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2021-03-31-accounts

Trustees Report and Financial Statements 2020 - 2021

Centre 70, 46 Knights Hill, West Norwood, SE27 0JD

Registered Charity No. 296020 Registered Company No. 2087528

Centre 70 Trustees Report and Financial Accounts

Contents

Introduction ........................................................................................................................................................ 2 Chair’s Report .................................................................................................................................................... 2 Purpose and Outcomes ................................................................................................................................... 3 Charitable Activities .......................................................................................................................................... 3 Structure, Governance and Management ................................................................................................... 7 Financial Review .............................................................................................................................................. 11 Report of the Independent Auditors to the members of Centre 70 ......................................................... 13 Statement of Financial Activities ................................................................................................................... 17 Statement of Financial Position ..................................................................................................................... 18 Statement of Cash Flows ................................................................................................................................ 20 Notes to the Statement of Cash Flows ......................................................................................................... 21 Notes to the Financial Statements ................................................................................................................ 22

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Introduction

The trustees of the charity who are directors for the purposes of the Companies Act 2006 present their report with the financial statements of the charity for the year ended 31 March 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Chair’s Report

Last year I wrote about Centre 70’s celebrating its Jubilee Year and spoke of one ancient tradition of marking the event by, amongst other things, setting prisoners free. As it turned out, we all have tasted a little of what it is like to be prisoners with an ongoing series of lockdowns and the all-prevailing restrictions. But, as many a proverb says, adversity can bring out the underlying strength of people, communities and organisations. Centre 70 and all involved with it have shown a deep level of resilience and ability to persevere and adapt which has enabled us effectively to continue most of our earlier work and also to find new resources to help meet the need.

I wish to express thanks to Brian Foxley, our Director, and the whole team of managers and staff, volunteers, trustees and funders, donors and supporters for their roles over the year. Centre 70 has been able to meet the year’s challenges head on, create ways around difficulties and exercise faith to step out into new ways of working and means of tackling the need.

The combination of our advice and counselling and wellbeing services is a beautiful holistic partnership, epitomized in our Inspire Project. It is so good we have managed to maintain our mental health service over the years despite the scarcity of outside funding which almost forced it to close. As it is now being more generally admitted, there is and has been a lack of funding of good services to promote mental wellbeing. The pandemic has brought needed attention to the value of this work.

The greater part of our work is in advice and advocacy. We regularly receive messages expressing appreciation for the services we provide. A recent eNews update from us gives examples, such as a restored gas supply for heating and enhanced welfare provision. If you are not receiving our regular updates, please sign up LINK.

One important step we made in January this year was to complete the purchase of a long lease of our premises. The purchase gives us many practical advantages, secures the use of our premises for decades to come and allows us greater freedom to adapt the premises to provide for our present and future needs. Thanks must be given to Cllr Jim Dickson and to Yvonne Hardy, the lead officer at LB Lambeth, and her team for bringing a long running negotiation to fruition and to our patient lawyer, Andrew Weir, at solicitors Anthony Gold for steering us into harbour. A donor made a generous gift towards this transaction.

Over the period we have sadly said farewells to Ian Baker, Debt supervisor, Silpa Winfield, Utilities adviser and Sandra Mayne, Housing caseworker. We thank them for all their hard work and dedication. We are happy to welcome back Tonia Haworth who re-joins us to give debt advice many years after she left. We welcome Naomi Neiland who joined the Board in December.

We are always looking for others who are willing to volunteer their time and energy to help us in what we do. Email volunteering@centre70.org.uk to get in touch.

Martin Beard

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Purpose and Outcomes

The object of the charity is to support the people who live and work in Lambeth and adjoining boroughs by helping them to cope with a wide range of social, domestic and financial problems and by offering the help (whether in the form of advice, psychotherapeutic counselling and wellbeing services) to improve the quality of their lives.

Our services are reviewed regularly to reflect local needs and to conform to the highest standards. Stakeholders, including clients, are consulted and participate in developing our work, with some services coproduced with clients.

Our vision is to enhance communities where every adult has access to the support they need to overcome adversity in their lives and thrive

Our mission is to support adults who are facing social, mental, financial or other personal difficulties at our centre and out in their communities, through a holistic programme of free and affordable services - advice, counselling, training and advocacy

Our values are that we are passionate, inclusive, responsive and community focussed

Our impact is increased access to rights and entitlements, improved mental health and wellbeing and improved access to life opportunities.

