bounce back foundation

Bounce Back Foundation

Trustees Report and AuditedConsolidated FinancialStatements

31 March 2018

(A charitable company limited by guarantee)Company number 07675301Charity number 1144297

Contents

Reports

Reference and administrative details

Report of the Chief Executive Officer

Report of the Trustees

Independent auditor's report 15

Accounts

Consolidated statement of financial activities 19

Balance sheets

Consolidated cash flow statement

Accounting policies

Notes to the financial statements

20

21

22

27

Bounce Back Foundation'

2


Trustees Iqbal Wahhab (Chair)

Charles Appleton

Veronica Daly (resigned 15 April 2018)Mark Essex (appointed 8 March 2018)Francesca Findlater

Simon Hall (appointed 10 July 2018)Will Prochaska (resigned September 2017)Antony Theodorou

Gary Ward (resigned September 2017)

Key management personnel Francesca Findlater —CEO

Tracey Cleminson —Head of Learning

Jamie Parkes —Resettlement Services

Manager

lan Wallis —Head of Decorating Services

(resigned 13 March 2017)

Registered Office 130 Wood Street

London

EC2V 6DL

Principal office POP Brixton, Unit LOS

49 Brixton Station Road

London

SW9 8PQ

Charity registration number 1144297

Company number 07675301

Auditor Buzzacott LLP

130 Wood Street

London

EC2V 6DL

Bankers HSBC

90 Baker Street

London

WIU 6AX

Bounce Back Foundation 3


Solicitors Hewitsons

Exchange House

482 Midsummer Boulevard

Central Milton Keynes

MK9 2EA


Report of the Chief Executive Officer

As the founder of Bounce Back in 2009, having recently sold a business, I was in able to

fund the development of what I saw then as a response to a huge need, When I visited

prisons I could see people without hope of getting a job and no aspirations for the future, soI started a painting and decorating social enterprise to employ them, which we successfully

did. As is so often the case when a charity or social enterprise begins, so much was learnt

on the job, We wanted to prove the concept, support the individuals and fund the progress

privately. I believed in doing this because I wanted to ensure that the concept was viable

before we sought funding from any source. We were valuably supported along the way and

in 2011 we started to do training and employability preparation for people to come into our

own social enterprise, and so the training organisation and Charity was formed. Also over

the early years the total that I put in personally was f213,939 which continues to be visible

on the Annual Accounts. This amount enabled us to take a larger number of trainees Into

the social enterprise which was clearly our mission but needed financial support. In addition

it enabled us to overcome non-payment of an invoice by a construction company of 845kand other challenges so often part of business, We have had excellent professional

financial advise over the years as to how to account for this, but the sum continues to raise

questions every year. I therefore felt it might be helpful to confirm that this amount is

backed by a letter from me saying that I am not going to pull it out of the organisation at any

point unless and until the Charity can afford to pay it back, and it was the development

capital needed to get the organisation, which has since grown and proved its ability to do

what I had hoped it would do when it began in 2011 to where it is now. The mission

remains to employ and support individuals ourselves in our social enterprise, partner

employers to take people on when they leave prison and ultimately give people hope that ajob and support will enable them to start to turn their lives around and find a new future.

F, Findlater CEO


Report of the Trustees 31 March 2018

The trustees present their statutory report together with the financial statements for the yearended 31 March 2018.

The report has been prepared in accordance with Part Vill of the Charities Act 2011 and

constitutes a directors' report for the purpose of company legislation.

The financial statements have been prepared in accordance with the accounting policies setout on pages 22 to 26 of the attached financial statements and comply with the charitable

company's memorandum and articles of association, applicable laws, and Accounting and

Reporting by Charities: Statement of Recommended Practice applicable to charities

preparing their accounts in accordance with the Financial Reporting Standard applicable in

the United Kingdom and Republic of Ireland (FRS 102).

Objectives and Activities

Purpose and main activitiesThe primary purpose of the Foundation is to reduce re-offending by ensuring as many ex-offenders as possible are able to access the Bounce Back training and work experience

programme, prior to joining the painting and decorating company, Bounce Back ProjectLimited or being supported to work within construction companies. Bounce Back Foundation

owns 100'/0 of the Ordinary Share Capital of the limited company.

The Objects of the Foundation are the rehabilitation of ex-offenders, the relief ofunemployment and the advancement of education and training; principally for ex-offenders

but also other socially excluded or marginalised people by providing them with:

+ Tools and mechanisms to assist in finding employment

+ Identifiable routes into employment

+ Work experience, training, mentoring and advice 8 guidance on victim empathy and

workplace and citizenship responsibilities

Public BenefitThe Trustees confirm that they have complied with the duty in Section 4 of the Charities Act

2011 to have due regard to the Charity Commission's general guidance on public benefit,

'Charities and Public Benefit'. The board of trustees have referred to the guidance contained

in the Charity Commission's general guidance on public benefit when reviewing the aims

and objectives and in planning the Charity's future activities.

Bounce Back has been consistent in its mission since it began six years ago. With a focuson painting and decorating, over the years additional skills training such as dry lining and

scaffolding have been added in response to labour market demand, It starts early

intervention in custody, then provides people in and out of custody with education and

qualifications leading them into employment in Bounce Back's own social enterprise, as well

as with their partners who include the construction industry, housing associations and Local

Authorities.



