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2021-03-31-accounts

REGISTERED COMPANY NUMBER: 6457347 (England and Wales) REGISTERED CHARITY NUMBER: 1122641

Report of the Trustees and Unaudited Financial Statements for the Year Ended 31 March 2021 for

Circles of Support and Accountability UK (A Company Limited by Guarantee)

Simon Porter FCA 120 Woodcote Road

Caversham Reading Berkshire RG4 7EZ

Circles of Support and Accountability UK (A Company Limited by Guarantee)

Contents of the Financial Statements for the Year Ended 31 March 2021

Page
Report of the Trustees 1 to 12
Independent Examiner’s report 13
Statement of Financial Activities 14
Balance Sheet 15
Statement of Cash Flows 16
Notes to the Financial Statements 17 to 20
Detailed Statement of Financial Activities 21 to 22

Circles of Support and Accountability UK (A Company Limited by Guarantee)

Report of the Trustees for the Year Ended 31 March 2021

The Trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2021. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities’ issued in March 2005, and the accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

This report has been prepared mindful of the need to demonstrate the public benefit of the charity’s work, and to this end presents the year’s achievements under the headings of the seven key objectives and workstreams through which Circles UK currently meets its charitable purposes.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

6457347 (England and Wales)

Registered Charity number

1122641

Registered office

Abbey House Abbey Square Reading Berkshire RG1 3BE

Trustees

Mr N Barnes Ms J Carroll Mr G Marshall Chair Ms P Mullan Mr D Sheppard Mr G Williams Mr J Wilson Treasurer

CEO/Company Secretary

Ms R Taylor

Independent Examiner

Simon Porter FCA 120 Woodcote Road Caversham Reading Berkshire RG4 7EZ

Page 1

Circles of Support and Accountability UK (A Company Limited by Guarantee)

Report of the Trustees for the Year Ended 31 March 2021

PURPOSE, OVERVIEW AND OPERATING MODEL

Circles UK’s vision is of ‘no more victims’. Its mission is to enhance public safety by working with individuals who have sexually abused others, and are at risk of doing so again, to self-manage inappropriate thoughts and behaviours, reintegrate safely into society and lead responsible lives.

Circles UK was established in 2008 to oversee the provision of Circles of Support and Accountability (‘Circles’) in England and Wales and owns the Circles brand and Intellectual Property Rights. Organisations which run Circles must become members of Circles UK and operate within the requirements of a Code of Practice. These Circles ‘Providers’, as they are known, are subject to biennial audits by Circles UK to ensure that quality and safety standards are maintained.

A Circle is a group of volunteers from a local community which form a Circle around a person with a conviction for a sexual offence or who have engaged in harmful sexual behaviour. This person is referred to as the ‘Core Member’. Each Circle consists of four to six Volunteers and a Core Member. The Circle aims to provide a supportive social network that also requires the Core Member to take responsibility (be ‘accountable’) for his/ her ongoing risk management. The Circle can also provide support and practical guidance in such things as developing their social skills, finding suitable accommodation, or helping the Core Member to find appropriate hobbies and interests. While helping the Core Member to settle into the community, the Volunteers also assist them in recognising patterns of thought and behaviour that could lead to their reoffending. Within it, the Core Member can grow in self-esteem and develop healthy adult relationships, maximising his or her chances of successfully reintegrating into the community and live a positive offence free life.

Volunteers are closely managed and supervised by professional Coordinators who are employed by Circles Providers. The Core Member is involved from the beginning, is included in all decision making and, like all other members of the Circle, signs an agreement committing him or herself to the Circle and its aims. Each Circle is unique because it is individually designed around the needs of the Core Member. Should the Core Member show signs that they may be at risk of reoffending, the ‘Inner Circle’ of Volunteers will work with Police, Probation Service and other statutory services who provide the ‘Outer Circle’, who may take action to protect the public.

The Circle seeks to prevent further sexual abuse by reducing stigma and social isolation; factors known to be strongly associated with sexual recidivism. The Circle focuses on a person’s ‘positives’ and ‘strengths’ and seeks to support him/her to access safe social outlets and opportunities, avoid dangerous and enabling situations and behaviours and manage day to day challenges. In so doing the Circle serves to help reduce the risk of reoffending associated with alienation and the attendant risk of harm to existing and potential victims.

