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2021-03-31-accounts

Coram Beanstalk

Annual Report and Financial Statements

31 March 2021

Company Limited by Guarantee Registration Number 02101719 (England and Wales) Charity Registration Number 296454

Contents

Reports

Reports
Reference and administrative information 1
Chairman’s statement 3
Trustees’ report 3
Independent auditor’s report 10
Financial statements
Statement of financial activities 15
Balance sheet 16
Statement of cash flows 17
Principal accounting policies 18
Notes to the financial statements 22
Appendix
Comparative statement of
financial activities 28
Comparative notes to the
financial statements 29

Coram Beanstalk

Reference and administrative information

Trustees Jill Pay (Chairman)
Hanif Barma (Treasurer)
Magdalene Bayim-Adomako
Kim Johnson
Saana Karki
Viral Mehta
Philip Nelson
Acting Managing Director Amy Lewis
Company Secretary Carol Homden
Company registration number 02101719 (England and Wales)
Charity registration number 296454
Registered office Coram Campus
41 Brunswick Square
London
WC1N 1AZ
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Bankers National Westminster Bank plc
Chancery Lane and Holborn Branch
332 High Holborn
London
WC1V 7PS
CAF Bank Limited
25 Kings Hill Avenue
Kings Hill
West Malling
Kent
ME19 4JQ

Coram Beanstalk 1

Chairman’s statement 31 March 2021

In the period 2019-20, the first year of full operation as a member of the Coram group, Coram Beanstalk was able to support more than 10,000 children in 1,300 schools, thanks to the work of thousands of volunteers bringing a new chapter into their lives.

During 2020-21, schools were substantially closed and, as a result, 407 Coram Beanstalk volunteers were able to support 1,277 children face to face, a significant reduction as a result of pandemic control measures. However, with the help of our corporate partners, and especially the Very Group we were able to extend benefit of resources and expertise in the home with reach of up to 64,000 children through our Story-time on-line reading events.

With the dedication and flexibility of our staff and volunteers and use of the government’s Job Retention Scheme, as well as support of the Coram group, Coram Beanstalk has been able to navigate the biggest disruption to schools since the second world war and stands ready to respond to the needs of the pandemic generation.

This report is made at a critical juncture as pandemic control measures have been eased and schools are working to re-establish a full timetable of face to face delivery after a year of unprecedented challenges and discontinuities.

There is no doubt that our work has never been more important and the evaluation and impact assessment completed to a new level this year shows clearly the gains that can be made for each child. Coram Beanstalk knowns that it is direct in person support which boosts learning outcomes for those who need help the most.

The shape and scale of the future now depends upon the commitment and capacity of schools to enable children to gain that direct support they need to catch up and level up attainment, and on the recruitment of an increasingly diverse group of volunteers able to manage the health risks around them and meet the needs of children across the country.

Like other charities - we face a tough year ahead but we know we can depend upon the support of so many people as we work to ensure the best possible chance for every child and rededicate ourselves to rising to that challenge.

Jill Pay Chairman

Coram Beanstalk 2

Trustees’ report 31 March 2021

The Trustees, who are the directors for company law purposes, present their report and financial statements of Coram Beanstalk for the year ended 31 March 2021.

The financial statements have been prepared in accordance with the accounting policies set out on pages 18 to 21 and comply with the charitable company’s Memorandum and Articles of Association, applicable law and Accounting and Reporting by Charities: Statement of Recommended Practice (SORP 2015) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

This report has been prepared in accordance with Part VIII of the Charities Act 2011.

Scope of the financial statements

The annual report and financial statements are in respect to Coram Beanstalk as a standalone charity only.

Coram Beanstalk is part of the Coram group and its ultimate controlling party, The Thomas Coram Foundation for Children (Coram), Registered Charity No. 312278, consolidates the financial statements of Coram Beanstalk with its own and those of other group members. Coram is the sole member of Coram Beanstalk.

Coram Beanstalk owns and controls the operations of a wholly owned subsidiary company, VRH Trading Limited (Company Registration Number 02835527) which was dormant throughout the period.

Objectives and activities

The main objective of the charity is to provide one-to-one literacy support to children aged 3 to 13 years old. Our volunteer reading helpers work with children who are falling behind with their reading to improve their literacy as well as their communication skills and confidence. The schools we work with pay a contribution to Coram Beanstalk for high quality, good value and bespoke reading support.

Structure, governance and management

Coram Beanstalk was established in 1973. The organisation is a charitable company limited by guarantee, incorporated on 19 February 1987, Company Registration Number 02101719 (England and Wales) and registered as a charity on 4 July 1991 Charity Registration Number 296454).

