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2022-12-31-accounts

ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022

Registered Office: 9 Holyrood Street, London SE1 2EL

www.centreforcities.org

A Charitable Company Limited by Guarantee Registered in England and Wales Company No. 06215397 Registered Charity No. 1119841

i

CENTRE FOR CITIES

CONTENTS

YEAR ENDED 31 DECEMBER 2022

Pages
Trustees’ Annual Report 3 - 11
Independent Auditor’s Report 12 - 15
Statement of Financial Activities 16
Balance Sheet 17
Statement of Cash Flows 18
Notes to the Accounts 19 - 26

CENTRE FOR CITIES TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 DECEMBER 2022

Foreword by Nigel Hugill, Chair of Centre for Cities

Over the past year, Centre for Cities has produced rigorous, data-driven research outputs, informed policy and practice with evidence-based recommendations, and engaged with a wide range of stakeholders at the national and local level.

In 2022, the Centre published 20 research reports and briefings, more than 100 blogs, released 16 podcasts and organised 32 public events.

In January 2022, we launched our flagship annual report on the state of urban Britain, Cities Outlook 2022. It provided an in-depth review of the state of UK high streets to get a sense of the impact of the pandemic on Britain's town and city centres and to set out the long-term consequences and implications this will have for the Government’s levelling up agenda. The research was covered by many national and local media outlets and has influenced government policy on levelling-up.

Levelling up has always been a focus for the Centre. In February, the Levelling Up White Paper was published by the Government and contained more than 25 direct references to our work. Following the release of the White Paper, Centre for Cities published a Levelling Up tracker which provides detail on every policy announcement intended to deliver on the agenda.

Throughout the year, we updated our publicly accessible data trackers covering footfall and spend in city centres, unemployment and job postings. We also developed a new data tool to track how the growing cost of living crisis was affecting cities and towns across the country.

Our trackers continue to be widely used by local and national policymakers as well the media. City leaders and government officials have told us that these have been extremely valuable in helping them understand what was happening in their places and to craft appropriate responses.

Looking ahead, as cities continue to recover from the impacts of COVID-19, as well as dealing with a cost-of-living crisis, and long-term productivity challenges, the Centre will:

In doing this, the Centre will seek to inform the policy debate by providing sound, evidencebased advice and working with an ever-growing network of local and national decisionmakers.

Nigel Hugill

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CENTRE FOR CITIES TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 DECEMBER 2022

The Board of Trustees are pleased to present their Trustees’ Annual Report and Accounts for the year ending 31 December 2022. The Trustees’ Annual Report contains a Directors’ Report as required by company law. The accounts comply with the requirements of the Companies Act 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with FRS102, effective 1 January 2019.

Our Objectives and Activities

Centre for Cities is an independent charity. We work closely with urban leaders, Whitehall and businesses to ensure our work is relevant, accessible and of practical use to cities and policymakers.

The purposes of the charity, as set out in the Memorandum of Association, are:

The vision shaping our activities each year is of a UK economy that makes the most of different cities’ potential to increase economic prosperity across the country.

We work to understand how and why economic growth and change take place in cities in the UK and publicise these findings widely in order to help British cities improve their economic performance.

To fulfil its purpose, the Centre undertakes the following activities:

Our research is produced by an in-house team of analysts, with input from external experts and cities. The research is of high quality, drawing on a robust evidence base. It aims to inform public debate, policy and practice and includes the development of clear, evidence-based policy proposals. We do this independently but in consultation with Whitehall departments, political parties, local authorities and business organisations.

We carry out research in association with UK cities and bring together networks of local and national decision-makers from both the public and the private sector to share knowledge. This enables us to inform policy and practice directly and to publicise lessons from this work, which are relevant to other cities.

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CENTRE FOR CITIES TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 DECEMBER 2022

We publish a regular newsletter and work in partnership with others, including journalists, universities and cities, to publicise the findings of our work.

In 2022 we undertook work in the following areas:

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CENTRE FOR CITIES TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 DECEMBER 2022

continues to offer media commentary on the policy implications of Levelling Up and how best to define the platform’s ambitions.

Public Benefit

The trustees of a charity must have regard to the Charity Commission’s guidance when exercising any powers or duties to which the guidance is relevant.

The Charity remains committed to the aim of providing public benefit in accordance with the Charities Act 2011.

The Trustees also confirm that, in carrying out its Principal Activities, the Centre provided public benefit during 2022.

