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← Centre For Local Economic Strategies Limited

2024-06-30-accounts

Company registration number: 04242937 Charity registration number: 1089503

Centre for Local Economic Strategies Limited

known as

CLES Limited

(A company limited by guarantee)

Annual Report and Financial Statements

for the Year Ended 30 June 2024

Beever and Struthers Statutory Auditor One Express 1 George Leigh Street Manchester M4 5DL

Centre for Local Economic Strategies Limited

Contents

Reference and Administrative Details 1
Trustees' Annual Report (Incorporating the Directors' Report) 2 to 9
Independent Auditors' Report 10 to 13
Statement of Financial Activities 14
Balance Sheet 15
Statement of Cash Flows 16
Notes to the Financial Statements 17 to 32
Centre for Local Economic Strategies Limited
Reference and Administrative Details
Trustees C Wilkins
Cllr P Dennett
N Bolger
A Donald
Cllr D P Meller
Cllr B Craig
R Deegan
H Thomas
J Dromey
S Halliwell
Secretary S L Longlands
Senior Leadership Team:
Chief Executive Officer S L Longlands
Other Members of the Team T Lloyd Goodwin
S MacDonald
Charity Registration Number 1089503
Company Registration Number 04242937
Principal and Registered Office 52 Oak Street
Swan Square
Manchester
M4 5JA
Auditor Beever and Struthers
Statutory Auditor
One Express
1 George Leigh Street
Manchester
M4 5DL
Solicitors: Bates, Wells & Briathwaite
61 Charterhouse Street
London
EC1M 6HA
Bankers Co-operative Bank PLC
1 Balloon Street
Manchester
M60 4EP

Page 1

Centre for Local Economic Strategies Limited

Trustees' Annual Report (Incorporating the Directors' Report)

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements and auditors' report of the charitable company for the year ended 30 June 2024.

Objectives and activities

Objects and aims

The objectives of the Charity are to:

In shaping our objectives for the year and planning our activities, we have been informed by the Charity Commission guidance on public benefit and many of our publications and activity is free to view and download

Mission and Aims

Established in 1986, CLES is a Manchester based charity working towards a future where local economies benefit people, place and the planet. This will happen when wealth and power serve local people, rather than the other way around, enabling communities to flourish. We have an international reputation for our pioneering work on community wealth building and are recognised as the curators of the movement in the UK.

We act as a critical friend to local places helping to bring anchor organisations together, connect them to local economies and together devise solutions and deliver change. We use this experience of delivering change on the ground to advocate for change nationally. We do this in a number of ways.

Public benefit

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Page 2

Centre for Local Economic Strategies Limited

Trustees' Annual Report (Incorporating the Directors' Report)

Although most of the charity’s work is undertaken through paid assignments, clients are willing to allow the results of the work to be more widely disseminated so as to the benefit of the public. In focusing its efforts in particular work areas CLES takes account of the relative public benefit expected to flow from work, as well as considering the financial viability of the activities.

Review of the year - Highlights and impact of 2023/24

During 2023/24 CLES work covered a range of key policy areas and topics in line with our charitable purpose and mission. Some of the key highlights included:

In the latter part of 2023/24 a general election was announced for the 4th July 2024. Therefore we used the findings and evidence of what works from our projects and programmes to publish a manifesto with the aim of inviting all political parties to rediscover the power of local and take six bold actions to harness the power of local to deliver economic change:

  1. Reverse austerity, power local economies

  2. Reframe devolution

  3. Make wealth building everyone’s business

  4. Empower places to lead climate action

  5. Power up local employment pathways

Subsequently we also updated our guidance papers on community wealth building for local councillors and MPs in the UK.

Page 3

Centre for Local Economic Strategies Limited

Trustees' Annual Report (Incorporating the Directors' Report)

• what Barnet’s residents want from a Community Wealth Building approach - via the recruitment of up to six community-based researchers to understand pressing issues facing residents across Barnet

• how and where wealth flows and grows within the Borough - via analysis of data on local growth, land and property, business ownership and income inequality

• the Council’s spend profile, the existing local business base and where spend could be redirected locally - via analysis of Barnet Council’s procurement data for spend analysis by geography, sector, and supplier type -

• what steps toward more progressive procurement practices can the procurement team take forward - via socialising findings from stages 1-3 and conducting workshops focused on education and priority setting

This work has resulted in a new approach to social value within the Borough and some clear recommendations about how to improve wealth flows for communities in the longer term.

