Company Registration Number: 13029916 Charity Registration Number: 1196550
THE CENTRE FOR FINANCIAL CAPABILITY (A COMPANY LIMITED BY GUARANTEE) ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 November 2023
THE CENTRE FOR FINANCIAL CAPABILITY
(A Company Limited by Guarantee)
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2023
CONTENTS
| PAGES | |
|---|---|
| Report of the Trustees / Directors | 1-4 |
| Independent Examiner’s Report | 5 |
| Statement of Financial Activities / Summary Income and Expenditure Account | 6 |
| Balance Sheet | 7 |
| Notes to the Financial Statements | 8-12 |
Page 1
THE CENTRE FOR FINANCIAL CAPABILITY
(A Company Limited by Guarantee)
TRUSTEES ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 30 NOVEMBER 2023
The Trustees / Directors are pleased to present their report, together with the unaudited financial statements of the charitable company (the charity) for the year ended 30 November 2023.
The financial statements have been prepared in accordance with the accounting policies set out in the notes to the Accounts and comply with the charity’s governing documents, the Charities Act 2011 and ‘Accounting and Reporting Charities: Statement of Recommended Practice applicable to charities preparing their Accounts in accordance with Financial Reporting Standards applicable in the UK and Republic of Ireland’ published in October 2019.
Trustees of the Charity
The directors of the charitable company are its trustees for the purposes of charity law. Details of the trustees who have served during the year and since the year end can be found on page 4.
OBJECTIVES AND ACTIVITIES
The principal objective of the charity is to help build a savings culture and promote financial education amongst young people.
The trustees regularly review the objectives and activities of the charity and, as part of this review, they have considered the Charity Commission’s general guidance on public benefit.
VISION AND MISSION
The Centre for Financial Capability’s (TCFC) vision is for every child and young person to benefit from effective financial education, starting in primary schools.
To achieve this, TCFC does three things for the public benefit:
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Partner with other organisations to identify and develop innovative financial education solutions for children and young people.
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Conduct research to improve knowledge and awareness of key issues impacting financial education and financial literacy in the UK, including what’s needed and what works.
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Advocate for financial education in UK public policy making by convening and working with key stakeholders, including providers, funders and policy makers.
ACHIEVEMENTS AND PERFORMANCE
Enabling Innovation and Delivery of Financial Education
Breakthrough ideas and collaborations with potential enhance efficiency, impact and scalability of financial education in the UK. In pursuit of this objective, we’re delighted to partner with MyBnk, a leading financial education charity in the UK, to deliver financial education programmes in schools for 3,039 children aged 7-11.
Improving Knowledge and Awareness of Key Issues Through Research
TCFC conducted three pieces of research in 2023 to raise awareness and improve knowledge of the key issues impacting financial education and financial literacy outcomes in the UK. TCFC research was covered in UK national and industry media, helping to shine a light on key issues and drive positive change in financial education provision.
Page 1
THE CENTRE FOR FINANCIAL CAPABILITY
(A Company Limited by Guarantee)
TRUSTEES ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 30 NOVEMBER 2023
Research included:
-
Polling amongst 2,061 adults between 9-11 December 2022 to understand their experiences and understanding of Buy Now, Pay Later products. [Samantha Comres]
-
Polling amongst 1,031 young people aged 8-15 between 21-27 July 2023 to identify and raise awareness of the gaps in financial education provision in schools.
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Qualitative research amongst 67 small UK charities working with families between July and September 2023 to highlight the support and resources they need to provide financial education to their beneficiaries.
Advocating for Financial Education in Public Policy Making
Since 2021 TCFC has led calls for the English portion of dormant assets, set to be released from the financial services industry, to be used for financial education. Following the Government announcement in March 2023 outlining its commitment to consider this ask, TCFC hosted financial education stakeholders at the London Stock Exchange in October 2023 to discuss the priority needs for financial education in England.
TCFC’s continued engagement with policy makers, alongside other financial education stakeholders, led to the announcement of a Parliamentary inquiry into the provision of financial education in England, led by the Education Select Committee. TCFC contributed evidence to the inquiry, with findings expected to be published early in 2024.
FINANCIAL REVIEW
Total income for the year was £258,866. This included donations from corporate donors of £150,000, restricted grants and donations from corporate donors of £66,500 and bank interest of £611.
TCFC’s total expenditure for the year was £204,620.
Total funds of TCFC at the end of the year are £54,246.
Investment Policy
The charity’s funds are invested on current account with the Co-Operative bank. The trustees have power to invest any money belonging to the charity as they see fit.
