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2020-08-31-accounts

Community Links Trust Limited Report and financial statements For the year ended 31 August 2020

Company number: 2661182 Charity number: 1018517

Community Links Trust Limited

Contents

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Company no. 2661182
As at 31 August 2020
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Community Links Trust Limited

Company no. 2661182

Reference and administrative details

As at 31 August 2020

Company number 2661182 Charity number 1018517 Registered office and operational address 105 Barking Road London E16 4HQ Trustees The Trustees, who are also directors under company law, and who served during the period and up to the date of this report, were as follows: Gillian Budd (resigned 31 January 2021) Radhika Bynon (resigned 25 November 2020) Chris Wright Alan Lazarus - Chair (resigned 31 January 2021) Javid Canteenwala - Treasurer (resigned 31 January 2021) Pria Rai (resigned 31 January 2021) Paul Williams (resigned 31 January 2021) Elaine Bailey (resigned 31 January 2021) Carl Cramer (resigned 8 June 2020) Chibweka Kavindele (appointed 1 February 2021) Nigel Richards (appointed 1 February 2021) Company Secretary Nigel Richards Principal Staff Chibweka Kavindele (Director) - to 31 January 2021 Venu Dhupa (Director of Action and Advocacy) - to 31 January 2021 Bankers The Co-operative Bank Barclays Bank 70-80 Cornhill Level 27, I Churchill Place London London EC3V 3RD E14 5HP Auditor Moore Kingston Smith LLP Devonshire House 60 Goswell Road London EC1M 7AD

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Community Links Trust Limited Trustees' annual report

For the year ended 31 August 2020

The Trustees present their report and the audited financial statements for the year ended 31 August 2020.

Reference and administrative details set out on page 1 form part of this report. The financial statements comply with current statutory requirements, the Memorandum of Association and by Charities (SORP 2015.)

Structure, governance and management

The organisation is a charitable company limited by guarantee, incorporated on 7 November 1991 and registered as a Charity on 12 March 1993. The company was established under a memorandum which set out the objects and powers of the charitable company and is governed under its Articles of Association. Catch22 Charity Limited is the sole member of Community Links and Chris Wright, Chief Executive of Catch22 is on the Board of Trustees of Community Links. The principal members of staff for the year ending 31st August 2020 were Chi Kavindele and Venu Dhupa (both Directors).

Through becoming part of the Catch22 group, Community Links has access to a range of support services and a strategic framework to operate within. Community Links simultaneously remains close to its community roots, retains its charity registration, appoints its lead officer/s and sets its own values and strategic direction. The principal objects of the charitable company (Community Links) as set out in its Memorandum of Association are to:

Promote any charitable purpose for the benefit of the community;

Provide such information, advice and assistance as is charitable, to groups and individuals for the public benefit;

Promote, assist and co-ordinate voluntary activities for the benefit of the community (whether on the part of individuals or the organisation) in any part of England and Wales with particular reference to health, housing, safety, education, training, rehabilitation and recreation of the sections of community in need of assistance, and to provide care and facilities connected with any of those matters;

Promote the efficient use of the resources provided voluntarily or by central or local government for the benefit of the community (or any section or section thereof) in connection with the said or similar matters; and

Undertake or support research into the allocation and use of resources with a view to ensuring that the maximum benefit to the community is obtained therefrom.

On 1 February 2021, the trustees agreed that, in the best interests of the complementary charitable objects of Community Links Trust Limited and Catch22 Charity Limited and the integrated operations of the Catch22 group, for the public benefit, the charitable undertaking of Community Links Trust should be transferred, as a going concern, from Community Links Trust to Catch22 Charity Limited. All assets and trade of Community Links Trust were transferred to Catch22 Charity on this date and Community Links Trust Limited ceased to trade as a separate company from 1 February 2021.The merger will bring tangible benefits to both organisations and ultimately benefit the 60,000 service users we support each year, in Newham, across Greater London, and further afield through our policy work. We will recognise the benefits in three broad areas:

environment, in which many charities of all sizes face an uncertain future.

and staff.

as will our commitment (through our mission) to the community and to sharing local lessons to influence wider policy. There will still be a ring-fenced Community Links team within Catch22 and we will also continue to fundraise for much needed funds to carry on our important work. Our activities will be overseen by an Advisory Committee tasked with safeguarding the legacy and future of Community Links. The Committee will also help ensure local knowledge, experience and expertise continues to drive what we do.

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Community Links Trust Limited Trustees' annual report

For the year ended 31 August 2020

Board of Trustees

The Board is recruited in line with good practice within the Charities sector, currently via an application process or to maintain an appropriate balance, and by nomination by Catch22. Appointments to the Board are recommended by the Board of Trustees in the first instance and approved by the Catch22 Board. The Board endeavours to ensure that its membership covers the range and experience and skills that are required and that the backgrounds of the members of

such Trustees are required to act in the best interests of the organisation.

The Board retained one standing Committee, the Resources Committee and a subsidiary Board for the Trading Company. The Resources Committee was chaired by Javid Canteenwala (Treasurer). The Board of the Trading Company, Community Links Trading Limited is now chaired by Chris Wright (Trustee.) The Trading Board may co-opt members.

Day-to-day management of the Charity is delegated to Director/s and other employees who operated within defined terms of reference and delegated authorities. The Co-Directors of the Charity, Chi Kavindele (full-time) and Venu Dhupa (part-time), were in post for the full financial year.

The Resources Committee recommend to the Board the salary of the Director / Accountable Officer and approve the overall salaries budget with regard to remuneration. This is based on benchmarking with similar organisations within the sector. The Resources Committee approves the cost-of-living increases for all staff, in line with the annual budget. The annual budget is also approved by the Community Links Board before being further approved by the Catch22 Board.

