THE CUNK CHARITY Llmlt•d by quaranto• R•gl•tor•d Ch•rlty Numbor 1134581 R•gl*t•r•d Compar*y Numb•r 07157540 {England and Wal••l CONSOLIDATEO FINANCIAL 8TATEMENTS FOR THE YEAR ENDED 31 DECEM8ER 2020 THE CLINK CHARITY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Contonts Pag•8 TTustegS, <)fficafs and advlsars Report ol the trustees 3-12 fleport of the oudltors 13.16 Consolldalad Stat•m8nt of finandal 8ctwits.es and Incomo and &xpènélturè èceount 17 Balance sheets 18 Constslldalèd Cash flow Statamont 19 Notes lo th8 financlal Btatements 20-32 THE CLINK CHARITY TRUSTEES, OFFICERS AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2020 TrustèOS W Atkinson R Davidson B Ignj8tovlc K McGralh S Mohamm8d J Paxman Ireslgned 10th Dec8mb8r 20201 F Scott D Walker lappolnto¢J 16W March 20211 T W8tes R•gl•lergd Offi¢9 No. 1 London erldge London SE1 98G Chl•f Ex￿ut1V• C Moor8 Company S?¢ret&ry D Whilworth 8ankgrs Coutts & Co 440 Strand London WC2R OQS N8t Wèst 135 Bishopsgate London EC2M 3UR Sollcltorl How8rd Kennedy LLP No 1 London Brsdga London SE19BG Audltor• Moore Kingston Smllh LLP Devonshire House 60 Goswell Road London EC1M 7AD THE CUNK CHARITY REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 Chalnnan's Stst•ment R•offÈndlng rèmmlns one of the rnost pressing challenges facing $o¢iety tortay. Thè fln8ncl81 Impact upon tha UK economy is eslirnated 88 £18.1 billion pèr y6aT an¢J b8ing a major laclor in Increasing the chasrn in society belween the haves and have nots. The Clink delivèrs an int6grated training and support prograrn th81 dr8m8lically redueos re offending by producing gxcellg111 outcomès across our training restaurants, kitchens, g8rden3 and ev8nls projects. Reducing crimè and Improvlng all of our lives is 8t the he8rtofwhatTh8 Cllnk does. Our latest Initiallve Clink Kitchens startin9 in April 2021 In partnershlp with HMPPS underlines th8 tremendous lrnpacl The Cllnk program has had over th818St eleven year5. 1 am d•lSghted to announce that we arg building upon th8 sucees5 of our pilot schomè- th8 innovativg Cllnk Integrated Reh8bilitAlion Programm• ICIRPI and rolling it out acros3 the prison 8$t8t8. Clink Kitchens will b& rolled out to up lo 70 prison kitchens over the next 3 y08rs which ￿11 ¢JramaUcally Sncrease ihe number ol students wo can troln from SOO a yaar to 2,000 a year and In lum 8UPPOrt tham Into (ulltlmo omploymenl and accommodation. By transforming Ihts Iiv0s of prfsoner students (Cllnk graduates) tt not only b•n8llts Iham but also thalr famllles and vic￿MS ol crlm8 and society 8B a whole by reducing crimo rates and encouraglng meaningful employment. Along with ov¥ryon• else 2020 has created challenge$ for Th& Cllnk as a result ol the pandemic. We su8pendod d81iverin9 the tr8inlng at 81101 our sltes on 23rd March. Pl¢)wever, our work in th& communlty with our gradua¢e8 Continued, by supporting them throughout. not only by belng In regular contscl bul 81$0 provlding vital finandal support lo Ihostr who needed It. I would Ilk& to Ih8nk our very generou$ fvnd$rs m8d8 up of gr8nl malntsinlng trusts and phll$nthropic Indivlduols vkno have continued lo support us during the past year as w911 As providing addiu'onal fund3. These 8ddltlonal Incom8 SI￿am3 Th• Cllnk rec8ived ha8 me?nt Thg Cllnk has ended the year in 8 Secure fin8ndal posltlon. l arn very p188sad wllh 8nd proud ol the Senlor Management Te8rn and sialf who have responded In an excg11gni manner In Ih898 uncartaln Ilrnes, shtywln9 flexibillty, innovatlon and resilièncè as w6118S 6taying in contact wllh our P8rtnèr$ 81 HMPPS and, when 8pproprlate, restarted delivering Ir8ining In some of the prisons whèr8 wa havo prol•ct$ brlnglng back our Steff frtym furlough to provide tr8inin9. I would like to thank our Chièf Executive and Finonca Director, Christopher Moor• and Deborah whI￿Orth. lor th•lr hard work, dedication and support thi$ past yaar. They have hJd 8 Very ch8llenglng tirne and h8vg shown tromendous resilience and le8dershlp In the difficult lima. I would al80 like 10 soy a sp8clal th8nk Y1￿ to Jaramy Paxman, who st•PP6d down from his rol• as a trustee in Dècambar 2020. I would also Ilka to thank our partner8 tha Ministry of Justice, Hèr Majasty's Prison and Probat5on Service. Everyone involved has played an integral p8rt in helping us change the rnany rni5conceptions of prisoner rehabilSta￿Qn. We fondly remember Albert Roux OBE, KFO who p8s88d away in January 2021. Albert W8$ our foundlng group thef ambassador and he dedicatad his time and exp8rti$& to The Clink. He was a tru8 Inspira¢KJn to our t88rn and students in tr81nlng and a mgnlor to m• over many y98rs. The Clink has ¢ontinu•d to demonstrate wh8t can be 8chleved when $ociaty collectively eng8g88 to hèlp those who W8llt and deserve 8 so¢ond chance THE CLINK CHARITY REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 Chlof Ex•cutlv•'s Rèport We are proud that alongside our partner. Hsr M8jèsty's Prisorn and Probation SeNic& IHMPPSI where w8 cOn￿n￿& to achiev8 8xlraordinary oulcom&s. mèeting OLtr k&y oblectNe of reducing reoffending. We deliver our corg valugs of compassion, professionalism and integrity in an environment that ¢8n $omatimes seem blèak, with so many daily challenge8, The Clink dèmonstrates what can be achieved when society collectively •ng8gès tts hèlp Ihosa who want and deserve a second chance. Th8 outbreak of the pandemic led us to SY8p•nd d8llv•ry ol tha troining at the end of March and wg pla￿d th¥ malorlty of tsur staff on tha govemment's Job Relenlion Schèmè In ordèr to project thairlobs lor the futUTe. Thi3 brought us many challenges, however. we took th8 daeision not to furlough our fulltlrne support workers who daliv&r our ￿rVIc•S In th8 community as we had over 141 live c8885 in supporting our rec&ntty released Clink GraduBte8 by halplng th8m ra-adjust b8¢k Snlo so¢lety and ansure that they had acMmm¢dation and baslc footj provlslon8. Our Cllnk Graduate5 8tthi$ time suffered job Ioss8s, furlough. non-p8yment of salaries by ernployers 8nd hornolè$sne$s. Wtr rocognls8d that this and the r15k of our graduates returning to crimg, as A rasull we launched the COVID-19 Cllnk Gfaduale Emergency Support Fund on 1st April to provlde emer98ncy accommodation, b881¢ prtsvlsions and oth8r e85enllal8 to those in need. Due to the enormous generosity of our lundors and supporters we have raised In axc•ss of £60k. This 18 81$0 bèlng used to 8UPPtsrt thè conlinued releases from p￿sOn of our grBduat88, somè with no accommodallon lo go to. Analy•l8 of Outcom0• In Juna 2020 RB8 E¢onomlcs publlshed 8n Economic Impact Anolysi8 conducted by volunt88r8 whlch was Yo￿￿8d by Pro Bono Economics. The report rèvealed that Tho Cllnk dellvers an oulstandlng return on inv8slment, savln9 th& taxpayers money but also reduced rgoffanding. They found that for every £1 invosied, The ClSnk 59 Ilkely lo gen8fate al le881 £4.80 back to lh8 plson seryl¢e, Govafnment and sociaty