report and financial statements year ended … a… · report and financial statements year ended...

PRISONERS' EDUCATION TRUST(Company limited by guarantee no. 04132595

registered charity no. 1084718)

REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2014

PRISONERS' EDUCATION TRUST

(Company limited by guarantee no. 04132595, registered charity no. 1084718)

REPORT AND FINANCIAL STATEMENTS

For the year ended 31 December 2014

CONTENTS

Page

Legal and administrative information 1

Trustees' report 2

Auditors' report 15

Statement of financial activities 17

Balance sheet 18

Notes to the financial statements 19


REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY,

ITS TRUSTEES AND ADVISERS


President: His Honour John Samuels QC

Patrons: Lady Andrew OBE Paul Maxlow-Tomlinson

Sir Christopher Ball Lord Ramsbotham GCB, CBE

Heather Ewart (retired 27/05/2014) Michael Smyth CBE QC (Hon)

Baroness Stern CBE

Baroness Linklater of Butterstone The Rt Hon. the Lord Woolf

Trustees: Dr Lynn J Bindman Hugh Lenon

Alexandra Marks (Chair)

Charlotte L Rendle

Emily Thomas

Vanni E Treves CBE

Philip W Deer

Geoffrey M Wolfson

Graham A Ziegler FCA

Dr Peter J Honey (Vice Chair)

Rod Clark

Company reg. no. 04132595

Charity reg. no. 1084718

Registered office

The Foundry, 17 Oval Way Telephone: 020 3752 5680

London SE11 5RR

Email: [email protected]

Website: www.prisonerseducation.org.uk

Auditors Hartley Fowler LLP

Chartered Accountants and Statutory Auditors

4th Floor, Tuition House

27/37 St George's Road

Wimbledon, London

SW19 4EU

Bankers Barclays Bank CCLA

2 Victoria Street Senator House

London, SW1H 0ND 85 Queen Street

London EC4V 4ET

Susan Hill CBE (appointed 30/07/2014)

Catherine Dawkins

(appointed 14/05/2014)

Peter Collins (appointed

14/05/2014)

Mark Welsh (appointed 14/05/2014)

Company Secretary and

Chief Executive:

(Hon. Treasurer)

Patrick Diamond

(appointed 14/05/2014)

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TRUSTEES' REPORT, (Incorporating the Director's report)


The Trustees (who are also the directors for the purposes of company law) present their report and the

audited financial statements for the year ended 31 December 2014.

The Trustees confirm that the annual report and financial statements of PET comply with current statutory

requirements, the requirements of PET's governing document and the provisions of the Statement of

Recommended Practice (SORP) 'Accounting and Reporting by Charities' (revised 2005).

STRUCTURE

Prisoners' Education Trust (referred to here as PET) is a charitable company, incorporated on 29 December

2000; it acquired the assets and undertaking, subject to liabilities, of Prisoners' Education Trust, a charitable

trust, with effect from 1 January 2001. That trust, which had been established by a deed dated 19 April 1989

was formally wound up in 2003. PET is registered as a charitable company limited by guarantee and is

governed by its memorandum and articles of association. PET has no share capital or debentures. In the

event of PET being wound up each member is required to contribute an amount not exceeding £10.

GOVERNANCE AND MANAGEMENT

PET is governed by a Board of Trustees. Trustees are subject to retirement by rotation; every year one third

of trustees eligible must retire. Trustees subject to retirement are those who have served the longest time in

office. Additionally, Trustees aged 75 or more are subject to retirement by rotation each year. All trustees

may stand for re-election. The election of members to the Board takes place at the Annual General Meeting.

Details of those serving on the Board during the year and those serving currently are shown on page 1.

The Board of Trustees meets six times a year, in addition to its annual Away Day. The Chair also conducts

appraisals with all Trustees every two years. The Board of Trustees considers it important to maintain a

balance of skills in its membership and has established a Nominations Committee to undertake tasks related

to Trustee recruitment and induction. The Board of Trustees attempts to attract candidates with skills and

experience, having regards to diversity, appropriate to the needs of the organisation. Potential trustees are

interviewed by the Chair or, if proposed by the Nominations Committee as appropriate, by the Chief

Executive and another trustee. All new Trustees receive an induction and an introduction to the Chief

Executive.

The Board of Trustees is responsible for establishing the strategic direction of PET. The Board of Trustees

delegates responsibility to the senior management team, through the Chief Executive, to execute the day-to-

day operations of PET in accordance with the policies, procedures and budgets approved by the Board of

Trustees. Furthermore, the Board of Trustees delegates responsibility for course approvals to a monthly

scrutiny panel, which comprises at least two Trustees.

OBJECTS, PRINCIPAL ACTIVITIES & STRATEGY

The charitable objects of PET contained in our memorandum and articles of association relate to advancing

the education and training of prisoners and ex-prisoners in the UK, Isle of Man and the Channel Islands.

They include funding education, providing course materials, art and craft materials and other educational

needs of prisoners. They also include commissioning research, projects, reports and conferences to help in

evaluating and advancing prison education of all kinds.

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On the basis of these objects the Trustees agreed on 27 March 2013 a three year strategy for the period

2013 to 2016. This is based on our vision that every prisoner should have the opportunity to benefit from

education . This vision is underpinned by our belief that:

Education has the power to enrich, change and develop people throughout their lives.

Offering prisoners access to education improves their self-esteem and enables them to choose a

more constructive way of life – making it less likely that they will re-offend.

The strategy also sets out the key elements of our mission towards achieving that vision:

The services we provide to give prisoners access to learning through the grants we give to pay for

distance learning and other education in prison and the support and advice services we offer; and

The work that we do to champion a broad vision of education to influence and change the way

education in prisons is delivered and supported.

These elements of our mission are underpinned by the steps we take to enable PET to achieve this by

ensuring that our organisation is:

Expert in our field of prison education; and

Sustainable and robust.

The sections below use these headings to review our achievements over 2014 and our plans for 2015 and

beyond.

Providing Prisoner Access to Learning

Achievements in 2014

In 2014, our 25th anniversary year, PET continued to be the leading organisation funding distance learning

in prisons in England and Wales. Our Access to Learning programme is our largest area of charitable

expenditure. In December we delivered our 30,000th course since our foundation in 1989. Our applications

had seen a drop in 2012 and 2013, arising in part from uncertainties created by the introduction of the new

Offender Learning and Skills Service (OLASS) contracts for prison educators in November 2012. In 2014

the numbers recovered to meet our targets:

2014 Target 2014 Actual 2013 Actual

Applications 2,800 2,866 2,477

Awards 2,000 2,083 1,757

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This was a considerable achievement when set against the significant operating difficulties facing prisons in

2014 that was highlighted by a number of commentators, for example in the 2014 annual report of HM Chief

Inspector of Prisons. A number of prisons, especially in the South East, faced staffing reductions and

recruitment difficulties. This had an adverse effect on the ability of some prisons to provide support for

distance learning applications and study. Additionally, a number of prisons have had to reduce opportunities

for prisoners to leave their cells for education, work or other purposeful activity; in some prisons we have

visited we have found that prisoners have been locked up in cell for up to 23 hours a day and education

classes half empty. Against that background, the support PET provides for meaningful learning and activity

in cell is even more vital; and in 2014 PET continued to work to support both prisoners and prison and

education staff in understanding the distance learning opportunities available.

