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2021-03-31-accounts

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The Centre for Justice Innovation UK

(A company limited by guarantee and not having a share capital)

Company Number: 08274430 Charity Number: 1151939

Trustees annual report and financial statements for the year ended 31 March 2021

Myrus Smith

Chartered Accountants

Norman House 8 Burnell Road Sutton, Surrey SM1 4BW

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The Centre for Justice Innovation UK

(A company limited by guarantee and not having a share capital)

Company Number: 08274430

Charity Number: 1151939

For the Year Ended 31 March 2021

Contents

Trustees’ annual report ............................................................. 1 Independent Auditors Report ................................................... 11 Statement of Financial Activities.............................................. 15 Balance sheet .......................................................................... 16 Cash flow statement ................................................................. 17 Notes to the financial statements ............................................ 18

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The Centre for Justice Innovation UK

(A company limited by guarantee)

Trustees’ Annual Report

For the year ended 31 march 2021

Trustees’ annual report

For the year ended 31 March 2021

The Trustees present their annual report together with the audited financial statements for the Centre for Justice Innovation UK (the charity) for the period 1 April 2020 to 31 March 2021, recognising the Charity Commission’s guidance on public benefit.

Reference and administrative information

Trustees

Gregory Andrew Berman (chair) Megan Liberty Aldrich Mark Blake Courtney Bryan Aubrey Fox Shauneen Lambe Karyn McCluskey Dr Geraldine O’Hare Lord Wasserman

Senior Management

Registered office

Unit 102, Edinburgh House 170 Kennington Lane LONDON SE11 5DP

Independent auditors

Myrus Smith Norman House 8 Burnell Road Sutton Surrey SM1 4BW

Phil Bowen (Director)

Bank account details

Company registered number 08274430

Barclays 81 Fleet Street, London, EC4Y 1EL

Charity registered number

1151939

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Objectives and strategies

Charitable aims and objects

The Centre for Justice Innovation seeks to build a justice system which every citizen believes is fair and effective. The objects of the charity are to promote, for the benefit of the public, the efficiency and effectiveness of the justice system in the United Kingdom and to promote good citizenship and greater public participation in the prevention and exclusion of crime and to further such other exclusively charitable purposes according to the law of England and Wales.

Main activities in pursuit of charitable objects

Our vision is to build a justice system which every citizen believes is fair and effective. We believe that the justice system should be focused on solving the issues that drive crime and social harm; that it should be fair in how it treats people; that it should be proportionate in the things it does; and that those on the front line should be given the freedom and support to come up with innovative solutions to the problems their communities face.

To deliver our vision of fairer and more effective justice system, we:

Assessing progress

We assess progress through a range of criteria and measures, including:

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The Centre for Justice Innovation UK

(A company limited by guarantee)

Trustees’ Annual Report

For the year ended 31 march 2021

Grant-making

As part of our work, we can make grants to other organisations in pursuit of our objectives. In 2020/21, we made grants to:

Achievements and performance

Operational environment

The environment in which the Centre operates has been dominated by the Covid-19 pandemic and government instructions to limit social contact. For example, evidence from the Office of National Statistics covering England and Wales (which produces the most up to date annual reports on crime patterns in the UK) suggests that levels of crime in the year ending March 2021 were significantly affected by the pandemic— there have been decreases across a range of individual crime types, particularly theft offences, but these were offset by rises in fraud and computer misuse offences, resulting in no change in overall levels of crime. Moreover, the impact of the pandemic and lockdowns has led to reported rises in domestic abuse and has had an impact on the mental health of vulnerable citizens, resulting in additional demand on the justice systems across the UK.

Unsurprisingly, the impact of the pandemic has added to the considerable strains that were already experienced by justice agencies across the UK. Backlogs in courts, in the caseloads of probation, changes in the way justice agencies operate and transact their work have all been exacerbated by the pandemic. In particular, we have seen practitioners confront great challenges in conducting work remotely, especially court cases. However, it is also clear that the impact of the pandemic has revealed new ways of working, and new opportunities to develop better practice.

