**Company number: 1402692** **Charity number: 276669** **Impact Initiatives (A company limited by guarantee) Annual Report and Financial Statements – 31 March 2021** **IMPACT INITIATIVES (Limited by Guarantee)** ## **Financial Statements – 31 March 2021** ## **CONTENTS** ||Page| |---|---| |Reference and Administrative Details|1| |Trustees’ Report|2| |Statement of Trustees’ Responsibilities|11| |Independent Auditors’ Report|13| |Statement of Financial Activities|16| |Balance Sheet|17| |Statement of Cash Flows|18| |Notes to the Financial Statements|19-32| ## **REFERENCE AND ADMINISTRATIVE DETAILS** ||| |---|---| ||| |TRUSTEES|Neil Moscrop (Chair)
Amanda Mortensen
Cathy Bunker
Joseph Miller
Leo Jago| ||Simon Knight DL| ||Ron Jenkins| ||| |CHIEF EXECUTIVE OFFICER|Caroline Ridley| ||| |COMPANYSECRETARY|Emily Squires| ||| |REGISTERED OFFICE|19 Queens Road| ||Brighton| ||BN1 3XA| ||| |STATUTORY AUDITORS|TC Group| ||The Courtyard
Shoreham Road
Upper Beeding
Steyning
West Sussex
BN44 3TN| |SOLICITORS|Coffin Mew| ||11 Prince Albert Street
Brighton
BN1 1HE| ||| ||| |MAIN BANKERS|Bank of Scotland| ||First Floor| ||8 Lochside Avenue| ||Edinburgh| ||EH12 9DJ| ||| |CHARITY NUMBER|276669| ||| |COMPANY NUMBER|1402692| 1 **IMPACT INITIATIVES (Limited By Guarantee)** ## **Trustees Report For the Year Ended 31 March 2021** The trustees are pleased to present their annual report together with the financial statements of the charity for the year ending 31 March 2021 which are also prepared to meet the requirement for a directors’ report and accounts for Companies Act purposes. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015). ## **CHAIR’S REPORT** Impact Initiatives was set up 43 years ago as an innovative initiative through Brighton Free Church. A partnership that included other churches was developed in the area, all of which wanted to support local people in need and knew this could be most effectively done through pooling resources and skills. The original remit of ‘filling the gaps in statutory services’ is as relevant today as it has always been. Today Impact Initiatives manages services in Sussex for all ages; the services are all designed to bring people the support they need to live healthy and fulfilling lives through providing the right people at the right time, and through leading collaborative working to create and deliver services. Our vision is for Sussex people of all ages to reach their potential whilst living healthy and fulfilling lives The current services cover two overarching strategic work areas: - Children and Young People - Adults and Older People This year has been an unprecedented year in which our services have all been disrupted through the Coronavirus pandemic whilst being needed more than ever. We worked with over 3,000 people, which is a decrease on last year. This is due to Coronavirus preventing our larger events from going ahead, including the Ageing Well Festival. Also, our cafes and some activities were not able to be open as they would pre-pandemic. We were supported by over 60 volunteers who donated more than 2,000 hours, working between 1-30 hours per week. Again, this figure is unusually low and is due to reduced in-person activities. At the year-end we employed 98 permanent staff, an increase of 6.5% on last year. 20 were full time and 78 were part time Coronavirus impacted on our finances as we had to close or strictly limit our income generating services including the cafes, however we have been successful in applying for funds to deliver the revised services to meet the needs of our existing and new service users. A feature of much of our work is that it is set against time limited funding. Whilst this does bring risk from our competitors for some services, it also brings opportunities to bid for work new to the organisation and to bring innovation in how services can best be developed and delivered. Our track record in sustaining services remains very sound, but this does put pressure on reserves from time to time. Several of our services are interlinked and so growth or reduction in one can have a knock on effect on others. Trustees would only consider the loss of any of our services as a last resort, and so have on occasion supported services from reserves in the short term whilst alternative funding is sought. Unfortunately we needed to end our work at the Henfield Haven during this year due to Coronavirus enforcing closure making this financially unviable. 2 **IMPACT INITIATIVES (Limited By Guarantee)** ## **Trustees Report For the Year Ended 31 March 2021** We remain confident that the considerable effort being put into expansion, working in partnership with statutory and voluntary organisations and local businesses, plus continued development in those work areas which we have a reputation to be extremely proud of, will see Impact Initiatives continue to thrive. Neil Moscrop Chair ## **OBJECTIVES AND ACTIVITIES** ## **Summary of the objects of the charity as set out in our governing document** The objects for which Impact Initiatives is established are to promote any charitable purpose for the benefits of the inhabitants of Sussex and surrounding areas. This includes providing facilities for recreation or leisure time occupation which improve people’s quality of life. ## **We do this through:** ## **Children and Young People’s Services** These provide safe places including housing where children and young people can get advice and guidance, learn new skills such as cooking, managing money and have a break from often extremely difficult lives. The services are unique and innovative, with adults who will truly listen and understand and so can help children and young people to create a positive future for themselves. ## **Adults’ and Older People’s Services** Our services help people achieve independence through training, advocacy, one-to-one and group support. We provide specialist employment support and advocacy services which help people to be heard, find secure employment, and feel valued for their skills. For those aged 50+ we provide centres, cafés and activities where people can meet others, make connections, learn new skills, enjoy good food and company. Impact lead the Citywide Ageing Well service in Brighton and Hove. ## **OUR SERVICES AND WORK** ## **The services provided during the year and included in this report are:** ## **Children and Young People** **Stopover -** Supported housing for young women. We provide a safe place where young women can start to build their lives and work towards independence. This is across 8 houses which provide a pathway from high to low level support **WASP - (Whitehawk After School Project)** An After School Club and Summer Holiday Play scheme in Whitehawk which is one of the UK’s most deprived areas. We provide places where children can meet their friends, learn new skills and have a great time. 3 **IMPACT INITIATIVES (Limited By Guarantee)** ## **Trustees Report For the Year Ended 31 March 2021** **YPC - (Young People’s Centre)** Where 11-25 year olds obtain support, advice and meet others with similar issues. We support young people with issues around mental health, employment and training, homelessness, drugs and alcohol, and sexual health. The YPC also provides work space for other specialist young people’s organisations ## **Adults and older people** **Ageing Well –** A partnership of ten organisations