lapwing suffolk accounts 2013-2014

Lapwing Suffolk Limited Registered office: 8a The Square Martlesham Suffolk IP5 3SL Company Registered in England and Wales Number: 07175060 Charity Registration Number: 1136324

Lapwing Suffolk Limited - a company limited by guarantee Annual Report and Accounts Year End 31 August 2014

Page | 1 Lapwing Suffolk Limited Annual Report and Accounts 2013/14

Contents

Page No

Trustees’ Report 2

Independent Auditors’ Report 19

Statement of Financial Activities 21

Balance Sheet 22

Notes to the Accounts 23 Reference and Administrative Details 34

This document can be made available in other formats on request.


Trustees’ Report

The Board of Trustees of Lapwing Suffolk presents its report and audited accounts for the year ended 31 August 2014. In preparing this report the Trustees have complied with the Charities Act 2011, the Companies Act 2006, the Accounting and Reporting by Charities; Statement of Recommended Practice (revised 2005) (SORP) and applicable accounting standards. In setting the objectives, developing strategies and undertaking activities, the Trustees have given careful consideration to the Charity Commission’s guidance on public benefit. Welcome to Our Annual Report 2013/14 I am very pleased to report that Lapwing has continued to develop and consolidate its work delivering bespoke education to marginalised young people. As you will read in this report we have increased the number and range of young people we work with. We celebrated the achievements of our students with an amazing graduation event which was attended by past and present students, our new patron, The Mayor of Ipswich and local press and radio. In the latter part of the year we were informed of a significant reduction to our funding. This will have an impact upon our capacity, income and student numbers for the year 2014-15. The trustees and the management team have taken appropriate action to reduce our overheads, including a move to new premises and a staff restructure. New projects and income streams have been identified and are currently being developed across the organisation. Despite these changes the forthcoming year will be a financially challenging year for Lapwing. We have a highly experienced, motivated staff team and board of trustees who are working together with determination and tenacity to secure alternative funding streams to support our future work providing bespoke education for these vulnerable young people.

Sue Chesworth (pictured below) Chief Executive


What We Do And Where We Work

We provide personalised education programmes for young people throughout Suffolk. Our educational programmes include: functional skills, independence skills and vocational skills. All Lapwing students work towards externally accredited schemes.

We work with a wide range of education and work experience provider organisations throughout Suffolk.

We put individual students’ abilities and aspirations at the heart of our work. If there is no appropriate provision currently available we work to identify partner organisations with whom to develop new provision.

We work collaboratively with health, social care and mainstream education providers to design education programmes which incorporate support from other agencies.

Students at Chantry Park


Our Vision To prove that there is no ceiling on abilities. Our Mission

To create and deliver personalised, sustainable, community-based education for marginalised young people.

To extend the reach, influence and impact of this activity in the wider context of society by publishing evidence and research, through articulating our unique approach and providing advocacy.

Image by Isaac, Lapwing student studying photography Our Values

Passionate… Our passion is to provide inclusive education for young people who are on the margins of society and mainstream education.

Independent… We have an independent ethos and encourage all students to develop independent lifestyles.

Autonomy… Students’ autonomy is core to our work. Respectful… We respect individuality and difference of opinion. We respect our students’ absolute

right to dignity and privacy. Professional… We maintain high professional standards in all our work. Flexible, Practical, Realistic… We feel strongly that our organisation should provide students with the

skills to lead fulfilling lives.


Strategic Objectives

1. Products and Services To continue to develop the quality and range of personalised, sustainable, community-based education for marginalised young people.

2. Communications To consolidate effective internal and external communication systems, to enable the organisation to evaluate all aspects of our work and to communicate with a wider audience.

3. Finance To continue to protect the long term financial sustainability of the organisation by diversifying income streams, developing existing funding, and managing expenditure to provide value for money in all our services.

4. People To attract, develop and retain individuals, both paid and unpaid, who can support the achievement of our charitable objectives.

Lapwing volunteer Hannah Berresford (right)

Student Achievement


Public Benefit Requirements Each year we review what we have achieved and the outcomes of our work, particularly the educational impact of our work for young people on the margins of society. We have due regard to the public benefit guidance published by the Charity Commission in compliance with its duties under section 4 of the Charities Act 2011.

This guidance sets out two key principles: The organisation must have an identifiable benefit. The benefit must be to the public or a section of the public.

It is our main purpose to provide personalised educational programmes for the benefit of young people who are on the margins of society. We also attend to the health, wellbeing and safety of the young people we work with. Lapwing continues to develop innovative education programmes for more students each year. September 2010 45 students September 2011 52 students September 2012 61 students September 2013 64 students September 2014 72 students

Graduation Day June 2014


Student Achievement Accredited Qualifications

Beekeeping

Arts Award: Bronze: 4 Silver: 4 Gold: 0

AQA Unit Award Scheme Agriculture and Horticulture: 12 Independence and Key Skills: 15 Hospitality and Catering: 13 Craft Skills: 8 D&T Textiles: 3 Hair and Beauty: 10 Environmental Studies: 23 Outdoor Education: 6 Music: 10 Leisure: 1 ICT: 1 Home Economics: Child and Development:1 Home Economics: Food: 4 Life Skills: Literacy: 9 D&T: Resistant Materials: 2 Drama and Theatre: 4 Work-related learning: 1 Total Number of Units: 123