Our most popular requests were:

Drug, Solvent & Alcohol Abuse Counselling

Personal Fitness Trainer Level 3

People, Work & Society Open University (OU) Access module

Science, technology and maths OU Access module

Business Start-Up

Plumbing Installation Theory Course Level 2 NVQ

Business Studies AS

Essential Book-keeping Level 1

Mathematics AS

Sports Nutrition

Arts and languages OU Access module

Electrical Technologies Level 3 BTEC

Psychology AS

RHS Level 2 Cert in the principles of Horticulture

Comprehensive Creative Writing Course Certificate

But others included courses on subjects as diverse as Eco Building, Art Techniques, Certificate in Couple &

Family Counselling, Organic Gardening or Commercial Organic Vegetable Growing, Bee-keeping, Coastal

Cruising Certificate, Care & Management of Small Companion Animals and Classical Civilisation AS.

“The NEC distance learning packages are a useful way of extending the prison curriculum for prisoners who

want to study above the level of the qualifications that we are able to provide.” [Prison Education Manager]

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The letters from prisoners continue to give eloquent testament to their motivations in study to help them build

new lives away from crime.

“Studying gave me a sense of achievement; working to complete assignments every month, getting a grade

and passing each time was really motivating. Continuing to read, learn and write essays also kept me

focused on my goals. The fact that I achieved what I set out to do in prison helped me on release. With my

business I've accomplished what I wanted to do 5 years ago. I continue to think like that now - I know if I set

my mind on something I can do it.”

“With your support I can gain qualifications and complete courses in this subject, and I think this will be a

major factor to help me not to re-offend; I think its about time to stop the life of crime around me. I do not

want to come back. When I have a job in this subject I can start a new life for me and my family.”

PET Access to Learning staff worked closely with most prisons in England and Wales by phone, e-mail and

letter and organised visits to 23 prisons in 2014 (some more than once) to give them specific support (18 in

2013). We made many of these visits in conjunction with colleagues from the OU. We have continued to

distribute our Distance Learning Curriculum widely and have continued to use our information about

application levels to inform prison and education management. We developed a report which gives a prison

by prison one page summary of the applications to PET and OU learners compared to prison comparators.

This report is distributed via the National Offender Management Service (NOMS), and provides a tool for

prison and education management in assessing how well their prison is supporting this learning. PET also

contributed to the clarification and improvement of the Prison Service Instruction covering distance learning

for issue in early 2015. In particular, this should help to clarify prison accountability for supporting this type

of learning for prisoners.

We increased the advice we have been able to offer prisoners on the educational options that would best

help them achieve their personal goals and especially their aspirations for future employment. As well as

playing a key part in producing printed and web-based material on career options and visiting prisons, PET’s

Advice Manager has continued to support individual prisoners and their families with advice about learning

choices by letter, e-mail, phone and face to face visits. In 2014 he delivered 898 advice sessions exceeding

our internal target of 800 and well exceeding 2013’s number of 659.

In 2014, we also worked with the Longford Trust and OU regional coordinators to administer a new category

of awards (called the Frank Awards after the late Lord Frank Longford). Funded by the Longford Trust, the

Frank Awards are for prisoners who have difficulty funding OU studies by other means. Three awards were

given in 2014 and we are delighted to continue working in partnership with the Longford Trust and the OU to

deliver this new way of supporting prisoner education in future.

Letters of thanks from those receiving support provide daily compelling evidence of the value of our distance

learning provision on their journeys of transformation:

“I would just like to take the time in thanking PET in supporting me through my educational years whilst

being in prison. I can honestly say with hand on heart that I owe you my life for the change studying has

done for myself and family.”

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Looking forward

Despite the increase in the number of our applications and grants in 2014, we know that the encouragement

and facilitation of distance learning across the prison estate is patchy. With the right support, many more

prisoners would be interested in the learning we can fund – and that in turn would mean more prisoners

were able to make different choices and move away from crime. But we also recognise that prisons will

remain under huge resource pressure this year. In 2015 we will aim to at least maintain delivery against the

2014 targets (2,800 applications, 2,000 awards). To do this we will issue a revised Distance Learning

Curriculum covering our most commonly supported courses throughout the prison estate, building on our

extensive research and feedback on the earlier version in 2014, and make that Curriculum available through

the Virtual Campus (the prison ICT system). Our aim to achieve Matrix accreditation to certify the quality

and professionalism of our advice work was overtaken by other more pressing priorities in 2014 and we will

carry this goal forward into 2015.

We will explore ways of working with partners to make more effective use of ICT to support interactive

distance learning, working towards piloting solutions that can be made widely available in the prison estate.

This will be supported by our work to promote change to policy and practice to embrace the use of ICT

within prison education more widely, where safe and practicable.

Subject to funding, we will also strive to build stronger communities of prisoner learners through the

provision of learner starter packs, as suggested by our alumni. These packs will include books and tee-shirts

to help reinforce their positive identity as a student as part of broader learning community, and move away

from offending behaviour. Underpinning this, we are keen to work with prisons to establish prisoner roles

supporting distance learning. We hope we can do this partly by building on the revised Prison Service

Instruction clarifying Governors’ accountability for ensuring that distance learning is supported.

Learning Matters: championing prisoner education and influencing change to improve prisoner

learning


For the majority of the year, our work on influence and change came under the aegis of the Learning Matters

2 programme which formally came to an end in August 2014. We commissioned an external evaluation of

this work over the last three years; it strongly endorsed continuing with our work and reflects very positively

on what we have achieved.

“PET has made impressive progress towards its goals in a very difficult political and policy environment -

with limits around political, public and media support for, and tolerance of, ‘reform’ - and in the context of a

very challenging financial situation for the prison sector. Recognising these constraints, PET has been

astute in identifying areas where movement is possible, and finding ways to encourage positive changes to

policy and practice in the short term, whilst laying the groundwork for longer-term change.” [Independent

policy evaluation team]

In the light of that evidence we concluded as a Board to endorse our strategy to continue our policy work on

influence and change as a core mainstream part of our work rather than as a separate programme.

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Influence and change to policy and practice

2014 has continued to be a period of policy challenge and change in the prison education sector. One of the

highest profile issues was the fallout from the implementation in November 2013 of a new system of

Incentives and Earner Privileges in prisons. This included restrictions on the number of books prisoners

were allowed and their ability to receive them from family, friends or even from approved third party

suppliers. Having received first hand evidence from prisoners of the barriers this was creating for their

learning, we worked to encourage greater flexibility. Towards the close of 2014, our evidence was crucial in

the High Court case which has overturned the restriction on books in prison.

