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2021-12-31-accounts

THE RIGHT COURSE

Annual report and financial statements For seventeen months to 31[st] December 2021

Registered Charity Number: 1190520 (England & Wales)

THE RIGHT COURSE REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 DECEMBER 2021

Contents

Page
Reference and Administration Details 2
Report of the Trustees 3 – 24
Report of the Accountants 25 - 26
Consolidated Statement of Financial Activities 27
Consolidated & Foundation Balance Sheets 28
Consolidated Statement of Cash Flows 29
Notes to the Financial Statements 30 - 43

1

THE RIGHT COURSE REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 DECEMBER 2021

REFERENCE AND ADMINISTRATION DETAILS

Trustees (2 year position)

At date of approval of the financial statements

Fred Sirieix, Chairman (appointed 22 July 2019)

Kay Burley (appointed 22 July 2019, Resigned 7 May 2021)

Michele Caggianese (appointed 22 July 2019)

Beverley Campbell (appointed 21 July 2022)

Ken Sanker

(appointed 22 July 2019, Resigned 19 July 2022)

Ali Zaidi (appointed 22 July 2019)

Chief Executive Officer – Consultant Simon Sheehan (appointed 3 May 2021)

Registered Name

The Right Course Registered Charity No. 1190520 (England & Wales)

Principal office

The Right Course 49 Netherwood Road London W14 0BL United Kingdom

Tel: +44 7974 229 183 Email: info@therightcourse.org.uk Website: therightcourse.org.uk

Accountants

Garrod Beckett & Co Ltd Chartered Accountants 10 Town Quay Wharf, Abbey Road Barking, Essex IG11 7BZ

Bankers CAF Bank Limited 25 Kings Hill Avenue Kings Hill, West Malling, Kent ME19 4JQ

2

THE RIGHT COURSE REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 DECEMBER 2021

In this report and financial statements The Right Course is referred to as the “charity”.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The trustees present their report together with the audited consolidated financial statements of The Right Course for the 17 months to the year ended 31 December 2021.

The Right Course is constituted as a Charitable Incorporated Organisation on 22 July 2020 and is a registered charity with the Charity Commission of England and Wales (No. 1190520).

TRUSTEES AND OTHER KEY MANAGEMENT PERSONNEL

The trustees consider that the board of trustees and the charities’ part-time freelance CEO comprise the key management personnel of the charity who are in charge of directing and controlling the charity as well as running and operating it on a day-to-day basis.

The trustees who served during the period from 22 July 2020 to the date the report was approved are listed on page 2. Trustees hold office for a period of two years and may be reappointed. New trustees are identified and nominated by existing members.

Trustees can hold positions with any of the charities partners however they remove themselves from any decision if there is a conflict of interest. The trustees are all unpaid volunteers. A trustee may receive reasonable and proper remuneration for professional services rendered to the charity and reasonable out of pocket expenses. No such payments were made during the year (as set out in note 5). Trustee Indemnity Insurance is in place and the premium is paid by the charity.

The Foundation has a formal procedure for inducting new trustees to ensure that they are fully familiar with history and current strategies and activities. Training is provided at the request of trustees. On an ongoing basis pertinent Charity Commission briefings as well as charity updates, including budget updates, are provided to all trustees.

The pay of the CEO is reviewed annually and normally increased in accordance with inflation. The remuneration is also bench-marked with similar charities to ensure that the remuneration set is fair and not out of line with that generally paid for similar roles (see note 6).

ORGANISATION

The trustees meet bimonthly. Subcommittees are formed for specific functions, including finance. Whilst the strategic direction is decided by the trustees, the day-to-day decisionmaking process has been delegated to the CEO of the charity within specific parameters.

STAFF AND ADMINISTRATION

The charity has no direct staff. The trustees contract a certain amount of management and administrative assistance depending on workload. Management and administrative support is provided by the consultant Simon Sheehan, under the title of CEO to facilitate relationships.

3

THE RIGHT COURSE REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 DECEMBER 2021

PRINCIPAL FINANCIAL MANAGEMENT POLICIES

The charity prepares an annual budget, which is approved by the trustees. Bi-monthly accounts are prepared to ensure that variances from the budget are monitored. All payments are approved by the Trustees. Accounts are discussed at the trustee meetings.