Ordinarily, performance against strategic and financial targets are monitored through The Resources Committee using a range of tools, including a dashboard, income generation report and monthly management accounts. However, due to the uncertainty caused by Covid-19, between March 2020 and 31st August 2020 the Resources Committee meetings were replaced by full Board meetings at which performance and financial targets were reviewed more frequently. Accordingly, the Resources Committee met in September, December 2019 and January 2020 and the Board met in October 2019, February, April, May, June and July 2020.

Performance is also reviewed by the Senior Management Team and shared with Managers.

The charity keeps a strategic risk register which is reviewed at the Resources Committee and by Trustees. Policies are reviewed and approved on a rolling basis, which ensures that key policies are reviewed no less frequently than every two years.

Investments

Community Links has one wholly-owned subsidiary company, Community Links Trading Limited. The Charity owns one ordinary £1 share representing 100% of the share capital of the company. This subsidiary carries out trading activities in order to generate funds which are then gift-aided to Community Links Trust Limited.

Community Links Trust holds 5000 ordinary £1 shares in Allia Ltd, which were purchased on 3 September 2009. Allia Ltd is a community benefit society registered with the Financial Conduct Authority. The investment was made in order to access fundraising support provided by that company.

(formerly Shift Design Community Interest Company). These shares entitled the charity to appoint one Director to the Board of Directors of Historypin.

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Community Links Trust Limited Trustees' annual report

For the year ended 31 August 2020

Achievements and performance in the delivery of public benefit

beneficiaries are individuals or communities that are socially and economically disadvantaged. The Charity conducts activities in the following areas identified in the act.

consequences of poverty.

and legal support, housing support, and support to deal with debt and other disadvantage.

undertaken to support the community. For example, to reduce health inequalities, build emotional resilience and reduce hunger.

move closer to the point of employment, secure employment and maintain employment. challenges of serious violence.

enhance life experience and provide new opportunities.

this results in a number of programmes in different social settings, including schools and

causes rather than its consequences. It is not limited to prevention: it is also a positive approach that enables people to fulfil their potential at every life stage by building resourceful communities that collectively overcome challenges and ultimately flourish. Encouraging Agency is a way of operating that involves the communities we work with, builds capacity, increases understanding in the social systems and civic systems that affect lives in the neighbourhood and crucially promotes empowerment to engage and affect these, and advocates in line with the principle

policies that prevent people being trapped in poverty and promote the case for early action in system change.

Through two hubs (at Rokeby and Asta) and its head-quarters at 105 Barking Road, the Charity encourages participation in civic life and wider civil society.

The work is for the relief of those in need or suffering inequality because of age, ill-health, disability, financial hardship or other disadvantage, this manifests in practical support programmes.

The advancement of health or saving of lives is primarily delivered through a wide range of community-based health activities that encourage healthy lifestyles, alongside a focused

The youth, employability and community programmes encourage the elimination of barriers to advancements via skills development, knowledge transfer, confidence building, raising of aspirations and cultural understanding.

Trading activities that are directly aimed at producing or enabling a clear social or public benefit

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Community Links Trust Limited Trustees' annual report

For the year ended 31 August 2020

Overview of specific activities and achievements in 2019/20

The Trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Charity's aims and objectives and in planning its future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives that have been set.

The Trustees review aims and objectives each year. This report looks at the achievements within the 12 months to 31 August 2020. These achievements have been regularly reported to Trustees and activities remained focused on its stated purposes.

During the year, the Trustees achieved their ambitions in line with the third year of the

The following selected statistics/achievements demonstrate our impact:

975 young people participated in our mental health peer to peer mentoring programme. We called 30,921 patients living across London to encourage uptake of bowel and breast cancer screening. Our Create Your Future programme helped 728 black and minority ethnic women move closer to the workplace.

Our Advice Team assisted more than 3,000 people.

We have awarded 17 community grants to local residents who deliver innovative and

sustainable projects, with our last report noting over 1,900 people taking part in the programme. The value of the grants was £27,669.

Our Help Through Crisis programme helped 142 people facing severe difficulties and 94% of service users, surveyed, reported that they were no longer in crisis at the end of the intervention and improved their life satisfaction perception.

Communities. This Policy Paper, produced as a direct result of a roundtable event, is in line with our Deep Value Relationship approach which we have followed since 2011. The approach argues that creating strong relationships in services such as health and education, as well as where people are facing complex problems, leads to better outcomes.

delivery and mobilised volunteers, ensuring we continued to safely support people in crisis. Many of our services saw a record level of demand during lockdown. During the peak of the pandemic we saw:

o Requests for advice and guidance increase by 23%

o Homelessness related cases increase by 316%

o Demand for our Emergency Food Support Service double

o Hardship support requests, such as food voucher enquiries, increase by 400%.

o A local 7-day-a-week Covid-19 telephone advice helpline, in partnership with the local authority, who recognised our position in the borough, capacity to mobilise at pace and ability to refer to a broad partner network.

o A homelessness prevention service, supporting people at risk of eviction or homelessness with advice, guidance and specialist support, in collaboration with Crisis, the national homelessness charity.

o A mental health and wellbeing service, providing peer-support and wellbeing activities with the support of mental health charity Mind.

o A Violence Prevention Pilot for at-risk young people and their families, providing peer support

Fund.

o A remote Music Therapy Pilot for young people in mental health distress.

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Community Links Trust Limited Trustees' annual report

For the year ended 31 August 2020

Volunteers

come from the following different groups: local people who want to help deliver services; young people who become mentors and role models for peers; corporate employees involved in volunteering days; individuals who assist us to run our services as part of their own learning and development programmes; people with specialist skills providing expert support on a pro-bono basis. The volunteers deliver a range of support and in return the Charity offers volunteers opportunities for personal growth, an ability to contribute and give back or develop new skills

Securing volunteers and co-producing programmes and services will become more important to our capacity as we drive programme innovation. We are grateful to all our volunteers for their contributions.

