Company Number: 07469562 Charity Number: 1140102
CENTRE FOR ENTREPRENEURS LIMITED Report and Accounts for the year ended 31[st] March 2024
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Centre for Entrepreneurs Limited
Report and accounts for 2023/24
CENTRE FOR ENTREPRENEURS LIMITED Accounts for the year ended 31 March 2024
## **Contents:**
|1.|Legal and Administrative Information ............................................................................................ 2|
|---|---|
|2.|Trustees’ Report .............................................................................................................................. 3|
|3.|Finance and Risk .............................................................................................................................. 7|
|4.|Independent examiner’s report to the Trustees of the Centre for Entrepreneurs Limited ........... 9|
|5.|Consolidated Statement of Financial Activities ............................................................................ 10|
|6.|Balance Sheets .............................................................................................................................. 11|
|7.|Consolidated Statement of Cash Flows ........................................................................................ 12|
|8.|Principal Accounting Policies ........................................................................................................ 13|
|9.|Notes to the Financial Statements ................................................................................................ 17|
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Report and accounts for 2023/24
## 1. Legal and Administrative Information
Trustees Oliver Pawle (Chairman) Deirdre Stirling (Secretary) Andrew Joy Masha Feigelman Joseph Hubback Joanna Santinon Carolyn Dawson Registered Office c/o Founders Forum 2 Arundel Street London WC2R 3DA Company Secretary Deirdre Stirling Chief Executive Officer Timothy Barnes Company registration number 07469562 Charity registration number 11040102 Trading subsidiary CFE Trading Ltd Company registration number 11047500 Bankers Barclays Bank Regent Street London W1B 5RA Solicitors Harbottle & Lewis 7 Savoy Court London WC2R 0EX Independent Examiner Buzzacott LLP 130 Wood Street London EC2V 6DL
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## 2. Trustees’ Report
The Trustees present their statutory report together with the financial statements of the Centre for Entrepreneurs for the year ended 31st March 2024.
The report has been prepared in accordance with Part 8 of the Charities Act 2011 and constitutes a directors’ report for the purpose of company legislation. In preparing this report, the Trustees have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
The financial statements have been prepared in accordance with the accounting policies set out on pages 13 to 16 therein and comply with the charitable company’s memorandum and articles of association, the Charities Act 2011 and Accounting and Reporting by Charities; Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Companies Act 2006.
## 2.1 Principal aims and objectives
The charity’s objectives continue to be to:
- Develop the entrepreneurial leaders of the future;
- Research into entrepreneurship;
- Develop communities of interest by bringing together companies, public bodies, philanthropists and delivery agencies to implement research recommendations.
Our mission statement is:
“We support the entrepreneurial doers and makers who change lives and grow Britain.”
## 2.2 Achievements and performance, future plans
CFE’s work focuses on supporting and developing aspiring entrepreneurs and their businesses and promoting the positive impacts of entrepreneurship through our activities.
In 2023/24, following a strategic review of the demand for, and impact of, the NEF+ entrepreneur development programme, the Trustees concluded that the combination of: reduced demand for a 6- month, in-person programme; the challenging economic environment, particularly for new startup businesses; the proliferation of new, competitive commercial programmes and the emergence of new technology possibilities resulted in a negative outlook for NEF+. Accordingly, the Trustees agreed a new strategy to pivot CFE’s entrepreneur development activity into an online programme, utilising new and developing AI technology, to reach a wider audience of potential entrepreneurs. The fourteenth NEF/NEF+ cohort, which ran from April ’23 to October ’23 was thus the final cohort in the successful NEF/NEF+ programme which launched in 2011.
We continued our work on our two membership networks, albeit in different directions to previous years. The Incubator and Accelerator Network (IAN), brings together programme leads from the university, commercial, corporate and non-profit UK incubator ecosystem. We held the 6[th] annual member conference, in Sheffield, hosted by Sheffield Hallam University, in September 2023, and brought forward the 7[th] annual conference to March ’24, hosted by Kings College, London (in
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response to member feedback). We also undertook a second member study visit to Paris in January 2024. The Refugee Entrepreneurship Network (REN) brings together a global membership group of delivery organisations, academics and supporters working with and supporting refugee entrepreneurs and their businesses. The 5[th] annual REN summit took place in Ismir, Turkey in October 2023. After intensive efforts to find new founding sources and models for REN – through a combination of membership fees and seeking corporate donations to support the network activity, CFE’s Trustees concluded at the end of 2023/24 to cease their support for REN, given the high support costs and low income contribution. The network has been handed over to a small group of original members to continue the activity, and they are investigating alternative funding options.
