Docusign Envelope ID: 488DF887-F35D-4D99-AF46-C0ED6CDB51BE 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 2024** www.elba-1.org.uk Docusign Envelope ID: 488DF887-F35D-4D99-AF46-C0ED6CDB51BE ## **EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE INFORMATION** |Trustees|C Watson (Chairman)|| |---|---|---| ||J Baskerville|| ||M Gabriel|| ||L Hollins|| ||K Ikram|| ||R Knight|| ||H Morris|| ||A Rakowski|| ||T Waldron|| |Chief Executive|I Parkes|(Resigned 31 March 2024)| ||J Hutchinson|(Appointed 1 July 2024)| |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 Docusign Envelope ID: 488DF887-F35D-4D99-AF46-C0ED6CDB51BE ## **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 Docusign Envelope ID: 488DF887-F35D-4D99-AF46-C0ED6CDB51BE **EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) CHAIRMAN’S REPORT FOR THE YEAR ENDED 31 MARCH 2024** I am pleased to present the Chairman’s Report for the ELBA Charity for the year 2023/24. This year has been one of resilience, growth and impactful change, as we continue to navigate the complexities of the post-pandemic world and the broader economic challenges faced by the communities we serve. ELBA's financial position remains strong, demonstrating our strong governance and our prudent and focused financial management. Despite the economic uncertainties, we have successfully generated a modest surplus from our unrestricted funds, which has allowed us to strengthen our reserves in accordance with the Board's policy. Our cash flow has also remained healthy throughout the year, ensuring that we have the necessary resources to continue our vital work. The performance of our trading company, London Works, has been positive too. As a key contributor to our consolidated accounts, London Works has matured into a stable and profitable entity, specialising in driving forward diversity and inclusion within workforces. The success of our Eagles flagship graduate recruitment programme, which is now running four programmes a year, is a further testament to the effectiveness and relevance of our services. This year has seen growing resurgence in our activities, with ELBA exceeding pre-COVID levels of engagement right across our work. The demand for our services from business partners has been strong, reflecting their refreshed commitment to social responsibility and community engagement. From supporting environmental sustainability to empowering young people and promoting equality of opportunity, ELBA has continued to deliver powerful programmes that resonate with our partners and beneficiaries alike. One of the standout achievements this year has been the full recovery of our volunteering activities, whose we have seen over 16,000 business volunteers participating in community projects. This level of engagement highlights not only the generosity of our partners but also the trust they place in ELBA to help deliver meaningful contributions to society. We have also made significant strides in how we measure and report the impact of our work. We are committed to further developing our capabilities in this area, with the adoption of Thrive Social Value reporting tools, providing our partners with valuable insights to support their own reporting and decision-making processes. This year has also been marked by a significant leadership transition. After eight years of outstanding service, Ian Parkes has stepped down as CEO. Ian's strong leadership has been instrumental in shaping ELBA’s growth and impact, and we extend our heartfelt thanks for his dedication and achievements. We are delighted to welcome Julie Hutchinson as our new CEO. Julie brings a wealth of experience and commitment and a fresh perspective that will undoubtedly steer ELBA towards continued success and innovation. I am pleased to report that our Board remains stable, with no changes in its composition over the past year. The continuity during challenging times, and commitment of our Board members have been vital in maintaining our strategic focus and ensuring the long-term sustainability of the organisation. As we look forward with a refreshed strategy, we remain acutely aware of the ongoing challenges faced by the communities we serve. The cost of living crisis, in particular, continues to put pressure on many households. ELBA is committed to responding to these challenges with practical support and long-term solutions, including helping people access better-paid employment and providing essential resources to those in need. I want to express my deep gratitude to the entire ELBA team for their hard work, resilience, and unwavering commitment to our mission. Their efforts have been fundamental in navigating the last year and ensuring that ELBA continues to make a meaningful difference in the lives of those we serve. In conclusion, ELBA is well-positioned to continue its important work in the year ahead. With strong financial foundations, dedicated and engaged leadership, and a clear vision for the future, we are confident in our ability to meet the challenges ahead and to seize new opportunities for the creation of positive social impact. On0E784E0D2F614AF... **Chris Watson Chairman and Trustee September 2024** - 1 - Docusign Envelope ID: 488DF887-F35D-4D99-AF46-C0ED6CDB51BE **EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024** ## **___________________________________________________________________________** The Trustees present their report and audited consolidated financial statements for the year ended 31 March 2024. 