commfggion COMPANY NUMBER: 02121694 CHARITY NUMBER: 519650 SPRINGBOARD SUNDERLAND TRUST FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 SPRINGBOARD SUNDERLAND TRUST INDEX YEAR ENDED 31 JULY 2024 Contents Pages Legal and Administration Details Trustees. Report Independent Auditors Report to the Trustees 8-11 Statement of Financial Aclivities 12 Statement of Financial Position 13 Cash Flow Statement 14 Not88 to the Financial Statements 16-25 SPRINGBOARD SUNDERLAND TRUST LEGAL AND ADMINISTRATIVE DETAILS YEAR ENDED 31 JULY 2024 R•glslered Charlty Name Springboard Sunderland Trust R•glstratlon Numbers Charity Number 519650 Company Number 02121694 Trustees Jonathan Nicholson John Colin Wilson Denise Wilson Graham Burt (Trustees are also the direclors for the purpos8s of company law) Prlnclpal StafflSecr8tary Stephen George R8ay Key Management Personnol Lisa Gregory- Head of Finance Janine Doughty - Head of Performance Stephen George Reay- Chief Executive Officer Allen Hall - Training Manager (North) (Resigned July 2024) Leanne Green- Training Manager (South) Keith Miller- ICT Manager Andrea Whincop - Head of Training Chrissie Watson - Quality Assurance Manager (Appointed 0110512024} Register•d Offlce The Alèc Dickson Centre Rivergrèen Industry Centre Pallion Sunderland SR4 6AD Audltors Torgersens East Suite. Ground Floor Avalon House St Catherine's Court Sunderland SR5 3XJ Bankers Barclays Bank PIC Sunderland City Branch Fawcett Street Sunderland SR11RS SPRINGBOARD SUNDERLAND TRUST TRUSTEES. REPORT (INCORPORATING THE DIRECTORS, REPORT) YEAR ENDED 31 JULY 2024 Trustees Report 2023 - 2024 The Trustees, who are also directors for company law purposes, submit their annual report and the financial statements of Springboard Sunderland Trust for thè year end8d 31st July 2024. Reference and administrative information sèt out on pag8 1 forms part of this report. The Trustees confirm that the annual report and financial statements of the Company comply with current statutory requirements. the requirements of the Company's governing documant and Accounting and Reporting by Charities Statement of Recommended Practice Applicable to Charities preparing their accounts in accordanc8 with the Financial Reporting Standard Applicable in the UK (FRS102) (effective 1 January 2019). Slructure. Governanc• and Management The organisation is a charitable company limited by guarantee, incorporated on 9th April 1987 and registered as a charity on 21st December 1987. The Trust was 8Stablish8d under a memorandum of association which 8stablish8d the objects and powers of the charitable company and is govemed by its articles of association last updated on 31 July 2014. The Trust has established risk msnagement procedures which involve identifying and monitoring risk and taking appropriate action where necessary. The board believes that appropriate systems are in place to mitigate the major risks to which the company is exposed. The Trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Trust's aims and objectives and in planning its future activities. In particular. the trustees consider how planned activities will contribute to the aims and objectives that have been set. Recruitment and appointment of trustees Trustees are appointed at a Trustees meeting. Prior to inviting nominees, the Chair and Chief Executive Officer review the experience and skills base of the nominated truslees. On appointment, each truslee received a full briefing and induction on the activities of the Trust. The trustees of the charitable company (thé Trust) arè its dirèctors for the purposes of company law. The trustees and officers serving during the year and since the year end were as follows: Jonathan Nicholson John Colin Wilson Denise Wilson Graham Burt Steve George Reay - Secretary Objectlves and Actlvltles The Trust's primary aim is to support the development of sustainable communities. where people have th8 skills they need for work and life. The main strategic objectives of the Trust for the period were: Ensure the long term sustainabilty of Springboard Monitor performance to enable Continuous improvement Deliver the current range of services and expand our activities Grow the business SPRINGBOARD SUNDERLAND TRUST TRUSTEES, REPORT {INCORPORATING THE DIRECTORS, REPORT) YEAR ENDED 31 JULY 2024 Pay policy for key management personnel The Trustees of Springboard and the senior management team comprise the key management personnel of the Trust in charge of directing and controlling, running and opèrating the Trust on a day to day basis. Trustees give their time freely and no one received remuneration in the year in their role as trustee. Salary levels of the senior management team are reviewed annually by the Trustees based on sector benchmarking. No member of stsff received emoluments above £60,000 in this year. Relat•d Partlos Springboard and Sunderland RCA Football Club are related parties during the year. Colin Wilson is a member of RCA management Committee and is a Trusteè of Springboard Sunderland Trust for the year ended 31 July 2024. Springboard Sunderland Trust and North East Learning Provider Network were related parties during the year. Denise Wilson is a Trustee of North East Learning Provider Network and a Trustee of Springboard Sunderland Trust for the yèar ended 31 July 2024. Steve George Reay is Chair of the North East Leaming Provider Neiwork as wall as Secretary and Chief Executive Officer of Springboard Sunderland Trust for the year ended 31 July 2024. Introductlon The organisation is managed by a Chief Executive and three Heads of Departments responsible for Operations, Performance and Finance. Each department had its own stralegic objectives which linked to the Trust's overall strategic plan. In this financial year to 31 July 2024, 442 people were aclive on mainstream programmes including 408 study Programme leamers and 34 Apprentices. The Covid Pandemic continues to have a bearing on young people's approach to pre 16 education and their approach to post 