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2023-09-30-accounts

Company no. 04584819 Charity no. 1201993

Karten Network

Report and Unaudited Financial Statements

30 September 2023

Karten Network

Reference and administrative details

For theyear ended 30 September 2023
Company number 04584819
Charity number 1201993
Registered office Karten Network C/O The Ian Karten Charitable Trust
64 Nile Street
London
N1 7SR
Trustees Trustees, who are also directors under company law, who served during
the year and up to the date of this report were as follows:
M Bianconi
R A Boyce
P J Doyle
D A Finch
S Haddock appointed 23 July 2023
A E Jones
J L Moores appointed 23 July 2023
J Rees-Proud appointed 1 September 2023
R J Slaughter
E Stewart appointed 23 July 2023
D Webster
Company secretary A E Jones
Bankers Lloyds Bank plc
25 Gresham Street
London
EC2V 7HN
Independent Godfrey Wilson Limited
examiners Chartered accountants and statutory auditors
5th Floor Mariner House
62 Prince Street
Bristol
BS1 4QD

1

Karten Network

Report of the trustees

For the year ended 30 September 2023

The trustees present their report along with the financial statements of the charity for the year ended 30 September 2023.

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 (effective from January 2019).

Structure, governance and management

The Karten Network Limited was established in 2002. In 2023, the company converted into a charity by amending its Articles so that they were suitable for a charity. The charity, the Karten Network, is a charitable company limited by guarantee, regulated by both Companies House and the Charity Commission. The board now comprises charity trustees who are also company directors.

Appointment of trustees

Any person who is willing to act as a director, and is permitted by law to do so, may be appointed to be a director by a resolution of the directors, provided that no appointment of a director may be made which would cause the number of directors to exceed any number fixed as the maximum number of directors. The Karten Network uses a skills audit to inform the recruitment of new trustees to ensure the governance of the charity is effective and rigorous moving forwards.

Trustees are appointed for a term of three years at the end of which they shall retire. A person retiring from the office of director shall be eligible for re-appointment but, where the retirement is at the end of a consecutive period of nine years or more in office, the director shall not be eligible for reappointment for a further consecutive term of office unless agreed otherwise by the passing of a unanimous resolution by the directors who shall determine the length of any further term.

Objectives and activities

The charity’s objects are restricted specifically to the relief of persons in need due to their physical, cognitive, sensory or learning disabilities in particular but not exclusively by providing access to electronic assistive technologies and education and training in using such technology.

The Karten Network supports people with disabilities to optimise their achievements and opportunities through engagement with and development of technological solutions. To fulfill its mission, the Network works with organisations in the UK and Israel, focusing on these core themes:

2

Karten Network

Report of the trustees

For the year ended 30 September 2023

The strategic goals of the charity are:

The Karten Network comprises a network of centres using technology and assistive technology to improve outcomes for disabled people. The centres are funded through the Ian Karten Charitable Trust, with the purpose of improving the quality of life and independence of people with congenital or acquired physical, cognitive, sensory, learning disabilities or mental health problems. The Karten Centres provide supportive learning environments together with access to the latest assistive and information technologies and are in a wide range of host organisations. The Karten Network facilitates peer networking, sharing good practice and improving assistive technology related knowledge, skills and understanding across the organisations we support.

Nuvoic project

In addition to the support provided for the Karten Centres, the Network has been involved as a partner in the Nuvoic project, funded by the EU’s Horizon 2020 programme. Led by developers Voiceitt, the aim of Nuvoic was to develop speech recognition technology for people with impaired or non-standard speech, supporting their communication and independence.

The Karten Network led on user involvement, helping our participants to:

Public benefit statement

Through the wide range of activities undertaken the, the charity delivers public benefit to a wide range of stakeholders including: learners and service users; their parents and carers; organisations (Karten Centres); and professionals.

When developing strategy, trustees are focused on impact on the end users of technology. Trustees have due regard for the Charity Commission's guidance on public benefit. At the time of undergoing conversion to a charitable entity this was discussed with the lawyers supporting the process and trustees received guidance aligned to their new role and responsibilities.

