NEW POLITICS NETWORK

Report and Financial Statements Year ended 31 March 2005

New Politics Network Report and Financial Statements Contents

Page Legal and administrative Council members' report Independent auditors' report Income and Expenditure account Balance sheet Notes to the financial statements 1 2 5 6 7 9

New Politics Network Legal and administrative information

Council Members Members of the council serving in the period were: Rosemary Bechler Tessa Bidgood Maureen Brian Stan Davison Alan Debenham Nina Fishman David Floyd Alun Gunter Stuart Hill Montse Medina Fernandez Steve Munby Alfred Ott Andrew Pakes Paul Simpson Phil Taylor Richard Williams

Director

Peter Facey

Registered office

6 Cynthia Street London N1 9JF

Auditors

Gotham Erskine Chartered Accountants & Registered Auditors Friendly House 52 - 58 Tabernacle Street London EC2A 4NJ

Bankers

The Co-operative Bank 1 Islington High Street London N1 9TR New Politics Network is an unincorporated association

Legal status

New Politics Network Council Members' Report

The Council Members present their report and the financial statements for the year ended 31 March 2005. The members confirm that the annual report and the financial statements of the Charity comply with current statutory requirements, the requirements of the Organization's governing document and in accordance with the provision of the Financial Reporting Standard for Smaller Entities (effective June 2002). Statement of Council Members' responsibilities The Constitution of New Politics Network requires the Council members prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Network and of the income and expenditure of the Network for that period. In preparing those financial statements, the Council members are required to: - select suitable accounting policies and then apply them consistently; - make judgements and estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Network will continue to operate. The Council members are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Network and to enable them to ensure that the financial statements comply with their constitution. They are also responsible for safeguarding the assets of the Network and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Aims and Objectives The New Politics Network is an independent campaigning think tank, concerned specifically with issues relating to democratic renewal and popular participation in politics. The Organization works with a wide range of groups and individuals to provide a forum to look at emerging ideas in society. The goal of the Organization is to provide an independent and innovative debate on the future of politics. Currently, the Network's main areas of activity include: - Active Citizenship - Reform of Public Institutions - The Role of Political Parties

Review of Activities This report covers the period from April 2004 until the autumn of 2005. Our activities over the last year have seen our profile continue to grow and this is reflected in the increased number of interviews in both national and regional media. We have built a strong foundation and are developing relationships that will help us play our part in delivering progressive and democratic change. Publications and Research Over the last year the Network has continued to develop its publications, improving both their design and their quality. The Network continues to bring writers and thinkers together from diverse backgrounds to discuss and develop new ideas. Over the last year the Network has produced the following pamphlets and bulletins:

New Politics Network Council Members' Report

Pamphlets General Election 2005 - What the Voters Saw The Future of Neighbourhood Politics Looking Back, Looking Forward. The Cook-Maclennan Agreement, Eight Years On. Invisible Political Actors: the press as agents of anti-politics Life Support for Political Parties Bulletins Citizens leading constitutional reform: an experiment in democracy. An examination of the experience of the Citizens Assembly for Electoral Reform in British Columbia, and its implications for the UK. With contributions from Dr Jack Blaney (Chair, Citizens Assembly), Steve Bullock (Mayor of Lewisham) and Peter Riddell (The Times). Ethnic Minorities and the British Electoral Process. With contributions from Professor Muhammad Anwar, Claude Moraes MEP, Cllr Claire Whelan, Cllr Fiyaz Mughal, Cllr Sanjay Dighe. Central Lobby Central Lobby is the parliamentary bulletin for the Network and Charter88. It covers everything that is going on in Parliament and the devolved assemblies on our issues. It is sent out by e-mail to over 6,000 people on a bi monthly basis when Parliament is in session. Website and Internet Over the last year the Network has continued to develop its website www.new-politics.net In addition The Network now has a blog http://www.new-politics.com/blog/ which enables members of the public to join the debate. Our email newsletter Network News now goes out to some 4,000 subscribers. Open Spaces The Network remains committed to providing open spaces in which to deepen democracy, reskill the political process and rekindle enthusiasm for democracy. The Network held 9 fringe meetings at the Labour, Conservative and Liberal Democrat conferences in 2004. In addition to another extensive programme of fringe events at the three main parties in 2005, the Network also participated in a conference session at the Green Party Conference. 2004-5 also saw the Network develop its relationship with the UK South East Europe Forum a project of the British Council and the Network helped deliver an innovative programme on how political parties can involve people in decision making. This also helped to strengthen the Networks links with the political parties. 2004 saw the Network deliver a major conference A Europe for Citizens, Our Role. As well as us this event we organised a number of regional events aimed at promoting understanding of what it means to be a European citizen.

