## **Patchwork Foundation (CIO)** Charity Number: 1177576 ## **Trustees Annual Report and Financial Statements** For the period ended 31st December 2021 1 ## **Table of Contents:** |_Reference and Administrative Information_|_3_| |---|---| |_Objectives and Activities_|_5_| |_Achievements and Performance_|_8_| |_Structure, Governance and Management_|_13_| |_Financial Review_|_14_| |_Independent Examination_|_17_| |_Receipts and payments accounts_|_19_| Patchwork Foundation Trustees Report | Ended 31st December 2021 2 ## **Reference and Administrative Information** Charity Name: Patchwork Foundation (Patchwork) Charity Number: 1177576 Company Number: 08487395 Areas of Operation: England and Wales Operational Address: Unit C119, Trident Business Centre, 89 Bickersteth Road, Tooting, London, SW17 9SH Trustees: Farmida Bi CBE (Chair) Harris Bokhari OBE - concurrently Ltd company director Oluwafunmilayo Shogelola - concurrently Ltd company director Jonathan Holt (Treasurer) Melanie Dawes DCB Simon Fraser GCMG Poppy Mitchell-Rose Sheikh Aliur Rahman Key Management: Imran Sanaullah MBE (CEO) Bankers: Al-Rayan Bank The Co-operative Bank Accountant: Turpin Barker Armstrong Allen House, 1 Westmead Road, Sutton, Surrey, SM1 4LA Patchwork Foundation Trustees Report | Ended 31st December 2021 3 The Patchwork Foundation (Patchwork or the Foundation or the Charity) Trustee Board presents their report and the audited financial statements as a charitable incorporated organisation (CIO) for the Charity’s fourth period, starting 1st January 2021 and en ding 31st December 2021. Patchwork’s reporting period was adjusted to better align with the Foundation programme of activity which follows the calendar year. Reference and administrative information are set out on page 3, and form part of this report. The financial statements comply with current statutory requirements, Patchwork’s constitution and the Statement of Recommended Practice (SORP) issued by the Charity Commission for charities preparing their accounts in accordance with FRS 102 (‘Accounting and Reporting by Charities’). Patchwork was previously operated and managed as a company limited by guarantee (Patchwork Foundation Limited, company number 08487395), but was successfully registered as a CIO on 19th March 2018. The company now serves as a method of income generation for the Charity and donates all profit to the Charity as described under ‘Structure, Governance and Management’. All other functions and activities are managed and overseen by the Charity and the Trustees. Patchwork Foundation Trustees Report | Ended 31st December 2021 4 ## **Objectives and Activities** Patchwork’s key objective, as set out in our governing document, is to further the engagement of young people in the UK (18-30 years old) who come from underrepresented, deprived and minority communities, and provide opportunities for them to more actively participate in the democratic processes and wider civil society of the United Kingdom, by: - (a) advancing their education and knowledge of the United Kingdom’s democracy and civil society; - (b) providing advice and assistance, programmes, activities and other support to develop their skills, capacities and capabilities; and - (c) helping and encouraging them to implement their knowledge in their lives, including taking active roles in public life and civil society. The Patchwork Trustee Board has reviewed the aims, objectives and activities of the Charity and will continue to review these annually. The Trustees have referred to the general guidance provided by the Charity Commission regarding public benefit when reviewing the Charit y’s aims and objectives, assessing the Charity’s current activities and planning its future activities. Patchwork Foundation runs a number of initiatives and programmes to support the involvement of young people with diverse lived experience in British politics and democracy, from across England and Wales but primarily centred around London. Through these, we support their development and learning by encouraging institutions and senior individuals to engage directly with young people. Patchwork delivers its objective through three distinct programmes: ## ● **Masterclass Programme** A 10-month programme which provides participants with the opportunity to learn from senior figures within politics, civil society, industry and journalism. The programme also develops soft skills, such as networking, public speaking and chairing, and includes in-depth Q&A sessions with the tutors to learn about the nature of their work. The sessions are hosted by corporates, government departments, politicians and philanthropists to make physical spaces that beneficiaries might otherwise not enter more Patchwork Foundation Trustees Report | Ended 31st December 2021 5 acce ssible. The programme delivers on both parts of the Foundation’s purpose, ensuring that graduates of the programme leave with a better understanding of the work done by senior politicians, civil servants and business people, as well as increased self-belief, confidence and knowledge, in order to engage with prominent individuals and develop their personal aspirations for future roles in wider society. Patchwork continues to support programme graduates through its alumni