## Only Connect UK Report and Financial Statements For the year ended 31 August 2022 Company number: 05848399 Registered charity number: 1116147 ## **Contents** |**Reference and Administrative Details ........................................................................................... 3**| |---| |**Board of Trustees’ report ............................................................................................................. 4**| |1.1
Objectives and Activities & Achievements and Performance ........................................... 4| |1.2
Financial Overview ............................................................................................................ 5| |1.3
Structure, governance and management ......................................................................... 6| |**Independent examiner’s report to the members of Only Connect UK ............................................ 9**| |**FINANCIAL STATEMENTS ............................................................................................................ 10**| ## **Reference and Administrative Details** Name: Only Connect UK, also using Only Connect ## **Board of Trustees** Danny Kruger MP, Chair Emma Kruger Charlotte Dryer Omolarah Jonah Catharine Dawkins ## **Company Secretary** Simon Pellew ## **Registered Office** 32 Cubitt Street London WC1X 0LR T: 0207 278 8939 ## E: **info@onlyconnectuk.org** Registered charity no. 1116147 Company limited by guarantee Company no. 05848399 ## **Examiner** Frances Wilde FCCA www.warnerwilde.co.uk 3 ## **Board of Trustees’ report** ## **1.1 Objectives and Activities & Achievements and Performance** ## **Objectives** Our vision is a more connected society where we all choose a crime-free life. Our mission is to enable people with experience of the criminal justice system to live flourishing lives. Only Connect works with Londoners aged 16 and over who are either serving custodial sentences, or who have concluded their sentence and are looking to grow new skills and rebuild their confidence. ## **Review of activities** Our performance has been good, although we want to see more people find jobs. We have worked with 377 people (5 women and 365 men); this compares with 340 last year. Of these, 295 engaged (defined as doing more than one session (78%). In general, people over 25 have a slightly higher engagement level (80%) compared to under 25s at 77%. Of the engaged people, our outcomes were: jobs 22% and education and training 19%. These are good results, but we want to improve and so we have developed a new model of working. The model has three elements: about 8 weeks before release we run a two day course about relationships called Love & Money. Then, for the following 8 weeks we provide weekly one-to-one keyworking. We finish just before release with another two day course on job search and job retention called On Point. We have now run Love & Money five times. It appears to be working very well – the prisoners enjoy it, and it seems to be making an impact on their relationships. The money element seems to be particularly popular as the participants have been wanting to do more of the “technicalities” e.g. types of loans. On Point has been totally rewritten and is currently being tested. We have run it once at Pentonville and plan to run it monthly at both Pentonville and Wormwood Scrubs. We have recruited and trained some volunteers to help run the courses, as they are quite demanding on staff time. Our next steps are: - Producing high quality workbooks for the two courses - Running L&M and On Point regularly at Pentonville and Wormwood Scrubs. - Training keyworkers to incorporate the materials and ideas of the courses into their keyworking, so that we achieve greater impact. The music project has worked with 47 members. We primarily offer training courses, but for some participants, these are not possible because of the risk of gang clashes, and so, for them, we offer some one-to-one sessions. We ran a superb Showcase, allowing some of the participants to present their work in November 2021. ## **Risks** The most substantial risk the charity faces is from the building. One of the trustees of our landlord (another charity) has recently died, and we are unsure whether the landlord will want to retain the building. The second risk is building users clashing. There are now three criminal justice charities using the building. Each brings in clients, and Only Connect has to assess the risk of clashes between participants belonging to antagonistic gangs. 