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2022-03-31-accounts

CIRCLE COMMUNITY LTD (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

Company Number: 07667918 Charity Number: 1145291

CIRCLE COMMUNITY LTD (A COMPANY LIMITED BY GUARANTEE)

CONTENTS

Page
Legal and Administrative Details 1
Directors’ and Trustees’ Report 2
Independent Examiner’s Report 11
Statement of Financial Activities 12
Balance Sheet 13
Notes to the Accounts 14

CIRCLE COMMUNITY LTD (A COMPANY LIMITED BY GUARANTEE)

LEGAL AND ADMINISTRATIVE DETAILS

FOR THE YEAR ENDED 31 MARCH 2022

Directors and Trustees Rebecca Butler – Chair
Robert Coe – Treasurer
Danny Unger
Michael Gerrard
John Montague
Secretary Danny Unger
Registered Office 136 Kingsland High Street
London
E8 2NS
Company Number 07667918
Charity number 1145291

1

CIRCLE COMMUNITY LTD (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2022

The Trustees are pleased to present their report including the financial statements of Circle Community Ltd (the “Charity”) for the year ended 31 March 2022.

OBJECTIVES AND ACTIVITIES

The charity’s objects (the “Objects”) are specifically restricted to positively impacting the lives of those in need by reason of youth, age, disability, financial hardship or other disadvantage in any or all of the following ways:

2) To promote awareness of the issues affecting those in need by reason of youth, age, disability, financial hardship or other disadvantage, both generally and in relation to their social and workplace exclusion;

4) Advancing education and training for the public benefit, both generally and in relation to the social and workplace exclusion of those in need by reason of youth, age, disability, financial hardship or other disadvantage;

Our charitable activities are based on meeting the above objects. The charity delivers public benefit through the provision of our ‘Back Your Future’, training programme which supports disadvantaged young people aged 16-30 to acquire and develop workplace skills, capabilities and the desire to secure and sustain permanent employment, education or training.

2

CIRCLE COMMUNITY LTD (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2022

This is delivered through the following activities:

For those young people we support into jobs, once in work, we continue to help them through creating support plans with their employers and offering vital encouragement through weekly contact.

PUBLIC BENEFIT STATEMENT

When considering activities which contribute towards the charity’s work, Trustees have regarded section 17(5) of the Charities Act 2011 in relation to its guidance on public benefit. Guidance has been considered at trustee meetings when planning programmes and activities for Circle Community over the course of the year.

STRUCTURE GOVERNANCE AND MANAGEMENT

The governing document is the Memorandum and Articles of association of the company incorporated on 16th June 2011 as amended by special resolution registered at Companies House on 28th December 2011.

New Trustees are appointed by the existing Trustees.

The Trustees delegate the day to day running of the charity to Ms Turly Humphreys and her remuneration is agreed by the Trustees.

3

CIRCLE COMMUNITY LTD (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2022

WHY OUR WORK IS NEEDED

“Circle had been there to give me the confidence boost that I needed during my work search. They gave me the opportunity to develop my people skills through working in the store and plenty of interview experience with feedback to know where I went wrong. Honestly, without these experiences, I'd still be lost and a nervous wreck when talking to an employer’

J, aged 20, Marketing Assistant.

Most of the young people we support are those who are considered furthest away from the labour market. They often have complex lives and face multiple barriers to employment, for example, many come from black and minority ethnic groups who have low labour market participation, have low or no qualifications, no work experience and they are experiencing mental ill health. They often need help in developing the appropriate attitudes, resilience and behaviours to cope with typical work patterns. These cohorts of young people often fall through the gaps of other youth employment programmes.

The labour market overall has continued to recover, with the national unemployment rate falling from 4.9% in March 2021 to 3.8% in March 2022. However, unemployment rates remain disproportionately higher for young people with 9.1% of 18–24-year-olds unemployed in March 2022. Young people are still struggling to secure meaningful employment and are set to bear the associated long-term consequences, including lower wages, inferior prospects, and poorer mental health.

