TWINING ENTERPRISE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017

Transcription

1 Charity Registration No Company Registration No (England and Wales) ANNUAL REPORT AND FINANCIAL STATEMENTS

2 LEGAL AND ADMINISTRATIVE INFORMATION Trustees Secretary N Kullar A Deeth (Appointed 1 February 2017) C Mazzi (Appointed 1 February 2017) T Brunwin (Appointed 1 February 2017) L Meek (Appointed 1 February 2017) A Stewart (Appointed 12 July 2017) O Jacobs Charity number Company number Principal address Registered office Auditor Bankers 84 Uxbridge Road Ealing London W13 8RA 84 Uxbridge Road Ealing London W13 8RA H W Fisher & Company Acre House William Road London United Kingdom NW1 3ER Unity Trust Bank Plc Nine Brindleyplace Birmingham B1 2HB

3 CONTENTS Page Trustees' report 1-7 Statement of Trustees' responsibilities 8 Independent auditor's report 9-10 Statement of financial activities 11 Balance sheet 12 Statement of cash flows 13 Notes to the accounts 14-24

4 Board of Trustees Report for the year ended 31 March 2017 The Board of Trustees presents their report and audited financial statements for the year ended 31 March Reference and Administrative Information Charity name: Twining Enterprise Charity registration number: Company registration number: Registered office: 84 Uxbridge Road Ealing London W13 8RA Board of Trustees C. Mazzi N. Kullar T. Brunwin A. Deeth Treasurer Chair A. Stewart ACA L. Meek CBE Secretary O. Jacobs Senior Management Team (as at 1 st Jan 2018) O. Jacobs Interim Chief Executive/Head of Service T. Douthwaite Deputy Head of Services P. Spicer Finance Manager M. Hayes IT & Information Manager J. Phaure Communications Manager M. Burrett Programme Manager Auditors H W Fisher & Company, Acre House, William Road, London NW1 3ER Bankers Unity Trust Bank plc, Nine Brindleyplace, Birmingham, B1 2HB 1

5 Our Aims and objectives Purposes and Aims Founded in 1995, Twining exists to improve mental wellbeing through helping people with mental health problems either stay in work, or get into sustained employment. Twining believes that every Londoner with mental health problems who wants to work should be able to access support when needed. Ensuring our work delivers our aims We have referred to the guidance contained in the Charity Commission s general guidance on public benefit when reviewing our aims and objectives and planning our activities. We review the success of our key activities and the benefits they have brought to the people we exist to help. In particular, the Board of Trustees consider how planned activities will contribute to the aims and objectives they have set. The focus of our work Our main objectives for the year continued to be the delivery of evidence-based services that enable people with mental health needs to gain and sustain mainstream employment, education and volunteering. The strategies we used to meet these objectives included: Engaging clients within primary and secondary care mental health services Further embedding the leading evidence-based IPS (Individual Placement & Support) model of employment support and service quality improvement Delivering service in wider community settings across the mental health spectrum Growing and strengthening our presence and relationships in London boroughs Offering services that enable employers to manage workplace mental health How our activities deliver public benefit Our main activities, and who we aim to help are described below. All our charitable activities focus on meeting the employment and wellbeing needs of people with mental health problems and are undertaken to further our charitable purposes for the public benefit. Who used and benefited from our services? Over the year, our funding developments have enabled us to support residents to a total of 2,165 people with mental health problems from 12 London boroughs Hounslow, Harrow, Brent, Camden, Islington, Haringey, Barnet, Greenwich, Bexley, Bromley, Lewisham and Richmond. As context, there are approximately 2000 people receiving community based mental health support for severe and enduring mental health problems per annum in each of our boroughs of operation; with up to an estimated with Public Health estimating 25,000 30,000 in each borough eligible for primary care based services for common mental health problems. Our funding limits those we can help, for example, each funded Employment Advisor can typically provide service to between individual clients per annum. We allocate our services by prioritising referrals from health and social care services and based on initial assessment of an individual s personal motivation to pursuing/keeping work. All our services are provided free to our clients. Equal access to our services is important to us, with monitoring of access to our services by gender, age, ethnicity, disability, faith and sexual orientation integral to all our services. We are aware from NHS data that there is an over-representation of black and minority ethnic communities within mental health services nationally, particularly in urban areas. 2