The company is established under a Memorandum of Association which sets out the objects and powers of the charitable company – the company’s object being to advance the education of children particularly by helping them to overcome reading difficulties. The company is governed under its Articles of Association which were last amended on 1 February 2019.

On 1 February 2019 Beanstalk amalgamated with The Thomas Coram Foundation for Children, a registered charity (Charity Registration Number 312278), known as Coram. From this date Coram became the sole member of Beanstalk and Beanstalk became a direct subsidiary of Coram. The company’s name from this date changed to Coram Beanstalk.

Coram Beanstalk 3

Trustees’ report 31 March 2021

Structure, governance and management (continued)

Since becoming part of the Coram Group, Coram Beanstalk now operates in line with the group approach with Coram Beanstalk trustees now participating in sub-committees to the parent trustee board including membership of the Audit Committee by the Coram Beanstalk Treasurer.

As a result of Coram Beanstalk becoming part of the Coram Group, the Managing Director and all support functions are provided by Coram (with costs recharged to Coram Beanstalk) and Coram Beanstalk operates to group-wide policies and procedures. Compliments and complaints are dealt with in accordance with our Compliments and Complaints Policy, which can be found at https://www.beanstalkcharity.org.uk/compliments-and-complaints-policy.

Key management personnel

The Board considers that Coram group CEO and Coram Beanstalk Managing Director comprise the key management personnel of the charity in charge of directing, controlling, running and operating the Charity on a day to day basis. Details of higher paid employees and other information on staff costs is set out in Note 4 to the accounts.

The remuneration of key management personnel is based on an internal assessment of the scope of the individual role and an individual’s performance within that role. Internal benchmarking is conducted to ensure that remuneration levels within the Coram group are consistent for the level of responsibilities. Remuneration is agreed by the Coram Group Senior Management Team consisting of the Chief Executive, Chief Finance Officer and the Director of Operations.

None of the Trustees received any remuneration in connection with their duties as Trustees or key management of the charity.

Recruitment and training of trustees

Trustees are appointed via the Coram Nominations Committee for a four year term which is renewable for one further term. The Chairman is appointed by the Coram board from amongst their number. All new Trustees undergo an induction programme which incorporates a history of the charity, review of its work including the current challenges faced by the charity, its governance structure, and their individual roles and responsibilities and have access to development training.

At least one Trustee on the Board is always a trained reading helper. Trustees are invited to ‘Away Days’ which are held to consider strategic issues and determine future activity. The Trustees maintain a good working knowledge of charity and company law and regularly review their breath of skills and organisational development needs.

Coram Beanstalk 4

Trustees’ report 31 March 2021

Structure, governance and management (continued)

Recruitment and training of trustees (continued)

Trustees are also directors for the purposes of company law. The Trustees who served during the period and up to the date on which this report was approved were as follows:

Appointed/Resigned
Jill Pay (Chairman)
Hanif Barma (Treasurer) Appointed 24 June 2020
Magdalene Bayim-Adomako
Roberta Jacobson Resigned 15 February 2021
Kim Johnson
Saana Karki
Sarah Macpherson Resigned 27 September 2021
Viral Mehta
Phillip Nelson

Achievements and performance 2020-21

This has been a challenging year for Coram Beanstalk with children mainly being educated at home and reading helpers being unable to go into schools. Our usual level of service supporting children in school was completely disrupted and yet 402 volunteers still directly supported 1,277 children, a tribute to their dedication and schools commitment to reading help.

In the face of the greatest discontinuity of learning for any generation since the second world war, the organisation focussed on ensuring we could provide support to children at home. Information on our website and YouTube channel helped parents support their children’s reading and our exceptional partnership with Very Group enabled us to extend reach in interest through, for example, development of celebrity stories. 64,000 online visitors took part in our most popular Storytime event sponsored by Very.

We offered remote reading online by volunteers but the clear message from schools was that they did not want online reading help but rather wanted volunteers back in to school as soon as it was safe to do so.

We therefore advanced the recruitment and training of volunteers by online means and, throughout the pandemic, held virtual reading groups, coffee mornings and author talks to keep our reading helpers engaged in ongoing development so that maximum support can be given to schools in helping children to catch up on lost time and support. This was very well received and means we can speed up recruiting volunteers for the future.

As a result of the maximum use of furlough and timely decision-making, we were able to save cost and to end the year with a small surplus, placing the organisation in the best possible position to support children and face the future.

Coram Beanstalk 5

Trustees’ report 31 March 2021

Achievements and performance 2020-21 (continued)

Feedback about our service in 2020-21

This year most of our feedback has been through our support teams contact with schools. We know they welcomed the support we offered and at our peak we delivered reading helpers to 62% of our schools, a significant achievement. This was in the summer term. Feedback also told us that 98% of schools wanted in person support rather than online.

