TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE...

Registered in EnglandCompany No 4873541

Charity No 1099931

KICKSTART NORFOLK

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2012

KICKSTART NORFOLK

CONTENTS

Page

Trustees' report 1 - 10

Auditors' report 11 - 12

Statement of financial activities 13

Balance sheet 14

Notes to the financial statements 15 - 24

KICKSTART NORFOLK

TRUSTEES’ REPORTFOR THE YEAR ENDED 31 MARCH 2012

The trustees, who are also directors of Kickstart Norfolk for the purposes of company law, present their annual report and the audited financial statements of the charitable company for the year ended 31 March 2012.

Members of the Council of Management

The following are the members of the Council of Management who acted as directors or secretary of the company, and served throughout the year unless stated.

P R Borthwick DirectorA R Jones Treasurer and DirectorR Polley Chairman and DirectorMs C A White DirectorMs B M Coldrick Director (until 23.03.12)Ms R Ditchman Company Secretary

Senior management team

T Wadlow Project manager (appointed 01.04.11)B Lynes Partnership managerMs C Wyatt Finance and admin officerD Curtis Operational manager (appointment 01.09.11)

Registered office

The charitable company’s registered office and the principal office of the charity is:

8-9 Royson WayHurn RoadDerehamNorfolkNR19 1WD

Auditors Price Bailey LLP20 Central AvenueSt Andrews Business ParkThorpe St AndrewNorwichNR7 0HR

Bankers Natwest plc, 45 London Street, Norfolk, NR2 1HXLloyds TSB plc, 38 Market Place, Dereham, NR19 2ATCCLA Investment Management Ltd, 80 Cheapside, London EC2V 6DZScottish Widows Bank plc, 67 Mornson Street, Edinburgh, EH3 8YJ

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TRUSTEES’ REPORT (CONTINUED)FOR THE YEAR ENDED 31 MARCH 2012

Structure, Governance and Management

Governing document

Kickstart Norfolk was incorporated as a private company limited by guarantee and not having share capital on 21 August 2003 (company number 4873541) and registered as a charity on 9 October 2003 (no 1099931). The charitable company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the charitable company being wound up members are required to contribute an amount not exceeding £1.

Governance and management structure

The directors of the company are also charity trustees for the purpose of charity law and under the charitable company’s Articles are known as members of the Council of Management (“the Council”).

The directors and trustees of Kickstart Norfolk are responsible for the strategic direction, financial and overall management of Kickstart Norfolk. This includes their duties under charity law and health and safety legislation.

The Kickstart Council, which normally meets quarterly, currently comprises 4 trustees from a variety of professional backgrounds relevant to the work of the charitable company. Sadly, our fifth trustees, Brenda Coldrick passed away on 21 March 2012 having been a trustee of the charity for the past eleven years.During that time Brenda provided Kickstart with calm guidance and loyal support at all times and will be deeply missed. The company secretary also sits on the Council but has no voting rights.

Council members met eight times during 2011/12, receiving reports and papers to enable them to give direction. For efficiency reasons, in June 2011, Council agreed to merge Council meetings with those of the Finance and General Purposes Committee. In addition to Council meetings, regular meetings were held with the Chair or Treasurer and Kickstart managers to provide additional oversight of operational strategy and financial matters.

A scheme of delegation is in place and day-to-day responsibility for the provision of the services rest with the Kickstart Manager, who is responsible for ensuring that the charitable company delivers the services specified and that key performance indicators are met.

Recruitment and appointment of trustees

Under the requirements of the Memorandum and Articles of Association one third of the members of the Council shall retire from office at each Annual Council meeting and, if appropriate, offer themselves for re-election. Philip Borthwick and Brenda Coldrick retired by rotation in June 2011 and, being eligible, offered themselves for re-election, and were duly re-elected.

Due to the nature of the charitable company’s work, with its focus on unemployed people and partnership working with statutory agencies and local authorities, the Council seeks to ensure that the needs of unemployed people are appropriately reflected in the professional skills of the trustees. In the event of particular skills being lost due to retirements, individuals with similar skills are approached to offer themselves for election to the Council.

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Trustee induction and training

All existing trustees are familiar with the practical work of the charitable company. Trustees have the opportunity to consider governance and training issues as part of the review of the risk register and during the trustees’ only parts of Council meetings. Training opportunities are circulated by the Kickstart Manager to the Chair of the Council. New trustees attend a short training session to familiarise themselves with the charitable company and the context within which it operates. These sessions are jointly led by the Chair of the Council of the charitable company and the Kickstart Manager and cover:

The obligations of Council members. The main documents which set out the operational framework for the charitable company, including the

Memorandum and Articles. Resourcing and the current financial position shown in quarterly budget reports. Future plans and objectives.

Copies of the Memorandum and Articles and the latest financial statements are issued to all new trustees.