network. ## ● **#GetInvolved Programme** The #GetInvolved initiative is focused on the involvement and engagement of young people in British democracy by working directly with political parties. The first element sees the Foundation working closely with the parties to support young people in developing their understanding of political campaigning methods and techniques. By enabling such interactions, beneficiaries of the programme not only learn about the processes and procedures but also develop greater skills and confidence to both engage with such work in the future and lead on initiatives they feel passionately about. The Foundation also provides the opportunity for complimentary passes to political party conferences for young people, and supports these attendees by providing bespoke sessions and access to senior party figures to remove any barriers to engaging with key decisionmakers. Through the Party Conference Programme, the Foundation also provides soft skills training and techniques for participants to use in their professional development. ## ● **MP of the Year Awards** The MP of the Year Awards (MPotY) seeks to support and encourage MPs to engage with underrepresented and minority communities, by recognising those who have actively sought to engage and represent these communities in the UK. All MPs are nominated by the public, with the Foundation carrying out independent research. This research is then anonymised and provided to a panel of independent judges from leading charities or organisations focused on supporting those from underrepresented communities. Our young people are provided with an opportunity to vote for their ‘Young People’s MP of the Year’. The awards are intended to serve as a driver for all MPs to engage with underrepresented communities and to highlight best Patchwork Foundation Trustees Report | Ended 31st December 2021 6 practice amongst electorally elected representatives to engage with those who may be overlooked due to their limited voting or political capital. Patchwork focuses on the three key initiatives above in order to deliver its mission and purpose, and deliver a wider public benefit. The Foundation delivers the programmes and activities through an efficient small staff team. Staff support a wider number of volunteers, who assist with the Foundation’s delivery of operations. In addition to the three core areas of work the Foundation also supports a growing network of alumni from the Masterclass and #GetInvolved programmes to ensure their long-term development and positive contribution to wider society following the programme(s). Patchwork Foundation Trustees Report | Ended 31st December 2021 7 ## **Achievements and Performance** During the reported period, Patchwork’s Masterclass Programme supported 77 young people over the 10-month programme. The #GetInvolved Programme engaged around 400 young people in grassroots democracy, including providing the opportunity for 36 young people to attend one of the three major political party conferences. Due to the challenges posed by the pandemic, the Foundation sought to create meaningful opportunities for digital engagement. The MP of the Year Awards 2021 saw 48 MPs nominated from across the country. To support the activities, the Foundation spent £171,447 over the reporting period. ## **Programme Achievements** Over the reported period, the Foundation’s core programmes continued to grow and our evaluations showed that the programmes are highly effective. - **Masterclass Programme** This year’s flagship Masterclass Programme received two special Masterclasses with Nabeel Irshad, Vice President at Mastercard, and with Richard Moore, Chief of the Secret Intelligence Service. Evaluation of the programme showed the following results: - 84% reported feeling comfortable putting forward their ideas, compared to 63% beforehand - 89% reported feeling confident solving a problem impacted by politics, compared to only 50% beforehand - 94% reported feeling confident working with someone with opposing views to their own, compared to 64% beforehand - 98% would recommend the Masterclass Programme Patchwork Foundation Trustees Report | Ended 31st December 2021 8 ## ● **#GetInvolved Programme** The Foundation was able to work with a network of political parties to provide access to the Party Conferences for selected candidates, providing them with unique development and learning opportunities. The impact of the programme showed that young people selected for the programme had an increased and improved understanding of our democracy and how to engage with it. Evaluation of the Party Conference Programme showed: - 100% said they would recommend the programme to others - ○ Participants reported feeling a 24% increase in access to politicians Participants were also able to attend a number of events from the London Mayoral elections, including ‘In Conversation With’ events with the four highest polling Mayoral candidates: Labour’s Sadiq Khan (in collaboration with Partnership for Young London), Green’s Sian Berry, Conservative’s Shaun Bailey and Liberal Democrat’s Louisa Porritt. All four events saw 270 attendees. The Foundation also held an event in collaboration with the U.S. Embassy, looking at ‘The Biden Administration: 100 Days in Office’, which