THE PRODUCTIVITY GROUP Trading as Be the Business
REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Registered charity number: 1173660 Registered company number: 10754958
AMENDED
These accounts replace the original accounts. They are now the statutory accounts. They are prepared as they were at the date of the original accounts.
THE PRODucrivrrY GROUP (Be the Business) CONTENTS FOR THE YEAR ENDED 31 MARCH 2022 CONTENTS Page Reference and Adrninislralive Details Trustees, Report Statèmènt of TrLJStèés' Rèsponsibilitiès Independent Auditors, Report 10-12 Group St8lemenl of Financial Activities 13 Group B818fKE Sheet 14 Charity Balan Sheet 15 Statement of Cash Flows 16 Notes lo the Financial Statemen15 17-25
THE PRODUCTIV GROUP (Be the Business) REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MARCH 2022 Company registration number 10754958 Charity registration number 1173660 Registered office 10 Queen Street Place London EC4R 1AG Trustees Tera Allas Jeremy Anderson Sir Ghailie Mayfield (Chaiil Hosein Khajeh-H055einy Key management personnel Anthony ImpÈy- Chief Executive Helen Wright- Chief Financial Officer Louise Sunderfand - Director of Programmes (Left 23 April 20211 Matthew Bright- Communications & Marketing Dirèctoi ILeft 7 April 20221 Helen Puddefool- Director of Strategic Partnerships Thomas Gibson- Head of Digital & Tech Adoption Programmes (From 1 May 2021, Left 31 July 20221 Sheena McDermott- Head of Leadership & Management Programmes (maternity coverl (From 1 July 20211 Paloma Saekman- Hèad ol Leadèrship & Managèmènt Programmès (From 1 May 20211 Bankers Lloyds Bank 39 ThreadnèÉdlè Street London EG2R 8AU Auditors Haysmacintyie LLP 10 Queen Street Place London EC4R 1AG
THE PRODUCTIV GROUP (Be the Business) TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2022 Introduction The trustees, who are also the directors of the charity, have pleasure in presenting their report together with the financial statements of The Productivity Group IBe the Business) for the for the year to 31 March 2022. The reference and administrative information set out on page 1 forrns part of this report. These financial statements comply with current statutory requirements, the charity's memorandum and articles, applicable law and the 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 IFRS 1021 (Second Edition, effective 1 January 20191, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. Objectives and activities Be the Business is an independent, not-for-profit organisation, with a vision of a more productive economy diiven by great businèss leadership. The charity's objectives have been defined as the followng.. "The pmmotion of industry and commeree in the UK for the public benefit by promoting the productivity of business order that the UK economy as a whole will benefit through improved business Sustainability, employment security, job satisfaction and standards of living.. With the ¢ontinued impa¢t ol eoronavirus on businèsses and more difficult economi¢ conditions faced by many nations around the worfd. Be the Business's mission has never been more important. By irnproving the perfomiance of small business leaders, we improve the UK'S position overall, and everyone benefits. In order lo achieve these objective5. Be the Business focu5es on iwo key drivers of productivty.. Successful tech adoption Improved lèadership and management skills By helping small business leaders in these areas- and others- we can create real, recognisable results. We are building a movèmènt of businass léadèrs from èvèry sèetor and règion in sÉrvicè of our mission. Leaders from the UK'S most successful businesses piovide iesour¢e and expertise to other leaders lo enhan¢e their business's productivity and adopt irnprovement mindsets.. We offer online support through our website, with business stories, action plans and guides 811 freely available We create and run flagship programmes providing tailored, in4epth support for business leaders, including our Mentoring and Boards tsffers We publish research and studies from the frontline of srnall business, helping us to understand leaders and help them be more productive We deliver campaigns that demonstrate the positives of productivity for small businesses, tackling information gaps and fixed mindsèts We undertake a rigorous programme of evaluation lo identify the activities that deliver the greatest impact, at scale, in subsequent years Achievements and perforniance Be the Business has been fully operational for four and a half years and we continue to be focused on maximising our operational capabilities, building scale, and delivering impact for business leaders. In previous years. we have adopted a tesl-and-learn approach. using robust evaluation lo inform fuluie activity. We are building on this. while aiming to increase the reach and levels of engagement with our core programrnes. In particular, as we move out of the Covid-19 pandemic and into a cost-of-living crisis, which is severely affecting businesses up and down the country, we will eontinue to support business leaders as they seek to imprové.
THE PRODUCTIV GROUP (Be the Business) TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2022 Movement buildin and cam ns Since inception, Be the BLJsiness has engaged thousands of SMES in improvement activities, including our programmes. digital offering5. and events. By the end of 2021122.. Therè was a £395m productivity uplift for businèsses that participatèd in Bè the Businèss interventions 5,137 individuals from firms across drfferent sectors and regions participated in one of our face-to-face leadership and management programmes Over 1.4m unique users visited our website, acce55ing information on how bu5inesse5 have adapted to coronavirus, as well as tools and guides to help business leaders find a path through the pandemic and beyond Ourpartnerships We continued to work alongside business leaders, partieularly our Be the Business Ambassadors. to understand the opportunities and ohallenges facing them in real-time. We work with crilioal ecosystem partners including Local Enterprise Partnerships ILEPS), Growth Hubs. national and local business support organisations, local chambers of cornmerce, universities and, of course, our corporate partners. In January 2022 we signed a Mernorandum of Understand with the Productivity Institute lo collaborate lo better undeisland and improve the productivity of UK businesses. We partnered wrth leaders across dozen5 of large companies lo enlist their support in improving produclwity. Our corporate partners contributed £3.2 million of cash and £5.1 million of in-kind support in the year. We launched our partnership with Ma51ercard Impact Fund, while also working alongside Enterprise Nation and Digital Boost, lo deliver Strive UK. The Strive UK programrne aims to empower black and Asian leaders from micro and small businesses around the country to succeed in the digital economy through free guidan, helpful tools, and personalised one-tone mentoring. By collaborating with Mastercard, Be the Business hopes to leach small business leaders who, up until now. have faced thallenges acce55ing support, aSS151ance and advi. To help solve the long-standing problem of low productivity in thè construction industry. Bè the Business formed the Construction Produclwily Taskfoice in collaboration with leading industry figures. with the airn of identifying and trialling new ways of making the sector more productive. Alongside Be the Business, the taskforce features major organisations in the construction