Company number: 5870623 Charity Number: 1152499
## Commonword Enterprises Limited
Report and financial statements For the year ended 31[st] March 2021
## Commonword Enterprises Limited
## Reference and administrative information
for the year ended 31[st] March 2021
**Company number** 5870623 **Charity number** 1152499 **Registered office and operational address** No. 3 Planetree House, 21-31 Oldham Street Manchester, M1 1JG
**Management committee** The members of the management committee, who are also directors under company law, who served during the year and up to the date of this report were as follows:
Kirit Patel Chair Sivamohan Valluvan Secretary Marie-Claire Emecheta Treasurer (from 1/12/20) Julia Davis Treasurer (to 1/12/20) Dr Shahireh Sharif **Key management** Peter Kalu Co-Director **personnel** Martin De Mello Co-Director **Bankers** Bank of Scotland The Mound Edinburgh, EH1 1YZ **Independent** Christy Lau FCCA CTA DChA **Examiner** Slade & Cooper Limited, Beehive Mill Jersey Street Ancoats Manchester M4 6JG
1
## Commonword Enterprises Limited
## Management committee’s annual report
## for the year ended 31[st] March 2021
The management committee presents their report and the unaudited financial statements for the year ended 31[st] March 2021. Included within the management committee’s report is the directors’ report as required by company law.
Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.
## **Objectives and activities**
## **Objects**
The Objects of the charity as set out in its Memorandum of Association are:
To advance education for the benefit of the public in the subject of creative writing, literature and the Arts; to formulate, prepare and establish schemes therefore; and to co-operate with other charitable organisations having similar objects and to establish, promote or assist such charitable organisations.
## **Our Vision**
- Help new writers in the North West of England and beyond become more successful Seek to enable everyone to participate in creative writing
- Organise writers’ development programmes for communities and young people. Commonword also runs mentoring programmes, conferences, courses, participatory events, festivals, workshops and public readings
- Give information and advice to individuals and groups on the craft of writing
- Keep writers up to date on publishing opportunities and writing networks
- Link local and regional writers with national and international writers
- Assist writers in the setting up and running of their own organisations
- Work with Black & Minority Ethnic communities and individuals developing their creative writing
## **Mission**
Our mission is to help new writers become more successful.
## **Our Charitable Activities**
The management committee reviews the aims, objectives and activities of the charity each year. This report looks at what the charity has achieved and the outcomes of its work in the reporting period. The management committee reports the success of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. The review also helps the management committee ensure the charity's aims, objectives and activities remained focused on its stated purposes.
The management committee has referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the management committee considers how planned activities will contribute to the aims and objectives that have been set.
2
## Commonword Enterprises Limited
## Management committee’s annual report
## for the year ended 31[st] March 2021
## **Activities undertaken for public benefit in relation to objects 1 April 20-31 March 21**
Commonword radically overhauled its writing development programme to accommodate Covid restrictions, and in response to feedback and the evolving aspirations of the writers.
This year there was a big push to bring digital to the fore both in our means of communication and distribution and in the creative processes that writers employ. A pioneering project was the **Elaine Okoro Soundcloud Poems Launch** which combined utilisation of Commonword’s recently digitised archives with the fresh audio recording of that material in a professional recording studio specifically for the Soundcloud platform. The result was the splendid okoro_dramming SoundCloud experience, an achievement that paves the way for other poets to explore this digital platform: https://soundcloud.com/user-672575780
The **Cultureword YouTube site** has been expanded significantly this year both in response to Covid 19 as an alternative live launch centre, as a development of our digital literature development aspirations. This year it has been populated with both video essays, poetry performances, book reviews, short story trailers and information videos. https://www.youtube.com/user/Cultureword
**Our Commonword Digital Literature Map** was launched. This was a two-year project funded by Heritage Lottery Project that made literature available as cross-referenced with an actual map of Greater Manchester. The Map has been a great success and has since been consolidated into a broader Manchester City of Literature Map which can be found here: https://www.manchestercityofliterature.com/project/digital-manchester-literature-map/
Following the success of last year’s Black Crime shorts series we launched a digital sequel called **Shots in the Dark II on Issuu.** It was deliberately developed as born-digital project. Featuring nine short stories each accompanied by scintillating artwork from Akinyemi Oludele, the collection was showcased to great acclaim on the Issuu.com platform both as a digital anthology and as a FlipBook. https://issuu.com/cultureword/docs/shots_202
We also launched our **Picture Book Project** in association with the mainstream publisher, Hachette Children’s, seeking to discover and nurture PoC Picture Book writers who are under-represented in this genre.