16 learning. specifically those with additional needs and those seeking apprenticeships, a recorded year-on-year growth in isolation, increased anxiety and a rise SEMH needs all contributed to difficulties in recruiting and retaining young people on our foundation study programmes and apprenticeships. Local Authority funded programmes supporting residents in community settings continued to see a large rate of engagement and have once again been subject to contracl extensions as a result of their successful impact. A programme to support adults in digital skills engaged over 400 dients and our welfare benefit advice project supported over 200 clients. We saw additional growth in new funded programmes cementing our position in the community. supporting those most in need, with the launch of separale 'Clean It Green It, projects in both the cty and Coalfields, and a separately funded environmental projects in partnership with community stakeholders in the Coalfields. Strategic Report The overall income of the Trusl for the year was £3.215,933. This is an increase of £453,014 on the last financial year. Total expenditure is £3.030.583, an increase of £116,386 on the18St financial year. An operating surplus of £185,350 is recorded. At the year end the overall fund balance of the Trust slood at £800,837, represenled in a large part by freehold properties owned by us and used to further our activitias. The long tem strategy of Springboard in terms of property and resource management in areas of development has proved again to be effective and sustainable. SPRINGBOARD SUNDERLAND TRUST TRUSTEES, REPORT (INCORPORATING THE DIRECTORS, REPORT) YEAR ENDED 31 JULY 2024 Achlevements and Performance Springboard continued to be one of the North East's leading training, employmenl and community development organisations. Despile the ongoing challenges of the ongoing impact from the Coronavirus lockdown on our young people who were then secondary school students, a number of indicators showed improvement in the year 23124 from 22123 including,. Achievement of full contract value 16-19 study programme 16-19 study programme achievement rose by 3.20/0 16-19 study programme retention rate rose by 2.60/0 16-19 study programme pass rate rose by 1.4 / Apprenticeship achievement rose by 33.80/0 Apprenticeship retantion rate rose by 33.80/ Staffing The organisations succession process of aligning operations staff saw a reduction in staff responsible for supervision and increase in learner support and delivery. This structure is now well bedded within the key areas of SEND, Maths and English, Practical Skills. Foundation Skills and Health and Social Care. One Training Manager has strategic responsibility for four Team leaders reporting directly to the Head of Training. Staff numbers in 202312024 averaged 85 including, part time and zero-hour staff members, apprentices and individuals employed through the Governments Kick Start scheme. Up from an average of 81 in 22123, this was due to an escalation in critical leamer support staff to address increases in learner needs. Prfnclpal rfsks and uncertalntles Principal risks and uncertainties over this period continue to include the ongoing impact of the Coronavirus pandemic on young people's approach to education and employment. Changes to legislation, the upcoming inlroduction of Skills England. a proposed move to dissolve the ESFA and transfer all functions to the DfE, and local government restructuring due to the upcoming North Easl Devolution, 811 present uncertainties A large reduction in the number of lower-level apprenticeships, such as those sought by Springboard learners. and the introduction of fees for employers and 'off the lob, requirements continue to result in a reduction in the number of apprenticeships undertaken, in line with national results. The ongoing reform of qualifications at Level 2 and Level 3 will continue until 2025 and will continue to impacl the programme offer. Employer's reluctance to invest in staff development continues to impact Apprenticeship uptake with a reduction in new starts mirroring the national picture. Nationally apprenticeships have seen a decline to around 500/0 of pre-covid numbers, this is reflected regionally with Springboards performance in the market. A reduction in the number of vocational areas in Study Programme and Apprenticeships offered, consolidating our offer to meet the needs of our cohorts, and an increase in critical learner support staff, had a financial impact on perfomiance but resulted in a significant increase in quality and outcomes for our most challenging learners. As a charity the economic environment within which we operate is very important. Given our mission to work in developing sustainabl8 communiti8S, it often means working in areas of high social deprivation. The UK Shared Prosperty Fund has been replaced by the North East Combined Authority Adult Skills Fund. The Charities UKSPF contracts fulfilled and a subsequent successful bid to NECA for Adult Skills SPRINGBOARD SUNDERLAND TRUST TRUSTEES, REPORT (INCORPORATING THE DIRECTORS, REPORT) YEAR ENDED 31 JULY 2024 Funding resulted in a 12 month contract providing community support. education and training to those most in need. Due to its initial success this contracl has now been extended for another 15 months The areas that have been hit hardest by continued austerity and local aulhority fijnding cuts, reducing opportunities for community support programmes, have now been supported through new forms of devolved fvnding. Post year end there was a cyber attack in January 2025. The Charity Commission were supplied with an immediate report and relevant information but did not consider tt a serious incident following the investigation by ICO and the National Cyber Crime Team, despite the impact on our income and performance in the 2024125 year. Future plans The organisation completed an alignment of staffing along three strategic departments of Training Operations. Performance and Finance. A reduction from two Training Managers lo one has created a new Quality Assurance manager role with oversight for quality across all delivery areas and funding streams. this has resulted in a significant increase in moniloring and achievement of outcomes. The Training, and Quality Assurance Managers report to the Head of Training. An increase in the number of young people with SEN needs. and our commissioned SEND (Special educational needs and disabilities) contract continues to provide Local Authority with cr¢tical support to the development of specialist provision across the region. We have seen a substantial increase in young people entering education with additional needs. both registered and self-identified. 