centre"o-_cities ANNUAL REPORT AND ACCOUNTS FOR THEYEAR ENDED 31 DECEMBER 2023 Registered Office: 9 H01yrc Stree( LcThkn SE12EL A Charitable Ccffipany Limit&J by Guarantee Registered in England and Wales Company No. 06215397 Registered Chartty No. 1119841
CENTRE FOR CITIES CONTEKrs YEAR ENDED 31 DECEMBER 2023 Pages Truste8s' Annual RetK)rt 3-12 Independent Auditorfs Rert 13-16 statement of Finanaal Adivtbes 17 Balance Sheet 18 statemert of Cash Flows 19 Notes to the Accounts
CENTRE FOR CITIES TRUSTEES. ANNUAL REPORT YEAR ENDED 31 DECEMBER 2023 Foreword by Nigel Hugill, Chalr of Centre for Cities In 2023, the Centre published 15 searCh re[$ and briefings. more than 70 blogs. released 28 ry)dcasts and organised 49 public events. In January 2023, we launched ¢)ur flagship annual report on urban Britain. Cities Outl¢)ok 2023. It prowded an in-depth anatysis of how the problem of economic inadivity across Brrtain's aties and large towns has increased Sin the covid 19 pandemic. It also set out the long-t8m consequences and implications this problem wll have for the Govemment's levelling up agenda. The researth was covered by many national and Ial media outlets and has influenced govemment tK)licy on levelling-up. Levelling up has always been a fu5 for the C8ntr8 and w programme during the year has addressed many of the re components of the levelling-up agenda. Including setbng out a new approach to idenlifying and analysing innovation ctuslers, tracking the perfomianco of Britain's high streets, and setting out the contribution that (ies make to the countrls nel zero ambitions. We also undertook detailed work IcK)king at the perfoman( of the transport systems in Glasgow and Cardtff and how they g)uld be imtxoved. We published two landmarks retths during the year whith have been widely cited by the media, and have changgd the nature of their respective Folicy debates. One looked at Lortdon's sluggish projuctivity perfomiancE since the great recession which showed that more than 40Vo of the national prtsductivty slowdown since 2008 was due to London's poor perf0mlan. And the second repjrt highlighted the size of the UK'S housing problem. Based on comparative European anaWis it showed that the shortfall of homes nol built in the UK since the seCd wortd war now stands at 4.3 million. It's highly likely that there will be a general electKJn in 2024. In preparation the Centre wtll continue to: emphasise the role that atie5 (wrrently play and shoukl be playing in the nation81 e(x)nomy, and how the gap between Ihe two can be dUced. set out what the future of devolution should look like, both in tems of deepening devolution in places that alre have s(Nne. and spreading devolution to places that need it. help tY leaders to understand their ecorv)mies and to develop evIdere-based policies that will improve the economic r*rfomiance of their places. In doing this, the Centre v51 seek to infom the wlicy debate by providing sound, evidence based analysis and advice. and working with an ever-growing nefvrk of local and national decision-makers. Nigel Hugill
CENTRE FOR CITIES TRUSTEES. ANNUAL REF>ORT YEAR ENDED 31 DECEMBER 2023 The Board of Trustees are pleased to wesent Iheir TTUStees' Annual Report and Accounts for the year ending 31 De¢ember 2023. The Trustees, Annual Rewrt contains a Directors, Report as required by company law. The accounts comply with the requirements of the Companies Act 2006 and Accounting and Rewrting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance Yth FRS102, effective I January 2019. Our Objectives and Activities Centre for Cities is an irKlependent tharity. We work closely wilh urban leaders. Whitehall and businesses to ensure our vrtwk is relevant, accessible and of practical use to local and national policymakers. The purposes of the tharity, as set ¢Jrt In the Memorandum of A350ciation. are: To promote education for the public b8n8fft in issues of economics and public policy in relatn to titles large towns in the United ngdorn and elsevthere in the vnrld: To promote fcy Ihe public benefft sear) in the aforementiorled fields" and To publish the useful results of such researth. The vision shaping our acknvtties eath year is of a UK economy that makes the most of dffferent cities. potential to increase economic prosperity across the country. We Work to understand how and why e0)niC with and char¥Je take place in cities in the UK and disseminate these firKlings widety in orderto help British cities improve their economic perforniance. To futfil its purpose. the Centre undertakes the following actNithes: 1) Producing high-quality research and policy: We publish a range of original research reports and briefings. blogs and paper5 on the economic perfoThance of UK cities arKI large towns- and how to improve opwrtunities for their residents. Our research is prryjuced by an in-house team of analysts. with input from extemal experts. The research is of high qualty. drawing on a robust evidence base. It aims to inform public debate. Folicy and practice and includes the development of clear, evidence-based wlicy protM)sals. We do this independenty bLrt in consullation with Whrtehall departments, tL)litscal parties. thal authorities and business organisations. We cary out researth in aSsociatn with UK cities and bring together netwoths of Ioc81 and national deci$ion-mak8rs frrmn both the public and the private sector to Share knowledge. This enables u5 to infom p)liw a1 pradi¢e direcuy and to publicise lessons from this worl which are r8Fevant to other ctties. 2) Engaglng wlth stakeholders: To ensure the public beneffts of the work we do. all our reports and papers are available to the public free of charge on our website and we disseminate these findings to varied audien5 through national. Ial and specialist broadcast and prinl media. socsal media and presentations al our own and others. events. Our events programme indudes public events (free to attend) as well as events at the major paty conferences each year. We publish a regular newsletter and work in partnership with others. induding joumalists. universities and L?ti85. to publicise the findings of our work_