City and Guilds Functional Skills: Entry Level 1 Maths: 1 Entry Level 2 Maths: 2 Entry Level 3 Maths: 7 Entry Level 1 English: 1 Entry Level 2 English: 1 Entry Level 3 English: 6 Level 1 Maths: 2 Level 2 Maths: 0 Level 1 English: 6 Level 2 English: 1

ABC Award Practical Conservation Entry Level: 3

City and Guilds: Skills For Working Life E2 Award: 1

NPTC City and Guilds Practical Horticulture Skills Level 1 Award: 1

GCSE Maths: 1 Employability for Life Bronze: 3 Silver: 0 Gold: 0

EDEXCEL BTEC Extended Certificate in Vehicle Technology Level 2: 1


Our Organisational Achievements

1. We have continued to develop and deliver high quality innovative education programmes for young people on the margins of society. Please see the Student Achievement Section of this report.

2. We have continued to develop and consolidate the Lapwing infrastructure : All basic student information, including programme start and finish dates, attendance and key

professionals engaged with the individual student are recorded on SIMS (management information system).

The analysis of this evidence enables us to review the progress of individual students and set future targets and goals with the students. The SIMS system also enables us to record staff details, their attendance and training. The analysis of this evidence supports the staff development and review system.

We have clarified our staff structure, negotiated new job descriptions, roles and responsibilities.

We have continued to refine our budget monitoring and reporting procedures and these are now clearly linked to specific areas of our work.

Our communication and marketing strategy has enabled us to secure some additional income and in-kind services to support the work of Lapwing.

3. We have appointed two new trustees who have enhanced the range of our trustee skill set. This has provided sound strategic leadership for Lapwing during a period of change and development.

4. Actor and Theatre Director Hugh Fraser (pictured below) has accepted the patronage of Lapwing, raising the profile of Lapwing with coverage in local press and media.

5. At our annual Graduation Day we were delighted to welcome several graduates from previous years who returned to talk about their achievements since they have left Lapwing. We were particularly pleased to hear that one of them, Fred, has secured a place on a degree course at Bedford University for September 2014.

Hugh Fraser


Student Achievement

To validate student achievement, and encourage aspiration to achieve higher standards, we continue to use a wide range of awarding bodies. 2013-2014 has been hugely successful in City and Guilds Functional Skills Maths and English with a 100% increase in successful outcomes at Level 1 and 2. We are particularly pleased that two students have progressed through 2 levels during the year. All post-16 students achieved 2 AQA Unit Award Scheme units, on average, in an ever-increasing range of vocational areas. There has been 100% increase in students achieving Arts Award Silver and Bronze level. We have added Mechanics to the range of subjects students have taken with one student successfully completing a Level 2 Mechanics qualification through EDEXCEL. Student Transition To Opportunities After Their Lapwing Programme For the first time, two students secured work placements at FCC Environment Recycling Centres (Emile pictured below) as part of their Lapwing programmes. In both cases the students made such a positive impact that they were able to continue as volunteers when their Lapwing programme came to an end. A number of students have continued as volunteers in a range of social enterprises and Community Interest Companies (CICs) after completing their Lapwing programmes. A number of students have made effective transition from Lapwing to Adult Services. The transition period from one provision to another is a vulnerable time, therefore it is particularly pleasing that these transitions have been so successful. Many students are working with less support, indicating progression with independence skills and enabling them to access, with greater personal autonomy, the placements of their choice in a range of CICs, Social Enterprises and with partner organisations.


Collaboration With Partner Organisations After a very successful partnership with Gipping Skills Centre a student (pictured below) with significant anxiety and low self-esteem was able to achieve a Level 2 Mechanics certificate. Lapwing provided the additional support to enable him to complete the theory and practical aspects of the course despite his considerable challenges. During this time the student also passed his driving test, giving testament to his hugely increased confidence.

Innovative Approaches To Functional Skills A group of students working at different levels in Maths and English successfully progressed at least 1 level through their involvement in a variety of enterprise projects which included organising a student Christmas party, managing the Lapwing HQ refreshments club (participating student Tim pictured below) and designing a number of business projects for a ‘Dragons’ Den’ style pitch.


Case Studies July 2014 Leavers Niam Habergham (below right with a fellow student) Niam is on the autistic spectrum and has ADHD. He struggles to concentrate unless he has lots of stimulation, he is noise and touch sensitive and finds it hard to manage transition from one provision to another and day-to-day changes in his routine. Prior to being a Lapwing student he was aggressive at times which, on occasions, resulted in physical assault. He also had a very low tolerance for many types of people and places. Niam’s Lapwing programme comprised a placement on a care farm (care farming is the therapeutic use of farming practices), animal care work experience and attending West Suffolk College for half a day a week, undertaking an entry Level 1 basic ICT qualification. Niam also attended a short life skills course at the Info Bar in Bury St Edmunds with Lapwing support, where he successfully worked alongside other young people on understanding emotions, developing social skills and social awareness. By the end of his Lapwing journey, Niam had noticeably matured, demonstrating an ability to discuss and understand sensitive topics that may have previously triggered inappropriate behaviour. He is able to communicate his views and concerns in a much more effective manner now, having better control over expressing and understanding his emotions. In addition to the changes in Niam’s attitude and behaviour, he has gained numerous AQA Unit Award Scheme certificates in both animal care and life skills. Niam is now attending West Suffolk College full time on the ‘Moving to Work’ programme. He receives some support, and his Key Worker claims that he is very committed to the course, getting up at 6:30am four days a week and using the college bus with his peers. Both parents and staff at his home are proud of the progress that Niam has made and are ecstatic that he has been able to access a full-time college placement.


