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2023-03-31-accounts

REGISTERED COMPANY NUMBER: 11928188 (England and Wales) REGISTERED CHARITY NUMBER: 1191125

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

FOR

SHIFT ORGANISATION LTD

SHIFT ORGANISATION LTD

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

Page
Report of the Trustees 1 to 15
Independent Examiner's Report 16
Statement of Financial Activities 17
Balance Sheet 18 to 19
Cash Flow Statement 20
Notes to the Cash Flow Statement 21
Notes to the Financial Statements 22 to 31
Detailed Statement of Financial Activities 32 to 33

SHIFT ORGANISATION LTD

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2023. The trustees have adopted the provisions of 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).

CONTEXT, PURPOSES AND MEASURES OF SUCCESS

Context to our charitable mission

Growing up is risky business. If, during this critical period of transition, children and young people do not have the right foundations and support, they can become caught up in worsening cycle of harmful behaviour - becoming exploited or exploiting others, and causing serious, sometimes devastating damage, to themselves or others. Lives are lost to criminal and sexual exploitation and the criminal justice system.

Tragically, thousands of children and young people in the UK are growing up vulnerable in such circumstances. Some are causing serious harm and violence, some are victims of serious harm and violence, and most are both. Most are boys and half in custody are Black and minority ethnic children. An increasing number of girls are involved in criminal exploitation, and many are victims of criminal sexual exploitation.

Offending behaviours often mask underlying vulnerabilities, from early childhood trauma and school exclusion to poor health and growing up in poverty.

A joint Department for Education and Ministry of Justice report from March 2022, found that 60% of children whose offending had been prolific had been assessed as Children in Need on the 31st March in any given year when aged between 12 and 16. This compared with 38% of children who had been cautioned or sentenced for a serious violence offence, 32% of children who had been cautioned or sentenced for any offence, and only 6% of the all-pupil cohort.

Absence from school is both an indicator that things are going wrong and a catalyst for further problems. According to Department for Education and Ministry of Justice data:

'81% of children who had been cautioned or sentenced for an offence had ever been persistently absent, compared to 85% of children who had been cautioned or sentenced for a serious violence offence. Children whose offending had been prolific had the highest proportion recorded as persistently absent at 94%. This compares to 44% of the whole pupil cohort.'

SHiFT exists to break the destructive cycle of children and young people caught up in, or at risk of, crime. We seek to transform policy and practice in how young people in these circumstances are seen and supported.

Despite the best efforts of dedicated professionals, many young people and their families are not getting the support they need to move to a place of safety and strength. Too often, current responses to harm and offending exacerbate crisis, compound disadvantage, and deepen harmful cycles. Services and systems are experienced as piecemeal and uncoordinated, with artificial thresholds that create damaging cracks, gaps, and cliff edges. The system has been designed through the lens of disconnected problems rather than the interconnected needs of people and their communities.

This is especially true for teenagers, who are the fastest growing group in both child protection and care. As the Independent Review of Children's Social Care put it,

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

'Government departments and safeguarding partners have failed to have an effective response to the risks that teenagers face. Different parts of the children's social care, police, education, justice, and health systems are responding differently to the same teenagers. Accountability for keeping these teenagers safe is lacking.'

It doesn't need to be like this, and SHiFT is determined to change things - with and for the children we work alongside and with and for the systems that currently work with them.

Charity purposes

SHiFT's purposes, as set out within our Memorandum and Articles of Association are:

'To prevent and relieve the suffering and hardship of young people, particularly, but not exclusively, in circumstances where the young person is displaying, or at risk of displaying, criminal behaviours in such ways as the charity trustees from time to time think fit, in particular, but not exclusively, through supporting the provision of a therapeutic relationship with a skilled practitioner providing advice, counselling and intense support to those who are involved in or at risk of becoming involved in criminal behaviours, and by facilitating constructive relationships within their system including family, friends and professionals.'

The trustees have paid due regard to Charity Commission guidance in deciding what activities the charity should undertake and are confident that we are acting within our charity's purposes.

Measures of success

We seek to understand the experience of children and young people being supported by SHiFT and the progress they are making through evaluation that includes:

We aim to show progress for the children we are working with against the following outcomes:

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

And through our work with statutory services, key desired outcomes are:

OBJECTIVES AND ACTIVITIES

SHiFT was set up in 2019, with an objective to demonstrate and embed opportunities for more impactful and cost-effective approaches to breaking the cycle of offending and supporting behaviour change in children and young people, alongside driving wholesale system change in how society perceives and supports the children we work with.

The SHiFT Programme is based on the Breaking Cycles model, devised by Sophie Humphreys OBE, one of SHiFT's co-founders and the organisation's former Chair. Instead of defining people by issues such as addictions or criminality, Breaking Cycles understands that this behaviour often occurs as a result of previous experiences of trauma, neglect, abuse and poor attachment, and therefore focuses first on working with each child as an individual: getting to know them, understanding their hopes and fears, and helping them develop the strong foundations needed to achieve their aspirations.

