THE CENTRE FOR ENTERPRISE, MARKETS AND ETHICS
Accounts: 31st December 2022
The Centre for Enterprise, Markets and Ethics
Report of the Trustees and accounts for the year ending 31st December 2022
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 2022
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
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The Centre for Enterprise, Markets and Ethics
Report of the Trustees and accounts for the year ending 31st December 2022
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 2022.
The Financial Statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charities governing document, the Charities Act 2011, the Companies Act 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice (second edition) and Financial Reporting Standard FRS102.
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 chief executive, 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.
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The Centre for Enterprise, Markets and Ethics
Report of the Trustees and accounts for the year ending 31st December 2022 (cont)
- (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 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) Executing a project around the Ethics and Theology of Business
The Centre has undertaken a number of activities during the period. We have returned to in-person events. 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 are continuing to develop a project entitled the Ethics and Theology of Business. The Trustees have allocated some discretionary donations into the designated fund and have also transferred £30,000 from reserves. The Centre also manages a project entitled Soulful Enterprise on behalf of the Templeton Religion Trust which is managed through a restricted fund.
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 deficit for the period across all funds was £72,805 (2021: surplus £3,003). This is mainly explained by timing differences on donations received for the designated fund and was in accordance with budgets. Reserves are held in a variety of short-term and long-term deposit funds. The Board’s reserve policy is to hold up to 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.
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The Centre for Enterprise, Markets and Ethics
Report of the Trustees and accounts for the year ending 31st December 2022 (cont)
This report has 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.
On behalf of the Board
Lord Griffiths of Fforestfach Director 14[th] March 2023
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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 2022.
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 Association of Chartered Certified Accountants.
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:
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accounting records were not kept in respect of the charitable company as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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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
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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.
Anthony Williams BSc, FCCA A J Carter & Co Chartered Accountants
22b High Street Witney Oxon OX28 6RB 14[th] March 2023
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The Centre for Enterprise, Markets and Ethics
Statement of Financial Activities for the year ending 31st December 2022 (incorporating the Income and Expenditure Account for the period)
| Notes | ||||||
|---|---|---|---|---|---|---|
| Unrestricted | Restricted | Total | Total | |||
| 2022 | 2022 | 2022 | 2021 | |||
| £ | £ | £ | £ | |||
| Incoming Resources | ||||||
| Incoming resources from generated funds | ||||||
| Voluntary income (donation/grant) | 245,676 | 90,210 | 335,886 | 382,994 | ||
| Investment income | 4,418 | - | 4,418 |
3,000 | ||
| Other incoming resources | 20,194 | - | 20,194 | 24,348 | ||
| ----------- | ----------- | ----------- | ----------- | |||
| Total income resources | 270,288 | 90,210 | 360,498 | 410,342 | ||
| ----------- | ----------- | ----------- | ----------- | |||
| Resources Expended | ||||||
| Costs of generating funds | ||||||
| Costs of generating voluntary income | 1,500 |
- | 1,500 | 1,500 | ||
| 4 | Charitable activities | 325,815 | 105,988 | 431,803 | 405,839 | |
| ------------ | ------------ | ----------- | ---------- | |||
| Total resources expended | 327,315 | 105,988 | 433,303 | 407,339 | ||
| ------------- | ------------- | ----------- | ----------- | |||
| Net income/net movement in funds | (57,027) | (15,778) | (72,805) | 3,003 |
||
| Funds brought forward | 526,448 | 64,379 | 590,827 | 587,824 | ||
| ------------- | ------------- | ----------- | ----------- | |||
| Funds carried forward | £469,421 | £48,601 | £518,022 | £590,827 | ||
| ======== | ======== | ======= | ======= |
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.