In reducad raoffending rot8S as resull ol Ils successful progromm8. The Cllnk ttas invosled over £5m to date of phll8nlhropl¢ donations and grants lo bulld th• trglnlng restaurants and garden8. rh8 raport ¥8tlmates the 8avings of £37rn tts tha taxpayer during The Cllnk'3 tanuro. Th• r8POrt 8lso shows th8t the approach wa have taken 88 a team has boèn abl8 lo dellver a four-fold T¢lum on Inve$tm8nt at a tlm& wh8n reoffendlng rates arg gstimaled to cost tho taxpayer £18.1 bllllon per annum. Wè are looking forward to restartlng the d¢liv8ry of ITainlng at all our sile8 post May when rèstaurants lal th• time of writing) ara allowed to roopen. Th8 CIRP pro9ramm& dellvers the lollowing.. Pufpo8• and obleetlv•s The prison*rs at each of Th6 Cllnk prolacts work 8 40-hour week whilst working towards galning troir Clty & Gullds NVQS in Food Praparation, Food Service, Food Hyglene and Horticultura. Slmulats'ng M profession81 worklng environment. prisoners w￿h 6 10 18 months 011tt81r sentence lert to serve volunteer for the prtsgramme. going through full-tirna tralning in ordar lo ￿ech the ￿qUIred ￿Ve1 to succeed in tholr respective industry. Tralnlng Outside of th8 pandemic Tha Clink tr3ins up to 220 pri$onors a day lo goln thoir Levo18 1 and 2 NVQS in Food Servico, Food Preparation, Food Hygiene and Hortlcuttur8. We also delivèr our own Clink Dlpkjrna that has begn endorsed by Thè Institute of Hospitality. Our sbjdents will bg able to galn this in addltton to their NVQ'3 we arg rolling h out across 811 $￿e6 in 2021. THE CLINK CHARITY REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 Outsid8 of th8 pand&mic our training prograrnmes are deliver8d as follows.. R•$touronts The Clink Charity operates four training restaurants open lo thè publSc to dlne at HMP Hlgh Down, HMP Cardiff, HMP Brixton and HMP Styal. Pri81)ners tr8in to gain experfence and 8chteve their City & Gullds NVQ L6vel 2 In Food Preparation and cookery as wo11 Bs Foo(J and Beverage Service and Fooij Hygiana. Mèmbèrs ol th8 publlc then com8 and dlne wlth us In order lor the prison8rs in training Its galn the experience tha¢ they require. Oellv*ry In Brixlon we launched Clink&Collecl a takèaway lunch s8rvlce for prison staff on duty 8nd also Cllnk@Hom• whlch is a hom9 dolivèry sèrvice of chilled meals delivered to your door11 you Ilve withln 10 mlle3 of HMP Brixton. This way were able to continue lo ddivar tralning to our students getting thern work règdy for when Ih&y are released. Th• Cllnk Gardgn• Tha Clink Gard*ns op•r8t6 at HMP Sènd and HMP Hlgh Down In Surrey and this yèar wè h8vo O￿nad our third Cllnk Gardens al HMP Sty81 lft Ch8shlre. Prlsoners traln to galn experfence and achieve Ihelr Clty & Gullds NVQ L•v812 in Horticulture. The producè Is delivered daily to the restaurants along with free ran98 8998, At HMP Sand dua to th• fact that the trainin9 programme is delivered outdoors wè havè b6an able to continue trainin9 during tho panderni¢ bul with a reduced number of $lud&nts. Th• Cllnk Evonts The Clink Events centr81 producuon tralnlng klt¢hgn at HMP Downvlew Iraitts women prfsoners to produce tho fLwd lor bespoke outsido catering even15 btryond the walls ol the prison And provSde the prlsontrr$, grgduotes and homeless clients in tralnlng wilh the opportunlty to galn 8ddition81 •xpadance In event cat8ring. Cllnk Evenls is 8 nomingled caterer at the Guildhall London. Sl P8uI's Cathedral and frinlty House. Sadly over £8QOk worth ol bookings were canc8118d sue to thg pandamic or moved into 2022. Th• Cllnk Café Sadly wa had to make th• hard decision to close The Clink Cgfè whlch was localgd in Iha heart of March8slèr's dty ¢8ntr8 in Conada Houaa on Cheps¢ow Slrèat Dec*rnber 2020. The Calé was sl8ff•d by Cllnk gr8du8tas and homeless cllents from local ch8rttiès. However du? to pèople worklng from home and the daily h8ad count In Can8d8 Hou¥e golng from 400 to around 10 It wa¥ not 8UStaln8ble 8nymor• without incurrirYJ huge cos¢8. Th• Cllnk Klteh•ns This ¢onc8Pt dellvers City & Guilds training in Food Production within the main prison kitchens to students cooking prisoners, me81s. Following a succ8ssftJl 3 year pilot at HMP Styal, Bristol and Risley we wll ba rolling this project out to up to 70 prisons over the next 3 years wlthln the mAln pr160n kitchens. Upon release thè graduat8s wlll be supportèd In to accommodation and employmant. The studènts prepare meals in o real.lile working environment learn thè skills required to galn their qualif1¢8tions. Each site has a chèl trainer and support worker to help them transition from prison into fulllime employment, find acc£Jrnrnodation and help Ihem readjust back into society. We ran 3 pilot sites at HMP Sty81, HMP Risley and HMP Bristol lor the pa512 years and as of AprS12021 Ipandernic permittlngl we will ba rolllng out th1$ concèpt 16 more pr150n kitchen5 in Engbnd and Wale6 this y8ar and in total 70 over the next 3 y&ars. THE CLINK CHARITY REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 Mentorlng and Support work As rrontione(J 88rfier Thè Clink provides an integrated prograrn involving ntst only fomal tralnlng bul also hèlp and support upon release. W8 meet our graduates al thè gat6 and find them housln9, il requi￿d, and employmgnl. We Iso en8ur8 that they have a bank account, photo ID and 8r8 registered with a doctor. Our mentors are there 2417 for as long as It tak98 lo help thom rèadjust back into society. We currenuy havè 140 livè c8ses In thè communlly and Clink Graduates are still being r8le8sed èvary month r￿UIrIng SLlPPOrt to help. Sadly some ollhem are Still being r•l•aserJ homeless and wg hav8 had to 5t8p In and prtsvlde emergency accommodation. SUPPORT & MENTORING KEY COMMUNITY PANDEMIC RESULTS I I Clink graduates supported in the community 2 1 Clink graduates released 72 3 1 Clink ar•du•t•• r•l••••d htsm•l that r•gulr•d•ccornmod•t¢on l 01 th• Cllnk irndu•t•• r•l••••d. w• contlnu• to •upport 24 @55 5 1 Wh*1 Cilnk ir•du•t•• •r• ¢urr•ntlv dolni b•¢k In th• eomrnunlty.