Safe Ground - Charities report - 20.2

REGISTERED COMPANY NUMBER: 03080847 (England and Wales)

REGISTERED CHARITY NUMBER: 1048181

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

FOR

SAFE GROUND

Page

Report of the Trustees

1

to

4

Independent Examiner's Report

5

Statement of Financial Activities

6

Balance Sheet

7

to

8

Notes to the Financial Statements

9

to

17

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and activities

The object of the Company is to advance the education of the public, in particular but not exclusively prisoners in the arts, specifically the art of drama, literature and poetry and to use the arts to rehabilitate prisoners, offenders and community members by promoting and developing people's creative and artistic abilities, parenting and relationship skills.

Public benefit

The trustees confirm that they have complied with the duty in section 17(5) of the 2011 Charities Act to have due regard to the Charity Commission's general guidance on public benefit.

The trustees are satisfied that the aims and objectives of the charity meet the public benefit requirement; and that the charity's activities are in support of those aims.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

Our Own Stories women's programme continues to run as part of the Minerva Wrap Around service for women across London. Towards the end of the year we moved the service online and welcomed new participants.

Programme delivery will continue to be online for the next year's contract. The current contract is confirmed until March 2021 and we are unclear as to whether we will be able to deliver any face to face programmes before then. We hope the contract may be extended.

The revised version of Fathers Inside has been successfully rolled out. Over the year, the programme ran in HMP Parc and Berwyn several times and shows early indications of significant impact on parenting attitudes and on parental stress in participants. The completed new facilitation materials will be printed next year to accompany the shortened programme.

We've seen an uptake in our Man Up programme with five sites delivering the programme throughout the year. Group numbers and engagement has increased, which has expanded our impact on young people in prison.

In line with our mission, this year we have focused on engaging the public and inviting them to have conversations around punishment and prisons. We hosted two events at The Roundhouse covering the complexities that people in prison face.The first of these events, The Price of Punishment, commissioned nine new and emerging artists to respond to the title in creative ways and an audience of 40 people came to discuss their work.The second of these events was The F Word (feelings) which featured a Q&A session with a current prison officer and an alumni member. The audience said they had never been to an event like it and we saw a boost in our newsletter signup as a result.

Over the year we have continued to contribute to policy and practice through a range of formal and informal routes; we have contributed a chapter in 'Crime and Consequences' and been interviewed on the arts podcast Ministry of Arts. We have been invited to become member of the Standing Committee on Youth Justice and have completed our tenure as founding members of the Prisoner Learning Alliance.

FINANCIAL REVIEW

Financial review and reserves

Income for the period was £219,097 (2019: £234,413). Expenditure was £252,395 (2019: £270,153).

The deficit for the period was £33,298 (2019: £35,740).

Reserves carried forward at the year end are £100,481 (2019: £133,779) of which £99,326 (2019: £116,698) is unrestricted and £1,155 (2019: £17,081) is restricted.

Safe Ground's reserves policy aims to maintain a level of unrestricted reserves which will enable it to meet its future commitments and ensure that there are adequate funds to run the charity for a period of at least six months, having regard to the requirements of its planned projects. Management and Trustees maintain a consistent and vigilant review of the financial health and well being of the organisation.

In the last financial year, Safe Ground's expenditure against its unrestricted funds amounted to £208,334 (2019: £180,378). At 31 March 2020, the charity's unrestricted reserves amounted to £99,326 (2019: £116,698). This level of reserves is therefore more than sufficient to meet the charity's reserves policy.

This level of unrestricted reserves has been built up over the last few years and has permitted the charity to continue to fund its core development plans during a period when the funding for such expenditure has become ever more restricted. Contract income within and across the secure estate and prison education commissioning are both expected to increase over the next year which the Trustees hope will again deliver increasing contributions towards core costs.

There are no funds in deficit and the trustees have no uncertainties about the charity's ability to continue as a going concern based on the income in the year ahead.

