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2021-03-31-accounts

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Charity Registration No.1122173

Company Registration No. 04138032 (England and Wales)

EAST LONDON BUSINESS ALLIANCE

(LIMITED BY GUARANTEE)

TRUSTEES' REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

www.elba-1.org.uk

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EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE INFORMATION

Trustees C I Watson (Chairman)
J Baskerville
M Gabriel
L Hollins
K Ikram (appointed 15/04/2020)
R Knight (appointed 23/09/2020)
H Morris
A Rakowski
T Waldron
Chief Executive I Parkes
Secretary M S Alom
Charity Number 1122173
Company Number 04138032
Principal address & Registered office 3rd Floor
City Reach
5 Greenwich View Place
London
E14 9NN
Auditors PKF Littlejohn LLP
Statutory Auditors
15 Westferry Circus
Canary Wharf
London
E14 4HD
Bankers HSBC Bank plc
59-61 The Mall
Stratford
London
E15 1XL

www.elba-1.org.uk

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EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) CONTENTS

Page
Chairman's report 1
Trustees' report 2 - 7
Statement of Trustees' responsibilities 8
Independent auditor's report 9 - 11
Consolidated Statement of financial activities 12
Charity Statement of financial activities 13
Consolidated Balance sheet 14
Charity Balance sheet 15
Consolidated Statement of Cash Flows 16
Charity Statement of Cash Flows 17
Accounting Policies 18
Notes to the accounts 19 - 27

www.elba-1.org.uk

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EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) CHAIRMAN’S REPORT FOR THE YEAR ENDED 31 MARCH 2021

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This year has been a year like no other. ELBA has operated through the entirety of 2020/21 under the varying levels of COVID-19 restrictions. Our focus throughout has been on relieving the impacts of the pandemic on the communities we serve. Despite all that, the financial position is stable and has strengthened during the year. We have had no recourse to the Government’s COVID-19 assistance schemes. We have returned a small operating surplus across our charitable and trading activities, and are able to meet our objective to add modestly to our unrestricted reserves.

Support from our business supporters and contributors has been strong as they responded to the needs of the COVID-19 crisis.

While we had to undergo a complete transformation of service delivery from March 2020 onwards – moving everything we do online - we have been able to maintain the quality of the services and activities. Volumes of activity were constrained by COVID-19 as large team based events could not take place. However, 5,600 business people were engaged during the year.

As we look forward, we will maintain our focus focusing on the needs of the community as it starts to recover from the COVID-19 crisis, including responding to sustained higher levels of unemployment, pressures on community wellbeing, helping young people get back to learning, and addressing inequalities highlighted by the lockdown such as digital exclusion.

ELBA will also be keeping up the momentum on tackling longstanding inequality experienced by our Black, Asian and minority ethnic communities. While the initial conflagration of protest sparked by the murder of George Floyd has dissipated, the need to make greater and faster change remains and we will continue to look internally and externally at how we can improve ourselves and help others to make progress.

We also have taken a medium term view of the probable ESG priorities of our corporate supporters and recognise that increasingly they will want to tie their community engagement work to their sustainability, carbon reduction and climate response goals. This coincides with many of our local stakeholders adopting demanding targets for carbon-net zero and biodiversity gain. ELBA exists to make the links between business and local communities, and we will be developing a range of practical programmes which will contribute to the achievement of the targets and goals of both groups.

The COVID-19 period has been a great strain on the staff team, and I pay tribute to their resilience, inventiveness and good cheer during this testing time. I would also like to thank all our business supporters for the amazing way they have stepped up to respond to the pandemic.

Our trading company, London Works, has successfully continued on its new business model specialising in working with employers to improve their diversity and inclusion policies and outcomes.

We have had a very stable Board during the past year and we recently welcomed Rob Knight to the Board. I thank all members of the Board for their support and engagement.

C I Watson Chairman and Trustee 22 September 2021

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EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021

_______________

The Trustees present their report and audited consolidated financial statements for the year ended 31 March 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity’s Memorandum and Articles of Association, applicable law and the requirements of the Statement of Recommended Practice, “Accounting and Reporting by Charities” (“FRS102 SORP”), issued by The Charity Commission, effective from January 2019.

Reference and Administrative Details of the Charity

Full legal and administrative details can be found on the page preceding the contents page, including the list of Trustees (who are also directors for the purposes of UK company law) who served during the year.

There continues to be stability and continuity in the governance of the Charity in the period, with no departures. Two new trustees, Rob Knight from Barings Investment, and K Ikram from Accenture, joined the Board during the year.

Governance

The ELBA Charity is a UK company limited by guarantee with no share capital. None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute such total amount as may be required (not exceeding £100) to the company’s assets in the event of a winding up. ELBA’s business is conducted under the framework of its governing Memorandum and Articles of Association, prepared under UK company law.

Trustees are usually selected from our corporate partners and other organisations and businesses in East London and beyond. Generally senior leaders with wide experience and knowledge of Corporate Social Responsibility (CSR), Trustees will usually have had several years’ experience of the issues in the community which it is ELBA’s mission to address.

Trustees receive further induction and training through providing them with copies of the Memorandum and Articles of Association, the last available annual report and accounts, current management accounts, budgets as well as a copy of the Charity Commission’s Charitable Purposes and Public Benefits documents together with the guide to the role and responsibilities of Charity trustees. The Chief Executive provides introductions to other Trustees, ELBA and London Works staff, policies and procedures as required.

Organisational Structure

Setting the overall strategy and monitoring of the Charity’s overall performance is the responsibility of the Board of Trustees, which is led by Chris Watson, a partner at CMS, London.

