HEART OF THE CITY OF LONDON LIMITED
HEARTO
CITY
HEART OF THE CITY ANNUAL REPORT
for the year ending 31 March 2023
Company Name:
Heart of the City of London Limited
Charity number:
1117212
Company number: 5973126

HEART OF THE CITY OF LONDON LIMITED 31 March 2023
Contents
Reference and Administration Details
Trustees, Report
Charity Governance Code
Objectives and Activities for the Public Benefit
Financial Review
16
The Financial Statements
18
Independent Auditorfs Report
20
Statement of Financial Activities for the year ended 31 March 2023
24
Balance Sheet as at 31 March 2023
25
Statement of Cash Flows at 31 March 2023
26
Notes to the Financial Statements
28

HEART OF THE CITY OF LONDON LIMITED
Reference and Administration Details
Charity Name:
Heart of the City of London Limited
Charity Number..
1117212
Company Number:
5973126
Registered Address..
Atlantic House. 21 Holborn Viaduct. London. EC1A 2FG
Operational Address:
Innovation Growth DepartmenL Guildhall. London EC2V 7HH
Company Secretary:
Hogan Lovells, Atlantic House, Holborn Viaduct, London, EC1A 2FG
Banker:
Lloyds TSB Bank plc. City Office, PO Box 72, Bailey Drive, Gillingham,
Kent ME8 OL5
Auditor:
Crowe U.K. LLP. 55 Ludgate Hill, London, EC4M 7JW
Trustees:
Keith Bottomley (appointed 5 May 20221
Fiona Clark
Rob Elder
Rachel Engel (Vice-chairl
Taraneh Farzaneh {appointed 14 September 2022)
Joanne Filbin (appointed 14 September 2022)
Giles French (until 6 July 20221
Chris Hayward (until 5 May 2022)
Martin Powell
Grace Rawnsley (until 10 February 20231
Sushil Saluja {Chair)
Suzanne 5catliffe (appointed 14 September 2022)
Nick Turner
Arjan van den Berkmortel (until 3 May 20221
Carmen Whitelock
Director..
Maggie Berry
Treasurer:
City of London Corporation

HEART OF THE CITY OF LONDON LIMITED
Trustee Details
Keith Bottomley is an elected Member of the City of London Corporation and is widely involved in
leading on youth, education, climate action. environment and broader policy agendas. He is Deputy
Chairman ofthe City of London Corporation's Policy and Resources Committee, Chairman of its Port
Health and Environment Committee. and Chairman of Communications and Corporate Affairs
Committee. Keith is passionate about advancing the interests of young people and about skills and
education. He is a Governor of three Bermondsey Academies as well as a Governor at the City of
London School and chairs Partnership for Young London which advances and influences London,
Regional and central government on youth policy. Keith is also a member of the Board of the Green
Finance Institute and Chairman of the City of London BIDS Strategic Partnership, as well as a Trustee
of Heart of the City. A Member of the City of London Gresham Committee and Director of the
Central Foundation Schools of London and Trustee of Housing for the Homeless Central Fund. As
a Chartered Banker and former Director of Communications at Natwest Group he has a great deal
of experience of working at a senior level in the City of London's dynamic financial services industry.
Fiona Clark as a graduate ofthe Heart ofthe Citys Foundation Programme. and now as an Alumni
Member, Fiona brings her personal experience and perspective as an SME to the Board ofTrustees.
As Practice Director at David Miller Architects IDMAI she has put responsible business at the heart
of their practice. By supporting the communities where they work, attrarting diverse new talent to
the construction industry and artively committing to Net Zero, DMA shows that size is not a barrier
and that SMES can make a real difference. As a result DMA and their team have thrived whilst
enjoying helping others. Fiona sits on the boards of Westminster Business Council and The Fitzrovia
Partnership BID who also encourage responsible business. She is particularly proud that DMA'S
social value creation, especially their work experience programme, has been recognised with a
prestigious City of London Lord Mayorfs Dragon Award and a Westminster City Council Lion Award.
Rob Elder is the Bank of England's Agent for Greater Londor). since May 2018. He joined the bank
in 1998, and for twelve years supported the Monetary Policy Committee as an economist and then
senior manager. Between 2010 and 2012 he represented the UK on the board of the International
Monetary Fund in Washington DC. When he returned, he worked in our press office, and most
recently, supported our Financial Policy Committee by running a team monitoring developments in
the UK banking sector. Between 1990 and 1998 Rob worked a5 an economist and forecaster at HM
Treasury, British Telecom and Manchester University. He also taught English injapan for a year. Rob
studied economics at ManChe￿er University{firstdegree) and Warwick University Imasterfs degree).
Rachel Engel has been the Head of the Macquarie Group Foundation in the EMEA {Europe Middle
East and Africa) region for the pasttwelve years managing the grants programme in region. the 50
Anniversary Award, COVID response fund, staff matching and employee engagement across 14+
offices. Rachel came from IBM where she led the Employee Volunteering programme the EMEA
region. She has spent the past 25 years working in various roles in both the charity and corporate
sectors focusing on shared value and corporate community investment. She was a founder member
of Pride@Macquarie in EMEA and continuesto be an active member on the steering group. Previous
roles include AOL UK, East London Business Alliance and Bridges.org (tech for good non-profit based
in South Africa). Rachel began her career in the arts (theatre production) and is currently Vice Chair
of the arts and homelessness charity Streetwise Opera. She is also 3 trustee for both the Heart of
the City and the Sudborough Foundation.
th

HEART OF THE CITY OF LONDON LIMITED
Taraneh Farzaneh leads on Government Relations for Barclays. focusing on major poliry, legislative
and reputational developments, and issues such as prudential regulation, sustainability and
D&1. She has spent most of her career focusing on SME policy and until recently headed up
Government Relations for Business and Corporate Banking. She also managed Barclays, regional
Comms and Public Affairs team. Taraneh represents Barclays in discussions with policymakers and
politicians at international and national levels and advises the firm's senior management on the
potential impact of legislation and public policy. This involves designing and executing campaigns
focused and working with stakeholders across government. In addition, Taraneh is the wellbeing
lead for her 600+ person function. Taraneh joined Barclays in 2010 from Burson-marsteller, a
political consultancy where she worked in a variety of accounts across multiple sectors. She started
her career working in the UK Parliament as a researcher to Glenda Jackson MP.
Joanne Filbin co-founded Globacap, a UK regulated fintech driving the evolution of capital markets
by making processes frictionless through automation. The business now operates globally,
deploying tech for large institutions such asjohannesburg Stock Exchange. The platform has hosted
over 60 primary placements, settled £135m secondary liquidity, and digitised over £IObn of private
securities. Prior to Globacap, Joanne independently advised private equity funds, portfolio
companies on operational improvement and profitability enhancement and has held a number of
senior roles in transformation at large corporates. Joanne trained as a Chartered Accountant at
KPMG, where she spent seven years in both Audit and Transaction Advisory. She also holds an MBA
from London Business School.
Giles French is Chief Executive of the Association of Foreign Banks. He was previously External
Affairs Director at the City of London Corporation, an organisation that promotes UK based financial
services. Giles provided strategic advice to senior politicians and officials. He led on developing
strategic relationships with politicians. regulators. diplomats and business leaders on a wide range
of public policy issues in the UK, Europe and internationally. In addition, he engaged with priority
markets around the world to promote trade and investment flows with the UK financial and
professional services sector. He is an Associate Adviser to the British Foreign Policy Group.
Chris Hayward is Chairman of the Poliry and Resources Committee at the City of London
Corporation. Chris's business experience extends to Executive and Non-Executive Director roles in
the property, infrastructure, planning and strategic communications sectors, providing a strong
connection to the issues and concerns of City business. He has served on the boards of a number
of companies over the past 30 years. He is currently a non-executive Director at JBP Associates and
Hayward Properties and a consultant to the global firm of WSP. International business experience
extends to a role on the advisory board of the Sichuan Business Association including recent visits
to China. Chris also served for eight years on the Council of the Institute of Administrative
Management culminating in two years carrying out international graduation ceremonies as its
Chairman. Outside the City he is a former deacon of the Incorporation of Bonnetmakers and Dyers
of Glasgow and maintains links with Northern Ireland on behalf of the City, supportins charities in
and around Londonderry. In 2019 Chris was admitted as an Honorary Bencher ofThe InnerTemple.