Employees

The Charity is a London Living Wage Employer and has supported TELCO in their recent campaigning work. The Charity has a staff development plan with resources set aside for investment in the professional development of staff. This includes development goals set for each member of staff within the appraisal system. Learning and development opportunities that programme. Mandatory training covers the following safeguarding, equality and diversity, health and safety and GDPR/ data protection.

Every year there is an anonymous staff survey. This year the staff survey results show:

The Charity is an equal opportunities employer and gives full and fair consideration of applications for employment made by disabled persons. Policies also include the training, development and promotion of disabled persons, and the ongoing employment and training of employees who become disabled whilst employed.

The Charity has a commitment and system to provide staff with the information they need and to consult them on decisions that affect their interests. This includes, team and organisation collective learning opportunities and away days, managers meetings, programme development meetings and group communication when required.

Most of our support services are now provided by Catch22 through a service level agreement.

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Community Links Trust Limited Trustees' annual report

For the year ended 31 August 2020

Fundraising and Policies

We have continued to maintain relationships with a range of key stakeholders including local government, health commissioners, private companies, charitable trusts, foundations and individual donors. The Charity continues to prioritise these important partnerships, from a range of sectors, in a challenging fundraising climate, because without our many supporters we would not be able to continue our important work. A full list of stakeholders that provided us with funds for our work is listed below in alphabetical order

3i The D & P Trust The Deborah Day Theatre School Trust Catch22 The Department of Health The Four Winds Trust Clifford Chance The Good Things Foundation D G Cox Charitable Trust The Grocers Charity EBM Charitable Trust The Hadley Trust Fidelity UK The Jack Petchey Foundation Hogan Lovells LLP The London Borough of Newham Janus Henderson Investors The Mercers Company Tate & Lyle Sugars Limited The Woodroffe Benton Foundation The B&J Lloyd Family Charitable Trust VALERO National Lottery Communities Fund Virgin Money Giving The City Bridge Trust Plus several individual donors

The Charity does not engage in direct marketing and fundraising with members of the public, however, if donations are made they are accepted.

The Charity is registered with the Fundraising Regulator and adheres to its code of fundraising practice.

Community Links Trust will hold in relation to those we engage with and how this data will be used.

on the website.

The Charity received no complaints about its fundraising activities during the year. The Charity received one other complaint during the period which was satisfactorily resolved.

During the period the Charity benefited from expert support on a pro-bono basis from 6 companies or individuals.

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Community Links Trust Limited Trustees' annual report

For the year ended 31 August 2020

Financial Review, Income and Expenditure and Reserves

The financial and operational context in which the Charity operates remained demanding. Ensuring a strong future income generation pipeline is a key priority for the organisation, particularly with regard to a project to refurbish the building which is under development.

have put in place a range of mechanisms to control and manage expenditure and to responsibly manage risk.

Total income for the year to 31 August 2020 was £2.364m, compared with £3.404m for the year to 31 August 2019. Total expenditure for the year to 31 August 2020 was £2.098m compared with £3.121m for the year to 31 August 2019.

The Resources Committee, on behalf of the Board of Trustees, conducts an annual review of the level of unrestricted reserves in the general fund. The Trustees target is to build unrestricted funds to cover income risks (25% of budgeted unrestricted income) and also to build two

future development of the Charity.

In considering the target for reserves, the Trustees exclude the value of restricted funds, which are not available for general expenditure, and those tied up in fixed assets used in the delivery of annual budgeted unrestricted expenditure.

£1.167m was restricted (2019: £1.189m) and £2.271m was unrestricted (2018: £1.985m), including £0.051m (2019: £0.055m) of Designated Reserves (representing fixed assets) and a Revaluation Reserve of £0.873m. Therefore, of the unrestricted amount £1.347m (2019: £1.047m) is deemed to be free reserves, this is £0.636m over the minimum target.

Risk management

The Trustees have in place a robust risk management process. The process identifies the types of risk that the Charity faces, priorities them in terms of likelihood of occurrence and potential impact, identifies the means of managing these risks and monitors how the mitigations are managed. Development and review of risk management arrangements are the responsibility of the Resources Committee and are reviewed every six months. The strategic risk register is also presented to Trustees. All operational activity is risk mapped regularly and on a quarterly basis is presented in a Red, Amber, Green rating to the Resources Committee.

The key organisational risks and key mitigations are divided into categories, the main risks in each category are drawn to the attention of the Board and scored for impact and likelihood before and after mitigations are applied. The categories are as follows: External, Governance, Compliance, Facilities, Financial and Organisational.

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Community Links Trust Limited

Trustees' annual report

For the year ended 31 August 2020

The Board have paid particular attention to taking a forward view of strategy and to clarify and realise the potential of the strategic relationship with Catch22. There has been a strong focus on ensuring that the three hubs (Barking Road, Rokeby and Asta) are well used and that that all pressing maintenance issues have been met in line with health and safety requirements. There has been an emphasis on administrative systems to monitor risks to finances, contracting, support services and compliance. During the organisational review all staff were consulted to minimise impact on the operations of unplanned departures. Going forward, the Board has challenged itself to address diversity in the fullest sense.

Plans for the future

groups of people who support each other to overcome problems, prevent them from occurring again and to help each other to thrive and achieve goals. This was due to come to an end on 31st August 2020. However, given the uncertainty and disruption caused by Covid 19, in July 2020 the Board decided to suspend the development of a new strategy and instead instigate a One Year Stabilisation plan to 31st August 2021. The plan has 5 key objectives;

1. Ensure Community Links is financially stable.

  1. Focus on three sectors for sustainable business growth: Youth, Health and Advice.

our Programmes in Newham, East London and key London Boroughs.

