,000		 2023
£
404,000
250,000
117,000
587,000
84,000
69,000
78,000
513,000
2,102,000
The fair value of plan assets at the reporting period end was as follows:
2024 2023
£ £
Equity instruments 22,000 404,000
Debt instruments 185,000 250,000
Property 88,000 117,000
Liability driven investments 535,000 587,000
Absolute return 13,000 84,000
Alternative risk permia 2,000 69,000
Secured income 53,000 78,000
Other categories 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 2024

35 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:

Movement
in funds
Movement
in funds
Balance at
1 April 2022
Income
Balance at
1 April 2023
Income
31
£
£
£
£
Property Investment
370,000
-
370,000
-
Employment skills, health wellbeing &
deprivation
3,272,034
-
3,272,034
-
3,642,034
-
3,642,034
-		 Balance at
March 2024
£
370,000
3,272,034
3,642,034

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.

36 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:

Within one year
Between two and five years		 2024
£
126,500
94,875
221,375		 2023
£
126,500
221,375
347,875

37 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.

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

FOR THE YEAR ENDED 31 MARCH 2024

38 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024 2023
£ £
Aggregate compensation 672,667 517,191

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.

39 Cash generated from operations
Cash generated from operations
2024
£
Surplus for the year
4,749,641
Adjustments for:
Taxation (credited) / charged
33,048
Investment income recognised in statement of financial activities
(265,055)
Interest payable
15,694
Fair value gains and losses on investment properties
(326,791)
Amortisation and impairment of intangible assets
59,188
Depreciation and impairment of tangible fixed assets
73,160
Consolidation adjustments re Goodwill arising on acquisition
-
Movements in working capital:
Decrease/(increase) in stocks
756,293
(Increase) in debtors
(1,486,815)
Increase in creditors
284,041
(Decrease) in provisions
35,000
(Decrease) in deferred income
(38,425)
Cash generated from operations
3,888,979		 2023
£
1,043,021
12,025
(85,358)
10,979
57,576
88,674
842,625
(22,141)
(226,681)
143,624
13,383
(20,245)
1,857,482

FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

40
Analysis of changes in net funds
At 1 April 2023
Cash flowsAt 31
£
£
Cash at bank and in hand
7,970,753
(3,135,296)
Loans falling due within one year
(49,242)
39,242
Loans falling due after more than one year
(189,188)
174,188
7,732,323
(2,921,866)		 March 2024
£
4,835,457
(10,000)
(15,000)
4,810,457

Charlty Reglstratlon No. 1164818 Company Reglstratlon No. 7998339 (England and Walesl FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE CONSOLIDATED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 FUSIQN