Company number: 14237798 Charity number: 1204664
The Chancery Lane Project
Report and financial statements
For the period ended 31 December 2023
The Chancery Lane Project
Contents
| For the period ended 31 December 2023 | |
|---|---|
| Reference and administrative information | 1 |
| Trustees’ annual report | 2 |
| Independent auditor’s report | 7 |
| Statement of financial activities (incorporating an income and expenditure account) | 12 |
| Balance sheet | 13 |
| Statement of cash flows | 14 |
| Notes to the financial statements | 15 |
The Chancery Lane Project
Reference and administrative information
For the period ended 31 December 2023
Company number 14237798 Country of incorporation United Kingdom Charity number 1204664 Country of registration England & Wales Registered office and operational address 5 Laughton Lodge Common Lane, Lewes, East Sussex BN8 6BY
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: Matthew Gingell Chair (Appointed July 2022) Yasmin Waljee Appointed July 2022 Sarah Oliver Scemla Appointed July 2022 Jonathan Saverimuttu Appointed January 2024 Keya Advani Appointed January 2024 Lisa Jordan Appointed January 2024 Jonathan Hakim Appointed June 2024 Stephen Thomas Appointed June 2024 Key management Ben Metz Executive Director personnel Simone Potter Director of Programmes Alaric King Director of Digital and UX Ellie Mae O’Hagan Director of Comms and Engagement Samantha Leahy-Harland Director of Operations Bankers Natwest 8-11 Pavilion Buildings Castle Square Brighton BN8 1DP Auditor Sayer Vincent LLP Chartered Accountants and Statutory Auditor 110 Golden Lane LONDON EC1Y 0TG
1
The Chancery Lane Project
Trustees’ annual report
For the period ended 31 December 2023
The trustees present their report and the audited financial statements for the period ended 31 December 2023. The accounting period is from the incorporation of The Chancery Lane Project on 15 July 2022 to 31 December 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, the requirements of a directors’ report as required under company law, and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.
Objectives and activities
Purposes and aims
The charity's objects ("Objects") are specifically restricted to:
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for the public benefit, advancing the education of the public (including, without limitation, lawyers and law students) in subjects relating to sustainable development and the protection, enhancement and rehabilitation of the environment and to promote study and research in such subjects (including, without limitation, the role of the law and contractual agreements in contributing to sustainable development and protecting, enhancing and rehabilitating the environment) provided that the useful results of such study are published;
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promoting sustainable development for the benefit of the public including without limitation by encouraging legal and contractual drafting practices which encourage businesses, investors and other actors to preserve, conserve and protect the environment and use resources prudently; and
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advancing any other exclusively charitable purposes under the laws of England and Wales which the trustees may from time to time determine.
The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set.
The Chancery Lane Project was set up as a project within the charity The Centre for Innovation in Voluntary Action, with the transfer of assets and activities taking place on 31st December 2023. The activities within The Chancery Lane Project as an independent charity were limited to set up and receipt of a new grant.
Since its inception in 2019, The Chancery Lane Project as a project within The Centre for Innovation in Voluntary Action has:
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created a collaborative and climate-conscious community of over 3,000 legal and industry professionals, from more than 330 organisations, working in over 110 countries
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harnessed the power of that community to create groundbreaking clauses and best practice guidance on how to use contracts to decarbonise a business, its operations and supply chain
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enabled multinational corporations and major law firms to use climate-conscious language and clauses in their legal activities, from client contracts to supply chain agreements.
The Chancery Lane Project's initial focus was on the UK. However, it has rapidly expanded to the US, China, mainland Europe, Asia Pacific, the Middle East, Australia and Latin America. As part of our international transpositions project, we have established and empowered climate contracting networks in more than 35 jurisdictions around the world.
2
The Chancery Lane Project
Trustees’ annual report
For the period ended 31 December 2023
Achievements and performance
The charity's main activities and who it tries to help are described below. All its charitable activities focus on promoting sustainable development for the benefit of the public including without limitation by encouraging legal and contractual drafting practices, and are undertaken to further The Chancery Lane Project’s charitable purposes for the public benefit.