CHARITABLE ACTIVITY

Within the principal objects laid down by the trustees, the focus of the charity’s activities are on establishing training restaurants within prison environments to teach learners the skills and behaviours to gain employment upon release. Working with our partners to deliver The Right Course’ Curriculum and Standard Operating Procedure, the restaurants offer an authentic experience for learners. By securing employment and accessing additional support, such as housing and travel assistance, we work to enable our learners to rebuild their own lives and determine their own future career, providing alternatives to crime, and therefore reducing reoffending rates.

FUNDRAISING POLICY

The charity does not use fundraising services, consultants or external professional fundraisers to undertake its fundraising activities. Additionally, no data is shared with or sold to any external agencies. The charity shares information about its charitable work and fundraising activities on social media. The charity does not undertake Direct Mail. The charity invites individuals and companies to attend events, usually through its business networks or via its supporters, but does not excerpt undue pressure to attend or donate. It doesn’t approach or pressure vulnerable people to support its work. A complaints policy is in place and is accessible on the charity’s website. No complaints were received and no failures to comply were identified in 2020 and 2021. The charity adheres to the Fundraising Code of Practice issued by the Fundraising Regulator.

Fundraising events carried out in aid of and on behalf of the charity are monitored by the Trustees, with regular meetings and contact during the preparation for, and clean up from, the event. All marketing materials and approaches are checked to comply with the Fundraising Code of Practice by the CEO and a profit and loss file is kept for large events. All related income and expenditure are reported to fundraising volunteers who organise an event on the Charity’s behalf to ensure financial transparency and correct amounts raised.

INVESTMENT POLICY

There are no restrictions on the charity’s power to invest. The trustees set the investment strategy after considering income requirements and the risk profile. The trustees do not consider high risk or speculative investments as being suitable to invest the charity’s reserves and therefore avoid such types of investments. Due to current levels, reserves are held in cash in short-term deposits that can be accessed readily.

RESERVES POLICY

The trustees have approved a reserves policy. Its objective is to achieve a balance between the need to use voluntary income received to fulfil the charity’s strategic objectives and the need to retain funds to give sufficient financial flexibility to protect the long-term future of the charity’s operations and ensure stability of programme activity. The trustees aim to maintain free reserves in unrestricted funds at a level which equates to approximately 12 months of unrestricted expenditure. The trustees consider that this level will provide sufficient funds to continue charitable activity and ensure that support and governance costs are covered whilst seeking new income.

4

THE RIGHT COURSE REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 DECEMBER 2021

RELATED PARTIES

A register is held by the charity of trustees, its key personnel and their related party’s interests to ensure no conflict of interest with the work of the charity. This declaration is checked at every trustees’ meeting.

RISK MANAGEMENT

The trustees have assessed the major risks to which the charity are exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems are in place to manage those risks.

Risk chart

----- Start of picture text -----
Potential Risk Potential Impact Probability Impact Risk Rating Steps to Mitigate Risk
<5= low
>14= high
Governance
Lack of strategy and  Issues addressed without strategic 1 4 4  Create strategic plan
forward planning reference setting out aims
 Loss of support from sponsors objectives and
 Financial management difficulties policies
 Loss of reputation  Include alternative
strategies for
maintaining income
from diverse sources
in strategic plan
 Create and monitor
financial budgets
 Monitor operational
performance and
obtain volunteer and
beneficiary feedback
Non- renewal of Fred  No further fundraising partnerships 1 4 4  Strategic plan to
Sirieix partnership/ with Fred Sirieix include alternative
involvement  Loss of publicity and industry links strategies for
through loss of Fred Sirieix replacing income
from other sources
 Maintain sufficient
reserves to cover
expenditure during
change
 Work with other
individuals and
companies to
establish similar
relationship
Breakdown of  Unable to continue with The Right 3 4 12  Regular
partnership with Prison, Course in the prison communication with
Novus and/or Ministry of  Cannot offer recognised Prison, Novus and
Justice qualifications the Ministry of Justice
 File any reporting
requirements on time
 Work with other
education providers
to establish similar
relationship
 Built network of
relationships with
multiple contacts in
each organisation to
mitigate staff
changes
Conflict of interest  Decisions not based on relevant 1 4 4  Policy for disclosure
considerations of potential conflicts
 Impact on reputation of interest
----- End of picture text -----