Risk management

The Council has conducted a review of the risks to which the charitable company is exposed. A detailed risk register, based on Charity Commission good practice, is reviewed by trustees at least annually. It is updated monthly by the Kickstart Manager and progress reported to trustees at Council meetings. The risk register ensures that risks covering governance, operational, financial, external, health and safety (including fire risks) and compliance with law and revaluations are identified, assessed and mitigated. Risk assessment covers both impact and likelihood of risk being realised to help identify priorities for action. The risk register details the systems and procedures in place and any new action required to mitigate the risks the charity faces. In 2011/12, priority action was taken to mitigate:

Staff absence; IT deficiencies; High default levels; Weaknesses in health and safety management; and Dependency on one-off grant income.

2012/13 will see priority action to: renew or improve our assets (mopeds, other equipment and IT); further reduce our overhead costs; secure more income from SLA’s and contracted sources; maintain our new rider defaults at low levels; and complete the identified safety improvements (including, fire plan, repairs to emergency lighting and

manual handling training).

We minimize internal control risks through the implementation of procedures for authorisation of all transactions and new projects. Documented internal financial controls follow Charity Commission good practice guidance and were reviewed during 2011/12 by the Treasurer and Kickstart Managers.

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Health and Safety

A new health and safety management system and audit (put together with external competent person help from Iceni Safety and Stress Management) help ensure compliance with health and safety regulations. These procedures are periodically tested and reviewed to ensure that they continue to meet the needs of the charitable company. Auditing during the year showed regulatory implementation of risk assessments, fire drills and smoke, emergency alarm and equipment testing, electrical equipment and systems tests, waste removal, accident book and insurance required polices

We had three accidents recorded in the Kickstart Norfolk accident book during the year (one near miss and two strains) and nine at the Interweave project, one of which is the subject of a personal injury claim for a burnt arm; this is now in the hands of our insurer’s.

Iceni Safety and Stress Management Services conducted its formal external review in March 2012 and found sound systems in operation. Improvements to emergency lighting, manual handling training, the number of fire drills and implementation of a formal fire plan are planned.

Areas under improvement during 2012/13 include implementation of individual health and safety files, further first aid and manual handling training, overhaul of our emergency lighting and a safety rail for the office roof area in unit 8.

Related parties

There were no related party transactions during the period.

Objectives and activities

The charitable company’s objectives are:

the relief of poverty of those persons who are unemployed or in low paid work, and the relief of unemployment for the public benefit of persons who are unemployed and who are restricted

by transport limitations by facilitating access to and the use of work opportunities and training which is likely to lead to work opportunities principally by the provision of mopeds on such terms as the Council may decide.

The main activities for the period continued to focus upon the loan of mopeds to unemployed people and Interweave, a separate job creation scheme project based at Wood Norton.

During 2011/12, Council formally adopted the objective of Kickstart Norfolk becoming a self sustaining moped focussed social enterprise, covering most of its costs from rider and SLA/contractual income.

Achievements and performance

2011/12 was a challenging year. High unemployment and low referrals from partnership contracts have seen income and moped issues drop significantly below year start budget projections and targets.

We have worked hard during this year to reorganise the way we do things, restricting what we provide for freeand finding ways to secure new income, cut staff and other overhead costs and survive with less. But despite the challenges faced, we have continued to help many people to think through their travel needs and onto mopeds.

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Applications increased but mopeds issued fell during 2011/12 compared to 2010/11. 1010 people applied to the scheme this year, a rise of over 4.8% over last year and the highest figure in Kickstart’s history; although latest figures are worrying, with January to March 2012 seeing a 23% reduction on the previous year. During 2011/12 we started 349 moped loans, compared to 377 last year, a decrease of 28 (7.5%). Applicants report the lack of securing a job as the main reason behind them not converting their interest into a moped loan.

Since 2001, Kickstart has helped 3,037 people into jobs or work training. Less than one in five applicants is female, a proportion that has slightly reduced over the years despite all efforts to increase it (18.1 % in 2011/12 compared to 21.5% last year and 21.9% in 2009/10).

Kickstart Norfolk remains novel and significant in that it continues to operate with low and decreasing grant support (see the Financial Review section). To assist in our move to eventual sustainability, the Kickstart Council:

revised the loan terms during the year, increasing the weekly rider contribution to £35 for 50cc mopeds and £45 for 125cc mopeds;

initiated upfront moped issue charges for the first time; discontinued the gifting scheme as our main means of assisting people into work. Short-terms loans

took the place of gifting from October 2011, with new gifting issues stopping entirely from the 1 April 2012;

invested in a new approach to rider debt management, including use of a debt collection agency; due mainly to low issues and high fuel costs, agreed to stop providing moped loans across all of

Suffolk and Cambridgeshire. A new operational area for the charity restricts moped loans to Norfolk and areas north of Lowestoft, Bury St Edmunds, Huntingdon and Cambridge; Peterborough now falls outside our area of provision;

agreed to help renew the fleet through the sale of fleet bikes to riders, after a suitable and satisfactory loan period;

agreed to sell used fleet bikes to riders in the parts of Suffolk and Cambridgeshire where we no longer loan bikes; and

decided to focus promotions on colleges and Norfolk JCP offices in the year ahead.