led by Impact providing support, advice and activities across Brighton and Hove. In addition to our Hop 50+ Impact provide a Single Point of Contact telephone line and email for enquiries regarding older people’s services and support, an Outreach services in specific areas of the City and the annual Ageing Well Festival – **Advocacy Services** Provides a voice to adults with Asperger’s, disabilities including learning disabilities, acquired brain injury (ABI), or sensory impairments, through one-to-one advocacy and support for self-advocacy groups. We also support the Aspie Trainers service who provide training in Autism and Asperger’s to groups and professionals **Henfield Haven –** A centre providing a high level of support for people with dementia alongside a café and range of classes and activities. ~~T~~ he Haven also provides work space for Carers Support West Sussex **The Hop 50+ –** Offers a centre, café, and community based activities that improve the lives of those aged 50+ and help to maintain physical and emotional wellbeing. **Workability -** Provides support which helps people into or to retain training and employment. We work with people with physical or sensory impairments and acquired brain injury ## **ACHIEVEMENTS AND PERFORMANCE** ## **REVIEW OF THE YEAR** At the start of the year the trustees and management undertook to: - **Further develop the five-year Business Plan inclusive of requirements and effects of Covid 19 on our service delivery** - Ensuring this aligns with local and national guidelines and regulations as well as the needs and preferences of our service users. Further work with partners, to ensure best use of skills networks and resources - **Further explore how we make best use of our assets and our approach to building unrestricted reserves** Through assessment of our options on current use of our buildings to ensure we are bringing the best value possible to the organisation - **Continue to seek new opportunities** Including widening the geographical reach of specific services 4 **IMPACT INITIATIVES (Limited By Guarantee)** ## **Trustees Report For the Year Ended 31 March 2021** - **Continue to review our board membership to reflect the needs of the five-year plan and to ensure diversity** Building on the strengths of our current Board of Trustees to actively seek others to fill any gaps identified including recognising the need for diversity within the Board of Trustees. ## **How the year compared to the plans and aspirations?** We have remained focussed on our business plan throughout the unprecedented year that Coronavirus presented us with. We have developed all areas of the business, moving a significant proportion of the business to online delivery. We have stepped in to fill gaps identified as needed through working with our statutory and voluntary sector partners We have developed a Funding and Income Generation Strategy and implementation plan which brings clarity and innovation to building our free reserves. This included reviewing the organisations use of our physical assets, including buildings, and investing in bringing improvements to these to maximise value and income. We have sought and developed opportunities for new work which has been Coronavirus specific but some of which will be ongoing. We have taken learning and new ways of working and embedding some into our ongoing service delivery We have invested in identifying gaps in our diversity and inclusion across the organisation including at Board level. Policies, documents including those used for recruitment have been amended in line with research and learning. Training for all staff and trustees is now planned to ensure this is embedded in all of our work, language and recruitment. ## **MAIN OR SIGNIFICANT ACHIEVEMENTS OF OUR SERVICE TEAMS** ## **Children and Young People’s services:** - Major building works were carried out at the YPC to improve and make the interior spaces more flexible and to repair the roof and chimneys - Providing continued support for WASP children and families when the building had to close. This was through phone calls and personal deliveries of activity and recipe/food packs with doorstep chats with the children and their families. We also secured funding for a campfire area and training in forest skills. - Stopover secured additional funding to cover costs of setting up two new houses and updating security and renovation of existing properties. ## **Adults and Older People** - The Advocacy Team supported Aspie Trainers and over 40 people with learning disabilities to move to online delivery and meetings, this was through securing funding for equipment and training. - Working closely with BHCC the Ageing Well Single Point of Contact team set up a new service to help people access food during the pandemic, based on the success of this, funding for this has continued post lockdown and into next year. Following forced 5 **IMPACT INITIATIVES (Limited By Guarantee)** ## **Trustees Report For the Year Ended 31 March 2021** temporary closure. The Hop 50+ repurposed as a food hub co-ordinating food collection and parcel deliveries - Despite many companies closing or furloughing staff Workability supported 36 people with physical or sensory impairments into paid work and a further 11 into training or voluntary work ## **OUR VOLUNTEER SUPPORT INCLUDED** ## **Children and Young People:** - Personally delivering activity packs to WASP children at their homes. - Providing online one-to-one and group support via the YPC. ## **Adults and older people :** - Volunteer advocates providing one to one support helping people to have a voice in issues including housing and work. - Delivering medication, food parcels and cooked meals to older people - Supporting people to get online so they could join groups and classes when venues had to close. - Provided advocacy for people with learning disabilities. ## **Other volunteer support** Over 100 informal volunteers helped us to fundraise; donated time or resources, designed marketing materials and publicity for the Ageing Well Festival Our trustees worked over 600 hours through attending board and finance committee meetings, and external networking to raise the profile of the organisation and encourage new supporters. This is a significant increase on last year, predominantly attributable to the work required around ending our work at Henfield Haven. Throughout the year trustees gave support over day-to-day governance matters for the organisation with business development and strategy. At the end of the year trustees were also involved in planning and implementing our response to Covid 19 across the organisation ## **FINANCIAL REVIEW** Income increased during the year to £2,476,443 from £2,411,903 in 2020/21. This increase can be attributed to 2 new stopover houses opening during the year and a new contract for Dementia and food access services in Brighton & Hove. At the beginning of the 2020/21 year a deficit of £7,657 was forecast. The actual result was a surplus of £89,330. The improvement during the year was largely due to an the increase in stopover houses and grant funding received during the year along with monitoring expenditure and making cost savings where possible. At the beginning of the financial year 2021/22 a deficit of £14,837 was budgeted. This is based on confirmed income at the beginning of the year and