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THE RIGHT COURSE REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 DECEMBER 2021

----- Start of picture text -----
Potential Risk Potential Impact Probability Impact Risk Rating Steps to Mitigate Risk
<5= low
>14= high
 Procedures for
standing down on
decisions if conflict
exists
 Trustee selection
process
 Adhering to charity
commission
guidelines
Financial
Budgetary control and  Budget does not match key 2 5 10  Budgets linked to
financial reporting fraud objectives and priorities strategic plan
or error  Inability to meet commitments or  Timely and accurate
key objectives monitoring and
 Financial loss reporting
 Risk to reputation  Procedures to review
 Regulatory action credit control,
budgetary
expenditure and
treasury
management
 Strict control of fund
accounting
 Segregation of duties
 Financial control
procedures
 Authorisation limits
 Review of budgets
and monthly
management
accounts by director
and finance
committee
Investment policy  Financial loss through 1 3 4  Creation of adequate
inappropriate investment investment policy
 Cash flow difficulties arising from  Adequate reserves
lack of liquidity policy
 Loss incurred by trading subsidiary  Regular review by
company trustees
 Regular review by
trustees of trading
policy, performance,
profitability and
viability of subsidiary
company
Reserves policy  Inability to meet commitments or 1 3 3  Reserve policies
planned objectives linked to business
 Reputational risk plans, activities and
identified financial
risks
 Regular review by
trustees
Management
Employment Issues  Employment disputes 1 3 3  Job descriptions,
 Health and safety issues performance
 Claims for injury stress or unfair appraisal and
dismissal feedback
 Equal opportunities issues  Regular health and
 Recruitment costs and lead times safety and fire
 Loss of experience training
 Low morale  Consider working
conditions, training
and job satisfaction
 Fair and open
competition for key
posts
----- End of picture text -----

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THE RIGHT COURSE REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 DECEMBER 2021

----- Start of picture text -----
Potential Risk Potential Impact Probability Impact Risk Rating Steps to Mitigate Risk
<5= low
>14= high
 Interview and
assessment process
 Job training and
development
 Reference and
qualification process
 Recruitment process
 Regular trustee and
staff meetings
 Review rates of pay
Health and safety  Staff injury 2 2 4  Compliance with law
and regulation
 Statement of policy
 Staff training
Disaster recovery and  Computer system failures and loss 1 4 4  Data backup
planning of data procedures
 Destruction of property and  Data backup
records through fire or other procedures
disaster  Insurance cover
Information Technology  Systems fail to meet operational 1 2 2  Appraisal of system
need options
 Failure to innovate or update  Security and
 Loss or corruption of data authorisation
procedures
 Implementation and
development
procedures
 Disaster recovery
procedures
Data Protection  Loss of data 1 5 5  Data Handling
 Data miss used or retained longer policies and training
than needed  Encryption and
 Fines, penalties or censure from password protection
licencing or regulators on all IT equipment
 Reputational risks  Annual review of
policies and
procedures
 Identify key legal and
regulatory
requirements
 Allocate responsibility
for key compliance
procedures
Procedure and system  Lack of awareness of procedure 1 2 2  Documentation of
documentation and policies policy and procedure
 Action taken without proper  Audit and review of
authority systems
Compliance risks  Fines, penalties or censure from 2 2 4  Identify key legal and
including licencing or regulators regulatory
 Charity law  Employee action for negligence requirements
 Data protection  Loss of licence to undertake  Allocate responsibility
 Employment law activities for key compliance
 Health and safety  Reputational risks procedures
law  Compliance
 Gambling monitoring and
commission reporting
 Bribery provisions  Preparation for
 HMRC gift aid compliance visits
provisions  Compliance reports
from auditors
Volunteer
Management
Bullying or  Bodily or mental harm towards 2 4 8  Complete vetting
harassment/physical or either individual process and
emotional abuse statements of
----- End of picture text -----

7

THE RIGHT COURSE REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 DECEMBER 2021

