2025-03-31-accounts

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

Charity registration number 1191125 (England and Wales)

Company registration number 11928188

SHIFT ORGANISATION LTD

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees	M B Clark
	S Humphreys
	R J Pendry
	R L Cramer
	P V Parkes
	Dr L Roberts
	S Hazzledine
	K Monteith	(Appointed 22 September 2024)
	Dr M P Griffiths	(Appointed 26 September 2024)
Chief executive officer	A Flowers
Charity number (England and Wales)	1191125
Company number	11928188
Registered office	Coram Campus
	41 Brunswisk Square
	London
	United Kingdom
	WC1N 1AZ
Auditor	Sedulo Audit Limited
	Office 605 Albert House
	256 - 260 Old Street
	London
	United Kingdom
	EC1V 9DD
Bankers	Lloyds Bank
	399 Oxford Street
	London
	W1C 2BB

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

CONTENTS

	Page
Trustees' report	1 - 13
Statement of trustees' responsibilities	14
Independent auditor's report	15 - 17
Statement of financial activities	18
Balance sheet	19
Statement of cash flows	20
Notes to the financial statements	21 - 32

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 MARCH 2025

The trustees present their annual report and financial statements for the year ended 31 March 2025.

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

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 cycles 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 Black, Brown, Mixed Heritage children and young people, and children from Gypsy, Roma and Traveller communities are over-represented within both Youth Justice and the Care System. 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 puts it: “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.

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SHIFT ORGANISATION LTD

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

FOR THE YEAR ENDED 31 MARCH 2025

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 a ongoing cycle of quality assurance and quality improvement activities, that includes:

• Interviews and focus groups with children and young people.

• Interviews and focus groups with family members of children and young people, and/or professionals from other services who are supporting them.

• The monthly completion and analysis of administrative and practitioner assessment data measuring progress against SHiFT's four outcome domains.

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

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

• To demonstrate the practical viability and effectiveness for improving outcomes for children and families of statutory responsibilities being met by using SHiFT’s Breaking Cycles practice model.

• To evidence substantial savings and costs avoided by public services investing in SHiFT and working differently, using SHiFT’s practice model, with the children and young people in a local area with highest levels of unmet need who have experienced greatest cumulative disadvantage.

• To influence Organisations that host SHiFT Practices in light of the above to sustain their SHiFT Practice, adopting it as business as usual, and to evolve other existing services to grow the influence of SHiFT’s approach to the benefit of a wider group of children and families.

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SHIFT ORGANISATION LTD

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

FOR THE YEAR ENDED 31 MARCH 2025

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charitable company should undertake.

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 multigenerational 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.

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 destructive cycle of crime and driving wholesale system change in how society perceives and supports the children and young people we work with.

The SHiFT Programme is based on the Breaking Cycles ingredients, devised by Sophie Humphreys OBE, one of SHiFT's Founders, Trustees and the organisation's former Chair. Instead of defining people by issues such as addictions or criminality, applying the Breaking Cycles ingredients practitioners understand that this behaviour often occurs as a result of previous experiences of trauma, neglect, abuse and poor attachment, and practice focuses first on working with each child or young person 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 safe and bright futures.

SHiFT:

• Start with aspiration, and together we set that bar high. We do not define children by their problems or behaviour. Where children have caused harm we support them to take accountability, while also building their self-worth.

• Support children and young people to change their perceptions of themselves and to challenge others’ perceptions of them. We believe in children so that they may believe in themselves.

• Reach children and young people and stay with them wherever they are and wherever they go. We are not constrained by artificial barriers such as age limits, service thresholds or Host Organisation borders.

• Support each child and young person through points of transition from childhood to adulthood, custody to community, from being out of education to getting back to school or work. There is no cliff edge at 18.

• See children and young people as part of families and communities and work with everyone in their world, including especially other professionals, seeking to understand and create sustainable positive change in relationships.

• Work with professionals across boundaries to ensure all children have equal access to consistently high-quality support and services. We support practitioners, managers and funders across agencies and services to ensure local, regional and national systems are purposed and structured to properly meet even the most complex needs.

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SHIFT ORGANISATION LTD

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

FOR THE YEAR ENDED 31 MARCH 2025

SHiFT uses the Breaking Cycles ingredients to inform all aspects of its systemic, anti-racist, and anti-oppressive practice, which is guided by the following five practice principles:

Practice Principle	What this means
Do the rights thing by the child	Holding the child’s interests uppermost and at the forefront of everything we do, how and whywe do it.
Go for gold	Insisting on exceptional over good; believing that change is possible; taking a hopeful, appreciative, problem-solvingapproach that opens spaces ofpossibility.
Hold and pull for help	Staying alongside the child and family no matter what; knowing when to draw on help when needed but staying accountable to make and drive progress for children and families.
Stay in the complexity	Holding multiple stories and ideas about what might be happening; staying curious and uncertain;takingboth/andpositions.
Step in to step back	Holding clear purpose for everything we’re doing, stepping in and out flexibly as children need but always with the goal of children and families flourishing without the need forprofessional involvement.

SHiFT is scaling high-impact Practices across the UK.

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 community.

A SHiFT Practice typically consists of five SHiFT Guides and a Practice Coordinator. SHiFT Guides are highly skilled practitioners, who have significant experience of working with children and young people who have high levels of unmet need and who have experienced significant cumulative disadvantage. 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 Host Organisations (often Local Authorities) in which they are based, and Partnership Agreements make clear that it is the responsibility of each Host Organisation to ensure that safeguarding risks are being properly managed within their own safeguarding procedures.

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.

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.

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SHIFT ORGANISATION LTD

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

FOR THE YEAR ENDED 31 MARCH 2025

Significant activities

SHiFT's continued focus during the financial year 2024/25 has been on delivering and evidencing outstanding outcomes for children to support the scale and spread of SHiFT Practices and to strengthen the organisation's credibility and insights to support influencing and systems change.

Work in SHiFT Bexley (which began in September 2022) and SHiFT Manchester (in December 2023) is ongoing, benefitting 52 children and young people.

In Summer 2024, we launched our first two Department for Levelling Up, Housing & Communities (now MHCLG) funded Practices in Middlesbrough and Redcar & Cleveland, benefitting 104 children and young people across the South Tees region with agreed arrangements for at least two SHiFT Programmes across 3-year initial partnerships. The key objectives of these Practices are:

SHiFT Middlesbrough:

1. Safely return children to Middlesbrough, who are currently cared for and placed outside of the area, to live with their families or to live in a suitable setting closer to their family and community.

2. Building trusting professional relationships with children with whom services have previously struggled to engage, but for whom risks are escalating, placing them at a heightened risk of becoming entrenched in criminal activity/exploitation and increased risk of requiring high-cost placements in the future, without intensive support.

SHiFT Redcar & Cleveland will work with children and young people who:

1. Are already at high risk of harm through crime and might be cared for children in high-cost placements.

2. May be coming up through the system and where the indicators suggest they are likely to become involved in crime or harmed in the future.

In Autumn 2024 we launched SHiFT Kingston & Richmond, building on work that was started through SHiFT’s first pilot Practice in 2020. SHiFT Kingston & Richmond is completely self-funded by the Local Authority with two key strategic objectives:

1. Testing systemic ways of working and the Breaking Cycles ingredients in a statutory context.

2. Evidencing Anti-Racist and Anti-Oppressive approaches in our work.

Scoping for the two further Department for Levelling Up, Housing & Communities (now MHCLG) supported Practices in Tendring, Essex and Croydon is underway. This will see new SHiFT Practice launch in Tendring, Essex in the April of 2025 and in Croydon in Autumn 2025.

The national SHiFT team has grown modestly to meet need across our growing number of Practices and their varied geographies, welcoming a Director of Programmes & Policy, a Learning & Insights Lead, an External Affairs & Communications Lead and a Digital Media and Events Coordinator.

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SHIFT ORGANISATION LTD

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

FOR THE YEAR ENDED 31 MARCH 2025

Achievements and performance

Significant activities and achievements against objectives

Since SHiFT was founded in 2019, we have worked with a total of 229 children and their families, 69 of whom had completed work with SHiFT by April 2024.

Between April 2024 and March 2025, work alongside 160 children, young people and their families took place across six SHiFT Practices – SHiFT Bexley, Kingston and Richmond, Middlesbrough, Redcar and Cleveland, Manchester and Tameside.

Before the end of the 2025 calendar year, SHiFT will welcome an additional 201 children and young people to work with a SHiFT Guide in Essex, Croydon, Middlesbrough, Redcar & Cleveland, Bexley, Manchester and Kingston & Richmond. This means that SHiFT will have reached 430 children and young people by the end of 2025.

The children and young people SHiFT works with are caught in the destructive cycle of crime. They have high levels of unmet need and are among the most vulnerable and cumulatively disadvantaged in the country.

• 89% are boys and 11% girls.

• 37% are Black, Asian or Mixed Heritage.

• Ages when selected for SHiFT range from 11 to 19, with an average age of 15 years old.

When children and young people started to work with their SHiFT Guide:

• 80% had criminal or sexual exploitation concerns.

• 83% were open to Children’s Social Care.

• 39% had a history of domestic abuse.

• 48% had mental health concerns.

In the year prior to SHiFT:

• 82% had been arrested.

• 63% had been reported missing.

• 55% had committed a proven offence.

• 20% had been a victim of serious youth violence.

SHiFT is making substantial positive impacts in the lives of the children and young people it works with, through consistent intensive relational work alongside a highly experienced professional who works with everyone important to a child or young person. Recent analysis of progress data* shows that compared to the year prior to SHiFT:

• Fewer children were arrested, and all Practices saw a decrease in the total number of arrests with a 24% reduction overall.

• The total number of proven offences committed by children has decreased, with a 28% reduction.

• Fewer children were reported missing overall compared to the year prior to SHiFT (23% reduction).

• Children’s Social Care involvement for under 18s has ended for 21 children during their time with SHiFT, demonstrating a reduction of risk and fewer professionals involved in children’s and families’ lives.

*for the 84 children who were working with a Guide as of April 2025 and have been working with SHiFT for at least 11 months

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SHIFT ORGANISATION LTD

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

FOR THE YEAR ENDED 31 MARCH 2025

Qualitative data also evidence substantial positive impact:

“So I was just in a bad place and [my SHiFT Guide] brought me back to life […] If I didn't choose to keep [my SHiFT Guide], then look where I would've been […] I’d probably be dead or something. Hundred percent.” (Kyle, child/young person, SHiFT Redcar and Cleveland)

“There was a part of me at one point that I felt like I'd lost the [child] that I knew and I'm slowly but surely seeing him come back now going and getting involved with doing the things that he's done with [Guide], like going to the marathon, and the amount of respect that he actually shows her and stuff. That's the old [child] before he was getting all this bother.” (Charlotte, family member/carer, SHiFT Manchester)

“It didn’t feel like I was with someone who was a worker, it just felt like I was with someone I could trust.” (Lee, child/young person, SHiFT Tameside)

Doing the right thing and making ‘the SHiFT difference’ for children, young people and families also realises savings to the public purse. Economic analysis conducted by Cornish & Grey found that for every £1 spent on SHiFT, £8 is saved over five years, and £33 is saved over 20 years. Recent economic analysis related to the Manchester Practice also found that over 12 months, SHiFT has avoided costs of up to £1.07 million by preventing arrests, new offences, and children being accommodated in secure settings or other placements. Similar analysis for SHiFT Middlesbrough at 12 months into Programme evidenced in year cost savings against Budget of £880k and an additional £100k in cost avoidance to the police through reduced arrests and missing episodes.

