THE CLINK CAFÉ CHARITY Charltablo Incorporat•d organlsatlon Roglstorgd Charlty Number 1180942 Roglstsrnd Company Number CE015766 (England and Wal••l FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 THE CLINK CAFÉ CHARITY CIO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Contont¥ Paggs Trus18es, officers and advlsers Report of th8 Irusloes Report of the auditors 9-12 Stalemgnt of financi81 activities and Income and expenditure aGGounl 13 Balance sheet 14 Notes to the financial statements 15-21 THE CLINK CAFÈ CHARITY CIO TRUSTEES, OFFICERS AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2020 Trustees S Harrison K McGrath W Middleton F Scott D Walker Reglstered Office No. 1 London Bridge London SE1 9BG Chl•f Ex•cutlv• C Moore Company S•cr•tary D Whitworth Bank•r• Coutts & Co 440 Strand London WC2R OQS SollcStor8 Howard Kennedy LLP No 1 London Brldga London SE19BG Audltors Moore Kingston Smllh LLP Devonshire House 60 Goswell Road London EC1M 7AD THE CLINK CAFÉ CHARITY CIO REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 CHAIRMAN'S STATEMENT Reoffending remains one of the most pressing challenges facing society today. The financial impact upon the UK economy is eslimaled as £18.1 billion per year and being a major factor in increasing the chasm in so¢iely be￿een the haves and have nots. The Clink delivors an inlegraled training and support program that dramallcally redu¢8s ro-offendlng by produclng excellent outcomes across our training restaurants, kitchens. garder*s and events projects. Reducing crime and improving all of our live8 is al the heart of what The Clink does. By transforming the lives of our students {Clink gradualesl, it not only benefits them bul also their families and society as a whole and encouraging meaningful 8mploym•nL Tha COVID-19 pandemic of 2020 created challenges worldwlde. The Clink Café, both as a subsidiary of Tha Clink Charity and In Il's own right as a trading operation and Irainlng cenlre, was sev9r91y impacl8d by the pandemic. In compliance with Govemm8nt regulations. the Café closed and 011 Ifaining Coas￿ in the Café on 23rd M8rch 2020. The Café remained closed for the remainder of the year and the Trustees look the difficult decisior* lo permanently c1088 The Clink Café at Canada House in Manehèsler In December 2020. Howèver, our work In the community with our gradu8t68 continued, by supporting them throughout the year, not only by being in regular contact bul also providing vital financlal sUPPOrt to those who needed it. Thls work continues lo be delivered by The Clink Charity. I would like lo thank our very generous fundgrs mad6 up of grant maintsinlng trusts and philanthropic indlvlduals who hav9 ¢0nlinu8d lo support us during the past year. l arn very pleasèd wllh and proud of the Serslor Management Team and s18ff who havo re$pond8d in an excell8nl manner in these uncertain times, showing flexibllity, Innovation and resS1Sence. I would partlcularly like lo thank our Chief Executive, Christopher Moore. and Financ8 Director, Deborah Whilworth. for their hard work, dedication and support Ihls past year. They have had a very challenglng tsme and have shown trèmendous r8silience and leadership in this difficult year. The Clink Café has demonslraled wh8t C8n be 8chleved when 80ciety collectively engages to hèlp those who want and d8s8rve a second chancg. That important work wlll conllnug wllh The Cllnk Charfly. THE CLINK CAFÉ CHARITY CIO REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 CHIEF EXECUTIVE'S REPORT In December 2020, the Trustees look the hard decision to pemianenuy close The Clink Café. located in th8 heart of Manchester's city c8nlr8 in Canada House on Chepstow Street. The Café was staffed by Clink graduat6s and homeless clierbts from local charities. Initially closed in March 2020 due lo Govemmenl-imposed reslriclions. the Café dld not re-open for the remalnder of the ye8r. The daily heod count of ￿0p18 Wofking in Canada Hous8 f811 from 400 to around 10 and foorfall in ￿ntral Manchester was decimated as commuters and visitors stayed