Success with partners:

Grant supported schemes covering Peterborough City Council and the Fens continued during 2011/12, with 16 and 12 riders respectively.

The Norfolk County Council post-16 programme and leaving care schemes continued in 2011/12, resulting in us supporting 29 and 11 riders respectively.

Support from South Norfolk Council helped us support 21 people onto mopeds in South Norfolk.

A partnership with Victory Housing saw it helping 11 riders get onto a moped.

Grant support from the Trusthouse Charitable Trust and the Geoffrey Watling Charity helped us equip a new van to improve our support to riders through starting our mobile repair project.

Grant support from the Norfolk Community Foundation has allowed us to re-commence short term support to help people access training to help them get a job; helping 9 people search for work.

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Our impact on riders lives

It is important for readers of this report to appreciate the wider benefits resulting from our work. Independent research shows schemes like ours bring many benefits and provide good value for money. We save the exchequer money, reducing both unemployment benefits and housing support by helping people access work. We help improve riders’ (our beneficiaries) self-esteem, confidence, well-being and inclusion, road safety and work skills; and help them access better work opportunities. Our work helps bolster the sustainability of rural communities by reducing the pressure on people to move away to get to work. By staying in the local area, our beneficiaries support the local economy and help counter the demographic changes associated with an ageing rural population. They also help businesses have a wider pool of local people to draw on for their workforce. All in all Kickstart Norfolk delivers an impressive array of outcomes.

National success

The good work of Kickstart Norfolk staff, our overall impact, value for money and our good partnership working with Norfolk County Council, was recognised by us winning the national Regeneration and Renewal Award in December 2011 for Regenerating Rural Communities.

Benchmarking during the year shows Kickstart Norfolk remains the largest wheels to work scheme in the country and is the most self sustainable – relying less on grants than all other schemes. Benchmarking also shows our charges remain low compared with private sector moped loan provision.

Interweave

Our Future Jobs Fund (FJF) project started in October 2009 and closed in September 2011. This generated £966,000 of income supporting 160 starters onto the scheme, each of whom was offered 26 weeks of 25 hours per week paid work at the minimum pay rate for workers aged 21 and over, together with opportunities to improve their qualifications and gain skills and experience needed for future jobs.

The majority of people supported worked on market gardening, coppicing and gardening or landscaping activities but some worked as mechanics, in catering and in an office environment. Participants achieved a wide variety of qualifications certificates, including: 76 literacy and/or numeracy qualifications, 74 wood weaving, gardening or coppicing; 25 fork lift truck licences and 27 moped CBTs, 23 undertook work experience, 63 careers advice and 74 interview skills.

Of the 160 starters, 37 (23%) secured employment on leaving the scheme. Whilst this is not a high percentage, it needs to be seen against the level of educational attainment of the majority of those who took part, their social/family problems and the current difficult economic climate.

During the two years of the schemes existence it helped to provide a positive and valued contribution to the overall running costs of Kickstart Norfolk.

The Financial review

The year past

Uppermost this year has been renewing our organisational purpose and thinking about the best way to achieve our mission while making the necessary move towards a self-sustaining social enterprise model ofoperation. In short, we have reviewed what we are trying to do, what is the best way to do it and what sustainable income streams are necessary to secure this.

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Our whole approach to finance and income generation has had to change significantly during the past two years. In 2010/11, 78% of our income came from general grants and 22% from rider income, SLA and other contracts for services. During 2011/12 this changed to 46% general grants and 54% other sources. For 2012/13, we will receive 5% of our income from general grants and have to generate 95% from other, mainly moped rider derived, sources.

Against the backdrop of recession and rising unemployment the charitable company has had to balance maintaining its services against the sharp fall in income. During the year, income from certain contracts and riders was significantly below initial budget predictions. High rider defaults drastically reduced projected rider income. Contracts with Fens Adventures and work programme providers realised little of the £80,000 plus expected. An envisaged contract with Jobcentre Plus for £52,000 remains work in progress. Our hoped for partnerships with Suffolk and Cambridgeshire County Councils to initiate projects using Local Sustainable Transport Fund money failed to materialise.

This meant that as the year progressed we faced a considerable potential financial loss. To mitigate this we increased charges to riders, initiated upfront moped issues fees to cover the costs of compulsory bike training, safety clothing and equipment and moped issue, restructured how we worked and cut staff costs. We also sold surplus assets, reduced our premises overheads, strengthened our approach to rider debt control and secured additional one-off support from Norfolk County Council. The in year operational cash loss of £24,000for 2011/12 was therefore much lower than feared.

Kickstart Norfolk thanks Norfolk County Council for its support both financial and advisory during 2011/12; this helped the charitable company ease its cashflow challenges, re-think its operational approach and contribute fully to the Norfolk County Council Local Sustainable Transport Fund (LSTF) bid resubmission. Progress with some other partners’ also brought some financial rewards during 2011/12 (see success with partners above).