Research output: CFE collaborated with Beauhurst – proving an introduction to their new report on company formations, published in January 2024, heralding a new approach to research activity, whereby CFE provides insight and opinion, informed by access to a small set of third-party partners’ research activity. CFE also contributed to a number of reports and publications produced by our strategic partners and supporters, Founders Forum, who utilised CFE’s expertise in their research output.
The core future activity of CFE will be the AI-enabled early founder support platform noted above. This will be, in the first instance, a free to access service available to all aspiring entrepreneurs who have access to an internet connection. The programme will be funded, initially through a combination of corporate and private donations, and the charity’s focus through 2024 will be on establishing a donor base that combines many of its longstanding supporters plus new corporate and private donors who share our vision of supporting new entrepreneurs. Good progress is being made in this respect, and at the time of writing, the charity’s 2024/25 income targets are on track. As the user base scales, and – if successful – users’ businesses grow and thrive, the charity intends to create paid upgrade paths for successful businesses, which will make a contribution to overall incomes, but not cover the entirety of operating costs. The majority of income will continue to come from donors, and the charity also plans to explore and develop sponsorship opportunities for the online platform, later in 2025. The charity will continue to run its incubator network, and conduct research activities.
## 2.3 Structure, governance and management
The governance of the Charity is overseen by a Board of Trustees (named in the table below). Oliver Pawle is Chairman of the Board of Trustees and Deirdre Stirling is Secretary to the Board.
New Trustees are invited onto the Board by the Chairman and Trustees, on recommendation from business contacts, and are generally individuals who bring high-level contacts and specific skills to complement, support and advise the CEO, the team and Trustees. New Trustees who may be firsttime Trustees are offered a place on Trustee training courses run by independent organisations.
||||
|---|---|---|
|**Trustee**|**Appointed**|**Resigned**|
|Oliver Pawle|14th December 2010||
|Deirdre Stirling|22nd July 2011||
|Andrew Joy|21st June 2013||
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||||
|---|---|---|
|Joseph Hubback|27th November 2014||
|Masha Feigelman|24thNovember 2018|11thDecember 2024|
|Joanna Santinon|23rdFebruary 2022||
|Carolyn Dawson|7thNovember 2022||
CFE continues to operate a trading subsidiary that undertakes commercial activities and operations in support of our charitable objects and is wholly owned by CFE. Two CFE trustees are directors of the subsidiary.
|the subsidiary.|||
|---|---|---|
||||
|**Director**|**Appointed**|**Resigned**|
|Andrew Joy|16thJuly 2018||
|Deidre Stirling|16thJuly 2018||
## Governance
The charitable company, which is governed by a Memorandum and Articles of Association, was incorporated as a company limited by guarantee on 14 December 2010 and registered as a charity on 28 January 2011.
In the financial period 2023/24 Trustees met five times for formal Board meetings to oversee progress and guide the future direction of the Charity. The CEO reports to the Chairman and the Board of Trustees.
## Key Management
At the end of the period 2023/24, the Charity had a total of two full-time and one part-time employees. The key management team comprises Timothy Barnes, CEO who is responsible (jointly with the Trustees), for the longer-term strategic direction and overall leadership of the charity, supported by Deputy CEO and COO Richard Cull Thomas. CFE’s other permanent staff are/were responsible for operations, communications and recruitment activity for the NEF+, NEF+ alumni relations and new development programme activity. The charity also works with a number of external people on a contract basis, who support community and programme management activity.
The Trustees consider that they, together with the CEO and the Deputy CEO/COO comprise the key management of the charity in charge of directing, controlling, running and operating the charity on a day-to-day basis.
The Trustees receive no remuneration for their services as Trustees. The pay of the key management personnel is reviewed annually by the Board of Trustees and in 2023/24 was maintained at 2022/23 levels given the charity’s financial position.
## Statement of Trustees’ Responsibilities
The Trustees (who are also directors of the Centre for Entrepreneurs for the purposes of company law) are responsible for preparing the Trustees’ report and financial statements in accordance with
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applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires Trustees to prepare financial statements for each financial year. Under Company Law, 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 charitable company and of the income and expenditure of the charitable company for that period.
In preparing these financial statements, the Trustees are required to:
- Select suitable accounting policies and then apply them consistently.
- Observe the methods and principles in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).
- Make judgements and estimates that are reasonable and prudent.
- State whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- Prepare the financial statements on an ongoing concern basis unless it is inappropriate to assume that the charitable company will continue in operation.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
This information is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.
## Fundraising statement
The charity does not fundraise directly with the general public and therefore is not registered with the Fundraising Regulator. When donations from individuals are received, the charity aims to protect personal data and never sells data or swaps data with other organisations. The charity manages its own fundraising activities. The charity undertakes to react to and investigate any complaints regarding its fundraising activities and to learn from them and improve its service. During 2023/24, the charity received no complaints about its fundraising activities.