100°/o of our 16-19 leamers were from disadvantaged backgrounds. As a response we increased staff numbers to provide ¢riti¢al leamer support which had a financial impact but incre8sed retention and leamer success. tèrnative Education placements for pre 16 students are increasing and dis¢ussions with 2 local authorities are undemay. a standalone provision will be provided to secondary schools across the cty to méet the growing need to reduce pre 16 non attenders. supporting temporarily and permanently exclud6d student. This is a primary focus for Springboards development. Futures Soci81 Enterprise and the A-spire Bistro have proven extremely popular. Futures Social Enterprise continues to act as a seamless progression route for high need Durham Works Futures participants and remains an area for growth over the next 12 months. The A-spire Bistro has built on the success of this model ulilizing existing resources to offer bespoke independent living and tsilored Hospitality and Catering training for a range of abilities. This project provides additional educalion, training and support opportunities for learners with SEND and has increased external engagement with partner institutions. As part of the Aspire Bistro's service we provide free breakfast items and reduced meals and drinks to disadvantaged learners. Further development in our VLE (Virtual Learning environment) education platforms continue to provide blended delivery to support our learners where appropriate. and are part of the wider strategic plan to offer increased online leaming lo adults as part of UKSPF and North East Mayoral Combined Authority funding strearns following devolution. An expansion of the Health and Social Care and Conslruction 1 &19 Study Programme offer has seen both programmes operating at capacity in response to the demand for increased training and employment opportunities within Sunderland and South Tyneside. Partnerships with national employers in Construction and Health and Social Care have resulted in training programmes with co designed curriculums to meet the specific needs of the labour markets emerging trends and expansion in green skills jobs. This responsive curriculum development model continues to grow with new employers to ensure best use of the range of high-quality facilities owned by Springboard. Working with Local Authorities in East Durham and Teesside new projects are now planned for our facilities in these areas to meet demand. Foundation Engineering is planned for a 2025 launch to meet Ihe training and employment need of the IAMP and Dogger Bank Windfarm, research and partnership work with stakeholders have resulted in a coproduced programme. and this is seen as significant development in Springboards offer. SPRINGBOARD SUNDERLAND TRUST TRUSTEES, REPORT (INCORPORATING THE DIRECTORS, REPORT) YEAR ENDED 31 JULY 2024 The management of the subcontracted provision continues to improve high standards of integrity and quality applying to all of Springboard's leamers across the region. A reduction in Ihe number of subcontractors and increased internal performance has resulted in our 16-19 contract being fulfilled in its entirety. Additional future plans include working with our local authorities. planning the upcoming NECA Adult Skills Fund delivery for 2024125 following LA7 Devolution. a re-introduction of adult skills training in Health and Social Care and Construction will compliment Springboards offer and meet currenl and emerging employment needs. Reserves Pollcy The Trustees consider that the ideal level of reserves as at 31 st July 2024 would be £750k. This has been set as 3 months core costs expenditure. The actual level of free reserves as at 31 July 2024 is deficit of £367.975 and the trustees have put cost saving plans in place during the year to increase reserves. Going Concem There are no matèrial uncertainties in respect of the charity's ability to continue as a going concern. The Trust prepar8d forecasts for the period to July 2026. The Trust notes the net currant liabilty position at 31 July 2024 of £373,497. The trust coritinues to review surplus estate in order to realise cash and help reduce the net current liabilities. Department for Education Sludy Programme core funding allocation for 25126 has increased 220/0 Sin￿ 23124 with a 16.6 /0 increase in the last academic year. A new Local Authority Commissioned Contract for Alternative Education 25126 has resulted in a significant increase in income from £11,000 in 23124 to over £700,000 for 25126. This will be subject to furthér growth in year as need increases across the region. The North East Combined Adult Skills Funding contract has received an extension of 16 months securing an additional £293,591 and ensuring delivery until at least 31 July 2026. There has been an increase in Nursery income from 23124 to 25126 as a result of the expansion of the government funded childcare schemes. Grant funding has increased by 720/0. This signfficant income growih secures the viability of nursery provision as a going concern. The trustees believe that the Trust is well placed to manage its risks successfully and thus have adopted the going con￿rn basis of accounting. Statement of Trustees Responsibllitles The trustees {who are also directors of Springboard