CENTRE FOR CITIES TRUSTEES. ANNUAL REPORT YEAR ENDED 31 DECEMBER 2023 3) Promollng an evldencfrbased approach to poliey4naking." We are a partner in the What Works Centre for Local Economic Gro IWWG). part of the What Works Netsyork, with the London Sd)(x)l of Economicz. It is funded by the ESRC and govemrnent departments. WWG analyses which policies are most effective in suppotting and increasing local economic growth. It works to prowde solutions for loca5 and national policymakers thrcMJgh.' a) Systematically reviewing the evidence base on Folicies for l¢)cal economic gr¢)wth using a robust methoddogy: b) Working wilh and conveni nts and works for local authortties, LEPS, central govemment and businesses to help them understand and make better u58 of evidence in designing and deltvering p)lioy'. c) Improving the of the UK eviden baseby helping to develop 'demonstration' projeGts. or local policy experiments. In 2023 we undertook V•Drk in the following areas: Cities Outlook- The Ilagship annual Cities Outlook report in 2023 looked at the scale of economic inactiwty across places in the UK. highlighting spatial divides in 'hidden unemployment,. National, regional and trade media reported widely on the key findings. the launch webinar attracted over 600 attendees. hearrng from the Govemment's Levelling Up minister and other high-profile cnmmentators. A supwrting podcast series, blog content and infcoraphic reached a total of over 5,000 people, playing a key role in rAxilioning Centre fcK Cities as a leading voice in economic poliGy. Cost of living- Centre tr Cibes continued lo run its Cost of Living tracker for the first hair of the year until inftation passed its peak, provtding local leaders and officials and media with information about the impact of inflation in their area. Unemployment - Centre for Cities conduded ils monitoring of the labour market's recovery following the shocks over the previous two years as employment rates stabilised at or above their Pre-paeMiC levels in August 2023. High streets - Centre for Ctties undertook analysis of retsil spending lo assess whether an i&aSe in online business during the pandemic had affected high streel spending in urban area5 across the UK. Further analysis a(J05s several briefings explored the relationship between cities and smaller places nearby, providing evidence of the close economic relationship betsveen the two, challenging prevailing views. Hybrid working- A major proie¢t examined upto-date figures on weekday travel into the City of London, making recommendations on planning for a hybrid working world and managing tts long48mi economic impacl to the Mayor of London's office. The resulting report. offi politics supported ongoing engagement wtth the Mayorfs office and secured national media coverage. Prcyjuclivity - Two projects IcK)ked at ways to unlock productivity growth in sp8Ctfic C4ty-regions. All cylinders.. The rolg of the Midlands Engine in the British economy looked at the impact of underperformance in Midlands citie5 on the national economy and how to address it. Capital losses.. The mle of London in the UK'S productivity puzzle explored how London's prjUc11vty could be improved having failed to fully recover since 2008. Housebuilding and planning - A rewt tided The housebuilding crisis." The UK'S 4 mllllon missing homes. one of Centre for Cth"es' nst impactfvl yeL set new terms for
CENTRE FOR CMES TRUSTEES, ANNUAL REPORT YEAR ENDED 31 DECEMBER 2023 the debate over housebuilding and planning refo. Months after publication st continues to be quoted in national media and policy debates as a reliable estimate of the UK'S supply sh¢)rtfall and a valuable anatysts of the housebudding challenges. Local govemment fundirYJ- Centre for Cities made several proposals for streamlining local govemrnent funding. a commitment made in the Govemment's Levelling Up White Paper in 2022. It will continue building on this work in 2024 as Government's funding simplrfication plan is rofied (xrt. Cenlralisation Centre for Cities made significant o)ntributions to iwo pieces of Resolution Foundation's Economy 2030 Inquiry. most prorninently the reports A fale of Two Cities and In place of centralisation." A devOlutn deal for London. Greater +llanchester. and the West Midlands. The conduding Ending stagnation report by Resolution Foundation extra(aed key firNJiws ab(xrt the UK'S mosdy-urban economy and crucial policy recommendations from this work which has measurably increased fOS on the role of big crfÉies' underperf0nn8n in national economic shortfalls. Innovation- Centre for Cities. using evidencè on the locations of innovative fiTms from Data City, presenting its analysis of the geography of innovation hotspots to Department for Science. Innovation and TechrlogY and produced a final report that highlightèd the importance of urban infrastructure to cxrtlÈng edge business. Urban transwrt- Over several reports, Centre for Cities surveyed public transport in UK cities. focusing on three citi.es in Wales and Glasgow in Scotland. Resulting reports led to coverage at devolved national level- as well as in transport trade and specialist media - and contribLrted to high-level debates OV national active Iravel, public transport ridership and net zero goals. Centre for Cities continued providing media commentary on key natbonal and devdved transport issues, induding bus franchising as the launGh of the Bee Network in Manthe5ter provided a crucial milestone. Cty leadership - In a series of stx pcKJcast episodes downloaded over 2.IX)O limes in tolal, Centre for Cities spoke to leaders across the county and of all political sides abcwt their approath to leading a ryty, the nature of leading a place. and the policy issues they have faced. What Works Centre for Lo1 Economic Gr0-The Centre has wntinued lo deliver against tts objectives. Highlights indude the publication of four eviden briefings and five rapid evidence reviews Cft topi relevant to levelling up (public procurement, public sector relocation, public spaces. and fair employment). publication of guidance on using logic models. a blog series on core economic ConpÈS (aimed at local policymakers who may not come from an ecorK)rnic background), providing advice and support to central govemment policymakers on evaluating key local growth policres. and hosting events and trainirKJ (wrth OffirS from over 100 local government organisations attending training or events in this peri(MJ). Publlc Beneflt The trustees of a charity must have regard to the Charity commiss,$ guidance when exercising any powers or duties to which the guidance is relevant. The Charity remains committed to aim of provtding public benefft in accordan wtth the Charibes Act 2011. The Trustees also Lxjnfiryn thal, in carying out its Principal Activities. the Centre provided public benefit during 2023.