New Politics Network Council Members' Report

Campaigns The Network, is not only interested in developing ideas and promoting discussion. It exists to campaign for changes in the way in which politics is conducted. Over the year we have been actively involved in: Make Votes Count The Network continues to play an active part in the Make Votes Count coalition. The Network has a seat on MVCs Management Committee and the Networks Director chairs its grassroots committee. The Network remains committed to playing its part in MVC. Party funding Building on the success of Cleanpolitix.com in April 2004 the New Politics Network received a two year grant to campaign for a change to the way parties are funded ensuring that there is more emphasis on supporting local activism. Elect the Lords The New Politics Network in association with Charter88 launched Elect the Lords a campaign for a predominately elected second chamber. Building a Partnership for the Future

The Network has always sought to work in coalitions or partnerships with other groups or organisations. Over the last year the Network built a strong working relationship with Eurobandits and with Charter88. In March 2004 we signed a two-year agreement with Charter88 to deliver a programme of work under the title of the democracy project. This combined with funding from Joseph Rowntree Reform Trust have allowed the Network to expand its staff team bring in a Press & Campaigns Officer and a Parliamentary and Policy Officer. The Network remains committed to developing a sound financial basis for our activities.

Results The results of the year's operation are set out in the attached financial statements. The Organization made a deficit after restricted reserve transfer of 5,767 in the year (2004 deficit 22,265).

Auditors

The auditors, Gotham Erskine, offer themselves for reappointment at the forthcoming Annual General Meeting. This report was approved by the Council on and signed on its behalf.

Peter Facey Director

Independent auditors' report to the Council members of New Politics Network

We have audited the financial statements of New Politics Network for the year ended 31 March 2005 which comprise the Balance Sheet and the related notes. These financial statements have been prepared in accordance with the Financial Reporting Standards for Smaller Entities (effective June 2002) under the historical cost convention and the accounting policies set out on page 8. This report is made solely to Organization's Council members, as a body. Our audit work has been undertaken so that we might state to the Members 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 Organization's and Members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of council members and auditors As described in the Statement of Council members responsibilities, the Council Members are responsible for the preparation of financial statements in accordance with applicable law and United Kingdom Accounting Standards. Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and United Kingdom Auditing Standards. We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared. We also report to you if, in our opinion, the Report is not consistent with the financial statements, if the company has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information specified by law regarding Council members transactions with the Organisation are not disclosed. We read the Council Members' Report and consider the implications for our report if we become aware of any apparent misstatements within it.