Since 2008 more than a 1,000 Circles have completed successfully. Evaluation studies have consistently shown that Circles play a crucial role in supporting the risk management of individuals convicted of sexual offences, increase emotional wellbeing of Core Members, assist them in forming appropriate relationships, help them engage in meaningful activities and support them to find and retain suitable accommodation, all factors that are known to reduce reoffending. Circles provide a significant contribution in helping to reduce sexual abuse. As an organisation, Circles UK advocates and raises awareness of the importance of providing support to perpetrators of sexual abuse to address the root causes and prevent further offending. As a recognised authority in this area of work, over the past twelve years, we have also trained and helped set up Circles programmes in Australia, Belgium, Bulgaria, Latvia, the Netherlands, Scotland and Spain. The Circles UK CEO currently chairs the CirclesEurope Association Board.

Page 2

Circles of Support and Accountability UK (A Company Limited by Guarantee)

Report of the Trustees for the Year Ended 31 March 2021

Circles UK’s key values are:

This Trustees' Report reflects the operation of the Circles UK charity rather than the detailed activities of Circles and Circles Providers across England and Wales.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The charity is controlled by its governing document, the Memorandum and Articles of Association incorporated on 19 December 2007 and amended on 13 October 2009 and 4 December 2015. It is constituted as a company limited by guarantee, as defined by the Companies Act 2006. The Articles allow for 15 Trustees, one third of whom must retire by rotation at each AGM, after the first AGM of the charity.

Recruitment, induction and training of Trustees

All new Trustees are required to complete an induction programme. Briefings on key priorities and projects are provided as well as a comprehensive pack containing copies of key documents, organisational information and expectations relating to their duties as Trustees. The charity provides a designated budget for Trustees to assist in the fulfillment of their responsibilities, which includes funding for Trustee development. At least one Away Day is held every year to enable the Trustees to plan together to determine the strategic direction of the organisation. Charity Commission guidelines and new requirements are shared with Trustees and training is arranged where appropriate.

Recruitment of Trustees is through open advertising as well as head hunting (due to the specialist and sensitive nature of the organisation’s work) and seeks to ensure a skills-based Board that best represents the needs of the organisation. This is reviewed annually. Trustees make a declaration of eligibility to serve as a Trustee and also complete a Safeguarding declaration upon appointment. Declarations of interest and Safeguarding are signed and updated annually. Declarations of interest are also asked for at each Board meeting.

Organisation and Membership

Membership of Circles UK includes all local or regional Circles of Support and Accountability Providers, as organisations, which have formally agreed to deliver Circles in accordance with the Circles UK national Code of Practice and demonstrated that they meet the other membership eligibility requirements. This membership provides a wide range of entitlements, on payment of a membership fee, including use of the Circles UK trade marked logo and brand materials, media support, regular training and support and engagement in the charity's governance procedures as defined in its Memorandum and Articles of Association. Providers have to demonstrate a high standard of compliance to maintain membership of Circles UK. There is regular liaison and consultation with Providers through meetings, working parties, briefings and informal liaison.

Page 3

Circles of Support and Accountability UK (A Company Limited by Guarantee)

Report of the Trustees for the Year Ended 31 March 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Additional categories of Associate and Affiliate membership are available for organisations operating Circles outside England and Wales, and for those providing a similar service but not one recognised by Circles UK as Circles of Support and Accountability. This is likely to be an adaptation of the Circles model or applied to another service user group. These membership categories provide some entitlements, but no formal engagement in the governance of the overarching charity.

By the end of the financial year 2020-21 there were nine Full Member Providers and one Associate Member providing Circles across England and Wales. There are currently three types of Circles Providers:

Governance and Risk Management

Circles UK is currently governed by a Board of seven Trustees which sets the strategic direction and provides scrutiny on aspects like performance and financial viability. Decisions on strategic direction, key policies, financial and legal requirements and governance are taken at Trustees meetings. Some Board members also participate in sub-committees and working groups, which consider in detail such matters as finance, income generation, sustainability and organisational risk, referring to the main Board for decision. Trustees’ meetings are held at least five times a year and are attended by the Chief Executive and senior members of the operational team. Day-to-day management of the Charity is delegated by the Trustees to the Chief Executive.

Trustees fully recognise and execute their responsibilities in identifying and managing organisational risk, and in ensuring that appropriate policies and controls are in place. Circles UK has an organisational Risk Register in place which is reviewed by the Trustees. This involves a review of both internal and external risks and seeks to minimise risks through the establishment of procedures and the monitoring of written protocols in relation to all workstreams, projects as well as external developments that may pose risk to the organisation and its network of Circles Member Providers. The aim of these reviews is to ensure that any new risks are considered and steps to mitigate those risks are identified and implemented. The Finance Sub-Committee is chaired by the Treasurer and meets quarterly to monitor financial matters. It has incorporated the Audit and Risk function to provide the Board with enhanced scrutiny of strategic and key organisational risks, as well as projects that are of major strategic significance.