HEART OF THE CITY OF LONDON LIMITED
Martin Powell is Group sustainability Dirertor at AXA leading the sustainability outcomes acros5
the group. He previously held roles with Siemens in London and New York in Urban Development
and sustainability. He has been involved in building strategies and developing pathways for
organizations to achieve ESG improvement as well as roles in energy purchasing and Green Funds.
Prior to this, he was the Deputy Mayor of London for Energy & Environment to the former Mayor of
London. Boris Johnson. responsible for policy in water. waste. air quality. energy. climate change
mitigation and adaptation and biodiversity. He was also the Executive Director for the design and
delivery of the Citys environmental programmes. As Managing Directorof Cambridge Management
& Research he worked for the Energy Saving Trust and the Institute for Sustainability and was also
Special Advisor to the C40 Cities Group chaired by Michael R Bloomberg during his time as Mayor
of New York. An Engineer. he built his career working with organizations as a consultant to structure
their projects and programs. He has two published books - -Better Cities, Better Life" and "Smart
Cities - Cities in the Digital Age" and his Yhe Climate City, from Wiley publishing which involves
contributions from 30 experts in the sustainable city sector.
Grace Rawnsley is Director of Sustainability and Net Zero Transition at the Port of London
Authority. She was previouslythe Programme Director forthe Cityof London Corporation's Climate
Action Strategy. She led the organisation's work on climate action, both in reducing emissions and
meeting their Net Zero targets and in increasing the City of London's resilience to extreme weather
events. Grace joined the City of London Corporation in 2010 and had experience in leading projects
and developing strategies in community engagement, chanse and transformation, and responsible
business. Grace served as the City of London Corporation's Head of Responsible Business from
2017-2019. Before joining the City of London Corporation, Grace worked in biodiversity
conservation
heading up programmes both in the UK and abroad. Grace is passionate about
engaging people in environmental issues that affect their everyday lives. Her early career focLJsed
on engaging under-represented groups and young people on conservation issues- and She uses
these experiences and learning to frame her work and insights. Grace acted as the main point of
contact between the City of London Corporation and the Heart of the City - working together to
ensure the successful delivery of the Climate for SMES programme.
Suzanne Scatliffe is Global Sustainability Dirertor at AXA XL. where she leads the global
sustainability Strategy and programs. Suzanne has 17 years, experience in CSR and sustainability
roles in the insurance, technology, and education sertors, and is a certified Sustainability
Practitioner IIEMAI and Fellow of the Institute of Corporate Responsibility and Sustainability IICRSI.
She served as Chair of the Board of Directors of the Insurance Industry Charitable Foundation IIICFI
UK from 2018-2021 and volunteers as a Heart of the City Mentor. helping small businesses in the
UK develop CSR and Sustainability initiatives.
Sushil Saluja is Chairman of Heart of the City- He is also a governor of Greenwich University and a
trustee of the British Council, where he chairs the commercial board. He is a senior business leader
and advisor. focused on international business. technology-led transformation and education. With
over 30 years. prior experience at Accenture. Sushil has led business unit5 in EM EA (based in London)
and Asia Pacific {based in Hong Kong) and launched FinTech accelerators in Hong Kong and Dubai.
Sushil graduated in engineering from Pembroke College, Cambridge. He was previously a trustee of
the Princes, Teaching Institute (PTII and on the board of TheCityUK.

HEART OF THE CITY OF LONDON LIMITED
Nick Turner Strategist advisor and futures thinker. Nick is the founder and Managing Partner of
Stratforma. an advisory boutique that offers counsel to ser)ior decision makers at multi-national
organisations. Nick is the product of Silicon Valley and Wall Street, having served as a Managing
Director and head of Strategy at Morgan Stanley. after a number of years spent in the high-
technology industry in California. As a strategy consultant. Nick was the Co-President of scenario
planning and experiential learning pioneers Global Business Network IGBN} and a Senior Partner of
Michael Porterfs Monitor Group. Nick is a visiting lecturer in strategy, scenario planning and
innovation at leading business schools, including London ILBSI, Imperial College and INSEAD. Nick
is also a trustee of the educational charity, Ambition Institute. He previously served as a board
member of the Mayor of London's Enterprise Panel ILEP},The London Skills and Employment Board
ILSEBI and chaired the London Employer Coalition (LECI.
Arjan van den Berkmortel was previously the Head of Business Banking for the London Region at
HSBC. He joined HSBC in 1996 and held a number of high-profile positions within the organisation
in London, Hong Kong, Paris and the Middle East. He has extensive cross-border banking experience
in trade finance, transaction and corporate banking. He served as Chief Executive Officer for HSBC'S
operations in the Czech Republic.
Carmen Whitelock brings over 15years of digital marketin& brand and corporate communications
experience to our board. Currently the Digital Marketing Lead at Cynergy Bank. Carmen has
designed and delivered award-winning websites, apps, brand and digital marketing strategies for
organisations including Cazenove Capital. M&S. RSA Insurance Group. Arup and Save the Children
UK. Carmen continues to build and maintain a broad network of industry experts and influencers.

HEART OF THE CITY OF LONDON LIMITED
Council of Members
Name
Title
Organisation
The Rt Hon. Lord Mayor of the
City of London
Governor Andrew Bailev
Sushil Saluja
Nicola Atkinson
lappointed 4 August 20231
Co-Pre5ident
Heart ofthe City
Co-President
Heart ofthe City
Heart ofthe City
Chair
COO. UK and Ireland
Deutsche Bank AG
Zakir Bokhari
Vice-chair and the London City Senior
Partner
Deloitte UK
Edward Braham
luntil 13 May 20221
Susan Bright
(until 2 December 20221
lan Caswell
Senior Partner
Freshfields Bruckhaus Deringer
Regional Managing Partner- UK and
Africa
Managing Director
Chairman of the Council
Hogan Lovells
Sapphire Systems PLC
Queen Mary University
Tim Clement-lones CBE
Michael Davison
lappointed 2 December 20221
Georgia Dawson
Deputy CEO
Hogan Lovells
Senior Partner
Freshfields Bruckhaus Deringer
Melissa Fogarty
Joint Head of Corporate. London
Partner
Sustainability Director
Clifford Chance
Jo Goddard
Prem Goyal
lappointed l February 20231
Peter Harrison
Green and Good Consulting
Alderman. Portsoken
City of London Corporation
CEO
Schroders PLC
Chris Hayward
lappointed 5 May 20221
Tom Heylen
Chairman of Policy and Resources
City of London Corporation
UK Clients and Sertors Partner
Executive Board Member and Head of
People
DLA Piper UK LLP
Laura Hintorb
PWC
Tiina Lee
luntil 4 August 20231
CEO. UKI
Deutsche Bank AG
Irbvestment Bank Operating Officer
CEEMEA / Head ofthe UKChief
Executive Office
Andrea5 Luginbuehl
UBSGroupAG
Catherine McGuinness
luntil 5 May 2022
Sarah Mullally
Chair of Policy and Resources
City of London Corporation
Bishop of London
CEO for EMEA and Head of
Commodities and Global Markets
EMEA
CEO for EMEA and Head of
Commodities and Global Markets
EMEA
Church of England
Pavl Plewman
Macquarie Group Limited
Charles Randall
(until 31 May 20221
Macquarie Group Limited
Giles Shilso
Chair
Bridge House Estates
This list reflects companies and job titles when individuals were in posr as Council members.