3

Karten Network

Report of the trustees

For the year ended 30 September 2023

Achievements and performance

The charity’s main achievements for 2022-23 are summarised below:

Karten Centre beneficiaries benefit directly from the improved use of technology and ATech in the organisations where they access services. Professionals and parents and carers supporting disabled people gain ATech related awareness, confidence and competences. Thus, the Karten Network’s activities result in improved awareness and improved quality of support available for the technology users. This has a significant impact on the quality of individuals’ lives as, when harnessed effectively, technology improves independence and makes things possible that previously were not, ultimately helping individuals to take control of their lives, live more fulfilled lives and realise their potential.

Through engagement with Policy Connect’s All Party Parliamentary Group for Assistive Technology (APPGAT) the Karten Network has made substantive contributions to studies in which recommendations are fed back to government policy makers.

In addition to the support provided for Karten Centres, the Network has wider reach as non-Karten Centre organisations supporting disabled people also access resources, support and information e.g. from the website.

Financial review

During the year, the Karten Network received income of £69k from the Ian Karten Charitable Trust. Related expenditure was around £64k on administration of the Karten Network and support for Centres. The Nuvoic project restricted income for 2023 was around £40k with £64k of expenditure. Income and expenditure has decreased on the prior year, as the project is nearing completion. In comparison, the Nuvoic project income was £104k and expenditure was £114k for 2022.

Reserves policy

Free reserves should total three months of total organisational operating costs based on the next budget year. For 2023, one month's unrestricted expenditure was around £5,000, so reserves of £15,000 are on target. This is reviewed regularly to ensure that it meets the organisation's changing needs and circumstances.

Plans for future periods

The main objective for the financial year 2023/24 is to continue operations to support Karten Centres in the Karten Network. Additionally activity will be undertaken to pursue opportunities to participate in externally funded research and development activities to extend the reach and impact of the Network.

4

Karten Network

Report of the trustees

For the year ended 30 September 2023

Statement of responsibilities of the trustees

The trustees (who are also directors of the charity for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing those financial statements the trustees are required to:

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

The trustees are 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.

Members of the charity guarantee to contribute an amount not exceeding £10 to the assets of the charity in the event of winding up. The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Independent examiners

Godfrey Wilson Limited were appointed as independent examiners to the charitable company during the year and have expressed their willingness to continue in that capacity.

Approved by the trustees on 22 February 2024 and signed on their behalf by

Joanne Rees-Proud - Trustee

5

Independent examiner's report

To the trustees of

Karten Network

I report to the trustees on my examination of the accounts of Karten Network (the charitable company) for the year ended 30 September 2023, which are set out on pages 7 to 17.

Responsibilities and basis of report

As the trustees of the charitable 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 charitable 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 charitable 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 material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

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.

William Guy Blake

Date: 23 February 2024 William Guy Blake ACA Member of the ICAEW For and on behalf of: Godfrey Wilson Limited Chartered accountants and statutory auditors 5th Floor Mariner House

62 Prince Street Bristol BS1 4QD

6

Karten Network

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 30 September 2023

Restricted Unrestricted
Note
£
£
Income from:
Donations
3
-
69,000
Charitable activities
4
39,968
-
Total income
39,968
69,000
Expenditure on:
Charitable activities
64,091
64,743
Total expenditure
6
64,091
64,743
Net income / (expenditure)
and net movement in funds
7
(24,123)
4,257
Reconciliation of funds:
Total funds brought forward
(8,826)
43,915
Total funds carried forward
(32,949)
48,172		 2023
Total
£
69,000
39,968
108,968
128,834
128,834
(19,866)
35,089
15,223		 Restated
2022
Total
£
39,311
107,033
146,344
167,578
167,578
(21,234)
56,323
35,089

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 13 to the accounts.

Prior year income has been restated due to the organisation's registration as a charity, and resulting adoption of the Charities Statement of Recommended Practice (see note 1(a) for further details). Grant income previously deferred is now reflected in income as shown in note 15.

