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2023-08-31-accounts

Charity registration number 1184633

Company registration number 11518374 (England and Wales)

THE KEY - UNLOCK POTENTIAL

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2023

THE KEY - UNLOCK POTENTIAL

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Suzanne Thompson
Emily Mellon
Alex Raikes (Appointed 1 July 2023)
Natalie Steadman
Simon Arnold
Lisa Gill
Catrin MacDonnell
Rachel Webb Wiles
Joanne Hadden
Sharon Woma
Oliver Swayne
Charity number 1184633
Company number 11518374
Registered office 4-6 Longmead Avenue
BRISTOL
BS7 8QB
Independent examiner Old Mill Accountancy Limited
Unit 2
Greenways Business Park
Bellinger Close
CHIPPENHAM
Wiltshire
England
SN15 1BN

THE KEY - UNLOCK POTENTIAL

CONTENTS

Page
Trustees' report 1 - 6
Independent examiner's report 7
Statement of financial activities 8
Balance sheet 9
Notes to the financial statements 10 - 15

THE KEY - UNLOCK POTENTIAL

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 AUGUST 2023

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

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

Objectives and activities

The purposes of the charity, as set out in its governing document is as follows:

The ethos behind this charitable purpose is to improve prisoner rehabilitation and resettlement, by offering employment and training opportunities. Additional wrap-around support will provide more sustainable, long-term and ideally permanent employment.

The charity's business model accords with the Ministry of Justice (MoJ)'s Education and Employment Strategy. This seeks to support the strategic priorities to reduce re-offending, reduce future victims of crime, reduce the financial burden on taxpayers and the welfare state, and improve the heath and well-being of ex-offenders. This is underpinned by the charity's key intended outcomes and business priorities.

Intended outcomes

The core intended outcomes that the charity has identified for the beneficiaries of the charity and for the public benefit are:

Business priorities

In order to successfully achieve these outcomes, the charity aims to prepare and agree a business model that prioritises:

Public benefit

The board is aware of the guidance on carrying out its purposes for the public benefit and has maintained due regard to the Commissioner's public benefit guidance when exercising powers or duties to which the guidance is relevant.

THE KEY - UNLOCK POTENTIAL

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

Activities

During the year, the Board has been meeting monthly and set up working groups to drive the project forward.

Rachel Webb Wiles is the legal lead and assists the Board in relation to general charity governance, including putting relevant governance policies in place. Lisa Gill is the finance lead and assists the Board with the charity’s accounts, engages with charity accountants, and puts relevant finance policies in place.

We engaged the services of Olly Swayne as part time freelance project manager to fundraise and further develop the business plan and financials / budgets.

The Board considered Olly’s role as trustee and potential conflicts of interest prior to his appointment as project manager and ensured that an appropriate agreement and processes were put in place to properly separate his responsibilities. The Ministry of Justice set a fundraising target of £150,000, to be raised by 31 March 2023, to establish the credibility of the charity. Olly Swayne was able to double pledges raising in excess of £250,000 during his time as project manager.

Working with Intend Design, planning permission was sought and agreed. Plans to engage a building contractor were put in place.

The board of trustees

Alex Raikes, CEO of SARI joined the Board in July 2023.

Establishing professional relationships

The charity’s purpose has been supported by a range of stakeholders including the Avon & Somerset Police and Crime Commissioner, the current and previous HMP Bristol prison governors, High Sheriff of Bristol and the previous city Mayor and Current Metro Mayor.

Charity memberships

The board has continued charity membership with Voscur, a local non-profit training provider, with training benefits to ensure the charity and its members are aware of the legal structure, regulations and reporting requirements for the charity, and the roles and responsibilities of trustees.

The board has also continued membership with the National Council for Voluntary Organisations (NCVO). Both memberships will be used to keep the board will informed of the latest advice, guidance, and support for non-profit organisations.

Achievements and performance

Significant activities and achievements against objectives

This year has seen good progress, with the Board meeting monthly and working parties established to drive the project forward.

The charity continues to working closely in partnership with The Restore Trust and Bristol HMP, to develop the charity’s Business Strategy and to look at options to support prisoners gain employment on release from prison and to gain ‘purposeful’ skills and training whilst still in prison.

The charity’s business model accords with the Ministry of Justice (MoJ)’s Education & Employment Strategy and seeks to support the strategic priorities to reduce re-offending, reduce future victims of crime, reduce the financial burden on taxpayers and the welfare state and improve the health and well-being of ex-offenders.

Agreement of lease

We have received Heads of Terms and now we anticipate the finalised lease to be agreed over the coming months.

THE KEY - UNLOCK POTENTIAL

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

Financial review

Total incoming resources for the year ended 31 August 2023 were £141,608 (2022: £16). Included in incoming resources for the year were donations of £141,250 (2022: £10).