6 We believe equal access to our services is vital to our success and that successful outcomes must be shared by all communities that use our services. Our figures show that those we are able to help broadly reflect these statistics. Further information about who benefits directly from our services is explained in the analysis of performance and achievements below. Our main area of charitable activity is supporting people with mental health problems into work through bespoke support, through the provision of information and advice within primary and secondary care health services. Overall, during the year we have successfully supported 567 people to gain/maintain mainstream employment. These activities and the achievements that flow from our work are described below. 1. Vocational Services within Healthcare (Integrated) During the year we have provided service to 1,361 people from within clinical mental health services. This activity has been divided across primary and secondary levels of health care as follows: a. Primary Care Services This area of service has been sustained over the year with services based within Hounslow s, Brent s, Richmond s and Harrow s Improving Access to Psychological Therapies services. Twining Employment Advisors are integrated into clinical teams across these boroughs, providing help and advice to local residents with common mental health problems to enable them to gain employment, return from sick leave or maintain a job if at risk of losing it. Funding for these services was provided by NHS Hounslow, Brent Clinical Commissioning Group, NHS Harrow/Central North West London Trust and Richmond Council and has been sufficient to employ 12 Employment Advisors over the year. Staff operate as integral members of mental healthcare teams, promoting and delivering service in partnership with clinical staff. Promotional leaflets and posters were made available in doctors surgeries, employers offices and a wide range of community based services. This has supported varied access routes to our service, namely via clinicians, GPs, self-referral and from employers. Feedback has been positive and is informing further development of this service. We have delivered this service as part of a developing network of similar providers informing developing practice across London. Individual advice and support is provided on an appointment basis, with frequency based upon the assessed needs of each client. This allows for an individualised service that aims to help each client overcome their specific difficulties and achieve their own goals. Some 769 people have accessed the primary care element of the service during the year. In addition to breaking social exclusion and stigma through work-related support, we have also been able to refer clients to our partners for other needs such as housing, debt, or social service related issues. b. Secondary Care The secondary care-based work of the charity provides support to people with severe and enduring mental health problems who are unemployed and want to secure work. This year we have maintained our IPS service in Barnet, Camden, and Haringey as well as supporting clients in Richmond. We have employed a total of 10 Employment Advisors in secondary care settings in total supporting 592 clients across the various boroughs 2. Community Based Services Recognising that there are many people who do not engage with local NHS mental health services or who prefer to receive vocational support outside of clinical mental health services we have continued to deliver community based information, advice, guidance and employment support. 3

7 Advice and guidance and pre-employment support have been delivered by Employment Advisors working on an outreach basis at a range of local community based settings. This has been delivered in Camden, Islington, Greenwich, Bexley, Bromley and Lewisham. These services have engaged 804 clients, providing one to one and group based support. 3. Services for Employers The year has seen further development and delivery of services for employers, aimed at enabling them to positively support employees and customers with mental health needs. The charity has delivered training to 162 people in workplaces around London to help them better manage and support employees or customers with mental health needs. These activities directly support the charity s aims, making workplaces more positive towards mental health. We plan to further develop this activity to establish improved new income streams in the future. Financial Review New contracts secured during the year 2015/2016 within the London Boroughs of Haringey, Camden as well as Jobcentre Plus and via social investors continued to deliver funds throughout the year and other contracts were extended including Barnet and Richmond. Contracts ended with Brent in August and Camden at the year-end. These and new funding sources described below have delivered an increase in Twining s income for the year of 206,560, up over 20% on 2015/16 to 1,210,589. Expenditure, particularly on new contract mobilization, has also increased over last year, by 152,879 (15%) to a total of 1,170,386. This results in a small surplus for the year of 40,203, an improvement over the previous year s small deficit and fund balances rising to 243,383 at 31 March Principal Funding Sources The principal funding sources for the charity are by way of grant and contract income from Richmond, Camden, Islington, Barnet, Harrow and Haringey Councils, Oxleas NHS Foundation Trust and NHS Hounslow, NHS Harrow, NHS Brent, London Councils and Jobcentre Plus. Additionally the charity has benefited from Social Impact Bond revenue provided by Social Finance in partnership with Haringey Council. In November 2016 Twining signed the West London Alliance IPS Trailblazer contract with London Councils. This is the largest contract Twining has taken on, with a contract value of 1,950,000 operating across 7 West London boroughs. This contract runs until Dec ,000 has been earned by way of a restricted grant from the Big Lottery s Building Better Opportunities fund, enabling Twining to prepare a bid for a major service contract. This bid was successful and a contract accepted which commenced in August 2017 representing a restricted grant of up to 1,780,000 for IPS services in the same boroughs but different wards from IPS Trailblazer. A further 21,990 was earned from employer training services during the course of the year. Reserves Policy The Board of Trustees has examined the charity s requirements for reserves in light of the main risks to the organisation. It aims to establish a policy whereby expenditure commitments for the coming six months are available in free reserves, with firm plans to achieve this. This would represent a figure of approximately 540,000 on the 2016/17 figures. The reserves are needed to meet the working capital requirements of the charity and the Trustees believe that at this level they would be able to continue the current activities of the charity in the event of a significant drop in funding. The two new major contracts, IPS Trailblazer (commenced November 2016) and IPS Works (August 2017), represent a significant increase in working capital requirement. However, both contracts have been 4