Sunderland Trust for the purposed of company law) are responsible for preparing the trustees. report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards {United Kingdom Generally Accepted Accounting PraCti￿).COMpanY Law requires directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources. including income and expenditure. of the charitable company for that period. In preparing these financial statements, the directors are required to: Select suilable accounting policies and then apply them consistently Observe the methods and principles in Charities SORP Make judgements and estimated that are reasonable and prudent State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and Prepare th8 financial statements on Ihe going concern basis unless it is inapproprlate to presume that the charity will continue in business. SPRINGBOARD SUNDERLAND TRUST TRUSTEES, REPORT (INCORPORATING THE DIRECTORS, REPORT) YEAR ENDED 31 JULY 2024 The trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and which enables them to ensure that the financial ststements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and h8nce for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware.. There is no relevant audit information of which the charitable company's auditors are unaware. and the directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. And signed on their behalf: G. Burt Date., (JÉIo312oU SPRINGBOARD SUNDERLAND TRUST INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SPRINGBOARD SUNDERLAND TRUST YEAR ENDED 31 JULY 2024 Oplnlon We have audited the financial statements of Springboard Sunderland Trust (the 'charty') for the year ended 31 July 2024 which comprise the statement of financial position. statement of cash flows and the related notes. including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: give a true and fair view of the slate of Ihe charity's affairs as at 31 July 2024 and of its incoming resources and application of resources. induding its income and expenditure, for the year then have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., have been prepared in accordance with th8 requirements of the Companies Act 2006. Basis for opinlon We conducted our audit in accordance with Intemational Standards on Auditing {UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further descrlbed in the auditor's responsibilities for the audit of the financial statements section of our report. We sre independent of the charity in accordance with the ethical requirements Ihat are relévant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our olher ethical responsibilities in accordance with these requirements. We beliave that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relatlng to golng concern In audFting 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 abilty to continue as a going concern for a period of at least twelve months from when the financial statements a￿ aulhorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concem are described in the relevant sections of this report. Other information The other information comprises the infomation included in the annual report. other than the financial statements and our auditor's report thereon. The truslees are resF)onsible for the other infomiation contained in the annual report. 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 statemenls or our knowledge obtained in the Course of the audit or otherwise appears to be materially misslated. 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 r8POrt in this regard. SPRINGBOARD SUNDERLAND TRUST INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SPRINGBOARD SUNDERLAND TRUST YEAR ENDED 31 JULY 2024 Opinions on other matters prescribed by thé Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the trustees, report for the financial year for which the financial statements are prepared is consistent with the financial statements: and the trustees, report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the charty and its environment obtained in the course of the audit. we have not identified material misstatements in the trustees, report. We have nothing to report in respect of the following matters in relation lo which the Companies Act 2006 requires us to report to you if, in our opinion: adequale accounting records have not been kept. or retums adequate for our audit have not been received from branches not Vistted by us: or the financial statements are not in agreement with the accounting records and returns: or certain disclosures of trustees, remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit. or the trustees were not entitlèd to prepare the financial statements in accordance with the small companies regime and take 8dvantage of the small companies, exemptions in preparing the trustees, report and from the requirement to prepare a strategic report. Responslbllities of trustees As explained more fully in the trustees, responsibilities statement set out on page 6. the trustees (who are also the directors for the purposes of company law) are responsible for the preparation of the financial ststements and for being satisfied that they give a true and fair view. and for such intemal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misslatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability 10 continue as a going cOn￿rn. disclosing, as applicable. matters related to going concem and using the going concem basis of accounting unless the trustees either inlend to liquidate the charty or to cease operations. or have no realistic altemative but to do so. Audltorfs responsibilities for the audit of the flnancial statemenls 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 malerial rf. individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of thes8 financial slatements. Irregularities, including fraud, are instances of non-compliance wrth laws and regulations. We design procedures in line with our responsibilities. outlined above. to detect material misststements in respecl