- Full Tlrn• Work 27 R•h•b C•rlns R•tlr•d Un•mploy•d and lo•klna 28 Unknown (?1 C￿A￿lITy Summary 2020 was not tho year we had expected and we hava all had lo adapt and Innovate in line wrth the requlrem8nts 01 our student5 and gr8duates. We ar8 very excited about the roll out of Clink Kllchens during 2021 to another 16 prisons. We have riow started back training In a small way al HMP Brixton and HMP Send and are awaiting confimation from th8 Other prlsons as to a start dale taking into Consideration their individual Covid-19 ￿tuM to work plans and also thè current health ot the Stsff and prisoners 8t Ihal sit8. THE CLINK CHARITY REPORT OF THE TRUSTEes FOR THE YEAR ENDED 31 DECEMBER 2020 Th8 Cllnk 5s in a good position to continue delivering bts obj8CtiV88 and r8 stsrt training at a115it85 once curr8nl restrictions are lifted. We have mad9 good usè of this tim8 to r￿V￿W what we do and strive to ensure that we are as up lo dalo 8s possltlè with re9afds to Ihe content ol our courseB and 8UPPOrt post release. I wouhl like to thank Finlay Scott and the Trustees lor their continuing support, gvidanc8 and dedication towards our work of redudng Teoffending, HMPPS for 811 th81 they bring to our partn&rshlp and our very generous lunders. Thank you. THE CLINK CHARITY REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 STRUCTURE, GOVERNANCE AND MANAGEMENT Gov•rnlng documont The charily is controllod by Its memoiandum and artlcles ol a880¢iation 8fKI Constrtutes a company Ilmited by guarante8 as defined by the Companles Act 2006. Organlsatlonal stru¢tur• Trust•0 Board The Charity Is governed by 8 Board of TnJ8t98s ChBlrad by Flnlay Scott whlch sup&Th5so9 the senlor rnanagemenl team ISMTI and statt headed up by th8 Chlef Executive Officer, Chrisloph8r Moore. The Board of Trus188s maols four limgs e8ch yoar lo set and ov$rs8è th& ¢Jolivery of the Ch8rily's oblactlves. Th6 Board has 8 ¢laar and well.understood gov•rnance Tole, approving the strate9y, annual bud9els and revlewlng the management 8¢counts and cash flow$ on a quarterfy basis. Tho Trustees ensures that risk Is well understood nd managed, 8né that the charity is OPgr8tlng legally and Sn full Compliance with our ¢h8rltable objectives. 8lho5 and values. The Board appoints and d#lÈg8lès the delN8ry ol the strategy and m8nagomant ol th8 opèration of the charfty and Its 8ub5idi8rl8s to the CEO, who in turn appoints and man8988 the SMT. SMT eomprlses th8 CEO. thè Flnance Director, the Oper8tions Director. thg Support and Menloring 0lr8¢tor &nd the Events Director. The SMT m80ts monthly to review in detail 811 aspects of the opèratlons including the training. support and mentorlng of the bonefl¢larieB of th? Charlty aB well gs saleguardln9, h081th and saloty. Th•re are tsvty addlilonal Tru$t•88 comm1tt•è8 that meot ragularly.. Audlt and Rl$k Commltt•t- thls meets with the 8xlem81 auditOTS twl¢e yearty,. on¢0 to rev¢ew tho systems and intemal controls on financial and oovernance issugs and mak& ony rocomm•ndationB to tho Trug¢09 Board wth a second mèèting to rovlaw the draft Annual Roport and Accounts prfor to sèndlng to the Board lor 8pproval and signlng, R•mun•r?tion Cofflmltt•o thi5 reviews and rèeommends to the Trustae Board staff rernunoratlon, including the sa18riès ol the SMT. The Committee takes Into account the responsibilities of the role and tha need lo $01 Comp￿lt￿Ve Balarfas 8g8in81 what Is affordable for th• org8nls8tlon. TruJtè• tralnln9 and Indurtlon Our Trustees hav8 boon carafully select8d from businoss. educatlon, legal. financial, madla, propèrty and buildlng exp8rience. Upon appointment Tnjstees are glven a copy of the Charfty Comrnlssh)n documenl 'The Essential Trustee- What you n88d to know- and a5k8d to read il. They also spand tim8 Wlth the Ch8iman, CEO and SMT to famili8riS0 themselvès wth th& operations ol the Charlty and thè Restsurants io ensur& that they understand the aims bnd the objacllves of thè Charity ara achieved. Rl8k man89oment The Trustee Board is responslble for th• oversight ol the risks facad by thè Charty. Thè Trustee Board and Audlt and Risk Committee regul8rfy review the Ch8rity'S risk position. internal eontrols assessment 8nd compli8rnco with relevant st8tuttsry and finance regulations. Based on Ihe Charit185 Commission's Guidancè 'Charity Reserves.. building reslllenco" the Charity has a risk-managernent process designed to identify thè major risks that could impact on Ihg aims in th8 Charity's Strategic Plan. This process identifies the rnajtsr risks the Charity f8ces, the likelihood ol oc¢urr8nco. the 6ignilican¢¥ of the risk, and any mitigating controls that are in plac8. It also seeks lo id8ntify ally a¢tlons and resources requlred to manage the30 risks further. Prlnclpal rl$ks and un¢•rtalnths From the beginning of the pandemic the Trustee Board met [T￿re regularfy to revi8w how the charity was 8ffeeted by the events as ￿eY developed, this gave the Iru5tees the opportunity to consider the effects of the COVID-19 THE CLINK CHARITY REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 outbreak on the work ol th8 charity and Its fin8nc8s. Th•sg raviews covered income and expenditure forecasts and cash flows. As part of th&se revl&ws the Trustees considered the viability of 811 operallon8 and sadly with ragards to The Clink Calé it W88 d9cid8d to eloso the operations al Canada House in Manchester in December 2020, this w8$ an exlrernely difficult decision to arrive at a$11 had 8xpanded our Iraining from within a prison environrnenl to working with homeless clients in the heart of M8nchoStgr, h¢w$vtrr in thè light of the café's perfomiance since opening it was decided that the charity should focus on its core activities until we are in 8 rnore stable 8conornic environment. Although the chArity had to suspend all operations at the beginning of the p8ndemi¢ It man8ga¢J to rèopèn cèrtaSn op6rAtStsns dudng the period, all income108t from operations w85 In thè m8in offset by a fall In associated expendltur8. Durlng the p8nd8rnlc resources were locussed on worklng wlth our partners at HMPPS to develop the kltchens pilot concept into a programrne Ihat will be rolled out Ovgr tha nèxt thr88 yaars to up to 70 prlson kltchens around England and Wal8s. WO aro following Government and HMPPS guld•lln8s and are planning to return lo training and openbng our restaurants on a 5118 by sile b8sis. Thtr CEO 81$0 malnlalns regular contact with 811 our fundtr$ and 1$ a$sur8d th81 they wlll continu8 lo support the chorfly's programme of tr8inin9 and rn•ntorlng wlth 811 current and future pledges. Du9 to th? generous support of our funders and our p8rtners at HMPPS the charity has conlinyed to bg sheltered from the effects ol the pandemlc and 8t tha tlm& ol signing these accounts our fln$n¢ial po$ltlon rèmalns in a simllar state as when COVID 19 stsrted. The impact of COVID-19 has b06n considered on the charitsblo company's futur6 plans and oporallng and budgeting proc8s￿s, tho effect of the outbreak will eontlnue to b• a rlsk in 2021 unJl thefe is moro Cgrt$lnly about th8 ral$lng ol restriction3 in thg environmant In whlch wa provido our services. Sahguardlng We had an e¥lem81 ¢onsult8nt dellver Safeguarding Tr•lnln9 to all slte based and comrnunlly facing 8t8ft as w911 as full tr8inin9 for ¢ur ntswly appointed Designated S81egu8rdln9 Lead and sit8 based Designatad Salaguardlng Officers +n 2019. W8 h8ve revised and dislribuled new Soleou8rdlno 8nd wh￿StleblOWIng Policies. Plans lor ￿freSher trainin later in the yèar lor all existing and new &taff will b8 reviewed once we are out ol the pandemic and external training b8comes available a98in. W8 now have lull compliance from site and operational level riGht through Ihg organisation rloht up to a DSO on thè board of Iru8tee8. H••lth and Saf•ty Fire, h￿1th & safety, l¢>Jd hyglén• and allergen 8WBr?n$￿ 18 at the core of what Wo do and we have engaged an oxtomal cornpany to audit our process and procèdures at all our prerni$as on an annual basis. In addition local Environmenlal H881th Officers in3P8Ct our pr6mlsas and currently wa have 5 star rallng3 across 811 locatltsns. Our staff ore trained In Em8rgency Flrst Aders in th8 wtsrkpl8ce and also obtain tha followlng qualilkatlon8.' Héalth and Safety (Level 2 or 31, Food Hygiene ILevel 2. 