Registered Number: 12278437 (England and Wales) Charity Number: 1186547
Good Business Foundation
Trustees’ Report and Accounts
for the year ended 31 October 2021
Good Business Foundation
Annual Report for the year ended 31 October 2021
Contents
Page Report of the Trustees ................................................................................. 1 - 3 Independent Examiner’s Report ........................................................................ 4 Statement of Financial Activities ........................................................................ 5 Balance Sheet ................................................................................................. 6 Notes to the Financial Statements ................................................................ 7 – 9 Detailed Statement of Financial Activities……………………………………………………………………… 10
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Good Business Foundation
Report of the Trustees for the year ended 31 October 2021
The Trustees present their report with the financial statements of the charity for the year to 31 October 2021. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) '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) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The objective and aims of the charity is to promote civic responsibility and good citizenship by promoting and encouraging high standards of business conduct including running the Good Business Charter, an initiative that recognises responsible business practices.
The trustees are aware of guidance published by the Charity Commission on Public Benefit and the guidance is taken into account when they review the objectives and activities of the charity.
ACHIEVEMENT AND PERFORMANCE
Review of Activities
In its first year the Charity is solely dependent on a grant from The Fairness Foundation (previously called the Persula Foundation) to fund its operational costs. In this, its second year, it started to receive some membership income from those organisations renewing their accreditation.
Core Activities for Public Benefit
The Good Business Foundation runs the Good Business Charter, a UK accreditation which measures responsible business practices across 10 components. These components cover care for employees, suppliers, customers and the environment whilst paying taxes in accordance with the spirit of the law. Encouraging organisations to sign up to this accreditation brings about improved prospects for employees as well as consumers and the general public more widely in terms of a responsible attitude to the environment and fair payment of taxes.
The accreditation was launched in February 2020 and membership in the first year is free. In the first year 100 organisations signed up to the Good Business Charter in spite of the backdrop of the coronavirus pandemic. The second year has seen rapid growth in both the membership and the staff team, with over 600 accredited organisations by the end of the financial year.
In June 2021 the Good Business Foundation celebrated York as the first Good Business Charter city which included accrediting the City of York Council, University of York, York and Scarborough Teaching Hospitals NHS Trust and Aviva. In January 2021 a streamlined version of the Good Business Charter was launched in collaboration with Federation of Small Businesses which has resulted in large numbers of small businesses joining.
Future Plans
The Good Business Charter plans to continue its strategy of working closely with trade associations and business organisations to inspire more organisations to apply for GBC accreditation. It also plans to showcase the work in York to other councils in the country who may want to adopt the same model of championing good growth through becoming a GBC city, town or county.
The charity will explore ways to get increased recognition within the investment world, government and with the general public which it hopes will encourage more organisations to commit to the 10 components of the Good Business Charter and receive accreditation.
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Good Business Foundation
Report of the Trustees for the year ended 31 October 2021 (continued)
FINANCIAL REVIEW
Reserves Policy
The Charity’s administrative costs are currently being funded by one private donor and funds are topped up as needed. As such the charity does not have a formal reserves policy at the current time.
In this first year of its operations costs were focused on the set up of the organisation, website development to enable online self-certification, and staff costs to launch and promote the accreditation. In the second year, the team has grown and staff costs has been the largest category of expenditure to support the rapidly growing membership.
Financial Position
The charity is in a strong financial position because of the founder’s annual commitment to the budget, something that is protected. As more organisations apply for GBC accreditation, the level of membership income will increase and the over time the charity will become self-sustaining on membership income.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing Document
Good Business Foundation was established as a company limited by guarantee without share capital and have an exemption from the use of the word ‘Limited’ on 23 October 2019 by Memorandum and Articles of Association and was registered with the Charity Commission for England and Wales on 22 November 2019.
Organisational Structure
During the period the Charity had a CEO, an Accreditation Officer and Communications Lead. A Membership Recruitment and Support Manager joined the team in September 2021.
Risk Management
The Trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. The Trustees have identified and assessed the major risks to which the charity is exposed, in particular those related to the operation and finances of the charity. They are satisfied that the charity's exposure to these risks is minimal.
