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2024-03-31-accounts

Charity registration number 1145291

Company registration number 07667918 (England and Wales)

CIRCLE COMMUNITY

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

CIRCLE COMMUNITY

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees J Montague
R Coe
R Butler
D Unger
M Gerrard
D Denisov
N Adubofour
Secretary D Unger
Charity number 1145291
Company number 07667918
Registered office 136 Kingsland High Street
London
E8 2NS
Independent examiner Frances Wilde FCCA DChA
Warner Wilde
Chartered Certified Accountants
4 Marigold Drive
Bisley
Surrey
GU24 9SF
Bankers The Charity Bank Limited
Fosse House
182 High Street
Tonbridge
TN9 1BE
Nat West Bank PLC
120 High Street
Barnet
EN5 5XQ

CIRCLE COMMUNITY

CONTENTS

Page
Trustees' report 1 - 9
Independent examiner's report 10
Statement of financial activities 11
Balance sheet 12
Notes to the financial statements 13 - 25

CIRCLE COMMUNITY LTD (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES’ REPORT (INCLUDING DIRECTORS REPORT)

FOR THE YEAR ENDED 31 MARCH 2024

The Trustees are pleased to present their report including the financial statements of Circle Community Ltd (the “Charity”) for the year ended 31 March 2024.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 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 UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

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:

1) The relief and support of those in need by reason of youth, age, disability, financial hardship or other disadvantage and their families and carers by;

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;

3) To promote social and workplace inclusion of those in need by reason of youth, age, disability, financial hardship or other disadvantage;

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;

5) The relief of unemployment and other hardship for the public benefit;

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

CIRCLE COMMUNITY LTD (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES’ REPORT (INCLUDING DIRECTORS REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

young people aged 16-30 to acquire and develop workplace skills, capabilities and the desire to secure and sustain permanent employment, education or training.

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.

CIRCLE COMMUNITY LTD (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES’ REPORT (INCLUDING DIRECTORS REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

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

J Montague R Coe R Butler D Unger M Gerrard C Moreno (Resigned 27 July 2023) D Denisov N Adubofour

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.

WHY OUR WORK IS NEEDED

“The Circle Collective team is ideal for individuals who lack confidence and require a support system they may not be receiving. Being unemployed can have a significant impact on someone not only physically but emotionally. Joining Circle Collective provides support to the unemployed and encourages them to continue trying and provides lots of opportunities. Thank you to everyone at Circle, I would encourage others to join! Joining Circle Collective has given me a huge amount of support to encourage me to keep on applying for jobs. I thank the team for the moral and professional support given.”

M, aged 18, Retail Team Member

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.

According to the Office for National Statistics (ONS), 4.4% of people were unemployed in the period between February-April 2024, the highest rate since September 2021. Unemployment rates continue to remain disproportionately higher for young people with 11.2% of 18–24-year-olds unemployed in January to March 2024 vs 10.9% a year earlier. 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.

CIRCLE COMMUNITY LTD (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES’ REPORT (INCLUDING DIRECTORS REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

“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 1380 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, education or training. We provide them with advisors, advocates, role models, mentors, connectors, peer support and above all, a safe space.

ACHEIVEMENTS AND PERFORMANCE

During the financial year 2020/21, at the height of the Covid 19 pandemic, we saw a decrease in performance and outcomes as we were all under the government’s lockdown restrictions and the economy had slowed down to a crawl. In 2021/22 we saw a huge bounce back in the economy with our highest level of recorded outcomes and performance levels as the economy re-opened and roles were created for young people via the Kickstart scheme with a disproportionately large amount of unemployed young people in the labour market desperate for support to gain employment.

For the year 2023/24 we have seen our best year to date, with increased outcomes as a direct result of having a third delivery site in Canary Wharf within the borough of Tower Hamlets. This new site added an additional set of staff including another Employment Coach providing the capacity for a further 120 new starts per year. New aspects to the programme such as additional wellbeing sessions and navigating the gig economy sessions have improved our service, alongside monthly feedback sessions that capture young people’s opinions which feeds into our delivery model.

A high percentage of the young people we supported were still experiencing high levels of isolation and anxiety, directly linked to their experience in the pandemic, and we provided young people with a safe space and a sense of purpose and routine during these tumultuous times.

Our delivery model included the following:

CIRCLE COMMUNITY LTD (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES’ REPORT (INCLUDING DIRECTORS REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

meditation, where participant young people wore eye masks and were supported by our Wellbeing Coach.