“I wanted to write to the trust and extend my thanks for your evidence in the prisoner 'book ban' Judicial

Review. As you will be aware a great deal of weight was attached to your statement. I do not believe the

claim would have been successful without your evidence…” [E-mail to PET from the Solicitor acting for the

Respondent on the successful Judicial Review claim in the High Court]

There was active policy change in other areas. The process for contracting out the supervision of prisoners

on release as part of Transforming Rehabilitation and the consequent restructuring of the prison network

continued throughout the year. We were also closely involved in the passage of legislation for the creation

of Secure College for children’s custody. We gave evidence to the Commons Bill Committee and worked

with our learning champion, Lord Hodgson, to table an amendment about education provision for young

people during the Lords' Committee stage of the bill. In conjunction with the Prisoner Learning Alliance (PLA

- see below), we submitted a detailed response to the consultation on rules for the Secure College and on

the potentially very damaging proposals to extend the requirement for prisoner learners to take out Advance

Learning Loans to study even at level 2 (GCSE equivalent). PET policy staff also gave written and oral

evidence to enquiries by both the Justice and Business Select Committees.

In developing our work to influence policy and practice in how prison education operates we worked closely

with around 17 partner organisations through the PLA. The PLA, which PET founded and for which we

continue to provide the secretariat and chair, provides a platform to bring together the views and expertise of

a wide range of organisations working in the prison education sector. The PLA held its first conference in

April at the OU in Milton Keynes. The conference attracted over 150 attendees, and featured some great

innovations, including prisoner contributions via Skype from HMP Parc. The conference received excellent

feedback.

“Excellent event – context, pace and venue all excellent. Well done PLA/PET.” [Government Official in

feedback on the 2014 PLA Conference].

Championing learner voice

Underpinning this work is our fundamental belief in the importance of listening to prisoner learners, what we

refer to as Learner Voice. In April 2014, we were chosen to partner with NOMS in a project to establish

“rehabilitative cultures” in prisons. This project involves working with eight prisons to help them implement

learner voice activities in their establishments, in ways that best work for them; for example one prison is

introducing a student council, another “learning champions” on the wings. The project builds on PET’s

Learner Voice Toolkit, launched in 2013.

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Throughout 2014, PET has been developing our Alumni Programme which aims to inform our thinking by

drawing on the experience of our former students and to develop ways of proving ongoing support for them

after release. We have a core group of 15 ex-prisoners who have met four times during the year to discuss

what shape the alumni programme should take. Plans include networking events, advice and guidance,

providing volunteering opportunities and regional meetings as the numbers grow. At the last meeting in

December, a number of attendees shared their experiences and provided mutual support. One individual

was celebrating three months out of prison, another their first night in their home having spent months in a

hostel. It was a real delight to applaud these individuals and celebrate their successes.

“Please do invite me to any other gathering you will have it will be a pleasure for me to get involve[d] with

the activities. Thank you ever so much again for inviting me to be in the group last night.” [PET alumnus]

Media and parliamentary engagement

In 2014, PET built on the profile it had established in 2013 by kicking off the year with news reports on the

BBC and in the Charity Times on the Justice Data lab’s report showing our work helped to reduce

reoffending. As well as stories throughout the year, the two other campaigns which generated substantial,

high impact coverage for PET were in the Spring and Autumn: the books for prisoners and Brain Cells

stories.

In order to give public profile to prisoner learner experiences and achievements, we supported our alumni to

tell their personal stories and experiences of learning, whilst also promoting the charity. Good examples of

this include an interview with Simon Short in the Guardian and Independent in March and with Francis Osei-

Appiah in the Evening Standard in April.

Our report, Brain Cells third edition, also resulted in high quality and impact coverage on Good Morning

Britain, ITV, with support from our Learning Champion Vicky Pryce, whom we briefed on key messages in

advance of the interview and the BBC online and radio. Another of PET’s learning Champions, Lord Harry

Woolf also supported us by speaking on BBC Radio Oxford, while Vicky Pryce was interviewed on BBC

Radio Leeds.

In addition to national media, 2014 saw increased awareness of our work raised in prisons thanks to

coverage on National Prison Radio during adult learners’ week and to mark our 25th year, a monthly editorial

throughout the year in Inside Time prison newspaper, which has also been re-negotiated for 2015.

As part of our 25th anniversary celebrations, we recruited 25 Learning Champions, supporters from a variety

of different backgrounds who all recognise the value of learning for prisoners. Thanks to engagement with

50 parliamentarians throughout 2014 through meetings or correspondence, 10 MPs and peers agreed to

support us as Learning Champions and an additional 4 parliamentarians agreed to be our Learning

Champion patrons. The other champions include those with experience of prisons, including governors and

Femi Oyeniran, an actor/director, who taught in young offenders institute Cookham Wood. On our website

we have a powerful quote from each of them saying why they believe education in prison is important and a

cause worth advocating for.

We now reach more than 6,620 Twitter followers compared to around 4,000 at the end of 2013.

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Looking forward

We will continue to develop our work on influence and change as a core part of what we do. Policy and

Public Affairs will be dominated this year by the election in May. We do not support or endorse any political

party. We do however naturally have strong views on the value of prisoner education and on policy issues

that relate to it. As a Board we therefore carefully considered whether we should register with the Electoral

Commission under the Lobbying Act 2014. Although we decided that we should keep this under review in

the run-up to the Election, we came to a clear view that we should not register on the grounds that our work

on policy and practice is clearly not an attempt to influence voting intentions. We will be looking to engage

actively and enthusiastically to promote prisoner education with the new Government whatever its political

make-up.

We will continue our project with NOMS to promote a rehabilitative culture in prisons. The project report is

expected to be published in spring 2015 and we hope the work will be a basis for further development of this

important route to improving education outcomes. We will continue the work of the PLA and hope to stage

another conference for prison education practitioners in the autumn. We will also expand and develop our

community of PET alumni, supporting their transition from prison into the community.

We will review our work within the youth estate, currently the subject of key justice policy developments,

including new education contracts, the movement of young adults (18-21) into establishments holding older

prisoners, and the implementation of “secure colleges” (on which the legislation is still, as of December

2014, between the Houses of Parliament). Within all these discussions and policy changes, and despite our

work to raise the matter in Parliamentary debate, there has been little mention of how education provision

will be delivered in practice.

Building an organisation that is robust and sustainable


2014 marked the 25th anniversary of PET’s foundation in 1989 and therefore provided a great opportunity to

celebrate this achievement by holding fundraising events and initiatives throughout the year. As a result,

2014 saw a rise in income to £1,363,519 (£986,136 in 2013). This growth was also in part due to an

expansion in our fundraising capacity. The appointment in 2013 of a new Trusts and Foundations

Fundraising Manager, and the support of several part-time fundraising volunteers, allowed PET to approach

a wider range of new funders, providing long term sustainability for the whole organisation. This investment

was underpinned by an organisation wide engagement in fundraising, with PET teams working together

closer than ever to plan and support our fundraising effort and provide evidence for our effectiveness.

Grant making trusts and foundations remained our largest source of income. We were extremely grateful

for the continuing generosity of some of our existing funders as well as for the generosity of a significant

number of new supporters who share our belief in the power of education and skills training to transform

prisoners’ lives. A list of our major supporters can be found in Notes 2 and 4 to these Accounts.

In 2014, we also took the initiative to diversify our fundraising base through individual giving. This included a

legacy campaign and encouraging new supporters via a BBC Radio 4 Appeal (read by new PET patron,

bestselling author Susan Hill), through the Big Give Christmas Challenge (a matched funding initiative), and

with the support of Kevin McGrath, High Sheriff of Greater London in organising a fundraising lunch kindly

hosted by Sotheby’s in their Boardroom.