Since lockdown in January, many of our children haven’t picked up a book or even been read to. We are now trying to support our most deprived and vulnerable children to gain an interest in books again through the Beanstalk scheme. The children constantly ask when it is my reading day and we have a queue of children ready and willing to take part, if we could have a reader for each year group we definitely would – sadly we just don’t have the space. We have worked with Beanstalk for four years now and each year we see a massive improvement with the children’s reading levels and confidence. It is a fabulous organisation.

Caroline Smith, Looked After Children’s Lead, Middlefield Primary

Public benefit

Coram Beanstalk has made a significant benefit this financial year despite the reduced footprint of work. Making resources and helpful information available to teachers and parents has significant reach to children at home with one resource on our website receiving over 64,000 hits.

The Trustees have had regard to the Charity Commission’s guidance on public benefit when considering the charitable company’s aims and achievements.

One school in Bolton set a lockdown challenge to read 50 books in the year to promote a love of reading. Inspired to achieve it before he turned 8, Milan Kumar completed this in three months reading books by David Walliams, JK Rowling and the autobiographies of Nelson Mandela and Albert Einstein. A keen reader herself, Coram Beanstalk’s Patron, HRH The Duchess of Cornwall, wrote to Milan to congratulate him.

What we will do in the year 2021-22

Research on the impact of the pandemic on children shows how much learning loss there has been especially in essential skills such as reading and with disadvantaged 7 year olds estimated to be seven months behind their more affluent peers. This clearly points to the need for Coram Beanstalk’s support and how much public benefit we bring and the objective in 2021-22 is, subject to pandemic control measures, to re-establish the maximum possible presence of our reading volunteers in schools.

We celebrated Black History Month in October by sharing books such as Vashti Harrison’s Exceptional Men in Black History and Hidden Figures by Margot Shetterly, stimulating conversations with children about realising your potential.

Coram Beanstalk 6

Trustees’ report 31 March 2021

Achievements and performance 2020-21 (continued)

What we will do in the year 2021-22 (continued)

Award winning author/illustrator Rob Biddulph launched a World Book Day competition in March with support from Crayola. McCarthy and Stone Foundation’s continued support included a Send A Smile pen pal initiative to tackle the loneliness of their older home owners during lockdown and enable Coram Beanstalk further to support school children with literacy.

We will sustain such partnership approaches in the coming year and will complement our continuing reading focus with a new pilot delivery in numeracy (supported by TPICAP) and our thanks go also to the DHL Foundaton and Addleshaw Goddard for their fundraising support.

Coram Beanstalk remains dedicated to matching its volunteers in schools and areas of greatest need and to securing a sustainable future as schools help children to recover from the exceptional impact of the pandemic upon their development.

Risk management

The Trustees have identified the major risks to which the charity may be exposed and consider that the systems in place are adequate to mitigate those risks. The Trustees have formalised procedures in place for reviewing risks each year. The key risks that the charity faces, along with the relevant mitigating actions, are:

Coram Beanstalk 7

Trustees’ report 31 March 2021

Donated services

We are truly grateful to all of our volunteers who donate their time every week to support children with their literacy skills and without whom we would not be able to provide such a vital service.

We are also extremely thankful to the various organisations and individuals who have financially supported us and hosted Coram Beanstalk meetings throughout the period, who have provided us with invaluable legal and other advice across a variety of subjects and who have kindly donated prizes for fundraising events.

Financial review and reserves policy

Coram Beanstalk made an overall surplus for the year of £8,228 (2020: £325,894). This included a surplus on unrestricted funds of £68,528 (2020: £308,629) and a deficit on restricted funds of £60,300 (2020: surplus of £17,265).

Coram Beanstalk aims to hold a reserve of three months budgeted expenditure as its general reserve. This will:

At the end of the 2020-21 financial year our total funds stood at £123,202 which included restricted funds of £108,700 for expenditure on specific projects and funds representing the charity’s tangible fixed assets of £5,000.

General reserves currently stand at £9,502, compared to a target of £225,000. To build reserves to targeted levels, Coram Beanstalk will focus on generating unrestricted fundraising income wherever possible, broadening the range of programmes offered to increase earned income and by significantly reducing fixed costs. Trustees also recognise the need to regularly monitor reserves alongside financial performance to ensure an adequate level of reserves is maintained. This policy will be reviewed annually in the light of (i) any gap between target and actual reserves and (ii) progress with any actions which may be required to ensure adequate reserves are maintained.