7

Karten Network

Balance sheet

As at 30 September 2023

Note
Current assets
Debtors
10
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within 1 year
11
Net current assets
Net assets
12
Funds
13
Restricted funds
Unrestricted funds
Total charity funds		 £
-
25,039
25,039
(9,816)		 2023
£
15,223
15,223
(32,949)
48,172
15,223		 Restated
2022
£
14,547
31,068
45,615
(10,526)
35,089
35,089
(8,826)
43,915
35,089

The directors are satisfied that the company is entitled to exemption from the provisions of the Companies Act 2006 (the Act) relating to the audit of the financial statements for the year by virtue of section 477(2), and that no member or members have requested an audit pursuant to section 476 of the Act.

The directors acknowledge their responsibilities for:

These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

Approved by the trustees on 22 February 2024 and signed on their behalf by

Joanne Rees-Proud - Trustee

8

Karten Network

Notes to the financial statements

For the year ended 30 September 2023

1. Accounting policies

a) Basis of preparation

Karten Network meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

b) Going concern basis of accounting

c) Income

Income from the 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.

d) Donated services and facilities

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

9

Karten Network

Notes to the financial statements

For the year ended 30 September 2023

f) Funds accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the 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.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

h) Allocation of support and governance costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Governance costs are the costs associated with the governance arrangements of the charity, including the costs of complying with constitutional and statutory requirements and any costs associated with the strategic management of the charity’s activities. Support and governance costs are allocated in full to charitable activities on the basis that no significant fundraising is undertaken.

i) 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.

j) 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.

k) Creditors

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.

l) Financial instruments

The charitable company 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 recognised at amortised cost using the effective interest method.

10

Karten Network

Notes to the financial statements

For the year ended 30 September 2023

m) Accounting estimates and key judgements

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

There are no key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements.

2. Prior period comparatives: statement of financial activities

Income from:
Donations and legacies
Charitable activities
Total income
Expenditure on:
Charitable activities
Total expenditure
Net income / (expenditure)
and net movement in funds		 Restricted
£
£
-
39,311
107,033
-
107,033
39,311
116,762
50,816
116,762
50,816
(9,729)
(11,505)
Unrestricted		 2022
Total
£
39,311
107,033
146,344
167,578
167,578
(21,234)

11

Karten Network

Notes to the financial statements

For the year ended 30 September 2023

3. Income from donations

Income from donations
Ian Karten Charitable Trust
Total income from donations		 2023
Total
£
69,000
69,000		 2022
Total
£
39,311
39,311

All income from donations in the current and prior period is unrestricted.

4. Income from charitable activities

EU Horizons 2020
Loughborough University
Total income from charitable activities		 2023
Total
£
39,968
-
39,968		 Restated
2022
Total
£
104,533
2,500
107,033

All income from charitable activities in the current and prior period is restricted.

5. Government grants

The charitable company receives government grants, defined as funding from the European Commission to fund charitable activities. The total value of such grants in the period ending 30 September 2023 was £39,968 (2022: £104,533). There are no unfulfilled conditions or contingencies attaching to this grant.

12

Karten Network

Notes to the financial statements

For the year ended 30 September 2023

6. Total expenditure

Charitable
activities
£
Freelance costs
99,172
IT costs
-
Insurance
-
Accountancy
-
Consultancy
869
Subscriptions
-
Bank charges
-
Office costs
-
Legal and professional
-
Sub-total
100,041
Allocation of support and governance costs
28,793
Total expenditure
128,834
Total governance costs were £3,650 (2022: £9,874).		 Support and
governance
costs
£
15,678
431
2,458
2,526
-
4,306
78
1,516
1,800
28,793
(28,793)
-		 2023 Total
£
114,850
431
2,458
2,526
869
4,306
78
1,516
1,800
128,834
-
128,834

Prior period comparative

Prior period comparative
Freelance costs
IT costs
Insurance
Accountancy
Consultancy
Subscriptions
Bank charges
Office costs
Legal and professional
Sub-total
Allocation of support and governance costs
Total expenditure		 Charitable
activities
£
126,515
-
-
-
7,656
-
-
-
-
134,171
33,407
167,578		 Support and
governance
costs
£
14,239
281
1,660
1,719
-
4,800
129
2,085
8,494
33,407
(33,407)
-		 2022 Total
£
140,754
281
1,660
1,719
7,656
4,800
129
2,085
8,494
167,578
-
167,578

13

Karten Network

Notes to the financial statements

For the year ended 30 September 2023

7. Net movement in funds

This is stated after charging:

Trustees' remuneration
Trustees' reimbursed expenses
Independent examiner's remuneration:
Independent examination (ex VAT)
Other services (ex VAT)		 2023
£
Nil
521
1,850
350		 2022
£
Nil
Nil
Nil
1,150

Trustees' reimbursed expenses relates to travel expenses for 3 trustees to attend board meetings.