FINCO, which is a committee of the main Board meeting quarterly, is charged with monitoring and reviewing the Charity’s financial performance and that of its trading subsidiaries, in particular its financial outcomes. Arthur Rakowski chairs FINCO. Membership of FINCO is set at a minimum of five people currently comprising Arthur Rakowski (Chair), two further Board members or co-opted members with a financial background, the company’s internal auditor, the Chief Executive and the Group Finance Director. Bill Carr, the independent London Works Director also attends FINCO meetings. FINCO meets to review operating and management accounts, annual audited financial statements and policies related to financial management, including risk.

The Board delegates day-to-day running of the organisation and the achievement of its strategic interventions to the Chief Executive, the senior management team and the experienced team of programme managers and project managers. The senior management team comprises the Chief Executive, Group Finance Director, Deputy Chief Executive, the Director of Account Management & Communications (pt), and the Director of Partnership and Practice (pt). Pay and remuneration for the Chief Executive is set by the Board. Pay and remuneration for the other members of the team is set by the Chief Executive who directly line manages them.

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EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021

_______________

Trading subsidiaries

In 2014 the Board authorised the setting up of a new trading subsidiary, London Works (LW). LW has operated as a key part of ELBA’s employment and employability effort providing temporary and permanent recruits for City and Canary Wharf firms drawn mainly from the academic output of east London’s universities. Since October 2018, the business of London Works has been refocussed on higher value, higher margin specialist services. This has proved successful and in 2020/21 London Works made a trading profit of £37.5k. £37k of this will be retained in the trading company to offset the remaining £37k of losses from previous years, and the balance of £731 will be gift aided up to ELBA.

Now that all previous losses have been covered, any future operating profits from London Works may be Gift Aided to ELBA to provide additional funding for any or all of ELBA’s community, education or employment projects. There was £731 of Gift Aid to ELBA in 2020/21 (£nil).

In 2015/16 the ELBA Board authorised the setting up of a further not-for-profit subsidiary trading company – ELBA Works. This is used to deliver contracts for service which are outside the core charitable purpose and are therefore subject to different VAT and corporate tax treatment. The profit from this trading company is passed as Gift Aid to ELBA to support charitable activities. In 2020/21 ELBA Works made a trading profit of £22k. There was £52k of Gift Aid to ELBA in 2020/21 (£nil),

Risk Management

ELBA’s risk management strategy comprises:

Particular attention has focused on non-financial risks arising from safeguarding of children and young people, and on governance and regulatory compliance.

The main risk to the Charity would be failure by business supporters and other business partners to make contributions; consequently, the annual cycle of business contributions are submitted for detailed review to all FINCO meetings.

In addition, the Group Finance Director pursues a rigorous automated monthly credit control procedure which has proven successful in minimising bad debt.

During this year the routine risk assessment was accompanied by a supplementary risk assessment in response to the COVID-19 crisis.

Objectives and Activities

East London Business Alliance is a registered charity and for more than 30 years we have been addressing social mobility, regeneration, poverty and inequality in east London and beyond.

East London Business Alliance builds the connection between businesses and local communities, bringing the time, skills and resources of the private sector, to help build the capacity of local organisations, support young people in education and place people into employment in London.

Our mission is to create practical programmes to bring about positive change in London by channelling the wide-reaching resources, people power and influence of the private sector to address key areas of need. ELBA makes community investment by businesses easier, more effective, and more rewarding.

At the heart of how we deliver our goals is the deployment at scale of employer supported volunteering, and business-driven recruitment and employment diversity.

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EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021

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Our long-term strategic goals are to:

During 2020/21 our focus has been on responding to the impact of the COVID-19 pandemic. Initially, we focused on urgent needs, including food supply, help for young people and families learning at home, and support for the elderly and isolated. As the year progressed, we shifted our focus to the recovery priorities of the community we serve.

ELBA was fully active throughout the COVID-19 period and throughout 2020/21 we continued to work at scale in east London and beyond to deliver our goals and objectives. While the volume of volunteers was down on a normal year, there was still an incredible response from business people wanting to help local communities.

Key highlights from the year:

Our work with our corporate partners is across three themes:

Community

We work across east London with local charities, social enterprises and not for profit organisations. Charities are under increasing pressure with the significant decrease in local authority funding and the drive towards service level agreements, contracts and tendering. We take a holistic approach and support organisations at leadership and governance level, with management and systems expertise and the beneficiaries of the organisation through our asset based approach to employer supported volunteering. The types of volunteering include BoardMatch, Leaders in Partnership, Business Skills volunteering, interactive volunteering and we also help develop places and spaces through team challenge volunteering.

We continued our Everyone’s Business programme to tackle knife crime and serious youth violence and were awarded a second year of funding from the Mayor’s Violence Reduction Unit. The Lottery funded Reducing Isolation programme was found to be very popular during periods of lockdown, and we successfully navigated ways to take activities to on-line and remote delivery.

During the year, the Hackney East programme completed its third and final year. It has been replaced by the Evolve programme, supported again by UBS, Linklaters and Société Générale, which will focus on building the capacity of community organisation in Hackney in the post COVID-19 period.

Education

ELBA partners with secondary schools and further and higher education institutions to deliver a range of activities and innovative responses that meet the needs of the education sector and ELBA’s key stakeholders, while delivering the young

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EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021

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people development objectives of our corporate partners. All support is delivered creatively through employee engagement. This includes working with:

All activity was taken on-line throughout 2020/21 and despite this we were able to maintain the level of input from business volunteers. As COVID-19 recedes, we will be seeking to help get learners back on track and to re-introduce face to face activity. In particular, the impact of business mentoring is greatest when students can meet their mentors in person, in the workplace of the mentor.