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 have served during the year. Stability and continuity in the governance of the Charity have been maintained in the period, with no departures. ## **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 to the company’s assets such total amount as may be required (not exceeding £100) 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 English company law. Trustees are usually selected from among 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 receipted copies of the Memorandum and Articles of Association of ELBA and 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. Trustees are also trained in safeguarding young people and adults as applicable to ELBA’s operations. ## **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. The Finance Committee (“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 outsourced 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 aims to the Chief Executive, the senior management team and the team of Heads of Programmes and project managers. The senior management team comprises the Chief Executive, the Group Finance Director, the Deputy Chief Executive, the Director of Account Management & Communications (pt), the Director of Partnership and Practice (pt) and the Heads of Programmes for each operational area. Pay and remuneration for the Chief Executive are set by the Board. Pay and remuneration for the other members of the team are set by the Chief Executive who directly line-manages them. Cost of living increases and any other payments which apply to all staff are approved by both FINCO and the Board. - 2 - Docusign Envelope ID: 488DF887-F35D-4D99-AF46-C0ED6CDB51BE ## **EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024** ## **___________________________________________________________________________** ## **Trading subsidiaries** ELBA has two training subsidiaries. - London Works Agency Limited (LW) was established in 2013. 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. London Works is now a mature and well-established business, occupying an established market position. In 2023/24 London Works made a trading profit of £54k. - Any 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. £54k of Gift Aid was transferred in this way to ELBA (2022/23 - £90k). - ELBA Works Limited is a trading company (established in 2015/16) and 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 2023/24 ELBA Works made a trading profit of £64k. £64k of Gift Aid was transferred to ELBA in this way (2022/2023 - £62k). ## **Risk Management** ELBA’s risk management strategy comprises: - an annual review by the Trustees of the register of risks the Charity may face, based on the format recommended by the Charities Commission; - the establishment of systems and procedures to mitigate those risks identified in the plan; and - the implementation of procedures designed to minimise any potential impact on the Charity should those risks materialise. Particular attention has been focused on non-financial risks arising from the safeguarding of children and young people, and on the risks associated with a prolonged period of high inflation and higher interest rates. The main financial risks 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. FINCO and the Board regularly review the holding of ELBA’s reserves. There is a risk of loss if there were to be a failure of one of the financial institutions which hold surplus funds for ELBA. During the year we took action to mitigate this risk by an active diversification of accounts. ## **Objectives and Activities** East London Business Alliance is a registered charity and for more than 34 years we have been addressing social mobility, regeneration, poverty and inequality in east London and beyond. Our social goals remain as valid as ever. 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, help communities, 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. - 3 - Docusign Envelope ID: 488DF887-F35D-4D99-AF46-C0ED6CDB51BE **EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024** ## **___________________________________________________________________________** 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. Our long-term strategic goals are to: - Help to make east London a better place to live, with healthy, thriving and resilient communities. - Strengthen the community sector and support social enterprise. - Promote and deliver fair and equal access to work based on merit, not background, help employers change recruitment practices and help individual people secure good jobs. - Support progression in careers and increase earnings for those from disadvantaged backgrounds. - Support successful transition for every young person from education to work and/or enterprise. Key highlights from the year: - 13,146 volunteers – 16,019 including BIG Alliance - These were drawn from 80 supporter companies and other business partners - 70 companies supported our annual Toy Appeal, donating 18,607 toys, with a value of over £242k - Working with over 81 Community Partners - 161 people into work - 34 Eagles in our graduate placement programmes - Maintained our environment and climate response programmes - Continuing our work to address digital inequality - Ongoing action to tackle the disadvantages faced by people from ethnic minority communities. Our work with our corporate partners is delivered across three themes: ## **Community** Our progress in the last 12 months has proven that in a hybrid work environment, corporate volunteering has gained renewed significance as a powerful tool to deepen employee connections, strengthen company culture, and foster a sense of community. The return post-pandemic to face-to-face volunteering has been strong, and we have now exceeded pre-COVID levels. However, we've noticed a continuing shift in the nature of volunteering, notably a growing preference for team-based activities over individual efforts. Although in-person engagement is favoured, we