of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: SPRINGBOARD SUNDERLAND TRUST INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SPRINGBOARD SUNDERLAND TRUST YEAR ENDED 31 JULY 2024 Explanatlon as to what extent the audlt was considered capabl• of d•t•ctlng Irregularltles, Including fraud The objeclives of our audit with regards to fraud are to design tailored and specific audit procedures to enable us to gather sufficient audit evidence. These tests are proportionate and appropriate to the charitable company in terms of assessed risk level and the nature of the entity's activities. However, the primary responsibilty for the prevention and detection of fraud rests with those charged with governance. We obtained an understanding of the legal and regulatory requirements which applied to the charitable company, which we deemed to be the Companies Act 2006. and Statement of Recommended PractÉce to charits"es. the Financial Reporting Standard applicable in the UK and Republic of Ireland (Charities SORP (FRS102)). We obtained an understanding of how the charitable company had complied with these regulations by reviéwing their treatment of Iransactions. reviewing minutes of meetings and discussing compliance with trustees and those charged with govemance. We assessed th8 risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and identified that income from ESFA for education and apprenticeships and grants is most susceptible to fraud or error. We designed our audit work to test the controls in place regarding Ihe processing of these transactions and how these controls are capable of preventing or detecting fraud or error. Post year end there was a cyber breach impacting the availability of infonnation relating to year ended 315t July 2024 resulting in extended audit testing. Our audit procedures gathered evidence to support the claims of the trustees whilst maintaining professional scepticism to allow us to draw our own conclusion on the matter. As part of an audit in accordance with ISAS (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements. whether due to fraud or error. design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions. misrepresentations, or the override of intemal control. Obtsin an understanding of internal control relevant to the audit in order to design audit procedu￿$ that are appropriate in the circumstances. but not for the purpose of expressing an opinion on the effectiveness of the internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. Conclude on the appropriateness of the trustees. use of the going concern basis of accounting and, based on the audit evidence obtained. whether a material uncertainty exisls related to events or conditioris that may cast significant doubt on the charity's ability to continue as a going concem. If we conclude that a material uncertainty exists. we are required to draw attention in our auditorfs r8POrt to the related disclosures in the financial statements or. rf such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtsined up to the date of our auditor's report. However, future events or conditions may cause Ihe charity to cease to continue as a going concern. Evaluate the over811 presentation, structure and content of the financial statements, induding the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair pres8ntatlon. 10- SPRINGBOARD SUNDERLAND TRUST INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SPRINGBOARD SUNDERLAND TRUST YEAR ENDED 31 JULY 2024 We communicate with those charged with governance regarding, among other matters. the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in ntemal control that we identify during our audit. 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 auditorfs report and for no olher purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the ¢haritsble company's membars as a body, for our audit work. for this report, or for the opinions we have formed. Alison Henshaw FCCA (Statutory Auditor) For and on behalf of TORGERSENS Chartered Accountants & Statutory Auditor East Suite. Ground Floor Avalon House St Catherine's Court Sunderland SR5 3XJ Date.. /o?/zs 11 SPRINGBOARD SUNDERLAND TRUST STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 JULY 2024 Unrestricted Restricted Funds Funds Total 2024 Total 2023 Note Income: Donations and legacies 2,880 2,880 10,781 Charitable activities 2,930,568 275,082 3,205.650 2,751,054 Investment income 7,403 7,403 1,084 Total Incoming resourcès 2,940,851 275,082 3,215,933 2,762,919 Expenditure: Charitable activities 3,051.022 205,242 3,256.264 2,914,197 (Profit}ILoss on sale of fixed asset (225,681) (225,681) Total expenditure 2.825,341 205,242 3,030,583 2,914,197 Not Incomel(expenditure) 115,510 69,840 185,350 (151.278) Net movemant In funds 11S,510 69,840 185,350 (151.278) Transfer between funds Re¢on¢lllatlon of funds Totsl funds broughl forward Total funds carrled forward 615.487 615.487 766,765 730,997 69,840 800,837 615,487 Thé statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The notes on pages 15 to 25 form part of these financial statements 12- SPRINGBOARD SUNDERLAND TRUST STATEMENT OF FINANCIAL POSITION YEAR ENDED 31 JULY 2024 Note 2024 2023 Fixed Assets Tangible fixed assets 1,497.390 1,571.403 Current assets Debtors Assets in the course of disposal Cash at bank and in hand 10 316,146 206,148 24.319 347.248 549,017 865,163 577,715 Liabilities Creditors: amounts falling due within one year 11 (1,238,660) 1373,497) (1,134,057) (556.342) Net current Ilabilities Total assets less current liabilities 1,123,893 1,015,061 Credltors: amounts falllng due after more than one y•ar 12 {323.056) {399.574} N•t assets 800,837 615,487 Funds Unrestricted funds Designated funds General funds 14115 14115 1,098,972 1,125,099 {367,975) {509,612) 730,997 615,487 69,840 Restricted funds 14115 Total Charlty Funds 800,837 615.487 The trustees acknowledge their responsibilities for: (i) ensuring thal the charitsble company keeps proper accounting records which