CENTRE FOR CITIES TRUSTEES. ANNUAL REPORT YEAR ENDED 31 DECEMBER 2023 The Centr8 produces high-qualty research and lIcY anatysis that are independent of govemment. individual clients or companies. The research is made available widely and free of charge to individuals. organisations. pradÉlioners and others a¢tFve in urban ecx)nomic development. The Centre constantly invests in improviJ outreach to ensure our work reaches more policymakers, practitioner5 and mefflber5 of the public. To complement our research work, we deliver papers, which focus on pradical way5 in which UK cities tackle longstanding challenges SLth as tmjuclrvty and unemploymént. drawing on the UK and intemal1al case studies. In 2023, w8 released over 100 briefings, blogs and research repts covering topiGs including clties, recovery from parKlemic restris*ons. efforts to increase public transport ridership and active travel, the potential for fiscal devolution to England's largest ctties, and the role of big cities in driving prosperity in their regions. Flnancial review The year ended with a surplus of £141,316 (2022: _£216.106). Funds carried foTward we £959,321 (2022: £818,005). Durtng the year. our main activities were Research. Extemal Affairs and the What Worf(s Centre for Local Economic Growth. The income arKI expenditure linked to these activtties were unrestricted. Incom8 Total incoming resources were £1.878.873 {2022.' £1,751,747). Our main source of income was a core grant frotn the Gatsby Charitable Foundation. In 2023. we r1ved £1,100.000, which was approximately 59 per cent of all our reveTJues. Other funding was generated through sponsorship agreements for research projecas and events. In 2023. the What Works Centre for Lwal Ecommic Growth project run in partnership with the London Schwl of Economics generated £488,53212022: £462.730) for the Centre. Resources expended The Cerrtre's expenditure was £1.737.557 (2022: £1.967.853). The decrease in expenditure was mainty due to the Icwer than in the previous year staff and projects CL)sts. ReseNes Policy The Centre for Cities. reserves are defined as unrestiicted net (xjrrent assets, and they are set to the equivalent of at least six months of the operating costs. The reserves are required to FKolect the continuty of the organisation against drops in income, to cary out researth projects not fvnded by swnsorship. for Gapital items replacement and to cover unplanned emergencies and potential risks. Free reseNes held on 31 December 2023 were £950,190 {2022: £804.7101. up by £145.480. The surplus on the free reserves will be expended in 2024 on new advocaGy and research projects.
CENTRE FOR CtriES TRUSTEES, ANNUAL REPORT YEAR ENDED 31 DECEMBER 2023 FUTURE PLANS To have the impacl we desire, we need to continue to produce excellent researth and cornmunicate it effectively across our govemmenl and uty neiworks, and lo the public. In 2024. we will focus on those areas of national and local wlicy of most importanGe lo the economic perfonnance of cities: The flagship Cities Outlook 2024 reFM focuses the shortrall in cumulative average disposable incomes across cities and large lowns in the UK since 2010 and aims to set the agenda in an election year. It focuses how places are faring and what progress has been made towards levelling up. Centre for Ctties will continue to place th8 emphasi8 on highlighting the ecA)nomic perfomiance ofthe UK'S cilies and large towns regular media commentary on key economic milestones including the Chancellorfs Budget. The local. mayoral and general elections taking place in 2024 will present opportunities to inforni national and local debates. Centre for Cities working in partnership with What Works Growth will progress ils research into streamlining Ial govemment financing. resutting in recommerFdations that aim to infonn Govemment thinking in Fts approach to grant schemes. With the support of a grant fr(m Charities Aid Foundation. Centre for Cities wll compare the geographies of charttable giving and local economic need. The resulting publication will be launched wtth an online event and will be the subject of policy roundtables laking pla following the publication. Centre for Ctties is undertaking a project cnmparing the contribulion of big cities to economic growth in the UK and in other G7 countrFes. This will compare large urban areas, share of eo)nomic acvty in dtfferent couritries and identify how to make the UK'S econcKnic growth compete th the G7. Centre for Cities will continue to examine data on the retum to the office and passenger traffic on public transwrt to offer recommendations on managing the economic impact of hybrid Vrking. The 'Realising RegIOr Growlh, events series ntinUes. drivlng the discussion around regional grobth opportunities th the n8Xt event planned for South Yorkshire. To tKnst the impact of wr research programme. we WTII run a busy schedule of public events including a four-part series ofonline panel events in partnership Vth LSE Cities, a programme of receptions and report launch events. online briefing events ahead of mayoral elections f(x audiences across the o)untry and public panel d58cussions at party conferences. Engaging with senior ru[e5 from business, academia. wlicyTnaking. local and national government and Westminster to present researth and ideas. infonn the public debate and diSsS policy and practice will continue to be an imp)rtant part of Centre for Cities. strategy to influence policy outcomes in recent years.
CENTRE FOR CMES TRUSTEES. ANNUAL REPORT YEAR ENDED 31 DECEMBER 2023 REFERENCE AND ADMINISTRATIVE DEfAILS Charity number Company number Registered office Website: 1119841 06215397 9 Holyr( Street, Londo SE12EL ntreforcities. REGISTERED AUDITORS: Chariot House Chartered AcccAJntants 44 Grand Parade Brighton and Hove Brighton BN2 BANKERS: HSBC Bank PLC 16 King Street London WC2E WF DIRECTORS AND TRUSTEES The directors of Centre for Citses are its trustees for the purrx)se of chariiy law. The trustees serving during the year arKI up to date of approval of the acrounts were as folk)ws: William Nigel Hugill (Chaiman) Afexander Charles Plant OettLn3wfL0231 Nicola Jane Yates (hfton 29m2r20241 Tom Messenger Riordan Miranda Helen Sharp Atan Paul Harding John James Cummir Joseph Christopher Burns Deborah Cadman leJe10 Jane Elizabeth Robinson 1VkneW231 Marc Elliot Mogul Cffjx•Jl4} KEY MANAGEMENT PERSONNEL: Andrew Carter Paul Swtnney Sian Morgan Anna Bullegas Chief Exe(xrtive Director of Policy and Researth Director of Exlemal Affairs Head of Finan and Operalions