sector, meeting regularfy to review progress against three workstreams.. d8la and metrics. collabor8live contracting. and pilot siles. In addilion, our Technology Taskforce provides guidance on the collective actions required by the industry to bring about mass technology adoption among small business leaders in the UK. Pairing in-depth understanding of $mall- and mediutn-sized business needs with a reoognilion th suppliers do not serve that market effectively, the Ta5kforce aims lo put productivity-boosting technology into the hands of every business leader. Consequently, we are developing a uniqLJe understanding of the productivity challenge and are feeding these insigh15 back into Government lo influence policy. generate idea5 8nd lo conlinu8lly build new pioposilion5. We were delighted lo see that the Government in ils 2021 Budget announoemenl of 'Help lo Grow, put productivity al the heart of the economic recovery. Be the Business has played a significant role in shaping the Help to Grow policy across both leadership and management and tech adoption by supporting BEIS to host focus groups on Help to Grow Management CaTnpaign merials and conlribuling lo sever81 $18keholdei meetings on the design of Help to Grow Digital. Our campaigns In 2021, Be the Business undertook a significant segmenlalion of the business leader population which identified six leadership typologies informed by the way individuals make decisions in their businesses, engage their employees, and seek support for improvement. This information was used to create a 'Superleaders' campaign designed to reach and engage a wide range of busines5 leaders. Based on their answers lo six questions, leaders were provided with information of a leadership typology aligned lo their answer, as well as a range of tailored business supportvia the Be the Business website. Superleaders induded original superhero-
THE PRODUCTIV GROUP (Be the Business) TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2022 style artwork and was supported by an extensive digrf(al carnpaign. Evaluation of the campaign was very positive, finding that one fifth of those who engaged with it retumed to explore Be the Business, digital offerings on five or more occasions. We also launched the Be the Business Bootcamp, which offers a clearonline learning ioumeyto help business leaders become more products've. Each bootcamp contained a range oftailored content around a particular theme, with the aim of providing business leaders with inspiration, practical advice and tips, and tools to take the next step in their own business. Be the Business plans to bLJild on this work further in the next financial year. with a Series of digital tests and campaigns to exploie and develop new ways of reaching Small busine55 leaders. Events The Be the Business Festival took place on 31 March 2022 attended by 210 SME leaders and featuring contribLrtions from Rt Hon Rishi Sunak MP, Tracy Brabin, Bill Esterson MP and a range of business leaders. The Festival was held in Leeds and included exhibitors from across the business support ecosystem. 2021 was tough at times, so we launched our Inspire series. The online events brought prominent voices from the wodd of business discussing the timely topics of the day to business leaders. We hosted three virtual events on the importance of perseverance. the need foi a defined brand identity and tips on posl-pandemic recruitment. The evenls included networking opportunities. We held Iwo ioundtsbles with Minister lor Stnall Busines5. Paul Scully MP, lo dis¢US$ $UPPQrt for underrepresented SME leader5.' one in partnership with Mastercard and the other with Mela. Pro rammes and Our programmes continue to receive very p0sVe feedback from participants. Be the Business Mentoring In 2021122, 433 business leadsrs bènefited from thè support of onè of our mèntors. Our Mentoring programmè carefully mal¢hed SME leaders with experienced and committed senioi individuals. including many from the UK'S most successful cornpanies. Our evaluations show that Be the Business Mentoring has resulted in a tangible increase in leadership and management skills". 4 in 5180%) say mentoring helped them to improve their knowledge and skills lincl. Soft skills such as trust, ¢ommunicationl 314 175°/.I say rnentoring increased their confidence in implementing leadership and rnanagement praCtIS Over haK154¢/0l say mentoring encouraged them to adopt new leadership and management practices And evaluation findings also show that Be the Business Mentoring results in a clear and positive impact for business leaders.. Over half151.hl of menlees report that Mentoring for Growth has improved their productivity 213167°Al expect to see productivity gains over the next v0 years 113138'hl ernployed more people 113132 /) increased turnover Only 6°/0 believe the benefits would have happened without participating in Mentoring for Growth 113130°Al indicated their customers have indirectly benefitted as a result ol their involvement
THE PRODUCTIV GROUP (Be the Business) TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2022 Be the Business Boards Be the Business Boards supported 83 business leaders in 2021122, providing them with a free advisory board, consisting of five experieneed advisors with eomplementary experience, for a twelve month period. Tech Adopt Labs The Tech Adoption Labs programme received funding from The Good Things Foundation to provide an opportunity for Small business owners from underrepresented backgrounds based in East London l London lo gain free access to expert advice on the digital best tools and processes for their business. Business owners can attend free workshops, and receive free one-to-one support from tech experts who can answer the difficult questions about suceèssfully implèmènting tèchnology. Evaluation, Research and Insights Undertaking and PLJblishing research, some in association with our corporate partners, continues to be a key strand of activity for Be the Business. In 2021122, we published seven major pieces of research.. Pioductive Business Index13 editions published in 20211221 Be the Business has now pioduced foul edrtions of the PBI. The PBI tra¢ks the business performance and capabilities of a represenlalive sample of micros and SMES. Skills foi Suc¢ess'. Supporting business leaders with digital adoption University This report looked at the skills needed to help support SMES with successful tech adoption. In partnership with The Open Be the Bu5ines5 Tech Adoption Lab- Insights Report The Lab helps successful adoption. bul also generates significant insight Into how barriers 10 tech adoption can be overcome, and the types of support that are of most benefit to SMES undertaking a tech adoption journey. The results and lessons are in this Insight Report. SME Leader Segrnentation A research project which sought to segment business leaders based on how they lead within their business, how they make decisions and what trusted sour¢es they engage with. Supporting Ethnic Minority-Led Businesses This report brings together a literature review and qualitative research to contribute to the evidence base around D&1 and prodLJCtivity to support Bé thè Businèss, futuré planning to support minorily-led SMES ital tools Throughout 2021122 Be the Business continued lo develop digtsl tools that en¢oui8ge and support business leaders to develop their management capabilities and adopt productiwly boosting technology. New websiteAearning plaffomi Be the Business launched a new website with enhanced functionality. Business leaders are now able lo access an extensive range of guided action plans, thematic improvement guides, tools and templates designed to improve management capabilities. Data infraslruGtur& Be the Business invested in its data infrastructure to enable more real time insights to be generated by the audience of visiting SME leaders. Innovating delivery methods New methods of engaging business leaders via digital were tested throughout the year, including testing how third parties can deliver advice and support drawing on Be the Business reSoUrs. This took the form of a pilot