New location in Canary Wharf

A major achievement of the past year was opening a brand-new site in the heart of Canary Wharf and embedding ourselves into this new borough, becoming an essential part of the local provision for supporting young people back into work. We have spent several years working towards this goal with Canary Wharf Group, hampered by the lockdowns of Covid and the slow return to normal footfall levels within Canary Wharf. Footfall levels at the Wharf now exceed 2019 levels by over 20%, with many now viewing Canary Wharf as a shopping destination in its own right, rather than just a shopping area for the office workers.

This new location represents an exciting opportunity for us to recalibrate and expand our model. We are looking to test a broader corporate focused model, using the space to showcase our approach to potential partners within this area of highly concentrated wealth, gaining funding, employment opportunities and corporate volunteering across a wide variety of sectors, all supporting us to increase the number of young people finding work and at a faster rate, bringing down our delivery unit costs.

CIRCLE COMMUNITY LTD (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES’ REPORT (INCLUDING DIRECTORS REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

317 young people engaged with our Back Your Future employability programme

243 completed the programme, taking six weeks on average

193 of those young people gained an Employability, Education or Training outcome with 170 going into sustained employment and 23 into higher education or training.

CASE STORY

Abidah

Sales Assistant @ Holland & Barrett

“I had finished my education in May 2023 and immediately started applying for jobs as I really wanted to get into work. I did manage to get a few interviews but nothing that went anywhere. I maintained my focus and just kept on applying and applying for months.

I started to feel down because my hard work was not paying off and I was not feeling positive about my future. At this point I decided to sign up to Universal Credit at the Job Centre and after 3 weeks I was referred to meet Jake and Matthew from Circle Collective at the Whitechapel JCP. They told me all about their programme and what they could do to help me so I thought I would give it a go.

Jake called me in immediately and after explaining what I would be doing, I was taken on to a shop induction with Huxley, who showed me how the shop works and started me on a shop shift the next day. They were both very supportive and I really like the store, it made me feel good to be there.

I started working on my CV with Shanna, she made it look better and Jake helped me add my new experiences at Circle Collective, so it looked better instantly. The retail staff like Bella and Margarita showed me how to do shop standards, taught me about the brands and I was even showed how to put a skateboard together by the shop manager which was completely new to me.

One of the sessions that really helped me was the Gig Economy / Rights and Responsibilities session with Tayo. Before I would not have read my contract but now, I know what to look out for and feel confident in knowing my rights.

CIRCLE COMMUNITY LTD (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES’ REPORT (INCLUDING DIRECTORS REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

My new CV helped me get an interview at Park Plaza Hotel Westminster Bridge and Circle Collective referred me to a role at Holland & Barrett in Canary Wharf. I interviewed for both and was offered the Holland & Barrett job on the spot! The CV support, the shop standards sessions, and the interview techniques with Matthew, all helped me get a job which I will be starting straight away!”

Future plans

We are keen to further expand our geographical footprint and reach more young people across London by working with young people from surrounding boroughs who have easy access to our three existing sites (in Lewisham, Dalston and Canary Wharf), whilst looking at the best location for a fourth site.

We are in discussion with our long-term corporate partners, LandSec 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 aim to expand our employer partnerships and strengthen relationships with corporate partners in order to create a steady pipeline of exclusive job vacancies and opportunities for our young people.. Together with Canary Wharf Group we have created a new ‘Entry Level Jobs Hub’ partnership. Through this, Canary Wharf Group introduces us to all new employers and businesses moving to the Wharf so that we can support with their entry level recruitment needs. This initiative has already seen early success with multiple companies such as Tribe, Roe, Marceline, At Home Pizza, Holland & Barrett, Moleskine and Capital Karts hiring our young people as a result of these connections.

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

CIRCLE COMMUNITY LTD (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES’ REPORT (INCLUDING DIRECTORS REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

with hundreds of hours of pro bono support including mentoring, workshops and career experiences and other in-kind donations.

We would like to highlight the support of our corporate partners, in particular the Canary Wharf Group, our landlords at the Jubilee Mall, Canary Wharf and the driving partner in our new Entry Level Jobs Hub; Landsec, who besides providing us with long term financial support are also our landlords in Lewisham shopping centre; UBS who fund our East London locations and British Land, with whom we have just started working around employability at Broadgate.