comply with section 386 of the Act; and (li) preparing financial slatements which give a true and fair view of the slate of affairs of the charitable company as at the end of the financial year and of its incoming resources and application of resources. including its surplus or deficit for the financial year in accordance viith the requirements of section 394 and 395. and which otherwise comply with Ihe requirements of the Act relating to financial statements. so far as applicable to the charilable company. These financial statements have been prepared in accordance with the provisions applicable to small companies subject to the small companies regime and in accordance with FRS102 SORP. These financial statements vrfere approved by the trustees on o& and are sign8d on their behalf by: G. Burt Company number 02121694 The notes on pages 15 to 25 fomi part of these financial slatements 13- SPRINGBOARD SUNDERLAND TRUST STATEMENT OF CASH FLOWS YEAR ENDED 31 JULY 2024 Note 2024 2023 Net cash flows from operating activities 19 34,440 251.068 Cash Flows from Investing Actlvltles Interest received Interest paid Payments to acqLJire tangible fixed assets Proceeds from sale of tangible fixed assets 7,403 (17,864> 1.084 (15,074) (36.099) 250,000 Net Cash Used In Investlng Actlvltles Taxation 239,539 {50,089) Cash Flows from Flnanclng Actlvltles Repayment of bank loans Net Cash (used in) Financing Actlvltles (72,210) (72,210) <74,935) (74,935) Change in Cash and Cash Equivalents in the Reporting Period Cash and Cash Equivalents al th• Beglnnlng of the Year Cash and Cash Equlvalents al the End of the Year 201,769 126.044 347,248 221.204 549,017 347.248 The notes on pages 15 to 25 form part of these financial statements 14- SPRINGBOARD SUNDERLAND TRUST NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2024 Accountlng Pollcles The principal accounting policies are summarised below, The accounting policies havè been applied consistently throughout the year and the preceding year. Basls of Accountlng Springboard Sunderland Trust is a charitable company, limited by guarantee. registered in England. The address of the Charity's registered office and principal place of business is The Alec Dickson Centre, Rivergreen Industry Centre, Pallion. Sunderland SR4 6AD. Springboard Sunderland Trust meets the definition of a public benefit entity under FRS 102. The charity exists for the benefit of the public through the provision of training and education to young people and adults. These financial ststements have been prepared in accordan￿ with the Charities SORP (FRS102) "Accounting and Reporting by Charities". Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). and the Companies Act 2006. Assets and liabilities are initlally recognised at historical cost of transaction value and in accordance with the Statement of Recommended Practice "Accounting and Reporting by Charities" effective at 1 January 2019 (Charities SORP (FRS 102)) and the Companies Act 2006. Thé financial ststements are presenled in sterling which is also the functional currency of the Charity. The monetary amounts in these financial statements are rounded to Ihe nearest £, except where otherwise indicated. Golng conc•m The charity had total funds of £800,837 as at 31 July 2024 {increasa of £185,350 from July 2023). The cash flow forecasts have been updated to factor in the expected level of income and expenditure to confirm that the charity has sufficient cash for the organisation to continue for at least 12 months from the date these financial statements are signed. At the time of approving the financial statements, the trustees have a reasonable expectation that the charty has adequate resources to continue in operational existence for the foreseeable future. Thus. the trustees continue to adopt the going concem basis of accounting in preparing the financial statements. The trustees do not consider that there are any material uncertainties to impact the charity's ability to continue as a going concern. Income Voluntary income is received by way of donations and gifts and is included in full in the statement of financial activities when receivable. Income from the sale of goods and services is recognised in the financial statements during the y8ar in which the service is carried out and Iherefore entitlement is eamed. Revenue and govemment grants are credited to the statement of financial activities when receivable. Where unconditional entitlement to grants receivable is dependent upon fvlfilment of conditions within the charity's control. the incoming resources are recognised when there is sufficient evidence that conditions will be met. Where there is uncertainty as to whether the charity can meet such conditions the incoming resource is deferred. 15- SPRINGBOARD SUNDERLAND TRUST NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2024 Contract income is recognised in the financial ststements lo the extent that entitlement has been eamed at the year end through completion of the contract. Income from the sale of other goods and services Is recognised in the period in which the goods or service is provided to the customer. Investment income is included in the Statement of Financial Activities on a receivable basis. Fund accounting Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund. Unrestricted funds are donations and other incoming resources received or generated for the general charitable purposes. Designated funds are unrestricted funds earmarked by the trustees for particular purposes. R•sourcos expanded Resources expended are reoognised in Ihe period in which Ihey are incurred. Resources expended include attributable VAT which cannot be recovered. Resources expended are allocated to the particular activity where the cost relates directly to that activity. As the charitable company only carried out one activity during the year. support costs have not been separately analys6d. Govemance costs are the costs associated with the govemance arrangements of the charty. These