Reserves Policy
During the course of the year the Trustee Board introduced a new reserves policy, targeting three months operating expenditure.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing Document
The Centre for Financial Capability is a company limited by guarantee and not having a share capital, incorporated in England and Wales. It is governed by a Memorandum and Articles of Association dated 18 November 2020 and was registered with the Charity Commission from 12 November 2021. In the event of the company being wound up, members are required to contribute an amount not exceeding £1.
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THE CENTRE FOR FINANCIAL CAPABILITY
(A Company Limited by Guarantee)
TRUSTEES ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT)
FOR THE YEAR ENDED 30 NOVEMBER 2023
Appointment of Trustees
New trustees are nominated and approved by the Board. There is a required minimum of three and maximum of twelve trustees. One third of trustees are required to retire annually. A retiring trustee is eligible for re-election for consecutive periods not exceeding in aggregate a period of nine years from their original appointment and shall not be eligible for reelection until one year after retirement unless the break period is waived by resolution of at least 75% of Trustees.
Trustees’ Induction and Training
The trustees have induction procedures to ensure new trustees understand their roles and obligations. As part of these procedures, trustees are also encouraged to attend appropriate internal / external training events to facilitate the undertaking of their roles.
Organisation
The management and administration of the charity is under the control of the trustees who meet a minimum of four times per year.
Risk Management
TCFC relies on voluntary annual corporate donations, the level and frequency of which are uncertain. The Trustees have set out to mitigate this risk by appointment of key management personnel to maintain relationships with existing corporate donors, identify new corporate donors, and diversify income, including seeking donations from Trusts and Foundations and individuals.
TCFC is reliant on a small number of voluntary Trustees and key management personnel, which could impact the ability of the charity to execute its strategy and plans effectively. The Trustees have to mitigate this risk by establishing a trusted network of expert consultants to provide flexible capacity and expertise to the charity as and when it is needed.
Risks are assessed and monitored regularly throughout the year.
PLANS FOR FUTURE PERIODS
TCFC plans to launch a Financial Literacy Innovation Fund early in 2024 to develop new and / or better ways of delivering financial education with the potential to reach more children and young people.
Throughout the next financial year TCFC will continue to conduct and publish research to shine a light on key issues in UK financial education provision, as well as engaging Policymakers on the need for more financial education, starting in primary schools.
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THE CENTRE FOR FINANCIAL CAPABILITY (A Company Limited by Guarantee)
TRUSTEES ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 30 NOVEMBER 2023
REFERENCE AND ADMINISTRATIVE INFORMATION
| Charity Name: | The Centre for Financial Capability |
|---|---|
| Working Name: | TCFC |
| Charity Registration No: | 1196550 |
| Company Registration No: | 13029916 |
| Registered Ofce: | Dakota House, 25 Falcon Court |
| Preston Farm Industrial Estate | |
| Stockton on Tees | |
| TS18 3TX | |
| Trustees/Directors: | Ms J Goodland |
| Mrs C L Knight | |
| Mrs T Tang (appointed 25.05.23) | |
| Ms L M Hill (appointed 25.05.23) | |
| Mr R Pybus (resigned on 19.05.23) | |
| Dr M Lukas (appointed 09.11.23) | |
| Acting Director: | Mr S Perry |
| Independent Examiner: | Mr T Cook FCA |
| Baines Jewitt Limited | |
| Spitfre House, 19 Falcon Court | |
| Preston Farm Industrial Estate | |
| Stockton on Tees | |
| TS18 3TX | |
| Bankers: | The Co-Operative Bank Plc |
| PO Box 250 | |
| Skelmersdale | |
| WN8 6WT |
This report has been prepared in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities” in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
Approved by the trustees on 8 May 2024 and signed on their behalf by:
Ms J Goodland (Trustee)
Page 4
INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES OF
THE CENTRE FOR FINANCIAL CAPABILITY (A Company Limited by Guarantee)
I report to the charity trustees on my examination of the Accounts of the company for the year ended 30 November 2023 which are set out on pages 6 to 12.
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 2011Act”). 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 Examiners Statement
Since the company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of The Institute of Chartered Accountants in England and Wales.
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:
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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 to not accord with those records; or
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The Accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the Accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or
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The Accounts have not been prepared in accordance with 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.