We would also like to thank grant giving organisations who supported us in 2023-24 including UK Youth, Quintessentially Foundation, Chesterhill Charitable Trust, Garfield Weston Foundation, Jack Petchey Foundation, Peter Cruddas Foundation, Forrester Family Trust, Henry Smith Charity, The Drapers’ Company, The Skinners’ Company Lawrence Atwell’s Charity, East End Community Foundation, Isle of Dogs Community Chest, The Berkeley Foundation, and Tower Hamlets Tackling Poverty Fund.

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 £407,339 (2023: £451,093) and expenditure was £499,301 (2023: £486,555) giving us a deficit for the year of £91,962 (2023: deficit of £35,462).

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 2023/24 this amount is calculated as minimum £93,410 and maximum £124,825.

At 31 March 2024, our total free reserves were just £23,214. We keep at least £10,000 of our reserves in a dedicated interest-bearing bank account held at Charity Bank.

CIRCLE COMMUNITY LTD IA COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT (INCLUDING DIRECTORS REPORT) ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 TRUSTEES. RESPONSIBLITIES IN RELATION TO FINANCIAL STATEMENTS The Trustees (who are also directors of Circle Communty Ltd for the purposes of company lawl are responsible for preparing the Directors, and Trustees, Report and the ftnancial slalemenls in accordance wrth applicable law and Unf(ed Kingdom Accounting Standards. Company Law requires the Trustees to prepare financial statements for each ffnancial year which give a true and fair view of the state of the Charity's finances. In preparing the financial ststements, the Trustees are required to- select suitable accounting policies and Iheri apply them consistently., observe the methods and principles in the Charities Statements of Recommended of Recommended Practise., make judgements and estimates that are reasonable and prudent- state whether applicable UK Accounting Stsndards have been followed, subject to any material departures disdosed and explained in the financial ststements", and prepare the financial slalemenls on the going concern basis unless il is inappropriate to presume that the Charity will continue in business. The Trustees a￿ responsible for keeping proper accounting records that disclose wrth reasonable accuracy at any lime the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. This report has been prepared in accordance with the special provisions relating lo small companies within Part 15 of the Companies Act 2006 APPROVED BY THE BOARD OF DIRECTORS AND SIGNED ON ITS BEHALF BY Robert Cog Trnasurer Dats 291,.1,

CIRCLE COMMUNITY INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF CIRCLE COMMUNITY I report to thè trustetss on my examination of the financial statemenis of Circle Communty (the charity) for the year ondod 31 March 2024. R•sponslbllEtlès and basls of raport As the trustees of the charity land also ils directors for the purposes of company18wl YOLJ are responsible for the preparation of the financial statemenis in accordance with the requirements of the Companies Act 2006 Ilhe 2006 Act}. H8ving satisfiÈd mysèlf that tha finaneJal statèmènts of thé charity arè not requlrèd tr) ba aUdIt￿ under P8rt 16 of the 2006 Aot and are eligible for indgpendent examin8lion, I report in resp8¢1 of my exarnination of the charity's financial statements Carried out under section 145 of the Ch8rities Act 2011 (the 2011 Act). In carrying out my examination I have followed all thg applicable Directions given by the Charity Commi$$ion under section 14515llbl of the 2011 Ad. Independent examiner's statement Since the charity's gross income exceeded £250,000 your 8xamin8r must be a mèmbar ot a Lw)dy listed in section 145 of the 2011 Act. I confirm that l am qualrfied t(> undertake the èxaminatlon beeausè l am a member of the Asso¢i81ion ol Chartered Certified A¢countants, which is one of the listed bodies. I have completed my examination. I confimi that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respecl.. accounting records were not kept in respect of the charity as TequiTed by Section 386 of the 2006 Act., or thè financial statèmènts do not aC¢OTd with those records-, or the financial statements do not comply wlth thè accounting raqulramants of sèctlon 396 of th& 2(106 Act othar ihan any requirement that the accounts give a twe and fair v16w whid) is ntst a matter consldered as part of an independent examination; or the financial statements 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 wth the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. I hav8 no concèms and hav8 COMÈ across no other matters connection with the examination to which 8ttenlion should be drawn in this report In order lo enable a proper understanding of the financial statements lo be reached. Franc•s Wlld• FCCA DChA Wamerwilde Chartèred Cèrtrfièd Aecounlanls 4 Marigold Drive Bisley Surrey GU24 9SF Datad: ....fy.. Kl (w 1£) 10-