“We believe that every young person who wants a job should be able to get one…and Circle is on a mission to make this happen.” Turly Humphreys, Circle Founder and CEO

We have demonstrated that the right support can reduce these barriers to work for even for the most marginalised youth, supporting over 700 young people into work since 2015. We address the root causes of problems that are barriers to employment and start with basic needs; paying particular attention to mental well-being and making sure no one falls through the net. We guide young people through their journey into/towards employment. We provide them with advisors, advocates, role models, mentors, connectors, peer support and above all, a safe space.

ACHEIVEMENTS AND PERFORMANCE

At the beginning of the 2021/22 financial year, the government allowed non-essential retail to re-open their doors and we were able to start delivery of the essential work experience and customer service training in our Hackney and Lewisham retail sites which had been suspended since the onset of the Covid-19 pandemic in March 2020. While returning to work, we still had to adhere to certain social distancing guidelines, room capacities, enhanced cleaning regimes and kept delivering certain group

4

CIRCLE COMMUNITY LTD (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2022

aspects of our programme via video conferencing until it was deemed safe, phasing our return to prepandemic delivery across the financial year.

With April 2021 measures to re-open the retail and hospitality sectors, and office-based work moving towards a hybrid model, we saw the first increase in vacancies since March 2020 in sectors that had needed to make redundancies during lockdown or due to Brexit, and the return of entry level opportunities suitable for most of the young people we support. Additionally, the government announced the ‘Kickstart’ scheme, which provided subsidised funding to employers to employ young unemployed Job Centre Plus claimants for 25 hours per week at national minimum wage over a 6- month period. This scheme was pivotal to Circle in two ways. Firstly, we were able to support our cohorts of young people into a wide variety of employment opportunities designed to support growth within the economy which gave 6 months of paid work experience in an entry level position. Secondly, the scheme provided the funding for Circle Community and its sister social enterprise Circle Sports CIC to employ 21 young people to work for us for 6 months, providing the work experience and customer service training in our retail stores, delivery administration support to the Job Coaches and supporting with our Digital Team (social media / marketing). Seven of the 21 young people have gone on to contracted or permanent employment with Circle and the majority of the others finding employment elsewhere.

All young people were experiencing high levels of isolation and anxiety with the experience of the pandemic, and we provided young people with a safe space and a sense of purpose and routine during those tumultuous times.

Our delivery model during this time included the following changes:

5

CIRCLE COMMUNITY LTD (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2022

New location and re-modelling of our Lewisham store and training centre

A major achievement this year was opening a relocated store and training centre. We took the decision not to re-open our old Lewisham space after the first lockdown in June 2020, instead focusing all our efforts in moving to a new location within Lewisham shopping centre – a much larger, better situated space which will enable Circle Collective to generate more retail income and deliver more work experience whilst providing the charity with an improved training space from which to provide employability support to the increasing number of unemployed young people coming to us as a result of Covid-19. We opened the new space at the beginning of December 2020, only to have to close it again 10 days later for the remainder of the financial year due to Covid-19 lockdown measures, re-opening permanently on April 12[th] 2021.

This new location represents an exciting opportunity for us to recalibrate and expand our model. We are looking to test a broader community focused model, using the space to deliver events related to our brand, mission and purpose. This will include, for example, facilitated talks on local issues and workshops for mending, clothes exchanges and making. We are hoping to revitalise the shopping centre and public space as well as providing new revenue streams and new work experience opportunities for young people.

“The performance and social impact Circle had in this unprecedented period of time was hard fought and down to the passion and resilience of the team.” External Social return on Investment Report 2020-21, University of Northampton

6

CIRCLE COMMUNITY LTD (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2022

We are delighted with our bounce back from the pandemic with our highest performing year on record for starts and job outcomes, as well as new focus on supporting young people into education and training so that we are moving young people away from the ‘NEET’ status.