have retained some of the online initiatives introduced during the lockdowns. Contrary to our initial concerns that the rise in remote work would reduce volunteering opportunities, this has actually become a way for people to stay connected with colleagues they see less frequently in the office. This has enabled us to maintain our full five-day volunteering programme across the week. Our work spans across east London, Islington and Southwark, partnering with local charities, social enterprises, and not-forprofit organisations. These bodies face increasing pressure from high inflation and continuing reductions in local authority funding. We continued to adopt a holistic approach, supporting these organisations at the leadership and governance levels, providing management and systems expertise, and improving their environments and assets through group volunteering. ## **Education** Attainment levels at ages 16 and 18 in east London surpass both London and national averages, and there is strong participation in higher education. However, this academic success has not translated into greater social mobility—the connection between educational achievement and generational progress remains incomplete: there is work to do. - 4 - Docusign Envelope ID: 488DF887-F35D-4D99-AF46-C0ED6CDB51BE **EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024** ## **___________________________________________________________________________** Specifically, ELBA's education programme is designed to bridge the gap between education and employment by empowering students from underrepresented and disadvantaged backgrounds with the skills, knowledge, and networks needed to succeed in the workforce. The programme focuses on developing employability through various initiatives, such as mentoring, career workshops, and work experience opportunities, often facilitated by our corporate partners. By connecting students with professionals and providing real-world insights into different industries, ELBA's education programme seeks to inspire ambition, improve educational outcomes, and create pathways to meaningful and sustainable careers. One of our key initiatives, the Mentoring Works programme, is designed to enhance students' exposure to businesses and employers. This dynamic programme is delivered across secondary schools, further education colleges, and universities, focusing on Year 10 and Year 12 students. Through Mentoring Works, we aim to create meaningful connections that inspire and equip students to pursue careers that lead to higher earnings, greater opportunities and long-term success. ## **Employment** ELBA engages jobseekers through a range of projects and connects them with corporate volunteers, providing vital support and guidance. Our workshops, focused on CV writing, interview skills, and other soft skills, help local jobseekers develop the confidence and capabilities they need to thrive in the job market. This past year, we have continued to expand our use of the SkillsBuilder framework, which is increasingly recognised as the national standard for essential skills development. Our efforts include the ongoing delivery of the award-winning Parity programme, which supports the employment aspirations of young Black men. Additionally, we expanded our EquiBalance project, supporting students from minoritised backgrounds to transition from further education into employment. Enable, our communications skills programme supported those furthest away from the labour market, including those facing homeless, refugee communities, people wo experience mental health challenges, individuals with learning differences and those facing gender-based violence. In the last 12 months we celebrated the 10th anniversary of Broadgate Connect, a dynamic employment and training initiative, which represents a decade-long collaboration between British Land and ELBA, connecting businesses at Broadgate with local talent from the boroughs of Tower Hamlets and Hackney. Since its inception in 2012, this programme has played a pivotal role in delivering over 500 jobs and apprenticeships, thus driving diverse local hiring practices for Broadgate campus customers and suppliers. During the year, we have reflected on the programme's substantial contributions to the local economy and community. The impact of the partnership was celebrated at a high-profile event and this was also documented in a comprehensive report by Hatch Urban Solutions UK, a leader in socio-economic research, which highlights the successes and future potential of our cross-sectoral collaboration. In addition to supporting jobseekers, ELBA collaborates with employers to increase workforce diversity and improve workplace standards. Through London Works, ELBA’s specialist recruitment agency, we offer tailored recruitment services that help companies to diversify their workforces and develop inclusive hiring practices. We have also worked with employers to upskill their teams, focusing on essential skills that are critical for career advancement and organisational success. Through these comprehensive efforts, ELBA has not only supported individual career growth but also contributed to building stronger and more inclusive workplaces for the communities we serve to help employers improve the diversity of their workforces, and to find good careers for the young people of east London. ## **Impact reporting** We continue to improve the way in which we report the impact of our activities. ELBA’s impact measurement includes: - Volunteer surveys & feedback - Participant feedback - The Annual Community Survey - SkillsBuilder - Tangible Outcomes and destinations - UN SDGs - Evaluation reports – internal and external - 5 - Docusign Envelope ID: 488DF887-F35D-4D99-AF46-C0ED6CDB51BE **EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024** ## **___________________________________________________________________________** This year for the first time we have summarised the impacts across the programmes in a new Annual Impact Digest. The aim now is to produce the digest each year. ## **Financial review** Total main Charity income, including amounts gift-aided from ELBA Works and London Works, was £2.5m (2022/23 £2.7m). Total group income, including London Works and ELBA Works, was £3.6m (2022/23 £3.9m). 