The year ahead

Budget plans for the year ahead (exclusive of any LSTF investment bid success) forecast a possible loss of £100,000 and includes maintaining our stock level and increasing the value of the fleet asset (provided the LSTF investment comes through). Given the unemployment situation and the uncertainty about moped issues Kickstart Norfolk will restructure again during 2012/13. The trustees will meet on the 27 June 2012 to agree cost reductions to reduce the 2012/13 operational loss to a manageable level.

If successful, the LSTF investment bid would provide £555,000 over three years to help Kickstart Norfolk make the full transition to sustainability. It would also help ease the financial pressures in our 2012/13 operational budget. The investment would be used to increase, update and improve the quality of the moped fleet; renew and improve operational equipment and IT systems, and improve its customer service and credit control.

Grants and contracts in the year ahead;

Only two general grants remain for 2012/13 with local councils, one for £16,232 with Norfolk County Council Passenger Transport Group and one for £5,000 with South Norfolk Council. All other council grants support has now ceased. The South Norfolk Council grant also ends in 2012/13, although we remain hopeful for a renewal.

Contracts to provide support for post 16 ride to learn and leaving care with Norfolk County Council remain, hopefully realising about £90,000 in 2012/13.

The contract with Seetec (a work programme prime provider) is up for review in June 2012 but promises little income from our 2011/12 experience. We will keep trying to establish a contract with Ingeus, the other local prime provider.

We will continue working with Jobcentre Plus to set up a contract or mainstream a grant to help fund the upfront costs of getting the unemployed onto a moped.

We will continue to seek grants for one-off purchases and initiatives for which we require funding, such as transport support for people to access work based training and/or for offenders to help rehabilitate.

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Reserves policy

The charitable company has reserve levels of £386,270. This is made up of restricted funds of £53,965 and unrestricted funds of £332,305.

The Council has examined the charitable company’s requirements for reserves in light of the main risks to the organisation. The Council has established a policy whereby we look to rebuild our reserves so the unrestricted funds not committed or invested in tangible fixed assets held by the charity would equate to one third of our operational spend, of which £50,000 should be ring fenced in our Scottish Widows bank account, as resources allow, by 2015 at the latest.

The Council has agreed to consider the extent to which activities should be curtailed to accord with the reserves policy as and when the issue arises, but its guiding principle will be in favour of protecting activity that promotes self sustainability of the charity and its objects.

As only two small annual grants remain and the trajectory of new moped issues is uncertain, the Council is aware of probable shortfalls in income and a continuing run down of stock and new boxed mopeds (assets), and the likely need to continue to curtail expenditure and reduce overheads further and draw on cash balances during the next two years.

The Council has a high level contingency plan should the need for significant downsizing or closure arise; italso has a mechanism in place to trigger the necessary discussions should liquid assets, defined as net current assets within the general fund, drop below £60,000. As at 31 March 2012 this balance was £208,531.

Investment policy

Aside from retaining a prudent amount in reserves most of the charitable company’s funds are expended each year. Having considered the options available, the Council has decided to spread risk by depositing its cash that it has available in:

two immediate access current accounts yielding 0% interest; 2 immediate access deposit accounts yielding 0.85% and 1.6% at 31 March 2012; and an immediate access deposit account yielding 0.05% at 31 March 2012.

From April 2012, as part of its partnership working, the Council has agreed, as funds allow, depositing £10,000 in a Norfolk Credit Union savings account yielding a probable 2-3%.

Future plans and priorities

Charities that rely on public funds have been hit hard in 2010-2012 and are likely to be hit again in the coming years. There will be no return to the period before the recession, when we enjoyed access to widespread statutory grant funded opportunities for both piloting new initiatives and rapid growth of provision. So while wewill continue to seek other funding opportunities linked to moped provision as they arise, our thinking has shifted from chasing grants to how we can earn sustainable income. This is in line with government policy to stop charities lurching from one statutory grant to the next.

Therefore, our main priority, for 2012/13, is to continue to focus on our core moped business as the strategic way forward for Kickstart to become financially self-sustaining by the end of 2014/15.

Organisational survival is not why Kickstart Norfolk (or other charities) should exist. Many charities facereduced income at exactly the time when their services are most needed. Kickstart Norfolk is no different. So we, like all charities, must continue to find ways to work smarter, and in different ways, to survive – for the benefit of those we seek to support. We need to continue to take hard business decisions and find ways for greater collaboration and more use of IT to help make us become a fitter and more flexible organisation in the long run.

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During 2012/13 our priorities will be:

securing the LSTF investment to grow and improve the quality and condition of the fleet, renew and improve equipment and IT systems and deliver better customer service and maintain effective credit control;

to sustain moped issues by:

o implementing a new promotional strategy with Norfolk County Council help, which includes a focus on colleges and Norfolk JCP office;

o establishing a contract with JobCentre Plus to mainstream financial support to get the unemployed onto mopeds to get to work;

o improving referrals from Seetec and Ingeus (work programme providers); o growing the partnership with Victory Housing and seeking partnership agreements with other

housing associations; and o exploring the use of incentives for riders to refer colleagues to Kickstart.

seeking to grow the income received from the SLA/contracts with Norfolk County Council; seeking to secure and grow the grant from South Norfolk Council; and supporting national wheels to work (W2W) activity to get DfT, DWP and Defra to find a solution to the

core funding of W2W schemes in order to secure adequate and lasting national coverage.