Achievements and performance in 2020/21

In January 2018, the Trustee Board approved a three-year strategy for the Centre which expanded the breadth of the Centre’s work. Our mission is to be the ‘go-to’ organisation for practice innovation and evidence-led policy reform in the justice system by 2021. 2020/21 is the final year of this three-year strategy.

Aim 1: To increase the use of community sentences, including spreading problem-solving court practice

Based on our extensive research and policy influencing in the area of community sentencing, the

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Centre was invited to work with senior officials in the Ministry of Justice to develop practical policy proposals to improve the effectiveness of community sentences within the Government’s White paper , A Smarter Approach To Sentencing , and the subsequent legislation. This work saw the inclusion of the following policy proposals, which were directly influenced by our work:

We have worked with Government officials and the new Domestic Abuse Commissioner on how the courts (criminal, public and private family, civil) can respond better to domestic abuse, including discussions on the Government’s manifesto commitment to pilot an integrated domestic abuse court.

In the youth system, we published our research project on enhancing problem-solving practice in the youth court. The research project found youth courts should be more problem-solving, in particular improving current practice around the procedural fairness of the court hearings themselves and having a more active role for judges in monitoring court-involved children post-sentence.

Aim 2: Spreading community advice services

During 2020/21, we took over the Highbury Community Advice service, transferring staff from the previous provider into our team. Due to the pandemic, we worked to keep the service open, in consultation with the court service and while continually monitoring the situation with regards to the safety and well-being of our staff and our clients. We also have transitioned the data on clients of the service into a new database. We have also produced a new suite of supporting materials for the service – a new logo, business cards, signage, handbook, promotional leaflets and web page.

Moreover, following a successful bid, we have expanded our work in this area. Starting in April 2020, this project aims to spread the community advice model, and we have commissioned and produced an interim evaluation of the Community Advice model in Devon and Cornwall and, subject to the restrictions of the pandemic, engaged with a range of practitioners and commissioners to identify three new sites to help them implement a community advice service.

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The Centre for Justice Innovation UK

(A company limited by guarantee)

Trustees’ Annual Report

For the year ended 31 march 2021

Aim 3: Increase the use and effectiveness of pre-court diversion

On pre-court diversion in the youth justice system, we have worked with officials and others to influence Government youth diversion on a more formal financial footing. We published research on racial disparity and diversion, based on a literature review and interviews with practitioners, service users and family members about decision making within the arrest to diversion/prosecution process. We commenced work on adult diversion, to ensure that adult diversion is better understood and, enable practice to be better informed by evidence. We delivered practice-sharing workshops, produced briefings, and are providing enhanced support to two schemes. We also re-engaged with our community of practice (currently 20 of the 43 police forces) and have been advising Government on their Choice to Change diversion pilots, a Lammy review recommendation. We have influenced the Government’s White Paper, A Smarter Approach To Sentencing , and the subsequent legislation, and worked closely with officials to simplify the Out of Court Disposals (OOCDs) framework so very lowlevel offenders can be dealt with swiftly and proportionately, without coming before a court.

Aim 4: Increase the use of Family Drug and Alcohol Courts (FDAC)

In April 2019, the Centre took on the role of overseeing and supporting the development of FDAC across the UK. In May 2019, the Department for Education announced it would invest in the expansion and evaluation of FDAC, under the ‘Supporting Families; Investing in Practice’ programme, under which we became the ‘delivery partner’ assisting 14 areas to develop and expand FDACs. Six new FDACs are being funded under this programme and an existing eight FDACs will also receive additional funding.

This programme will be evaluated by NatCen via a quasi-experimental study, comparing FDAC to standard proceedings, and we are assisting the evaluators around the design of the study. By April 2021, there were 14 FDAC specialist teams servicing 35 local authorities and 21 family courts, with a further FDAC team opening in Wales in late 2021, likely to serve one family court and at least two local authorities, funded by Welsh Government. To support this growth, we updated and delivered induction training to all of the new sites so far, mentored new sites, and worked with others to increase their capacity and to share best practice.