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 2023/24 we saw a net decrease of Core business supporters of two, with eight leaving, and six joining. Income from business now also comes through 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 with the community. Income from annual charitable donations from businesses was £811k, down from the previous year (£828k). Overall income from business, including sales via ELBA Works and projects, was £2.5m, £2.7m in 2022/23. The other half of our income has derived mainly from charitable corporate grants and donations, as well as from various thirdparty charitable trusts such as **Islington Giving, Trust for London** and the **MOPAC/GLA.** Our business supporters also sustain the many projects implemented by ELBA, mainly through the provision of volunteers. Some, including **HSBC, British Land/Broadgate Estates, Expedia, MUFG, Euro Monitor, Linklaters, Macquarie, Société Générale, State Street Bank, Barings, Lloyd’s, Wolverine, FCA, Fladgate, Standard Chartered, AXA XL, Segro, Arnold and Porter, Bank of England, Standard Chartered, Citi, SMBC and UBS** have also made additional contributions to specific projects in the year under review. At an operating level, the main ELBA charity made a surplus of £59k, compared to £53k last year. Costs continued to be strictly controlled. The expenditure on restricted-fund projects totalled £1.8m and this was fully funded from the £926k of restricted funds brought forward from last year plus newly-incoming restricted funds of a further £1.5m. Accounting for restricted-fund projects is undertaken mainly on a cash-flow basis, as distinct from 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. ## **Safeguarding** The ELBA Board is trained in appropriate safeguarding approaches as they apply to ELBA. The ELBA Board receives a safeguarding report at each Board meeting. ## **Reserves Policy** The Trustees’ objective is for ELBA to hold unrestricted reserves to cover a minimum of 3 and ideally 6 months of core operating costs. - 6 - Docusign Envelope ID: 488DF887-F35D-4D99-AF46-C0ED6CDB51BE **EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024** ## **___________________________________________________________________________** The Charity’s unrestricted reserves at year end amounted to £507k (2022/23 £467k), together with designated reserves for reorganisation, dilapidations and maternity/paternity sinking fund amounting to £90k (2022/23 £70k) making a total of £597k (2022/23 £537k). This equates to 5.1 months of Core running costs. ELBA maintains a designated Dilapidations Reserve, currently £30,000, a reorganisation reserve topped up a further £10,000 from 2023/24 surplus taking it to £30,000, and a Maternity/Paternity Sinking Fund which was also topped up by £10,000 from 2023/24 surplus taking it to £30,000. The Group unrestricted reserves at year end match those of the charity alone - £597k (2022/23 £537k). ## **Plans for the future period** Our plans for the future will be dominated by the need to continue our response to the cost of living crisis. In addition, we will continue to respond strongly to the need to address inequality, injustice and lack of opportunity suffered by people from ethnic minority communities in east London and beyond. 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. To this end we will be delivering 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 25 September 2024 and signed on its behalf by On0E784E0D2F614 **C Watson Chairman and Trustee** - 7 - Docusign Envelope ID: 488DF887-F35D-4D99-AF46-C0ED6CDB51BE **EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) STATEMENT OF TRUSTEES’ RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2024** ## **______________________________________________________________________** 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: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departure disclosed and explained in the Financial Statements; and - prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. 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. - 8 - Docusign Envelope ID: 488DF887-F35D-4D99-AF46-C0ED6CDB51BE **EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF EAST LONDON BUSINESS ALLIANCE** **____________________________________________________________________________________** ## **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 2024 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: - give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 March 2024, and of the group’s and the parent charitable company’s incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011. ## **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. - 9 - Docusign Envelope ID: 488DF887-F35D-4D99-AF46-C0ED6CDB51BE ## **EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF EAST LONDON BUSINESS ALLIANCE** ## **____________________________________________________________________________________** ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the trustees’ report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the directors’ report included within the trustees’ report has been prepared in accordance with applicable legal