## Public benefit:
The trustees continue to carefully consider the Charity Commission’s general guidance on public benefit, to ensure that the charity’s charitable objects are adhered to and that our activities are all undertaken in support of our objects.
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## 3. Finance and Risk
## 3.1. Financial Review
Total income for the year was £479,451 (2023 – £462,355). This consisted of charitable income comprising contributions from sponsor companies and donations of £387,244 (2023 – £315,314) and income from charitable activities of £19,300 (2023- £47,425). Income from other trading activities totalled £71,700 (2023 – £99,398).
Expenditure for the year totalled £644,194 (2023 – £938,050).
Expenditure on charitable activities for the year amounted to £623,189 (2023 – £919,465). This comprised £420,994 (2023 – £664,469) in respect of the New Entrepreneurs programme and £202,195 (2023 – £254,996) in respect of the Think Tank programme. Costs of raising funds was £21,005 (2023 – £18,585).
This resulted in a net deficit for the year of £164,743 (2023 – deficit of £475,695) and total funds at 31 March 2024 of £206,960 (2023 – £371,703).
The general unrestricted funds at 31 March 2024 were £206,960 (2023 - £371,703). Of this balance, £204,398 (2023 – £368,402) constitutes the charity’s free reserves carried forward as discussed below.
## 3.2. Reserves policy and financial position
## **Reserves policy**
The trustees have examined the requirements for free reserves i.e. those unrestricted funds not invested in tangible fixed assets, designated for specific purposes or otherwise committed. The trustees consider that, given the nature of the Foundation’s work, the level of free reserves should cover 3-5 months’ annual overhead expenditure on unrestricted funds at any one time. As at 31 March 2024 this figure equates to approximately £100,000. The trustees are of the opinion that this provides sufficient flexibility to cover any temporary shortfalls in incoming resources due to timing differences in income flows, adequate working capital to cover core costs, and will allow the Foundation to cope with and respond to unforeseen emergencies whilst specific actions are implemented.
## **Financial position**
The consolidated balance sheet shows total funds of £206,960 (2023 – £371,703).
£2,562 (2023 – £3,301) represents fixed assets held for use in the foundation’s operations and therefore not liquid resources available for general expenditure.
£204,398 (2023 – £368,402) equates to free reserves. This falls above the target free reserves set in the policy above however given the continuing uncertain operating environment, the trustees deem that in the short term, holding reserves in excess of the normal reserves policy is prudent.
The trading subsidiary has net liabilities of £646,619 (2023 - £501,412). The deficit within the subsidiary reflects the staff time and associated overhead costs required to run the NEF+ programme
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relative to the level of programme fees generated. The trustees are mindful of the government’s guidance on trading subsidiaries (CC35) and are actively considering how the trading entity is operating. It is likely that the expenditure will ultimately be borne by the charity out of retained funding that was provided to support the NEF+ programme, as it constitutes charitable expenditure within the charity’s objects.
## 3.3. Risk management
The trustees are mindful of their responsibility as charity trustees to identify the risks the charity faces, and to establish and implement systems and procedures to mitigate those risks identified. A risk assessment has been carried out during 2023/24 and has been implemented in the current year.
The trustees see the main risks for the organisation as being funding, potential financial fraud and having a flagship new entrepreneur development programme which will attract talent, and funding support. In this current year, we have addressed each of these risks in the following way:
Funding: 2023/24 has been the second year of transition under new CEO Timothy Barnes. The charity relied on its funding reserves to continue operations over the past 12 months, and has not developed any significant new donor opportunities (neither corporate nor private) during this time. Following the decision to develop a new online development programme, Trustees approved a new fundraising strategy, focused on private individuals plus new corporate supporters, to be implemented from the start of 2024/25 as the primary source of funding.
Fraud: We seek to mitigate against financial fraud by separating budget, commissioning and authorisation sign- off duties. The basic rule we follow is that an individual who has commissioned any expenditure cannot authorize the expenditure, nor pay the invoice relating to that item. Only the CEO and COO are authorised to commission paid activities and we have introduced a 3-step process for processing all payments as well as monthly bank and cash reconciliations.
Flagship programme: having a credible, attractive and accessible development programme which supports ambitious, new founders is critical to both CFE’s mission and impact. A new, AI-powered programme is under development, and will launch in early 2025.
## 3.4. Volunteers and other supporters
The trustees are very grateful to the many volunteers and other supporters who have given their time and energy to the charity over the past year and who have provided invaluable assistance to the management team and candidates.
Approved by the trustees and signed on their behalf by:
Deirdre Sterling Trustee Approved by the Trustees on 18 December 2024
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Report and accounts for 2023/24
## 4. Independent examiner’s report to the Trustees of the Centre for Entrepreneurs Limited
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 March 2024.
