**Registered number: 07304744 Charity number: 1136964** ## **CHARITYWORKS** **(A company limited by guarantee)** ## **UNAUDITED** **TRUSTEES' REPORT AND FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 AUGUST 2022** **CHARITYWORKS** ## **(A company limited by guarantee)** ## **CONTENTS** ||Page| |---|---| |**Reference and administrative details of the Company, its Trustees and advisers**|1| |**Trustees' report**|2 - 6| |**Independent examiner's report**|7 - 8| |**Statement of financial activities**|9| |**Balance sheet**|10| |**Statement of cash flows**|11| |**Notes to the financial statements**|12 - 23| **CHARITYWORKS** ## **(A company limited by guarantee)** ## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2022** |**Trustees**|Andrew Hall, Chair (appointed 24 September 2021)| |---|---| ||Richard Owusu-Cyrus, Treasurer| ||Robert Mills (resigned 7 September 2022)| ||Rashmi Rungta (resigned 14 November 2022)| ||Ian Wilder (resigned 7 September 2022)| ||Daniel Bishop (appointed 7 September 2022)| ||Amelia Ireland (appointed 7 September 2022)| ||Desmond Pullen (appointed 7 September 2022)| ||Julie Layton (resigned 24 September 2021)| |**Company registered**
**number**
07304744
**Charity registered**
**number**
1136964
**Registered office**
15 Holywell Row
London
EC2A 4JB|| Page 1 ## **CHARITYWORKS** ## **(A company limited by guarantee)** ## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2022** The trustees present the annual report and accounts for the year ended 31 August 2022. The Board of Trustees is satisfied with the performance of the charity during the year, considers that the charity is able to continue its activities during the coming year and that the charity’s assets are adequate to fulfil its obligations. ## **Objectives and activities** ## **a. Objects** The objects of Charityworks are for the public benefit, to advance the education in such charitable ways as the Trustees think fit, in particular, but not exclusively, the provision of training and development programmes for the benefit of the voluntary not-for-profit sector. ## **Vision** A not-for-profit sector recognised for leadership talent, a distinctive collaborative culture and social impact. ## **Mission** - To create a network of leading not-for-profit organisations committed to building capacity through - collaboration. - To promote host organisations as employers of choice - To attract, grow and retain future managers and leaders - To increase the reach, quality and impact of our services and improve the lives of the people then charity - serves ## **Values** - Growing leadership talent in the non-profit sector - A non-profit sector that thrives on innovation and creativity - A healthy working environment where people have fun - A not-for-profit sector driven by people with values and a commitment to the cause ## **b. Activities - Charityworks programmes** Over the last year, Charityworks has run three programmes focused on achieving its objects and delivering public benefit, namely – Graduate trainee programme which has the aim of recruiting, developing and retaining the next generation of social leaders. This programme has run for more than a decade. The 2027 programme which is a paid training programme that prepares people from working class backgrounds for professional, decision-making roles in the grant-giving sector. This was launched by a number of bodies, including Charityworks, in 2017 working together, originally with a 10-year timeline, since reduced to an eightyear programme. The Kickstart programme helping not-for-profit organisations and charities access Government-backed Kickstart job placements for young people on Universal Credit and at risk of long-term youth unemployment. Charityworks has delivered a one-year Kickstart programme which concluded on 31 March 2022. Page 2 **CHARITYWORKS** ## **(A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022** ## **Achievements and performance** ## **a. Main achievements of the Company** The established Charityworks programmes - the trainee scheme and 2027 - have both continued to re-form and reshape following the impacts of the global pandemic. With the onset of the pandemic, the Board agreed with its delivery partner, Koreo, that it was necessary to reduce the target of filling 150 places on the graduate trainee programme to 75. This was achieved in 2020–21 and in 2021–22, 83 places were filled. Having moved all activities to virtual delivery during the pandemic, the recruitment and selection process has continued in that way. However, over the last year it has been possible to return to some training and development sessions to be in person or in hybrid format. This has been well received both by trainees and by employing organisations. Feedback generally on the development programme and on placements has been very positive with few issues arising. For the 2027 programme, the highest number of placements so far was achieved with 27 in total including eight in a sub-cohort for Scotland with all interventions scoring highly. Under the third programme, Kickstart, while 354 placements were agreed with potential employers, a much lower number of 186 was processed by the Department for Work and Pensions (DWP) with 171 starting in a placement. The Charityworks elements of this