ActivitiesTo achieve its objectives, the Bounce Back programme is outlined below:

In 2017/18 Bounce Back expanded its training provision, in addition to KMP Brixton

and Wandsworth, we now train candidates at HMP Pentonville, ISIS, and Feltham. Wenow have seven state-of-the-art training centres in Painting & Decorating, Dry Lining,

Scaffolding, Aerial Window Cleaning and Employability Skills. This has resulted in anincrease in the number or training spaces, and we now have capacity to train up to 130people a day across all the centres. Further, in addition to the range of vocational

training, our offer has been supplemented by personal development programmes

designed to ensure our participants have both technical and soft skills required to

develop a career in construction and associated industries. Alongside this in 2017/18we planned the expansion of the range of training and skills development on offer

through our partnerships with Blue Sky, Landsec, and NJC, This will result in additional

intensive personal development and Aerial Window cleaning courses planned to comeonline in 2018/19,

We have also increased our community provision with a pop-up community workshop

in Brixton. The scope of our community programmes was again augmented by a rangeof commissioned or funded programmes; Mind the Gap which is a consortium of sixorganisations designed to support different aspects of the rehabilitation journey; Out for

Good programme, a partnership funded by Sheriffs and Recorders which offers

dedicated six month pre and post release intensive support, mentoring and

employment advocacy, Our community-based programmes support training for

participants with additional barriers into the workplace. While our partnership with Crisis

provides training and skills development for homeless participants, the HMPSS CFOcontract allows us to target participants with multiple barriers into work and is delivered

throughout London including at probation offices, while our membership of the Mind the

Gap programme has allowed us to fund additional training. This will supplement thetraining we offer to the hardest to reach participants in a number of other prisons, and

probation offices throughout London, through the HMPPS CFO contract. Bounce Backnow offers a substantial range of training and skills programmes developed in

conjunction with employers that focus on getting participants straight into employment

post release, and thus reduce the risk of re-offending.

Employment: Our model provides participants with training and skills as well as abespoke support working with participants and employers to support sustainable joboutcomes and careers, In addition to the work we undertake with employers. BounceBack social enterprise provides opportunities for some participants who are not yet

ready for the workplace to undertake further training and development. Subject to thelevel the participants have reached, they join the social enterprise as a 'trainee' or as ahigher level painter decorator. This is the beginning of their paid self-employment and

their continued training on-site with Bounce Back. Their journey is the same when they

join partner organisations, including Land Securities amongst others, when our

caseworkers support them into jobs in this sector.



Achievements and Performance

AchievementsSince the Foundation was established it has:

Taken over eight hundred ex-offenders and put them into training and subsequent

employment,

+ Maintained contact with over 70% of its trainees- the rest have either obtained

employment elsewhere or set up their own businesses.

+ Acknowledged a duty of care to the public by providing a structured environment toteach life skills to get people to re-engage back in to society and challenge their

approach to crime in the interest of protecting the public.

Been described as a "social innovator" by HMPPS. The Bounce Back approach is to

equip every participant with the mindset, qualifications and skills to work on any site,

+ Created a core team of up to twenty professional decorators working for the social

enterprise on a variety of projects, including residential and large construction industry

projects, as well as Local Authority and Housing Association commissions. A number of

our participants have stayed with Bounce Back for 18 months or more, within the social

enterprise.

Measurement

Recognising the importance of measurement, in 2014 a Social return on investment report

was completed at the end of 2014. Since then we have published a review annually that

includes evaluation of costs and value we achieve through our work, along with key

outcomes and impact of the services we deliver, Our 2017/18 report shows that we

successfully supported one hundred and nineteen people into work across a range ofdisciplines in the construction industry from labourers, trainee site managers, scaffolders,

dry liners, painters and decorators, and trainee construction managers. The measured

reoffending rate from participants we support into work is 12%, this compares favourably

with the national average of 29.5% occurring within the first year of release. In addition we

also undertake impact measurement for our funders, on special projects and the

construction companies we work with.

Difference made to beneficiaries and wider societyThere are currently over 80,000 people in prison and a government reported re-offending

rate of over 50%. It costs over 840k p.a. to keep someone in prison for a year and the costof reoffending is E13bn. A job cuts the likelihood of re-offending by 50% and this is what

Bounce Back seeks to address.

When reoffending occurs, judges and courts are giving people back to Bounce Back in

preference to putting them back in prison. This helps to ensure re-offending is minimised

and centres on an indirect saving to the public purse, especially given the average costs of



Achievements and Performance (continued)

Difference made to beneficiaries and wider society (continued)

prison is estimated at 637,240 per offender per year.

In addition, continued growth in the construction industry has meant that trained Bounce

Back painters and decorators, dry liners and scaffolders are increasingly in demand. The

prison population provides a pool of potential trainee workers that the construction industry

is keen to tap into, which has the potential to change the employment landscape

dramatically, as well as reducing re-offending rates,

Bounce Back, through its unique relationships across the prison and the community, as well

as its longstanding commitment to employing ex-offenders, provides a valued link between

the prison population and the construction industry. In recognition of this, the Bounce Back

kitemark is being used by its construction industry partners.



Financial Review

Financial statementsThe group achieved an overall operating surplus of F43,745 during the year (2017-F48,649), with a surplus on unrestricted funds of F28,745 (2017 - F48,649) and a surplus on

restricted funds of F15,000 (2017 -Fnil).

Income of F1,567,030 for the current year was predominantly from three sources: delivery of

prison training contracts and case management (F1,039,484); charitable activities including

painting and decorating (F180,629); and direct funding from a number of sources, including

Trusts and Foundations, private funders and company donations (F346,913). Overall

income increased by 6294,330, this was primarily as a result of increased income from

training to prisoners and ex-offenders and increased demand and delivery of our casemanagement support and employability programmes.

The Foundation does not fundraise directly with individuals and therefore is not registered

with the Fundraising Regulator. If donations from individuals are received the Foundation

aims to protect personal data and never sells data or swaps data with other organisations.