Steven Featley When Steven was referred to Lapwing he was very unwell due to the serious medical condition exterior hepatic billary atresia. At the time he was waiting for a fourth liver transplant. He spent most of year 11 being home tutored between time in hospital. As a result of his condition Steven was displaying some behavioural difficulties. Steven was very often extremely tired which limited his mobility and concentration. Engaging him in education was therefore extremely challenging. Steven’s main ambition was to go into accountancy or business administration. He embarked on a personalised Lapwing programme, accessing one day of home tuition to enable him to work towards GCSE Maths, City and Guilds and Functional Skills Level 2 English. In addition, Steven was responsible for undertaking one day a week of home study. Due to his health, his first year of study was fragmented. However, due to improvements in health and self-esteem, by his second year he was able to start a work experience placement at Beyond The Wall (a renovated walled garden on the Thornham Estate), focusing on office admin work experience and social interaction with peers. Steven left Lapwing having achieved his GCSE Maths and Functional Skills Level 2 English and invaluable work experience. As a consequence, his confidence has improved immensely. He is continuing his journey towards a career in accountancy or business administration and is currently attending Suffolk New College accessing a Business Administration Level 3 qualification three days a week. To attend college three days a week is physically challenging for Steven due to the ongoing complexities of his health. Despite this, he is maintaining a high attendance rate and is progressing well on the course.

Students at Green Light Trust


Moving Forward 2014-2015 We are committed to the following developments in the forthcoming year.

To clarify the range of marginalised young people we work with. This will be based upon analysis of our experience, skill set and identified gaps in available provision.

To further develop our tracking and analysis of soft skill and employability skills. To expand the range of our volunteer base. To develop the use of cloud technology for use throughout the organisation. To further diversify funding streams to support our work with marginalised young people.


Statement of Trustees’ Responsibilities in Respect of the Trustees’ Report and the Financial Statements The Trustees 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 Lapwing Suffolk Limited and of the incoming resources and application of resources, including the income and expenditure, of the Charity for that year. In preparing those 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, and

prepare financial statements 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 which disclose with reasonable accuracy at any time the financial position of Lapwing Suffolk Limited and which enable them to ensure that the financial statements comply with the Companies Act 2006. 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. In so far as the Trustees are aware:

there is no relevant audit information of which the Charity’s auditors are unaware;; and

Trustees have taken all steps they ought to have taken to make themselves aware of any relevant audit information, and to establish that the auditors are aware of that information.

In accordance with the governing document, one-third of Trustees retired from office during the year and were subsequently reappointed.


Structure, Governance and Management Structure The organisation is a charitable company limited by guarantee, incorporated on 2 March 2010 and registered as a charity on 14 June 2010. 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. At 31 August 2014 there were six members. In the event of the company being wound up members are required to contribute an amount as may be required, not exceeding £10. The objects of Lapwing are specifically restricted to the following:

To advance the education of the public in the subject of bespoke vocational learning programmes. To advance the education of students by providing and assisting in the provision of facilities for

education. For the public benefit to promote the education (including social and physical education) of people

under the age of 25 years in setting and in such ways as the charity trustees think fit.

Governance The Trustee Board is legally responsible for the governance and management of Lapwing Suffolk. Traditional business and artistic skills are well represented on the Board. In the event of particular skills being lost due to retirement, extensive efforts are made to ensure these are replaced. Under the terms of the Articles of Association, the number of directors shall not be less than three but shall not be subject to a maximum. Other Trustees are appointed by the Board. No other person or external body is entitled to appoint Trustees. The Trustees are responsible for the actions and activities of the charity. At the first Annual General Meeting, all the directors must retire from office unless a quorate is not present. At each subsequent Annual General Meeting, one third of the directors must retire from office. Trustees are appointed through a process of introduction to the existing Trustees. All new Trustees follow a thorough induction process. The Chair has discussed roles and responsibilities with each Trustee. There is an induction process which includes a briefing to them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision making processes, the business plan and recent financial performance of the charity. During this process they will meet key employees and other Trustees. Trustees are encouraged to attend all the charity’s events and external training courses, which may assist them in undertaking their engagement. The charity has a procedure in place that is designed to ensure that any new Trustee: Is aware of his or her responsibilities as a Trustee Has good understanding of the work of the charity Has an understanding of the charity’s strategy for the future Is provided with information issued by the Charity Commission Is offered ongoing training and information to ensure they are brought up to date with developments in

law.


The Board of Trustees has three sub-committees: The Remuneration Committee The purpose of the Remuneration Committee is to set the pay and conditions of employees of Lapwing. On behalf of the Board of Trustees it will approve:

Employment contracts All aspects of salary including annual salary review and any termination agreements Grades and pay rates assigned to posts Employment policy and any changes to employment policy Fees and other remuneration to be paid for any services Any offer of a non-executive directorship or other external appointment whether remunerated or not

The committee meets as and when required and reports to the Board of Trustees. Members: Lynne Dobney, Sue Chesworth, Dolores Fisher In attendance: Karina Scrivener, Head of Finance The Products and Services Committee The purpose of the Products and Services Committee is to monitor and review the educational service which we provide to our students on behalf of Trustees.