CENTRE FOR CITIES TRUSTEES, ANNUAL REPORT YEAR ENDED 31 DECEMBER 2023 STRUCTURE, GOVERNANCE AND MANAGEMENT Govoming Documont Centre for Cities is a company limited by guarantee. govémed by its Artides of Association, last amended on 11 April 2011. Appointment of trustees The Board of Trustees, who a also M)be[S and Dirertors of the Charitable Company, is s8lf-appoinling. A trustee's period of Offi is three years from the date of appointment or reappointment. A Irust&e may be re-appointed by the trustees ts a further riod of three years. New members of the Goveming are elected on the basis of nominations from the Trustees and the executive officers based on the candidates, professional qualities, experience and personal competence. Trustoe inducli¢)n and trainlng All new trustees are provided Vth an induction pack giving full details of how the Charity is constituted and operates. Any further inforrnation they requiie 15 provided by an appropriaté senior person wtthin the Charity. Organisation The Board of Trustees consists of not less than three members and is nol subject to any maximum. The Board is reskK)nsible for the overall govemance of the Charity. It meets three times a year to oversee the affairs of the Centre. The Board appoints a Chief Executive to manag8 the day-ti>day operaliorks of the charity. Related partles Upon appointment, each trustee makes full Itten disclosure of interests. including r81ationships that may be of relevance to the Centre's work and posts held that could potentially re5uIi in a conflict of interest. This wtitten drsdosure wrll be kepl on file and trustees are emailed annual to check that it is up to date. It can be updated at any time throughout the year. In the course of meetings or acbvtttes. twslees dj'sdose any interests in a transadion or deasion Ythere there may be a conflict between the organisation's best inte$t5 and the trustee's best interests. or a conflict between the best interests oftsvo organisations th whith th8 Trustee is involved. In the current year. no reiated party transac11¢S were rewted. None of oUrtrleeS receives remuneration or other beneffts fr(xn the chartty. Pay pollcy for staff including key management p8rsonno1 The pay of all staff, induding senior staff, is rewewed annually. The jent wlicy is lo award all staff an in(xease in saary provided the Centre reaches a fundraising milestone set by the Finance and Aud Committee. The IneaSe is based on a review of changes in the cost of living during the cour88 of the year and is agreed by the Finan and Audit Committee. All 10
CENTRE FOR CITIES TRUSTEES, ANNUAL REPORT YEAR ENDED 31 DECEMBER 2023 the Centre's salaries. induding those of Sen 5tsff. are benclynarked against pay levels in similar organisations. Risk management The establish8d risk assessment system inVoe$ identrfw'rvJ the types of threats the Charlty fa, priortlising them in terms of impad and rewmmendirKJ rtrOlS to mitigate Ihem. The ongoing risks continue to be around seoJring sufficient funding to deltver the Centre's ambitions and ensuring our is of high qualty arKI Folicy relevartce. The funding risks are mitigated by engaging wth a wide range of potential sponsors and building long-term relationships with them. To ensure our work is of the highest standard and relevan we have a qualty assurance and wlicy relevance process in a¢e. with intemal and extemal checks at key stages to peer rewew our work and ensure it continues to be objective. independent. robust and rig1)ro. The Board is satisfied that. for all rna1 risks, appropriate ryjntrols have been put in place which are regularly reviewed and adjusted acuxdingty. 11
CENTRE FOR CMES TRUSTEES. ANNUAL REPORT YEAR ENDED 310ECEMBER 2023 Statement of Irustees, responsibilities The Charitys tnJ5tees (who are also Ihe directors of Centre for CFties for the purposès of company law} are resFonsible for preparing a trustees, annual rewrt and accounts in accordance with applicable law and Unrted Kingdoffl Accounting Standards {United Kingdom Generally Apted Accounting Practi) including FRS 102 'The Finanaal Reporting Standard applicable in the UK and Republic of Iland.. Company law requires Chartty trustees to prepare accounts for ead) year, which give a true and fair view of the state of affairs of the charitable company and of ihe incoming resource5 and application of resources. induding the incnme and expenditure. of the charitable company for that year. In preparing the accounts. the trustees are required to: select suttable am)unting FM)licies and then apply them consistenuy, observe the methods aNJ principles in the Charities SORP (Statement of Recommende(I Practice}: make judgements and estimates that are reas¢)nabFe and prudent., State whether applicable UK accounting standards have been followed, subject lo any material departures disck)sed and explained in the ac£ounts: epare accourT15 on the going n(n basis unless it is inappropriate to esume that the Charity will continue in operati. The trustees are spOnsible for keeping proper accJntin9 records that disclose wf(h reasonable accuracy at any time the finanaal position of the Charity and lo enablo Ihem to ensure that the accounts compty with the Companies Act 2006. They are also responsible for safeguarding the assets of the charilable company and hen taking reasonable steps for the prevention and detection of fraud and other irrgjularities. Dls¢losure of InfOatIOn to audllor Each oflhe trustees has confimied thal there is m infomiation of which Ihey are aware. which 15 relevant to the audit. but of which the audÉtor is unaware. They hav8 further confimied that they have taken appropriate steps to identrfy such relevant infomiatK)n and to establish that the auditor is aware of such information. Audltor In accordan Vth section 485 of the Companies Act 2(X)6. a resolulion proposing that Chariot House Lld be reapwnted as auditr* ofthe c(Mnpany will be put to the Annual General Meeting. alf of of Trustees Nigel H Date 12
