2020-12-31-accounts - The Centre For Enterprise, Markets And Ethics

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THE CENTRE FOR ENTERPRISE, MARKETS AND ETHICS

Accounts: 31st December 2020

The Centre for Enterprise, Markets and Ethics

Report of the Trustees and accounts for the year ending 31st December 2020

Company number: 08137333

Registered charity number: 1148345

The Centre for Enterprise, Markets and Ethics

Report of the Trustees and accounts for the year ending 31st December 2020

Principal office and Advisers

Registered office: 1[st] Floor 31 Beaumont Street Oxford OX1 2NP Solicitors: Hunters 9 New Square Lincoln’s Inn London WC2 3QN Bankers: HSBC 65 Cornmarket Street Oxford OX1 3HY Investment Managers: CCLA Investment Management Senator House 85 Queen Victoria Street London EC4V 4ET

Accountants and independent examiners: A.J. Carter & Co 22b High Street Witney Oxfordshire OX28 6RB

The Centre for Enterprise, Markets and Ethics

Report of the Trustees and accounts for the year ending 31st December 2020

The Trustees have pleasure in presenting their report and accounts for the Centre for Enterprise, Markets and Ethics (“the Centre”) for the year ending 31st December 2020.

Constitution and governance

The Centre was incorporated as a company limited by guarantee on 10[th] July 2012 and registered as a charity with the Charity Commission on 30[th] July 2012. The governance of the company is determined by its Memorandum and Articles of Association. The Centre is governed by a body of Trustees, who are also the Directors of the company.

Lord Griffiths of Fforestfach

Dato Dr Kim Tan

Philip Wood

Carl Ferenbach

Anne Devlin

Joanna Moriarty

Richard Godden

The Board meets in person or by phone at least four times a year. The Trustees are responsible for any recommended appointments to the Board, taking account of the skills needed, and for ensuring all trustees are trained and equipped to undertake their role. The day‐to‐day management of the Centre is delegated to the Director, Revd Dr Richard Turnbull. Financial matters are conducted under standing financial instructions which set limits on the approval of payments by staff and specifying matters to be approved by one or more trustees. The Board undertakes an annual review of the risks faced by the Charity.

Company secretary: Revd Dr Richard Turnbull

Objectives

The objectives of the charity as set out in the governing document are as follows:

(1) The advancement of education to establish the merit and value of fostering the growth of an enterprise culture in business and society with a moral foundation, in particular but not exclusively by original research and study into areas of economics and business primarily through the application of the principles of Christian faith and theology.
(2) The relief of poverty and suffering in developed and developing countries through the promotion, understanding and development of investment in enterprise (whether social or otherwise).

Public benefit

The Centre’s public benefit‐ aimed at the general public and mankind generally – is achieved through education and training, the promotion of the relief of poverty and religious activities. This is

The Centre for Enterprise, Markets and Ethics

Report of the Trustees and accounts for the year ending 31st December 2020 (cont)

achieved through advocacy, advice, information, the sponsorship of research and by acting in partnership with other bodies with similar objectives.

Review of activities, financial results and future developments

The main focus of the Centre for the year has been to further its objectives through:

(a) Arranging a series of events and seminars
(b) Furthering the execution of a research programme
(c) Developing relationships with other organisations with similar interests
(d) Continuing the development of a publications’ series
(e) Developing and planning a project around the Ethics and Theology of Business

The Centre has undertaken a number of activities during the period. Events have been held primarily online due to Covid‐19. These have dealt with ethical and topical matters relating to the enterprise economy. The Centre continues to develop a research and publications programme dealing with theological, historical and contemporary approaches to enterprise, including how these might contribute to the relief of poverty. In pursuing their activities the Trustees have had regard for the guidance of the Charity Commission on public benefit. The Trustees have worked with donors and others in the development of a project entitled the Ethics and Theology of Business which is expected to last for 3 years. The Trustees have transferred donation income of £100,000 to a designated fund for this purpose and made an initial transfer of £20,000 from reserves.

The Trustees consider the performance for the period to be satisfactory. The Centre’s work has been well received amongst donors, those that benefit from the work and the wider business and related communities. The principal source of funds is private donation. The surplus for the period across all funds was £161,139 (2019: £1,288). Reserves are held in a variety of short‐term and long‐ term deposit funds. The Board’s reserve policy is to hold approximately 24 months funding in general reserves. The Board considers regularly the level and designation of reserves. The Trustees intend to develop and build upon these activities in the year ahead.

Statement of directors’ responsibilities in respect of the accounts

The directors are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with general applicable law and United Kingdom Accounting Standards (United Kingdom General Accepted Accounting Practice). The law applicable to charities in England and Wales requires the directors to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity 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 the Charities SORP;
Make judgments and estimates that are reasonable and prudent;
State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

The Centre for Enterprise, Markets and Ethics

Report of the Trustees and accounts for the year ending 31st December 2020 (cont)

Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

On behalf of the Board

Lord Griffiths of Fforestfach Director 18[th] March 2021

The Centre for Enterprise, Markets and Ethics

Independent Examiner’s Report to the Trustees

I report to the trustees on my examination of the accounts of The Centre for Enterprise, Markets and Ethics for the year ended 31st December 2020.