This evidence gives us confidence that the 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 are in active dialogue with the Ministry of Justice, Department for Culture, Media, and Sport, and Department for Education. We now have the approach, the staff team, experience, strategic relationships and evidence to support accelerated growth towards systems change.

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SHIFT ORGANISATION LTD

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

FOR THE YEAR ENDED 31 MARCH 2025

Balanced picture of achievements against objectives set

Having secured grant funding from the Department for Levelling Up, Housing & Communities (now MHCLG), alongside sustained philanthropic support, SHiFT has grown a high performing national team. We are sustaining Practices and mobilising new Practices that are evidenced to be providing outstanding support for children and families and breaking the destructive cycle of crime. As Practices begin to mature, they are making a growing contribution to influencing systems change within and beyond their Host Organisations.

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 more Practices faster, SHiFT Middlesbrough, SHiFT Redcar & Cleveland and SHiFT Kingston & Richmond launched this year and SHiFT Essex and SHiFT Croydon have been scoped, ready for mobilisation and launch in the next financial year. 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 secured funding from the Department for Levelling Up, Housing & Communities (now MHCLG) to support the creation of four new SHiFT Practices, two of which have now launched and which will deliver two 18-month Programmes. An initial threeyear commitment to partnership working between SHiFT and the Host Organisations – rather than just one 18-month programme - provides a more realistic and helpful basis for realising and evidencing the benefits of SHiFT within each local system, including identifying and leveraging opportunities for systems influencing. SHiFT has also continued to enjoy strong philanthropic support, which has enabled the organisation to meet core running costs for the national team.

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. The current national political climate is more stable, albeit with ongoing financial challenges and increasing broader social polarisation, including racism and rioting this year and growing traction of far-right groups in some parts of England.

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SHIFT ORGANISATION LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Financial review

During 2024/25, our principal funding sources were the Department for Levelling Up, Housing & Communities (now MHCLG), along with continued strong support from philanthropic donors, trusts and foundations. Increased levels of Local Authority investment (50% rather than 25%) for new SHiFT Practices, and Violence Reduction Unit investment in Greater Manchester, mean that the proportionate need for philanthropic funds to support our growing activities has reduced somewhat.

Moving forward into 2025/26, our key priority is to continue to scale Practices and to deliver on the grant from the Department for Levelling Up, Housing & Communities (now MHCLG), and thereafter reflect on progress and priorities to shape our next organisational strategy.

Total income for period was £2,816,963 (2024: £2,074,821) and total expenditure was £2,052,332 (2024: £1,181,014).

At the end of the financial year, we held a cash balance of £3,848,691 (2024: £3,264,701).

The costs for each 36-month Programme at a new Practice are approximately £1.2 million. 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 cost of SHiFT's national team (encompassing both staff and non-staff expenditure) has increased in line with Practice growth and is approximately £1,120,000 per year.

Key fundraising needs going forward are:

• Ongoing core costs for the national SHiFT team.

• Funding to support SHiFT’s system change ambitions.

Reserves policy

At the end of March 2025, we held total funds of £2,500,256 (2024: £1,735,625) of which:

• £2,058,468 (2024: £991,693) are restricted funds carried over to the following financial year; and

• £441,788 (2024: £743,932) were unrestricted, of which £0 (2024: £152,500) were assigned to the delivery of Programmes in existing Practices, giving an unrestricted and unassigned balance at the end of March 2025 of £441,788.

The organisation's reserves policy is to ensure that, over and above any funds restricted or assigned 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 £900,000 per annum. As of March 2025, we are operating with approximately six months of free reserves, and within the requirements of our reserves policy.

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SHIFT ORGANISATION LTD

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

FOR THE YEAR ENDED 31 MARCH 2025

Principal risks and uncertainties

Risk is carefully identified and managed at all levels of the organisation, with a register of principal risks and activities to mitigate them brought to SHiFT Committees and Board of Trustee meetings. 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 Host Organisation in which they are based, Partnership Agreements make clear that it is the responsibility of each Host Organisation 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 and all national SHiFT staff and Trustees are DBS vetted.

Financial: we are a relatively new charity, relying on, at present, a relatively small number of donors alongside partnership investment from Host Organisations. We have been fortunate to secure funding from the Department for Levelling Up, Housing & Communities, which has meant that we can create four new Practices and use philanthropy to secure extensions across all existing Practices. As we grow the number of Practices, there is also a requirement to grow our national team, to ensure that we are able to provide the level of support needed to each of our existing and new Practices. With this brings additional pressure on our central overheads, which means that we will need to continue to fundraise for this over the coming financial year.

Team recruitment, development and retention: 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 previous 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 Host Organisations, and a significant and sustainable impact of the Programme on our beneficiaries compared with traditional management of young people who are in conflict with the law. With that in mind, we are committed to continued detailed evaluation, building towards external impact evaluation that can evidence causation.

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SHIFT ORGANISATION LTD

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

FOR THE YEAR ENDED 31 MARCH 2025

Plans for future periods

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, so that these achieve stronger and more sustainable outcomes for the children and young people subject to them through their coming into conflict with the law.

Between 2022 and 2025, SHiFT has committed to strengthening its foundations in four key areas:

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

• Launch five new Practices with at least three out of London. New Practices will be targeted in areas of greatest need and where SHiFT can make greatest impact, including by innovating in SHiFT's system entry point and partnership design (e.g. educational partnerships).

• Deepen partnerships with host organisation’s, increasing our existing Practices or launching new Practices.

• Testing the SHiFT model within statutory services.

• Support 125 children through its new and existing Practices.

• Continue to develop an ambitious, creative, inclusive practice and learning model that delivers outstanding outcomes for young people and positive domino effects to transform systems.

2. Compelling evidence and organisational learning

• Develop comprehensive and thoroughly theoretically and empirically evidenced theories of individual, community and system change and outcomes frameworks.

• Implement ongoing robust cycle of qualitative and administrative data collection to understand experiences of SHiFT and enrich practice, including through comparative insights across different Practice contexts.

• Gather evidence of outcomes for young people (including emergent longitudinal impacts) and progress towards system change.

• Develop a strong learning culture, centring on reflective practice, and supported by our governance and learning and development programme, thoroughly integrating learning from evaluation to support practice and organisational development.

3. A community of committed changemakers

• Provide sector-leading learning and development opportunities that develop talent and aspiration within SHiFT and develop relationships and share opportunities within our networks.

• Build strategic partnerships with organisations that share our vision for young people and system change.

• Leverage SHiFT's convening power - hosting events and activities that bring together people across policy, practice, research to share their insights and perspectives and influence through collaboration towards a shared vision.

• Develop opportunities for young people with lived experience of SHiFT to use their voice and experiences to influence and contribute, both within and beyond SHiFT.

4. New public conversation

• Committed engagement in relevant commissions, enquiries and calls for evidence.

• High impact, and creative communication of SHiFT's work, including proactive engagement with the media.

• Learning and development opportunities that are open to public.

Structure, governance and management

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.

• 11 -

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

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

FOR THE YEAR ENDED 31 MARCH 2025

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

M B Clark S Humphreys R J Pendry R L Cramer P V Parkes Dr L Roberts S Hazzledine K Monteith (Appointed 22 September 2024) Dr M P Griffiths (Appointed 26 September 2024) J Macalister (Resigned 23 May 2024)

Recruitment and appointment of trustees

SHiFT's four Founders (Sophie Humphreys OBE, Josh MacAlister OBE, 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.

Following another review of skills, knowledge, professional backgrounds and diversity, and Joe Calouri stepping down due to commitments of a new role, two new Trustees (Dr Luke Roberts and Sarah Hazzeldine) joined the Board in January 2024.

Josh MacAlister stepped down as Chair in February 2024 to focus on his campaign to become an MP, which led to Pam Parkes stepping in as Chair until the Autumn of 2024. In Autumn 2024, the recruitment process for a new Chair concluded and Dr Martin Grifiths was appointed as the new Chair of the Board of Trustees, joined by Keir Monteith KC as a new Trustee.

Organisational structure

We have a small, national team comprising 12 staff. Our central team supports each Host Organisation to create a SHiFT Practice, mobilise the Programme, recruit and train the staff, provide ongoing development and support for operationalising the SHiFT Framework and quality assuring and improving practice, evaluating activities, developing strategic relationships and partners, hosting events and communicating SHiFT’s work to a wide range of audiences, as well as fundraising and management/ governance of the charity.

SHiFT Bexley, SHiFT Manchester, SHiFT Middlesbrough and SHiFT Redcar & Cleveland all have six staff, comprising one Lead Guide, four Guides and one Practice Coordinator. SHiFT Kingston & Richmond has seven staff, comprising one Team Manager, one Lead Guide, four Guides and one Practice Coordinator. All Practice staff are employed by the Host Organisation (typically, the Local Authority that is partnering with SHiFT).

SHiFT’s 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 the Local SHiFT Management Board. Members of the national SHiFT team are standing members of all Local SHiFT Boards. 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 SHiFT Board of Trustees: Finance Committee (chaired by Trustee Michael Clark), Practice Committee (chaired by Trustee Rasheed Pendry), and Research & Evaluation Committee (chaired by Trustee Dr Luke Roberts). All Committees involve a combination of Trustees and some include external, co-opted representation.

• 12 -

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

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

FOR THE YEAR ENDED 31 MARCH 2025

Induction and training of trustees

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

• SHiFT's vision, mission, values and strategic aims

• Previous annual reports, risk register and current year budget

• Guidance on the role of a trustee, the Charity Governance Code and available Charity Commission good practice guidance

• Background research and literature relevant to SHiFT's work

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.

Remuneration policy

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.

Auditor

In accordance with the company's articles, at the November 2025 AGM a decision will be made on which auditor will be appointed.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

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

.............................. Dr M P Griffiths Trustee

Date: 18[th] December 2025

• 13 -

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2025

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

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

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

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP (FRS102);

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

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

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Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF SHIFT ORGANISATION LTD

Opinion

We have audited the financial statements of Shift Organisation Ltd (the ‘charitable company’) for the year ended 31 March 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including 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).

In our opinion, the financial statements:

• give a true and fair view of the state of the charitable company's affairs as at 31 March 2025 and of its incoming resources and application of resources including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

• The information given in the Trustees’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• The Trustees’ Annual Report has been prepared in accordance with applicable legal requirements.

