## Financial Statements
for the year ended 31 March 2021
## Riverside Foundation
Charity number: 513727
## Financial Statements
## for the year ended 31 March 2021
## Riverside Foundation
Registered Charity number: 513727
|**Contents**||
|---|---|
|Trustees, Professional Advisors and Registered Office|3|
|Welcome from our Chair|4|
|Review of Activities|5|
|Report of the Trustees|6 - 9|
|Independent Auditor’s Report|10 - 12|
|Statement of Financial Activities|13|
|Statement of Financial Position|14|
|Notes to the Financial Statements|15 - 19|
2
## **Trustees, Professional Advisors and Registered Office**
## **Trustees**
Mark Cullinan Sarah Paton (resigned 3 November 2020) Linda Wright Cameron Dougherty (appointed 4 August 2020) Clarine Stenfert (appointed 3 November 2020 and resigned 19 June 2021)
## **Company secretary**
Sara Shanab
## **Registered auditors**
KPMG LLP 1 Sovereign Street Leeds LS1 4DA
## **Trust custodian**
BNY Mellon One Canada Square London E14 5AL
## **Investment manager**
Blackrock Investment Managers 33 King William Street London EC4R 9AS
## **Principal banker**
National Westminster Bank Plc 2-8 Church Street Liverpool L1 3BG
## **Principal solicitor**
Brabners Chaffe Street Horton House Exchange Flags Liverpool L2 3YL
## **Registered office**
2 Estuary Boulevard Estuary Commerce Park Liverpool L24 8RF
**Charity number** 513727
3
## **Welcome from our Chair**
In this unprecedented year, the work of the Riverside Foundation providing practical support to help people overcome obstacles for a better quality of life has never been more needed.
With the onset of the COVID-19 crisis in March 2020, the Foundation’s services adapted rapidly to delivering services remotely, and increasing our focus on proactively supporting people’s wellbeing. While there was a reduction in demand for services during the initial lockdown period, this recovered over the year, and our frontline staff responded magnificently in finding new ways to reach and support people.
Trustees acted quickly to release a £30,000 fund to support households facing immediate crisis. This was in place within a week of the Government’s ‘lock down’ and has provided much needed support to vulnerable households. Assistance to date has included food and fuel, baby milk and Wi-Fi to enable home working.
The Foundation continues to support a diverse range of projects aimed at promoting community action and cohesion, and breaking the cycle of poverty in neighbourhoods. It is closely aligned to Riverside, supporting its 2020-23 plan to put people at its heart, living in homes for the future and places to thrive in.
In 2020/21, The Riverside Foundation continued to focus on its three key priorities - employment and opportunities, neighbourhood and environment, and supporting vulnerable people.
We have continued to fund services to support people seeking employment and training, including our innovative Ladders of Aspiration fund, helping to pay for training and vocational courses. We also fund services providing advice and assistance on welfare benefits, and assist people in improving the affordability and efficiency of their utilities. Our intensive intervention service supports people who are in crisis. In addition, our ‘Helping Hands’ Fund enables us to provide immediate financial help to households in crisis by, for example: replacing a cooker; providing fuel top up vouchers or interview clothing.
During 2020/21, the Foundation funded Riverside to deliver projects which:
- Supported 614 people towards employment, delivering 221 people into jobs, 147 into formal training or volunteering and 6 into apprenticeships
- Delivered £3,179,737in cash gains/savings to people through welfare benefits advice, and £385,048 through affordable warmth advice, helping 1,987 people.
- Helped 171 households facing multiple challenges to sustain their tenancies
- Provided 74 people with professional training to help them achieve their ambitions through Ladders of Aspiration
- Provided grants to 254 households in crisis through our Helping Hands Fund
Trustees take a keen interest in all the projects supported through quarterly performance updates and management reports on outputs. Monitoring information continues to be supported by regular updates from project leads, who give insight into the impact of activities on people’s lives. This year Trustees have continued to meet virtually, and have also met with Riverside’s CEO Carol Matthews and new Chair Terrie Alafat.