The Centre produces high-quality research and policy analysis that are independent of government, individual clients or companies. The research is made available widely and free of charge to individuals, organisations, practitioners and others active in urban economic development. The Centre constantly invests in improving outreach to ensure our work reaches more policymakers, practitioners and members of the public.

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CENTRE FOR CITIES TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 DECEMBER 2022

To complement our research work, we deliver papers, which focus on practical ways in which UK cities can tackle longstanding challenges such as productivity and unemployment, drawing on the UK and international case studies.

In 2022, we released over 100 briefings, blogs and research reports covering topics including cities’ use of technology to tackle the pandemic, the impact of lockdowns on labour markets and analysis of the furlough scheme, policy priorities for the new metromayors, and making transport work in Britain’s big cities.

Financial review

The year ended with a deficit of £216,106 (2021: a surplus of £64,091). Funds carried forward were £818,005 (2021: £1,034,111).

During the year, our main activities were Research, External Affairs and the What Works Centre. The income and expenditure linked to these activities were unrestricted.

Income

Total incoming resources were 1,751,747 (2021: £1,728,753). Our main source of income was a core grant from the Gatsby Charitable Foundation. In 2022, we received £1,100,000, which was approximately 63 per cent of all our revenues.

Other funding was generated through sponsorship agreements for research projects and events.

In 2022, the What Works Centre for Local Economic Growth project in cooperation with the London School of Economics generated £462,730 (2021: £417,231) for the Centre.

Resources expended

The Centre’s expenditure was £1,967,853 (2021: £1,664,662). The increase in expenditure was mainly due to the much higher than in the previous year staff and projects costs.

Reserves Policy

The Trustees’ reserves policy is reviewed annually. The Centre for Cities’ reserves are defined as unrestricted net current assets.

In 2022, the Trustees decided that the Centre should set a reserves policy which was equivalent to at least six months of the operating expenditure. The reserves are required to protect the continuity of the organisation against drops in income, to carry out research projects not funded by sponsorship, for capital items replacement and to cover unplanned emergencies and potential risks.

The surplus of the free reserves was expended on research projects such as ‘Realising Regional Growth’, ‘Innovation’, and on the website upgrade. Also, the Centre’s employees were given a one-off payment to help them with the rising cost of living.

Free reserves held on 31 December 2022 were £804,710 (2021: £1,012,899), down by £208,183. The carried forward reserves are within six months of operating expenditure in 2023.

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CENTRE FOR CITIES TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 DECEMBER 2022

FUTURE PLANS

To have the impact we desire, we need to continue to produce excellent research and communicate it effectively across our government and city networks, and to the public. In 2023, we will focus on those areas of national and local policy of most importance to the economic performance of cities:

To support our research programme, we will run a busy schedule of public events and roundtables, as well as our programme of receptions and panel debates at the party conferences.

Engaging with senior figures from business, academia, policymaking, local and national government and Westminster to present research and ideas, inform the public debate and discuss policy and practice will continue to be an important part of Centre for Cities’ strategy to influence policy outcomes in recent years.

REFERENCE AND ADMINISTRATIVE DETAILS

Charity number 1119841 Company number 06215397 Registered office 9 Holyrood Street, London SE1 2EL Website: www.centreforcities.org

REGISTERED AUDITORS: HW Fisher LLP Acre House 11-15 William Road London NW1 3ER BANKERS: HSBC Bank PLC 16 King Street London WC2E 8JF

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CENTRE FOR CITIES TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 DECEMBER 2022

DIRECTORS AND TRUSTEES

The directors of Centre for Cities are its trustees for the purpose of charity law.

The trustees serving during the year and up to the date of approval of the accounts were as follows:

Nigel Hugill (Chairman)

Alex Plant

Nicola Yates Tom Riordan Miranda Sharp Alan Harding John Cummins Joe Burns

KEY MANAGEMENT PERSONNEL:

Andrew Carter Chief Executive Paul Swinney Director of Policy and Research Sian Morgan Director of External Affairs Anna Bullegas Head of Finance and Operations

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

Centre for Cities is a company limited by guarantee, governed by its Articles of Association, last amended on 11 April 2011.

Appointment of trustees

The Board of Trustees, who are also Members and Directors of the Charitable Company, is self-appointing. A trustee’s period of office is three years from the date of appointment or reappointment. A trustee may be re-appointed by the trustees for a further period of three years.