al home. With no prospect of this situation improving for some time. il becama obvioL¢S that the Café was unsustainable beyond 2020 without incurring huge costs. We are grateful lo the landlofds of Canada Hou58 for their support throughout our tenancy and for thelr magnanlmlty Sn allowlng us lo relinquish the Café without penalty. Throu9h The Clink Charity, we remaln fulty commilled lo supporting our Clink Café graduates in the ommunlty who have Iralned wlth us. I woulé like lo thank Finlay Scott and the Trusloes for their continuing support, guidance and dedication towards our work of reducing reoffending and also our very generous funders. Thank you THE CLINK CAFÈ CHARITY CIO REPORT OF THE TRUSTEES FOR THE YEAR EhlDE0 31 DECEMBER 2020 STRUCTURE, GOVERNANCE AND MANAGEMENT Governlng documont Tha Clink Café Charity is controlled by its gov8ming documgnl and is estsblished as a Charitable Incorporatèd Organisation {CIOI under th& Charit￿S Acl 2011. The sole member of th8 charity is The Clink Charity. a registered harity limited by guarante8. Organlsatlonal structure Trustee Board As explained abovg the Clink Café Charity 18 a wholly owned subsidiary of The Clink Charity and ils Irusteos report lo the Iruslees of the parent Charity. The charitable group is governed by a Board of Trustees Chaired by Finlay Scott which superv18es the senior management team ISMTI and staff headed up by thè Chlef Ex8CUtlve Officer. Christopher Moore. The Clink Charity 808rd of Trustees meets al least 4 limes each year to sel and oversee the dellvery of the group's objectives. The Board has a clear and well-underslood govemance role. approvSng the strategy, annual budgets and reviewing the management accounts and cash flows on 8 qyart8rty basis. The Trustees ensure that risk is well understood and managed, and that th8 charity is operallng legally and in full complionce with our charitable objectives. ethos and values. The Board appolnls and delegates th6 dèlivery of thè slr8legy and m8nag8m8nl of thg operation of the charfty and ils subsidiaries lo the CEO, who in lum appoints and manages SMT. SMT comprises Ihe CEO, the Finan¢9 Director, the Operations Dir¢Glor and the Support 8nd Mentoring Oireclor. The SMT mèals monthly lo review Sn detail all aspocts of the operations including the training, support and mentortng of the beneficiaries ol the Charity. as well ag safeguarding, h8allh and safety. There are addilionol Trustees committees that mfjol regularly.. Audlt and RIBk Commlttoe - this meets with the extemal auditors fv4iGe yaarly,. once lo review the systems and internal controls on financial and govgrnance issues and make any rgcomrnendalions 10 the Trustee 808rd with a sg¢ond mèaling lo revlew the draft Annual Report and Accounts priorto sending to the Board for approval and signing. Remuneratlon Commlttee - thls revlgws and recommends lo the Tfustee Board staff rgmuneralion. including the salaries of tho SMT. The Committee t8kes Into account the responslbllltles of the role and the need lo set competitive salaries agalnsl what is affordable lor the organisalion. The Cllnk Café Charity is governed by its own Board ol Twslges, also chalred by Finlay Scott, wlth one other Trusl8e drawn from The Clink Charity's Board of Trustees and all other Trusl88s appointed ind8pendenlly. The Clink Cafè Board of Trustees meets at least 3 limes each year lo set and oversee the dglivery of the Café's objoctivès. lo review operational performance and to approve th8 Café's draft Annual Report and Accounts. Trustee tralnlng and Inductlon Trusleos have been carefully selected from business, educallon, leg81, financial. medla, property and building experfence. Upon appolntmenl, Trustees are given a copy of the Charity Commisslon document 'The Essential Trustee- What you need lo know. and asked lo read K(. They also spend lime with the Chairman. CEO and SMT lo familiarise themselves with the operations of the Charity and the Restaurants lo ensure that they understand the aims and the objectives of the Charity are achieved. Addillonally, lh8 