8. Staff costs and numbers

The charity does not employ staff. The trustees are all volunteers and there is a part-time administrator and other consultants engaged on a freelance basis.

The key management personnel of the charitable company comprise the Trustees, Development Co-ordinator and Technology Advisor. The total benefits of the key management personnel were £58,672 (2022: £53,552).

9. Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

10. Debtors

Debtors
2023 2022
£ £
Accrued income - 14,547

11. Creditors: amounts due within 1 year

Accruals
Other creditors		 2023
£
2,220
7,596
9,816		 Restated
2022
£
1,380
9,146
10,526

14

Karten Network

Notes to the financial statements

For the year ended 30 September 2023

12. Analysis of net assets between funds

Analysis of net assets between funds
Current assets
Current liabilities
Net assets at 30 September 2023
Prior period comparative
Current assets
Current liabilities
Net assets at 30 September 2022		 Restricted
funds
£
(25,353)
(7,596)
(32,949)
Restricted
funds
£
320
(9,146)
(8,826)		 £
50,392
(2,220)
48,172
£
45,295
(1,380)
43,915
Unrestricted
funds
Unrestricted
funds		 Total
funds
£
25,039
(9,816)
15,223
Total
funds
£
45,615
(10,526)
35,089

15

Karten Network

Notes to the financial statements

For the year ended 30 September 2023

13. Movements in funds

Restricted funds
Nuvoic project
Total restricted funds
Total unrestricted funds
Total funds		 At 1 October
2022
£
(8,826)
(8,826)
43,915
35,089		 Income
£
39,968
39,968
69,000
108,968		 £
(64,091)
(64,091)
(64,743)
(128,834)
Expenditure		 £
(32,949)
At 30
September
2023
(32,949)
48,172
15,223

Purposes of restricted funds

Nuvoic project

Funded by the EU’s Horizon 2020 programme and led by developers Voiceitt, the aim of Nuvoic was to develop speech recognition technology for people with impaired or non-standard speech, supporting their communication and independence.

Funds in deficit

The Nuvoic project is in deficit at both 30 September 2022 and 2023, as the funding for this project is awarded in arrears and is recognised on a receipts basis. The final funding instalment was received in November 2023 and will be recognised in the next financial year, bringing the project balance to nil.

Prior period comparative
Restricted funds
Nuvoic project
Loughborough Uni
Total restricted funds
Total unrestricted funds
Total funds		 At 1 October
2021
£
903
-
903
55,420
56,323		 Income
£
104,533
2,500
107,033
39,311
146,344		 £
(114,262)
(2,500)
(116,762)
(50,816)
(167,578)
Expenditure		 At 30
September
2022
£
(8,826)
-
(8,826)
43,915
35,089

14. Related party transactions

There were no related party transactions in the current or prior period.

16

Karten Network

Notes to the financial statements

For the year ended 30 September 2023

15. Prior period restatement

On 17 February 2023, Karten Network registered as a charity with the Charity Commission for England & Wales (no. 1201993). The prior year comparatives have been restated on adoption of the Charities Statement of Recommended Practice, as this requires that grant income previously deferred be recognised in income. The impact upon income, net result for the year, deferred income, and funds is shown below.

Income

Original income
Release of deferred income balance at 30 September 2021
Adjustment for deferred income in previous periods
As restated
Net result for the year
Original net result for the year
Adjustment for release of deferred income
As restated
Deferred income
Original deferred income
Adjustment for release of deferred income
As restated
Total funds
Original funds
Adjustment for release of deferred income
As restated		 35,089
(56,323)
2022
£
-
35,089
35,089		 2022
£
167,578
(21,234)
146,344
2022
£
-
(21,234)
(21,234)
2022
£
35,089
(35,089)
-
2021
£
-
56,323
56,323

17