• 15 -

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF SHIFT ORGANISATION LTD

Matters on which we are required to report by exception

In light of our knowledge and understanding of the charitable company and its environment obtained in the course of our audit, we have not identified material misstatements in the Trustees’ Annual Report.

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

• the information given in the financial statements is inconsistent in any material respect with the Trustees' Annual Report; or

• sufficient accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charitable company for the purpose of company law, 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 charitable company’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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The primary responsibility for the prevention and detection of fraud rested with Trustees and management, and we cannot be expected to detect non-compliance with all laws and regulations.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements form our knowledge of the organisation and sector, enquiries of Trustees and management, and review of regulatory information and correspondence.

We communicated identified laws and regulations throughout the audit team and remained alert to any indications of noncompliance throughout the audit.

We discussed with trustees and management the policies and procedures in place to ensure compliance with laws and regulations and otherwise prevent, deter and detect fraud.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations identified as potentially having a material effect on the financial statements.

Our procedures included review of financial statement information and testing of that information, enquiry of management and examination of relevant documentation, analytical procedures to identify unusual or unexpected relations that may indicate fraud, and procedures to address the risk of fraud through trustee or management override of controls.

• 16 -

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF SHIFT ORGANISATION LTD

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/ auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Ross Preston CA (Senior Statutory Auditor)

For and on behalf of Sedulo Audit Limited, Statutory Auditor Chartered Accountants Office 605 Albert House 256 - 260 Old Street London EC1V 9DD United Kingdom

Date: 18[th] December 2025

Sedulo Audit Limited is eligible for appointment as auditor of the charitable company by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

• 17 -

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2025

Unrestricted funds 2025 Notes £ Income from: Donations and legacies 3 665,853 Charitable activities 4 150,000 Investments 5 15,135 Total income 830,988 Expenditure on: Charitable activities 6 1,474,145 Total expenditure 1,474,145 Net income/(expenditure) (643,157) Transfers between funds 341,013 Net movement in funds 8 (302,144) Reconciliation of funds: Fund balances at 1 April 2024 743,932 Fund balances at 31 March 2025 441,788	Restricted funds 2025 £ 1,985,975 - - 1,985,975 578,187 578,187 1,407,788 (341,013) 1,066,775 991,693 2,058,468	Total Unrestricted funds 2025 2024 £ £ 2,651,828 988,408 150,000 30,000 15,135 - 2,816,963 1,018,408 2,052,332 905,836 2,052,332 905,836 764,631 112,572 - - 764,631 112,572 1,735,625 631,360 2,500,256 743,932	Restricted funds 2024 £ 1,056,413 - - 1,056,413 275,178 275,178 781,235 - 781,235 210,458 991,693	Total 2024 £ 2,044,821 30,000 -
				2,074,821 1,181,014
				1,181,014
				893,807 -
				893,807 841,818
				1,735,625

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 21 to 32 form part of these financial statements.

• 18 -

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

BALANCE SHEET

AS AT 31 MARCH 2025

2025 Notes £ Fixed assets Intangible assets 12 Tangible assets 13 Current assets Debtors 14 191,643 Cash at bank and in hand 3,848,691 4,040,334 Creditors: amounts falling due within one year 15 (1,564,791) Net current assets Total assets less current liabilities The funds of the charitable company Restricted income funds 18 Unrestricted funds 19	2024 £ £ 12,485 12,228 24,713 9,725 3,264,701 3,274,426 (1,552,313) 2,475,543 2,500,256 2,058,468 441,788 2,500,256	£ - 13,512
		13,512 1,722,113
		1,735,625
		991,693 743,932
		1,735,625

The notes on pages 21 to 32 form part of these financial statements.

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2025, although an audit has been carried out under section 144 of the Charities Act 2011.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.

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

The financial statements were approved by the trustees on 18[th] December 2025.

.............................. Dr M P Griffiths Trustee

Company registration number 11928188 (England and Wales)

• 19 -

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2025

Notes Cash flows from operating activities Cash generated from operations 22 Investing activities Purchase of intangible assets Purchase of tangible fixed assets Investment income received Net cash used in investing activities Net cash generated from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year	2025 £ (14,499) (2,363) 15,135	£ 585,717 (1,727) - 583,990 3,264,701 3,848,691	2024 £ - (8,302) -	£ 2,229,604 (8,302) - 2,221,302 1,043,399 3,264,701

The notes on pages 21 to 32 form part of these financial statements.

• 20 -

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

Charity information

Shift Organisation Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is Coram Campus, 41 Brunswisk Square, London, WC1N 1AZ, United Kingdom.

1.1 Basis of preparation

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

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

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

1.2 Going concern

In making their assessment in relation to going concern, the Trustees have reviewed budgets and forecasts which cover a period of greater than twelve months into the future from the date of approval of these financial statements.

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

1.3 Charitable funds

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

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

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

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

Income from team fees are recognised in the period to which they relate.

Interest income is recognised in the accounts when receivable.

• 21 -

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

(Continued)

1.5 Expenditure

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

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

1.6 Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

Website Over 3 years

1.7 Tangible fixed assets

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

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

Computers 20% straight line

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

1.8 Impairment of fixed assets

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

1.9 Cash and cash equivalents

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

• 22 -

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

(Continued)

1.10 Financial instruments

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

Financial instruments are recognised in the charitable company's balance sheet when the charitable 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 include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charitable company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

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

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

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

Derecognition of financial liabilities

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

1.11 Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

• 23 -

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

(Continued)

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

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

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

There are no material judgements made or critical estimates entailing a high degree of complexity,

3 Income from donations and legacies

Unrestricted funds 2025 £ Donations and gifts 6,853 Government grants - Trusts and foundations 659,000 665,853	Restricted funds 2025 £ - 1,800,000 185,975 1,985,975	Total Unrestricted funds 2025 2024 £ £ 6,853 200,108 1,800,000 - 844,975 788,300 2,651,828 988,408	Restricted funds 2024 £ 150,000 791,013 115,400 1,056,413	Total 2024 £ 350,108 791,013 903,700
				2,044,821

4 Income from charitable activities

Practices Team fees

Unrestricted	Unrestricted
funds	funds
2025	2024
£	£
150,000	30,000

• 24 -

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

5	Income from investments
		Unrestricted	Unrestricted
		funds	funds
		2025	2024
		£	£
	Interest receivable	15,135	-
6	Expenditure on charitable activities
		Practices	Practices
		2025	2024
		£	£
	Direct costs
	Staff costs	465,649	254,545
	Payments to Practices	782,021	457,681
	Team training	147,042	20,886
		1,394,712	733,112
	Share of support and governance costs (see note 7)
	Support	632,857	430,741
	Governance	24,763	17,161
		2,052,332	1,181,014
	Analysis by fund
	Unrestricted funds	1,474,145	905,836
	Restricted funds	578,187	275,178
		2,052,332	1,181,014

• 25 -

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

7 Support costs allocated to activities

Staff costs Depreciation Operating lease charges Office costs Insurance Telephone IT and website Consultancy HR, recruitment and training Bank charges Subscriptions Travel costs Governance costs Analysed between: Practices Governance costs comprise: Audit fees Accountancy Legal and professional 8 Net movement in funds The net movement in funds is stated after charging/(crediting): Fees payable for the audit of the charity's financial statements Depreciation of owned tangible fixed assets Amortisation of intangible assets Operating lease charges	2025 £ 204,634 5,661 18,902 10,083 3,821 3,554 3,925 271,809 29,563 252 5,960 74,693 24,763 657,620 657,620 2025 £ 13,860 10,868 35 24,763 2025 £ 13,860 3,647 2,014 18,902	2024 £ 185,867 3,799 18,005 4,697 3,581 776 1,932 143,220 25,336 222 2,437 40,869 17,161
		447,902
		447,902
		2024 £ 13,200 3,913 48
		17,161
		2024 £ 13,200 3,799 - 18,005

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charitable company during the current and previous year.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

10 Employees

The average monthly number of employees during the year was:

Employment costs Wages and salaries Social security costs Other pension costs	2025 Number 12 2025 £ 588,273 61,118 20,892 670,283	2024 Number 9
		2024 £ 386,597 38,738 15,077
		440,412

During the year, the charity paid £Nil (2023: £20,500) in respect of severance pay to 1 member of staff.

The number of employees whose annual remuneration was more than £60,000 is as follows:

follows:
		2025	2024
		Number	Number
£60,001	- £70,000	1	-
£70,001	- £80,000	1	1
£80,001	- £90,000	-	1
£90,001	- £100,000	1	-

Remuneration of key management personnel

Key Management Personnel are considered to be the Chief Executive Officer, the Chief Operating Officer and the Head of Practice. The remuneration of key management personnel was as follows:

	2025	2024
	£	£
Aggregate compensation	280,581	221,769

11 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

12	Intangible fixed assets
		Website
		£
	Cost
	At 1 April 2024	-
	Additions	14,499
	At 31 March 2025	14,499
	Amortisation and impairment
	At 1 April 2024	-
	Amortisation charged for the year	2,014
	At 31 March 2025	2,014
	Carrying amount
	At 31 March 2025	12,485
	At 31 March 2024	-
13	Tangible fixed assets
		Computers
		£
	Cost
	At 1 April 2024	24,862
	Additions	2,363
	At 31 March 2025	27,225
	Depreciation and impairment
	At 1 April 2024	11,350
	Depreciation charged in the year	3,647
	At 31 March 2025	14,997
	Carrying amount
	At 31 March 2025	12,228
	At 31 March 2024	13,512

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SHIFT ORGANISATION LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

14 Debtors Amounts falling due within one year: Trade debtors Other debtors Prepayments and accrued income	2025 £ 107,975 50,000 33,668 191,643	2024 £ - - 9,725
		9,725

15 Creditors: amounts falling due within one year

Notes Other taxation and social security Deferred income 16 Trade creditors Other creditors Accruals Deferred income Arising from Deferred grant income	2025 £ 25,785 1,350,000 135,156 4,123 49,727 1,564,791 2025 £ 1,350,000	2024 £ 20,870 1,350,000 73,804 3,366 104,273
		1,552,313
		2024 £ 1,350,000

16 Deferred income

Arising from Deferred grant income

Deferred income relates to amounts received from grants which relate to projects commencing in the next financial year and therefore, not entitled to at the year end.

Deferred income is included in the financial statements as follows:

2025 £ Deferred income is included within: Current liabilities 1,350,000 Movements in the year: Deferred income at 1 April 2024 1,350,000 Released from previous periods (1,350,000) Resources deferred in the year 1,350,000 Deferred income at 31 March 2025 1,350,000	2024 £ 1,350,000
	200,000 (200,000) 1,350,000
	1,350,000

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

17	Retirement benefit schemes
		2025	2024
	Defined contribution schemes	£	£
	Charge to statement of financial activities in respect of defined contribution schemes	20,892	15,077

The charitable company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charitable company in an independently administered fund.