333 young people engaged with our Back Your Future employability programme (202 in 2020-21)

246 completed the programme (119 in 2020-21)

114 of those young people went into sustained employment. (59 in 2020-21)

CASE STORY

Da’mar Semder-Knight

Sales Assistant at Learn & CO

After I finished 6th form, I took a gap year to gain some work experience. This felt like a daunting task as I had little to no help when it came to writing up my CV or cover letter and kept getting declined when I was applying to job vacancies. I was referred to Circle through the Job Centre and on the same day Seyda called me and I joined the same week. Joining was pretty much as simple as that.

Circle was enthusiastic with aiding me with my employability. There were many workshops, activities and one to one coaching. As I mentioned earlier, I really struggled with my CV and cover letter to which Seyda covered in workshops and one to one guidance. This was something I loved, as the workshops were tailored completely to us. There were also workshops in collaboration with their partnering companies such as sage which gave us some insight on the employing stage but from the perspective of the employers rather than from us which was really helpful for me. Some of the activities I did at Circle included mock interviews and gaining new skills through the work experience on the shop floor. We were even able to develop our customer service skills, interacting with the customers, and building relationships with them.

There was also a job club which was extremely helpful in helping us find a job. Seyda was really helpful here too as there were many job opportunities she relayed to us, discussing the roles, and evaluating if it would be something we would possibly enjoy, not only in the short run but in the far future as well. Through the job club, there were a variety of roles and job vacancies that were forwarded to us. Which is where I found my current position and I was assisted with the application by Seyda, I was offered the position on the spot.

I'm extremely thankful for everyone in the circle team who helped me get to where I am today.

7

CIRCLE COMMUNITY LTD (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2022

Future plans

We know that young people need us more than ever. Since April 2021 when we were able to return to our physical premises, the number of young people signing up for our support is higher than any prepandemic year.

We are keen to further expand our geographical footprint and reach more young people across London. We are in discussion with two of our long-term corporate partners, LandSec and Canary Wharf Group, regarding new venues and are exploring the opportunities they present.

Over the next 12 months we plan to increase our staff capacity, as we physically expand, and to cope with demand and adapt to young people’s evolving needs.

We want to ensure that we can provide the best possible opportunities to those young people coming to us.

We want to broaden our employer partnerships, including with sectors that offer potential opportunities for young people post Covid-19.

We will also continue to explore the role of self-employment in generating more opportunities for young people through our ‘Navigating the Gig Economy’ program.

FUNDRAISING STATEMENT

We fundraise so that we can provide the services that deliver our charitable objectives and to deliver our mission that all young people that want a job are able to get one.

We have regard to the guidance provided by the Fundraising Regulator, and we actively support the Code of Fundraising Practice. We promise to be open, honest, clear, respectful, fair, reasonable and accountable.

Our warmest thanks go to everyone who has supported Circle Community this year. We are so grateful for the support of our wonderful corporate volunteers and companies who have provided us with hundreds of hours of pro bono support including mentoring, workshops and career experiences and other in-kind donations.

8

CIRCLE COMMUNITY LTD (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2022

We would like to highlight the support of our corporate partners, in particular Landsec, who are also our landlords in Lewisham shopping centre, and who continue to support us and The London Stock Exchange Group.

We would also like to thank grant giving organisations who supported us in 2021-22 including BBC Children in Need/Youth Futures Foundation, Charities Aid Foundation, Henry Smith Charity, National Lottery Community Fund, Paddington Development Trust, Peter Cruddas Foundation, The Drapers’ Company, The Evening Standard’s Dispossessed Fund, The Skinners’ Company Lawrence Atwell’s Charity and The Salters Charitable Foundation.

FINANCIAL REVIEW AND RESERVES POLICY

Circle Community’s principal sources of funds are grant giving organisations, statutory contracts and corporate donations, with a small amount of income received through individual donations.