Responsibilities and Basis of Report

As the charity’s trustees (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 charitable 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 Statement

Since the charitable 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.

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:

accounting records were not kept in respect of the charitable company as required by section 386 of the 2006 Act; or
the accounts do not accord with those records; or
the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the accounts have not been prepared in accordance with methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

MDA Gyde FCA DChA A J Carter & Co Chartered Accountants

22b High Street Witney Oxon OX28 6RB 18[th] March 2021

The Centre for Enterprise, Markets and Ethics

Statement of Financial Activities for the year ending 31st December 2020 (incorporating the Income and Expenditure Account for the period)

Notes
		Unrestricted		Restricted	Total	Total
			2020	2020	2020	2019
			£	£	£	£
	Incoming Resources
	Incoming resources from generated funds
	Voluntary income (donation/grant)		320,956	105,799	426,755	347,324
	Investment income		3,439	‐	3,439	3,424
	Other incoming resources		6,045	‐	6,045	3,300
			‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐
	Total income resources		330,440	105,799	436,239	354,048
			‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐
	Resources Expended
	Costs of generating funds
	Costs of generating voluntary income		1,500	‐	1,500	1,500
4	Charitable activities		208,767	64,833	273,600	351,260
		‐‐‐‐‐‐‐‐‐‐‐‐		‐‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐
	Total resources expended		210,267	64,833	275,100	352,760
		‐‐‐‐‐‐‐‐‐‐‐‐‐		‐‐‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐
	Net income/net movement in funds		120,173	40,966	161,139	1,288
	Funds brought forward		425,478	1,207	426,685	425,397
		‐‐‐‐‐‐‐‐‐‐‐‐‐		‐‐‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐
	Funds carried forward	£545,651		£42,173	£587,824	£426,685
		========		========	=======	=======

The Company has no recognised gains and losses apart from the Income and Expenditure Account and, therefore, no separate statement of total recognised gains and losses has been prepared. The Statement of Financial Activities for the previous year is given at note 10.

The notes on pages 9 to 13 form part of these accounts.

The Centre for Enterprise, Markets and Ethics

Balance Sheet as at 31st December 2020

Notes
		2020	2019
		£	£
	Fixed assets
	Investments – cash equivalents on deposit	53,235	52,707
		‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐
	Current Assets
5	Debtors	9,687	10,787
	Current asset investments – cash equivalents on deposit	312,717	210,162
	Cash at bank and in hand	239,089	172,904
		‐‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐‐
		561,493	393,853
		‐‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐‐
	Liabilities
6	Creditors: amounts falling due within one year	26,904	19,875
		‐‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐‐
	Net current assets	534,589	373,978
		‐‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐‐
8	Net Assets	£587,824	£426,685
		========	========
7	The funds of the charity
	Unrestricted income funds	545,651	425,478
	Restricted funds	42,173	1,207
		‐‐‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐‐
		£587,824	£426,685
		========	========

For the year ending 31st December 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director’s responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476,

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

The accounts have been prepared in accordance with the special provisions relating to companies subject to the Small Companies Regime within part 15 of the Companies Act 2006. These accounts were approved by the Board of Directors and authorised for issue on 18[th] March 2021 and signed on their behalf by:

Lord Griffiths of Fforestfach – Director

Philip Wood – Director

The notes on pages 9 to 13 form part of these accounts.

The Centre for Enterprise, Markets and Ethics

Notes to the accounts for the year ending 31st December 2020

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 (FRS 102), effective from 1[st] January 2019, applicable UK Accounting Standards and the Companies Act 1985. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

(b) Income Recognition

Donation and grant income is recognised when received and Gift Aid due is recognised when the associated donation is received. Gifts received into the Friends of CEME account held by CAF America are paid to the Centre quarterly and recognised upon receipt by CEME. Income received in advance of a specific performance or provision of other specified service is deferred until the criteria for income recognition are met. 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.

(c) Resources expended

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. The costs of generating funds include direct costs associated with the receipt of donations into the CAF America Friends account.

(d) Debtors

Debtors and prepayments are recognised at the settlement amounts due.

(e) 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. Deposits with up to 12 months maturity are treated as current asset investments and over 12 months as fixed asset investments.

(f) 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.

(g) Pensions

The Charity operates a defined contribution scheme, the assets of which are held outside the Charity. The contributions by the Charity in the year are detailed in note 3.

The Centre for Enterprise, Markets and Ethics

Notes to the accounts for the year ending 31st December 2020 (cont)

Legal Status of the Charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £10.

3 Staffing costs

The average number of staff employed during the period was 2.2 (2019, 2.0). Staff costs were as follows:

	2020	2019
	£	£
Salaries	118,072	106,504
Social Security costs	12,660	10,903
Other pension costs	23,208	23,208
	‐‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐‐
	£153,940	£140,615
	========	========
Employees earning more than £60,000 during the period:
	2020	2019
	No.	No.
£70,000‐£80,000	1	1
None of the Trustees have received any remuneration.