4 The third risk is key staff leaving. We are very dependent on the managers, each of whom provides considerable expertise. It is hard to mitigate this risk. Fourth, the competition is quite intense in prisons. There are several good ETE prison charities all competing for referrals. Additionally, prisons are suffering from a huge backlog partly as a result of COVID and also of the barristers’ strike, and we face considerable competition in the community from a large company, Maximus, having a contract with probation to provide employment advice. Lastly, we are in the final year of CFO3. This will mean a loss of nearly £100,000 per annum once the contract ends. We may become increasingly reliant on fundraising in 2023-24 and this will raise the possibility of failing to generate sufficient income. ## **Financial Overview** ## **Income and Expenditure** We have finished the year (to 31 Aug) with a surplus of £57,902 (£26,000). This is satisfactory: it mainly is a result of the strong results from the building (a surplus of £16,000), compared to the previous year’s loss of £71,000. This surplus was achieved despite facing low numbers of people renting desk space in the Autumn of 2021 because of COVID. We have three main sources of income: rental from letting space (£193,200), statutory contracts (£125,500) and donations from trusts and individuals (£219,223). We are particularly grateful to the following trusts for their support: 29 May 1961 Ashcroft Basketmakers City of London Solicitors Company Field Family Trust Franklin Highway One Inner London Magistrates Jean Roberts John Armitage Marsh Oakdale Paul Stephenson Persula Rhiannon Trust Sheldon Trust Sir James Roll Sir Jules Thorn Souter St Andrew Holborn Tudor Trust 5 Our expenditure was £450,960, a rise of 13% from the previous year. This was caused by a rise in property costs, mainly rent, of 26%, and a rise in payroll of 8%. ## **Reserves** In the trustees’ view reserves should provide the charity with adequate financial stability and the means for it to meet its charitable objectives for the foreseeable future. We consider we should have at least 3 months reserves to cover operating costs, or, in the event of closure, sufficient funds to meet all the charity’s obligations, including redundancy (£23,314). The trustees do not consider closure is likely in the coming year. Our unrestricted reserves were £116,598 (equivalent to 4.7 months) and we have paid back £4,506 of our Bounceback loan. Given the uncertainties we face, as outlined in the Risks section, the trustees consider this level of reserves to be prudent. ## **Going concern** The trustees have considered the risks facing Only Connect for the coming year. They are confident that OC’s reasonable financial position means that we will be able to weather setbacks and so consider Only Connect is a going concern. ## **1.2 Structure, governance and management** ## **Formation and structure of the Charity** Only Connect UK was incorporated as a Company Limited by Guarantee on 16 June 2006 and registered as a Charity on 19 September 2006. Its objectives, as stated in its memorandum of association, are: ‘To advance the education and prospects of prisoners, ex-offenders and young people at risk of crime in London, and their families, through the provision of arts projects and productions, personal development and community activities. We have considered the Charity Commission’s guidance on public benefit, including the guidance Public benefit: running a charity (PB2). In particular, the Trustees consider how planned activities will contribute to the aims and objectives they have set, taking account of the available guidance on public benefit. The trustees are satisfied that Only Connect’s work should lead to a reduction in offending, and this benefits the public. ## **Governance** The management of the company is the responsibility of the trustees who are elected and co-opted under the terms of