The monthly **Queer Black Book Club** workshop has been a roaring success and also serves as a strong complement to the **Identity Writers Workshop Online** . Both workshops have been meeting throughout the Covid dislocations and have been an excellent and necessary means for Commonword to enhance the literary and professional development of new writers.
The strong results of our artistic programme against a background of sound financial management in the face of the Covid disruptions, together indicate the company has shown resilience and dynamism and achieved well in its goal of helping new writers to become more successful.
3
## Commonword Enterprises Limited
## Management committee’s annual report
for the year ended 31[st] March 2021
## **Feedback from Users and Partners:**
## **Twitter:**
This [Hachette-Commonword linkup] is exciting news! Congratulations on a great partnership! **Yvonne Battle-Felton Jan 2021**
Over the moon to be partnering with @cultureword to find more northern picture book talent. @HachetteKids **Emma Layfield of Hachette Jan 2021**
"I am looking for exciting, diverse, new picture book writers from the North, so our partnership with Commonword is the perfect fit", @HachetteKids partners with @cultureword to find more northern Black, Asian and minority ethnic writers! https://bit.ly/2LnmAnO **Bookseller, Jan 2021**
A new year and a new partnership! I can’t wait to work with the brilliant team @cultureword and their budding picture book writers. Exciting times! @HachetteKids **Emma Layfield Jan 2021**
Enjoying this beautiful book by Japanese poet @fukudapero published by @cultureword **David Armes December 2020**
Delighted to host you - you @EmilyZMarshall & other speakers were simply fab!! @newwritingMCR @cultureword learnt and enjoyed the event so much @MACFESTUK **Qaisra Shahraz Dec 2020**
Where would a radical city like Manchester be if it didn’t have a radical edge? In our view these guys have never got enough credit for keeping Manchester’s writing scene honest most of our writing and activist lives! @MartindeMello talks @cultureword #MCRBookFair **The Writing Squad Nov 2020**
Commonword don't just publish books: A centre for Black creative writing since '86, it has achieved national renown for discovering, developing and promoting Asian, African Caribbean and Chinese writers **Manchester City of Literature Nov 2020**
Have you seen this? [Digital Literature Map] A great resource of Northern writing **Leeds Arts Health and Wellbeing Network Nov 2020**
What a brilliant Q&A with the writers of new Crime Fiction publication 'Big Shots II' by @cultureword this evening. Well done to all the writers for such brilliant stories. Absolutely enjoyed listening to them and the great conversations **DIPACT Nov 2020**
Thanks to @peterkalu and @cultureword for first noticing [my CYA novel] Alfie and shortlisting him in the inaugural Children’s Diversity Writing Prize! **Clare Weze Aug 2020**
Thanks SO much for joining tonight [on the CYA panel]. It was great seeing you! A very well deserved shout out to the brilliant team @cultureword **Children’s Books North Aug 2020**
From Commonword's Queer Black Book Club, @timber_festival's forest sound map to York Early Music Festival's digital programme, check out our picks for the latest activities to get involved with: https://buff.ly/2Ch3ATo @cultureword @yorkearlymusic **ACE North July 2020**
Big shout out to @cultureword for #NationalNorthernAuthorsDay Part of Commonword, Cultureword has been a centre for Black creative writing in the North West of England for decades! Discovering, developing and promoting Asian, African Caribbean and Chinese writers **Cath Staincliffe, author, July 2020**
My writing has only begun to take flight in the last few months thanks to groups like @outonthepage and @cultureword and @writers_hq moving their events online. Very lucky to have found my wonderful writing communities **Jade Mutyora July 2020**
4
## Commonword Enterprises Limited
## Management committee’s annual report
## for the year ended 31[st] March 2021
Resonant words [on Commonword and the Black Lives Matter movement] from the ever-brilliant @cherylalaska @cultureword **John McGrath, MIF June 2020**
## **Achievements and performance**
The charity’s main activities and who it tries to help are described below. All its charitable activities focus on writer development and are undertaken to further Commonword Enterprise Limited’s charitable purposes for the public benefit. The following are our eight main achievements:
## **Publications**
Our publication programme this year focused on fiction, bringing to fruition the work of nine short story writers who we have worked with over a number of years. This led to the publication online on the Issuu platform of **Short in the Dark II** as both a standard online work and as a FlipBook. We have also been developing pipleline publication projects, a collection of poems called, ‘So’ by John Siddique, and an anthology of writings around invisible disability called ‘Indivisible’.