18 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At 1 Awards for All Dulverton Rayne Foundation Bruno Schroder Trust Fidelity UK Foundation Department for Levelling Up, Housing and Communities Million Hours Fund Previous year: At 1 Awards for All Dulverton Rayne Foundation Bruno Schroder Trust Fidelity UK Foundation Department for Levelling Up, Housing and Communities Million Hours Fund	April 2024 £ 6,283 30,000 25,000 18,978 111,419 791,013 9,000 991,693 April 2023 £ 6,517 30,000 3,744 100,000 70,197 - - 210,458	Incoming resources £ - - - 185,975 - 1,800,000 - 1,985,975 Incoming resources £ - - 25,000 150,000 81,400 791,013 9,000 1,056,413	Resources expended £ (2,688) (30,000) (25,000) (18,978) (101,521) (400,000) - (578,187) Resources expended £ (234) - (3,744) (231,022) (40,178) - - (275,178)	Transfers At 31 March 2025 £ £ - 3,595 - - - - - 185,975 - 9,898 (341,013) 1,850,000 - 9,000 (341,013) 2,058,468 Transfers At 31 March 2024 £ £ - 6,283 - 30,000 - 25,000 - 18,978 - 111,419 - 791,013 - 9,000 - 991,693	Transfers At 31 March 2025 £ £ - 3,595 - - - - - 185,975 - 9,898 (341,013) 1,850,000 - 9,000 (341,013) 2,058,468 Transfers At 31 March 2024 £ £ - 6,283 - 30,000 - 25,000 - 18,978 - 111,419 - 791,013 - 9,000 - 991,693
					991,693

To date we have launched 7 SHiFT Practices in partnership with different local authorities across the country. Each restricted funds covers either 1 Practice or a combination of Practices.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

19 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 General funds Previous year: At 1 General funds	April 2024 £ 743,932 April 2023 £ 631,360	Incoming resources Resources expended £ £ 830,988 (1,474,145) Incoming resources Resources expended £ £ 1,018,408 (905,836)	Transfers At 31 March 2025 £ £ 341,013 441,788 Transfers At 31 March 2024 £ £ - 743,932

The Transfer between funds relates to mobilisation costs which are covered by the DLUHC programme.

20 Analysis of net assets between funds

Unrestricted funds 2025 £ At 31 March 2025: Intangible fixed assets 12,485 Tangible assets 12,228 Current assets/(liabilities) 417,075 441,788 Unrestricted funds 2024 £ At 31 March 2024: Tangible assets 13,512 Current assets/(liabilities) 730,420 743,932	Restricted funds 2025 £ - - 2,058,468 2,058,468 Restricted funds 2024 £ - 991,693 991,693	Total 2025 £ 12,485 12,228 2,475,543
		2,500,256
		Total 2024 £ 13,512 1,722,113
		1,735,625

21 Related party transactions

There were no disclosable related party transactions during the year (2024 - none).

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

22 Cash generated from operations Surplus for the year Adjustments for: Investment income recognised in statement of financial activities Amortisation and impairment of intangible assets Depreciation and impairment of tangible fixed assets Movements in working capital: (Increase) in debtors Increase in creditors (Decrease)/increase in deferred income Cash generated from operations	2025 £ 764,631 (15,135) 2,014 3,647 (181,918) 12,478 - 585,717	2024 £ 893,807 - - 3,799 (5,447) 187,445 1,150,000 2,229,604

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Charity registration number 1191125 (England and Wales)

Company registration number 11928188

SHIFT ORGANISATION LTD

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

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LEGAL AND ADMINISTRATIVE INFORMATION

Trustees	M B Clark
	S Humphreys
	R J Pendry
	R L Cramer
	P V Parkes
	Dr L Roberts
	S Hazzledine
	K Monteith	(Appointed 22 September 2024)
	Dr M P Griffiths	(Appointed 26 September 2024)
Chief executive officer	A Flowers
Charity number (England and Wales)	1191125
Company number	11928188
Registered office	Coram Campus
	41 Brunswisk Square
	London
	United Kingdom
	WC1N 1AZ
Auditor	Sedulo Audit Limited
	Office 605 Albert House
	256 - 260 Old Street
	London
	United Kingdom
	EC1V 9DD
Bankers	Lloyds Bank
	399 Oxford Street
	London
	W1C 2BB

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CONTENTS

	Page
Trustees' report	1 - 13
Statement of trustees' responsibilities	14
Independent auditor's report	15 - 17
Statement of financial activities	18
Balance sheet	19
Statement of cash flows	20
Notes to the financial statements	21 - 32

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TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 MARCH 2025

The trustees present their annual report and financial statements for the year ended 31 March 2025.

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

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 cycles 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 Black, Brown, Mixed Heritage children and young people, and children from Gypsy, Roma and Traveller communities are over-represented within both Youth Justice and the Care System. 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 puts it: “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.

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

FOR THE YEAR ENDED 31 MARCH 2025

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 a ongoing cycle of quality assurance and quality improvement activities, that includes:

• Interviews and focus groups with children and young people.

• Interviews and focus groups with family members of children and young people, and/or professionals from other services who are supporting them.

• The monthly completion and analysis of administrative and practitioner assessment data measuring progress against SHiFT's four outcome domains.

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

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

• To demonstrate the practical viability and effectiveness for improving outcomes for children and families of statutory responsibilities being met by using SHiFT’s Breaking Cycles practice model.

• To evidence substantial savings and costs avoided by public services investing in SHiFT and working differently, using SHiFT’s practice model, with the children and young people in a local area with highest levels of unmet need who have experienced greatest cumulative disadvantage.

• To influence Organisations that host SHiFT Practices in light of the above to sustain their SHiFT Practice, adopting it as business as usual, and to evolve other existing services to grow the influence of SHiFT’s approach to the benefit of a wider group of children and families.

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

FOR THE YEAR ENDED 31 MARCH 2025

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charitable company should undertake.

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 multigenerational 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.

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 destructive cycle of crime and driving wholesale system change in how society perceives and supports the children and young people we work with.

The SHiFT Programme is based on the Breaking Cycles ingredients, devised by Sophie Humphreys OBE, one of SHiFT's Founders, Trustees and the organisation's former Chair. Instead of defining people by issues such as addictions or criminality, applying the Breaking Cycles ingredients practitioners understand that this behaviour often occurs as a result of previous experiences of trauma, neglect, abuse and poor attachment, and practice focuses first on working with each child or young person 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 safe and bright futures.

SHiFT:

• Start with aspiration, and together we set that bar high. We do not define children by their problems or behaviour. Where children have caused harm we support them to take accountability, while also building their self-worth.

• Support children and young people to change their perceptions of themselves and to challenge others’ perceptions of them. We believe in children so that they may believe in themselves.

• Reach children and young people and stay with them wherever they are and wherever they go. We are not constrained by artificial barriers such as age limits, service thresholds or Host Organisation borders.

• Support each child and young person through points of transition from childhood to adulthood, custody to community, from being out of education to getting back to school or work. There is no cliff edge at 18.

• See children and young people as part of families and communities and work with everyone in their world, including especially other professionals, seeking to understand and create sustainable positive change in relationships.

• Work with professionals across boundaries to ensure all children have equal access to consistently high-quality support and services. We support practitioners, managers and funders across agencies and services to ensure local, regional and national systems are purposed and structured to properly meet even the most complex needs.

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

FOR THE YEAR ENDED 31 MARCH 2025

SHiFT uses the Breaking Cycles ingredients to inform all aspects of its systemic, anti-racist, and anti-oppressive practice, which is guided by the following five practice principles:

Practice Principle	What this means
Do the rights thing by the child	Holding the child’s interests uppermost and at the forefront of everything we do, how and whywe do it.
Go for gold	Insisting on exceptional over good; believing that change is possible; taking a hopeful, appreciative, problem-solvingapproach that opens spaces ofpossibility.
Hold and pull for help	Staying alongside the child and family no matter what; knowing when to draw on help when needed but staying accountable to make and drive progress for children and families.
Stay in the complexity	Holding multiple stories and ideas about what might be happening; staying curious and uncertain;takingboth/andpositions.
Step in to step back	Holding clear purpose for everything we’re doing, stepping in and out flexibly as children need but always with the goal of children and families flourishing without the need forprofessional involvement.

SHiFT is scaling high-impact Practices across the UK.

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 community.

A SHiFT Practice typically consists of five SHiFT Guides and a Practice Coordinator. SHiFT Guides are highly skilled practitioners, who have significant experience of working with children and young people who have high levels of unmet need and who have experienced significant cumulative disadvantage. 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 Host Organisations (often Local Authorities) in which they are based, and Partnership Agreements make clear that it is the responsibility of each Host Organisation to ensure that safeguarding risks are being properly managed within their own safeguarding procedures.

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.

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.

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

FOR THE YEAR ENDED 31 MARCH 2025

Significant activities

SHiFT's continued focus during the financial year 2024/25 has been on delivering and evidencing outstanding outcomes for children to support the scale and spread of SHiFT Practices and to strengthen the organisation's credibility and insights to support influencing and systems change.

Work in SHiFT Bexley (which began in September 2022) and SHiFT Manchester (in December 2023) is ongoing, benefitting 52 children and young people.

In Summer 2024, we launched our first two Department for Levelling Up, Housing & Communities (now MHCLG) funded Practices in Middlesbrough and Redcar & Cleveland, benefitting 104 children and young people across the South Tees region with agreed arrangements for at least two SHiFT Programmes across 3-year initial partnerships. The key objectives of these Practices are:

SHiFT Middlesbrough:

1. Safely return children to Middlesbrough, who are currently cared for and placed outside of the area, to live with their families or to live in a suitable setting closer to their family and community.

2. Building trusting professional relationships with children with whom services have previously struggled to engage, but for whom risks are escalating, placing them at a heightened risk of becoming entrenched in criminal activity/exploitation and increased risk of requiring high-cost placements in the future, without intensive support.

SHiFT Redcar & Cleveland will work with children and young people who:

1. Are already at high risk of harm through crime and might be cared for children in high-cost placements.

2. May be coming up through the system and where the indicators suggest they are likely to become involved in crime or harmed in the future.

In Autumn 2024 we launched SHiFT Kingston & Richmond, building on work that was started through SHiFT’s first pilot Practice in 2020. SHiFT Kingston & Richmond is completely self-funded by the Local Authority with two key strategic objectives:

1. Testing systemic ways of working and the Breaking Cycles ingredients in a statutory context.

2. Evidencing Anti-Racist and Anti-Oppressive approaches in our work.

Scoping for the two further Department for Levelling Up, Housing & Communities (now MHCLG) supported Practices in Tendring, Essex and Croydon is underway. This will see new SHiFT Practice launch in Tendring, Essex in the April of 2025 and in Croydon in Autumn 2025.

The national SHiFT team has grown modestly to meet need across our growing number of Practices and their varied geographies, welcoming a Director of Programmes & Policy, a Learning & Insights Lead, an External Affairs & Communications Lead and a Digital Media and Events Coordinator.