the Articles of Association. The Trustee board meets at least four times a year and monitors progress against goals and targets that flow from the strategic plan set by the Trustee board. Day to day management is delegated to the chief executive officer. This is in line with our stated delegations of authority; the Trustee board is involved in all material decisions including but not limited to: - pre-approval of annual budgets - signing of leases and other issues pertaining to property - strategic partnerships and significant donor relations 6 - substantial contracts and other agreements - appointment of auditors, solicitors and other advisors - appointment and remuneration of senior staff ## **Trustees responsibilities** The Trustees are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations. Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice. 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 charity and of the surplus or deficit of the charity for that period. In preparing these financial statements, the Trustees are required to: - select suitable accounting policies and then apply them consistently - make judgements and accounting estimates that are reasonable and prudent - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation. - observe the methods and principles in the Charities SORP; In so far as the trustees are aware: - there is no relevant audit information of which the charitable company’s auditor is unaware; and - the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity’s transactions and disclose with reasonable accuracy at any time the financial position of the Charity 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 Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Financial statements are published on the Charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the Charity’s website is the responsibility of the Trustees. The Trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein. 7 The charitable company qualifies as small under section 383 of The Companies Act 2006 and so no strategic report has been prepared, which is a requirement of medium and large companies under the Companies Act 2006 (Strategic Report and Director’s Report) Regulation 2013. ## **Policies adopted for the induction and training of trustees** All new trustees are taken through a trustee induction process carried out by the Chair of the board and as part of this they are introduced to their responsibilities and the key company policies. ## **Pay policy for senior staff** Senior management (directors and above) are remunerated in line with sector benchmarks (reviewed annually) and all senior staff appointments, pay and award changes are approved by the board of trustees. ## **Risk management** The trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems and procedures are in place to control and mitigate the charitable company’s exposure to the major risks. The major risks facing the charity have been outlined above. Signed on behalf of the Board of Trustees Danny Kruger Only Connect UK Dated: 9 Feb 2023 8 ONLY CONNECT UK INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF ONLY CONNECT UK I report to lh& tru8tg08 on rrry exarnknalkin of th& Inandal 8latsm8nts of Onty Conn•ct UK (thg charity) for th• yo41 ond•d 31 August 2022. R••pon•lbllltlo• and of r•port A8 ihe trustees of lh• charity land al80 hs dlrectors *Jr lh¥ purposes of company law) you ar¢ respon81ble fof the preparatton of tho flnandal 8tsteThnl8 In accordancg wlth th8 requlren*nl$ of Iha Con¥>an￿8 Act 2008 Ith& 2006 Act). Havlng $1tb6fi•d my$•ff that th• fflnandal 81ateThfftnts tsf th¢ r*arlty ar• Th)t required to bè iudllod undar Part 18 of th• 2C#J6 Act and are eliglbbe for Indtpendenl exanlnatk)n. I report In respoct of my gxamlnalon of the charity'8 finandg18tal8m8nt8 carrfed out undef sedon 145 of tho Charitles Acl 2011 Ith• 2011 Acil. In carrying out my examinallon I have follow•d ￿ th• wpltat4• DlreclhJn8 gtth by th• Chgffti Comm18Blon under 8ocUon 14515) Ibl of the 2011 A¢L Indo￿nd•nt oxamln•rf• •tatom•nt Slnc8 th• ch8rlty'8 gros8 Income ex￿•ded £250.