  1. Convert the Morgue into a Recording Studio, including a small flexible space for other creative work.

  2. Make significant steps toward further integration with Catch22.

In addition to focusing on the 5 objectives, the advisory board will aim to develop a new threeyear plan, to take us to 2023 as part of Catch22.

purpose and making the most of the place in which they live. From our base in East London, we apply the learning from our local work to influence and achieve positive change both locally and nationally.

not symptoms, find solutions not palliatives; to recognise that we all need to give as well as to receive; to appreciate that those who experience a problem understand it best and to help the smaller voices to be heard; to act local but think global, teach but never stop learning; to celebrate the diversity that enriches our society and challenge the inequalities that diminish it; to be ambitious for the work that we believe in, but to build a network, not an empire; to be driven by dreams and judged on delivery; to never do things for people, but to guide and support, train and enable; above all to inspire.

services and programmes, to work with our neighbours and to measure our impact.

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Community Links Trust Limited

Trustees' annual report

For the year ended 31 August 2020

Statement of responsibilities of the Trustees

The Trustees (who are also Directors of Community Links, for the purposes of company law) are responsible for preparing the Report of the Trustees, including the Strategic Report and the Financial Statements, in accordance with applicable law and the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice.)

Company law requires the Trustees to prepare financial statements for each financial period, which give a true and fair view of the state of affairs of the charitable company, and of the incoming resources and application of resources, including the income and expenditure for that period. In preparing these financial statements, the Trustees are required to:

Select suitable accounting policies and then apply them consistently; Observe the methods and principles in the Charities SORP;

Make judgements and estimates the are reasonable and prudent;

State whether applicable UK Accounting Standards and Statements of Recommended Practice have been followed, subject to any material departures disclosed and explained in the financial statements; 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 proper accounting records that disclose with reasonable accuracy, at any time, the financial position of the charitable company and enable them to ensure that the financial statements comply with the 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.

In so far as the Trustees are aware:

any relevant audit information and to establish that the auditors are aware of that information.

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

governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the Charity guarantee to contribute an amount not exceeding £1 to the assets of the Charity in the event of winding up. The total number of such guarantees at 31 August 2020 was 1. Catch22 is the sole member of the Charity. The Trustees have no beneficial interest in the Charity.

Signature on behalf of the Board of Trustees on 26 May 2021

Chris Wright (Trustee)

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Independent Auditors' Report to the Members of Community Links Trust Limited

Opinion

year ended 31 August 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is

In our opinion the financial statements:

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(UK)) and applicable law. Our responsibilities under those standards are further described in the Responsibilities for the audit of financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of matter - basis of preparation

We draw attention to Note 1 C) to the financial statements which explains that the charity has transferred its trade and assets to its parent charity after the year end and therefore the trustees do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly, the financial statements have been prepared on a basis other than going concern as described in Note 1 C). Our opinion is not modified in this respect of this matter.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

11

Independent Auditors' Report to the Members of Community Links Trust Limited

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the

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:

the financial statements are not in agreement with the accounting records and returns; or

we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the responsibilities statement set out on page 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, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

12

Independent Auditors' Report to the Members of Community Links Trust Limited

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.

Conclude on the appropriateness of the use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

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 members those matters we are required to state to them in an report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Neil Finlayson (Senior Statutory Auditor)

for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

Date 27 May 2021 Devonshire House 60 Goswell Road London EC1M 7AD

13

Community Links Trust Limited

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 August 2020

----- Start of picture text -----
2020 2019
Unrestricted
Restricted General Total Total
Note £ £ £ £
Income from:
Donations and legacies 3 407,233 301,507 708,739 1,147,444
Charitable activities
Advice and Health 4 185,056 624,676 809,732 911,366
Youth and Employability 4 177,740 242,996 420,736 871,849
Policy and Learning 4 109,790 46,045 155,835 367,396
Other trading activities 5 - 110,019 110,019 105,271
Investments 6 - 293 293 317
Government Grant Income 158,947 - 158,947 -
Total income 1,038,766 1,325,535 2,364,301 3,403,644
.
Expenditure on:
Raising funds 7 - 63,549 63,549 135,832
Charitable activities
Advice and Health 7 268,221 576,121 844,342 707,638
Youth and Employability 7 626,121 367,880 994,001 1,860,580
Policy and Learning 7 165,933 30,172 196,105 241,168
Transition Costs 7 - - - 175,420
Total expenditure 1,060,275 1,037,722 2,097,997 3,120,638
Net (losses) on
investments (1,526) (1,526) -
Net (expenditure) /income for the year 8 (21,509) 286,287 264,778 283,006
Transfers between funds - - - -
Net movement in funds 19 (21,509) 286,287 264,778 283,006
Reconciliation of funds:
Total funds brought forward 1,188,663 1,984,517 3,173,180 2,890,174
Total funds carried forward 1,167,154 2,270,804 3,437,958 3,173,180
----- End of picture text -----

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Community Links Trust Limited

Company no. 2661182

Balance sheet

As at 31 August 2020

----- Start of picture text -----
2020 2019
Note £ £
Fixed assets:
Tangible assets 12 1,259,426 1,309,365
Investments 13 9,023 10,548
1,268,449 1,319,913
Current assets:
Debtors 15 2,945,645 2,223,282
Cash at bank and in hand 16 128,553 149,076
3,074,198 2,372,358
Liabilities:
Creditors: amounts falling due within one year 17 (904,689) (519,091)
Net current assets 2,169,509 1,853,267
Total net assets 19 3,437,958 3,173,180
Funds: 19
Restricted income funds 1,167,154 1,188,663
Unrestricted income funds:
Designated funds 51,141 55,350
Revaulation reserve 873,000 882,000
General funds 1,346,663 1,047,167
Total unrestricted funds 2,270,804 1,984,517
Total funds 3,437,958 3,173,180
----- End of picture text -----

