Unlock Democracy

formerly Charter 88
(Company limited by guarantee no. 2440899)

REPORT and ACCOUNTS for the year ended 31st March 2008

Unlock Democracy (formerly Charter 88)

Executive Committee Vicky Seddon Stuart Weir Terry Myers Peter Davidson Peter Hirst John Jackson Rosemary Bechler Alan Debenham Nina Fishman Stuart Hill Finola Kelly Kelleen McIntyre Andrew Pearman Owais Rajput Mark Valladares Tim Williamson Debbie Chay Peter Facey Robin Anderson Claire Rayner Gordon Snow Chair

appointed April 2008 appointed April 2008 appointed April 2008 appointed April 2008 appointed April 2008 appointed April 2008 appointed April 2008 appointed April 2008 appointed April 2008 appointed April 2008 resigned April 2008 resigned April 2008 resigned April 2008 resigned April 2008 resigned April 2008

Secretary

Alex Runswick

appointed January 2007

Registered Office

6, Cynthia Street, London N1 9JF

Reporting Accountants

Gotham Erskine LLP Friendly House 52-58, Tabernacle Street London EC2A 4NJ

The company registerd a name change on 30th April 2008 from Charter 88 to Unlock Democracy and is registered as a company limited by guarantee (without share capital) no. 2440899; its governing instrument is its memorandum and articles of association. Every member of the company undertakes to contribute to its assets in the event of its being wound up while s/he is a member such amount as may be required not exceeding 10.

Unlock Democracy (formerly Charter 88) Executive Committee's report for the Year Ended 31st March 2008
The Executive Committee (which is the board of directors for company law purposes) presents its report and the accounts for the year ended 31 March 2008. OBJECTS The object for which the Company is established is to encourage constitutional and democratic changes inspired by the arguments and demands of its Charter, entitled Charter88, published in 1988. It is principally involved in educative, informative, campaigning and lobbying activities for constitutional and democratic reform in the UK. REVIEW OF ACTIVITIES AND ACHIEVEMENTS Governance This year saw the completion of the merger between Charter 88 and New Politics Network to form Unlock Democracy, the name of the company being changed to Unlock Democracy to reflect this. Campaigning 2007/8 has been a busy year for the organisation. The highlights include the organisation giving oral evidence on the English Question, Royal Prerogatives and lobbying transparency. This year also saw the culmination of many years work with the Sustainable Communities Act finally becoming law. Citizenship In March 2008 we held our second People and Politics Day, an all day citizenship event for 1800 young people in Westminster Central Hall, at which we had 20 high profile speakers. This year's event had a special focus on the European Union. Unlock Democracy continues to develop material that enables citizens to understand the constitutional debates taking place. As part of this work we produced a guide to the Lisbon Treaty. Finance Charter incurred a small deficit of just over 8,000 during the year which was taken out of earlier year reserves. Income was some 7.5% down on 2007 whilst campaigning costs were almost 10% higher. As reported elsewhere Charter88 (now Unlock Democracy) has from 1st April assumed all the operating responsibilities for the campaigning and fundraising work of New Politics Network. Financial policies will continue in force whereby Directors will maintain financial commitments within the available income and reserves. During the current year the organisation will be making greater efforts to increase its grant income and develop its individual donor base.

Unlock Democracy (formerly Charter 88) Executive Committee's report for the Year Ended 31st March 2008
ACCOUNTANTS The company's reporting accountants, Gotham Erskine LLP, have indicated their willingness to accept re-appointment. EXECUTIVE COMMITTEE'S RESPONSIBILITIES STATEMENT The Executive Committee members are required by law to prepare accounts for each financial year, which give a true and fair view of the financial activities of the company and of its financial position at the end of that year. In preparing those accounts, the Executive Committee members are required to: -select suitable accounting policies and then apply them consistently; -make judgments and estimates that are reasonable and prudent; -state whether applicable 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 company will continue in business. The Executive Committee members are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the accounts comply with the Companies Act 1985. They are responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. PREPARATION OF THE REPORT This report has been prepared in accordance with the provisions of Part VII of the Companies Act 1985 relating to small companies.

On behalf of the Committee

Vicky Seddon Chair

Date.

Chartered accountants' independent assurance report on the unaudited financial statements to the Executive Committee of

Unlock Democracy (formerly Charter 88)

We have performed certain procedures in respect of the Company's unaudited financial statements for the year ended 31 March 2008 as set out on pages 5 to 10, made enquiries of the Company's Executive Committee and assessed accounting policies adopted by the Committee in order to gather sufficient evidence for our conclusion in this report. This report is made solely to the Company's Exectuive Committee as a body, in accordance with the terms of our engagement letter dated 14 August 2008. It has been released to the Committee on the basis that this report shall not be copied, referred to or disclosed, in whole (save for the Committee's own internal purposes or as may be required by law or by a competent regulator) or in part, without our prior written consent. Our work has been undertaken so that we might state to the Committee those matters that we have agreed to state to them in this report and for no other purposes. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company's Committee as a body for our work, for this report or the conclusions we have formed. Respective responsibilities of Committee and Accountants You have confirmed that you have met your duty as set out in the Committee's statement on page 3. You consider that the Company is exempt from the statutory requirement for an audit for the year ended 31 March 2008. Our responsibility is to form and express an independent conclusion, based on the work carried out, to you on the financial statements. Scope We conducted our engagement in accordance with the Institute of Chartered Accountants in England & Wales Interim Technical Release AAF 03/06. Our work was based primarily upon enquiry, analytical procedures and assessing accounting policies in accordance with the Financial Reporting Standards for Smaller Entities. If we considered it to be necessary, we also performed limited examination of evidence relevant to certain balances and disclosures in the financial statements where we became aware of matters that might indicate a risk of material misstatement in the financial statements. The terms of our engagement exclude any requirement to carry out a comprehensive assessment of the risks of material misstatement, a consideration of fraud, laws, regulations and internal controls, and we have not done so. We are not required to, and we do not, express an audit opinion on these financial statements. Conclusion Based on our work, nothing has come to our attention to refute the Committee's confirmation that in accordance with the Companies Act 1985 the financial statements give a true and fair view of the state of the Company's affairs as at 30 September 2007 and of its surplus for the year then ended and have been properly prepared in accordance with the Financial Reporting Standard for Smaller Entities.