CIRCLE COMMUNITY

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2024

Unrestricted
Restricted
funds
funds
2024
2024
Notes
£
£
Income from:
Donations and legacies
3
214,192
-
Charitable activities
4
13,816
179,018
Investments
5
314
-
Total income
228,322
179,018
Expenditure on:
Raising funds
6
24,283
-
Charitable activities
7
281,505
188,467
Total expenditure
305,788
188,467
Net expenditure and
movement in funds
(77,466)
(9,449)
Reconciliation of funds:
Fund balances at 1 April 2023
100,680
21,869
Fund balances at 31 March
2024
23,214
12,420		 Total
Unrestricted
Restricted
funds
funds
2024
2023
2023
£
£
£
214,192
69,370
-
192,834
30,445
351,162
314
116
-
407,340
99,931
351,162
24,283
27,798
214
469,972
101,941
356,602
494,255
129,739
356,816
(86,915)
(29,808)
(5,654)
122,549
130,488
27,523
35,634
100,680
21,869		 Total
2023
£
69,370
381,607
116
451,093
28,012
458,543
486,555
(35,462)
158,011
122,549

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

CIRCLE COMMUNITY BALANCE SHEET ASAT31 MARCH 2024 2024 2023 Fued assets Tangible assets 14 5.257 363 Current assots Debtors Cash at bank and in hand 15 29.938 145,832 49.676 205.903 175.770 255,579 Crèditorn: amourkts falling due within one year 16 (145.3931 {133.393) P4èt current assets 30.377 122,186 Totsl assèts less ¢ur•nt litibililias 35,634 122,549 The tsnds of the charity Restricted irwme fvnds Unrestrided fvnds 19 12.420 23.214 21,869 100.680 35,634 122,549 The company is entitied to the exempb.on from the audrt requFrement contaKned in sedion 477 of the Companies Ac 2006, for the year ended 31 March 2024_ The directors acknowledge their ￿sponSIbIl[beS for complyÈng the requiremerts of the Companiès A¢* 20C6 th respsct to arLOUnting rwrds and the preparation of financaal statements. The members have not required the o)mpany to obtain an audit of its ffinanc#￿ s￿tem￿rtS forthe year in question in a￿d8n￿ with seGtion 476. These financaal siatements have been prepared in aC£Ord￿ ￿ the provisions applicabte to cijmpaniès subject to the small companies regime. The finandal statements were approved by the twstees on....... .... ..... .... Trustso Company registration number 07667918 {EnglarbJ and Wales) 12-

CIRCLE COMMUNITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting policies

Charity information

Circle Community is a private company limited by guarantee incorporated in England and Wales. The registered office is 136 Kingsland High Street, London, E8 2NS.

1.1 Accounting convention

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

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

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

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

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

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

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

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

1.4 Income

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

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

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

CIRCLE COMMUNITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting policies

(Continued)

1.5 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. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Costs of raising funds comprise of trading costs and the costs incurred by the charity in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose.

Expenditure on charitable activities includes the costs of delivering services to further the purposes of the charity and their associated support costs.

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

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings

straight line basis over 5 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

Items of equipment are capitalised where the purchase price exceeds £1,000.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Cash and cash equivalents

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

CIRCLE COMMUNITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting policies

(Continued)

1.9 Financial instruments

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

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

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently measured at their settlement value.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.10 Employee benefits

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

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

1.11 Retirement benefits

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

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

CIRCLE COMMUNITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

3 Income from donations and legacies

Donations and gifts
Grants
Grants
Henry Smith Charity
Lawrence Attwell
London Borough of Lewisham
British Land Company
Garfield Weston
Jack Petchley
UK Youth Fund
Elba
Tower Hamlets Council
Landsec Futures
Other
Income from charitable activities
Unrestricted
Restricted
funds
funds
2024
2024
£
£
Charitable activities
Training and other
income
13,816
-
Performance related
grants
-
177,311
Other income
-
1,707
13,816
179,018		 Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
2,291
4,871
211,901
64,499
214,192
69,370
40,000
40,000
10,000
10,000
32,200
9,999
7,500
-
22,500
-
17,800
-
20,000
-
11,768
-
25,133
-
12,500
-
12,500
4,500
211,901
64,499
Total
Unrestricted
Restricted
Total
funds
funds
2024
2023
2023
2023
£
£
£
£
13,816
30,445
-
30,445
177,311
-
351,162
351,162
1,707
-
-
-
192,834
30,445
351,162
381,607		 Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
2,291
4,871
211,901
64,499
214,192
69,370
40,000
40,000
10,000
10,000
32,200
9,999
7,500
-
22,500
-
17,800
-
20,000
-
11,768
-
25,133
-
12,500
-
12,500
4,500
211,901
64,499
Total
Unrestricted
Restricted
Total
funds
funds
2024
2023
2023
2023
£
£
£
£
13,816
30,445
-
30,445
177,311
-
351,162
351,162
1,707
-
-
-
192,834
30,445
351,162
381,607
69,370
40,000
10,000
9,999
-
-
-
-
-
-
-
4,500
64,499
Total
2023
£
30,445
351,162
-
381,607