The Foundation manages its own fundraising activities, The Foundation undertakes to react

to and investigate any complaints regarding its fundraising activities and to learn from them

and improve its service. During 2017/18, the Foundation received no complaints about its

fundraising activities.

We take this opportunity to thank just some of our supporters: Walgreens Boots Alliance,

Haberdashers, Matrix Chambers, The Triangle Trust, Drapers, Big Lottery Fund, Noel

Buxton Trust, Weavers, Evan Cornish, Austin and Hope, Pilkington Trust, The Tom AP

Rhys Price memorial Trust, t, Aberdeen Charitable Trust, Bromley Trust, 29th May 961 CT,

Odin CT, Tudor Trust, The Leathersellers Company, Rayne Foundation, Peter Cruddas.

Total expenditure for the year was F1,523,285 (2017 - F1,224, 057).

Bounce Back Project, which is operated through the trading subsidiary and included within

the group figures, reported a deficit of F7,761 during the year (2017 —deficit of f50,912).Bounce Back Project is integral to our ability to provide an effective pathway to sustainable

employment and as such our primary focus remains on providing as many employment

opportunities as efficiently as possible.

Financial positionThe group's total funds are made up of a restricted funds of F51,237 (2017 - f26,237) and

an unrestricted fund deficit of 6168,978 (2017 - F197,723). The unrestricted funds are made

up of a surplus of 269,283 within the charity (2017 - F38,477) and cumulative deficits within

Bounce Back Project of F238,261 (2017 - f236,200).

Bounce Back Project is supported through redeemable preference shares issued to the

founder of F213,939, which will not be repaid until the company has sufficient funds to do

so. These preference shares were provided to Bounce Back Project in order to finance the



Financial Review (continued)

Financial position (continued)

establishment of the business prior to it achieving surpluses. Excluding the founder

preference shares, Bounce Back Project Ltd has net liabilities of F350,215 (2017-2342,454).

Going concernThe trustees have assessed whether the use of the going concern assumption is

appropriate in preparing these accounts. The trustees have made this assessment in

respect to a period of one year from the date of approval of these accounts.

The total deficit in funds on the group balance sheet of 6117,741 (2017 - f161,486) includes

the redeemable preferences shares issued by the founder, which are included as a liability

on the group balance sheet. The founder has committed not to redeem these shares until

sufficient funds are available to do so, Excluding these shares, the group had total funds atthe balance sheet date of 896,198 (2017 - 652,453). Taking into the account the group

financial position, the surplus reported for the year and future financial projections, the

trustees of the charity have concluded that there are no material uncertainties related to

events or conditions that may cast significant doubt on the ability of the charity to continue

as a going concern.

Reserves policyIt is the policy of the trustees to continue to build the general reserve to ensure sufficient

operating costs are freely available. The trustees also intend to achieve future surpluses in

Bounce Back Project in order to build its reserves.

Plans for the Future

Bounce Back continues to focus on its core mission to reduce reoffending by the provision

of pathways into training and sustainable employment for ex-offenders and people with

additional barriers into sustainable employment. Building on our results to date, in addition

on to its seven prison training centres, Bounce Back is responding to demand from

hundreds of people who have left other prisons, via probation services, partner

organisations and its own website. In 2017/18 we opened a community facility that allowed

us to train over 100 participants as part of the Mind the Gap project.

In 2018/19 we are working with a key number of other providers in the sector in bidding for

the new prison education framework contracts set to replace the current framework for the

start of the 2019/20 financial year. Additionally we will be bidding in partnership with anumber of other organisations to work on the Mayor's construction academy in London. This

will allow us to expand and strengthen our current case management offer and achieve our

aims of increasing the employment outcomes we are able to achieve by over 50/0 in

2018/19 when compared with this financial year.

Above all Bounce Back's mission is to meet its objectives by training and employing more

people year on year and helping them to bounce back - not just for now, but for ever.



Structure, Governance and Management

Governing documentThe governing instrument of the Foundation is the Memorandum and Articles of Association

dated 20 June 2011 and amended on 11 October 2011.

ConstitutionBounce Back Foundation was incorporated as a company limited by guarantee on 20 June

2011 and registered as a charity on 17 October 2011.

TrusteesThe Trustees meet regularly during the year to agree the broad strategy and areas ofactivity for the Foundation, including consideration of reserves and risk management

policies and performance. On a regular basis, the Trustees review the major risks facing the

charity. In particular, they consider the risks related to the activities of the charity to ensure

sufficient systems are in place to mitigate the major risks identified.

Each of the trustees is liable to contribute an amount not exceeding f10 towards the assetsof the charitable company in the event of a winding up.

Recruitment, induction and training of trusteesThe Trustees who have served during the year and since the year end are set out on page1. The power to appoint new Trustees is exercised by a majority in number of the existing

Trustees. Where there is a need for new Trustees, this would be identified by the remaining

Trustees.

New trustees are invited to meet with the management team and other member staff, aswell as ex- offenders who are participating on the scheme, to discuss the operation of the

Charity and the Social Enterprise. They receive all the relevant documentation relating to

the constitution of the Foundation and minutes of recent Board meetings. Additional training

is provided as required and are encouraged to attend appropriate external training events

where these will facilitate the undertaking of their role.

Relationship with Bounce Back Project Limited and Bounce Back EmploymentServices CICBounce Back Project Ltd is a wholly owned subsidiary of Bounce Back Foundation. On 20September 2013, Bounce Back Project Limited was incorporated and took on the trade and

assets of the Community Interest Company, which has remained dormant since. We have

initiated procedures to wind up the CIC.

Remuneration of key management personnelThe key management personnel include the CEO, Head of Learning, Resettlement Services

Manager and Contracts Manager. The remuneration is discussed and approved by the

Board of Trustees.