Employment

Employability skills

ELBA engages young jobseekers to raise their aspirations and promote career paths. Activities with corporate volunteers include CV and interview skills workshops which focus on the soft skills that local jobseekers need to perform well.

ELBA influences social mobility through both temporary and permanent employment and through development of employability skills. During this last year we became a Trailblazer organisation and national partner for the SkillsBuilder framework, which is increasingly seen as the national framework for essential skills.

During the year we continued delivery of our award-winning Parity programme which supports the employment aspirations of young black men. We also delivered an engagement programme for the same group – Move on Up, and two further engagement programmes in Waltham Forest aimed at older black men and young black women.

We also became a Kickstart Gateway Plus employer under the Government’s national programme and we will be recruiting, training and supporting 35 young unemployed people. Through generous COVID-19 recovery funding from ING, we will be able to give these young people in-depth digital skills training and also to provide work placements for young people who do not qualify for the Government’s scheme.

Equate and Balance are our 2 new London Borough of Waltham Forest initiatives which exclusively support Black Communities in the borough. They are designed to support underemployed and COVID-19 displaced residents with access to opportunities and career-boosting activities, both are in the pilot stage, and we are developing a long term strategy to extend and expand our provision in the area. Feedback from the funder is so far incredibly positive.

Graduate employment

London Works, ELBA’s specialist recruitment agency provides specialist recruitment services to help employers improve the diversity of their workforces, and to find good careers for the young people of east London. London Works operates ELBA’s Eagles and Student Associate programmes, which were reduced due to the COVID-19 crisis but still continued to operate throughout the year.

COVID-19 Crisis

The COVID-19 crisis has overshadowed the whole of this reporting period. In the space of 10 days, all ELBA’s face to face activities came to a halt. We very quickly re-created online and remote activities so that our business partners could continue to respond to the immediate needs from the community arising from the COVID-19 crisis. These included:

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EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021

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As the year progressed, we shifted ELBA’s priorities to focus on the needs of the community in the post COVID-19 recovery period. This included:

Financial review

Total main Charity income before adding ELBA Works and London Works income was £3.0m (2019/20 £2.3m).

As a general rule, around half of the ELBA core operating costs are covered and provided by the annual charitable contributions made by its business supporters. During 2020/21 we saw a net reduction of Core business supporters of 1, with six leaving, and five joining. Income from business now also comes via one-off sales and contributions, as well as project funding, and we have adapted our approach to reflect the many ways in which businesses wish to engage in the community.

Income from annual charitable donations from businesses was £688k, marginally down on the previous year (£711k). Overall income from business, including sales via ELBA Works and projects was £3m, compared to £2.3m in 2019/20.

The power and flexibility of the ELBA business model was demonstrated very clearly by the response to the COVID-19 crisis, in which ELBA was able, with the steady support of our business supporters, to recreate our activities so that together we were able to continue to support the community in a time of pressing need.

The other half of our income has derived mainly from charitable corporate grants and donations as well as various third-party charitable trusts such as Islington Giving and the Portal Trust.

Our business supporters also sustain the many projects implemented by ELBA, mainly through the provision of volunteers although some, including Accenture, HSBC, British Land/Broadgate Estates, Linklaters, Macquarie, Nomura, Société Générale, State Street Bank, ING, BUPA, Lloyd’s and UBS have all made additional contributions to specific projects in the year under review.

At an operating level, the main ELBA charity made a surplus of £47k, compared to a break even position last year. The £30k profit under ELBA Works achieved in 2019/20 is part of the Gift Aid this financial year.

Costs continued to be strictly controlled. During the year we renewed the lease on our main offices, taking a smaller footprint.

The expenditure on restricted fund projects totalled £1.8m and this was fully funded from the £523k of restricted funds brought forward from last year plus newly incoming restricted funds of £2.2m. Accounting for restricted projects is undertaken mainly on a cash flow basis, unlike unrestricted or core funding, which is accounted for on a full prepaid and accruals basis.

Public Benefit

The Trustees have referred to the guidance contained in the Charity Commission’s General Guidance on Public Benefit when reviewing the Charity’s aims and objectives and in planning our future activities.

Reserves Policy

The Trustees’ goal is for ELBA to hold unrestricted reserves to cover between 3 and 6 months’ of core operating costs – preferably at the higher end of the scale. ELBA maintains a designated Dilapidations Reserve, currently £30,000 and a reorganisation reserve, currently £11,000. A spend of £9k went through the reorganisation reserve which related to a VAT compliance review.

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EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021

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The Charity’s unrestricted reserves at year end amounted to £423k (2019/20 £376k), together with designated reserves for reorganisation and dilapidations amounting to £41k (2019/20 £50k) making a total of £464k (2019/20 £426k). This equates to 4.1 months of running costs.

The Group unrestricted reserves at year end now matches that for the charity only - £423k (2019/20 £370k) - and the previous years’ accumulated losses from London Works are now cleared.

Plans for the future period

Our plans for the future period will be dominated by the need to respond to the COVID-19 crisis, as set out above. In addition, we will continue to respond strongly to the need to address inequality and injustice suffered by the Black and Asian and minority ethnic communities of east London and beyond, as highlighted by the protests arising from the murder of George Floyd.

We will also be responding to the increasing attention given by our business supporters to carbon reduction and environmental impact. Likewise, local stakeholders are adopting demanding targets for carbon net zero and biodiversity gain. We will be developing a range of practical programmes to engage our business partners in hyper-local activity in the community.