(D) yow 8xamlnor must bo a mmb•r ol o boty Ilstsd In don 145 ofthe 2011 Acl. l ¢onfimi th8t l am qUalif￿d to undertakg tho oxamlngtlon b8cauu l am a mèn*•r of the AB8odalknn ol Chartereil Certlfiad Accountants. whkh 18 one of tho Ilstod bodl&8. I have compl&ted my examlnelkjn. I confrm Ihat ￿ mg#•rn ha￿ Con￿ lo nry all￿1￿)n In CA)nngcllon wllh th• oxomln8tkJn glvlng me cau80 lo bollw that In any matorlal r88PorA'. accountlng r8rords w¢r• not In ofthe charity ai r•qulr•d by M¢lfion 388 oftho 2006 Act", or tho finandal 8tatements do not g¢cord vAth those records., or the fflnandal 8talenwn18 do not cofflpty vAth the a¢¢ounln9 raquknoments Of 396 of th• 2￿6 Act other than any requlrement that the ac•)￿ts ￿ • truo and fak vltsw 18 not a mfjttw wn8lder8d ai part of an Indèp•nd•nl •x8mln8Yon'. or Ihe flnandal 8tatements hav• not b••n pr•par•d In Accordance wtth th• m•thod8 and prfnclple8 of tho statement of R•comrMnded Pradc8 k)r arKI reportkng by charflles appllcabb8 to chartlk98 preparfng the* a¢¢ount$ In acc4>rdanrA8 wllh the Flnan¢lal Raportlng St8ndgrd appllrAbl8 In tho UK and R•publl¢ of Iraland IFRS 102). I have no ¢on¢•m$ ant1 ha¥8 com acro•8 no olher mattorn kn conn¢c*k*n wilh the examlngtlon to %thlch attenlk)n should bo drawn In Ihls report In order to enablo a proper under8tsndlng of the Ilnandal 8lalemen18 to b• reathod. F J Wlld• FCCA MBA DChA Wamar Wldo 4 Marfgold Drf Bl81oy Surrty GU24 9SF D8tgd'. loLS ## **ONLY CONNECT UK** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 AUGUST 2022**_ |**Current financial year**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2022**
**Notes**
**£**
**£**
**Income and endowments from:**
Donations and legacies
**3**
145,310
73,913
Charitable activities
**4**
288,630
-
Other income
**5**
1,009
-
**Total income**
434,949
73,913
**Expenditure on:**
Raising funds
**6**
207,325
138
Charitable activities
**7**
177,486
66,011
**Total expenditure**
384,811
66,149
**Net income for the year/**
**Net movement in funds**
50,138
7,764
Fund balances at 1 September 2021
66,460
18,832
**Fund balances at 31 August 2022**
116,598
26,596|**Total**
**2022**
**£**
219,223
288,630
1,009
508,862
207,463
243,497
450,960
57,902
85,292
143,194|**Total**
**2021**
**£**
143,121
242,758
39,221
425,100
162,161
236,958
399,119
25,981
59,311
85,292| |---|---|---| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. - 10 - ## **ONLY CONNECT UK** ## **STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 AUGUST 2022**_ ## **Prior financial year** |**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**Notes**
**£**
**£**
**Income and endowments from:**
Donations and legacies
**3**
96,371
46,750
Charitable activities
**4**
242,758
-
Other income
**5**
39,221
-
**Total income**
378,350
46,750
**Expenditure on:**
Raising funds
**6**
162,161
-
Charitable activities
**7**
205,148
31,810
**Total expenditure**
367,309
31,810
Gross transfers between funds
6,108
(6,108)
**Net income for the year/**
**Net movement in funds**
17,149
8,832
Fund balances at 1 September 2020
49,311
10,000
**Fund balances at 31 August 2021**
66,460
18,832|**Total**
**2021**
**£**
143,121
242,758
39,221
425,100
162,161
236,958
399,119
-
25,981
59,311
85,292| |---|---| - 11 - ## **ONLY CONNECT UK** ## **BALANCE SHEET** ## _**AS AT 31 AUGUST 2022**_ |**Notes**
**Fixed assets**
Tangible assets
**11**
**Current assets**
Debtors
**12**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**14**
Net current assets
**Total assets less current liabilities**
**Creditors: amounts falling due after**
**more than one year**
**15**
**Net assets**
**Income funds**
Restricted funds
**17**
Unrestricted funds|**2022**
**£**
34,633
165,733
200,366
(25,206)|**£**
1,367
175,160
176,527
(33,333)
143,194
26,596
116,598
143,194|**2021**
**£**
41,676
100,739
142,415
(17,279)|**£**
1,823
125,136
126,959
(41,667)
85,292
18,832
66,460
85,292| |---|---|---|---|---| The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 August 2022. The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements. The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. 9 Feb 2023 The financial statements were approved by the Trustees on ......................... .............................. Danny Kruger **Trustee** ## **Company Registration No. 05848399** - 12 - ## **ONLY CONNECT UK** ## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 AUGUST 2022**_ |**Notes**