## **Responsibilities and basis of report**
As the trustees of the charitable company and also its directors for the purposes of company law, you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006.
Having satisfied myself that the financial statements of the charitable company are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of your charity’s financial statements as carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
## **Emphasis of Matter – Going Concern basis of preparation**
I draw attention to the principal accounting policies on page 14 and 15 which disclose that a material uncertainty exists that may cast doubt on the charitable company’s ability to continue as a going concern.
## **Independent examiner’s statement**
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 that in any material respect:
- accounting records were not kept in respect of the charitable company as required by section 386 of the Companies Act 2006; or
- the financial statements do not accord with those records; or
- the financial statements do not comply with the accounting requirements of section 396 of the Companies Act 2006 other than any requirement that the financial statements give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or
- the financial statements have not been prepared in accordance with the methods and principals of the “Accounting and Reporting by Charities: 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).
Other than as noted above, 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.
Alison Pyle For and on behalf of Buzzacott LLP 130 Wood Street London EC2V 6DL
Date: 19 December 2024
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31 March 2024
## 5. Consolidated Statement of Financial Activities
|Notes
**Income and expenditure**
**Income:**
Donations
1
Charitable activities:
. CFE income
2
Other trading activities
3
Bank interest
**Total income**
**Expenditure:**
Costs of raising funds
6
Expenditure on charitable activities:
. New Entrepreneurs Programme
. Think Tank Programme
5
**Total expenditure**
4
**Net (expenditure) and net movement**
**in funds**
7
**Reconciliation of funds:**
Fund balances brought forward at
1 April 2023
**Fund balances carried forward at**
**31 March 2024**|Unrestricted
funds
£
387,244
19,300
71,700
1,207
479,451
21,005
420,994
202,195
623,189
644,194
(164,743)
371,703
206,960|**2024**
**£**
Restricted
funds
£|Unrestricted
funds
£
240,314
47,425
99,398
218
387,355
18,585
589,469
254,996
844,465
863,050
(475,695)
847,398
371,703|2023
£|
|---|---|---|---|---|
|||**387,244**
75,000
**19,300**
—
**71,700**
—
**1,207**
—
**479,451**
75,000
**21,005**
—
**420,994**
75,000
**202,195**
—
**623,189**
75,000
**644,194**
75,000
**(164,743)**
—
**371,703**
—
**206,960**
—||315,314
47,425
99,398
218|
|||||462,355
18,585
664,469
254,996|
|||||919,465|
|||||938,050|
|||||(475,695)
847,398|
|||||371,703|
All of the group’s activities derived from continuing operations during the above financial period.
All recognised gains and losses are included in the above statement of financial activities.
The notes to the accounts on pages 17 to 23 form part of these financial statements.
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31 March 2024
## 6. Balance Sheets
|Notes|**Group**
**2024**
**£**|**Charity**
**2024**
**£**|Group
2023
£|Charity
2023
£|
|---|---|---|---|---|
|**Fixed assets**
Tangible fixed assets
11
**Current assets**
Debtors
13
Cash at bank and in hand
**Liabilities:**
Creditors: amounts falling due within
one year
14
**Net current assets**
**Total net assets**
**The funds of the charity:**
Unrestricted funds
. General funds|**2,562**
**2,900**
**221,558**|**2,562**
**711,139**
**157,939**|3,301
24,583
391,744|3,301
694,961
207,408|
||**224,458**|**869,078**|416,327|902,369|
||**(20,060)**|**(18,060)**|(47,925)|(32,555)|
||**204,398**|**853,518**|368,402|869,814|
||**206,960**|**853,580**|371,703|873,115|
||**206,960**|**853,580**|371,703|873,115|
||**206,960**|**853,580**|371,703|873,115|
For the year ended 31 March 2024, the charitable company was entitled to exemption from audit under section 477 of the Companies Act 2006, relating to small companies.
- Members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
- The trustees, as directors, acknowledge their responsibility for:
- ensuring the company keeps accounting records which comply with section 386 of the Companies Act 2006, and
- preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year, and of its profit or loss for the financial year, in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act relating to financial statements, so far as applicable to the company.
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime as set out in Part 15 of the Companies Act 2006.