Fundraising Regulator statement

ELBA is not required to register with the Fundraising Regulator as we do not meet the required thresholds. However, we have chosen to make a voluntary registration.

Auditors

The auditor, PKF Littlejohn LLP, will be proposed for re-appointment at the Annual General Meeting in accordance with Section 485 of the Companies Act 2006.

Approved by the Trustees on 22 September 2021 and signed on its behalf by

C I Watson Chairman and Trustee

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EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) STATEMENT OF TRUSTEES’ RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2021

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The Trustees (who are directors for the purpose of company law) are responsible for preparing the Report of the Trustees and the Financial Statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the Financial Statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the Financial Statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the surplus or deficit of the charitable Company for that period. In preparing these Financial Statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable Company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable Company and enable them to ensure that the Financial Statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable Company’s website. Legislation in the United Kingdom governing preparation and dissemination of Financial Statements may differ from legislation in other jurisdictions.

Disclosure of Information to Auditors

The Trustees who held office at the date of approval of this Trustees' Report confirm that, so far as they are individually aware, there is no relevant audit information of which the Charity's auditors are unaware; and each Trustee has taken all steps that they ought to have taken as a Trustee to make themselves aware of any relevant audit information and to establish that the Charity's auditors are aware of that information.

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EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF EAST LONDON BUSINESS ALLIANCE

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF EAST LONDON BUSINESS ALLIANCE

Opinion

We have audited the financial statements of East London Business Alliance (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2021 which comprise the Consolidated Statement of Financial Activities, the Charity Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet, the Consolidated Statement of Cashflows, the Charity Statement of Cashflows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

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 financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s or parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the trustees’ report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the trustees’ report. Our opinion on the financial statements does not cover the other information and 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 financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF EAST LONDON BUSINESS ALLIANCE

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Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent charitable company and their 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 and the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the group and parent charitable company financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the group and parent charitable company financial statements, the trustees are responsible for assessing the group and parent charitable company’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 group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements 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 financial statements.

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:

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EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF EAST LONDON BUSINESS ALLIANCE

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statements. We obtained our understanding in this regard through discussions with management, industry research, application of cumulative audit knowledge and experience of the sector.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.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 and to the charitable company’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees 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 as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Alastair Duke (Senior Statutory Auditor) For and on behalf of PKF Littlejohn LLP Statutory Auditor

15 Westferry Circus Canary Wharf London E14 4HD

5 November

2021

DocuSign Envelope ID: 30F8A9D1-F78B-49AE-B84F-3D5A5996B0C9

EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021 Company Number 04138032

Notes
Income from:
Donations
2
Charitable activities
3
Other trading activities
4
Investments
5
Other income
6
Total income
Expenditure on:
Raising funds
Raising funds - trading activities
Charitable activities
7
Total expenditure
Net income
Transfers between funds
16c
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 General
Designated
funds
funds
£
£
745,695
-
-
-
690,968
-
439
-
6,284
-
1,443,386
-
20,561
-
601,049
-
758,986
9,000
1,380,596
9,000
62,790
(9,000)
(9,173)
-
53,617
(9,000)
369,540
50,000
423,157
41,000
Unrestricted Funds		 Restricted
funds
£
-
2,177,946
-
-
-
2,177,946
-
-
1,831,051
1,831,051
346,895
9,173
356,068
523,431
879,499		 Total
Total
2021
2020
£
£
745,695
738,142
2,177,946
1,508,846
690,968
1,031,436
439
1,854
6,284
10,957
3,621,332
3,291,235
20,561
20,415
601,049
894,987
2,599,037
2,268,362
3,220,647
3,183,764
400,685
107,471
-
-
400,685
107,471
942,971
835,500
1,343,656
942,971

The statement of financial activities also complies with the requirement for an income and expenditure account under the Companies Act 2006 and has been prepared on the basis that all operations are continuing. The company has no gain or losses other than those shown above.

The accounting policies and notes on pages 18 to 27 form part of these financial statements.

DocuSign Envelope ID: 30F8A9D1-F78B-49AE-B84F-3D5A5996B0C9

EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) CHARITY STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021 Company Number 04138032

Notes
Income from:
Donations
2
Charitable activities
3
Investments
5
Other income
6
Total income
Expenditure on:
Raising funds
Charitable activities
7
Total expenditure
Net income
Transfers between funds
16c
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 General
Designated
funds
funds
£
£
798,699
-
-
-
439
-
36,284
-
835,422
-
20,561
-
758,986
9,000
779,547
9,000
55,875
(9,000)
(9,173)
-
46,702
(9,000)
376,455
50,000
423,157
41,000
Unrestricted Funds		 Restricted
funds
£
-
2,177,946
-
-
2,177,946
-
1,831,051
1,831,051
346,895
9,173
356,068
523,431
879,499		 Total
Total
2021
2020
£
£
798,699
738,142
2,177,946
1,508,846
439
1,848
36,284
51,557
3,013,368
2,300,393
20,561
20,415
2,599,037
2,268,362
2,619,598
2,288,777
393,770
11,616
-
-
393,770
11,616
949,886
938,270
1,343,656
949,886

The statement of financial activities also complies with the requirement for an income and expenditure account under the Companies Act 2006 and has been prepared on the basis that all operations are continuing. The company has no gain or losses other than those shown above.

The accounting policies and notes on pages 18 to 27 form part of these financial statements.