## **Archives Project**
Funded by the Heritage Lottery Fund, The Commonword Archive Project is a two-year project to make the Commonword archive available to the public and to promote Manchester’s literary activist history. Our **launch online** in July 2020 was the culmination of these two years of research, public engagement and digitisation. It featured the work of current writers as well as writers from Commonword’s 40 year history, connecting the present to the past at a very well received online event. The project has forged connections and partnerships with a range of other organisations including the Manchester Metropolitan University Poetry Library and the UNESCO Manchester City of Literature organisation.
## **Trans-Writes Launch, TransBareAll: July 2020**
We sponsored the launch of TransBareAll, a collection of writings by Trans Writers. The launch was held online and was one of the most popular of our online live events. The live event was hosted by Mish Green who also co-edited the 300-page anthology. Its contents include poetry, prose and art that cover a range of experiences and a wealth of trans and non-binary voices, each different, speaking loud, and proud, and together.
## **Workshops**
We continued to deliver workshops throughout his year, moving them online in response to Covid-19 restrictions. We delivered 10 Black Queer Book Cub workshops and 42 Identity Writers Workshops. We also delivered a number of memoir workshops across the city that engaged with our Archives Project.
## **Financial review**
The Charity’s unrestricted liquid reserves at year end stand at £67,780.
The continuing perils of the spread of Covid-19 in this year continued to impact on the arts sector. Commonword maintained its suspension of face-to-face work, including events, workshops and mentoring. All work was conducted online.
Several funding bids were put on hold due to funders suspending or restricting new applications.
Additional measures to mitigate effects include a reduction in worker hours and planning to reduce office space.
5
## Commonword Enterprises Limited
## Management committee’s annual report
for the year ended 31[st] March 2021
## Reserves policy
Reserves are required to cover any disparity between spending on our programme and the income we generate through grants and private income generation and to ease transitions between one source of funding and another. Reserves are also maintained to guard against exceptional, unplanned expenditure. The reserves also function as a means to mitigate main risks to the organisation such as the withdrawal of a main funder.
In reaching our target reserve amount we took into account the following:
1. forecasts for levels of income in future years, taking into account the reliability of each source of income and the prospects for opening up new sources
2. forecasts for expenditure in future years on the basis of planned activity
3. analysis of future needs, opportunities, contingencies and risk
4. assessment, on the best evidence reasonably available, of the likelihood of each of those needs and risks arising and the potential consequences for the organisation of not being able to meet them
5. consideration of wind up arrangements and the financial consequences arising from this
Based on these considerations our pre-pandemic policy was to maintain sufficient free reserves to provide cover for 6 months in relation to known liabilities, along with a smaller additional provision of 1 month free reserves for unforeseen liabilities. Post Covid-19 our policy is to maintain sufficient free reserves to provide cover for 5 months in relation to known liabilities, with the expectation that costcutting measures and renewed funding will over the next 18 months enable us to recover our reserve to the pre-pandemic 6 months + 1 month.