Using the Breaking Cycles approach, SHiFT wants every child and young person caught up in, or at risk of, crime, to have one intensive, high-quality, trusting, and persistent professional relationship through which most of their needs are met: a flexible, tailored, and tenacious relationship through which professionals do whatever it takes to set children and young people up for the safe and bright futures they deserve.

SHiFT is systemic in nature. We work through a trauma and poverty informed lens, focussed on building positive identity, and delivered over a sustained period of around 18 months. We believe that everyone - including traumatised and vulnerable children and young people described by professionals as 'hard to reach' - has a hook by which they can begin to pull themselves away from repeated and harmful behaviour. Guides work with each child to develop trusting relationships and to find the right hook, day by day, moment by moment, to support necessary behaviour change.

Key distinctive aspects of SHIFT's practice include:

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SHIFT ORGANISATION LTD REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

SHiFT is scaling high-impact Practices across the UK.

SHiFT Practices change policy and practice one conversation at a time, infiltrating existing systems and modelling a different threshold-free and aspiration-led way of working alongside children and families. When skilled practitioners see, do, and talk differently, they surface new possibilities and approaches which have powerful, positive domino effects in systems and the lives of children and young people.

A SHiFT Practice consists of five SHiFT Guides and a Practice Coordinator. SHiFT Guides are highly skilled practitioners, who have significant experience of working with some of the country's most vulnerable children in complex circumstances. Guides come from a range of professional backgrounds, including social work, youth offending, education, the probation service, and healthcare. Each Practice supports around 27 children. They work alongside and across the statutory system, ensuring duplication is avoided and scarce resources are directed and purposeful. Colleagues who form SHiFT Practices are all employed by the Local Authority in which they are based, and our Partnership Agreement makes clear that it is the responsibility of each Local Authority to ensure that safeguarding risks are being properly managed within their own safeguarding procedure.

SHiFT Practices are 'insider-outsiders' - working from within existing services (children's services, public health, policing and criminal justice, education, housing) as well as working outside, as part of the national SHiFT changemaking community. This is not simply adding personnel capacity to existing Youth Offending Services. We will show that an adult-led relationship that is trauma-informed attachment-aware and consistent over a sustained period breaks cycles of crime.

Scaling SHiFT Practices across the UK will transform policy and practice - influencing by delivering and demonstrating outstanding outcomes for children and young people, as part of a national community that is building the evidence and practice for change and contributing to new public conversation.

Significant activities

SHiFT's continued focus during the financial year 2022/23 has been on delivering and evidencing outstanding outcomes for children to support the scale and spread of SHiFT Practices and strengthen the organisation's credibility and insights to support influencing and system change.

With additional investment from the Greater London Violence Reduction Unit, SHiFT Greenwich has grown to support an additional 11 children with SHiFT Guides embedded within two local partner schools. Following completion of the first 18-month Programme, the Practice is now wholly public sector funded. The Practice has begun work with a new group of the Borough's most vulnerable children and young people.

Two new SHiFT Practices launched in financial year 2022/23 - SHiFT Bexley (started working with children in September 2022) and SHiFT Tameside (in January 2023). SHiFT secured a 50% contribution from public sector funds towards the costs of both new Practices - representing an increase from 25% public sector contribution for the first pilot Practices. SHiFT Tameside benefits from support and investment from the Greater Manchester Violence Reduction Unit. The Mayor and Deputy Mayor of Greater Manchester attended the Practice's launch event in December 2022. Scoping for a further new Practice in Manchester City Centre is underway and will also be supported by the Greater Manchester Violence Reduction Unit.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

The national SHiFT team has grown to meet the needs of growth, welcoming a Director of Business Development and a Chief Operating Officer during this financial year. We have also invested in data collection systems to strengthen data collection and analysis and its ongoing use in practice to support practice development and learning.

In June 2022, SHiFT partnered with The Liminal Space to host an interactive exhibition on the Southbank called Shifting Perceptions. The Shifting Perceptions exhibition shared the experiences of some of the children SHiFT support, and the difference SHiFT makes to lives, systems and outcomes. It engaged a general public audience as well as offering a programme of more specialist activities, including involving children and young people. The launch of the exhibition was attended by The Right Honourable Michael Gove MP, Secretary of State for Levelling Up, Housing and Communities who pledged the government's support for SHiFT's growth, underpinned by investment from his department.

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the organisation should undertake. We are confident that all the charitable activities that we have undertaken do further our charitable purposes for the public benefit.