Page 4

Centre for Local Economic Strategies Limited

Trustees' Annual Report (Incorporating the Directors' Report)

• Explore how the Council could go further to build on the work that has been done to date and increase the positive impact of community wealth building for the local economy.

• Understand how progress on community wealth building can move beyond the Council to local communities, including participation with the many community and voluntary organisations across the area.

The report from this work was presented to full Council and there is now agreement to move forward with the implementation of the plan through a cross departmental working group which CLES will support into 2024/25

Longer term strategic programmes of work

During 2023/24 we have also continued to develop and expand the number of longer term strategic programmes of work at CLES. These include:

Page 5

Centre for Local Economic Strategies Limited

Trustees' Annual Report (Incorporating the Directors' Report)

Financial review

The financial figures for 2023/24 show that CLES made a loss of £135,340.

This is set against a forecast surplus of a £88,000. At 30 June 2024 the Group holds £182,937 (2023: £318,277) in reserves, of which £4,015 (2023: £nil) are restricted. A further £4,062 (2023: £3,117) are represented by tangible fixed assets, leaving £174,860 (2023: £315,160) in free reserves

To monitor financial risks within the organisation, CLES continues to regularly review its financial situation on monthly basis within the Senior Leadership Team and on a quarterly basis with the Board of Trustees and Directors.

Principal funding sources

CLES has a diversity of funding sources. This includes:

Grant awards from philanthropic funders, academic institutions and other funders who want to support CLES’ charitable mission and ideas.

Commissioned activities from local government, which support the charitable aims and allow us to explore, develop and share practice amongst the wider community and public. This commissioned activities are secured both through commissioned tenders (where there is clear alignment with our mission and objectives) and proactively through organisations wanting us to directly support their efforts to deliver community wealth building and inclusive economic change.

We also receive donations in support of our events and speaking engagements

New relationships which cover different geographies and variants of the charities core charitable purposes are also actively pursued on an ongoing basis.

Risk management

The trustees and senior leadership team have a risk management strategy and approach which comprises:

We review cashflow on a monthly and quarterly basis and have an ongoing process of issuing sales invoices and proactive debt chasing. Trustees discuss the quarterly management accounts, and regular meetings and discussions take place separate to the formal board meetings. Key risks ahead include:

Changes in public sector expenditure : Given the profile of our income, much of which is with government organisations, our exposure to changes in public sector expenditure is a key risk factor for CLES. A key element of managing this risk, is a regular review of incoming resources, projected forward 18 months. In addition, we continue to explore ways to diversify our funding relationships so that they increasingly include philanthropic and civil society organisations as well as combined authorities. 2023/24 has seen a decrease in contract income which will be something we will be monitoring closely in 2024/25.

Page 6

Centre for Local Economic Strategies Limited

Trustees' Annual Report (Incorporating the Directors' Report)

Economic and political context : As an organisation concerned with social justice and the economy, the political and policy context has a significant influence on our work and who funds it. 2023/24 was a year during which there was significant political and economic turbulence both in the UK and international and this has had a direct impact on our economic fortunes. This is a risk that is endemic to our business but looking forward there are reasons to be optimistic given the change in Government in the UK which has created new opportunities for research and advocacy to fulfil our charitable mission.

Staff recruitment and retention is a ongoing risk for CLES’ work. The labour market for our work is highly competitive at the current time. CLES works hard to benchmark our salaries to ensure that they remain competitive alongside good terms and conditions, with opportunities for staff development. We also have become an accredited living hours and living wage employer and continue to implement a four day week.

Going concern

2023/24 has been a challenging year for CLES with a £135k deficit. This has been as a result of a fall in contract income, particularly in Quarters 1 and 2 of the previous 12 months; combined with greater than usual uncertainty within the political and economic context in the UK in the months which preceded the general election on 4 July 2024.

However, there are reasons to be optimistic about the future economic position of the organisation. The Trustees and Senior Management team have taken steps to reduce costs through a restructure of the senior management team and by identifying potential savings in other parts of the organisation’s budget. In addition, the wider political and economic context for our work has changed substantially with the arrival of the new UK Government. This has created significantly more favourable market conditions for our work and enabled us to pursue new opportunities to fulfil our charitable mission. We have also restructured the wider CLES team providing a stronger organising logic for how we work together, part of the rationale for which is to enable greater collaboration on income generation and delivery.