initiative, delivered by Koreo, appears to have been successful. The trustees will consider a full evaluation report on the programme in the latter part of 2022. The Board will look to identify any learning points from the charity’s involvement in this initiative. Across the year, the Board took further forward the agreed programme of governance improvement flowing from the independent governance review report of 2018–19: • there is now a slightly larger Board with a wider range of skills to enable more effective control and direction of the charity’s affairs. As and when further trustee retirements arise, the opportunity will be taken again to widen the range of skills available to the Board and increase its size slightly further • following a market testing process, arrangements were agreed to transfer the bookkeeping and accounting function (which had been delivered over several years by Koreo) to a separate provider. This will be put in place from September 2022 - Work progressed on data protection and data security through drafting a data sharing agreement - between the charity and Koreo and introducing a data protection policy for the charity - the charity has taken on responsibility for securing professional indemnity and trustee indemnity cover - a programme of mandatory compliance has been compiled and is progressively being addressed. For the first time in its history, the charity engaged contracted support, initially in the form of an interim charity manager for four months who compiled a plan for the governance changes and moved a number of the tasks forward. Interim charity support has since been contracted on a project-by-project basis. The Board will consider whether and what administrative support may be needed and affordable for the future. A significant activity for the Board throughout the spring and summer of 2022 was establishing a new strategic direction for the charity. This was both overdue but also necessary given the significant and enduring changes to the world of work, and particularly in the not-for-profit sector caused by the impact of the Covid-19 pandemic and a very competitive employment market. For the charity, the position continues to change: while the established graduate trainee scheme has every prospect of continuing, the 2027 programme will now conclude in 2025 and the Kickstart initiative has concluded. The Board commissioned focus groups of current and past host organisations for the graduate trainee programme, a series of strategic conversations and formulated an options paper. This was discussed over a period including input from Koreo. The Board was pleased to see that the graduate trainee scheme continues to have a very strong and positive brand and profile. As a result of this, the Board has agreed a strategic direction for 2022-24 that is focused on the graduate trainee programme. Feedback from the focus groups showed that there is a need to consider pricing, value for money, in-person training and development and to ensure that the offer is kept vibrant and relevant for current and future sector needs. Page 3 ## **CHARITYWORKS** ## **(A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022** ## **Achievements and performance (continued)** The short period agreed on the new strategy recognises the fast changing environment and that the charity has to compete the work to establish full control of its own operations through the governance reform programme. The Board is keenly aware that while it has sufficient reserves to ensure that it and the graduate trainee programme can continue for the medium term, there remains a sustainability and continuity question beyond that - unless income is significantly increased. For that reason, the Board will carefully monitor and evaluate the options it has. The Board has entered into discussions with Koreo to agree the expectations of the graduate trainee programme over the next two years. This and an underlying operational delivery plan to implement the strategy will be a major focus of the Board’s activities in the remainder of 2022. Underpinning all this will be a continuing focus on the governance reform programme. Good progress has been made across the year as outlined above, but there is much still to be done. The Board said farewell to past Chair, Julie Layton in July. Julie had been part of the Charityworks story for a very long time as a trustee and chair and latterly as a non-trustee adviser to the Board. In September, trustees Rob Mills and Ian Wilder stood down having given sterling service to the Board and the charity. The Board welcomed Dan Bishop, Amelia Ireland and Des Pullen who bring a wealth of experience and skills. Rashmi Rungta resigned from the Board effective from 14 November 2022 reducing the Board to five trustees. There was an in-person induction session for the new trustees in August 2022 underpinned up by the provision of various documents and a virtual introductory session with Koreo colleagues. The Board is grateful to all trustees past and current and to colleagues at Koreo who have worked very hard to restore the programmes having weathered the challenges of the pandemic. The Board has agreed to seek to recruit three new trustees bringing its number to eight in total. This will be started early 2023 