DocuSign Envelope ID: 30F8A9D1-F78B-49AE-B84F-3D5A5996B0C9

Company Number 04138032

EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2021

Notes
Fixed Assets
Tangible assets
12
Current assets
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within
one year
14a
Net current assets
Creditors: amounts falling due after more
than one year
14b
Net assets
Charity Funds
Restricted funds
16a
Unrestricted funds
17
Designated Funds
16b
Total charity funds		 £
£
41,099
616,130
1,458,050
2,074,180
(751,623)
1,322,557
(20,000)
1,343,656
879,499
423,157
41,000
1,343,656
2021		 £
£
52,516
749,534
779,118
1,528,652
(598,197)
930,455
(40,000)
942,971
523,431
369,540
50,000
942,971
2020		 £
£
52,516
749,534
779,118
1,528,652
(598,197)
930,455
(40,000)
942,971
523,431
369,540
50,000
942,971
2020
942,971
523,431
369,540
50,000
942,971

The financial statements were approved by the Board and authorised for issue on 22 September 2021 and signed on its behalf

C I Watson A Rakowski Chairman & Trustee Trustee

The accounting policies and notes on pages 18 to 27 form part of these financial statements.

DocuSign Envelope ID: 30F8A9D1-F78B-49AE-B84F-3D5A5996B0C9

EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) CHARITY BALANCE SHEET AS AT 31 MARCH 2021

EAST LONDON BUSINESS ALLIANCE
(LIMITED BY GUARANTEE)
CHARITY BALANCE SHEET
AS AT 31 MARCH 2021 Company Number 04138032
Notes
Fixed Assets
Tangible assets
12
Current assets
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within
one year
14a
Net current assets
Net assets
Charity Funds
Restricted funds
16a
Unrestricted funds
17
Designated Funds
16b
Total charity funds		 £
£
41,099
450,937
1,082,469
1,533,406
(230,849)
1,302,557
1,343,656
879,499
423,157
41,000
1,343,656
2021		 £
£
52,516
552,117
491,078
1,043,195
(145,825)
897,370
949,886
523,431
376,455
50,000
949,886
2020
949,886
523,431
376,455
50,000
949,886

The financial statements were approved by the Board and authorised for issue on 22 September 2021 and signed on its behalf

C I Watson A Rakowski Chairman & Trustee Trustee

The accounting policies and notes on pages 18 to 27 form part of these financial statements.

DocuSign Envelope ID: 30F8A9D1-F78B-49AE-B84F-3D5A5996B0C9

EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) CONSOLIDATED STATEMENT OF CASH FLOWS

EAST LONDON BUSINESS ALLIANCE
(LIMITED BY GUARANTEE)
CONSOLIDATED STATEMENT OF CASH FLOWS
AS AT 31 MARCH 2021 Company Number 04138032
Notes
Cash flow from operating activities
18
Net cash flow (used in) / provided by operating activities
Cash flow from investing activities
Payments to acquire tangible fixed assets
12
Interest received from investment
Net cash flow provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 April
Cash and cash equivalents at 31 March		 2021
£
692,914
692,914
(14,421)
439
(13,982)
678,932
779,118
1,458,050		 2020
£
60,799
60,799
(60,757)
1,854
(58,903)
1,896
777,222
779,118

The accounting policies and notes on pages 18 to 27 form part of these financial statements.

DocuSign Envelope ID: 30F8A9D1-F78B-49AE-B84F-3D5A5996B0C9

EAST LONDON BUSINESS ALLIANCE
(LIMITED BY GUARANTEE)
CHARITY STATEMENT OF CASH FLOWS
AS AT 31 MARCH 2021		 Company Number 04138032 Company Number 04138032
Notes
Cash flow from operating activities
18
Net cash flow used in operating activities
Cash flow from investing activities
Payments to acquire tangible fixed assets
12
Interest received from investment
Net cash flow provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 April
Cash and cash equivalents at 31 March		 2021
£
605,373
605,373
(14,421)
439
(13,982)
591,391
491,078
1,082,469		 2020
£
57,700
57,700
(60,757)
1,848
(58,909)
(1,209)
492,287
491,078

The accounting policies and notes on pages 18 to 27 form part of these financial statements.

DocuSign Envelope ID: 30F8A9D1-F78B-49AE-B84F-3D5A5996B0C9

EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

1.1 General information and basis of preparation

East London Business Alliance is a Charity and a company limited by guarantee with no share capital in the United Kingdom. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £100 per member of the charity. The address of the registered office is given in the legal and administrative information page of these financial statements. The nature of the charity’s operations and principal activities are detailed under objectives and activities on pages 3 and 4 of the Trustees’ report.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with 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), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2019.

The financial statements are prepared on a going concern basis under the historical cost convention. The financial statements are prepared in sterling which is the functional currency of the charity.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

The consolidated financial statements consolidate the financials statements of East London Business Alliance and its subsidary undertakings, London Works Agency Limited and East London Business Alliance Works Limited for the period ending 31 March 2021.

Trading income is invoiced on an accruals basis.

1.3 Expenditure recognition Expenditure has been included in the Financial Statements on the accruals basis and is stated inclusive of VAT for ELBA. LW and ELBA Works are VAT registered and the expenditure is therefore included net of VAT.

Support costs represent staff and office costs and are apportioned to charitable activities and fundraising activites on the basis of estimated time spent on those activities.

The company benefits from contributed resources including premises and staff time. This is often very difficult to quantify in financial terms and where it is not considered to be material is not reported upon.

1.4 Tangible fixed assets and depreciation Tangible fixed assets over £1,000 are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:Computer equipment 33% Straight line Motor vehicle 33% Straight line

1.5 Leasing and hire purchase commitments Rentals payable under operating leases, where substantially all of the benefits and risks of ownership remain with the lessor, are charged to the SOFA on a straight line basis over the lease term.