Structure, Governance and Management (continued)

Risk management

The trustees have established a risk management process comprising:

An annual review of the risks the Foundation may face summarised in a 'Risk Register';

+ The establishment of systems and procedures to mitigate those risks identified; and

The implementation of procedures designed to minimise any potential impact on the

charity should those risks materialise.

The principal risk faced by the Foundation is its financial sustainability, as noted above in

the "going concern" review.

Statement of 7rustees' ResponsibilitiesThe trustees (who are also directors of Bounce Back Foundation for the purposes 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 Practice).

Company law requires trustees to prepare financial statements for each financial year which

give a true and fair view of the state of the affairs of the charitable company and of the

incoming resources and application of resources, including the income and .expenditure, ofthe charitable company for that period. In preparing these financial statements, 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 accounting standards have been followed, subject to any

material departures disclosed and explained in the financial statements;

+ prepare the financial statements on the going concern basis unless it is inappropriate to

presume that the charitable company will continue in business.

The trustees are responsible for keeping proper accounting records that disclose with

reasonable accuracy at any time the financial position of the .charitable company and

enable them to ensure that the financial statements comply with the Companies Act 2006.They are also responsible for safeguarding the assets of the charitable company and hence

for taking reasonable steps for the prevention and detection of fraud and other

irregularities.



Statement of Trustees' Responsibilities (continued)

Each of the trustees confirms that;

So far as the trustee is aware, there is no relevant audit information of which the

charity's auditor is unaware; and

Each trustee has taken all the steps that he/she ought to have taken as a trustee in

order to make himself/herself aware of any relevant audit information and to establish

that the charitable company's auditor is aware of that information,

This confirmation is given and should be interpreted in accordance with the provisions of

s418 of the Companies Act 2006.

The trustees are responsible for the maintenance and integrity of the charity and financial

information included on the charity's website. Legislation in the United Kingdom governing

the preparation and dissemination of financial statements may differ from legislation in other

jurisdictions

Ap oved by the Tr a. s and si ned on their behalf by;

F. Findl

Date: t I l2-Q~'~E


Independent auditor's Report Year ended 31 March 2018

Independent auditor's report to the members of Bounce Back Foundation

Opinion

We have audited the financial statements of Bounce Back Foundation (the 'charitable parent

company') and its subsidiaries (the 'group') for the year ended 31 March 2018 which

comprise the consolidated statement of financial activities, the consolidated and charitable

parent company balance sheets, the consolidated statement of cash flows, the principal

accounting policies and the notes to the financial statements. The financial reporting

framework that has been applied in their preparation is applicable law and United Kingdom

Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting

Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted

Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the group's and of the charitable parent

company's affairs as at 31 March 2018 and of the group's income and expenditure for

the year then ended;

have been properly prepared in accordance with United Kingdom Generally AcceptedAccounting Practice; and

+ have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinionWe conducted our audit in accordance with International Standards on Auditing (UK) (ISAs

(UK)) and applicable law. Our responsibilities under those standards are further described in

the auditor's responsibilities for the audit of the financial statements section of our report. Weare independent of the group in accordance with the ethical requirements that are relevant

to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and

we have fulfilled our other ethical responsibilities in accordance with these requirements.We believe that the audit evidence we have obtained is sufficient and appropriate to provide

a basis for our opinion.

Conclusions relating to going concernWe have nothing to report in respect of the following matters in relation to which the ISAs

(UK) require us to report to you where:

the trustees' use of the going concern basis of accounting in the preparation of the

financial statements is not appropriate; or

the trustees have not disclosed in the financial statements any identified material

uncertainties that may cast significant doubt about the group's or the charitable parent

company's ability to continue to adopt the going concern basis of accounting for aperiod of at least twelve months from the date when the financial statements areauthorised for issue.



Other information

The trustees are responsible for the other information, The other information comprises theinformation included in the annual report, other than the financial statements and ourauditor's report thereon, 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.

In connection with our audit of the financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially

inconsistent with the financial statements or our knowledge obtained in the audit orotherwise appears to be materially misstated. If we identify such material inconsistencies or

apparent material misstatements, we are required to determine whether there is a material

misstatement in the financial statements or a material misstatement of the other information.

If, based on the work we have performed, we conclude that there is a material misstatement

of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006In 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 exceptionIn the light of the knowledge and understanding of the group and the charitable parent

company 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 to which theCompanies Act 2006 requires us to report to you if, in our opinion:

~ adequate accounting records have not been kept by the charitable parent company, orreturns adequate for our audit have not been received from branches not visited by us;OI'

~ the charitable parent company financial statements are not in agreement with theaccounting records and returns; or

~ certain disclosures of trustees' remuneration specified by law are not made; or



Matters on which we are required to report by exception (continued)~ we have not received all the information and explanations we require for our audit; or

~ the trustees were not entitled to prepare the financial statements in accordance with the

small companies regime and take advantage of the small companies' exemptions in

preparing the trustees' report and from the requirement to prepare a strategic report.

Responsibilities of trusteesAs explained more fully in the trustees' responsibilities statement, the trustees areresponsible for the preparation of the financial statements and for being satisfied that they

give a true and fair view, and for such internal control as the trustees determine is

necessary to enable the preparation of financial statements that are free from material

misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group's

and the charitable parent company's ability to continue as a going concern, disclosing, asapplicable, matters related to going concern and using the going concern basis ofaccounting unless the trustees either intend to liquidate the group or the charitable parent

company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statementsOur objectives are to obtain reasonable assurance about whether the financial statements

as a whole are free from materia( misstatement, whether due to fraud or error, and to issuean auditor's report that includes our opinion. Reasonable assurance is a high level ofassurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will

always detect a material misstatement when it exists. Niisstatements can arise from fraud or

error and are considered material if, individually or in the aggregate, they could reasonably

be expected to influence the economic decisions of users taken on the basis of thesefinancial statements.