having undertaken a skills audit of Board members and future skills needs for the Board. ## **b. Reference and Administrative Details** The full name of the charity is: Charityworks Registered Charity number: 1136964 Registered company number: 07304744 Registered office: 15 Holywell Row, London EC2A 4JB ## **Financial review** ## **a. Financial performance** With the progressive recovery from the impacts of the pandemic, numbers of graduate and host organisations recruited to the graduate trainee programme increasing, the 2027 programme continuing to perform reasonably well, the financial position is more optimistic than hitherto. The key financial outturn numbers for the financial year are as follows; Income for the year ending 31 August 2022 totalled £790,380 and expenditure totalled £770,551, creating a surplus of £19,829 in the year. Of the income received, £72,401 was restricted, and £717,979 was unrestricted. The limited surplus on the year arises from the Board decision to approve the engagement of contracted support in-year to manage and deliver various aspects of the programme to strengthen governance of the charity. This has included writing various policies and moving the bookkeeping and accounting function from Koreo to an independent provider. These costs will continue into the financial year 2022-23 and will be incorporated into the planned budget for the charity. Page 4 **CHARITYWORKS** ## **(A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022** ## **b. Reserves policy** The Board is aware that while it has sufficient reserves to ensure that its programmes and the charity can continue for the medium term, there remains a significant risk as to financial viability and continuity beyond that point unless income is significantly increased. For that reason, the Board will monitor and evaluate the options it has. The Board has agreed a reserves policy, considering its likely income and expenditure in the next financial year, as well as the charity’s strategy and operational plan which will require investment in future years. The Board aims to build reserves to £250,000, to enable this growth. As at 31 August 2022, the charity’s free reserves stood at £180,753. The Board has agreed its operational targets for the years 2022-23 and 2023-24 which include the plan to increase the reserves to the required level. The Charities Act and the Companies Act require the Board of Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity as at the end of the financial year and of the surplus or deficit of the charity. In preparing those financial statements the Board is required to: - select suitable accounting policies and then apply them consistently; - make judgements and estimates that are reasonable and prudent: and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the - charity will continue in business; - state whether applicable accounting standards and statements of recommended practice have been - followed, subject to any material change. The Trustees are also responsible for maintaining adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which are sufficient to show and explain the charity's transactions and enable them to ensure that the financial statements comply with the Companies Act and comply with regulations made under the Charities Act. They are also responsible for safeguarding the assets of the charity and for taking reasonable steps for the prevention and detection of fraud and other irregularities. ## **Structure, governance and management** ## **a. Constitution** Charityworks is governed by a Board of trustees that oversees the management of the charity and the contracted delivery of services to Koreo https://koreo.co/ The members of the Board of Trustees of the Charity during the year ended 31 August 2022 were: Andrew Hall (Chair) Richard Owusu-Cyrus (Treasurer) Robert Mills (resigned 7 September 2022) Rashmi Rungta (resigned 14 November 2022) lan Wilder (resigned 7 September 2022) Trustees appointed after the year-end: Daniel Bishop (appointed 7 September 2022) Amelia Ireland (appointed 7 September 2022) Desmond Pullen (appointed 7 September 2022) The Board met six times during the year and for the first time since 2020, held an in-person meeting – in July 2022. All the directors of the company are also trustees of the charity, and their responsibilities include all the responsibilities of directors under the Companies Acts and of trustees under the Charities Acts. ## **b. Methods of appointment or election of Trustees** The management of the Company is the responsibility of the Trustees who are appointed under the terms of the Trust deed. Page 5 **CHARITYWORKS** ## **(A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022** ## **Structure, governance and management (continued)** ## **c. Governing document** The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. ## **d. Recruitment and appointment of new trustees** The Board of Trustees advertises vacancies for Trustees by means of appropriate recruitment websites supported by social media and similar networks. Recruitment is against a role description which is reviewed on each occasion to seek individuals with the skills and experience that the Board currently needs or it is anticipated it will need. The Board delegates to a small