Fundraising policy

Coram Beanstalk is part of the Coram charitable group, and fundraising activities are undertaken and assured by the central fundraising department. As the parent charity, Coram is registered with the Fundraising Regulator and adheres to the Fundraising Code of Practice. Our Privacy Policy can be found on our website at www.coram.org.uk/privacy. There were no complaints made to Coram Beanstalk in the year. If you have any comments or concern, please contact fundraising@coram.org.uk.

Coram Beanstalk 8

Trustees’ report 31 March 2021

Statement of Trustees’ responsibilities

The Trustees (who are also directors of Coram Beanstalk for the purposes of company law) are responsible for preparing the Trustees’ Report and 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 income and expenditure of the charitable company for that period.

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

The Trustees are responsible for keeping proper 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.

Each of the Trustees confirms that:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

Approved by the Trustees and signed on their behalf by:

Jill Pay

Approved by the Trustees on 9 December 2021

Coram Beanstalk 9

Independent auditor’s report 31 March 2021

Independent auditor’s report to the member of Coram Beanstalk

Opinion

We have audited the financial statements of Coram Beanstalk (the ‘charitable company’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and the notes to the financial statements. 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:

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.

Coram Beanstalk 10

Independent auditor’s report 31 March 2021

Other information

The other information comprises the information included in the annual report and financial statements, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the annual report and financial statements. 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.

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:

Matters on which we are required to report by exception

In the light of the 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 including the strategic 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:

Coram Beanstalk 11

Independent auditor’s report 31 March 2021

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 but 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. 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

Coram Beanstalk 12

Independent auditor’s report 31 March 2021

Auditor’s responsibilities for the audit of the financial statements (continued)

We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

Coram Beanstalk 13

Independent auditor’s report 31 March 2021

Auditor’s responsibilities for the audit of the financial statements (continued) A further description of our responsibilities is available on the Financial Reporting Council’s website at 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 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 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Amanda Francis (Senior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

17 December 2021

Coram Beanstalk 14

Statement of financial activities Year to 31 March 2021

(incorporating the income and expenditure account)

Notes
Unrestricted
funds
£


Restricted
funds
£		 2021
Total
funds
£		 2020
Total
funds
£
Income from:
Donations, grants and legacies
1,9
Charitable activities
. Schools’ contributions
Interest receivable
Other sources
. Coronavirus Job Retention Scheme
Total income
Expenditure on:
Raising funds
. Fundraising activities
Charitable activities
. Advancing the education of children
Total expenditure
2
Net income (expenditure) and net
movement in funds
5
Reconciliation of funds:
Balance brought forward at 1 April
2020
Balance carried forward at 31 March
2021
513,724
408,870
142
220,348
89,754

—


—		 603,478
408,870
142
220,348		 1,317,445
895,803
285
—
1,143,084
89,754		 1,232,838 2,213,533
134,546
940,010
—

150,054		 134,546
1,090,064		 232,650
1,654,989

1,074,556
150,054		 1,224,610 1,887,639

68,528
(54,026)
(60,300)
169,000		 8,228
114,974		 325,894
(210,920)
14,502
108,700		 123,202 114,974

All of the charity’s activities derived from continuing operations during the above two financial periods.

The charity has no recognised gains and losses other than those shown above.

A full comparative statement of financial activities is included in the appendix to these financial statements.

Coram Beanstalk 15

Balance Sheet 31 March 2021

Notes
2021
£		 2021
£		 2020
£		 2020
£
Fixed assets
Investment in subsidiary
6
Current assets
Debtors
7
Cash at bank and in hand
Current liabilities
Creditors: amounts falling due
within one year
8
Net current assets
Total assets less total liabilities
The funds of the charity:
Restricted funds
9
Unrestricted funds
. General funds
9
. Designated funds
9
Total funds

84,494
270,517		 5,000
118,202		 687,555
545,090		 5,000
109,974
355,011

(236,809)		 1,232,645
(1,122,671)


9,502

5,000		 (59,026)
5,000
123,202 114,974
108,700
14,502		 169,000
(54,026)
123,202 114,974

Approved by the Trustees of Coram Beanstalk Company Registration Number 02101719 (England and Wales), and signed on their behalf by:

Jill Pay

Chairman of Trustees

Approved on: 9 December 2021

Coram Beanstalk 16

Statement of cash flows Year to 31 March 2021

A
B
C

 Notes Notes Notes
2021
Total
funds
£
2021
Total
funds
£		 2020
Total
funds
£
Cash flows from operating activities:
Net cash (used in) provided by operating activities
A
Cash flows from investing activities:
Interest received
Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 April 2020
B
Cash and cash equivalents at 31 March 2021
B
(274,715)		 419,446
142 285
142 285
(274,573)

