## Only Connect UK Report and Financial Statements
For the year ended 31 August 2023
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|
|**Financial Overview ....................................................................................................................... 5**|
|1.2
Structure, governance and management ......................................................................... 6|
|**Independent examiner’s report to the members of Only Connect UK ............................................ 9**|
|**Financial Statements .................................................................................................................. 10**|
Only Connect UK annual report and financial statements to 31 August 2023
Page 3
## **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 (resigned 28 October 2022) Charles Trotman (appointed 24 June 2023) Dionne Trotman (appointed 24 July 2023)
## **Company Secretary**
Simon Pellew
## **Registered Office**
32 Cubitt Street London WC1X 0LR
## **Examiner**
Frances Wilde FCCA
www.warnerwilde.co.uk
T: 0207 278 8939
## E: **info@onlyconnectuk.org**
Registered charity no. 1116147
Company limited by guarantee Company no. 05848399
Only Connect UK annual report and financial statements to 31 August 2023
Trustees’ report
Page 4
## **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 18 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**
Only Connect has worked with 444 people in the year, a considerable increase from 2021-22 of 377. Of these, 54% were under 26. About a third of Members achieve a job or training; so is a slight decrease from the previous year and may be a result of staff turnover.
Over the last two years we have been developing two courses to prepare prisoners for release. One course, Love & Money, was run seven times in Feltham, Pentonville and Wormwood Scrubs. It is highly effective at getting the men to discuss issues, such as relationships or their feelings about money, in ways that are unusually frank. This provides a stronger basis for the keyworking. The second course, On Point, is an adaption of OC’s employability course. We have introduced a session on workplace relationships because we see so many released prisoners find work, but then losing their jobs because they cannot cope with being given instructions by a boss.
We have also been improving our evaluation by conducting a longitudinal survey (3 surveys about 10 weeks apart) into the Members self-efficacy around relationships, money, health, use of time, motivation and reoffending. The survey has shown that all participants improve over their keyworking, but the improvement is least over money. As a result, we have introduced new training for the keyworkers in this area.
The music project continues to run well although we have some difficult in filling our courses. This is partly because we need to be careful to ensure that people from rival gangs are not on the same course, as this may lead to violence.
## **Risks**
The most substantial risk the charity faces is from the building. The trustees of our landlord, another charity, have said they would like to increase the rent. We have argued this would cause us serious financial difficulties, and, for now, the discussions are in abeyance.
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.
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.
Lastly, our statutory contracts have ceased and we are more reliant on trust fundraising. This is increasing the level of uncertainty over income.
Only Connect UK annual report and financial statements to 31 August 2023
Trustees’ report
Page 5
## **Financial Overview**
## **Income and Expenditure**
Only Connect had three main sources of income: rental income, statutory grants and donations from trusts. The rental income was £215,603, an increase of £15,000 from the previous year (£199,143). The rental income covers the direct building costs (£199,085).
OC had three statutory contracts: CFO3 (£72,499), Mayor’s Academy (£96,476) and EQUIP (£20,000). The CFO3 was scheduled to end on 31 Aug 2023, but was extended to 31 Dec 2023. The Mayor’s Academy finished on 31 August and EQUIP finished on 31 Jan 2023.
Fundraising from trusts generated £158,350. We would like to thank the following trusts for their generous support:
1772 - Debtors' Relief Funds Charity Belpech Charitable Trust Chapman Charitable Trust Chesterhill Charitable Trust Limited Highway One Trust Inner London Magistrates' Court Poor Box Lord Barnby's Foundation Souter Charitable Trust St Andrew Holborn And Stafford's Charity The 29th May 1961 Charity The Austin And Hope Pilkington Trust The D'Oyly Carte Charitable Trust The Dischma Charitable Trust The Gosling Foundation Limited The Hobson Charity Limited The Marsh Charitable Trust The Peter Stebbings Memorial Charity The Sackler Trust The Sheldon Trust The Sir James Roll Charitable Trust The Ten-Percent Foundation The Tudor Trust The Vintners' Foundation The William Allen Young Charitable Trust
We also received £6,000 from individuals which is very much appreciated.
The expenditure on Operations (the work with prisoners and ex-prisoners, including the music project) was £255,000 on payroll, and £16,600 on other costs. Expenditure on fundraising was £47,500 and administration was £46,500.