I’ve been delighted to welcome two new Trustees to the Foundation Board this Year, Clarine Stenfert, who also sits on the Riverside’s Group Board, and Cameron Dougherty, who also sits on the Riverside Customer Voice Executive.
We continue to be grateful for the financial and practical support of The Riverside Group, which allows us to be ambitious in our plans.
During 2020/21, together with Riverside, the Foundation completed a review of the services it funds, to identify best practice and opportunities to improve their delivery and impact. The feedback from beneficiaries within the review was excellent and showed how valued, impactful and life-enhancing the services can be. The review identified a number of areas for improvement, and a programme of work has commenced to address these issues. This includes a greater focus on wellbeing and digital inclusion, enhanced referral processes to ensure people receive the right assistance in a timely way, and improved recording and reporting of outcomes and impacts. The move to remote working, necessitated by the Pandemic, has shown that services can be effectively delivered in this way for the majority of people, which will also deliver efficiencies - although some of our beneficiaries will continue to need face to face support, and this will resume when permitted.
We know that the recovery from the current crisis will be slow and that the services we fund are likely to be more vital than ever. We also know that we will need to take a flexible and responsive approach to meeting need during these unparalleled times.
For 2021/22 we have committed to continuing our key services of Employment and Training, Money Advice, Affordable Warmth and Intensive Intervention, and to maintain our Helping Hands and Ladders of Aspiration Fund.
**Mark Cullinan - Chair**
Mark Cullinan
Aug 6, 2021
Mark Cullinan (Aug 6, 2021 11:48 GMT+1)
4
## **Strategic Report**
The trustees present their strategic report for the year ended 31 March 2021.
## **Strategic objectives and activities**
The Riverside Foundation supports five strategic areas. These are:
- Employment and training
- Supporting vulnerable people
- Neighbourhood and community
- Poverty relief
- Health and wellbeing
The remaining Foundation funds are committed towards four projects under these themes: Employment and Training Support, Money Advice, Affordable Warmth Advice and Helping Hand funding for poverty relief. Trustees review this decision on an annual basis, taking all relevant factors into account.
The charity was established with the objective of working in the communities where TRGL operates, across England and Scotland. The Riverside Foundation works closely with people within those local communities and TRGL’s teams to identify areas of need, prioritise projects, and to ensure that grants are made in a coherent way across different areas of the country, in accordance with the charity’s objectives.
## **Business review**
Over the last year we’ve helped 3,781 people or households with our projects.
Employment & Training advice and guidance* – We’ve helped 614 customers develop their employment skills and 221 customers have moved into employment. We’ve also helped 117 into formal training or volunteering and 6 into apprenticeships.
Through our Ladders of Aspiration funding we’ve helped 74 customers to gain qualifications.
Through our Money Advice* service we’ve had 1987 referrals and helped increase income for customers by £3.18m.
Our Helping hand hardship fund has assisted 101 customers to buy new clothes or pay for travel costs to attend job interviews. A further 87 customers benefited by getting essential furniture like a bed, fridge or sofa. We’ve also helped 66 customers to get emergency energy top ups.
Our additional COVID-19 Helping Hands fund has enabled us to assist a further 234 people facing financial crisis through the pandemic.
Affordable warmth advisors* have helped 674 customers to save over £385k on energy bills.
We’ve helped support 171 customers facing multiple challenges to live independently and receive support for their needs through our Intensive Intervention scheme.
## **Future developments**
The Foundation remains committed to continuing to support existing projects. These include:
- Employment and Training,
- Ladders of Aspiration,
- Money Advice,
- Affordable Warmth Advice,
- Intensive Intervention; and
- Helping Hands funding
* Our Money Advice, Employment and Training and Affordable Warmth Services are part funded by The Riverside Group
5
## **Strategic Report (Continued)**
## **Principal risks and uncertainties**
The charity benefits from the treasury service provided by The Riverside Group Limited, with policies and procedures approved by the Board. Trustees benefit from detailed performance reviews by TRGL treasury team and overall investment performance is monitored by the trustees throughout the year. The overall funding strategy is approved by the trustees and projects supported are approved by trustees after reviewing a detailed project proposal. The subsequent release of funding to projects is subject to the achievement of stated project outcomes as agreed with project staff and/or delivery partners. Regular performance reports, including detailed analysis of KPIs, are presented to the trustees.