CEKniE FOR CITIES STATEMETr OF FINANCIAL ACTivmES (INCLUDING INCOME AND EXPENDfTURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2023 Oplnlon Wo have audited the financial statements of Centre for Cities (the 'charitable companl) for the year ended 31st December 2023 which comprise the Slatement of Financial Activities, the Balance Sheet, the Cash Fk)w Slatement and notes to the finanaal statements, induding a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and Unf(ed KiTrJdom Accounting Standards {United Kingdom Generally Accepted Accounting Praclice). In our opinion the financial statements: give a true and fair view of the stste of the charitable companvs affairs as at 31st December 2023 of its incA)ming resourrEs and application of resources, including its result. for the year then ended have been properfy prepared in accordance with Untted Kingdom Generally Accepted Accounting Pradice,. arKf have been prepared in accordance requ1Ments of the Companies Act 2006 Basls for oplnlon We conducted our audit in accordance th Intemational StarKlards on Auditing {UKI (ISAS (UK)) and applicable law. Our resFy)nsibililies under those standards are further described in the Auditorfs responsibilities for the audit of the accounts seclion of our report. We are independent of the charity in accordance with the ethical requirements that are levant to our audit of the accounts in the UK, including the FRC'S Ethical Standard. arKJ we have fulfilled our other ethical responsibilities in ac(x)rdance wth these requirements. We believe that the audit evidence we have obtained is sufficient appropriate to yowde a basis for our opinion. Conclusions relating to ongoing concem In auditing the financial statemerts. we have aduded that the TnL8tees' use of the going concem basks of accoting in the weparation of the accourrts is appropriate. Based on Ihe work we have perfOed, we have not identified ary material uncertainties relating to events or conditsons that. indrvidualty or collectively. may cast signTficant doubt on the charitable company's ability to continue as a going concem fcf a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Tnjstees th respect to going cxincem are described in the relevant sectiLm5 of this repc Other infomiatlon The trustees are responsible for Ihe 0th8r information. The Other infomatton comprises the information included in the Annual Reprxt. otherlhan the finanoal ststem8nts and our Report of the Independent Auditors thereon. 13
CENTRE FOR CMES STATEMEMf OF FINANCIAL ACTIVMES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2023 Our opinion on the financtal statem8rts does not ca)ver the other infornation and, except to the ext8nt otheiS8 8xpliatly stated in our report. we do not express any fomi of assurance conclusion thereon. In connection viith our audit of the financial ststements. our SponSibl1 is to read the other information and. in doing so. consider ether the other infomation is malerially inconsistenl vrith the finanaal statements or (xjr knoledge obtained in the audtt or otheThvise appears to be materialty misstated. If we identfy SLth material inconsistencies or apparent material rnisstatements, we are required to detemine whether this gives rise to a material misstatement in the finanoal statements themselves. If, based on the work we have performed. we conclude that there is a material misslatem8nt of this other infornalion. we are required to Teport Ihat fact. We have nothing to reFQrt in this regard. Oplnions on other matters prescribed by the Companlos Act 2006 In our opinion, based on the work undertaken in the course of our audtt: the informalirm given in the Report of the Trustees for the financial year for whith the financial statements are prepared is consrstent with the financial statements.. and the Report of the Trustees has been wepared in accordance wtlh applicable legal requirements. Matters on whlch we are requlred to report by exceptlon In the light of the knowledg8 and understanding of the charity and its environment obtained in the course of the audtL we have not hdentified material misstatements in the Report of the Trustees. We hav& nothing to report in respect of the folkIng matters where the Companies Act 2006 requires us to report to you if, in our opinron: adequate accounting r8cJJrds have been kept. or retun adequate for our audit have not been received from branches Vistted by us" or the financial statements are not in agreement with the ac[Uting records and retums: we have not received all the infomiaion and explanations we require for our aud¢ c the Trustees were 1 entttled to tske advantage of the small companies exemption from the qUirement to rrfepare a Strategic ReFQrt or in preparing the Report of Ihe Trustees. Responslbilltles of trustees As exFSained more fulty in the Statement of Trustees. Responsibilities. the trustees, who are also the directors of the charitable company for the purpose of company law, are responsible forthe preparation of the financial statements and for being satisfied that they give a true and fair view. and for such intemal control as the trustees deternine is necessary to enable the preparation of financial staternents that are free from material misstatement. whether due to fraud or error. In preparir¥J the financial statements, the trustees are reswnsible for assessing the charitable company's abilty lo continue as a going concern, disclosing. as applicable. matters related to going concem and using the going concem basis of accounting unless the 14
CEPrniE FOR CITIES STATEMEKf OF FINANCIAL ACTMTIES IINCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2023 trustees either intend to liquidate the tharitable (xxnpany or to cease cperation5, or have no r8alistic altemative tyjt lo do so. Our responslbilities for the audit of the financlal sL*ements Our objectives are to obtain reasonable assuran about vthether the financial statements as a whole are free from material misstatement. whether due to fraLKI or error. and to issue a Report of the Independent Auditors that indLKles our I)pin. Reasonable assurance is a high level of assurance bui is Trjt a guarantee that an audit conducted in acc£Jrdance wth ISAS (UK) will always detect a material misstatement vthen rt exists. Misstatements can arise from fraud or error and are considered material rf. indTwdually or in the aggregate, they could reasonably be expeded to influence the ecorlIC deasions of users taken on the basis of these finanaal staternents. The extent to which our prowlures are capable of detecting irregulartties. including fraud is detailed beh)w. We gaInj an understarKling of the legal arKI regulalory framework applicable to the charitable company and the industry in which Tt operates. and considered the risk of acts by the charrf(able company that We contrary to appIlble laws and regulations, including fraud. We considered these risks in the light of various factors including the level of complexity, subjectivty. uncertainty, potential management bias. fraud. materiality and any other relevant factors. We considered the extent to which these would have a material impacl on the financial statements and designed our audit work accordingly. We Identified Ihat the followng areas were of hh risk" Completeness of income. We perfomed vari$ audit tests to ensure that income was not materially understated in the financial statements. Management