4 Income from charitable activities

CIRCLE COMMUNITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

4 Income from charitable activities

(Continued)

Performance related grants analysis

Charitable Charitable
activities activities
2024 2023
£ £
Charities Aid Foundation - 94,394
National Lottery Community Fund Reaching Communities - 87,605
East End Community Fund 30,750 40,625
Connected Futures 49,200 18,900
London Borough of Lewisham - 27,413
YLF Hackney - Gig Economy 9,253 35,283
UBS 68,858 17,086
Drapers Charitable Fund - 8,000
Tower Hamlets Council 8,000 -
HitClubUK - 9,437
Other 11,250 12,419
177,311 351,162

5 Income from investments

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Interest receivable 314 116

6 Expenditure on raising funds

Unrestricted
Restricted
funds
funds
2024
2024
£
£
Fundraising and publicity
Advertising
-
-
Other fundraising costs
24,283
-
24,283
-		 Total
Unrestricted
Restricted
funds
funds
2024
2023
2023
£
£
£
-
-
214
24,283
27,798
-
24,283
27,798
214		 Total
2023
£
214
27,798
28,012

CIRCLE COMMUNITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

7 Expenditure on charitable activities

Charitable Charitable
activities activities
2024 2023
£ £
Direct costs
Staff costs 285,472 229,386
Depreciation and impairment 297 -
Other staff and volunteer costs 3,466 3,188
Training costs 1,595 6,454
Room hire and other direct costs - 5,750
Evaluation 1,800 1,800
Rent, rates, utilities and other premises costs 24,452 19,672
Advertising 689 1,408
Event costs 2,732 -
Expensed equipment 3,339 -
Office supplies 3,601 3,134
Coaching fees 7,360 13,174
Other legal and professional fees 7,307 1,470
Trustee expenses 414 278
342,524 285,714
Grant funding of activities (see note 8) 92,206 97,842
Share of support and governance costs (see note 9)
Support 32,908 70,316
Governance 2,334 4,671
469,972 458,543
Analysis by fund
Unrestricted funds 281,505 101,941
Restricted funds 188,467 356,602
469,972 458,543
8 Grants payable
Charitable Charitable
activities activities
2024 2024
£ £
Grants to institutions:
Other 92,206 97,842

CIRCLE COMMUNITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

9 Support costs allocated to activities

Staff costs
Depreciation
Communications and IT
Insurance
Memberships and subscriptions
Bookkeeping and accountancy
Other costs
Governance costs
Analysed between:
Charitable activities
Governance costs comprise:
Independent Examiners fees
Trustee expenses
Bank charges and other finance costs
10
Net movement in funds
The net movement in funds is stated after charging/(crediting):
Depreciation of owned tangible fixed assets		 2024
£
-
154
12,796
652
719
18,587
-
2,334
35,242
35,242
2024
£
1,800
-
534
2,334
2024
£
451		 2023
£
56,347
645
12,169
773
369
-
13
4,671
74,987
74,987
2023
£
3,840
304
527
4,671
2023
£
645

11 Trustees

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

12 Employees

The average monthly number of employees during the year was:

2024 2023
Number Number
22 22

CIRCLE COMMUNITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

12
Employees
Employment costs
Wages and salaries
Social security costs
Other pension costs
The number of employees whose annual remuneration was more than £60,000
is as follows:
£60,001 to £70,000
£70,001 to £80,000
Remuneration of key management personnel
The remuneration of key management personnel was as follows:
Aggregate compensation		 (Continued)
2024
2023
£
£
251,263
250,296
19,909
21,376
14,300
14,061
285,472
285,733
2024
2023
Number
Number
-
1
1
-
2024
2023
£
£
183,956
199,589		 (Continued)
2024
2023
£
£
251,263
250,296
19,909
21,376
14,300
14,061
285,472
285,733
2024
2023
Number
Number
-
1
1
-
2024
2023
£
£
183,956
199,589
285,733
2023
Number
1
-
2023
£
199,589