There are also reasons to be optimistic based on our current and future pipeline of work which shows that as of the end of Quarter 1, we have obtained approximately 70% of funding for the year ahead suggesting that the market for our work has improved.

However, we will be working closely with the CLES team and Trustees to monitor costs and income on a regular basis in order to manage and mitigate these risks going forward.

There are no material uncertainties about the Charity's ability to continue, therefore, the accounts have been prepared on a going concern basis.

Structure, governance and management

Nature of governing document

CLES is a company limited by guarantee governed by its memorandum and articles of association dated 28 June 2001, as amended by Special Resolution dated 16 December 2010 and 13 August 2012. The byelaws were amended on 7 May 2015.

Trustee recruitment and retirals

CLES has a well-established structure of governance, which has served the organisation effectively in recent years. In the last year there has been some movement in the Board and a process launched during 2022 to recruit new board members to the organisation. This process has been completed successfully and the new board members have now successfully completed their first year of service to the Board. The annual retirrals meeting detailed in our governance document ensures a regular review of board membership.

Page 7

Centre for Local Economic Strategies Limited

Trustees' Annual Report (Incorporating the Directors' Report)

Chief Executive

The day to day management of the organisation is delegated to the Chief Executive, Dr Sarah Longlands who works in partnership with the senior leadership teams to run the organisation.

Organisation of Board meetings

The full board of Trustees meets four times a year. Meetings concur with end of quarter financial work and reporting and usually last up to 2 ½ hours. They are usually hybrid meetings and are mainly held in Manchester with the option to join online (reflecting the geographical diversity of Trustees)

The CEO meets with the Chair in regular 1 to 1’s on at least a monthly basis. In these meetings ongoing operational considerations are discussed, as well as longer term goals in relation to organisational objectives and business plan. The agenda and content for any forthcoming Board meetings are also discussed.

On occasion sub-committees are formed. These look at issues raised which need a deeper consideration. In 2023/24, a finance sub committee has been formed to oversee the budget setting process, preparation of annual accounts and the annual audit.

Non delegated authority includes Governance policy, staff terms and conditions, annual budget, remuneration of the CEO. Delegated areas include all areas of day to day operations, recruitment, remuneration of staff (excluding the CEO).

Pay and remuneraiton for senior staff

The CEO’s pay and remuneration is decided by the Board. This takes place via an appraisal process, conducted by the Chair of the Board.

All other senior staff appraisals are conducted by the CEO and line managers, with recommendations going to the board for assessment in accordance with annual budget considerations and negotiations with the recognised Trade Union in line with CLES’ recognition agreement with Unite.

Statement of trustees' responsibilities

The trustees (who are also the directors of Centre for Local Economic Strategies Limited for the purposes of company law) are responsible for preparing the Trustees' Annual Report (Incorporating the Directors' Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". The report and accounts have been prepared in accordance with the provisions in the Companies Act 2006 relating to small companies.

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they 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 its income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

Page 8

Centre for Local Economie Strategies Liniited Trustees, Annual Report (Incorporatlng the Dlrectors, Report) prepare Ihc fiiillii¢ial sthleinenls oi) Ihe going concem basis iiiiless it is innpproprinte to pr¢siiiiie thal 11)e cliiiriiiqble coinpli ny will continue in business. The Iruslees are responsible for keeping proper accounting records Ihal can disclose wilh reasonuble acciiracy at aiiy lin)e fii)ai)cial position of the charitable compatiy and enable tlieni to ¢iisw¢ th4t the financiol staleiiieiits Coniiily H'iili ihe Compai)ies Acl 2006. They are also responsible for saf¢guarding tlie a55et5 of Ilie churilabl¢ comi)any and heiice for tak.ing rcasonable steps for ille preveniion alld deieclioi) of traud and other irregularilies. Tlie Inislees are responsible for Ihe maint¢nance and integrity of the corporate and fiiiuiiciul infoi'mulion in¥liided on th¢ ¢harAlabl¢ cotnpan) s w¢bsiie. Legislation govLrniii8 the PTeparaiion and dissemination of finaiiciul stslenienls may differ fmm legislation in olh¢r jurisdi¢tion5. Dlselosure of InformAtlon to audltoi. Ench Iruslee lias taken sleps Ihsti Iliey ougl)I lo have iaken Os a Iruslee in order to inake Ihetitselves aii'are of aiiy relevant audit infori)Mlion and io eslablish that ihe ¢harity's audilor is aware of Ihl¢ l inforiiiaiion. The Inislees conftni) that tlieTe is no r¢levanl infonnation that they kilow of aiid of wl)i¢l) Illey kiioH' tli¢ auditor Is 11114war¢. Sninll coiiii)llnle$ prov151on stAtenieiit This r¢poi'l lias beeji prepaiyd in accordance willi Ilie small companies ￿81m¢ under Ihe Comppiiies Act 2006. Tlie annual report was approi'ed b)r the Iruslees of Ilie charity on..*-W..3&nd signed on ils bel)alf by: C IVilkin$ 'rNsiee Page 9