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Events aimed at existing supporters during the year included a lunch at the newly opened Clink Restaurant

in Brixton Prison, a talk by ex-prisoner and author of Prisonomics Vicky Pryce, and a carol concert with

moving personal contributions from some of our alumni and their families, alongside celebrated Terry Waite

who shared some of his experiences as a hostage. With the generous pro-bono support from a former BBC

radio producer and others, we also put together a series of podcast features which explained the work of

PET and recorded its 25 year history.

These podcasts were available for the launch of our new website in September. The website reflected a

huge amount of work to develop content by teams across the whole of PET. The result was a vast

improvement on our previous site, being much easier to use and navigate, and is much more engaging. It

was a significant improvement to the public face of PET as an organisation. In future we will also be much

better placed to track the traffic to different parts of the site so that we can tailor the site to improve the

experience for users.

After many happy years in our Mitcham office which we have outgrown and which is now being planned for a

change of use to residential property, we moved in November to new fully fitted offices at the Foundry near

Vauxhall. Our new location is more modern and much more accessible for stakeholders, partners (some of

whom share the building) and funders, and provides more space for volunteers and alumni meetings.

“I now actually work in the same building as the Prisoners’ Education Trust team and have just been down

to visit them. It was quite emotional really. I went down to thank them for starting me on my journey all

those years ago and ended up writing this by way of a massive thank you…” [An ex prisoner learner now

working for another charity based in the Foundry]

Looking forward

We remain ambitious in increasing the scope and scale of our charitable activities in future years. We will

endeavour to come close to 2014 levels of income in 2015 and work to build our relationships with funders

and grow our base of individual donors with a view to developing a sustainable funding base for 2016 and

beyond.

We need to build our infrastructure capacity in 2015 to support what we do more effectively, and facilitate the

sustainable growth in our charitable delivery. We will invest in additional support to implement operational

and statutory changes needed to our systems, policies and procedures, including: enhancing our database

as an effective grants administration system; implementing SORP 2015; making better use of our CRM, and

ensuring we meet our new duties in regards to pensions auto-enrolment.

Building the expert organisation on prisoner learning


In January the Ministry of Justice published reports by its Justice Data Lab statisticians analysing the

subsequent re-offending of prisoners we had helped. The robust analysis is based on a sample of 3,085

prisoners who were funded by PET, matched with a cohort who have not benefited from our services.

Compared to the matched group, the number of individuals going on to re-offend was reduced by over a

quarter (19% compared to 26%). We speak to prisoners every day who tell us how education is a way out of

a life of crime for them, and this new data provides further evidence for our belief in education as a vital tool

in the rehabilitation of men and women in prison.

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“Other analysis by the Justice Data Lab found that prisoners given grants to participate in a range of

educational opportunities had a reduction in their one year reoffending rate of between 5 and 8 percentage

points” [Quote from Transforming Rehabilitation: a summary of evidence on reducing reoffending – Ministry

of Justice research]

In September PET’s Policy and Research Officer published ‘Brain Cells: Listening to prisoner learners (3rd

edition)’ . The report drew on findings from a UK wide survey via prison newspaper Inside Time about

prisoners’ experiences of learning whilst in custody.

“This is an excellent paper. It is based on the responses of prisoner learners. It highlights the issues

experienced by prisoners serving long sentences in custody. Despite some modest improvements in

isolated areas compared to previous years, sadly its findings paint an overall picture of missed

opportunities. Educational progression, use of ICT and the use of prisoners themselves to support learning

could all be hugely improved.” [The Rt Hon the Lord Woolf]

This third edition of Brain Cells provided the background for our 25th anniversary lecture and panel event in

November on the general theme of catering for longer-term prisoners. The event was chaired by Kevin

McGrath, High Sheriff of Greater London, and Michael Spurr, Chief Executive of NOMS, gave an excellent

speech expressing his commitment to the challenge of providing a humane regime for longer-sentenced

prisoners.

“PET has played an important role in advocating and promoting education for longer term prisoners,

providing access to distance learning courses and in its work championing learner voice and I welcome

this.” [Michael Spurr, Chief Executive of the National Offender Management Service]

PET’s PhD student Morwenna Bennallick, supervised by Professor Meek of Royal Holloway, is developing

research better to understand the impact of distance learning. She has also played a major part in

organising a PET academic symposium which addressed the lack of inter-disciplinary communication

between educationalists and criminologists in the academic sector. The symposium was hosted by the

Oxford University Centre for Criminology, with around 40 attendees and involved academics from both the

educational and criminologist fields, visiting from the USA, Ireland and across the United Kingdom to

participate. The result was an important day sharing research activities and identifying future collaborations;

80% of attendees requested the event be an annual occasion.

“A really excellent day, enjoyable and valuable, well done for organising it.” [Symposium participant]

Looking forward

We are already working with a team of economists sourced by Pro Bono Economics to explore ways of

building on our excellent research results from the Justice Data Lab. Further analysis in partnership with

Ministry of Justice statisticians looking at those to whom PET did not award support could further strengthen

the evidence of the value of what we do to reduce reoffending. These economists are also working to

establish the cost benefit of our work based on the Justice Data Lab results and other academic literature.

We aim to publish this further work over the course of 2015.

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Building on the success of symposium in 2014, we shall convene another academic event on the subject of

prisoner education at the University of Cambridge in June 2015. We will also look to continue to gather

prisoner views as we have in previous years through our Brain Cells reports. We will aim to publish results

of the information gathering in 2016.

PUBLIC BENEFIT

When planning PET’s activities for the year, the Trustees have given due consideration to the Charity

Commission’s statutory guidance on public benefit, and highlight below some examples of our activities:

we grant to individual prisoners throughout England and Wales, irrespective of race or religion, access

to distance learning courses not otherwise available within the prison system, and which we believe

(supported by rigorous evidence from recent Ministry of Justice research) have a positive impact on

their chance of avoiding future re-offending, which benefits the individuals, their families, and wider

society;

we provide an advice service to assist prisoners to gain maximum benefit from successful selection,

study and completion of their courses; and

we promote debate about prisoner learning and make the case for its benefits to society.

RISK MANAGEMENT

The Trustees regularly review, assess and ensure the implementation of systems to mitigate the major risks

to which PET is exposed, in particular those related to the operation and finances. They do this, with the

assistance of the Chief Executive, by reviewing whether there have been any material changes in the risks

to which PET is exposed at each Board meeting. The Trustees also complete an annual risk review as part

of the approval of PET's strategy for the forthcoming year, to ensure adequate plans and procedures are in

place to mitigate the key risks to which PET is exposed. Internal control risks are minimised by the

implementation of procedures in respect of authorisation of expenditure and grant commitments.

FINANCIAL REVIEW

The results of the year's operations are set out in the attached financial statements. The total retained

reserves at 31 December 2014 amounted to £764,092.

Total incoming resources for the year ended at 31 December 2014 totalled £1,363,519 compared with

£986,136 for 2013 .

In 2014 PET received £691,010 from charitable trusts and corporate institutions (2013 - £458,887);

£530,210 from government sources (2013 - £414,578); £115,639 from individuals, including Gift Aid and

legacies (2013 - £96,973); £18,534 from fundraising events (2013 - £11,428); £3,626 from investment

income and other income (2013 - £4,270); and £4,500 income from donated services (2013 - £Nil).