Total resources expended for the year ended 31 August 2023 were £31,107 (2022: £1,541).

Net incoming resources for the year ended 31 August 2023 amounted to £110,501 (2022: net expenditure of £1,525).

The charity’s balance sheet as detailed on page 9 shows a satisfactory position with funds amounting to £129,990 (2022: £19,489). These reserves were all represented by unrestricted fund.

Going concern

The accounts have been prepared on the assumption that the charitable company is able to continue as a going concern. The charity holds unrestricted general reserves of £129,990 (2022: £19,489). Therefore, the trustees are satisfied that the charity is in a position to continue.

Reserves policy

As the charity has had little activity since incorporating, and registering as a charity, it does not currently feel a need to hold a specific level of reserves.

However, this year has seen good progress now that the business plan has been further developed, and the project is being driven forward, and so the trustees are looking to set out a reserves policy for future periods.

THE KEY - UNLOCK POTENTIAL

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

Plans for future periods

Charity AIM - short term - 3-6 months

To open a cafe and retail unit on Gloucester Rd, in the Ridd Building. This cafe will offer paid work to prisoners on ROTL and ex offenders with the aim to help build skills and confidence so that they can find employment. The Key charity’s goal is to help reduce reoffending as over 50% of prisoners leaving prison reoffend due to lack of education, options and support. The Restore Trust will support the charity with initial health and safety training as well as on going support to add to their skills and qualifications.

Our close links with Horfield prison will be reflected in the cafe and retail space, with ingredients being made in the prison eg chutneys, granola that can be sold in the cafe.

The Key has obtained planning permission for the unit and works will begin in March / April 2024. The Ministry of Justice who owns the building has granted a lease.

Our two project mangers have identified builders after a tender process and as soon as the lease is signed, works will begin to create a functioning cafe. They are in discussion with Horfield prison and Leyhill to identify potential staff for the cafe.

We will recruit a general manager approximately one month before opening and two supervisors for the opening date to support them.

We aim for the Key cafe will be a self sufficient entity which after the first year will not require funding. It will reinvest any small profit into the charity.

Medium term - 6-12 months

Charity core costs: We have raised funds to open the refurbish the building and open the cafe. We are also looking at employing staff for the Key as a charity to enable it to extend services and be a sustainable charity in its own right. This will mean we can operate as a hub for charities across Bristol and signpost those in need to the relevant support. For this to happen we will require core funding. Members of the Board are identifying what is needed and formulating a plan to achieve this.

Once the cafe has been running for 6 months, we will start planning for further activities such as catering and offering meeting rooms for local businesses and charities. We have identified the floor above the cafe as a potential space for this and will create a proposal to put forward to the Ministry of Justice.

Trustees on the Board include a member of staff from Horfield prison and another who is employed by the MoJ, which strengthens our insight and ability to be aligned with the MoJ objectives. We do not anticipate changing the Board as it offers a strong range of expertise.

Structure, governance and management

The charity is a private company limited by guarantee, incorporated on 15 August 2018, and registered as a charity on 29 July 2019. Its governing document is its Memorandum and Articles of Association.

THE KEY - UNLOCK POTENTIAL

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

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

Suzanne Thompson Emily Mellon Alex Raikes (Appointed 1 July 2023) Natalie Steadman Simon Arnold Lisa Gill Catrin MacDonnell Rachel Webb Wiles Joanne Hadden Sharon Woma Oliver Swayne

Recruitment and appointment of trustees

Recruitment of trustees is by agreement of the board. Advertisements are placed with organisations that support the voluntary sector, e.g. Voscur, and the board promotes through their own contacts, including charity board recruitment bodies and appropriate social media. A shortlist is drawn up after informal interviews and candidates brought forward to meet the full board before a final decision is made.

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

Statement of trustees' responsibilities

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

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

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

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

THE KEY - UNLOCK POTENTIAL

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

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

Catrin MacDonnell Chair

21 May 2024

THE KEY - UNLOCK POTENTIAL

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF THE KEY - UNLOCK POTENTIAL

I report to the trustees on my examination of the financial statements of The Key - Unlock Potential (the charity) for the year ended 31 August 2023.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Old Mill Accountancy Limited

Tim Lerwill FCA

Unit 2 Greenways Business Park Bellinger Close CHIPPENHAM Wiltshire SN15 1BN England

Dated: 23 May 2024

THE KEY - UNLOCK POTENTIAL

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2023

Unrestricted Unrestricted
funds funds
2023 2022
Notes £ £
Income from:
Donations and legacies 3 141,250 10
Investments 4 358 6
Total income 141,608 16
Expenditure on:
Charitable activities 5 31,107 1,541
Net income/(expenditure) for the year/
Net movement in funds 110,501 (1,525)
Fund balances at 1 September 2022 19,489 21,014
Fund balances at 31 August 2023 129,990 19,489

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

All income and expenditure derive from continuing activities.