----- Start of picture text -----
Potential Risk Potential Impact Probability Impact Risk Rating Steps to Mitigate Risk
<5= low
>14= high
between inmate and  Loss of visitation to the prison, and previous convictions
volunteer more restrictions on future and/or conflicts of
volunteers interest.
 Training and
mentorship offered to
volunteers before
visiting the prison.
 Awareness of safe
guarding policies
before visiting.
 Ensure there are
enough staff
members supporting
the volunteers during
the visit.
Data breaches  Exchanging of data with the intent 2 3 6  Inform before visiting
to communicate after release that communication
 Chance of incident/abuse/ with inmates once
harassment through contact released is strictly
forbidden.
 During the visit,
ensure no one is left
without a member of
staff
 Report to someone in
charge if a
relationship between
a volunteer and
inmate seems too
familiar.
Data Protection  Unaware that we are sharing 2 2 4  Confirm that the
personal data with external Volunteer Policy has
partners for vetting purposes been read,
understood and
signed.
People targeting the  Using the visitation opportunity to 2 4 8 Complete vetting process
charity reach an individual in the prison and statements of
previous convictions
and/or conflicts of interest.
----- End of picture text -----

8

THE RIGHT COURSE REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 DECEMBER 2021

OBJECTIVES AND ACTIVITIES

The objects of the charity are to provide for the public benefit to promote the education of offenders, ex-offenders or those at risk of offending by providing or assisting in the provision of:

PUBLIC BENEFIT

The Foundation benefits the public by working to reduce reoffending by providing offenders and ex-offenders with the skills, behaviours and opportunities to secure employment in the hospitality sector.

Our vision is of a world where prison leavers have the aspiration, skills and opportunities to rebuild their life, away from crime, and contribute back to society. Our mission is therefore to provide them with the tools, opportunities and support to transform their own lives through experiencing authentic and relevant training in staff restaurants and facilitating employment opportunities and industry mentoring. The trustees confirm that they referred to the guidance contained in the Charity Commissions general guidance on public benefit when reviewing the Charity’s aims and objectives and in planning future activities.

PRINCIPAL ACTIVITIES

The trustees determined that the principal focus should be on facilitating the opening of new training restaurants at prisons across the UK; working with education providers to deliver The Right Course curriculum; arranging mentoring and training from industry volunteers; and brokering job interviews and employment.

REVIEW OF ACTIVITIES

Building on a pilot programme at HMP/Isis from 2017, The Right Course was registered as a charity in July 2020 and negotiated grant support from the DM Thomas Foundation for Young People to enable the charity to start operations. Working with education providers, NOVUS, grant support was secured from the London Mayor’s Fund to refurbish the staff canteen at HMP Wormwood Scrubs from January to May 2021. The training restaurant had a soft opening on 27[th] May, with the first cohort of learners graduating in September. Due to covid and lockdowns education was cancelled or restricted at HMP/YOI Isis and at HMP Wormwood Scrubs although the restaurants were able to operate under restrictions.

At HMP/YOI Isis 10 learners undertook the course, with an average of 90% achieving more than one qualification. Three graduates were eligible for release and they all secured employment upon release.

Of the 17 learners starting the course at the Escape restaurant at HMP Wormwood Scrubs, an average of 76% completed with more than one qualification (3 didn’t complete the course). Of those 6 eligible for release, 4 are employed (66%).

The year was also spent applying to Trusts and Foundations for core support, identifying new prison.

9

THE RIGHT COURSE REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

FINANCIAL REVIEW

Income from restricted and unrestricted grants as well as fundraising activities totalled £72,937 of which £7,000 was restricted.

Expenditure totalled £37,565 of which £25,116 (67%) was on charitable activities . At 31 December 2021 the charity’s total fund balance was £35,372.

RESTRICTED FUNDS

Due to grant restrictions, the following restricted funds exist (see note 13 of Notes to the Financial Statements for more details):

GENERAL RESERVES

The trustees consider that the average level of unrestricted funds not committed or invested in tangible fixed assets should represent at least 12 months of unrestricted expenditure. The trustees review the reserves policy annually as part of the consideration of the budgetary parameters for the forthcoming financial year.