HEART OF THE CITY OF LONDON LIMITED
Trustees. Report
Structure. Governance and Management
The annual report and audited financial statements have been prepared in accordance with the
provisions applicable to companies entitled to the small companies. exemption, including the
exemption from preparing a strategic report. Part of our objectives includes ensuring our
governance framework is robust and enables us to achieve our mission. This section explains how
we achieve this.
Governing Document
Heart of the Cityis a company limited byguarantee, incorporated on 20 October 2006 and registered
as a charity on 11 December 2006. The company was established under a Memorandum of
Association which established the objects and powers of the charitable company and is governed
under its Articles of Association. In 2010, we combined both documents and updated them in
accordance with the Companies Act 2006. In the event of the company being wound up, members
are required to contribute an amount not exceeding £1 O. In May 2015, we updated our charitable
objetts. to better reflect our mission. and our Memorandum and Articles of Association. in line with
the Charities Act 2011.
Recruitment and Appointment of the Board
The directors of the company I'the board) are also charity trustees for the purposes of charity law
and under the CoMpan￿S articles are known as the trustees.
Selection process for Board Members
Recruitment of trustees is carried out through open advertising. Appointments are made to ensure
that any gaps in skills required at board level are filled. Appointment is undertaken through a vote
of the existing trustees and a resolution reflerting the vote is signed by the Chair. The City of London
Corporation ICOLCI nominates one trustee.
Board Induction and Training
As part of their selection and subsequent induction. our potentiallnew board members are invited
to meet our director. chair and other trustees to talk through the role and responsibilities of
trustees, the work of the charity and its governance structures. New board members are given the
business plan, recent annual report and other information including promotional materials and
funder reports. Board members are invited to attend the charitys events and workshops and
receive updates on the charitys work in the directorfs report which is presented as a key agenda
item at each board meeting.
Management framework
In addition to its board, Heart of the City has a council of members. The members ofthe board and
the council are all members ofthe company. The council- which comprises the Lord Mayor and the
Governor of the Bank of England (both acting as co-Presidents). the Chair of the COLC'S Policy and
Resources Committee and senior business leaders- meets once every six months and its member5
attend Heart of the City events. The council members areambassadors forthe charity championing,
through their engagement, the growth of effertive responsible business practice within their own
companies and within member businesses.

HEART OF THE CITY OF LONDON LIMITED
The board meets quarterly and is responsible for determining Heart of the Citys major strategic,
financial and other policies. The board has 11 members from a variety of professional backgrounds
relevant to the work of the charity. Day-to-day responsibility for the provision of the services rests
with the director and her team. The director is responsible for ensuring that the charity delivers the
specified programme and that key performance indicators are met. She also undertakes individual
supervision and appraisal of the team. ensuring that they continue to develop their skills and
working practices in line with good practice and the Heart of the City business plan.
Conflicts of Interest
The trustees receive no remuneration. No trustee expenses were claimed during the year. The
board has revised and adopted the charity's memorandum and articles of association to reflect the
provisions of the Companies Act 2006 relating to the trustees, duties to avoid situations in which
they have or can have a direct or indirect interest that conflicts, or may possibly conflict, with the
interests of the charity. Trustees are asked to declare any conflicts of interest at the start of each
board meeting.
Relationship with the City of London Corporation
The director and her team are housed by the COLC and, in addition to core funding, receive
considerable practical support from the COLC in the shape of human resources advice, financial
processing and other administration. Heart of the City staff are employed bythe COLC and seconded
by the COLC to the charity.
Health and safety, employment policy and internal and financial audit are integral parts of the
administration provided by the COLC. The terms of a service level agreement between COLC and
Heart of the City help the trustees to satisfy themselves that their own responsibilities in these areas
are met.
Rlsk Management
In this financial year, the board continued to review and update its risk register. Identified risks fell
broadly into five categories.. strategic. financial, operational (programmes, customers, personnel,
premises. volunteers), governance (including legal and reputation). In addition. in line with ISA240.
trustees have considered the specific risk offraud to the charity for both finances and assets.
The board has established systems or procedures to mitigate these as far as possible. Whilst these
procedures can mitigate major risks, the board is aware that systems can only provide reasonable
and not absolute assurance that key risks have been adequately identified and managed. The
internal control procedures are designed to support progress towards achieving the charitys
mission, to maintain expenditure within the limits of available income and to safeguard the
companys assets.
An annual budget is set each year in line with the goals and targets of the business plan to manage
financial risk. Performance against this budget is reviewed monthly by the director and quarterly
management accounts are produced. In addition, regular re-forecasting exercises are undertaken
to address changes in the economic environment and respond to changes in income expectations.
A set of key performance indicators has been established to focus on the major targets of the
business plan covering both financial and non-financial measures.

HEART OF THE CITY OF LONDON LIMITED
Key risks currently identified by Heart of the City and mitigating strategies are a5 follows..
SME (small and medium sized enterprise) recruitment and engagement- the cost of living crisis
and the energy crisis mean that the recruitment of 5MEs onto our responsible business and
climate programme is challenging along with maintaining good engagement of existing SME
members. We work to continually update and adapt our recruitment messaging to attract new
members and have developed programmes whereby corporates bring groups of their SME
suppliers to us. We continue to embed online delivery enabling us to offer our programmes to
SMES throughout London and more broadly across the UK. We have continued to work closely
with a network of recruitment partners who assist us in reaching new SMES and we ensure that
all of our programme content remains relevant and useful for our SME members.
Long term funding- following the outcome of the external review of our work in 2020, trustees
agreed to invest in a longer-term income diversification strategy taking into account that Heart
of the Citys funding from City Bridge Trust was coming to a planned end in July 2023. A key
element of this strategy has been team related including hiring a dirertor in July 2021 with
commercial business development experience aswell as the appointment injune 2022 of a new
role forthe charity: a head of external engagementand business development. This role's remit
is to lead our income diversification work including securing corporate sponsorships, increasing
SME membership as well as identifying additional grant funding opportunities for the charity.
On going changes in key funding relationship
in March 2021. we agreed a four-year
partnership to deliver the small business element of COLC'S climate action strategy which
provides security of income until 2024-25. The partnership agreement with COLC changed our
relationship to a delivery-based model with funding depending on achieving programme
delivery targets. To mitigate the impart of this. we have a board sub-committee to oversee and
support the team in delivering the climate programme and in managingthe changing nature of
our relationship with COLC.
Loss of key staff - as with any small organisation, the loss of one or key staff can have a
major impact. To mitigate this risk. we have personal development plans for all staff and use a
contact management database to share and record contacts and preserve relationships should
any staff member leave.
External attack on IT systems- the charity is aware of the risks involved in an external attack on
IT systems including possible loss of confidential information. third party action under dats
protection regulations, loss of core data necessary for the charity to operate. fraudulent Use of
our resources and reputational damage. In June 2023, the charity achieved Cyber Essentials
Cyber Essentials Plus Certification. All office funrtions are facilitated by cloud-based services
such as Office 365, SharePoint and Salesforce. Business critical documents are saved on
SharePoint which is provided by the COLC. There is ongoing monitoring of systems and security
by system suppliers and COLC IT as well as annual reviews of insurance cover and the business
continuity plan.