A further description of our responsibilities for the audit of the financial statements is locatedon the Financial Reporting Council's website at www. frc, org. uk/auditorsresponsibilities. This

description forms part of our auditor's report.



Use of our reportThis report is made solely to the charitable company's members, as a body, in accordancewith Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken

so that we might state to the charitable company's members those matters we are required

to state to them in an auditor's report and for no other purpose. To the fullest extent

permitted by law, we do not accept or assume responsibility to anyone other than the

charitable company and the charitable company's members as a body, for our audit work,

for this report, or for the opinions we have formed.

Hugh Swainson (Senior Statutory Auditor)

For and on behalf of Buzzacott LLP, Statutory Auditor

130 Wood StreetLondon

EC2V 6DL


Consolidated statement of financial activities Year to 31 March 2018

Notes Unrestricted Restrictedfunds funds

E f

Total2018

E

Total2017

F

Income from:Donations and legaciesCharitable activities

Other trading activities

Investments

2 188,1133 1,039,4848 180,629

4

158,800 346,9131,039,484

180,6294

284,599771,505216,585

17

Total income 1,408,230 158,800 1,567,030 1,272, 700

Expenditure on:Charitable activities

Raising funds

4 1,268,6965 110,789

143,800 1,412,496 1,119,488110,789 104,569

Total expenditure 1,379,485 143,800 1,523,285 'I,224, 057

Net income and net movement in

funds for the year 28,745 15,000 43,745 48,649

Reconciliation of funds

Total funds brought forward (197,723) 36,237 (161,486) (210,135)

Total funds carried forward (168,978) 51,237 (117,741) (161,486)

All income and expenditure derives from continuing activities,

The statement of financial activities includes all recognised gains and losses,


Balance sheets As at 31 March 2018

Notes

Group2018 2017

f(Restated)

Charity2018 2017

f f(Restated)

Fixed assetsTangible assetsInvestments

Total fixed assets

9 12,594 11,894 12,594 11,7558 100 100

12,594 11,894 12,694 11,855

Current assetsDebtorsCash at bank end in hand

Current liabilities:Creditors: amounts falling due

within one year

Net current assets

10 177,380 94,681 1621089 373,96323,446 87,203 23,369 86,595

200,826 181,884 185,458 460,558

11 (117,222) ~141,325 (73,427) ~(77,402

83,604 40,559 109,031 383,156

Non-current liabilities:Creditors. ' amounts felling due

after one year 1/12 (213,939) (213,939)

Net (liabilities)l assets (117,741) (161,486) 121,725 395,011

The funds of the charity:Restricted funds

Unrestricted funds:

. General fund

.Bounce Back Project Ltd

13 51,237 36,237 51,237 36,23713

69,283 38,477 70,488 358,774(238,261) (236,200)

(117,741) (161,486) 121,725 395,011

Approved and authorised b Board on t I (t~) RAlhnd signed on their behalf by.

F Flndlater

Trustee

Bounce Back Foundation

Company No. 07675301


Consolidated cash flow statement Year to 31 March 2018

2018 2017F

Cash flows from operating activities:Net cash (used in) provided by operating activities (note A) (57,248) 70,415

Cash flows from investing activitiesPurchase of plant and equipment

Interest received

Net cash used in investing activities

(6,513)4

(3,430)17

(6,509) (3,413)

Change in cash and cash equivalent in the year

Cash and cash equivalents at 1 April 2017

Cash and cash equivalents at 31 igarch 2018

(63,757)

87,203

67,002

20,201

23,446 87,203

A Reconciliation of net income to net cash flow from operating activities2018 2017

Net movement in funds per statement of financial activitiesAdjustments for:Depreciation chargeInterest receivableDecrease in stocks(Increase)/decrease in debtors

(Decrease) in creditors

Net cash (used in) provided by operating activities

43,745 48,649

5,813(4)

(82,699)(24,103)

4,826(17)600

25,025

(8,668)(57,248) 70,415


Notes to the financial statements 31 March 2018

The principal accounting policies adopted, judgements and key sources of estimation

uncertainty in the preparation of the financial statements are laid out below.

Basis of preparation

These financial statements have been prepared for the year to 31 March 2018.

The financial statements have been prepared in accordanc'e with Accounting and

Reporting by Charities: Statement of Recommended Practice applicable to charities

preparing their accounts in accordance with the Financial Reporting Standard applicable in

the United Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS 102) and the

Charities Act 2011.

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

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

pound.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of Bounce

Back Foundation and its trading subsidiary made up to the balance sheet date.

The Foundation has taken advantage of Section 408 of the Companies Act 2006 and not

included its own statement of financial activities in these financial statements. The

Foundation's net income for the year was F50,306 (2017 —net income 251,189) before

recognising an impairment provision against intra-group debt of 2324,793, which resulted

in net expenditure for the year of 6274,487.

Critical accounting estimates and areas of Judgement

Preparation of the financial statements requires the Trustees and senior management to

make significant judgements and estimates. The items in the financial statements where

these judgements and estimates have been made include:

+ Estimating the useful economic life of tangible fixed assets for the purposes of

calculating depreciation;

+ Estimating the likelihood of receipt of accrued income balances; and

+ Estimating any necessary impairment provision against amounts receivable, including

the assessment of Intra-group debt.