It will review all policies relating to student education and welfare It will make recommendations to the board for strategic educational services development

The committee meets as and when required and reports to the Board of Trustees. Members: Dolores Fisher, Sophy Jones, Sue Chesworth

Governance Committee The purpose of the Governance Committee is to monitor and review all aspects of governance of Lapwing on behalf of the Trustees. The committee meets as and when required and reports to the Board of Trustees. Members: Dolores Fisher, Sue Chesworth In attendance: Karina Scrivener, Head of Finance Management The management of the charity is vested in the Board of Trustees. The Board of Trustees currently meets on a monthly basis and is responsible for the strategic overview of the charity and monitoring the implementation of the strategy and policy throughout the organisation. The Board of Trustees currently consists of six Trustees. They have delegated the day to day management of the charity to a team of managers, which includes two of the Trustees, with overall responsibility to the Chief Executive. Statement of Risks The Board of Trustees has carried out a full review of the risk management framework. The framework in place is to ensure that all key risks which could affect the Charity’s ability to deliver the objectives and achieve the charitable aims are identified and managed. An organisational risk register is maintained which identifies, evaluates and mitigates risks across the key organisational risk areas of governance, operational, financial, environmental/external and compliance. The risks identified have been prioritised according to an overall assessment of risk and an action plan has been implemented to ensure that steps are put in place to mitigate these risks. The Trustees have in place a Lapwing Risk Policy which is reviewed annually by the Trustees.


Financial Review The charity’s incoming resources for the year were £1,342,387. This represents a reduction of 19% compared to the previous financial year (2013: £1,662,671) which is mainly as a result of changes to the way that statutory funding is awarded by the Education Funding Agency and is despite an increase in the number of students that we worked with. Resources expended totalled £1,252,839 which represents a reduction in expenditure of £104,176. This reflects the reduction in funding for the year (2013: £1,357,015). Of the total resources expended, 99% is spent on charitable activities. After actuarial losses, this resulted in an overall surplus for the year of £31,548 (2013: £316,656) and total funds carried forward of £476,242. This will enable the financial sustainability of the organisation in accordance with its reserves policy to ensure that it can continue to support the young people who need it during the continually challenging economic times. The charity’s balance sheet showed a healthy position at the year-end, with net current assets of £538,110 (2013: £451,537) and net assets of £476,242 (2013: £444,694). Income was 3% lower than budgeted for the year due to a small number of students not completing their Education Funding Agency (EFA) funded programme and income from grant making trusts not meeting the target set. Grant making trusts will become an area of focus over the coming year in addition to other diverse funding opportunities. Expenditure was managed very carefully during the year which resulted in expenditure being 11% lower than budgeted. This was in response to changes in the way that the EFA allocates funding to students and required some changes to the way that the organisation deployed its resources. This has enabled the charity to build upon the reserves in accordance with its reserves policy, whilst ensuring that students have access to the provision they need. Principal Funding Sources The charity has two main sources of funding which are as follows:- Education Funding Agency (via WS Training Ltd) – this is the principal funding source for Lapwing.

Students are referred to Lapwing via the Local Authority and funding is agreed based on each student’s educational needs as identified in partnership with the Local Authority. The nature in which this funding is awarded changed as from September 2013 to a banded system rather than an individual programme cost basis and the maximum number of funded students has been pre-agreed. This presented significant challenges to the organisation to ensure that our ethos of individual assessment of needs and aspirations is not jeopardised by a rigid funding criteria and reduced funding.

Local Authority and schools under 16 referrals - this continues to be a growing funding source and one

which the charity hopes to further develop during the next financial year. The aim is to support young people under 16 to either re-engage them or maintain their engagement in mainstream education.

Reserves policy Reserves will be held in order to provide for continuity of service in the event of the loss of funding or a dramatic change in the charity’s operating environment. The charity’s aim was to keep within unrestricted reserves an amount in the region of one term’s operating costs which, based on the financial year ended 31 August 2014, would be in the region of approximately £410,000. Unrestricted reserves are currently £474,992. However, due to significant changes in the level of funding secured for the coming year the organisation has re-evaluated its financial position. A major restructure has taken place in order to reduce costs and adapt to the expected needs of the organisation for the coming year. It is expected that the organisation will take approximately three years to recover from the major loss of funding and develop new work and diversified income streams to rebuild a sustainable organisation. The organisational reserves will be essential during this time to enable the organisation to continue during this transition phase. Projected budgets for the next three


years predict that a reserve of £470,000 will be required in order for the organisation to reach a breakeven point. The charity’s financial strategy and budgets will be monitored regularly during each financial year to ensure that the level of reserves remains appropriate for the organisation. The Board of Trustees reviews the reserves policy and requirements annually. Once reserves have exceeded the amount that the Trustees deem to be appropriate, the Trustees will utilise any available funds to better meet the needs of the beneficiaries. Investment policy The Trustees have adopted an investment policy of placing cash surpluses on short-medium term fixed term deposits. They agreed upon a low risk investment policy but one which would generate a return in excess of bank deposits and which would ensure that cash would be readily available at specified times to coincide with the organisation’s working capital requirements. The amounts held with any one bank will be periodically reviewed by the Board of Trustees, and accounts may be opened with multiple banks and building societies in order to spread financial risk, recognising the limits of the Bank Deposit Guarantee scheme. The Trustees may invest any money not immediately required for its objects in or upon any investments, securities or property, and delegate the management of those investments to a professional fund-manager. Auditors A resolution proposing the re–appointment of Ensors as auditors will be put to the members at the Annual General Meeting. This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (issued in March 2005) and in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small entities. By order of the Trustees and signed on their behalf on 12 December 2014.