THE PRODUCTIV GROUP (Be the Business) TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2022 whereby Lloyds Banking Group relationship managers were provided with Be the Business conlenl and support designed to help them better engage business banking customers with opportunities to improve their productivity. Financial review In the year ended 31 March 2022 the Group recognised £4.9 million of Govemmenl grant income and £8.3 million of private income of which £5.1 million was pro-bono in kind support, bringing the total recognised pro- bono value over five years to £17.75 million. To dale, the Government hasforrnally agreed funding of £12 million until March 2025, with £5 million in 2022123, £4 million in 2023124, and £3 million in 2024125. We are focused on diversifying our funding base over this period in order to increase the nLJmber of activities we can support, maintain our long-term viability and reduce the operational risk of being solely dependent on one funder. The commercial subsidiary had income of £0.6 million and all taxable profits are gifted to the charity under deed of donation. We expect activity through the subsidiary to grow in coming years. Structure, governance and management The Productivity Group is an independent registered charity (charity no. 11736601 and a company limited by guarantee (incorporated on 4 May 2017 and registered in England and Wales, no. 107549581. The charity is governed by the Articles of Assooiation dated 30 June 2017. Whilst we work closely with our Government sponsors, the Selection and appointment of trustees 15 independent of any third parties and is solely decided upon by a vote of the existing trustees. The trustees of Be the Business during the year to 31 March 2022 were". Tera Allas Jeremy Anderson Sir Charlie Mayfield Hosein Khajeh-Hosseiny The charity has a wholly owned commercial subsidiary The Productivity Group (Commerciall Mited (Company number.. 108944881. The trustees meet formally on a quarterly basis to review progress to date and approve our strategy. Remuneialion Trustees are responsible for approving the pay and remuneration of key management personnel and agreeing annual staff pay increases, taking external benchmarking advice to inform their decisions. Our salaries are benchmarked against similar roles in cornpaiable charities, piivate sector bu5inesse5 and other relevant organisations and they reflect the knowledge, skills, responsibilities and attributes required for the performance of each position. Be the Business is committed lo the prinaple of equal opportunities and equal treatment for all employees, regardless of sex, race. religion or belief, age, marriage or civil partnership, socio-economic background, pregnancylmaternity, sexual orientation, gender reassignment or disability. Induction and Irainin of Trustees To equip new trustees with the information they need to perforrn their role effectively. they receive detailed information on their duties and responsibilities under Charity Law and follow a structured induction programme consisting of meetings with the sènior management tèam and other key stakeholders. Trustees also undergo regular training as required. How the charit makes decisions Key stiategie de¢isions are made by the trustees and are then delegated to the Senior Leadership Team for implernenlalion.
THE PRODUCTIV GROUP (Be the Business) TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2022 Fundraisin roach Be the Business operates a split funding model, made up of both Government grants and contributions from commercial organisations Iboth of a financial natLJre and 'in-kind' pro-bono support). The fundraising focus in 2021122 has been securing on-going Government grant funding, which was successful with £12 million of funding through to March 2025 confirmed in June 2022, and building a pipeline of private sector income. Be the Business does not fundraise directly from members of the public. Reserves Poli The Trustees have established a reserves policy in order lo protect the organisalion and ils programmes from the risk of disruption at short notice due to a lack of funds. whilst ensuring that it does not retain income for longer than required. Given there are also restrictions on the use of government funds for certain types of expenditure. rt is nece55ary for re5erve5 to be buitt up lo a level which will ensuie that all liabilitie5 can be mel. In establishing the reserves policy, the Trustees have taken into account the following factors". The level of dependency on government funds, restrictions upon their use and the agreed nOte periods related lo changes in funding levels. The pipeline of non-governrnental funding sources and level of risk associated with each one. The current level of reserves and level ol committed costs lin both the normal course of operation and those that would be triggered in the event of a significant change in govemment funding). Current and future levels of activity and related experiditure, together with the associated risks around each one. The business plan and financial forecasts. Due lo the requirements of our BEIS giant agreement, no Government funds may be used lo generate unrestricted reserves. However, the Trustees have determined that a target of £550k in unrestricted reserves is desirable for 2022123 to mitigate any potential risks. Unrestricted reserves at 31 March 2022 were above target at £2,046k, increased from £1,769k in the prior year, which trustees have confirmed is appropriate given budget and inve51menl needs foi the years ahead. The level of reserves will be formally reviewed again in September 2022, again taking into account factors listed above. As at 31 March 2022 the charity also holds £1,601k in restri¢led lunds12021". £252kl. whi¢h are lo be used for specthc purposes. as defined by fundeis. Risk Mana ement Bé the Business eonsiders good risk management lo be a key part of ils operational requirements. As such, consideration is given lo areas of activity where sl8keholdeis orlhe reputslion of the organisalion ale potentially vuINeiable to adverse actions that could affect.. operational performance 8¢hievetMenl of aims and objectives". or the meeting of stakeholders, expectations. In formulating the view of risk, the trustees have specrfically considered the following". al StralegiG Management- The strategy used when defining risk is the action taken to gwe effect lo long- term plans and objectives. bl Talent- The dependency on key members of staff. ¢1 Safety- The physical safety and health of our stsff and stakeholders. dl Legislative Both i>)mpliance with curienl laws and EU regul*ions and ensuring continued compliance with changes lo such legislation. el Grant Agreements- Compliance with the terms of the BEIS grant letter is key to ensure continued funding. n Financi81- The economic and financi81 effect of each PToject should be taken into account in planning, monitoring and rllanaging it, along with the overall management of funds.