1.6 Pensions

The charity operates a defined contributions pension scheme which is open to all members of staff and the pension charge represents the amount payable by the charitable company to the fund in respect of the year.

1.7 Funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

1.8 Going Concern

The Board have reviewed the budgets and cashflow forecasts for the years ended 31 March 2022 and 2023. Taking into account the financial position at 22 September 2021 and the healthy cash balances at that date they are of the opinion that the company can be considered as a going concern for a period of at least 12 months from the date of signing of these accounts. When coming to this opinion they have taken careful thought of the circumstances of the COVID-19 pandemic and its effects on the company and its partners.

DocuSign Envelope ID: 30F8A9D1-F78B-49AE-B84F-3D5A5996B0C9

EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1.8 Taxation

The company is registered as a charity under the Charities Act 2011 and it is not liable to UK tax on its income and chargeable gains, as they fall within the various exemptions available to registered charities.

The company is not registered for VAT and items in the Financial Statements are stated inclusive of VAT, where applicable.

2 Income from donations

Group
Recurring Contributions from Business Supporters
Ad Hoc Donations		 2021
£
687,712
57,983
745,695		 2020
£
710,914
27,228
738,142

Income from donations was £745,695 (2020 - £738,142) all of which was attributable to unrestricted funds for both years.

Charity
Recurring Contributions from Business Supporters
Donations
Gift Aid receivable		 2021
£
687,712
57,983
53,004
798,699		 2020
£
710,914
27,228
-
738,142

Income from donations was £798,699 (2020 - £738,142) all of which was attributable to unrestricted funds for both years.

3

Income from charitable activities (Group and Charity)
Community Works
Education Works
Employment Works
Other		 2021
£
259,849
310,284
668,101
939,712
2,177,946		 2020
£
333,098
238,720
394,909
542,119
1,508,846

Income from charitable activities was £2,177,946 (2020 - £1,508,846) all of which was attributable to restricted funds for both years.

4

Income from other trading activities
Bureau agency fees receivable - London Works
Consultancy fees - ELBA Works		 2021
£
655,188
35,780
690,968		 2020
£
969,976
61,460
1,031,436

Income from other trading activities was £690,968 (2020 - £1,031,436) all of which was attributable to unrestricted funds for both years.

DocuSign Envelope ID: 30F8A9D1-F78B-49AE-B84F-3D5A5996B0C9

EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

5 Income from investments

Group 2021 2020
£ £
Interest receivable 439 1,854

Income from other investments was £439 (2020 - £1,854) all of which was attributable to unrestricted funds for both years.

Charity 2021 2020
£ £
Interest receivable 439 1,848

Income from other investments was £439 (2020 - £1,848) all of which was attributable to unrestricted funds for both years.

6 Other income

Group 2021 2020
£ £
Services provided and other income 6,284 10,957

Other income was £6,284 (2020 - £10,957) all of which was attributable to unrestricted funds for both years.

Charity 2021 2020
£ £
Services provided and other 36,284 51,557

Other income was £36,284 (2020 - £51,557) all of which was attributable to unrestricted funds for both years.

7 Analysis of expenditure on charitable activities (Group and Charity)

Community Works Projects
Education Works Projects
Employment Works Projects
Other Projects
CORE		 Direct
Support
2021
Costs
Costs
£
167,468
86,544
254,012
289,553
99,740
389,293
221,611
184,782
406,393
723,474
57,879
781,353
767,986
-
767,986
2,170,092
428,945
2,599,037		 2020
£
326,444
277,956
435,165
471,733
757,064
2,268,362

Expenditure on charitable activities was £2,599,037 (2020 - £2,268,362) of which £758,986 was attributable to unrestricted funds (2020 - £757,064), £9,000 was attributable to designated funds (2020 - £nil) and £1,831,051 was attributable to restricted funds (2020 - £1,511,298).

DocuSign Envelope ID: 30F8A9D1-F78B-49AE-B84F-3D5A5996B0C9

EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

8 Allocation of support costs

8
Allocation of support costs
Governance (see note 9)
HR & Admin
Finance & Management
Other Staffing
Office and Other Costs
Total
9
Governance costs
Accountancy
Audit		 Community
Education Employment
2021
Works
Works
Works
Other
Total
Projects
Projects
Projects
Projects
£
£
£
£
£
1,361
1,013
2,191
660
5,225
12,811
12,586
20,266
5,913
51,576
29,795
29,207
47,286
13,978
120,266
19,419
40,161
57,689
21,229
138,498
23,158
16,773
57,350
16,099
113,380
86,544
99,740
184,782
57,879
428,945
Core
Projects
2021
£
1,253
1,004
2,257
4,071
4,221
8,292
5,324
5,225
10,549		 2020
£
6,293
61,847
90,509
146,057
129,071
433,777
2020
£
5,486
8,100
13,586

10 Trustees

None of the Trustees (or any person connected with them) received any remuneration or benefits from the charity during the year (2020 - £Nil).

11 Employees

Number of employees

The average number of employees during the year was:

Group
Chief Executive
Administration
Project delivery
Interns
East London Business Place
Eagles
London Works (Temporary Staff)
London Works (Establishment Staff)
Charity
Chief Executive
Administration
Project delivery
Interns
East London Business Place		 2021
Number
1
4
33
-
6
16
-
-
60
2021
Number
1
4
33
-
6
44		 2020
Number
1
4
34
3
5
17
8
-
72
2020
Number
1
4
34
3
5
47

DocuSign Envelope ID: 30F8A9D1-F78B-49AE-B84F-3D5A5996B0C9

EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Group
Wages and salaries
Social security costs
Other pension costs		 2021
£
1,958,609
189,685
70,682
2,218,976		 2020
£
2,117,757
203,680
67,845
2,389,282

The total amount of employee benefits received by key management personnel during the year was £270,576 (2020 - £274,865). The contribution payable by the company for these employees for the year was £8,491. The Charity considers its key management personnel to comprise the Chief Executive, Managing Director and Group Finance Director.