independent Clink C81é Trustees are drawn from M8nGhester and the wider North We8t. addin9 local knowledge to their d0cision-maKlng. Risk managgment The Trustee Board is responsible for Ihg oversight of the risks faced by the Char¢ty. The Trustee Board and Audit and Risk Committee rggularfy review the Charity's risk position, internal controls assessment and compliance with relevant statutory and finance regulations. Based on the Charities Commission's Guidance "Charity Reserves.. building resilience. the Charity has a risk-managemenl process designed to identify the major risks that could impact on the aims in the Charity's Stratggi¢ Plan. This process identifies the major rlsks the Charity THE CLINK CAFÈ CHARITY CIO REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 faces. the likelihood of occurr8ncg. the significance of the risk, and any mitigating controls that are in place. It also seeks lo identify any actions and resources required lo manage these risks further. The Clink Café Trustees Board regularty review the major risks and miligalions identified that are relevant to the operation of the Café, ensuring that effective controls are in place and giving assurance that the correct risks and miligalions have been identified. Prlnclpal rlsks and uncertalntles From the beginning of the coronavlNS pandemlc, the Cllnk Cherlty Board ofTrustg9s mgt more regularly to review how the charity was affected by the events as they developed. This gave the trustees the opportunty lo consider the effects of the COVID-19 outbreak on the work of the charity and ils finances. These revlews covered income and 8xpendllufe forecasts and cash flows. As part of this process, the Trustees conslder8d the vlablllly of all operatlons. It was agreed that funding for The Clink Cafè, which had been a considerable drain on the Charity's resources, was unsustainable. ThSs was an extremely difficult decision lo arrive al, as The Café had expanded The Clink's training from within a prison environment lo worklng with homeless cllenls In Ihg heart of Manchester. However, based on the café's performance since openlng, it was decided that The Cllnk Charlty should focus on its core activities until in a more stabl8 economic environment. In th8 light of Ihls declsion, the Board of Trust995 of The Clink Café considèred Its future polenllal to independently achieve ils core objectives and financial viability within a rgasonable lime scale. Givan the on-going impact of the coronavirus pandemic on cily-¢onlre footfall and workin9 patterns, the Café Trustees concluded that the risks and costs of continuing lo operate th8 Cafè as an indepondent charitable enterprise were loo great and consequently decided to close the Clink Café 8t Canada House in Manchg518r in Decembgr 2020. 8af•guardln9 An external consultant dèlivered Safeguardlng Tralning lo all sile based and communlty faGing staff as well as full Irainlng for our newly appointed Deslgnaled SaleguardSng Lead and slle based Deslgnated Safeguarding Officers Sn 2019. We have revised and dlsldbuled new Safeguarding and Whistleblowing Policies. Plans for refresher Irainlng later in the year for all 8xisling and new staff will be revl8wed once we are out ol the p8ndemlc and external training becomes available again. Wa now have full compliance from sile and operational level right through the organisalion right up lo a DSO on the board of Iruslges. Hoalth and Safoty Fire, health & $81ety, food hygien8 and allergen 8war8ness are al the core of what we do and we have engaged an extornal company lo audit our process and Pfocedures al all our premises on an annual basis. In addition. local Environmental Health Officers inspect our premisgs and the Café holds 8 5 star rating. Our stsff are trained in Emergency First Aiders in the workplace, and also obtain the folbwing qualifications: Health and Safely ILovel 2 or 31. Food HygS8ne (Level 2. 