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

THE KEY - UNLOCK POTENTIAL

BALANCE SHEET

AS AT 31 AUGUST 2023

Notes
Fixed assets
Tangible assets
10
Current assets
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within one
year
12
Net current assets
Total assets less current liabilities
Income funds
Unrestricted funds		 2023
£
170
136,778
136,948
(7,440)		 £
482
129,508
129,990
129,990
129,990		 2022
£
-
20,509
20,509
(1,020)		 £
-
19,489
19,489
19,489
19,489

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 August 2023.

The trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 21 May 2024

Catrin MacDonnell

Trustee

Company registration number 11518374

THE KEY - UNLOCK POTENTIAL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2023

1 Accounting policies

Charity information

The Key - Unlock Potential is a private company limited by guarantee incorporated in England and Wales. The registered office is 4-6 Longmead Avenue, BRISTOL, BS7 8QB.

1.1 Accounting convention

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

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

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

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

1.2 Going concern

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

1.3 Charitable funds

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

1.4 Income

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

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

Donated services or facilities which comprise donated services are included in income at a valuation which is an estimate of the financial cost borne by the donor where such cost is quantifiable and measurable. No income is recognised where there is no financial cost borne by a third party.

Interest is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or repayable by the bank.

THE KEY - UNLOCK POTENTIAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6 Tangible fixed assets

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

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

Leasehold improvements 5% Straight Line

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

1.7 Impairment of fixed assets

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

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

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

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

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

Basic financial assets

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

THE KEY - UNLOCK POTENTIAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

1 Accounting policies

(Continued)

Basic financial liabilities

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

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

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

Derecognition of financial liabilities

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

2 Critical accounting estimates and judgements

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

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

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Estimated useful lives of tangible fixed assets

In determining the estimated useful life the charity considers the expected physical wear and tear of the asset that could lead to obsolescence of the asset. Each year the charity reviews the above to establish if there is any change in the expected useful life of tangible assets.

3 Donations and legacies

2023 2022
£ £
Donations and gifts 141,250 10

THE KEY - UNLOCK POTENTIAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

4 Investments

2023 2022
£ £
Interest receivable 358 6

5 Expenditure on charitable activities

Direct costs
Share of support and governance costs (see note 6)
Support
Governance
Analysis by fund
Unrestricted funds		 2023
£
28,037
3,070
31,107
31,107		 2022
£
161
1,380
1,541
1,541

THE KEY - UNLOCK POTENTIAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

6 Support costs

Support costs
Governance
costs
£
£
Depreciation
12
-
Bank fees
4
-
Legal and professional fees
6,785
-
Consultancy
20,260
-
Printing, postage and
stationery
70
-
IT expenses
294
-
Insurance
448
-
Travel
126
-
Sundry expenses
38
-
Independent Examiner's fee
-
1,325
Accountancy
-
1,745
28,037
3,070
Analysed between
Charitable activities
28,037
3,070		 2023 Support costs
Governance
costs
£
£
£
12
-
-
4
1
-
6,785
160
-
20,260
-
-
70
-
-
294
-
-
448
-
-
126
-
-
38
-
-
1,325
-
-
1,745
-
1,380
31,107
161
1,380
31,107
161
1,380		 2022
£
-
1
160
-
-
-
-
-
-
-
1,380
1,541
1,541

In addition to the Independent Examiner fees shown above, included within governance costs are fees payable to the Independent Examiner of £1,915 (2022: £nil) in respect of accountancy and other services

7 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

8 Employees

There were no employees during the year.

9 Taxation

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

THE KEY - UNLOCK POTENTIAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

10 Tangible fixed assets

Cost
Additions
At 31 August 2023
Depreciation and impairment
Depreciation charged in the year
At 31 August 2023
Carrying amount
At 31 August 2023
11
Debtors
Amounts falling due within one year:
Other debtors
12
Creditors: amounts falling due within one year
Trade creditors
Accruals and deferred income		 Leasehold improvements
£
494
494
12
12
482
2023
2022
£
£
170
-
2023
2022
£
£
4,200
-
3,240
1,020
7,440
1,020		 Leasehold improvements
£
494
494
12
12
482
2023
2022
£
£
170
-
2023
2022
£
£
4,200
-
3,240
1,020
7,440
1,020
494
12
12
482
2022
£
-
2022
£
-
1,020
1,020

13 Related party transactions

During the year £16,060 (2022: £nil) was paid to a business owned by trustee Oliver Swayne, in respect of consultancy services relating to; business planning, fundraising and project management. Transactions represent payments made under normal market conditions for these services. There were no outstanding balances at year end.