Key strategic priorities:

It is fair to say that COVID-19 and the impact of the lockdowns dominated Circles UK’s work and priorities over the last period. The pandemic presented a significant risk and challenge to Circles UK together with its network of Circles Providers, as face to face Circles provision had to cease with little time to prepare. As social isolation presents a serious risk for increased sexual abuse and many who receive a Circle (Core Members) are not allowed access to the internet due to the crimes they have committed, the remote or virtual measures Providers could use to maintain contact with Core Members were limited. It was therefore essential to increase the support that Circles UK provided to Circles Providers to support them through these difficulties. These support mechanisms will be detailed in the overview of the strategic objectives of the report.

Page 4

Circles of Support and Accountability UK (A Company Limited by Guarantee)

Report of the Trustees for the Year Ended 31 March 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Key strategic priorities continued:

The decision by the National Probation Service not to commission Circles nationally in 2018 continued to have far reaching impact as it led to a reduction in the number of Circles Providers that operate in England and Wales. One of Circles UK’s key priorities of the last year was to establish new Circles Providers in areas where provision has ceased. This was almost impossible in the light of the impact of COVID-19. However, discussions were progressed with organisations in the North East, Greater Manchester and the North West. Work with one organisation has progressed to the stage that it is envisaged that they will be able to apply to the Circles UK Board for provisional membership in 2021.

Circles UK continued to grow the organisation’s sustainability and financial health. It ended the 202021 financial year on a surplus to budget of just over £53,000 which is extremely positive. This was largely the result of travel and subsistence savings as well as not having filled a vacancy due to the impact of COVID-19. Attention also continued to be paid to operating a sound financial and business strategy with continuous close oversight of the organisation’s financial and risk management by the Finance Sub-Committee and scrutiny by the full Board of Trustees. We are extremely grateful for our supporters and funders who continued to support our work, enabling us to develop and expand our services. Risks (financial and other) clearly remain as there is still widespread uncertainty about how COVID-19 will evolve. At the end of the reporting period covered by this report, Providers had still not been able to return to face to face Circles provision.

Raising the profile of Circles UK and Circles provision

Despite the challenges of COVID-19 Circles UK continued to place emphasis on positively promoting its work and that of the Circles Provider network. We managed to continue to build the Circles UK profile and promote Circles as an intervention that reduces sexual reoffending and prevent further victims. We significantly developed our online and digital skills to enable us to continue to provide a service to Providers, but also to develop our skills to provide training, events, seminars and conferences online. This was remarkably successful and enabled us to increase national and international participation at events, increase our training capacity and continue to promote Circles UK, Circles Providers and Circles as an effective intervention. In 2020-21 a total of seven successful online events were provided which includes the launch of a new Circles programme and a conference for CirclesEurope. Circles UK also kept up its publishing profile and a number of articles and blogs were published in research journals and other publications. More detail on this will be set out in the overview of the strategic objectives of the report.

Developing the evidence base of Circles

The Research and Evaluation Group has continued to oversee research and evaluation of Circles and is comprised of academics, practitioners and a representative from the Ministry of Justice. It has also considered and approved research applications from a number of external researchers and reviewed reports and studies published over the year. More detail will be provided on the evidence of the effectiveness of Circles that was published in the last year in the overview of the strategic objectives of the report.

Page 5

Circles of Support and Accountability UK (A Company Limited by Guarantee)

Report of the Trustees for the Year Ended 31 March 2021

Public Benefit

The Trustees have referred to the Charity Commission’s guidance on public benefit when reviewing the charity’s aims and objectives and considered how planned activities will contribute to those objectives.

Circles UK’s focus most relates to the following objectives contained in the Charity Commission’s guidance:

OVERVIEW OF THE 2020-2021 STRATEGIC OBJECTIVES

The next section of the report will detail the achievements under Circles UK’s strategic objectives which are contained in its Strategic Plan 2020-2022.

OBJECTIVE ONE: Address areas where geographical coverage of Circles has decreased and explore ways in which provision can be increased and / or reinstated.

COVID-19 had a significant impact on Circles provision as was highlighted in the section on Governance and Risk Management above. Due to the various lockdowns, face to face Circles provision had to be suspended for prolonged periods. It is to the credit of Circles Provider staff that provision was maintained as much as possible. They found alternative ways of supporting Core Members (service users) through a variety of creative means. However, inevitably 2020-21 has seen a reduction in the number of Circles that were provided in comparison to 2019-20. Circles provision went down from 139 in 2019-20 to 124 in 2020-21. Unsurprisingly, the number of volunteers also decreased from 505 to 413 for the same period. Put in context, however, this is an extraordinary achievement if one considers that Circles provision had to be suspended for at least half of 2020-21 due to COVID-19 lockdowns. These numbers demonstrate the commitment and extraordinary effort Circles Providers made to continue to support Core Members and to make up for lost provision as soon as they were able to.