Overall, Only Connect made a small surplus of £6,434 (previous year £57,902).
## **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
Only Connect UK annual report and financial statements to 31 August 2023
Trustees’ report
Page 6
to cover operating costs, or, in the event of closure, sufficient funds to meet all the charity’s obligations, including redundancy (£27,530). The trustees do not consider closure is likely in the coming year.
Our unrestricted reserves were £135,523 (£116,598) (equivalent to 3 months) and we have paid back £8,333 of our Bounceback loan, leaving a debt of £15,741. 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 financial position is sufficient to 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
- 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.
Only Connect UK annual report and financial statements to 31 August 2023
Trustees’ report
Page 7
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.
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
Only Connect UK annual report and financial statements to 31 August 2023
Trustees’ report
Page 8
Danny Kruger Only Connect UK 25 January 2024
Only Connect UK annual report and financial statements to 31 August 2023
## **ONLY CONNECT UK**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF ONLY CONNECT UK**
I report to the trustees on my examination of the financial statements of Only Connect UK (the charity) for the year ended 31 August 2023.
## **Responsibilities and basis of report**
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
## **Independent examiner's statement**
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- 1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
- 4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
## **F J Wilde FCCA MBA DChA**
Warner Wilde 4 Marigold Drive Bisley Surrey GU24 9SF
Dated: 29 January 2024
- 9 -
## **ONLY CONNECT UK**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 AUGUST 2023**_
|**Current financial year**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2023**
**2023**
**Notes**
**£**
**£**
**Income and endowments from:**
Donations and legacies
**3**
132,255
149,476
Charitable activities
**4**
288,102
-
Other income
**5**
843
-
**Total income**
421,200
149,476
**Expenditure on:**
Raising funds
**6**
246,587
-
Charitable activities
**7**
160,688
156,967
**Total expenditure**
407,275
156,967
**Net income/(expenditure) for the year/**
**Net movement in funds**
13,925
(7,491)
Fund balances at 1 September 2022
116,598
26,596
**Fund balances at 31 August 2023**
130,523
19,105|**Total**
**2023**
**£**
281,731
288,102
843
570,676
246,587
317,655
564,242
6,434
143,194
149,628|**Total**
**2022**
**£**
219,223
288,630
1,009
508,862
207,463
243,497
450,960
57,902
85,292
143,194|
|---|---|---|
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 2023**_
## **Prior 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/(expenditure) 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|
|---|---|
- 11 -
## **ONLY CONNECT UK**
## **BALANCE SHEET**
## _**AS AT 31 AUGUST 2023**_
||||**2023**||**2022**||
|---|---|---|---|---|---|---|
||**Notes**|**£**|**£**|**£**|**£**|**£**|
|**Fixed assets**|||||||
|Tangible assets|**11**|||1,000||1,367|
|**Current assets**|||||||
|Debtors|**12**|48,281|48,281||34,633||
|Cash at bank and in hand||156,221|156,221||165,733||
|||204,502|204,502||200,366||
|**Creditors: amounts falling due within**|||||||
|**one year**|**14**|(30,874)|||(25,206)||
|Net current assets||||173,628||175,160|
|**Total assets less current liabilities**||||174,628||176,527|
|**Creditors: amounts falling due after**|||||||
|**more than one year**|**15**|||(25,000)||(33,333)|
|**Net assets**||||149,628||143,194|
|**Income funds**|||||||
|Restricted funds|**17**|||19,105||26,596|
|Unrestricted funds||||130,523||116,598|
|||||149,628||143,194|
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 2023.
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.