In the period to 31st December 2023 our achievements were limited to setting The Chancery Lane Project up as an independent charity and receiving a significant new grant.
Financial review
The Charity’s funding comes in the form of grants from trusts and foundations. During the period total incoming resources were £2,301,376 and expenditure just £9,000. The total income resources were an initial tranche of a three year grant from the IKEA Foundation of £1.5m, with the remainder being the transfer of assets from our fiscal sponsor The Centre for Innovation in Voluntary Action. The only item of expenditure relates to the audit for the period.
At the end of 2023 our reserves levels are £2,292,376, of which £801,376 are considered general funds. £1.5m was held as cash at the end of the year and the remainder being a receivable from The Centre for Innovation in Voluntary Action related to unspent funding for the project at 31st December 2023.
Principal risks and uncertainties
The principal risks to which the charity is exposed are:
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Funding - We are funded through large grants from trusts and foundations which are in place for a finite period of time which results in potentially significant drops in funding when any one grant ends. We are therefore reliant on ongoing fundraising efforts to find new grant funding. We regularly review our cash flows and funder pipeline, with our fundraising efforts led by our Executive Director and regularly reviewed by the trustee board.
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People - We have been heavily reliant on individual staff members and trustees whilst we were incubated in The Centre for Innovation in Voluntary Action. The new grant from the IKEA Foundation has allowed us to grow the staff team and we have recruited new trustees in 2024. We now need to create succession plans for key personnel and trustees.
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Impact - The ultimate impact we are aiming to achieve is that greenhouse gas emissions reduce as a result of organisations using climate aligned contracts. This impact is difficult to measure due to confidentiality of contracts and the competing influences on reductions of any organisation’s emissions. We are working with an external consultant appointed by the IKEA Foundation to develop systems to measure our impact.
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Reputation - We are dependent on our reputation both to influence organisations to utilise climate contracting and to obtain funding. We work within non-contentious law and monitor risks to our reputation.
Our risk management mechanisms are under development as we grow and as we develop a larger trustee board the organisation’s risk register and mitigating actions will be updated.
Reserves policy
Our income comes in the form of grants from trusts and foundations which, while largely unrestricted, we are expected to spend over the term of the grant. This means that we are not able to build up “our own'' unrestricted reserves easily and therefore we have to manage our sustainability through our fundraising activities and careful cash flow planning.
We carefully monitor our cash and reserve levels to ensure that we have the resources to continue operating. In the scenario that we do not raise enough funds, we must ensure that we wind down
3
The Chancery Lane Project
Trustees’ annual report
For the period ended 31 December 2023
the charity in a manner that ensures all our obligations are met. The level of reserves required to ensure that we can meet all obligations and projected date at which we would need to start winding down operations is reviewed on a quarterly basis.
On 31st December 2023 the staff related wind up costs were calculated as £299k, with additional committed costs calculated as c.£50k. Total reserves at the end of 2023 were £2,292,376 and general reserves were £801,376. This high level of reserves is due to grant funding which is received upfront and we will spend this over the length of the grant.
Fundraising
The Chancery Lane Project’s fundraising is focused purely on grant funding and is led by the Executive Director. We comply with relevant fundraising regulations and codes, and have received no complaints due to our fundraising activities.
Plans for the future
We became an independent charity, received a large new grant from the IKEA Foundation and agreed the transfer of assets from The Centre for Innovation in Voluntary Action in 2023. In 2024 we will utilise our increased funding and implement our strategy by:
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Increasing managerial capacity. In the first half of 2024 we have recruited a Director of Operations, Director of Engagement and HR manager, and plan to recruit a fundraising manager and a monitoring, learning and evaluation manager.
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Develop our priority sector teams across the Built Environment, Finance and Capital Markets and Agriculture sectors.
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Create an engagement strategy and build a stronger engagement and comms team.