Our pre-pandemic total target reserve amounts to 7 months running costs. On this basis our target reserve was £65,832. Our post-Covid-19 target reserve amounts to 5 months. On this basis our target is £47,000.
6
## Commonword Enterprises Limited
## Management committee’s annual report
for the year ended 31[st] March 2021
## **Structure, governance and management**
## **Recruitment and Appointment of Management Committee**
The management committee makes wide general appeal to find those who are willing to serve as members on the Committee. The recruitment strategy takes cognisance of the particular skill sets of existing members and attempts to ensure a well-rounded, diverse membership with excellent expertise who can individually and collectively assist the charity in furthering its aims.
New management committee members are appointed by ordinary resolution according to articles 34 to 38 of Commonword Enterprise Ltd’s constitution. There is no upper limit to the number of management committee members but there is a minimum threshold of 3.
The organisation is a charitable company limited by guarantee having no share capital. It was incorporated on 10th July 2006 and registered as a charity on 19 June 2013. The company is established under a Memorandum of Association which establishes the object and powers of the charitable company and is governed under its Articles of Association.
Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The members of the management committee are members of the charity but this entitles them only to voting rights. The members have no beneficial interest in the charity.
All members of the management committee give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 8 to the accounts.
7
## Commonword Enterprises Limited
## Management committee’s annual report
for the year ended 31[st] March 2021
## **Statement of responsibilities of the management committee**
The members of the management committee (who are also directors of Commonword Enterprises Limited for the purposes of company law) are responsible for preparing the management committee’s 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 management committee to prepare financial statements for each financial year which 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 management committee is required to:
- Select suitable accounting policies and then apply them consistently
- Observe the methods and principles in the Charities SORP
- Make judgements and estimates that are reasonable and prudent
- State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation
The management committee is responsible for keeping proper 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.
The management committee is responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
This report has been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime of the Companies Act 2006.
The management committee’s annual report has been approved by the members of the management committee on 09/11/2021 and signed on their behalf by
Kirit Patel
Chair
8
## Independent examiner’s report
## to the trustees of
## Commonword Enterprises Limited
I report to the charity trustees on my examination of the accounts of the company for the year ended 31[st] March 2021 which are set out on pages 10 to 24.
## **Responsibilities and basis of report**
As the charity trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company’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**
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 that in any material respect:
1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. 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
4. the accounts 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 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.
Christy Lau FCCA CTA DChA Slade & Cooper Limited Beehive Mill Jersey St Ancoats Manchester M4 6JG Date 16 December 2021
9
## Commonword Enterprises Limited
## Statement of Financial Activities (including Income and Expenditure account) for the year ended 31 March 2021
|Unrestricted
funds
Note
£
**Income from:**
Charitable activities:
3
Education
96,445
**Total income**
**96,445**
**Expenditure on:**
Charitable activities:
4
Education
97,655
**Total expenditure**
**97,655**
(1,210)
-
6
**(1,210)**
Transfer between funds
(11,652)
**Net movement in funds for the year**
**(12,862)**
**Reconciliation of funds**
Total funds brought forward
82,618
**Total funds carried forward**
**69,756**
**Net income/(expenditure) before**
**net gains/(losses) on investments**
Realised gains/(losses) on investments
**Net income/(expenditure) for the**
**year**|Restricted
funds
£
-
**-**
26,009
**26,009**
(26,009)
-
**(26,009)**
11,652
**(14,357)**
14,357
**-**|Total funds
2021
£
96,445
**96,445**
123,664
**123,664**
(27,219)
-
**(27,219)**
-
**(27,219)**
96,975
**69,756**|_Total funds_
_2020_
_£_
_106,145_|
|---|---|---|---|
||||**_106,145_**|
||||_154,010_|
||||**_154,010_**|
||||_(47,865)_
_(326)_|
||||**_(48,191)_**
_-_|
||||**_(48,191)_**
_145,166_|
||||**_96,975_**|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