We will also continue to improve the way we work. This will involve, amongst other things:

maintaining our policy of reducing the number of riders who default on their payments; restructuring to reduce staff and overhead costs (as/if required) in line with projected moped issues

and income forecasts by the Autumn 2012; withdrawing from unit 9 Royson Way by the start of 2013; seek to initiate a mechanics apprenticeship scheme with Norfolk County Council support; improving our operational management data to better aid our decision making; getting better at listening to our riders (beneficiaries) and engaging them more directly in reviewing,

innovating and planning the next steps for Kickstart; initiating automated text reminders for riders to top up their oil; making use of volunteers for defined activities like promotions; moving to online, DD or chip and pin payments of rider contributions and making all banking online

wherever possible to cut costs and improve rider contact; working with our auditors and IT advisors to improve our use of SAGE, including a possible move to

VAT cash accounting and automating reporting from our IT systems to free up time to deliver more with less staff;

securing collaborative contracts for support services where viable e.g. HR provision through the Norfolk Community Transport Partnership; and

contingency budget and cash flow planning for a sustained lower moped issues profile for 2012/13.

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Statement of trustees’ responsibility

The trustees are responsible for preparing the annual report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

Law applicable to charitable companies requires the trustees to prepare financial statements for each financial year which give a true and fair view of the charitable company’s financial activities during the year and of its financial position at the end of the year. In preparing financial statements giving a true and fair view, the trustees should follow best practice and:

select suitable accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent; and prepare the 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 accounting records which disclose with reasonable accuracy the financial position of the charitable company and which enables them to ascertain the financial position of the charitable company and which enables them to ensure that the financial statements comply with Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditors

so far as the trustees are aware, there is no relevant audit information of which the auditors are unaware; and

they have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that the charitable company’s auditors are aware of that information.

Auditors

Price Bailey LLP were appointed as the charitable company’s auditors during the year.

This report has been prepared in accordance with Statement of Recommended Practice – Accounting and Reporting by Charities (issued in March 2005) and in accordance with the Companies Act 2006.

This report was approved by the board and signed on its behalf.

R PolleyChairman

Date:

KICKSTART NORFOLK

INDEPENDENT AUDITORS REPORT TO THEMEMBERS OF KICKSTART NORFOLK

We have audited the financial statements of Kickstart Norfolk for the year ended 31 March 2012 which comprise a 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 financial reporting standards 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 auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its 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 Trustees’ Responsibilities Statement set out on pages 1 to 10, 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 Ethical Standards for Auditors.

Scope of 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 charitable company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements.

Opinion on financial statements

In our opinion the financial statements:

give a true and fair view of the state of the charitable company’s affairs as at 31 March 2012, 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’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

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INDEPENDENT AUDITORS REPORT TO THEMEMBERS OF KICKSTART NORFOLK (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’ Annual Report.

Daren Moore FCCA (Senior Statutory Auditor)

Chartered AccountantsStatutory Auditors

20 Central AvenueSt Andrews Business ParkThorpe St AndrewNorwichNR7 0HR

Date:

KICKSTART NORFOLK

STATEMENT OF FINANCIAL ACTIVITIESFOR THE YEAR ENDED 31 MARCH 2012

Restricted Unrestricted 31 March 31 MarchNotes funds funds 2012 2011

£ £ £ £INCOMING RESOURCES

Incoming resources from generated funds Investment income - 797 797 1,497 Activities for generating funds - 6,373 6,373 7,937 Incoming resources from charitable activities 2a 284,650 464,099 748,749 828,963

________ ________ ________ ________

TOTAL INCOMING RESOURCES 284,650 471,269 755,919 838,397________ ________ ________ ________

RESOURCES EXPENDED

Costs of generating funds 2b - 3,928 3,928 4,755Charitable activities 2c 288,927 442,918 731,845 1,027,097Governance costs 2b - 5,500 5,500 5,000

________ ________ ________ ________

TOTAL RESOURCES EXPENDED 288,927 452,346 741,273 1,036,852________ ________ ________ ________

NET MOVEMENTS OF FUNDS IN YEAR (4,277) 18,923 14,646 (198,455)

Total funds brought forward 53,486 284,233 337,719 536,174Gain on revaluation of fixed assets for charity’s own use - 33,905 33,905 -Transfers 4,756 (4,756) - -

________ ________ ________ ________

TOTAL FUNDS CARRIED FORWARD 53,965 332,305 386,270 337,719

The statement of financial activities is equivalent to an income and expenditure account as permitted by the Companies Act 2006. It relates entirely to the charitable company’s continuing activities, and incorporates the statement of total recognised gains and losses required by Financial Reporting Standard No 3.