Approved by the trustees on 26 May 2021 and signed on their behalf by

Chris Wright Trustee

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Community Links Trust Limited

Statement of cash flows

For the year ended 31 August 2020

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st and rents from investments
assets		 £
£
(20,523)
-
-
-
(20,523)
149,076
128,553
2
0
2
0		 (1,266,804)
-
(7,463)
(7,463)
(1,274,267)
1,423,343
149,076
2019
128,553 149,076

16

Community Links Trust Limited

Notes to the financial statements

For the year ended 31 August 2020

1 Accounting policies

Community Links Trust Limited is a charitable company limited by guarantee and registered in England and Wales. The address of the registered office is 105 Barking Road, London, E16 4HQ.

a)

Basis of preparation

The financial statements have been prepared in accordance with 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 2015) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (August 2014) and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are recorded to the nearest pound.

b) Public benefit entity

The charitable company meets the definition of a public benefit entity under FRS 102.

c) Going concern

On 1 February 2021, it was agreed that, in the best interests of the complementary charitable objects of Community Links Trust Limited and Catch22 Charity Limited, its parent charity, and the integrated operations of the Catch22 group, for the public benefit, the charitable undertaking of Community Links Trust should be transferred, as a going concern, from Community Links Trust to Catch22 Charity Limited. All assets and trade of Community Links Trust were transferred to Catch22 Charity on this date and Community Links Trust Limited ceased to trade as a separate company from 1 February 2021. Therefore the financial statements have been prepared on a basis other than that of a going concern. No adjustments have been required to be made to the financial statements as a result of them being prepared on a basis other then that of a going concern.

d)

Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Trading income generated from events and activities is recognised when the events and activities are held. Income is recognised net of value added tax.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

e)

Donations of gifts, services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the about their contribution.

On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

17

Community Links Trust Limited

Notes to the financial statements

For the year ended 31 August 2020

1 Accounting policies (continued)

f) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

g) Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

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

h) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Costs of raising funds relate to the costs incurred by the charitable company in inducing third parties to make

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

i)

Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on income, of each activity.

Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.

Where such information about the aims, objectives and projects of the charity is also provided to potential donors, activity costs are apportioned between fundraising and charitable activities on the basis of area of literature occupied by each activity.

ity.
Raising Funds 1%
Advice and Health 32%
Youth and Employability 37%
Policy and Learning 7%
Support 21%

Support and governance costs are re-allocated to each of the activities on the following basis which is an estimate, based on income, of the amount attributable to each activity

Raising Funds 3%
Advice and Health 40%
Youth and Employability 47%
Policy and Learning 9%

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the

18

Community Links Trust Limited

Notes to the financial statements

For the year ended 31 August 2020

1 Accounting policies (continued)

j) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

k) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Where fixed assets have been revalued, any excess between the revalued amount and the historic cost of the asset will be shown as a revaluation reserve in the balance sheet.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Long and short leasehold Over the length of the lease Leasehold improvements 2 to 50% per annum Motor vehicles 25% per annum Computers, fixtures and fittings 25% per annum

l)

Listed investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing

quoted market price. Any change in fair value will be recognised in the statement of financial activities and any excess of fair value over the historic cost of the investments will be shown as a fair value reserve in the balance sheet. Investment

financial instruments.

Investments in subsidiaries

Investments in subsidiaries are at cost or written down value if lower. The

company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the charitable company as an individual and not about its group. Community Links Trust Limited is a wholly owned subsidiary of Catch22 Charity Limited and the results of Community Links Trust Limited are included in the consolidated financial statements of Catch22 Charity Limited.

m)

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

19

Community Links Trust Limited

Notes to the financial statements

For the year ended 31 August 2020

1 Accounting policies (continued)

n) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

o) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

p) Pensions

The charitable company makes pension contributions to the Flexible Retirement Plan, a multi-employer defined contribution pension scheme which is operated by the Pensions Trust. The charitable company became a member of the Pensions Trust effective 1 October 2012. The charitable company pays contributions of 5% of pensionable salary provided that an employee pays employee contributions of at least 3% of pensionable salary. pension contributions are charged to the Statement of Financial Activities as incurred.

20

Community Links Trust Limited

Notes to the financial statements

For the year ended 31 August 2020

2 Detailed comparatives for the statement of financial activities

----- Start of picture text -----
2019
Unrestricted
Restricted General Total
£ £ £
Income from:
Donations and legacies 429,334 718,110 1,147,444
Charitable activities
Advice and Health 178,746 732,621 911,366
Youth and Employability 777,132 94,717 871,849
Policy and Learning 330,535 36,862 367,396
- -
Transition funding
-
Other trading activities 105,271 105,271
Investments - 317 317
Total income 1,715,747 1,687,897 3,403,643
Expenditure on:
-
Raising funds 135,831 135,831
Charitable activities
Advice and Health 185,441 522,198 707,638
Youth and Employability 1,466,204 394,377 1,860,581
Policy and Learning 171,736 69,432 241,168
Transition Costs 97,766 77,653 175,420
- - -
Loss on disposal of fixed assets
Total expenditure 1,921,147 1,199,491 3,120,638
Net income / expenditure (205,400) 488,406 283,006
Transfers between funds - - -
Net movement in funds (205,400) 488,406 283,006
Total funds brought forward 1,394,063 1,496,111 2,890,174
Total funds carried forward 1,188,663 1,984,517 3,173,180
----- End of picture text -----