Charity
Wages and salaries
Social security costs
Other pension costs		 2021
£
1,628,288
166,210
63,512
1,858,010		 2020
£
1,570,313
159,880
58,716
1,788,909

The total amount of employee benefits received by key management personnel during the year was £270,576 (2020 - £274,865). The contribution payable by the company for these employees for the year was £8,491. The Charity considers its key management personnel to comprise the Chief Executive, Managing Director and Group Finance Director.

The number of employees whose annual emoluments were £60,000 or more were (Group and Charity):

£60,000 to £69,999
£70,000 to £79,999
£80,000 to £89,999
£90,000 to £99,999		 2021
Number
1
2
1
-		 2020
Number
1
2
-
1

The employees whose emoluments, including annual bonus, exceeded £60,000, had retirement benefits accruing under a defined contribution pension scheme. The contribution payable by the company for these employees for the year was £11,558 (2020 - £11,706).

12 Tangible Fixed Assets (Group and Charity)

Cost
At 1 April 2020
Additions
Disposals
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
On disposals
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Computer
Equipment
£
72,496
14,421
-
86,917
19,980
25,838
45,818
41,099
52,516		 Total
£
72,496
14,421
-
86,917
19,980
25,838
-
45,818
41,099
52,516

DocuSign Envelope ID: 30F8A9D1-F78B-49AE-B84F-3D5A5996B0C9

EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

13 Debtors

Group
Grants and donations receivable
Other debtors
Prepayments and accrued income
Charity
Grants and donations receivable
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income		 2021
£
556,064
15,336
44,730
616,130
2021
£
371,879
23,155
15,336
40,567
450,937		 2020
£
678,862
15,776
54,896
749,534
2020
£
460,590
22,500
15,777
53,250
552,117

Included within Other debtors of both Group and Company is an amount of £15,000 which is receivable after more than one year (2020 - £15,000) being the office rent deposit. There were no staff loans receivable after more than one year (2020 - £NIL).

14a Creditors: amounts falling due within one year

Group
Purchase ledger balances
Other creditors
Accruals
VAT
Grants received in advance
Loan repayable to Greater London Authority
Charity
Purchase ledger balances
Amounts owed to group undertaking
Other creditors
Accruals
Grants received in advance
14b
Creditors: amounts falling due after more than one year
Group
Loan repayable to Greater London Authority		 2021
£
44,722
55,449
84,475
69,917
477,060
20,000
751,623
2021
£
42,033
4,800
54,347
68,669
61,000
230,849
2021
£
20,000
20,000		 2020
£
15,074
62,897
24,294
46,894
429,038
20,000
598,197
2020
£
11,926
-
60,705
15,194
58,000
145,825
2020
£
40,000
40,000

Charity

The Charity does not have any creditors: amounts falling due after more than one year.

DocuSign Envelope ID: 30F8A9D1-F78B-49AE-B84F-3D5A5996B0C9

EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

15 Liability of members

The company has no share capital, being limited by guarantee. Each member of the company undertakes to contribute such amount as may be required (not exceeding £100) to the company'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. In the event of the company being wound up or dissolved, any surplus property shall be given or transferred to some other charitable institution having similar charitable objects to the company. The property cannot be paid to or distributed among members of the company.

16a Restricted funds (Group and Charity)

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Community Works
Education Works
Employment Works
Other
Community Works
Education Works
Employment Works
Other		 Balance at
1 April 2020
£
83,367
201,576
97,334
141,154
523,431
Balance at
1 April 2019
£
72,861
215,812
122,754
100,306
511,733		 Incoming
Resources
£
259,849
310,284
668,101
939,712
2,177,946
Incoming
Resources
£
333,098
238,720
394,909
542,119
1,508,846		 Outgoing
Resources
£
254,012
389,293
406,393
781,353
1,831,051
Outgoing
Resources
£
326,444
277,956
435,165
471,733
1,511,298		 Transfers
£
4,994
29,101
13,000
(37,922)
9,173
Transfers
£
3,852
25,000
14,836
(29,538)
14,150		 Balance at
31 March 2021
£
94,198
151,668
372,042
261,591
879,499
Balance at
31 March 2020
£
83,367
201,576
97,334
141,154
523,431

16b Unrestricted designated funds (Group and Charity)

Reorganisation Reserve
Dilapidations reserve
Reorganisation Reserve
Dilapidations reserve		 Balance at
1 April 2020
£
20,000
30,000
50,000
Balance at
1 April 2019
£
20,000
30,000
50,000		 Incoming
Resources
£
-
-
-
Incoming
Resources
£
-
-
-		 Outgoing
Resources
£
9,000
-
9,000
Outgoing
Resources
£
-
-
-		 Transfers
£
-
-
-
Transfers
£
-
-
-		 Balance at
31 March 2021
£
11,000
30,000
41,000
Balance at
31 March 2020
£
20,000
30,000
50,000

DocuSign Envelope ID: 30F8A9D1-F78B-49AE-B84F-3D5A5996B0C9

EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

16c Transfers

Transfers between funds comprise transfers from unrestricted funds to the Reorganisation and Dilapidations Reserves, transfers to Restricted Funds to cover small shortfalls in certain Project funding and transfers to unrestricted funds (Core) where the charity is entitled to any surpluses arising on those funds as detailed above.