The notes on pages 15 to 24 form part of these financial statements.

KICKSTART NORFOLKCOMPANY NUMBER 4873541

BALANCE SHEETAS AT 31 MARCH 2012

Notes 31 March 2012 31 March 2011£ £ £ £

FIXED ASSETS

Tangible assets 8 178,909 26,193

CURRENT ASSETS

Stocks 24,042 129,185Debtors 9 80,308 135,292Cash at bank and in hand 139,426 189,624

_______ _______

243,776 454,101CREDITORS: AMOUNTS FALLINGDUE WITHIN ONE YEAR 10 (36,415) (142,575)

_______ _______

NET CURRENT ASSETS 207,361 311,526_______ _______

TOTAL ASSETS 386,270 337,719

RESTRICTED FUNDS 5b 53,965 53,486

UNRESTRICTED FUNDS 5a

General 286,807 252,662Designated 22,895 31,571Revaluation reserve 22,603 -

_______ _______

386,270 337,719

The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies (effective April 2008).

The financial statements were approved by the trustees on and are signed on its behalf by

R Polley A JonesChairman Treasurer

The notes on pages 15 to 24 form part of these financial statements.

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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2012

1 ACCOUNTING POLICIES

1.1 BASIS OF ACCOUNTING

The financial statements are prepared under the historical cost convention and are drawn up in accordance with the Statement of Recommended Practice for Accounting and Reporting by Charities (SORP 2005), applicable accounting standards and the Companies Act 2006.

1.2 TANGIBLE FIXED ASSETS

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided on all assets on the straight line method to write off the cost of the assets, less their estimated residual value, over their estimated useful lives on the following basis;

Motor vehicles - 3 years straight lineEquipment - 2 to 3 years straight line

1.3 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 subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal.

1.4 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 not 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 charitable trading activities are accounted for when earned.

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.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)FOR THE YEAR ENDED 31 MARCH 2012

1 ACCOUNTING POLICIES (CONTINUED)

1.5 RESOURCES EXPENDED

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates:

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

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 eg floor areas, per capita or estimated usage as set out in the notes to the accounts.

1.6 CASH FLOW STATEMENT

A cash flow statement is not included as part of these financial statements in view of the charitable company falling outside the scope of Financial Reporting Standard No 1.

1.7 TAXATION

The company is a registered charity and qualifies for relief from corporation tax under Taxes Act 1988, Section 505. Consequently no taxation liability arises.

All other operating leases and the annual rentals are charged to the profit and loss account.

1.8 PENSION COSTS

The charity operates a defined contributions pension scheme. Contributions are charged in the statement of financial activities as they become payable in accordance with the rules of the scheme.

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2a INCOMING RESOURCES FROM CHARITABLE ACTIVITIES

31 March 31 MarchRestricted Unrestricted 2012 2011

£ £ £ £Revenue grants received Norfolk County Council - 54,058 54,058 - Neet Trick – Revenue - - - 15,000 Post 16 - 52,978 52,978 66,309 Interweave 1 - - - 55,350 Interweave 2 - - - 228,000 Interweave 3 21,450 - 21,450 202,950 Interweave 4 203,250 - 203,250 3,450 Fens Adventures 36,450 - 36,450 - Trusthouse Charitable Foundation 10,000 - 10,000 - Geoffrey Watling 2,000 - 2,000 - Ex Offenders 1,500 - 1,500 - Victory Housing 5,000 - 5,000 - South Norfolk Council - 5,000 5,000 -

Norfolk Community Foundation 5,000 - 5,000 - Other revenue grants received - 250 250 -

Moped sales and repairs - 21,119 21,119 -Rider contributions - 237,051 237,051 171,124Sundry income received - 70,628 70,628 59,208SLA Income - 23,015 23,015 27,572

________ ________ ________ ________

284,650 464,099 748,749 828,963

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2b ANALYSIS OF RESOURCES EXPENDED

RelievingCosts of poverty &

generating unemploy- 31 March 31 Marchfunds ment Governance 2012 2011

£ £ £ £ £

Add: opening moped stock - 91,890 - 91,890 304,961Moped purchases - - - - 63,941Stock transferred to fixed assets - (91,890) - (91,890) -Less: closing moped stock - - - - (91,890)CBT training fees - 17,324 - 17,324 31,066Driver items - 6,550 - 6,550 12,565Wages and contract work - 383,604 - 383,604 486,729Repairs and servicing to vehicles - 12,592 - 12,592 11,967Vehicle licences - 14,687 - 14,687 688Vehicle insurance - 33,765 - 33,765 24,735Vehicle depreciation - 12,733 - 12,733 19,233Moped depreciation - 83,627 - 83,627 -Profit on disposal - (3,902) - (3,902) -Cost of safety equipment sold 3,928 - - 3,928 4,755Post 16 costs - 1,861 - 1,861 10,774Recruitment and training - 11,994 - 11,994 -Employers pension - 11,202 - 11,202 5,618Rent and insurance - 21,559 - 21,559 37,442Light and heat - 6,293 - 6,293 4,417Travelling costs - 22,732 - 22,732 23,636Telephone and post - 7,377 - 7,377 6,587Office stationery, equipment and hire - 38,516 - 38,516 32,511Publicity - 2,334 - 2,334 -Fees - 1,129 - 1,129 13,527Audit and accountancy - - 5,500 5,500 5,000Bank charges - 4,452 - 4,452 4,022Sundry - 4,535 - 4,535 3,330Depreciation of equipment - 2,071 - 2,071 3,109Bad debts written off - 21,210 - 21,210 6,885Bad debt provision - 9,600 - 9,600 7,000Clawback provision - 4,000 - 4,000 4,244