costs ar8 associated with constitutional and statutory requiréments and include any costs associated with the stratégic managament of the charity's activities. Subcontractors costs represents Education & Skills Funding Agency (ESFA) income eamed by subcontractors, where the contract with the ESFA is with Springboard Sunderland Trust. This expenditure is recognised as a lower of the profile amount payable per the contract be￿een the charity and the partner and the actual income eamed by the partners during the period, less a management fee. Tanglble flxed assets and depreciation Depreciation is provided at rates calculated to wrtte down the cost of each asset to its estimated residual value over its expected useful life. Freehold land is nol depreciated. The depreciation rates in use are as follows: Freehold and long leasehold property offi￿ fumiture and ffftings Computer equipment Motor vehicles 20/0 straight line 33.30h straight line 33.3°/o straight line 33.3°/o straight line Ilems of equipment are capilalised where the purchase price exceeds £2.000. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment of circumstan￿$ indicate their carrying value may ex￿ed their net realisable value and value in use. 16- SPRINGBOARD SUNDERLAND TRUST NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2024 Leases Rentals payable undar operating leases, where substsntially all the risks and rewards of ownership remain with the lessor, ara charged to the statement of financial activities on a straight line basis over the minimum leasè term. Pensions The Trust operates a défined contribution pension scherne for employees. The asseis of the scheme are held separately from those of the charitable company. The amount charged to the statement of financial activities is the contributions payable in the year. D￿erenCeS belween contributions payable in the year and actually paid are shown as either prepayments or other creditors. Agency income The Trust acts as a agent in the administering of 16-19 Bursary Funds and free meals from the ESFA. Related payments received from the ESFA and subsequent disbursements to students are excluded from the statement of financial activities lo the extent that Ihe Trust does not have a beneficial interest in the individual transactions. The allowance of 5% as a contribution to administration costs is however recognised in the statement of financial activities. Where funds have not been fully applied in the year then an amount will be included as amounts due to the ESFA. In addition, the Trust acts as an agent in the administ8ring of ApprentI￿ShIp Grants for Employers Funds from the ESFA. Related payments r8C8ived from the ESFA and subsequent disbursements to employers are excluded from the statement of financial actNities to the extent that the Trust does not have a beneficial interest in the individual transactions. Flnanclal In$trum•nts The charlty has elected to apply the provisions of Section 11 °Basic Financial Instruments. and Section 12 "Other Financial Instruments Issues" of FRS 102, in full to all of its financial instruments. All of the charities financial assets and financial liabilities qualify as basic financial instruments. Basic Financial instruments are initially recognised at transaclion value and subsequently measured at their settlement valu6. Financial assets." TTrde and other debtors Trade and other debtors which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at arnortised cosl. being the transaction price less any amount setued and any impairment losses. A provision for impairment of trade debtors is established when there is objective evidence that the amounts due will not be collected according to the original temis of the contract. Impairment losses are recognised in profit or loss for the excess of the carying value of the trade debtor over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised. are recognised immediately in profit or loss. Financial liabilities.. Trade and other creditors Trade and other creditors (including accruals) payable within on8 year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at arnortised cosl, being th8 transaction price less any amounts settled. 17- SPRINGBOARD SUNDERLAND TRUST NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2024 Crltlcal accountlng estlmates and areas of Judgement Eslimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. R•¢ovarability of debtors Debtors are reviewed on a line by line basis by the Trust annually. Provisions are made as appropriate following this review. Voluntary Income - donatlons Total 2024 Totsl 2023 Restricted Unrestricted Donations Income from donations in 2023 was unrestricted. Charltable actlvltles Total 2024 Total 2023 Restricted Unrastricted Education & Skills Funding Agency Revenue from nursery. Bistro and Upstream City of Sunderland- Nursery Grants City of Sunderland- Other Grants City of Sunderland- High Needs Element 3 City of Sunderland- Hetton SIB Other income Other grants Total 2,498,145 213,975 211,263 2,498,145 213,975 281,103 49,086 2.067.227 174.659 129,018 66,726 85,641 133,292 6,534 87,957 69,840 49,086 74,443 1.784 5,401 76.227 5,401 81,713 81,713 Income from charitable activities in 2023 was made up of unrestricted funds of £2,519,579 and restricted funds of £231,475. Investment income 2024 2023 Cash investments held in the UK Invèstment income in 2024 and 2023 was unrestricted. 