a prudent budget for expenditure. The 6 **IMPACT INITIATIVES (Limited By Guarantee)** ## **Trustees Report For the Year Ended 31 March 2021** priority of the trustees is now to rebuild the reserves of the charity so the management is looking at new funding opportunities in order to do this. The charity remains positive in its search for new funding and will consider working with partners without compromising its financial integrity. Rigorous cost control remains in place in all of our projects. The Development Group is working to secure further income including trust funds and is making links with relevant people to achieve this. We have a clear plan for the future of the organisation including realistic development of services and new projects which meet the objectives Impact Initiatives whilst support those of the city, district and county councils and trusts. ## **Policy on reserves and reserves held** Impact Initiatives aims to establish liquid reserves at a level that would represent at least three months' overall running costs, in addition to the security of its freehold premises in Ship Street. This amounts to approximately £496,337. This will enable the charity to cope with any periods of unexpected turbulence and have the flexibility to undertake research and other types of work to further its aims in the future. Financial policies and procedures form the framework upon which decisions for expenditure are made. At the end of the year the free reserves, as defined by the Charity Commission, showed a surplus of £233,483. This figure is derived from the General unrestricted funds of £464,376 plus the mortgage on the property of £397,296, less the net book value of our assets, £628,189. Although the strategy is to continue to build reserves through planned operating surpluses, the Trustees are aware that it may take a little longer during the next few years whilst the financial situation is unstable. ## **Going concern and cash flow** Although Impact Initiatives have made a surplus in this financial year, we are forecasting a small deficit for 2021/22, there are steps being taken and funding opportunities being sought to improve the result as the year progresses, the trustees are confident that going forward there will be a return to an operating surplus in the future. Going concern has been reviewed in detail in light of the uncertainty relating to COVID. Cashflow forecasts for longer periods are being reviewed on a regular basis. The key issue for the trustees is cash flow and the ability of Impact Initiatives to continue to pay its liabilities as they fall due. The trustees expect liabilities to be met as they arise. The position is reviewed on a month by month basis, and should this situation change then the trustees would take the appropriate steps. The trustees are confident that the charity will remain a going concern for the foreseeable future, and these financial statements have therefore been prepared on a going concern basis. ## **PLANS FOR FUTURE PERIODS** ## **Plans for the forthcoming year** The strategic plan will be implemented and will include developments in all services and new projects. 7 **IMPACT INITIATIVES (Limited By Guarantee)** ## **Trustees Report For the Year Ended 31 March 2021** ## **Throughout 2021-2022 we will:** - **Ensure transition through Coronavirus** We will follow government guidelines and ensure we are able to flex to provide ongoing support for our service users as these change - **Further develop the five-year Business Plan inclusive of requirements and effects of Covid 19 on our service delivery** - We will ensure this aligns with local and national guidelines and regulations as well as the needs and preferences of our service users. We will work with partners to ensure best use of skills networks and resources - **We will further explore how we make best use of our assets and our approach to building unrestricted reserves** Through ongoing development of our options on current use of our buildings we will ensure we are bringing the best value possible to the organisation - **We will continue to seek new opportunities** This will include widening the geographical reach of specific services - **We will continue to review our board membership to reflect the needs of the fiveyear plan and to ensure diversity** - To build on the strengths of our current Board of Trustees we will actively seek others to fill any gaps identified including recognising the need for diversity within the Board of Trustees. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **Legal Constitution** The charity was incorporated on 29 November 1978 as a company limited by guarantee and is governed by its Memorandum and Articles of Association. The charity is limited by guarantee and has no share capital. The charity was registered with the Charity Commission on 30 April 1979 under registration number 276669. The charity changed its name from PACT Community Projects Ltd to Impact Initiatives with effect from 26 November 2002. ## **Organisational structure and how decisions are made** The CEO and Management Team (MT) conduct the day to day business of the charity, reporting quarterly to the Trustees. A number of trustees assist the MT either directly or through both long and short term working groups. 8 **IMPACT INITIATIVES (Limited By Guarantee)** ## **Trustees Report For the Year Ended 31 March 2021** The Central team provides back-office infrastructure support and management, ensuring our projects deliver frontline services effectively and efficiently, and that they comply with their contractual and legal requirements and funders' needs. We have a clear policy and procedure laying out how we manage financial risk and who is responsible for agreeing and signing off financial agreements. Impact Initiatives Central Team provides management of and support for finance, information technology, human resources, administration and fundraising. This is a cost effective way of the services having consistent professional support and enables them to focus on the service provision. ## **Governance** Impact Initiatives is a regional charity, with substantial legal and contractual liabilities, and needs to operate at a similar level of experience and efficiency as a complex commercial business. The board of trustees is ultimately responsible for the organisation. Good governance demands that the trustees set clear aims and objectives, establish priorities, safeguard the charity’s assets and use them effectively and exclusively for the benefit of the organisation’s beneficiaries. The board of trustees consists of up to 18 individuals, appointed by the members in general meeting, and can include a chair and vice chair. The board of trustees has the power to appoint individuals to the board either to fill a casual vacancy or as an addition to the board. Emergency decision procedures are in place, which always involve the chair plus a second trustee. The trustees have also adopted the Model Code of Conduct developed by The National Council of Voluntary Organisations. The trustees meet in full session every three months, providing clear direction and overview of the organisation's operation and compliance with agreed strategies and business plan. The finance committee, which all trustees are invited to attend, meets as required. In addition, the chair meets regularly with the CEO. The