THE PRODUCTIV GROUP (Be the Business) TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2022 To manage these risks, a register is maintained and reported to the Trustees and BEIS on an ongoing basis. Periodic monitoring also ensures that systems and procedures are being followed and that new risks are addressed and identified as they arise. Future Plans and Goin Concern Over the coming year we will continue to scale our existing programmes, working with a range of commercial and delivery partnèrs. We will also continLJe to approach FTSE 100 CEOS as well as leading entrepreneLJrs and philanthropists in the Coming months. asking them to join the movement and bring their leadership. innovation and resources to the table. Given the preparatory work which has taken place over the last five years, the initiatives that are currently in piogre55 and the level of funding already committed by governtllenl and our comtneicial partne15. the Tru51ee5 are confident that the Be the Business moverllenl is IN a strong position lo have a positive impact on the productivity of UK businesses, and indeed the wider UK economy in the years to come. Following confirmation of Government grant funding through lo March 2025 in the 2022 Corllprehensive Spending Review. Trustees have undertaken a review of our financial position. funding discussions, reserves levels and future plans. Based on this review, and taking into account the known implications of Covid-19, Trustees have confidence that the charity remains a going eoneern for the foreseeable future with positwe cashflow and reserves forec8St for al lea51 twelve rllonlhs fiorll the dale of signing the accounts.
THE PRODUCTIV GROUP (Be the Business) TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2022 statement of Trustees, Responsibilities The trustees (who are also directors of The Productivity Group for the purposes of Company lawl are responsible for preparing the Trustees, Report and financial statements in aecordance with applicable law and United Kingdom Generalty Accepted Accounting Practice. Company law requires the trustees to prepare finanaal statements for each financial year which give a true and fair view of the state of affairs of the charitable company, including the incoming resources and the application of resources, including incorne and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to.. select suitabk accounting policies and then apply them consi51enlly'. observe the methods and principles in the Charities SORP., make judgements and estimates that are reasonab and prudént., stale whether applicable UK accounting standards have been followed. subject to any tn8leri81 departures disclosed and explained in the financial statements.. and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The Iruslees are responsible for keeping adequate accounting records that are disclose with reasonable accuracy at any time the financial position of the charitable company and which enable thern to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the ¢harilable company and hence for taking reasonable Steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable corllpany s website. Legislations in the United Kingdom governing the preparation and dissernination of financial staternents may differ frorn legislation in otherjurisdictions. In so far as each of the trustees are aware at the time the report is approved.. there is no relevant audit information of which the charitable cornpany's auditors are unaware., and the Trustees have taken all steps that they should have taken to make themselves aware of any relev8nl audit infortll81ion and lo establish that the auditors are aware of th81 Infortll81ion. Approved by the Board on 28 September 2022 and signed on its behalf by.. Sir Charlie Mayfield Chair of Trustees
INDEPENDENT AUDrn)RS' REPORT TO THE MEMBERS AND TRusfEES OF THE PRODUCTIV GROUP INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF THE PRODUCTIVITY GROUP Opinion Wè have audited the financial statements of The Productivity Group for thè year ended 31 March 2022 which compiise the Consolidated Staternent of Financial Activities, the group and parent charitable company's Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, including a sumrnary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applieable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard appliGable in the UK R8publNG of Irel8nd (United Kingdom Generally Accepted Accounting Practice). In our opinion, the finan¢i31 statements". give a true and fair view of the stale of the group's and of the parent charitable cornpany s affairs as at 31 March 2022 and of the group's and parent charitable company's net movement in funds, including the income and expenditure, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUK)) and applicable law. Our responsibilities undei those standards ale further described In the Auditor's responsibilrties for the audrfc of the financial statements section of our report. We are independent of the group 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 requirernenls. We believe that the audit evidence we have obtained is sufficient and appropriate lo prowde a basis for our opinion. Conclusions relating to going concern In auditing the finan¢ial stalemenls. we have oon¢luded that the Ituslees. use of the going ¢oncern basis of accounting in the prepaialion of the finanal 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 ¢ast significant doubt on the group's ability to continue as a going COnrn for a period of al le851 Iwelve months frotn when the financial st8ternentS 8re aulhorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concem are described in the relevant sections of thi5 report. other infomiation The trustees are responsible for the other information. The other information comprises the information included in the Trustees. Annual Rèport. Our opinion on thè finan¢ial statetnents does not ¢over the other info[rnatn and, except to the extent otheiSe explicitly stated in our report, we do not express any forrn of assurance conclusion thereon. In connèction with our audit of the financial statèmsnts, our responsibility is to rèad thè othèr information and, in doing so, consider whether the other inforrllalion is materially inconsislenl with the financial slalemenls or our knowledge obtained in the audit or otheNise appears lo be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material mi55talernenl in the financial slalemen15 01 a material misslalemenl of the olhei information. If, based on the work we have performed, we conclude that there is a material rnisslalernenl of this other information, we are required to report that fact. We have nolhing lo report in this regard. 10