The impact of Centre 70’s services are regularly reviewed in relation to our outcomes framework. Emerging trends are also identified and new services developed to meet these needs and accessibility of services reviewed regularly and changes made accordingly.

Charitable Activities

Centre 70 delivers a wide range of services to meet local needs including:

Advice and Advocacy

This year, of the 77% advice enquiries for our key areas of advice – 26% were for Debt, 52% for Benefits and 21% for Housing matters. The decrease in debt advice is a combination of a reduction in capacity providing this service and the debt moratorium introduced during the pandemic. A converse marked rise in advice on benefits matters is a likely reflection of an increased number of people with reduced income during lockdown periods sourcing advice on what benefits they were entitled to. Of the remaining 23% of enquiries, a third were for Employment advice – up from previous years and a direct result of the pandemic, with student finance and legal advice amongst other enquiries supported too.

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Where stated, 65% of clients are from Black Asian and Minority Ethnic communities, and we observed an increase in younger clients seeking advice – with 20% under 35.

As a snapshot of our area of reach, during the first three months of 2021, advice enquiries made via our online registration form were predominantly from Lambeth, but also came from much further afield as the map shows. This was an increased trend during the pandemic, where we were able to provide advice remotely rather than in person at our office and outreach locations. 72% are from areas falling in the bottom half for Indices of Multiple Deprivation.

We built a closer working relationship with Brixton Advice Centre – see the Advice during Lockdown report which highlights that between April and June 2020, there was a 79% increase in people accessing the two advice services via referrals from foodbanks when compared to the same period in 2019. We were supported by our funders the Walcot Foundation, City Bridge Trust and Trust For London through London Community Response grants to help increase capacity and pivot to home working and remote delivery early on in the pandemic, See also Walcot Foundation Lambeth Stories blog featuring our advice services during Covid-19.

Counselling and Wellbeing

Centre 70 also delivers a counselling and wellbeing service - holistically tackling mental health issues and practical problems.

This year we provided counselling to 108 clients, 54 of which were new, moving the service to phone and video calls during lockdown. This comprised of 2,160 overall counselling sessions, with 120 supervision sessions also taking place.

The total volunteer counsellors over the year was 30 and we ran six training sessions including Remote Counselling, Working With Suicide and Complex Mental Health in Lambeth.

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43% of our clients are from Black and Minority Ethnic communities, 73% are female with 31% being unemployed and 36% living alone.

The Inspire Project has shown the benefits of being able to combine advice on debt, welfare and housing matters with general counselling, while equipping some clients to help others. A number of service users have gone on to volunteer for Centre 70 and we have been piloting peer support groups which have come into their own over the lockdown period, helping reduce isolation. See annual stats below:

Collaboration and Partnerships

Centre 70’s work is done in partnership with many others and not just within our premises in Knights Hill, West Norwood. For example, we provide outreach advice in prisons and at probation services, at local Foodbanks in Streatham and West Norwood and in Colleges and Children’s Centres. However, during the pandemic, these services have been provided remotely.

Centre 70 also collaborates with Brixton Advice Centre to provide advice to users of local foodbanks.

We developed a new partnership with We Are Digital to provide debt advice as part of a number of advice agencies to L&Q housing tenants.

Our way of working collaboratively with other local agencies and providing advice at outreach venues to reach the most vulnerable who may not engage or come to an advice centre means we reach parts of the community often not well served. This is reflected by the diversity of our client-base.

Quality Standards

Centre 70 works to high professional standards. We have retained the LEXCEL Law Society legal practice quality accreditation. The Counselling and Wellbeing service is accredited with The British Association of Counselling and Psychotherapy (BACP). We retained our Cyber Essentials accreditation. We are authorised by the Financial Conduct Authority, Authorisation number 618717.

Public benefit

The Trustees consider that Centre 70’s objectives and activities stated above provides public benefit within the meaning and terms of the Charity Commission.

Strategic Priorities

  1. Ensure that there is a robust fundraising strategy which identifies gaps and key developments. This includes: funding for out of scope legal aid housing work to meet the demand that is presently unmet sourced now from Trust for London; funding for our Debt advice service; funding for welfare benefit appeals and funding to expand the Counselling and Wellbeing service we offer.