17 Analysis of net assets between funds

Group
Tangible fixed assets
Net Current assets
Creditors falling due after more than one year
Tangible fixed assets
Net Current assets
Creditors falling due after more than one year
Charity
Tangible fixed assets
Net Current assets
Tangible fixed assets
Net Current assets		 Unrestricted
funds
41,099
402,058
(20,000)
423,157
Unrestricted
funds
52,516
345,326
(40,000)
357,842
Unrestricted
funds
41,099
382,058
423,157
Unrestricted
funds
52,516
312,241
364,757		 Designated
funds
-
41,000
-
41,000
Designated
funds
-
50,000
-
50,000
Designated
funds
-
41,000
41,000
Designated
funds
-
50,000
50,000		 Restricted
funds
-
879,499
-
879,499
Restricted
funds
-
535,129
-
535,129
Restricted
funds
-
879,499
879,499
Restricted
funds
-
535,129
535,129		 Total
2021
41,099
1,322,557
(20,000)
1,343,656
Total
2020
52,516
930,455
(40,000)
942,971
Total
2021
41,099
1,302,557
1,343,656
Total
2020
52,516
897,370
949,886

18 Reconciliation of net income / (expenditure) to net cash flow from operating activities

Group

Group
Net income for year
Interest from investments
Depreciation of tangible fixed assets
Decrease in debtors
Increase / (decrease) in creditors
Net cash flow from operating activities		 2021
£
400,685
(439)
25,838
133,404
133,426
692,914		 2020
£
107,471
(1,854)
16,067
55,507
(116,392)
60,799

DocuSign Envelope ID: 30F8A9D1-F78B-49AE-B84F-3D5A5996B0C9

EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Charity
Net income for year
Interest from investments
Depreciation of tangible fixed assets
Decrease in debtors
Increase / (decrease) in creditors
Net cash flow from operating activities		 2021
£
393,770
(439)
25,838
101,180
85,024
605,373		 2020
£
11,616
(1,848)
16,067
101,759
(69,894)
57,700

19 Contingent liabilities

There were no contingent liabilities at 31 March 2021 (2020 - None).

20 Group commitments under operating leases

At 31 March 2021 the group had commitments under non-cancellable operating leases as follows:


Falling due (Expiry date):
Not later than one year
Later than one and not later than five years		 Land and buildings
2021
2020
£
£
60,694
86,008
182,081
247,763
242,774
333,771		 2021
2020
£
£
13,097
17,747
12,528
23,819
25,625
41,566
Other		 2021
2020
£
£
13,097
17,747
12,528
23,819
25,625
41,566
Other
41,566

21 Capital commitments

There were no capital commitments at 31 March 2021 (2020 - None).

22 Related parties

The following trustees of the company are directors or representatives of the companies as shown below that made contributions or donations to the group during the year:

donations to the group during the year:
2021 2020
£ £
C I Watson, Partner CMS Cameron McKenna Nabarro Olswang 37,000 18,000
A Rakowski, Representative of Macquarie 134,038 120,000
J Baskerville, Representative of KPMG 18,000 18,000
M Gabriel, Representative of East London Foundation Trust 9,950 9,950
K Ikram, Representative of Accenture (appointed 15 April 2020) 139,683 123,495
T Waldron, Representative of CH & Co - 10,000
R Knight, Representative of Barings (appointed 23 September 2020) 30,000 -
London Works Director:
W Carr, Partner CMS Cameron McKenna Nabarro Olswang 37,000

DocuSign Envelope ID: 30F8A9D1-F78B-49AE-B84F-3D5A5996B0C9

EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

23 Subsidary undertaking

These consolidated financial statements include the financial statements of the subsidary company London Works Agency Limited and ELBA Works Limited. London Works Agency Limited (Company No. 08525614) and ELBA Works Limited (Company No. 08559404) are private companies limited by guarantee and are both registered in England & Wales and wholly owned by ELBA Charity.

LW was set up as a staff recruitment agency to provide pathways to work in the City and Canary Wharf for local graduates and A Level school leavers.

ELBA Works Ltd was set up to deliver activities which fall outside the scope of Core charitable activity.

Its trading results, extracted from its audited financial statements, which are included in the unrestricted funds column in the SOFA, were:

Turnover
Administrative expenses
Profit on ordinary activites before taxation
Tax on profit on ordinary activities
Interest receivable
Profit for the financial year
Gift Aid donation to ELBA
Profit for the financial year after Gift Aid
Balance brought forward
Balance carried forward		 2021
2020
35,780
61,460
(13,356)
(31,617)
22,424
29,843
-
-
-
6
22,424
29,849
(52,273)
-
(29,849)
29,849
29,849
-
-
29,849
ELBA Works Limited		 2021
2020
655,188
969,976
(617,693)
(903,971)
37,495
66,005
-
-
-
-
37,495
66,005
(731)
-
36,764
66,005
(36,764)
(102,769)
-
(36,764)
London Works Agency Limited		 2021
2020
655,188
969,976
(617,693)
(903,971)
37,495
66,005
-
-
-
-
37,495
66,005
(731)
-
36,764
66,005
(36,764)
(102,769)
-
(36,764)
London Works Agency Limited
66,005
-
-
66,005
-
66,005
(102,769)
(36,764)

24 Post Balance Sheet Events

The Trustees discussion of the effects of COVID-19 on the charitable company have been discussed in the Trustees Annual report on page 5. There are no post year end events that effect the year ended 31 March 2021.