saw 104 attendees. ## ● **MP of the Year Awards** The MP of the Year Awards saw 48 Members of Parliament nominated, and over 80 people attended our in-person ceremony. ## ● **Alumni** Since the Foundation’s creation, it has amassed an alumni network of over 450 young people who are graduates of its programmes. Alumni are engaged on a monthly basis through newsletters and events, which see consistent levels of high engagement. The Foundation held two Alumni Masterclasses this year, one with Sir James Bevan, Chief Executive of the Environment Agency, and one with Munira Mirza, Director of No 10’s Policy Patchwork Foundation Trustees Report | Ended 31st December 2021 9 Unit. The Foundation partners with organisations to create unique opportunities for the Alumni network. Examples in this reported period include: - Joining the Mayor of London and other C40 Mayors to mark the beginning of COP26 - Attending a Downing Street roundtable on the vaccine rollout and young people - Attending a Downing Street Black History Month event, to hear from Colour Sergeant Johnson Beharry - **Summer Diversity Internship Scheme** The Foundation launched a Summer Diversity Internship Scheme, a paid 6 week internship opportunity for 11 young people. The programme ran 3 fortnightly rotations across different departments of CCHQ as well as attending ‘Patchwork Development Days’. The pi lot was launched in partnership with CCHQ, and the Foundation is in discussions with the other major political parties to expand the scheme in order to ensure it remains apolitical. Evaluation of the programme showed: - 91% of participants felt they had gained the skills and knowledge they wanted - 100% of participants would be likely to recommend the internship ## **Accessibility Fund** Throughout this period, the Foundation made available an ‘Accessibility Fund’ which sought to remove financial barriers f or participants on the Foundation’s programmes. In the reported period, the Foundation covered the cost of beneficiaries including items such as travel, accommodation and requirements such as clothing and equipment required by the programmes. Patchwork Foundation Trustees Report | Ended 31st December 2021 10 ## **Beneficiaries** The scope of young people Patchwork supports is restricted by two elements: age and background. All beneficiaries of the programme are aged between 18-30 years old and must be from a democratically underrepresented, disadvantaged or minority community. With the scope of those who are democratically underrepresented being wide-ranging, it enables the Foundation to support a range of young people from across England and Wales, taking into consideration factors such as but not limited to: socio-economic background, race, faith, education, gender, sexuality, disability and geography. The Foundation assesses participants on the scope of opportunities that may or may not be naturally available to them to ensure the resources of the Charity are invested in those in most need. ## **Wider Benefits** Beyond the quantitative impact and success of the programmes, the Foundation feels the benefit and impact is better captured through the journey of the beneficiaries. During the reported period, graduates have gone on to work in Parliament, the Civil Service, Local Authorities, charities, political campaigns, teachers, medical professionals, and other roles in the private sector. The Foundation works to not only support the development of young people but also to ensure they are well equipped to succeed in any profession they may choose, and become positive assets to both wider society and the organisations and communities they go on to engage with. The Foundation’s work with political parties, government depart ments and private companies to promote social mobility of young people from underrepresented, disadvantaged and minority communities benefits not only the Charity’s beneficiaries, but also other young people in similar situations or backgrounds who interact with the Patchwork participants. One of the beneficiaries of the 2021 Masterclass Programme has explained the impact in their testimonial: _“I’m a huge Patchwork advocate because this programme has made me even more hopeful to see greater diversity of background, thought and colour in politics, and similar engagement. I’ve come away having honed_ Patchwork Foundation Trustees Report | Ended 31st December 2021 11 _my political skills and knowledge with experience and exposure that makes me a lot more comfortable in these spaces. Most importantly, there has been a sharp up turn in my self confidence and belief that I can do it too.”