The Riverside Foundation only commits its current funds and does not anticipate future returns. It treats all future expenditure as committed even though future years’ spend is subject to project performance and an analysis of the external environment.
The Riverside Foundation is a grant giving body and has no operational activity. It is fortunate in that it is further protected from most operational risks which would more normally be associated with this type of activity because of its partnership with TRGL, thus benefitting from its well established operational and other controls. Our free access to functional experts, to a greater degree than most charities of our size, minimises the Riverside Foundation’s compliance, Governance and financial risks.
This year the Riverside Foundation reviewed its risk register and trustees receive updated reports on key areas from the register in order to ensure successful mitigation.
The trustees have considered the ongoing impact of COVID-19 and determined that it is unlikely to have a material impact on the charity’s Going Concern assessment as we determine housing to be a first order priority industry. There is limited risk to Riverside Foundation as it is funded entirely by The Riverside Group Limited. Despite the ongoing situation in relation to COVID-19, Riverside’s financial position is strong and it has a number of mitigating actions available if required to protect operational and financial resources. As such, it is not expected to be adversely impacted COVID-19.
6
## **Report of the Trustees**
The trustees present their report and audited financial statements for the year ended 31 March 2021.
## **Principal activity**
The Riverside Foundation was established under a Declaration of Trust dated 4 March 1983.
The Riverside Foundation is a registered charity (Reg No. 513727) with the object of promoting charitable purposes within and around the area where The Riverside Group Limited (TRGL) operates. In particular, this includes charitable purposes directed to the advancement of education, the prevention of ill health, the relief of poverty, distress and sickness occasioned by unemployment. The Riverside Foundation also looks to support charitable purposes connected with the environment, the advancement of arts and the provision in the interests of social welfare for recreation and leisure time occupation with the object of improving the conditions of life.
The Riverside Foundation operates independently of TRGL; a number of its trustees are members or former nonexecutive members of Riverside Group boards or committees. They agree the broad strategy, objectives and priorities, and approve all grant ‘giving’ and projects undertaken.
In terms of the day to day administration of the Riverside Foundation, TRGL provides the support from its Strategy and Planning Team to monitor projects and report to trustees, develop and coordinate requests for funding, provide management support for the trustee body. The Foundation also benefits from the support of a Governance Officer to service trustee meetings, a Finance Officer and marketing support as required.
## **Trustees**
The Declaration of trust provides that the Riverside Foundation shall appoint no fewer than four nor more than fifteen trustees by a vote of its committee. Trustees are not required to be re-appointed.
The trustees at the date of this report are detailed on page 3.
## **Trustee recruitment**
Trustee appointments are made in consultation with The Riverside Group Limited (TRGL) as the charity’s major donor. Trustee vacancies, when they arise, are promoted in an appropriate manner to seek a complimentary balance of skills and experience in relation to the current board.
The Riverside Foundation recognises that an effective board of trustees is essential if the charity is to be effective in achieving its objectives. Individual Trustees should have sufficient knowledge, both of trusteeship in general and of the charity’s activities, to enable them to carry out their role and to represent the charity at meetings and other events.
Care has been taken to ensure the board has appropriate skills and experience. The Foundation has adopted the board skills audit and whole board appraisal process used by TRGL, which itself has the highest governance rating from its own regulator.
## **Trustee training**
Trustees are offered relevant training as part of their development. They are encouraged to access training opportunities as appropriate and, as a minimum, to read the Charity Commission’s guidance, ‘The Essential Trustee’.
## **Trustee Remuneration**
The trustees of the Riverside Foundation receive no remuneration for their work. Any expenses claimed by trustees are donated by TRGL.
## **Basis of preparation**
The trustees have considered the ongoing impact of COVID-19 and determined that it is unlikely to have a material impact on the charity’s Going Concern assessment. As such the trustees continue to adopt the going concern basis.