545,090		 419,731
125,359

270,517		 545,090
Net movement in funds (as per the statement of financial
activities)
Adjustments for:
Interest received
Decrease in debtors
Decrease in creditors
Net cash(used in) provided by operating activities		 8,228
(142)
603,061
(885,862)		 325,894
(285)
357,278
(263,320)
(274,715) 419,446
Analysis of cash and cash equivalents
Total cash and cash equivalents:Cash at bank and in hand		 2021
£		 2020
£
270,517 545,090
Analysis of changes in net debt At 1 April
2020
£		 Cash
flows
£

Other
non-cash
flows
£		 At 31
March
2021
£
270,517
Total cash and cash equivalents:Cash at
bank and in hand		 545,090 (274,573) —

Coram Beanstalk 17

Principal accounting policies 31 March 2021

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.

Basis of preparation

These financial statements have been prepared for the year to 31 March 2021 with comparative information provided in respect to the year ended 31 March 2020.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.

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 United Kingdom and Republic of Ireland (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

The financial statements are presented in sterling and are rounded to the nearest pound.

Critical accounting estimates and areas of judgement

Preparation of the financial statements requires the Trustees and management to make significant judgements and estimates.

The items in the financial statements where these judgements and estimates have been made include;

Assessment of going concern

The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The Trustees have made this assessment in respect to a period of at least one year from the date of approval of these financial statements.

The Trustees acknowledge and recognise the continuing impact of the COVID-19 pandemic on the charity, its stakeholders and on wider society.

Coram Beanstalk 18

Principal accounting policies 31 March 2021

Assessment of going concern (continued)

Coram Beanstalk is working towards increasing its unrestricted reserves in the medium term by focusing on generating unrestricted fundraising income wherever possible, broadening the range of programmes offered, to increase earned income and by significantly reducing fixed costs. Over the year to 31 March 2021 good progress was made towards these goals. However, the trustees acknowledge that the Covid-19 pandemic has presented new challenges and that the fundraising climate will be difficult over the next couple of years. Therefore, the charity’s future plans and budget have been reviewed and amended to mitigate risks and the Trustees will continue to keep income, expenditure and cash flow under review. The charity also continues to have the support of its parent entity, Coram, which has given an undertaking to provide financial support if and when needed.

Consequently, the Trustees have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The Trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due.

Basis of consolidation

Coram Beanstalk is part of a larger group and its ultimate controlling party, Coram, consolidates the financial statements of Coram Beanstalk with its own and those of other group members.

The financial statements of Coram Beanstalk and its subsidiary are not consolidated as its subsidiary, VRH Trading Limited, was dormant in the period and its results are immaterial.

Income recognition

Income is recognised in the period in which the charity is entitled to the income and the amount can be measured reliably and it is probable the income will be received. Income is deferred only when the charity has to fulfil conditions before becoming entitled to it or where the donor or funder has specified that the income is to be expended in a future accounting period.

Income comprises donations, grants, schools contribution income and interest receivable.

Grants and donations are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations and grants pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

In accordance with the Charities SORP FRS 102 volunteer time is not recognised.

Coram Beanstalk 19

Principal accounting policies 31 March 2021

Income recognition (continued)

Legacies are included in the statement of financial activities when the charity is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the charity. Entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, but the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title of the asset having being transferred to the charity.

Schools contribution income is recognised to the extent that it is probable that the economic benefits will flow to the charity and the revenue can be measured reliably. Income is measured at the fair value of the consideration received or receivable. Amounts received in advance are treated as deferred income within creditors.

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.

Income from the Coronavirus Job Retention Scheme is credited to the statement of financial activities once the charity is entitled to the funding and when the amount receivable has been quantified.

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment 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.

All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings. The classification between activities is as follows:

Coram Beanstalk 20

Principal accounting policies 31 March 2021

Expenditure recognition (continued)

Certain expenditure is attributable directly to specific activities and has been included in those cost categories. Certain other costs, which are attributable to more than one activity, are apportioned. These support costs relate to the central costs of supporting the charitable activities and are allocated to the various services in the same proportion as the direct costs on those services.

All expenditure is stated inclusive of irrecoverable VAT.

Investment in subsidiary

The charity’s investment in its wholly owned trading subsidiary is included on the balance sheet at cost.

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

Fund accounting

Restricted funds are to be used for specified purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund, together with a fair allocation of management and support costs.

Unrestricted funds are donations and other income received or generated for the objects of the charity without further specified purpose and are available as general funds.

Designated funds represent monies invested in the trading subsidiary’s share capital.