21

Community Links Trust Limited

Notes to the financial statements

For the year ended 31 August 2020

3 Income from donations and legacies

----- Start of picture text -----
2020 2019
Restricted Unrestricted Total Total
£ £ £ £
Gifts 407,233 301,507 708,739 1,147,444
407,233 301,507 708,739 1,147,444
4 Income from charitable activities
2020 2019
Restricted Unrestricted Total Total
£ £ £ £
Legal Aid Agency - 8,001 8,001 4,688
Screening Project - 379,856 379,856 467,628
Help Through Crisis 76,316 - 76,316 133,566
Other 108,740 236,819 345,559 305,484
Sub-total for Advice and Health 185,056 624,676 809,732 911,366
More than Mentors 100,000 - 100,000 230,156
Talent Match - - - 38,863
Other income 77,740 242,996 320,736 602,830
Sub-total for Youth and Employability 177,740 242,996 420,736 871,849
BIG Lottery Fund 109,790 - 109,790 330,533
Other income - 46,045 46,045 36,863
Sub-total for Policy and Learning 109,790 46,045 155,835 367,396
Total income from charitable activities 472,586 913,717 1,386,303 2,150,611
----- End of picture text -----

22

Community Links Trust Limited

Notes to the financial statements

For the year ended 31 August 2020

----- Start of picture text -----
5 Income from other trading activities
2020 2019
Unrestricted Total Total
£ £ £
Other income 110,019 110,019 105,271
110,019 110,019 105,271
6 Income from investments
2020 2019
Unrestricted Total Total
£ £ £
Interest 293 293 317
293 293 317
----- End of picture text -----

23

Community Links Trust Limited

Notes to the financial statements

For the year ended 31 August 2020

----- Start of picture text -----
7. Analysis of expenditure
Charitable activities
Cost of
raising Transition Advice and Youth and Policy and Support 2019
funds costs Health Employability Learning costs 2020 Total Total
£ £ £ £ £ £ £ £
Staff costs (Note 9) - - 599,529 411,475 86,521 184,523 1,282,048 1,480,555
Other staff costs 2,017 - 5,661 4,776 176 3,241 15,870 19,492
Direct project costs 19,704 - 24,174 284,217 56,652 41,644 426,392 1,077,003
Travel and subsistence 28 - 1,734 2,549 783 292 5,386 20,654
Rent and rates - - - 1,674 60 4,061 5,795 7,943
Legal and professional - - (1,188) 1,200 3,450 9,826 13,288 48,027
Office costs 6,359 - 51,300 51,368 5,386 160,323 274,734 392,924
Audit and accountancy - - - - - 24,960 24,960 20,880
Depreciation - - - 28,472 - 21,050 49,523 53,160
28,109 - 681,210 785,731 153,028 449,920 2,097,996 3,120,638
Support costs 35,440 - 163,132 208,270 43,077 (449,920) - -
Total expenditure for 2020 63,549 - 844,342 994,001 196,105 - 2,097,996 3,120,638
Total expenditure for 2019 135,831 175,420 707,638 1,860,581 241,168 - 3,120,638
----- End of picture text -----

24

Community Links Trust Limited

Notes to the financial statements

For the year ended 31 August 2020

----- Start of picture text -----
8 Expenditure for the year
This is stated after charging / (crediting):
2020 2019
£ £
Depreciation 49,938 53,194
- -
Loss or profit on disposal of fixed assets
Auditors' remuneration (excluding VAT):
Audit 14,600 14,600
9 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel
Staff costs were as follows:
2020 2019
£ £
Salaries and wages 1,136,711 1,322,825
Redundancy and termination costs 20,159 12,954
Social security costs 100,327 119,845
24,851 24,930
1,282,048 1,480,554
Net income/ (expenditure) for the year
Employees earning more than £60,000 (excluding employer pension costs) during the year between:
2020 2019
No. No.
£60,000 - £69,999 - 1
£70,000 - £79,999 - -
£80,000 - £89,999 - 1
----- End of picture text -----

The total employee benefits including pension contributions and employers NI of the key management personnel for 2020 was £111,155 (2019: £269,047).

The charity trustees were not paid or received any other benefits from employment with the charity in the year (2020: £nil). No charity trustee received payment for professional or other services supplied to the charity (2019: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £nil (2019: £nil) incurred by 0 (2019: 0) members relating to attendance at meetings of the trustees.

Aggregate donations from trustees was £nil (2019: £nil).

25

Community Links Trust Limited

Notes to the financial statements

For the year ended 31 August 2020

10 Staff numbers

2
0
2
0
N
o
.
7
8
.
0		 2019
No.
79.0

11 Related party transactions

During the year, Community Links Trust transferred cash balances to Catch22 Charity Limited, its parent charity. There is an agreement in place where Community Links Trust have agreed that any surplus cash will be invested in Catch22 and in return Catch22 will pay interest on any funds invested in Community Links Trust. At 31 August 2020, £2,511,204 (2019: £1,425,144 owed to) was owed from Catch22 Charity Limited.

During the year, the charity had transactions of £178,217 (2019: £286,760) relating to salaries and other costs recharged to Community Links Trading Limited, its wholly owned subsidiary. It also received a donation of £nil (2019: £302,768) from Community Links Trading. At 31 August 2020, £143,382 (2019: £302,768) was owed from Community Links Trading Limited.

26

Community Links Trust Limited

Notes to the financial statements

For the year ended 31 August 2020

12 Tangible fixed assets

f
i
x
e
d
a
s
s
e
t
s
s in year
nd of the year

t
i
o
n

l
u
a
t
i
o
n
art of the year
s in year
art of the year
or the year
ed on disposal
nd of the year
k
v
a
l
u
e
n
d
o
f
t
h
e
y
e
a
r
e
n
d
art of the year		 Long leasehold
£
900,000
-
-
900,000
18,000
9,000
-
27,000
873,000
882,000		 Short leasehold
£
540,797
-
-
540,797
294,106
27,852
-
321,958
218,839
246,691		 Leasehold
Improvements
£
263,974
-
-		 Computer
equipment,
fixtures &
fittings
£
36,505
-
-		 Motor
vehicles
£
5,002
-
-
5,002
5,002
-
-
5,002
-
-		 T
o
t
a

£
1
,
7
4
6
,
2
7
8
-
-
263,974 36,505 1
,
7
4
6
,
2
7
8
90,310
8,828
-		 29,495
4,258
-		 4
3
6
,
9
1
3
4
9
,
9
3
8
-
99,138 33,753 4
8
6
,
8
5
1
164,836 2,751 1
,
2
5
9
,
4
2
6
173,664 7,010 1,309,365

The leasehold on 105 Barking Road is held at market value of £900,000 less depreciation. The last valuation was conducted by Aitchson Rafferty on 21 May 2015.