_______ _______ _______ _______ _______

3,928 731,845 5,500 741,273 1,036,852

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2c ANALYSIS OF CHARITABLE EXPENDITURE

31 March 31 MarchRestricted Unrestricted 2012 2011

£ £ £ £

Add: opening moped stock 91,890 - 91,890 304,961Moped purchases - - - 63,941Stock transferred to fixed assets (91,890) - (91,890) -Less: closing moped stock - - - (91,890)CBT training fees 1,672 15,652 17,324 31,066Driver items 2,663 3,887 6,550 12,565Wages and contract work 209,447 174,157 383,604 486,729Repairs and servicing to vehicles 5,139 7,453 12,592 11,967Vehicle licences 11 14,676 14,687 688Vehicle insurance 528 33,237 33,765 24,735Vehicle depreciation 6,567 6,166 12,733 19,233Moped depreciation 22,284 61,343 83,627 -Profit on disposal of assets (900) (3,002) (3,902) -Recruitment and training 5,572 6,422 11,994 -Employers pension - 11,202 11,202 5,618Rent and insurance - 21,559 21,559 37,442Light and heat 1,310 4,983 6,293 4,417Travelling costs 6,313 16,419 22,732 23,636Telephone and post 245 7,132 7,377 6,587Office stationery, equipment and hire 19,496 19,020 38,516 32,511Publicity 1,130 1,204 2,334 -Fees 1,129 - 1,129 13,527Bank charges - 4,452 4,452 4,022Sundry - 4,535 4,535 3,330Depreciation of equipment 2,071 - 2,071 3,109Bad debts written off 250 20,960 21,210 6,885Bad debt provision - 9,600 9,600 7,000Post 16 costs - 1,861 1,861 10,774Clawback provision 4,000 - 4,000 4,244

_______ _______ _______ _______

288,927 442,918 731,845 1,027,097

3 MOVEMENT IN FUNDSTotal Total

Restricted Unrestricted 31 March 31 Marchfunds funds 2012 2011

£ £ £ £

Balance as at 1 April 2011 53,486 284,233 337,719 536,174(Decrease)/Increase in funds for the year (4,277) 18,923 14,646 (198,455)Transfers between funds 4,756 (4,756) - -Revaluation of fixed assets - 33,905 33,905 -

_______ _______ _______ _______

Balance as at 31 March 2012 53,965 332,905 386,270 337,719

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4 ANALYSIS OF NET ASSETS BETWEEN FUNDSTotal Total

Restricted Unrestricted 31 March 31 Marchfunds funds 2012 2011

£ £ £ £Fund balances as at 31 March 2012 are represented by:

Tangible fixed assets 55,135 123,774 178,909 26,193Current assets 15,629 228,147 243,776 454,101Current liabilities (16,799) (19,616) (36,415) (142,575)

_______ _______ _______ _______

53,965 332,305 386,270 337,719

5a UNRESTRICTED FUNDS OF THE CHARITYTotal Total

General Revaluation Designated 31 March 31 Marchfunds reserve funds 2012 2011

£ £ £ £ £

Balance brought forward 252,662 - 31,571 284,233 182,689Movement in funds in the year 38,901 (11,302) (8,676) 18,923 125,121Transfer (to)/from restricted funds (4,756) - - (4,756) (23,577)Revaluation of fixed assets - 33,905 - 33,905 -

_______ _______ _______ _______ _______

Balances carried forward 286,807 22,603 22,895 332,305 284,233

The designated funds shown above have been designated by the charitable company from the unrestricted income. Of this £7,325 is to cover the cost of redundancy of employees once the charitable projects have been completed and £5,000 is to cover the cost of bringing premises back up to an acceptable standard once the lease ends and the charitable projects complete. In the event of the winding up of the charity lease commitments of £10,570 would remain.