Structure, governance and management
The organisation is a charitable company limited by guarantee, incorporated on 15 July 2022 and registered as a charity on 11 September 2023.
The company was established under a memorandum of association which established the objects and powers of the charitable company and is governed under its articles of association.
Details of trustees who served during the year and to the date of the report are shown at the front of this report. New trustees are recruited and appointed by the existing trustees. The minimum number of trustees is three and the maximum is twelve. All trustees give their time voluntarily and receive no benefits from the charity. No expenses were reclaimed by trustees from the charity in 2023.
The trustee board is responsible for the management and administration of the charity. An Executive Director is appointed by the trustees to manage the day-to-day operations of the charity. To facilitate effective operations, the Executive Director has delegated authority, within terms of delegation approved by the trustees,
Statement of responsibilities of the trustees
The trustees (who are also directors of The Chancery Lane Project for the purposes of company law) are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming
4
The Chancery Lane Project
Trustees’ annual report
For the period ended 31 December 2023
resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
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Select suitable accounting policies and then apply them consistently
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Observe the methods and principles in the Charities SORP
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Make judgements and estimates that are reasonable and prudent
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State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements
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Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
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There is no relevant audit information of which the charitable company’s auditor is unaware
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The trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information
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 total number of such guarantees at 31 December 2023 was 3. The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.
5
The Chancery Lane Project
Trustees’ annual report
For the period ended 31 December 2023
Auditor
Sayer Vincent LLP was re-appointed as the charitable company's auditor during the year and has expressed its willingness to continue in that capacity.
The directors’ annual report has been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.
The trustees’ annual report has been approved by the trustees on 3 July 2024 and signed on their behalf by
Matthew Gingell Chair
6
Independent auditor’s report
To the members of
The Chancery Lane Project
Opinion
We have audited the financial statements of The Chancery Lane Project (the ‘charitable company’) for the period ended 31 December 2023 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including 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:
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Give a true and fair view of the state of the charitable company’s affairs as at 31 December 2023 and of its incoming resources and application of resources, including its income and expenditure for the period then ended
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Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice
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Have been prepared in accordance with the requirements of the Companies Act 2006
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 charitable company 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.
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 Chancery Lane Project'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.
7
Independent auditor’s report
To the members of
The Chancery Lane Project
Other Information
The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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The information given in the trustees’ annual report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
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The trustees’ annual report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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Adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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The financial statements are not in agreement with the accounting records and returns; or
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Certain disclosures of trustees’ remuneration specified by law are not made; or
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We have not received all the information and explanations we require for our audit; or
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● The directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ annual report and from the requirement to prepare a strategic report.
Responsibilities of trustees
As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 charitable company’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 charitable company or to cease operations, or have no realistic alternative but to do so.
8
Independent auditor’s report
To the members of
The Chancery Lane Project
Auditor’s responsibilities for the audit of the financial statements
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 the 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 are set out below.
Capability of the audit in detecting irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
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We enquired of management, which included obtaining and reviewing supporting documentation, concerning the charity’s policies and procedures relating to:
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Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;
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Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud;
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The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
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We inspected the minutes of meetings of those charged with governance.
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We obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the charity from our professional and sector experience.
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We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit.
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We reviewed any reports made to regulators.
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We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations.
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We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
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In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
9
Independent auditor’s report
To the members of
The Chancery Lane Project
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities . This description forms part of our auditor’s report.
Use of our report
This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members 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 anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Noelia Serrano (Senior statutory auditor)
Date: 10 July 2024
for and on behalf of Sayer Vincent LLP, Statutory Auditor 110 Golden Lane, LONDON, EC1Y 0TG
10
The Chancery Lane Project
Statement of financial activities (incorporating an income and expenditure account)
For the period ended 31 December 2023
| For the period ended 31 December 2023 | ||
|---|---|---|
| Note Income from: 2 3 4 Reconciliation of funds: Total funds carried forward Net movement in funds Total funds brought forward Total expenditure Net income for the year Charitable activities Total income Expenditure on: Donations and legacies |
Unrestricted £ 801,376 |
2023 Restricted Total £ £ 1,500,000 2,301,376 1,500,000 2,301,376 9,000 9,000 9,000 9,000 1,491,000 2,292,376 1,491,000 2,292,376 - - 1,491,000 2,292,376 |
| 801,376 | ||
| - | ||
| - | ||
| 801,376 | ||
| 801,376 - |
||
| 801,376 |
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 11 to the financial statements.