3 or 41 and Mlergens AwArèness (Level 21. 08JECTIVES ANO ACTIVITIES Slgnltlcant actlvltl•• To ensure the success ol th8 programme. The Clink Charity has ¢Jeveloped a ffive-stèp integrated model that could bo applied acr085 morè prisons across the country and to further exp8nd Th8 Cllnk restaurant concopt. The fIV8￿tep model focuses on Recruitment. Training, SupportSng. Ernploymenl 8nd Mtrntoring. This model h8S dramatically reduced Ihe reoffending rates of th0￿ who have been part ofthe tralnlng programme. The Clink employs 40 fulltimg omployees and all of our prisoner facing staff undergo TAQA ITTaining Assessment Quality Assurance) trained to ènsure Ihatthe st&ndard of tralning and 8S58Ssing students is consistent and ol the highest possible qualty. The Cllnk Charity'5 fulltime support work8rs work closely wlth each of the prisoners In Irolning. Upon relgase Ihey hèlp graduates find ernployrnsnt and they mentor thern w8èkly for 6 to 12 rnonths, to hèlp them ￿Integrate back into society. THE CLINK CHARITY REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 Publ1¢ ￿nefit statsment Tha Trustees confirm that thoy have glvèn du8 consl(J&ration to Charity Comrnission published guidance on the operation of the Public Bgn8fit requirament In reL2tSon to the activities ol the ch8ritabl8 company. Flnan¢lal Rgview During 2020 our In￿rne fell sllghlly from £3,SS2,409 In 2019 to £3,294.936, rn0$l of our usual sourcès ol Incom• f•ll dramatically however one of our extremèly 9enèrous lundtsrs allowed us to repurpose some of their re8tricted grant to core purpos88 SO that we could continu8 to support our beneficiarie5 duriny the pandemic. Thè end of year results showed a surplus of £742,74812019 surplus of £170,596), Due to the pandemic our rest8urants, cafè and 8v8nts OP8ratlons all elos6d on 23rd Ma￿h 2020 with v8ry limited trading thereafter lor the r881 of 2020 which rn88nt th81 our operations inwm9 fall from £1,684,289 in 2019 to £392,252 in 2020. how¢v6r due to the nature of our opera￿.on5 th? fall in Income resulted imrnedi8lely in 8 IAII In r8lal8d &xp6nses. Over the years 3ubst8nll81108ns have accumulated in thts accounts of th8 $ubsldl@rl8s, these loan6 have bullt up as thè subsidiaries have delivered the ehadlable objoclives of the parent ¢h8rfty 4nd the trustses. havlng review the loans, have decidad that il was in the ¢h8rlty's b*st intorest to forgive them. We wer8 vèry gratèful lo our generous $upportars who contSnued to donato to support our work so that during the pond8rnic w8 were ablè tts eontlnue to asBlSt our b8n8ficiaries. w8 were also very gratgful for thè support from our partners HMPPS. The Charity r8Is•d £79,33812019.' £204, 1911 by way ol general donations. Ourlng th8 pandemlc these funds wera used lo help the b8naficlar16s wlth thelT d8y-lts-d8y nèods Includlng help with finding and poylng lor accornmodation, unllom and day to day living èxpènses. Wa are al80 extr•m•ly grateful th81 w• hava been able to furfough many ol our exlrern¥ly sklll•d worklorce under the Job R8tention Schome, thls means that when wa open our tr8inlng opargtions these skills will ba able to pick up ond 918rt to train imm8di818ly without u$ having to recruit and rétrain new staff. Althou9h durlng 2020 we dld rÈc¥lv& £651,273 from tho furlough sehèmo we did have lo mak8 some very hard dècisions and sadly 50mo ol OUT Staff wer mado r8dund8nt. Wa continuo to u$& tho sch8me in 2021 and Ils floxlbllily allowg US to brtng staff back to work a8 and when thèy ar6 needed. Durin9 2020 we worked wlth our p8rtnars 8t HMPPS we 8ra very excited about rolllng out tho now prlson kStchon$ project b88ed on the pilot schgme that we h8ve been running sincè 2016. Rgserv•• Pollcy Tha Trust8es' obl•ctlve Is to h8v• a cash reserv8 that Is suffldonl for the Charity lo fuMI Ils obllgalkjns In response to any major unexp8clèd financi81 situation. The SMT tightly control 8XP8nditure and set fully costed and realistlc budgats, management accounts and cash fiows are rèviewad by the SMT monthly 8nd by the Board quartèrly. In 8ddition the Board has a policy regarding ntrw projects and will never ernbark on a new proje¢l wilhoul having first built UP suffielont funds to covar the c8pltal and any IniU81 runnlng c06t3. Tha reserve t8rget lovel of £175,000 was sel in 2016 and following 8 reviow In Nov8mbar 2019 rgmain5 at this level. Al th6 ènd 012020 lh8 GfOUP had to181 reseryes of £1.670,72312019'.£972,9751 ol whi¢h £516,77512019'.£443,2391 represents restricted funds. Unrestricted funds held totals £1.153.947 12019.. £484,736) of whlch £658, 166 is invested within fixed assels12019.. £820,813- unrestricted funds fully invested within fixed asselsl and as Such the charity has Iree r056rvos of £495,781 Ishorttall to largat level of r888TV8S in 2019 was £301,0771.Thi5 ¢hangè in our reserves position 1$ onlirely due to thts generous repurposing of one of our restricted gr8nts and allow5 U8 to p18n safely for opening at pace dictatèd by the govgmrnènt and our partnèrs at HMPPS. Fund Rals5ng mgthods and pro¢•sses Tha Charbty has always depended on ihg g8neTOSlty and support of various grant givin9 trusts, foundation¥. companies 8nd philanthropic individuals to build and fund th8 projects. 10 THE CLINK CHARITY REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 No ext8mal fund raisars are vsed. The CEO and Finance Director had 8 5UCC8ssful yaar ralsing funds for speclflc proleots and core c03ts. Once a sp8cific projact is idantified a proposal is prepared and sent to the organisalion Iu8u8lly grant giving trusts) which has expressed an interest. In thè c8$è of capital projects. no work Is started until all fundlng has been secured and th9 Board has approv&(l it. Onc& a grant has been r•egfv8d, w& wlth work w*lh the donor to ensurg that thèy hav& all tho Inforniatlon that they raqulra to monitor the imp8Ct that their donètlon hag achleved, this usualty m88ns 8 report thAt is raquire¢J under thelr grant glving due dlllgence procedur8S together with regular updates that may concem the charfty In goneral or thelr donats.on In particular. During thi8 year th8 CEO has remained in close coniacl with all ol our gèngrous partners kaeplng them updated wrth the work of th8 charity during the pandemic and 8tr95$ing th• Importanc6 of their valuabl8 contribution to our Wofk. n 2020 the Charity r8kg8d Z79,33812019 £204,191) Irorn indlvlJu¥l donallons and £1,451,33312019 £768,480) from Gr8nts. The Cllnk Is now an ostAbllsh8d Ch8dty and has a loyal