INDEPENDENT AUDrn)RS' REPORT TO THE MEMBERS AND TRusfEES OF THE PRODUCTIV GROUP Opinion$ on other matters pre$cribed by the Companies A¢t 2006 In our opinion. based on the work undertaken in the course of the audit.. the information given in the Trustees, Annual Report (which includes the strategic report and the directors, report prepared for the purposes of company lawl for the financial year for which the financial statements are prepared is consistent wrth the financial statements., and the stiategic report and the directors, report included within the Trustees, Annual Report have been prepared in accordance with applicable legal requirements. Mattèrs on which WÈ arè required to rèport by èx¢¢ption In the light of the knowledge and understanding of the group and the parent charitable cornpany and ils environment obtained in the course of the audit, we have not identified material misstatements in the Trustees, Annual Rèport (which incorporates thè stratègic rèport and the directors, reporti. We have nothing to report in respect of the following matters in relation lo which the Companies Act 2006 requires us to report to you if, in our opinion.. adequate accounting iewids have not been kept by the parent charitable wmpany.. or the parent charitable company financial staternents are not in agreement with the accounting records and returns., or certain disclosures of ttuslees, rernuneiation specified by law are not rnade". or we have not received all the information and explanations we require for our audit. Responsibilities of trustees forthe financial ststements As explained more fully in the trustees, responsibilities statement set out on page 2, the trustees (who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial slalemenls and lor being satisfied that they give a true and fair view. and ft>i such inleinal conliol a5 the Irvslees determine is necessary lo enable the preparation of financial 51alerllenls that are free from material misstatement, whether due to fraud or error. In preparing the financial sl*emeNls, the Iruslees 8re responsible for a55essing the gTOUP'$ and the parent charitable company's ability lo continue as a going cOnrn. disclosing, as applicable, mattels ielaled lo going concern and using the going concern basis ol accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic atternative but to do so. Auditorfs responsibilities for the audit of the financial ststements 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 assuiance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will aayS delect a material rnisstatement when il exists. Misstatements can arise from fraud or error and are considered material rf, individually or in the aggregate, they could reasonably be expected to inflLJence the economic decisions of users taken on the basis of these financial statements. Irregularities, including traud, are instances of non-compliance with laws and regulations. We design procedure5 in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Thè èxtènt to which our proTrdures arè ¢apable of dètècting irrègularities. including fraud is detailed below.. Based on our understanding of the group and the environrnent in which it operates, we identified that the prinapal risks of non-compliance with laws and regulations related to the reporting requirements of the Department for Business, Energy & Indu51ri81 Slr8legy IBEISI. and we considered the extent lo which non- compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011, Charities SORP120191, Companies Act 2006 and payroll taxes. We evaluated managernent's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controlsl and determined that the principal risks are related to the valuation of pio bono services and the recognition of giant Inwtne. Audit procedures performed by the engagement team included.. Enquiries of management regarding correspondence with regulators and tax authorities,. Discussions with tnanagemenl induding consideration of known or suspected instances of non-oompliance with laws and regulation and fraud.,
INDEPENDENT AUDrn)RS' REPORT TO THE MEMBERS AND TRusfEES OF THE PRODUCTIV GROUP Reviewing the controls and procedures of the charity, particularly in relation to the recording of income and proSSIng of payments and payroll, to ensure these were in place throughout the year, including during the Covid-19 remote working period., Evaluating tnanagemenl's controls designed lo prevent and delect irregularities., Reviewing and testing journal entries made in the year, particularly those made as part of the year end financial reporting procsss", and Ghallenging assumptions and judgemen15 made by rnanagemenl in their crrftical accounting estimate being the recognition and valuation of pro bono services. Because of the inheienl limitations of an 8udil, there is a risk that we will not delect all irregularities, including those leading to a material misstatement in the financial statements or non-cornpliance with regulation. This risk increases the more that Cornplian with a law or regulation is rernoved frorn the events and transaclions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regaiding iiregularilies 0r[lg due lo fraud lather than eiror, a5 fraud involves intentional concealment, forgery, collusion, ornission or misrepresentalion A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at". www.fic.or .uklaudilorsres onsibililies. This desciiplion forrns part of our auditorfs report. Usè of our report This report is made 501ely to the charitable cornpanY5 members, a5 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 slate lo 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 chaiitable company and the charitable company's member5, a5 a body, for our audit work, for this report, or for the opinions we have formed. q_tj Thomas Wilson (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditors 10 Queen Street Place London EC4R 1AG Date.. 30109122 12
THE PRODUCTIV GROUP (Be the Business) GROUP STATEME1 OF FINANCIAL ACTIVThIES (incorpornting an income and expenditure acc¢)unt) FOR THE YEAR ENDED 31 MARCH 2022 Notes Unrestricted Fund$ Restricted Fund$ Totsl 2022 Totsl 2021 Income and endowments from: Donations and pro-bono support Charitable activities.. BEIS Grant Other Other Trading Income 847,000 5,121,907 5,968,907 8,826,015 4,930,042 1,666,760 4,930,042 1,667.278 688,975 8,505,007 272,662 431,667 518 688,975 Totsl In¢om¢ 1,536,493 11.718,709 13,255.202 18,035,351 Expenditure on: Charitable activities 1,259,133 10,369,382 11,628,515 17,854,469 Total Expenditure 1,259.133 10,369,382 11.628.515 17,854.469 Net Income 277,360 1,349,327 1,62S,687 180,882 Net Movement in funds 277,360 1,349,327 1,626,687 180,882 Réconciliation of funds Total funds brought forward 1,768,618 251,516 2,020,134 1,839,252 Total funds carri•d forward 13 2,045,978 1,600,843 3,646,821 2,020,134 The company has taken the exemplion allowed by section 408 of the Companies Act 2006, nol to prepare a company only statement of financial activities. All the above results ale derived from continuing 8cliMlie$. There 8re no recognised gains or losses other than those stated above. The net income for the charity for the year was £1,626,687 12021.. net expenditure of £90,687). Full comparative figures for the year ended 31 March 2021 are shown in note 19. The note$ on pages 17 10 25 form part of these financial slalemenls. 13