The financial statements were approved by the Trustees on ......................... 26 January 2024
.............................. Danny Kruger **Trustee**
## **Company Registration No. 05848399**
- 12 -
## **ONLY CONNECT UK**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 AUGUST 2023**_
|**Notes**
**Cash flows from operating activities**
Cash (absorbed by)/generated from
operations
**21**
**Net cash used in investing activities**
**Financing activities**
Repayment of bank loans
**Net cash used in financing activities**
**Net (decrease)/increase in cash and cash**
**equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2023**
**£**
(5,555)|**£**
(3,957)
-
(5,555)
(9,512)
165,733
156,221|**2022**
**£**
(3,704)|**£**
68,698
-
(3,704)
64,994
100,739
165,733|
|---|---|---|---|---|
- 13 -
## **ONLY CONNECT UK**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 AUGUST 2023**_
## **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 2023**_
## **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 2023**_
## **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 2023**_
## **3 Donations and legacies**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2023**
**2023**
**£**
**£**
Donations and gifts
6,905
-
Grants and Trusts
income
125,350
149,476
Donated goods and
services
-
-
132,255
149,476|**Total**Unrestricted
Restricted
funds
funds
**2023**
2022
2022
**£**
£
£
6,905
10,860
-
274,826
134,150
73,913
-
300
-
281,731
145,310
73,913|Total
2022
£
10,860
208,063
300
219,223|
|---|---|---|
## **4 Charitable activities**
||**Charitable**|
**Charitable**|
|---|---|---|
||**Income**|
**Income**|
||**2023**|
**2022**|
||**£**|
**£**|
|Services provided under contract|72,499|
89,487|
|Rental income|215,603|
199,143|
||288,102|
288,630|
|**Other income**|||
||**Unrestricted**|Unrestricted|
||**funds**|funds|
||**2023**|2022|
||**£**|£|
|Other income|843|1,009|
## **5 Other income**
- 17 -
## **ONLY CONNECT UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2023**_
## **6 Raising funds**
|**Unrestricted**Unrestricted
Restricted
**funds**
funds
funds
**2023**
2022
2022
**£**
£
£
Fundraising and publicity
Seeking donations, grants and legacies
98
27
-
Staff costs
42,136
31,051
-
Support costs
5,268
1,076
138
Fundraising and publicity
47,502
32,154
138
Trading costs
Staff costs
55,691
49,619
-
Support costs
143,394
125,552
-
Trading costs
199,085
175,171
-
246,587
207,325
138|Total
2022
£
27
31,051
1,241
32,292
49,619
125,552
175,171
207,463|
|---|---|
- 18 -
## **ONLY CONNECT UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2023**_
## **7 Charitable activities**
|**Operations Administration**
**& governance**
**2023**
**2023**
**£**
**£**
Staff costs
254,566
31,895
Depreciation and
impairment
-
367
254,566
32,262
Share of support
costs (see note 8)
16,610
4,043
Share of
governance costs
(see note 8)
-
10,174
271,176
46,479
**Analysis by**
**fund**
Unrestricted
funds
114,209
46,479
Restricted funds
156,967
-
271,176
46,479|**Total**
**2023**
**Operations Administration**
**& governance**
**2022**
**2022**
**£**
**£**
**£**
286,461
182,595
26,104
367
-
456
286,828
182,595
26,560
20,653
19,204
9,660
10,174
306
5,172
317,655
202,105
41,392
160,688
136,094
41,392
156,967
66,011
-
317,655
202,105
41,392|**Total**
**2022**
**£**
208,699
456
209,155
28,864
5,478
243,497
177,486
66,011
243,497|
|---|---|---|
- 19 -
## **ONLY CONNECT UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2023**_
## **8 Support costs**
|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Marketing and IT
9,960
-
Office costs
44,153
-
Staff costs
6,083
-
Rent and rates
90,107
-
Other costs
2,637
-
Training and support
9,037
-
Insurance
7,123
-
Legal and professional
-
6,872
Other governance costs
-
1,395
Independent Examiner
-
2,220
169,100
10,487
Analysed between
Fundraising
5,268
98
Trading
143,179
215
Charitable activities
20,653
10,174
169,100
10,487|**2023**
**£**
9,960
44,153
6,083
90,107
2,637
9,037
7,123
6,872
1,395
2,220
179,587
5,366
143,394
30,827
179,587|Support
costs
Governance
costs
£
£
12,115
-
33,868
-
4,045
-
77,370
-
9,934
-
10,908
-
7,333
-
-
2,207
-
1,129
-
2,226
155,573
5,562
1,214
27
125,495
57
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|
|---|---|---|---|
Governance costs includes payment to the Independent Examiner of £ 2,220 (2022- £ 2,226 ) for accounts preparation and independent examination.