27

Community Links Trust Limited

Notes to the financial statements

For the year ended 31 August 2020

13 Investments

e
s
t
m
e
n
t
s
al Bank of Scotland £1 Ordinary
nge in market value
toric cost at the end of the year
value at the start and end of the year
estments comprise:
isted investments
estments representing over 5% by value of the portfolio comprise:
Co-operative Bank PLC £1.00 9.25% Non-Cumulative Irredeemable Preference
lesiastical Insurance Office PLC £1.00 8.625% Non-Cumulative Irredeemable Preference Shares
ed investments		 2
0
2
0
£
1
0
,
5
4
8
(
1
,
5
2
5
)
9
,
0
2
3
1
2
,
2
9
5
2
0
2
0
£
4
,
0
2
2
5
,
0
0
1
9
,
0
2
3
2
0
2
0
N
o
1
,
0
0
0
1
,
0
0
0
2
,
0
0
0		 2019
£
10,548
-
10,548
12,295
2019
£
5,547
5,001
10,548
2
0
2
0
£
1
,
2
0
9
1
,
2
7
8
1
,
5
3
5
4
,
0
2
2

The company's investments at the balance sheet date in the share capital of unlisted companies were:-

Allia Ltd

The charity purchased 5,000 ordinary £1 shares in the company on 3 September 2009. The shares represented 3.9% of the issued share capital of the company at 31 August 2020 based on information contained in the statutory accounts for the period ended 31 August 2020. Allia Ltd is a community benefit society registered with the Financial Conduct Authority. Allia business is to undertake research and practical initiatives into the relief of poverty within the United Kingdom, particularly by using social investment schemes. The investment was made in order to enable the charity to access fundraising support. The charity may request that the shares are redeemed in full at 6 months' notice. The shares are valued at the cost of the investment.

Community Links Trading Limited

The charity owns one ordinary £1 share representing 100% of the share capital of the company. The shares are valued at the cost of the investment. The company operates trading activities in order to generate funds for the charity.

The company generated an operating loss of £75,239 (2019: profit of £172,563) during the year. No funds were gift aided to the charity in the year (2019: £302,768).

28

Community Links Trust Limited

Notes to the financial statements

For the year ended 31 August 2020

14 Subsidiary undertaking

The charitable company owns the whole of the issued ordinary share capital of Community Links Trading Limited, a company registered in England and Wales (Company no: 05737749 Registered Office: 105 Barking Road, London, E16 4HQ). The subsidiary is used for non-primary purpose trading activities. Available profits are gift aided to the charitable company. A summary of the results of the subsidiary is shown below:

d profit bought forward
ter Tax
distributed to Community Links Trust
d profit
receivable
r
sales
trative expenses
ssets
r the financial year
regate of the assets, liabilities and funds was:
rofit
tion Tax
ter Tax
ng profit
Assets
Liabilities		 2
0
2
0
£
2
7
3
,
1
1
4
(
3
1
0
,
4
0
7
)
(
3
7
,
2
9
3
)
(
3
7
,
9
4
6
)
(
7
5
,
2
3
9
)
-
(
7
5
,
2
3
9
)
-
(
7
5
,
2
3
9
)
12,290
(75,239)
-
(62,949)
4
3
,
0
7
7
7
3
,
9
9
6
(
1
8
0
,
0
2
1
)
(
6
2

9
4
8
)		 2019
£
787,111
(571,891)
215,220
(42,657)
172,563
-
172,563
-
1
7
2
,
5
6
3
142,495
172,563
(302,768)
12,290
27,989
509,690
(525,388)
12291

A Deed of Covenant was signed in the year ended 31st August 2019 creating an obligation for the company to pay taxable profits as a giftaid distribution to Community Links Trust. As there were no taxable profits in this financial year no distributions have been accrued at year end.

29

Community Links Trust Limited

Notes to the financial statements

For the year ended 31 August 2020

----- Start of picture text -----
15 Debtors
2020 2019
£ £
Trade debtors 218,448 252,910
Accrued income 70,827 120,871
Prepayments 13,189 38,638
Amount owed by group undertaking 2,643,181 1,810,862
Other debtors - -
2,945,645 2,223,282
16 Cash at bank and in hand
2020 2019
£ £
Cash at bank and in hand 128,553 149,076
----- End of picture text -----

As explained in note 11, there is an agreement in place between Community Links Trust and it's parent charity, Catch22 Charity Limited, where any surplus cash in Community Links Trust is invested in Catch22 and in return Catch22 will pay interest on any funds invested in Catch22.