override of controls. We perfoed vamus audit tests to ensure there was no material management override of controls We designed audit prcdures to respond to the risks identified. recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting frorn 8Or. as fraLKI may involve deliberate conceament by, for example, forgery or intentional misrepreserrtations, through collusion. W& focussed on laws and regulations which could give rise to a material misstatement in the financial statements. induding, but not limtled to. the Companies Act 2006. UK tax legislation, Charities Act 2011 and Charilles SORP 2019. We did not find any instances of non-compliance or breach of the legislation framework applicable to the charitable company. Agreed the financral statement dtsGlosures to Kjeng supporting documentation. Made enquirFes with management and of legal o)unsel when Csidered neSSary, performing analytical pr(edureS to identlfy any unusual or unexpected lationShIpS that may indicate risks of material misstatement due to fraud. and reviewng significant or unusual transactions to identtfy their underlying suptK)rting rationale 15
CENTRE FOR CITIES STATEMEKf OF FINANCIAL ACTMTIES (INCLUDING INCOME AND EXPENDITURE ACCOUND FOR THE YEAR ENDED 31 DECEMBER 2023 Discussed and reviewed the thaiity's business mc#Yel and fonNard planning to assess going cOnM Carried out subslantive testing tjn In¥e and expendilure Re-perfomied reconciliations of control accounts. and recalculated items such as depreciation Inspected the minutes of m8ètirys of those charged wtth govemance. and made direct enquiries of management arKI the board of tru5tee5 conceming the charrivs policies There are inherent limitations in ts art prclureS describetl above aTKI. the further removed non-compliance with lav and r8gulations rs from the events and transactions reflected in the financial statements. the less likely we would become aware of rt. We did not identify any key audtt matters relating to irregulartiies. induding fraud. As in all our audits, we also addressed the risk of management override of intemal controls, including testing joumals and evaluating whether there was ewdence of management bias by the dir8Ctors that represented a risk of material misstatement due to fraud. A further description of our resSibIlItieS fLY th8 audtt of the financial statements is Socaled on the Financial Reporting Council's websile at wm.frc.org.uklaudilorsreswnsibilities. This description fomis part of our Rewrt of the Independent Auditors. Use of our r•port This report is made solely to the charitable Comp3 members. as a body. in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audtt work has been undertaken so thal we might state to the charitable companys members those matters we are required to state to them in an auditorfs reFort and for no other purFK6e. To the fullest extent permtM6d by law. we do not accept or assume responsibilty to anyone other Ihan the charitable company and the charttable company's members as a body, for this rewrt. or forthe opinions we have foThed. Mark Partridge FCA Statutory Audtior) for and on behalf of Chari)t House Limtted Chartered Accountants and Statut(Ky Auditor 44 Grand Parade Brighton BN2 9QA Date: . 16
CENTRE FOR CITIES STATEMENT OF FINANCIAL ACTMTIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Notes Income from: tlonatlon$ and Grnnts 1,100.000 1.100,IXIO Charltable actmlles: Research 137.166 118,333 Extemal Affairs 83.500 62.095 What Works Centre 488.532 462,730 Totsl from Gharitsble adlvltles 709.198 643,158 In¢ome from Investmènts 28.787 2,366 other Income 40,888 6.223 Total Income 1.878.873 1,751,747 Expenditure on: Charltable activÈti•$: Research-Policy 642841 772.201 Extemal Affairs 606,584 732,922 What Works Cenire 488,532 462.730 Total 1.737.557 1.967.853 Not Income and net movement in funds 141.316 1216,106} Reconclllatlon of fun(ts Total funds brougm forward 818,005 1,034,111 Total funds carrlod forward 959,321 818,5 AII fiFnds in the current and comparative year were unrestrftted. All income and expenditure derive from contirJuir¥ artr¥itie5. The statement of finanual artNItFes a150 complles the requirements for an income and expendlture account underthe Companies Art 2fJ)6. 17
CENTRE FOR CITIES 8ALANCE SHEET AS AT 31 DECEMBER 2023 2023 2022 Notes Flxed a5$ets Tangibie assets 9,131 13,295 Total flxod assets 9.131 13,295 Current assets Debtors Cash at bank and in hand 12 289.251 824034 388,030 1,683,308 Totsl current assets 1.113.285 2.071,338 Liabllltles 13 163.095 163.095 1.266,628 1.266,628 Net Gurront assets 950.190 804,710 Total assgts less currert Ilabllttles 959.321 818.005 Unrestrided fvnds: 16 959,321 959.321 818,005 818,005 Approved and authorised for issue by the Board of Tw5tees on 2Tr TVWL Llknnd signed on their behalf by Nigel Hugill. 18
GERE FOR CMES STATEMEKf OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Ngt cash provld•d by op•ratlng aclfvltles 883,5) 684.528 Cash flow$ from investing xtivttlès: Int&rest receiv 28.787 2,366 Purtase of langitAe fix•1 assets 14.5271 24.2 {4,0351 11.669} Change in cash and cash w4uiv8lenls in th8 reporting rK)d 859,274 682,859 Ca¥h arKI $h equivabnts at Ihe beginning of the reporting pericJ 1.683.308 1,CW.449 Cash and ¢•sh èquNalents 8t Ihe end of th& rewllng perlod 824.034 1,683.308 RECONCILIATION OF INCQMEIIEXPEMtxtURE) TO NET CASH FLOW FROM OPERATING ACTfrfiTIES 2023 2022 Nat income fcf the repNbng PErw)J Adlustm¢nt$ for. Deprwation charges Interest receivthle Decrease in debtors De8$9 in creditors 141.316 1216.1061 11.962 12,3661 1244,5801 1.135.618 128,7871 98.779 (1.103,532) Net cash provid1 by {abscrt*d byy T8Cl acar4i 883,534 19