requirements. ## **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: - adequate and sufficient accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or - the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees’ remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report. ## **Responsibilities of trustees** As explained more fully in the 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. - 10 - Docusign Envelope ID: 488DF887-F35D-4D99-AF46-C0ED6CDB51BE ## **EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF EAST LONDON BUSINESS ALLIANCE** ## **____________________________________________________________________________________** 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: - We obtained an understanding of the group and parent charitable company and the sector in which they operate to identify laws and regulations that could reasonably be expected to have a direct effect on the financial statements. We obtained our understanding in this regard through discussions with management, industry research, application of cumulative audit knowledge and experience of the sector. - We determined the principal laws and regulations relevant to the group and parent charitable company in this regard to be those arising from Companies Act 2006, Charities Act 2022, Charities (Accounts and Reports) Regulations 2008, employee and tax legislation. - We designed our audit procedures to ensure the audit team considered whether there were any indications of non-compliance by the group and parent charitable company with those laws and regulations. These procedures included, but were not limited to, enquiries of management and review of minutes. - We also identified the risks of material misstatement of the financial statements due to fraud. We did not consider there to be any other risks, in addition to the non-rebuttable presumption of a risk of fraud arising from management of override controls. - As in all of our audits, we addressed the risk of fraud arising from management override of controls by performing audit procedures which included, but were not limited to: the testing of journals; reviewing accounting estimates for evidence of bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. 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. (.Signed9970212C36E2460... by: **Alastair Duke (Senior Statutory Auditor) For and on behalf of PKF Littlejohn LLP Statutory Auditor** 15 Westferry Circus Canary Wharf London E14 4HD 17 December _2024_ - 11 - Docusign Envelope ID: 488DF887-F35D-4D99-AF46-C0ED6CDB51BE ## **EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2024** |**FOR THE YEAR ENDED 31 MARCH 2024**||Company Number 04138032|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**
**£**
**£**
811,250
-
-
-
1,264,899
-
13,885
-
20,809
-
2,110,843
-
24,271
-
1,117,092
-
818,091
-
1,959,455
-
151,388
-
(111,967)
20,000
39,421
20,000
467,200
70,000
506,621
90,000
**Unrestricted Funds**|**Restricted**
**funds**
**£**
-
1,532,297
-
-
-
1,532,297
-
-
1,817,965
1,817,965
(285,668)
91,967
(193,701)
926,337
732,636|**Total**
**Total**
**2024**
**2023**
**£**
**£**
**811,250**
827,920
**1,532,297**
1,690,022
**1,264,899**
1,372,312
**13,885**
5,037
**20,809**
33,755| ||||**3,643,140**
3,929,046| ||||**24,271**
23,016
**1,117,092**
1,180,283
**2,636,056**
2,775,724| ||||**3,777,420**
3,979,023| ||||**(134,280)**
(49,977)
**-**
-| ||||**(134,280)**
(49,977)
**1,463,537**
1,513,514| ||||**1,329,257**
1,463,537| 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. - 12 - Docusign Envelope ID: 488DF887-F35D-4D99-AF46-C0ED6CDB51BE ## **EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) CHARITY STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) AS AT 31 MARCH 2024** |**AS AT 31 MARCH 2024**||Company Number 04138032|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**
**£**
**£**
929,057
-
-
-
13,885
-
50,809
-
993,751
-
24,271
-
818,091
-
842,363
-
151,388
-
(111,967)
20,000
39,421
20,000
467,200
70,000
506,621
90,000
**Unrestricted Funds**|**Restricted**
**funds**
**£**
-
1,532,297
-
-
1,532,297
-
1,817,965
1,817,965
(285,668)
91,967
(193,701)
926,337
732,636|**Total**
**Total**
**2024**
**2023**
**£**
**£**
**929,057**
979,949
**1,532,297**
1,690,022
**13,885**
5,037
**50,809**
73,755| ||||**2,526,048**
2,748,763| ||||**24,271**
23,016
**2,636,056**
2,775,724| ||||**2,660,328**
2,798,740| ||||**(134,280)**
(49,977)
**-**
-| ||||**(134,280)**
(49,977)
**1,463,537**
1,513,514| ||||**1,329,257**
1,463,537| 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. - 13 - Docusign Envelope ID: 488DF887-F35D-4D99-AF46-C0ED6CDB51BE ## **EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2024** Company Number 04138032 ||||**2024**|||2023|| |---|---|---|---|---|---|---|---| ||**Notes**|**£**||**£**|£||£| |**Fixed Assets**|||||||| |Tangible assets|**12**|||**27,880**|||37,393| |**Current assets**|||||||| |Debtors|**13**|**696,149**|||746,050||| |Cash at bank and in hand||**1,396,674**|||1,580,483||| |||**2,092,823**|||2,326,533||| |**Creditors: amounts falling due within**|||||||| |**one year**|**14a**|**(791,446)**|||(900,389)||| |Net current assets||||**1,301,377**|||1,426,144| |**Net assets**||||**1,329,257**|||1,463,537| |**Charity Funds**|||||||| |Restricted funds|**16a**|||**732,636**|||926,337| |Unrestricted funds|**17**|||**506,621**|||467,200| |Designated Funds|**16b**|||**90,000**|||70,000| |**Total charity funds**||||**1,329,257**|||1,463,537| The financial statements were approved by the Board and authorised for issue on 25 September 2024 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. - 14 - Docusign Envelope ID: 488DF887-F35D-4D99-AF46-C0ED6CDB51BE ## **EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) CHARITY BALANCE SHEET AS AT 31 MARCH 2024** |**EAST LONDON BUSINESS ALLIANCE**