group of lund•rs and charitable Iru$t8 all of whom Carry out periodic due dllig&nce ch8cks. The Board is ¢onfid&nt that the conts'nuing c8pi181 that is r•qulr8d lo roll c4Jl current and future pl8n8 wlll be lundad by thern. There 8re a gra8t many klnd indi¥KJual$ who hav0 donaled to our work eith8r directly. vla CAF, Charfties, Tru8t, Stèwar(Jshlp or online via Just Giving, Donor, Virgin Money Glving and we are extremely gratgful lor Iholr gen8roslty and 5UPPOrt. W8 would al80 liktr lo Ih8nk all ol the Charitable TN$l$ and Corporate Funders that h8Vè SUPPOrted our work this year, w¥ hlghllght here the dOna￿OnS ol those who have klndly eontrlbuted £2,000 or mor¥ dutlng 2020.. Antonio C8rluccio Foundation 8orrow8 Charitable Tru$t City BridgeTfUSt El Group George and Ro$i& Pack Green and Fortune Ltd Office Of thè Police and Crima Commisslonor lor Surr8y Sandy & Sue Arbuthnot Savoy Educallon Trust Sirnon Glbson Charitable Trust Stiftung Auxilium Foundation The Be8trice Lalng Trust The Cleopatra Trust The David & Ruth Lewis Fomily Ch8ri18bl• Trust The Fishrnongèrs. Company Thg Goldsmiths Cornp8ny The Innttold8rs' Charitable Foundation Tha Jtjlia & Hans Rausing Tru3t The Mark L￿nard Tru81 Thè Rank Foundation The SheriNs' 8nd Recorder's Fund The Worshipful Company of Cooks Virars Relief Fund Wllliarn 8rak• Charitable Tru$t The work of the charlty nol only changes Iiv8s of the Clink gr8duet•s but also thèir familles and friends as well a3 m8king society 8 $8f8r place and uttimatèly savlng the toxpayars money. THE CLINK CHARITY REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 statement of Truste85' r•sponslbllltl•s. The trustees are responsible for prgpgring the Tiustèes, Report and the financlal statements in accordance wlth applicabje 18w and United Klngdom Accounting Standards (United Kingdom Gonerally Accepted Accounting Pr8¢tic&l. Cornp8ny18w re9uirès tfU81•8s to prfrpare financial statements tor 98¢h fln8nclal year whlch glve a true and fair view of the stale of the affairs tsf thtr charitable cornpany and th8 group and of th8 income and 8xpendltur6 of the charitabl8 group for that perkjd. In preparing the$¥ Ilnan¢l81 $lat8m&nts, the trustees are required to., selec¢ $uit8ble accounting policies and then apply them con¥i8tofiUy', observe the m8thod3 and prin¢iplg$ in Charfties SORP.. m8ke judgèmanls and estimat88 that arg r8?8onabb And prudont., stale whe¢h8r applicable UK Accounting St8nd8rds h4v8 bè•n lollowed, subject to any m8lerl81 departur•$ dis¢losed and 8xp18ined in th? financial statemènts., prepare the finan¢i81 statements on the going concem be$1$ unl8ss ￿ is inappropri8ie to presum& that the Charity wlll remaln In bu$ln•$• Thg trusleos are responslble lor k&aplng proper accounting racords that dlsclose with rÈ8sonablg accuracy at any time the finanelal posillon of the charltable company and en8b10 thèm to onsure that the fin8nclal st8tam8nts comply wlth the Comp8nle8 Act 2006 and the Charitiès Act 2011, the Charlty IA¢counts and Report) Regulations 2008 and (he provi8lons ol th8 trust deed. Thay are also responsi￿? for safeguarding tho 8ssats ol the charitable cofflpany and th• group and hgn¢è for taking reasonable stèps lor (he prevention and d6t8cllon olfraud and olher irregularities. In as lar as the trust80$ are ow8re'. th&r8 is no relevant audit infomalion ol which the ¢harltabla cornpany'8 audllor 18 unawaro., and th8 trustees havè takon all 8l8PS that that they ovghl to have taken to make themselv8$ aware of any of any r818vanl audit inlormaUon and lo è$tsbllsh that the 8uditor Is aware ol that Inlormatlon. On behall ol tha Board Flnlay S¢ott- TruBtee Da¢e'. 12 **THE CLINK CHARITY** **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF THE CLINK CHARITY FOR THE YEAR ENDED 31 DECEMBER 2020** ## **Opinion** We have audited the financial statements of The Clink Charity (the ’charitable company’) for the year ended 31 December 2020 which comprise the Consolidated Statement of Financial Activities (including summary Income and Expenditure Account), the Consolidated and Parent Charitable Company Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, including a summary of 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 December 2020 and of the group’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; - have been prepared in accordance with the requirements of the Companies Act 2006. ## **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 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. ## **Emphasis of matter** We draw attention to note 1 of the financial statements which describes the impact of coronavirus on the group and charitable company’s activities. Our opinion is not modified in respect of this matter. ## **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 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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. 13 **THE CLINK CHARITY** **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF THE CLINK CHARITY FOR THE YEAR ENDED 31 DECEMBER 2020** ## **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 strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the strategic report and the directors’ report have 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors’ remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of directors** As explained more fully in the directors’ responsibilities statement set out on page [x], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors 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 financial statements, the directors are responsible for assessing the 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. ## **Auditor’s responsibilities for the audit of the financial statements** 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. ## **Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud** The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company. 14 **THE CLINK CHARITY** **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF THE CLINK CHARITY FOR THE YEAR ENDED 31 DECEMBER 2020** Our approach was as follows: - We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation. - We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance. - We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance. - We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations. - Based on this understanding, we designed specific appropriate audit procedures to identify instances of noncompliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required. As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company’s internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 15 **THE CLINK CHARITY** **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF THE CLINK CHARITY FOR THE YEAR ENDED 31 DECEMBER 2020** ## **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, in respect of the consolidated financial statements, to the charity’s trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees those matters which 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 any party other than the charitable company, the charitable company’s members, as a body, and the charity’s trustees, as a body, for our audit work, for this report, or for the opinion we have formed. James Cross (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor 21 July 2021 Devonshire House 60 Goswell Road London EC1M 7AD Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006. 16 ## **THE CLINK CHARITY** ## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020** **----- Start of picture text -----**