10
## Commonword Enterprises Limited Company number 5870623
## Balance sheet as at 31 March 2021
|Note
£
£
**Fixed assets**
Tangible assets
11
1,976
**Total fixed assets**
**1,976**
**Current assets**
Stock
581
Debtors
13
389
Investments
12
-
Cash at bank and in hand
14
68,952
**Total current assets**
**69,922**
**Liabilities**
Creditors: amounts falling
due in less than one year
15
(2,142)
**Net current assets**
**67,780**
**Total assets less current liabilities**
69,756
**Net assets**
**69,756**
**The funds of the charity:**
Restricted income funds
16
-
Unrestricted income funds
17
69,756
**Total charity funds**
**69,756**
2021|_£_
_£_
_2,274_
**_2,274_**
_629_
_12,212_
_-_
_84,986_
**_97,827_**
_(3,126)_
**_94,701_**
_96,975_
**_96,975_**
_14,357_
_82,618_
**_96,975_**
_2020_|_£_
_£_
_2,274_
**_2,274_**
_629_
_12,212_
_-_
_84,986_
**_97,827_**
_(3,126)_
**_94,701_**
_96,975_
**_96,975_**
_14,357_
_82,618_
**_96,975_**
_2020_|
|---|---|---|
|||**_2,274_**
**_94,701_**|
|||_96,975_|
|||**_96,975_**|
|||_14,357_
_82,618_|
|||**_96,975_**|
For the year in question, the company was entitled to exemption from an audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' 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 of the Companies Act 2006,
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts are prepared in accordance with the special provisions of part 15 of the Companies Act 2006 relating to small companies and in accordance with FRS102 SORP, and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.
The notes on pages 12 to 24 form part of these accounts.
Approved by the trustees on 09/11/2021 and signed on their behalf by:
Kirit Patel (Chair)
11
Commonword Enterprises Limited
## Notes to the accounts for the year ended 31 March 2021
## **1 Accounting policies**
The principal accounting policies adopted, judgments and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
## **a Basis of preparation**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), second edition - October 2019 (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006 and UK Generally Accepted Accounting Practice.
The charity has applied the exemption available to small charities in the Charities SORP (FRS 102) and does not include a Statement of Cash Flows in these Financial Statements.
Commonword Enterprises Limited meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.
## **b Preparation of the accounts on a going concern basis**
The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern.
The trustees have made no key judgments which have a significant effect on the accounts. The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next reporting period.
12
Commonword Enterprises Limited
Notes to the accounts for the year ended 31 March 2021 (continued)
## **c Income**
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.
Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.
Income received in advance of a provision of a specified service is deferred until the criteria for income recognition are met.
## **d Donated services and facilities**
Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised; refer to the trustees’ annual report for more information about their contribution.
On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
## **e Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.
13
Commonword Enterprises Limited
Notes to the accounts for the year ended 31 March 2021 (continued)
## **f Fund accounting**
Unrestricted funds are available to spend on activities that further any of the purposes of charity.
Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose.
Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific projects being undertaken by the charity.
## **g Expenditure and irrecoverable VAT**
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. Expenditure is classified under the following activity headings:
- Expenditure on charitable activities includes the costs undertaken to further the purposes of the charity and their associated support costs.
- Other expenditure represents those items not falling into any other heading.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
## **h Operating leases**
Operating leases are leases in which the title to the assets, and the risks and rewards of ownership, remain with the lessor. Rental charges are charged on a straight line basis over the term of the lease.
## **i Tangible fixed assets**
Individual fixed assets costing £250 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a straight line basis as follows:
Computer equipment 25% straight line Office furniture & equipment 20% straight line
14
Commonword Enterprises Limited
Notes to the accounts for the year ended 31 March 2021 (continued)
## **j Stock**
Stock is included at the lower of cost or net realisable value. In general, cost is determined on a first in, first out basis. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation. Provision is made where necessary for obsolete, slow moving, and defective stocks. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.