Income for the year was £465,853 (2021: £369,306) and expenditure was £441,840 (2021: £321,382) giving us a surplus for the year of £24,013 (2021: surplus of £47,922).

The Trustees have reviewed the charity's needs for reserves in line with the guidance issued by the Charities Commission and produced a reserves policy which requires reserves to be developed to a reasonable level to ensure the charity can run efficiently and ensure the continuation of core activities during a period of unforeseen difficulty.

The target value of these free reserves should be a minimum of three months of core operating costs and a maximum of three months of worth of total costs. Our reserves should be maintained in a realisable form – a bank account without access restrictions. For 2021/22 this amount is calculated as minimum £78,456 and maximum £110,460.

At 31 March 2022, our total free reserves were £130,488, above our target boundary, as we start to build resilience for expanding our geographical footprint. We keep at least £10,000 of our reserves in a dedicated interest-bearing bank account held at Charity Bank.

9

CIRCLE COMMUNITr LTD (A COMPANY UMITED BY GUARANTEE) TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2022 TRUSTEES. RESPONSIBUTIES IN RELATION TO FINANCIAL STATEMENTS The Trustees (who are also directors of Cirde Community Ltd for the purposes of company law) are resky)nsible for preparing the Directors, and Trustees. Rewrt and the financial statements in accordance wrth applicable law and United lQngdom A¢￿untIng Stsndards. Company Law requires the Trustees to prepare financial statements for each finanaal year which give a Irue and fair view of the state of the Charity's finan￿$. In preparing the financial statements. the Trustees are required to.. select suitsble accounting policEs and then appty them consistenly" observe the methods and prinuples in the Chanties Statements of Recommended of Recommended Practise". make judgements and eStirr￿eS that are reasonable and pnJdenL state whether applicabje UK Accounting Standards have been follcAYed. subject to any material departures disclosed and eX[￿alned in the financial statements. and prepare the financial stslements on the going c￿nCern basis unless it is inappropriate to presume that the Charty will continue in business. The Trustees are re¥)onsible for keeping proper accounting records that disdose with reasonable accuracy at any lime the financial rxJsitKJn of the Chanty and enable them to ensure that the finanaal ststements compty with the Companies Acl 2006. Thi5 report has been prepared in accI)rdan￿ with the speckal provisions relating to small companies wiihin Part 15 of the Companies Act 20C6 APPROVED BY THE BOARD OF DIRECTORS AND SIGNED ON ITS BEHALF BY Robert Coe Treasurnr io

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF CIRCLE COMMUNITY LTD

I report to the charity trustees on my examination of the accounts of the company for the year ended 31 March 2022.

Responsibilities and basis of report

As the charity’s trustees of the company (and also 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 your charity’s accounts as 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.

Independent examiner’s report

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 Institute 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:

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.

Anthony Epton BA, FCA, CTA, FCIE Goldwins Limited

22 November 2022

Chartered Accountants 75 Maygrove Road West Hampstead London NW6 2EG

11

Circle Community Ltd Statement of financial activities

(incorporating an income and expenditure account) For the year ended 31 March 2022

Note
Income from:
Donations
2
Charitable activities
3
Investment income
4
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
5
Net income for the year
6
Transfers between funds
Net movement in funds
Reconciliation of funds:
Funds brought forward
Total funds carried forward
13		 Unrestricted
funds
Restricted
funds
Total
funds
Total
funds
2022
2022
2022
2021
£
£
£
£
111,257
262,458
373,715
345,982
92,102
-
92,102
23,206
36
-
36
116
203,395
262,458
465,853
369,304
15,060
11,252
26,312
32,046
107,645
307,883
415,528
289,336
122,705
319,135
441,840
321,382
80,690
(56,677)
24,013
47,922
-
-
-
-
80,690
(56,677)
24,013
47,922
49,798
84,200
133,998
86,076
130,488
27,523
158,011
133,998

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. The attached notes form part of these financial statements.