We have also convened, and provide the secretariat to, a new national advisory board on FDAC, chaired by Baroness Hallett, a retired English judge of the Court of Appeal and a crossbench life peer. Our research team have a developed a new data collection tool for FDACs which is currently being tested with them and we are taking forward work to look at costs comparisons between sites.

Aim 5: Promote the best of Britain’s innovative justice practice

Over the summer and autumn of 2020, we published a weekly Covid-19 justice tracker, which compared justice system responses across eight common law jurisdictions. We then pivoted to conducting video interviews with a range of practitioners, including Karyn McCluskey, Chief Executive of Community Justice Scotland (and a trustee), Amanda Berman, Project Director, Red Hook Community Justice Center, Waheed Saleem, West Midlands Deputy Police and Crime Commissioner

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and Claire Waxman, London Victim’s Commissioner. We held a final seminar on the impact of Covid-19 on justice on 2nd December, with a panel discussion with Karyn McCluskey, Geraldine O’Hare, Deputy Director of the Probation Board of Northern Ireland (and a trustee), Nicole Jacobs, the Domestic Abuse Commissioner and Lisa Harker, Head of the Family Justice Observatory.

During the year, we have refreshed and updated our map of innovative justice practice and have over 35 projects on the map, including case studies from across the UK.

Financial review

In financial year 2020/21, the charity received £952,771. The total income represents a 9% decrease on the previous year (£1,053,359). In total, we received £530,281 in unrestricted funds and £396,175 in restricted funds. This compares to £480,410 in unrestricted funds and £572,964 in restricted funds we received in 2019/20.

Of the restricted funds received in 2020/21, the funds were used as follows:

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Funder Purpose Amount
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Funder Purpose Amount
Hadley Trust- Highbury
CommunityAdvice Service		 Funds for operating the Highbury Community
Advice service		 £70,000
Barrow Cadbury Trust Funds to support point-of arrest diversion schemes
for vulnerable adults		 £27,500
Nuffeld Foundation Funds foryouth court research £1,250
Esmee Fairbairn Foundation Funds to support point-of arrest diversion schemes
for children		 £15,000
Porticus Foundation Funds to supportproblem-solvingcourts £100,000
Bell Foundation Funds for research into experiences of the justice
system for service users with English as an
Additional Language		 £14,722
Lloyds Bank Foundation Funds to support communityadviceprojects £0
FDAC funds (Department for
Education and FDAC consortia)		 Funds to support Family Drug and Alcohol Courts £167,653
Total £396,175

In financial year 2020/21, the charity spent £941,434. The total expenditure represents a 19% increase on the previous year (£788,086).

At year end 2020/21, the charity had £781,501 in funds to carry forward, of which £203,314 are restricted funds carried over for 21/22, and £578,187 is unrestricted and held in reserve.

Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details

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The Centre for Justice Innovation UK

(A company limited by guarantee) Trustees’ Annual Report

For the year ended 31 march 2021

regarding the adoption of the going concern basis can be found in the Accounting Policies.

Risk management

The principal risks and uncertainties facing the Centre are:

To manage these risks, we worked closely with funders and others to revise delivery plans on some of our restricted grants. We have also ensured that we have maintained links with officials, devolved administrations and others who have influence over policy formation away from national Government.

Reserves policy

The charity aims to maintain unrestricted reserves sufficient to cover at least six months’ total anticipated expenditure. Specific permission from the Trustees is required prior to the use of this reserve.

At the end of 2020/21, the charity has £578,187 in unrestricted funds to carry forward, which constitutes just under seven months of our total anticipated expenditure in 2021/22.

Plans for future periods

In financial year 2021/22, the charity has confirmed income of £1,050,986. The confirmed unrestricted grants are from the Hadley Trust and the Monument Trust legacy grant (provided by the Woolbedding Charity). The Monument Trust legacy confirmed future grants of £150,000 each year for 5 years. 21/22 represents the fifth and final year of this legacy grant.

In financial year 2021/22, the charity anticipates spending £1,008,093, of which the biggest expenditure is on staff costs (£674,804 or 67% of total anticipated expenditure).