Centre for Local Economic Strategies Limited

Independent Auditor's Report to the Members of Centre for Local Economic Strategies Limited

Opinion

We have audited the financial statements of Centre for Local Economic Strategies Limited (the 'charity') for the year ended 30 June 2024, which comprise the Statement of Financial Activities (including Income and Expenditure Account), Balance Sheet, Statement of Cash Flows, 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 United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and the provisions available for small entities, in the circumstances set out in note to the financial statements, 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.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

Page 10

Centre for Local Economic Strategies Limited

Independent Auditor's Report to the Members of Centre for Local Economic Strategies Limited

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.

Opinion on other matter prescribed by the Companies Act 2006

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Annual Report (Incorporating the Directors' Report).

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:

Responsibilities of trustees

As explained more fully in the Statement of trustees' responsibilities (set out on page 8 and 9), the trustees 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 charity's 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 charity or to cease operations, or have no realistic alternative but to do so.

Page 11

Centre for Local Economic Strategies Limited

Independent Auditor's Report to the Members of Centre for Local Economic Strategies Limited

Auditor responsibilities for the audit of the financial statements

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 auditor’s 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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and addressing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

Page 12

Centre for Local Economic Strategies Limited

Independent Auditor's Report to the Members of Centre for Local Economic Strategies Limited

Use of our report

This report is made solely to the charitable company's trustees, 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 charity's trustees 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 trustees as a body, for our audit work, for this report, or for the opinions we have formed.

...................................... Sue Hutchinson FCCA (Senior Statutory Auditor) For and on behalf of Beever and Struthers, Statutory Auditor

One Express 1 George Leigh Street Manchester M4 5DL

16 December 2024 Date:.............................

Page 13

Centre for Local Economic Strategies Limited

Statement of Financial Activities for the Year Ended 30 June 2024 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Charitable activities
4
Investment income
5
Total income
Expenditure on:
Charitable activities
6
Total expenditure
Net (expenditure)/income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
21		 Unrestricted
funds
£
10,555
775,213
1,363
787,131
(926,486)
(926,486)
(139,355)
(139,355)
318,277
178,922		 Restricted
funds
£
-
310,517
-
310,517
(306,502)
(306,502)
4,015
4,015
-
4,015		 Total
2024
£
10,555
1,085,730
1,363
1,097,648
(1,232,988)
(1,232,988)
(135,340)
(135,340)
318,277
182,937		 Total
2023
£
-
1,241,973
-
1,241,973
(1,113,322)
(1,113,322)
128,651
128,651
189,626
318,277

All of the charity's activities derive from continuing operations during the above two periods.

The funds breakdown for 2023 is shown in note 21.

The notes on pages 17 to 32 form an integral part of these financial statements. Page 14

Centre for Loeal Eeononiic Strategies Limited (Reglstratlon nuinber: 04242937) Bqlance Sheet as at 30 June 2024 2024 2023 Note Flxed o5set¥ Tniigibl¢ assels Iiiveslmenls 13 14 4,062 3.117 4,064 3,119 Ciij'j'ent 45sets Debiorb Casli al baith und iji hand 15 16 401.363 143,020 544,333 309,048 371,03.3 680.081 Creilltoi's: Amoiints f4lling due ivlthln one vear Net ¢urr¥nt assets 17 {210.710) (364,923) 3JJ,673 315,158 Total assets less tiirrent IIAbllltle$ 337,737 318,277 Crc(Illors: Amoiints fAlllng due after more than one year Net As$¢tS 18 (154.800 182,937 318,277 iiids of tli¢ Chnrlly: Reslrle¢ed Income fiindy Re81ricled fijnds 21 4,015 Uiire51rlcted liieoiiie fiiilds Unreslri¢led fuiids 178,922 318.277 I'otal flind$ 21 182,937 .318.277 These finiinciAI slalemenls hfii'e been prepared in accordance ￿,1111 Ilie special provisions relating lo ¢oJi)phnies subject lo the sinall col￿p&nieS regiine iviihin Parl 15 oftlk Coi)Ipanie$ A¢1 2006. The finAncial sliiieiiieiils on P11 ges 14 to 32 were Approved by Ibe Iruslees, and aiiihorised for iSSLie oli *1.1.21?_LF.. aiid sigiied oli Iheir behalf by- C Ivilkins Trustee The note5 on pages 17 10 32 fomi an iniegrnl part of Ihese financi21 slateinenls. Pag¢ 15