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The Centre for Enterprise, Markets and Ethics
Balance Sheet as at 31st December 2022
| Notes | |||
|---|---|---|---|
| 2022 | 2021 | ||
| £ | £ | ||
| Fixed assets | |||
| Investments – cash equivalents on deposit | - | 54,140 | |
| ---------- | ---------- | ||
| Current Assets | |||
| 5 | Debtors | 7,587 | 8,787 |
| Current asset investments – cash equivalents on deposit | 371,484 | 314,781 | |
| Cash at bank and in hand | 161,412 | 242,740 | |
| ------------ | ------------ | ||
| 540,483 | 566,308 | ||
| ------------ | ------------ | ||
| Liabilities | |||
| 6 | Creditors: amounts falling due within one year | 22,461 | 29,621 |
| ------------ | ------------ | ||
| Net current assets | 518,022 | 536,687 | |
| ------------ | ------------ | ||
| 8 | Net Assets | £518,022 | £590,827 |
| ======== | ======== | ||
| 7 | The funds of the charity | ||
| Unrestricted income funds | 469,421 | 526,448 | |
| Restricted funds | 48,601 | 64,379 | |
| ------------- | ------------ | ||
| £518,022 | £590,827 | ||
| ======== | ======== |
For the year ending 31st December 2022 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,
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- 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 14[th] March 2023 and signed on their behalf by:
Lord Griffiths of Fforestfach – Director
Philip Wood – Director
14[th] March 2023
The notes on pages 9 to 13 form part of these accounts.
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The Centre for Enterprise, Markets and Ethics
Notes to the accounts for the year ending 31st December 2022
- 1 Accounting policies
(a) Basis of preparation
The Financial Statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The Financial Statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102), the Charities Act 2011 and the Companies Act 2006.
(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. 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.
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The Centre for Enterprise, Markets and Ethics
Notes to the accounts for the year ending 31st December 2022 (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 3.2 (2021: 2.6). Staff costs were as follows:
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Salaries | 171,631 | 139,890 |
| Social Security costs | 12,759 | 13,208 |
| Other pension costs | 24,430 | 23,688 |
| ------------ | ------------ | |
| £208,820 | £176,786 | |
| ======== | ======== | |
| Employees earning more than £60,000 during the period: | ||
| 2022 | 2021 | |
| No. | No. | |
| £80,000-£90,000 | 1 | 1 |
| None of the Trustees have received any remuneration. |
- 4 Charitable activities
| Unrestricted | Restricted | Total | Total | |
|---|---|---|---|---|
| 2022 | 2022 | 2022 | 2021 | |
| £ | £ | £ | £ | |
| Salaries | 208,820 | - | 208,820 | 176,786 |
| Premises | 22,182 | - | 22,182 | 23,504 |
| Programme and research | 82,798 | 105,988 | 188,786 | 194,685 |
| Office, equipment and IT | 6,650 | - | 6,650 | 5,620 |
| Legal and accounting | 2,159 | - | 2,159 | 2,105 |
| Other governance costs | 3,206 | - | 3,206 | 3,139 |
| ----------- | ---------- | ------------ | ------------ | |
| £325,815 | £105,988 | £431,803 | £405,839 | |
| ======== | ======== | ======== | ======== |
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The Centre for Enterprise, Markets and Ethics
Notes to the accounts for the year ending 31st December 2022 (cont)
The full comparative figures for charitable activities are given below:
| Unrestricted | Restricted | Total | Total | |
|---|---|---|---|---|
| 2021 | 2021 | 2021 | 2020 | |
| £ | £ | £ | £ | |
| Salaries | 176,786 | - | 176,786 | 153,940 |
| Premises | 23,504 | - | 23,504 | 21,969 |
| Programme and research | 92,266 | 102,419 | 194,685 | 88,347 |
| Office, equipment and IT | 5,620 | - | 5,620 | 6,512 |
| Legal and accounting | 2,105 | - | 2,105 | 1,875 |
| Other governance costs | 3,139 | - | 3,139 | 956 |
| ----------- | ---------- | ------------ | ------------ | |
| £303,420 | £102,419 | £405,839 | £273,599 | |
| ======== | ======== | ======== | ======== |
| 5 | Debtors | |||||