There were 340 initial referral enquiries for a Circle in comparison to 512 in 2019-20. Of the initial enquiries, 247 resulted in actual referrals compared to 281 in 2019-20. The reason that not all initial referral enquiries result in actual referrals is due to a range of factors such as Core Member unsuitability for a Circle and changes in circumstances of Core Members.

In March 2021 there were 27 individuals waiting for a Circle.

Interestingly 451 new Volunteers received initial training which qualified them to participate in a Circle in comparison to 386 in 2019-20 and 315 received supplementary training in comparison to 256 in 2019-20 (training that is over and above the minimum level of training required). The increase in the numbers of volunteers that were trained is related to having shifted volunteer training online due to COVID-19. This turned out to be remarkably successful in that it enabled larger numbers of Volunteers to attend training. This is one of the positive impacts of COVID-19 and we will build on this learning as we move ahead in the next period.

In March 2021, 174 Volunteers were waiting for supplementary training in comparison to 195 the year before. The reduction in volunteers waiting for training confirms the above point that virtual or online training enables more Volunteers to participate.

Page 6

Circles of Support and Accountability UK (A Company Limited by Guarantee)

Report of the Trustees for the Year Ended 31 March 2021

OBJECTIVE ONE continued:

Despite the difficulties created by COVID-19, Circles UK continued to source new Circles Providers for those areas where provision declined when funding for Circles provision was cut by the Probation Service in 2018. Work continued with Humbercare after their initial approval as a Provider by the Circles UK Board in March 2020 in preparation for their first compliance review. Discussions also continued in Greater Manchester with key stakeholders such as members of the MAPPA Strategic Management Board and the Mayor’s Office. There has also been positive discussions with an organisation that operates in the north east of the country. Although these negotiations have been slowed down by the pandemic, it is positive that the organisations identified have shown continuous interest and discussions will continue in 2021-22.

OBJECTIVE TWO: Re-launch and promote Circles to key stakeholders and partners.

Two very successful and well attended online seminars took place in November and December 2020 to share the learning and achievements of the National Lottery Funded project. The first seminar focused on the results of the project evaluation and was presented in partnership with the research team of Nottingham Trent University who conducted the evaluation. The second seminar focused on the roll out of the 188 Circles in geographical areas where they have not been delivered before. Specific emphasis was placed on the London implementation of the project and was delivered in partnership with Circles South East who was responsible for the London roll out of the project. Follow up blogs were published on both seminars and can be accessed here:

A range of articles in journals and other publications were produced by Circles UK staff including a chapter in the Monument Trust Fellowship book which was launched in March 2021. The book contains a chapter written by the Circles UK CEO called ‘Circles of Support and Accountability: reducing shame, bringing hope and preventing further victims of sexual abuse’. It can be accessed on p 204 by following this link: https://www.khulisa.co.uk/resources/humane-justice/.

We also continued to build our presence on social media; our Twitter and Facebook followers continued to increase steadily. Although we are always cautious about how we use social media, these platforms are extremely helpful to promote the work of Circles UK and the Circles Provider network and get relevant information in the public domain.

Circles UK worked with Circles South West to publish articles in community publications to encourage more people from BAME communities to apply to volunteer for Circles. One of the articles that appeared in the Friend Quaker Magazine can be accessed here: https://twitter.com/Friendmagazine.

Page 7

Circles of Support and Accountability UK (A Company Limited by Guarantee)

Report of the Trustees for the Year Ended 31 March 2021

OBJECTIVE THREE: Expand Circles provision to new stakeholder groups.

The development of the new Circles programme for lower risk people who access Child Sexual Exploitation Material (CSEM) called Circles ReBoot was completed and launched through an online event in September 2020. It was attended by over a hundred participants including representatives from nine countries. Two Circles Providers, Circles South West and Circles South East agreed to pilot the programme and participate in the evaluation which is being overseen by academics from Royal Holloway University. The roll out of the pilot was delayed by six months due to COVID-19 lockdowns which meant the first pilot Circles ReBoot could only start at the beginning of 2021-22. The pilot and evaluation are expected to be finalised by the end of March 2022.

Circles UK continued to work with European partner organisations to develop the Circles Europe Association. The Circles UK CEO continued to chair the Board. The following is a summary of the key developments of the last year:

OBJECTIVE FOUR: Fulfil Circles UK’s core leadership role and function towards the Circles Provider network.