  2. Having repositioned the Counselling and Advice Services within a broader ‘Wellbeing’ offering, to continue to expand existing services and working with local partners on new provision.

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  1. To create a strategy for ongoing senior management roles and required support as Centre 70 grows. This needs to consider: Senior Management Team succession planning; head of advice role and the housing team structure; contract reporting responsibilities; monitoring visits; monitoring outcomes and impact; the development of media and communications; secretariat role/administration support.

  2. To increase work at outreach locations and develop further partnerships with other agencies in Lambeth and in Greater London, so that more adults can benefit from Centre 70’s advice services.

  3. To develop and grow Centre 70’s volunteer base, including counsellors, paralegals, legal advisors and trustees, which will provide more life opportunities for those in the community.

  4. To raise awareness of Centre 70’s profile locally, and explore possibilities of increasing unrestricted giving through community fundraising and individual giving.

  5. Having achieved the purchase for the long lease for Centre 70, to improve premises and its facilities, ensuring a welcoming and fit for purpose working environment for all users for the long term and to develop further the use of digital technologies.

  6. To conduct a business process mapping exercise, in order to streamline internal processes for increased time and cost efficiency.

  7. To improve client and service user involvement in the governance, development and delivery (coproduction and co-design) of Centre 70’s services, across the organisation, including at Board level and on sub groups.

  8. To ensure Centre 70 maintains and implements diversity and equality best practice in recruitment and keeping of staff, volunteers and the Board of Trustees and how we operate,

.

Volunteers

Centre 70 thanks all the volunteers who help deliver our impact - the volunteer lawyers who staff the weekly Monday evening legal advice sessions, the volunteers who provide the counselling sessions, and the Inspire volunteers – service users who are now volunteering, for example, to deliver utilities information workshops, to help with administration and to set up peer support groups. This support was especially appreciated over this last year as volunteers have had to deal with the challenges of remote working and online delivery.

Environmental responsibility

Centre 70 is committed to minimising the environmental impact of running our organisation. We regularly monitor and review our Environmental Action Plan which covers a wide range of action points such as reduced

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energy and waste. New good environmental practices are added as identified. Centre 70's Environmental and Sustainability Policy Statement is available on request.

Coronavirus pandemic

Our ability to provide services remotely (with working in the cloud and a new phone system) has enabled our work to continue. The Board, and management and staff and volunteers have adapted to new ways of working. Our Director has overseen huge changes to the way we work. Instead of seeing clients and holding outreach sessions face-to-face, we have been able to do the work by the use of phone, email and video call. We have introduced new ways of dealing with paper documents. It is worth our repeating some of the challenges mentioned in our last Annual Report:

See our report ‘Advice during Lockdown’ https://centre70.org.uk/assets/documents/advice-in-lockdown-report2020 - an overview of advice demand from our work with partners Brixton Advice Centre in Lambeth foodbanks during the lockdown period.

Trustees have conducted Board of Trustee and sub group meetings remotely over video calls and this has worked well.

From the beginning of the pandemic, extensive risk assessments have been conducted on all areas of the organisation, including service delivery, management and staffing, governance, finance, legal responsibility and estates. These extensive risk assessments are ongoing.

Structure, Governance and Management

Organisational structure

The Centre is governed by a Board of Trustees, who are also the directors/trustees of the charitable company. All of the Trustees are volunteers and some have served for several years. The Board meets about every six weeks. The Director and Managers of the two projects run by the charity (the Advice Centre and the Counselling and Wellbeing Service) report to the Board by written and oral reports. There a number of subgroups which meet regularly to support the work of Centre 70 and they are comprised of trustees, staff and volunteers; they report to the Board.

Current Trustees

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The day to day running of the Centre is given to the Director who is supported by the Head of Advice Services and the Counselling and Wellbeing Services Manager and staff. The Director meets regularly with the Chair of Trustees. The Office Handbook contains the organisation chart and details and a table of delegated powers.

Recruitment and appointment of new trustees

The Board is always looking for new Board members with suitable skills and connection with the area that is served. In the last financial year one new member has been recruited. Training is available for Trustees and there is an induction procedure to support new Trustees, including a buddying arrangement with an experienced Trustee. There are opportunities to meet staff and become familiar with the work including experiencing the work at our reception desk. Trustees have access to the Office Handbook (guidance including staff conditions of service and aspects of conduct which embody the ethos of Centre 70). A skills audit is undertaken of Trustees and regularly reviewed to ensure there are a range of skills needed for effective governance.