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

FOR THE YEAR ENDED 31 MARCH 2025

Achievements and performance

Significant activities and achievements against objectives

Since SHiFT was founded in 2019, we have worked with a total of 229 children and their families, 69 of whom had completed work with SHiFT by April 2024.

Between April 2024 and March 2025, work alongside 160 children, young people and their families took place across six SHiFT Practices – SHiFT Bexley, Kingston and Richmond, Middlesbrough, Redcar and Cleveland, Manchester and Tameside.

Before the end of the 2025 calendar year, SHiFT will welcome an additional 201 children and young people to work with a SHiFT Guide in Essex, Croydon, Middlesbrough, Redcar & Cleveland, Bexley, Manchester and Kingston & Richmond. This means that SHiFT will have reached 430 children and young people by the end of 2025.

The children and young people SHiFT works with are caught in the destructive cycle of crime. They have high levels of unmet need and are among the most vulnerable and cumulatively disadvantaged in the country.

• 89% are boys and 11% girls.

• 37% are Black, Asian or Mixed Heritage.

• Ages when selected for SHiFT range from 11 to 19, with an average age of 15 years old.

When children and young people started to work with their SHiFT Guide:

• 80% had criminal or sexual exploitation concerns.

• 83% were open to Children’s Social Care.

• 39% had a history of domestic abuse.

• 48% had mental health concerns.

In the year prior to SHiFT:

• 82% had been arrested.

• 63% had been reported missing.

• 55% had committed a proven offence.

• 20% had been a victim of serious youth violence.

SHiFT is making substantial positive impacts in the lives of the children and young people it works with, through consistent intensive relational work alongside a highly experienced professional who works with everyone important to a child or young person. Recent analysis of progress data* shows that compared to the year prior to SHiFT:

• Fewer children were arrested, and all Practices saw a decrease in the total number of arrests with a 24% reduction overall.

• The total number of proven offences committed by children has decreased, with a 28% reduction.

• Fewer children were reported missing overall compared to the year prior to SHiFT (23% reduction).

• Children’s Social Care involvement for under 18s has ended for 21 children during their time with SHiFT, demonstrating a reduction of risk and fewer professionals involved in children’s and families’ lives.

*for the 84 children who were working with a Guide as of April 2025 and have been working with SHiFT for at least 11 months

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

FOR THE YEAR ENDED 31 MARCH 2025

Qualitative data also evidence substantial positive impact:

“So I was just in a bad place and [my SHiFT Guide] brought me back to life […] If I didn't choose to keep [my SHiFT Guide], then look where I would've been […] I’d probably be dead or something. Hundred percent.” (Kyle, child/young person, SHiFT Redcar and Cleveland)

“There was a part of me at one point that I felt like I'd lost the [child] that I knew and I'm slowly but surely seeing him come back now going and getting involved with doing the things that he's done with [Guide], like going to the marathon, and the amount of respect that he actually shows her and stuff. That's the old [child] before he was getting all this bother.” (Charlotte, family member/carer, SHiFT Manchester)

“It didn’t feel like I was with someone who was a worker, it just felt like I was with someone I could trust.” (Lee, child/young person, SHiFT Tameside)

Doing the right thing and making ‘the SHiFT difference’ for children, young people and families also realises savings to the public purse. Economic analysis conducted by Cornish & Grey found that for every £1 spent on SHiFT, £8 is saved over five years, and £33 is saved over 20 years. Recent economic analysis related to the Manchester Practice also found that over 12 months, SHiFT has avoided costs of up to £1.07 million by preventing arrests, new offences, and children being accommodated in secure settings or other placements. Similar analysis for SHiFT Middlesbrough at 12 months into Programme evidenced in year cost savings against Budget of £880k and an additional £100k in cost avoidance to the police through reduced arrests and missing episodes.

This evidence gives us confidence that the 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 are in active dialogue with the Ministry of Justice, Department for Culture, Media, and Sport, and Department for Education. We now have the approach, the staff team, experience, strategic relationships and evidence to support accelerated growth towards systems change.

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Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

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

FOR THE YEAR ENDED 31 MARCH 2025

Balanced picture of achievements against objectives set

Having secured grant funding from the Department for Levelling Up, Housing & Communities (now MHCLG), alongside sustained philanthropic support, SHiFT has grown a high performing national team. We are sustaining Practices and mobilising new Practices that are evidenced to be providing outstanding support for children and families and breaking the destructive cycle of crime. As Practices begin to mature, they are making a growing contribution to influencing systems change within and beyond their Host Organisations.

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 more Practices faster, SHiFT Middlesbrough, SHiFT Redcar & Cleveland and SHiFT Kingston & Richmond launched this year and SHiFT Essex and SHiFT Croydon have been scoped, ready for mobilisation and launch in the next financial year. 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 secured funding from the Department for Levelling Up, Housing & Communities (now MHCLG) to support the creation of four new SHiFT Practices, two of which have now launched and which will deliver two 18-month Programmes. An initial threeyear commitment to partnership working between SHiFT and the Host Organisations – rather than just one 18-month programme - provides a more realistic and helpful basis for realising and evidencing the benefits of SHiFT within each local system, including identifying and leveraging opportunities for systems influencing. SHiFT has also continued to enjoy strong philanthropic support, which has enabled the organisation to meet core running costs for the national team.

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. The current national political climate is more stable, albeit with ongoing financial challenges and increasing broader social polarisation, including racism and rioting this year and growing traction of far-right groups in some parts of England.

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Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Financial review

During 2024/25, our principal funding sources were the Department for Levelling Up, Housing & Communities (now MHCLG), along with continued strong support from philanthropic donors, trusts and foundations. Increased levels of Local Authority investment (50% rather than 25%) for new SHiFT Practices, and Violence Reduction Unit investment in Greater Manchester, mean that the proportionate need for philanthropic funds to support our growing activities has reduced somewhat.

Moving forward into 2025/26, our key priority is to continue to scale Practices and to deliver on the grant from the Department for Levelling Up, Housing & Communities (now MHCLG), and thereafter reflect on progress and priorities to shape our next organisational strategy.

Total income for period was £2,816,963 (2024: £2,074,821) and total expenditure was £2,052,332 (2024: £1,181,014).

At the end of the financial year, we held a cash balance of £3,848,691 (2024: £3,264,701).

The costs for each 36-month Programme at a new Practice are approximately £1.2 million. 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 cost of SHiFT's national team (encompassing both staff and non-staff expenditure) has increased in line with Practice growth and is approximately £1,120,000 per year.

Key fundraising needs going forward are:

• Ongoing core costs for the national SHiFT team.

• Funding to support SHiFT’s system change ambitions.

Reserves policy

At the end of March 2025, we held total funds of £2,500,256 (2024: £1,735,625) of which:

• £2,058,468 (2024: £991,693) are restricted funds carried over to the following financial year; and

• £441,788 (2024: £743,932) were unrestricted, of which £0 (2024: £152,500) were assigned to the delivery of Programmes in existing Practices, giving an unrestricted and unassigned balance at the end of March 2025 of £441,788.

The organisation's reserves policy is to ensure that, over and above any funds restricted or assigned 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 £900,000 per annum. As of March 2025, we are operating with approximately six months of free reserves, and within the requirements of our reserves policy.

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Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

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

FOR THE YEAR ENDED 31 MARCH 2025

Principal risks and uncertainties

Risk is carefully identified and managed at all levels of the organisation, with a register of principal risks and activities to mitigate them brought to SHiFT Committees and Board of Trustee meetings. 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 Host Organisation in which they are based, Partnership Agreements make clear that it is the responsibility of each Host Organisation 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 and all national SHiFT staff and Trustees are DBS vetted.

Financial: we are a relatively new charity, relying on, at present, a relatively small number of donors alongside partnership investment from Host Organisations. We have been fortunate to secure funding from the Department for Levelling Up, Housing & Communities, which has meant that we can create four new Practices and use philanthropy to secure extensions across all existing Practices. As we grow the number of Practices, there is also a requirement to grow our national team, to ensure that we are able to provide the level of support needed to each of our existing and new Practices. With this brings additional pressure on our central overheads, which means that we will need to continue to fundraise for this over the coming financial year.

Team recruitment, development and retention: 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 previous 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 Host Organisations, and a significant and sustainable impact of the Programme on our beneficiaries compared with traditional management of young people who are in conflict with the law. With that in mind, we are committed to continued detailed evaluation, building towards external impact evaluation that can evidence causation.

• 10 -

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

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

FOR THE YEAR ENDED 31 MARCH 2025

Plans for future periods

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, so that these achieve stronger and more sustainable outcomes for the children and young people subject to them through their coming into conflict with the law.

Between 2022 and 2025, SHiFT has committed to strengthening its foundations in four key areas:

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

• Launch five new Practices with at least three out of London. New Practices will be targeted in areas of greatest need and where SHiFT can make greatest impact, including by innovating in SHiFT's system entry point and partnership design (e.g. educational partnerships).

• Deepen partnerships with host organisation’s, increasing our existing Practices or launching new Practices.

• Testing the SHiFT model within statutory services.

• Support 125 children through its new and existing Practices.

• Continue to develop an ambitious, creative, inclusive practice and learning model that delivers outstanding outcomes for young people and positive domino effects to transform systems.

2. Compelling evidence and organisational learning

• Develop comprehensive and thoroughly theoretically and empirically evidenced theories of individual, community and system change and outcomes frameworks.

• Implement ongoing robust cycle of qualitative and administrative data collection to understand experiences of SHiFT and enrich practice, including through comparative insights across different Practice contexts.

• Gather evidence of outcomes for young people (including emergent longitudinal impacts) and progress towards system change.

• Develop a strong learning culture, centring on reflective practice, and supported by our governance and learning and development programme, thoroughly integrating learning from evaluation to support practice and organisational development.

3. A community of committed changemakers

• Provide sector-leading learning and development opportunities that develop talent and aspiration within SHiFT and develop relationships and share opportunities within our networks.

• Build strategic partnerships with organisations that share our vision for young people and system change.

• Leverage SHiFT's convening power - hosting events and activities that bring together people across policy, practice, research to share their insights and perspectives and influence through collaboration towards a shared vision.

• Develop opportunities for young people with lived experience of SHiFT to use their voice and experiences to influence and contribute, both within and beyond SHiFT.

4. New public conversation

• Committed engagement in relevant commissions, enquiries and calls for evidence.

• High impact, and creative communication of SHiFT's work, including proactive engagement with the media.

• Learning and development opportunities that are open to public.

Structure, governance and management

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.

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Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

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

FOR THE YEAR ENDED 31 MARCH 2025

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

M B Clark S Humphreys R J Pendry R L Cramer P V Parkes Dr L Roberts S Hazzledine K Monteith (Appointed 22 September 2024) Dr M P Griffiths (Appointed 26 September 2024) J Macalister (Resigned 23 May 2024)

Recruitment and appointment of trustees

SHiFT's four Founders (Sophie Humphreys OBE, Josh MacAlister OBE, 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.