THE PRODUCTIV GROUP (Be the Business) GROUP BALANCE SHE AS AT 31 MARCH 2022 coMnY number 10754958 Notes 2022 2021 Fixed AssÈt$ Total Fixed Assets 16 21,717 21,717 20.106 20.106 Current Assets Debtors- arnounts fallir@ due after more than one year Debtors- arnounls falling due within one year Cash at Bank 301,750 868,747 3,560,303 641.835 2,465,643 Totsl Curnt Assets 4,730,800 3,107.478 LIabIllt$ Creditors.. amowts falling due within one year 12 11,105,696) 11,107,450) Net Cyrnt Assets 3,625,104 2,000,028 Total Assets less current liablrtie3 3,646,821 2,020,134 Total Net Assets 3.646.821 2,020,134 Thè funds of the charity: Unrestricted funds Restricted fUS 2,045,978 1,600,843 1,768,618 251,518 Total Group Funds 3.646.821 2,020,134 The notes on p8ges 17 10 25 forrn part of these fin8n¢ial 51alemenls. The accounts were approved by the Trustees on 28 September 2022 and signed on their behalf by.. Sir Gharlie Mayfield Chair 14
THE PRODUCTIV GROUP (Be the Business) CHA BALANCE SHE AS AT 31 MARCH 2022 coMnY number 10754958 Notes 2022 2021 Flxed Assèts Total Fixed Assets 16 21,717 21,717 20.106 20,108 Current Assets Debtors- amounts fallirKJ due after more than one year Debtors- amourits fallirKJ due within one year Cash at Bank 301,750 1,334,282 3,027,584 933,473 1,981,563 Total Current Assats 4,663,616 2.915.036 LIabilitS Creditors.. arnowts falling due within orE year 12 1,038,512 915,008 N•t Currant ks•ts 3,625,104 2,000,028 Totsl As$ets le$$ current liablities 3,646,821 2,020,134 Total Net Assets 3,646,821 2,020,134 The funds of the charity= unie511icled funds Restricted fUS 2,045,978 1,600,843 1.768.618 251,518 Total Charity Funds 3,646,821 2,020,134 The notes on pages 17 10 25 forrn part of these financial stalemenls. The accounts weie approved by the Trustees on 28 September 2022 8nd signed on Iheii behalf by.. Sir Charlie Mayfield Chair 15
THE PRODUCTIV GROUP (Be the Business) GROUP STATEME1 OF CASHFLOWS FOR THE YEAR ENDED 31 MARCH 2022 Notes 2022 2021 Cash flows from opèrating activitiès Cash flows from investing activities Net purchase of taThJible fixed assets Change in cash and cash equivaknts in the period Cash and cash eqLivalents at the beginning of the period Ca$h and ¢a$h equivalents at the end of the period 1,108,867 517.937 114,20n 1,094,660 2,465,643 3,560,303 113,14n 504,7 1,960,853 2,465.643 A Rèeoneiliation of net in¢orr* to net ¢a$h flow from operating activities 2022 2021 Net Income 1,626,687 180,882 Ilncreaselldecrease in debtors Increaselldecreasel in creditors Depreciation ol fixed assets Nèt Cash providèd by operating a¢tivitie$ 1528,6621 11,7541 12,596 1,108,867 1432,1121 758,614 10,553 517.937 At 1 April 2021 At 31 March 2022 Analysls of chanw In net cash funds Cashflovos Cash in hand 2,465,643 1,094,660 3,560,303 Total cash and Cash equivalents 2,465,643 1.094.660 3.560.303 16
THE PRODUrn GROUP (Be the Business) NOTES TO THE FINANCIAL ATEmE5 FOR THE YEAR ENDED 31 MARCH 2022 ACCOUNTING POLICIES The principal accounting policies adopted, judgements and key sources of estimation and uncertainty in the preparation of the financial statements are as follows.. Basis of accounting The financial statements have been prepared in aeeordance with Aeeounting and Rèporting by Charities." Statement of Recommended Practice for Gharilies ISORP 20151 (Second Edition. effective 1 January 20191 applicable lo charities preparing accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS1021 and the Companies Act 2(KJ6. The chaiity meets the definition of 8 public benelil enlily under FRS 102. The charity has one subsidiary company, The Productivity Group Icomrnerciall Limited. registered in England and Wales under company number 10894488. The group accounts include the resuKs of the subsidiary, consolidated on a line by line basis. General Inforniation The Productivity Group, trading as Be the Business, was incorporated in England and Wales on 4 May 2017 as a charitable company limited by guarantee (company number 10754958 and a charity registered in England and Wales (charity nLJmber 11736801. The registered office address is 10 Queen Street Place, London, England, EC4R 1AG and the tharily operates from ils principal address al 26-28 Glasshouse Yaid, London EC1A 4JU. Preparatlon of accounts on a golng concern basls The Trustees consider there are no material uncertainties about the charty's ability to eontinLJe as a going Concern. Operation5 h8ve continued succe55fully Ihiough 2022, to the date of signing these accounts, and the review of our financial position, funding discussions, reserves levels and future plans, taking into accounlthe known implications of Covid-19, Trustees have confidence that the charity remains a going concern for the foreseeable ILJture. Significant judgements and sources of estimation uncertainty In preparing the financial statements management has made judgements, estimates and assumptions that affect the application of the charity's accounting policies. The trustees consider that the key aiea of judgement in the accounts is the valuation of pro-bono support. Prckbono support is valued at the lower of the value of the donats'on to the charity and fair value and is recognised on receipt of the support. We are fortunate lo receive 8 wide range of pro-bono 5UPPOrt from a large number of sour$ which is valued on a prudent basis using appropriate estimation techniques. The rate card developed by management for recurring pro bono support is reviewed every six months to test that the valuation assumptions remain appropriate. Material categtsries of support and the basis for valuation are as follows". Programmatic support- includes mentors. advisory board members, sector Steering Group members and others who give their time to facilitate our programmes with SME leaders for free. The support is valued using meeting attendance records or surveys conducted to establish average time commitments, with hourty rates calculated by reference lo market rates ft>r the type of support being provided. Movement building and campaign support - includes.. promotional activity by our partners to help our content and events reach as many SME leaders as possible, including delivery of webinars on the charity's behalf (valued with reference to the size of audience reached and media rate eardsl, Be the Business Fellows. lime. being senior business leader5 who work with us lo promote the produdivity tnovemenl and build stakeholder network5 (valued based on time sheets and hourly rale for the type of support being provided)., pro bono agency support and ad credits Ivalued based on rates paid by the charity for comparable services). Con5uttancy 10 5UPPOrt our thought leadership research and programmatic development, valued based on charitable rate cards of the relevant consultancies gifting their time. Secondments of staff roles are valued based on the price paid by thè charity for comparable roles. Office space is valued with reference lo market rates taking into acoount the nature of the oiganisalion, the number of desks and facilities provided. 17
