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2021-12-31-accounts

Charity Registration No. 1122878

Company Registration No. 06269709 (England and Wales)

CROYDON COMMITMENT LIMITED

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

CROYDON COMMITMENT LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Directors Mrs K Glass
Mr S Dorman
Mrs K D Chillman
Mr C E Humphreys
Mr I J Palmer
Charity number 1122878
Company number 06269709
Principal address c/o Croydon Commitment
Mott Macdonald House
8-10 Sydenham Road
Croydon
Surrey
CR0 2EE
Registered office Kings Parade
Lower Coombe Street
Croydon
Surrey
CR0 1AA
Independent examiner DSK Partners LLP, Chartered Accountants
306 High Street
Croydon
Surrey
CR0 1NG

CROYDON COMMITMENT LIMITED

CONTENTS

Page
Directors' Report 1 - 3
Independent examiner's report 7
Statement of financial activities 5
Statement of financial position 6
Notes to the financial statements 8 - 14

CROYDON COMMITMENT LIMITED

DIRECTORS' REPORT REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021

The Directors present their report on the affairs of the charitable company together with the accounts for the above year.

The following report is prepared in accordance with the small company regime (Section 419(2) of the Companies Act 2006).

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Objectives and activities

Covid 19

Objectives and activities Covid 19 Since 31 December 2019, the spread of COVID-19 has severely impacted many local economies around the globe. In many countries, businesses are being forced to cease or limit operations for long or indefinite periods of time. In the UK this began on 23rd March 2020. Measures taken to contain the spread of the virus, including travel bans, quarantines, social distancing, and closures of non-essential services have triggered significant disruptions to businesses worldwide, resulting in an economic slowdown. Governments and central banks have responded with monetary and fiscal interventions to stabilise economic condition. The charity is likely to be affected in the form of loss of income, however it will benefit from savings in costs and therefore this will not significantly impact the charity's financial position. The charity has determined that these events are nonadjusting subsequent events. Accordingly, the financial position and results of operations as of and for the year ended 31 December 2021 have not been adjusted to reflect their impact.

The duration and impact of the COVID-19 pandemic, as well as the effectiveness of government and central bank responses, remains unclear at this time. It is not possible to reliably estimate the duration and severity of these consequences, as well as their impact on the financial position and results of the charity for future periods.

Objectives and activities

The objects of the charity are to bring the business and voluntary sectors together for the benefit of Croydon residents and the local environment. The voluntary sector refers to charities and voluntary organisations and does not refer to local government or other statutory authorities.

The main activities undertaken are local community projects around the themes of Education, Employment, Environment, Health and Wellbeing and Social Inclusion, the majority of these projects are supported by volunteer staff from companies in Croydon and local charities.

The trustees confirm that they have referred to the Charity Commission’s general guidance on public benefit when reviewing the Trust’s aims and objectives and in planning future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set. The have paid due regard to guidance issued by the Charity Commission in deciding what activities they should undertake.

The have paid due regard to guidance issued by the Charity Commission in deciding what activities the should undertake.

CROYDON COMMITMENT LIMITED

DIRECTORS' REPORT REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Achievements and performance

The Directors feel that the overall standing of the charity has reflected the economic pressures that have continued to impact on our broader operational environment. Performance was in line with our expectations. As we move into 2022, we expect that both direct and indirect impacts of Covid-19 will reduce our ability to generate income and will also change how we interact with our volunteer groups. Our continued careful monitoring and management of the financial resources available, together with our health and safety appraisals will ensure that the Charity continues to operate within the acceptable parameters whilst supporting our stakeholders. We feel that the report and accounts are a true reflection of the charity’s receipts for the financial year and the income generated has met with our previous cautious financial forecasts.

Following a review in 2017, the Directors and CEO worked together with local stakeholders to create a new threeyear Strategic Business Plan 2018-20 for the organisation. Croydon Commitments’ thematic programme addresses five key areas; Education, Employment, Environment, Health & Wellbeing and Social Inclusion and offers a range of practical ways businesses can work together to address the issues of deprivation and inequality in Croydon.

As a result of Covid-19 and its growing impact on our economy, we are continuing to implement the abovementioned plan, but throughout 2021 and 2022 we have shifted greater attention towards employment, delivering projects that will ultimately help people that have been adversely impacted by Covid-19 get back into the workplace. In December 2020, the charity was successfully awarded a sum of £82,000 from the John Lewis Partnership to run an employability programme over the next two years. This income will be recognised as received in the current financial period. 2020’s first and second pandemic wave meant that we and our partners were unable to deliver any face-to-face volunteering. However, we were able to deliver 100 VE Day goodie bags to local veterans to celebrate the 75th Anniversary of VE Day. We also supported residents and voluntary groups by signposting and connecting to relevant organisations via social media, emails and telephone calls. We recently implemented a brand refresh, including launching a new website which details all upcoming Corporate Social Responsibility opportunities, both from Croydon Commitment and other organisations. The refreshed communications have enabled the charity to more effectively advertise its work and to attract new members. Our full impact report for 2021 can also be found on our website.