18- SPRINGBOARD SUNDERLAND TRUST NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2024 Total resources expended Restrlcted Unrestricted 2024 2023 Staff costs (Note 7) Secondment and Assessors (agency costs) Trainee allowances Vulnerable and Other Bursaries Premises costs Travel and subsistence Training costs and staff training Health & Safety Materials and equipment Professional services Interest payable Irrecoverable VAT Sub-contractor costs Marketing Depreciation other Governance Grants payable to SIB Bad d8bts 194.336 180 1.690.454 1,884,790 1,742.176 17,504 17.684 23.045 55.882 55.882 42.799 4,014 3,708 2.758 321.573 40.557 52.115 37.856 139.074 72.210 17.864 65.860 402,750 19,498 74,013 30 15,576 12,579 15,627 325,587 44,265 54,873 37,856 139,320 72,210 17,864 65,860 402.750 19.498 74,013 30 15,576 12,579 15.627 293.393 36.299 50,471 41.714 157,377 71.397 15.074 60,725 245,640 26,025 77,786 621 18,140 246 11.515 Total rnsources expended The Éxpenditure in 2024 related to £205,242 restricted funds and £3,051,022 unrestricted funds (2023: £198,665 restricted funds and £2.715,532 unrestricted funds) 6. Net 730.997 69.840 Restricted Funds Purpose of d•slgnat•d funds The fNed assel fund represents the value of unrestricted fixed assets. less any loans used to finance them. The transfer in the year reflects the adjustment to depreciation, loan repayments and assets reallocated to general funds to be sold post year end. Movoments In funds - prior year At 1 August Incomlng 2022 resources Outgoing Transfers resour¢¢s At 31 July 2023 Deslgnated funds: Fixed Asset Fund Current Asset 1,091,851 (91,939) 100,868 24,319 1,100,780 24,319 Total deslgnated funds 12 Summary of Funds Designated Funds General Funds 1,091,851 (325,086) {91,939) 125,187 2,531,444 (2.623,593) {92,377) 1,125,099 (509,612) 766,765 2,531,444 (2,715,532) 32,810 231,475 (198,665) (32,810) 615.487 Restricted Funds 766 76 615487 -22- SPRINGBOARD SUNDERLAND TRUST NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2024 15. Analysis of r•strlcted fund movements At 1 August 2023 Incoming resources Outgolng resourcès Transfers At 31 July 2024 Communities Connected R U Ready UC Durham Wildlife Trust DCC Durham Works SCC Pallion Clean and Green SCC Clean it Green It Wise Group 19.077 24,190 69,840 81,714 (19.077) (24.190) 69,840 (81.714) 16.453 32.632 31,176 (16.453) {32.632) (31.176) Analysis of restrlcted fund movements - prior year At 1 August 2022 Incoming resources Outgolng resources Transfers At 31 July 2023 Communities Connected R U Ready UC SCC Fixed Asset Fund Pedal Power DCC Durham Works DWP Kickstart Schem6 SCC Pallion Cléan and Green SCC Clean it Grèen It SCC CLLD 17.360 11.540 30.971 3.000 81.884 3.073 (17.360) (11.540) (30,971) (3.000) (81,884) (3.073) 5.333 30,421 47,893 (5.333) (28,582) (47,893) (1,839) 19 The transfers represent a pontoon and a trailer purchased from funds received with the purpose of being spent on these assets. Communities Connected represents funds received from Sunderland City Council towards digital training and increasing confidence in using IT. R U Ready UC represents funds received from Sunderland City Council Neighbourhood Fund towards supporting local residents in their application for Universal Credit. Durham Works represents funds received in respect of the Durham Works project with Durham City Council to encourage young people who are disengaged with education, unemployed and who may have special educational needs. The programme covers confidence building and personal development, matching skills. strengths and attributes to employment. Durham Wildlife Trust represents funds received from Sunderland City Council towards the cost of purchasing a new Iractor with flail hedge CLrtter and flail mower collector. This was purchased in August 2024. SCC- Pallion Clean and Green represents funds received from SCC Neighbourhood Fund programme to improve green spaces and urban environments for the benefit of the community in the Pallion. West Sunderland area, -23- SPRINGBOARD SUNDERLAND TRUST NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2024 15. Analysis of rastrleted fund movements (continued) SCC - Clean It Green It represents funding from SCC Neighbourhood Fund Coalfield area programme to improve green spaces and urban environments for the benefit of the community. SCC- CLLD represents funds from SCC Community Lèd Local Development (CLLD) ESF project to provide sustainable economic opportunitiés and bénefits to areas of Sunderland that face challenges including social exclusion and multiple deprivation, capacity to access job opportunities. poor health or low levels of unemployment and entreprenéurship. SCC - Fixed Asset contribution r8presents Sport and Recreation Contribution capitsl grant to purchase a pontoon at Hetton Lyons County Park Lake to support outdoor swimming and swim, bike, run activities. Wise Group - Wise Group represents funding from SCC for mentoring support to economically inactive residents across the Sunderland area, offering a wide rang of activities and servicés to address the varied, complex barriers that prevent many securing and sustaining quality employment. 16. Analysls of net assets between funds Designated funds Restrlcted Funds General funds Total funds Tangible fix8d assets Current ass6ts Net current liabilities Long-térm liabilities 1.497.390 {5) (75,357} (323,056) 1,497,390 795,328 865,163 (1,163,303) (1,238,660) (323,056) 69,840 Not assets at 31 July 2024 Analysls of net assets between funds - prior year Designated funds Restrlcted Funds General funds Total funds Tangible fixed assets Current assets Net current liabilities Long-term liabilities 1.571,403 24,319 (71.049) (399,574) 1,571,403 553.396 577,715 {1,063,008) (1,134.057) 1399,574) Net assets at 31 July 2023 17. Other financial commitments 2024 2023 Operating leases which expire: viithin one year within one to years within two to five years 66,717 204,800 53.333 60.900 220,317 104,533 -24- SPRINGBOARD SUNDERLAND TRUST NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2024 18. Penslon commltmenls The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are h8ld separately from those of the charty, in independently administered fund. The contributions payable by the charity charged to income and expenditure as part of charitable activities. amountéd to £45,173 (2023.. £41,318) and all related to unrestricted funds. Amounts payable of £311 (2023: £282) are included in other creditors at the year end. 19. Recon¢lllatlon of net (outgolng)Ilncomlng resources to net cash Inflow from opèratlng actlvltles 2024 2023 Net