trustees set out on page 1 have held office during the whole period from 1 April 2019 to the date of this report, unless otherwise stated. In accordance with the Articles of Association, one third of the trustees retire annually and are eligible for re-election at the annual general meeting. Each member has agreed to contribute £1. All trustees are members. ## **Recruitment, induction and training of trustees** Impact Initiatives Equalities and Diversity policy applies to the recruitment of trustees except where specialist knowledge or skills, or representation of a geographic area, has been identified to enhance the capacity of the board. In these circumstances individuals with appropriate skills or background would be approached directly. We continue to work to encourage service users, or those with direct experience and understanding of the issues our service users face, to become trustees. New trustees are recommended for appointment by the chair and adopted subject to their appointment being confirmed at the annual general meeting. The board’s performance is reviewed annually by the chair. Trustees are offered internal training and the opportunity to attend relevant seminars or presentations directed at the voluntary sector during the course of the year. 9 **IMPACT INITIATIVES (Limited By Guarantee)** ## **Trustees Report For the Year Ended 31 March 2021** All are encouraged to attend the briefing by the finance manager and auditors and adoption of the annual accounts. Key risks to Impact’s business continuity are: - Contracts ending and not being renewed - Loss of key members of staff - Loss of key sources of income - Loss of a building through fire or other disaster - Damage to the organisation’s reputation - Coronavirus effecting income forcing services to close We have a clear risk management policy and disaster recovery plans for the organisation and individual services which are reviewed annually. Any changes in the level of risk in any of these areas is approached and managed as set out below. Our Business continuity plan was tested and proved effective throughout this year when Coronavirus forced closure of several buildings and redesign of service delivery. Working from home has continued for all but a few staff where this is not possible, equipment was put in place to enable this. The Finance Committee is advised of any major risks to the organisation, the risk register is updated and presented to the board each six months or more often as required by the CEO. Where risks are identified a plan is agreed to minimise them and any necessary controls identified and put in place along with a monitoring process. Potential new services and projects are risk assessed prior to committing to the submission of tender documentation or legally binding costs being incurred. ## **The trustees’ risk management strategy comprises of the following:** - A six monthly review of the risks to the charity. - The establishment of systems and procedures that will mitigate risks identified in the review - The implementation of procedures designed to minimise any potential risks to the charity should they materialise. - Disaster recovery for all aspects of the organisation has been reviewed and a policy is implemented across all services. Staff have been made aware of and understand their specific responsibilities. - Impact Initiatives continues to invest in health and safety training and has contractors health and safety scheme (CHAS) accreditation for the whole organisation. The trustees recognise that systems can only provide reasonable assurance that major risks are being adequately managed. 10 **IMPACT INITIATIVES (Limited By Guarantee)** ## **Trustees Report For the Year Ended 31 March 2021** The main objectives for this year were to: - Continue our work to ensure we are making the most efficient and effective use of our financial resources and assets. - Continue our work to provide services which are most needed and can be financially supported either through grants and contracts or our other fundraising. - Continue to reinforce external understanding of the organisation and widen our promotion to raise our profile and build the business - Ensure we were ready for forthcoming commissioning from the local authorities - Continue to explore ways of increasing our unrestricted reserves These have been achieved for the organisation through forward planning, increased networking and profile raising and partnership building ## **Pay policy for senior staff** The directors consider the board of directors, who are the Trust’s trustees, and the Chief Executive Officer comprise the key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis. All directors give of their time freely and no director received remuneration in the year. Details of directors’ expenses and related party transactions are disclosed in note 12 to the accounts. The pay of the senior staff is reviewed annually and normally increased in accordance with average earnings. ## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES** The law applicable to charitable companies in England and Wales requires the trustees, who are also the directors of the charity, to prepare financial statements for each year which give a true and fair view of the state of the charity’s financial activities during the year and of its financial position at the end of the year. In preparing financial statements giving a true and fair view, the trustees should follow best practice and: - Select suitable accounting policies and then apply them consistently - ● Make judgments and estimates that are reasonable and prudent - State whether applicable United Kingdom accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements and - Prepare the financial statements on a going concern basis unless it is inappropriate to assume that the charity will continue in operation The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Companies Act 2006 and the Charities Act 11 **IMPACT INITIATIVES (Limited By Guarantee)** ## **Trustees Report For the Year Ended 31 March 2021** 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. ## **Disclosure of information to auditors** Each trustee has taken all steps that they ought to have taken in order to make themselves aware of any information relevant to the audit, establish that auditors are aware of that information and that there is no information relevant to the audit of which the charity company’s auditors were unaware. ## **Public Benefit statement** The trustees have reviewed the objectives and activities of the organisation against the Charity Commission’s guidance on public benefit and are satisfied that the organisation meets the public benefit criteria. ## **Auditors** A resolution to reappoint TC Group will be proposed at the forthcoming Annual General Meeting. This report has been prepared in accordance with the small companies’ regime of the Companies Act 2006. Approved by the Trustees on 12[th] October 2021, and signed on their behalf by Neil MOSCROP as chair. N Moscrop Chair 12 **IMPACT INITIATIVES (Limited by Guarantee)** ## **Auditors Report For The Year Ended 31 March 2021** We have audited the financial statements of Impact Initiatives (the 'charitable company') for the year ended 31 March 2021 set out on pages 16 to 33. 