Principal risks and uncertainties

Covid 19 has meant that from March 24th 2020 all prisons have been under almost full lockdown. Across the country all working patterns, transport and public gatherings have been severely curtailed meaning Safe Ground staff have been working largely from home and, between April and October 2020, reduced hours to 4 days per week.

The Trustees decided not to implement the furlough scheme, but in consultation with the team, we decided to reduce our hours and continue to deliver quality services. As a result of this decision we have been able to ensure the impact of a range of new and existing interventions:

- Transference of Our Own Stories women's programme online (delivered to 24 women to date) in partnership with Advance Minerva Wrap Around service

- Creation of high quality creative resources for women across London (funded by a small grant from London Community Foundation)

- Continued delivery of FI and Man Up in HMP Parc

- Creation of audio-visual resources re family learning for men in HMP Berwyn

- Creation of new creative resources for people in prison

- Delivery of public reflective group on line to support people using our methodology during quarantine period

The Covid restrictions have meant that planned and contracted delivery of FI and Man Up programmes in HMPs Norwich and Wayland has had to be postponed, but we remain in contact with the site and will deliver the programmes as planned as soon as it is safe and appropriate to do so.

FUTURE PLANS

For 2021, despite the huge impact Covid 19 has had on people in prison and their families, we have a significant amount of relevant work in planning.

We will continue to deliver our programmes in HMP Berwyn. Until face to face delivery can return we will create paper based resources to support people who would otherwise participate in our programmes.

HMP Parc will continue to deliver Fathers Inside and Man Up across two separate age groups on site. Covid is less of an interruption to delivery in this establishment as internal staff deliver with the support of Safe Ground team members on a quality assurance basis.

We have contracted delivery of Man Up and Fathers Inside across both HMPs Wayland and Norwich. Both these programmes were planned for delivery in early 2020, but have been postponed for safety and access reasons. We will deliver these programmes as soon as appropriate.

Our Own Stories is planned to continue until at least March 2021 and we very much hope to extend the service and develop an alumni package for women participants.

We have submitted a bid for the design of a new community programme using creative writing and reading. If successful, this programme will be delivered with Merton residents as part of the London Health Partnership, supporting people with low level mental health needs to find confidence through relationships.

Although Covid 19 looks like it will mean our work is severely curtailed, we are creative and used to working in crisis situations, so we will apply our methodological approach to the situation and seek opportunities for engagement, support and collaboration.

Alongside our extensive activities during the lockdown period, we have been able to continue to plan and develop future work. We have a solid basis for our financial position over the next 12 months with a good base of secured income and a large range of possible new opportunities for development. Covid 19 has no financial impact on this financial year.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Safe Ground is a company limited by guarantee. Its constitution is governed by a Memorandum and Articles of Association dated 11 July 1995 as amended by special resolution dated 26 January 2011. It is registered as a charity.

The Company is governed by a board of trustees, whose principal responsibilities are the setting and monitoring of the strategic direction of the organisation and the establishment of policy. All trustees give their time voluntarily and receive no financial benefits from the Company.

The board of trustees meets a minimum of four times a year. Individual trustees also have the responsibilities to support the CEO, who has the responsibility for the day-to-day management of the Company.

Recruitment and appointment of new trustees

Trustees are appointed by the board of trustees. The board seeks to ensure that there is an appropriate balance of experience and representation relevant to the operations of the Company.

Recruitment of new trustees is undertaken by the board through nomination and interview. Induction of new trustees is done through meetings with individual staff members, attending events and training sessions run by the Company and detailed discussion with other board members.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

03080847 (England and Wales)

Registered Charity number

1048181

Registered office

4th Floor Tuition House

27-37 St George's Road

Wimbledon

London

SW19 4EU

Principal address

2 Langley Lane

London

SW8 1GB

Trustees

Ms D Lennan

Mrs T Fatima (appointed 12/11/20)

Mr A Stebbings (resigned 1/4/20)

Ms D Rodger

Mr G Monaghan (resigned 11/11/19)

Ms L Lines

Mr J Rebouse (appointed 25/9/19)

Mr J Smith (appointed 25/9/19)

