The trustees present their annual report and financial statements for the year ended 31 July 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
Yellow Ribbon Community Chaplaincy is a registered charity working in Shropshire and the Midlands for the public benefit to promote the health and wellbeing, education and relief of poverty of those persons who are in prison, those leaving prison, those at risk of offending and their families by providing resettlement and rehabilitation services including, but not limited to, the provision of mentoring, training, accommodation and support services.
Vision
Our Vision is to journey with people through the many obstacles they face into a sustainable future. Key to this transformation is building a trusted and valued relationship so their voice is heard. Focusing on the one is essential, as each of our clients is unique and needs support tailored to their needs.
Mission
Our Mission is to support the resettlement of people being released from prison and prevent reoffending by acting as a bridge between the statutory sector and the community through mentoring and community development.
Objectives 2023/24
Embed operating model integrating housing and employability stream
Introduce peer support programme for drug and alcohol recovery in houses
Embed tailored approach to employability
Develop West Midlands Housing project
Set up effective infrastructure and strengthen sustainability
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
The charity is a mentoring organisation at its heart. In October 2013, the project piloted a mentoring approach to supporting those leaving prison who were returning to Shropshire. In March 2015, the charity was accredited with the Approved Provider Standard from the Mentoring and Befriending Foundation. This is an extract from the final report.
“The recommendation to approve the project for APS is given without reservation. Yellow Ribbon has internal mechanisms and procedures that demonstrate a commitment to robust organisation and a high standard of project working, along with strong inter-agency partnership and community networking. With the value 'everyone is unique', the project is set up to be supportive, responsive and flexible as needs arise, and with the in-built strength in the flow of communication between staff and volunteers, they actively seek to achieve their purpose and provide a quality service.”
From this foundation, the charity started developing its vision for the scaling up of this work across the region. This was encouraged by probation and prison resettlement teams. In the three years to 2018, the charity trained over 100 mentors. Since then mentoring has continued to be a core provision provided by the staff. However, in 2020 the National Faith lead encouraged us to continue with this work regionally. A fresh information sharing agreement was completed with the restructured probation service in 2021. Yellow Ribbon Community Chaplaincy is the single point of contact for mentoring through the gate into faith communities in the West Midlands. The charity is inspired to develop a regional and connected mentoring network across the Midlands.
This last year has seen a new team arrive to undertake the operational work at Yellow Ribbon. The nurturing work has continued with a foundation course which has bridged the gap from the end of the employment support previously delivered through EU funding. This has helped to establish person centred goals. A successful sports project brought some excellent results with the fitness and mental health of participants. This work was profiled on the West Midlands news. The chaplaincy department has taken on the programme of activities and engaged new instructors.
The charity was successful in a competitive bid to secure funds from the department of Levelling up to purchase Halfway House on the Wrekin. We were awarded £320,000 to purchase this iconic asset in March and by June the purchase was complete. The café was ready to open by 31 July 2024, its first trial day of trading. The objectives have four themes as follows:
Hospitality – thriving café
Wellbeing and wholeness
Unlocking potential
Physical activity in a natural environment.
This opens a new major strand of prevention for the charity. Our strategic plan is being remodelled to bring this new work to life.
Housing support strengthened further with a multi-disciplinary team delivering a wide range of interventions which brought significant change. This is continuing to build stability. The number of properties in Stafford, Walsall and Wolverhampton, West Midlands, and Shropshire remained the same. We are considering a move into Worcestershire so that we can offer more people leaving prison, a much-needed resource and work closely with criminal justice partners and the local authority to provide a safe, sustainable and stable living environment.
The development of our comprehensive support is continuing to be shaped within our three priorities: somewhere safe and stable to live; something meaningful to do; someone to walk alongside you.
Direct work in prison is ongoing in two prisons, Hewell and Oakwood. Team members also visit Fosse Way and Featherstone on Sundays once a month. The housing team also worked closely with the drug and inclusion team at Oakwood and visited Brinsford. Yellow Ribbon continue to work with the Probation Service and the Community Chaplaincy Association, our umbrella body, to develop support for those engaging with chaplaincies in prison. Our pilot work, faith, is formally recognised as a protective characteristic for those leaving prison. By the end of the year prisons were being reengaged. Research was undertaken by the Roehampton Institute to identify the strengths of our faith-based work with clients who have opted for a spiritual element of their recovery. Three key factors were identified that enabled a thriving community for those experiencing support with Yellow Ribbon. Initially named as the middleman for our clients, further work established that our work could be characterised as accompaniment, a catalyst and intercession.
2024 OUTCOMES
Over the last year,
100 people were directly helped through our supported living scheme
Average length of stay has reduced to 20 weeks
80 people were mentored
10 people have gone into further training
3 people secured employment
In 2023/24 the charity had a total income of £932,325 (2023: £663,060) and a total expenditure of £570,326 (2023: £588,449). The stronger surplus is continuing to build the reserve to cover operational costs which is vital to a growing charity. In 2023/24, we maintained a tight control on expenditure and we will continue to do so in 2024/25. The new project base is Halfway House and Meeting Point House is still our office base. Its location in Southwater provides a strong community resource to our clients. Whilst our income from the European social funding finished, it is anticipated that the income from the Halfway House will replace this in future years. In 2024/25, the budgeted income and expenditure is expected to be static as the housing scheme remained the same in Telford, Stafford, Shrewsbury, Walsall and Wolverhampton.