Registered Company Number
12278437
Registered Charity number
1186547
Registered Address
Richer House Hankey Place London SE1 4BB
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Good Business Foundation
Report of the Trustees for the year ended 31 October 2021 (continued)
Trustees
The Trustees who served during the year were:-
Simon Fox (Chair) Julian Richer
Joshua Hardie (representing the Confederation of British Industry) – resigned 31 December 2020 John Foster (representing the Confederation of British Industry)– appointed 15 February 2021 Timothy Sharp (representing the Trade Union Congress) Katherine Chapman Miatta Fahnbulleh
Trustees shall serve in office for a period of three years but after that may be reappointed for two further terms of three years. At the end of their third term in office and in subsequent years a Trustee may be reappointed subject to a rigorous review, taking into account the need for progressive refreshing of the board. The CBI and the TUC each have a representative on the Board of Trustees. Other trustees are recruited on the basis of the skills they can bring to the Board.
Bankers
Barclays Bank 1 Churchill Place London E14 5HP
This report was approved by the Trustees on 14 April 2022 and signed on its behalf by:
………………………………………….. ..................................... Simon Fox Julian Richer Chair Trustee
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Good Business Foundation
Independent Examiner’s Report to the Trustees of Good Business Foundation
Independent examiner’s report to the trustees of Good Business Foundation (‘the Charity’)
I report to the trustees on my examination of the accounts of the Charity for the year ended 31 October 2021
Responsibilities and basis of report
As the charity’s 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 Charities Act 2011 (‘the 2011 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 the charity’s accounts as carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner’s statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in, any material respect :
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the accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
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the accounts did not accord with the accounting records; or
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the accounts did not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
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the accounts have not been prepared in accordance with the methods and principles of the Statements 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.
Mr Adrian Rodaway BA, FCA, BFP, DChA HPH, Chartered Accountants 54 Bootham York DATE: 14 April 2022 YO30 7XZ
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Good Business Foundation
Statement of Financial Activities (incorporating an income and expenditure account) for the for the year ended 31 October 2021
| 2021 | 2020 | ||
|---|---|---|---|
| Unrestricted | Unrestricted | ||
| Funds | Funds | ||
| £ | £ | ||
| Income and Endowments from | |||
| Donations and legacies | 2 | 70,000 | 165,000 |
| Membership income | 18,111 | 0 | |
| Total | 88,111 | 165,000 | |
| Expenditure on | |||
| Raising funds | 0 | 0 | |
| Charitable activities | 95,243 | 149,192 | |
| Total | (7,132) | 15,808 | |
| Net income/(expenditure) | (7,132) | 0 | |
| Total funds brought forward | 15,808 | 0 | |
| Total funds at 31 October 2021 | 8,676 | 15,808 |
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Good Business Foundation
Balance Sheet as at 31 October 2021
| 2021 | 2020 | ||||
|---|---|---|---|---|---|
| Note | £ | £ | £ | £ | |
| Current assets | |||||
| Debtors | 7 | 7,992 | 2,039 | ||
| Cash at bank and in hand | 1,044 | 19,239 | |||
| 9,036 | 21,278 | ||||
| Creditors | |||||
| Amounts falling due within one year | 8 | (5,470) | |||
| Net current assets | 8,676 | 15,808 | |||
| Funds | |||||
| Unrestricted | 8,676 | 15,808 | |||
| 8,676 | 15,808 |
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 October 2021.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 October 2021 in accordance with Section 476 of the Companies Act 2006.
He trustees acknowledge their responsibilities for
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(a) ensuring that the charitable company keeps accounting records that comply with sections 386 and 387 of the Companies Act 2006 and
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(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of the Companies Act 2006 relating to financial statements, so far applicable to he charitable company.
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Trustees on 14 April 2022 and signed on their behalf by:-
……………………………………………… ......................................... Simon Fox Julian Richer Chair Trustee
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Good Business Foundation
Notes to the accounts for the year ended 31 October 2021
1. Accounting policies
1.1 Accounting convention
- The financial statements are prepared under the historical cost convention and include the results of the Charity's operations as indicated in the Trustees’ Report, all of which are continuing.
1.2 Compliance with accounting standards
- The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011.