**Cash flows from operating activities**
Cash generated from operations
**21**
**Investing activities**
Purchase of tangible fixed assets
Proceeds on disposal of tangible fixed
assets
**Net cash used in investing activities**
**Financing activities**
Repayment of bank loans
**Net cash (used in)/generated from**
**financing activities**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2022**
**£**
-
-
(3,704)|**£**
68,698
-
(3,704)
64,994
100,739
165,733|**2021**
**£**
(645)
309
50,000|**£**
2,995
(336)
50,000
52,659
48,080
100,739| |---|---|---|---|---| - 13 - ## **ONLY CONNECT UK** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 AUGUST 2022**_ ## **1 Accounting policies** ## **Charity information** Only Connect UK is a private company limited by guarantee incorporated in England and Wales. The registered office is 32 Cubitt Street, London, WC1X 0LR. ## **1.1 Accounting convention** The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below. ## **1.2 Going concern** At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. ## **1.3 Charitable funds** Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. ## **1.4 Income** Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. - 14 - ## **ONLY CONNECT UK** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2022**_ ## **1 Accounting policies** **(Continued)** ## **1.5 Expenditure** Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use. Expenditure is recognised once there is a legal or constructive obligation to make a payment to the third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated to the applicable expenditure headings. Fundraising costs are those incurred in seeking voluntary contributions and include the costs of disseminating information in support of the charitable activities. Support costs are those costs incurred directly in support of expenditure on the objects of the company and overhead costs that cannot be easily allocated to particular cost centres. Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements. ## **1.6 Tangible fixed assets** Assets costing more than £1,000 are capitalised. Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Fixtures and fittings 25% reducing balance The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities . ## **1.7 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. ## **1.8 Financial instruments** The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. - 15 - ## **ONLY CONNECT UK** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2022**_ ## **1 Accounting policies** ## **(Continued)** ## _**Basic financial assets**_ Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. ## _**Basic financial liabilities**_ Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. ## _**Derecognition of financial liabilities**_ Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled. ## **1.9 Employee benefits** The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. ## **1.10 Retirement benefits** Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. ## **2 Critical accounting estimates and judgements** In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. - 16 - ## **ONLY CONNECT UK** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2022**_ ## **3 Donations and legacies** |**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2022**
**£**
**£**
Donations and gifts
10,860
-
Grants and Trusts
income
134,150
73,913
Donated goods and
services
300
-
145,310
73,913|**Total**Unrestricted
Restricted
funds
funds
**2022**
2021
2021
**£**
£
£
10,860
8,971
-
208,063
87,400
46,750
300
-
-
219,223
96,371
46,750|Total
2021
£
8,971
134,150
-
143,121| |---|---|---| ## **4 Charitable activities** ||**Charitable**|
**Charitable**| |---|---|---| ||**Income**|
**Income**| ||**2022**|
**2021**| ||**£**|
**£**| |Services provided under contract|89,487|
177,543| |Rental income|199,143|
65,215| ||288,630|
242,758| |**Other income**||| ||**Unrestricted**|Unrestricted| ||**funds**|funds| ||**2022**|2021| ||**£**|£| |Other income|1,009|39,221| ## **5 Other income** Other Income in 2021 includes Intercompany loan written back £7,063 and Security deposit written back of £3,100. - 17 - ## **ONLY CONNECT UK** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2022**_ ## **6 Raising funds** |**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2022**