**(LIMITED BY GUARANTEE)**
**CHARITY BALANCE SHEET**||||||| |---|---|---|---|---|---|---| |**AS AT 31 MARCH 2024**|||||Company Number 04138032|Company Number 04138032| ||||**2024**||2023|| ||**Notes**|**£**||**£**|£|£| |**Fixed Assets**||||||| |Tangible assets|**12**|||**27,880**||37,393| |**Current assets**||||||| |Debtors|**13**|**526,181**|||706,396|| |Cash at bank and in hand||**1,069,507**|||1,025,198|| |||**1,595,688**|||1,731,594|| |**Creditors: amounts falling due within**||||||| |**one year**|**14a**|**(294,311)**|||(305,450)|| |Net current assets||||**1,301,377**||1,426,144| |**Net assets**||||**1,329,257**||1,463,537| |**Charity Funds**||||||| |Restricted funds|**16a**|||**732,636**||926,337| |Unrestricted funds|**17**|||**506,621**||467,200| |Designated Funds|**16b**|||**90,000**||70,000| |**Total charity funds**||||**1,329,257**||1,463,537| The financial statements were approved by the Board and authorised for issue on 25 September 2024 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. - 15 - Docusign Envelope ID: 488DF887-F35D-4D99-AF46-C0ED6CDB51BE |**EAST LONDON BUSINESS ALLIANCE**
**(LIMITED BY GUARANTEE)**
**CONSOLIDATED STATEMENT OF CASH FLOWS**
**AS AT 31 MARCH 2024**|Company Number 04138032|Company Number 04138032| |---|---|---| |**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**|**2024**
**£**
(189,770)
**(189,770)**
(7,924)
13,885
**5,961**
**(183,809)**
1,580,483
**1,396,674**|2023
£
245,775| |||245,775| |||(35,562)
5,037| |||(30,525)| |||215,250
1,365,233| |||1,580,483| The accounting policies and notes on pages 18 to 27 form part of these financial statements. - 16 - Docusign Envelope ID: 488DF887-F35D-4D99-AF46-C0ED6CDB51BE |**EAST LONDON BUSINESS ALLIANCE**
**(LIMITED BY GUARANTEE)**
**CHARITY STATEMENT OF CASH FLOWS**
**AS AT 31 MARCH 2024**|Company Number 04138032|Company Number 04138032| |---|---|---| |**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**|**2024**
**£**
38,348
**38,348**
(7,924)
13,885
**5,961**
**44,309**
1,025,198
**1,069,507**|2023
£
182,118| |||182,118| |||(35,562)
5,037| |||(30,525)| |||151,593
873,605| |||1,025,198| The accounting policies and notes on pages 18 to 27 form part of these financial statements. - 17 - Docusign Envelope ID: 488DF887-F35D-4D99-AF46-C0ED6CDB51BE ## **EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 MARCH 2024** ## **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 2022. **1.2 Income recognition** Income from membership contributions and grants is credited to the SOFA at the time the commitment is agreed and an invoice issued by ELBA. Contributions and income received in advance, which is wholly attributable to future periods, is deferred to the Balance sheet and transferred to the SOFA in the period to which it relates. 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 forecast for the year ended 31 March 2024. Taking into account the financial position at 21 September 2023 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 impact of rising inflation. Direct energy costs are a small proportion of total costs. The main pressure will be on staff recruitment and retention and the Board has authorised a number of measures to improve retention of our key staff. - 18 - Docusign Envelope ID: 488DF887-F35D-4D99-AF46-C0ED6CDB51BE ## **EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024** ## **1.9 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|**2024**
**£**
**791,250**
**20,000**
**811,250**|2023
£
777,143
50,777| |---|---|---| |||827,920| Income from donations was £811,250 (2023 - £827,920) all of which was attributable to unrestricted funds for both years. |**Charity**
Recurring Contributions from Business Supporters
Donations
Gift Aid receivable|**2024**
**£**
**791,250**
**20,000**
**117,807**
**929,057**|2023
£
**777,143**
**50,777**
**152,029**| |---|---|---| |||979,949| Income from donations was £929,057 (2023 - £979,949) 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|**2024**
**£**
**415,492**
**151,501**
**402,699**
**562,605**
**1,532,297**|2023
£
376,002
169,060
503,004
641,956| |---|---|---| |||1,690,022| Income from charitable activities was £1,532,297 (2023 - £1,690,022) all of which was attributable to restricted funds for both years. - **4** |**Income from other trading activities (Group)**
Bureau agency fees receivable - London Works
Consultancy fees - ELBA Works|**2024**
**£**
**1,187,494**
**77,405**
**1,264,899**|2023
£
1,297,964
74,348| |---|---|---| |||1,372,312| Income from other trading activities was £1,264,899 (2023 - £1,372,312) all of which was attributable to unrestricted funds for both years. - 19 - Docusign Envelope ID: 488DF887-F35D-4D99-AF46-C0ED6CDB51BE ## **EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024** ## **5 Income from investments** |**Group**|**2024**|2023| |---|---|---| ||**£**|£| |Interest receivable|**13,885**|5,037| Income from other investments was £13,885 (2023 - £5,037) all of which was attributable to unrestricted funds for both years. |**Charity**|**2024**|2023| |---|---|---| ||**£**|£| |Interest receivable|**13,885**|5,037| Income from other investments was £13,885 (2023 - £5,037) all of which was attributable to unrestricted funds for both years. ## **6 Other income** |**Group**|**2024**|2023| |---|---|---| ||**£**|£| |Services provided and other income|**20,809**|33,755| Other income was £20,809 (2023 - £33,755) all of which was attributable to unrestricted funds for both years. |**Charity**|**2024**|2023| |---|---|---| ||**£**|£| |Services provided and other income|**50,809**|73,755| Other income was £50,809 (2023 - £73,755) 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**
**2024**
**Costs**
**Costs**
**£**
353,028
109,092
**462,120**
137,542