The trustees are moving towards between three and six months reserves to cover operating costs and are focused on staff salaries. Operating lease commitments have been carefully reviewed.
The level set recognises salaries as the major area of expenditure and takes account of the fact that vulnerable people are dependent on the services supplied, and the charity is dependent in part on voluntary gifts and donations.
As at 31 July 2024, the charity’s level of free reserves stands at £27,324 (2023: £26,253). Free reserves are calculated as total unrestricted funds, excluding designated funds, and any unrestricted funds tied up in tangible fixed assets.
The calculation is as follows:
Total Unrestricted Funds: £602,574
Less: Designated Funds: £(110,000)
Less: Unrestricted Funds Invested in Fixed Assets: £(465,250)
Free Reserves: £27,324
The future housing commitments will be met by current and future housing benefits (as per note 21) and are therefore excluded from the free reserves calculation.
The trustees review the charity’s main risks on a regular basis. They are responsible for approving and overseeing the implementation of any changes to procedures, training or other actions to mitigate the risks the charity faces. A formal Risk Register will be established by the trustees in the next six months. All areas which are RAG rated, with high priority areas separately reported.
Aims & Priorities
Somewhere safe and secure to live
Something meaningful to do
Someone to walk alongside
Our five-year Strategic Plan 2019-2024 has 5 objectives which are:
1. Develop mentoring and befriending capability
2. Enhance employment pathway
3. Accommodation – improve access and quality
4. Strengthen the recovery journey
5. Set up effective infrastructure
The charity is a charitable company limited by guarantee and governed by its Memorandum and Articles of Association dated 17 April 2015. It is also registered as a charity with the Charity Commission. In the event of winding up, members’ liabilities are limited to £1 each.
The day-to-day operations of the charity are delegated by the Trustees to the management team. The charity's management team who served during the year and up to the date of signature of the financial statements were:
Mrs P Mack, CEO
Mr P Bell, Deputy CEO
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Trustees are appointed by resolution of the existing trustees. Trustees are familiar with the practical work of the charity and attend information events to keep up-to-date. Any new trustees receive all relevant information relating to the charity and undergo induction covering decision making processes, key employees, future plans and objectives. They are also advised of their legal obligations as trustees.
The trustees meet quarterly through the year and ad-hoc as events dictate. They receive Financial reports as well as regular updates on the charity’s activities and fundraising. They are responsible for the overall legal, financial and strategic direction and development of the charity.
Day-to-day management, including finance, HR and operations, is the responsibility of the CEO. She is supported by other members of the management team, who meet weekly, and who take responsibility for the assets of the charity, the supported housing and fundraising.
Small Company Exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Yellow Ribbon Community Chaplaincy (the charity) for the year ended 31 July 2024.
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
Since the charity’s gross income exceeded £250,000, the independent examiner must be a member of a body listed in section 145 of the Charities Act 2011. I confirm that I am qualified to undertake the examination because I am a member of Association of Chartered Certified Accountants (ACCA) - UK, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the Companies Act 2006.
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the Companies Act 2006 other than any requirement that the financial statements give a true and fair view, which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Yellow Ribbon Community Chaplaincy is a private company limited by guarantee incorporated in England and Wales. The registered office is Meeting Point House, Southwater, Telford, Shropshire, TF3 4HS.
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)". The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
One of the trustees received reimbursements of £55 (2023: £0) for expenses incurred while on charity business during the year.
The average monthly number of employees during the year was:
The remuneration of key management personnel was as follows:
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
A restricted grant of £300,000 was received for the purpose of purchasing the Halfway House. As the Halfway House is held for an unrestricted purpose, upon purchasing, the amount has been transferred to unrestricted funds.
Deferred income is included in the financial statements as follows:
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The income funds of the charity include restricted funds comprising of the following:
This fund is restricted for the use of the Halfway house.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
Operational reserve
This provides a reserve of at least 4 months operating costs. The operating lease commitments are covered by housing benefit income as per note 21.
Property repair fund
This is for dilapidations at the end of the lease.
The Halfway House
During the year, the charity's purchased the "The Halfway House", a property located on the Wrekin. The Wrekin is the best-known hill in the Shropshire Hills National landscape. Over 100,000 people visit the Wrekin every year, at least three quarters of them are locals.
The fourteen Telford properties, two Stafford properties, three Walsall properties and one Wolverhampton property are leased from local landlords on one year leases. The two Shrewsbury properties are leased from Green Pastures at an annual cost of £11,160 and are coming to the end of their medium - term leases. Many of the leases began new fixed terms this year, although some remain on a rolling monthly notice, thereby increasing the commitment in 2024.
The café and furniture workshop lease finished this year. The office at Meeting Point House is on a quarterly rent.
Amounts contracted for but not provided in the financial statements:
In the previous year, the charity's offer was accepted for the "The Halfway House", a property located on the Wrekin for a new community hub to be developed. The purchase was completed during the year.
There were no disclosable related party transactions during the year (2023 - none).