8 negotiated with features which alleviate the cash-flow impact; IPS Works is a cost recovery model and Trailblazer includes a 60% fixed service fee payable monthly. The level of free reserves available to the charity has increased to 223,337. The Trustees intend to move towards the required level of reserves in the future. The charity s strategy is to build our reserves through planned operating surpluses, targeting increases in donations, social investment and unrestricted giving. In the short term they will ensure that good risk management standards and practices exist and have also considered the extent to which existing activities and expenditure could be curtailed, should such circumstances arise. Plans for Future Periods The charity plans continuing the activities outlined above in the forthcoming years subject to satisfactory funding arrangements. Twining was successful in an application for support from the Social Business Trust. This will strengthen capacity across the organisation in service of delivering more impact for clients as well as modernizing and streamlining processes to meet this aim. Financial match funding support has been offered for a Business Development Position which will enable the charity to explore diversifying its income streams. The charity s strategic plan aims to ensure future activities are informed by clients changing needs, and the aim to strengthen finance and governance arrangements. Structure, Governance and Management Governing Document The organisation is a charity and company limited by guarantee, incorporated on 13 April 1995 and registered as a charity on 25 July The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding 1. Recruitment and Appointment of Management Committee The directors of the company are also the charity s Board of Trustees for the purposes of charity law and under the company s Articles are known as members of the Management Committee. Under the requirements of the Memorandum and Articles of Association one third of the members of the Management Committee must step down, based upon the longest serving, at each AGM but are eligible for re-election. All members of the Management Committee give their time voluntarily and received no benefits from the charity. The Management Committee seeks to ensure that the needs of our client group are appropriately reflected through the diversity of the trustee body. With developing services around London and a diverse client group we have continued to seek new trustees from the region, with diverse backgrounds and relevant skills. R. Harries, S. Nunney, S. Fitzpatrick and Z. Haque stepped down from the Board of Trustees with Shantanou Chundur (Chair) moving on. Members of the charity supported our plan to develop a strengthened Board that would provide improved governance supporting the new growth and strategic aim of the charity. 5 new Board appointments were made including a new Chair of Trustees after a thorough recruitment process. 5

9 Trustee Induction and Training New Trustees receive an induction into the organisation to familiarise themselves with the charity and the context within which it operates. These cover: The obligations of Management Committee members. The main documents which set out the operational framework for the charity including the Memorandum and Articles. Resourcing and the financial position as set out in the latest published accounts. Future plans and objectives Relevant Charity Commission publications and guidance Steps to improve on-boarding visit, staff day Risk Management The Management Committee has conducted a review of the major risks to which the charity is exposed. Where appropriate, systems or procedures have been established to mitigate the risks the charity faces. Ongoing external risks to funding have led to our strategic plan committing to diversification of funding and activities. Internal control risks are reduced by procedures for authorisation of larger purchases. Procedures are in place to ensure compliance with health, safety and wellbeing of staff, volunteers, clients and visitors to our offices. These procedures are periodically reviewed to ensure that they continue to meet the needs of the charity. Organisational Structure The charity currently has a Management Committee of 5 members (the Trustees) from a variety of professional backgrounds relevant to the work of the charity, who meet at least quarterly and are accountable for the strategic direction and policy of the charity. The Interim Chief Executive holds the position of Secretary. Day to day responsibility for the provision of the services is delegated to the Interim Chief Executive who is supported by our Management Team (see page 1) The Interim Chief Executive is responsible for ensuring that the charity delivers the services specified, also for identification and application for new funding, and strategic direction. The Head of Service, Deputy Head of Service and Team Leader posts have responsibility for the day to day operational management of services in their relevant geographic areas, supervision of the delivery teams and also ensuring that team members continue to develop their skills and working practices in line with good practice. The Information and IT Manager s role is to ensure that service delivery is supported by our ICT infrastructure and that information on clients needs and progress is accurately captured, managed and reported. The Finance Manager is responsible for ensuring income and expenditure is well managed and that all the accounting requirements of the charity are met. In accordance with company law, as the company s directors, we certify that: so far as we are aware, there is no relevant audit information of which the company s auditors are unaware; and we have taken all the steps that we ought to have taken in order to make ourselves aware of any relevant audit information and to establish that the charity s auditors are aware of that information. 6