Assessment of going concernThe Trustees' have assessed whether the use of the going concern assumption is

appropriate in preparing these accounts. The Trustees have made this assessment in

respect to a period of one year from the date of approval of these accounts,

The Trustees' consider the going concern basis to be appropriate. The Trustees'

assessment is based on:

an extension of a key training contract from August 2018 through to March 2019. The

extension gives the Foundation reasonable certainty over a significant

income/expenditure stream in the short term. The Trustees are optimistic that the

Foundation's re-tendering for future training contract work in 2019 will be successful,

In event of the contract not being renewed the Trustees have identified options to

reduce the scale of the Foundation's activities;

receiving confirmation from the holder of the redeemable preference shares that

repayment will not be demanded until the subsidiary company is in a position to make

payment; and

by reference to the improved operational performance in the year under review and

projected future profit forecasts that indicate the Foundation and its social enterprise

subsidiary company will be able to operate profitability in future years.

The Trustees therefore assesses that the group will have sufficient resources to meet its

liabilities as they fall due for a period of twelve months from the date of the approval of the

financial statements.

Income

Income is recognised in the period in which the group or charity is entitled to receipt and

the amount can be measured reliably and it is probable that the income will be received.

Income is deferred only when the group or charity has to fulfil conditions before becoming

entitled to it or where the donor or funder has specified that the income is to be expended

in a future accounting period.

Income comprises donations, legacies and income from charitable and trading activities.

Donations are recognised when the charity has confirmation of both the amount and

settlement date. In the event of donations pledged but not received, the amount is accrued

for where the receipt is considered probable. In the event that a donation is subject to

conditions that require a level of performance before the charity is entitled to the funds, the

income is deferred and not recognised until either those conditions are fully met, or the

fulfilment of those conditions is wholly within the control of the charity and it is probable

that those conditions will be fulfilled in the reporting period.



Income (continued)

Income from charitable and trading activities is recognised to the extent that it is probable

that the economic benefits will flow to the group or charity and the income can be reliably

measured. They are measured as the fair value of the consideration received or

receivable, excluding discounts, rebates, value added tax and other sales taxes,

Interest on funds held on deposit and interest on loans and investments are included when

receivable and the amount can be measured reliably by the charity.

Expenditure recognition

Expenditure is recognised as soon as there is a legal or constructive obligation committing

the group or charity to make a payment to a third party, it is probable that a transfer of

economic benefits will be required in settlement and the amount of the obligation can bemeasured reliably.

All expenditure is accounted for on an accruals basis and is classified as follows:

+ Expenditure on generating funds include the salaries, direct costs and allocated

support costs associated with generating fundraising income.

+ Expenditure on charitable activities comprises expenditure on the charity's primary

charitable purposes as described in the Trustees' report. The costs for each activity

include the direct costs of casework, training and special project and include allocated

support costs, which are apportioned on the level of activity in each area. In addition,

the group's trading costs are classified as "social enterprise" and include all

expenditure applicable to the trading activities,

Allocation of support and governance costsSupport costs represent indirect charitable expenditure. In order to carry out the primary

purposes of the charity it is necessary to provide support in the form of personnel

development, financial procedures, provision of office services and equipment and asuitable working environment.

Governance costs comprise the costs involving the public accountability of the charity

(including audit costs) and coqts in respect to its compliance with regulation and good

practice,

Support costs and governance costs are apportioned using percentages based on the

time spent on the activities by the employees of the charity.

Gifts in kind

Gifts for onward distribution to beneficiaries of the charity are included at their fair value asat the time of distribution.

Assets donated to the charity for its own use are included in income and expenditure at

their fair value as at the time of the gift,

Items donated to the charity for resale are included within income when sold and no value

is placed on stock of such items at the year-end.



Tangible fixed assetsAll assets with an expected useful life exceeding one year are capitalised.

Depreciation is provided at the following annual rates in order to write off each asset over

its estimated useful life:

Motor vehicles

Computer and office equipment

25% p.a. on reducing balance33% p.a. on cost

Investments'The charity's investment in its subsidiary company is valued at cost.

DebtorsDebtors are recognised at their settlement amount, less any provision for non-

recoverability. Prepayments are valued at the amount prepaid.

Cash at bank and ln hand

Cash at bank and in hand represents such accounts and instruments that are available on

demand or have an original maturity of less than three months,

Creditors and provisionsCreditors and provisions are recognised when there is an obligation at the balance sheet

date as a result of a past event, it is probable that a transfer of economic benefit will be

required in settlement, and the amount of the settlement can be estimated reliably.

Creditors and provisions are recognised at the amount the charity anticipates it will pay to

settle the debt.

Financial instruments

The Foundation and group only holds basic financial instruments as defined in FRS102.The financial assets and financial labilities of the group and their measurement basis is asfollows;

Financial assets —trade and other debtors are basic financial instruments and are debt

instruments measured at amortised cost as detailed in note 10. Prepayments are not

financial instruments. Amounts due to the parent company are held at face value less any

impairment.

Cash at bank- is classified as a basic financial instrument and is measured at face value,

Financial liabilities —trade creditors, accruals and other creditors are financial instruments

and are measured at amortised cost as detailed in notes 11 and 12. Taxation and social

security are not included in the financial instrument disclosure definition. Deferred income

is not deemed to be a financial liability, as cash settlement has already taken place and

there is an obligation to deliver services rather than cash or another financial instrument.



Classification of shares as debt or equityNon-equity financial instruments issued by the subsidiary company are presented as a

financial liability in the balance sheet, as detailed in note 12, and are measured initially at

fair value net of transactions costs and thereafter at amortised cost until extinguished on

conversion or redemption.

Fund accountingUnrestricted funds comprise the general fund and the Bounce Back Project Limited fund.