As detailed in the introductory section of the report, it was a key priority for Circles UK to provide additional support to Circles Providers in the light of COVID-19. The following is a summary of the additional support that Circles UK provided (over and above what is usually provided):

Page 8

Circles of Support and Accountability UK (A Company Limited by Guarantee)

Report of the Trustees for the Year Ended 31 March 2021

OBJECTIVE FOUR continued:

Work continued to replace the Dynamic Risk Review (DRR), which is used to assess the Core Member’s progress, with a modernised and strengths-based assessment. The process involved wide ranging consultation with Circles Provides, especially Circle Coordinators as they use the tool extensively and have the most experience of its use. The new tool is called the Strengths Development Review (SDR) and the final version was approved by the Research and Evaluation Committee in March 2021. The new system will make provision for both the Core Member and the Volunteers to complete the SDR which will give richer information than before (the DRR was only completed by the Volunteers). It will also track the strengths and skills that Core Members develop throughout the course of a Circle. Most importantly, it will still include risk information and will monitor how the Core Member’s risk changes over the course of a Circle. We will also be able to draw off interesting trends and produce reports and graphs for Providers at the end of each Circle.

There were four Provider Compliance Reviews scheduled for 2020-21, but due to COVID-19 only one could be started in 2020-21. This created a bit of a bottle neck with additional work pressures for Circles UK reviewing staff in 2021-22 as these outstanding reviews have all been scheduled to take place as early as possible in 2021-22 together with the reviews already scheduled for 2021-22. The reviews have generally increased in size and scope as most of them now include adult Circles as well as Youth Circles.

OBJECTIVE FIVE – Continue to build the financial health and sustainability of Circles UK.

During the last year we continued to keep very close oversight of Circles UK’s accounts, spending patterns, cash flow and income generation through the Finance Sub-Committee with finance reports to all Board of Trustees meetings in line with Board of Trustees governance responsibilities. Due to COVID-19 we effected some savings, mainly related to less travel and subsistence expenses and not being able to recruit to one vacancy. We ended the 2020-21 financial year on a surplus to budget of £53,614 with in-cash reserves of £450,498. The close monitoring and emphasis on income generation will continue in the next period with the aim to continue to increase Circles UK’s long term sustainability.

Maintaining positive relationships with funders remained a key priority, especially in the light of the added uncertainty and instability that was brought by COVID-19. We are particularly grateful that some of our existing funders offered additional financial and other support in the light of the additional challenges that was brought on by the pandemic. We also managed to secure a substantial three year grant for the post-pilot implementation of Circles ReBoot. This grant enables Circles UK to provide part funding to Circles Providers for the delivery of Circles ReBoot as part of our strategy to aid the financial sustainability of Circles Providers where possible. We also focused on developing new Circles programmes (like Circles ReBoot, as referred to above). New Circles programmes not only meet a necessary need in addressing sexual abuse but is also intended to broaden the income base for Circles Providers, which is part of the drive to ensure overall sustainability of the Circles model.

The Big Lottery Fund Project entered its final stage and the last Circles of the 188 Circles of this project completed successfully in October 2020. A final financial reconciliation was done, the project was officially closed, and an end of project report was provided to the National Lottery Community Fund.

Page 9

Circles of Support and Accountability UK (A Company Limited by Guarantee)

Report of the Trustees for the Year Ended 31 March 2021

OBJECTIVE SIX: Ensure sound governance, leadership and management of Circles UK.

Circles UK continued to have regular Board of Trustees meetings. All meetings took place online due to the restrictions of COVID-19. The Annual General Meeting also took place online in November 2020. The Trustees held an online Away Day in February 2021 to consider the key strategic issues and risks and plan for the next period. This informed the priorities and key objectives of the Strategic Plan to ensure that the external environment, governance issues and risks have been fully considered.

All requirements of the Charity Commission, Companies House and the Information Commission’s Office were met including the annual inspection of Circles UK’s Accounts, Confirmation Statement to Companies House, registration with the Information Commission’s Office and submitting the Accounts on time.

In 2020 the Board Chair approached the end of his serving period and a recruitment drive for a new Chair was started in April 2020. However, due to the challenges of COVID-19, it proved difficult to recruit a suitable chair and it was agreed to extend the current Chair’s serving period by one year. It is the intention to re-start the recruitment process for a new Chair early in 2021.

One of Circles UK’s National Quality Managers resigned and left Circles UK at the end of March 2021. Recruitment for a replacement will happen in the 2021-22 financial year.

OBJECTIVE SEVEN: Continue to develop the evidence base to demonstrate the impact and effectiveness of Circles.