New members of the Governing Body are elected on the basis of nominations from the Trustees and the executive officers based on the candidates’ professional qualities, experience and personal competence.

Trustee induction and training

All new trustees are provided with an induction pack giving full details of how the Charity is constituted and operates. Any further information they require is provided by an appropriate senior person within the Charity.

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CENTRE FOR CITIES TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 DECEMBER 2022

Organisation

The Board of Trustees consists of not less than three members and is not subject to any maximum. The Board is responsible for the overall governance of the Charity. It meets three times a year to oversee the affairs of the Centre. The Board appoints a Chief Executive to manage the day-to-day operations of the charity.

Related parties

Upon appointment, each trustee makes full written disclosure of interests, including relationships that may be of relevance to the Centre’s work and posts held that could potentially result in a conflict of interest. This written disclosure will be kept on file and trustees are emailed annually to check that it is up to date. It can be updated at any time throughout the year.

In the course of meetings or activities, trustees disclose any interests in a transaction or decision where there may be a conflict between the organisation’s best interests and the trustee’s best interests, or a conflict between the best interests of two organisations with which the Trustee is involved.

In the current year, no related party transactions were reported. None of our trustees receives remuneration or other benefits from the charity.

Pay policy for staff including key management personnel

The pay of all staff, including senior staff, is reviewed annually. The current policy is to award all staff an increase in salary provided the Centre reaches a fundraising milestone set by the Finance and Audit Committee. The increase is based on a review of changes in the cost of living during the course of the year and is agreed by the Finance and Audit Committee. All the Centre’s salaries, including those of senior staff, are benchmarked against pay levels in similar organisations.

Risk management

The established risk assessment system involves identifying the types of threats the Charity faces, prioritising them in terms of impact and recommending controls to mitigate them. The ongoing risks continue to be around securing sufficient funding to deliver the Centre’s ambitions and ensuring our work is of high quality and policy relevance.

The funding risks are mitigated by engaging with a wide range of potential sponsors and building long-term relationships with them. To ensure our work is of the highest standard and relevance we have a quality assurance and policy relevance process in place, with internal and external checks at key stages to peer review our work and ensure it continues to be objective, independent, robust and rigorous.

The Board is satisfied that, for all major risks, appropriate controls have been put in place which are regularly reviewed and adjusted accordingly.

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CENTRE FOR CITIES TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 DECEMBER 2022

Statement of trustees’ responsibilities

The Charity’s trustees (who are also the directors of Centre for Cities for the purposes of company law) are responsible for preparing a trustees’ annual report and accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.

Company law requires Charity trustees to prepare accounts for each year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing the accounts, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and to enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware, which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

Auditor

In accordance with section 485 of the Companies Act 2006, a resolution proposing that HW Fisher LLP be reappointed as auditor of the company will be put to the Annual General Meeting.

On behalf of the Board of Trustees

…………………………. Nigel Hugill

27 Jul 2023 ………………………….. Date

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CENTRE FOR CITIES INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF CENTRE FOR CITIES

YEAR ENDED 31 DECEMBER 2022

Opinion

We have audited the accounts of Centre for Cities (the ‘charity’) for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the notes to the accounts, 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 (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the accounts:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts 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 ongoing concern

In auditing the accounts, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the accounts is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the accounts 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 other information comprises the information included in the annual report, other than the accounts and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the accounts does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If

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CENTRE FOR CITIES INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF CENTRE FOR CITIES

YEAR ENDED 31 DECEMBER 2022

we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report included within the Trustees' Annual Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the accounts 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 accounts that are free from material misstatement, whether due to fraud or error. In preparing the accounts, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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CENTRE FOR CITIES INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF CENTRE FOR CITIES

YEAR ENDED 31 DECEMBER 2022

Auditor's responsibilities for the audit of the accounts

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

As part of our planning process:

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

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CENTRE FOR CITIES

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF CENTRE FOR CITIES

YEAR ENDED 31 DECEMBER 2022

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the accounts even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the trustees of the charity.

A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Rich

Andrew Rich (Senior Statutory Auditor) for and on behalf of HW Fisher LLP

Chartered Accountants Statutory Auditor Acre House 11-15 William Road London United Kingdom NW1 3ER 27 Jul 2023 .........................