Following another review of skills, knowledge, professional backgrounds and diversity, and Joe Calouri stepping down due to commitments of a new role, two new Trustees (Dr Luke Roberts and Sarah Hazzeldine) joined the Board in January 2024.

Josh MacAlister stepped down as Chair in February 2024 to focus on his campaign to become an MP, which led to Pam Parkes stepping in as Chair until the Autumn of 2024. In Autumn 2024, the recruitment process for a new Chair concluded and Dr Martin Grifiths was appointed as the new Chair of the Board of Trustees, joined by Keir Monteith KC as a new Trustee.

Organisational structure

We have a small, national team comprising 12 staff. Our central team supports each Host Organisation to create a SHiFT Practice, mobilise the Programme, recruit and train the staff, provide ongoing development and support for operationalising the SHiFT Framework and quality assuring and improving practice, evaluating activities, developing strategic relationships and partners, hosting events and communicating SHiFT’s work to a wide range of audiences, as well as fundraising and management/ governance of the charity.

SHiFT Bexley, SHiFT Manchester, SHiFT Middlesbrough and SHiFT Redcar & Cleveland all have six staff, comprising one Lead Guide, four Guides and one Practice Coordinator. SHiFT Kingston & Richmond has seven staff, comprising one Team Manager, one Lead Guide, four Guides and one Practice Coordinator. All Practice staff are employed by the Host Organisation (typically, the Local Authority that is partnering with SHiFT).

SHiFT’s 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 the Local SHiFT Management Board. Members of the national SHiFT team are standing members of all Local SHiFT Boards. 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 SHiFT Board of Trustees: Finance Committee (chaired by Trustee Michael Clark), Practice Committee (chaired by Trustee Rasheed Pendry), and Research & Evaluation Committee (chaired by Trustee Dr Luke Roberts). All Committees involve a combination of Trustees and some include external, co-opted representation.

• 12 -

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

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

FOR THE YEAR ENDED 31 MARCH 2025

Induction and training of trustees

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

• SHiFT's vision, mission, values and strategic aims

• Previous annual reports, risk register and current year budget

• Guidance on the role of a trustee, the Charity Governance Code and available Charity Commission good practice guidance

• Background research and literature relevant to SHiFT's work

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.

Remuneration policy

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.

Auditor

In accordance with the company's articles, at the November 2025 AGM a decision will be made on which auditor will be appointed.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

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

.............................. Dr M P Griffiths Trustee

Date: 18[th] December 2025

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Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2025

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

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

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

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP (FRS102);

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

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

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Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF SHIFT ORGANISATION LTD

Opinion

We have audited the financial statements of Shift Organisation Ltd (the ‘charitable company’) for the year ended 31 March 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including 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).

In our opinion, the financial statements:

• give a true and fair view of the state of the charitable company's affairs as at 31 March 2025 and of its incoming resources and application of resources including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

• The information given in the Trustees’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• The Trustees’ Annual Report has been prepared in accordance with applicable legal requirements.

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Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF SHIFT ORGANISATION LTD

Matters on which we are required to report by exception

In light of our knowledge and understanding of the charitable company and its environment obtained in the course of our audit, we have not identified material misstatements in the Trustees’ Annual Report.

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

• the information given in the financial statements is inconsistent in any material respect with the Trustees' Annual Report; or

• sufficient accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charitable company for the purpose of company law, 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 charitable company’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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The primary responsibility for the prevention and detection of fraud rested with Trustees and management, and we cannot be expected to detect non-compliance with all laws and regulations.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements form our knowledge of the organisation and sector, enquiries of Trustees and management, and review of regulatory information and correspondence.

We communicated identified laws and regulations throughout the audit team and remained alert to any indications of noncompliance throughout the audit.

We discussed with trustees and management the policies and procedures in place to ensure compliance with laws and regulations and otherwise prevent, deter and detect fraud.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations identified as potentially having a material effect on the financial statements.

Our procedures included review of financial statement information and testing of that information, enquiry of management and examination of relevant documentation, analytical procedures to identify unusual or unexpected relations that may indicate fraud, and procedures to address the risk of fraud through trustee or management override of controls.

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Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF SHIFT ORGANISATION LTD

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/ auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Ross Preston CA (Senior Statutory Auditor)

For and on behalf of Sedulo Audit Limited, Statutory Auditor Chartered Accountants Office 605 Albert House 256 - 260 Old Street London EC1V 9DD United Kingdom

Date: 18[th] December 2025

Sedulo Audit Limited is eligible for appointment as auditor of the charitable company by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

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Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2025

Unrestricted funds 2025 Notes £ Income from: Donations and legacies 3 665,853 Charitable activities 4 150,000 Investments 5 15,135 Total income 830,988 Expenditure on: Charitable activities 6 1,474,145 Total expenditure 1,474,145 Net income/(expenditure) (643,157) Transfers between funds 341,013 Net movement in funds 8 (302,144) Reconciliation of funds: Fund balances at 1 April 2024 743,932 Fund balances at 31 March 2025 441,788	Restricted funds 2025 £ 1,985,975 - - 1,985,975 578,187 578,187 1,407,788 (341,013) 1,066,775 991,693 2,058,468	Total Unrestricted funds 2025 2024 £ £ 2,651,828 988,408 150,000 30,000 15,135 - 2,816,963 1,018,408 2,052,332 905,836 2,052,332 905,836 764,631 112,572 - - 764,631 112,572 1,735,625 631,360 2,500,256 743,932	Restricted funds 2024 £ 1,056,413 - - 1,056,413 275,178 275,178 781,235 - 781,235 210,458 991,693	Total 2024 £ 2,044,821 30,000 -
				2,074,821 1,181,014
				1,181,014
				893,807 -
				893,807 841,818
				1,735,625

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 21 to 32 form part of these financial statements.

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Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

BALANCE SHEET

AS AT 31 MARCH 2025

2025 Notes £ Fixed assets Intangible assets 12 Tangible assets 13 Current assets Debtors 14 191,643 Cash at bank and in hand 3,848,691 4,040,334 Creditors: amounts falling due within one year 15 (1,564,791) Net current assets Total assets less current liabilities The funds of the charitable company Restricted income funds 18 Unrestricted funds 19	2024 £ £ 12,485 12,228 24,713 9,725 3,264,701 3,274,426 (1,552,313) 2,475,543 2,500,256 2,058,468 441,788 2,500,256	£ - 13,512
		13,512 1,722,113
		1,735,625
		991,693 743,932
		1,735,625

The notes on pages 21 to 32 form part of these financial statements.

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2025, although an audit has been carried out under section 144 of the Charities Act 2011.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.

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

The financial statements were approved by the trustees on 18[th] December 2025.

.............................. Dr M P Griffiths Trustee

Company registration number 11928188 (England and Wales)

• 19 -

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2025

Notes Cash flows from operating activities Cash generated from operations 22 Investing activities Purchase of intangible assets Purchase of tangible fixed assets Investment income received Net cash used in investing activities Net cash generated from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year	2025 £ (14,499) (2,363) 15,135	£ 585,717 (1,727) - 583,990 3,264,701 3,848,691	2024 £ - (8,302) -	£ 2,229,604 (8,302) - 2,221,302 1,043,399 3,264,701

The notes on pages 21 to 32 form part of these financial statements.

• 20 -

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

Charity information

Shift Organisation Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is Coram Campus, 41 Brunswisk Square, London, WC1N 1AZ, United Kingdom.

1.1 Basis of preparation

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

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

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

1.2 Going concern

In making their assessment in relation to going concern, the Trustees have reviewed budgets and forecasts which cover a period of greater than twelve months into the future from the date of approval of these financial statements.

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

1.3 Charitable funds

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

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

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

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

Income from team fees are recognised in the period to which they relate.

Interest income is recognised in the accounts when receivable.

• 21 -

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

(Continued)

1.5 Expenditure

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

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

1.6 Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

Website Over 3 years

1.7 Tangible fixed assets

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

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

Computers 20% straight line

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

1.8 Impairment of fixed assets

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

1.9 Cash and cash equivalents

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

• 22 -

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

(Continued)

1.10 Financial instruments

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

Financial instruments are recognised in the charitable company's balance sheet when the charitable 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 include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charitable company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

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

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

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

Derecognition of financial liabilities

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

1.11 Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

• 23 -

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

(Continued)

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

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

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

There are no material judgements made or critical estimates entailing a high degree of complexity,

3 Income from donations and legacies

Unrestricted funds 2025 £ Donations and gifts 6,853 Government grants - Trusts and foundations 659,000 665,853	Restricted funds 2025 £ - 1,800,000 185,975 1,985,975	Total Unrestricted funds 2025 2024 £ £ 6,853 200,108 1,800,000 - 844,975 788,300 2,651,828 988,408	Restricted funds 2024 £ 150,000 791,013 115,400 1,056,413	Total 2024 £ 350,108 791,013 903,700
				2,044,821

4 Income from charitable activities

Practices Team fees

Unrestricted	Unrestricted
funds	funds
2025	2024
£	£
150,000	30,000

• 24 -

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

5	Income from investments
		Unrestricted	Unrestricted
		funds	funds
		2025	2024
		£	£
	Interest receivable	15,135	-
6	Expenditure on charitable activities
		Practices	Practices
		2025	2024
		£	£
	Direct costs
	Staff costs	465,649	254,545
	Payments to Practices	782,021	457,681
	Team training	147,042	20,886
		1,394,712	733,112
	Share of support and governance costs (see note 7)
	Support	632,857	430,741
	Governance	24,763	17,161
		2,052,332	1,181,014
	Analysis by fund
	Unrestricted funds	1,474,145	905,836
	Restricted funds	578,187	275,178
		2,052,332	1,181,014

• 25 -

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

7 Support costs allocated to activities

Staff costs Depreciation Operating lease charges Office costs Insurance Telephone IT and website Consultancy HR, recruitment and training Bank charges Subscriptions Travel costs Governance costs Analysed between: Practices Governance costs comprise: Audit fees Accountancy Legal and professional 8 Net movement in funds The net movement in funds is stated after charging/(crediting): Fees payable for the audit of the charity's financial statements Depreciation of owned tangible fixed assets Amortisation of intangible assets Operating lease charges	2025 £ 204,634 5,661 18,902 10,083 3,821 3,554 3,925 271,809 29,563 252 5,960 74,693 24,763 657,620 657,620 2025 £ 13,860 10,868 35 24,763 2025 £ 13,860 3,647 2,014 18,902	2024 £ 185,867 3,799 18,005 4,697 3,581 776 1,932 143,220 25,336 222 2,437 40,869 17,161
		447,902
		447,902
		2024 £ 13,200 3,913 48
		17,161
		2024 £ 13,200 3,799 - 18,005

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charitable company during the current and previous year.

• 26 -

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

10 Employees

The average monthly number of employees during the year was:

Employment costs Wages and salaries Social security costs Other pension costs	2025 Number 12 2025 £ 588,273 61,118 20,892 670,283	2024 Number 9
		2024 £ 386,597 38,738 15,077
		440,412

During the year, the charity paid £Nil (2023: £20,500) in respect of severance pay to 1 member of staff.