L Dobney Chairman


Independent Auditors’ Report To the Members of Lapwing Suffolk Limited We have audited the financial statements of Lapwing Suffolk Limited for the year ended 31 August 2014 which comprise of the Statement of Financial Activities, the Balance Sheet and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and the Financial Reporting Standard for Smaller Entities (effective April 2008) (United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities). This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an 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 the Trustees and Auditors As explained more fully in the Trustees’ Responsibilities Statement on page 14, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements 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 (APB’s) Ethical Standards for Auditors. Scope of the Audit of the Financial Statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Charity’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 financial statements. In addition, we read all the financial and non-financial information in the Trustees’ Report to identify material inconsistencies with the audited financial statements 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 inconsistencies we consider the implications for our report. Opinion on Financial Statements In our opinion the financial statements:

- give a true and fair view of the state of the Charity’s affairs as at 31 August 2014 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 (applicable to smaller entities); and

- have been prepared in accordance with the requirements of the Companies Act 2006. Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Trustees’ Report for the financial period for which the financial statements are prepared is consistent with the financial statements.


Independent Auditors’ Report To the Members of Lapwing Suffolk Limited (continued) 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 financial statements are not in agreement with the accounting records and returns; or - certain disclosures of Trustees’ remuneration specified by law are not made;; or - we have not received all the information and explanations we require for our audit; or - the Trustees were not entitled to prepare the financial statements in accordance with the small

companies regime and take advantage of the small companies exemption in preparing the Trustees’ Report.

Helen Rumsey (Senior Statutory Auditor) For and on behalf of Ensors Chartered Accountants Statutory Auditor Cardinal House 46 St Nicholas Street IPSWICH IP1 1TT 12 December 2014


Statement of Financial Activities For the Year Ended 31 August 2014

2014 2014 2014 2013 2013 2013

Note Unrestricted Restricted Total Unrestricted Restricted Total

Incoming Resources £ £ £ £ £ £

Incoming resources from generated funds:

Voluntary income: Grants and Donations 6,538 - 6,538 405 - 405

Activities for generating funds: Fundraising 1,591 - 1,591 - - - Investment income 1,707 - 1,707 258 - 258

Incoming resources from charitable activities:

Provision of educational opportunities for young people

3

1,328,051

4,500

1,332,551

1,657,008

5,000

1,662,008

Total incoming resources 1,337,887 4,500 1,342,387 1,657,671 5,000 1,662,671

Continuing Operations 54,785 4,500 59,285 122,539 5,000 127,539 Discontinued Operations 2 1,283,102 - 1,283,102 1,535,132 - 1,535,132

Resources Expended

Costs of generating funds – fundraising costs

4 1,234 - 1,234

499

-

499

Charitable activities 4 1,232,927 4,267 1,237,194 1,339,829 4,654 1,344,483

Governance costs 4 14,411 - 14,411 12,033 - 12,033

Total resources expended 1,248,572 4,267 1,252,839 1,352,361 4,654 1,357,015

Net incoming resources 5 89,315 233 89,548 305,310 346 305,656

Transfer between funds - - - (64) 64 -

Net income for the year 89,315 233 89,548 305,246 410 305,656

Continuing Operations (81,715) 233 (81,482) (768) 410 (358) Discontinued Operations 2 171,030 - 171,030 306,014 - 306,014

Actuarial Gains/(Losses) 11 (58,000) - (58,000) 11,000 - 11,000

Net movement in funds 31,315 233 31,548 316,246 410 316,656

Total funds brought forward 443,677 1,017 444,694 127,431 607 128,038

Total funds carried forward 474,992 1,250 476,242 443,677 1,017 444,694

There were no gains or losses in either year other than the surplus for the year and accordingly, no statement of total recognised gains or losses is presented. The Statement of Financial Activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. The notes on pages 23 to 33 form part of these financial statements.


Balance Sheet As at 31 August 2014

Note 2014 2013 £ £

Fixed assets

Tangible assets 8 132 2,157

Current assets

Debtors 9 42,885 28,722 Cash at bank and in hand 533,109 550,479

575,994 579,201

Current liabilities

Creditors: amounts falling due within one year 10 37,884 127,664

Net Current Assets 538,110 451,537

Total Assets Less Current Liabilities 538,242 453,694

Defined benefit pension scheme liability 11 (62,000) (9,000)

Net Assets 476,242 444,694

Funds Unrestricted - general 12 536,992 452,677 - pension deficit 11 (62,000) (9,000)

474,992 443,677

Restricted 12, 13 1,250 1,017

Total Funds 476,242 444,694

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. Approved by the Trustees on 12 December 2014 and signed on their behalf by

L Dobney S Chesworth Company Registration No. 07175060 The notes on pages 23 to 33 form part of these financial statements


Notes to the Accounts For the Year Ended 31 August 2014 1. Accounting Policies

Basis of accounting

The accounts have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008). The accounts have been prepared in accordance with applicable accounting standards, the Statement of Recommended Practice, “Accounting and Reporting by Charities”, issued in March 2005 and the Companies Act 2006.

