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## **MARGINAL CIO**
# **ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2020**
**Charity number: 1178831**
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## **CONTENTS**
||**PAGE.**|
|---|---|
|**Trustee Annual Report**|**3**|
|**Statement of Trustees’ Responsibilities**|**5**|
|**Statement of Financial Activities**|**6**|
|**Balance Sheet**|**7**|
|**Notes to the Financial Statements**|**8**|
|**Independent Examiner’s statement**|**9**|
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## **Trustee Report**
## **OBJECTIVES AND ACTIVITIES**
In so far as it is complementary to the charity's objects, the charity is guided by both local and national policy. Advice from local organisations has proved invaluable to the charity in establishing improved links within the community and identifying relevant policy developments and prospective funding. The principal objects and activities in the year under review continued to focus on the development of social welfare, physical and mental health of children and young people aged 13+ within the Liverpool City Region.
This is achieved by providing leisure time activities designed to develop young people’s capabilities so that they may grow to full maturity as individuals and members of society. The charitable company operates a number of projects and initiatives and works in partnership with other agencies to ensure the widest: range of services are available that best match the needs of its client population.
## **PUBLIC BENEFIT STATEMENT**
In considering the objectives and activities, the Trustees have considered Charity guidance on public benefit to ensure that the organisation is meeting its requirements.
## **ACHIEVEMENTS AND PERFORMANCE**
This has been an incredibly exciting time for the development of Marginal CIO our activities! We have been able to deliver a ground-breaking and accessible publishing and story development workshops to over 340 marginalised children and young people across the Liverpool City Region. We have specialised in supporting children and young people between the ages of 8-25 including: looked after children, young carers, care leavers, LGBTQIA young people, SEND young people, young people suffering with chronic and life limiting illnesses and young people experiencing low and complex mental ill-health. In the last financial year we have delivered open access and closed groups for children and young people based in community centres, children’s homes, libraries and Alder Hey Children’s hospital to reduce participation barriers. During the past year we are extremely proud to attract funding from two renowned grant funders such as the Postcode Lottery and the National Lottery Community Fund’s Awards for all programme. Our highlights during the past year include working with young people at Alder Hey Children’s hospital to draw again after significant surgeries, curating a comic book about young people’s experiences of chronic and terminal illness in addition to developing a young artists programme for young people discharged from Alder Hey Children’s Charity.
Evaluation output has indicated that 73% of children and young people improved their mental health; 62% of children and young people reported a reductions in feelings of suicidal ideation and 78% of children and young people reported a significant improvement in social connectedness post accessing our support for 12 weeks or more. Evaluation output further uncovered that 68% of children and young people who accessed our services had never previously accessed youth services due to the fact that they found other ‘generic youth work’ services too triggering and frightening; 52% had reduced their A&E Attendance; 71% of children and young people felt like no one ‘understood’ them. On initial engagement 83% of young people reported feeling lonely; with 59% of young people citing that they had little e to no friends.
The local community has benefited from an increased offer of positive youth activities in areas across the Liverpool City Region that focus on destigmatizing mental health issues within young people. Local communities have also benefitted from closer community cohesion, especially from being able to offer more volunteer opportunities, leading onto access to teacher training courses, further education, or full-time employment.
The generous donations and funding received through businesses, community fundraising and COVID-19 support funding meant that we could continue with our work at an accelerated pace.
## **FINANCIAL REVIEW**
Total income for the year was £10 0 ,000 . Total expenditure in the year was £ 6 2293, leaving a surplus for the year. The charitable company’s reserves stand at £62,513.
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## **RISK MANAGEMENT**
The main risks to which the charitable company is exposed as identified by the Trustees has been considered and systems have been established to mitigate those risks.
## **RESERVES POLICY**
Reserves policy: It is the policy of Marginal CIO to maintain unrestricted funds, which are free reserves at a level to cover 3 months running costs (£5,000) and redundancy costs. We will see to address the shortfall of our required 3 months running reserves through implementing a robust fundraising and sustainability strategy moving forward into the next financial year. As an organisation we will focus on increasing our reserves to the required amount through building full cost recovery into our grant and trust funding applications to lessen reliance on unrestricted income that is generated through zine sales and session commissioning.
## **PLANS FOR THE FUTURE**
We have had an exciting and positive start to the year and will:
- Continue to develop Marginal as the first young person led publishing house in the UK.
- Develop needs led services to better support the needs of children and young people to thrive against austerity.
- Expand our drop-in sessions
- Develop a volunteer development programme to upskill children and young people to take ownership of Marginal CIO in the future.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
Marginal CIO (the charity) is an incorporated entity governed under a Constitution of an Incorporated Organisation. The Trustees are responsible for the overall management and control of Marginal CIO and hold regular meetings.
All trustees give their time freely and no remuneration was paid during the year.
The charity is run by the Trustees. The Trustees are made full members of the organisation, elected annually at the Annual General Meeting.