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 (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 2021 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 of 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 the provisions available for small entities, and we have fulfilled our 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 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 authorized 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, including the trustees report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 13 **IMPACT INITIATIVES (Limited by Guarantee)** ## **Auditors Report For The Year Ended 31 March 2021** 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 report (incorporating the directors report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the trustees report (incorporating the directors report) have been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees report (incorporating the directors report). We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require; or - the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the governors’ report and from the requirement to prepare a strategic report. ## **Responsibilities of trustees** As explained more fully in the trustees responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes 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 to do so. ## **Auditor's responsibilities for the audit of the financial statements** 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. 14 **IMPACT INITIATIVES (Limited by Guarantee)** ## **Auditors Report For The Year Ended 31 March 2021** 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. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. ## **Extent to which the audit was considered capable of detecting irregularities, including fraud** The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management. Our approach was as follows: - We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general sector experience, and through discussion with the trustees and other management (as required by auditing standards), and discussed with the trustees and other management the policies and procedures regarding compliance with laws and regulations (see below); - We identified the following areas as those most likely to have such an effect: health and safety; General Data Protection Regulation (GDPR); fraud; bribery and corruption, DBS checks, and employment law. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the trustees and other management and inspection of regulatory and legal correspondence, if any. The identified actual or suspected non-compliance was not sufficiently significant to our audit to result in our response being identified as a key audit matter. - We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102, the Companies Act 2006 and the Charities Act 2011) and the relevant tax compliance regulations in the UK. - We considered the nature of the charitable company’s operations, the control environment and financial performance. - We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. - We considered the procedures and controls that the charitable company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls. Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; 15 **IMPACT INITIATIVES (Limited by Guarantee)** ## **Auditors Report For The Year Ended 31 March 2021** performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. ## **Use of our report** This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for the no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members, as a body, for our audit work, or for the opinions we have formed. ## **Mr Mark Cummins FCCA (Senior Statutory Auditor) for and on behalf of TC Group Statutory Auditors** The Courtyard Shoreham Road Upper Beeding Steyning West Sussex BN44 3TN Date: 22 October 2021 16 **IMPACT INITIATIVES (Limited by Guarantee)** ## **Statement of Financial Activities (including Income and Expenditure Account)** ## **For the Year Ended 31 March 2021** ||Notes|**Unrestricted**|**Unrestricted**|**Unrestricted**|**Unrestricted**|Restricted|Restricted|Restricted|**2021 Total**
**Funds**|**2021 Total**
**Funds**|**2021 Total**
**Funds**|**2021 Total**
**Funds**|**2020 Total**
**Funds**|**2020 Total**
**Funds**|**2020 Total**
**Funds**|**2020 Total**
**Funds**| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| ||||**£**||||**£**|||**£**||||**£**||| |INCOME from:||||||||||||||||| |Voluntary income|**4**||140,194||||106,006|||246,200||||121,607||| |Activities for raising funds|**5**||67,624||||2,366|||69,990||||267,953||| |Charitable activities|**6**||2,072,359||||87,866|||2,160,225||||2,022,272||| |||||||||||||||||| |Investment Income||||28|||-||||28||||71|| |**Total income**|||**2,280,205**||||**196,238**|||**2,476,443**||||**2,411,903**||| |||||||||||||||||| |||||||||||||||||| |**EXPENDITUREon:**|**7**|||||||||||||||| |Raisingfunds|||21,189||||-|||21,189||||31,884||| |Charitable activities|||2,117,494||||248,430|||2,365,924||||2,271,114||| |||||||||||||||||| |**Total expenditure**|||**2,138,683**||||**248,430**|||**2,387,113**||||**2,302,998**||| |||||||||||||||||| |||||||||||||||||| |||||||||||||||||| |Net income/(expenditure) and net
movement in funds for the year|||||141,522||(52,192)|||||89,330||||108,905| |||||||||||||||||| |||||||||||||||||| |**Reconciliation of funds**||||||||||||||||| |**Transfers**|||||-||-|||||-||||-| |||||||||||||||||| |Total funds brought forward|||||322,854||117,670|||||440,524||||331,619| |||||||||||||||||| |||||||||||||||||| |||||||||||||||||| |**Total funds carried forward**|**20**||||**464,376**|||**65,478**||||**529,854**||||**440,524**| The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. All activities are classified as continuing. There are no recognised gains or losses other than those reported on the Statement of Financial Activities 17 **IMPACT INITIATIVES (Limited by Guarantee)** ## **Balance Sheet at 31 March 2021** ||Notes|||||2021|||||2020|| |---|---|---|---|---|---|---|---|---|---|---|---|---| ||||**£**|||**£**||**£**|||**£**|| |||||||||||||| |FIXED ASSETS||||||||||||| |Tangible assets|**15**|||||628,189|||||651,369|| |||||||||||||| |CURRENT ASSETS||||||||||||| |Debtors|**16**||97,680|||||153,871||||| |||||||||||||| |Cash at bank|||319,330|||||214,161||||| ||||417,010|||||368,032||||| |||||||||||||| |**CREDITORS**
Amounts falling due within one
year|**17**|(118,049)|||||(170,579)|||||| |**NETCURRENT ASSETS**||||||298,961|||||197,453|| |||||||||||||| |||||||||||||| |**TOTAL ASSETS**||||||927,150|||||848,822|| |||||||||||||| |**CREDITORS**
Amounts falling due after one year|**18**||||(397,296)|||||(408,298)||| |||||||||||||| |**NET ASSETS**||||||529,854|||||440,524|| |||||||||||||| |||||||||||||| |**The funds of the charity:**||||||||||||| |||||||||||||| |Unrestricted income funds|**20**|||||464,376|||||322,854|| |Restricted income funds|**20**|||||65,478|||||117,670|| |||||||||||||| |**Total charity funds**||||||529,854|||||440,524|| These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to the members of the charitable company. The notes at pages 19 to 31 form part of these accounts Approved by the trustees on 12[th] October 2021 and signed on their behalf by; N D Moscrop Chair **Company number 1402692** 18 **IMPACT INITIATIVES (Limited by Guarantee)** ## **Statement of Cash Flows For the year ended 31 March 2021** ||Notes|Notes||||2021||||||2020|2020| |---|---|---|---|---|---|---|---|---|---|---|---|---|---| |||||||**£**||||||**£**|| |**Net cash inflow/(outflow) from**