Centre for Local Economic Strategies Limited

Statement of Cash Flows for the Year Ended 30 June 2024

Note
Cash flows from operating activities
Net cash (expenditure)/income
Adjustments to cash flows from non-cash items
Depreciation
Investment income
5
Working capital adjustments
Increase in debtors
15
Decrease in creditors
17
Increase in deferred income
18
Net cash flows from operating activities
Cash flows from investing activities
Interest receivable and similar income
5
Purchase of tangible fixed assets
13
Net cash flows from investing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at 1 July
Cash and cash equivalents at 30 June		 2024
£
(135,340)
2,735
(1,363)
(133,968)
(92,315)
(5,422)
6,009
(225,696)
1,363
(3,680)
(2,317)
(228,013)
371,033
143,020		 2023
£
128,651
4,760
-
133,411
(57,622)
(74,507)
84,623
85,905
-
(2,201)
(2,201)
83,704
287,329
371,033

All of the cash flows are derived from continuing operations during the above two periods.

The notes on pages 17 to 32 form an integral part of these financial statements. Page 16

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

1 Charity status

The charity is limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

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)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Basis of preparation

Centre for Local Economic Strategies Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Going concern

2023/24 has been a challenging year for CLES with a £135k deficit. This has been as a result of a fall in contract income, particularly in Quarters 1 and 2 of the previous 12 months; combined with greater than usual uncertainty within the political and economic context in the UK in the months which preceded the general election on July 2024.

However, there are reasons to be optimistic about the future economic position of the organisation. The Trustees and Senior Management team have taken steps to reduce costs through a restructure of the senior management team and by identifying potential savings in other parts of the organisation’s budget. In addition, the wider political and economic context for our work has changed substantially with the arrival of the new UK Government. This has created significantly more favourable market conditions for our work and enabled us to pursue new opportunities to fulfil our charitable mission. We have also restructured the wider CLES team providing a stronger organising logic for how we work together, part of the rationale for which is to enable greater collaboration on income generation and delivery.

There are also reasons to be optimistic based on our current and future pipeline of work which shows that as of the end of Quarter 1, we have obtained approximately 70% of funding for the year ahead suggesting that the market for our work has improved.

However, we will be working closely with the CLES team and Trustees to monitor costs and income on a regular basis in order to manage and mitigate these risks going forward.

There are no material uncertainties about the Charity’s ability to continue, therefore, the accounts have been prepared on a going concern basis.

Page 17

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

Judgements and estimates

The preparation of the financial statements requires management to make certain judgements, estimates and assumptions that affect the amounts reported for assets, liabilities, revenue, and expenditure. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The items in the financial statements where these judgments and estimates have been made include:

Income

All incoming resources are included in the Statement of Financial Activities when the Charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. In the following circumstances, the income is deferred and included in other creditors:

Donations

Donations from individuals and other bodies (not being of the nature of a grant) are recognised when receivable.

Grant income

Grants, whether of a capital or revenue nature, are recognised when the charity has entitlement to the funds, any performance conditions have been met and it is probable that the income will be received.

Earned income

Earned income is measured at the fair value of the consideration received or receivable for services and goods supplied, net of discounts and VAT.

Investment income

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Page 18

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

Charitable activities

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.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £500.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Fixed asset investments

Fixed asset investments, other than programme related investments, are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal.

Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Page 19

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Financial instruments

Classification

Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.