Fund accounting

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity.

Designated funds are unrestricted funds earmarked by the Trustees for particular purposes.

Restricted funds are subject to restrictions on their expenditure imposed by the donor or through the

terms of an appeal.

Incoming Resources All incoming resources are included in the Statement of Financial Activities when the Charity is entitled

to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Voluntary income is received by way of grants, donations and gifts and is included in full in the

Statement of Financial Activities when receivable. Grants, where entitlement is conditional on the delivery of a specific performance by the Charity, are recognised when the Charity becomes unconditionally entitled to the grant.

Investment income is included when receivable. Incoming resources from grants, where related to performance and specific deliverables, are

accounted for as the Charity earns the right to consideration by its performance. Resources Expended Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes VAT:

Costs of generating funds comprise the costs associated with attracting voluntary income and the

costs of fundraising.

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

Governance costs 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.


All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis, e.g. floor areas or estimated usage as set out in Note 4.

Tangible fixed assets and depreciation Tangible assets are capitalised on the basis of their continuing use in the Charity. No lower limit is formally set for the capitalisation of tangible fixed assets.

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost, less estimated residual value, of each asset over its useful life, as follows:- Fixtures, fittings and office equipment – 15% per annum on cost Computer equipment – 50% per annum on cost

Pension commitments

The Charity participates in a defined benefit local government statutory pension scheme administered by Suffolk County Council. This is a multi-employer scheme, and an actuarial valuation of the scheme has been undertaken as at 31 August 2014 on behalf of the Charity, in order to assess the pension cost for the year and the amount of any asset or liability on a current funding level applicable to the Charity. For defined benefit schemes, the pension costs are assessed using the projected unit credit method. The cost of providing pensions is charged to the profit and loss account so as to spread regular costs over the service lives of employees. The pension obligation is measured at the present value of the future cash flows using interest rates on government securities that have terms to maturity approximating the terms of the related liability.

When the benefits of a scheme are improved, past service costs are recognised as an expense on a straight-line basis over the average period until the benefits become vested. To the extent that the benefits are already vested immediately, following the introduction of, or changes to, a defined benefit plan, the past service cost is recognised as an expense immediately.

Going Concern The accounts have been prepared on a going concern basis. Despite the significant changes in the level of funding secured for the coming year the organisation has assessed its financial situation and taken measures to restructure in order to reduce costs and is developing new income streams. The organisational reserves will be essential during this time to enable the organisation to continue during this transition phase. The trustees have assessed that the level of reserves available will be sufficient to enable the organisation to reach a sustainable financial position again.

Leasing Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

2. Discontinued Operations

In the latter part of the year we were informed of a significant reduction to our funding due to the cessation of our contract with the Education Funding Agency (received via WS Training Ltd). This contract was terminated on 31 July 2014 and represents a material change to the nature and scope of the operations of Lapwing Suffolk. This will have an impact upon our capacity, income and student numbers for the year 2014-15. The trustees and the management team have taken appropriate action to reduce our overheads, including a move to new premises and a staff restructure.


3.

Incoming Resources From Charitable Activities

Unrestricted Restricted Total Total 2014 2013 £ £ £ £

W S Training Limited

1,269,497

-

1,269,497

1,535,092 Suffolk County Council 17,265 - 17,265 107,296 Transport Fees 13,250 - 13,250 - Felixstowe Academy 10,340 - 10,340 - Stoke High School 6,455 - 6,455 - Priory School 4,480 - 4,480 - Ormiston Endeavour Academy 2,320 - 2,320 - The Bridge School 885 - 885 Beacon Hill School - - - 7,425 Thomas Wolsey School - - - 3,000 Hartismere High School - - - 1,210 Northgate High School - - - 300 Suffolk Foundation - 4,500 4,500 5,000 Other 3,559 - 3,559 2,685 1,328,051 4,500 1,332,551 1,662,008


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Costs directly allocated to activities

£

£

£ £ £

Salaries & recruitment Direct 582,819 - - 582,819 546,115 Agency support & self-employed tutors Direct 98,715 - - 98,715 139,546 Student programme costs Direct 324,724 - - 324,724 478,409 Staff training Direct 11,419 - - 11,419 2,570 Fund Raising & PR Direct - 1,234 - 1,234 499 Service charge W S Training Direct 93,847 - - 93,847 78,500 Insurance Direct 1,929 - 698 2,627 2,527 Legal & professional fees Direct 1,800 - 6,420 8,220 6,090 Depreciation Direct 2,025 - - 2,025 4,857 Bad debt write off Direct 9,277 - - 9,277 - Support costs allocated to activities Salaries & recruitment Usage 48,696 - 5,411 54,107 57,089 Rent, rates & electricity Usage 10,495 - 1,166 11,661 21,977 General office costs Usage 23,433 - 2,604 26,037 18,243 Repairs & cleaning Usage 540 - 60 600 19 Bank Charges Usage 121 - 13 134 - Legal & professional fees Usage 27,354 - 3,039 30,393 5,574 Net FRS 17 pension adjustments Usage - - (5,000) (5,000) (5,000)

Total resources expended 1,237,194 1,234 14,411 1,252,839 1,357,015

5. Net Incoming Resources for the Year

2014 2013 £ £ This is stated after charging: Auditors’ remuneration – audit services 6,360 6,000 Auditors’ remuneration – non audit services 2,265 30 Depreciation of owned fixed assets 2,025 4,857 Amounts payable under operating leases – land and

buildings

19,668 20,290

4.