cEPE FOR CITIES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 AccouvfiNG POLICIES Accounting policies provKle the basis on 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 accordan with the Charitys Memorandurn & Articles the Companiés Ad 2006 and "Accounling Reporting by Charities.. Statement of Recommended Praclice aPpCable to tharities preparing their accounts in accordan wilh the Financlal Repting Standard applicable in the UK and Republic of Ireland {FRS 102) (effethe 1 January 2019)". The Charity is a Public Benefft Entity as defined by FRS 102. Assets and liabilities are inttially recognised at historFcal or transadion value unless otherwise stated in the relevant kK)ticy notels). The financial statements are prepared in F*)unds sterfing. which is the functional currency of Ihe charity. Monetary amounts in these financial statements a rounded to the nearest £. (b) Going concern The Charty has confimied core funding of £1.100,CW per annum from the Gatsby Foundation for the period 2023 to 2025. As set oul in 'Reserves Polity in the Truslees, Annual Report. Ihe Charily holds reserves in the minimum required. which are available to support research and advocacy in coming years. The Trustees have a reasonable exPtatIon that the Charity has adequate resources to remain in operation for the foreseeable fijture. Thus, the Trustees continue to adopt the going cL)ncem basis of accounting in preparing the ac0nIS. (c) Crltlcal acc¢)unting estimates and Judgements In the application of the Chariws aciyjunting policies, the Tnjstees are required to mak8 judgements, estimates and assumptions about the carying amoLtnl of assets and liabiltties that are not readily apparent from thher sources. The estimates and assooated assumptions are based on historical experience and other factors that are considered to be relevant. Actual result5 may drffer from these estimates. The estimates and underiying assumptions are reviewed on an ongting basis. Revisions to accounting estimates are re¢ognised in the perFTrJ in which the estimate is revised where the revision affects only that penod. or in the period of the revision and future perioJs where the revisK)n affects both current and future periods. There were no criti1 aw)unting estimates during the period (d) Recognitlon of income Donations are accounted for as received. In the event that a (k)natit)n is subject to fulfilling perfomiance conditions before the charity is entitled to the funds. the income is deferred until either those condttions are met in full. or their fulfilment is wholty within the control of the charity. and it is probable that those condilions wrll be fulfilled by the reporting period. Grants are recognised when the charity has an entitlement to the funds and any conditions linked lo the grants have been met. INhe perfomance condition5 are attached to the grant and are yet lo be met. the income is rec(KJnised as a liabilty and induded on the balanc6 sheet as deferred income to be released. 20
CENTRE FOR CMES NOTES TO THE ACCOUTrS FOR THE YEAR ENDED 31 DECEMBER 2023 (e) Interost roc01vable Interest on funds held on detM)sit induded when receivable. The charity records it upon notification from the Bank. (fj Funds Funds which are expendable at Ihe disuetion ofthe Trustees in furthera of the objectives or administration of the Charity e dassified as unrestricted funds. Ig) Flnanclal Instruments The thartty ha5 elected to apply the provisions of Section 11 'Basic Financial Instruments and Section 12 '(Xher Financial Instruments Issues. of FRS102 to tts finanal instruments. The Charity only has financial assets and liabilities of a kind that qualtfy as basic financial instruments. These financial instruments are rew3nised at the amount payable or receivable when the instrwnent is first recognised and subsequ8ntty measured at their settlement value. (h) Debtors Trade and other debtors are recc*3nised atthe setuemenl amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade dtscounts due. Cash and cash equivalents Cash and equivafents comprise cash on hand aThJ call de$its. and other short-temi highty liquid investments that are readily convertible to a known amount of cash and are subject to an IngnifICant risk of change in value. lil Liabilltles Liabilities ar& recognised when there is an obligation at the Balance sheet date as a result of a past evenl. it is probable that a trartsfer of economic benefit wll be required in settlement. and the amount of the settlement can be estirnaled reliably. Liabiif(ies are recognised 8t the amount that the company anticipates it V1] pay to settle the debt or the amount it has received as advanced payments for the goods or Sery1 it must provide. (k) Expendlture and recoverable VAT All expendmure is reccgnised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expendtture heading that aggregate similar costs to that category. Irrecoverable VAT is charged as a cost against the adivity for whith the expenditure was incurred. 21
CENTRE FOR CMES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 (l) All¢)&10n of support cost$ Support Gosts are the cxjsts of those functions that assist the work of the ¢harity but are not directly charitable activities. Support costs include HR. finance, payroll, govemance and general office costs which support Centre for Cit. adivrties. The basi8 on which support costs have been allocated is set t in rKrte 7. (m) Operating leases Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the periol of the lease. {n) Tangible fixed assets Tangible fixed assets are stated at cost including any in(xdenlal expenses of acquisition and unrecoverable VAT where appropriate. Atl assets costing more than £500 are capitalised. Depreciation is calculated to wrrte off the ojst of fixed assets on a straight-line basis over their estimated useful lives. Depreciation is charged fM the month of acquisition. The principal estimated useful lives for this puryx)se are: Computer equipment a1 software- 3 years Fixtures and Ftttings - 5 years Leasehold Improvements - Over the frfe of the lease To the extent that VAT is ieCOverable, the cost is induded and identtfied separately within the contract or funLonal area to vthich it relates and vthere approwiate VAT on Fixed Assets is capitalised. (o) Ponsion costs The Charity has a money purchase scheme for qualifying employees. Pension costs charged to the statement of Financial Activities rekYe5ent the contributions payable by the Charity the period (see Note 9). Company status Centre for Cities is a company limit8d by guarantee and has no share capital. Every member of the chartty undertakes to corrtribute such amount as may be required (not exceeding £10) to the Charity's assets rf f( should be wound up vthile he or she is a member or within one year after he or she ceases to be a member, for payment of the Charills debts and liabilrties contracted before he or she aSeS to be a member, and of the costs. charges and expenses of wnding up, and for the adjustment of the rights of the contributories among themselves. Its registered office is 9 HolyrocJ Street. 2nd Flwr, London SE12EL.
CENTRE FOR CMES NOTES TO THE AccouKrs FOR THE YEAR ENDED 31 DECEMBER 2023 Donatlons and Grants 2023 2022 Coro Grant 1,100,000 1.1.0[rf) In 2023. Centr8 for Cities received a donation of £1,100,ocKI. Th8 donation was an annual oJr8 grant from Gatsby Foundation. Lord SainsburVs flty chafttabl8 trusL Investment Income Centre for Citi8s' investrngnt income d £28.787 (2022: £2,366) arises from money held in deposit accounts. Income - Other Activities Income received from consultancy.