7
## **Report of the Trustees (continued)**
## **Business Review**
The results for the period are detailed in the statement of comprehensive income on page 13.
The value of the net assets increased from £33,491 at 31 March 2020 to £404,699 at 31 March 2021.
The charity received income of £54,203 during the year from the return on existing resources.
The gain for the year, after administration expenses, grants paid out and investment gains or losses, amounted to £371,208. Income received is attributable to the interest received on investments, managed by the Blackrock investment manager, the investment itself has had a £322,997 increase due to a rise in the stock market.
At 31 March 2021, £1,839,333 of the charity’s funds was invested in unit trusts, investment trusts and listed investments on the London Stock Exchange.
## **Reserves**
The Riverside Foundation has reserves of £404,699 after committing £812,033 to projects for 2021-22.
In January 2021 Trustees approved the 2021/22 budget, and in April 2021 approved new operational targets to support projects and communities in various parts of the country. £144,764 is earmarked for projects related to supporting people from deprived communities into employment and training; £153,628 for money advice; £153,628 for affordable warmth support; £25,000 towards poverty relief via hardship funds; £189,370 intensive support for younger people at risk of losing their homes and in February 2020 a further £40,000 a year was agreed for Ladders of Aspiration. In addition, £19,000 is committed to fund a staff support role, £30,000 set aside for future small bids and £56,643 underspend from prior year commitments to be spent on the Ladders of Aspiration fund in 2021/22.
The Riverside Foundation will continue to seek support from fellow funders for these projects in order to build up reserves and finance where possible, in order to be able to fund further projects.
## **Reserves Policy**
Charities are required to have a policy for holding reserves and to set a financial level for them. The reserves cover the money that may be needed in case of a shutdown, money required to address future uncertainties; and building reserves sufficient for new projects. The reserve policy states that The Riverside Foundation will always keep a reserve of £30k to cover shut down costs. Reserves will be regularly reviewed and monitored to ensure the effectiveness of the policy in the light of the changing funding and financial climates and other risks.
## **Costs**
Any associated staff costs relating to the generation of funds, granting of donations, administration and/or other resources expended are funded by TRGL.
## **Taxation**
The charity is a registered charity and as such, is entitled to certain tax exemptions on income and profits from investments, and surpluses on any charitable activities carried on in furtherance of the charity’s primary objectives, if these profits and surpluses are applied solely for charitable purposes. The charity is not registered for VAT and accordingly, all expenditure is recorded inclusive of any VAT incurred.
## **Investment management and performance**
The investment policy was set in August 2020 on the basis of reports received from TRGL Treasury Function. There were additions to directives in January 2021 to enable board members to make decisions based on risk and liquidity needs. To ensure the investment policy remains fit for purpose, incorporates up to date best practice and takes into consideration current economic affairs the directives will be reviewed annually and the policy will be reviewed at least every three years.
The investment assets of the charity were managed during the year by Blackrock Investment Management (UK) Limited and are held as part of a pooled fund.
The fund is entitled to a rebate on all in-house purchases. This results in a rebate being applied to the quarterly management fee.
There is no direct or indirect investment in TRGL. In addition, there are no loans made to TRGL.
8
## **Report of the Trustees (continued)**
## **Public benefit**
The trustees have considered the Charity Commission’s guidance on public benefit and borne it in mind when shaping and planning our activities.
## **Disclosure of information to auditor**
The trustees who held office at the date of approval of this trustees’ annual report confirm that, so far as they are each aware, there is no relevant audit information of which the charity’s auditor is unaware; and each trustee has taken all the steps that he/ she ought to have taken as a trustee to make himself/ herself aware of any relevant audit information and to establish that the charity’s auditor is aware of that information.
## **Statement of trustees’ responsibilities in respect of the trustees’ annual report and the financial statements**
Under the trust deed of the charity and charity law, the trustees are responsible for preparing a Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations. The trustees are required to prepare the financial statements in accordance with UK Accounting Standards, including FRS 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland._
The financial statements are required by law to give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources for that period.