The charity will continue to work alongside local stakeholders to meet its charitable objectives and realise its vision of establishing Croydon as a centre of excellence in sustainable development.

Financial review

Croydon Commitment has a policy regarding the level of reserves held at any one time in the bank, and this is that the amount of money held on reserve is a minimum of more then one year of the charity's running costs. This in real terms currently amounts to £77,950 being held in the bank account and guarantees that the charity may still operate for at least that period if financial difficulties ensue. This requirement was satisfied as at the 31 December 2021. We feel this is a responsible action on our part and is in accordance with guidelines laid down by the charities commission.

The Directors have assessed the major risks to which the charitable company is exposed and are satisfied that systems are in place to mitigate exposure to the major risks.

The have assessed the major risks to which the is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Structure, governance and management

The charitable company is a company limited by guarantee.

The governing document is the memorandum and articles of association.

The methods adopted for the recruitment and appointment of new directors is by invitation only in full agreement of the board.

CROYDON COMMITMENT LIMITED

DIRECTORS' REPORT REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees, who were also directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mrs K Glass Mr S Dorman Mrs K D Chillman Mr C E Humphreys Mr I J Palmer

None of the has any beneficial interest in the company. All of the are members of the company and guarantee to contribute £1 in the event of a winding up.

The Directors' report report was approved by the Board of .

.............................. Mr S Dorman

Date: .............................................

CROYDON COMMITMENT LIMITED

STATEMENT OF DIRECTORS' REPORT RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2021

The directors, who also act as trustees for the charitable activities of Croydon Commitment Limited, are responsible for preparing the Directors' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the Directors to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these accounts, the Directors are required to:

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

CROYDON COMMITMENT LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted
Unrestricted
funds
funds
2021
2020
Notes
£
£
Income from:
Voluntary income
3
88,995
29,103
Investments
2
-
4
Total income
88,995
29,107
Expenditure on:
Support Costs & Overhead
9,699
7,644
Charitable activities
6
31,669
24,255
Total resources expended
41,368
31,899
Net income/(expenditure) for the year/
Net movement in funds
47,627
(2,792)
Fund balances at 1 January 2021
31,751
34,543
Fund balances at 31 December 2021
79,378
31,751		 Unrestricted
Unrestricted
funds
funds
2021
2020
Notes
£
£
Income from:
Voluntary income
3
88,995
29,103
Investments
2
-
4
Total income
88,995
29,107
Expenditure on:
Support Costs & Overhead
9,699
7,644
Charitable activities
6
31,669
24,255
Total resources expended
41,368
31,899
Net income/(expenditure) for the year/
Net movement in funds
47,627
(2,792)
Fund balances at 1 January 2021
31,751
34,543
Fund balances at 31 December 2021
79,378
31,751		 Unrestricted
Unrestricted
funds
funds
2021
2020
Notes
£
£
Income from:
Voluntary income
3
88,995
29,103
Investments
2
-
4
Total income
88,995
29,107
Expenditure on:
Support Costs & Overhead
9,699
7,644
Charitable activities
6
31,669
24,255
Total resources expended
41,368
31,899
Net income/(expenditure) for the year/
Net movement in funds
47,627
(2,792)
Fund balances at 1 January 2021
31,751
34,543
Fund balances at 31 December 2021
79,378
31,751
funds
2021
£
Income from:
Voluntary income
3		 88,995
Investments
2		 -
Total income 88,995
Expenditure on:
Support Costs & Overhead
9,699
Charitable activities
6		 31,669
Total resources expended 41,368
Net income/(expenditure) for the year/ 47,627
Net movement in funds (2,792)
34,543
31,751
Fund balances at 1 January 2021 31,751
Fund balances at 31 December 2021 79,378

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

CROYDON COMMITMENT LIMITED

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2021

Notes 2021 2020
£ £ £ £
Fixed assets
Investments
7
Current assets		 251
82,740
82,991
(2,093)		 100
80,898
80,998
79,378
79,378
(1,620)
(1,620)		 6,944
27,179
34,123
(2,472)		 100
Trade and other receivables
8
Cash at bank and in hand
Current liabilities
9
Net current assets 31,651
Total assets less current liabilities
31,751
Income funds
Unrestricted funds 31,751
31,751
-
-

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2021.

The Directors acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the on .........................

..............................

Mr S Dorman Trustee

Company Registration No. 06269709

CROYDON COMMITMENT LIMITED

INDEPENDENT EXAMINER'S REPORT

TO THE OF CROYDON COMMITMENT LIMITED

I report on the financial statements of the for the year ended 31 December 2021, which are set out on pages 5 to 14.

Respective responsibilities of and examiner

The ’s , who are also the directors of Croydon Commitment Limited for the purposes of company law, are responsible for the preparation of the financial statements. The 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.

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 financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, 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 financial statements present a ‘true and fair view’ and the report is limited to those matters set out in the next statement.