## **k Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **k Current asset investments**
The charity's current asset investments comprise investment property held for sale. The investment properties were initially recognised at transaction value and are subsequently measured at their fair value at the balance sheet date. The property was sold in October 2019 and the loss on disposal was included in the statement of financial activities.
## **l 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.
## **m Creditors and provisions**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## **n Financial instruments**
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## **o Pensions**
Employees of the charity are entitled to join a defined contribution ‘money purchase’ scheme. The charity’s contribution is restricted to the contributions disclosed in note 7. There were no outstanding contributions at the year end (2020: £Nil).
15
Commonword Enterprises Limited
## Notes to the accounts for the year ended 31 March 2021 (continued)
## **2 Legal status of the charity**
The charity is a company limited by guarantee registered in England and Wales and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The registered office address is disclosed on page 1.
## **3 Income from charitable activities**
|**Current reporting period**
**Grants**
Arts Council England, North West
**Fees and other income**
Sales of publications
**Total**
**_Previous reporting period_**
**_Grants_**
_Arts Council England, North West_
_Awards for All_
**_Fees and other income_**
_Fees and other income_
_Sales of publications_
**_Total_**|Unrestricted
£
95,981
95,981
464
464
96,445
_Unrestricted_
_£_
_94,247_
_-_
_94,247_
_1,453_
_1,225_
_2,678_
_96,925_|Restricted
£
-
-
-
-
-
_Restricted_
_£_
_-_
_9,220_
_9,220_
_-_
_-_
_-_
_9,220_|Total 2021
£
95,981|
|---|---|---|---|
||||95,981
464|
||||464|
||||96,445|
||||_Total 2020_
_£_
_94,247_
_9,220_|
||||_103,467_
_1,453_
_1,225_|
||||_2,678_|
||||_106,145_|
16
## Commonword Enterprises Limited
## Notes to the accounts for the year ended 31 March 2021 (continued)
## **4 Analysis of expenditure on charitable activities**
|**Current reporting period**
Salaries
Premises
Development
Marketing
Book production
Sundry expenses
Administration
IT and software
Depreciation
Restricted expenditure
Unrestricted expenditure
**5**
**Analysis of governance and support costs**
**Current reporting period**
Basis of
apportionment
Accountancy services
Governance
Legal and professional
Governance
**_Previous reporting period_**
_Basis of_
_apportionment_
_Accountancy services_
_Governance_
_Legal and professional_
_Governance_
Governance costs (see note 5)|Total 2021
£
88,558
21,094
7,312
-
324
-
1,024
1,138
2,052
2,162
123,664
2021
£
26,009
97,655
123,664
Governance
£
1,500
662
2,162
_Governance_
_£_
_1,500_
_1,277_
_2,777_|_Total 2020_
_92,934_
_24,705_
_23,958_
_52_
_3,754_
_71_
_3,542_
_604_
_1,613_
_2,777_|
|---|---|---|
|||154,010|
|||_2020_
_£_
_40,936_
_113,074_|
|||_154,010_|
|||_Total 2021_
£
1,500
662|
|||2,162|
|||_Total 2020_
_£_
_1,500_
_1,277_|
|||_2,777_|
17
Commonword Enterprises Limited
## Notes to the accounts for the year ended 31 March 2021 (continued)
## **6 Net income/(expenditure) for the year**
|This is stated after charging/(crediting):
Depreciation
Operating lease rentals:
Property
Accountancy
Independent examination
Payroll
**Staff costs**
Staff costs during the year were as follows:
Wages and salaries
Social security costs
Pension costs
Staff training
Independent examiner's fee|2021
£
2,052
13,800
1,000
250
512
2021
£
86,832
330
1,396
-
88,558|_2020_
_£_
_1,613_
_13,800_
_1,000_
_250_
_581_|
|---|---|---|
|||_2020_
_£_
_89,290_
_1,861_
_1,522_
_261_|
|||_92,934_|
## **7 Staff costs**
No employees has employee benefits in excess of £60,000 (2020: Nil).