Ms J Bailey (appointed 25/9/19)

Mr R Lambe (appointed 25/9/19)

Miss G Wyld

Company Secretary

Independent Examiner

Hartley Fowler LLP

Chartered Accountants

4th Floor Tuition House

27-37 St George's Road

Wimbledon

London

SW19 4EU

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 13 November 2020 and signed on its behalf by:

Ms D Lennan - Trustee

Independent examiner's report to the trustees of Safe Ground ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2020.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

1.	accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

2.	the accounts do not accord with those records; or

3.	the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

4.

the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Jonathan Askew

Institute of Chartered Accountants in England and Wales

Hartley Fowler LLP

Chartered Accountants

4th Floor Tuition House

27-37 St George's Road

Wimbledon

London

SW19 4EU

21 January 2021

2020

2019

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

3

190,004

28,135

218,139

233,226

Other trading activities

4

710

-

710

978

Investment income

5

248

-

248

209

Total

190,962

28,135

219,097

234,413

EXPENDITURE ON

Charitable activities

6

Charitable activities

208,334

44,061

252,395

270,153

NET INCOME/(EXPENDITURE)

(17,372

)

(15,926

)

(33,298

)

(35,740

)

RECONCILIATION OF FUNDS

Total funds brought forward

116,698

17,081

133,779

169,519

TOTAL FUNDS CARRIED FORWARD

99,326

1,155

100,481

133,779

2020

2019

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

13

2,068

-

2,068

2,757

CURRENT ASSETS

Debtors

14

7,629

-

7,629

8,784

Cash at bank and in hand

120,751

30,321

151,072

191,418

128,380

30,321

158,701

200,202

CREDITORS

Amounts falling due within one year

15

(31,122

)

(29,166

)

(60,288

)

(69,180

)

NET CURRENT ASSETS

97,258

1,155

98,413

131,022

TOTAL ASSETS LESS CURRENT LIABILITIES

99,326

1,155

100,481

133,779

NET ASSETS

99,326

1,155

100,481

133,779

FUNDS

17

Unrestricted funds

99,326

116,698

Restricted funds

1,155

17,081

TOTAL FUNDS

100,481

133,779

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2020 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

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

The financial statements were approved by the Board of Trustees and authorised for issue on 13 November 2020 and were signed on its behalf by:

Ms D Lennan - Trustee

Mrs T Fatima - Trustee

1.	STATUTORY INFORMATION

Safe Ground is a charitable company, limited by guarantee, registered in England and Wales. The company's registered number and registered office address can be found in the Report of the Trustees.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The charitable company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':

•

the requirements of Section 7 Statement of Cash Flows.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Income from donations or grants is recognised when the charity has entitlement to the funds, any performance conditions attached to the donations or grants have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from contracts in respect of services provided is recognised when, and to the extent that, performance occurs and is measured at the fair value of the consideration receivable.

Income deferred is shown within creditors.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs

Since there is no direct cost to holding Trustee Board meetings and no Trustee Board expenses are reimbursed, governance costs only include the independent examination fee.

Allocation and apportionment of costs

Support costs include all those overhead costs of office, utility services and other services and costs, which are in support of the activity. They have been allocated to activity cost categories on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Debtors

Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.

Creditors

Creditors are recognised when the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

3.	DONATIONS AND LEGACIES

2020

2019

£

£

Donations

287

360

Grants

117,302

105,646

Contracts

100,550

127,220

218,139

233,226

Grants received, included in the above, are as follows:

2020

2019

£

£

The Tudor Trust

14,968

43,146

The Henry Smith Charity

-

40,000

Dulverton Trust

27,500

2,500

The Emmanuel Kaye Foundation

4,167

6,667

John Armitage Charitable Trust

20,000

13,333

The National Lottery Community Fund

9,000

-

Elizabeth Jack Fund

36,667

-

Goldsmith Fund

5,000

-

117,302

105,646

4.	OTHER TRADING ACTIVITIES

2020

2019

£

£

Fundraising events

710

978

5.	INVESTMENT INCOME

2020

2019

£

£

Deposit account interest

248

209

6.	CHARITABLE ACTIVITIES COSTS

Direct

Support

Costs (see

costs (see

note 7)

note 8)