Basis of audit opinion We conducted our audit in accordance with United Kingdom Auditing Standards issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the companys circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

Basis of Audit Opinion In our opinion the financial statements give a true and fair view of the state of the Organization's affairs as at 31 March 2005 and of its surplus for the year then ended and have been properly prepared in accordance with generally accepted accounting principles

Gotham Erskine Chartered Accountants & Registered Auditors Dated: 2005

Friendly House 52-58 Tabernacle Street London EC2A 4NJ

New Politics Network Income and Expenditure Account Year ended 31 March 2005

Notes

2005

145,670

2004

50,739

Turnover Project costs Employment costs Administrative expenses (excluding special projects) Establishment expenses Operating deficit Dividend income Interest receivable

8 9 10 11 12 93,366 104,360 34,859 9,866

26,587 77,603 27,903 9,881 (242,451) (96,781) 80,000 6,766 (10,015) (141,974) (91,235) 73,896 7,817 (9,522)

Deficit on ordinary activities before taxation Tax on surplus on ordinary activities 2 (419) (10,434) Deficit on ordinary activities after taxation Transferred from / (to) restricted reserves 7 4,667 (5,767) 101,861 96,094 (12,074) (22,265) 124,126 101,861 (669) (10,191)

Retained surplus brought forward Retained surplus carried forward

The annexed notes form part of these financial statements 6

New Politics Network Balance Sheet as at 31 March 2005

Notes Fixed assets Tangible assets Current assets Debtors Cash at bank and in hand 3 2005 4,376 2004 4,872

137,984 43,351 181,335

128,097 20,714 148,811

Creditors: amounts falling due within one year Net current assets Net assets Capital and reserves Restricted Reserve General Reserve

(82,210) 99,125 103,501

(39,748) 109,063 113,935

6 7

7,407 96,094 103,501

12,074 101,861 113,935

The financial statements have been prepared in accordance with the Financial Reporting Standard for Smaller Entities (effective June 2002). The financial statements were approved by the Council on and signed on its behalf by:-

Stuart Hill Council Member

Maureen Brian Council Member

The annexed notes form part of these financial statements 7

New Politics Network Notes to the Financial Statements Year ended 31 March 2005
1 Accounting policies The financial statements have been prepared under the historical cost convention as modified by the revaluation of and in accorance with the Financial Rerporting Standard for Smaller Entities (effective June 2002) Turnover Turnover comprises donations, grants, subscriptions and management fee exclusive of Value Added Tax. Tangible fixed assets and depreciation Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases: Fixtures, fittings and office equipment 25% reducing balance

Taxation

2005

2004

UK corporation tax on interest receivable and taxable activities in the year at 6.2% (2004: 8.55%) There were no factors that may affect future tax charges.

419

669

Tangible fixed assets Furniture, fittings & equipment Cost At 1 April 2004 Additions Disposals At 31 March 2005 Depreciation At 1 April 2004 Charge for the year On disposals At 31 March 2005 Net book value At 31 March 2005 At 31 March 2004 15,301 1,093 (1,130) 15,264

10,429 1,459 (1,000) 10,888

4,376 4,872

New Politics Network Notes to the Financial Statements Year ended 31 March 2005
4 Debtors 2005 38,360 90,664 8,033 927 137,984 2004 13,591 90,664 15,000 3,500 4,842 500 128,097

Trade and other debtors Loan to Rodell Limited Loan to Charter 88 Loan to Union 21 VAT recoverable Prepayments

The loan to Rodell Limited is unsecured and repayable on demand. Interest is charged at 2% above base rate. The loan to Charter 88 is unsecured for two years from April 2004, and interest is charged at 6%.

Creditors: amounts falling due within one year

2005 16,810 50,377 419 4,659 4,579 1,744 3,622 82,210

2004 1,083 32,918 669 2,613 2,465 39,748

Trade creditors Inter company account Corporation tax Other taxes and social security VAT Pension Other creditors and accruals

Restricted Reserve Balance at 1st April 2004 Democracy Project Citizens for Europe Rethinking social democracy 5,391 6,683 12,074 Incoming resources 51,692 5,000 1,029 57,721 Balance at 31st March 2005 3,898 3,509 7,407

Expenditure (47,794) (6,882) (12,062) (66,738)

Transfers 4,350 4,350

The Restricted reserve reflects grant income receivable for specific campaigns and the related expenditure.