11
The Chancery Lane Project
Company no. 14237798
Balance sheet
As at 31 December 2023
| As at 31 December 2023 Balance sheet |
Company | no. 14237798 |
|---|---|---|
| Note Current assets: 8 Liabilities: 9 11 Total unrestricted funds Restricted income funds Unrestricted income funds: General funds Total charity funds Debtors The funds of the charity: Creditors: amounts falling due within one year Total net assets Cash at bank and in hand |
£ 825,069 1,500,000 |
2023 £ 2,292,376 |
| 2,325,069 (32,692) |
||
| 801,376 | ||
| 1,491,000 801,376 |
||
| 2,292,376 |
Approved by the trustees on 3 July 2024 and signed on their behalf by
Matthew Gingell Chair
12
The Chancery Lane Project
Statement of cash flows
For the period ended 31 December 2023
| For the period ended 31 December 2023 | ||||
|---|---|---|---|---|
| Cash flows from operating activities Net income for the reporting period (as per the statement of financial activities) (Increase) in debtors Increase in debtors Net cash provided by operating activities Analysis of cash and cash equivalents and of net debt Cash at bank and in hand Total cash and cash equivalents Cash and cash equivalents at the end of the period Change in cash and cash equivalents in the period Cash and cash equivalents at the beginning of the period |
At 15 July 2022 £ - |
Cash flows £ 1,500,000 |
£ £ 2,292,376 (825,069) 32,692 1,500,000 1,500,000 - 1,500,000 Other non- cash changes At 31 December 2023 £ £ - 1,500,000 2023 |
|
| 1,500,000 | ||||
| 1,500,000 - 1,500,000 At 31 December 2023 £ 1,500,000 |
||||
| - | 1,500,000 | - | 1,500,000 |
13
The Chancery Lane Project
Notes to the financial statements
For the period ended 31 December 2023
1 Accounting policies
a) Statutory information
The Chancery Lane Project is a charitable company limited by guarantee and is incorporated in England and Wales.
The registered office address is 5 Laughton Lodge, Laughton, Lewes BN8 6BY.
b) Basis of preparation
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.
In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.
c) Public benefit entity
The charity meets the definition of a public benefit entity under FRS 102.
The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.
d) Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
e) Income
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.
Income from 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.
Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.
f) Donations of gifts, services and facilities
Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably.
On receipt, donated gifts, 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.
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The Chancery Lane Project
Notes to the financial statements
For the period ended 31 December 2023
- 1 Accounting policies (continued)
g) Fund accounting
Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.
Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.
h) 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.
i) Governance costs
- Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.
j) Tangible fixed assets
Items of equipment are capitalised where the purchase price exceeds £2,000.
k) Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
l) Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
15
The Chancery Lane Project
Notes to the financial statements
For the period ended 31 December 2023
1 Accounting policies (continued)
m) Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
n) Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
o) Pensions
The Chancery Lane Project uses a defined contribution pension scheme. Expenditure is recognised in the period it is incurred with any outstanding payments recognised as a creditor at the balance sheet date. There were no staff employed by The Chancery Lane Project in the year.
2 Income from donations and legacies
| Income from donations and legacies | |||
|---|---|---|---|
| IKEA Foundation Centre for Innovation in Voluntary Action Draper Richards Kaplan Foundation Grants |
Unrestricted £ - 762,848 38,528 |
£ 1,500,000 - - Restricted |
2023 Total £ 1,500,000 762,848 38,528 |
| 801,376 | 1,500,000 | 2,301,376 |
The income from the Centre for Innovation in Voluntary Action relates to the reserves transferred as part of the asset purchase agreement of The Chancery Lane Project as a project from our initial fiscal sponsor the Centre for Innovation in Voluntary Action.