The average number of staff employed during the period was 7 (2020: 7). The average full time equivalent number of staff employed during the period was 3 (2020: 3).
The key management personnel of the charity comprise the trustees and Co-Directors. The total employee benefits of the key management personnel of the charity were £35,035 (2020: £36,825).
18
Commonword Enterprises Limited
Notes to the accounts for the year ended 31 March 2021 (continued)
## **8 Trustee remuneration and expenses, and related party transactions**
One (2020: Nil) member of the management committee received £50 fee during the year (2020: Nil).
Dr Shahireh Sharif 50 Fee for Crime Friction short story
No (2020: One) member of the management committee received travel and subsistence expenses during the year of £Nil (2020:£20).
Aggregate donations from related parties were £Nil (2020: £Nil).
There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.
No trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity, including guarantees, during the year (2020: nil).
## **9 Government grants**
The government grants recognised in the accounts were as follows:
|Arts Council England, North West|2021
£
95,981
95,981|_2020_
_£_
_94,247_|
|---|---|---|
|||_94,247_|
## **10 Corporation tax**
The charity is exempt from tax on income and gains falling within Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity.
19
Commonword Enterprises Limited
## Notes to the accounts for the year ended 31 March 2021 (continued)
## **11 Fixed assets: tangible assets**
|**Cost**
Additions
**Depreciation**
Charge for the year
**Net book value**
At 1 April 2020
At 31 March 2021
At 1 April 2020
At 31 March 2021
At 31 March 2021
_At 31 March 2020_|Equipment
£
12,359
1,754
14,113
10,085
2,052
12,137
1,976
_2,274_|Total
£
12,359
1,754|
|---|---|---|
|||14,113|
|||10,085
2,052|
|||12,137|
|||1,976|
|||_2,274_|
20
## Commonword Enterprises Limited
## Notes to the accounts for the year ended 31 March 2021 (continued)
## **12 Current assets investments**
|Add: reclassification from tangible fixed assets
Disposals at carrying value
Add net gain/(loss) on disposal
Market value at the end of the year
Market value at the start of the year|2021
£
-
-
-
-
-|_2020_
_£_
_35,000_
_-_
_(34,674)_
_(326)_|
|---|---|---|
|||_-_|
Current assest investments consisted entirely of an investment property held for sale. The property was on the market for sale and valued at the sale price proposed by Avenant Au Mandat Vente, less the estimated costs of sale at the end of the last financial year. The property was sold in October 2019.
## **13 Debtors**
|2021
£
Grants receivable
-
Other debtors
-
Prepayments and accrued income
389
389
**14**
**Cash at bank and in hand**
2021
£
Cash at bank and on hand
68,952
68,952
**15**
**Creditors: amounts falling due within one year**
2021
£
Other creditors and accruals
2,142
Taxation and social security costs
-
2,142|_2020_
_£_
_6,990_
_229_
_4,993_|
|---|---|
||_12,212_|
||_2020_
_£_
_84,986_|
||_84,986_|
||_2020_
_£_
_1,871_
_1,255_|
||_3,126_|
21
## Commonword Enterprises Limited
## Notes to the accounts for the year ended 31 March 2021 (continued)
## **16 Analysis of movements in restricted funds**
|HLF Lottery
Total
_HLF Lottery_
_Total_
Awards for All -
Coordinate
Awards for All -
Silence Will Not
Protect You
_Awards for All -_
_Silence Will Not_
_Protect You_
_Awards for All -_
_Coordinate_
**Current reporting**
**period**
**_Previous reporting_**
**_period_**|Balance at
1 April
2020
£
3,843
1,294
9,220
14,357
_Balance at_
_1 April_
_2019_
_£_
_44,779_
_1,294_
_-_
_46,073_
|Income
£
-
-
-
_Income_
_£_
_-_
_9,220_
_9,220_|Expenditure
£
(15,495)
(1,294)
(9,220)
(26,009)
_Expenditure_
_£_
_(40,936)_
_-_
_-_
_(40,936)_|Transfers
£
11,652
-
-
11,652
_Transfers_
_£_
_-_
_-_
_-_
_-_|Balance at
31 March
2021
£
-
-
-|
|---|---|---|---|---|---|
||||||-|
||||||_Balance at_
_31 March_
_2020_
_£_
_3,843_
_1,294_
_9,220_|
||||||_14,357_|
## **Name of restricted fund Description, nature and purposes of the fund**
HLF Lottery The Commonword Community Archive Project is an outreach, curation and engagement project based on the Commonword Archive. The project will use our archive to engage the general public in the literary activist history of Manchester, and to promote creative writing in marginalised communities. The archive will also be made available to the general public online.