Recognition and measurement

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

Page 20

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

3 Income from donations and legacies

Donations and legacies;
Donations from companies, trusts and similar
proceeds
4
Income from charitable activities
Research and consultancy - Fees
Research and consultancy - Grants
Membership subscriptions
Events and publications
Research and consultancy - Fees
Research and consultancy - Grants
Membership subscriptions
Events and publications
5
Investment income
Interest receivable and similar income;
Interest receivable on bank deposits		 Unrestricted
funds
General
£
10,555
10,555
Unrestricted
funds
General
£
651,353
61,583
31,033
31,244
775,213
Unrestricted
funds
General
£
744,358
55,221
34,533
31,157
865,269
Unrestricted
funds
General
£
1,363		 Total
2024
£
10,555
10,555
Restricted
funds
£
-
310,517
-
-
310,517
Restricted
funds
£
-
376,704
-
-
376,704
Total
2024
£
1,363		 Total
2023
£
-
-
Total
2024
£
651,353
372,100
31,033
31,244
1,085,730
Total
2023
£
744,358
431,925
34,533
31,157
1,241,973
Total
2023
£
-

Page 21

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

6 Expenditure on charitable activities

Research and consultancy
Membership subscriptions
Events and publications
Research and consultancy
Membership subscriptions
Events and publications		 Direct costs
£
105,228
854
23,280
129,362
Direct costs
£
56,085
-
25,128
81,213		 Direct salaries
£
678,848
10,959
11,493
701,300
Direct salaries
£
599,356
10,365
16,257
625,978		 Support costs
£
337,334
43,328
21,664
402,326
Support costs
£
340,911
43,480
21,740
406,131		 Total
2024
£
1,121,410
55,141
56,437
1,232,988
Total
2023
£
996,352
53,845
63,125
1,113,322

Page 22

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

7 Analysis of support costs

Support costs allocated to charitable activities

Salaries
Marketing costs
Establishments costs
Insurance
Legal and professional
Administration costs
Finance charges
Staff training and recruitment
Board expenses/meeting costs
Depreciation
Auditors fee
Allocation of governance costs
Salaries
Marketing costs
Establishments costs
Insurance
Legal and professional
Administration costs
Finance charges
Staff training and recruitment
Board expenses/meeting costs
Depreciation
Auditors fee
Allocation of governance costs		 Research
and
consultancy
£
Membership
and
subscriptions
£
188,293
25,794
27,696
3,258
27,184
3,198
3,233
380
10,970
1,291
25,312
2,978
5,668
667
11,530
1,356
-
-
2,325
274
-
-
35,122
4,132
337,333
43,328
Research
and
consultancy
£
Membership
and
subscriptions
£
174,392
23,889
18,834
2,216
25,510
3,001
3,537
416
20,824
2,450
38,913
4,578
205
24
20,986
2,469
-
-
4,046
476
-
-
33,664
3,961
340,911
43,480		 Events and
publications
£
12,897
1,629
1,599
190
645
1,489
333
678
-
137
-
2,066
21,663
Events and
publications
£
11,945
1,107
1,500
208
1,225
2,290
12
1,235
-
238
-
1,980
21,740		 Governance
costs
£
30,952
-
-
-
-
-
-
-
267
-
10,000
(41,219)
-
Governance
costs
£
28,667
-
-
-
-
-
-
-
1,578
-
9,360
(39,605)
-		 Total
2024
£
257,936
32,583
31,981
3,803
12,906
29,779
6,668
13,564
267
2,736
10,000
101
402,324
Total
2023
£
238,893
22,157
30,011
4,161
24,499
45,781
241
24,690
1,578
4,760
9,360
-
406,131

Page 23

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

Basis of allocation

Method of allocation

Reference Method of allocation Salaries Estiame of time spent Marketing costs Estimate of usage (Net of any direct attribution) Property costs Estimate of usage All other costs Estimate of usage Depreciation Estimate of usage

8 Net (outgoing)/incoming resources

Net (outgoing)/incoming resources for the year include:

Operating leases - other assets
Audit fees
Other non-audit services
Depreciation of fixed assets		 2024
£
21,750
10,000
4,200
2,735		 2023
£
21,750
9,360
4,100
4,760

9 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

No trustees have received any reimbursed expenses or any other benefits from the charity during the year. During the previous year, the charity paid travel expenses to two trustees totalling £1,081.