The Board, recognising the ongoing uncertainties of the Covid-19 pandemic, will be reviewing the organisation’s future strategy during 21/22. However, the Board and the Director have had ongoing discussions about the aims, objectives and activities of the organisation and, until a new strategy is approved, plan to continue the 3-year strategy in place.

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Structure, management and governance

Constitution

The charity is registered as a charitable company limited by guarantee and was set up by a Trust deed on 30th October 2012. The charity is registered (charity number 1151939).

Method of election of trustees

The management of the charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association. Trustees are identified via existing networks and through formal and informal conversations with the Chair and Director of the charity.

Induction of trustees

Induction of Trustees is through conversations with the Director of the charity, the issuance of formal induction materials to the Trustee and their further involvement in the work of the charity.

Decision making

The business of the Charity is managed by the Trustee Board. The Trustees are responsible for the following decisions: (i) approval of the annual budget; (ii) review of finances; (iii) reviewing the performance of the charity against its stated aims and charitable objects.

The chair of the Trustee Board is responsible for the remuneration and performance appraisal of the Director, in consultation with the Trustee Board. The chair gathers feedback on the performance of the Director from the team and other stakeholders as part of the Director’s performance appraisal.

Remuneration of staff

Remuneration of all staff is set through the charity’s salary policy. We set initial salaries through benchmarking exercises comparing pay scales across the sector. The Centre’s pay policy is based on a combination of inflationary and performance-related increases, with the goal of rewarding good performance and team well-being, as far as the Centre’s overall financial situation can allow.

Risk management

The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.

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The Centre for Justice Innovation UK

(A company limited by guarantee) Trustees’ Annual Report For the year ended 31 march 2021

Public benefit

The Trustees are aware of and give due consideration, when setting objectives and planning activities, to the Charity Commission’s guidance on public benefit.

The trustees (who are also directors of The Centre for Justice Innovation for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

Auditors

The auditors, Myrus Smith have expressed their willingness to continue in office in accordance with Section 487 of the Companies Act 2006.

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The Centre for Justice Innovation UK

(A company limited by guarantee)

Trustees’ Annual Report For the year ended 31 march 2021

Small company exemptions

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

This report was approved by the trustees on 23rd November 2021 and signed on its behalf by:

Greg Berman

Chair of the Board

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Independent Auditors Report to the Members of:

The Centre for Justice Innovation UK

(A company limited by guarantee)

Opinion

We have audited the financial statements of The Centre for Justice Innovation (the ‘charitable company’) for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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Independent Auditors Report to the Members of:

The Centre for Justice Innovation UK

(A company limited by guarantee)

/cont

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

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Independent Auditors Report to the Members of:

The Centre for Justice Innovation UK

(A company limited by guarantee)

/cont

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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Independent Auditors Report to the Members of:

The Centre for Justice Innovation UK

(A company limited by guarantee)

/cont

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Kevin Fisher BA FCA CTA (Senior Statutory Auditor)

For and on behalf of Myrus Smith

Chartered Accountants and Statutory Auditor

Norman House, 8 Burnell Road, Sutton, Surrey. SM1 4BW

Date: 2021 23/11/2021

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The Centre for Justice Innovation UKThe Centre for Justice Innovation UK

(A company limited by guarantee)(A company limited by guarantee) Statement of Financial ActivitiesStatement of Financial Activities

(Incorporating Income and Expenditure Account)

For the year ended 31 march 2021

Unrestricted Restricted Total Funds Total Funds
Notes Funds Funds 2021 2020
£ £ £ £
Income
Donations andgrants 2 530,281 396,175 926,456 1,053,359
Charitable activities 3 26,315 - 26,315 -
Investments 4 - - - 15
────── ────── ────── ──────
Total 556,596 396,175 952,771 1,053,374
────── ────── ────── ──────
Expenditure
Raisingfunds 5 2,016 - 2,016 630
Charitable activities 6 534,645 404,773 939,418 787,456
────── ────── ────── ──────
Total 536,661 404,773 941,434 788,086
────── ────── ────── ──────
Net income/(expenditure) 11 19,935 (8,598) 11,337 265,288
Transfers between funds 18 (7,471) 7,471 - -
────── ────── ────── ──────
Net movement in funds 12,464 (1,127) 11,337 265,288
Reconciliation of funds
Total funds brought forward 18 565,723 204,441 770,164 504,876
────── ────── ────── ──────
Total funds carried forward 18 £578,187 £203,314 £781,501 £770,164
══════ ══════ ══════ ══════

All income and expenditure is derived from continuing activities.