Pensions

Contributions to defined contribution pension schemes are charged to the statement of financial activities when they are payable to the plan or scheme. The charity’s contributions are restricted to the contributions disclosed in note 4. The charity has no liability beyond making its contributions and paying across the deductions for the employees’ contributions.

Coram Beanstalk 21

Notes to the financial statements 31 March 2021

1 Donations, grants and legacies

Donations, grants and legacies
2021
Total
funds
£
75,533
75,000
50,000
—
—
313,191
513,724		 2020
Total
funds
£
Donations and grants:
. McCarthy & Stone
. DHL UK Foundation
. Constance Travis Charitable Trust
. Anonymous Donor
. Legacy (C.Cook)
. Grants and donations of less than £25,000 each		 92,775
50,000
25,000
30,000
35,000
637,815
870,590

The above table shows unrestricted income only. Restricted income is shown in note 9.

2 Total expenditure

Total expenditure
Staff
costs
(note 4)
£		 Other
direct
costs
£		 Support
staff
costs
(note 4)
£		 Other
support
costs
(note 3)
£		 Governance
costs
(note 3)
£		 2021
Total
funds
£



2020
Total funds
£
Cost of generating funds
Fundraising activities
Charitable activities
Advancing the education of
children
Year ended 31 March 2021		 —
726,802		 96,451
26,989		 9,243
69,658		 27,768
258,445		 1,084
8,170		 134,546
1,090,064
232,650

1,654,989
726,802 123,440 78,901 286,213 9,254 1,224,610
1,887,639

Coram Beanstalk 22

Notes to the financial statements 31 March 2021

3 Governance and other support costs

Governance and other support costs
2021
Total
funds
£		 2020
Total
funds
£
Governance costs
Legal and professional fees
Audit fees
. Current year
. Prior year
Other support costs
Technology costs
Indirect staff costs, including training, travel and subsistence costs
Premises related costs
Consultancy
Other
Intercompany service charge
Interest accrued		 1,554
7,700
—		 63
7,250
8,926
9,254 16,239
67,360
979
29,980
8,441
56,131
123,322
—		 54,049
40,300
46,509
4,900
72,350
231,342
2,600
286,213 452,050

Staff costs were as follows:

2021
Total
funds
£		 2020
Total
funds
£
Salaries and wages
Social security costs
Pension contributions
Redundancy
Apprenticeship levy		 692,670
55,783
36,722		 1,017,689
88,538
56,766
785,175
16,969
129		 1,162,993
44,169
436
802,273 1,207,598

No employee earned between £90,000 to £100,000 (2020: one) and one employee earned between £60,000 to £70,000 (2020: one).

Coram Beanstalk paid contributions of £36,322 into a defined contribution pension scheme (2020: £56,766).

Key management personnel are defined as the Trustees and the Managing Director of Coram Beanstalk. The total remuneration (including taxable benefits and employer’s pension and national insurance contributions) of the key management personnel of the charity was £75,969 (2020: £82,561).

Seven members of staff were made redundant during the year (2020: 4). Redundancy costs totalled £16,969 (2020: £76,761), comprising gross final payments (including pay in lieu of notice) of £13,292 (2020: £8,885), employer’s national insurance contributions of £1,213 (2020: £3,539) and employer’s pension contributions of £53 (2020: £404).

Coram Beanstalk 23

Notes to the financial statements 31 March 2021

Travel expenses incurred by Trustees in the year were £nil (2020: £175 by one trustee). Trustee donations in aggregate were £nil (2020: £100).

The average number of employees for the year were as follows:

5


6
 2021
No.		 2020
No.
Services (provision of charitable activities)
Fundraising
Central Office		 32
—
1		 35
4
4
33 43
Net income (expenditure) and net movement in funds
This is stated after charging:		 2021
£		 2020
£
Auditor’s remuneration – audit fees
Interest accrued		 8,170
—		 7,250
2,600
Investment in subsidiary 2021
£		 2020
£
Investment in VRH TradingLimited at cost 5,000 5,000

The subsidiary, VRH Trading Limited a company incorporated in England (Company Registration Number 02835527), has an allotted share capital of 5,000 ordinary £1 shares of which 4,999 were issued at par to Coram Beanstalk (formerly Volunteer Reading Help trading as Beanstalk). The remaining £1 share is held in trust for the charity. The company was dormant throughout the period.