Approved by the board of Trustees and signed on behalf of the trustees by:
Deirdre Sterling Trustee
Centre for Entrepreneurs Limited, Company Limited by Guarantee Registration Number 07469562 (England and Wales) Approved by the Trustees on: 18 December 2024
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## 7. Consolidated Statement of Cash Flows
|Notes|
**2024**
**£**|2023
£|
|---|---|---|
|**Cash flows from operating activities:**
Net cash used in operating activities
A
**Cash flows from investing activities:**
Purchase of tangible fixed assets
Interest received
**Net cash provided by (used in) investing activities**
**Change in cash and cash equivalents in the year**
**Cash and cash equivalents at 1 April 2023**
B
**Cash and cash equivalents at 31 March 2024**
B|
**(171,393)**|(456,520)|
||—
**1,207**
**1,207**|(732)
218|
|||(514)|
||**(170,186)**
**391,744**|(457,034)
848,778|
||
**221,558**|391,744|
## **Notes to the statement of cash flows for the year to 31 March 2024.**
## **A Reconciliation of net movement in funds to net cash provided by operating activities**
||**2024**
**£**|2023
£|
|---|---|---|
|**Net movement in funds (as per the statement of financial activities)**
**Adjustments for:**
Depreciation charge
Interest receivable
Decrease in debtors
(Decrease) increase in creditors
**Net cash used in operating activities**|**(164,743)**
**739**
**(1,207)**
**21,683**
**(27,865)**|
(475,695)
945
(218)
6,118
12,330|
||**(171,393)**|
(456,520)|
## **B Analysis of changes in net debt**
|**Analysis of changes in net debt**||||
|---|---|---|---|
||2023
£|Cashflows
£|**2024**
**£**|
|Cash at bank and in hand
**Total cash and cash equivalents**|391,744|
(170,186)|**221,558**|
||391,744|
(170,186)|**221,558**|
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## 8. Principal Accounting Policies
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below.
## **Basis of preparation**
These financial statements have been prepared for the year to 31 March 2024 with the comparative information prepared for the period to 31 March 2023.
The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these accounts.
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements are presented in sterling and are rounded to the nearest pound.
## **Basis of consolidation**
The statement of financial activities and the balance sheet consolidate the assets, liabilities, income and expenditure of the charity and its wholly owned subsidiary undertaking, CFE Trading Limited. The results of the subsidiary undertaking are consolidated on a line-by-line basis.
No separate statement of financial activities has been presented for the charity alone as permitted by section 408 of the Companies Act 2006. The charity made a deficit of £19,535 in the year.
## **Critical accounting estimates and areas of judgement**
Preparation of the accounts requires the trustees and management to make significant judgements and estimates.
The key items in the financial statements where these judgements and estimates have been made are with respect to estimating the allocation of support costs between programmes and the designation of outstanding expenditure required for the candidates to complete their training programme and estimating future cash flows for the purpose of assessing going concern.
## **Assessment of going concern**
The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The trustees have made this assessment with regard to a period of one year from the date of approval of these accounts. As further detailed within the trustees’ report, in making this assessment, the trustees have given due consideration to the impact of the current economic climate on the operational and financial activities of the charity.
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The charity’s trading subsidiary, CFE Trading Ltd, has continued to incur losses in recent years and currently holds retained losses of £646,620. With the immediate future of CFE Trading Ltd uncertain, the trustees hold the opinion that is appropriate to prepare these financial statements on a going concern basis due to the discontinuation of loss-making operations and sufficient funds in the parent charity in line with the reserves policy. However, there remains a material uncertainty regarding the going concern basis of accounting.
## **Income recognition**
Income is recognised in the period in which the charity has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received.
Donations and contributions are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.
Participation fees are recognised in the financial period in which the service is provided.
Donated services and facilities provided to the charity are recognised in the period when it is probable that the economic benefits will flow to the charity, provided they can be measured reliably. This is normally when the service is provided/the facilities are used by the charity. An equivalent amount is included as expenditure.
Donated services and facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain facilities or services of equivalent economic benefit on the open market.
In accordance with the Charities SORP FRS 102 volunteer time is not recognised.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
## **Expenditure recognition**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment 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.
All expenditure is accounted for on an accruals basis, candidate recruitment costs in relation to the New Entrepreneurs programme are recognised in the financial year of enrolment. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings. The classification between activities is as follows:
- Expenditure on raising funds includes all expenditure associated with raising funds for the charity. This includes staff costs associated with fundraising, and an allocation of support costs.
- Expenditure on charitable activities includes all costs associated with furthering the charitable purposes of the charity through the provision of its charitable activities. Such costs include the
14
running of training programmes, candidate recruitment, entrepreneurship research, and support costs including governance costs.
Grants are made where the trustees consider there is real need following a review of the details of each particular case and comprise single year payments rather than multi-year grants. Grants are included in the statement of financial activities when approved for payment. Provision is made for grants and donations approved but unpaid at the period end.
All expenditure is stated inclusive of irrecoverable VAT.