panel the tasks of shortlisting, interviewing shortlisted applicants and appointing new trustees. Such appointments are formally noted at the following Board meeting. ## **Small company provisions** This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption. ## **Statement of Trustees' responsibilities** The Trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles of the Charities SORP (FRS 102); - make judgments and accounting estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by order of the members of the board of Trustees on 5 April 2023 and signed on their behalf by: **Andrew Hall** Chair of the Board of Trustees Page 6 **CHARITYWORKS** ## **(A company limited by guarantee)** **INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 AUGUST 2022** ## **Independent Examiner's Report to the Trustees of Charityworks ('the Company')** I report to the charity Trustees on my examination of the accounts of the Company for the year ended 31 August 2022. ## **Responsibilities and Basis of Report** As the Trustees of the Company (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act'). Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Company's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. Page 7 **CHARITYWORKS** ## **(A company limited by guarantee)** ## **INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022** ## **Independent Examiner's Statement** Since the Company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institude of Chartered Accountants in England and Wales (ICAEW), which is one of the listed bodies. I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe: 1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or 4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)]. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. This report is made solely to the Company's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Company's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Company and the Company's Trustees as a body, for my work or for this report. Signed: Susan Seaman Dated: 5 April 2023 BA FCA CIOT Sagars Accountants Ltd Independent Examiner Gresham House 5-7 St Paul's Street Leeds LS1 2JG Page 8 ## **CHARITYWORKS** ## **(A company limited by guarantee)** ## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2022** |Note
**Income from:**
Donations and legacies
4
Charitable activities:
5
. Other charitable activities
**Total income**
**Expenditure on:**
Charitable activities
7
**Total expenditure**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|Restricted
funds
2022
£
72,401
163,900
236,301
199,998
199,998
36,303
-
36,303
36,303|Unrestricted
funds
2022
£
-
554,079
554,079
570,553
570,553
(16,474)
197,227
(16,474)
180,753|Total
funds
2022
£
72,401
717,979
790,380
770,551
770,551
19,829
197,227
19,829
217,056|Total
funds
2021
£
105,000
606,175
711,175
724,337
724,337
(13,162)
210,389
(13,162)
197,227| |---|---|---|---|---| The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 12 to 23 form part of these financial statements. Page 9 ## **CHARITYWORKS (A company limited by guarantee) REGISTERED NUMBER: 07304744** ## **BALANCE SHEET AS AT 31 AUGUST 2022** |Note
**Current assets**
Debtors
12
Cash at bank and in hand
Creditors: amounts falling due within one
year
13
**Net current assets**
**Total assets less current liabilities**
**Net assets excluding pension asset**
**Total net assets**
**Charity funds**
Restricted funds
15
Unrestricted funds
General funds
15
Total unrestricted funds
15
**Total funds**|130,678
261,857
392,535
(175,479)
180,753|2022
£
217,056
217,056
217,056
217,056
36,303
180,753
217,056|85,448
426,196
511,644
(314,417)
197,227|2021
£
197,227| |---|---|---|---|---| |||||197,227| |||||197,227| |||||| |||||197,227| |||||-
197,227| |||||| |||||197,227| The Company was entitled to exemption from audit under section 477 of the Companies Act 2006. The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006. The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime. The financial statements were approved and authorised for issue by the Trustees on 05 April 2023 and signed on their behalf by: ## **Andrew Hall** The notes on pages 12 to 23 form part of these financial statements. Page 10 ## **CHARITYWORKS** ## **(A company limited by guarantee)** |**STATEMENT OF CASH FLOWS**
**FOR THE YEAR ENDED 31 AUGUST 2022**
**Cash flows from operating activities**
Net cash used in operating activities
**Cash flows from investing activities**
**Net cash provided by investing activities**
**Cash flows from financing activities**
**Net cash provided by financing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
The notes on pages 12 to 23 form part of these financial statements|2022
£
(164,339)
-
-
(164,339)
426,196
261,857|2021
£
235,874| |---|---|---| |||| |||-| |||| |||-| |||235,874