Mr T Cook FCA
For and behalf of Baines Jewitt Limited Spitfire House 19 Falcon Court Preston Farm Industrial Estate Stockton on Tees TS18 3TU
Date: 16 July 2024
Page 5
THE CENTRE FOR FINANCIAL CAPABILITY
(A Company Limited by Guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (Including Income and Expenditure Account)
FOR THE YEAR ENDED 30 NOVEMBER 2023
| Notes INCOME Grants and donations 2 Investment income 3 TOTAL INCOME EXPENDITURE Raising funds Charitable activities 4 TOTAL EXPENDITURE Net movement in funds 5 Total funds brought forward Total Funds Carried Forward 10&11 |
Unrestricted Funds 2023 2022 £ £ 191,755 - 611 - 192,366 - 23,080 - 173,272 - 196,352 - (3,986) - - - (3,986) - |
Restricted Funds 2023 2022 £ £ 66,500 - 0 - 66,500 - - - 8,268 - 8,268 - 58,232 - - - 58,232 - |
Total Funds 2023 2022 £ £ 258,255 - 611 - 258,866 - 23,080 - 181,540 - 204,620 - 54,246 - - - 54,246 - |
Total Funds 2023 2022 £ £ 258,255 - 611 - 258,866 - 23,080 - 181,540 - 204,620 - 54,246 - - - 54,246 - |
|---|---|---|---|---|
| - | ||||
| - - - - - - |
||||
The Statement of Financial Activities includes all gains and losses recognised during the year.
All incoming resources and resources expended derive from continuing activities.
The notes on pages 8 to 12 form part of the financial statements.
Page 6
THE CENTRE FOR FINANCIAL CAPABILITY (A Company Limited by Guarantee)
Company Registration No: 13029916
BALANCE SHEET
AS AT 30 NOVEMBER 2023
| Notes CURRENT ASSETS Debtors 8 Cash at bank and in hand CREDITORS:Amounts falling due within one year 9 TOTAL NET ASSETS FUNDS Unrestricted 10&11 Restricted TOTAL FUNDS |
2023 2022 £ £ 22,046 - 42,130 - 64,176 (9,930) - 54,246 - (3,986) - 58,232 - 54,246 - |
|---|---|
For the year ending 30 November 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors’ responsibilities:
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The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476;
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The directors acknowledge their responsibilities for complying with the requirements if the Act with respect to accounting records and the preparation of financial statements.
Approved by the directors and trustees on …………………………………………………. and signed on their behalf by:
…………………………………………………….………. Mrs C L Knight (Trustee)
The notes on pages 8 to 12 form part of these financial statements.
Page 7
THE CENTRE FOR FINANCIAL CAPABILITY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
1. ACCOUNTING POLICIES
a. Basis of Preparation
The Centre for Financial Capability is a private company limited by guarantee registered in England. 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 address of the registered office is given in the charity information on page 4 of these financial statements. The charity believes that every child in the UK should be supported to develop the skills and behaviours necessary to navigate critical financial decisions in later life starting at primary school. The charity is working to address this through working in schools, through research and seeking innovations to meet the urgent national need for a greater focus on financial education.
The charity constitutes a public benefit entity as defined in FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their Accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdon and Republic of Ireland (FRS 102), the Charities Act 2011 and the Companies Act 2006 and UK Generally Accepted Accounting Practice.
The financial statements are prepared on a going concern basis under the historical cost convention. The financial statements are presented in sterling which is the functional currently of the charity and rounded to the nearest pound.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
b. Income Recognition
All income is recognised in the Statement of Financial Activities (SOFA) once the charity has legal entitlement to income, there is sufficient certainty of receipt and it is probable that the income will be received, and amount of income can be measured reliably.
Grants and Donations
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Where donors specify the grant or donation must be used in a future accounting period, the income is deferred until those periods;
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When donors impose conditions which have to be fulfilled before the charity becomes entitled to use such income, the income is deferred until the period in which the pre-conditions are met.
When donors specify that grants or donations are for a particular restricted purpose, which does not amount to pre-conditions regarding entitlement, the income is included in income reserves with restricted funds when received.
c. Resources Expended
Resources expended are recognised in the Statement of Financial Activities on an accruals basis, inclusive of VAT. Individual costs are allocated between the various headings in the Statement of Financial Activities by reference to their underlying nature or reason for which those costs were incurred, on an estimated percentage basis.
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THE CENTRE FOR FINANCIAL CAPABILITY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
d.
Unrestricted and Restricted Funds
Unrestricted funds comprise income received or generated by reference to the general objectives of the charity without further specified purpose. Such funds may however be designated by the trustees for specific purposes from time to time.
Restricted funds are those donated for a specified purpose as laid down by the donor or as a result of a specific appeal or application. Such funds are kept separate from unrestricted funds of the charity and only related expenditure is charged against them.
e.