## **Allocation of support and governance costs**
Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charity it is necessary to provide support in the form of personnel, financial procedures, provision of office services and equipment and a suitable working environment. Governance costs comprise the costs involving the public accountability of the charity (including audit costs) and costs in respect to its compliance with regulation and good practice.
Support costs and governance costs are apportioned based on an estimation of the time spent by each member of staff on each activity or on an estimate of the proportion of costs relating to that activity.
## **Tangible fixed assets and depreciation**
All assets with a cost greater than £500 and a life expectancy exceeding one year are capitalised.
Tangible fixed assets are included at cost. Depreciation is provided at the following annual rates in order to write off each asset on a straight line basis over its estimated useful life:
- Computer and equipment 20% p.a. of cost
## **Debtors**
Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.
## **Cash at bank and in hand**
Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.
## **Creditors and provisions**
Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payments where such discounting is material.
15
## **Funds**
## **Unrestricted funds**
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.
## **Designated funds**
Designated funds are funds set aside out of unrestricted funds by the trustees for a specific purpose.
## **Restricted funds**
Restricted funds are those which can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when funds are raised for particular restricted purposes.
## **Pension contributions**
Contributions in respect of the charity’s defined contribution pension scheme are charged to the statement of financial activities when they are payable to the scheme. The charity’s contributions are restricted to those disclosed in note 8. Outstanding contributions at the year-end are included in creditors. The charity has no liability beyond making its contributions and paying across the deductions for the employees’ contributions.
## **Financial instruments**
The charity holds basic financial instruments as defined by FRS 102. The financial assets and financial liabilities of the charity and their measurement basis are as follows:
**Financial assets** – other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.
**Cash at bank** – classified as a basic financial instrument and is measured at fair value.
**Financial liabilities** – accruals and other creditors are financial instruments, and are measured at amortised cost. Deferred income is not a financial instrument.
16
## 9. Notes to the Financial Statements
## **1. Donations**
||Unrestricted
funds
£
**2024**
**Total funds**
£
Restricted
funds
£
Unrestricted
funds
£
2023
Total funds
£
241,940
**241,940**
75,000
25,515
100,415
43,104
**43,104**
—
63,157
63,157
102,200
**102,200**
—
151,742
151,742
387,244
**387,244**
75,000
240,314
315,314|
|---|---|
|Donations
Other donations
Gifts in kind||
Gifts in kind include coaching, consultancy and venues provided free of charge, the related costs are included within Training programmes (note 5).
## **2. Income from charitable activities**
|CFE report income - Refugee
CFE income - Incubator and Accelerator
Network (IAN)|Unrestricted
funds
£
**2024**
**Total funds**
**£**
Restricted
funds
£
Unrestricted
funds
£
2023
Total funds
£
4,100
**4,100**
—
36,425
36,425
15,200
**15,200**
—
11,000
11,000
19,300
**19,300**
—
47,425
47,425|
|---|---|
## **3. Other trading activities**
|CFE Networks - IAN conference
NEF+ programme fees
NEF+ company fees
Events
IAN income - visit|Unrestricted
funds
£
**2024**
**Total funds**
**£**
Restricted
funds
£
Unrestricted
funds
£
2023
Total funds
£
20,450
**20,450**
—
16,815
16,815
42,808
**42,808**
—
82,583
82,583
2,525
**2,525**
—
—
—
4,167
**4,167**
—
—
—
1,750
**1,750**
—
—
—
71,700
**71,700**
—
99,398
99,398|
|---|---|
17
## **4. Analysis of total expenditure**
|Costs of raising funds
Charitable expenditure
. Charitable activities (note 5)
**5. Charitable activities**||**Direct**
**costs**
**£**
—
**248,970**
**248,970**|**Support**
**costs**
**(note 6)**
**£**|**2024**
**Total funds**
**£**|Direct
costs
£|Support
costs
(note 6)
£|2023
Total funds
£|
|---|---|---|---|---|---|---|---|
||Costs of raising funds
Charitable expenditure
. Charitable activities (note 5)||**21,005**
**374,219**|**21,005**
**623,189**|—
486,095|18,585
433,370|18,585
919,465|
||||**395,224**|**644,194**|486,095|451,955|938,050|
|||||||||
|**Charitable activities**||||
|---|---|---|---|
||Unrestricted
funds
£
