The Directors present their report on the affairs of the charitable company together with the accounts for the above year.
The following report is prepared in accordance with the small company regime (Section 419(2) of the Companies Act 2006).
COVID-19 NOTE
Since 31 December 2019, the spread of COVID-19 has severely impacted many local economies around the globe. In many countries, businesses are being forced to cease or limit operations for long or indefinite periods of time. In the UK this began on 23rd March 2020. Measures taken to contain the spread of the virus, including travel bans, quarantines, social distancing, and closures of non-essential services have triggered significant disruptions to businesses worldwide, resulting in an economic slowdown. Governments and central banks have responded with monetary and fiscal interventions to stabilise economic condition.
The charity is likely to be affected in the form of loss of income, however it will benefit from savings in costs and therefore this will not significantly impact the charity's financial position. The charity has determined that these events are non-adjusting subsequent events. Accordingly, the financial position and results of operations as of and for the year ended 31 December 2020 have not been adjusted to reflect their impact. The duration and impact of the COVID-19 pandemic, as well as the effectiveness of government and central bank responses, remains unclear at this time. It is not possible to reliably estimate the duration and severity of these consequences, as well as their impact on the financial position and results of the charity for future periods.
The objects of the charity are to promote the voluntary sector for the benefit of the public in Croydon and the surrounding area. The voluntary sector refers to charities and voluntary organisations and does not refer to local government or other statutory authorities.
The main activities undertaken in relation to those objectives are fundraising activities staged for the benefit of other charities including charity balls, comedy benefits, competitions etc and local community involvement projects with staff from local companies in Croydon and local charities.
The trustees confirm that they have referred to the Charity Commission’s general guidance on public benefit when reviewing the Trust’s aims and objectives and in planning future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set.
The Directors feel that the overall standing of the charity has reflected the economic pressures that have continued to impact on our broader operational environment. Performance was in line with our expectations.
As we move into 2021, we expect that both direct and indirect impacts of Covid-19 will reduce our ability to generate income and will also change how we interact with our volunteer groups. Our continued careful monitoring and management of the financial resources available, together with our health and safety appraisals will ensure that the Charity continues to operate within the acceptable parameters whilst supporting our stakeholders.
We feel that the report and accounts are a true reflection of the charity’s receipts for the financial year and the income generated has met with our previous cautious financial forecasts.
Following a review in 2017, the Directors and CEO worked together with local stakeholders to create a new three-year Strategic Business Plan 2018-20 for the organisation. Croydon Commitments’ thematic programme addresses five key areas; Education, Employment, Environment, Health & Wellbeing and Social Inclusion and offers a range of practical ways businesses can work together to address the issues of deprivation and inequality in Croydon.
As a result of Covid-19 and its growing impact on our economy, we will throughout 2021 shift greater attention towards employment, delivering projects that will ultimately help people that have been adversely impacted by Covid-19 get back into the workplace.
In December 2020, the charity was successfully awarded a sum of £82,000 from the John Lewis Partnership to run an employability programme over the next two years. This income will be recognised as received in the following financial period.
2020’s first and second pandemic wave meant that we and our partners were unable to deliver any face-to-face volunteering. However, we were able to deliver 100 VE Day goodie bags to local veterans to celebrate the 75 th Anniversary of VE Day. We also supported residents and voluntary groups by signposting and connecting to relevant organisations via social media, emails and telephone calls.
We recently implemented a brand refresh, including launching a new website which details all upcoming Corporate Social Responsibility opportunities, both from Croydon Commitment and other organisations. The refreshed communications have enabled the charity to more effectively advertise its work and to attract new members. Our full impact report for 2019 can also be found on our website.
Croydon Commitment continues to support the Grassroots Awards programme. The charity will continue to work alongside local stakeholders to meet its charitable objectives and realise its vision of establishing Croydon as a centre of excellence in sustainable development.
Croydon Commitment has a policy regarding the level of reserves held at any one time in the bank, and this is that the amount of money held on reserve is a minimum of six months of the charity's running costs. This in real terms currently amounts to £20,000 being held in the bank account and guarantees that the charity may still operate for at least that period if financial difficulties ensue. This requirement was satisfied as at the 31 December 2020. We feel this is a responsible action on our part and is in accordance with guidelines laid down by the charities commission.
The Directors have assessed the major risks to which the charitable company is exposed and are satisfied that systems are in place to mitigate exposure to the major risks.
The Directors have assessed the major risks to which the charitable company is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The charitable company is a company limited by guarantee.
The governing document is the memorandum and articles of association.
The methods adopted for the recruitment and appointment of new directors is by invitation only in full agreement of the board.
The Directors who served during the year and up to the date of signature of the financial statements were:
None of the Directors has any beneficial interest in the company. All of the Directors are members of the company and guarantee to contribute £1 in the event of a winding up.
The Directors' r eport was approved by the Board of Directors.
The directors, who also act as trustees for the charitable activities of Croydon Commitment Limited, are responsible for preparing the Directors' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the Directors to prepare accounts 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 year.
In preparing these accounts, the Directors are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and
- prepare the accounts on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Directors 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 accounts 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.
I report on the financial statements of the charitable company for the year ended 31 December 2020, which are set out on pages 6 to 12.
The directors, who also act as trustees for the charitable activities of Croydon Commitment Limited, are responsible for the preparation of the accounts. The Directors consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:
examine the financial statements under section 145 of the 2011 Act;
to follow the procedures laid down in the general directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the financial statements present a ‘true and fair view’ and the report is limited to those matters set out in the next statement.
In connection with my examination, no matter has come to my attention:
to keep accounting records in accordance with section 386 of the Companies Act 2006; and
to prepare financial statements which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities;
have not been met ;or:
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
Voluntary income
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Croydon Commitment Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Kings Parade, Lower Coombe Street, Croydon, Surrey, CR0 1AA.
The financial statements have been prepared in accordance with the charitable company's [governing document], the Companies Act 2006 and "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)". The charitable company is a Public Benefit Entity as defined by FRS 102.
The charitable company has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the charitable company. Monetary a mounts in these financial statements are rounded to the nearest £.
The accounts have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
Unrestricted funds are available for use at the discretion of the Directors in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for services provided in the normal course of business, net of discounts and other sales related taxes.
Expenditure is recognised on an accruals basis.
The cost of generating funds is fundraising expenditure incurred by the charity in respect of voluntary income and income from fundraising activities. The expenditure includes direct staff costs and support costs.
Charitable activities expenditure includes activities identifiable as wholly or mainly in support of the objectives of the Charity. Grants are recognised as committed.
Governance costs are those costs relating to compliance with constitutional and statutory requirements and the structure and governance review.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.
Cash and cash equivalents 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.
The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Status
Croydon Commitment Limited is a registered charity, No. 1122878, and is exempt from income and capital gains tax under the provisions of Section 505 of the Income and Corporation Taxes Act 1988 and Section 145(1) of the Capital Gains Tax Act 1979.
Fund accounting
Restricted funds comprise unexpended balances of donations and grants held on trust to be applied for specific purposes.
Designated funds comprise funds which have been set aside at the discretion of the directors for specific purposes.
General funds comprise the accumulated net movement in funds on income and expenditure. They are available for use at the discretion of the directors in furtherance of the general objectives of the charity.
Voluntary income
Charitable Expenditure
Charitable Expenditure
The average monthly number of employees during the year was:
Included in creditors is an amount of £100 (2019: £100) owed to Croydon Commitment Events Ltd a subsidiary of the company.