## **9 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. (2022: None).
## **10 Employees**
The average monthly number of employees during the year was:
|**2023**|**2022**|
|---|---|
|**Number**|**Number**|
|11|10|
- 20 -
## **ONLY CONNECT UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2023**_
|**10**
**Employees**
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**(Continued)**
**2023**
**2022**
**£**
**£**
347,445
261,785
28,088
20,815
8,755
6,769
384,288
289,369|
|---|---|
Key Management Personnel comprises the CEO role. The total employee benefit of the Key Management Personnel was £57,810 (2022: £55,215).
There were no employees whose annual remuneration was more than £60,000.
## **11 Tangible fixed assets**
|**Cost**
At 1 September 2022
At 31 August 2023
**Depreciation and impairment**
At 1 September 2022
At 31 August 2023
**Carrying amount**
At 31 August 2023
At 31 August 2022
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments and accrued income|**Fixtures and fittings**
**£**
15,285
15,285
14,285
14,285
1,000
1,367
**2023**
**2022**
**£**
**£**
3,712
4,251
196
10,196
44,373
20,186
48,281
34,633|
|---|---|
## **12 Debtors**
- 21 -
## **ONLY CONNECT UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2023**_
## **13 Loans and overdrafts**
|Bank loans
Payable within one year
Payable after one year|**2023**
**£**
40,741
15,741
25,000|**2022**
**£**
46,296
12,963
33,333|
|---|---|---|
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**|**2023**
**£**
15,741
7,774
629
1,636
5,094
30,874
**2023**
**£**
25,000|**2022**
**£**
12,963
7,343
(1,197)
1,559
4,538
25,206
**2022**
**£**
33,333|
|---|---|---|
## **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 £8,755 (2022 - £6,769).
- 22 -
## **ONLY CONNECT UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2023**_
## **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**|**Balance at**|**Incoming**|**Resources**|**Balance at**|
||**1**|**September**|**resources**|**expended**|**1 September**|**resources**|**expended**|**31 August**|
|||**2021**|||**2022**|||**2023**|
|||**£**|**£**|**£**|**£**|**£**|**£**|**£**|
|Operations||10,000|-|-|10,000|96,476|(106,476)|-|
|Music||6,800|8,913|(12,936)|2,777|3,000|(5,777)|-|
|Relationships||1,245|25,000|(22,426)|3,819|10,000|(13,819)|-|
|Young|||||||||
|People||-|20,000|(10,000)|10,000|20,000|(16,500)|13,500|
|Young|||||||||
|People|||||||||
|(Geog)||787|-|(787)|-|-|-|-|
|Geographical||-|20,000|(20,000)|-|20,000|(14,395)|5,605|
|||18,832|73,913|(66,149)|26,596|149,476|(156,967)|19,105|
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 2023**_
|**18**
**Analysis of net assets between funds**
**Unrestricted**
**funds**
**Restricted**
**funds**
**2023**
**2023**
**£**
**£**
Fund balances at 31
August 2023 are
represented by:
Tangible assets
1,000
-
Current assets/
(liabilities)
154,523
19,105
Long term liabilities
(25,000)
-
130,523
19,105|**Total**Unrestricted
funds
Restricted
funds
**2023**
2022
2022
**£**
£
£
1,000
1,367
-
173,628
148,564
26,596
(25,000)
(33,333)
-
149,628
116,598
26,596|Total
2022
£
1,367
175,160
(33,333)
143,194|
|---|---|---|
## **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:
(Increase)/decrease in debtors
Increase in creditors
**Cash (absorbed by)/generated from operations**|**2023**
**£**
120,000
**2023**
**£**
6,434
367
(13,648)
2,890
(3,957)|**2022**
**£**
52,500
**2022**
**£**
57,902
456
7,043
3,297
68,698|
|---|---|---|
- 24 -
## **ONLY CONNECT UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2023**_
|**22**|**Analysis of changes in net funds**||||
|---|---|---|---|---|
|||**At 1 September**|**Cash flows**|**At 31 August**|
|||**2022**||**2023**|
|||**£**|**£**|**£**|
||Cash at bank and in hand|165,733|(9,512)|156,221|
||Loans falling due within one year|(12,963)|(2,778)|(15,741)|
||Loans falling due after more than one year|(33,333)|8,333|(25,000)|
|||119,437|(3,957)|115,480|
- 25 -