The general unrestricted fund comprises those monies which may be used towards

meeting the charitable objectives of the Foundation at the discretion of the Trustees, The

Bounce. Back Project Limited fund represents the cumulative funds position within the

social enterprise operating though the trading subsidiary.

The restricted funds are monies raised for, and their use restricted to, a specific purpose,

or donations subject to donor imposed conditions.

Operating leasesRentals applicable to operating leases where substantially all of the benefits and risks of

ownership remain with the lessor are charged on a straight-line basis over the lease term.

PensionsContributions in respect to defined contribution schemes are recognised in the statement

of financial activities in the year in which they are payable to the relevant scheme.



1. Correction of prior period errors.The redeemable preference shares issued by the subsidiary company were previously

classified as equity and included as part of the charity's funds on consolidation. In the

charity's balance sheet, a notional reclassification was made to remove the reference to aminority shareholding within the analysis of the charity's unrestricted funds.

In accordance with FRS102, the preference shares have been reclassified as a financial

liability in the consolidated balance sheet.

The correction has had the impact of increasing group non-current liabilities by 6213,939for the year ended 31 March 2017 and eliminating the group's net asset position of

252,453 as previously stated to a net liability position of F161,486. The correction has no

impact on the charity net asset position as previously reported.

2. Income from donations and legacies2018 2017

UnrestrictedIndividual donations

Corporate donations

Trust and Foundation donations

Donations in kind

64,151120,462

3,500

32,4852,965

203,600

188,113 239,050RestrictedCorporate donations

Trust and Foundation donations

55,000103,800

5,00040,549

158,800 45,549

Total 346,913 284, 599

3 Income from charitable activities2018 2017

Training income

Casework

Special projects

779,915176,56083,009

657,442114,063

1,039,484 771,505

Income from charitable activities was unrestricted for both the years ended 31 March 2018and 31 March 2017.



4. Expenditure on charitable activities

Unrestrictedfunds

F

Restricted 2018 2017funds Total funds Total funds

F

Direct costs:Casework

Training

Special projectsSocial enterprise

107,181560,605

39,473187,652

43,60035,10065, 100

150,781595,705104,573187,652

78,014482,480

267,498

Support costs (note 6)2018 Total expenditure on charitableactivities

894,911373,785

143,800 1,038,711 827,992373,785 291,496

1,268,696 143,800 1,412,496 1,119,4882017 Total expenditure on charitableactivities 1,073,939 45,549 1,119,488

5. Expenditure on raising funds

2018f

2017F

Direct costs:Fundraising costsSalary costs

Support costs' (note 6)Total expenditure on raising funds

22,868 22,58620,639

22, 58681,983

43,50767,281

110,789 104,569

Expenditure on raising funds was unrestricted for both the years ended 31 March 2018and 31 March 2017.



6. Support and governance costs

Supportcosts

Cost ofCharitable generating

activities fundsE E

2018E

2017E

Staff costsConsultants

Property costsProfessional feesMarketing

Office costsDepreciation

Other administration costs

84,900121,30450,25647,36419,55623,961

4,80821,636

15,28221,835

9,0468,5243,5204,313

8663,895

100,182143,13959,30255,88823,07628,2745,674

25,531

52,75898,37864,56355, 18117,21169,295

4,40111,692

373,785 67,281 441,066 373,479

Governance costs

Unrestricted Unrestrictedfunds funds

Project CharityE E

2018E

2017E

Auditors' remuneration

Legal costsAccountancy

114 7,601 7,715 10,86015,409 15,409 2,715

114 32,878 32,992 41,359228 55,888 56,116 54,934

Governance costs incurred by the Charity are included as part of support costs.Governance costs of f229 incurred in the subsidiary company, "Projects", are included

within "expenditure on raising funds" (note 4),

No expenses were reimbursed to Trustees during the year ended 31 March 2018 (2017:F225 to one Trustee),

No Trustees received any remuneration during the year ended 31 March 2018 (2017:Enil).



7 Staff costs

Wages, salariesSocial securityPension costsRecruitment costs

20186

584,77756,538

2,2792,279

2017E

384,45315,723

14,750645,873 414,926

The average number of employees during the year was 26 (2017: 13).

No employee earned 860,000 per annum during the year (2017 —None)

Key management personnel

The key management personnel in charge of directing and controlling, running and

operating the group's activities on a day-to-day basis comprise the Trustees together with

the Chief Executive Officer, the Head of Learning, the Head of Resettlement Services and

the Head of Decorating Services. The total remuneration (including taxable benefits and

employers national insurance contributions) payable to the key management personnel

during the year was f130,733 (2017: f92,048).

8 Trading Subsidiary

The Charity owns 100% of the ordinary share capital of Bounce Back Project Limited, aUK incorporated and registered company, consisting of 100 ordinary shares of F1. BounceBack Project Limited is a painting and decorating social enterprise, offering training and

work experience.