HEART OF THE CITY OF LONDON LIMITED
Fundraising
Section 162a of the Charities Art 2011 requires charities to make a statement regarding fundraising
activities. Although we do not undertake fundraising from the general public, the legislation defines
fundraising as "soliciting or otherwise procuring money or other propety for charitable purposes."
Such amounts receivable are presented in our accounts as Income- Donotions and include grants.
In relation to the above we confirm that there is no involvement of professional fund-raisers or third
parties. The day-to-day management of all income generation is delegated to the executive team,
who are accountable to the trustees. Any solicitations would be managed internally. The charity is
not bound by any undertaking to any regulatory scheme and the charity does not consider it
necessary to comply with anyvoluntary fundraising codes of practice.
We have received no complaints in relation to fundraising activities. Our terms of employment
require staff to behave reasonably at all times,. as we do not approach individuals for funds we do
not have a particular reference to fundraising activities nor do we consider it necessary to design
specific procedures to monitor such activities.
Charity Governance Code
The trustees are supportive of the CharityGovernance Code and its aim to assist in the development
of high standards of governance throughout the charity sector. In 2018 the trustees reviewed the
Code and the charitys current prattice. The charitys governance was found to be in line with the
key areas of the Code. The trustees have continued to art in line with the Code in 2022-23 and will
keep the Code under rewew in 2023-24.
Objectives and Activities for the Public Benefit
Our vision is that every business can be a force for good.
Our purpose is to galvanise company leaders to do good business.
Our mission: We inspire and empower business leaders to build successful companies that
make a positive difference to people, places and the planet. Heart of the City does this through
equipping leaders with tools and practical advice and connecting them with professionals
working in mature businesses who provide coaching supporL
Our Charitable Objects
The board of trustees confirms that it has referred to the Charity Commission's general guidance
on public benefit when reviewing Heart of the Ciws aims and objectives and in planning future
activities. Consequently. the trustees consider that Heart of the City operates to benefit the general
public and satisfies the public benefit test.

HEART OF THE CITY OF LONDON LIMITED
Heart of the City promotes the voluntary sector for the benefit of the public by..
making best practice in corporate social responsibility easily accessible to companies through
peer-to-peer knowledge sharing in order to effectively promote ethical standards and increase
positive impart on communities and the environmenL
promoting charitable giving by companies and organisations and encouraging individuals to
participate in voluntary work. providing education and training on subjects relevant to the
efficiency of the voluntary sector and assisting in the provision of financial, technical and other
resources to the voluntary sector.. and
such other charitable objects as the trustees shall consider appropriate.
Our objectives in 2022-23 which enabled us to fulfil our charitable objects were..
Supporting SME members with responsible business
Supporting SME members with climate action
Creating a business development plan to support our income diversification targets
The actions we took in 2021-22 to meet these objertives are set out below:
1. Supporting SME members with responsible business
Each SME on our Foundations for Responsible Business {FfRBI programme has their own individual
aims and priorities. We recognise that each company is unique and we don't push members to do
the same thing but we provide a wide range of content. workshops, surgeries and engagement
opportunities to best suit time poor SMES. During 2022-23 the most popular learning events.
including workshops, surgery sessions and lunch and learns, were focused on net zero and how to
get started on their carbon redurtion journey. Our most popular masterclass looked at how to
develop a responsible business strategy and our most popular 'members only lunch and learn
looked at how the menopause and perimenopause affects individuals, teams and companies.
During 2022-23 we recruited 62 new businesses to the programme 12021-22: 81, retained 22 as
ongoing members 12021-22: 391 and had 11 alumni members 12021-22: 81. In terms of paying
members who didn't renew, we lost 24 ongoing members {2021-22.' 291 and we lost two alumni
members12021-22'. 31. The main reason given for r)on-renewal was that they no longer needed the
service or that they had got whatthey needed from the service154%1,- other reasons provided were
that did not have enough time to focus on the programme or had not engaged in the previous yearfs
programme. 92% of members are small and medium sized enterprises11-250 employees) and 75%
are in our target group of 10-250 employees.
New SME member numbers were low in 2021-22 due to the ongoing impact of Covid and the
economic environment which meant many businesses were still focussed on economic survival
rather than investing in responsible business activities. During 2022-23 we have seen an increase
in recruitment numbers. As our City Bridge Trust funding was coming to an end in mid-2023, we
had a focussed push on promoting the free places on the programme for SMES in our target
boroughs which helped us to recruit 37 new members. We also saw an increase in new members
as large companies started to provide free places on our programme for SMES within their supply
chains- this resulted in a further 22 new members and we had three new paying SME members.

HEART OF THE CITY OF LONDON LIMITED
2. Supporting SME members with climate action
In March 2021. we agreed a four-year funding relationship with the COLC. COLC have set a targetfor
the Square Mile to achieve net zero carbon emissions by 2040. The role of small businesses is
essential in achieving this. We agreed to work together to support SMES to measure their carbon
footprints and to develop and implement net zero action plans. We developed a training
programme called 'Climate for SMEs= 4 steps to action. along with an accompanying climate action
toolkit that is free to access for any SME. By March 2023, 125 SMES had registered for the training
programme Iby March 2022.. 69) and thetoolkit had been downloaded by916 businesses (by March
2022: 534).
Whilst we have always included a focus on environment in our FfRB programme. developing our
specific focus on climate action has opened up new opportunities for Heart of the City and has
helped us to support more SMES with net zero including SMES in the supply chain of large
corporates. For example, from March to Ortober 2022, we ran an eight-month net zero mentoring
programme for 39 SME suppliers tothe propetycompanyGrosvenorto supportthem in measuring
their carbon footprint and in submitting a science-based target. This bespoke support programme
has generated interest and we are further developing this training offer in 2023-24.
3. Creating a business development plan to support our income diversification targets
As part of the charitys longer-term income diversification strategy. in June 2022, a head of external
engagement and bLJsiness development was appointed. This is a new role for the charity which,
working alongside the director. is responsible for leading our income diversification work. During
2022-23, some progress has been made and the charity secured sponsorship for SME suppliers
from Freshfields, Pwc, Schroders, Siemens and UBSto participate in our FfRB programme. However,
our income generation goals for 2022-23 were not met and the charity raised 53% of its external
income target outside of core funding. As well as reviewing the charitys costs in delivering
programming and understanding the staff resources required. a comprehensive business
development plan has been created with the following four income generation goals for 2023-24
onwards:
Goal 1 Secure a large multi-annual funding contract replacing revenue previously received
from City Bridge Trust
Goal 2 - Secure private sector investment
Goal 3- Secure bespoke consultancylworkshops
Goal 4- Increase number of SMES paying for the programme
Challenges
The economic environment- the cost living and enew crisis- has impacted our ability to recruit
and engage new SME members Iboth paid-for and free placesl- along with a reduced access to
traditional engagement routes such as in-person events. Building on activity in 2021-22, we
continue to develop new approaches and methods including continuously improving our
communications and messaging continuing to host open access online'lunch & learn, webinars
and developing partnerships with business representation and sector bodies such as business
improvement districts in London.