3 or 41 and Allergèns AwaYene8s ILevg121. OBJECTIVES AND ACTIVITIES Slgnlfl¢ant actlvltles To ensure the success of the programme. Tha Clink Charlly developed a five-slep Integrated model that could be applied across more prisons 8cross the country and lo further expand The Clink restaurant concept. The model Is used al The Clink Café. The five-slep model focuses on Recruitment. Training, Supporting, Employment and Mentoring. This model has dram8tically reduced the reoffending rales ol those who have been part of the training programme. During 2020 the Clink Café CIO employed 3 fijlltime employees The Clink Charity's support workers work closely wlth each of the café trainees helplng them find employment and mentoring them weekly for 6 10 12 months, thls support will continue for as long 8811 Is needed. Publi¢ beneflt stat8ment Thg Trustees confim that they have given due considoralion to Charity Commission published guidance on the operatton of the Publlc Benefit requirement in relation to the activities of the charitsble company. THE CLINK CAFÉ CHARITY CIO REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 Flnanclal Reviow Due to closure of the cafè frorn 23rd March 2020, income from sales fell dramatically from £106.330 in 2019 to £24.947 in 2020. The end of year results showed a Surplus of £42,291 12019 deficit of £47,094). This surplus arose due lo the support given to The Clink Café Charity by ils parent charity and the second tranche of a grnnt from The Savoy Education Trust. In addition. The Clink Charity wrote off the toans that had arisen due lo thè subsidiary delivering the par8nl's objectives. We were very grateful lo our generous supporters who continued lo donate lo support our work so that during the P8ndemic we were able lo continue to assist all our beneficiaries. During the p8nd8mic these funds w8r8 usod to help the beneficiaries with their day-lo-d8y needs. Including help with finding gnd paying for accommodation, uniform and day-l¢>day living expenses. Wg ar8 also exlrem8ly grateful that we were able to furlough th8 3 cafo members of $18ff under the Job Retention Scheme and lo the d8le of closure we received £35.377 from the furfough scheme. However, we did have to make some very hard decisions and after redeploying one member of stsff within the group we also had to make a mgmber of stsff redundant. Resfrnie8 PolScy At the end of 2020 The Clink Cafa Charity had a ng1 cu￿ent liabllllles position of £4,80512019.' £47,094). The café itself does not hold rgservos as all reserves ar8 held by the parent charity. Fund RalBlng mothods and proco980¥ The Charlty has always depended on the genero81ty and support of varlous grant glvlng trusts. foundalkjns, companies and philanthroplc individuals lo build and fund the projècts. No external fund raisers 8re used. We exlr&mely grateful lo The Savoy Edu¢atlon Trust for Ihalr conllnulng 8UPPOrt for the work of The Clink C8fé Charlty with a grant of £30.000. Throughout the year we have worked with Savoy Education Trust to ensure that they have all the information th8y require to monStor the impact that thèlr donatlon has achS8v8d, PTovlding tham wlth tha Information that 1$ rèquired under their gronl giving due dilig9ncg proc8durès. As a result of this closè relationship and following the closure of The Clink Café. the Trust has agregd lo convert the balance of the grant remainlng towards funding the registration and certificates of Irain8es a¢fOSS all other Clink Charity projocts. The work of the charity not only changes lives ol the Clink gr8du818s but also thelr families and friends. as well as maklng soclety a safer place and ultimately savlng tax-payers money. Statement of Trust•o8' rnsponslbllltles. The Injslaes are responsible for Pfeparing thg Trustees. Report and thè financlal sl818men15 In accordance with law applicable lo charities in England and Wales and United Kingdom Accounting Standards (United Kingdom Generally A￿¥pIed Accounting Praclicel. Charity law requlres trustees to pi8pare financlal slalemgnls for each financlal year whlch give a true and fair view ol the state of the affairs ol the charity and of ils Income and expenditurg lor that period. In preparing these financial