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CENTRE FOR CITIES

STATEMENT OF FINANCIAL ACTIVITIES

(INCLUDING INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 DECEMBER 2022

Notes
Income from:
Donations
3
Charitable activities:
Research
External Affairs
What Works Centre
Total from charitable activities
Income from investments
4
Other Income
5
Total income
Expenditure on:
Charitable activities:
6
Research-Policy
External Affairs
What Works Centre
Total
Net income and net
movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 2022
2021
£
£
1,100,000
1,100,000
118,333
93,000
62,095
92,154
462,730
417,231
643,158
602,385
2,366
537
6,223
25,831
1,751,747
1,728,753
772,201
639,234
732,922
608,197
462,730
417,231
1,967,853
1,664,662
(216,106)
64,091
1,034,111
970,020
818,005
1,034,111

All funds in the current and comparative year were unrestricted. 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.

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Company Registration Number 06215397 (England and Wales) Registered Charity Number 1119841

CENTRE FOR CITIES

BALANCE SHEET

AS AT 31 DECEMBER 2022

Notes
Fixed assets
Tangible assets
11
Total fixed assets
Current assets
Debtors
12
Cash at bank and in hand
Total current assets
Liabilities
13
Net current assets
Total assets less current
liabilities
Unrestricted funds:
16		 2022
2021
£
£
13,295
21,222
13,295
21,222
388,030
143,450
1,683,308
1,000,449
2,071,338
1,143,899
1,266,628
131,010
1,266,628
131,010
804,710
1,012,889
818,005
1,034,111
818,005
1,034,111
818,005
1,034,111

27 Jul 2023

Approved and authorised for issue by the Board of Trustees on …………… and signed on their behalf by Nigel Hugill.

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CENTRE FOR CITIES

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2022

Note
Net cash provided by operating activities
Cash flows from investing activities:
Interest receivable
Purchase of tangible fixed assets
Change in cash and cash 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
RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH
ACTIVITIES
Net income for the reporting period
Adjustments for:
Depreciation charges
Interest receivable
Increase in debtors
Increase in creditors
Net cash provided by (absorbed by)/ operational activities		 2022
2021
£
£
684,528
67,405
2,366
537
(4,035)
(16,000)
(1,669)
(15,463)
682,859
51,942
1,000,449
948,507
1,683,308
1,000,449
FLOW FROM OPERATING
2022
2021
£
£
(216,106)
64,091
11,962
10,310
(2,366)
(537)
(244,580)
(7,367)
1,135,618
908
684,528
67,405

RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

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CENTRE FOR CITIES NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

1 ACCOUNTING POLICIES

Accounting policies provide the basis on which the accounts are prepared and explain the accounting treatment of material transactions or items in the accounts.

(a) Basis of preparation of accounts

The accounts have been prepared in accordance with the Charity's Memorandum & Articles, 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.

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

The financial statements are prepared in pounds sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

(b) Recognition of income

Income under grants, donations or sponsorships is recognised in the accounts on a receivable basis. Income under contracts is recognised in the financial statement to the extent that entitlement to the income has been earned during the year through completion of the contract.

(c) Interest receivable

Interest on funds held on deposit is included when receivable. The charity records it upon notification from the Bank.

(d) Funds

Funds which are expendable at the discretion of the Trustees in furtherance of the objectives or administration of the Charity are classified as unrestricted funds.

(e) Debtors

Trade and other debtors are recognised at the settlement amount due after any discount offered.

(f) Expenditure and recoverable VAT

All expenditures have been recognised on an accruals basis.

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

(g) Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments and Section 12 ‘Other Financial Instruments Issues’ of FRS102 to its financial instruments.

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CENTRE FOR CITIES NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

The Charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. These financial instruments are recognised at the amount payable or receivable when the instrument is first recognised and subsequently measured at their settlement value.

(h) Allocation of support costs

Support costs are the costs of those functions that assist the work of the charity but are not directly charitable activities. Support costs include HR, finance, payroll, governance and general office costs which support Centre for Cities’ activities. The basis on which support costs have been allocated is set out in note 7.

(i) Operating leases

The charity classifies the lease of the photocopier as an operating lease. The ownership of the photocopier remains with the lessor and is replaced every 5 years. The rental costs are charged on a straight-line basis over the term of the lease.

(j) Tangible fixed assets

Tangible fixed assets are stated at cost including any incidental expenses of acquisition and unrecoverable VAT where appropriate. All assets costing more than £500 are capitalised.