Its summarised results for the year ended 31 March 2018, as extracted from the unaudited

financial statements, are summarised below:

2018 2017

(restated)

Turnover

Direct costsOperating expensesProfit (loss) for the year

181,091(138,466)

(50,336)

216,585(188,161)

(79,336)(7,761) (50,912)

Total fixed assetsTots I current assetsTotal liabilities:

Current liabilities

Redeemable preference shares

Net liabilities

15,296139

41,723

(384,216)(213,939)

(365,588)(213,939)(564,154) (556,393)

Turnover includes 6180,629 of trading income and F462 of donations (2017 —wholly

trading income of 6216,585)



9 Tangible fixed assets.

GroupMotor ONce Computer

vehicles equipment equipment TotalE f E

CostAt 1 January 2017Additions In yearDlsposals

At 31 March 2018

19,4753,500

22,975

901 10,079 30I4553,013 6I513

(1,275) (1,276)901 11,817 36,693

DepreciationAt 1 April 2017Charge ln yearDlsposals

At 31 March 2018

13,604

1,687

15,291

225 4,732 18,661300 3,826 6,813

(1,275) (1,275)525 7,283 23,099

Net book value

At 31 March 2018

At 31 March 20177,685

5,871

376 4,534 12,594

676 5,347 11,894

Charity

CostAt 1 January 2017Additions In year

At 31 March 201 8

19,4753,500

901 8,804 29&180

3,013 6I51322,975 901 11,817 36,693

Motor ONce Computervehicles equipment equipment Total

E

Depreciation

At 1 April 2017Charge In year

At 31 March 2018

13,6041,687

15,291

225 3,596 171425300 3,687 5,674525 7,283 23,099

Net book value

At 31 March 2018

At 31 March 2017

7,685

5,871

376 4,534 12,594

676 5,208 11,755

10 DebtorsGroup

2018 2017f

Charity

2018 2017E

Trade debtorsAmounts due from group undertakings

Other debtors

161,493

15,887

86,936

7,745

146,202

15,887

46,025320,293

7,645

177,380 94,681 162,089 373,963



10 Debtors (continued)

An impairment provision of 6324,793 was recognised in the year against amounts due

from the subsidiary undertaking. The impairment provision has no impact on result

reported in the consolidated statement of financial activities.

11 Creditors; amounts falling due within one yearGroup Charity

2018 2017 2018 2017f. P f F

Trade creditors

Amounts owed to TrusteesTaxation and social security

Other creditors

32,05411,39660,68413,088

47,640 30,87729,39649,074 32,46215,215 13,088

40,20310,00016,51910,680

117,222 141,325 76,427 77,402

12. Creditors: amounts falling due after one yearGroup

2018 2017f. E

(Restated)

Redeemable preference shares (note 213,939 213,93914)

213,939 213,939

Charity

2018 2017E E

As described in note 1, redeemable preference shares previously classified as equity

have been reclassified as a liability in accordance with FRS102. Cornparatives have

been restated.

The preference shares were issued on 31 January 2014 by the subsidiary company to

the Founder of the Charity, F Findlater, in settlement of loans made by her to fund start-

up costs incurred by the subsidiary company and its predecessor prior to 2014.

The preference shares were issued at par and are non-voting but rank pari passu with

the ordinary shares on a return of capital or winding up. They are not entitled to receive

distributions.

The preference shares entitled the subsidiary company to redeem the shares at any

time after two year from the date of issue by the company giving three months notice

and the holder of the redeemable shares the right to request redemption after the expiry

of five years from the date of issue on giving six months notice. The holder has given an

undertaking not to exercise her rights of redemption until the subsidiary company is financially

secure and able to make repayment,



13 Funds

Group

Balanceat

1 April 2017f

Income ExpenditureF

TransfersE

Balanceat

31 March2018

Unrestricted funds:, General fund

. Bounce Back Project Ltd

Total unrestricted funds

38,477 1,227, 139 (1,191,833)(236,200) 181,091 (187,652)

(4,500) 69,2834,500 (238,261)

(197,723) 1,408,230 (1,379,485) (168,978)

Restricted fundsVan fund

Restricted donations

Scaffolding training

Total restricted funds

26,237158,800 (143,800)

10,00036,237 158,800 (143,800)

26,23715,00010,00051,237

Total funds

Charity

(161,486) 1,567,030 (1,523,285) (117,741)

Balanceat

1 April 2017f

Transfers/Income Expenditure impairment

F f. E

Balanceat

31 March2018

Unrestricted funds 358,774 1,227, 139 (1,190,632) (324,793) 70,488

Restricted funds

Van fund

Restricted donations

Scaffolding training

Community workshop

Casework

Special projectsPASMA Training

Total restricted funds

26,237

10,00073,20046,00030,000

12,0000

(73,200)(46,000)(30,000)

36,237 158,800 (143,800)

26,237

10,0003,000

12,00051,237

Total funds 395,011 1,385,939 (1,335,633) (324,793) 121,725

Unrestricted funds - group

The group's unrestricted funds have been allocated between those held by the Foundation

and those held by the subsidiary, Bounce Back Projects. The deficit in the subsidiary

represents the retained losses incurred by the company since inception. The disclosures

above represents a change in presentation from that adopted in prior years but has no

impact on the net fund position as previously reported. As explained in note 10 an

impairment provision of E324,793 was recognised in the year against amounts due from

the subsidiary undertaking. The impairment provision has no impact on the result reported

in the consolidated statement of financial activities.



13. Funds (continued)

Restricted funds —Group and Charity

The Foundation receives grants for specific purposes where there is a restriction on how

the grant can be spent. These funds are separated from other sources of income and

expenditure is allocated against the fund where it is permitted under the terms of the

original grant.

14 Related party transitions

Included within creditors is f11,936 (2017: f29,396) due to F Findlater, a trustee/director

of the Foundation and a director of the subsidiary company, for funds introduced to

support the Foundation's and subsidiary's cash flow.

In addition and as disclosed in note 12, F. Findlater is the holder of the redeemable

preference shares issued by the subsidiary, Bounce Back project Limited, The par value

of the shares amounted to 6213,939 (2017- F213,939).

15 Operating lease commitments

Future minimum lease commitments under non-cancellable operating leases in respect of

land and buildings as at 31 March 2018 were as follows:

Group

2018 2017f

Charity

2018E

2017E

Operating leases which expireIn less than one year 23,620 11,909 23,620

23,620 11,909 23,62011,90911,909


bounce back foundation

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