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## **MARGINAL CIO STATEMENT OF TRUSTEES RESPONSIBILITIES**
The Trustees are to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the CIO as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year.
In preparing those financial statements, the Trustees’ should follow best practice and
- Select suitable accounting policies then apply them consistently
- Observe the methods and principle in the Charities SORP
- Make judgements and estimates that are reasonable and prudent
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the CIO will continue as a going concern
- State whether applicable accounting standards have been followed, subject to any material departure disclosed and explained in the financial statements.
The Trustees’ are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the CIO and enable them to ensure that the financial statements comply with all the relevant processes. They are also responsible for safeguarding the assets of the CIO and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
This report has been prepared in accordance with the Charities act 2011, Accounting and Reporting by Charities; Statement of Recommended Practice (SORP 2015) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1st January 2015).
## **By Order of the Board**
**………………………………….. Rhiannon Mair, Chair**
**Date: 27/12/2021**
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## **MARGINAL CIO STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31st DECEMBER 2020**
|**Income and endowments**|**Notes Unrestricted**|**Notes Unrestricted**|**Restricted**|**Total funds**|**Total funds**|
|---|---|---|---|---|---|
|**from**||**funds**|**funds**|**2020**|**2019**|
|Charitable activities|1|100000|10000|110000|24500|
|Other trading activities||0.00|0.00|0.00|0.00|
|**Total income**||**100000**|**10000**|**110000**|**24500**|
|**Expenditure on**||||||
|Charitable activities|2|52293|10000|62293||
|Total expenditure||**52293**|**10000**|**62293**|**18531**|
|**Total funds brought forward**||**24500**|**0.00**|**72207**|**24500**|
|**Total funds carried forward**||**72207**|**0.00**|**72207**|**24500**|
**All the above amounts relate to continuing activities of the CIO**
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## **MARGINAL CIO BALANCE SHEET AS AT 31st DECEMBER 2020**
|Notes|31st|31st|31st|
|---|---|---|---|
||December 2020|December 2020|December 2019|
||(Unrestricted)|(Restricted)|(Unrestricted)|
||£|£|£|
|**Fixed Assets**||||
|Tangible Fixed Assets|0.00|0.00|0.00|
|**Current Assets**||||
|Cash at bank and at hand|67062|0.00|24500|
|Prepayments|5145|0.00|0.00|
||_ _ _ _ _|_ _ _ _ _|_ _ _ _ _ _|
||72207.00||24500|
|**Current Liabilities**||||
|Creditors: amount falling||||
|Due within 1 year|0.00|0.00|0.00|
||_ _ _ _ _|_ _ _ _ _|_ _ _ _ _ _|
|**Net Current Assets**||**72207**|**24500**|
|||**_ _ _ _ _**|**_ _ _ _ _ _**|
|**Total Assets less Current Liabilities**||**72207**|**24500**|
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**These financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of ireland (FRS102).**
## **MARGINAL CIO FINANCIAL NOTES OF THE YEAR ENDED 31st DECEMBER 2020**
|**Note 1. Income**
**Brought forward**
**Grant income-Children**
**In Need- for Project worker**
**Salary & stationery**
**CY Commission**|**Unrestricted funds**
**2020**
**24,500**
100,000
**124,500**|**Restricted funds**
**2020**
10,000
**10,000**|**Total Funds**|
|---|---|---|---|
||||**2020**
**24,500**
10,000
100,000
**134,500**|
## **Note 2. Expenditure on charitable activities**
|**Project Session worker**
**Printing Costs**
**Artwork**
**Adobe creative suites**
**Accounts preparation**
**Insurance**|**Unrestricted funds**
**2020**
**22857.01**
25000.00
2205.00
1674.00
450.00
106.74
**52292.75**|**Restricted funds **
**2020**
**10000.00**
**10000.00**|**Total Funds**
**2020**
**32857.01**
25000.00
2205.00
1674.00
450.00
106.74
**62292.75**|
|---|---|---|---|
## **Description of Funds**
BBC Children in Need- £10k Towards project worker costs
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## **Independent Examiner’s report**
I report to the trustees on my examination of the accounts of the above charity (“the Trust”) for the year ended 31/12/2021
## **Responsibilities and basis of report**
The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. It is my responsibility to:
- examine the accounts under section 145 of the 2011 Act,
- to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the 2011 Act, and
- to state whether particular matters have come to my attention.
## **Basis of Independent examiner’s statement**
## **Independent examiner's statement**
My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a 'true and fair' view, and the report is limited to those matters set out in the statement below.
In connection with my examination, no matter has come to my attention: (1) which gives me reasonable cause to believe that in, any material respect, the requirements:
- to keep accounting records in accordance with section 386 of the Companies Act 2006; and
- to prepare accounts which accord with the accounting records and comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting Charities have not been met; or (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Signed: _J C McChrystal_ Date: 27/12/2021 Name: J C McChrystal Qualification: CIMA Adv diploma of management AC