Our outgoings amounted to £1,134,958, an increase from £1,010,928 in 2013. This is largely due to the

expansion of our charitable delivery in line with our three year strategy, as we grew our Access to Learning

and Learning Matters programmes. We also moved to a larger and improved office space to enable our

expansion.

•

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12




Overall there was a net surplus on unrestricted funds of £147,885, increasing unrestricted funds from

£430,606 to £578,491. Restricted funds increased from £104,925 to £185,601. The growth in funds has

been the result of a very successful anniversary year in terms of fundraising, we intend to use all the

restricted funds and the majority of the unrestricted funds to fund our ambitious strategy for expansion in

2015 and beyond.

GRANT-MAKING POLICY

Any individual who has been sentenced and is currently serving a custodial sentence in England or Wales is

eligible to apply for a grant from PET to enable him/her to partake in an educational distance learning

course, or to purchase arts/hobby materials. Our detailed grant approval criteria are shared with prison

education staff and applicants upon request, and must include a strong letter of application, an endorsement

from a member of staff at the prison, selection of a suitable course, and having the ability to complete the

course during his/her sentence.

REMUNERATION POLICY

PET is hugely grateful for the commitment and enthusiasm of its staff for the cause of prisoner education. It

also takes the view that it is essential to attract and retain staff with the appropriate skills and capabilities,

and reward them fairly for delivering PET’s important work on behalf of prisoners and to the benefit of

society. It is therefore important to pay staff fairly, while also having prudent regard to the use of charitable

resources. In order to do this, PET reviews its salaries on a regular basis using professional job evaluation,

and considers salaries in relation to the charity sector for the job levels concerned. Additionally, between

salary reviews, the Trustees may complete discretionary annual reviews taking account of (whilst not being

constrained by) the movement of pay and prices over the period and other relevant factors.

RESERVES POLICY

As most of PET’s income is dependent upon successful appeal and fund-raising activity and is therefore

subject to unpredictable fluctuation, PET has a policy of maintaining a reserve of not less than four months’

recurring expenditure in addition to holding the funds required to pay out grants already approved. In the

light of continuing changes and uncertainties in government policy and its implementation, as well as

anticipated cost increases as PET expands its charitable delivery in line with its three year strategy, the

Trustees have considered it prudent to keep slightly above this level of reserve in order better to ensure the

preservation of the work of PET for the long term; all further funds will be used to fund our growth strategy in

2015 and beyond.

RESPONSIBILITIES STATEMENT OF THE TRUSTEES

The Trustees (who are the directors of PET for the purposes of company law) are responsible for preparing

the Annual Report and the financial statements in accordance with applicable law and United Kingdom

General Accepted Accounting Practice.

Company law requires the Trustees to prepare financial statements for each financial year, which give a true

and fair view of the state of affairs of the charitable company and the incoming resources and application of

resources, including the income and expenditure, of the charitable company for the year. In preparing these

financial statements, the Trustees are required to:

Continued overleaf….

13




select suitable accounting policies and then apply them consistently,

observe the methods and principles in the Charities SORP,

make judgements and estimates that are reasonable and prudent,

state whether applicable UK Accounting Standards have been followed, subject to any material

departures disclosed and explained in the financial statements,

prepare the financial statements on the going concern basis (unless it is inappropriate to presume that

the charitable company will continue in operation).

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable

accuracy at any time the financial position of PET and enable them to ensure that the financial statements

comply with the Companies Act 2006. They are also responsible for safeguarding the assets of PET and for

ensuring that the assets are properly applied in accordance with charity law, and for taking reasonable steps

for the detection and prevention of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information

included on PET's website. Legislation in the United Kingdom governing the preparation and dissemination

of financial statements may differ from legislation in other jurisdictions.

In so far as the Trustees are aware, there is no relevant audit information of which the charitable company's

auditors are unaware, and we have taken all the steps that we ought to have taken as directors in order to

make ourselves aware of any relevant audit information and to establish that PET's auditors are aware of

that information.

Preparation of the report

This report has been prepared taking advantage of the small companies exemption of section 415A of the

Companies Act 2006.

Auditors

The auditors, Hartley Fowler LLP, have indicated their willingness to accept re-appointment under Section

485 of the Companies Act 2006.

This report was approved and authorised for issue by the Trustees on 25 March 2015 and signed on its

behalf by:

Graham Ziegler FCA

Hon. Treasurer

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14

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF

PRISONERS' EDUCATION TRUST (REGISTERED COMPANY NO. 04132595)

We have audited the financial statements of Prisoners' Education Trust for the year ended 31 December

2014 which comprise 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 United

Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

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

Respective responsibilities of trustees and auditors

As explained more fully in the Statement of Trustees' Responsibilities set out on pages 13 and 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

A description of the scope of an audit of financial statements is provided on the APB's website at

www.frc.org.uk/apb/scope/private.cfm.

Opinion on financial statementsIn our opinion the financial statements:

give a true and fair view of the state of the charitable company's affairs as at 31 December 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; 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 Report of the Trustees for the financial year for which the financial

statements are prepared is consistent with the financial statements.


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15

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF

PRISONERS' EDUCATION TRUST (REGISTERED COMPANY NO. 04132595)

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 Report of

the Trustees.

Jonathan Askew (Senior Statutory Auditor)

for and on behalf of Hartley Fowler LLP

Statutory Auditors

Chartered Accountants

4th Floor Tuition House

27/37 St George's Road

Wimbledon

London

SW19 4EU

Date: 08/04/2015

•

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16


STATEMENT OF FINANCIAL ACTIVITIES

(incorporating Income and Expenditure Account & Statement of Total Realised Gains and Losses)


Unrestricted Restricted Total Total

Funds Funds Funds Funds

Note 2014 2014 2014 2013

£ £ £ £

INCOMING RESOURCES

Incoming resources from generated funds:

Voluntary income 2 409,155 331,161 740,316 426,157

Activities for generating funds 3 18,534 - 18,534 11,428

Investment income 2,568 - 2,568 2,845

4 - 601,043 601,043 544,281

Other incoming resources 1,058 - 1,058 1,425

TOTAL INCOMING RESOURCES 431,315 932,204 1,363,519 986,136

RESOURCES EXPENDED

Costs of generating voluntary income 153,805 - 153,805 123,166

Charitable activities:

Access to Learning 34,582 666,880 701,462 677,322

Learning Matters 65,450 187,062 252,512 175,597

Resettlement 2,007 - 2,007 5,501

Peer Mentoring - - - 7,120

Other charitable activities 9,450 - 9,450 2,997

Charitable activities 111,489 853,942 965,431 868,537

Governance costs 15,722 - 15,722 19,225

TOTAL RESOURCES EXPENDED 5 281,016 853,942 1,134,958 1,010,928

150,299 78,262 228,561 (24,792)

Transfer between funds 11 (2,414) 2,414 - -

NET MOVEMENT IN FUNDS 147,885 80,676 228,561 (24,792)

TOTAL FUNDS AT 1 JANUARY 2014 430,606 104,925 535,531 560,323

TOTAL FUNDS AT 31 DECEMBER 2014 578,491£ 185,601£ 764,092£ 535,531£

All incoming resources and resources expended arise from continuing activities.