SHiFT is supporting some of the most vulnerable children in our society, most of whom have suffered devastating experiences of trauma, neglect, abuse or poor attachment. Through our work, we will demonstrate that trauma informed, relational and identity forming approaches are both effective and necessary to break entrenched, destructive and sometimes multi-generational cycles of offending. On the basis of our experience and results, we aim to create system change to transform the way that our society collectively guides, educates, diverts and rehabilitates our nation's children who are caught in a complex and destructive cycle of offending and related behaviour.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

STRATEGIC REPORT

Achievement and performance

SHiFT has worked with 115 children and their families since January 2021. We are currently working with 72 of these children.

SHiFT gets alongside and strengthens the families and communities that children grow up in, which are often children's source of love and belonging. Our work with families includes siblings and parents or carers. SHiFT also works with all professionals involved in the lives of the children and young people we support.

Of the 72 children and young people currently supported by SHiFT:

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

There is good evidence of SHiFT's positive impacts in action.

An external implementation evaluation supported by the Youth Endowment Fund and published in September 2022 found that SHiFT Practices were successfully engaging the right children with flexibility and persistence to ensure children have the support they need. It also reported that SHiFT was seen as innovative and credible by professional stakeholders at all levels. This is an excellent basis for scaling.

Beyond this, in June 2022, SHiFT's Research and Evaluation Lead, Dr Kirstine Szifris, published findings from internal process evaluation, drawing on wide ranging administrative data, interviews and focus groups, to understand children's experiences and the mechanisms that underpin SHiFT's action. An extract from the summary of Dr Szifris' report reads:

'As SHiFT moves into its next stage with an aim of launching further Practices, this research has helped to strengthen its foundations by helping to understand how and why SHiFT is working.

So far, there have been some impressive outcomes - not least for children like Banquo whose return to mainstream education is described by professionals as a rare feat. Instead of following a far-too-common trajectory of escalating criminal behaviour, he can move to a place of strength and responsibility where his knife crime, fighting, and convictions are not repeated and his capacity to aspire, achieve and contribute to society is realised.

More broadly, children supported by SHiFT feel seen and heard. Children I spoke with were all clear that SHiFT is supporting them in a way that feels meaningful to them. At this early stage, data is starting to reveal some good evidence of positive outcomes - a reduction in missing episodes (which professionals report often relate to drug dealing and county lines), a reduction in severity and number of arrests and conviction, and an increase in engagement in education, employment or training including some returning to school or training after a period with little or no provision, some improving attendance and behaviour, and others finding more suitable educational placements.

It is not a clear picture though. The cycles of crime in which the children SHiFT works with are caught are deep, destructive and worsening. Children's journeys are not all linear - there are setbacks, changes in circumstances and feelings, and periods where they lean out of the relationship with their Guide and want to prioritise other aspects of their lives - but what is clear from this research is that SHiFT Guides stay with them, looking every day for opportunities to help them refocus, reframe, and reconsider options and choices.

Children see SHiFT Guides as the ear they need in times of crisis. It takes time - and, it seems, all the ingredients of Breaking Cycles of tenacity, perseverance, flexibility, and finding the right hook day by day, minute by minute - to break these cycles.'

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

The 72 children currently enrolled in SHiFT Programmes are at very different points in their SHiFT journeys. 10 children started working with their Guide less than three months ago and most have worked with their Guide for less than a year. Evidence of emerging positive progress and impact for the children who are currently taking part in the SHiFT Programme is nevertheless reflected in key administrative data. This includes:

Evidence of increased safety:

Evidence of strengthened inclusion and belonging:

Evidence of breaking cycles of crime:

Economic analysis of SHiFT's work conducted by Cornish & Grey in June 2022 describes some of the fiscal impacts of our work. Key findings include:

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

This evidence gives us confidence that work with children and young people is having the positive impacts intended, enabling them to rebuild the foundations of their lives and break cycles of crime. Evaluation activities have generated learning that has already been implemented to strengthen the processes of mobilising new SHiFT Practices.

As a result of sustained work over this last year to develop SHiFT's strategic relationships and to communicate the nature and impacts of SHiFT's work, interest in SHiFT from the public sector and from central government is high. We have fed into the Commission on Young Lives work, support from Violence Reduction Units is increasing, and we are in active dialogue with the Ministry of Justice, Home Office, Department for Levelling Up and Department for Education. We now have the approach, the staff team, experience, strategic relationships and evidence to support accelerated growth and fulfil our strategic ambition to launch five further SHiFT Practices in this next year.

Balanced picture of achievements against objectives set

SHiFT has launched, grown a high performing national team, and mobilised Practices that are evidenced to be providing outstanding support for children and families, which is breaking cycles of crime. As of July 2022, two thirds of the children supported by SHiFT had remained entirely offence-free. 48 of the 72 children and young people with whom we are currently working have not been convicted of any new offences since working with SHiFT.