Details of amounts shown in the financial statements of VRH Trading Limited at 31 March 2021 were as follows:

7
 2021
£		 2020
£
Capital and reserves 5,000 5,000
Debtors 2021
£		 2020
£
School contributions and similar debtors
Other debtors and prepayments		 —
84,494		 663,871
23,684
84,494 687,555

Coram Beanstalk 24

Notes to the financial statements 31 March 2021

8 Creditors: amounts falling within one year

Creditors: amounts falling within one year
2021
£		 2020
£
Expense creditors
Amounts owed to group undertakings
Taxation and social security
Amount due to schools (refunds)
Other creditors and accruals
Deferred income (see below)
Trustee loans (see note 11)		 6,960
28,336
9,754
13,760
14,431
163,568
—		 34,440
147,690
26,497
—
21,095
759,712
133,237
236,809 1,122,671

Deferred income relates to school contributions received in relation to the subsequent financial year:

£
Balance at 1 April 2020
Amounts deferred in current period
Amounts released to income
Balance at 31 March 2021		 759,712
163,568
(759,712)
163,568

9 Movements in funds

Movements in funds
At 31
March
2020
£		 Income
£		 Expenditure
£		 At 31
March
2021
£
Restricted funds
The Dulverton Trust
St Johns Foundation
Porticus UK
Rank Foundation
Rank Foundation (DCMS Covid
Recovery Fund)
Constance Travis Charitable Trust
John Lyon's Charity
St James’s Place Charitable Foundation
ICAP Charity
Other funds below £10,000
Total restricted funds
Unrestricted funds
General funds
Designated funds
. Subsidiary share capital
Total unrestricted funds
Total funds		 10,000
15,000
30,000
20,000
—
10,000
—
—
80,000
4,000		 —
—
—
10,000
25,000
—
23,700
24,854
—
6,200		 (10,000)
(15,000)
(4,000)
(20,000)
(25,000)
(10,000)
(23,700)
(24,854)
(7,300)
(10,200)		 —
—
26,000
10,000
—
—
—
—
72,700
—
169,000
(59,026)
5,000		 89,754
1,143,084
—		 (150,054)
(1,074,556)
—		 108,700
9,502
5,000
(54,026) 1,143,084 (1,074,556) 14,502
114,974 1,232,838 (1,224,610) 123,202

Coram Beanstalk 25

Notes to the financial statements 31 March 2021

9 Movements in funds (continued)

Restricted funds

The Dulverton Trust funds our charitable activities in the North East of England.

St John’s Foundation funds the recruitment, training and support of St John’s Foundation residents to become volunteer reading helpers to support children in Bath and North East Somerset

Porticus UK funds the Impact on Literacy Levels Comparison Study. This study will evaluate the impact of reading support to children.

Rank Foundation funds the Creating Readers training course for those who wish to support children’s reading development.

Constance Travis Charitable Trust funds the recruitment, training and support of volunteer reading helpers to provide reading support for children from disadvantaged backgrounds.

John Lyon's Charity funds our London Reading Project.

St. James’s Place Charitable Foundation funds our charitable activities in Gloucestershire

ICAP Charity Day funds the development of a pilot maths programme.

10 Analysis of net assets between funds

Analysis of net assets between funds
Restricted
funds
£		 Unrestricted
funds
£		 Total
funds
£
Investments
Net current assets
Creditors: payable within one year
Net assets at 31 March 2021		 —
108,700
—		 5,000
246,311
(236,809)		 5,000
355,011
(236,809)
108,700 14,502 123,202

11 Trustee loans

On 27 November 2018, Beanstalk entered into loan agreements with Jamie Pike and Paul Dean, who were both trustees of Beanstalk until 28 January 2019. The loans enabled Coram Beanstalk to draw down up to £100,000 and £30,000 (£130,000 in aggregate) from Jamie Pike and Paul Dean respectively, with any relevant amounts being repayable by 27 November 2020 and interest being accrued at 2% per annum and repayable at the same date. £65,000 (£50,000 from Jamie Pike and £15,000 from Paul Dean) was drawn down in December 2018 and a further £65,000, in the same proportions, was drawn down in January 2019.

Repayment of both loans including interest were made during 2020. The loan from Jamie Pike was repaid in two stages; one instalment in May 2020 of £51,463; and the balance in July 2020 of £51,476. The loan from Paul Dean was repaid in May 2020, totalling £30,843.

Coram Beanstalk 26

Notes to the financial statements 31 March 2021

12 Ultimate parent undertaking

The Thomas Coram Foundation for the Children (‘Coram’), a registered charity with Charity Registration Number 312278, is the sole member of Coram Beanstalk.

The financial statements do not include disclosure of transactions between Coram Beanstalk and Coram. As a 100% controlled subsidiary undertaking, Coram Beanstalk is exempt from the requirement to disclose such transactions under Financial Reporting Standard 102 Section 33.

13 Liability of member

The charity is constituted as a company limited by guarantee. In the event of the charity being wound up, the member is required to contribute an amount not exceeding £1.