12

Clrcle Community Ltd Balance sheet As at 31 Maych 2022 2022 2022 2021 2021 Fixed assets: Tan9ible assets 2.130 Current assets: Debtr)rs Cash at bank and in hand 10 54.107 284,858 338,965 21.415 140,602 162,017 Liabilities: Creditors.. amounts falling due within olle year 11 {181.%2 30,149 Net curront assets 157.003 131,868 Total ngt as8•ts 158.011 133.998 Fund8 Restricted funds Unreslricled fynds". General funds Total unrestricted funds 13 27.523 84,200 130.488 49,798 130.488 49,798 Total funds 158,011 133.998 For the hnan¢ial year ended 31 March 2022. the Charitable Company was enlrtled to exemption from audit under Section 477 of the Companies Act 2006 relating to small r￿MpanieS. - The members have not required the company to obtain an audf( of its accounts for the year in question in accordance with secb.on 476. The directors a¢know￿dge their responsibilities for cOmpl￿ng wth the requirements of the Act with respect lo accounting records and for the preparation of accounts. 22 November 2022 Approvedbythetrusteeson....................................andsignedontheirbehalfty. Robert Coe Trusts8 Company r8gistr4tion no. 07667918 The attached note5 form part of the financial statements.

Circle Community Ltd Notes to the financial statements For the year ended 31 March 2022

1 Accounting policies

a) Basis of preparation

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 UK and Republic of Ireland (FRS 102 - effective 1 January 2015) - Charities SORP (FRS 102) and the Companies Act 2006.

The charitable company meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

b) Going concern

The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern. The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

c) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

d) Donations of gifts, services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution.

On receipt, donated gifts, professional services and donated 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 services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

e) Interest receivable

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.

f) Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific projects being undertaken by the charity.

14

Circle Community Ltd Notes to the financial statements For the year ended 31 March 2022

1 Accounting policies (continued)

g) Expenditure and irrecoverable VAT

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

h) Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance and governance costs which support the Trust's charitable activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities.

i) Tangible fixed assets

j) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

k) Cash at bank and in hand

Cash at bank and cash 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.

l) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

m) Financial instruments

The charity 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.

n) Pensions

The charity operates a defined contribution pension scheme under auto-enrolment.

15

Circle Community Ltd Notes to the financial statements For the year ended 31 March 2022

2 Income from donations and grants

Donations, fundraising and small grants
BBC Children in Need
Charities Aid Foundation
Drapers Charitable Fund
Department for Work and Pensions
Fitch Ratings
Greater London Authority Young People's Fund
Henry Smith Charity
Landsec
LB Lewisham
LB Tower Hamlets
London Community Response
London Stock Exchange Group Foundation
Paddington Development Trust
Peter Cruddas Foundation
Salters Charitable Foundation
The Fore
The London Community Foundation
The Skinners' Company Lawrence Atwell's Charity
The Society Foundation
UBS
United Way
Coronavirus Job Retention Scheme
National Lottery Community Fund Reaching
Communities		 Unrestricted
Restricted
Total
Total
2022
2022
2022
2021
£
£
£
£
5,395
1,000
6,395
3,507
-
21,802
21,802
31,720
-
29,880
29,880
-
-
1,875
1,875
7,500
-
47,500
47,500
-
-
-
-
2,000
-
34,790
34,790
59,323
26,667
-
26,667
-
-
20,000
20,000
28,873
42,195
10,038
52,233
-
10,000
6,333
16,333
-
-
-
-
11,765
15,000
-
15,000
-
-
71,862
71,862
113,232
-
4,878
4,878
25,592
2,000
-
2,000
15,000
-
2,500
2,500
-
-
-
-
5,000
-
10,000
10,000
10,000
10,000
-
10,000
10,000
-
-
-
234
-
-
-
10,000
-
-
-
6,800
-
-
-
5,436
111,257
262,458
373,715
345,982