10 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs		 2024
£
812,148
89,190
65,275
966,613		 2023
£
757,403
85,518
26,424
869,345

Page 24

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

Number of employees

The average number of employees during the year, calculated on the basis of full-time equivalent employees (FTE) and average headcount (HC) was as follows:

Employees 2024
HC
No
18
18		 2024
FTE
No
18
18		 2023
HC
No
18
18		 2023
FTE
No
17
17

The number of employees whose emoluments fell within the following bands was:

£60,001 - £70,000
£90,001 - £100,000		 2024
No
2
1		 2023
No
1
1

The total employee benefits of the key management personnel of the charity were £274,675 (2023 - £257,633).

11 Auditors' remuneration

Audit fee
All other non-audit services		 2024
£
10,000
4,200
14,200		 2023
£
9,360
4,100
13,460

Page 25

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

12 Taxation

The income and gains of the charity are exempt from taxation to the extent they are applied to its chartable activities.

13 Tangible fixed assets

Cost
At 1 July 2023
Additions
At 30 June 2024
Depreciation
At 1 July 2023
Charge for the year
At 30 June 2024
Net book value
At 30 June 2024
At 30 June 2023
14 Fixed asset investments
Shares in group undertakings and particip		 Leasehold
improvements
£
2,655
-
2,655
2,655
-
2,655
-
-
ating interests		 Office
equipment
£
3,735
-
3,735
3,606
100
3,706
29
129		 Computer
equipment
£
32,213
3,680
35,893
29,225
2,635
31,860
4,033
2,988
2024
£
2		 Total
£
38,603
3,680
42,283
35,486
2,735
38,221
4,062
3,117
2023
£
2

Shares in group undertakings and participating interests

Details of undertakings

Details of the investments in which the charity holds 20% or more of the nominal value of any class of share capital are as follows:

Country of Proportion of voting rights Principal
Undertaking incorporation Holding and shares held activity
2024
2023
Subsidiary undertakings
CLES European
Research Network
Limited		 England and Wales Ordinary
shares		 100%
100%		 Dormant

Page 26

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

The profit for the financial period of CLES European Research Network Limited was £Nil (2023: £Nil) and the aggregate amount of capital and reserves at the end of the period was £(2) (2023: £10,186).

The company was dormant in the current and prior year. The company was dissolved on 2 July 2024.

15 Debtors

15 Debtors
Trade debtors
Prepayments
Accrued income		 2024
£
214,445
18,595
168,323
401,363		 2023
£
174,725
17,276
117,047
309,048

16 Cash and cash equivalents

16 Cash and cash equivalents
Cash at bank
17 Creditors: amounts falling due within one year
Trade creditors
Other taxation and social security
Pension scheme creditor
Accruals
Deferred income
Deferred income at 1 July 2023
Resources deferred in the period
Deferred income at year end		 2024
£
143,020
2024
£
24,447
44,454
17,200
33,977
90,632
210,710
2024
£
84,623
6,009
90,632		 2023
£
371,033
2023
£
23,562
64,548
172,000
20,190
84,623
364,923
2023
£
73,743
10,880
84,623

18 Creditors: amounts falling due after one year

Other creditors

2024 £ 154,800

Page 27

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

19 Obligations under leases and hire purchase contracts

Operating lease commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

Land and buildings
Within one year
Between one and five years		 2024
£
27,954
99,392
127,346		 2023
£
7,806
29,526
37,332

20 Pension and other schemes

Greater Manchester Pension Fund

In respect of certain long-standing employees, the charity participates in the Greater Manchester Pension Fund (GMPF), an independently administered defined benefit scheme which is externally funded and contracted out by the State Earnings Related Pension Scheme. THE GMPF is a multi-employer scheme, and in accordance with the guidance issued by the Charity Commission the charity accounts for those contributions as if it were a defined contribution scheme.

It has done so because is unable to identify its share of the underlying assets and liabilities on a consistent and reasonable basis. Contributions are charged to the SOFA in the period in which they are payable. As there are now no active members of the GMPF, CLES has exited the scheme and the transfer of the liability has been agreed to repaid over ten years.

Employees are required to join a compulsory employer’s contributory pension. The employer’s contribution starts at the equivalent to 6% of their gross pa to the employees’ stakeholder pension scheme, a money purchase scheme.

All pension contributions are charged to the SOFA in the year in which they are payable.