In preparing these financial statements, generally accepted accounting practice entails that the trustees:
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards and the Statement of Recommended Practice have been followed, subject to any material departures disclosed and explained in the financial statements;
- state whether the financial statements comply with the trust deed, subject to any material departures disclosed and explained in the financial statements;
- assess the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
- use the going concern basis of accounting unless they either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
The trustees are required to act in accordance with the trust deed of the charity, within the framework of trust law. They are responsible for keeping accounting records which are sufficient to show and explain the charity’s transactions and disclose at any time, with reasonable accuracy, the financial position of the charity at that time, and to enable the trustees to ensure that, where any statements of accounts are prepared by them under section 132(1) of the Charities Act 2011, those statements of accounts comply with the requirements of regulations under that provision. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charity and to prevent and detect fraud and other irregularities.
## Mark Cullinan
Mark Cullinan (Aug 6, 2021 11:48 GMT+1)
## **Mark Cullinan Chair**
Aug 6, 2021
9
**Independent Auditor’s Report to the Trustees of Riverside Foundation**
## **Opinion**
We have audited the financial statements of Riverside Foundation (“the charity”) for the year ended 31 March 2021 which comprise the statement of financial activities and the statement of financial position and related notes, including the accounting policies in note 1.
In our opinion the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 March 2021 and of its incoming resources and application of resources for the year then ended;
- have been properly prepared in accordance with UK accounting standards, including FRS 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ ; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We have been appointed as auditor under section 145 of the Charities Act 2011 (or its predecessors) and report in accordance with regulations made under section 154 of that Act.
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the charity in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.
## **Going concern**
The trustees have prepared the financial statements on the going concern basis as they do not intend to liquidate the charity or to cease its operations, and as they have concluded that the charity’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”).
In our evaluation of the trustees’ conclusions, we considered the inherent risks to the charity’s business model and analysed how those risks might affect the charity’s financial resources or ability to continue operations over the going concern period.
Our conclusions based on this work:
- we consider that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate;
- we have not identified, and concur with the trustees’ assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for the going concern period.
However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the charity will continue in operation.
## **Fraud and breaches of laws and regulations – ability to detect**
_Identifying and responding to risks of material misstatement due to fraud_
To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:
- Enquiring of trustees, the Group audit committee, internal audit, Legal Director and Head of Legal as to the Charity’s high-level policies and procedures to prevent and detect fraud, as well as whether they have knowledge of any actual, suspected or alleged fraud.
- Reading Board and Group audit committee minutes.
- Using analytical procedures to identify any unusual or unexpected relationships.
We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.
10
## **Independent Auditor’s Report (continued) to the Trustees of Riverside Foundation**
As required by auditing standards, we perform procedures to address the risk of management override of controls, in particular the risk that management may be in a position to make inappropriate accounting entries. On this audit we do not believe there is a fraud risk related to revenue recognition because revenue consists of inter-group revenue and investment income and therefore there are limited incentives for fraud.
We did not identify any additional fraud risks.
We performed procedures including:
- Identifying journal entries and other adjustments to test based on risk criteria and comparing the identified entries to supporting documentation. These included those posted by senior finance management, those posted by irregular posters and those posted to unusual accounts.
## _Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations_
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the trustees (as required by auditing standards) and discussed with the trustees the policies and procedures regarding compliance with laws and regulations.
We communicated identified laws and regulations throughout our team and remained alert to any indications of noncompliance throughout the audit.
The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the Charity is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related charities legislation) and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly, the Charity is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: anti-bribery and certain aspects of charity legislation recognising the nature of the Charity’s activities and its legal form. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the trustees and inspection of regulatory and legal correspondence, if any. Therefore if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.
_Context of the ability of the audit to detect fraud or breaches of law or regulation_
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 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.
In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
## **Other information**
The trustees are responsible for the other information, which comprises the Trustees’ Annual Report. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. We are required to report to you if:
- based solely on that work, we have identified material misstatements in the other information; or
- in our opinion, the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements.