FUTURE DEVELOPMENTS

----- Start of picture text -----
Objective Strategy and measure
Employment: Secure employment for over Build networks and regular
75% of graduating learners that have communication channels with project sites
been released. to ensure links and opportunities are
established prior to release. Current
average employment rate is 63%.
Training restaurants: Expand from two Build networks with the Ministry of Justice,
training restaurants to four restaurants Prisons, New Future Networks and
open and three further prisons under education providers to identify potential
discussion. new sites and budgets required. Develop
business case and operational model
required to run the training restaurants.
Currently two operational training
restaurants.
Employers: develop a network of Promote our work and case studies and
employers who are willing to offer facilitate visits to existing sites, to
opportunities for graduates. demonstrate the impact and value of
offering a job opportunity to graduating
learners. Current network is London
Centric and job opportunities are limited to
4 employers.
Fundraising support: secure a pipeline of Regular applications to Trusts and
support to build up a year’s reserves and Foundations; explore fundraising events,
allow for employment of programme staff balancing the ROI on time and effort
to enable expansion to more training involved; and identify opportunities to be
sites. charity of choice or recipient of donations.
----- End of picture text -----

10

THE RIGHT COURSE REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees are responsible for preparing the Report of the Trustees’ and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.

Laws applicable to charities in England and Wales and in Scotland requires the trustees to prepare the Report of the Trustees and the 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 charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for ensuring that accounting records are kept in respect of the charity which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008, the Charities and Trustee Investment (Scotland) Act 2005, regulation 8 of the Charities Accounts (Scotland) Regulations 2006 ,Eire charities Acts 1961 and 1973, and the provisions of the trust deed. 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 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.

Accountants

Garrod Beckett & Co Ltd have expressed their willingness to continue in office. A resolution to reappoint them as Accountants will be proposed at the trustees’ next meeting.

Approved and signed on behalf of the trustees

Fred Sirieix Ali Zaidi Chairman of the Trustees Trustee

12 August 2022

24

INDEPENDENT ACCOUNTANTS REPORT TO THE TRUSTEES OF THE RIGHT COURSE

Opinion

We have reviewed the financial statements of The Right Course for the year ended 31 December 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Parent Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our review in accordance with International Standards of Accounting and the applicable law. We are independent of the charity in accordance with the ethical requirements that are relevant to our review of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The other information comprises the information included in the annual report, other than the financial statements and our accountants report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our review of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the review or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out in the Report of the Trustees, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

25

INDEPENDENT ACCOUNTANTS REPORT TO THE TRUSTEES OF THE RIGHT COURSE

Garrod Beckett & Co Ltd Chartered Accountants 10 Town Quay Wharf, Abbey Road Barking, Essex IG11 7BZ

27 December 2022

26

THE RIGHT COURSE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE 17 MONTHS TO 31 DECEMBER 2021

Notes
Income from
Donations & Legacies
2
Charitable Activities
Other trading activities
Investments
3
Total Income
Expenditure on
4, 5
Raising funds
Charitable activities
Total Expenditure
Net expenditure
Net gains/(losses) on
investments
10
Transfers between funds
10
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
Restricted
Funds
Total
2020-21
Total
2019
£
£
£
£
65,937
-
65,937
-
-
7,000
7,000
-
-
-
-
-
-
-
-
-
65,937
7,000
72,937
-
12,270
-
12,270
-
25,116
-
25,116
-
37,565
-
37,565
-
28,372
7,000
35,372
-
-
-
-
-
-
-
-
-
28,372
7,000
35,372
-
-
-
-
-
28,372
7,000
35,372
-

All of the above results are derived from continuing activities. All gains and losses recognised in the 17 months are included above.

27

THE RIGHT COURSE CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2021

Notes
FIXED ASSETS
Tangible assets
6
Investments
CURRENT ASSETS
Stocks
Debtors
7
Cash at bank and in hand
CREDITORS:
Amounts falling due within
one year
8
NET CURRENT ASSETS
CREDITORS:Amounts falling due
after more than one year
TOTAL NET ASSETS
FUNDS
Restricted funds
Unrestricted funds:
Designated funds
General reserves
TOTAL FUNDS
9		 2020-21
£
-
-
-
-
-
35,372
35,372
-
-
-
-
7,000
-
28,372
35,372		 2019
£
-
-
-
-
-
-
-
-
-
-
-
0
-
-
-

The financial statements were approved by the trustees on 12 August 2022 and signed on their behalf by:

Fred Sirieix Ali Zaidi Chairman of the Trustees Trustee

The notes which follow form an integral part of these financial statements.