**operating activities**|**24**|||||**134,299**||||||**145,402**|| ||||||||||||||| |**Cash flows from investing activities**|||||||||||||| ||||||||||||||| |Interest income|||28|||||71|||||| |Interest Paid|||(18,156)|||||(18,531)|||||| |Purchase of tangible fixed assets|||-|||||(41,012)|||||| ||||||||||||||| ||||||||||||||| ||||||||||||||| |Net cash provided by/ (used in)
investing activities||||||**(18,128)**||||||**(59,472)**|| ||||||||||||||| ||||||||||||||| |Cash flows from financing activities|||||||||||||| |Mortgage|||(11,002)||||||(7,979)||||| ||||||||||||||| |Net cash provided by financing
activities||||||**(11,002)**|||||||**(7,979)**| ||||||||||||||| ||||||||||||||| |Change in cash and cash equivalents
in the year||||||**105,169**|||||||**77,951**| |Cash and cash equivalents at the
beginning ofthe year||||||214,161||||||136,210|| ||||||||||||||| ||||||||||||||| |**Cash and cash equivalents at the**
**end of the year **||||||**319,330**||||||**214,161**|| ||||||||||||||| ||||||||||||||| ||||||||||||||| ||||||||||||||| |Analysis of cash and cash equivalents||**At 1 April**
**2020**|||**Cash flow**||**Non-cash**
**changes**|||||**At 31**
**March**
**2021**|| ||||**£**|||**£**||||**£**||**£**|| ||||||||||||||| |Cash at bank and in hand|||214,161|||105,169||||-||319,330|| ||||||||||||||| ||||||||||||||| 19 **IMPACT INITIATIVES (Limited by Guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **For the year ended 31 March 2021** ## **1 STATUTORY INFORMATION** Impact Initiatives is a charitable company, limited by guarantee, registered in England and Wales. The charitable company’s registered number and registered office address can be found on the legal and administrative information page. ## **2 ACCOUNTING POLICIES** The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows: ## **a) Basis of preparation** The financial statements have been prepared in accordance with 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 (FRS102) (effective 1 January 2015) – Charities SORP (FRS102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006. Impact Initiatives meets the definition of a public benefit entity under FRS102. Assets and Liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). There are no material uncertainties about Impact Initiatives ability to continue as a going concern, this takes into account any known impact of the COVID 19 pandemic. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. ## **b) Income recognition policies** Items of income are recognised and included in the accounts when all of the following criteria are met: - The charity has entitlement to the funds; - any performance conditions attached to the item(s) of income have been met or are fully within the control of the charity; - there is sufficient certainty that receipt of the income is considered probable; and - the amount can be measured reliably. Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met (see note 19). ## **c) Critical accounting estimates and judgements** In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. 20 **IMPACT INITIATIVES (Limited by Guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021** 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. The trustees do not consider that there are any critical estimates or areas of judgement that need to be brought to the attention of the readers of the financial statements. ## **d) Donated services and facilities** Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time of the Friends is not recognised and refer to the trustees’ annual report for more information about their contribution. On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt. ## **e) Interest receivable** Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank. ## **f) Fund accounting** Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work. ## **g) Expenditure** Expenditure is recognised on an accruals basis with the irrecoverable element of value added tax included within the item of expense to which it relates. Costs of generating voluntary income include fundraising and publicity costs attributable to the raising of all voluntary income. Fundraising trading: cost of goods sold and other costs include the cost of running the cafes at Hop50+, the Larches, Dingemans and Henfield Haven. Charitable activities costs include the direct and indirect running costs of the various projects. Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity. 21 **IMPACT INITIATIVES (Limited by Guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021** Support costs represent the running costs of a central office to manage and administer the projects including the functions of general management, payroll and administration, budgeting and accounting, information technology and human resources. They are allocated across the categories of charitable expenditure and projects on a proportion of time spent upon them. ## **h) Tangible fixed assets** Individual fixed assets costing £1,000 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a straight line basis as follows: |**Asset Category**|**Annual rate**| |---|---| |Freehold property|2%| |Computer equipment|33.3%| |Motor vehicles|10%| ## **i) Operating leases** Rental costs under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease. ## **j) Debtors** Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid. ## **k) Cash at bank and in hand** Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. ## **l) Creditors and provisions** Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount. ## **m) Pension costs** Contributions payable to the company’s pension schemes are charged to the Statement of Financial Activities in the period to which they relate (see note 23). 22 **IMPACT INITIATIVES (Limited by Guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021** ## **3 LEGAL STATUS OF THE CHARITY** The Charity is a company limited by guarantee and has no share capital. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity. The authorised membership of the charity is 500. At 31 March 2021, the membership was 19 (2020 - 18). The Charity is under the control of the Trustees. ## **4 VOLUNTARY INCOME** ||||2021 Total|2020 Total| |---|---|---|---|---| ||Unrestricted|Restricted|funds|funds| ||£|£|£|£| |Donations|3,259|25,560|28,819|20,666| |Grants|136,935|80,446|217,381|100,941| ||140,194|106,006|246,200|121,607| The Charity benefits greatly from the involvement and enthusiastic support of its many volunteers, details of which are given in our annual report. In accordance with FRS 102 and the Charities SORP (FRS 102), the economic contribution of general volunteers is not recognised in the accounts. ## **5 ACTIVITIES FOR RAISING FUNDS** ||||2021 Total|2020 Total| |---|---|---|---|---| ||Unrestricted|Restricted|funds|funds| ||£|£|£|£| |Accommodation and room|34,510|-|34,510|60,659| |hire||||| |Fees for services|25,236|-|25,236|76,738| |Catering receipts|7,687|-|7,687|128,601| |Fundraising events|191|2,366|2,557|1,955| ||67,624|2,366|69,990|267,953| 23 **IMPACT INITIATIVES (Limited by Guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021** ## **6 INCOME FROM CHARITABLE ACTIVITIES** |2021 Total
£
Age UK
27,880
Aldingbourne Trust
159,703
Brighton & Hove City Council
754,559
Brighton & Hove Clinical Commissioning Group
9,800