**£**
**£**
Fundraising and publicity
Seeking donations, grants and legacies
27
-
Staff costs
31,051
-
Support costs
1,076
138
Fundraising and publicity
32,154
138
Trading costs
Staff costs
49,619
-
Support costs
125,552
-
Trading costs
175,171
-
207,325
138|**Total**Unrestricted
funds
**2022**
2021
**£**
£
27
-
31,051
24,370
1,241
501
32,292
24,871
49,619
43,260
125,552
94,030
175,171
137,290
207,463
162,161| |---|---| - 18 - ## **ONLY CONNECT UK** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2022**_ ## **7 Charitable activities** |**Operations Administration**
**& governance**
**2022**
**2022**
**£**
**£**
Staff costs
182,595
26,104
Depreciation and
impairment
-
456
182,595
26,560
Share of support
costs (see note 8)
19,204
9,660
Share of
governance costs
(see note 8)
306
5,172
202,105
41,392
**Analysis by**
**fund**
Unrestricted
funds
136,094
41,392
Restricted funds
66,011
-
202,105
41,392|**Total**
**2022**
**Operations Administration**
**& governance**
**2021**
**2021**
**£**
**£**
**£**
208,699
179,681
22,206
456
-
411
209,155
179,681
22,617
28,864
9,730
22,197
5,478
2,733
-
243,497
192,144
44,814
177,486
160,334
44,814
66,011
31,810
-
243,497
192,144
44,814|**Total**
**2021**
**£**
201,887
411
202,298
31,927
2,733
236,958
205,148
31,810
236,958| |---|---|---| - 19 - ## **ONLY CONNECT UK** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2022**_ ## **8 Support costs** |**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Marketing and IT
12,115
-
Office costs
33,868
-
Staff costs
4,045
-
Rent and rates
77,370
-
Other costs
9,934
-
Training and support
10,908
-
Insurance
7,333
-
Legal and professional
-
2,207
Other governance costs
-
1,129
Independent Examiner
-
2,226
155,573
5,562
Analysed between
Fundraising
1,214
27
Trading
125,495
57
Charitable activities
28,864
5,478
155,573
5,562|**2022**
**£**
12,115
33,868
4,045
77,370
9,934
10,908
7,333
2,207
1,129
2,226
161,135
1,241
125,552
34,342
161,135|Support
costs
Governance
costs
£
£
14,088
-
33,579
-
1,025
-
62,179
-
4,883
-
6,436
-
4,268
-
-
-
-
711
-
2,022
126,458
2,733
501
-
94,030
-
31,927
2,733
126,458
2,733|2021
£
14,088
33,579
1,025
62,179
4,883
6,436
4,268
-
711
2,022
129,191
501
94,030
34,660
129,191| |---|---|---|---| Governance costs includes payments to the Independent Examiner of £ 2,226 (2021- £ 2,022 ) for accounts preparation and independent examination. Note that insurance and Independent Examiner fees were included in office costs and rent & rates respectively in the signed 2021 accounts but have been split out in 2022, as above. ## **9 Trustees** None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. (2021: None). ## **10 Employees** The average monthly number of employees during the year was: |**2022**|**2021**| |---|---| |**Number**|**Number**| |10|11| - 20 - ## **ONLY CONNECT UK** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2022**_ |**10**
**Employees**
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**(Continued)**
**2022**
**2021**
**£**
**£**
261,785
248,258
20,815
14,289
6,769
6,970
289,369
269,517| |---|---| Key Management Personnel comprises the CEO role. The total employee benefit of the Key Management Personnel was £55,215 (2021: £57,418). There were no employees whose annual remuneration was more than £60,000. ## **11 Tangible fixed assets** |**Cost**
At 1 September 2021
At 31 August 2022
**Depreciation and impairment**
At 1 September 2021
Depreciation charged in the year
At 31 August 2022
**Carrying amount**
At 31 August 2022
At 31 August 2021
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments and accrued income|**Fixtures and fittings**
**£**
15,285
15,285
13,462
456
13,918
1,367
1,823
**2022**
**2021**
**£**
**£**
4,251
34,373
10,196
7,243
20,186
60
34,633
41,676| |---|---| ## **12 Debtors** - 21 - ## **ONLY CONNECT UK** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2022**_ ## **13 Loans and overdrafts** |Bank loans
Payable within one year
Payable after one year|**2022**
**£**
46,296
12,963
33,333|**2021**
**£**
50,000
8,333
41,667| |---|---|---| O n 1 December 2020 Only Connect took out an unsecured £50,000 Bounce Back Loan for 72 months at a fixed interest rate of 2.5%. For the first 12 months the interest was met by the Government and the repayments started on 1 January 2022 with a repayment rate of £833.33 per month. ## **14 Creditors: amounts falling due within one year** |**Notes**