stalemgnls. the trustees ai8 required lo.. select suitable occounting policies and then apply them consistently., observe the methods and princlples in the Charities SORP., make judgarnents an¢J ostlmat8S that ar8 reasonttbla and prudent.. state whether applicable UK Accounting Standards have b8en followed, Subje￿ to any malerl81 departures disclosed and explained in the financial sl8lemonls', prepare the financial slalements on the going concern basis unless h Is inappropriate to presume that the charity will remain in business The Irust8•s are responsible for keeping prop8r accounting records that disclose with re8s0nable accuracy al any lime the fin8nci81 position of the ch8ritable company and enable them to ensure th81 Ihe financial statements comply with the Charities Act 2011, the Charity (Accounts and Report} Regulations 2008 and the provisions of the Intst deed. THE CLINK CAFÉ CHARITY CIO REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 They are also responsible for safeguarding the assets of the charitable company and the group and h8ncg for taking reasonable steps for the prevention and detection of fraud and other irregularitses. In as far as the InJstees are aware: there is no relevant audit information of which th8 charitabla company's auditor is unaware.. and tho Iru51ees have taken all $18ps that that they ought lo have taken to make themselves aware of any of any relevant audit information and to establish that the auditor is awar¢ of that information. On behalf of the Board Finlay Scott- Trustee **THE CLINK CAFÉ CHARITY CIO INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 DECEMBER 2020** ## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE CLINK CAFÉ CHARITY CIO** ## **Opinion** We have audited the financial statements of The Clink Café Charity CIO for the year ended 31 December 2020 which comprise the Statement of Financial Activities (including the Summary Income and Expenditure Account), the Balance Sheet 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 FRS 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: - give a true and fair view of the state of the charity’s affairs as at 31 December 2020, and of its incoming resources and application of resources, for the period then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Charities Act 2011. ## **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 charity 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. ## **Emphasis of matter** We draw attention to note 1 of the financial statements which describes the impact of coronavirus on the charitable incorporated organisation’s activities. Our opinion is not modified in respect of this matter. ## **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 charity’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. We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: - the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or - the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. 9 **THE CLINK CAFÉ CHARITY CIO INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 DECEMBER 2020** ## **Other information** The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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. ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion: - the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or - the charity has not kept adequate accounting records; or - the financial statements are not in agreement with the accounting records and returns; or - we have not received all the information and explanations we required for our audit. ## **Responsibilities of trustees** As explained more fully in the trustees’ responsibilities statement set out on page 7, the trustees 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 charity’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 charity or to cease operations, or have no realistic alternative but to do so. ## **Auditor’s responsibilities for the audit of the financial statements** We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act. 