13 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

CIRCLE COMMUNITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

14 Tangible fixed assets

Cost
At 1 April 2023
Additions
At 31 March 2024
Depreciation and impairment
At 1 April 2023
Depreciation charged in the year
At 31 March 2024
Carrying amount
At 31 March 2024
At 31 March 2023
15
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
16
Creditors: amounts falling due within one year
Notes
Deferred income
17
Trade creditors
Other creditors
Accruals
17
Deferred income
Other deferred income		 Fixtures and
fittings
£
6,419
5,345
11,764
6,056
451
6,507
5,257
363
2024
2023
£
£
9,647
-
19,759
49,676
532
-
29,938
49,676
2024
2023
£
£
125,630
112,946
14,238
14,604
1,925
2,003
3,600
3,840
145,393
133,393
2024
2023
£
£
125,630
112,946		 Fixtures and
fittings
£
6,419
5,345
11,764
6,056
451
6,507
5,257
363
2024
2023
£
£
9,647
-
19,759
49,676
532
-
29,938
49,676
2024
2023
£
£
125,630
112,946
14,238
14,604
1,925
2,003
3,600
3,840
145,393
133,393
2024
2023
£
£
125,630
112,946
11,764
6,056
451
6,507
5,257
363
2023
£
-
49,676
-
49,676
2023
£
112,946
14,604
2,003
3,840
133,393
2023
£
112,946

CIRCLE COMMUNITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

17 Deferred income (Continued)
Deferred income is included in the financial statements as follows:
2024 2023
£ £
Deferred income is included within:
Current liabilities 125,630 112,946
Movements in the year:
Deferred income at 1 April 2023 112,946 173,737
Released from previous periods (112,946) (173,737)
Resources deferred in the year 125,630 112,946
Deferred income at 31 March 2024 125,630 112,946
18 Retirement benefit schemes
2024 2023
Defined contribution schemes £ £
Charge to profit or loss in respect of defined contribution schemes 14,300 14,061

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

19 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At 1 April Incoming Resources At 31 March
2023 resources expended 2024
£ £ £ £
- - - -
Back Your Future 19,511 164,420 (176,559) 7,372
Navigating the Gig Economy 2,358 9,253 (11,611) -
Fixed Assets - 5,345 (297) 5,048
21,869 179,018 (188,467) 12,420

CIRCLE COMMUNITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

19 Restricted funds (Continued)
Previous year: At 1 April Incoming Resources At 31 March
2022 resources expended 2023
£ £ £ £
Back Your Future 27,263 315,878 (323,630) 19,511
Navigating the Gig Economy - 35,284 (32,926) 2,358
Fixed Assets 260 - (260) -
27,523 351,162 356,816 21,869

Back Your Future: 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 funded by the Young Londoners Fund

20 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 April Incoming Resources At 31 March
2023 resources expended 2024
£ £ £ £
General funds 100,680 228,322 (305,788) 23,214
Previous year: At 1 April Incoming Resources At 31 March
2022 resources expended 2023
£ £ £ £
General funds 130,488 99,931 (129,739) 100,680

21 Analysis of net assets between funds

Unrestricted
Restricted
funds
funds
2024
2024
£
£
At 31 March 2024:
Tangible assets
209
5,048
Current assets/(liabilities)
23,005
7,372
23,214
12,420		 Total
2024
£
5,257
30,377
35,634

CIRCLE COMMUNITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

21 Analysis of net assets between funds

Analysis of net assets between funds (Continued)
Unrestricted Restricted Total
funds funds
2023 2023 2023
£ £ £
At 31 March 2023:
Tangible assets 363 - 363
Current assets/(liabilities) 100,317 21,869 122,186
100,680 21,869 122,549

22 Operating lease commitments

Lessee

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 2024
£
8,196
18,441
26,637		 2023
£
7,934
26,637
34,571

23 Related party transactions

Transactions with related parties

During the year the charity entered into the following transactions with related parties:

Circle Sports C.I.C. 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 Mrs T Humphreys, part of the key management personnel of the charity, are directors of Circle Sports C.I.C.

CIRCLE COMMUNITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

23 Related party transactions

(Continued)

The following amounts were outstanding at the reporting end date:

Amounts owed by related Amounts owed by related
parties parties
2024 2023
Balance Net Balance Net
£ £ £ £
Circle Sports C.I.C. 19,758 19,758 19,758 19,758
19,758 19,758 19,758 19,758