The number of employees whose annual remuneration was more than £60,000 is as follows:

follows:
		2025	2024
		Number	Number
£60,001	- £70,000	1	-
£70,001	- £80,000	1	1
£80,001	- £90,000	-	1
£90,001	- £100,000	1	-

Remuneration of key management personnel

Key Management Personnel are considered to be the Chief Executive Officer, the Chief Operating Officer and the Head of Practice. The remuneration of key management personnel was as follows:

	2025	2024
	£	£
Aggregate compensation	280,581	221,769

11 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

• 27 -

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

12	Intangible fixed assets
		Website
		£
	Cost
	At 1 April 2024	-
	Additions	14,499
	At 31 March 2025	14,499
	Amortisation and impairment
	At 1 April 2024	-
	Amortisation charged for the year	2,014
	At 31 March 2025	2,014
	Carrying amount
	At 31 March 2025	12,485
	At 31 March 2024	-
13	Tangible fixed assets
		Computers
		£
	Cost
	At 1 April 2024	24,862
	Additions	2,363
	At 31 March 2025	27,225
	Depreciation and impairment
	At 1 April 2024	11,350
	Depreciation charged in the year	3,647
	At 31 March 2025	14,997
	Carrying amount
	At 31 March 2025	12,228
	At 31 March 2024	13,512

• 28 -

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

14 Debtors Amounts falling due within one year: Trade debtors Other debtors Prepayments and accrued income	2025 £ 107,975 50,000 33,668 191,643	2024 £ - - 9,725
		9,725

15 Creditors: amounts falling due within one year

Notes Other taxation and social security Deferred income 16 Trade creditors Other creditors Accruals Deferred income Arising from Deferred grant income	2025 £ 25,785 1,350,000 135,156 4,123 49,727 1,564,791 2025 £ 1,350,000	2024 £ 20,870 1,350,000 73,804 3,366 104,273
		1,552,313
		2024 £ 1,350,000

16 Deferred income

Arising from Deferred grant income

Deferred income relates to amounts received from grants which relate to projects commencing in the next financial year and therefore, not entitled to at the year end.

Deferred income is included in the financial statements as follows:

2025 £ Deferred income is included within: Current liabilities 1,350,000 Movements in the year: Deferred income at 1 April 2024 1,350,000 Released from previous periods (1,350,000) Resources deferred in the year 1,350,000 Deferred income at 31 March 2025 1,350,000	2024 £ 1,350,000
	200,000 (200,000) 1,350,000
	1,350,000

• 29 -

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

17	Retirement benefit schemes
		2025	2024
	Defined contribution schemes	£	£
	Charge to statement of financial activities in respect of defined contribution schemes	20,892	15,077

The charitable company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charitable company in an independently administered fund.

18 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At 1 Awards for All Dulverton Rayne Foundation Bruno Schroder Trust Fidelity UK Foundation Department for Levelling Up, Housing and Communities Million Hours Fund Previous year: At 1 Awards for All Dulverton Rayne Foundation Bruno Schroder Trust Fidelity UK Foundation Department for Levelling Up, Housing and Communities Million Hours Fund	April 2024 £ 6,283 30,000 25,000 18,978 111,419 791,013 9,000 991,693 April 2023 £ 6,517 30,000 3,744 100,000 70,197 - - 210,458	Incoming resources £ - - - 185,975 - 1,800,000 - 1,985,975 Incoming resources £ - - 25,000 150,000 81,400 791,013 9,000 1,056,413	Resources expended £ (2,688) (30,000) (25,000) (18,978) (101,521) (400,000) - (578,187) Resources expended £ (234) - (3,744) (231,022) (40,178) - - (275,178)	Transfers At 31 March 2025 £ £ - 3,595 - - - - - 185,975 - 9,898 (341,013) 1,850,000 - 9,000 (341,013) 2,058,468 Transfers At 31 March 2024 £ £ - 6,283 - 30,000 - 25,000 - 18,978 - 111,419 - 791,013 - 9,000 - 991,693	Transfers At 31 March 2025 £ £ - 3,595 - - - - - 185,975 - 9,898 (341,013) 1,850,000 - 9,000 (341,013) 2,058,468 Transfers At 31 March 2024 £ £ - 6,283 - 30,000 - 25,000 - 18,978 - 111,419 - 791,013 - 9,000 - 991,693
					991,693

To date we have launched 7 SHiFT Practices in partnership with different local authorities across the country. Each restricted funds covers either 1 Practice or a combination of Practices.

• 30 -

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

19 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 General funds Previous year: At 1 General funds	April 2024 £ 743,932 April 2023 £ 631,360	Incoming resources Resources expended £ £ 830,988 (1,474,145) Incoming resources Resources expended £ £ 1,018,408 (905,836)	Transfers At 31 March 2025 £ £ 341,013 441,788 Transfers At 31 March 2024 £ £ - 743,932

The Transfer between funds relates to mobilisation costs which are covered by the DLUHC programme.

20 Analysis of net assets between funds

Unrestricted funds 2025 £ At 31 March 2025: Intangible fixed assets 12,485 Tangible assets 12,228 Current assets/(liabilities) 417,075 441,788 Unrestricted funds 2024 £ At 31 March 2024: Tangible assets 13,512 Current assets/(liabilities) 730,420 743,932	Restricted funds 2025 £ - - 2,058,468 2,058,468 Restricted funds 2024 £ - 991,693 991,693	Total 2025 £ 12,485 12,228 2,475,543
		2,500,256
		Total 2024 £ 13,512 1,722,113
		1,735,625

21 Related party transactions

There were no disclosable related party transactions during the year (2024 - none).

• 31 -

Docusign Envelope ID: 751BB249-DA6B-481F-B927-CD1004D6EF05

SHIFT ORGANISATION LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

22 Cash generated from operations Surplus for the year Adjustments for: Investment income recognised in statement of financial activities Amortisation and impairment of intangible assets Depreciation and impairment of tangible fixed assets Movements in working capital: (Increase) in debtors Increase in creditors (Decrease)/increase in deferred income Cash generated from operations	2025 £ 764,631 (15,135) 2,014 3,647 (181,918) 12,478 - 585,717	2024 £ 893,807 - - 3,799 (5,447) 187,445 1,150,000 2,229,604

• 32 -

Audit findings

Shift Organisation Ltd (‘SHiFT’) Audit Findings Report

Year ended 31 March 2025

C O M M E R C I A L I N C O N F I D E N C E

Ross Preston

Engagement Lead

T 0333 222 4445 E [e-mail]

Dave Wallis

Senior Audit Manager

T 0333 222 4445 E

Sedulo

MANCHESTER | LEEDS | LIVERPOOL LONDON | BIRMINGHAM

Shift Organisation Ltd (‘SHiFT’) Coram Campus 41 Brunswick Square London WC1N 1AZ

T 0333 222 4445 www.sedulo.co.uk

Dear Trustees and Management,

Audit Findings Report for SHiFT for the year ended 31 March 2025.

As auditor we were responsible for performing an audit of the financial statements of SHiFT for the year ended 31 March 2025, in accordance with International Standards on Auditing (ISAs) (UK), which was directed towards forming and expressing an opinion on the financial statements that have been prepared by management with the oversight of those charged with governance. The audit of the financial statements does not relieve management or those charged with governance of their responsibilities for the preparation of financial statements which give a true and fair view.

This Audit Findings Report sets out the status of our audit and our findings to date, as required by ISA (UK) 260. Its contents have been discussed with SHiFT’s management and members of the Board of Trustees. We have issued this report prior to approval of the financial statements; it presents our observations arising from the audit that are significant and relevant to the responsibility of those charged with governance to oversee the financial reporting process. In this report we have communicated any deficiencies in internal control identified during the audit to those charged with governance, and have set out other relevant findings as required by ISA (UK) 260, including misstatements identified during the audit.

The contents of this report relate only to the matters which have come to our attention, which we believe need to be reported to you as part of our audit completion process. It is not a comprehensive record of all the relevant matters and may be subject to change up to the date of signature of our independent auditor’s report. In particular, we cannot be held responsible to you for reporting all of the risks which may affect your business or all weaknesses in your internal controls. This report has been prepared solely for your benefit and should not be quoted or copied in whole or in part without our prior written consent. We do not accept any responsibility for any loss occasioned to any third party acting, or refraining from acting on the basis of the content of this report, as this report was not prepared for, nor intended for, any other purpose.

We’d like to take this opportunity to thank all of SHiFT’s management team who assisted with the provision of deliverables and response to our queries, that were necessary to complete our audit work. Notably, we express our gratitude to the hard work and dedication of Rebecca Tankard.

Ross Preston CA Audit Responsible Individual

Sedulo.co.uk

1

Observations in respect of significant risks.

Significant risk	Commentary
The revenue cycle	Total income, for the year ended 31 March 2025: £2,816,963(2024: £2,074,821).
includes fraudulent transactions.	Sedulo has performed substantive procedures to address the risks surrounding revenue recognition for each of the revenue streams.
	Fraud – Ensured revenue transactions had the correct supporting documents to verify they are bona fide transactions and
Under ISA (UK) 240	not indicative of fraud.
there is a rebuttable presumed risk that revenue may be misstated due to the improper recognition	Income recognition – We have reviewed the income recognition policies for reasonableness, consistency with the prior period and compliance with FRS102 and principles of the Charities SORP. We discussed and documented income procedures with management to aid our understanding of the procedures in place. We also performed walkthroughs over income cycles to test the design effectiveness of controls relevant to the audit.
of revenue.	We performed tests of detail on the revenue population across the various revenue streams which included:

• Substantive testing on a sample basis on each of the main revenue streams:

• Trusts and foundations

• Government grants

• Individual donations

• Team fees.

• Review of any items identified as large or unusual within income.

Conclusion

Following the work performed, no issues were noted and therefore no indication of material misstatement. Reasonable assurance obtained from work performed.

2

Observations in respect of significant risks.

Significant risk

• Management We note that this risk is pervasive to the financial statements and as such we have not identified specific accounts or override of financial statement line items, rather all transactions in the ledger are considered to carry the risk of management controls. override. As part of our response to the significant risk, the engagement team performed the following:  We performed an assessment of key estimates and judgements made by management, understanding which carried

• Under ISA (UK) 240 risks of potential misstatement. We assessed these key items and the level of complexity and management judgement there is a rebuttable involved, testing the assumptions made and the reasonableness of these. 