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes form part of these Financial Statements.

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The Centre for Justice Innovation UK

(A company limited by guarantee and not having a share capital)

Company Number: 08274430

Charity Number: 1151939

Balance sheet

As at 31 March 2021

Notes 2021 2021 2020 2020
£ £ £ £
Fixed assets
Tangible fxed assets 15 21,057 25,526
Current assets
Debtors 16 109,404 66,477
Cash at bank 680,515 705,392
────── ──────
789,919 771,869
Creditors: Amounts falling due
within oneyear		 17 29,475 27,231
────── ──────
Net current assets 760,444 744,638
────── ──────
Net assets 19 £781,501 £770,164
══════ ══════
Funds
Unrestricted fund 18 578,187 565,723
Restricted funds 18 203,314 204,441
────── ──────
£781,501 £770,164
══════ ══════

The Financial Statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

11/23/2021

The financial statements were approved by the trustees on 2021 11/23/2021

......................................................

Greg Berman

Chair of the Board

The notes form part of these Financial Statements

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The Centre for Justice Innovation UK

(A company limited by guarantee and not having a share capital)

Company Number: 08274430

Charity Number: 1151939

Cash flow statement

For the year ended 31 March 2021

2021 2020
£ £
Net cash(used in) / generated from operatingactivities(see below) (16,679) 261,378
Cash fow from investingactivities
Interest received - 15
Purchase of tangible fxed assets (8,198) (35,544)
───────
(Decrease)/Increase in cash in theyear (24,877) 225,849
Cash brought forward 705,392 479,543
───────
Cash carried forward £680,515 £705,392
═══════
Analysis of cash
Cash at bank £680,515 £705,392
═══════
2021 2020
Reconciliation of net income to net cash fow from operatingactivities £ £
Operatingsurplus on ordinaryactivities 11,337 265,288
Adjustments for non-cash items:
Depreciation 12,667 11,756
(Increase)in debtors (42,927) (18,751)
Increase in creditors 2,244 3,100
───────
(16,679) 261,393
Adjustment for investingactivities
Interest receivable - (15)
───────
Net cash(used in) / generated from operatingactivities £(16,679) £261,378
═══════ ═══════

The notes form part of these financial statements.

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The Centre for Justice Innovation UK

(A company limited by guarantee) Notes to the financial statements

For the year ended 31 march 2021

1. Accounting policies

Basis of preparation

The charity constitutes a public benefit entity as defined by FRS 102.

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) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2015. The financial statements have been prepared on the going concern basis and under the historical cost convention.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless

Income recognition

Items of income are recognised in the financial statements when all of the following criteria are met:

Donated services or facilities, which comprise donated services, are included in income at a valuation which is an estimate of the financial cost borne by the donor where such a cost can be measured reliably. No income is recognised where there is no financial costs borne by a third party.

The company received government support through the Coronavirus Job Retention Scheme (CJRS) which is accounted for on the accrual basis, and is included under Grants received (Note 2).

Expenditure recognition

Expenditure is recognised once there is a legal or constructive obligation to make payment to a third party, it is probable that settlement will be required and the amount can be measured reliably. Expenditure includes all irrecoverable VAT which is included as part of the relevant cost. Expenditure is classified under the following activity headings:

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The Centre for Justice Innovation UK

(A company limited by guarantee) Notes to the financial statements For the year ended 31 march 2021

/contd...

Expenditure includes those costs of a direct nature which can be allocated to a specific activity and also includes indirect costs, including governance costs that do not relate to a specific activity but are necessary to support those activities. Support costs are apportioned to each activity on the basis of staff time.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the yearend are noted as a commitment, but not accrued as expenditure.