HEART OF THE CITY OF LONDON LIMITED
We continue to build relationships across the wider COLC team to ensure we're in touch with all
departments in the Corporation who have dirert contact with SMES in the Square Mile. SME
recruitment in the Square Mile remains top of the agenda to ensure success in delivering on
our COLC KPIS. The lack of a central database of SME contarts in the City is a challenge for Heart
ofthe City and other departments looking to provide supportto SMES based in the Square Mile.
The move in 2021 to delivering two programmes- FfRB and climate - put increased pressure
on the team from both a delivery and, especially, from a marketing and outreach perspettive.
This pressure has remained the same during 2022-23. The team have needed to more actively
promote our programmes to reach new SMES, requiring digital media engagement, Heart of
the City trialling messaging to understand what lands best with SMES and building meaningful
relationships with recruitment partners who will share information on our behalf.
Our net zero work has proved to be more'technical, than our broader FfRB programme and as
such we have needed more specialist support from ambassadors when delivering workshops
or surgery sessions. Identifying ambassadors who can provide hands-on support to SMES
around reviewing carbon data has been challenging.
During 2022-23, we worked hard to achieve our income diversification goals this included
making approaches to large corporations to ask them to sponsor their existing SM E suppliers
onto the FfRB programme. Whilst there has been interest in providing this type of support to a
companys supply chain. iys often a new area and internal budgets need to be identified and
secured. And income from SME memberships- both new and renewals- has been challenging
to secure.
Future Plans
The focus over the coming years will be the successful implementation of our business development
plan to SUPPOrt income diversification Strategy of broadening the income base for Heart of the City
beyond 2024-25. Trustees prioritised business development skills in the recruitment of the
permanent director, whojoined the team injuly 2021, and agreed to invest some of the reserves in
the development of income generation skills within the team. This included the appointment of a
head of external engagement and business development role in June 2022. This is a new post for
the charity.
As stated in the business development plan. income generation activity will be focused on achieving
four goals..
Securing a large multi-annual funding contract to replace revenue previously received from
City Bridge Trust
securing private sector investment
Securing bespoke consultancylworkshops
Increasing the number of SMES paying for the programme
14

HEART OF THE CITY OF LONDON LIMITED
Success has already been seen in Heart of the City being awarded a £1.018.857 grant from the UK
Shared Prosperity Fund IUKSPFI as part of London's Supporting Local Business investment priority.
As the lead partner, Heart of the City will be working in partnership with MSDUK, a leading supplier
diversity organisation, to deliver Minority Business Matters from 1 May 2023 to 31 March 2025. The
programme will deliver solutions to challenges faced by London's ethnic minority SMES and
freelancers when accessing public and private sectors business opportunities. It will support ethnic
minority businesses in becoming supplier-ready,- in embedding social value best practices into their
business, products and services; in connecting to procurement opportunities and the development
of a direttory of ethnic minority creative and cultural freelancers.
We will also continue to focus on securing corporate sponsorship - encouraging large companies to
fund their SME suppliers to participate in one of our existing programmes or to fund us in delivering
a bespoke programme. The team have developed a pipeline of interest for this type of delivery and
are working to secure more corporate sponsorships during 202>24.
We will continue to deliver engaging and relevant content within our FfRB programme and we will
further develop our climate offer erbsuringwe provide our SMES with the most up-to-date resource5
that are suitable for SMES. Alongside this, further work will be undertaken to enhance our online
delivery, maximising our use of Thinkific and reaching businesses in new geographies.
A major ambition remains for us to raise our profile so that more businesses- both large and small
know about the positive impact of responsible business. make use of ourfree resources and come
to us when theywant access to paid-fortraining support. Wewould like Heart of the Cityto be front
of mind whenever the public and private secrors think about responsible business support for SM Es.

HEART OF THE CITY OF LONDON LIMITED
Financial Review
Income and Expenditure
Our total income was £260,805 as opposed to £982.329 for 2021-22. Income included funding from
the City Bridge Trust, fees for SME memberships and income received from corporates sponsoring
SMES onto our programmes.The chariws currentgrant from CoLCof£800.000 over fouryears from
2021-22 to 2024-25 was recognised in full in 2021-22. As such, the net deficit for the period was
£276,425 compared to a net surplus of £517,247 for 2021-22.
Expenditure of £537,230 compares with £465,082 for 2021-22- this difference in expenditure is due
to having hired an additional team member and costs for software being increased by external
providers but it was in line with the planned budget for 2022-23.
Reserves Policy
The charitable companys policy is not to accumulate restricted reseNes as Its two main funders
provide resources for the furtherance of the charitys activities, and not for sums to be held in
reserve other than for wind-down and contingency operational purposes. Unrestricted funds may
be carried forward to be spent in future years in line with charitable activities.
The charity held a total of £690,606 of unrestricted reserves at 31 March 2023 which includes
£400,000 of accrued grants receivable from the COLC of £200,000 per annum through to 2024-25.
This is above our minimum target level of six months of operating costs1£240.0001. However, in
view of the current economic environment and our focus on income diversification. the trustees
reviewed our reserves after the financial year end and agreed to invest any surplus unrestricted
reserves in developing the charitys fundraising capacity. to diversify our sources of income.
Donations Policy
If there are concerns about the reputation of the donors or the extent of influence over the
organisation sought by the donor, the executive will consider the matter with the chair of the board.
They will specifically include in their consideration whether there is a threat to the reputation of the
charity, or to its independence.
Investment Policy
Most of the charitable compan￿5 funds are to be spent in the short term so there are no funds for
long term investment. An investment policy is therefore not considered by the trustees to be
appropriate for the time being.
Going Concern
The trustees have taken into consideration the organisation's current financial situation and its
economic outlook, including the impact of the cost of living crisis on 5MEs and they consider the
charity to be a going concern. The trustees have carefully considered the impact on our SME
membership fee income, ourfunding partnership with the CoLCand the planned end of our funding
from the City Bridge Trust. And they have also taken account of the charitys development of a
comprehensive business development plan and the securing of the UKSPF grant along with other
corporate sponsorship from Canary Wharf Group
with future opportunities identified in the
business development pipeline. Trustees are confident that the charitys plans for mitigation and its

HEART OF THE CITY OF LONDON LIMITED
free reserves position mean that it continues to be a going concern. Please see note 1 Ibl to the
financial statements.

HEART OF THE CITY OF LONDON LIMITED
The Financial Statements
The financial statements have been prepared in accordance with the accounting policies set out in
Note 1 to the accounts and comply with the charity's trust deed, the Charities Act 2011 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 IFRS 1021 effective from 1 January 2015 and the Companies Act 2006. The
financial statements consist of the following and include comparative figures for the previous year.
Statement of Financial Artivities showing all income and all expenditure incurred and
reconciling all changes in the funds of the charity
Balance Sheet setting out the assets and liabilities of the charity
Statement of Cash Flows shows the movement in cash for the year
Notes to the Financial Statements describing the accounting policies adopted and explaining
information contained in the financial statements
Responsibilities of the Trustee5
Company law requires the board to prepare financial statements for each financial year which give
a true and fair view of the charitable company's financial acrivities during the year and of its financial
position at the end of the year. In preparing financial statements giving a true and fair view, the
board should follow best practice and:
select suitable accounting policies ar)d then apply them consistently
make judgements and estimates that are reasonable and prudent
state whether applicable accounting standards and statements of recommended practice have
been followed
prepare the financial statements on the going concern basis unless it is inappropriate to
presume that the charitable company will continue in operation
The board is responsible for keeping accounting records which disclose with reasonable accuracy
the financial position of the charitable company and which enable them to ensure that the financial
statements comply with the Comparbies Act 2006. The trustees are also responsible for
safeguarding the assets of the charitable company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities. The board, who are directors for the
purposes of Company law and trustees for the purposes of charity law, who senjed during the year
and up to the date of this report are set out on page 2.