3 Analysis of expnditure
The Chancery Lane Project's activities were transferred from the Centre for Innovation in Voluntary Action on 31 December 2023. All expenditure in the period is in relation to audit costs.
16
The Chancery Lane Project
Notes to the financial statements
For the period ended 31 December 2023
- 4 Net income for the year
| Net income for the year | |
|---|---|
| This is stated after charging / (crediting): | |
| 2023 | |
| £ | |
| Auditor's remuneration (excluding VAT): | |
| Audit | 9,000 |
- 5 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel
The average staff FTE employed to work on the project within CIVA in 2023 was 11.75, their total cost was £747,683.
The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:
| 2023 | ||
|---|---|---|
| No. | ||
| £90,000 | - £99,999 | 2 |
The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £248,388.
The charity trustees were neither paid nor received any other benefits from employment with the charity in the reporting period. No charity trustee received payment for professional or other services supplied to the charity.
The charity did not reimburse any trustee expenses during the reporting period.
6 Related party transactions
Jonathan Saverimuttu is a trustee of CIVA and was at the time that the asset purchase agreement was made. He was supporting The Chancery Lane Project at that time, and became a trustee for The Chancery Lane Project in January 2024.
Lisa Jordan is an employee of the Draper Richard Kaplan Foundation, who provide funding to the charity. As part of their support to grantees they request that they have a seat on the board. They agreed a grant with The Chancery Lane Project within CIVA to the value of $300k starting in November 2022. The grant was transferred to the Charity in November 2023. A total of £38,528 was recognised in relation to this grant in the The Chancery Lane Project as an independent charity in the reporting period.
There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.
7 Taxation
The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.
17
The Chancery Lane Project
Notes to the financial statements
For the period ended 31 December 2023
- 8 Debtors
| e period ended 31 December 2023 Debtors |
|
|---|---|
| Other debtors Prepayments Accrued income |
2023 £ 764,512 22,028 38,528 |
| 825,069 |
Prepayments have been transferred from CIVA to The Chancery Lane Project as part of the asset purchase agreement.
- 9 Creditors: amounts falling due within one year
| Creditors: amounts falling due within one year agreement. |
|
|---|---|
| Accruals Other creditors |
2023 £ 23,692 9,000 |
| 32,692 |
Other creditors have been transferred from CIVA to The Chancery Lane Project as part of the asset purchase agreement.
10 Analysis of net assets between funds (current period)
| Total restricted funds General funds Unrestricted funds: Net assets at 31 December 2023 Net current assets Movements in funds (current period) Restricted funds: IKEA Foundation Total funds Total unrestricted funds |
At 15 July 2022 £ - |
General unrestricted £ 1,491,000 |
Restricted £ 801,376 |
Total funds £ 2,292,376 |
|---|---|---|---|---|
| 1,491,000 | 801,376 | 2,292,376 | ||
Income & gains £ 1,500,000 |
Expenditure & losses £ (9,000) |
At 31 December 2023 £ 1,491,000 |
||
| - | 1,500,000 | (9,000) | 1,491,000 | |
| - | 801,376 | - | 801,376 | |
| - | 801,376 | - | 801,376 | |
| - | 2,301,376 | (9,000) | 2,292,376 |
- 11 Movements in funds (current period)
The narrative to explain the purpose of each fund is given at the foot of the note below.
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The Chancery Lane Project
Notes to the financial statements
For the period ended 31 December 2023
Purposes of restricted funds
IKEA Foundation - A three year programmatic grant from the IKEA Foundation to enable the mainstream legal sector to use the power of contracts to create transformative climate action across the global economy. This grant is for all our current activities rather than any specific workstreams.
12 Legal status of the charity
The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £10.
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