68,479
**206,021**
263,596
235,443
**499,039**
557,683
93,102
**650,785**
818,091
-
**818,091**
2,129,940
506,116
**2,636,056**|2023
£
419,614
229,872
459,247
774,328
892,662| |---|---|---| |||2,775,723| Expenditure on charitable activities was £2,636,056 (2023 - £2,775,723) of which £818,091 was attributable to unrestricted funds (2023 - £892,662), £nil was attributable to designated funds (2023 - £nil) and £1,817,965 was attributable to restricted funds (2023 - £1,883,062). - 20 - Docusign Envelope ID: 488DF887-F35D-4D99-AF46-C0ED6CDB51BE ## **EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024** ## **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**
**2024**
**Works**
**Works**
**Works**
**Other**
**Total**
**Projects**
**Projects**
**Projects**
**Projects**
**£**
**£**
**£**
**£**
**£**
2,279
1,345
4,318
822
**8,764**
18,805
10,201
27,176
17,412
**73,594**
39,702
21,638
57,565
36,948
**155,852**
19,095
9,960
53,957
18,856
**101,869**
29,211
25,335
92,427
19,064
**166,037**
109,092
68,479
235,443
93,102
**506,116**
**Core**
**Projects**
**2024**
**£**
1,825
1,955
**3,780**
5,625
6,809
**12,434**
7,450
8,764
**16,214**|2023
£
5,336
52,573
127,071
107,312
135,224| |---|---|---| |||427,516| |||2023
£
2,961
9,576| |||12,537| ## **10 Trustees** None of the Trustees (or any person connected with them) received any remuneration or benefits from the charity during the year (2023 - £Nil). ## **11 Employees** Number of employees The average number of employees during the year was: |**Group**
Chief Executive
Administration
Project delivery
East London Business Place
Eagles
London Works (Temporary Staff)
London Works (Edge Placements)
London Works (Kickstarters)
**Charity**
Chief Executive
Administration
Project delivery
East London Business Place|**2024**
**Number**
**1**
**3**
**38**
**4**
**18**
**3**
**-**
**-**
**67**
**2024**
**Number**
**1**
**3**
**38**
**4**
**46**|2023
Number
1
3
38
4
21
**-**
1
2| |---|---|---| |||70| |||2023
Number
1
3
38
4| |||46| - 21 - Docusign Envelope ID: 488DF887-F35D-4D99-AF46-C0ED6CDB51BE ## **EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024** |**Group**
Wages and salaries
Social security costs
Other pension costs|**2024**
**£**
**2,119,686**
**204,283**
**78,510**
**2,402,479**|2023
£
2,281,034
227,451
74,681| |---|---|---| |||2,583,166| The total amount of employee benefits received by key management personnel during the year was £305,186 (2023 - £294,774). The pension contribution payable by the company for these employees for the year was £9,112 (2023 - £10,954). The Charity considers its key management personnel to comprise the Chief Executive, Deputy Chief Executive and Group Finance Director. |**Charity**
Wages and salaries
Social security costs
Other pension costs|**2024**
**£**
**1,620,574**
**166,858**
**67,274**
**1,854,706**|2023
£
1,673,018
180,277
62,821| |---|---|---| |||1,916,116| The total amount of employee benefits received by key management personnel during the year was £305,186 (2023 - £294,774). The pension contribution payable by the company for these employees for the year was £9,112 (2023 - £10,954). The Charity considers its key management personnel to comprise the Chief Executive, Deputy Chief Executive 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
£100,000 to £109,999|**2024**
**Number**
**-**
**1**
**2**
**-**
**1**|2023
Number
1
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 £12,910 (2023 - £15,846). ## **12 Tangible Fixed Assets (Group and Charity)** |Cost
At 1 April 2023
Additions
Disposals
At 31 March 2024
Depreciation
At 1 April 2023
Charge for the year
On disposals
At 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023|**Computer**
**Equipment**
**£**
112,989
7,924
(56,247)
64,666
75,596
17,437
(56,247)
36,786
27,880
37,393|**Total**
**£**
**112,989**
**7,924**
**(56,247)**| |---|---|---| |||**64,666**| |||**75,596**
**17,437**
**(56,247)**| |||**36,786**| |||**27,880**| |||**37,393**| - 22 - Docusign Envelope ID: 488DF887-F35D-4D99-AF46-C0ED6CDB51BE ## **EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024** ## **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|**2024**
**£**
**619,459**
**17,642**
**59,048**
**696,149**
**2024**
**£**
**246,945**
**205,556**
**17,642**
**56,038**
**526,181**|2023
£
670,751
23,939
51,360| |---|---|---| |||746,050| |||2023
£
417,685
219,716
20,667
48,328| |||706,396| Included within Other debtors of both Group and Company is an amount of £15,000 which is receivable after more than one year (2023 - £15,000) being the office rent deposit. ## **14a Creditors: amounts falling due within one year** |**Group**
Purchase ledger balances
Other creditors
Accruals
VAT
Grants received in advance
**Charity**
Purchase ledger balances
Other creditors
Accruals
Grants received in advance|**2024**
**£**
**160,682**
**93,287**
**83,693**
**84,814**
**368,970**
**791,446**
**2024**
**£**
**124,643**
**87,177**
**72,491**
**10,000**
**294,311**|2023
£
152,268
77,902
75,153
75,408
519,658| |---|---|---| |||900,389| |||2023
£
141,786
73,011
64,653
26,000| |||305,450| ## **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. - 23 - Docusign Envelope ID: 488DF887-F35D-4D99-AF46-C0ED6CDB51BE ## **EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) AS AT 31 MARCH 2024** ## **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: |**Balance at**
**1 April 2023**
**£**
Community Works
102,782
Education Works
106,099
Employment Works
371,445
Other
346,011
926,337
**Balance at**
**1 April 2022**
**£**
Community Works
136,673
Education Works
166,911
Employment Works
248,259
Other
476,973
1,028,816
**Unrestricted designated funds (Group and Charity)**
**Balance at**
**1 April 2023**
**£**
Reorganisation Reserve
20,000
Maternity/Paternity Sinking Reserve