General Reserves

2005 101,861 (10,434) 4,667 96,094

2004 124,126 (10,191) (12,074) 101,861

At 1 April 2004 Retained deficit Transfer from /to resticted reserve At 31 March 2005

New Politics Network Notes to the Financial Statements Year ended 31 March 2005

Income

2005 6,293 1,840 7,545 26,850 3,365 2,378 6,746 5,000 37,370 11,103 3,219 27,739 6,222 145,670

2004 15,070 1,440 4,200 4,173 6,274 7,054 3,400 7,000 2,128 50,739

Consultancy income Fundraising donations Rent recharge Rodell Management Fees Bankers order donation Sundry income and recharged expenses Subscriptions income James Madison Trust - Citizen for Europe Charter 88 Democracy project Charter 88 - House of Lords Electoral Reform Society and others - House of Lords Joseph Rowntree Reform Trust Grant Amiel Trust Citizens for Europe Provident Financial/ Eurobandits

Project Costs

2005 2,218 10,741 6,959 1,444 532 4,734 6,882 7,973 4,089 12,690 35,104 93,366

2004 1,830 3,597 9,579 1,493 1,156 8,932 26,587

Conference Expenditure Fringe Meeting Discussion papers New Politics Bulletin Website Others Citizens for Europe Rethinking Social Democracy - salaries Rethinking Social Democracy - others House of Lords and Democracy Project - others House of Lords and Democracy Project - salaries

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New Politics Network Notes to the Financial Statements Year ended 31 March 2005

10 Employment Costs

2005 123,976 12,387 3,010 139,373 2,047 245 1,888 143,553 35,104 4,089 104,360 143,553

2004 71,717 3,769 1,125 76,611 992 77,603

Salaries Employer's NI Pensions

Volunteers/Interns Staff training and welfare Temporary staff and recruitment

House of Lords and Democracy Project Rethinking Social Democracy Other projects and administration

The number of full time equivalent staff employed in the year was 8 (2004: 5).

11 Administration Expenses

2005 3,454 1,844 2,963 5,562 6,969 945 396 2,904 1,600 2,821 315 1,589 916 336 2,245 34,859

2004 1,183 3,100 1,553 7,629 3,382 1,372 100 483 548 1,000 1,725 2,238 1,625 1,550 415 27,903

Printing and stationery Consultancy Postage Telephone and fax Equipment - operating lease termination charge Computer costs Advertising and promotion Subscriptions and publications Legal and professional Auditors' remuneration Bank charges and interest Sundry expenses Depreciation and disposal adjustment - office equipment Household Travel and subsistence Committees/Meetings

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New Politics Network Notes to the Financial Statements Year ended 31 March 2005

12 Establishment Expenses

2005 7,793 1,443 630 9,866

2004 8,293 1,005 583 9,881

Rent and Rates Light and Heat Insurances

13 Pension commitments Eligible members of Network staff belong to a defined contribution pension scheme with the assets held and administered separately from the Organisation. The contributions outstanding at the year end are reported in note 5 .

14 Other financial commitments

2005

2004

The Organization had annual commitments under non-cancellable operating leases as set out below: Equipment leases which expiring within one year The lease was terminated in June 2004 at a cost of 6,909.

3,382

15 Related parties - Rodell Properties Limited New Politics Network had a beneficial interest in the shares of Rodell Properties Limited, a company incorporated in England and Wales. New Politics Network were invoiced occupancy and office costs totalling 13,652 (2004: 8,293) and invoiced management fees of 26,850 for services provided by executives. Interest of 5,976 (2004: 7,639) was receivable on a loan (note 4) of 90,664 (2004: 90,664). At the year end the Organisation owed Rodell Properties 50,377 (2004: 32,918). The profit of Rodell for the year, after dividends and taxation, was 6,163 (2004 = 18,063).

16 Post Balance Sheet event It is intended that the activities, assets and liabilities of the Organization be transferred to a company limited by guarantee as from 1st April 2006.

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