Trustees are elected to the Board at the Annual General Meeting.

Key management remuneration

Senior Management Team remuneration in the year (three posts) was £141,217.38 (2020 - £110,517: two posts). It should be noted that the majority of manager’s work relates to Charitable Activities.

Governance

The charity is constituted as a company limited by guarantee, as defined by the Companies Act 2006, and is therefore governed by its Memorandum and Articles of Association. This replaced the original trust deed in 1987.

Centre 70’s Board of Trustees review its governance in light of the Charity Governance Code and subject all its processes and procedures to the principles set out in the Code as below.

Charity Governance Code

Purpose

The Board shares a good understanding and commitment to and can articulate the purpose of Centre 70 and the impact it delivers through its services. The strategic plan, reviewed at Board meetings, sets out delivery of

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Centre 70's purpose, with performance evaluated, benchmarked and measured with stakeholders including users, partners and funders.

Leadership

The Trustees accept collective responsibility for Centre 70's aims, reflecting the agreed vision and values. Appropriate supervision is made for staff and volunteers and rigorous review procedures apply to appointments of Trustees and recruitment of staff and volunteers. Current work underway is focussing on succession plans and potential restructuring to ensure Centre 70 has the correct staffing structure to deliver its aims in future.

Integrity

The Board is committed to acting in the best interests of Centre 70 and its service users and avoids any exercise of undue influence. Both Centre 70's reputation and public confidence in it are safeguarded by a variety of means including regular reviews of performance and ongoing contact with stakeholders including with elected representatives and public and other organisations. Trustees follow a code of conduct.

Decision taking, risk and control

The Board's main focus is on strategy, performance and assurance and delegates operational matters as resources allow. Regular management and financial reports are made to the board and sub-groups (Finance & personnel, Communications & marketing; Fundraising; IT; Counselling and Wellbeing; Advice) made up of Trustees and staff meet regularly to apply closer oversight. Processes are in place to manage risk.

Board effectiveness

Trustees offer a wide range of skills to enhance the Board's performance and, with the help and guidance of the Chair, seek to cultivate good and strong working relationships and a culture which is open to challenge. If a Trustee has served for more than nine years, his or her reappointment is subject to a review, taking into account the need for progressive refreshing of the board. In light of this, the length of service of Martin Beard on the board is justified with Centre 70's need to retain his experience (gained over long period in both legal work and serving Centre 70) and also on the relatively recent periods of appointment of most of the other Board members. Each year at the Trustees Away Day and subsequent Board of Trustees meetings, Centre 70 carries out a skills audit to identify new skills required and new Trustees are recruited accordingly.

Diversity

The Board seeks to recruit Trustees from a wide range of backgrounds, skills and experience. Centre 70 holds a strong commitment to equality and diversity to which all serving within Centre 70 are required to adhere. We are always seeking to strengthen diversity on the Board and are undertaking a review of how and where to encourage more diversity in future.

Openness and accountability

Centre 70 encourages feedback on its work and performance and adheres to a strong set of values, ethics and culture. Centre 70 regularly engages with those who benefit from its work and all stakeholders. Remuneration of staff is based on levels adopted in the not-for-profit sector insofar as the finances of Centre 70 allow.

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Responsibilities of Trustees

The Trustees (who are also the directors of Centre 70 for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.

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 resources and application of resources, including the income and expenditure of the charitable company 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 charitable company and to 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:

Principal risks and uncertainties

The Board considers that the main risk to the Charity remains its dependence on a few large funding sources, and the uncertainty over future funding or over the exact timing of contractual changes being proposed by the funding agencies. However, fundraising and donations contributed £115,963 (2020 - £61,768).

There will be a loss of income to that originally budgeted in this present year due to the Coronavirus pandemic. However, we have obtained other funding and grants; have used the Government job retention scheme for a couple of staff; and applied for rate relief grants. We also predict, sadly, an increase in chargeable Housing work once moratorium on possession proceedings is lifted. These should go a long way to offset against the income reduction and the situation is being analysed on a monthly basis.