1.3 Going concern
The trustees consider that there are no material uncertainties related to events or conditions that may cast significant doubt of the charity’s ability to continue as a going concern and the financial statements have therefore been prepared on the going concern basis.
1.4 Incoming resources
- Income from all resources is recognised in full in the Statement of Financial Activities in the year in which they are receivable.
1.5 Resources expended
- Resources expended are included in full in the Statement of Financial Activities on an accruals basis.
1.6 Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Office Equipment
33% Straight line
1.7 Fund accounting Funds held by the Charity are either:
Unrestricted general funds - these are funds which can be used in accordance with the Charitable objects at the discretion of the Trustees.
Restricted funds - these are funds that can only be used for particular restricted purposes within the objects of the Charity. Restrictions arise when specified by the donor, contractual arrangement or when funds are raised for a particular restricted purpose.
Designated funds - these are funds set aside by the Trustees out of unrestricted general funds for specific future purposes or projects.
1.8 Pension costs and other post-retirement benefits
The charity operates a defined contribution pension scheme. Contributions payable to the charity’s pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
1.9 Taxation
The charity is exempt from corporation tax on its charitable activities.
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Good Business Foundation
Notes to the accounts for the year ended 31 October 2021 (continued)
2. Donations and Legacies
| Donations Membership income 3. Charitable activities costs Direct costs Support costs (see note 4) 4. Support costs Governance costs 5. Staff costs Staff costs comprise: Wages and salaries Social security costs Other pension costs |
2021 £ 2020 £ |
||
|---|---|---|---|
| Donations Membership income |
70,000 165,000 18,111 0 |
||
| 88,111 165,000 |
|||
| 2021 £ 2020 £ |
|||
| Direct costs Support costs (see note 4) |
84,528 108,977 10,715 40,215 |
||
| 95,243 149,192 |
|||
| 2021 £ 2020 £ |
|||
| Governance costs | 10,715 40,215 |
||
| 2021 £ 2020 £ |
|||
| Staff costs comprise: Wages and salaries Social security costs Other pension costs |
72,015 52,003 446 0 1,201 920 |
||
| 73,662 52,923 |
The Charity had one full-time and four part-time employees during the year.
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Good Business Foundation
Notes to the accounts for the year ended 31 October 2021 (continued)
No employees received emoluments in excess of £60,000.
The CEO is considered to represent the key management personnel of the charity. Total compensation of £48,003, inclusive of employer national insurance and pension contributions, was paid in the year (2020: 42,307).
6. Trustees’ Remuneration and Benefits
No Trustee, or anyone connected with a Trustee, has a material interest in any of the Charity’s transactions.
Trustees' expenses
There were no trustees' expenses reimbursed in the year (2020 - £108.00).
7. Debtors: Amounts Falling Due within One Year
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Prepayment | 7,992 | 2,039 |
| 7,992 | 2,039 |
8. Creditors: Amounts Falling Due within One Year
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Accruals | 5,110 | |
| Independent Examination Fee | 360 | 360 |
| 360 | 5,470 |
9. Related Party Disclosures
During the year Good Business Foundation received donations totalling £70,000 from The Fairness Foundation (previously called The Persula Foundation), a charity of which Julian Richer is also a trustee.
During the year Richer Sounds Ltd, a company controlled by one of the trustees, paid expenses on behalf of the Good Business Foundation totalling £63,624 (2020 - £129,689).
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Good Business Foundation
Detailed Statement of Financial Activities for the year ended 31 October 2021
| 2021 £ Income and Endowments Donations and Legacies Donations 70,000 Membership income 18,111 Total Income 88,111 Expenditure Charitable Activities Wages 71,106 Social security costs 446 Pension costs Staff costs 1,370 740 Printing, postage, telephone and stationery 2,906 Travel and conferences 0 IT and technical support 2,666 Website start-up build and development 5,130 Advertising Founder member plaques 164 _____0 84,528 Governance costs Independent examination fee 360 Bank charges 54 Insurance 8,282 Legal fees 2,019 10,715 Total expenditure 95,243 Net (expenditure) / income (7,132) |
2020 £ 165,000 _____0 165,000 51,452 0 1,471 409 610 1,382 4,049 38,007 7,890 3,707 108,977 360 0 2,704 37,151 40,215 149,192 |
|---|---|
| 15,808 |
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