28

THE RIGHT COURSE CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
Cash flows from operating activities:
Net cash provided by/(used in) operating activities
16
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of property, plant and equipment
Proceeds from sale of investments
Purchase of investments
Net cash provided by/(used in) investing activities
Change in cash and cash equivalents in the reporting
period
Cash and cash equivalents at the beginning of the
reporting period
Cash and cash equivalents at the end of the reporting
period		 2020-21
2019
£
£
72,937
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

29

THE RIGHT COURSE NOTES TO THE FINANCIAL STATEMENTS FOR THE 17 MONTHS TO 31 DECEMBER 2021

1. ACCOUNTING POLICIES

The principal accounting policies adopted are as follows:

The accounts have been prepared under the historical cost convention, as modified by the inclusion of investments at market value, and in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities, applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” and the Charities Act 2011. The Charity is a public benefit entity as defined by FRS 102.

The trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern.

1.2 Fund accounting

The financial statements of a charity must differentiate between restricted and unrestricted funds.

The nature and purpose of each fund are set out in Note 13 to the financial statements.

1.3 Income recognition

All incoming resources are included in the period in which they are receivable, which is when the charity becomes entitled to the resource. Fundraising income, merchandising income and investment income are recognised on an accruals basis.

1.4 Expenditure recognition

Expenditure is accounted for on an accruals basis. Expenditure is allocated by reference to its functional classification and not by type of expense. The expenditure heads in the statement of financial activities include both direct costs and allocated overheads. Overheads are apportioned on a staff time basis.

Staff and office costs are divided into the areas of activity of the Charity: fundraising, charitable expenditure and governance, on the basis of the cost of related staff time. Communication costs are divided equally between fundraising and charitable expenditure. As the charity doesn’t have any contracted staff, only consultants, there is no annual leave policy to state that it runs on the calendar year and no holiday can be rolled over into future years.

Fundraising activities costs are those incurred in organising fundraising events and in seeking voluntary contributions and do not include costs of disseminating information in support of the charity’s charitable activities.

1.5 Tangible fixed assets and depreciation

Tangible fixed assets costing £500 or more are capitalised at cost and depreciated. Depreciation is provided by the straight-line method, calculated to write off assets over their estimated useful lives at the following rates:

30

THE RIGHT COURSE NOTES TO THE FINANCIAL STATEMENTS FOR THE 17 MONTHS TO 31 DECEMBER 2021

1. ACCOUNTING POLICIES (continued)

1.6 Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

All gains and losses are taken to the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised investment gains are combined with investment income in the statement of financial activities. The Charity does not acquire put options, derivatives or other complex financial instruments.

The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within certain sectors or sub sectors.

1.7 Stocks

Stocks are valued at the lower of cost and net realisable value. Cost is based on the cost of purchase on a first in, first out basis. Net realisable value is based on estimated selling price less additional costs to completion and disposal.

1.8 Value added tax

The Charity is not registered for value added tax (VAT), and therefore input tax is not recoverable. Expenditure incurred by the Charity is therefore recorded inclusive of VAT.

1.9 Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the accounting date. Transactions in foreign currencies are recorded at an average monthly rate at the accounting reference date. All differences are charged to the profit and loss account.

1.10 Pensions As the charity doesn’t have any contracted staff, only consultants, the charity doesn’t provide an pension scheme or contributions. This is the responsibility of the self-employed consultants.

1.11 Financial instruments

The Charity only has financial assets and liabilities of a kind that qualify as basic financial instruments, including its debtors and creditors. These are initially recognised at transaction value and subsequently valued at their settlement value.

1.12 Judgements and key sources of estimation uncertainty Judgements and key sources of estimation uncertainty are detailed in the above accounting policies where applicable.

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THE RIGHT COURSE NOTES TO THE FINANCIAL STATEMENTS FOR THE 17 MONTHS TO 31 DECEMBER 2021

2. DONATIONS AND FUNDRAISING ACTIVITIES

General Donations & Campaigns
Commercial Trading Income
VESTMENT INCOME
Investment income receivable
Interest receivable		 2020-21
£
65,937
-
65,937
2020-21
£
-
-
-		 2019
£
-
-
-
-
2019
£
-
-
-

3. INVESTMENT INCOME

4. EXPENDITURE ON

----- Start of picture text -----
Fundraising Charitable Investment 2020-21 2019
activities expenditure Costs Total Total
£ £ £ £ £
Allocated Consultant
12,240 17,316 - 29,556 -
costs
Allocated Office costs 30 - - 30 -
Allocated Communication
costs - - - - -
Direct
- 7,800 - 7,800 -
expenditure
Apportioned governance
costs 179 - - 179
Total 2021 12,449 25,116 - 37,565
Total 2019 - - - -
----- End of picture text -----*

Staff and office costs are divided into the areas of activity of the charity: fundraising, charitable expenditure and governance, on the basis of the cost of related consultant time. Communication costs are divided equally between fundraising and charitable expenditure. Governance costs are then apportioned to fundraising activities and charitable expenditure.