|---|---|---|---|---|---|---|
| 2022 | 2021 | |||||
| £ | £ | |||||
| Other debtors | 6,487 | 7,687 | ||||
| Prepayments | 1,100 | 1,100 | ||||
| ---------- | --------- | |||||
| £7,587 | £8,787 | |||||
| ======= | ======= | |||||
| 6 | Creditors: amounts falling due within one year | |||||
| 2022 | 2021 | |||||
| £ | £ | |||||
| Accruals | and provisions | 10,116 | 14,810 | |||
| Taxation | and social security costs | 12,345 | 14,811 | |||
| -------- | --------- | |||||
| £22,461 | £29,621 | |||||
| ====== | ====== | |||||
| 7 | Analysis of charitable funds | |||||
| Analysis of movements in unrestricted funds | ||||||
| Balance | Incoming | Resources | Transfers | Balance | ||
| 1 Jan 2022 | Resources | Expended | 31 Dec 2022 | |||
| £ | £ | £ | £ | £ | ||
| General | 398,195 | 244,288 | (238,199) | (30,000) | 374,284 | |
| Designated 128,253 | 26,000 | (89,116) | 30,000 | 95,137 | ||
| (Project fund) | ||||||
| ----------- | ------------ | ------------- | ------------ | ------------ | ||
| £526,448 | £270,288 | £(327,315) | - | £469,421 | ||
| ======== | ======== | ======== | ======== | ======== |
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The Centre for Enterprise, Markets and Ethics
Notes to the accounts for the year ending 31st December 2022 (cont)
Analysis of movements in restricted funds
| Balance | Incoming | Resources | Transfers | Balance | |
|---|---|---|---|---|---|
| 1 Jan 2022 | Resources | Expended | 31 Dec 2022 | ||
| £ | £ | £ | £ | £ | |
| Soulful | 64,379 | 90,210 | (105,988) | - | 48,601 |
| Enterprise | |||||
| ----------- | ------------ | ------------- | ------------ | ------------ | |
| £64,379 | £90,210 | £(105,988) | - | £48,601 | |
| ======== | ======== | ======== | ======== | ======== |
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 | |
|---|---|---|---|---|
| £ | £ | £ | £ | |
| Cash at bank and in hand | 77,674 | 35,137 | 48,601 | 161,412 |
| Net current assets | 296,610 | 60,000 | - | 356,610 |
| ------------- | ------------- | ------------ | ------------- | |
| £374,284 | £95,137 | £48,601 | £518,022 | |
| ======== | ======== | ======== | ======== |
- 9 Future financial commitments
At 31st December 2022 the charity had annual commitments under non-cancellable operating leases as set out below:
| operating leases as set out below: | ||||
|---|---|---|---|---|
| 2022 | 2021 | |||
| Operating leases which expire in more than | 5 | years | £14,754 | £14,754 |
| ====== | ====== |
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The Centre for Enterprise, Markets and Ethics
Notes to the accounts for the year ending 31st December 2022 (cont)
- 10 Statement of Financial Activities for the year ending 31st December 2021 (incorporating the Income and Expenditure Account for the period)
| Notes | ||||||
|---|---|---|---|---|---|---|
| Unrestricted | Restricted | Total | Total | |||
| 2021 | 2021 | 2021 | 2020 | |||
| £ | £ | £ | £ | |||
| Incoming Resources | ||||||
| Incoming resources from generated funds | ||||||
| Voluntary income (donation/grant) | 258,369 | 124,625 | 382,994 | 426,755 | ||
| Investment income | 3,000 | - | 3,000 |
3,439 | ||
| Other incoming resources | 24,348 | - | 24,348 | 6,045 | ||
| ----------- | ----------- | ----------- | ----------- | |||
| Total income resources | 285,717 | 124,625 | 410,342 | 436,239 | ||
| ----------- | ----------- | ----------- | ----------- | |||
| Resources Expended | ||||||
| Costs of generating funds | ||||||
| Costs of generating voluntary income | 1,500 |
- | 1,500 | 1,500 | ||
| 4 | Charitable activities | 303,420 | 102,419 | 405,839 | 273,600 | |
| ------------ | ------------ | ----------- | ---------- | |||
| Total resources expended | 304,920 | 102,419 | 407,339 | 275,100 | ||
| ------------- | ------------- | ----------- | ----------- | |||
| Net income/net movement in funds | (19,203) | 22,206 | 3,003 | 161,139 | ||
| Funds brought forward | 545,651 | 42,173 | 587,824 | 426,685 | ||
| ------------- | ------------- | ----------- | ----------- | |||
| Funds carried forward | £526,448 | £64,379 | £590,827 | £587,824 | ||
| ======== | ======== | ======= | ======= |
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