190,322| |||| |||426,196| |||| Page 11 **CHARITYWORKS** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **1. General information** The principal activity of the charity is the training and provision of staff for the Not-for-profit sector. The charity is a private company limited by guarantee, registered in England and Wales (no 07304744) and a registered charity in England and Wales (no 1136964). The address of the registered office is 15 Holywell Row, London, EC2A 4JB. Charityworks meets the definition of a public benefit entity under FRS102. ## **2. Statement of compliance** These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Companies Act 2006. ## **3. Accounting policies** ## **3.1 Basis of preparation** The financial statements have been prepared on ths historical cost basis. ## **3.2 Going concern** The financial statements have been prepared on the basis that the charity can continue to operate as a going concern. The trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity. ## **3.3 Income** All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. ## **3.4 Deferred Income** In accordance with the SORP grants received in advance and specified by the donor as relating to specific accounting periods or alternatively which are subject to conditions which are still to be met, and which are outside the control of the charity or where it is uncertain whether the conditions can or will be met, are deferred on an accruals basis to the period to which they relate. Such deferrals are shown in the notes to the accounts and the sums involved are shown as creditors in the accounts. Page 12 **CHARITYWORKS** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **3. Accounting policies (continued)** ## **3.5 Expenditure** 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. Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs. Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure. All expenditure is inclusive of irrecoverable VAT. ## **3.6 Taxation** The Company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Company is exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. ## **3.7 Debtors** Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. ## **3.8 Cash at bank and in hand** Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. ## **3.9 Liabilities and provisions** Liabilities are recognised on the accruals basis in accordance with normal accounting principles, modified where necessary in accordance with the guidance given in the SORP. ## **3.10 Financial instruments** The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. Page 13 **CHARITYWORKS** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **3. Accounting policies (continued)** ## **3.11 Operating leases** Rentals paid under operating leases are charged to the Statement of financial activities on a straight-line basis over the lease term. ## **3.12 Fund accounting** General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. ## **3.13 Winding up or dissolution of the charity** If upon winding up or dissolution of the charity there remain any assets, after the satisfaction of all debts and liabilities, the assets represented by the accumulated fund shall be transferred to some other charitable body or bodies having similar objects to the charity. ## **4. Income from donations and legacies** |Grants
Grants|Restricted
funds
2022
£
72,401
Restricted
funds
2021
£
105,000|Total
funds
2022
£
72,401| |---|---|---| |||Total
funds
2021
£
105,000| Page 14 ## **CHARITYWORKS** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **5. Income from charitable activities** |Kickstart
Graduate Training Programme
2027 Programme
Kickstart
Graduate Training Programme
2027 Programme
**Analysis of grants**
Grants, 2027 Programme
Grants, 2027 Programme|Restricted
funds
2022
£
163,900
-
-
163,900
Restricted
funds
2021
£
136,300
-
-
136,300|Unrestricted
funds
2022
£
-
342,077
212,002
554,079
Unrestricted
funds
2021
£
-
353,919
115,956
469,875
Grants to
Institutions
2022
£
18,534
Grants to
Institutions
2021
£
12,851|Total
funds
2022
£
163,900
342,077
212,002| |---|---|---|---| ||||717,979| ||||Total
funds
2021
£
136,300
353,919
115,956| ||||606,175| ||||Total
funds
2022
£
18,534| ||||Total
funds
2021
£
12,851| ## **6. Analysis of grants** Page 15 **CHARITYWORKS** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **7. Analysis of expenditure on charitable activities** ## **Summary by fund type** |Kickstart
Charityworks
2027 Programme
Support costs
Kickstart
Charityworks
2027 Programme
Support costs|Restricted
funds
2022
£
163,900
2,401
33,697
-
199,998
Restricted
funds
2021
£
136,300
-
-
-
136,300|Unrestricted
funds
2022
£
-
333,544
218,500
18,509
570,553
Unrestricted
funds
2021
£
-
347,467
211,308
29,262
588,037|Total
2022
£
163,900
335,945
252,197
18,509| |---|---|---|---| ||||770,551| ||||Total
2021
£
136,300
347,467
211,308
29,262| ||||724,337| ## **8. Analysis of expenditure by activities** |Kickstart
Graduate Training Programme
2027 Programme
Support costs|Activities
undertaken
directly
2022
£
163,900
335,945
233,663
-
733,508|Grant
funding of
activities
2022
£
-
-
18,534
-
18,534|Support
costs
2022
£
-
-
-
18,509
18,509|Total
funds
2022
£
163,900
335,945
252,197
18,509| |---|---|---|---|---| |||||770,551| Page 16 **CHARITYWORKS** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **8. Analysis of expenditure by activities (continued)** |Kickstart
Graduate Training Programme
2027 Programme
Support costs|Activities
undertaken
directly
2021
£
136,300
347,467
198,457
-
682,224|Grant
funding of
activities
2021
£
-
-
12,851
-
12,851|Support
costs
2021
£
-
-
-
29,262
29,262|Total
funds
2021
£
136,300
347,467
211,308
29,262| |---|---|---|---|---| |||||724,337| ## **Analysis of support costs** |Audit & Accountancy
General expenses
Legal & consulting