HEART OF THE CITY OF LONDON LIMITED
In accordance with Company law. as the company's dirertors. we certify that..
so far as we are aware, there is no relevant audit information of which the company's auditors
are unaware
we have taken all the steps that we ought to have taken in order to make ourselves aware of
any relevant audit information and to establish that the charity's auditors are aware of that
information
with the continued support of the City of London Corporation and the securing of the UKSPF
grant combined with corporate sponsorship secured. there are adequate assets to fulfil the
obligations of the charity
Adopted and signed for and on behalf of the board.
S K Saluja (Dec 14. 2023 09..18 GMT)
Sushil Saluja
(Chair of Trustees)
Date: 14-Dec-2023

HEART OF THE CITY OF LONDON LIMITED
Independent Auditorfs Report to the Trustees and Members of Heart of the
City of London Limited
Oplnion
We have audited the financial statements of Heart of the City of London Limited I'the charitable
compann for the year ended 31 March 2023 which comprise the Statement of Financial Activities,
Balance Sheet, Statement of Cash Flows and notes to the financial statements, including significant
accounting policies. The financial reporting framework that has been applied in their preparation is
applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard
102 The Financial Reporting Standard applicable in the UK and Republic of Ireland Iunited Kingdom
Generally Accepted Accounting Practice}.
In our opinion the financial statements-
give a true and fair view of the state of the charitable companls affairs as at 31 March 2023
and of its income and expenditure, for the year then ended..
have been properly prepared in accordance with United Kingdom Generally Accepted
Accounting Practice,. and
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing IUK)115As IUKI} and
applicable law. Our responsibilities under those standards are further described in the Auditorfs
responsibilities for the audit of the financial statements sertion of our report. We are independent
ofthe charitable company ir) 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 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 trustee's 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 charitable
company's ability to continue as a going concern for a period of at least twelve months from when
the financial statements are 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 contained within the annual report. The other
information comprises the information included in the annual report other than the financial
Statements and our auditorfs report thereon. Our opinion on the financial Statements does not
cover the other informatiorb and, except to the extent otherwise explicitly stated in our report, we
do not express any form of assurance conclusion thereon.
20

HEART OF THE CITY OF LONDON LIMITED
Our responsibility is to read the other information and. in doing so. consider whether the other
information is materially inconsistent with the finar)cial 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 this
gives rise to a material misstatement in the financial statements themselves. If. based on the work
we have performed. we conclude that there is a material misstatement of this ather information,
we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Att 2006
In our opinion based on the work undertaken in the course of our audit
the information given in the trustees, report, which includes the directors, report prepared
for the purposes of company law, for the financial year for which the financial statements
are prepared is consistent with the financial statements,. and
the directors. report included within the trustees. report have been prepared in accordance
with applicable legal requirements.
Matters on which we are required to report by exception
In light of the knowledge and understanding of the charitable company and their environment
obtained in the course of the audi¢ we have not identified material misstatements in the directors,
report included within the trustees, report.
We have nothing to report in respett of the following matters in relation to which the Companies
Act 2006 requires us to report to you if, in our opinion:
adequate and proper accounting records have not been kept- or
the financial statements are not in agreement with the accounting records and returns.. or
certain disclosure5 of trustees, remuneration specified by law are not made.. or
we have not received all the information and explanations we require for our audit; or
the trustees were not entitled to prepare the financial statements in accordance with the
small companies regime and take advar)tage of the small companies, exemptions in
preparing the trustees, directors, report and from the requirement to prepare a strategic
report.
Responsibilities of trustees
As explained more fully in the trustees. responsibilities statement set out on page 19 the trustees
(who are also the directors of the charitable company for the purposes of company lawl are
responsible for the preparation of the financial statements and for being satisfied that they give a
true and fair view, and for such internal control as the trustees determine is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud
or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable
companys ability to continue as a going concern. disclosin& as applicable, matters related to going
concern and using the going concern basis of accounting unless the trustees either intend to
liquidate the charitable company or to cease operations, or have no realistic alternative but to do
so.
21

HEART OF THE CITY OF LONDON LIMITED
Auditor's re5ponsibilitie5 for the audit of the financial statements
Our objettives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatemenL whether due to fraud or error, and to issue an auditorfs
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.
Details of the extent to which the audit was considered capable of detecting irregularities, including
fraud and non-compliance with laws and regulations are set out below.
A further description of our responsibilities for the audit of the financial statements is located on
the Financial Reporting Council's website at: www.frc.org.uklauditorsresponsibilities. This
description forms part of our auditorfs report.
Extent to which the audit was considered capable of detecting irregularities. including
fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We
identified and assessed the risks of material misstatement of the financial statements from
irregularities, whether dueto fraud orerror, and discussed these between our auditteam members.
We then designed and performed audit procedures responsive to those risks. including obtaining
audit evidence sufficient and appropriate to provide a basis for our opinion.
We obtained an understanding of the legal and regulatory frameworks within which the charitable
company operates. focusing on those laws and regulations that have a direct effect on the
determination of material amounts and disclosures in the financial statements. The laws and
regulations we considered in this context were the Companie5 Act 2006 together with the Charitie5
SORP IFRS102) 2019. We assessed the required compliance with these laws and regulations as part
of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect
on the financial statements but compliance with which might be fundamental to the charitable
companys ability to operate or to avoid a material penalty. We also considered the opportunities
and incentives that may exist within the charitable company for fraud. The laws and regulations we
considered in this context for the UK operations were General Data Protection Regulation {GDPRI
and Health and Safety Legislatiorb.
Auditing standards limit the required audit procedures to identify non-compliance with these laws
and regulations to enquiry ofthe Trustees and other management and inspection of regulatory and
legal correspondence, if any.
We identified the greatest risk of material impact on the financial statements from irregularities,
including fraud, to be within the timing of recognition of grant project and contributions in-kind
income and the override of controls by management. Our audit procedures to respond to these
risks included enquiries of management, and the Board of Trustees about their own identification
and assessmer)t of the risks of irregularities. sample testing on the posting of journa15. reviewing
accounting estimatesfor biases, reviewing regulatorycorrespondencewiththe Charity Commission,
22

HEART OF THE CITY OF LONDON LIMITED
sample and cut-off testing of income and reading minutes of meetings of those charged with
governance.
Owing 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. the further
removed non-compliance with laws and regulations (irregularities) is from the events and
transactions reflected in the financial statements, the less likely the inherently limited procedures
required by auditing standards would identify it. In addition, 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 non-compliance and cannot be expected to detect non-compliance with all laws and
regulations.
Use of our report
This report is made solely to the charitable companys members. as a body, in accordance with
Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we
might state to the charitable companYs members those matters we are required to state to them
in an auditorfs 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 the charitable
companys members as a body, for our audit work, for this repor¢ or for the opinions we have
formed.
Tina Allison
Senior Statutory Auditor
For and on behalf of
Crowe U.K. LLP
Statutory Auditor
London
Date.. 15 December 2023
23

HEART OF THE CITY OF LONDON LIMITED
Statement of Financial Activities for the year ended 31 March 2023
Unrestricted Restricted
Fund
Fund
Total
2022-23
Total
2021-22
Notes
Income and Endowments from:
Donations and Legacies
Charitable Activities
Interest and Other Income
Contributions in-kirbd
95.000
95.000
110.267
8.307
47.231
895,000
33,583
17071
54,453
110.267
8,307
47.231
Total Income
165,805
95,000
260.805
982,329
Expenditure on:
Charitable Activities
372,073
165,157
537.230
465,082
Total Expenditure
{Expenditure)Ilncome and net
movement in funds
372.073
165.157
537.230
465,082
1206,268)
170,1571 (276.425)
517,247
Reconciliation of funds
Total Funds brought forward
Total Funds carried forward
Type text
896.874
690,606
70.157
967.031
690.606
449.784
967,031
All operations are continuing. There are no recosnised sains or losses other than the results for the
period set out about above.
The result of net movement in funds isthe same asthe profitlloss figure under Companies Att 2006.
24