Depreciation is calculated to write off the cost of fixed assets on a straight-line basis over their estimated useful lives. Depreciation is charged from the month of acquisition. The principal estimated useful lives for this purpose are:

Computer equipment and software - 3 years Fixtures and Fittings - 5 years

Leasehold Improvements - Over the life of the lease

To the extent that VAT is irrecoverable, the cost is included and identified separately within the contract or functional area to which it relates and where appropriate VAT on Fixed Assets is capitalised.

(k) Pension costs

The Charity has a money purchase scheme for qualifying employees. Pension costs charged to the statement of Financial Activities represent the contributions payable by the Charity in the period (see Note 9).

(l) Going concern

The Charity has confirmed core funding of £1,100,000 per annum from the Gatsby Foundation for the period 2023 to 2025. As set out in ‘Reserves Policy’ in the Trustees’ Annual Report, the Charity holds reserves in the minimum required, which are available to support research and advocacy in coming years.

The Trustees have a reasonable expectation that the Charity has adequate resources to remain in operation for the foreseeable future. Thus, the Trustees continue to adopt the going concern basis of accounting in preparing the accounts.

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CENTRE FOR CITIES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022

(m) 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. There were no critical accounting estimates during the period.

2 Company status

Centre for Cities is a company limited by guarantee and has no share capital.

Every member of the charity undertakes to contribute such amount as may be required (not exceeding £10) to the Charity’s assets if it should be wound up while he or she is a member or within one year after he or she ceases to be a member, for payment of the Charity’s debts and liabilities contracted before he or she ceases to be a member, and of the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributories among themselves. Its registered office is 9 Holyrood Street, 2nd Floor, London SE1 2EL.

No taxation is payable due to the charitable status of the organisation.

3 Donations

3
Donations
2022 2021
£ £
Core Grant 1,100,000 1,100,000

In 2022, Centre for Cities received a donation of £1,100,000. The donation was an annual core grant from Gatsby Foundation, Lord Sainsbury’s family charitable trust.

4 Investment Income

Centre for Cities’ investment income of £2,366 (2021: £537) arises from money held in deposit accounts.

5 Income - Other Activities

Income received for seconded employee.

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CENTRE FOR CITIES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

6 Analysis of expenditure on charitable activities

2022
Staff Costs
Projects Direct Costs
Premises
Depreciation
IT & Communication
Printing & Stationery
Miscellaneous Office Costs
Legal, Professional and Insurance
Subtotal
Support Costs (note 7 )
Governance Costs (note 7 )
Subtotal
2021
Staff Costs
Projects Direct Costs
Premises
Depreciation
IT & Communication
Printing & Stationery
Miscellaneous Office Costs
Legal, Professional and Insurance
Subtotal
Support Costs (note 7)
Governance Costs (note 7)
Subtotal
Total
Total		 Research-
Policy
External
Affairs
What Works
Centre
Total
£
£
£
£
478,527
396,014
363,326
1,237,867
78,575
172,759
28,133
279,467
78,663
42,478
36,186
157,327
5,981
3,230
2,751
11,962
7,819
4,222
3,597
15,638
1,714
925
788
3,427
48,893
57,114
15,464
121,471
2,897
1,566
1,334
5,797
703,069
678,308
451,579
1,832,956
54,855
36,424
8,621
99,900
14,277
18,190
2,530
34,997
69,132
54,614
11,151
134,897
772,201
732,922
462,730
1,967,853
Research-
Policy
External
Affairs
What Works
Centre
Total
£
£
£
£
375,597
354,654
344,972
1,075,223
66,923
115,833
2,609
185,365
63,357
42,697
31,678
137,732
4,742
3,197
2,371
10,310
8,610
5,801
4,305
18,716
2,765
1,863
1,382
6,010
42,346
40,197
16,679
99,222
4,519
3,045
2,259
9,823
568,859
567,287
406,255
1,542,401
57,956
25,462
9,136
92,554
12,419
15,448
1,840
29,707
70,375
40,910
10,976
122,261
639,234
608,197
417,231
1,664,662

Expenditure on charitable activities was £1,967,853 (2021: £1,664,662). All expenditures were unrestricted. Most of the costs in the above table (note 6) relate to staff, project direct costs and premises costs.

Staff costs consist of gross pay, employer NI and pension costs and are directly attributable to the Centre for Cities’ activities. Other staff costs are part of support costs.

22

CENTRE FOR CITIES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022

Projects’ direct expenditures are made up of costs that relate to events and research. Events costs include venue and equipment hire, catering, travel and accommodation costs. Costs related to research projects include data, polling and printing of reports. Premises costs include rent and rates, service charge, office security and insurance.