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 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. 10 **THE CLINK CAFÉ CHARITY CIO INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 DECEMBER 2020** ## **Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud** The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charity. Our approach was as follows: - We obtained an understanding of the legal and regulatory requirements applicable to the charity and considered that the most significant are [the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council. - We obtained an understanding of how the charity complies with these requirements by discussions with management and those charged with governance. - We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance. - We inquired of management and those charged with governance as to any known instances of noncompliance or suspected non-compliance with laws and regulations. - Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required. As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charity’s internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. - Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 11 **THE CLINK CAFÉ CHARITY CIO INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 DECEMBER 2020** ## **Use of our report** This report is made solely to the charity's trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s trustees 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 any party other than the charity and charity's trustees as a body, for our audit work, for this report, or for the opinion we have formed. Statutory auditor 21 July 2021 Devonshire House 60 Goswell Road London EC1M 7AD Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006. 12 HARITY CI STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2020 Unr•8tActod Fund R•gtrletsd Fundg Total 2020 Total 2019 Not• In¢tsm• and EAdowm•nt* From Charitable acliwues 110,502 110.502 149,819 Total ItO.502 110,502 149,819 Exp•nil1￿r• On: Charitable actbvS1ie8 181.600 161,8ty) 196,913 Total 181,MO 101.800 196.913 No1 1*x￿ndstUf$I1ln¢offl0 lor th• yoar Irom ¢h•rlt•bt• a¢tlvltl•• 151,0981 151,0981 147,0941 Ex¢&ptlon81 income.. Loan from parent un#ert8king wri18 back 11 93.387 93,387 N•t Income for th• y••r 42,289 42,289 147,0941 R•eon¢lll•tloD olfund•: Totèl Fun¢ls broughl f¢Jnvard 147,0941 147,0941 Tol81 Fund• carrl•d fvrwttrd 14.8051 14,8051 47,094 18mounts defive frorn dlscontinuing acti￿t￿5 as the trustees hove daclded to dosa operBtlons at the cafe for the foTeseeBble fvture. The chadtsble In¢orporated organI￿1￿)n h88 no reccgnlsed g81n8 or10s808 other Ihan the Mt income for thè ytrar. Th8 8ccomp8nWng not85 fom part of these finan¢lal slalements. 13 THE CLINK CAFE CHARITY CIO BALANCE SHEET AS AT 31 DECEMBER 2020 2020 2019 Not• Flx•d assèts Tangible Assets 54,995 Current a••etg Stock Debtors Cash at bank 3,392 2,139 821 2,385 Cr•dltor8'. amount• falllnq du• wlthln on• yaar 8,011 107,620 N•t curr•nt Illablllll•slla••ot• 14,8051 1102,0891 Not Llabllllle• 14,8051 147,0941 Fund• Unrestricted funds Re8tricted fvnds 14.8051 147,0941 Total Charlty luftd* 14,8051 147.094} These financl81 stat8men15 have begn prap8rad In 8ecordance with the 8Pg¢ig1 provisions 8ppllcabl8 to companies subiact to the smaller comD8ni&s' r￿lMo. On behalf of tho Board Flnlay Scott ITrust•81 Date.. IL/ {/ L& Li The 8ceompanylng notes form part of th6se flnanclal statements. 14 ## **THE CLINK CAFÉ CHARITY CIO** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **1 ACCOUNTING POLICIES** ## **Accounting Convention** The financial statements are prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The charity is a public benefit entity for the purpose of FRS102 and therefore the charity's financial statements have been prepared in accordance with Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic or Ireland (the FRS 102 Charities SORP) and the Charities Act 2011. The financial statements have been prepared on a going concern basis which assumes the charity will continue in operational existence for the foreseeable future. As