HEART OF THE CITY OF LONDON LIMITED
Balance Sheet as at 31 March 2023
Notes
2023
2022
Current Assets
Debtors
Cash
430.409
286.700
629,165
386,146
717.109
1,015,311
Liabilities
Creditors.. Amounts falling due within one year
Total Assets less Current Liabilities
26.503
690.606
48,280
967.031
The funds of the Charity:
Unrestricted income funds
Restricted Funds
Total Charity funds
690.606
896,874
70,157
967,031
690.606
The accounts have been prepared in accordance with the provision of the small companie5,
regime within Part 15 of the Companies Act 2006. The financial statement of Heart of the City,
with registered company number 5973126 were approved and authorised on behalf of the
trustees on 5 December 2023.
Sushil Saluja
(Chair of Trustees)
Date.. 14-Dec-2023
25

HEART OF THE CITY OF LONDON LIMITED
Statement of Cash Flows at 31 March 2023
2022-23
2021-22
Cash flows from operating activities:
Net cash (used in) operating activities:
Table 1
(107.753)
{39,7131
Cash flows from investing activities:
Interest and Other Income
8.307
17071
Change in cash and equivalents in the reporting
period
Cash and cash equivalents at the beginning of
the reporting period
Cash and cash equivalents at the end of the
reporting period
(99.4461
140,4201
386.146
426,566
Table 2
286.700
386,146
26

HEART OF THE CITY OF LONDON LIMITED
Table 1: Reconciliation of net (expenditure) to net cash flowfrom operating activities
2022-23
2021-22
Net lexpenditure)l income for the reporting period {as per
the statement of financial activities)
(276.425)
517,246
Adjustments for:
Interest and Other Income
Decreasellincreasel in debtors
IDecreasel/increase in creditors
Net cash (used in)/provided by operating artivities
{8.307)
198.755
(21.776)
(107.753)
707
1600,5141
42,848
39,713
Table 2: Analysis of cash and cash equivalents
2022-23
2021-22
Deposits Iless than 3 months)
Total cash and cash equivalents
286.700
286.700
386,146
386.146
Table 3: Analysls of changes In cash
At1
Cashflow
Acquisitionl
New
IH*#k
Fair Value
Movements
Foreign
Exchange
Movements
Other
non-cash
changes
At31
March
2023
April
2022
Disposal of
subsidiaries
finance
leases
Cash
386,146
{£99,4461
286.700
27

HEART OF THE CITY OF LONDON LIMITED 31 March 2023
Notes to the Financial Statements
1. Accounting Policies
The following accounting policies have been applied consistently in dealing with items which are
considered material in relation to the chariws finar)cial statements.
la) Basis of preparation
The accounts Ifinancial statements) have been prepared under the historical cost convention
with items recognised at cost or transaction value unless otherwise stated in the relevant notes
to these accounts. Heart of the City is a public benefit entity and the financial statements have
been prepared in accordance with company law and with the newAccounting 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
nd
IFRS 1021 effective from 1 January 2019 {2 Edition) and the Financial Reporting Standard
applicable in the United Kingdom and Republic of Ireland IFRS 102} and the Charities Act 2011.
Ib) Going Concern
The trustees have taken into consideration the organisation's current financial situation, its
business development pipeline as well as the ongoing challenging economic situation, and they
consider the charity to be a going concern. The trustees have carefully considered the impact
ofthe current economic situation on ourSME membership fee income, the funding partnership
with the City of London Corporation as well as the new UK Shared Prosperity Fund grant that
has been secured. They have taken into consideration that that charitys funding from City
Bridge Trust will finish in July 2023. Trustees are confident that the charitys plans for income
diversification and its strong free reserves position mean that it continues to be a going concern.
Icl Income policies
Items of income are recognised and included in the accounts when all of the following criteria
are met:
the charity or its subsidiary have entitlement to the funds-
any performance conditions attached to the item{sl of income have been met or are fully
within the control of the charity or its subsidiary;
there is sufficient confidence that receipt of the income is considered probable,. and
the amount can be measured reliably
SME memberships are provided on a rolling basis li.e. an SME can join at any time in the
calendar year and their membership will run for 12 months from that datel and so SME
membership fees are recognised in the financial year they relate to, with amounts being
deferred into the following financial year as appropriate.
Contributions in-kind are included where the benefit to Heart of the City is reasonably
quantifiable and measurable and are valued at the price the Charity would expect to pay in the
open market which reflects the guidance from the Charities SORP - the value recognised may
be lower than. but cannot exceed. the open market value. The value of the in-kind support is
only measured and recorded once received. Please see note 4 below for more details.
28

HEART OF THE CITY OF LONDON LIMITED
Id) Expenditure
Allocation of costs betweer) different artivities: All costs are allocated directly to charitable
activities. There are no financial commitments.
lel Pension costs
Heart ofthe City does Trot directly employ any staff but 11 individuals were seconded from the
City of London Corporation during the year for the purposes of the charity. These staff are
entitled to be members of the City of London Corporation's Pension Scheme and the related
pension costs are incurred within the secondment recharge.
If) Funds
The charity has two funds - the unrestricted income fund which contains any unspent annual
income carried forward for use in future years, and a restricted fund which comprises grant
funding from the City Bridge Trust towards the cost of responsible business work.
(E) Support costs
The charity does rbot employ any staff directly. Officers of the City of London Corporation
provide administrative assistance to the charity when required and a figure of £2,352 is included
under support costs. In addition a total of £15,910 for accommodation and £6,939 for pro bono
expertise is included. all of which are provided on an in-kind basis.
2. Tax Status of the Charity
Heart of the City is a registered charity and as such its income and gains are exempt from
income tax to the extent that they are applied to its charitable objectives.
3. Indemnity Insurance
The City of London Corporation has taken out indemnity insurance on behalf of Heart of the
City. Heart of the City does not contribute to the cost of that insurance.
29

HEART OF THE CITY OF LONDON LIMITED
4. Income
Income is comprised as follows-
Unrestricted
Restricted
2022-23
2021-22
Income
Grant Income- City of London Corporation
800.000
Grant Income- City Bridge Trust
95,000
95.000
95,000
Membership Fees
57,767
57.767
15.583
Project Income- Mentoring Programme
Project Income- Dragon Awards
Project income - Sponsorship: Foundations for
Responsible Business
18,000
15,000
15.000
37,500
37.500
Interest and Other Income
8,307
8.307
17071
Contributions in-kind
47,231
47.231
54,453
Total Income
165,805
95,000
260.805
982,329
In 2022-23 the comparative amount of restricted income was £95,00012021-22.' £95,000) and
the comparative amount of unrestricted income was £165,80512021-22= £887,329).
GrantslDonations
The grant income of £95,000 has been received12021-22.' £895,000),. projert income of £37,500
has been received from sponsorship for the Foundations for Responsible Business programme
and £15,000 for Dragon Awards (2021-22.. £18.000 project income for mentoring programmel.
In 2021-22. the City of Lor)don Corporation's grant of £800.000 over four years was recognised
in full. As at 31 March 2023, it includes £400,000 of accrued grants receivable of £200,000 per
annum through to 2024-25.
Fees
Membership fees are in respect of the paid-for SME membership programmes.
Contributions in-kind
The contributions in-kind of £47,231 (2021-22: £54,453) relate primarily to accommodation
provided by the City of London Corporation and the time spent by Heart of the Citys business
supporters in assisting with programme promotion and delivery. The reduced contribution in-
kind for 2022-23 is due to the team requiring less pro-bono legal support in this financial year.
30