SHiFT has grown and achieved outcomes largely in the context of the many operational and public health challenges of the Covid-19 pandemic, the cost-of-living crisis thereafter, and ongoing significant pressures on local authority funding. Though we might have hoped to have launched further Practices faster, SHiFT Bexley and SHiFT Tameside launched this year and SHiFT Manchester has been scoped, ready for mobilisation and launch in the next financial year. Realising the pledge made of investment from the Department for Levelling Up, Housing and Communities would substantially improve the pace at which we could mobilise and launch new Practices and strengthen our opportunities for contributing towards system change. Realising this pledge in the months ahead is a critical focus for the organisation. SHiFT is in a strong position to move ahead and has performed well against its aspirations and objectives.

Performance of material fundraising activities against fundraising objectives

SHiFT has continued to enjoy strong philanthropic support, which has enabled the organisation to meet core running costs for the national team and to secure 75% of Practice costs at Kingston & Richmond and Greenwich, 50% of Practice costs at Bexley and 50% of Practice costs for SHiFT Tameside. Fundraising for SHiFT Manchester is underway with we expect this to be secured shortly.

Our key priority now is to secure the central government funding that was pledged by the Department for Levelling Up, Housing and Communities to support further national scaling, which will incorporate meeting ongoing core costs for the national SHiFT team.

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SHIFT ORGANISATION LTD REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

Positive and negative factors outside of charity control

SHiFT has garnered strong attention from policymakers and senior practitioners, partly as a result of opportune increased focus on the needs and experiences of adolescents (e.g., the Independent Review of Children's Social Care), and the unfortunate ongoing rise in the vulnerabilities and unmet needs of this group, especially since Covid. The highest proven reoffending rate across the youth justice system in England and Wales is for children leaving custody - 64% within 12 months after release. Interest in doing things differently is therefore high and the case for change increasingly well understood and considered urgent.

Covid-19, the cost-of-living crisis, and the war in Ukraine have all been negative factors outside of SHiFT's control that have impacted our work. Covid-19 and the cost-of-living crisis have impacted labour markets - people's expectations of work, levels of competition, and increased salary expectations - and, together with the knock-on impacts arising from the war in Ukraine, these factors have added financial pressures to us, and our public sector partners. In this context, government has been pulled in many competing directions and general political instability has been high. Political instability has continued to be challenging for us in this financial year, specifically in relation to realising promised investment from the Department for Levelling Up, Housing & Communities to enable national scaling. We are working hard to maintain and build new relationships, including with civil servants, to maintain the organisation's profile, alongside ongoing work to develop and evidence exceptional practice and outcomes, to maximise chances of realising promised support.

FINANCIAL REVIEW

Principal funding sources

During 2022/23, our principal funding sources were philanthropic donors, trusts and foundations. Increased levels of Local Authority investment (50% rather than 25%) for new SHiFT Practices in Bexley and Tameside, and new Violence Reduction Unit investment in Manchester, mean that the proportionate need for philanthropic funds to support our growing activities has somewhat reduced.

Moving forward into 2023/24, our key priority is to secure the central government funding pledged through the Department for Levelling Up, Housing and Communities to enable national scaling with investment that includes a contribution to the core costs of the national SHiFT team. Alongside fees from each Practice towards the costs of support provided by the national team, this should reduce the need for ongoing philanthropic support and increase the organisation's sustainability.

Total income for period was £697,118 (2022: £1,037,576) and total expenditure was £753,987 (2022: £919,419).

At the end of the financial year, we held a cash balance of £1,043,400 (2022: £914,259).

The costs for each 18-month Programme at a new Practice are approximately £550-600k. SHiFT is now funding 50% of these costs and public sector partners (Local Authorities, Violence Reduction Units and similar partners) are funding the remaining 50%.

The costs for SHiFT's national team (encompassing both staff and non-staff expenditure) remain approximately £600,000 per year.

Key fundraising needs going forward are:

Our key priority now is to secure the central government funding that has been pledged to support further national scaling and realise our strategic ambition for the next three years to mobilise and launch a further five SHiFT Practices.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

Reserves policy

At the end of March 2023, we held total funds of £841,819 (2022: £898,688) of which:

The organisation's reserves policy is to ensure that - over and above any funds restricted or designated to each programme - we maintain between three and six months of reserves to ensure that we can meet our obligations regarding staffing and overheads for the national SHiFT team.

Our central operating costs are approximately £600,000 per annum. We are therefore currently operating with approximately nine months of free reserves, and within the requirements of our reserves policy.