Totals

£

£

£

Charitable activities

206,881

45,514

252,395

7.	DIRECT COSTS OF CHARITABLE ACTIVITIES

2020

2019

£

£

Staff costs

150,129

131,043

Printing, postage and stationery

1,869

1,902

Conferences, events and business development

3,621

2,788

Freelancers

33,784

55,255

Travel

15,756

26,162

Training

-

843

Project Production Costs

222

150

Research materials

1,500

1,750

206,881

219,893

8.	SUPPORT COSTS

Information

Governance

Management

Finance

technology

costs

Totals

£

£

£

£

£

Charitable activities

36,471

5,958

685

2,400

45,514

Included in finance costs is £360 (2019: £360) in respect of fees charged by the Independent Examiner for the provision of payroll services.

Support costs, included in the above, are as follows:

Management

2020

2019

Charitable

Total

activities

activities

£

£

Insurance

3,723

4,060

Telephone

1,503

2,725

Sundries

1,023

2,685

Rent

26,773

26,486

Office equipment

1,282

1,486

Staff training

1,478

1,661

Depreciation of tangible and heritage assets

689

918

36,471

40,021

Finance

2020

2019

Charitable

Total

activities

activities

£

£

Bank charges

209

138

Financial outsourcing

5,749

6,366

5,958

6,504

Information technology

2020

2019

Charitable

Total

activities

activities

£

£

Computer running costs

685

1,335

Governance costs

2020

2019

Charitable

Total

activities

activities

£

£

Independent examiners' fee

2,400

2,400

9.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2020

2019

£

£

Depreciation - owned assets

689

918

10.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2020 nor for the year ended 31 March 2019.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2020 nor for the year ended 31 March 2019.

11.	STAFF COSTS

2020

2019

£

£

Wages and salaries

129,713

114,192

Social security costs

10,336

11,251

Other pension costs

10,080

5,600

150,129

131,043

The average monthly number of employees during the year was as follows:

2020

2019

Charitable project staff

4

3

No employees received emoluments in excess of £60,000.

The key management personnel compensation during the year was £58,685 (2019: £55,053).

12.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

fund

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

143,413

89,813

233,226

Other trading activities

978

-

978

Investment income

209

-

209

Total

144,600

89,813

234,413

EXPENDITURE ON

Charitable activities

Charitable activities

180,378

89,775

270,153

NET INCOME/(EXPENDITURE)

(35,778

)

38

(35,740

)

RECONCILIATION OF FUNDS

Total funds brought forward

152,476

17,043

169,519

TOTAL FUNDS CARRIED FORWARD

116,698

17,081

133,779

13.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

machinery

fittings

Totals

£

£

£

COST

At 1 April 2019 and 31 March 2020

22,476

1,936

24,412

DEPRECIATION

At 1 April 2019

20,730

925

21,655

Charge for year

436

253

689

At 31 March 2020

21,166

1,178

22,344

NET BOOK VALUE

At 31 March 2020

1,310

758

2,068

At 31 March 2019

1,746

1,011

2,757

14.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Prepayments and accrued income

7,629

8,784

15.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade creditors

-

1,190

Social security and other taxes

3,722

3,122

Accruals and deferred income

56,566

64,868

60,288

69,180

Accruals and deferred income includes deferred income of £54,166 (2019: £62,468).

16.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2020

2019

£

£

Within one year

18,603

24,804

Between one and five years

-

18,603

18,603

43,407

17.	MOVEMENT IN FUNDS

Net

movement

At

At 1/4/19

in funds

31/3/20

£

£

£

Unrestricted funds

General fund

116,698

(17,372

)

99,326

Restricted funds

The Henry Smith Charity

17,081

(17,081

)

-

The National Lottery Community Fund

-

1,155

1,155

17,081

(15,926

)

1,155

TOTAL FUNDS

133,779

(33,298

)

100,481