Fund accounting

Unrestricted general funds are freely available for use in furtherance of the objects of the charity and which have not been designated for specific purposes.

Restricted funds are funds which can only be used in accordance with specific restrictions imposed by the donor or which have been raised for a particular purpose.

1. Accounting policies/contd….

Tangible fixed assets and depreciation

All tangible assets are capitalised and are stated at costs less accumulated depreciation.

Depreciation is provided so as to write off the cost of each asset, less estimated residual value, over its estimated useful life at the following annual rates:

Fixtures and fittings 33% Straight line Office equipment 33% Straight line

Financial Instruments

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairments are recognised in expenditure.

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The Centre for Justice Innovation UK

(A company limited by guarantee) Notes to the financial statements

For the year ended 31 march 2021

/contd...

Pensions

The charity operates a defined contribution pension scheme for the benefit of its employees. Contributions are charged to the statement of financial activities in the year to which they relate.

The Centre has no liability beyond making its contributions and paying over the deductions for the employees’ contributions.

Operating leases

Operating lease rentals are charged to the statement of financial activities on a straight line basis over the period of the lease.

2. Donations and grants

2.
Donations and grants
Unrestricted Restricted Total Total
Funds Funds 2021 2020
£ £ £ £
Grants 530,281 396,175 926,456 1,053,359
────── ────── ────── ───────
£530,281 £396,175 £926,456 £1,053,359
══════ ══════ ══════ ═══════

Of the £1,053,359 recognised in 2020, £480,395 was unrestricted and £572,964 was restricted funds.

3. Income from charitable activities

Unrestricted Restricted Total Total
Funds Funds 2021 2020
Contracts and fees £26,315 £Nil £26,315 £Nil
═════ ═════ ═════ ══════

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The Centre for Justice Innovation UK

(A company limited by guarantee) Notes to the financial statements

For the year ended 31 march 2021

/contd...

4. Investment income

4. Investment income
Unrestricted Restricted Total Total
Funds Funds 2021 2020
Bank interest £Nil £Nil £Nil £15
═════ ═════ ════ ══════

All of the £15 recognised in 2020 was unrestricted funds.

5. Cost of raising funds

Direct Support Total Total
costs costs 2021 2020
£ £ £ £
Fundraisingactivities £2,016 £Nil £2,016 £630
═════ ═════ ═════ ═════

All of the £630 expenditure recognised in 2020 was charged to unrestricted funds.

6. Expenditure on charitable activities

Grant Direct Support Total Total
funding costs costs 2021 2020
£ £ £ £ £
Research and dissemination £44,101 £647,963 £249,370 £941,434 £787,456
═════ ══════ ══════ ══════ ══════

Of the £787,456 expenditure recognised in 2020, £372,963 was charged to unrestricted funds and £414,493 was charged to restricted funds.

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The Centre for Justice Innovation UK

(A company limited by guarantee) Notes to the financial statements For the year ended 31 march 2021

/contd...

7. Analysis of grant funding

7. Analysis of grant funding
2021 2020
£ £
Grants to institutions
RCJ Advice Bureau 35,384 48,022
ICPR 8,717 30,027
───── ─────
£44,101 £78,049
═════ ═════

8. Analysis of direct costs

8. Analysis of direct costs
Raising Charitable Total Total
funds activities 2021 2020
£ £ £ £
Wages and salaries - 504,490 504,490 378,312
Consultancy - 57,662 57,662 15,071
Other direct costs - 81,436 81,436 50,291
Training - 2,359 2,359 1,870
Advertising 2,016 - 2,016 630
───── ────── ────── ──────
£2,016 £645,947 £647,963 £446,174
═════ ══════ ══════ ══════

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The Centre for Justice Innovation UK (A company limited by guarantee) Notes to the financial statements For the year ended 31 march 2021

/contd...