4 Charitable activities

	Unrestricted	Restricted	Total	Total
	2020	2020	2020	2019
	£	£	£	£
Salaries	153,940	‐	153,940	140,615
Premises	21,969	‐	21,969	23,387
Programme and research	23,514	64,833	88,347	174,633
Office, equipment and IT	6,512	‐	6,512	7,858
Legal and accounting	1,875	‐	1,875	1,995
Other governance costs	956	‐	956	2,772
	‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐‐
	£208,766	£64,833	£273,599	£351,260
	========	========	========	========

The Centre for Enterprise, Markets and Ethics

Notes to the accounts for the year ending 31st December 2020 (cont)

The full comparative figures for charitable activities are given below:

	Unrestricted	Restricted	Total	Total
	2019	2019	2019	2018
	£	£	£	£
Salaries	140,615	‐	140,615	133,196
Premises	23,387	‐	23,387	21,969
Programme and research	62,110	112,523	174,633	56,167
Office, equipment and IT	7,858	‐	7,858	7,493
Legal and accounting	1,995	‐	1,995	1,133
Other governance costs	2,772	‐	2,772	1,813
	‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐‐
	£238,737	£112,523	£351,260	£221,771
	========	========	========	========

5	Debtors
		2020	2019
		£	£
	Other debtors	8,887	10,087
	Prepayments	800	700
		‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐
		£9,687	£10,787
		=======	=======
6	Creditors: amounts falling due within one year
		2020	2019
		£	£
	Accruals and provisions	24,096	10,906
	Taxation and social security costs	2,808	8,969
		‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐
		£26,904	£19,875
		======	======

7 Analysis of charitable funds

Analysis of movements in unrestricted funds

Balance	Incoming	Resources	Transfers	Balance
1 Jan 2020	Resources	Expended		31 Dec 2020
£	£	£	£	£
General 425,478	230,440	(210,267)	(20,000)	425,651
Designated ‐	100,000	‐	20,000	120,000
(Project fund)
‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐‐
£425,478	£330,440	£(210,267)	‐	£545,651
========	========	========	========	========

The Centre for Enterprise, Markets and Ethics

Notes to the accounts for the year ending 31st December 2020 (cont)

Analysis of movements in restricted funds

	Balance	Incoming	Resources	Transfers	Balance
	1 Jan 2020	Resources	Expended		31 Dec 2020
	£	£	£	£	£
Soulful	1,207	105,799	(64,833)	‐	42,173
Enterprise
	‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐‐
	£1,207	£105,799	£(64,833)	‐	£42,173
	========	========	========	========	========

The General Fund comprises the free reserves of the charity.

The Project Fund has been designated by the Trustees to enable a 3‐year commitment to fund a series of activities under the theme of the Ethics and Theology of Business. Some donations received into the general fund are designated by the Trustees for this work and in addition the charity intends to support the project from its reserves.

The Soulful Enterprise Fund (restricted) receives funds from the Templeton Religion Trust and other restricted donations for the support of the Soulful Enterprise project overseen by the charity.

8 Analysis of net assets between funds

	General	Designated	Restricted	Total
	£	£	£	£
Fixed assets	53,235	‐	‐	53,235
Cash at bank and in hand	176,916	20,000	42,173	239,089
Net current assets	195,500	100,000	‐	295,500
	‐‐‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐‐‐
	£425,651	£120,000	£42,173	£587,824
	========	========	========	========

9 Future financial commitments

At 31st December 2020 the charity had annual commitments under non‐cancellable operating leases as set out below:

operating leases as set out below:
			2020	2019
Operating leases which expire in more than	5	years	£14,754	£14,754
			======	======

The Centre for Enterprise, Markets and Ethics

Notes to the accounts for the year ending 31st December 2020 (cont)

10 Statement of Financial Activities for the year ending 31st December 2019 (incorporating the Income and Expenditure Account for the period)

Notes
		Unrestricted		Restricted	Total	Total
			2019	2019	2019	2018
			£	£	£	£
	Incoming Resources
	Incoming resources from generated funds
	Voluntary income (donation/grant)		233,594	113,730	347,324	221,577
	Investment income		3,424	‐	3,424	3,567
	Other incoming resources		3,300	‐	3,300	101
			‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐
	Total income resources		240,318	113,730	354,048	225,245
			‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐
	Resources Expended
	Costs of generating funds
	Costs of generating voluntary income		1,500	‐	1,500	1,500
4	Charitable activities		238,737	112,523	351,260	221,771
		‐‐‐‐‐‐‐‐‐‐‐‐		‐‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐
	Total resources expended		240,237	112,523	352,760	223,271
		‐‐‐‐‐‐‐‐‐‐‐‐‐		‐‐‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐
	Net income/net movement in funds		81	1,207	1,288	1,974
	Funds brought forward		425,397	‐	425,397	423,423
		‐‐‐‐‐‐‐‐‐‐‐‐‐		‐‐‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐	‐‐‐‐‐‐‐‐‐‐‐
	Funds carried forward	£425,478		£1,207	£426,685	£425,397
		========		========	=======	=======