Childrens Social Work Services
250
Children in Need
37,366
Horsham District Council
12,500
University of Sussex
-
Henfield Medical Centre
-
Sussex Community Foundation
71,500
West Sussex County Council
277,554
National Lottery – Homeless Link
50,500
NHS High Weald & Lewes Havens CCG
-
NHS Hastings & Rother CCG
-
NHS Eastbourne, Hailsham & Seaford CCG
-
NHS Coastal West Sussex
-
NHS East Sussex CCG
70,000
Pohwer
48,960
Housing Support
132,338
Rent and amenities
502,999
Client contributions
4,316
2,160,225|2020 Total
£
25,000
-
619,489
19,600
55,587
34,739
10,000
1,200
6,000
71,520
436,841
-
32,411
16,200
16,650
10,030
-
36,720
122,507
406,177
101,601
2,022,272| |---|---| ||| 24 **IMPACT INITIATIVES (Limited by Guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021** ## **7 ANALYSIS OF ACTIVITIES AND SUPPORT COSTS** |**Costs of raising funds**
Voluntary income
Financing Costs
Fundraising trading
Total costs of
generating funds
**Charitable activities**
Activities undertaken
directly
Payments to partners
Support costs
Total charitable
activities
**Governance costs**
**Total resources**
**expended**|Staff
Costs
Depreciation
£
£
-
-
-
-
-
-
-
-
1,172,819
-
-
-
188,566
23,181
1,361,385
23,181
-
-
1,361,385
23,181|Other
Costs
£
2,781
18,156
252
21,189
479,376
401,766
91,833
972,975
8,383
1,002,547|2021
Total
£
2,781
18,156
252
21,189
1,652,195
401,766
303,580
2,357,541
8,383
2,387,113|2020
Total
£
13,227
18,531
126
31,884
1,592,438
363,291
305,785
2,261,514
9,600
2,302,998| |---|---|---|---|---| Governance costs comprise audit & accountancy fees for the year together with AGM costs. Payments to partners relates to payments made to partner organisations. The Ageing Well Contract is a collection of 8 charities who deliver older people services across Brighton & Hove including the HOP 50+. Impact Initiatives co-ordinates and manages the funding for these organisations. Other payments to partners relates to payments made out from the Sussex Community Foundation funding which Impact Initiatives manage the funding for. ## **8 SUPPORT COSTS** ||Cost of|Charitable|Govern-|2021 Total|2020 Total| |---|---|---|---|---|---| ||raising|activities|ance||| ||funds||Costs||| ||£|£|£|£|£| |Human resources|1,674|186,230|662|188,566|188,717| |Establishment costs|701|77,959|277|78,937|76,921| |Office and administration|320|35,630|127|36,077|40,147| ||2,695|299,819|1,066|303,580|305,785| All support costs are based on a project by project management review of estimated usage of central staff time. 25 **IMPACT INITIATIVES (Limited by Guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021** ## **9 NET INCOME/(EXPENDITURE) FOR THE YEAR** ||2021|2020| |---|---|---| ||£|£| |This is stated after charging:||| |Depreciation of tangible fixed assets|23,181|24,604| |Auditors’ remuneration|8,383|9,600| |Amounts payable under operating leases, land and||| |buildings|204,942|176,156| |**10 ANALYSIS OF STAFF COSTS AND TRUSTEE REMUNERATION AND**||**EXPENSES**| ||2021|2020| ||£|£| |Salaries|1,254,084|1,228,973| |Social security costs|86,619|86,032| |Pension contributions|20,682|21,681| ||1,361,385|1,336,686| One employee received remuneration in excess of £60,000 (2020 - 1). The total employment costs (including employers national insurance and pension contributions) of Senior Management was £71,133 (2020 - £68,462). None of the trustees received remuneration from the charity during the year (2020 – £nil). A total of £nil was paid to trustees during the year as reimbursement of travel expenses (2020 – £nil). No amounts were due to or from the trustees at the balance sheet date (2020 - £nil). ## **11 STAFF NUMBERS** The average monthly head count was 104 staff (2020 - 110 staff) and the average monthly number of full-time equivalent employees (including casual and part-time staff) during the year were as follows: ||2021|2020| |---|---|---| ||Number|Number| |Administration|5|5| |Project staff|46|45| ||51|50| The charity participates in an insurance policy which protects the charity from loss arising from the negligence of its employees and indemnifies employees against the consequences of such negligence. The cost to the charity of this insurance was £10,843 (2020 - £10,781). ## **12 RELATED PARTY TRANSACTIONS** There were no related party transactions during the year to report. 26 **IMPACT INITIATIVES (Limited by Guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021** ## **13 GOVERNMENT GRANTS** Income from government grants comprises performance related grants made by local authorities to fund specific projects’ activities. See note 6 for more information and to the amount and source of these grants. During the year the charity received funding through the Coronavirus Job Retention Scheme totalling £74,072. ## **14 TAXATION** The charitable company is registered as a charity and most of its income falls within the exemptions under Part 11 of the Corporation Tax Act 2010. It does have some non-primary purpose trading income which falls above the small trading threshold and is liable to corporation tax on any profits made. ## **15 TANGIBLE FIXED ASSETS** |Freehold
Property
Motor
Vehicles
Computer
Equipment
£
£
£
**COST**
At April 1 2020
752,550
77,102
18,170
Additions
-
-
-
Disposals
-
-
-
At 31 March 2021
752,550
77,102
18,170
**ACCUMULATED DEPRECIATION**
At April 1 2020
160,165
18,537
17,750
Charge for year
15,051
7,710
420
Disposals
-
-
-
At 31 March 2021
175,216
26,247
18,170
**NET BOOK VALUES**
At 31 March 2021
577,334
50,855
-
At 31 March 2020
592,385
58,565
420|Totals
£
847,822
-
-
847,822
196,452
23,181
-
219,633
628,189
651,370| |---|---| 27 **IMPACT INITIATIVES (Limited by Guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021** ## **16 DEBTORS** |Debtors
Other debtors
Accrued Income
**17 CREDITORS: Amounts falling due within one year**
Deferred income (see note 19)
Creditors and accruals
VAT
Mortgage
Income tax and social security payments
**18 CREDITORS: Amounts falling due after one year**
Mortgage – repayable within:
1 to 2 years
2 to 5 years
Over 5 years|2021
£
81,609
2,537
13,534
97,680
2021
£
11,028
65,594
8,013
10,910
22,504
118,049
2021
£
11,549
37,690
348,057
397,296|2020
£
134,743
19,128
153,871
2020
£
94,080
46,385
1,872
7,934
20,308
170,579
2020
£
7,980
36,122
364,196
408,298| |---|---|---| On 19[th] July 2018 a charge was made against the YPC building on Ship Street for a mortgage to purchase the property in St Andrews Road. The mortgage term is 25 years and the rate of interest is 4.4% per annum. ## **19 DEFERRED INCOME** The deferred income included in note 17 above is broken down as follows: ||2021| |---|---| ||£| |Deferred income at 1 April 2020|94,080| |Released in the year|(94,080)| |Deferred in the year|11,028| |Deferred income at 31 March 2021|11,028| 28 **IMPACT INITIATIVES (Limited by Guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021** ## **20 ANALYSIS OF CHARITABLE FUNDS** ## **Analysis of movements in unrestricted funds** ||Balance
at 1 April
2020|Balance
at 1 April
2020|Balance
at 1 April
2020||Incoming
Re-
sources|Incoming
Re-
sources|Incoming
Re-
sources|||Outgoing
Project
Costs|Outgoing
Project
Costs||Support
Costs|Transfers|Transfers|Transfers||Balance
at 31st
March