THE PRODUrn GROUP (Be the Business) NOTES TO THE FINANCIAL ATEmE5 FOR THE YEAR ENDED 31 MARCH 2022 1. ACCOUNTING POLICIES Icontinuedl Funds structure Unrestricted ineome funds comprise those fLJnds which the Trustees are free to use for any PLJrpose in furtherance oflhe charrtable objects. Designated funds are unrestricted funds earrnarked by the Trustees for particular activities or purposes. Reslricted funds are those funds which are to be used in accordance with specific instructions imposed by the donor or funder. Income All incomè is recognised once the charity has entitlement to incom&, it is probable that income will b& récèiv&d and the arnounl of income reoeivable oan be measured reliabty. Expenditure Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that the settlement will be required, and the amount of the obligation ¢3n be measured reliably. Expenditure includes attributable VAT which cannot be recovered. Tangible Fixed Asset and Deprèciation All assets costing more than £5(X) are capitalised. Tangible fixed assets are G3rried at cost, net of depreeiation and any provision for impairment. Depreciation is provided at rates calculated lo write off the cost of the fixed assets, less their estimated residual value, over their useful lives. Compulei Equipment 33.3°h straight line. Debtors Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued al the 8tnounl piepaid nel of any trade discounts due. CY8dlto Creditors and provisions are recognised where the charity has a present obligation reSUng from a past event that will probably result in the transfer of funds lo 8 third party and the amount due lo sellle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount after allowing for any trade discounts due. Pensions The charity operates a defined contribution pension scheme for the benefit of its employees. The assets of the scheme are held independently from those of charity in an independently administered fund. The pensions costs Charged In the finan¢ial statements represènt the ¢ontiibLJlions payable during the ptriiod. Employee short tern) benefits Short term benefits including holiday pay are recognised as an expense in the period in which the setmce is received. Foreign exchange Monetary assets and liabilities denominated in foreign eurreneies are translated at the period end rate of exchange. Transactions denorninated in foreign currenues alè tianslated at thè ratès prevailing at the transaction date. Financial instruments The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments ale initially iÉeognised at transaction value and subsequendy measured at thèir settlement value. 18
THE PRODUrn GROUP (Be the Business) NOTES TO THE FINANCIAL ATEmE5 FOR THE YEAR ENDED 31 MARCH 2022 DONATIONS & PRO.BONO SUPPORT 2022 2021 Donations 847,000 905,000 Programrnatic Support Movement building and campaigns Consultancy Secondrnenls Office space Other prbon0 4,111,480 584,015 5,400 22,917 390,000 8,095 3,019,197 2,155,704 2,091,000 158.583 390.OOt) 108,531 Total pro-bono 5,121,907 7,921,015 Total donations & prbOn0 support 5,988,907 8,826,015 OTHER TRADING INCOME 2022 2021 Sponsorship income Primary purpose trading Commercial trading Other income 155.000 85,625 466,850 1,500 431,687 Total other income 688,975 431.667 ANALYSIS OF EXPENDITURE 2022 Staff costs Diréct costs Support costs Total 2022 Total 2021 Movement building and Campaigns Programme5 and Pilots Evaluation Research and Insights Digital tools 872,700 863.555 491,359 663,944 1,622,919 4.878.765 616.481 750,995 290,6 303.564 98.988 174,879 2,785,985 5,581,402 6,045,884 8,370,441 1,206,828 1,777,043 1,589,818 2,125,583 Totsl èxpenditurè 2.891,558 7.869.160 867.797 11.628.515 17,854,469 ANALYSIS OF EXPENDITURE 2021 Stsff costs Direct costs Support costs Total 2021 Total 2020 Movement building and Campaigns Piogiamrnes and Pilots Evaluation Research and Insights Digital tools 1,280,380 1,104.081 517.981 601.604 3,863,459 6,882,472 1,119,467 1,357,240 457,563 383,888 139,595 166,739 5,581,402 2,494,376 8,370,441 4,915,468 1,777,043 1,028,8( 2,125,583 1,785,177 Totsl expenditure 3,484.046 13,222.638 1,147,785 17,854,469 10,223,827 19
THE PRODUrn GROUP (Be the Business) NOTES TO THE FINANCIAL ATEmE5 FOR THE YEAR ENDED 31 MARCH 2022 SUPPORT COSTS 2022 2021 Staff related costs Pro Bono Consultancy Consultancy Rent (Office Space- Pro Bono) IT support Profe55ional fees Audit and accountancy Travel Telephonès Human resources Printing Insurance Bank charges and interest Depreciation General expenses Realised currency gains Irrecoverable VAT Partnership Costs Data Strategy & Systerns 56,790 67,050 120.000 68,230 390,000 66,599 20,305 92,056 286 10.336 28,202 819 7,552 593 10,553 16,541 128,771 390,000 53,361 45,016 33,238 13,595 10,428 6,134 349 8,311 1,751 12,596 6,332 119,2811 29,706 9,313 81,367 248,6e3 867,797 1.147.785 GOVERNANCE COSTS (included above) 2022 2021 Audit fees 17,800 16,940 17.8 16,940 NET INCOME I EXPENDITURE 2022 2021 Net incorne is stated after charging.. Auditors, remuneration Audit setvioes Other services Depreci*ion 18.160 6,458 12.596 19.440 8,880 10.553 STAFF COSTS AND NUMBERS 2022 2021 Salaries and wages Social secLJrity costs Pension costs Secondmenl and consultancy fees Other staff costs 2,407,624 250,e04 233,329 176,810 10,981 2,853,979 320,341 299,726 207.907 23,220 3.079.348 3,705.173 Included in other staff Costs a payments made on termination of £2,44812021". £10,000>. 20
THE PRODUCTIVITY GROUP (Be the Business) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
| 2022 | 2021 | |
|---|---|---|
| Average staff numbers (including secondees): | ||
| Movement building and Campaigns | 7.3 | 9.8 |
| Programmes and Pilots | 7.7 | 8.2 |
| Evaluation Research and Insights | 2.5 | 3.0 |
| Digital tools | 4.4 | 3.6 |
| Partnerships | 4.0 | 6.8 |
| Administration staff (including core senior leadership team) | 9.8 | 10.3 |
| ----------------- | ----------------- | |
| 35.7 | 41.8 | |
| ---------------- | ---------------- | |
| Number of employees whose emoluments in the period were: | ||
| 2022 | 2021 | |
| £60,000 - £69,999 | 7 | 9 |
| £70,000 - £79,999 | 6 | 5 |
| £80,000 - £89,999 | - | 2 |
| £90,000 - £99,999 | 1 | 1 |
| £110,000 - £119,999 | 2 | 1 |
| £120,000 - £129,999 | - | 1 |
| £140,000 - £149,999 | - | 3 |
| £260,000 - £269,999 | 1 | - |
Total remuneration of the key management personnel of the charity was £976,168 (2021: £994,767).
9. TRUSTEES
No trustees received remuneration from the charity for their services (2021: none). No expenses were reimbursed to trustees in the period. (2021: none)
10. TAXATION
The charity is exempt from corporation tax as all its income is applied for charitable purposes. The charity’s trading subsidiary donates to the charity an amount equal to any taxable profits under Gift Aid. Consequently there is no taxation charge for the year (2021: £nil).
11. DEBTORS
| EBTORS | ||||
|---|---|---|---|---|
| Group | Charity | |||
| 2022 | 2021 | 2022 | 2021 | |
| £ | £ | £ | £ | |
| Prepayments | 103,496 | 158,522 | 103,082 | 158,522 |
| Debtors | 55,350 | 30,000 | 42,750 | - |
| Sundry debtors | - | 27,090 | - | 27,090 |
| Amounts owed by group undertakings | - | - | 478,549 | 321,638 |
| Accrued income | 1,011,651 | 426,223 | 1,011,651 | 426,223 |
| --------------------- | --------------------- | --------------------- | --------------------- | |
| 1,170,497 | 641,835 | 1,636,032 | 933,473 | |
| --------------------- | --------------------- | --------------------- | --------------------- |
Accrued income of £301,750 (2021 - £nil) in both group and charity is due after more than one year.