7 Analysis of support and governance costs

Centre for Cities initially identifies the costs of its support functions. It then identifies those costs, which relate to the governance function. Having identified its governance costs, the remaining support costs together with the governance costs are apportioned between the three charitable activities (see note 6) in the year. The table below shows an analysis of support and governance costs and the basis of apportionment.

2022
2021
Total
Salaries
Information Technology
Audit Fees
Legal & Other Professional Fees
Salaries
Audit Fees
Total
Legal & Other Professional Fees
Information Technology		 General
Support
Governance
Function
Total
Basis of
Apportionment
£
£
£
97,594
23,997
121,591
Time
2,306
-
2,306
Cost
11,000
11,000
Governance
-
-
-
Governance
99,900
34,997
134,897
General
Support
Governance
Function
Total
Basis of
Apportionment
£
£
£
87,027
21,707
108,734
Time
2,027
-
2,027
Cost
-
8,000
8,000
Governance
3,500
-
3,500
Governance
92,554
29,707
122,261

23

FOR THE YEAR ENDED 31 DECEMBER 2022

CENTRE FOR CITIES NOTES TO THE ACCOUNTS

8 Net income/(expenditure) for the year

This is stated after charging: 2022 2021
£ £
Operating leases - photocopier 1,028 1,272
Depreciation 11,962 10,310
Auditor's remuneration:
Audit fees 11,000 8,000
9
Analysis of staff costs, trustee remuneration		 and expenses and the co
management personnel
2022 2021
£
 £
Wages and salaries 1,134,248 987,834
Social security costs 120,207 98,106
Pension costs 105,003 98,017
1,359,458 1,183,957
Employees earning between £60,001 - £70,000 1 1
Employees earning between £70,001 - £80,000 2 -
Employees earning between £80,001 - £90,000 1 3
Employees earning between £90,001 - £100,000 1 -
Employees earning between £100,001 - £120,000 1 1

9 Analysis of staff costs, trustee remuneration and expenses and the cost of key management personnel

Pension contributions in respect of higher-paid employees totalled £57,087 (2021: £46,604).

The charity trustees were not paid and did not receive from the charity any benefits or reimbursement of their travel expenses during the year.

The total employee benefits received by the key management personnel listed on page 9 were £387,623 (2021: £318,385).

24

CENTRE FOR CITIES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022

10 Staff numbers

The average monthly headcount was 23 staff (2021: 19 staff) and the average monthly number of the full-time equivalent employees during the year was as follows:

Research
External Affairs
WWC
Governance		 2022
2021
10.5
9.0
6.0
6.0
5.0
4.0
0.5
0.5
22.0
19.5

11 Tangible fixed assets

Cost or book value
At 31 December 2022
Accumulated depreciation
At 1 January 2022
Charge for year
At 31 December 2022
Net book value
At 31 December 2022
At 31 December 2021
At 1 January 2022
Additions		 Leasehold
Improvements
Fixtures and
Fittings
Computer
Equipment
Total
£
£
£
£
111,704
36,612
69,997
218,313
-
1,005
3,030
4,035
111,704
37,617
73,027
222,348
111,704
35,863
49,524
197,091
-
394
11,568
11,962
111,704
36,257
61,092
209,053
-
1,360
11,935
13,295
-
749
20,473
21,222

All of the tangible fixed assets are used for charitable purposes.

12 Debtors

Due within one year:
Trade Debtors
Prepayments
Other debtors		 Total
Total
2022
2021
£
£
163,225
6,867
68,825
43,425
155,980
93,158
388,030
143,450

25

CENTRE FOR CITIES NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

13 Creditors: amounts falling due within one year

Trade creditors
Taxation and social security
Accruals
Deferred income		 Total
Total
2022
2021
£
£
4,171
15,353
66,283
51,915
91,174
63,742
1,105,000
-
1,266,628
131,010

14 Operating lease commitments

On 31 December 2022, the charity had the following operating lease commitments:

Not later than one year
Later than one year and not later than five years
Over five years		 2022
2021
£
£
104,792
104,792
294,000
398,792
-
-
398,792
503,584

The above commitments are for an operating lease on the 2nd floor, 9 Holyrood Street.

15 Related party transactions

There were no related party transactions.

16 The funds of the charity

The fund of £818,005 on 31 December 2022 was unrestricted.

17 Analysis of changes in debt

The charity had no debt during the year.

26