**2024**
**Total funds**
**£**
Restricted
funds
£
7,900
**7,900**
3,360
121,747
**121,747**
31,805
291,348
**291,348**
39,835
420,995
**420,995**
75,000
82,487
**82,487**
—
36,836
**36,836**
—
82,871
**82,871**
—
202,194
**202,194**
—
623,189
**623,189**
75,000|Unrestricted
funds
£|2023
Total funds
£|
|**New Entrepreneurs programme**
Candidate recruitment
Training programmes
Support costs (note 6)
**Think Tank programme**
Research and reporting
Staff costs
Support costs (note 6)||26,412
249,974
313,083|29,772
281,779
352,918|
|||589,469
121,785
52,759
80,452|664,469
121,785
52,759
80,452|
|||254,996|254,996|
|||844,465|919,465|
18
## **6. Support costs**
The support costs (including governance costs) incurred during the year to 31 March 2024 and the bases of their allocation were as follows:
||**Raising**
**funds**
**£**|
**Charitable**
**activities**
**£**|**2024**
**Total funds**
**£**|Raising
funds
£|Charitable
activities
£|2023
Total funds
£|
|---|---|---|---|---|---|---|
|Staff costs
Staff recruitment and training
Strategic project
Travelling costs
Advertising
Office costs
Events, entertaining and gifts
Depreciation
Consultancy fees
Legal and professional fees
Irrecoverable VAT
Audit and accounting fees
Other governance costs
Bad debt expense
Foreign currency loss
Design & Commissioning
**Allocated to**
NEF+ Programme
Research and Networks
activity|**12,840**
**87**
**22**
**56**
**—**
**4,129**
**10**
**36**
**24**
**2**
**365**
**1,133**
**117**
**543**
**7**
**1,634**|
**214,432**
**1,696**
**425**
**1,102**
**—**
**80,830**
**204**
**703**
**476**
**31**
**7,140**
**22,172**
**2,283**
**10,628**
**131**
**31,966**|**227,272**
**1,783**
**447**
**1,158**
**—**
**84,959**
**214**
**739**
**500**
**33**
**7,505**
**23,305**
**2,400**
**11,171**
**139**
**33,600**|11,482
171
—
15
533
2,713
157
35
—
161
455
2,266
154
308
135
—|247,569
4,473
—
359
13,954
70,971
4,111
910
—
4,221
11,904
59,269
4,035
8,067
3,527
—|259,051
4,644
—
374
14,487
73,684
4,268
945
—
4,382
12,359
61,535
4,189
8,375
3,662
—|
||**21,005**|
**374,219**|**395,224**|18,585|433,370|451,955|
||**19,866**
**1,139**|
**291,348**
**82,871**|**311,214**
**84,010**|17,383
1,202|352,918
80,452|370,301
81,654|
||**21,005**|
**374,219**|**395,224**|18,585|433,370|451,955|
Indirect support costs are allocated between raising funds and charitable activities based on estimated staff time. The allocation between the New Entrepreneurs programme and the Think Tank programme is based on estimated staff time.
19
## **7. Governance costs**
|Auditor’s remuneration
. Current year independent examination fees
. Prior year audit fees
. Prior year additional fee
. Non-audit fees:
.. Payroll, VAT and tax
Accounting fees
. Other fees|**2024**
**Total funds**
**£**
**6,500**
—
—
**11,845**
**4,960**
**2,400**
**25,705**|2023
Total funds
£|
|---|---|---|
|||—
12,250
8,550
16,985
23,750
4,189|
|||65,724|
## **8. Staff costs**
Staff costs during the year were as follows:
||**2024**
**£**|2023
£|
|---|---|---|
|Wages and salaries
Social security costs
Pension costs
Redundancy costs
**Relating to**
Think Tank programme (note 5)
Support costs (note 6)|**230,599**
**21,714**
**9,103**
**2,692**|257,556
24,587
29,667
—|
||**264,108**|311,810|
||**36,836**
**227,272**|52,759
259,051|
||**264,108**|311,810|
One employee received remuneration of between £80,000 and £90,000 during the year (2023 – none). One employee received remuneration of between £70,000 and £80,000 during the year (2023- one). Pension contributions of £6,978 (2023 - £4,410) were made in respect of these employees.
– During the year the average number of staff was 4 (2023 5).
– During the year one employee received a special redundancy payment (2023 none).
The key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis comprise the trustees, the Chief Executive Officer, and the Chief Operations Officer & Deputy CEO. The total remuneration (including taxable benefits but including employer's pension contributions) of the key management personnel for the year was £182,098 (2023 - £196,471).
During the year no Trustees received any remuneration or were reimbursed for expenses (2023 - £nil).
20
## **9. Net expenditure and net movement in funds**
This is stated after charging:
|**2024**
**Total funds**
**£**
Staff costs (note 8)
**264,108**
Auditor’s remuneration
. Independent examiners fees
**6,500**
. Audit fees
—
. Prior year additional fee
—
. Non-audit fees: Payroll, Vat and tax
**11,845**
Depreciation (note 11)
**739**|2023
Total funds
£|
|---|---|
||311,811
—
12,250
8,550
16,985
945|
## **10. Taxation**
The Centre for Entrepreneurs Limited is a registered charity and, therefore, is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.