Principal risks and uncertainties

Risk management is dealt with at all levels of the organisation, with a register of principle risks and their mitigation brought to each board meeting. We consider our principal risks to be as follows:

Safeguarding : we are working with a very vulnerable group of children and their families; therefore, safeguarding is one of our principal risks and one that we take incredibly seriously. As our SHiFT Practices are all employed by the Local Authority in which they are based, our Partnership Agreement makes clear that it is the responsibility of each Local Authority to ensure that safeguarding risks are being properly managed within their own safeguarding procedure. Nevertheless, our safeguarding policy sets out our fundamental safeguarding principles which we would expect all of our partners to adhere to, and our quality assurance processes have been developed to ensure that we can check that effective safeguarding is happening in practice. All SHiFT staff receive bi-annual safeguarding training.

Financial : we are a relatively new charity, relying on, at present, a relatively small number of donors alongside partnership investment from local authorities while we get our initial Practices mobilised. We have not yet raised all of the funding for the Practices we wish to deliver within the first phase of our strategy, and local authority budgets are under significant pressure with many competing priorities. Therefore, this constitutes a principal risk which we are working hard to address through a concerted fundraising drive over the next six months, particularly realising the pledge made in this financial year for investment from the Department for Levelling Up, Housing and Communities.

Team recruitment and development : Covid-19 and the cost-of-living crisis have impacted labour markets - people's expectations of work, levels of competition, and increased salary expectations. Together with current high levels of inflation, this is a real challenge for us, as with others in the sector. Recruiting and retaining outstanding staff is critical to our success. We are investing thoughtfully in learning and development and strengthening our culture and recruitment processes to place us in the best position to attract and retain talent.

Demonstration of impact : while we have made significant progress in the evidencing of impact, we understand that it is fundamental that we are able to show a clear cost-benefit to local authorities and the youth justice system, and a significant and sustainable impact of the programme on our beneficiaries compared with traditional management of young people who conflict with the law. With that in mind, we are committed to continued detailed evaluation, building towards external impact evaluation that can evidence causation. We are refreshing our evaluation strategy, which will guide us to deliver on our ambitions over the next two years and will be applying to new sources of funding to support this work.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

Future plans

Our long-term goal is to create and support SHiFT Practices across the UK that will break cycles of crime through the work they do directly with children and young people and through system change leveraged through a new and evidenced approach to practice. We want to change the way in which statutory services are delivered, specifically in relation to the youth justice system, so that these achieve stronger and more sustainable outcomes for the children currently caught up within it.

Between 2022 and 2024, SHiFT will strengthen its foundations in four key areas:

1. More young people out of crime, safe and thriving

2. Compelling evidence and organisational learning

3. A community of committed changemakers

4. New public conversation

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, Memorandum and Articles, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Recruitment and appointment of new trustees

SHiFT's four founders (Sophie Humphreys, Josh MacAlister, Rebecca Cramer and Michael Clark) set up SHiFT through a common interest in identifying more effective ways of breaking the destructive cycle of offending behaviours in children, enabling them to enjoy lives of choice and opportunity.

A subsequent review of skills, knowledge, professional backgrounds and diversity, and Josh MacAlister stepping down to lead a government review in January 2021, led to the engagement of two new trustees (Rasheed Pendry and Pam Parkes) in September 2020 and one further trustee (Joe Calouri) in July 2021.

Josh MacAlister re-joined the Board after he completed work on the government review, picking up the baton as Chair from Sophie Humphreys in September 2022.

Organisational structure

We have a small, national team comprising of five staff. Our central team supports each Local Authority (or Host Organisation) to mobilise the programme, recruit and train the staff, provide ongoing development and support of the programme framework, evaluate activities, as well as fundraising and management/governance of the charity.

SHiFT Greenwich has eight staff, comprising one Lead Guide, six Guides and one Practice Coordinator. SHiFT Tameside has six staff, comprising one Lead Guide, four Guides and one Practice Coordinator. SHiFT Bexley is a smaller Practice, comprising one Lead Guide, two Guides and one Practice Coordinator. All Practice staff are employed by the Host Organisation (typically, the Local Authority that is partnering with SHiFT).

Decision making

Our Board of Trustees is responsible for all governance and strategic decision making. Day to day management is delegated to SHiFT's Chief Executive, while the management of each local SHiFT Practice is delegated to the Host Organisation through Local SHiFT Management Board, into which the national SHiFT team also inputs. Responsibility for delivery sits clearly with the Host Organisation, underpinned by Memorandum of Understanding / Partnership Agreements that are agreed between SHiFT and the Host Organisation before Practices are created.

We have developed three Committees to the Board: Finance Committee (Chaired by trustee Michael Clark), Practice Committee (Chaired by trustee Rasheed Pendry), and Research & Evaluation Committee (Chaired by trustee Joe Calouri). All Committees involve a combination of trustees, and some include external, co-opted representation, including Professor Stephen Morris and Paul Dawson as part of our Research & Evaluation Committee.