Debtors
Trade and other debtors are recognised at the settlement account due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
f. 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.
g. 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 provision are normally recognised at their settlement account after allowing for any trade discounts due.
h. Going Concern
The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from the authorising of these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
2. Income from Grants and Donations
| Grants Donations (includes net transfer from former unincorporated entity) |
Unrestricted Funds 2023 2022 £ £ 150,000 - 41,755 - 191,755 - |
Restricted Funds 2023 2022 £ £ 20,000 - 46,500 - 66,500 - |
Total Funds 2023 2022 £ £ 170,000 - 88,255 - 258,255 - |
|---|---|---|---|
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THE CENTRE FOR FINANCIAL CAPABILITY (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
3. Income from Investments
| Unrestricted Funds Restricted Funds 2023 2022 2023 2022 £ £ £ £ Bank interest 611 - - - Analysis of Expenditure on Charitable Activities Unrestricted Funds Restricted Funds 2023 2022 2023 2022 £ £ £ £ Programme delivery and innovation 71,411 - 689 - Advocacy 67,909 - 954 - Research 16,504 - 6,625 - Governance costs 17,448 - - - (see below) 173,272 - 8,268 - Governance Costs: Consultancy 13,340 - - - Accountancy 3,966 - - - Insurance 105 - - - Subscriptions 37 - - - 17,448 - - - |
Total Funds 2023 2022 £ £ 611 - Total Funds 2023 2022 £ £ 72,100 - 68,863 - 23,129 - 17,448 - 181,540 - 13,340 - 3,966 - 105 - 37 - 17,448 - |
|---|---|
4. Analysis of Expenditure on Charitable Activities
5. Net movement in funds
| This is stated after charging: Independent examiners fees: - external scrutiny - accountancy charges (including under provision re prior year £216) |
2023 2022 £ £ 1,250 - 2,716 - |
|---|---|
6. Acting Directors Costs
TCFC made payment to Treo ESG Limited of £35,200 as compensation for the secondment of Mr S Perry to the role of Acting Director of TCFC. Mr S Perry is a company director of Treo ESG Limited.
7. Taxation
As a registered charity The Centre for Financial Capability is exempt from tax on its income under Section 505 of the Taxes Act 1988 provided that such income is applied for charitable purposes only.
Page 10
(A Company Limited by Guarantee)
THE CENTRE FOR FINANCIAL CAPABILITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
| 8. | Debtors | ||||
|---|---|---|---|---|---|
| 2023 | 2022 | ||||
| £ | £ | ||||
| Other debtors | 20,171 | - | |||
| Prepayments | 1,875 | - | |||
| 22,046 | - | ||||
| 9. | Creditors: Amounts falling due within one year | ||||
| 2023 | 2022 | ||||
| £ | £ | ||||
| Trade creditors | 1,829 | - | |||
| Accruals | 8,101 | - | |||
| 9,930 | - | ||||
| 10. | Statement of funds | ||||
| Funds | at | Incoming | Resources | Funds at | |
| 01.12.22 | Resources | Expended | 30.11.23 | ||
| £ | £ | £ | £ | ||
| Unrestricted funds |
- | 192,366 | 196,352 | (3,986) | |
| Restricted funds: | |||||
| Research and outreach activity | - | 46,500 | 6,983 | 39,517 | |
| Research project |
- | 20,000 | 1,285 | 18,715 | |
| - | 66,500 | 8,268 | 58,232 | ||
| Total Funds |
- | 258,866 | 204,620 | 54,246 |
Restricted funds:
Research and outreach activity – the funding from Columbia Threadneedle is to support much needed research among, and create practical resources to help thousands of small local charities supporting children and young people with the socioeconomic hardship acquire the skills and knowledge needed through effective financial education.
Research project – this comprises a one off grant from the LSEG Foundation to fund research amongst teachers and practitioners on challenges and the best ways to deliver financial education through school curriculums. The project was expected to run for one year commencing in February 2023.
Page 11
THE CENTRE FOR FINANCIAL CAPABILITY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
11. Analysis of Net Assets Between Funds
| Debtors Cash at Bank and in Hand Creditors |
Unrestricted Funds 2023 2022 £ £ 2,780 - - - (6,766) - (3,986) - |
Restricted Funds 2023 2022 £ £ 19,266 - 42,130 - (3,164) - 58,232 - |
Total Funds 2023 2022 £ £ 22,046 - 42,130 - (9,930) - 54,246 - |
|---|---|---|---|
12. Transactions with trustees and connected persons
TCFC trustees are appointed on a voluntary basis and are not entitled to financial remuneration or benefits.
Trustees are entitled to claim reasonable expenses incurred in the course of fulfilling their duties. No such claims were made in the year.
Mrs T Tang is also a trustee of Columbia Threadneedle from whom TCFC received a donation of £46,500.
Ms J Goodland is also a trustee of the LSEG Foundation who provided a grant of £20,000 to TCFC.
Ms L M Hill is also a company direct and chief executive officer of GoHenry Limited who provided a grant of £20,000 to TCFC.
Mrs C L Knight is a trustee of MyBnk a financial education charity. TCFC made grants of £58,760 to MyBnk to deliver financial education programmes in primary schools.
Mrs C L Knight is also a company director and chief executive officer of TISA a company who provide pro bono secretariat and treasury functions to TCFC.
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