Company registration number 05137036 (England and Wales)
THE CENTRE FOR SOCIAL JUSTICE
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
PAGES FOR FILING WITH REGISTRAR
THE CENTRE FOR SOCIAL JUSTICE
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
THE CENTRE FOR SOCIAL JUSTICE
BALANCE SHEET
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
9,804
17,304
Investments
5
100
100
9,904
17,404
Current assets
Debtors
6
380,460
221,328
Cash at bank and in hand
1,928,195
1,762,171
2,308,655
1,983,499
Creditors: amounts falling due within one year
7
(775,759)
(645,285)
Net current assets
1,532,896
1,338,214
Net assets
1,542,800
1,355,618
Reserves
Income and expenditure account
1,542,800
1,355,618
Members' funds
1,542,800
1,355,618
The directors of the company have elected not to include a copy of the income and expenditure account within the financial statements.true
For the financial year ended 31 May 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 21 February 2024 and are signed on its behalf by:
Rt Hon Sir Iain Duncan Smith MP
Director
Company Registration No. 05137036
THE CENTRE FOR SOCIAL JUSTICE
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
- 2 -
1
Accounting policies
Company information
The Centre for Social Justice is a private company limited by guarantee incorporated in England and Wales. The registered office is Kings Buildings, 16 Smith Square, Westminster, London, SW1P 3HQ. The company registration number is 05137036.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Income and expenditure
Income represents donations, grants and other income receivable less value added tax where applicable
Income in respect of donations is recognised when the company is legally entitled to it after any performance conditions by the donor have been met, the amounts can be measured reliably and it is probable that income will be received. Where there are no performance obligations, donations are recognised on receipt.
Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate.
Grants in respect of capital expenditure are credited to deferred income account and are released to the profit and loss account over the useful lives of the relevant assets.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
20% on cost
Fixtures and fittings
straight line over 3 years
Computers
straight line over 3 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to surplus or deficit.
1.4
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in surplus or deficit.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
THE CENTRE FOR SOCIAL JUSTICE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 3 -
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.6
Financial instruments
Basic financial assets
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account.
Basic financial liabilities
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest method. Loans and borrowings that are receivable within one year are not discounted. If an arrangement constitutes a finance transaction it is measured at present value of future payments discounted at a market rate of interest for a similar loan.
1.7
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.8
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.9
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
THE CENTRE FOR SOCIAL JUSTICE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 4 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was 22 (2022 - 24)
4
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 June 2022
92,345
28,842
38,342
159,529
Additions
3,678
3,678
At 31 May 2023
92,345
28,842
42,020
163,207
Depreciation and impairment
At 1 June 2022
92,345
17,195
32,685
142,225
Depreciation charged in the year
5,673
5,505
11,178
At 31 May 2023
92,345
22,868
38,190
153,403
Carrying amount
At 31 May 2023
5,974
3,830
9,804
At 31 May 2022
11,647
5,657
17,304
5
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
100
100
THE CENTRE FOR SOCIAL JUSTICE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 5 -
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
99,000
24,209
Amounts owed by group undertakings
88,538
105,700
Other debtors
79,393
78,979
Prepayments and accrued income
113,529
12,440
380,460
221,328
7
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
64,830
58,302
Taxation and social security
53,571
37,803
Other creditors
239
2,645
Accruals and deferred income
657,119
546,535
775,759
645,285
8
Members' liability
The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
92,143
250,103
THE CENTRE FOR SOCIAL JUSTICE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 6 -
10
Grant Funding
Turnover includes the following amounts, all of which were fully spent by 31 May 2023:
£16,000 grant funding received from the Barrow Cadbury Trust which is restricted to the costs of salaries and running costs of our project ‘Prisons and probation: Delivering the reform we need’.
£60,000 from the Wates Family Enterprise Trust towards our Housing and Communities Unit
£88,750 from the Charities Aid Foundation, used to fund research into the root causes of poverty in the UK. Specifically, it has supported the work of the Centre for Social Justice with nearly 500 small charities around the UK to understand exactly what is happening in the poorest, most disadvantaged communities and the innovate community-led solutions being put in place to transform lives.