32

THE RIGHT COURSE NOTES TO THE FINANCIAL STATEMENTS FOR THE 17 MONTHS TO 31 DECEMBER 2021

4.
EXPENDITURE ON (continued)
Governance Costs
2020-21
£
Allocated Staff costs
-
Allocated Office costs
179
Annual Report
-
Legal and Professional Fees
-
Audit and Accountancy Fees
-
Trustee Insurance
-
-
Trustee Meeting do not include any expenses reimbursed from the Charity.
Net incoming/(outgoing) resources are stated
after charging:
2020-21
£
Accountants’ remuneration
-
Depreciation
-
5.
STAFF COSTS
2020-21
£
Salary costs
-
Social security costs
-
Pension costs
-
-
The average number of full-time equivalent employees
during the year was:
0		 2019
£
-
-
-
-
-
-
-
2019
£
-
-
2019
£
-
-
-
-
0

KEY MANAGEMENT PERSONNEL

The Charity doesn’t have any staff. The Trustees engage a consultant to undertake some of the operations of the charity on a part-time basis. During the year, the trustees received £nil reimbursement of expenses (2019: £nil).

6. TANGIBLE FIXED ASSETS

Cost or valuation
At 1 January 2020
Disposals at cost
As at 31 December 2021
Accumulated depreciation
At 1 January 2020		 Computers &
Other Equipment
£
-
-
-
-		 Furniture &
Fittings
£
-
-
-
-		 Total
£
-
-
-
-

33

THE RIGHT COURSE NOTES TO THE FINANCIAL STATEMENTS FOR THE 17 MONTHS TO 31 DECEMBER 2021

Disposals at cost
-
Charge for year
-
As at 31 December 2021
-
Net book value
At 31 December 2021
-
At 1 January 2020
-
7.
DEBTORS
2020-21
£
Trade debtors
-
Accrued investment
income
-
Income tax recoverable
-
Staff Loan
-
Prepayments
-
-
8.
CREDITORS:
AMOUNTS FALLING DUE WITHIN ONE YEAR
2020-21
£
Trade Creditors
-
PAYE and National
Insurance
-
VAT and Corporation Tax
payable
-
Other creditors
-
Accruals
-
-
AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2020-21
£
Creditors
-
-		 -
-
-
-
-
2019
£
-
-
-
-
-
-
2019
£
-
-
-
-
-
-
2019
£
-
-		 -
-
-
-
-

34

THE RIGHT COURSE NOTES TO THE FINANCIAL STATEMENTS FOR THE 17 MONTHS TO 31 DECEMBER 2021

9.
FUNDS
At 1 Jan
2020		 Total
Income/Gains		 Total
Expenditure		 Transfers At 31 Dec
2021
£ £ £ £ £
RESTRICTED FUNDS
Sheriff's & Recorders Fund (1) - 2,000 - - 2,000
Tallow Chandlers Trust (2) - 5,000 - - 5,000
- 7,000 - - 7,000
DESIGNATED FUNDS(3) - - - - -
GENERAL RESERVES(4) - 65,937 37,565 - 28,372
TOTAL FUND BALANCE - 72,937 37,565 - 35,372

The purposes of the charity’s funds are detailed below:

10. ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS

Fund balances at 31 December
2021 are represented by:
Tangible Fixed Assets
Investments
Net Current Assets
TOTAL NET ASSETS		 Restricted
Funds
£
Designated
Funds
£
General
Funds
£
Total
£
-
-
-
-
-
-
-
-
7,000
-
28,372
35,372
7,000
-
28,372
35,372

11. RELATED PARTY TRANSACTIONS

The Trustees keep a record of related parties transactions, which is reviewed at each meeting, and recorded no conflict of interested throughout the year.

35