HEART OF THE CITY OF LONDON LIMITED
Interest and Other Income
Interest and other income of £8.307 includes the balance from Heart of the Citys CAF Bank
account. This account is currently held solely for the purpose of processing VAT returns as a
separate named bank account is required by HMRC. The balance on the account as at the end
of March 2023 was £726 (2021-21: £797).
S. Expenditure
Expenditure is analysed between activities undertaken directly and in-kind support costs as
follows:
Activities
Undertaken
Directly
Support
Costs
2023
Total
Activities
Undertaken
Directly
Support
Costs
2022
Total
2023
2023
2022
2022
Charitable activities
Heart of the City
membership
programme
489,999
47,231
537.230
410.629
54.453
465.082
Total Expenditure
489,999
47,231
537.230
410,629
54,453
465.082
No expenditure is incurred by third parties to undertake charitsble work on behalf of the
charity.
Charitable artivities support costs
Expenditure on charitable activities £22,439 (2021-22 £25.1431 includes accommodation, labour,
equipment, materials and other supplies and services incurred as the running costs of Heart of
the City.Thissupport is provided byCoLC. byindividualswithin the Heartofthe City ambassador
network of industry experts as well as by PWC for VAT software use and by Salesforce for CRM
use.
Governance support costs
Governance support costs of £9.735 12021-22: £16.468) relate to the general running of the
charity, rather than specific activities within the charity. and include strategic planning and c05tS
associated with trustee meetings. All governance costs are provided on an in-kind basis.
Auditors. remuneration and fees for external financial services.. the auditors. fee of £5,45012021-
22.. £4.5001 has been paid for 2022-23 by City of Lor)don Corporation on behalf of Heart of the
City Hogan Lovells. which provided company secretarial support. have also waived theirfee. No
other external financial services were provided for the charity during the year or in the previous
year.
Trustees. expenses= trustees of Heart of the City are unpaid and do not receive allowances- £0
expenses were paid in 2022-2312021-22.. £01.
31

## **HEART OF THE CITY OF LONDON LIMITED** 

## **Analysis of support costs** 

|**Support costs**|**Heart of the City Programmes**|
|---|---|
|Accommodation|£15,910|
|IT and Marketing|£792|
|Legal|-|
|Other|£19,637|
|Speakers and Ambassadors|£10,892|
|**Total**|**£47,231**|



## **6. Staff Numbers and Costs and Overview of Other Expenditure** 

||**2022-23**|**2021-22**|
|---|---|---|
|Salaries|£343,343|£280,013|
|Pension costs|£71,829|£58,521|
|National Insurance costs|£38,488|£31,115|
|**Total staffing costs**|**£453,660**|**£369,649**|



The average number of staff seconded to Heart of the City across the year was eight (2021-22: six). This staff number was made up of 11 different individuals working for the charity throughout 2022-23 (2021-22: 10). For 2022-23 there was 1 member of staff with salary above £60,000 (2021-22 there were no members of staff with salary above £60,000). Key management personnel include the charity’s director and head of programmes roles and their combined total compensation for 2022-23 was £171,689 (2021-22: £163,586). 

Staffing costs of £453,660 (salaries, pension and national insurance) represents 93% of Heart of the City’s annual costs (2021-22: £369,649 / 88%). Other expenditure of £36,339 during 2022-23 (2021-22: £48,369) included fees and marketing services of £3,756 (2021-22: £4,682), £14,792 on communications and computing (2021-22: £20,279), £7,746 on training and recruitment advertising (2021-22: £4,486), £6,000 on office administration and IT support costs (2021-22: £0) and £4,045 on other miscellaneous costs such as subsistence, travel, insurance, equipment and materials (2021-22: £16,859). 

32 



HEART OF THE CITY OF LONDON LIMITED
Debtors
Debtors consist of amounts owirbg to the charity due within one year and Grants Receivable of
£400,000 relates to the further two years of COLC grant funding through to 2024-25.
2023
2022
Other Debtors
Grants Receivable
Total
30.409
400.000
430.409
29,164
600,000
629.164
Creditors
Creditors consist of amourbts due withirb one year in respect of charitable expenditure. Receipts
in Advance of £26,503 relates to 2023-24 SME membership fees {2021-22'. £46,392).
2023
2022
Trade Creditors
Accruals
Receipts in Advance
Total
120
1.768
46,392
48,280
26.503
26.503
Movement of Funds during the year to 31st March 2023
Balance at
Income
Expenditure
Balance at
Balance at
1 April
2022
31 March
2023
31 March
2022
Unrestricted Funds
General
896.874
165.805
{372.073)
690.606
896,874
Restricted Funds
City Bridge Trust
70.123
95.000
1165.157)
70.123
TheCityTogether
34
Total
967.031
260.805
{537.230}
690.606
967.031
33

HEART OF THE CITY OF LONDON LIMITED
Movement of Funds during the year to 31st March 2022
Balance at
1 April 2021
Income
Expenditure
Balance at31
March 2022
Unrestricted Funds
General
376,183
887.329
1366,638)
896,874
Restricted Funds
City Bridge Trust
73,567
95.000
(98.4441
70.123
TheCityTogether
34
Total
449.784
982.329
{465.082)
967.031
Unrestrlcted funds
The balance on the general fund is£690,60612021-22: £896,874) and reflectsthe net movement
in funds for the period.
Restricted funds
The balance on the restricted fund is £012021-22- £70.1571 and reflects the net movement in
funds for the period from the City Bridge Trust towards the cost of Heart of the Citys work in
London boroughs.
10. Analysis of Net Assets between funds: 31$¢ March 2023
Current
Current
Balance at 31
March 2023
Assets
Liabilities
Unrestricted Funds
General
717,109
(26,503)
690,606
Restricted Funds
City Bridge Trust
1341
TheCityTogether
34
Total
717.109
(26.503)
690.606
34

HEART OF THE CITY OF LONDON LIMITED
Analysis of Net Assets between funds: 31$¢ March 2022
Current
Current
Balance at 31
Assets
Liabilities
March 2022
Restated
Unrestricted Funds
General
945,154
(48,280)
896,874
Restricted Funds
City Bridge Trust
70,123
70,123
TheCityTogether
34
Total
1.015.311
(48.280)
967.031
11. Related Party Transactions
The Heart of the Citys relationship with the City of London Corporation is set out in the section
on Structure, Governance and Management
The City of London Corporatiorb provides IT support and shared office administrative services
for the charity. In 2022-23, £1,600 and £4,400 were charged to the charity for office admin and
ITsupport services{2021-22.' £4,400 for ITsupportl. As of31 March 2023, Heart of the Cityowed
£nil to the City of London Corporation in respect of these charges12021-22: £nill. Heart of the
City staff are employed by the COLC and seconded bythe COLC to the charity, for further details
see note 6.
The City of London Corporation also provides banking services, allocating all transactions to the
charity at Cost and crediting or charging interest at a commercial rate. The cost of these services
is set out in the Statement of Financial Artivities under "Expenditure" The City of London
Corporation is currently providing a fouryear grant to Heart of the City which provides £200.000
of cash receipts per year from 2021-22 to 2024-25. This £800.000 grant was recogni5ed in full
in the 2021-22 accounts. As of 31 March 2023. Heart of the City is due £400,000 from the City
of London Corporation in relation to this grant (2021-22: £600.0001.
In addition, Heart of the City received contributions in-kind from the Corporation for
accommodation of £15,910 {2021-22'. £16,536) and audit fee of£5,45012021-22.' £4,500).
Heart of the City received £95,000 grant funding from the City Bridge Trust, a restricted fund
which comprises grant funding towards the cost of responsible business work 12021-22:
£95,000). As of 31 March 2023, Heart of the City was owed £23,750 from City Bridge Trust in
relation to this grant12021-22'. £23,750).
35

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