10 Auditors HW Fisher & Co was re-appointed as the charitable company s auditors during the year and has expressed their willingness to continue in that capacity. This report has been prepared in accordance with FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, Accounting and Reporting by Charities the Statement of Recommended Practice for charities applying FRS102 and the Companies Act Approved by the Board of Trustees on 23 January 2017 and signed on its behalf by: Mrs. Liz Meek CBE Chair Mr. Oliver Jacobs Secretary 7

11 STATEMENT OF TRUSTEES' RESPONSIBILITIES The trustees, who are also the directors of Twining Enterprise for the purpose of company law, are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing these accounts, the trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and - prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Companies Act They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities

12 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF We have audited the financial statements of Twining Enterprise for the year ended 31 March 2017 set out on pages 11 to 24. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102. 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 Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of trustees and auditor As explained more fully in the statement of Trustees' responsibilities set out on page 8, the trustees, who are also the directors of Twining Enterprise for the purposes of company law are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the accounts in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors. Scope of the audit of the accounts An audit involves obtaining evidence about the amounts and disclosures in the accounts sufficient to give reasonable assurance that the accounts are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charitable company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the accounts. In addition, we read all the financial and non-financial information in the Trustees' Annual Report to identify material inconsistencies with the audited accounts and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. Opinion on accounts. In our opinion the accounts: - give a true and fair view of the state of the charitable company's affairs as at 31 March 2017 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - In our opinion, based on the work undertaken in the course of our audit, the information given in the Trustees' Report, which includes the Directors Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared, is consistent with the accounts, and the Directors Report, included within the Trustees' Report, has been prepared in accordance with applicable legal requirements. Opinion on other matter prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of our audit, the information given in the Trustees' Report, which includes the Directors Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared, is consistent with the accounts, and the Directors Report, included within the Trustees' Report, has been prepared in accordance with applicable legal requirements. In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified any material misstatements in the Directors Report included within the Trustees' Report

13 INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the accounts 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. Julian Challis (Senior Statutory Auditor) for and on behalf of H W Fisher & Company Chartered Accountants Statutory Auditor Acre House William Road NW1 3ER United Kingdom 24 January

14 STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT Unrestricted Restricted Total Total funds funds Notes Income and endowments from: Donations and legacies ,000 40, Charitable activities 4 1,144,539-1,144, ,855 Investments Other income 6 25,087-25,087 17,939 Total income 1,170,589 40,000 1,210,589 1,004,029 Expenditure on: Raising funds 7 4,600-4,600 1,700 Charitable activities 8 1,117,742 48,044 1,165,786 1,015,807 Total resources expended 1,122,342 48,044 1,170,386 1,017,507 Net income/(expenditure) for the year/ Net movement in funds 48,247 (8,044) 40,203 (13,478) Fund balances at 1 April ,136 8, , ,658 Fund balances at 31 March , , ,180 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act

15 BALANCE SHEET AS AT 31 MARCH Notes Fixed assets Tangible assets 12 20,046 16,389 Current assets Debtors , ,033 Cash at bank and in hand 271,963 59,674 Creditors: amounts falling due within one year , ,707 (173,152) (32,916) Net current assets 223, ,791 Total assets less current liabilities 243, ,180 Income funds Restricted funds 16-8,044 Unrestricted funds 243, , , ,180 The accounts were approved by the Trustees on 24 January 2018 Mrs. Liz Meek CBE Trustee Company Registration No