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STRUCTURE, GOVERNANCE AND MANAGEMENT Induction and training of new trustees

Trustees are provided with a comprehensive induction pack as part of their induction, which includes:

Meetings with the Chair, existing trustees and the Chief Executive are arranged as part of the induction so that new trustees can gain a deeper working knowledge of the charity. Visits to existing SHiFT Practices are included as appropriate.

Key management remuneration

Our policy is to benchmark any new roles against comparable roles within the sector. Staff are subsequently offered a salary that considers the skills and experience they bring to the role, pay equality and affordability.

Pay is reviewed annually in March, where we aim to offer a cost-of-living and inflationary environment increases. Any pay review is recommended by the Chief Executive and subject to the approval of the Board. The Chief Executive's salary is reviewed annually by the Board of Trustees. We subscribe to the London Living Wage. We also have a defined contribution pension for all staff after their probation period passed through NEST.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 11928188 (England and Wales)

Registered Charity number

1191125

Registered office

Coram Campus 41 Brunswisk Square London WC1N 1AZ

Trustees

M B Clark R Cramer S Humphreys J Macalister (appointed on 28.09.2022) P V Parkes R J Pendry J T Caluori

Independent Examiner

Sedulo Accountants Limited Chartered Certified Accountants 62-66 Deansgate Manchester M3 2EN

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on ............................................. and signed on the board's behalf by: 15th December 2023

Josh MacAlister Josh MacAlister (Dec 15, 2023 18:24 GMT) Josh MacAlister .......................................................................... J Macalister - Trustee

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INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF SHIFT ORGANISATION LTD

Independent examiner's report to the trustees of Shift Organisation Ltd ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2023.

Responsibilities and basis of report

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

Having satisfied myself that the accounts of the Company 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 your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies.

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:

  1. accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act 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; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for 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)).

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 accounts to be reached.

Daniel Wilson FCCA

Sedulo Accountants Limited Chartered Certified Accountants 62-66 Deansgate Manchester M3 2EN

Date: ............................................. 20th December 2023

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SHIFT ORGANISATION LTD

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
3
Pilot schemes
Total
EXPENDITURE ON
Charitable activities
4
Pilot schemes
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
fund
£
415,718
75,000
490,718
707,755
(217,037)
848,398
631,361		 Restricted
funds
£
206,400
-
206,400
46,232
160,168
50,290
210,458		 2023
Total
funds
£
622,118
75,000
697,118
753,987
(56,869)
898,688
841,819		 2022
Total
funds
£
1,007,576
30,000
1,037,576
919,419
118,157
780,531
898,688

The notes form part of these financial statements

Page 17

SHIFT ORGANISATION LTD

BALANCE SHEET 31 MARCH 2023

Notes
FIXED ASSETS
Tangible assets
10
CURRENT ASSETS
Debtors
11
Cash at bank
CREDITORS
Amounts falling due within one year
12
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
FUNDS
13
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Unrestricted
fund
£
9,009
4,278
832,942
837,220
(214,868)
622,352
631,361
631,361		 Restricted
funds
£
-
-
210,458
210,458
-
210,458
210,458
210,458		 2023
Total
funds
£
9,009
4,278
1,043,400
1,047,678
(214,868)
832,810
841,819
841,819
631,361
210,458
841,819		 2022
Total
funds
£
3,823
3,592
914,259
917,851
(22,986)
894,865
898,688
898,688
848,398
50,290
898,688

The notes form part of these financial statements

continued...

Page 18

SHIFT ORGANISATION LTD

BALANCE SHEET - continued 31 MARCH 2023

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2023 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by: 15th December 2023

Josh MacAlister

Josh MacAlister (Dec 15, 2023 18:24 GMT) .............................................

J Macalister - Trustee

The notes form part of these financial statements

Page 19

SHIFT ORGANISATION LTD

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2023

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Net cash 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		 2023
£
136,425
136,425
(7,284)
(7,284)
129,141
914,259
1,043,400		 2022
£
104,935
104,935
(749)
(749)
104,186
810,073
914,259

The notes form part of these financial statements

Page 20

SHIFT ORGANISATION LTD

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2023

1.
RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM
OPERATING ACTIVITIES
2023
£
Net (expenditure)/income for the reporting period (as per the
Statement of Financial Activities)
(56,869)
Adjustments for:
Depreciation charges
2,098
Decrease/(increase) in debtors
3,592
Increase/(decrease) in creditors
187,604
Net cash provided by operations
136,425
2.
ANALYSIS OF CHANGES IN NET FUNDS
At 1.4.22
Cash flow
£
£
Net cash
Cash at bank
914,259
129,141
Total
914,259
129,141		 2022
£
118,157
4,607
(3,592)
(14,237)
104,935
At 31.3.23
£
1,043,400
1,043,400

The notes form part of these financial statements

Page 21

SHIFT ORGANISATION LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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

The charity meets the definition of a public benefit entity under FRS 102.