3 Charitable activities

Charitable activities
Earned income: Training contracts
Miscellaneous
Income from investments
Bank interest		 Unrestricted
Restricted
Total
Total
2022
2022
2022
2021
£
£
£
£
92,102
-
92,102
22,486
-
-
-
720
92,102
-
92,102
23,206
Unrestricted
Restricted
Total
Total
2022
2022
2022
2021
£
£
£
£
36
-
36
116
36
-
36
116

4 Income from investments

16

Circle Community Ltd Notes to the financial statements For the year ended 31 March 2022

5 Analysis of expenditure

Staff costs
Other staff costs
Staff, Volunteer & Young Peoples travel
Training costs
Coaching fees
Room hire and other direct costs
Advertising and promotion
Evaluation
Grants paid to Circle Sports C.I.C.
Fundraising costs
Office Refurbishment - Lewisham
Rent, rates, utilities and other premises costs
Office supplies
Communications and IT
Insurance
Bank charges and other finance costs
Accountancy fees
Independent examination fee
Other legal and professional fees
Membership and subscriptions
Trustee expenses
Depreciation
Support costs
Governance costs
Total expenditure 2022
Total expenditure 2021		 Cost of
raising
funds
Charitable
activities
Support
costs
Governance
Costs
Total
2022
Total
2021
£
£
£
£
£
£
-
147,403
126,407
-
273,810
216,583
-
-
3,220
-
3,220
2,160
-
895
-
-
895
1,514
-
747
-
-
747
2,430
-
15,715
-
-
15,715
2,800
-
4,080
-
-
4,080
245
-
9,406
-
-
9,406
2,294
-
1,800
-
-
1,800
1,800
-
60,041
-
-
60,041
17,933
26,312
-
-
-
26,312
32,046
-
-
-
-
-
8,478
-
-
16,860
-
16,860
6,150
-
-
4,191
-
4,191
2,570
-
-
5,279
-
5,279
7,635
-
-
713
-
713
688
-
-
845
-
845
1,873
-
-
5,570
-
5,570
6,685
-
-
-
3,840
3,840
3,840
-
-
6,540
-
6,540
900
-
-
792
-
792
1,413
-
-
62
-
62
-
-
-
1,122
-
1,122
1,345
26,312
240,087
171,601
3,840
441,840
321,382
-
171,601
(171,601)
-
-
-
-
3,840
-
(3,840)
-
-
26,312
415,528
-
-
441,840
32,046
289,336
-
-
321,382

Of the total expenditure £319,135 was restricted (2021: £255,208) and £122,705 was unrestricted (2021: £66,174).

17

Circle Community Ltd

Notes to the financial statements

For the year ended 31 March 2022

6 Net income / (expenditure) for the year

This is stated after charging / (crediting):
Depreciation
Operating lease rentals: Property
Independent Examiner's remuneration		 2022
2021
£
£
1,122
1,345
2,528
1,896
3,200
3,200

7 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

Salaries and wages
Social security costs
Employer’s contribution to defined contribution pension schemes		 2022
2021
£
£
242,098
196,750
19,382
15,848
12,330
5,820
273,810
216,583

None of the employees received employee benefits in excess of 60,000 during the year between (2021: 0).

The total employee benefits including pension contributions of the key management personnel were £159,261 (2021: £139,803).

The charity trustees were not paid or received any other benefits from employment with the charity in the year (2021: £nil). One trustee was reimbursed travelling expenses of £62 (2021: £nil). No charity trustee received payment for professional or other services supplied to the charity (2021: £nil).

Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 16 (2021: 7).