Insurance
Audit & Accountancy
General expenses
Legal & consulting
Insurance|Governance
2022
£
6,135
590
10,770
1,014
18,509
Governance
2021
£
950
90
27,083
1,139
29,262|Total
funds
2022
£
6,135
590
10,770
1,014| |---|---|---| |||18,509| |||Total
funds
2021
£
950
90
27,083
1,139| |||29,262| Page 17 **CHARITYWORKS** **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **9. Independent examiner's remuneration** ||2022|2021| |---|---|---| ||£|£| |Fees payable to the Company's independent examiner for the independent||| |examination of the Company's annual accounts|1,200|980| |Fees payable to the Company's independent examiner in respect of:||| |All other services not included above|4,000|-| ## **10. Staff Costs** No salaries or wages have been paid to employees, including members of the committee during the year. The average head count of employees during the year was Nil (2021: Nil). No employees recieved employee benefits of more than £60,000 during the year (2021: Nil). ## **11. Trustees Remuneration and Expenses** No remuneration was paid to trustees during the year. During the year the charity reimbursed travel expenses totalling £165 to 2 trustees (2021: Nil). ## **12. Debtors** |**Due within one year**
Trade debtors
Funds held by Koreo on Charityworks behalf
Prepayments
VAT recoverable|2022
£
16,762
30,842
72,712
10,362
130,678|2021
£
-
82,533
2,915
-| |---|---|---| |||| |||85,448| ## **13. Creditors: Amounts falling due within one year** |Trade creditors
Other taxation and social security
Accruals and deferred income|2022
£
44,182
-
131,297
175,479|2021
£
49,736
1,385
263,296| |---|---|---| |||| |||314,417| Page 18 **CHARITYWORKS** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **14. Deferred income** |Deferred income at 1 September 2021
Amounts released from previous periods
**Deferred income at 31 August 2022**|2022
£
2,401
(2,401)
-|2021
£
2,401
-| |---|---|---| |||| |||2,401| Deferred income of £2,401 relating to The Esme Fairbairn grant was brought forward and released in the 2021/22 financial statements, to fund participants in the Graduate training programme. Page 19 **CHARITYWORKS** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **15. Statement of funds** ## **Statement of funds - current year** |**Unrestricted funds**
General Funds - all funds
**Restricted funds**
Esmee Fairbain
Kickstart
Big lottery
**Total of funds**|Balance at 1
September
2021
£
197,227
-
-
-
-
197,227|Income
£
554,079
2,401
163,900
70,000
236,301
790,380|Expenditure
£
(570,553)
(2,401)
(163,900)
(33,697)
(199,998)
(770,551)|Balance at
31 August
2022
£
180,753| |---|---|---|---|---| |||||-
-
36,303| |||||36,303| |||||217,056| Page 20 **CHARITYWORKS (A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **15. Statement of funds (continued)** ## **Statement of funds - prior year** |**Unrestricted funds**
Reserves
**Restricted funds**
Big lottery
**Total of funds**|Balance at
1 September
2020
£
210,389
-
210,389|Income
£
606,175
105,000
711,175|Expenditure
£
(619,337)
(105,000)
(724,337)|Balance at
31 August
2021
£
197,227| |---|---|---|---|---| |||||-| |||||197,227| The Kickstart Fund represents amounts used to help not-for-profit organisations and charities access Government-backed Kickstart job placements for young people. The Big Lottery Fund represents the grant received to support the 2027 programme, to prepare people from working class backgrounds for professional, decision-making roles in the grant-giving sector. ## **16. Share Capital** The charity is incorporated under the Companies Act and is limited by guarantee, each member having undertaken to contribute such amounts, not exceeding ten pounds, as may be required in the event of the company being wound up whilst they are still a member or within one year thereafter. The only persons eligible to be members are the directors. Membership is terminated if the member concerned ceases to be a director. ## **17. Analysis of net assets between funds** ## **Analysis of net assets between funds - current year** |Current assets
Creditors due within one year
**Total**|Restricted
funds
2022
£
36,303
-
36,303|Unrestricted
funds
2022
£
356,232
(175,479)
180,753|Total
funds
2022
£
392,535
(175,479)
217,056| |---|---|---|---| Page 21 **CHARITYWORKS** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **17. Analysis of net assets between funds (continued)** ## **Analysis of net assets between funds - prior year** |Current assets
Creditors due within one year
**Total**|Unrestricted
funds
2021
£
511,644
(314,417)
197,227|Total
funds
2021
£
511,644
(314,417)
197,227| |---|---|---| ## **18. Reconciliation of net movement in funds to net cash flow from operating activities** |Net income/expenditure for the year (as per Statement of Financial
Activities)
**Adjustments for:**
Increase in debtors
Increase/(decrease) in creditors
**Net cash provided by/(used in) operating activities**
**19.**
**Analysis of cash and cash equivalents**
Cash in hand
**Total cash and cash equivalents**|2022
£
19,829
(45,230)
(138,938)
(164,339)
2022
£
261,857
261,857|2021
£
(13,162)
(19,122)
268,158
235,874
2021
£
426,196
426,196| |---|---|---| Page 22 **CHARITYWORKS** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **20. Analysis of changes in net debt** |Cash at bank and in hand|At 1
September
2021