Incoming resources from

charitable activities

Net income/(expenditure) before

transfer

The annexed notes form part of these financial statements

17

PRISONERS' EDUCATION TRUST (company limited by guarantee no. 04132595)

BALANCE SHEET

As at 31 December 2014

Notes 2014 2013

£ £ £ £

FIXED ASSETS

Tangible assets 8 19,046 -

CURRENT ASSETS

Debtors 9 148,975 91,609

Cash and short term deposits 765,670 722,052

914,645 813,661

CREDITORS: amounts falling due

within one year 10 (169,599) (278,130)

NET CURRENT ASSETS 745,046 535,531

NET ASSETS 764,092£ 535,531£

FUNDS

Restricted funds 11 185,601 104,925

Unrestricted funds: General fund 11 578,491 430,606

764,092£ 535,531£

ALEXANDRA MARKS, Chair

G A ZIEGLER FCA, Hon. Treasurer

These financial statements have been prepared in accordance with the special provisions of Part 15 of the

Companies Act 2006 relating to small charitable companies. They were approved and authorised for issue

by the Trustees on 25 March 2015 and signed on their behalf by

The annexed notes form part of these financial statements

18


NOTES TO THE FINANCIAL STATEMENTS


1. ACCOUNTING POLICIES

Basis of preparation of financial statements

Incoming resources

Resources expended

Fund accounting

The financial statements have been prepared under the historical cost convention and in accordance

with the Companies Act 2006 and the Statement of Recommended Practice (SORP), "Accounting and

Reporting by Charities" published in 2005.

All incoming resources are included in the Statement of Financial Activities when PET is legally entitled

to the income and the amount can be measured reliably. Grants are accounted for in the period

specified for their use by donors or, where there is no time restriction, when entitlement has been

established; income deferred is shown within creditors. Legacy income is recognised when it is

reasonably certain that a legacy will be received and the amount receivable can be reliably measured.

Income tax recoverable in relation to investment income or Gift Aid donations is recognised at the time

the relevant income is receivable. Goods, facilities and services donated for PET's use, where the

benefit is quantifiable and the goods or services would have had to be purchased, are recognised in

the financial statements as both income (gifts in kind) and expenditure, at a reasonable estimate of

their value in the period in which they are received. All other income is accounted for on the accruals

basis.

General funds are unrestricted funds which are available for use at the discretion of the Trustees in

furtherance of the general objects of PET and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular

purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by

donors or which have been raised by PET for particular purposes. The cost of raising and

administering such funds are charged against the specific fund. The aim and use of each restricted

fund is as set out in Note 11.

All expenditure is accounted for on an accruals basis and has been included under expense categories

that aggregate all costs for allocation to activities. Cost of generating funds comprise the costs

associated with attracting voluntary income. Support costs, which cannot be directly attributed to

particular activities, have been apportioned proportionately based on the activity levels of different

charitable activities, and their relative demands on central resources. Grants awarded are recorded in

the Statement of Financial Activities when the award has been approved by the scrutiny committee, as

a constructive obligation has been formed. Governance costs include the costs of servicing Trustees'

meetings, audit and strategic planning. Irrecoverable VAT is charged against the category of resources

expended for which it was incurred. Rentals applicable to operating leases are charged to the

Statement of Financial Activities over the period in which the cost is incurred.

The effects of events relating to the year ended 31 December 2014 which occurred before the date of

approval of the financial statements by the Trustees have been included in the financial statements to

the extent required to show a true and fair view of the state of affairs at 31 December 2014 and the

results for the year ended on that date.

19




Tangible fixed assets and depreciation

Furniture/fittings - 10 years

Office & IT equipment - 5 years

Foreign currencies

Pensions

Taxation

PET has charitable status and is thus exempt from taxation on its income under various exemptions

available in the Taxes Acts.

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the rate of

exchange ruling at the balance sheet date. All differences are taken to the profit and loss account.

PET contributes employer contributions towards a stakeholder pension. Contributions are charged to

the Statement of Financial Activities as they become payable.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated

to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives

on the following bases:

All individual assets costing more than £1,000 are capitalised. Individual assets costing below £1,000

are capitalised where they form part of a packaged asset with a total value over £1,000.

20




2. VOLUNTARY INCOME



2014 2014 2014 2013

£ £ £ £

Institutions who granted or donated £2,000 or more:

A & S Burton Charitable Trust 15,000 - 15,000 -

Amelia Chadwick Trust 2,000 - 2,000 2,000

Big Lottery Fund (Awards for All) - 3,172 3,172 1,498

Bowland Charitable Trust - 3,000 3,000 3,000

Brown-Mellows Trust - - - 2,000

Constance Travis Charitable Trust - 3,000 3,000 -

Dentons Charitable Trust 4,125 - 4,125 -

Eleanor Rathbone Charitable Trust - 2,000 2,000 -

Elizabeth Rathbone Charitable Trust - 2,000 2,000 -

Garfield Weston Foundation 50,000 - 50,000 50,000

Hilton in the Community Foundation - 10,000 10,000 -

Impetus Trust - - - 5,000

J Paul Getty Jr Charitable Trust 115,000 - 115,000 -

Jill Franklin Trust - 12,000 12,000 11,000

John Lyon's Charity - 40,000 40,000 -

Joseph Strong Frazer Trust 2,000 - 2,000 2,000

Langdale Trust - 3,000 3,000 -

Leonard Chadwick Charitable Trust - - - 2,000

- 12,000 12,000 -

- - - 10,000

Monmouth Coffee Company 5,000 - 5,000 5,000

Phoenix Equity Partners 12,200 - 12,200 12,250

Pilkington General Charity - 3,000 3,000 -

Saxham Trust 3,200 - 3,200 -

Sir Halley Stewart Trust - - - 4,000

Sir John Cass's Foundation - - - 10,700

The 29th May 1961 Charitable Trust 125 10,000 10,125 10,000

The A B Charitable Trust 10,000 - 10,000 -

The Aldo Trust - 3,500 3,500 3,500

- - - 10,000

The Allen & Overy Foundation - 2,500 2,500 -

The Batchworth Trust 10,000 - 10,000 -

The Beatrice Laing Trust - 5,000 5,000 5,000

The Bonus Trust - - - 3,000

The Bromley Trust 5,000 - 5,000 -

The Brook Trust - 14,875 14,875 -

The Carr-Gregory Trust - 4,000 4,000 -

The Chelsea Square 1994 Trust - - - 2,000

The Chetwode Foundation - 5,000 5,000 -

The Christopher Anthony Trust 2,000 - 2,000 -

The Clothworkers' Foundation - 20,000 20,000 -


The Allan & Nesta Ferguson Charitable

Settlement

Lloyds Bank Foundation for the Channel

IslandsMembers Charitable Fund, The

Goldsmiths’ Company Charity

21






2014 2014 2014 2013

£ £ £ £

The Cooks Charity - - - 10,640

The Drapers Charitable Fund - - - 12,500

The Edward Cadbury Charitable Trust - 5,000 5,000 -

The Equitable Charitable Trust - 10,000 10,000 -

The Ernest Cook Trust - 2,500 2,500 -

The Evan Cornish Foundation - - - 5,000

The Goldcrest Charitable Trust - - - 2,000

The Green Hall Foundation - 4,000 4,000 -

The Grimmitt Trust - - - 2,000

The Hadfield Charitable Trust - 2,000 2,000 -

The Hadley Trust 30,000 - 30,000 30,000

The Joseph Rank Trust - 10,000 10,000 -

The Leigh Trust - - - 2,500

The Liz & Terry Bramall Foundation - 10,000 10,000 -

The Noel Buxton Trust - 2,000 2,000 -

The Norton Foundation - - - 2,000

The Peacock Charitable Trust 5,000 - 5,000 5,000

The Roddick Foundation - 25,500 25,500 -

The Royal British Legion - 6,658 6,658 -

The Sir James Knott Trust - 5,000 5,000 -

The Sir James Reckitt Charity - 2,500 2,500 -

The Summerfield Charitable Trust - 3,000 3,000 -

The Swan Mountain Trust 5,000 - 5,000 5,000

The Sylvia Adams Charitable Trust - 10,000 10,000 -

The Taylor Family Foundation - 10,000 10,000 10,000

The Topinambour Trust - 2,000 2,000 3,000

The Vandervell Foundation - - - 20,000

The Walter Guinness Charitable Trust - 2,000 2,000 2,000

The Whitaker Charitable Trust 2,000 - 2,000 2,000

The Worshipful Company of Weavers - 3,502 3,502 1,499

Violet & Milo Cripps Charitable Trust 5,000 - 5,000 -

William A. Cadbury Trust - - - 10,000

Youth and Philanthropy Education - - - 3,000

Other donations from institutions 28,439 35,381 63,820 47,097

Individuals who donated £2,000 or more:

Alexandra Marks 700 1,000 1,700 2,602

Brian Roberts 5,000 - 5,000 -

His Honour John Samuels QC - 2,000 2,000 2,670

John Watson - - - 4,000

Roger Chadder 7,550 - 7,550 10,000

Gift Aid receivable 8,160 2,473 10,633 4,255

Other donations from individuals 67,268 16,600 83,868 61,446

Donated services from Linklaters LLP 4,500 - 4,500 -


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2014 2014 2014 2013

£ £ £ £

Legacies:

The late John Fairhurst - - - 10,000

From the estate of Iris Hulse deceased 4,888 - 4,888 -

- - - 2,000

409,155£ 331,161£ 740,316£ 426,157£

3. ACTIVITIES FOR GENERATING FUNDS



2014 2014 2014 2013

£ £ £ £

Fundraising events 18,534 - 18,534 11,428

18,534£ Nil£ 18,534£ 11,428£

4. INCOMING RESOURCES FROM CHARITABLE ACTIVITIES



2014 2014 2014 2013

£ £ £ £

Grants:

- 446,617 446,617 390,517

Esmée Fairbairn Foundation - 17,500 17,500 35,000

Ministry of Justice - 52,021 52,021 -

Paul Hamlyn Foundation - 23,333 23,333 35,000

- - - 8,500

The Bromley Trust - 6,667 6,667 12,083

The Monument Trust - 23,333 23,333 35,000

Welsh Assembly Government - 20,564 20,564 24,061

Other grants - 11,008 11,008 4,120

Nil£ 601,043£ 601,043£ 544,281£

From the estate of Joan Truman

deceased

Prison Reform Trust (from funding

provided by The Hadley Trust)

Department for Business, Innovation

and Skills

23




5. RESOURCES EXPENDEDGrant

funding of

activities Staff costs

Activities

undertaken

directly

Support

costs

Total

2014

£ £ £ £ £

Access to Learning 453,685 184,092 6,423 57,262 701,462Learning Matters - 162,888 53,729 35,895 252,512Resettlement - 1,563 - 444 2,007Other charitable activities - - 9,450 - 9,450

Total charitable

expenditure

453,685 348,543 69,602 93,601 965,431

Generating funds - 112,946 17,708 23,151 153,805Governance costs - 10,047 4,460 1,215 15,722Support costs - 36,754 81,213 (117,967) -

453,685£ 508,290£ 172,983£ Nil£ 1,134,958£

Analysis of direct support costs:

Total Total

2014 2013

£ £

Rent and rates 27,193 16,527

Other premises costs 2,852 3,463

Insurance 2,716 2,268

Computer & IT costs 10,136 9,348

Office moving costs 9,407 2,280

Bank charges 963 1,327

Postage, photocopier and telephone 13,064 7,671

Printing and stationery 6,972 3,511

Legal and advice costs 4,500 4,237

Depreciation 263 -

Other support costs 3,147 2,776

81,213£ 53,408£


Support staff costs have been allocated based on an estimate of the percentage of time staff spend

supporting the activity; office costs have been apportioned based on an estimate of relative usage of

these central resources. Premises costs have been allocated across projects based on estimated floor

space used. Direct support costs are analysed directly below, staff costs are analysed in Note 6.

24




Resources expended include:

2014 2013

£ £

Auditors’ remuneration:

Audit fee excluding VAT 3,000 3,000

Irrecoverable VAT on audit fee 600 600

Operating lease rentals - Land and buildings 18,923 10,000

- Plant and equipment 1,008 1,008

Depreciation on owned assets 263 -

2014 2013

£ £

Open University courses 94,846 133,767

General education courses and arts/hobby materials 358,839 272,252

Resettlement grants - 5,561

453,685£ 411,580£

6. STAFF NUMBERS AND COSTS

2014 2013

£ £

Wages and salaries 432,209 372,487

Social security costs 44,780 31,905

Defined contribution pension costs 21,216 17,055

Other staff costs 1,176 17,352

Agency staff and consultants 8,909 51,324

508,290£ 490,123£

Number Number

Generating funds 2.8 2.3

Access to Learning 5.3 5.6

Learning Matters 4.4 3.0

Peer Mentoring - 0.1

Governance 0.2 0.2

Support 0.8 1.0

13.5 12.2

Grant funding includes grants payable for Open University, other accredited and unaccredited distance

learning courses and small grants for arts and hobby materials. All grants are made to acquire courses

and materials for individuals, and have been analysed below:

One employee, The Chief Executive, received a gross salary in the range of £60,000 to £70,000 (2013 -

none); pension contributions of 5% of total earnings were also payable.

The average weekly number of employees, calculated as full time equivalents, during the period was:

25




7. CONTROL OF TRUST AND TRUSTEE REMUNERATION AND EXPENSES

8. TANGIBLE FIXED ASSETSFurniture

and fittings

Office & IT

equipmentTotal

£ £ £

Cost

At 1 January 2014 - - -

Additions 17,297 2,012 19,309

At 31 December 2014 17,297 2,012 19,309

Depreciation

At 1 January 2014 - - -

Charge for the year 213 50 263

At 31 December 2014 213 50 263

Net book value

At 31 December 2013 Nil£ Nil£ Nil£

At 31 December 2014 17,084£ 1,962£ 19,046£

9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2014 2013

£ £

Trade debtors 107 200

Net prison contributions due 10,738 7,154

Legacy debtor 35,105 35,105

Grants receivable 66,369 32,110

Donations receivable 10,075 -

Prepayments 4,882 8,737

Accrued income 16,804 8,303

Lease deposit 4,895 -

148,975£ 91,609£

During the year, no Trustee received any remuneration (2013 - £NIL). No Trustee received

reimbursement of expenses (2013 - £NIL). There is no ultimate controlling party.