reported in the Trustees' Annual Report, the trustees took the decision to close the operation of the Clink Cafe in December 2020 and these activities have been reported as discontinued activities in the Statement of Financial Activities. However the trustees are actively pursuing other projects for the charity and the parent charity has confirmed that it will continue to support the charity to enable it to settle its debts as they fall due for at least 12 months from approval of these financial statements whilst it does this. Accordingly the trustees have continued to prepare the financial statements on a going concern basis. ## **Income** All income is included in the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. ## **Expenditure** Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. ## **Tangible fixed assets** Depreciation is at the following annual rates to write off each asset over its estimated useful life: |Plant and machinery|10%|per annum| |---|---|---| |Fixtures and fittings|10%|per annum| |Motor vehicles|10%|per annum| |Computer equipment|20%|per annum| ## **Stocks** Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. ## **Pension costs and other post-retirement benefits** The charity operates a defined contribution pension scheme. Contributions payable to the pension scheme are charged to the Statement of Financial Activities in the period to which they relate. ## **Taxation** The charity is exempt from corporation tax on its charitable activities. 15 THE CLINK CAFÉ CHARITY CIO NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 ACCOUNTING POUCIES Icontlnuodl Fund a¢countlng Unreslrictsd fund8 can b? used in 4ccordanc• with th• charitabl• obj•ctlves al the dlscretion of the trustee8. Restricted funds can onty be used for ￿rtICular ¥e8trfct¥d purposes w5thln the objec18 of tha chartty. R&8trlthon8 8ri88 when sp8cified by tho donof or whon lund8 are r81sed for p8￿cUl8r re6trf¢t8d purpose8. Further 8xplanation of tho n8turo and purposo of 6ach fund L% Included In the not88 to the flnanciql 6¢8tem8nts. Crltlc41 accountlng estlmatos and ar8a5 of ludg•mont In preparing flnancS8l statements It Is nece588ry to rnak? ¢8rtain jUdge￿nts, tsUmat•S and 8SSUrnPtkJns that gffect tho amounts rocognis6d in the ftn8nclal $ts18rn8nt8. In the view ol th? Iru$teas In 8pplylng Ihe accounung pollcle8 adopted, noludgerDent3 WOTe wulr¢d that hav8 signill¢ant effect on the amoun18 rgcogni58d in the financial stslern8n15 nor do any e6tim&ie8 or a88sJmpllon8 made carry a signific8nl risk tsl mat8rlal adjustment In the next flnanclal ygar. 16 THE CUNK CMARrrY c MOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 2 INCOME FROM CHARITABLE AcTrvmES 2020 2019 Café Salo5 incom8 Relail Sales In￿￿* &Jb5criplions received Support Grant In¢om8 GtsvtmmbfttJRS Grnnt Incom8 24,702 41 275 50.107 35,377 105.894 438 43.489 3 ANALYSIS OF EXPEIIDITURE Staff ￿•14 Inotv J) Dlr•¢t Support co¥t¥ Total 2020 Total 2019 ¢h•Ftt#bh •¢llvlll••'. Café op8rolions 80.211 12.999 88.390 161,61YJ 196,913 Tol•l •xp?ndltsr• 2020 Total •xp•ndbtur• 2019 94,020 39,815 63,078 198.913 4 SUPPORY C08T *N*LYSIS sthff cost• Inot• 51 co•t• lThot• 4•1 Olh•r support Total 2020 rot•l 2019 HQ Staff c0515 Oir9clors Rtrmuner8llon costs Oiher stoff related ¢0811 Tf81ning costs Travel and 6ubsi$tsnca Servic8 charges RO¢ru￿ent expen888 Audli and account8ncyc4)¥t¥ Lèg818nd prol•s8kn81 co$L8 InsurBnc• CommunIca￿on$ Repoir5. i&new81s and malnl8n8nco Compuier & SO￿￿re cost L08n Inlerast DI6po881 of nx•d qs$•t• Depreci811on Sundry expens•$ 12,378 339 12,378 339 350 494 527 10.628 1.160 5.755 gsg 2,281 1,149 628 172 16.470 370 2,873 989 3,891 3,711 19 5,016 669 776 2,286 4,203 1.3S9 3,017 350 494 527 10.628 1,160 S,755 969 2,281 1.149 528 172 45.278 45.278 5.854 9,393 6.392 6,392 To¢•1 jupport eo*ts 202 12.717 5,7SS .918 8&,390 63,070 Tvt•l •upport 2019 10.B40 S.618 40,622 83,078 4• GOVERNANCE COSTS 2020 2019 Trvstees expensès Auditors remuner8tlon Legal fees 5,755 5,016 5.755 5,616 AudltoTr rernunerai￿n of £4.20012019".£3.7501 relaung to a￿1¢ fvJes and E1.57512019.'