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5b RESTRICTED FUNDS OF THE CHARITY

Balance at Balance at1 April Incoming Outgoing 31 March

2011 resources resources Transfers 2012£ £ £ £ £

Investing in Communities Peterborough 40,183 - (14,689) (2,658) 22,836Interweave 1 5,171 - (5,171) - -Interweave 3 9,662 21,450 (44,144) 3,782 (9,250)Interweave 4 (1,530) 203,250 (203,797) 2,077 -Fens Adventures - 36,450 (13,705) 1,555 24,300Trusthouse Charitable Foundation - 10,000 (3,333) - 6,667Geoffrey Watling - 2,000 (667) - 1,333Ex-Offenders - 1,500 - - 1,500Norfolk Community Foundation - 5,000 (1,338) - 3,662Victory Housing - 5,000 (2,083) - 2,917

_______ _______ _______ _______ _______

53,486 284,650 (288,927) 4,756 53,965

Peterborough Mopeds is a moped gifting scheme funded by Peterborough Council’s Investing in Communities programme. The balance on this fund represents the net book value of fixed assets and mopeds purchased with the grant.

The Interweave projects are financed through the Government’s Future Jobs Fund. Four six-month phases have been approved, each providing for the employment of a minimum of 40 JSA claimants nominated by Jobcentre Plus. The project is currently based at an agricultural holding in Wood Norton. Winter activities have included woodland coppicing and hurdle making. Summer activities will see hurdle making and market gardening.

Fens adventurers is an East of England Rural Development Programme grant to pump prime the loan of mopeds in the Fens, commencing March 2011 through to 2017.

Trusthouse Charitable Foundation and the Geoffrey Watling Charity provided funding to help purchase our new mobile moped repair and issue van, which was on the road in April 2012.

The Ex-Offenders project, supported directly by the Norfolk Community Foundation, is helping support ex-offenders access work opportunities by providing moped training, equipment and loan of a moped. The scheme runs throughout 2012.

The Norfolk Community Foundation, facilitated funding from May Gurney, to provide support to allow up to 10 people to access work based training over an 8-week period, starting late 2011 and running throughout 2012.

Victory Housing help support their tenants through subsidised moped hire or in some cases moped training and equipment, to get to work. The scheme started in 2011 and continues throughout 2012.

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6a EMPLOYEES

No employees earned £60,000 pa or more.

The trustees receive no emoluments or expenses during the year.

The number of employees analysed by function was:31 March 1 April Average

2012 2011 2011

Core administrative 6 5 6Workshop technicians 2 1 1Driver 1 2 -Future Jobs Fund supervisor - 2 2Future Jobs Fund beneficiaries - 68 55

_______ _______ _______

9 78 64

Employee numbers have been as at the beginning and end of the year. An average has not been provided as this would not show a true reflection due to the changes in the charitable company’s activities, as detailed in the Trustees report.

£ £The costs incurred during the year were:

Wages and salaries 362,631 470,479Social security costs 20,973 16,250Other pension costs 11,202 5,618

_______ _______

394,806 492,347

7 OPERATING SURPLUS2012 2011

£ £

The operating surplus is stated after charging:

Depreciation of tangible owned assets 98,431 22,342Auditors’ remuneration 5,500 5,000

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8 FIXED ASSETSMopeds Vans Equipment Total

£ £ £ £Cost or valuation

At 1 April 2011 - 74,638 23,931 98,569Additions 221,085 13,635 - 234,720Disposals (4,110) (50,075) - (54,185)Revaluations (see below) 33,905 - - 33,905

_______ _______ _______ _______

At 31 March 2012 250,880 38,198 23,931 313,009

Depreciation:

At 1 April 2011 - 50,516 21,860 72,376Eliminated on disposals - (36,707) - (36,707)Charge for the year 83,627 12,733 2,071 98,431

_______ _______ _______ _______

At 31 March 2012 83,627 26,542 23,931 134,100

Net book value:

At 31 March 2012 167,253 11,656 - 178,909

At 31 March 2011 - 24,122 2,071 26,193

Mopeds include 88 units acquired at £Nil cost. These were returned from the gifting scheme run in previous years, at which time they were expensed in full. They have been revalued based on the Trustees estimate of market value at the date they were returned back to the moped fleet.

Included within additions are mopeds with a cost of £91,890, which have been transferred from opening stock. These were previously treated as trading assets, however following cessation of the gifting scheme they have been transferred to the loan fleet and reclassified as fixed assets.

9 DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR2012 2011

£ £

Trade debtors 58,006 93,650Prepayments and accrued income 22,043 26,158VAT - 15,484Other debtors 259 -

_______ _______

80,308 135,292

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10 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR2012 2011

£ £

Trade creditors 1,624 62,623Taxation and social security 14,393 5,180Pension control account - 10,624Accruals and deferred income 4,500 52,250Provision for clawback of restricted funds 15,898 11,898

_______ _______

36,415 142,575

11 CORPORATE STATUS

The company is a registered charity (no 1099931) incorporated under the Companies Acts and limited by guarantee.

12 PENSION COSTS

The charitable company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charitable company in an independently administered fund. The pension cost charge of £11,202 (2011 - £5,618) represents contributions payable by the charitable company to the fund. Contributions of £Nil (2011 - £10,624) were accrued at the year end.

13 FINANCIAL COMMITMENTS

At 31 March 2012 the charitable company was committed to making payments under non-cancellable operating leases as follows:

2012 2011£ £

Land and buildings

Operating leases which expire:Within one year 10,570 10,462

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