----- Start of picture text -----
17 Creditors: amounts falling due within one year
2020 2019
£ £
Trade creditors 93,080 70,904
Taxation and social security 32,192 31,506
Other creditors 8,913 6,598
Accruals and deferred income 770,504 410,083
904,689 519,091
Amounts included in deferred income as it relates to future periods: £
Balance at 1 September 2019 175,339 99,322
Amounts deferred in year 499,094 76,017
Balance at 31 August 2020
674,433 175,339
----- End of picture text -----

30

Community Links Trust Limited

Notes to the financial statements

For the year ended 31 August 2020

----- Start of picture text -----
18 Analysis of group net assets between funds
Designated Revaluation
Restricted Funds Funds General Funds reserve Total Funds
£ £ £ £ £
Tangible fixed assets 335,285 51,141 - 873,000 1,259,426
Investments - - 9,023 - 9,023
Net current assets 831,869 - 1,337,640 - 2,169,509
Net assets at the end of the year 1,167,154 51,141 1,346,663 873,000 3,437,958
19 Movements in funds
The Resources Committee, on behalf of the Board of Trustees,
conducts an annual review of the level of unrestricted reserves in At 1 September At 31 August
the general fund, by considering risks associated with the 2019 Income Expenditure Transfers 2020
£ £ £ £ £
Restricted funds:
Youth and Employability 79,848 547,473 (470,094) 157,227
Advice and Health 30,411 185,056 (166,527) 48,940
Policy and Learning 158,799 109,790 (165,933) 102,656
Supp - 37,500 (37,500) -
Anonymous Donations 547,590 - (24,544) 523,046
Furlough Grant - 158,947 (158,947) -
Fixed Assets 372,015 - (36,730) 335,285
Total restricted funds 1,188,663 1,038,766 (1,060,275) - 1,167,154
Unrestricted funds:
Designated funds:
Fixed Assets 55,350 - (4,209) - 51,141
Revaluation reserve 882,000 - (9,000) - 873,000
Total designated funds 937,350 - (13,209) - 924,141
General funds 1,047,167 1,325,535 (1,026,039) 1,346,663
Total unrestricted funds 1,984,517 1,325,535 (1,039,248) - 2,270,804
Total funds 3,173,180 2,364,301 (2,099,523) - 3,437,958
----- End of picture text -----

31

Community Links Trust Limited

Notes to the financial statements

For the year ended 31 August 2020

19 Movements in funds (continued)

Purposes of restricted funds

The charity receives restricted income from a very large number of donors and it is not practical to disclose the opening balances, movements, transfers and closing balances on every individual restricted fund. Restricted funds are disclosed in aggregate for each area of charitable activity.

Fixed Assets

The restricted Fixed Assets Fund represents the net book value of fixed assets purchased by the charitable company using restricted funds. Depreciation relating to such fixed assets is charged to this fund.

Purposes of designated funds

Revaluation Reserve

This represents the surplus arising from the revaluation of freehold property owned by the charity less depreciation charge.

Fixed assets

This represents the net book value of fixed assets which has not been purchased with restricted funds. Depreciation relating to such fixed assets is charged to this fund.

Transition Funding

This represents funds to be used in the transition of the charity. These funds will be spent in the coming year.

Unrestricted Funds

General funds

The General Fund represents the accumulated net surpluses of the charity which have neither been restricted by conditions imposed by donors, nor have been designated by the Board of Trustees for specific purposes.

32

Community Links Trust Limited

Notes to the financial statements

For the year ended 31 August 2020

19 Movements in funds 2019

----- Start of picture text -----
At 1 September At 31 August
2018 Income Expenditure Transfers 2019
£ £ £ £ £
Restricted funds:
Youth and employability 302,856 1,206,466 (1,429,474) - 79,848
Advice and Health 37,106 178,746 (185,441) - 30,411
Policy and Learning - 330,535 (171,736) - 158,799
Anonymous Donations 645,356 - (97,766) 547,590
Fixed Assets 408,745 - (36,730) - 372,015
Total restricted funds 1,394,063 1,715,747 (1,921,147) - 1,188,663
Unrestricted funds:
Transition Funding 49,962 - (49,962) - -
Fixed Assets 55,350 - - - 55,350
Revaluation reserve 891,000 - (9,000) - 882,000
Total designated funds 996,312 - (58,962) - 937,350
Fair value reserve - - - - -
General funds 499,799 1,687,897 (1,140,529) - 1,047,167
Non-charitable trading funds - - -
Total unrestricted funds 1,496,111 1,687,897 (1,199,491) - 1,984,517
Total funds 2,890,174 3,403,644 (3,120,638) - 3,173,180
----- End of picture text -----

33

Community Links Trust Limited

Notes to the financial statements

For the year ended 31 August 2020

20 Reconciliation of net (expenditure) /income to net cash flow from operating activities

----- Start of picture text -----
2020 2019
£ £
Trustee
Net (expenditure)/income for the reporting period 264,778 283,006
(as per the statement of financial activities)
Depreciation charges 49,938 53,194
Dividends, interest and rent from investments - -
Net (losses) on investments 1,527 -
Decrease/(Increase) in debtors (722,363) (1,661,838)
(Increase)/ (decrease) in creditors 385,597 58,834
Net cash provided by / (used in) operating activities (20,523) (1,266,804)
21 Analysis of cash and cash equivalents
At 1 September At 31 August
2019 Cash flows 2020
£ £ £
Cash at bank and in hand 149,076 (20,523) 128,553
Total cash and cash equivalents 149,076 (20,523) 128,553
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Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1. The registered office is 105 Barking Road, London.

23 Ultimate parent charity

The charity's ultimate parent company is Catch22 Charity Limited, incorporated in England and Wales, charity number 1124127, company number 06577534. The principle purpose of Catch22 Charity Limited is a social business that designs and delivers services that build resilience and aspiration in people and communities. Catch22 Charity Limited is the sole member of Community Links Trust and approves all trustee appointments. Group consolidated accounts are prepared and publicly available from the company secretary at the registered office 27 Pear Tree Street, London, EC1V 3AG.

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Events after the reporting date On 1 February 2021, it was agreed that, in the best interests of the complementary charitable objects of Community Links Trust Limited and Catch22 Charity Limited, its parent charity, and the integrated operations of the Catch22 group, for the public benefit, the charitable

undertaking of Community Links Trust should be transferred, as a going concern, from Community Links Trust to Catch22 Charity Limited. All assets and trade of Community Links Trust were transferred to Catch22 Charity on this date and Community Links Trust Limited ceased to trade as a separate company from 1 February 2021.

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