_ The Trustees confirm that they have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers and duties. The p ublic benefit of the Charity’s activities is to help young people to advance in life by promoting and encouraging young people from underrepresented, disadvantaged and minority communities to actively participate in the democratic processes and wider civil society of the United Kingdom. ## **Administration** The Foundation staff team maintained three full-time members of staff, and acquired a new ‘Executive Assistant’ position, working on a part -time basis, who started in June. The Charity continues to focus its efforts on being volunteer led, enabling ongoing personal and professional development of Alumni. The staff team and Trustees support the voluntary team, all of whom are from the communities Patchwork seeks to support and engage. Volunteers also support the strategic direction and long-term approach of the Foundation’s activities. ## **Plans for the future** In line with the Foundation’s growth plans, the next three years will see the stabilisation and expansion of the Foundation’s core programmes to increase the number of beneficiaries, as well as understanding how it can provide greater support to young people at the intersections of disadvantage. The Foundation is also looking to diversify its income stream to ensure greater sustainability of the Charity and resilience in the longterm. Patchwork Foundation Trustees Report | Ended 31st December 2021 12 ## **Structure, Governance and Management** The Patchwork Foundation has a full trustee board, comprising eight members and chaired by Farmida Bi. All Trustees have signed a code of conduct in line with the aspirations and aims of the Charity and have been provided with guidance provided by the Charity Commission on responsibilities of the trustee board. None of the trustees has any beneficial interest in the Foundation. The board meets four times a year (once a quarter) supplemented by an annual away day to focus on strategic development and growth. Each board meeting includes detailed reporting from the CEO and COO to the board, with the trustees giving active consideration to the progress of the Charity in achieving its key targets and fulfilling its purpose. This also includes updates on fundraising performance and budget sign off and review for the Foundation to achieve its objective and targets. The Trustees delegate responsibility for the day-to-day operation and management of the Foundation to the Charity. The CEO manages all of the Foundation staff, ensures the Foundation delivers on agreed objectives set out by the Trustees, and is tasked with reporting to the Board on all aspects of the Foundation’s ope rations and finances as well as potential risks or issues. Although largely dormant, the Patchwork Foundation Ltd has two Trustees who are concurrently directors of the CIO: Harris Bokhari and Oluwafunmilayo Shogelola. The company only deals with financial income relating to consultancy or delivery work, which is used to generate income for the Charity. All profits from the company are donated to the Charity without exception. The CEO of the Charity managed the limited day-to-day activity of the company. In September, the Trustees made the decision to wind down the company activities, and absorb the remnants solely into the Charity. Patchwork Foundation Trustees Report | Ended 31st December 2021 13 ## **Financial Review** The Foundation opened a second bank account with The Co-operative Bank, to use as a day-to-day account, and maintained the Al-Rayan account as a secondary account. For the accounting period 1st January 2021 to 31st December 2021, the Foundation was able to raise £154,901 in donations, of which £126,151 was unrestricted. In total, £171,447 was spent on the Foundation’s charitable activities for this period. The long- term support for the Foundation’s programmes has enabled the Foundation to budget for funding to cover all costs associated with its charitable activities. ## **Reserves Policy** The Trustees have agreed to maintain a balance of the Foundation’s unrestricted income from the Foundation’s donations to increase to one year core running costs, increased from nine months. The Foundation’s reserves seek: - to provide a level of working capital that protects the continuity of our core work - to provide a level of funding for unexpected opportunities - to provide cover for risks such as unforeseen expenditure or unanticipated loss of income The Foundation’s reserve at the end of the reporting period is equivalent to 12 months. ## **Remuneration policy for key management personnel** The Trustees have identified the CEO as the key management personnel of the Charity. Executive pay is determined by the Trustees. In line with the Foundation’s expected growth and transition from a small limited company, the Trustees will be reviewing staff pay to ensure it is comparative to salaries within the sector, specialism and skill of the staff and with due regard to “value for money”. 1 employee are earning above £60,000 per annum with all remaining employees earning below £60,000. Patchwork Foundation Trustees Report | Ended 31st December 2021 14 ## **Risk** The Foundation does not have any financial investments or debt. The Trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks. ## **Statement of Trustee’s responsibilit ies** The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with 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). The law applicable to charities in England and Wales required 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 income and expenditure of the Charity for that period. In preparing these financial statements, the Trustees are required to: - select suitable accounting policies and then apply them consistently; - ○ observe the methods and principles in the Charities SORP; - make judgements and accounting estimates that are reasonable and prudent; - state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements, and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business. The Trustees are responsible for maintaining proper accounting records which 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 Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed/constitution. 