16 STATEMENT OF CASH FLOWS Notes Cash flows from operating activities Cash generated from operations ,240 11,128 Investing activities Purchase of tangible fixed assets (11,979) (16,688) Interest received Net cash used in investing activities (11,951) (16,503) Net cash used in financing activities - - Net increase/(decrease) in cash and cash equivalents 212,289 (5,375) Cash and cash equivalents at beginning of year 59,674 65,049 Cash and cash equivalents at end of year 271,963 59,

17 NOTES TO THE FINANCIAL STATEMENTS 1 Accounting policies Company information Twining Enterprise is a private company limited by guarantee incorporated in England and Wales. The registered office is 84 Uxbridge Road, Ealing, London, W13 8RA. 1.1 Accounting convention These accounts have been prepared in accordance with FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland ( FRS 102 ), Accounting and Reporting by Charities the Statement of Recommended Practice for charities applying FRS 102, the Companies Act 2006 and UK Generally Accepted Accounting Practice as it applies from 1 January The charity is a Public Benefit Entity as defined by FRS 102. The accounts are prepared in sterling, which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest. The accounts have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. 1.2 Going concern At the time of approving the accounts, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the accounts. Futher details are provided in the Financial Review section of the Trustees' Report. 1.3 Charitable funds Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts. 1.4 Incoming resources Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation. 1.5 Resources expended Expenditure is included on an accruals basis as the liability is incurred. Expenditure includes VAT which is reported as part of the expenditure to which it relates. Costs of generating funds comprise the costs associated with attracting voluntary income and the costs of trading for fundraising purposes. 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. Support costs have been allocated in full to the single charitable activity - Vocational Advice. Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity. These costs have also been allocated to the single charitable activity

18 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 1 Accounting policies (Continued) 1.6 Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses. Depreciation has been provided at the following rates in order to write the assets off over their estimated remaining useful lives:- Fixtures, fittings & equipment 33% straight line The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year. 1.7 Impairment of fixed assets At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ). 1.8 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.9 Financial instruments The charity has elected to apply the provisions of Section 11 Basic Financial Instruments and Section 12 Other Financial Instruments Issues of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. Basic financial liabilities Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method

19 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 1 Accounting policies (Continued) Derecognition of financial liabilities Financial liabilities are derecognised when the charity s contractual obligations expire or are discharged or cancelled Employee benefits The cost of any unused holiday entitlement is recognised in the period in which the employee s services are received. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits Leases Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease. 2 Critical accounting estimates and judgements In the application of the charity s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The trustees are satisfied that there are no critical accounting estimates or judgements in the financial statements. 3 Donations and legacies Unrestricted Restricted Total Total funds funds Donations and gifts Contracts and grants receivable - 40,000 40, ,000 40, For the year ended 31 March Donations and gifts Other

20 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 4 Charitable activities Grants receivable - 14,057 Income not received - (12,349) Income receivable under contracts 1,144, ,147 1,144, ,855 Analysis by fund Unrestricted funds 1,144,539 For the year ended 31 March 2016 Unrestricted funds 971,798 Restricted funds 14, ,855 Contracts SEEC 221, ,578 London Borough of Harringey 35,680 92,170 London Boroughs of Camden and Islington 92,737 55,263 London Borough of Richmond 174, ,051 Brent Clinical Commissioning Group 34,565 94,600 Hounslow Clinical Commissioning Group 133, ,495 London Borough of Barnet 106, ,000 London Borough of Harrow 40,000 40,000 Remploy 136, ,182 London Councils - Trailblazer 148,870 - Other 20,400 22,808 1,144, ,

21 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 5 Investments Interest receivable Other income Other income 25,087 17,939 7 Raising funds Costs of generating donations and legacies Other fundraising costs 4,600 1,700 4,600 1,700 For the year ended 31 March Costs of generating donations and legacies 1,

22 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 8 Charitable activities Staff costs 854, ,917 Depreciation and impairment 8,322 6,459 Other staff costs 19,061 10,788 Communications 7,051 8,407 IT costs 2,448 4,526 Rent and rates 26,010 22,042 Client costs 18,990 16,212 Other costs 4, , ,351 Share of support costs (see note 9) 216, ,260 Share of governance costs (see note 9) 8,315 12,196 Analysis by fund Unrestricted funds 1,117,742 Restricted funds 48,044 1,165,786 1,015,807 1,165,786 For the year ended 31 March 2016 Unrestricted funds 1,009,794 Restricted funds 6,013 1,015,