21
THE PRODUrn GROUP (Be the Business) NOTES TO THE FINANCIAL ATEmE5 FOR THE YEAR ENDED 31 MARCH 2022 12. CREDITORS- AMOUNTS FALLING DUE WITHIN ONE YEAR Group 2022 Charity 2022 2021 2021 Trade Creditors Sundry CdItorS Deferied income Accruals 615,699 45,772 155.625 288,600 789,674 40,752 155,000 122,024 615,699 33,416 106,875 282,522 789,647 7,537 117,824 1,105,696 1,107,450 1,038,512 915,008 13a. ANALYSIS OF NAsSET5 BETWEEN FUNDS-GROUP AND CHARITY 2022 Unrestricted Restricted Totsl 2022 funds funds Fixed Assets 8,591 2,308,991 1271.6041 13,126 21,717 2,421,809 4,730,800 1834.0921 11,105,696) Current Assets Creditors". amounts falling due within one year Net assets 2,045,978 1,600.843 3,646,821 13b. ANALYSIS OF NET ASSETS BETWEEN FUNDS-GROUP AND CHARITY 2021 Unrestri¢t¢d Restricted Totsl 2021 funds funds Fixed Assets Current Assets Creditors". amounts falling due within one year 20,106 20,106 1,076,839 3,107,478 1845.4291 11,107,450) 2,030,639 1262.0211 Nèt assats 1,768,618 251,516 2,020,134 22
THE PRODUrn GROUP (Be the Business) NOTES TO THE FINANCIAL ATEmE5 FOR THE YEAR ENDED 31 MARCH 2022 14. MOVEMENT IN FUNDS-GROUP 2022 At 1 April 2021 Income Expenditure At31 March 2022 Restricted funds BEIS Productivity through People Innovation UK Good Things Foundation Masteicaid Other (Pro Bonol 201,516 50,000 4,930,042 15,009,354) 122,204 50,000 132.849 113,911 1,420.000 5,127,907 1132.8491 144,9521 68,959 160.3201 1,359.680 15,127,907) Unrestricted funds Charity Subsidiary 1,497,049 271,569 934.643 601.850 1385,7141 2,045,978 1873.4191 Total funds 2,020,134 13,255,202 111,628,515) 3,646.821 14b. NET MOVEMENT IN FUNDS-GROUP 2021 At l April 2020 Incom• Expènditur& At31 Mah 2021 Restricted funds BEIS Productivity through People Innovation UK Other (Pro Bonol other (Construction Taskforcel 1.088.340 50,000 8.505.007 19,391.8311 201.516 50,000 132.486 7,921,015 140.000 1132.4661 17,921,015) 1140.0001 Unrestricted funds Charity Subsidiary 623.436 77,476 905.196 431,887 131.5831 1,497.049 1237,5741 271,569 Total funds 1,839,252 18,035,351 117,854,4e91 2,020,134 15a. NET MOVEMENT IN FUNDS- CHARITY 2022 At 1 April 2021 Income Expenditure Gift Aid At 31 March transfer 2022 Restricted funds 251,516 11,718.709 110,369.3821 1,768,618 934.643 11,068.9291 1,600.843 2,045.978 Unre51ricted funds 411,646 Totsl funds 2,020,134 12,653,352 {11,438,3111 411,646 3,646,821 23
THE PRODUrn GROUP (Be the Business) NOTES TO THE FINANCIAL ATEmE5 FOR THE YEAR ENDED 31 MARCH 2022 15b. NET MOVEMENT IN FUNDS- CHARITY 2021 At 1 April 2020 Income Expenditure Gift Aid At 31 March transfer 2021 Restricted funds 1,138,340 16,698,488 {17,585,3121 700,912 905,1 1109,0591 251,516 1,768,618 Unrestricted funds 271,569 Total funds 1,839,252 17,603,684 {17,694,3711 271,569 2,020,134 16. TANGIBLE FIXED ASSETS- CHARITY AND GROUP 2022 2021 Cost al 1 April Additions Disposals 38.622 14.207 25,475 13.147 As a131 Maich 52.829 38.622 Depreciation at 1 April Charged in year 18.516 12,598 7,963 10,553 As al 31 March 31,112 18,516 Nèt book valu• at 31 March 21,717 20,106 17. TRADING SUBSIDIARY The chaiity owns 100'/o of the share capital of The Productivity Group (Cornmerciall Lirniled. company number 10894488, Iregistered in England and Wales). The results for the year to 31 March 2022 are shown below. 2022 2021 Turnover Administrative costs lincluding intercompany recharge) 601,850 1190,2041 431,667 1160,0981 Net profit before taxation 411,646 271,569 Net current assets 411.646 271,569 100QA of the trading subsidiary's taxable profits of £411,646,12021." £271,569) are donated to the parent under the existing deed of covènant. 18. RELATED PARTYTRANSACTIONS There were no related party transactions In 202212021.. £nill. 24
THE PRODUrn GROUP (Be the Business) NOTES TO THE FINANCIAL ATEmE5 FOR THE YEAR ENDED 31 MARCH 2022 19. GROUP STATEMENT OF FINANCIAL ACTIVITIES 2021 Note5 Unrestricted Funds Restricted Funds Total 2021 In¢ome and endowments from= Donations and legacies Charitable activiti'es.. BEIS Grant Other Other Trading Income 905,000 7,921,015 8,826,015 8,505,007 272,466 8,505,007 272.662 431,867 196 431,S67 Total Incomè 1,336,863 16,698,488 18,035,351 Expenditure on: Raising funds Charrtable activth'es 2S9,157 17,585,312 17,854,469 Total Expenditure 269,157 17,585,312 17,854,469 Nat IncomellExpondlturèl 1,(K7,706 1886,8241 180,882 Net Movement in funds 1,C67,706 1886,8241 180,882 Reconciliation of funds Total funds brought forward 700,912 1,138,340 1,839,252 Total funds carrfèd foNard 1,768,618 251,516 2,020,134 All the above results are derived from Continuing a¢tivities. There are no re¢ognised gains 01 losses other than those slated above. 25