Centre 70 purchased a 125 year lease backdated to July 2018 for £240,000. The cost was funded by an unsecured loan which it is planned to repay within a few years, by a generous gift which with Gift Aid amounted to £50,000 and the rest from our reserves. There is no further liability for rent under the lease which the purchase superseded. Plans are underway to make improvements to the premises, but they have yet to be agreed and costed.

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Financial Review

Financial position

The results of the year are set out in Statement of Financial Activities. The income for the year has increased from £715,995 to £729,476. The resultant surplus for the year is £106,822 (2020 - £64,760). General funds at the end of the year were £611,017 (2020 - £504,195).

The significant change was the purchase in January 2021 of a 125 year lease of the premises for £240,000. The surplus is explained by a number of factors including a substantial donation towards the purchase of the lease, deferred expenses on the premises and billing historical legal aid work.

Cash reserves have decreased due to lease purchase and a reduction in historical Legal Aid work to be billed.

Funders

These accounts show Centre 70's income comes from a wide range of funders and donors. Tudor Trust and the City of London Corporation's charity City Bridge Trust are funding the Inspire Project, Lambeth Council fund a proportion of our advice work, the Walcot Foundation finance our advice for students, and there are also the Legal Aid Agency, and the HM Prison and Probation services (through European Union ESF funding to Shaw Trust).

We secured funding from Trust for London to extend our Housing advice work and following a delay in recruitment. This new post started in June 2021.

Donors

We are extremely grateful to our donors including the Richard & Gwendoline Chadwick's Charitable Trust, the Elizabeth and Prince Zaiger Trust, and local churches. We received some sponsorship for the remote London Legal Walk 2020. We had increased donations from individuals during the year, many expressing a desire to assist through the pandemic and one to increase the work of the Counselling and Wellbeing Service to reduce the counselling waiting list. We are very grateful for those and also for a large generous donation by a donor, who wishes to remain anonymous, which helped us with the purchase of the long lease of our premises.

Reserves policy

Centre 70’s policy on reserves has been to maintain them at a level of four months' non-discretionary expenditure. This meets the Charity Commission's recommendations, but would not necessarily enable the Centre to continue a full spread of services to clients in the event of the termination or reduction of major contracts. Reserves at the end of year were £611,017 (2020 - £504,195), all of which were unrestricted, representing over four months' non-discretionary expenditure. Now that the lease purchase of the property has been completed, the Trustees wish to draw on these reserves to enable the Centre to improve its facilities for all users in line with the strategic objectives. This will give Centre 70 added stability and resilience and enable it to continue its invaluable community work in Lambeth and beyond well into the future.

Centre 70 additionally undertakes to provide run off cover immediately upon cessation of the Centre or its legal practice if no other appropriate insurance cover is in place. In order to do this Centre 70 has created and will maintain a reserved fund of 3.5 times the present year's Professional Indemnity Insurance premium for the cost of arranging the one-off premium for such run off cover for six years in the event that this is needed in the future.

The Board considers that the reserves at the end of the year satisfied this policy.

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The Auditor

The auditor is Wagstaffs, (Wags LLP), Chartered Accountants of Richmond House, Walkern Road, Stevenage, Hertfordshire SG1 3QP. A resolution to re-appoint Wagstaffs as Auditor will be proposed at the forthcoming Annual General Meeting. Financial statements are published on Centre 70’s website and their integrity is the responsibility of the Trustees.

The Trustees have prepared this report in accordance with the provisions of Part 15 of the Companies Act 2006.

Signed by Martin Beard, Chair, on behalf of the Trustees of Centre 70

Martin Beard Date: September 2021

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Report of the independent auditors to the trustees of Centre 70

Opinion

We have audited the financial statements of Centre 70 (the 'charitable company') for the year ended 31st March 2021 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In our opinion the financial statements:

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 Auditors' 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 charitable company'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.

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Report of the independent auditors to the trustees of Centre 70

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, 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.

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Report of the independent auditors to the trustees of Centre 70

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 a Report of the Independent Auditors 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 is detailed below:

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

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Report of the independent auditors to the trustees of Centre 70

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an auditors' 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 trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Wags LLP t/a Wagstaffs Chartered Accountants and Statutory Auditors Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 Richmond House

Walkern Road Stevenage Hertfordshire SG1 3QP

Date: .............................................