Awards for All - Silence Will Not Protect You is a six month empowerment, development Silence Will Not and advocacy project for women who are seeking asylum, are refugees, or Protect You who experience domestic violence. The project utilises drama, poetry and film to enable participants to develop the skills and confidence necessary to advocate for themselves and their communities.
Awards for All - Coordinate is a 10 month project to create a location based online map of Coordinate Manchester and Salford documenting the experiences of people from marginalised groups who live with social isolation. The project will also provide advocacy/campaign training to help participants work together, disseminate their experiences and advocate for change.
22
## Commonword Enterprises Limited
## Notes to the accounts for the year ended 31 March 2021 (continued)
## **17 Analysis of movement in unrestricted funds**
|General fund
_General fund_
**Name of**
**unrestricted fund**
General fund
**Current reporting**
**period**
**_Previous reporting_**
**_period_**|Balance at 1
April 2020
Income
Expenditure
£
£
£
82,618
96,445
(97,655)
82,618
96,445
(97,655)
_Balance at_
_1 April 2019_
_Income_
_Expenditure_
_£_
_£_
_£_
_99,093_
_96,925_
_(113,074)_
_99,093_
_96,925_
_(113,074)_
**Description, nature and purposes of the fund**
The free reserves after allowing for all designated|Invesment
gains /
(losses)
-
-
_Invesment_
_gains /_
_(losses)_
_(326)_
_(326)_
funds|Transfers
£
(11,652)
(11,652)
_Transfers_
_£_
_-_
_-_|As at 31
March 2021
£
69,756|
|---|---|---|---|---|
|||||69,756|
|||||_As at 31_
_March 2020_
_£_
_82,618_|
|||||_82,618_|
||||||
23
## Commonword Enterprises Limited
## Notes to the accounts for the year ended 31 March 2021 (continued)
## **18 Analysis of net assets between funds**
|**Current reporting period**
Tangible fixed assets
Net current assets/(liabilities)
Total
**_Previous reporting period_**
_Tangible fixed assets_
_Net current assets/(liabilities)_
_Total_|General
fund
£
1,976
67,780
69,756
_General_
_fund_
_£_
_2,274_
_80,344_
_82,618_|Designated
funds
£
-
-
-
_Designated_
_funds_
_£_
_-_
_-_
_-_|Restricted
funds
£
-
-
-
_Restricted_
_funds_
_£_
_-_
_14,357_
_14,357_|Total
£
1,976
67,780|
|---|---|---|---|---|
|||||69,756|
|||||_Total_
_£_
_2,274_
_94,701_|
|||||_96,975_|
## **19 Operating lease commitments**
The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:
|Less than one year
One to five years|2021
_2020_
£
_£_
3,450
_13,800_
-
_3,450_
3,450
_17,250_
Property|2021
_2020_
£
_£_
3,450
_13,800_
-
_3,450_
3,450
_17,250_
Property|
|---|---|---|
|||_17,250_|
24