Going Concern

At the time of approving these financial statements and having reviewed the charity’s financial performance and free reserves position, whilst mindful of the current economic climate and the potential impact upon our resources of income and planned expenditure, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Therefore, the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received, and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Computer equipment

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

continued...

Page 22

SHIFT ORGANISATION LTD NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

1. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS102 to all of its financial statements.

Financial instruments are recognised in the company's balance sheet when the company 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 includes 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 present value of the future receipts discounted at a market rate of interest. Financial asserts classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 and services that have been acquired in the ordinary course of business 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 rate method.

continued...

Page 23

SHIFT ORGANISATION LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

2. DONATIONS AND LEGACIES

Unrestricted
Funds
£
Donations
41,709
Gift Aid
5,000
Trusts and foundations
369,009
415,718
3.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Team fees
Pilot schemes
4.
CHARITABLE ACTIVITIES COSTS
Pilot schemes
5.
SUPPORT COSTS
Management
Finance
£
£
Pilot schemes
305,455
242		 Restricted
Funds
£
-
-
206,400
206,400
Direct
Costs
£
282,665
Other
£
150,173		 Total funds
2023
£
41,709
5,000
575,409
622,118
2023
£
75,000
Support
costs (see
note 5)
£
471,322
Governance
costs

£
15,452		 Total funds
2022
£
251,086
5,250
751,240
1,007,576
2022
£
30,000
Totals
£
753,987
Totals
£
471,322

continued...

Page 24

SHIFT ORGANISATION LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

5. SUPPORT COSTS - continued

Support costs, included in the above, are as follows:

Wages
Social security
Pensions
Staff training
Recruitment costs
HR support contract
Bank charges
Rent and rates
Office costs
Insurance
Telephone
IT costs
Website costs
Consultancy costs
Subscriptions
Depreciation of tangible fixed assets
Accountancy and legal fees
Professional fees		 2023
Pilot
schemes
£
266,394
15,195
14,307
7,926
1,433
200
242
17,519
9,586
3,092
2,311
2,733
23
111,254
1,557
2,098
6,140
9,312
471,322		 2022
Total
activities
£
284,282
27,908
17,658
1,540
36,888
115
228
14,944
4,761
1,827
3,218
5,038
5,284
72,865
829
4,607
9,470
-
491,462

6. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

Depreciation - owned assets
Other operating leases
Auditor's remuneration		 2023
£
2,098
17,519
-		 2022
£
4,607
14,944
6,000

continued...

Page 25

SHIFT ORGANISATION LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

7. TRUSTEES' REMUNERATION AND BENEFITS

Ms S Humphreys, a Trustee of the charity, charged the charity £15,750 (2022: £54,750) in respect of consultancy services provided to the charity.

Mr J MacAlister, a Trustee of the charity, charged the charity £29,750 (2022: £Nil) in respect of consultancy services provided to the charity to cover for CEO maternity.

In making these payments the charity fully considered the implications of making a payment to a Trustee and the Board were satisfied that the amount of the payments for the services does not exceed what is reasonable, in the circumstances, for the supply of the service in question. The decisions were also made with the Trustees concerned absent from the part of the meeting where these were agreed. These payments to Trustees were permitted under the memorandum and articles of association of the Charitable Company. All the required conditions under sub-clause 2 of clause 7 of the memorandum and articles were met.

Trustees' expenses

During the year, there were trustee's expenses paid of £Nil (2022: £205).

8. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2023
£
266,394
15,195
14,307
295,896		 2022
£
284,282
27,908
17,658
329,848

Key management personnel are considered to be the Chief Executive Officer, the Chief Operating Officer and the Head of Practice. The aggregate remuneration of key management personnel during the year was £170,563 (2022: £183,099).

The average monthly number of employees during the year was as follows:

Programme and administrative 2023
5		 2022
9

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

£60,001 - £70,000
£70,001 - £80,000
£80,001 - £90,000		 2023
1
-
2
3		 2022
1
3
1
5

continued...

Page 26

SHIFT ORGANISATION LTD NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

8. STAFF COSTS - continued

During the year, the charity paid £20,500 (2022: £Nil) in respect of severance pay to 1 member of staff.

9. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
Pilot schemes
Total
EXPENDITURE ON
Charitable activities
Pilot schemes
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
fund
£
866,336
30,000
896,336
471,954
424,382
424,016
848,398		 Restricted
funds
£
141,240
-
141,240
447,465
(306,225)
356,515
50,290		 Total
funds
£
1,007,576
30,000
1,037,576
919,419
118,157
780,531
898,688

continued...

