THE FOCUS FOUNDATION

Executive Summary

The Focus Foundation is a financially sound charity with strong liquidity and growing reserves, supported by a robust operational model and positive regulatory assessments. While governance concentration and dependency on certain funding streams warrant attention, overall compliance and risk management frameworks are adequate. Continued monitoring of funding diversification and governance practices is recommended to sustain stability.

THE FOCUS FOUNDATION - Analysis Report

Company Number: 13131170

Analysis Date: 2025-07-20 13:41 UTC

1. Risk Rating: LOW
   The Focus Foundation demonstrates a strong financial position with significant growth in net assets and reserves. The charity maintains adequate liquidity and has no overdue filings or regulatory concerns. Its operational model is well established, with positive audit opinions and good governance practices evident.

2. Key Concerns:

• Dependency on Donations and Local Authority Funding: A large proportion of income comes from unrestricted donations and local authority service contracts, which may be subject to policy or funding changes.
• Governance and Trustee Training: The absence of formal induction or training policies for trustees could pose risks in board effectiveness and compliance oversight.
• Concentration of Control: One individual holds 75-100% voting rights and the power to appoint/remove directors, which may limit governance independence.

3. Positive Indicators:

• Strong Financial Health: Net current assets improved markedly from £8,927 in 2023 to £397,899 in 2024, with cash balances rising substantially, indicating improved liquidity.
• Unqualified Audit Opinion & Going Concern: The latest accounts were audited with a clean report, and the trustees confirmed the appropriateness of the going concern assumption.
• Operational Stability & Growth: The charity supports 49 beneficiaries with increasing income and has been awarded an Outstanding rating by the Care Quality Commission, reflecting service quality.
• Regulatory Compliance: All statutory filings are up to date with no overdue accounts or confirmation statements.
• Clear Risk Management: Trustees actively review risks and maintain policies to mitigate operational and financial risks.

4. Due Diligence Notes:

• Review the diversification and sustainability of funding sources, including any contractual dependencies on Local Authorities.
• Assess governance structures, particularly the implications of concentrated control and the absence of trustee training programs.
• Examine related party transactions disclosed in the notes to ensure no conflicts of interest.
• Monitor future fundraising plans and reserve policies to confirm continued financial stability.
• Verify the implementation status of Care Quality Commission recommendations and any operational risks flagged.