INCOME AND EXPENDITURE Unrestricted Restricted Total Total
Note Funds Funds 2020 2019
£ £ £ £
Income
Income from raising funds 2 1,161,072 436,333 1,597,405 1,052,694
Income from charitable activities 5 1,043,369 - 1,043,369 2,497,619
Government CJRS Grant income 651,273 - 651,273 -
Income from investments 4 2,889 - 2,889 2,096
Total income 2,858,603 436,333 3,294,936 3,552,409
Expenditure
Expenditure on raising funds 6 37,373 - 37,373 47,866
Expenditure on Charitable Activities
Primary purpose trading, training and mentoring 6 2,068,773 327,271 2,396,044 3,231,900
Other charitable expenditure 6 83,245 35,526 118,771 102,047
Total expenditure 6 2,189,391 362,797 2,552,188 3,381,813
Net income for the year 669,212 73,536 742,748 170,596
Gross transfers between funds 13 - - - -
Net movements in funds 669,212 73,536 742,748 170,596
Funds brought forward 484,736 443,239 927,975 757,379
Funds carried forward 1,153,948 516,775 1,670,723 927,975
**----- End of picture text -----**
All amounts derive from continuing activities. The charitable company has no recognised gains or losses other than the net income for the year. The accompanying notes form part of these financial statements. 17 ## **THE CLINK CHARITY** ## **CONSOLIDATED AND CHARITY BALANCE SHEETS FOR THE YEAR ENDED 31 DECEMBER 2020** **----- Start of picture text -----**
Group Charity
2020 2019 2020 2019
Note £ £ £ £
Fixed assets
Fixed Assets 8 658,166 820,813 - -
Investments 9 - - 2 2
658,166 820,813 2 2
Current assets
Stock 66,718 81,285 - -
Debtors 10 151,038 144,334 4,069 691,998
Cash at bank 1,897,020 2,223,629 1,867,817 2,189,297
2,114,776 2,449,248 1,871,886 2,881,295
Creditors: amounts falling due within
one year 11 (892,219) (2,132,086) (576,516) (1,728,448)
Net current assets 1,222,557 317,162 1,295,370 1,152,847
Creditors: amounts falling due within
more than one year 12 (210,000) (210,000) (210,000) (210,000)
Net assets 1,670,723 927,975 1,085,372 942,849
Funds 13
Unrestricted funds 1,153,948 484,736 568,597 499,610
Restricted funds 516,775 443,239 516,775 443,239
1,670,723 927,975 1,085,372 942,849
**----- End of picture text -----**
The deficit for the financial year dealt with in the financial statements of the parent charity totalled £563,267 (2019: £479,672) These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies. On behalf of the Board F T K Scott - Trustee Date: June 202122 Company registration number: 07157540 18 THE CLINK CHAR CONSOLIDATED CASHFLOW STATEMENT FOR THE YEAR ENDEO 31 DECEMBER 2020 Not• 2020 2019 Co•h flow$ from 0￿ratIng actlvltl••'. N•t ca•h lu8￿ Inl I provldod by op•ratlnq a¢tlvttl•• 16 1254.7591 1.990,586 Cash flowo from Inv••tSng *ctbvltI￿'. Intarèst r6c8ivable Pur¢h889 of property, plant and •qulpm•nt 2.156 174.0061 680 121.6221 N•¢ ca•h lu••d Inl Invo#tlng a¢tlvltl•• 171,8501 120,942} Ch•ng0 In c•ih and ca8h •qulval•nl• In th• roportlng podod 1326,6091 1,969.044 CA8h and cash equivalents 8t the boglnnlng of the ieporting pertod 2,223,629 253,985 Cash and ca•h •qulval•nt• at th• •nd of th• r•portlng pgrlod 1,897,020 2,223.629 An•ly•ls of Ca¥h 4nd Cash equlval•n¢• 2020 2019 Cash at bank 1.897,020 2,223.629 Totsl cash and c••h gqulval•nts 1.897.020 2,223,629 Analy¥lJ gf Chang•8 In debt 1 Jan 2020 Ca•hflow• 31 Dec 2020 CAgh at bank 2,223.629 1326.6091 1,697,020 Loan5 falling due within on8 yèar Loans f811ing dug after more than on• yaar 2,223.629 1326,6091 1,897,020 19 THE CLINK CHARIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 1 ACCOUNTING POLICIES Accountlng Con￿￿¢10n The financial stalernents are prepared in accordanee w￿h tha Flnandal Reportlng Standard applicable in the UK and Republic of Ireland IFRS 1021. The charitable company Is a public benefit entity for the purpos& of FRS102 and therefore the charfty and group's financial stataments have been prepared in accordance with Sl8tamenl ol Recommènded Practice applicable to charities preparing their accounts in accordance with the Financial Reportlng Standard applicable in th8 UK And Rapubllc or Ireland (the FRS 102 Chariligs SORPI. tha Comp8nlas Act 2006 and thg Charrtl85 Act 2011. The flnanci81 slatoments have been prep8red on 8 90in9 ¢owm bas1$ whlch assumes the charltable group will conllnua Sn operational existence for the forèsè88blè ft*ture. Th& trust8ès h8ve assessed whethw the US8 Of the 90ing concern basls Is appropriate and have considered pos$lbl6 events or conditions that rnighl cbg1819nificant doubt on the abilily of the ch8rit8ble company to contlnu8 as a going conc8m.The Charitab19 group has been significantly impacted by the Covid-19 p8nd0mie with Restaurant 8nd Cafe rern81ning clos8d lor a larg8 part of the year. In respon$9 th8 Chartty a¢ces$8d the Govgrnmenl's furlough scherne and is ltsoklng forward to reopening as r&slricllons are lifted. The trustees havg consid8r8d the impact of COVID-19 on thg charflable group's lutura plans and operollng and budoallng proc6SS8S.' these ￿vIewS tt8va cov8r6d Income and xpondlturo forecasts and cash lows for 2021 and also 2022. B8804 on thèse forecasts and after mBking enquirie3 Ihe Irust8es have concluded th81 thafo is a f•asonable expectation that the Charitab￿ group has adequate regourcès to meet its liabllilie5 a$ thay fall due for a pericxy of al 18aSt twalve months from the date of approval of these financi81 $18t8mènts. 