9. Anlysis of support costs

Raising Charitable Total Total
funds activities 2021 2020
£ £ £ £
Wages and salaries - 126,123 126,123 94,578
Offce costs - 47,964 47,964 56,910
Bad debts - - - 1,254
Bank charges - 274 274 223
Insurance - 335 335 350
Rent - 47,521 47,521 58,009
Depreciation - 12,667 12,667 11,756
Governance costs(note 10) - 6,129 6,129 9,906
Travel and subsistence - 1,784 1,784 26,651
Sundryexpenses - 1,247 1,247 455
Subscriptions - 2,791 2,791 1,612
Website development - 2,535 2,535 2,159
───── ────── ────── ──────
£Nil £249,370 £249,370 £263,863
═════ ══════ ══════ ══════

10. Governance costs

10. Governance costs
2021 2020
£ £
Accountancyfees 1,718 5,312
Audit fees 3,300 3,100
Legal andprofessional fees 1,111 1,494
───── ─────
£6,129 £9,906
═════ ═════

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The Centre for Justice Innovation UK

(A company limited by guarantee) Notes to the financial statements

For the year ended 31 march 2021

/contd...

11. Net income

11. Net income
Net income for theyear is stated after charging: 2021 2020
Auditors remuneration - Audit fees £3,300 £3,100
Depreciation £12,667 £11,756
Operatinglease rentals £47,521 £58,009
═════ ═════

12. Staff costs

12. Staff costs
2021 2020
£ £
Wages and salaries 550,926 410,161
Social securitycosts 55,186 41,589
Pension costs 24,501 21,140
────── ──────
£630,613 £472,890
══════ ══════

The average monthly number of employees was 14.2 (2020: 10.1), with all employee time involved in providing either direct or support services to the charitable activities.

The number of employees whose total employee benefits (excluding employer pension costs) were in excess of £60,000 was as follows:

2021 2020
No. No.
£70,000 - £80,000 1 1
══ ══

The total amount of employee benefits received by key management personnel was £94,273 (2020: £93,151). Under FRS 102, employee benefits include gross salary, benefits in kind, employer’s national insurance and employer pension cost.

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The Centre for Justice Innovation UK

(A company limited by guarantee) Notes to the financial statements

For the year ended 31 march 2021

/contd...

13. Trustees’ remuneration and expenses

The trustees received no remuneration during either year (2020: £Nil) and nor were they reimbursed any expenses (2020: £Nil)

14. Taxation and company status

The company is exempt from taxation on its charitable activities.

The charity is also a private company (No. 08274430) limited by guarantee and has no share capital registered in England and Wales. The liability of each member in respect of the guarantee is limited to £1. The registered office is given in the Reference and Administrative Information in the Trustees’ Annual Report.

15. Tangible fixed assets

Improvements to
Leasehold Property		 Fixtures and
fttings		 Offce
equipment		 Total
£ £ £ £
Cost:
At 1 April 2020 8,455 13,901 33,912 56,268
Additions - - 8,198 8,198
───── ───── ───── ─────
At 31 March 2021 8,455 13,901 42,110 64,466
───── ───── ───── ─────
Depreciation:
At 1 April 2020 3,523 6,248 20,971 30,742
Charge foryear 3,523 2,738 6,406 12,667
───── ───── ───── ─────
At 31 March 2021 7,046 8,986 27,377 43,409
───── ───── ───── ─────
Net Book Value:
At 31 March 2021 £1,409 £4,915 £14,733 £21,057
═════ ═════ ═════ ═════
At 31 March 2020 £4,932 £7,653 £12,941 £25,526
═════ ═════ ═════ ═════

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The Centre for Justice Innovation UK

(A company limited by guarantee) Notes to the financial statements For the year ended 31 march 2021

/contd...

16. Debtors

16. Debtors
2021 2020
£ £
Trade debtors 89,659 -
Other debtors 13,749 13,710
Prepayments and accrued income 5,996 52,767
───── ─────
£109,404 £66,477
═════ ═════

17. Creditors: Amounts falling due within one year

17. Creditors: Amounts falling due within one year
2021 2020
£ £
Trade creditors 1,202 1,202
Other taxation and social security 17,873 18,929
Accruals and deferred income 10,400 7,100
───── ──────
£29,475 £27,231
═════ ══════

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The Centre for Justice Innovation UK

(A company limited by guarantee) Notes to the financial statements For the year ended 31 march 2021

/contd...