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Centre 70

Statement of financial activities

(incorporating an income and expenditure account) for the year ended 31[st] March 2021

Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
115,963
Charitable activities
5
Advice services
447,517
Counselling services
27,967
Investment income
4
234
Total
591,681
EXPENDITURE ON
Charitable activities
6
Advice services
414,545
Counselling services
50,714
Other
19,600
Total
484,859
NET INCOME
106,822
RECONCILIATION OF FUNDS
Total funds brought forward
504,195
TOTAL FUNDS CARRIED FORWARD
611,017		 Restricted
funds
£
-
100,382
37,413
-
137,795
100,382
37,413
-
137,795
-
-
-		 2021
Total
funds
£
115,963
547,899
65,380
234
729,476
514,927
88,127
19,600
622,654
106,822
504,195
611,017		 2020
Total
funds
£
61,768
600,019
53,487
721
715,995
565,490
65,395
20,350
651,235
64,760
439,435
504,195

The notes form part of these financial statements

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Centre 70 (registered number: 02087528)

Statement of financial position 31[st] March 2021

Unrestricted
fund
Notes
£
FIXED ASSETS
Tangible assets
13
306,701
CURRENT ASSETS
Debtors
14
22,317
Cash at bank
385,731
408,048
CREDITORS
Amounts falling due within one year
15
(69,328)
NET CURRENT ASSETS
338,720
TOTAL ASSETS LESS CURRENT
LIABILITIES
645,421
CREDITORS
Amounts falling due after more than one
year
16
(34,404)
NET ASSETS
611,017
FUNDS
18
Unrestricted funds
TOTAL FUNDS		 Restricted
funds
£
-
-
7,859
7,859
(7,859)
-
-
-
-		 2021
Total
funds
£
306,701
22,317
393,590
415,907
(77,187)
338,720
645,421
(34,404)
611,017
611,017
611,017		 2020
Total
funds
£
69,538
118,249
401,882
520,131
(85,474)
434,657
504,195
-
504,195
504,195
504,195

The notes form part of these financial statements

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Centre 70 (registered number: 02087528)

Statement of financial position - continued 31[st] March 2021

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st March 2021.

The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of these financial statements.

The trustees acknowledge their responsibilities for

These financial statements have been audited under the requirements of Section 145 of the Charities Act 2011.

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:

............................................. M P Beard - Trustee

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Centre 70

Statement of cash flows For the year ended 31[st] March 2021

2021
Notes
£
Cash flows from operating activities
Cash generated from operations
1
189,780
Net cash provided by operating activities
189,780
Cash flows from investing activities
Purchase of tangible fixed assets
(240,000)
Interest received
234
Net cash (used in)/provided by investing activities
(239,766)
Cash flows from financing activities
New loans in year
42,500
Loan repayments in year
(806)
Net cash provided by financing activities
41,694
Change in cash and cash
equivalents in the reporting period
(8,292)
Cash and cash equivalents at the
beginning of the reporting period
401,882
Cash and cash equivalents at the
end of the reporting period
393,590		 2020
£
51,998
51,998
-
721
721
-
-
-
52,719
349,163
401,882

The notes form part of these financial statements

20

Centre 70

Notes to the statement of cash flows For the year ended 31[st] March 2021

1. Reconciliation of net income to net cash flow from operating activities

Net income for the reporting period (as per the Statement of
Financial Activities)
Adjustments for:
Depreciation charges
Interest received
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Net cash provided by operations		 2021
£
106,822
2,837
(234)
95,932
(15,577)
189,780		 2020
£
64,760
5,186
(721)
(38,428)
21,201
51,998

2. Analysis of changes in net funds

At 1.4.20 Cash flow At 31.3.21
£ £ £
Net cash
Cash at bank 401,882 (8,292) 393,590
401,882 (8,292) 393,590
Debt
Debts falling due within 1 year - (7,290) (7,290)
Debts falling due after 1 year - (34,404) (34,404)
- (41,694) (41,694)
Total 401,882 (49,986) 351,896

The notes form part of these financial statements

21

Centre 70

Notes to the financial statements For the year ended 31[st] March 2021

1. Statutory information

Centre 70 is a private company limited by guarantee, registered in England and Wales, as a well as being a charity registered in the same jurisdiction. The charity's registered numbers and office address can be found within the reference and administrative details on page 1.

2. Accounting policies

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on a going concern basis, with no material uncertainties presented by the trustees in contrary to this.