8**1• ol ¢•nAoldlatlon Th&5e financial slalernonts consolSdato Ihg results of thè charitable company and Its wholly owned subsidi8rias The Clink Restaurant Company Llmit8d, Clink Trading Limited and The Cllnk C8f9 Charity. A separat8 st8lement of finan¢i81 actlvltles Is not prgs8nl•d for the charity its81f as It has taken advantag• ol the exemptions afforded by section 408 of the Comp8ni8s Act 2006. Income All income is induded in th8 Statement ol Fin8nclal Activities whon tha chartty l¥ legally 8ntltled to the incorne 8nd the amount can bè quantkfied with r•ason8ble accufa¢y. Expendllure Expenditure is accounted for on an accruals ba$is and has been d888ifi8d under headlngs that aggr8gat8 all costs related lo the category. Where costs cannol be directly altributed to partloular headings they have been 8IIoc8led to activilles on 8 b8sls consistenl wlth the use ol rtrsouf¢￿. Tanglblo flxed a$sels D&preciation is al tho lollowlng annu81 r8t8s to wrile off each osset over Ils 8stlm8ted useful life.. 10% per #nflum 10% per annum 10% per annum 10% pgr 8nnum Per annum Leasehold Plant and machinery FlxtUTes and fittings Motor vehidg$ Comput8r 8qulpment THE CLINK CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED) 1 ACCOUNTING POLICIES {Contlnu•dl Sto¢ks Stocks are valued 81 the lower of cost and net realisable value. after maklng due allowance for obsolete and slow movinq items. Flnancial in8trumont¥ The company has elected lo apply the provisions of Section 11 '8asic Financial Inslrumenls, and Soction 12'0th8r Financial 1nstrumenls188U85' of FRS102 to 811 1¢$ financial inslnjmenls. Basic finan¢lal as6•ts Basic linanci818ssels, whlch indude tr8de and other recèivable8 and cash ant1 bank balances, arg Inlllally maasured 8t the amount ro¢9ivable and subsequently adlu8t8d for any Impalrmenl or olhgr 8885¢ Ilnanclal Ilabllbtl•8 Basic financial liabilities. including trade and other credllors, bank loans, loans from fellow group companies, are initially measured at th& amount payable and subs8quonlly adlustad for any chang8s in P•n8lon c08t8 and othor poit-r¢tlrom•nt b•neflts The group opgrates a dglined contribution pension scheme. Contributions payable lo the pension scheme are charged lo the Statement of Flnancl81 Activities in lh8 period to which they relate. Taxatlon The ch8rity Is exempl from ¢orpo)ration tox on ils charitable aclivllles. Fund accountlng Unrestrict•d funds can be used In accordance wllh the charltoble oblectlve8 al the dls¢rgth)n of the Iruslees. Reslricled fund$ only be used for particular restricted purposes wthin the objects ol the charlty. Reslricliong 8rise whan spe¢lfi8d by the donor OT when funds are raised for partlcular rgstrided purposes. Further explanation of the nature and purpose of each ftjnd is included In the notes to the flnancl81 $t8t6menls. Critical a¢¢ountlng estimat•$ and area8 of judgèmont In preparing financial slalemenls il is necessary lo make certain judgements, eslimales and assumptions Ih818ffect the amount8 rg¢09nised in the financial statgmenls. In the view of the trustees In applying the accounlng pollcies adopted, no Judgements were requlred th81 have a significant affect on the amounts recognised in the financ181 statements nor do any e81imal8s or assumptions mod8 carry a significant risk of material adjustmant in th8 next financial yoar. 21 THE CUNK CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 ICONTINUEDI 2 VOLUNTARY INCOME Unr•8tr1ct•d R•6trl¢tod 2020 2019 Donatk)ns Glfl ald Gr8nts 79.338 4,038 1,015,000 79.338 4.038 1,451.333 204,191 7,687 768,480 436,333 1,098,370 436,333 1,534,70 980,358 Of total voluntary Incorna reported above. £1,087.738 are 8ttrfbutab￿ to unre8lrlctsd funds12019.. £382.2141 and £446.971 attributoble lo re$lrlcted fund812019.. £670.4801 Gran15 included In Ihe abovo are as f￿th￿.. 2020 Unr••¢rl¢t•d R•8trlct•d 2020 2019 Rauslng Foundatbn The Innhold8rs' Chadlabla Foundatlon Rank Foundauon Slillung Auxilium- porti￿4$ The Worshlplul ¢oryany of Cooks Clly Brldge Trust S8voy Education Tfust Sandy & Sue Arbuthnot The Fi$hmongers' Cornpany 80olrice Lang Art8mis Inveslmenl Manwmont Le%￿8 Famlly TNSI Ba￿h￿M Found8tion Antonio Cgrluccio FoundatK)n Goldman Sach5 Goldsmiths PCC RR Grant fundiny The Cllnk Re5tBuranl Gibson Charitable INSt Cardiff Borrows Chaiitable Trust COVID19 Shoriff & Recorcler5 CQVID 19 M8rk LgonHrd Tru?t COVID 19 Other small gran18 1.0ty),000 100.000 31.500 1.100,000 31,500 350,000 30,000 30,000 83.333 40.1]00 17,SW 30,OL)D 50,000 38.000 10.000 83.333 40,000 17.500 30,000 so,000 38.000 10,000 28,000 35,000 30,000 50.000 78.480 40.000 12.000 10.000 24,000 30,000 15,000 20,000 20,000 15,000 ts,000 s.000 5.000 2.000 1,000 3.000 s,000 5,000 2,000 1.000 3.000 6,000 Total Gr4nt In¢oM• 1,015,000 436,333 1,451,333 76B.480 2019 Totsl Grant In¢om• 98.000 670,480 768,480 3 OTHER FUNDIiAJSING ACTIVITIES 2020 2019 Fundralsing events 82,696 72,J36 62.696 72,338 22 E CLINKCHAR NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 ICONTINUEDI 4 INVESTMENT INCOME 2020 2019 Rentsl Irwrne Interest r•c•ivable 733 2.156 1.416 680 Inve8lm8nt Income tolallirrfj £2.889 are 8ttribut8ble to unro$1tr1¢ted funds12019.. £2,098) INCOME FROM CHARITABLE ACTIVITIES 2020 2019 Incomfj from rè$tauranl 8ak88 Inwm8 from Ir8lnlng reslaurants- tr41nlng Ineomo Incom8 from 8venl8 CBIe￿n9- 8vents incom0 Incorne from Café sale$- ¢afO income Other charltable Income. other Incomo 222.226 651.117 107.650 25.018 37.3S8 999,537 813,330 567,011 106.330 11.411 1.043,3B9 2,497,619 In¢•rnln9 rwour¢a$ from charttablo a¢llvMo81o1olllng £1,043,369 are attrfbutBble to unr•old¢lod fund$12019.. £2,497.6191 ANALY515 OF EXPENDITURE Staff Dlr•¢t ¢o•ts Support 2020 2020 INot• 71 (Mote 681 Exp•ndlturn on rolilny funds.. Expenditure on r8lslng donauens 14.705 17,713 4.956 37,373 Chèrltablo gctlvltl••- Ge￿181 chanlabl8 activ￿•8 COVID19 Support Ro$iauranl operallon. tralnlng •nd montorfng Evenl$ opèrallon, tralnlng and meDiorfng Cafe operation, Ir8inlno and mentoring 82.263 20,982 83.24S 35,526 1,874,143 411,398 110,503 35.526 198.343 58.841 12.999 1,254,891 263,691 72,928 422,U¥J8 88,866 24,576 Tot•1 •xp•ndiiiir• 1.868,478 321.422 582,288 2,552,188 Tot81 gxpendilure reported above 55 eompri$ed of £2,165,585 attrtbu10bl• to unr88trfct8d fuThJs12019.. £3,069,37318nd £41e.984 attrlbut8ble to rbstricled fund812019.. £312,511) stsff Costs INote 71 Dlrgct ¢osts Support ¢oot• (Nots Sal Tot41 2019 2018 Exp8ndlture on ro18lng funds.. Expenditure on r8i5ing donalK>ns 18.218 28,3e4 5.284 47.886 Exp•ndltur8 on othor Ir•dlng adl¥Stlo•'. Generdl tha￿table 8Ct4vties Reslautsnl operallon, tr8inin9 and mentorfng Ev&nl$ Op&￿tIOn, tr8lnln9 and m&nlorfng CBfe Dperallon, tralnlng and moniorfng 80.625 1,450.667 318,298 110.860 21.422 477.457 103.898 36,117 102.047 2.367.857 669.238 194.806 439,733 247.242 47.82B Totsl •xp•ndfjturo 1,076,868 781.168 643.977 3.381,813 THE LINK CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 310ECEMBER 2020 ICONTINUEDI AnJlysl8 of Support Costs Total 2020 Total 2019 General expgn5eg Informats'on technology & Computor Costs Ma￿￿eting & Webslte costs Insuranc8 Bank charges Depreci8tlon Irrocoverable VAT Governance Costs16bl 227.130 38.267 7.527 30,621 500 167,892 327.72S 32,504 17.42B 26.677 265 172.738 3.354 63,286 90,351 562.288 643,977 GO￿rnan¢¥ costi Total 2020 Tot81 2019 Trustees Expense5 Audit lees111 Legal & professional fees Other professSonal lee5 77 28,450 61,509 315 31,099 27.955 3,648 90,351 63,286 Total 2020 Total 2019 111 Audlt fo￿ analy•l• Audil f8es- Current ygpr Audit fees- prtor y88r under e¢¢ruo1 Non.audht $gNices 21,505 555 6.390 23,841 1.693 5.565 28.450 31.099 24 NOTES TO YHE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 ICONTINUEDI 7 STAFF COSTS 2020 2019 W8ge8 8nd S8l8rfes Soclgl Security contrfbutkjr POnSK￿ contributions 1.473,347 1,890,881 126.668 151.312 6e.463 134.475 1,668,478 1,976,668 Thè av•r89• numbar olemph￿•S in the ye•r w88 5912019- 581 $18ff costs gllw8t•d Ylithln oxpendlturo 85.. 