14 Taxation

Coram Beanstalk is a registered charity and, therefore, is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

Coram Beanstalk 27

Appendix:

Comparative statement of financial activities Year to 31 March 2020

Notes Unrestricted
funds
£		 Restricted
funds
£		 2020
Total
funds
£
Income from:
Donations, grants and legacies
Charitable activities
. Schools contributions
Interest receivable
Total income
Expenditure on:
Raising funds
. Fundraising activities
Charitable activities
. Advancing the education of children
Total expenditure
2
Net income and net movement in funds
Reconciliation of funds:
Balance brought forward at 1 April 2019
Balance carried forward at 31 March
2020		 870,590
895,803
285		 446,855
—
—		 1,317,445
895,803
285
1,766,678 446,855 2,213,533
176,988
1,281,061		 55,662
373,928		 232,650
1,654,989
1,458,049 429,590 1,887,639
308,629
(362,655)		 17,265
151,735		 325,894
(210,920)
(54,026) 169,000 114,974

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

Coram Beanstalk 28

Appendix:

Comparative notes to the financial statements Year to 31 March 2020

2 Total expenditure

Staff
costs
(note 4)
£		 Staff
costs
(note 4)
£		 Other
direct
costs
£		 Support
staff costs
(note 4)
£		 Other
support
costs
(note 3)
£		 Other
support
costs
(note 3)
£		 Governance
costs
(note 3)
£		 Governance
costs
(note 3)
£		 Year ended
31 March
2020
Total funds
£
Cost of generating funds
Fundraising activities
Charitable activities
Advancing the education of children
Year ended 31 March 2020		 126,371
891,548		 24,917
186,835		 23,548
166,131		 55,798
396,252		 2,016
14,223		 232,650
1,654,989
1,017,919 211,752 189,679 452,050 16,239 1,887,639
Movements in funds At 31
March
2019
£
Restricted funds
The Dulverton Trust
The Frank & Phills Scotto Trust
The People’s Postcode Lottery Dream
Fund
St Johns Foundation
Garfield Weston Foundation
Porticus UK
King Baudouin Foundation
Rank Foundation
Ernest Hecht Charitable Foundation
Constance Travis Charitable Trust
The Zochonis Charitable Trust
John Lyon's Charity
St James’s Place Charitable Foundation
ICAP Charity
Other funds below £10,000
Total restricted funds
Unrestricted funds
General funds
Designated funds
. Subsidiary share capital
Total unrestricted funds
Total funds		 12,500
12,557
77,468
—
—
—
—
—
—
—
—
—
—
—
49,210		 30,000
29,924
—
30,000
50,000
30,000
24,873
30,000
12,500
25,000
15,000
23,700
24,216
80,000
41,642		 (32,500)
(42,481)
(77,468)
(15,000)
(50,000)
—
(24,873)
(10,000)
(12,500)
(15,000)
(15,000)
(23,700)
(24,216)
—
(86,852)		 10,000
—
—
15,000
—
30,000
—
20,000
—
10,000
—
—
—
80,000
4,000
151,735
(367,655)
5,000		 446,855
1,766,678
—		 (429,590)
(1,458,049)
—		 169,000
(59,026)
5,000
(362,655) 1,766,678 (1,458,049) (54,026)
(210,920) 2,213,533 (1,887,639) 114,974

9 Movements in funds

Coram Beanstalk 29

Appendix:

Comparative notes to the financial statements Year to 31 March 2020

9 Movements in funds (continued)

The purpose for which the monies were received are explained in note 9 to the accounts and below:

The Frank & Phillis Scotto Trust funds our charitable activities in the North East of England

The People’s Postcode Lottery Dream Fund funds our Story Starters project, whereby volunteers work with 4 and 5 year olds in educational settings. Volunteers are committing to working with 3 children for a total of 2 hours per week.

Garfield Weston Foundation funds the core costs of Coram Beanstalk

King Baudouin Foundation funds our charitable activities in the West Midlands.

Ernest Hecht Charitable Foundation funds the recruitment, training and support of volunteer reading helpers to provide reading support for children from disadvantaged backgrounds.

The Zochonis Charitable Trust funds the recruitment, training and support of volunteer reading helpers to support children in Greater Manchester.

10 Analysis of net assets between funds

Restricted
funds
£		 Unrestricted
funds
£		 Total funds
£
Investments
Net current assets
Creditors: payable within one year
Net assets(liabilities) at 31 March 2020		 —
169,000
—		 5,000
1,063,645
(1,122,671)		 5,000
1,232,645
(1,122,671)
169,000 (54,026) 114,974

Coram Beanstalk 30