Critical accounting estimates and judgements

No significant estimates or judgements have had to be made by the trustees in preparing these financial statements.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property - over the life of the lease Fixtures and fittings - 33% on cost Computer equipment - 50% on cost

22

Centre 70

Notes to the financial statements - continued For the year ended 31[st] March 2021

2. Accounting policies - continued

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

3. Donations and legacies

Donations and legacies
Donations
Investment income
Deposit account interest		 2021
£
115,963
2021
£
234		 2020
£
61,768
2020
£
721

4. Investment income

23

Centre 70

Notes to the financial statements - continued For the year ended 31[st] March 2021

5. Income from charitable activities

Activity
Grants
Advice services
Foodbank project
Advice services
Lambeth Housing
Management
Advice services
Legal Housing Advice
Advice services
LAA Legal Help Contract Advice services
Arts Network
Advice services
Watmos
Advice services
National Lottery
Community Advice
Partnership Project
Advice services
Trust for London
Advice services
L&Q Pound Advice
Advice services
Learning Without
Classrooms
Advice services
Chaniel Community
Project
Advice services
Grants
Counselling services
Counselling service fees Counselling services
Watmos
Counselling services
Lottery Fund
Counselling Services
Counselling services
Grants received, included in the above, are as follows:
Debt Free London
Thames Water Trust Fund
The Walcot Foundation
London Borough of Lambeth
HMPPS
Tudor Trust
City Bridge Trust
CJRS receipts		 2021
£
295,754
33,462
93,650
43,254
4,767
2,120
2,898
40,013
17,711
12,820
1,000
450
37,893
15,387
2,100
10,000
613,279
2021
£
37,970
-
73,613
127,000
7,800
27,500
37,413
22,351
333,647		 2020
£
342,519
19,971
46,825
174,328
9,788
1,590
4,998
-
-
-
-
-
33,332
20,155
-
-
653,506
2020
£
110,838
26,636
52,615
84,500
42,930
25,000
33,332
-
375,851

24

Centre 70

Notes to the financial statements - continued For the year ended 31[st] March 2021

6. Charitable activities costs

Charitable activities costs
Direct
Costs (see
note 7)
£
Advice services 514,927
Counselling services 88,127
603,054

7. Direct costs of charitable activities

Staff costs
Insurance
Utilities
Telephone
Postage and stationery
Sundries
Repairs and maintenance
Cleaning and refuse collection
Staff support costs
Subscriptions and publications
Computer and related costs
Bank charges and interest
Counselling supervision fees
Professional fees
Depreciation		 2021
£
525,198
3,671
2,713
4,512
5,502
9,355
2,843
58
948
4,555
23,898
1,658
15,295
11
2,837
603,054		 2020
£
562,863
4,785
3,000
2,780
10,269
3,254
6,448
881
3,516
4,229
6,619
785
15,665
605
5,186
630,885

25

Centre 70

Notes to the financial statements - continued For the year ended 31[st] March 2021

8. Support costs

Support costs
Governance
costs
£
Other resources expended 19,600
Support costs, included in the above, are as follows:
2021 2020
Other
resources
Total
expended
activities
£ £
Auditors' remuneration 4,750 5,500
Finance workers 14,850 14,850
19,600 20,350

Support costs, included in the above, are as follows:

9. Net income

Net income is stated after charging:

2021 2020
£ £
Auditors' remuneration 4,750 5,500
Depreciation - owned assets 2,837 5,186

10. Trustees' remuneration and benefits

There were no trustees' remuneration or other benefits for the year ended 31st March 2021 nor for the year ended 31st March 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31st March 2021 nor for the year ended 31st March 2020.

26

Centre 70

Notes to the financial statements - continued For the year ended 31[st] March 2021

11. Staff costs

Wages and salaries
Social security costs
Other pension costs		 2021
£
478,639
40,699
5,860
525,198		 2020
£
505,405
44,638
12,820
562,863
The average monthly number of employees during the year was as follows:
2021
Advice
17
Counselling
3
20		 2020
19
3
22

No employees received emoluments in excess of £60,000.