Bank loans
**13**
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income
**15**
**Creditors: amounts falling due after more than one year**
**Notes**
Bank loans
**13**|**2022**
**£**
12,963
7,343
(1,197)
1,559
4,538
25,206
**2022**
**£**
33,333|**2021**
**£**
8,333
3,427
(1,835)
2,847
4,507
17,279
**2021**
**£**
41,667| |---|---|---| ## **16 Retirement benefit schemes** ## **Defined contribution schemes** The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund. The charge to profit or loss in respect of defined contribution schemes was £6,769 (2021 - £6,970). - 22 - ## **ONLY CONNECT UK** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 AUGUST 2022**_ ## **17 Restricted funds** The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes: |||**Movement in funds**|**Movement in funds**|||**Movement in funds**|**Movement in funds**|| |---|---|---|---|---|---|---|---|---| ||**Balance at**|**Incoming**|**Resources**|**Transfers**|**Balance at**|**Incoming**|**Resources**|**Balance at**| ||**1 September**|**resources**|**expended**||**1 September**|**resources**|**expended**|**31 August**| ||**2020**||||**2021**|||**2022**| ||**£**|**£**|**£**|**£**|**£**|**£**|**£**|**£**| |Operations|10,000|-|-|-|10,000|-|-|10,000| |Music|-|24,250|(15,842)|(1,608)|6,800|8,913|(12,936)|2,777| |Relationships|-|10,000|(5,755)|(3,000)|1,245|25,000|(22,426)|3,819| |Young People|-|2,500|(2,500)|-|-|20,000|(10,000)|10,000| |Young People (Geog)|-|10,000|(7,713)|(1,500)|787|-|(787)|-| |Geographical|-|-|-|-|-|20,000|(20,000)|-| ||10,000|46,750|(31,810)|(6,108)|18,832|73,913|(66,149)|26,596| Operations – our work with prisoners and released prisoners. Music – our music provision which includes a 6 week course, 2 day courses and one-to-one support from Tim Titsworth, the Music Co-ordinator. Relationships – we have written a course, Love & Money, which is designed to strengthen a prisoner’s relationships and tackle their attitudes to money, with a particular focus on the emotional impact of money. We have delivered this course twice in HMP Pentonville and are planning regular courses in prisons once COVID restrictions are lifted. Young People – about half our Members are under 26. We use this restricted funding to pay for our work in YOI Feltham and keyworking with this age group. Geographical Restriction – some funding is restricted to particularly areas, such as West London or parts of Camden and Islington. - 23 - ## **ONLY CONNECT UK** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2022**_ |**18**
**Analysis of net assets between funds**
**Unrestricted**
**funds**
**Restricted**
**funds**
**2022**
**2022**
**£**
**£**
Fund balances at 31
August 2022 are
represented by:
Tangible assets
1,367
-
Current assets/
(liabilities)
148,564
26,596
Long term liabilities
(33,333)
-
116,598
26,596|**Total**Unrestricted
funds
Restricted
funds
**2022**
2021
2021
**£**
£
£
1,367
1,823
-
175,160
106,304
18,832
(33,333)
(41,667)
-
143,194
66,460
18,832|Total
2021
£
1,823
125,136
(41,667)
85,292| |---|---|---| ## **19 Operating lease commitments** At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows: |Within one year
**20**
**Related party transactions**
There were no related party transactions in the year.
**21**
**Cash generated from operations**
Surplus for the year
Adjustments for:
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease/(increase) in debtors
Increase/(decrease) in creditors
**Cash generated from operations**|**2022**
**£**
52,500
**2022**
**£**
57,902
456
7,043
3,297
68,698|**2021**
**£**
35,000
**2021**
**£**
25,981
411
(3,125)
(20,272)
2,995| |---|---|---| - 24 - ## **ONLY CONNECT UK** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2022**_ |**22**|**Analysis of changes in net funds**|||| |---|---|---|---|---| |||**At 1 September**|**Cash flows**|**At 31 August**| |||**2021**||**2022**| |||**£**|**£**|**£**| ||Cash at bank and in hand|100,739|64,994|165,733| ||Loans falling due within one year|(8,333)|(4,630)|(12,963)| ||Loans falling due after more than one year|(41,667)|8,334|(33,333)| |||50,739|68,698|119,437| - 25 -