Circles UK continued to oversee the Research and Evaluation Committee. The Committee considered research applications, advised on the development of the Strength Development Review (SDR) as referred to in Objective 4 and started to consider the creation of an Ethics Committee function for Circles UK for small scale evaluations. This work will be continued in 2021-22.

The CirclesEurope Board led an international survey to gauge the impact of COVID-19 on Circles provision (led by Prof Kieran McCartan who leads the Research and Evaluation sub-group of the Board). A total of 16 Circles Providers from eight different countries (three UK Providers, five Dutch Providers, one Belgian Provider, one Spanish Provider, one Latvian Provider, one Irish Provider, one American Provider, and three Canadian Providers) completed the survey. Here is a link to the report: https://uwe-repository.worktribe.com/output/6828494. An article on the findings of the research was published in the Howard League ECAN Bulletin (‘The impact of COVID-19 on Circles of Support and Accountability’) which can be accessed here: https://howardleague.org/wpcontent/uploads/2021/03/ECAN-Bulletin-Themed-Issue-1-March-2021.pdf

The final National Lottery evaluation report of the ‘Completing the Circle’ £2 million project which set up 188 new Circles in areas where they had not been delivered before was published. The evaluation found four statistically significant findings:

Page 10

Circles of Support and Accountability UK (A Company Limited by Guarantee) Report of the Trustees for the Year Ended 31 March 2021

OBJECTIVE SEVEN continued:

In addition, in respect of Volunteers, findings taken from comparisons of pre- and post-training questionnaires revealed that the training delivered to Volunteers was informative and impactful. Over time the confidence levels of Volunteers increased significantly, and they acquired a range of transferable skills.

FINANCIAL REVIEW

Reserves policy

The Trustees continued to be committed to maintaining a prudent approach to building financial reserves and ensuring expenditure is well controlled. The Trustees’ ongoing intention is to hold reserves of at least three months operational funding and have continued to achieve that in the 202021 financial year. In addition, the full costs that would be required in the unfortunate event of having to shut down the organisation are costed and reviewed at least annually by the Board of Trustees to ensure that the required reserves are left protected and kept in a separate bank account.

Principal Funding Sources

The climate for income generation remains extremely difficult across the charitable sector and COVID-19 has brought significant additional pressures and competition for funding. However, Circles UK has continued to benefit from the support and partnership of a number of charitable trusts and foundations. For Circles UK, with its services rooted in a deeply challenging and controversial field of work, certain sources of income routinely available to other charities tend to be closed to us. For example, major fundraising events and public fundraising campaigns are unlikely to ever be successful methods of fundraising. We are extremely grateful for the generous support we have continued to receive from the regular donors of our ‘Friends Scheme’ as well as the charitable trusts and foundations that have continued to support us so generously. Without this support we would not be able to do the valuable work we do.

We are also very grateful for the grant we have continued to receive from the Ministry of Justice / HMPPS. This grant income currently represents our primary income and we remain extremely grateful to the grant manager and other Ministry of Justice / HMPPS colleagues for their continuous support.

We also want to express our appreciation for the Circles UK pro bono and other volunteers who have provided their time and expertise over the year in a variety of ways. Besides these individuals the Trustees wish to thank specifically the following organisations:

AB Charitable Trust National Philanthropic Trust UK Esmée Fairbairn Foundation Porticus UK John Ellerman Foundation The Triangle 1949 Trust The Mary Kinross Charitable Trust The Tudor Trust Ministry of Justice / HMPPS

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Circles of Support and Accountability UK (A Company Limited by Guarantee)

Report of the Trustees for the Year Ended 31 March 2021

FINANCIAL REVIEW continued:

Circles UK also received practical help, discounts and time from a number of individuals, which is immensely appreciated. The legal trademark advice provided by Carrollanne Lindley on a pro bono basis over the year has been invaluable and of itself represents considerable financial savings for the charity.

STATEMENT OF THE TRUSTEES' RESPONSIBILITIES

The Trustees are responsible for preparing the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

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 the United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the charitable company and of the surplus or deficit of the charitable company for that period. In preparing those financial statements, the Trustees are required to

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO INDEPENDENT EXAMINER

So far as the Trustees are aware, there is no relevant information (as defined by Section 418 of the Companies Act 2006) which the charitable company's examiner is unaware, and each Trustee has taken all the steps they ought to have taken as a trustee in order to make them aware of any information and to establish that the charitable company's examiner is aware of that information.

Independent Examiner

The examiner, Simon Porter FCA, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD

Mr G Marshall - Trustee

November 2021

Page 12

Independent Examiner's Report to the Trustees of Circles of Support and Accountability UK (A Company Limited by Guarantee)

I report on the accounts of the company for the year ended 31 March 2021 which are set out on pages fourteen to twenty.