12. Comparatives for the statement of financial activities

Unrestricted
fund
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
61,768
Charitable activities
Advice services
417,574
Counselling services
20,155
Investment income
721
Total
500,218
EXPENDITURE ON
Charitable activities
Advice services
353,568
Counselling services
61,540
Other
20,350
Total
435,458
NET INCOME
64,760		 Restricted
funds
£
-
182,445
33,332
-
215,777
211,922
3,855
-
215,777
-		 Total
funds
£
61,768
600,019
53,487
721
715,995
565,490
65,395
20,350
651,235
64,760

27

Centre 70

Notes to the financial statements - continued For the year ended 31[st] March 2021

12. Comparatives for the statement of financial activities - continued

continued
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
13. Tangible fixed assets
Improvements
Long
to
leasehold
property
£
£
Cost
At 1st April 2020
-
120,470
Additions
240,000
-
At 31st March 2021
240,000
120,470
Depreciation
At 1st April 2020
-
50,932
Charge for year
800
2,037
At 31st March 2021
800
52,969
Net book value
At 31st March 2021
239,200
67,501
At 31st March 2020
-
69,538		 Unrestricted
fund
£
439,435
504,195
Fixtures
and
fittings
£
25,510
-
25,510
25,510
-
25,510
-
-		 Restricted
funds
£
-
-
Computer
equipment
£
22,340
-
22,340
22,340
-
22,340
-
-		 Total
funds
£
439,435
504,195
Totals
£
168,320
240,000
408,320
98,782
2,837
101,619
306,701
69,538

28

Centre 70

Notes to the financial statements - continued For the year ended 31[st] March 2021

14. Debtors: amounts falling due within one year

Trade debtors
Other debtors
Accrued income
Prepayments		 2021
£
20,231
-
-
2,086
22,317		 2020
£
62,142
3,409
50,680
2,018
118,249

15. Creditors: amounts falling due within one year

Bank loans and overdrafts (see note 17)
Social security and other taxes
VAT
Deferred income
Accruals		 2021
£
7,290
11,117
20,623
22,859
15,298
77,187		 2020
£
-
38,948
14,156
27,754
4,616
85,474

Deferred income has been recognised to ensure that charitable income has been accounted for in the correct financial period.

  1. Creditors: amounts falling due after more than one year
Bank loans (see note 17)
Loans
An analysis of the maturity of loans is given below:
Amounts falling due within one year on demand:
Bank loans
Amounts falling between one and two years:
Bank loans - 1-2 years
Amounts falling due between two and five years:
Bank loans - 2-5 years		 2021
£
34,404
2021
£
7,290
7,855
26,549		 2020
£
-
2020
£
-
-
-

17. Loans

29

Centre 70

Notes to the financial statements - continued For the year ended 31[st] March 2021

18. Movement in funds

Movement in funds
Net
movement At
At 1.4.20 in funds 31.3.21
£ £ £
Unrestricted funds
General fund 504,195 106,822 611,017
TOTAL FUNDS 504,195 106,822 611,017
Net movement in funds, included in the above are as follows:
Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 591,681 (484,859) 106,822
Restricted funds
Tudor Trust 27,500 (27,500) -
City Bridge Trust 37,413 (37,413) -
Debt Free London 37,970 (37,970) -
Foodbank projects 33,462 (33,462) -
Chaniel Community Project 450 (450) -
Learning Without Classrooms 1,000 (1,000) -
137,795 (137,795) -
TOTAL FUNDS 729,476 (622,654) 106,822
Comparatives for movement in funds
Unrestricted funds
General fund
TOTAL FUNDS		 At 1.4.19
£
439,435
439,435		 Net
movement
in funds
£
64,760
64,760		 At
31.3.20
£
504,195
504,195

30

Centre 70

Notes to the financial statements - continued For the year ended 31[st] March 2021

18. Movement in funds - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Thames Water Trust Fund
Tudor Trust
City Bridge Trust
Debt Free London
Foodbank projects
TOTAL FUNDS		 Incoming
Resources Movement
resources
expended
in funds
£
£
£
500,218
(435,458)
64,760
26,636
(26,636)
-
25,000
(25,000)
-
33,332
(33,332)
-
110,838
(110,838)
-
19,971
(19,971)
-
215,777
(215,777)
-
715,995
(651,235)
64,760

19. Related party disclosures

There were no related party transactions for the year ended 31 March 2021 (2020 - None).

20. Post balance sheet events

The trustees continue to monitor the impact of COVID-19 on the charity as the pandemic continues. The trustees note this is a non adjusting post balance sheet event.

31