18. Movement in funds

18. Movement in funds
Balance Balance
1 April 31 March
2021 2020 Income Expenditure Transfers 2021
£ £ £ £ £
Unrestricted funds
General funds 565,723 556,596 536,661 (7,471) 578,187
────── ────── ────── ────── ──────
Restricted funds
HadleyTrust– HighburyCAS 31,343 70,000 35,438 - 65,905
Barrow CadburyTrust 15,902 27,500 16,802 - 26,600
Nuffeld Foundation 27,515 1,250 28,765 - -
Esmee Foundation 26,222 15,000 33,620 - 7,602
Porticus 62,482 100,000 57,455 - 105,027
Bell Foundation - 14,772 7,039 - 7,733
Lloyds Foundation 35,610 - 45,163 - (9,553)
FDAC 5,367 167,653 180,491 7,471 -
────── ────── ────── ───── ──────
204,441 396,175 404,773 7,471 203,314
────── ─────── ────── ───── ──────
Total funds £770,164 £952,771 £941,434 £Nil £781,501
══════ ═══════ ══════ ═════ ══════

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The Centre for Justice Innovation UK (A company limited by guarantee) Notes to the financial statements For the year ended 31 march 2021 /contd...

Comparative information for the movement in funds in the previous year is as follows:

Balance Balance
1 April 31 March
2020 2019 Income Expenditure Transfers 2020
£ £ £ £ £
Unrestricted funds
General funds 458,906 480,410 373,593 - 565,723
────── ────── ────── ────── ──────
Restricted funds
HadleyTrust– HighburyCAS 19,791 69,359 57,807 - 31,343
HadleyTrust – Optimity - - - - -
Monument Fellowshipbook - - - - -
Barrow CadburyTrust 1,375 58,200 43,673 - 15,902
Nuffeld Foundation - 141,373 113,858 - 27,515
Esmee Foundation 24,804 30,000 28,582 - 26,222
Porticus - 100,000 37,518 - 62,482
Bell Foundation - 5,909 5,909 - -
Lloyds Foundation - 48,014 12,404 - 35,610
FDAC - 120,109 114,742 - 5,367
────── ────── ────── ───── ──────
45,970 572,964 414,493 - 204,441
────── ─────── ────── ───── ──────
Total funds £504,876 £1,053,374 £788,086 £Nil £770,164
══════ ═══════ ══════ ═════ ══════

The purpose of the restricted funds is set out in the Trustees’ Annual Report.

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The Centre for Justice Innovation UK (A company limited by guarantee) Notes to the financial statements For the year ended 31 march 2021

/contd...

19. Analysis of net assets between funds

19. Analysis of net assets between funds
Unrestricted Restricted Total
funds funds Funds
2021 2021 2021 2021
£ £ £
Tangible fxed assets 21,057 - 21,057
Current assets 586,605 203,314 789,919
Current liabilities (29,475) - (29,475)
────── ────── ──────
£578,187 £203,314 £781,501
══════ ══════ ══════

Comparative information for the analysis of net assets between funds in the previous year is as follows:

Unrestricted Restricted Total
funds funds Funds
2020 2020 2020 2020
£ £ £
Tangible fxed assets 25,526 - 25,526
Current assets 567,428 204,441 771,869
Current liabilities (27,231) - (27,231)
────── ────── ──────
£565,723 £204,441 £770,164
══════ ══════ ══════

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The Centre for Justice Innovation UK

(A company limited by guarantee) Notes to the financial statements

For the year ended 31 march 2021

/contd...

20. Operating lease commitments

The total minimum lease payments falling due under non-cancellable operating lease agreements are as follows:

2021 2020
£ £
Within oneyear 20,048 22,258
Within one to twoyears - -
────── ──────
£20,048 £22,258
══════ ══════

21. Contingent assets

The charity has been awarded several multi-year grants, however, not all of the funds awarded have been recognised as income due to the policy of recognising income in accordance with agreed budgets and implied time frames. The total grant income awarded but not yet received amounts to £203,000.

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