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. Patchwork Foundation Trustees Report | Ended 31st December 2021 15 The Trustees are responsible for the maintenance and integrity of the Charity and financial information included on the Charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. This report was approved by the Trustees on 28[th] October, 2022, and signed on their behalf by: ………………………… Farmida Bi CBE Chair Patchwork Foundation Trustees Report | Ended 31st December 2021 16 CHARITY (OMMISSION FOR ENGLAND AND WALES Independent examiner's report on the accounts Section A Independent Examiner's Report Report to the trusteesl members of Patchwork Foundation On accounts for the year ended 31$1 December 2021 Charity no (if any) 1177576 Sot out on pages 1&2 I report lo the trustees on my examinalion of the accounts of the above charity ('the Trust.) for the year ended 3111212021. Responsibilities and basis of report As the charity's trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 {"the Act-}. I report in respect of my examination of the Trust's accounts carried out under section 145 of the 2011 Act and in carying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5Mb) of the Act. Independent I have completed my examination. I confirm that no material matters have examlnerfs statement come to my attention in connection with the examinalion (other than Ihal disclosed below ') which gives me Gause to believe that in, any material respect.. the acxounting remrds were not kept in accordan￿ wilh section 130 of the Charities A¢t- or the accounts did not accA)rd with the accounting records., or the accounts did not comply with the applicable requirements concerning the fom and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair, view which is not a matter considered as part of an independent examination. I have no GOn￿rn$ and have come across no other matters in connection with the examinalion to which attention should be drawn in this report in order to enable a proper underslanding of the accounts to be reached. Slgned: 21 Name: David Payne Relevant professional qualifiGation(s} or body {rf any): FCA Addres8: Turpin Barker Armstrong Allen House, 1 Westmead Road, Sutton. Surrey, SM14LA Section B Disclosure Only complete if the exarniner needs to highlight material matters of concern (see CC32, Indep8ndenl examination of charity accounts.. directions and gui¢Jance for examiners}. Givè horn briof dotails of any items that the xaminèr wish•s to disclose. NIA Oct CHARITY COMMISSIO FOR ENGLAND AND WALE Receipts and payments accounts CC16a For the period from To 01-Jan-21 31-Dec-21 Section A Receipts and payments Unrestricted funds Restricted funds Endowment funds Total funds Last year to the nea￿$t to the nearest£ to the nearest£ tothe nearest£ to the nearest £ A1 Receipts Donations PaiGhwork Ltd Oiher In¢ome- rent VAT repayment 126,161 24,000 1,750 2,941 28,760 154,901 24,000 1,7SO 2,941 163,473 2,327 Sub total(Gross income for AR) 154,842 28.750 183,592 165,800 A2 Asset and investment sales, (see tablel. Sub total 154,842 28.750 183.592 165,800 A3 Payments Staff Costs Staff bonus Website Maintenance FLJndr8lsln Selinvolved Masterdas5 P[￿raMme Rent Subs¢ripiion & Membership Independent Examination Insurance MPoTY-Awards and expanses Telephone Volunteer exFEn5es Travel and ￿nSUMable$ IT Softsvare and consum8bks Postage and slalionery Accountancy fee Equipment Other expenses Pension cost Employtrs National insuran¢a 9,406 128,620 137.925 147,250 3,835 350 263 80 2,745 6,524 424 1,500 656 2,078 305 99 247 2,743 750 339 339 262 3.906 1,734 6,412 1.339 262 3,906 1,734 6,412 1,339 735 735 1,734 158 345 1.734 158 345 116 2,571 116 2,571 1,349 1,181 2,J06 2,349 3.167 240 2,320 3,500 37,025 2,306 2,349 3,157 240 2,320 3.500 171,447 Computer consumables Legal expenses Sub total 134,422 172,379 A4 Asset and investment purchasés. Iseè tablé) ui ment, assets 3,717 3.717 Sub total 3,717 3,717 Total payments 40,742 134,422 175,164 172,379 Net of receipts/(paymentsJ A5 Transfers b•twaèn funds A6 Cash funds last year end Icash funds thiTS year end 114,101 105,672 221,325 229,753 105,672 105,672 8,429 6.579 221,32S 229,753 227.904 221,325 Section B Statement of assets and liabilities at the end of the period Unrestricted funds Restricted funds Endowtnent funds Catsgories Detsils to nearest £ to nearest £ to nearest£ B1 Cash funds 184.003 45.750 Total cash funds 229,753 (ag￿e baL9neeSv￿h rece1￿$ 2nd poyments aKounll$ll Unrestricted funds to n8ar8$t £ Restricted funds to nearest £ Endowment funds to noar•st£ Details Fund to whl¢h asset ￿lon eurrent value Details Cost loptionall Fund to which asset bplon cost loptlonall Current value Details B4 Assets retalned for the charity's own use Fund to whl¢h relates Amount d¥e When tlue lonal Details BS Liabilities Signed by on8 or Iwo trustses on behalf of all the Iru51ee5 Signature Print Name Date of ioval Famiida Bi CBE 28110122