We have nothing to report in these respects.
11
**Independent Auditor’s Report (continued) to the Trustees of Riverside Foundation**
## **Matters on which we are required to report by exception**
Under the Charities Act 2011 we are required to report to you if, in our opinion:
- the charity has not kept sufficient accounting records; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
We have nothing to report in these respects.
## **Trustees’ responsibilities**
As explained more fully in their statement set out on page nine, the trustees are responsible for: the preparation of financial statements which give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting unless they either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities**
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 our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities.
## **The purpose of our audit work and to whom we owe our responsibilities**
This report is made solely to the charity’s trustees as a body, in accordance with section 145 of the Charities Act 2011 (or its predecessors) and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.
Clare Partridge (Aug 11, 2021 14:05 GMT+1)
## **Clare Partridge (Senior Statutory Auditor) for and on behalf of KPMG LLP, Statutory Auditor**
## _Chartered Accountants_
1 Sovereign Square Sovereign Street Leeds LS1 4DA
## Aug 11, 2021
_KPMG LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006_
12
## **Statement of Financial Activities for the year ended 31 March 2021**
||Note|**2021**|**2020**|
|---|---|---|---|
|||**£**|**£**|
|**Incoming resources**||||
|**Income from generated funds:**||||
|Interest receivable||31|1,035|
|Investment income||54,203|45,930|
|Donations in kind|2|19,279|18,867|
|Donations||21,020|-|
|||________|________|
|**Total incoming resources**||**94,533**|**65,832**|
|**Resources expended**||||
|Charitable activities||||
|Grants|3|(108,319)|(1,435,901)|
|Bank charges||(61)|(62)|
|Transfer from creditors|4|81,337|17,558|
|||________|________|
|||**(27,043)**|**(1,418,405)**|
|||________|________|
|**Costs of generating funds**||||
|Staff costs|2|(18,629)|(18,264)|
|Support costs||(650)|(603)|
|||________|________|
|||**(19,279)**|**(18,867)**|
|||________|________|
|**Total resources expended**||**(46,322)**|**(1,437,272)**|
|||________|________|
|Net incoming/(outgoing) resources for the year||48,211|(1,371,440)|
|**Other recognised gains and losses**||||
|Unrealised gains / (loss) on investment assets||322,997|(189,810)|
|||________|________|
|||**322,997**|**(189,810)**|
|||________|________|
|**Net movement in funds**||**371,208**|**(1,561,250)**|
|Fund balance brought forward||33,491|1,594,741|
|||________|________|
|**Fund balance as at 31 March 2021**||**404,699**|**33,491**|
|||________|________|
The notes on pages 15 to 19 form part of these financial statements.
13
**Statement of Financial Position**
**as at 31 March 2021**
||Note|**2021**|**2020**|
|---|---|---|---|
|||**£**|**£**|
|**Fixed assets**||||
|Investments|5|1,839,333|1,516,335|
|**Current assets**||||
|Cash at bank|6|127,699|53,057|
|Debtors||550|-|
|||________|________|
|**Total assets**||**1,967,582**|**1,569,392**|
|**Liabilities**||||
|Creditors: amounts falling due within one year|7|(1,562,883)|(810,511)|
|Creditors: amounts falling due after one year|8|-|(725,390)|
|||________|________|
|**Total liabilities**||**(1,562,883)**|**(1,535,901)**|
|||________|________|
|**Net asset**||**404,699**|**33,491**|
|||________|________|
|**Funds**||||
|||________|________|
|**Unrestricted income funds**|9|**404,699**|**33,491**|
|||________|________|
The notes on pages 15 to 19 form part of these financial statements.
The financial statements on pages 13 to 19 were approved by the Trustees on 27 July 2021 and were signed on their behalf by:
## Mark Cullinan
Mark Cullinan (Aug 6, 2021 11:48 GMT+1)
## **Mark Cullinan Chair Charity number:** 513727
Aug 6, 2021
14
**Notes to the Financial Statements**
**for the year ended 31 March 2021**
## **1 Principal accounting policies**
## **Basis of accounting**
The financial statements have been prepared under the historical cost convention and have been prepared in accordance with the provisions of FRS 102 and applied the exemptions available under FRS 102 1.12 (b) in respect of the requirement to prepare a cashflow statement and related notes.