20,000
Dilapidations Reserve
30,000
70,000
**Balance at**
**1 April 2022**
**£**
Reorganisation Reserve
20,000
Maternity/Paternity Sinking Reserve
10,000
Dilapidations Reserve
30,000
60,000|**Incoming**
**Resources**
**£**
415,492
151,501
402,699
562,605
1,532,297
**Incoming**
**Resources**
**£**
376,002
169,060
503,004
641,956
1,690,022
**Incoming**
**Resources**
**£**
-
-
-
-
**Incoming**
**Resources**
**£**
-
-
-
-|**Outgoing**
**Resources**
**£**
462,120
206,021
499,039
650,785
1,817,965
**Outgoing**
**Resources**
**£**
419,615
229,872
459,247
774,328
1,883,062
**Outgoing**
**Resources**
**£**
-
-
-
-
**Outgoing**
**Resources**
**£**
-
-
-
-|**Transfers**
20,126
30,000
54,071
(12,230)
91,967
**Transfers**
9,722
-
79,429
1,410
90,561
**Transfers**
**£**
10,000
10,000
-
20,000
**Transfers**
**£**
-
10,000
-
10,000|**Balance at**
**31 March 2024**
**£**
**76,280**
**81,579**
**329,176**
**245,601**| |---|---|---|---|---| |||||**732,636**| |||||**Balance at**
**31 March 2023**
**£**
**102,782**
**106,099**
**371,445**
**346,011**| |||||**926,337**| |||||**Balance at**
**31 March 2024**
**£**
**30,000**
**30,000**
**30,000**| |||||**90,000**| |||||**Balance at**
**31 March 2023**
**£**
**20,000**
**20,000**
**30,000**| |||||**70,000**| ## **16b Unrestricted designated funds (Group and Charity)** ## **16c Transfers** Transfers between funds comprise transfers from unrestricted funds to the Reorganisation, Maternity/Paternity Sinking Fund 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. - 24 - Docusign Envelope ID: 488DF887-F35D-4D99-AF46-C0ED6CDB51BE ## **EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024** ## **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**
27,880
478,741
-
506,621
**Unrestricted**
**funds**
37,393
429,807
-
467,200
**Unrestricted**
**funds**
27,880
478,741
506,621
**Unrestricted**
**funds**
37,393
429,807
467,200|**Designated**
**funds**
-
90,000
-
90,000
**Designated**
**funds**
-
70,000
-
70,000
**Designated**
**funds**
-
90,000
90,000
**Designated**
**funds**
-
70,000
70,000|**Restricted**
**funds**
-
732,636
-
732,636
**Restricted**
**funds**
-
926,337
-
926,337
**Restricted**
**funds**
-
732,636
732,636
**Restricted**
**funds**
-
926,337
926,337|**Total**
**2024**
**27,880**
**1,301,377**
**-**| |---|---|---|---|---| |||||**1,329,257**| |||||**Total**
**2023**
**37,393**
**1,426,144**
**-**| |||||**1,463,537**| |||||**Total**
**2024**
**27,880**
**1,301,377**| |||||**1,329,257**| |||||**Total**
**2023**
**37,393**
**1,426,144**| |||||**1,463,537**| |**18**
**Reconciliation of net income / (expenditure) to net cash flow from operating activities**
**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
**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|**2024**
**£**
**(134,280)**
**(13,885)**
**17,437**
**49,901**
**(108,943)**
**(189,770)**
**2024**
**£**
**(134,280)**
**(13,885)**
**17,437**
**180,215**
**(11,139)**
**38,348**|2023
£
(49,977)
(5,037)
16,081
192,726
91,982| |---|---|---| |||245,775| |||2023
£
(49,977)
(5,037)
16,081
150,624
70,427| |||182,118| - 25 - Docusign Envelope ID: 488DF887-F35D-4D99-AF46-C0ED6CDB51BE ## **EAST LONDON BUSINESS ALLIANCE (LIMITED BY GUARANTEE) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024** ## **19 Contingent liabilities** There were no contingent liabilities at 31 March 2024 (2023 - None). ## **20 Group commitments under operating leases** At 31 March 2024 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**
**2024**
2023
**£**
£
**60,694**
60,694
**5,007**
65,701
**65,701**
126,395|**2024**
2023
**£**
£
**16,704**
16,704
**4,176**
20,880
**20,880**
37,584
**Other**|**2024**
2023
**£**
£
**16,704**
16,704
**4,176**
20,880
**20,880**
37,584
**Other**| |---|---|---|---| ||||37,584| ## **21 Capital commitments** There were no capital commitments at 31 March 2024 (2023 - 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:||| |---|---|---| ||**2024**|2023| ||**£**|£| |C I Watson, Partner CMS Cameron McKenna Nabarro Olswang|**76,482**|207,513| |A Rakowski, Representative of Macquarie|**142,600**|223,000| |J Baskerville, Representative of KPMG|**20,200**|18,000| |M Gabriel, Representative of East London Foundation Trust|**9,950**|66,284| |K Ikram, Representative of Accenture|**20,400**|18,000| |H Morris, Representative of City of London|**54,502**|34,009| |_London Works Director:_||| |_W Carr, Partner CMS Cameron McKenna Nabarro Olswang_|**76,482**|207,513| - 26 - Docusign Envelope ID: 488DF887-F35D-4D99-AF46-C0ED6CDB51BE ## **23 Subsidary undertaking** These consolidated financial statements include the financial statements of the subsidary companies London Works Agency Limited and East London Business Alliance Works Limited. London Works Agency Limited (Company No. 08525614) and East London Business Alliance Works Limited (Company No. 08559404) are private companies limited by guarantee and are both registered in England and 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**|**2024**
2023
**77,405**
74,348
**(13,669)**
(12,747)
**63,736**
61,601
**-**
-
**-**
-
**63,736**
61,601
**(63,736)**
(61,601)
**-**
-
**-**
-
**-**
**-**
**ELBA Works Limited**|**2024**
2023
**1,187,494**
1,297,964
**(1,133,423)**
(1,207,535)
**54,071**
90,429
**-**
-
**-**
-
**54,071**
90,429
**(54,071)**
(90,429)
**-**
-
**-**
-
**-**
-
**London Works Agency Limited**|**2024**
2023
**1,187,494**
1,297,964
**(1,133,423)**
(1,207,535)
**54,071**
90,429
**-**
-
**-**
-
**54,071**
90,429
**(54,071)**
(90,429)
**-**
-
**-**
-
**-**
-
**London Works Agency Limited**| |---|---|---|---| ||||90,429
-
-| ||||90,429
(90,429)| ||||-
-| ||||-| ## **24 Post Balance Sheet Events** The Trustees' views 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 affect the year ended 31 March 2024. - 27 -