## **11. Tangible fixed assets**
|**Tangible fixed assets**||||
|---|---|---|---|
|**Group and Charity**|Computers
and office
equipment
£|Other assets
£|**Total**
**£**|
|**Cost**
At 31 March 2023
Additions
At 31 March 2024
**Depreciation**
At 31 March 2023
Charge for the year
At 31 March 2024
**Net book value**
As at 31 March 2024
As at 31 March 2023|18,924
—|12,087
—|**31,011**
—|
||18,924|12,087|**31,011**|
||15,623
739|12,087
—|**27,710**
**739**|
||16,362|12,087|**28,449**|
||2,562|—|**2,562**|
||3,301|—|**3,301**|
21
## **12. Investment in subsidiary undertaking**
The Centre for Entrepreneurs Limited owns 100% of the issued share capital of CFE Trading Limited, a company registered in England and Wales (Company Number 11047500).
A summary of the results of the subsidiary for the period to March 2024 is shown below:
||**Year to**
**31 March**
**2024**
**£**|Year to
31 March
2023
£|
|---|---|---|
|Turnover
Cost of sales
Gross loss
Administration expenses
Operating (loss)
Distribution under Gift Aid to Centre for Entrepreneurs Limited
Retained earnings as at 1 April
Retained losses carried forward|**44,108**
**(182,019)**|90,083
(364,118)|
||**(137,911)**
**(7,296)**|(274,035)
(18,809)|
||**(145,207)**
—
**(501,413)**|(292,844)
—
(208,569)|
||**(646,620)**|(501,413)|
The company’s assets and liabilities at 31 March 2024 were as follows:
||**2024**
**£**
**63,621**
**(710,240)**
**(646,619)**|2023
£|
|---|---|---|
|Assets
Liabilities
Net assets||197,637
(699,049)|
|||(501,412)|
## **13. Debtors**
||**Group**
**2024**
**£**|**Charity**
**2024**
**£**|Group
2023
£
2,500
6,473
15,610
—
24,583|Charity
2023
£
2,500
9,738
2,310
680,413
694,961|
|---|---|---|---|---|
|Gift aid receivable
VAT Recoverable
Other debtors
Amounts owed by subsidiary undertaking|—
**2,900**
—
—|—
**2,900**
—
**708,239**|||
||**2,900**|**711,139**|||
22
## **14. Creditors: amounts falling due within one year**
|**Creditors: amounts falling due within one year**|||||
|---|---|---|---|---|
||**Group**
**2024**
**£**|**Charity**
**2024**
**£**|Group
2023
£
11,722
6,328
29,875
—
47,925|Charity
2023
£
1,853
6,327
24,375
—
32,555|
|Trade creditors
Taxation and social security
Accruals and deferred income
VAT payable|**1,939**
**8,553**
**6,500**
**3,068**|**1,939**
**8,553**
**4,500**
**3,068**|||
||**20,060**|**18,060**|||
## **15. Analysis of net assets between funds**
Fund balances at 31 March 2024 are represented by:
|**Group**|**General**
**fund**
**£**|**Designated**
**fund**
**£**|**2024**
**Total funds**
**£**|General
fund
£|Designated
fund
£|2023
Total funds
£|
|---|---|---|---|---|---|---|
|Tangible fixed assets
Current assets
Creditors amounts falling due
within one year
Total net assets|**2,562**
**224,459**
**(20,060)**|—
—
—|**2,562**
**224,459**
**(20,060)**|3,301
416,327
(47,925)|—
—
—|3,301
416,327
(47,925)|
||**206,960**|—|**206,960**|371,703|—|371,703|
|**Charity**|**General**
**fund**
**£**|**Designated**
**fund**
**£**|**2024**
**Total funds**
**£**|General
fund
£|Designated
fund
£|2023
Total funds
£|
|---|---|---|---|---|---|---|
|Tangible fixed assets
Current assets
Creditors amounts falling due
within one year
Total net assets|**2,562**
**869,078**
**(18,060)**|—
—
—|**2,562**
**869,078**
**(18,060)**|3,301
902,369
(32,555)|—
—
—|3,301
902,369
(32,555)|
||**853,580**|—|**853,580**|873,115|—|873,115|
## **16. Related party transactions**
During the year, the charity received donations of £Nil (2023 - £2,000) from trustees.
As part of the partnership agreement with Founders Forum Group (FFG), CFE received Gift in Kind benefits valued at £60,000 (2023 - £49,200) and received a corporate donation of £nil (2023 - £20,000). CFE paid FFG £203 (2023 - £1,236) in respect of hospitality for the Founders Forum Summer Party. One trustee is also the CEO of Founders Forum.
There were no further related party transactions which required disclosure (2023 - none).
23