£
426,196
426,196|Cash flows
£
(164,339)
(164,339)|At 31 August
2022
£
261,857| |---|---|---|---| ||||261,857| ## **21. Related party transactions** Details of expenses reimbursed to trustees are disclosed in note 10. There are no further related party transactions requiring disclosure in the current or previous year. Page 23 Charitable Company name: Charityworks Registered office: 15 Holywell Row, London, United Kingdom, EC2A 4JB Charitable Company number: 07304744 (registered in England and Wales) Registered Charity number: 1136964 Trustees: Andrew Hall, Robert Owusu-Cyrus, Daniel Bishop, Amelia Ireland, Desmond Pullen ## **5[th] April 2023** **Sagars Accountants Ltd Chartered Accountants Gresham House 5-7 St Pauls Street Leeds LS1 2JG** Dear Sirs ## **Charityworks (“the Charitable company”) Accounts for the year ended 31 August 2022 (“the year”)** We confirm that the following representations are made on the basis of sufficient enquiries of trustee and executive management and staff with relevant knowledge and experience and, where appropriate, of inspection of supporting documentation and that, to the best of our knowledge and belief, we can properly make each of these representations to you for the purpose of your independent examination of the financial statements of Charityworks for the year ended 31[st] August 2022 under the Charities Act 2011. 1. We acknowledge that the work carried out by you is substantially less in scope than an audit performed in accordance with Auditing Standards and that you do not express an audit opinion. 2. We acknowledge our legal responsibility for the preparation of the financial statements to show a true and fair view as required by law and therefore confirm for your particular purposes that in our view these comply with the methods and principles set out in the Companies Act 2006, the regulations made under it and the Charities SORP: “Accounting and Reporting by Charities: Statement of Recommended Practice”. 3. We acknowledge our management responsibility for the maintenance of adequate internal control systems and procedures designed to prevent and detect fraud and error. We have no knowledge of any fraud, suspected fraud or allegations of fraud which could affect the charity. 4. All the financial transactions of the charitable company for the year as recorded in the accounting records and any other related information has been made available to you for your inspection. 5. The financial statements are free of material misstatements, including omissions, to the best of our knowledge and belief. 6. There are no material liabilities or contingent liabilities known to us other than those disclosed in the financial statements, including any guarantees to third parties. 7. No claims in connection with litigation have been or are expected to be received to the best of our knowledge and belief. 8. There have been no events to our knowledge since the balance sheet date which require disclosure or which would materially affect the amounts in the financial statements other than those already disclosed or included in the financial statements. Should any material events occur which may necessitate revision of the figures in the financial statements, or inclusion in a note thereto, we will advise you accordingly. 9. We confirm that we are not aware of any possible or actual instance of non-compliance with those laws and regulations which provide a legal framework within which the charitable company conducts its activities. 10. We confirm the completeness of the information provided regarding the identification of related parties, and the adequacy of related party disclosures in the financial statements. Charitable Company name: Charityworks Registered office: 15 Holywell Row, London, United Kingdom, EC2A 4JB Charitable Company number: 07304744 (registered in England and Wales) Registered Charity number: 1136964 Trustees: Andrew Hall, Robert Owusu-Cyrus, Daniel Bishop, Amelia Ireland, Desmond Pullen 11. We confirm that, having considered our expectations and intentions for at least the next twelve months and the availability of working capital, the charitable company is a going concern. We are unaware of any events, conditions, or risks beyond the period of assessment that may cast significant doubt on the charitable company’s ability to continue as a going concern. 12. All grants, donations and other voluntary incoming resources, the receipt of which is subject to specific terms and conditions, have been notified to you. There have been no breaches of terms or conditions in the application of such voluntary incoming resources. 13. We confirm that we are not aware of any breach of our charitable trusts and that we have advised you of the existence of any endowments and restricted income funds maintained by us. 14. We will not be publishing the directors' report or accounts electronically other than on our website. 15. We confirm that there are no other company associated with this charitable company for corporation tax purposes. We understand that companies can be associated for corporation tax purposes if they are members of the same 51% group. 16. We confirm that we are not liable to corporation tax due to exemption Yours faithfully, …………………. Trustee Andrew Hall Signed on behalf of the board.