Page 28

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

21 Funds
Unrestricted funds
General
General funds
Restricted funds
NIHR Public Health Research
Programme
Regional Action Plan
City REDI
Innovate
WMCA
Total restricted funds
Total funds
Unrestricted funds
General
General funds
Designated
Designated funds
Total unrestricted funds
Restricted
Scottish Government
secondment
Barrow Cadbury Trust -
Anchor Network
NIHR Public Health
Research Programme
Power to Change
LGIU
Alex Ferry Foundation
Regional Action Plan
Columbia Threadneedle
Total restricted funds		 Balance at 1
July 2023
£
Incoming
resources
£
Resources
expended
£
Balance at 30
June 2024
£
318,277
787,131
(926,486)
178,922
-
1,148
(1,148)
-
-
269,810
(269,810)
-
-
18,301
(18,301)
-
-
9,175
(9,175)
-
-
12,083
(8,068)
4,015
-
310,517
(306,502)
4,015
318,277
1,097,648
(1,232,988)
182,937
Balance at 1
July 2022
£
Incoming
resources
£
Resources
expended
£
Transfers
£
Balance at
30 June
2023
£
139,626
865,269
(736,618)
50,000
318,277
50,000
-
-
(50,000)
-
189,626
865,269
(736,618)
-
318,277
-
30,662
(30,662)
-
-
-
1,982
(1,982)
-
-
-
22,234
(22,234)
-
-
-
107,766
(107,766)
-
-
-
20,000
(20,000)
-
-
-
15,300
(15,300)
-
-
-
132,260
(132,260)
-
-
-
46,500
(46,500)
-
-
-
376,704
(376,704)
-
-		 Balance at 30
June 2024
£
178,922
-
-
-
-
4,015		 Balance at 30
June 2024
£
178,922
-
-
-
-
4,015
4,015
182,937
Balance at
30 June
2023
£
318,277
-
318,277
-
-
-
-
-
-
-
-
-

Page 29

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

Balance at 1
July 2022
£
Total funds
189,626
Description of Restricted Funds		 Incoming
resources
£
1,241,973		 Resources
expended
£
(1,113,322)		 Transfers
£
-		 Balance at
30 June
2023
£
318,277

Scottish Government

Secondment to the Scottish Government to support the development of Community Wealth Building in a Scottish context.

Power to Change

Funding directly via OSF as a legacy funding arrangement as they withdrew from the UK.

NIHR

Public Health research programme

LGIU

Future of economic development

Alex Ferry Foundation

Research into Freeports policy in England.

Columbia Threadneedle

Investigation into womens's experience of the economy in Leeds.

Regional Action Plan

Action plan for a new economy

Barrow Cadbury - Anchor Network

Network facilitation

City REDI

Local Policy Innovation Partnership (LPIP) Co-ordinating Hub is hosted by City-REDI at the University of Birmingham, doing place-based research.

Innovate

Oldham Green New Deal Delivery Partnership will focus on delivering the low carbon infrastructure Oldham needs to get to Net Zero

WMCA

Secondment to West Midlands Combined Authority to lead on community wealth building in the West Midlands

Page 30

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

22 Analysis of net assets between funds

Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities
Creditors over 1 year
Total net assets
Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities
Total net assets
23 Analysis of net funds
Cash at bank and in hand
Net debt
Cash at bank and in hand
Net debt		 Unrestricted
funds
General
£
4,062
2
540,368
(210,710)
(154,800)
178,922
At 1 July 2023
£
371,033
371,033
At 1 July 2022
£
287,329
287,329		 Restricted
funds
£
-
-
4,015
-
-
4,015
Unrestricted
funds
General
£
3,117
2
680,081
(364,923)
318,277
Financing cash
flows
£
(228,341)
(228,341)
Financing cash
flows
£
83,704
83,704		 Total funds at
30 June
2024
£
4,062
2
544,383
(210,710)
(154,800)
182,937
Total funds at
30 June
2023
£
3,117
2
680,081
(364,923)
318,277
At 30 June
2024
£
142,692
142,692
At 30 June
2023
£
371,033
371,033

24 Related party transactions

There were no related party transactions in the year.

Page 31

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

25 Prior year Statement of Financial Activities

25 Prior year Statement of Financial Activities
Income and Endowments from:
Charitable activities
Total income
Expenditure on:
Charitable activities
Total expenditure
Net income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
£
865,269
865,269
(736,618)
(736,618)
128,651
128,651
189,626
318,277		 Restricted
funds
£
376,704
376,704
(376,704)
(376,704)
-
-
-
-		 Total
2023
£
1,241,973
1,241,973
(1,113,322)
(1,113,322)
128,651
128,651
189,626
318,277

Page 32