8 Taxation

The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

18

Circle Community Ltd

Notes to the financial statements

For the year ended 31 March 2022

9 Tangible fixed assets

Cost
At the start of the year
Additions in year
Disposals in year
At the end of the year
Depreciation
At the start of the year
Charge for the year
At the end of the year
Net book value
At the end of the year
At the start of the year
All of the above assets are used for charitable purposes.
10
Debtors
Donations and grants receivable
Intercompany debtor - Circle Sports CIC
11
Creditors: amounts falling due within one year
Trade creditors
Taxation and social security
Deferred income
Other creditors
Accruals
12
Analysis of net assets between funds		 Cost
At the start of the year
Additions in year
Disposals in year
At the end of the year
Depreciation
At the start of the year
Charge for the year
At the end of the year
Net book value
At the end of the year
At the start of the year
All of the above assets are used for charitable purposes.
10
Debtors
Donations and grants receivable
Intercompany debtor - Circle Sports CIC
11
Creditors: amounts falling due within one year
Trade creditors
Taxation and social security
Deferred income
Other creditors
Accruals
12
Analysis of net assets between funds		 Cost
At the start of the year
Additions in year
Disposals in year
At the end of the year
Depreciation
At the start of the year
Charge for the year
At the end of the year
Net book value
At the end of the year
At the start of the year
All of the above assets are used for charitable purposes.
10
Debtors
Donations and grants receivable
Intercompany debtor - Circle Sports CIC
11
Creditors: amounts falling due within one year
Trade creditors
Taxation and social security
Deferred income
Other creditors
Accruals
12
Analysis of net assets between funds		 Fixtures,
Fittings
and
Equipment
Total
£
£
6,419
6,419
-
-
-
-
6,419
6,419
4,289
4,289
1,122
1,122
5,411
5,411
1,008
1,008
2,130
2,130
2022
2021
£
£
33,407
-
20,700
21,415
54,107
21,415
2022
2021
£
£
2,504
-
-
18,614
173,737
-
1,881
4,379
3,840
7,156
181,962
30,149
Tangible fixed assets
Net current assets
Net assets at the end of the year		 General
unrestricted Restricted
Total
funds
£
£
£
748
260
1,008
129,740
27,263
157,003
130,488
27,523
158,011
Analysis of net assets between funds
General Total
**unrestricted ** Restricted funds
£ £ £
Tangible fixed assets 748 260 1,008
Net current assets 129,740 27,263 157,003
Net assets at the end of the year 130,488 27,523 158,011

19

Circle Community Ltd

Notes to the financial statements

For the year ended 31 March 2022

13 Movements in funds

Restricted funds:
Back Your Future
Navigating the Gig Economy
Fixed Assets
Total restricted funds
Unrestricted funds:
General funds
Total unrestricted funds
Total funds		 At the start
of the year
Income
and gains
Expenditure
and losses
Transfers
At the end
of the year
£
£
£
£
£
64,256
257,458
(294,451)
-
27,263
19,310
5,000
(24,310)
-
-
634
-
(374)
-
260
84,200
262,458
(319,135)
-
27,523
49,798
203,395
(122,705)
-
130,488
49,798
203,395
(122,705)
-
130,488
133,998
465,853
(441,840)
-
158,011

Purposes of restricted funds

Back Your Future (previously known as Get Employed) programme is our main area of work and is funded by various funders including the Young Londoners Fund and Reaching Communities from The National Lottery Community Fund.

Navigating the Gig Economy is a programme which is funded by the Young Londoners Fund.

The restricted fund for Fixed Assets represents a grant received for the purchase of equipment which is being depreciated as per our depreciation policy.

14 Analysis of cash and cash equivalents

Cash at bank and in hand
Total cash and cash equivalents		 At the start
of the year
Cash flows
Other
changes
At the end
of the year
£
£
£
140,602
144,256
-
284,858
140,602
144,256
-
284,858

20

Circle Community Ltd

Notes to the financial statements

For the year ended 31 March 2022

15 Operating lease commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

Less than 1 year
1 - 5 years		 Property
Property
2022
2021
£
£
3,792
5,056
-
3,792
3,792
8,848

16 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. Each member is liable to contribute a sum not exceeding £10 in the event of the charity being wound up.