Independent examiner's statement

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

have not been met or

Dhirajlal Shah

DSK Partners LLP, Chartered Accountants Chartered Accountants 306 High Street Croydon Surrey CR0 1NG

Dated: .........................

CROYDON COMMITMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

Charity information

Croydon Commitment Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Kings Parade, Lower Coombe Street, Croydon, Surrey, CR0 1AA.

1.1 Accounting convention

The financial statements have been prepared in accordance with the 's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The is a Public Benefit Entity as defined by FRS 102.

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

The accounts have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Charitable funds

Unrestricted funds are available for use at the discretion of the in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the .

1.3 Incoming resources

Income is recognised when the is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for services provided in the normal course of business, net of discounts and other sales related taxes.

CROYDON COMMITMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.4 Resources expended

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Expenditure is recognised on an accruals basis.

The cost of generating funds is fundraising expenditure incurred by the charity in respect of voluntary income and income from fundraising activities. The expenditure includes direct staff costs and support costs.

Charitable activities expenditure includes activities identifiable as wholly or mainly in support of the objectives of the Charity. Grants are recognised as committed.

Governance costs are those costs relating to compliance with constitutional and statutory requirements and the structure and governance review.

1.5 Non-current investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.6 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7 Financial instruments

The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.

Basic financial assets

Financial assets classified as other financial assets are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss includes any dividend or interest earned on the financial asset.

CROYDON COMMITMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

(Continued)

Other financial assets

Financial assets with fixed or determinable payments and fixed maturity dates that the has the positive intent and ability to hold to maturity are classified as held to maturity investments.

Held to maturity investments are measured at amortised cost using the effective interest method less any impairment, with revenue recognised on an effective yield basis.

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Impairment of financial assets

Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.

If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in or in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

1.8 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

CROYDON COMMITMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.10 Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.11 Status

Croydon Commitment Limited is a registered charity, No. 1122878, and is exempt from income and capital gains tax under the provisions of Section 505 of the Income and Corporation Taxes Act 1988 and Section 145(1) of the Capital Gains Tax Act 1979.

1.12 Fund accounting

Restricted funds comprise unexpended balances of donations and grants held on trust to be applied for specific purposes.

Designated funds comprise funds which have been set aside at the discretion of the directors for specific purposes.

General funds comprise the accumulated net movement in funds on income and expenditure. They are available for use at the discretion of the directors in furtherance of the general objectives of the charity.

2 Investments

Total
Unrestricted		 Total
Unrestricted
funds
2021 2020
£ £
Interest receivable - 4
Voluntary income
Unrestricted
funds
2021
£
Total
funds
2021 2020
£ £
Donations and gifts 148 2,234
Grant Income 83,597 9,869
Membership fees 5,250 17,000
88,995 29,103

3 Voluntary income

CROYDON COMMITMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

4 Trustee Expenses

None of the trustees (or any persons connected with them) received any remuneration during the year.

5 Employees

The average monthly number of employees during the year was:

The average monthly number of employees during the year was: The average monthly number of employees during the year was: The average monthly number of employees during the year was:
2021
2020
Number
Number
2
2
2 2
Employment costs 2021 2020
£ £
Wages and salaries 32,310 22,624
Social security costs (1,181) 1,185
Other pension costs 540 446
31,669 24,255

There were no employees whose annual remuneration was more than £60,000.

6 Charitable activities

Charitable
Charitable
Expenditure Expenditure
2021 2020
£ £
Staff costs 31,669 24,255

CROYDON COMMITMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

7 Fixed asset investments

Cost or valuation
At 1 January 2021 & 31 December 2021
Carrying amount
At 31 December 2021
At 31 December 2020
8
Trade and other receivables
Amounts falling due within one year:
Trade receivables
Other receivables
9
Current liabilities		 Unlisted
investments
£
100
100
100
2021
2020
£
£
251
6,250
-
694
251
6,944
2021
2020
£
£
329
624
100
100
104
68
1,560
1,680
2,093
2,472
2021
£
251
-
251
Other taxation and social security
Amounts due to group undertakings
Other payables
Accruals and deferred income		 2021
£
329
100
104
1,560
2,093

10 Related party transactions

Included in creditors is an amount of £100 (2019: £100) owed to Croydon Commitment Events Ltd a subsidiary of the company.

Included in support costs are amounts paid to White Label Publishing Ltd, a company connected to K Glass of £3,037 (2020 - £NIL) for marketing support services.

Included in support costs are amounts paid to Bryden Johnson Ltd, a company connected to S Dorman of £1,337 (2020 - £1,380) for accountancy support services.

CROYDON COMMITMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

11
Cash generated from operations		 2021 2020
£
Surplus/(deficit) for the year
Adjustments for:
Investment income recognised in statement of financial activities
Movements in working capital:
Decrease/(increase) in trade and other receivables
(Decrease)/increase in trade and other payables
Cash generated from/(absorbed by) operations		 £
47,627
-
6,693
(2,792)
(4)
(4,079)
(379) 244
53,941
(6,631)
12
Analysis of changes in net funds
The had no debt during the year.