CENTRE FOR CtnES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 Analysls of expenditure on charitable activllies 2023 Roseareh- Polky External 11 Works Affalrs Centre Total Stsff Costs Projects Dlrect Costs Premises Depreciation IT & Communication Printing & Stationèry MIslIaneouS Office Costs Legal. ProfessKJnal and In$ur8nce Subtotal 410.227 36.868 70.878 3.737 8,153 1.040 37293 3,338 347,691 116,545 49.450 2,607 5,688 726 25.372 2.329 398.533 5,354 44.505 2,346 5.119 653 19.892 2.096 1,156.451 158.767 164.833 8.690 18.960 2.419 82.557 7,763 571.$34 550.408 478.498 1.600.440 Support Costs Inote 7) Govemance Costs (note 7) Subtotal 57.458 13,449 38,339 17.837 7.167 2.867 102.964 34.153 56.176 10.034 137.117 Totsl 642,441 606.584 488.532 1.737.557 Analysls of expenditure On charllable actiTthles 2022 External What Works Aftalrs Centre Totsl Pollcy Staff Costs Projects Dlrect Costs Premises Depreciation IT & Communication Printing & Stationery Mlscellaneous Office Costs Legal, Ptof8ssi)nal and Insuran 478.527 78,575 78.663 5.981 7.819 1,714 48.893 2.897 .014 172.759 42,478 3.230 4.222 925 57.114 363.326 28,133 36.186 2.751 3.597 788 15.464 1,334 1,237.867 279.467 157,327 11,962 15.638 3,427 121,471 5,797 Stsbtotal 703.069 678.308 451,579 1.832.956 Support Costs (note 7) Govemance Costs (note 7) Sul)tot81 54.855 14.277 36,424 18.190 8.621 2.530 99.900 34,997 69.132 54,614 11.151 134.897 Total 772201 732.922 462.730 1.967 853 Expenditure on charitable adlvities vms £1.737,557 (2022: £1,967,853}. All expenditures were unrestricted. Most of the costs in thè above table (note 61 relate to staff, project direct costs and premises costs. Staff costs consist of gross pay, employer Nl and pension costs and are direcuy attributable to the Centre for Cities, activtlies. Other staff LX)sts are part of support costs. 24
CENTRE FOR CMES NOTES TO THE AccouKrs FOR THE YEAR ENDED 31 DECEMBER 2023 Projects, direct expenditures are made up of (£ists that relate to events and research. Events costs include venue and equipment hire. catering. travel and accLKnmodation costs. Costs related to research projects include data. polling and printing of rep)rts. Premises costs include rent and rates, service L*arge. office security and insurance. Analysls of support and governance costs Centre for Cities initially identtfies the costs of its support functions. It then identifies those costs. which relate to the govemance function. Having identified its govemance costs. the remaining support Costs together wtlh the govemance costs are apportioned between the three charitable actrvities (see rte 61 in the year. The table below shJws an analysis of supwrt and govemance costs and the basis of apportionment. 2023 Generdl Gorn3ce Support Functlon Total 8a$ls of Apportionmont Salaries 100,435 23.533 123.968 Time Irrfomialk)n TechnolryJy 2.529 2,529 Cost Audit Fees 9.5(K) Goveman Legal & Other PrOfonal Fees 1.120 1.120 Goveman Total 102J64 34153 137,117 2022 General Governan Support Function Total Basls of Salaries 97,594 23.997 121.591 Time Infomiation Technok)gy 2.3[ 2.306 Cost Audit Fees 11.000 11.000 Govemance Legal & Other Professional Fees Govemance Total 34.997 134.897 25
CENTRE FOR CITIES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 Net incomel(expenditure} forthe year This Is staled aft•r Charylng: 2023 2022 OPeratg leases - photocopier 1,028 Op8rating le8ses- property 104.792 104.792 Deprecrdlion 8.690 11.962 Auditorts remuneration.. Audit fees 9.500 11,000 Analysis of staff costs, trustse romunerallon and expenses and the cost of key management personnel 2023 2022 Wages 8fKI salaries Social security costs Perssion costs 1.069,748 106.656 104.016 1,134.248 120,207 105,003 1.280A19 1.359.458 2023 2022 Empbyees e8rning belween £60,001- £70.000 Employees eamirvJ between £TO.l- £80,000 Empk)yees aarning between £80.001- £.0[1 Empknyees earrting between £g3.001 - £1c.000 Employees earning between £1(KI,001- £120.000 The charity trustees were not paid and did nrrt receive frc¥n the charity any beneffts or reimbursem8nt of their travel expenses durin9 the year. Pension contribution5 in respect of hlgher-paid employees totalled £42.09812022: £57,087). The total employee benefits (gross salarie5, employer's Nl and employerfs pension contributions} received by the key management personnel listed pag6 9 were £437,2Crf) {2022: £387.623).
CENTrE FOR CMES NOTES TO THE Accoupirs FOR THE YEAR ENDED 310ECEMBER 2023 10 Slaff numbers The avetage monthly headcount W8s 21 staff (2022: 23 staffj and the average monlh number of the full-time equivalent employees during the year was as follows: 2023 2022 Research External Affairs wwc Governance 10.5 20.0 22.0 11 Tanglble fixed assets Leasew Fulurès ar Improvgments Fittings Comwtsr Equipmenl Total Cost or book value At 1 January 2023 Additions 111.704 37.617 3.897 73.026 630 222.347 4.527 Al 31 D8cwnbar 2023 111.704 41,514 73.656 226,874 Accumulat drOCIatIOn At 1 January 2023 Charge for year 111,704 36257 617 61.092 8.073 209,053 8,690 At 31 December 2023 111.704 3Q874 69.16S 217.743 Net book valuo At 31 D•e•mb•r 2023 9,131 At 31 DecemboT 2022 1.360 11.93S 1329S l of the tsngible fixed assets are used for charitable purFX)ses. 12 Debiors Totsl Total 2023 2022 Du8 within one year. Trade Oebtors Prepayments Other debtors 113.714 75.203 100,334 163,225 68.825 155.980 289.251 388.030 27
CENTRE FOR CITIES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 13 Credltors: amounts falling due withln one year Total 2023 Total 2022 Trade creditors Taxation and sc181 secunty Accruals Deferr income 6.284 67.180 89,631 20.CX)O 4.171 66,283 91.174 1.105.000 163,095 1.266.628 14 Operating lease commllmerbts On 31 December 2023, the chartty had the followng ¢werating lease commitments: 2023 2022 Nol later than one year Later than one year and not later thaft five years at five ypars 104.792 189.208 104.792 294.000 294.000 398.792 The above commtlments are for an operating lease on the 2nd flcK)r, 9 Holyrcxxl StreeL 15 Related party transaclions There were no related party transactions. 16 The funds of the charity The fund of £959,321 on 310ecemb8r 2023 vfas unrestri¢Xed. 17 Analysls of chanys in debt The tharrty haj no debt during the year. 18 Ta10n The Charity is Considwl to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definllion of a charitable company for UK Corporation Tax puq)oses. Alrding[Y, the Charity is potentialty exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 Corwration Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992. to the extent that suth income or gains are applied exdusivety to charitabFe pur[K. 28