Total Resources Expended


6.

Staff Costs

2014 2013 £ £ Wages and salaries 551,265 527,090 Social security costs 30,621 30,946 Pensions 38,045 35,146 Redundancy costs 16,148 -

636,079

593,182

The average number of persons (full time equivalent) employed during the year was as follows:

Charitable activities 25.9 26.9 Administration 1.8 1.6 27.7 28.5 No employees were paid over £60,000 during the year.

7. Directors’ Emoluments

Two trustees, S Chesworth and S Jones, received remuneration of £36,812 and £44,942 (2013: £39,924 and £44,845) respectively in the period for their work in the charity to provide bespoke educational opportunities for young people. These amounts were permitted to be paid by the governing document.

One trustee received expenses totalling £860 (2013: Two trustees received a total of £1,979) which were incurred in the performance of their charitable activities.

No other trustees received any remuneration or expenses in the year other than already disclosed.

The charity purchased indemnity insurance for its trustees at a cost of £691 (2013: £683).


8.

Fixed Assets

Fixtures, fittings and

office equipment

Total

£ £ Cost At 1 September 2013 9,882 9,882 Additions - - At 31 August 2014 9,882 9,882

Depreciation At 1 September 2013 7,725 7,725 Charge for year 2,025 2,025 At 31 August 2014 9,750 9,750

Net Book Value

At 31 August 2014 132 132

At 31 August 2013 2,157 2,157

9. Debtors 2014 2013

£ £ Trade debtors 34,510 13,845 Other debtors 4,260 4,227 Prepayments 3,607 10,623 Accrued income 508 27

42,885

28,722

10. Creditors: amounts falling due within one year 2014 2013 £ £ Trade creditors 10,992 60,077 Other taxes and social security 6,046 - Accruals 20,846 67,587

37,884 127,664


11.

Pension Commitments

Defined benefit scheme

The Charity operates a pension scheme providing benefits based on final pensionable pay which is part of The Suffolk County Council Pension Fund. The most recent full actuarial valuation was carried out at October 2014 and the results of the valuation have been updated to 31 August 2014 by a qualified independent actuary. As required by FRS 17, the defined benefit liabilities have been measured using the projected unit method. The expected employer contributions for the year ended 31 August 2015 are £13,000

2014 2013 Principle actuarial assumptions % % Discount rate 3.70 4.60 Pension increase rate 2.70 2.80 Salary increase rate 4.50 5.10 Expected Return of scheme assets 5.50 5.90 An allowance is included for future retirements to elect to take 25% of the maximum additional tax-free cash up to HMRC limits for pre-April 2008 service and 63% of the maximum tax-free cash for post-April 2008 service. The mortality assumptions are: Vita Curves with improvements in line with the CMI2010 model assuming the current rate of improvements has peaked and will converge to a long term rate of 1.25% p.a. The assumed life expectancies on retirement at age 65 are: Years Years Retiring today - Males 22.4 21.4 Retiring today - Females 24.4 23.3 Retiring in 20 years - Males 24.3 23.7 Retiring in 20 year - Females 26.9 25.7 Major categories of scheme assets as a percentage of total assets

% %

Equities 68 69 Property 10 9 Bonds 21 21 Cash 1 1


2014 2013 Expected long term rates of return on scheme assets (per annum)

% %

Equities 6.4 6.7 Bonds 3.4 4.1 Property 4.5 4.7 Cash 3.3 3.6 £000 £000 The actual return on scheme assets for the year 36 31 Change in fair value of scheme assets: Assets in the scheme at the beginning of the year 291 215 Expected return on pension scheme assets 18 11 Actuarial (loss)/gain on pension scheme assets (110) 20 Contributions by Employer 27 35 Contributions by Employees 8 10 Benefits paid (5) - Total market value of assets 229 291 Present value of scheme liabilities 291 300 Net pension liability (62) (9) Movements in scheme liabilities during the year Liabilities in scheme at beginning of year 300 240 Current service cost 26 30 Contributions by Employees 8 10 Interest cost 14 11 Actuarial (loss)/gain (52) 9 Benefits paid (5) - Liabilities in scheme at end of the year 291 300


Analysis of the amount recognised in the Statement of Financial Activities Current service cost 26 30 Expected return on pension scheme assets (18) (11) Interest on pension scheme liabilities 14 11 Total 22 30 2014 2013 £000 £000 Analysis of actuarial loss recognised in the Statement of Financial Activities Actual return less expected return on scheme assets (110) 20 Experience gain/(loss) arising on scheme liabilities 52 (9) Gain/(loss) arising from changes in assumptions underlying scheme liabilities

- -

Gain/(loss) recognised in the Statement of Financial Activities

(58) (11)