• presumed risk that We discussed with management and documented a comprehensive assessment of the process for posting transactions management has to the ledger, understanding authorisations, frequency and access rights. To test the design effectiveness of controls the ability to relevant to the process, the audit team performed a walkthrough of a transaction in the period and agreed the posting override controls. to supporting documentation. Utilisation of Inflo Detect to identify postings to the ledger in the period that are considered to carry an element of risk through defined characteristics. These characteristics were assessed by the audit team based on our journals process understanding and walkthrough and given an assigned risk. We also assessed the inherent risk of the business by identifying external and internal factors that were pervasive to the business. These “high-risk” transactions were extracted and tested by the audit team, who agreed to supporting documentation to:

• Understand the reason for the entry and if this was in line with the normal course of charity’s business

• Ensure that the transaction posted was accurate, could be traced to the supporting documentation and was correctly classified

• Assess if there were any control of process issues identified from the posting of the journal and if these could have a wider impact on the transaction process.

Conclusion

From the above procedures performed, we identified no issues with items tested and reviewed and have gained reasonable assurance over the risk of management override of controls.

3

Observations in respect of going concern.

Description

Going concern is a fundamental accounting concept that underpins the preparation of the financial statements. Under the going concern concept, it is assumed that an entity will continue in operation and that there is neither the intention nor the need to liquidate the entity.

The Trustees/ Directors have a responsibility to assess the completeness and adequacy of the going concern disclosures in the financial statements.

Management have prepared forecasts covering a period in excess of the going concern period (up to 2029/30).

Work commentary

We have:

• Reviewed the procedures adopted by management and directors in their consideration of the appropriateness of the going concern basis.

• Obtained management’s assessment of the going concern status including financial forecasts and management accounts for at least 12 months following approval of the financial statements.

• Compared these forecasts in line with our understanding of the entity and challenged management with regards to the assumptions made within these and ensure that any strategic plans have been considered and included in the forecasts.

• Gained an understanding of the future strategy released by Shift and consider whether key aspects of this strategy have been incorporated into the forecasts and management accounts.

• Reviewed the funding requirements and confirm sufficient resources are in place to cover cash flow requirements during the going concern assessment period.

• Reviewed the disclosures made in the financial statements in respect of going concern and the inherent risks and consider whether these disclosures are adequate and meet the disclosure requirements.

Conclusion

From the work performed, no issues have been identified with the current forecasts or assessment relating to going concern. In addition, appropriate disclosures are included in the final accounts.

4

Observations in respect of other areas of focus.

Area of focus	Commentary
Trustees’	We obtained management’s workings and supporting information behind the note in the financial statements. We tested
remuneration &	individuals disclosed by agreeing amounts through to payroll or other appropriate supporting information to confirm
expenses, and staff	disclosures are accurate. We compared the disclosures with the requirements of the standards to ensure all necessary
costs disclosures	disclosures have been made.

Conclusion

We noted no issues in the performance of the above procedures, and review of the associated disclosures in the staff costs note in the financial statements. Reasonable assurance obtained from work performed.

Restricted vs.	We reviewed the systems and processes in place supporting the preparation of fund disclosures. We performed tests of
unrestricted fund	detail of a sample of expenses to ensure allocation is correct and appropriate. We obtained management’s workings and
activity &	supporting information behind the note in the financial statements. We tested the information included in the disclosure
presentation	through to supporting schedules and work performed elsewhere. We discussed any judgements made by management in
	preparing the disclosure and determine whether these are appropriate and in line with other information obtained as part
	of the audit.

Conclusion

We noted no issues in the performance of the above procedures, and review of funds related presentation and disclosure in the financial statements. Reasonable assurance obtained from work performed.

5

Other matters.

	Issue	Commentary
1	Matters in relation to fraud	We have not been made aware of any suspected or actual fraud committed or any areas of the
		charity where it could likely be committed.
2	Matters in relation to related	We are not aware of any related party transactions which have not been disclosed.
	parties
3	Matters in relation to laws and	We have not been made aware of any matters that would impact the audit or charity in relation
	regulations	to laws and regulations.
4	Written representations	Representations have been drafted for the Trustees to make to us.
5	Confirmation requests from third	We requested third party confirmation in respect of SHiFT’s Flagstone accounts.
	parties	We observed via live screen-share of the charity’s online banking, SHiFT’s current account bank
		balances.
6	Disclosures	Our review of the financial statements has not led to any major issues of non-disclosure or
		inconsistency.
7	Audit evidence and explanations	All information and explanations received have been satisfactory.

6

Internal controls.

We noted the following observations and recommendation relating to internal control during our audit work. These have been shared with management.

We’ve allocated a priority rating to each point (High, Medium, Low), with High indicating a significant deficiency warranting relatively urgent attention, and Medium and Low indicating other deficiencies to be considered or attended to in the near future.

Observation & Implication

Recommendation & Management Comment

• 1 Journals Review & Authorisation (Medium)

We noted there was no process for the formal review and approval of journals posted to the accounting system. We also note that these were relatively few in number each month and related to routine items for example accruals, prepayments etc.

Without evidence and an audit trail around journal review and approval, there could be perceived to be a greater risk in respect of journal accuracy and management override of controls.

Recommendation:

That SHiFT considers implementing a process whereby a second senior individual (perhaps a Trustee) evidences their review of journals posted to the accounting system each month.

Management Comment:

Shift acknowledges that the segregation of duties for the posting of journals is best practice however, within a small organisation like Shift it is not practical due to the low number of journals posted through the year. Shift does have mitigating controls in place where the monthly accounts reporting pack is reviewed by COO as well as periodically by the Treasurer.

• 2 Overpayment of £50k to Redcar & Cleveland Council (Medium/ Advisory)

We note there was an over-payment of £50k to Redcar & Cleveland City Council in respect of the financial year ended 31 March 2025 (a total of £250k was paid instead of £200k), with the £50k overpayment sitting as a debtor on the balance sheet at 31 March 2025.

We note that this issue in part arose due to a lack of clarity around the sums due and respective timeframes in the partner agreements.

The charity paid a £50k sum to Redcar & Cleveland Council earlier than was intended.

Recommendation:

That care is taken to ensure the correct sums are paid to beneficiaries and partners at the correct point in time, and clarity is achieved with respect to these arrangements in partner agreements.

Management Comment:

Shift recognises the requirement to ensure clearer wording is provided around billing amounts and intervals within agreements with partners.

• 3 Donor Documentation – IHY Foundation (Low/ Advisory)

We noted there was a lack of formal written documentation to support the income received from the IHY Foundation.

Without written terms surrounding this income stream, there could be a lack of clarity around the income recognition/ accounting adopted.

Recommendation:

That written documentation is obtained and kept on file, to support all material voluntary income arrangements with donors.

Management Comment: Noted.

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Misstatements.

Adjusted Misstatements.

The below adjustments were identified during the audit work which have been processed through the financial statements having been agreed with management.

Trustees will confirm via the letter of representation their agreement to the below adjustments.

		Statement of financial activities	Statement of financial activities	Balance	sheet
						‘Bottom line’
	Detail	Debit	Credit	Debit	Credit	effect
1	Dr Expenditure	£31,667
	Cr Accruals Being an accrual of the final two months’ worth of expenditure				(£31,667)	(£31,667)
	payable in relation to Practice 5, Manchester Council activity.
2	Dr Expenditure	£660
	Cr Accruals				(£660)	(£660)
	Being a correction to the audit fee accrual.

Unadjusted Misstatements.

There were no misstatements identified which have been left as unadjusted on the grounds of materiality.

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Independence and ethics.

The FRC’s Ethical Standard and ISA (UK) 260 require us to give you timely disclosure of all significant facts and matters that may bear upon the integrity, objectivity and independence of the firm or covered persons, relating to our independence. We encourage you to contact us to discuss these or any other independence issues with us.

We have complied the Financial reporting Council’s Ethical Standards and as we as a firm, and each covered person, confirm that we are independent and are able to express an objective option on the financial statements.

We discuss with you if we make additional significant judgements surrounding independence matters, in the case this may occur. We confirm that there are no significant facts or matters that impact our independence as auditors that we are required, or wish to draw to your attention. Please see detail overleaf of non-audit services provided which do not give rise to any significant threat to our objectivity or independence, through the implantation of appropriate safeguards including the use of separate teams within Sedulo (for the accounts preparation and audit).

For the purposes of our audit, we have made enquiries with of Sedulo Group teams to identify any providing services to Shift Organisation Ltd (see overleaf). We continue to review this through use of our internal systems, which prevent any non-audit services being performed without the knowledge of the Engagement Lead. The audit team have appropriately documented their considerations in respect of independence.

We consult our central Ethics department for further consideration if there is uncertainty or if levels of non-audit fees surpass the audit fee (which is not relevant in this case).

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Fees and non-audit services.

The table below sets out the total fees for audit and non-audit services charged from the beginning of the financial year to date, as well as the threats to our independence and safeguards have been applied to mitigate these threats.

	Fees £	Threat identified	Safeguards
		N/A	N/A
Audit Fees	11,550
Year end accounts fees	3,500	Self-review, Self-interest, Management	Aggregate for non-audit fees deemed reasonable per FRC
Payroll	250		guidance. Audit and non-audit engagement team are separate. Correspondence with management has been documented.
Corporation tax fees	375
Total non-audit services	4,125

• The above non-audit services are consistent with the group’s policy on the allotment of non-audit work to your auditor including where the services are provided by Sedulo Audit Limited.

• None of the above services were provided on a contingent fee basis.

• The table summarises all non-audit services which were identified. We have adequate safeguards in place to mitigate the perceived self-interest threat from these fees.

• The fees reconcile to the financial statements.

This covers all services provided by us and our network to the group/company, its directors and senior management and its affiliates, and other services provided to other known connected parties that may reasonably be thought to bear on our integrity, objectivity or independence. (ES 1.69)

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Communication of audit matters with those charged with governance.

	Audit	Audit
Our communication plan	Plan	Findings
Respective responsibilities of auditor and management/those charged with governance			ISA (UK) 260, as well as other ISAs (UK), prescribe
			matters which we are
Overview of the planned scope and timing of the audit, form, timing and expected general content of			required to communicate
communications including significant risks and Key Audit Matters			with those charged with
			governance, and which we
Confirmation of independence and objectivity of the firm, the engagement team members and all other			set out in the table here.
indirectly covered persons
A statement that we have complied with relevant ethical requirements regarding independence. Relationships
and other matters which might be thought to bear on independence.
Details of non-audit work performed by the Sedulo Group, together with fees charged. Details of safeguards
applied to threats to independence
Significant matters in relation to going concern
Matters in relation to the group audit, including:
Scope of work on components, involvement of group auditors in component audits, concerns over quality
of component auditors' work, limitations of scope on the group audit, fraud or suspected fraud
Views about the qualitative aspects of the Group’s accounting and financial reporting practices including
accounting policies, accounting estimates and financial statement disclosures
Significant findings from the audit
Significant matters and issue arising during the audit and written representations that have been
sought
Significant difficulties encountered during the audit
Significant deficiencies in internal control identified during the audit
Significant matters arising in connection with related parties
Identification or suspicion of fraud involving management and/or which results in material misstatement of
the financial statements
Non-compliance with laws and regulations
Unadjusted misstatements and material disclosure omissions
Expected modifications to the auditor's report, or emphasis of matter

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Sector developments – Introduction of Charities SORP 2026.

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