£9301 rfatlng to nO￿￿udItI88s ncluding accout)ts pr8DarAllon lexdudlnq VATI 17 THE CLINK CAFE CHARITY CIO NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 STAFF COSTS 2020 2019 Wages and Salaries Soci81 Security contributions Pension contributions 65,143 4,874 2,911 100,154 8.283 2.423 Staff costs have been analysed within expenditure as below.. Ch8rilable oclivilies - Direct costs Charitable activities support costs 60,211 12,717 94,020 16.840 The average number of employees in the year w8s 312019.. 41 There were no employee$ whose emoluments exceeded £60k No Tiuslees were paid any rgmunfjralion or reimbursèd expenses éurlng the current or previous year. 18 THE CLINK CAFE CHARrrY cio NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 6 TANGIBLE FIXED ASSETS Pl8nt & Machinery Flxtur•8 & Fittings Total Coat At 1 January 2020 Addltlons Transferred lo group undertaklng Oi8posals 52,444 519 112,795) 140,1681 15,008 67.452 519 112,7951 155,1761 115,0081 At 31 Decembgr 2020 O•pr•clatlon At 1 January 2020 Charge for year Transferred to group undetsking Disposa5s 10,442 2,015 12.457 12.SS91 17,8831 12.5591 19.8981 12.0151 Al 31 Decemb8r 2020 Ng18ook Valuo Al 310e¢&mb&r 2020 Al 31 December 2019 7 DEBTORS 2020 2019 Trade debtor8 Prepayments VAT ￿ceIVable 2.139 821 821 2,139 8 CREOITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2020 2019 Trade creditors Due to Parenl underaklng Duè to group undertakings Accruals Other credito 708 100.060 1,944 5.616 6,860 443 8,011 107,820 19 THE CLINK CAFE CHARITY CIO NOTES TO THE FINAJ4CIAL STATEMENT5 FOR THE YEAR ENDED 31 DECEMBER 2020 9 RECONCIUATION QF MOVEMENT5 IN TOTAL FUNDS 1 January 2020 31 9*￿￿ty￿r 2020 Income Exp•ndltsJr• Trnn•f•rn Gen8ral fvjnds 147,0941 110,502 168,2131 14,8051 Tot•l Unwtrlctsd fund• 47,094 110,502 188.2131 14.8051 COMPARATIVE INFORMAnoN.. RECONCIUATION OF MOVEMENTS IM TOTAL FU1498 YEAR ENDED 31 DECEMBER 2019 1 J•nuary 2019 31 D•e•mhr 2019 In¢om• E¥p•ndltur• Tran•forn G•n•r81 fvnds 149,819 1196,9131 147.0941 Totsl Unr••lrl¢t•d funds 196.913 10 ANALYSIS OF NET ASSETS BY FUNO Flx•d A•••l• Curr•nt Llab511tl•8 2020 Total *• It 31 D•e•mb•r 2020 A•••t• Genor81 fvnd 3,2C 14.8051 3,206 0111 4.805 Flx•d A8•0ts Curr•nt A•Mt• CuTr•nt 2019 Totsl a• at 31 D•¢ombor 2019 G•ner41 fvnd 54,995 5,531 1107.6201 147,0941 ,995 47,094 11 RELATED PARTY TRANSAcnoNS Durlng the y8ar the Iru$ie95 of Ihtr paranl Underta￿n9 Cllnk Charfly. #groed Io w8ivo the 8mounls owed by the Cllnk C8fe Chadty on Ihè basls tt)8t Iho purposes of the loans had boen achiovad In th8 Interests ol tha chartty. Acwrdlngly, tho amount of £93.387 ha5 been ￿ttOn back In these finand81 statsmentB 88 excaptional Income Dvrlng thè yaar Inl•r681 of £NIL12019.. £1051 %Yo$ ¢harg8d on loan bal8nce lo fellow group Undorta￿n￿ The Cllnk Rastaurant Company Ltd. A5 al bal￿r￿ sheet date 8mount8 payable lo Thg Clink Rgstsuranl omp8ny Llmlled total￿d £NIL12019.. £1,836). 12 UTLIMATE PARENT The charilvs ullimgte poreni comp8ny18 The Clink Chadly. a company lirnited by guarante8 (England and Wala8} and regi8lered charity IComp*ny Number.. 07157540 RegiSt•rqd Charity NuTnb¥r.' 11345811 Thè ¢harty h88 taken advantage of the èxemption a¥allabl8 to exclude detalEs of transactK)ns %¥lth ils ullmate par8nl, The ClSnk ChBrity on the basis that relevant details are induded in publi811y 8V8llabl8 con8olldaled financial statements prep8fBII by thai èntity *thich ar8 available from the th8ritabl8 comp8nls reglsterod offSc8. 20 THE CLINK CAFÈ CHWTY CIO NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR EPIDED 31 DECEMBER 2020 OMPARATfiiE INFORMATION.. STAYÈMENY OF FINANCIAL ACTMTIES (INCLUDING INCOMEAND EXPENDrruRE ACCOU14ffr FIJRVEAR ENDÈD 31 DECEMBER 20191 Unr88trfctod Funds R•strlctsd Total 2019 Not• In¢•m• and Endowm•nts Froffl 149,819 149.819 Totsl 149 019 149 819 Expendtture On.. 196,913 196,913 Totsl 196913 N•¢ l•xp•ndltur•lllneom• for th• y••r Trgn8ler8 b8tsv8en frJnd8 N•t mv•m•rtts In funds 147,Q941 147.0941 R•¢¢+n¢lll•llon ol funds.. Tot81 Fund5 breughl fomrd Total Fundi G•Frl•d 1oM*rd 47 47 21