The financial statements comply with the charity’s Articles of Association as accounts 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 in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), Financial Reporting Standard applicable in UK and Republic of Ireland (FRS 102) and the Charities Act 2011 and has applied the exemptions available under the Charities SORP.
## **Basis of preparation**
The board, after reviewing the charity’s budgets for 2021/22 and the group’s medium term financial position as detailed in the 30-year business plan including changes arising from the ongoing COVID-19 pandemic, is of the opinion that, taking account of severe but plausible downsides, the group and charity have adequate resources to continue in business for the foreseeable future. The Board therefore continues to adopt the going concern basis in preparing the annual financial statements.
## **Judgements and key sources of estimation uncertainty**
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the statement of financial position date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.
## **Incoming resources**
All incoming resources are recognised once the charity has entitlement to the resources, it is certain that the resources will be received and the monetary value of incoming resources can be measured with sufficient reliability. Income is comprised of donations from The Riverside Group and income generated from fixed asset investments.
## **Resources expended**
Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category.
Provisions for grants are made when the intention to make a grant is agreed, irrespective of the timing.
## **Fixed asset investments**
Investments are stated in the financial statements at market value prevailing at the balance sheet date. The movement arising from such valuation is accounted for through the Statement of Financial Activities.
The valuation of investments is based on the middle market price quoted on the London Stock Exchange at close of business on 31 March 2021
## **Governance and support costs**
All staff related costs including governance and the allocation of overheads are absorbed by TRGL.
## **Related party transactions and trustees’ remuneration**
There were no payments made to trustees for emoluments or expenses throughout the year ended 31 March 2021
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**Notes to the Financial Statements (continued) for the year ended 31 March 2021**
## **Unrestricted funds**
All funds are expendable at the discretion of the trustees in furtherance of the objects of the charity and are therefore, considered to be unrestricted. However, trustees are mindful of the wishes of the donors when determining how funds are spent.
## **Taxation**
The Riverside Foundation is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2012 and therefore it meets the definition of a charitable trust for UK income tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Part 10 of the Income Tax Act 2007 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. Liabilities are recognised when an obligation arises to transfer economic benefits as a result of past transactions or events.
## **2 Donations in kind**
|**2**
**Donations in kind**|||
|---|---|---|
||**2021**|**2020**|
||**£**|**£**|
|**Riverside staffing resource**|||
|Salary|15,449|15,146|
|National insurance|1,484|1,455|
|Pension|1,696|1,663|
||_______|_______|
|Staff costs|**18,629**|**18,264**|
|Audit fee|650|603|
||_______|_______|
||**19,279**|**18,867**|
||_______|_______|
The Riverside staffing resource includes salary, national insurance and pension are based on the proportion of their time.
## **3 Grants**
|**3**
**Grants**|||
|---|---|---|
||**2021**|**2020**|
||**£**|**£**|
|Grants made in the year through TRGL for:|||
|Employment and training advice|38,319|366,690|
|Supporting Vulnerable People|**-**|981,711|
|Neighbourhood and community|40,000|37,500|
|Poverty relief|30,000|50,000|
||_______|_______|
||**108,319**|**1,435,901**|
||_______|_______|
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**Notes to the Financial Statements (continued) for the year ended 31 March 2021**
## **4 Transfer from creditors**
|**4 Transfer from creditors**|||
|---|---|---|
||**2021**|**2020**|
||**£**|**£**|
|Transfer from creditors|81,337|17,558|
||_______|_______|
||**81,337**|**17,558**|
||_______|_______|
## **5 Investments**
|Quoted investments|**Market Value**|**Movement in**|**Market Value**|
|---|---|---|---|
||**31/03/20**|**securities**|**31/03/21**|
||**£**|**£**|**£**|
|UK fixed interest|271,055|(6,224)|**264,831**|
|UK equities|783,956|226,365|**1,010,321**|
|Overseas equities|461,324|102,857|**564,181**|
||________|________|________|
||**1,516,335**|**322,998**|**1,839,333**|
||________|________|________|
## **Financial instruments measured at fair value**
Where financial instruments are measured in the statement of financial position at fair value, disclosure of fair value measurements by level is required, in accordance with the following fair value measurement hierarchy;
Level 1 – Quoted prices in active markets for identical assets or liabilities.