2020 2019 Expendllufe on ral¥lng fvnd8 14,705 16,218 1.653,773 1,960.450 1.866A78 1,978,668 $18ff w818 shown above ￿ IneJu&fve of.. EM￿0YeS redundancy and narw)Iraclu8118rnilnallon poym8nts 01 £3,06912019.. £4.0571 w8r8 made durlng Ihe ￿er. Comp8n881kn for IoJ5 of ofnc6 ofENIL12019.. £14.8751 w8$ Incuff6d and induded in li9ur•$ 8bo¥e. Tho Director and lonlor managenenl ts8m oro considered to bo K•y M8nagern8nt P•rnonn•l ¢1 tha chorhty and l¢Jthl remunerallon p•id 10 KMP durtng Ihe y••r wa8 t326,11112019.. £346,856). Ernployo81 pald ovar £60.fM)O fo11 Into the lollowlnq ￿nd1.. 2020 2019 £90,0￿. £100.0 £60,000- £70.000 Penslon wnlribuilons lor Ihe highor p8id em￿0ye•S •mounleO to £35,36112019., É62,7541 during the year. No Trustées were paid any r8muneralion during the currenl or prev￿8 ye8r. Twsteo$ wore roimiKJrned trxwn886 iot4lllng £7712019.. £1611. 25 NOTES TO THE FINA14CIAL STATEMENTS FOR THE Y&4R ENDED 31 DECEMBER 2020 ICOIITINUEDI TANGIBLE FLXED ASSETS IGROUPI L•affs•hold Proporty Plant a Ma¢hln•ry Flxtur•q & FitllngB Offl¢• Equlpmont Vphl¢l•8 Total Colt Al l Jgnuary 2020 Addilkjns As$81 category recla$8￿¢$ti0n Di5P05als 79,356 582.745 74.006 9.789 158.7271 924.551 49.704 39.188 1,875.544 74.008 19,7891 132.9371 110,8201 13741 1102.6581 At 310ocomb8r 2020 79,35e 607.813 881.82S 39,084 38,814 1.646.892 Doprecletlon Al 1 January 2020 Chorge for yÈ8r A688t category rnd•$$Wtcalion 39.678 7.936 262,087 60,781 510,506 88,182 16,887 3.909 25,S73 854,731 167.892 979 614 19791 126,6XIS1 Dlsptrs815 11741 17,4321 133,8971 Al 31 Dec8mb•r2020 47.814 324,401 S70,804 20,622 25.225 988.728 N•t 8ook Valu• At 31 O•G•fflb•r 2020 283 352 311,021 At 310oc•mb•r 2019 39,678 320.658 414,045 32,817 13,615 820.813 FIXÉD ASSET INVESTMENTS The Cllnk Ch8dty owny the ol lh8 share capllal ol Th8 Cllnk Tradlw Llmiièd, 8 company reg151ered in England and W81és (company number 9926424, reglslered officè 1 London Brldgo. LO￿on SE198GI. The C11nk Tradlng Company OP8rale* the eveni$ catedng In fumimgnt of the ch8rfVs thNrtt•bia purpose. The Cllnk Ch8dty also own8 the oflh8 sh8r6 caplial of Thg Cllnk Restsuranl Compgny Limlled, a compuny rog18ter8d in Engl8n¢J and Wale8 (company nurnber 7092125. regisler•d offlc8 1 London Bridge, London SEI 9BGII. Th8 Cllnk Rosiaur8nl Company op8ral4J Ihe r88lauranls in fuifilmènl ef ihe chBriils ch8dlable purpox. The Cllnk ChBrlty18 sole member of The Clink Café Charfty. 8 charllBble incorporated org8n1$811on"CIO" Icharlty number 1180942 comp8ny number CE015766. règl8leF office 1 london Brbdg8, London SE1 gBGI which operate8 8 c81é In cenlral M8nchoslw. Th• Cllnk C81é Charity opernt8s th8 tsfo In fulfilmenl of ihe choriV8 charts￿8 Pu￿0*￿. The Clhk Ch8rlty 8180 own5 lh8 who* of the shoré rApltal ofthe foltowlng domianl subsId￿rt￿$ Entlty Nam• The Clink Bpkèry Ltd The Clink Café Ltd Thè Clink College Ltd The Clink Evtnls Ltd The Clink Gorden8 Ltd The Clink Training Ltd Thè Clink Krtch8ns Ltd Thé Clink and Collett Lld Tho Cllnk al Home Lttl Company Reglstratlon No. 121e1670 12710775 12704773 12161627 12704769 12161764 12165242 12711813 13161527 100% whdly owned subs￿Idry Idomanll 100% whdly tswn8d subsidiary Idommanll lo￿ wholly owned 8ubsidlary Idorrrnanii 100% whelly owned $ub$idk8ry IdLYFm8DtI 100% wholly ovmed subsidiBry Idorrmanll 100% whdly owned subsidiary Idorm)anll 100% thdly owned 8ub51dlary Idorrrnanll 1QM)% Owned sub8ldi8ry (dorttiioDII 100% vthdly owned sub$kl18ry Idorrmonll NOTES TO ThE FINA14CIAL STATEMENTS FOR THE YE￿ ENDED 31 DECEMBER 2020 ICONTINUEOI 9 FIXED ASSET INVESTMENTS ICONTINUEDI All act￿11￿$ hgve been con¥olidBl8d in th8 Stat8m8nt of F5n8r￿LI1 Aclfvttig5 on 8 Ilna by Ilna b8118. A summary olthe ffjsult6 of the $ub$idiary art Sho￿ bobw. R••taurnnt 2020 Trndlng 2020 Café 2020 2019 2019 2019 Turrnwr Co61 of$altrÈ profft 1,957.372 2.321.491 1655 379 886,112 322,￿3 849.681 $42.302 107.359 110.502 149,819 156689 18,8701 712.608 43,041 24.S75 Adminhlrdlive 8Np8ns88 665 $65 47.043 750 923 184,8111 155,9891 2.314 151,0981 144.0771 Olher oper8lino Income Op•f•tlng IloB%Vprofit 84,401 23.636 S5.9891 2,314 151,0901 144.0771 Intèresi r8c•ivabl8 Interest pgyable Ex¢gpiional incom8 602 142.8431 17,2121 13.0171 1,067,216 168,100 93.387 IL••¥yPrt+flt on ordlmry Kllvttl 1,151,617 118,4051 112,111 14,0981 42,289 147.0941 AsBelB 784,607 814.832 12SS.5081 11,437.3491 147,598 197,925 186,YOI (248,9781 3,206 eo.526 1107,8201 529,099 1822.S171 11,068 161,OS31 14,805 147.0941 10 DEBTORS OTOUP 2020 Chirfty 2020 2019 2D19 Tr•dtr deblo Olher deblors Prep8yments & Acrxued Incomè Oue from $ubJldlary undwt8khq• 83.195 63.371 4,472 118.752 659 24,923 3,380 3S.757 2,973 652.659 151,038 144.334 4,069 601,998 27 THE CLINK CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 ICONTINUEDI 11 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Group 2020 Charlty 2020 2019 2019 Trad8 trèdSlofs Other creditors Accruals Deferred Inc￿￿* ToX#t￿ll and soclal securfty 25,878 41.242 59,457 628,844 136,798 79.943 37.265 135.658 1,734,995 144,225 886 1,003 10,837 559,500 4.290 1,932 1,152 26,736 1,696,630 1.998 892,219 2,132,086 576.516 1.728,448 Th8 dof•rTad income balanco of t559,sc￿{2019'. £46,630) in the charity comprisos Incomè Irom t￿k•1 S818s, fundraising and sponsorship for thè Cllnk 88112020 totalling £9,500 8nd £550,(KJO Cllnk Kitchens Prolect Fundlng from The Julia and Hans Rau91ng Tru$t which is subject lo cert8in malche w88 chargod on tho loan bakqn¢e. During tha year. The Cllnk Cha￿ty prov4d8d gr8n18 of £68,98512019.. £82,6501 to Clink Trodlnq Llmltsd. In¢luded in tha b818nce 8he81 for the charity is balonco of £NIL12019., £18S,8081 due to Clink Trading Umi1Od. Interest ol £NIL12098.. £6.6101 was Charged on thelgan b818nc8. During tho W8r. Th8 Cllnk Charity provid0d grunis of £50,10712019., £43,489) to the Clink Cafo. In¢lud¢d in th8 b81gncg 5hoet for chadly18 balance of £NIL12019.. £100.Q601 due lo th¢ Cllnk Cafe. Interest ol £NIL 12019.. £3,Q171 was charged on Ihe10sn balan¢•. 16 R•¢on¢lll4tlon of not expondltur• to n•t ¢a•h Ilow from OPOTatlnq a¢tlvltl•• N81 incorn8 lor the reportlng perfod Adlu8trn8nts for- Interest r8ceiv8bl$ Oepreciatlon Dispo8&1 of fixed a886ts D8creasè Illncreas81 In 8tock Ilncra8sal in debtors IDecre88¢1 I Inernas8 In credltorB 742,748 170,S96 12,1561 167,892 68,761 14,$67 16,7041 11,239.8671 16801 172.739 7.657 17,9121 187,0471 1,735,233 Net c••h provld•d by op•rnllno •cllvltles 1254,7591 1,990,586 17 Op•r•tlng L•••• ￿mMItm￿n￿ Tho group has thp belosy minimum leqge pwyment8 P8y8b* undor non-G•n(XlIab￿ op8r811n91688e¥ a￿￿ngeM￿nt1 al the f8POrting dale. Group Plant & Ofn¢g Mnchln•ry Equlpmont 202 2020 Chartty Offlc• Equlpm•nt Tol•l Total 2020 2019 2020 2019 Within 8 year to five yèars 13,086 7,634 2,866 5,732 15.952 13.366 15.952 29,318 2,866 5,732 2.866 8.598 20.720 8.598 ZW.JlO 45,270 11,484 31