Respective responsibilities of trustees and examiner

The charity’s trustees (who are also the directors for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year (under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. The charity's gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified member of the Institute of Chartered Accountants in England and Wales.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

Basis of independent examiner’s report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

In connection with my examination, no matter has come to my attention:

Simon Porter FCA 120 Woodcote Road Caversham Reading Berkshire RG4 7EZ

November 2021

Page 13

Circles of Support and Accountability UK (A Company Limited by Guarantee) Statement of Financial Activities for the Year Ended 31 March 2021

Unrestricted
funds
Note
£
INCOMING RESOURCES
Incoming resources from generated funds
Voluntary income
2
235,334
Investment income
3
742
Total Incoming Resources
236,076
RESOURCES EXPENDED
Donations made
-
Cost of generating funds
Fundraising trading: cost of goods sold and other co
1,053
Governance costs
2,941
Other resources expended
4
278,468
Total Resources Expended
282,462
NET INCOMING RESOURCES
(46,386)
Total funds brought forward
270,190
TOTAL FUNDS CARRIED FORWARD
223,804		 2021
Restricted
funds
£
100,000
-
100,000
-
-
-
-
-
100,000
-
100,000		 Total
Funds
£
335,334
742
336,076
-
1,053
2,941
278,468
282,462
53,614
270,190
323,804		 2020
Total
Funds
£
603,855
231
604,086
25,500
210,806
4,110
291,495
531,911
72,175
198,015
270,190

The notes form part of these financial statements

Page 14

Company Registration Number: 6457347 Registered Charity Number: 1122641

Circles of Support and Accountability UK (A Company Limited by Guarantee) Balance Sheet At 31 March 2021

Unrestricted Restricted
funds
funds
Note
£
£
FIXED ASSETS
Tangible assets
8
2,985
-
CURRENT ASSETS
Debtors
9
15,302
-
Cash at bank and in hand
350,498
100,000
365,800
100,000
CREDITORS
Amounts falling due within one year
10
(144,981)
-
NET CURRENT ASSETS
220,819
100,000
NET ASSETS
223,804
100,000
FUNDS
11
Unrestricted funds
Restricted funds		 2021
Total
funds
£
2,985
15,302
450,498
465,800
(144,981)
320,819
323,804
223,804
100,000
323,804		 2020
Total
funds
£
943
6,369
323,762
330,131
(60,884)
269,247
270,190
270,190
-
270,190

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2021.

The members have not required the charitable company to obtain an audit of its financial statements for the year ended 31 March 2021 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006.

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006.

The financial statements were approved by the Board of Trustees on November 2021 and were signed on its behalf by:

G Marshall - Trustee

The notes form part of these financial statements

Page 15

Circles of Support and Accountability UK (A Company Limited by Guarantee)

Statement of Cash Flows

for the Year Ended 31 March 2021

Unrestricted Restricted
funds
funds
£
£
Cash flow from operating activities
Net income per SOFA
(46,386)
100,000
Less: Investment income
(742)
-
Add back depreciation
1,118
-
Decrease/(increase) in debtors
(8,933)
-
Increase in creditors
84,097
-
29,154
100,000
Cash flows from investing activities
Capital expenditure
(3,160)
-
Investment income
742
-
(2,418)
-
Net increase/(decrease) in cash:
26,736
100,000
Total cash as at 1 April 2020
323,762
-
Total cash as at 31 March 2021
350,498
100,000		 2021
Total
funds
£
53,614
(742)
1,118
(8,933)
84,097
129,154
(3,160)
742
(2,418)
126,736
323,762
450,498		 2020
Total
funds
£
72,175
(231)
789
13,660
338
86,731
(1,061)
231
(830)
85,901
237,861
323,762

The notes form part of these financial statements

Page 16

Circles of Support and Accountability UK (A Company Limited by Guarantee) Notes to the Financial Statements for the Year Ended 31 March 2021

1. ACCOUNTING POLICIES

Basis of Accounting

The accounts have been prepared under the historic cost convention.

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) '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) and the Charities Act 2011.

Incoming resources

All incoming resources are included on the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.