Level 2 – Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (from prices) or indirectly (that is derived from prices).
Level 3 – Inputs from the asset or liability that are not based on observable market data (that is, unobservable inputs).
Investments measured at fair value through profit and loss comprise investments in Charities Investment Fund Accumulated units. The fair value is determined by reference to their market price.
## **6 Cash**
|**6 Cash**|||
|---|---|---|
||**2021**|**2020**|
||**£**|**£**|
|Cash at bank|127,699|53,057|
||_______|_______|
||**127,699**|**53,057**|
||_______|_______|
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## **Notes to the Financial Statements (continued)**
## **for the year ended 31 March 2021**
## **7 Creditors**
Amounts falling due within one year
|Amounts falling due within one year|||
|---|---|---|
||**2021**|**2020**|
||**£**|**£**|
|**Amounts payable to TRGL:**|||
|Employment and Training, Advice and Support|487,204|281,926|
|Supporting Vulnerable People|825,442|485,085|
|Poverty Relief|180,337|25,000|
|Neighbourhood and community|69,900|18,500|
||________|________|
||**1,562,883**|**810,511**|
||________|________|
|**8**
**Creditors**|||
|Amounts falling due after one year|||
||**2021**|**2020**|
||**£**|**£**|
|**Amounts payable to TRGL for:**|||
|Employment and Training, Advice and Support|**-**|184,764|
|Supporting Vulnerable People|**-**|496,626|
|Poverty Relief|**-**|25,000|
|Neighbourhood and Community|-|19,000|
||________|________|
||**-**|**725,390**|
||________|________|
|**9**
**Funds**|||
||**2021**|**2020**|
||**£**|**£**|
|Unrestricted income funds|404,699|33,491|
||________|________|
||**404,699**|**33,491**|
||________|________|
The transfer from creditors represents funds previously committed to projects that have now completed. Underspend has been transferred back to unrestricted reserves and will still be used for charitable activities.
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## **Notes to the financial statements (continued) for the year ended 31 March 2021**
## **10 Parent association and related party disclosures**
The Charity has taken exemption under section 28.4 Charities SORP from the requirement for disclosure of related party transactions on the grounds it is an associated organisation of The Riverside Group Limited (registered in the UK). The Charity’s charitable purpose is to support the aims and objectives of The Riverside Group Limited in its’ areas of operation and to this extent the two organisations are closely aligned. The consolidated financial statements of the Group are available to the public and may be obtained from the Society’s registered office at 2 Estuary Boulevard, Estuary Commerce Park, Liverpool L24 8RF.
The Riverside Group Limited is registered under the Co-operative Community Benefit Societies Act 2014 and is registered with the Homes and Communities Agency as a Private Registered Provider of Social Housing, registered number L4552. Control is exercised through The Riverside Group Limited having a contractual right to approve Trustee appointments as per the Agreement for Services signed by appointed Trustees.
## **11 Debtors**
|**11 Debtors**|||
|---|---|---|
||**2021**|**2020**|
||**£**|**£**|
|Debtors – amounts due from Group undertaking|550|-|
||______|______|
||**550**|-|
||______|______|
## **12 Auditors remuneration**
Auditor’s remuneration comprises the audit fee. The audit fee of £650 was paid by the parent company, The Riverside Group Limited.
## **13 Employee Information**
All employees acting on behalf of the charity are employed by The Riverside Group Limited. All employment costs are carried by The Riverside Group Limited.
## **14 Directors’ remuneration**
The trustees are remunerated by The Riverside Group Limited.
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