17 Related party transactions

Circle Sports CIC is the trading element of the charity which is a commercial shop used to generate funds and also train our beneficiaries. Mr D Unger, a trustee of the charity, and Ms T Humphreys, part of the key management personnel of the charity, are directors of Circle Sports CIC. There is an intercompany loan between the charity and Circle Sports CIC. At the balance sheet date the amount due from Circle Sports CIC was £20,700 (2021: £21,415).

There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.

21

Circle Community Ltd Notes to the financial statements For the year ended 31 March 2022

18 Previous reporting period information

18a Detailed comparatives for the statement of financial activities

Income from:
Donations
Charitable activities
Investment income
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net income for the year
Transfers between funds
Net movement in funds
Reconciliation of funds:
Funds brought forward as previously reported
Prior year adjustment
Funds brought forward as restated
Total funds carried forward		 Unrestricted
funds
Restricted
funds
Total
funds
2021
2021
2021
£
£
£
86,616
259,366
345,982
4,540
18,666
23,206
116
-
116
91,272
278,032
369,304
20,794
11,252
32,046
45,380
243,956
289,336
66,174
255,208
321,382
25,098
22,824
47,922
-
-
-
25,098
22,824
47,922
49,385
61,376
110,761
(24,685)
-
(24,685)
24,700
61,376
86,076
49,798
84,200
133,998

22

Circle Community Ltd Notes to the financial statements For the year ended 31 March 2022

18b Analysis of expenditure of previous reporting period

Cost of
raising Charitable Support Governance Total
funds activities costs Costs 2021
£ £ £ £ £
Staff costs - 199,497 17,086 - 216,583
Other staff costs - 2,160 - - 2,160
Staff, Volunteer & Young Peoples trave - 1,514 - - 1,514
Training costs - 2,430 - - 2,430
Coaching fees - 2,800 - - 2,800
Room hire and other direct costs - 245 - - 245
Advertising and promotion - 2,294 - - 2,294
Evaluation - 1,800 - - 1,800
Grants paid to Circle Sports C.I.C. - 17,933 - - 17,933
Fundraising costs 32,046 - - - 32,046
Office Refurbishment - Lewisham - - 8,478 - 8,478
Rent, rates, utilities and other premises - - 6,150 - 6,150
Office supplies - - 2,570 - 2,570
Communications and IT - - 7,635 - 7,635
Insurance - - 688 - 688
Bank charges and other finance costs - - 1,873 - 1,873
Accountancy fees - - 6,685 - 6,685
Independent examination fee - - - 3,840 3,840
Other legal and professional fees - - 900 - 900
Membership and subscriptions - - 1,413 - 1,413
Depreciation - - 1,345 - 1,345
32,046 230,673 54,823 3,840 321,382
Support costs - 54,823 (54,823) - -
Governance costs - 3,840 - (3,840) -
Total expenditure 2021 32,046 289,336 - - 321,382

23

Circle Community Ltd Notes to the financial statements For the year ended 31 March 2022

18c Analysis of net assets between funds of previous reporting period

Tangible fixed assets
Net current assets
Net assets at the end of the year		 General
unrestricted Restricted
Total
funds
£
£
£
1,496
634
2,130
48,302
83,566
131,868
49,798
84,200
133,998

18d Movements in funds for the previous reporting period

Restricted funds:
Back Your Future
Navigating the Gig Economy
Fixed Assets
Total restricted funds
Unrestricted funds:
General funds
Total unrestricted funds
Total funds		 At the start
of the year
Income
and gains
Expenses
and losses
Transfers
At the end
of the year
£
£
£
£
£
50,557
266,143
(252,444)
-
64,256
10,049
11,655
(2,394)
-
19,310
770
234
(370)
-
634
61,376
278,032
(255,208)
-
84,200
24,700
91,272
(66,174)
-
49,798
24,700
91,272
(66,174)
-
49,798
86,076
369,304
(321,382)
-
133,998

24