Historical Pension Scheme Information Total market value of assets 229 291 Present value of scheme liabilities (291) (300) Deficit in the scheme (62) (9) Experience (gain)loss on pension scheme liabilities 107 - Actuarial gain/(loss) on pension scheme assets (110) 20 Gain/(loss) arising from changes in assumptions underlying the scheme liabilities

- -

Cumulative amount of actuarial gains and losses recognised in the Statement of Financial Activities (SOFA) Opening cumulative SOFA (15) (26) Actuarial gain/(loss) recognised in SOFA (58) 11 Closing cumulative SOFA (73) (15) Movements in deficit during the year Deficit in scheme at beginning of the year (9) (25) Movement in year:

Current service cost (26) (30) Contributions 27 35 Other finance income 4 - Actuarial loss (58) 11

Deficit in the scheme at the end of the year (62) (9)


12. Reconciliation of Funds

Balance at 1 September

2013

Incoming resources

Resources expended in the

year

Transfer between funds

Actuarial losses

Balance at 31 August

2014

£ £ £ £ £ £ General 452,677 1,337,887 (1,253,572) - - 536,992 Pension deficit (9,000) - 5,000 - (58,000) (62,000)

Restricted 1,017 4,500 (4,267) - - 1,250

444,694 1,342,387

(1,252,839)

-

(58,000)

476,242

13. Restricted Funds

Balance at 1 September

2013

Incoming resources

Resources expended in

the year

Balance at 31 August

2014 £ £ £ £ £ £ £ £ Suffolk Community Foundation (A) - 4,500 (4,267) 233 Suffolk Community Foundation (B) 1,017 - - 1,017

1,017 4,500 (4,267) 1,250

Suffolk Community Foundation (A) -

Grant awarded to Lapwing for the delivery of two training workshops for Lapwing employees. The first was focused on middle leader development training; the second was a three day course for front line employees to develop their skills in student behaviour management and how to avoid potentially challenging situations.

Suffolk Community Foundation (B) -

Grant awarded to Lapwing for the purchase and implementation of a management information system in order to effectively manage student records, including recording outcomes and achievements.

14. Analysis of Net Assets Between Funds

Tangible

assets Current

assets Current

liabilities Pension

Scheme Liability

Total

£ £ £ £ £ Unrestricted funds – general 132 574,744 (37,884) - 536,992 Unrestricted funds – pension

deficit -

-

- - (62,000) (62,000)

Restricted funds 1,250 - - 1,250

132

575,994

(37,884)

(62,000)

476,242


15. Commitments

As at 31 August 2014 the Charity was committed to making the following payments under non-cancellable operating leases:

2014 2013

Plant and equipment

£ £

Operating leases which expire:

In two to five years 1,352 -

Land and buildings

Operating leases which expire:

In less than one year - 20,290 In two to five years 8,400 -

16. Related Parties

S Jones, a trustee and member of the senior management team, is a director of Noise Solutions Limited. During the year, Lapwing Suffolk Limited received services from this company for its students totalling £16,695 (2013: £15,135). No amounts were owed to this company at the year end.

S Chesworth, a trustee and member of the senior management team, made a donation to the Charity during the year for £3,930 (2013: £220). E Willis, a trustee, is an employee of Birketts LLP. During the year, Lapwing Suffolk Limited received services from this company totalling £1,445 (2013: Nil). £1,445 was owing to this company at the year end. K Scrivener, Head of Finance and Company Secretary, is married to a partner at Ensors Chartered Accountants which provided audit and accountancy services during the year totalling £6,360 (2013: £6,030) and payroll services during the year of £2,265 (2013:Nil). Ensors have ensured that the necessary safeguards are in place to preserve the objectivity and independence of the audit partner responsible for opining on these accounts.

17. Share Capital The charity is a company limited by guarantee and accordingly does not have a share capital. Every

member of the company undertakes to contribute such an amount as may be required (not exceeding £10) to the company’s assets if it should be wound up whilst they are a member, or within one year after they cease to be a member, to cover the liabilities of the company.


Reference and Administrative Details

Legal Structure:

Lapwing Suffolk Limited is a company limited by guarantee Company number 07175060, incorporated 2 March 2010 Charity number 1136324, registered on 14 June 2010

Trustees: L Dobney - Chair

S Chesworth D Fisher S E Jones L M Stretch (resigned 29 November 2013) P Trott (appointed 28 April 2014) E Willis (appointed 28 April 2014)

Chief Executive: S Chesworth

Company Secretary: K Scrivener

Registered Office: 8a The Square

Martlesham Heath Ipswich Suffolk IP5 3SL

Auditors: Ensors

Chartered Accountants and Registered Auditors Cardinal House 46 St Nicholas Street Ipswich

Suffolk IP1 1TT

Bankers: Lloyds TSB Bank PLC PO Box 1000 BX1 1LT

Solicitors: Birketts LLP 24-26 Museum Street Ipswich Suffolk IP1 1HZ


Lapwing Suffolk Limited 8a The Square Martlesham Heath Ipswich Suffolk IP5 3SL Telephone 01473 621762 www.lapwingeducation.com

lapwing suffolk accounts 2013-2014

Documents

trustees report

lapwing students

future work

independent auditors

board of trustees

accounts year end

audited accounts

challenging year