26




10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2014 2013

£ £

Trade creditors 4,727 1,332

Tax and other social security 11,582 12,764

Restricted fund underspend repayable - 2,671

Grants committed but not yet paid 85,200 83,879

Deferred grant income (see below) 46,792 148,515

Accruals 19,720 28,969

Other creditors 1,578 -

169,599£ 278,130£

Deferred grant income

At start of year 148,515 95,221

Amount released to incoming resources (148,515) (80,124)

Grant income deferred in the year 46,792 133,418

At end of year 46,792£ 148,515£

11. STATEMENT OF FUNDS

Transfers and

Brought Incoming Resources investment Carried

Forward Resources Expended gains/(losses) Forward

£ £ £ £ £

RESTRICTED FUNDS

Learning Matters 11,025 150,854 (159,879) - 2,000

Access to learning

General 18,632 40,581 (34,287) 46 24,972

Women prisoners 4,270 40,375 (5,131) - 39,514

Younger prisoners 17,527 90,500 (50,498) 105 57,634

Older prisoners - 16,000 (4,014) 314 12,300

Army veterans 2,186 6,658 (8,729) - 115

Department for

Business, Innovation and

Skills

- 446,617 (446,617) - -

Welsh Assembly

Government- 20,564 (20,564) - -

Geographically restricted 33,023 82,500 (75,763) 682 40,442

Course subject restricted 15,515 - (14,138) 1,118 2,495

John Allt Award 2,747 2,000 (2,760) - 1,987

Other small grants - 8,881 (7,138) 149 1,892

Website development - 6,674 (6,674) - -

Capital - 20,000 (17,750) - 2,250

104,925£ 932,204£ (853,942)£ 2,414£ 185,601£


27




RESTRICTED FUNDS

Learning Matters

Access to Learning:

General

Women prisoners

Younger prisoners

Older prisoners

Army Veterans

Department for Business,

Innovation and Skills

Welsh Assembly

Government


For distance learning courses and advice to prisoners aged 50 and above.

Major funders in 2014 include The Green Hall Foundation, The Joseph

Rank Trust, and The Noel Buxton Trust.

For research, policy, advocacy and alumni development work. Major

funders in 2014 include Esmée Fairbairn Foundation, Paul Hamlyn

Foundation, The Bromley Trust, The Monument Trust (research, policy and

advocacy); The Carr-Gregory Trust (alumni development); and the Ministry

of Justice (researching and evaluating the usefulness of the Learner Voice

toolkit in English prisons).

For distance learning courses and advice; major funders in 2014 include

donors to our 'The Forgotten' Big Give Appeal (longer sentenced

prisoners), The Aldo Trust (maximum £25 per prisoner per year), and The

Beatrice Laing Trust.

For distance learning courses and advice to women in prison; major

funders in 2014 include The Brook Trust and The Roddick Foundation.

For distance learning courses and advice to younger prisoners under 30.

Major funders in 2014 include: Bowland Charitable Trust (North West of

England), Hilton in the Community Foundation (aged 26 and under), John

Lyon's Charity (9 North London boroughs), The Chetwode Foundation

(aged 26 and under), The Equitable Charitable Trust (aged 24 and under),

The Ernest Cook Trust, The Sylvia Adams Charitable Trust (aged 26 and

under), and The Taylor Family Foundation (South East England).

For distance learning courses to ex-service personnel; major funders in

2014 include The Royal British Legion (prisoners with more than two years

left to serve of their sentence).

Funding granted for distance learning courses, including Open University

Access courses and a range of accredited and unaccredited further

education courses, as well as an Advice and Information service for serving

prisoners and their families.

Funds granted by the Welsh Assembly Government, through NOMS in

Wales for prisoners who are ordinarily resident in Wales to study Open

University and other accredited and unaccredited courses.

28




Geographically restricted

Course subject restricted

John Allt Award

Website development

Capital

SUMMARY OF FUNDS

Transfers and

Brought Incoming Resources investment Carried

Forward Resources Expended gains/(losses) Forward

£ £ £ £ £

General Funds 430,606 431,315 (281,016) (2,414) 578,491

Restricted Funds 104,925 932,204 (853,942) 2,414 185,601

535,531£ 1,363,519£ (1,134,958)£ Nil£ 764,092£


Funds granted for distance learning courses in specific subject areas.

A fund established in memory of John Allt, administered by PET and to be

applied in awarding prizes to prisoners undertaking further or higher

education. Major funders in 2014 include The Topinambour Trust.

Funds granted for distance learning courses and advice with specific

geographical restrictions. Major funders in 2014 include Constance Travis

Charitable Trust (Northamptonshire), Eleanor Rathbone Charitable Trust

and Elizabeth Rathbone Charitable Trust (Merseyside), Jill Franklin Trust

(for foreign nationals or non-vocational courses), Langdale Trust

(Birmingham), Lloyds Bank Foundation for the Channel Islands (Jersey),

Pilkington General Charity (Liverpool and Merseyside), The 29th May 1961

Charitable Trust and The Edward Cadbury Charitable Trust (Midlands), The

Allen & Overy Foundation (9 East London boroughs), The Hadfield

Charitable Trust (Cumbria), The Liz & Terry Bramall Foundation

(Yorkshire), The Sir James Knott Trust (North East of England), The Sir

James Reckitt Charity (Hull & East Yorkshire), The Summerfield Charitable

Trust (Gloucestershire), and The Walter Guinness Charitable Trust

(Wiltshire).

Funds granted by The Clothworkers' Foundation for purchasing ICT

equipment, furniture, fixtures and fittings for PET's new office space. The

carried forward balance represents a capital commitment (see also Note

12) to purchase new ICT equipment for use by alumni, staff members and

volunteers.

Funds granted to support the redevelopment of PET's website; major

funders in 2014 include Big Lottery Fund (Awards for All) and The

Worshipful Company of Weavers.

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ANALYSIS OF NET ASSETS BETWEEN FUNDS

General Restricted Total Total


2013

£ £ £ £

Tangible fixed assets 19,046 - 19,046 -

Net current assets 559,445 185,601 745,046 535,531

578,491£ 185,601£ 764,092£ 535,531£

12. CAPITAL COMMITMENTS

2014 2013

£ £

Amounts contracted for but not provided in the financial statements 2,250£ Nil£

13. OTHER FINANCIAL COMMITMENTS

At 31st December 2014 the Charity had committed to purchase £2,250 of ICT equipment using funds

granted by The Clothworker's Foundation; this commitment was fulfilled in February 2015.

At 31 December 2014 the Charity had an operating lease for its office premises with an initial term of 5

years. Under that lease, there is a rolling 6-month break clause, and therefore the commitment by the

charity at any given point is 6 months' rent and service charge. As at 31 December 2014, this

amounted to £28,613. In 2014, the Charity's property lease in Mitcham expired. Therefore, as at 31

December 2013, the lease commitment due within one year was £9,831. There are no other non-

cancellable operating lease commitments falling due within one year or in more than one year (2013 -

the same).

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