Page 27

SHIFT ORGANISATION LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

10. TANGIBLE FIXED ASSETS
Computer
equipment
£
COST
At 1 April 2022 9,276
Additions 7,284
At 31 March 2023 16,560
DEPRECIATION
At 1 April 2022 5,453
Charge for year 2,098
At 31 March 2023 7,551
NET BOOK VALUE
At 31 March 2023 9,009
At 31 March 2022 3,823
11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£ £
Other debtors - 3,592
Prepayments 4,278 -
4,278 3,592

continued...

Page 28

SHIFT ORGANISATION LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023 2022
£ £
Trade creditors 4,081 317
Social security and other taxes 5,153 9,673
Other creditors 1,434 2,976
Accruals and deferred income 204,200 10,020
214,868 22,986
MOVEMENT IN FUNDS
Net
movement At
At 1.4.22 in funds 31.3.23
£ £ £
Unrestricted funds
General fund 848,398 (217,037) 631,361
Restricted funds
All funds 50,290 160,168 210,458
TOTAL FUNDS 898,688 (56,869) 841,819
Net movement in funds, included in the above are as follows:
Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 490,718 (707,755) (217,037)
Restricted funds
All funds 206,400 (46,232) 160,168
TOTAL FUNDS 697,118 (753,987) (56,869)

13. MOVEMENT IN FUNDS

continued...

Page 29

SHIFT ORGANISATION LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

13. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

At 1.4.21
£
Unrestricted funds
General fund
424,016
Restricted funds
All funds
356,515
TOTAL FUNDS
780,531
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
896,336
Restricted funds
All funds
141,240
TOTAL FUNDS
1,037,576		 Net
movement
in funds
£
424,382
(306,225)
118,157
Resources
expended
£
(471,954)
(447,465)
(919,419)		 At
31.3.22
£
848,398
50,290
898,688
Movement
in funds
£
424,382
(306,225)
118,157

continued...

Page 30

SHIFT ORGANISATION LTD NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

13. MOVEMENT IN FUNDS - continued

Restricted funds

To date we have launched 4 SHiFT Practices in partnership with different local authorities across the country. Our first Practice was in Kingston & Richmond and was followed by Practices in Greenwich, Bexley & Tameside. We have one further SHiFT Practice launching in Manchester City, due to launch in Autumn 2023. There are further plans in place to launch an additional 5 to 6 Practices, areas are yet to be finalised.

14. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2023 nor 31 March 2022.

Page 31

SHIFT ORGANISATION LTD

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Gift aid
Trusts and foundations
Charitable activities
Team fees
Total incoming resources
EXPENDITURE
Charitable activities
Payments to Pilots
Recruitment for SHIFT teams
Team training and events
Event costs
Additional project costs
Support costs
Management
Wages
Social security
Pensions
Staff training
Recruitment costs
HR support contract
Finance
Bank charges
Other
Rent and rates
Carried forward		 2023
£
41,709
5,000
575,409
622,118
75,000
697,118
228,083
625
9,190
41,082
3,685
282,665
266,394
15,195
14,307
7,926
1,433
200
305,455
242
17,519
17,519		 2022
£
251,086
5,250
751,240
1,007,576
30,000
1,037,576
420,888
2,315
4,754
-
-
427,957
284,282
27,908
17,658
1,540
36,888
115
368,391
228
14,944
14,944

This page does not form part of the statutory financial statements

Page 32

SHIFT ORGANISATION LTD

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023

Other
Brought forward
Office costs
Insurance
Telephone
IT costs
Website costs
Consultancy costs
Subscriptions
Computer equipment
Governance costs
Accountancy and legal fees
Professional fees
Total resources expended
Net (expenditure)/income		 2023
£
17,519
9,586
3,092
2,311
2,733
23
111,254
1,557
2,098
150,173
6,140
9,312
15,452
753,987
(56,869)		 2022
£
14,944
4,761
1,827
3,218
5,038
5,284
72,865
829
4,607
113,373
9,470
-
9,470
919,419
118,157

This page does not form part of the statutory financial statements

Page 33

Charities report - 22.2

Final Audit Report

2023-12-15

Created: 2023-12-15 By: Shift UK (accounts@shiftuk.org) Status: Signed Transaction ID: CBJCHBCAABAAC8Av_i005XpjzDlJR8b7Um2x-8jeklkg

"Charities report - 22.2" History

Document created by Shift UK (accounts@shiftuk.org)

2023-12-15 - 1:55:21 PM GMT- IP address: 90.192.72.42

Document emailed to Josh MacAlister (josh.macalister@gmail.com) for signature

2023-12-15 - 1:55:28 PM GMT

Email viewed by Josh MacAlister (josh.macalister@gmail.com)

2023-12-15 - 4:50:32 PM GMT- IP address: 66.249.93.48

Document e-signed by Josh MacAlister (josh.macalister@gmail.com)

Signature Date: 2023-12-15 - 6:24:30 PM GMT - Time Source: server- IP address: 145.224.66.157

Agreement completed.

2023-12-15 - 6:24:30 PM GMT