23 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 9 Support costs Support costs Governance costs Basis of allocation Staff costs 139, , ,716 Other staff costs 9,903-9,903 9,833 Communications 2,616-2,616 4,232 IT costs 7,027-7,027 4,459 Rent and rates 25,973-25,973 15,359 Administration 4,383-4,383 7,747 Promotion and marketing 3,254-3,254 2,206 HR support 12,243-12,243 5,677 Bank charges Professional fees 10,704-10,704 18,296 Quality standards ,200 Audit fees - 5,760 5,760 9,235 Governance Accountancy - 2,250 2,250 2,878 Governance Legal and professional Governance Other governance costs Governance 216,337 8, , ,456 Analysed between Charitable activities 216,337 8, , ,456 Governance costs includes payments to the auditors of 5, 760 (2016-5, 490 ) for audit fees and 1,800 ( ) for other services. 10 Trustees None of the trustees (or any persons connected with them) received any remuneration or were reimbursed for expenses by the charity

24 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 11 Employees Number of employees The average monthly number employees during the year was: Number Number Services Employment costs Wages and salaries 909, ,042 Social security costs 85,042 73, , ,633 The charity's key management personnel comprises the Board of Trustees and the senior management team. Included within the senior management team are the following:- Chief Executive, Finance and ICT Manager, Project Implementation Manager, Head of Operations, Head of Service and 2 Services Managers. Total benefits received by the senior management team in the year amounted to 229,769 (2016: 233,785). The trustees received no remuneration during the year (2016: none). There were no employees whose annual remuneration was 60,000 or more

25 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 12 Tangible fixed assets Fixtures, fittings & equipment Cost At 1 April ,492 Additions 11,979 At 31 March ,471 Depreciation and impairment At 1 April ,103 Depreciation charged in the year 8,322 At 31 March ,425 Carrying amount At 31 March ,046 At 31 March , Financial instruments Carrying amount of financial assets Debt instruments measured at amortised cost 76, ,741 Carrying amount of financial liabilities Measured at amortised cost 14,555 11, Debtors Amounts falling due within one year: Trade debtors 72, ,454 Other debtors 4,287 4,287 Prepayments and accrued income 48,036 14, , ,

26 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 15 Creditors: amounts falling due within one year Other taxation and social security 24,417 21,186 Trade creditors 3,788 3,052 Other creditors 3,678 1,118 Accruals and deferred income 141,269 7, ,152 32, Restricted funds Balance at 1 Incoming Resources Balance at 31 April 2016 resources expended March 2017 Red Nose Day - Evening Standard 8,044 - (8,044) - BIG grant - 40,000 (40,000) - 8,044 40,000 (48,044) - The Evening Standard Red Nose Dispossessed Fund, managed by the London Community Foundation, was awarded to break down barriers to employment for people with mental health problems in Greenwich, Bexley and Bromley. Big Lottery Fund awarded a development grant to help the charity to develop the IPS Works project. 17 Analysis of net assets between funds Unrestricted Restricted Total funds funds Fund balances at 31 March 2017 are represented by: Tangible assets 20,046-20,046 Current assets/(liabilities) 223, , , , Operating lease commitments At the reporting end date the charity had outstanding commitments for future minimum lease payments under noncancellable operating leases, which fall due as follows: Within one year 36,392 20,138 Between two and five years 23,496 20,950 59,888 41,

27 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 19 Related party transactions Bob Kitchin, the Chief Executive of Twining Enterprise up until September 2017, is Trustee of SEEC. During the year, Twining Enterprise received contract income from SEEC of 221,035 (2016: 179,578) as well as a grant of nil (2016: 14,057). 20 Cash generated from operations Surplus/(deficit) for the year 40,203 (13,478) Adjustments for: Investment income recognised in statement of financial activities (28) (185) Depreciation and impairment of tangible fixed assets 8,322 6,459 Movements in working capital: Decrease in debtors 35,507 11,576 Increase in creditors 140,236 6,756 Cash generated from operations 224,240 11,