Resources expended

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost relating to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its

Office equipment - 33% straight line Fixtures and fittings - 25% reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund, where material, is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Page 17

Circles of Support and Accountability UK (A Company Limited by Guarantee)

Notes to the Financial Statements - continued for the Year Ended 31 March 2021

2.
VOLUNTARY INCOME
Gift aid donations
Donations
Grants
Subscriptions
Sales income
Grants received, included in the above, are as follows:
Grants to restricted funds (see note 11)
Other grants
Total grants
3.
INVESTMENT INCOME
Deposit account interest
4.
SUPPORT COSTS
Management
£
Other resources expended
277,269
5.
NET INCOMING RESOURCES
Net resources are stated after charging:
Depreciation - owned assets		 Finance
£
81		 2021
£
4,820
5,550
321,819
1,670
1,475
335,334
100,000
221,819
321,819
742
Other
£
1,118
2021
£
1,118		 2020
£
5,434
5,073
590,883
1,568
897
603,855
-
590,883
590,883
231
Totals
£
278,468
2020
£
789

6. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2021 (2020 - nil).

Trustees' expenses

Trustees' expenses reimbursed during the year ended 31 March 2021 amounted to £40 (2020 - £2,263).

7.
STAFF COSTS
Wages and salaries
Social security costs
Other pension costs		 2021
£
196,544
15,564
15,239
227,347		 2020
£
192,758
17,270
15,184
225,212

Page 18

Circles of Support and Accountability UK (A Company Limited by Guarantee)

Notes to the Financial Statements - continued for the Year Ended 31 March 2021

8.
TANGIBLE FIXED ASSETS
COST
At 1 April 2020
Additions
At 31 March 2021
DEPRECIATION
At 1 April 2020
Charge for year
At 31 March 2021
NET BOOK VALUE
At 31 March 2021
At 31 March 2020
9.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Debtors
Prepayments
10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Pensions
PAYE and NI
Deferred income
Accrued expenses
Other creditors		 Plant and
machinery etc
£
19,327
3,160
22,487
18,384
1,118
19,502
2,985
943
2021
2020
£
£
9,270
-
6,032
6,369
15,302
6,369
452
17,105
2,444
2,366
5,350
5,686
133,750
33,750
2,267
1,977
718
-
144,981
60,884

Page 19

Circles of Support and Accountability UK (A Company Limited by Guarantee) Notes to the Financial Statements - continued for the Year Ended 31 March 2021

11. MOVEMENT IN FUNDS

Restricted Funds
National Philanthropic Trust
Total Restricted Funds
Unrestricted funds
TOTAL FUNDS		 At 1
April 2020
£
-
-
270,190
270,190		 Incoming Resources
At 31
resources
expended March 2021
£
£
£
100,000
-
100,000
100,000
-
100,000
236,076
282,462
223,804
336,076
282,462
323,804

12. GUARANTEE

The members of the company have agreed to contribute £1 each to the assets of the company in event of it being wound up.

Page 20

Circles of Support and Accountability UK (A Company Limited by Guarantee) Detailed Statement of Financial Activities for the Year Ended 31 March 2021

INCOMING RESOURCES
Voluntary income
Gift aid donations
Donations
Grants
Subscriptions
Sales income and commission received
Investment income
Deposit account interest
Other incoming resources
Conference fees
TOTAL INCOMING RESOURCES
RESOURCES EXPENDED
Donations made
Fundraising trading: cost of goods and other costs
Purchases
Governance costs
Accountancy
Support costs
Management
Wages
Social security
Pensions
Insurance
Light and heat
Telephone
Postage and stationery
Rent and services
Consultancy fees
Legal and professional fees
Life assurance
Travel and subsistence
Books and periodicals
Carried forward		 2021
£
4,820
5,550
321,819
1,670
1,475
335,334
742
-
-
336,076
-
1,053
2,941
196,544
15,564
15,239
1,566
854
1,437
274
19,514
4,783
2,500
5,312
26
29
263,642		 2020
£
5,434
5,073
590,883
1,568
897
603,855
231
-
-
604,086
25,500
210,806
4,110
192,758
17,270
15,184
1,661
828
3,906
-
19,476
578
3,243
5,901
10,997
-
271,802

This page does not form part of the statutory financial statements

Page 21

Circles of Support and Accountability UK (A Company Limited by Guarantee) Detailed Statement of Financial Activities for the Year Ended 31 March 2021

Management
Brought forward
Equipment maintenance
Computer consumables
Office expenses
Meeting costs
Subscriptions
Staff welfare and training
Sundry expenses
Funds disbursed through other Circles Projects
Training Costs
Repairs & renewals
Cleaning
Finance
Bank charges
Other
Depreciation
TOTAL RESOURCES EXPENDED
NET INCOME		 2021
£
263,642
335
6,096
1,233
(390)
755
77
-
1,500
1,098
153
2,770
277,269
81
1,118
282,462
53,614		 2020
£
271,802
335
5,527
3,065
5,211
1,059
445
-
210
248
10
2,719
290,631
75
789
531,911
72,175

This page does not form part of the statutory financial statements

Page 22