2021| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| |||£|||||£|||£|||£|£||||£| |**General fund**||308,191|||||21,233|||(246,684)|||228,634|138,240||||449,614| |Hop50+||-|||||108,510|||(226,703)|||(34,556)|152,749||||-| |AgeingWell||-|||||758,514|||(487,787)|||(18,455)|(252,272)||||-| |Henfield||-|||||83,659|||(125,962)|||(18,894)||61,197|||-| |Advocacy||-|||||268,136|||(213,505)|||(22,189)||(32,442)|||-| |Advocacy Brighton||-|||||48,960|||(40,021)|||(4,292)||(4,647)|||-| |Workability West
Sussex||-|||||159,821|||(132,665)|||(13,281)||(13,875)|||-| |Wasp||-|||||9,369|||(9,369)|||(8,650)||8,650|||-| |YPC||-|||||184,316|||(147,118)|||(24,187)||(13,011)|||-| |Stopover||-|||||637,589|||(508,869)|||(84,130)||(44,589)|||-| |||308,191|||2,280,107||||
(2,138,683)||||
-|||
-||449,614| |IT Replacementfund|||9,693|||99|||||-||-|||-||9,792| |||||||||||||||||||| |Dilapidation fund|||4,970|||-|||||-||-|||-||4,970| |
||**322,854**|||**2,280,205**||||**(2,138,683)**||||**-**|||**-**||**464,376**| |||||||||||||||||||| The General fund is funded by income from the charity’s projects. The trustees have approved the transfer of the balance on each project’s result to the General fund to reflect the ongoing reality of the charity's day to day funding. Details of these projects can be found in the Trustees’ Annual Report starting on page 1. The IT Replacement fund has been set up to upgrade hardware and software as required across the whole organisation. The Dilapidations reserve has been set up to ensure the charity has the funds in place to meet our responsibilities of redecoration and cyclical repairs at the Stopover properties and for refurbishment work on the Ship Street building. 29 **IMPACT INITIATIVES (Limited by Guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021** ## **20 ANALYSIS OF CHARITABLE FUNDS –** _**continued**_ ## **Analysis of movements in restricted funds** |||Balance at
1st April
2021|Balance at
1st April
2021|Incoming
Re-sources|Incoming
Re-sources|Outgoing
Project Costs|Outgoing
Project Costs|Balance at
31stMarch
2021|Balance at
31stMarch
2021|Balance at
31stMarch
2021| |---|---|---|---|---|---|---|---|---|---|---| ||||£||£||£|||£| |||||||||||| |Hop50+|||763||13,398||(13,398)|||763| |Ageing Well|||-||1,219||(1,219)|||-| |Day CentreFund|||50,162||-||(7,710)|||42,452| |Advocacy|||3,964||-||(3,964)|||-| |Wasp|||-||70,238||(70,238)|||-| |Workability West|Sussex||150||-||(150)|||-| |YPC|||-||59,383||(49,921)|||9,462| |YPC Restoration|Fund||62,631||-||(49,830)|||12,801| |Stopover|||-||52,000||(52,000)|||-| ||||117,670||196,237||
(248,430)|||65,478| |||||||||||| |||||||||||| Restricted funds are funds that can only be used for specific purposes within a particular service. HOP50+ balance is made up of refurbishment fundraising The Day Centre Fund is 2 minibuses which were donated by the Valerie Munday Trust for use in any of our day centre services. Stopover received grant income in the year from the national lottery, which was all spent during the year. The Wasp restricted fund consisted of £37,366 from Children in Need, £5,000 from City Academy, Whitehawk and £20,000 was kindly donated by Space Doctors a Hove based semiotics company. The remainder consists of fundraising or donations income. The YPC restricted fund relates to a Youth Work grant which could not be spent during the year, also expenditure relating to the CAF resilience fund of £15,105 which was awarded during the year. The YPC Restoration Fund is a grant from Garfield Weston Memorial Fund which was awarded to renovate the building on Ship Street. The deadline for spending this funding was extended from 31[st] March 2021 until 30[th] June 2021, due to COVID effecting the start of the project. 30 **IMPACT INITIATIVES (Limited by Guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021** ## **21 ANALYSIS OF NET ASSETS BETWEEN FUNDS** ||Unrestricted
Funds|Unrestricted
Funds|Restricted
Funds|Restricted
Funds||2021
Total||2020
Total|2020
Total| |---|---|---|---|---|---|---|---|---|---| |||£||£||£||£|| |**Fund balances at 31 March**
**2021are represented by:**|||||||||| ||||||||||| |Tangiblefixed assets||577,334||50,855||628,189||651,369|| |Net current assets/(liabilities)||(112,958)||14,623||(98,335)||(210,845)|| |||
464,376||65,478||
529,854|||
440,524| ## **22 COMMITMENTS UNDER OPERATING LEASES** At 31 March 2021, the charity was committed to making the following payments: |Operating leases which expire:
Within one year
Between 2 and 5 years|2021
£
16,746
-
16,746|2020
£
-
33,492
33,492| |---|---|---| The charity has rental commitments on seven houses within its Stopover service. The contracts have a 6-month notice clause from each party. The figures above do not include these commitments. ## **23 PENSION COMMITMENTS** The charity operates a group of defined contribution schemes with funds assigned for individual members. The assets of these schemes are held separately from those of the charity in independently administered funds. The contributions payable at the year-end were £4,549 (2020 - £nil). Contributions paid during the year amounted to £50,420 (2020 - £59,449) The charity had one employee during the year who belonged to the West Sussex Local Government Pension Service. The charity’s liability for this is only for the contributions during the year. The total number of contributions during the year were £608 (2020- £1,848). This employee retired during the year. 31 **IMPACT INITIATIVES (Limited by Guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021** ## **24 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES** |Net movement in funds
Add back depreciation charge
Deduct interest income shown in investing activities
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Finance cost
Net cash used in operating activities|2021
£
89,330
23,181
(28)
56,191
(52,531)
18,156
134,299|2020
£
108,905
24,604
(71)
(28,784)
22,217
18,531
145,402| |---|---|---| 32 **IMPACT INITIATIVES (Limited by Guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021** ## **25 ANALYSIS OF PRIOR YEAR STATEMENT OF FINANCIAL ACTIVITIES BY FUND** ## **Statement of Financial Activities (including Income and Expenditure Account) For the Year Ended 31 March 2020** ||Notes|Unrestricted|Unrestricted|Unrestricted|Unrestricted|Restricted|Restricted|2020 Total
Funds|2020 Total
Funds|2020 Total
Funds|2020 Total
Funds|2019 Total
Funds|2019 Total
Funds|2019 Total
Funds|2019 Total
Funds| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| ||||**£**||||**£**||**£**||||**£**||| |INCOME from:|||||||||||||||| |Voluntary income|**4**||3,990||||117,617||121,607||||178,267||| |Activities for raising funds|**5**||267,111||||842||267,953||||283,992||| |Charitable activities|**6**||1,983,276||||38,996||2,022,272||||1,408,172||| |Investment Income||||71|||-|||71||||466|| |Total income|||**2,254,448**||||**157,455**||**2,411,903**||||**1,870,897**||| ||||||||||||||||| ||||||||||||||||| |EXPENDITURE on:|**7**||||||||||||||| |Raising funds|||31,884||||-||31,884||||30,117||| |Charitable activities|||2,123,357||||147,757||2,271,114||||1,927,248||| ||||||||||||||||| |Total expenditure|||**2,155,241**||||**147,757**||**2,302,998**||||**1,957,365**||| ||||||||||||||||| ||||||||||||||||| |Net income/(expenditure) and net
movement in funds for the year|||||99,207||9,698||||108,905||||(86,468)| ||||||||||||||||| |Reconciliation of funds|||||||||||||||| |Transfers|||||-||-||||-||||-| |Total funds brought forward|||||223,647||107,972||||331,619||||418,087| ||||||||||||||||| |Total funds carried forward|**20**||||**322,854**||**117,670**||||**440,524**||||**331,619**| 33