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

Unlock Democracy (formerly Charter 88)

Balance Sheet at 31st March 2008 2008
Fixed Assets Tangible fixed assets note 6 6,965 6,965 Current Assets Debtors & prepayments Cash note 7 5,938 108,245 114,183 Less: Creditors falling due within one year Net Current Assets Net Assets Funds Restricted funds Unrestricted funds Total Funds Directors' Statements: (a) For the accounting period ended 31st March 2008 the company was entitled to exemption under Section 249A(1) of the Companies Act 1985. (b) Members have not required the company to obtain an audit in accordance with S249B(2) of the Companies Act 1985. (c) The Directors acknowledge their responsibility for: (1) Ensuring the company keeps accounting records which comply with S221, and, (2) preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial period, and of its loss for that period, in accordance with the requirements of the Companies Act relating, so far as applicable to the company; (d) The accounts have been prepared in accordance with the special provisions of Part VII of the Companies Act 1985 relating to small companies and the Financial Reporting Standard for Smaller Entities (effective January 2007). The financial statements were approved and authorised for issue by the Executive Committee on the ..2008 and signed on its behalf by: note 9 2,251 82,659 84,910 2,251 91,138 93,389 note 8 36,238 77,945 84,910 4,539 116,545 121,084 38,735 82,349 93,389

2007
11,040 11,040

.............................................

Vicky Seddon

Chair

Notes numbered 1 to 12 on pages 7 to 10 form part of these financial statements.

Unlock Democracy (formerly Charter 88)

Statement of Financial Activities for the year ended 31st March 2008
Incoming Resources Donations Bank interest receivable Miscellaneous income Total Incoming Resources Restricted Unrestricted Total 2007

170,204 4,288 152 174,644

170,204 4,288 152 174,644

176,568 2,756 9,779 189,103

Resources Expended Costs of generating funds - fundraising Activities in furtherance of objectives: Direct campaigning Signatory services Governance Total Resources Expended Net Income (Expenditure) Fund balances brought forward at 1 April 2007 Fund balances carried forward 31 March 2008

Note 3 24,364 131,046 13,901 13,812 2,251 2,251 183,123 (8,479) 91,138 82,659 24,364 131,046 13,901 13,812 183,123 (8,479) 93,389 84,910 16,198 120,442 16,199 14,326 167,165 21,938 71,451 93,389

All recognised gains and losses are included in the Statement of Financial Activities All of the Company's activities are continuing.

Notes numbered 1 to 12 on pages 7 to 10 form part of these financial statements.

Unlock Democracy (formerly Charter 88)

Notes to the Accounts for the year ended 31st March 2008
1 Accounting Policies Basis of Preparation of Accounts These accounts have been prepared under the historical cost convention and in accordance with applicable accounting standards, the Financial Reporting Standard for Smaller Entities (effective January 2007), and having regard to the Statement of Recommended Practice for Charities (SORP) insofar as considered appropriate to the company's operations. Although not eligible for registration as a charity due to the nature of some of its campaigning activities, the company operates on a not-for-profit basis and the Executive Committee considers it appropriate to apply most of the provisions of the SORP. Incoming Resources All donations are included in full in the Statement of Financial Activities as they are received. Grants are accounted for in the period specified for their use by the donors provided that any conditions for receipt have been met. Other income is accounted for on a receivable basis. Local Groups These accounts include the transactions of Unlock Democracy only and not those of its local groups which operate regionally to support its campaigning aims. This is because the local group licence agreement entered into by all the groups makes it clear that they are entirely independent of the company, that all transactions are carried out in their own name and that they do not represent to be contracting on behalf of the company. There were no transactions with local groups during the year funded from the Andrew Wainwright Reform Trust (2007 78). Fund Accounting Unrestricted funds comprise accumulated surpluses and deficits on general funds. They are available for use at the discretion of the Executive Committee in furtherance of the general campaigning objectives. Restricted funds are funds that are to be used in accordance with specific restrictions imposed by the donors or which have been raised by the company for specific purposes. The cost of raising or administering such funds is charged against the specific fund. The aim and use of each restricted fund is set out in Note 9. Resources Expended All expenditure is accounted for gross, and when incurred. Staff costs and other costs directly attributable to functional cost categories have been allocated to those categories. Governance costs are those incurred in compliance with constitutional and statutory requirements. Depreciation Depreciation is calculated to write off the cost of tangible fixed assets over their estimated useful lives of 4 years. New items costing under 500 are not capitalised.

Unlock Democracy (formerly Charter 88)

Notes to the Accounts for the year ended 31st March 2008
2 Net Movement in Funds The net movement in funds is stated after charging: Management fees to Ron Bailey Ltd Management fees to New Politics Network Partnership payments, Active Citizens Transform Partnership payments, New Politics Network Office services paid to New Politics Network Reporting Accountants remuneration Depreciation 3 Resources Expended Salaries, NIC, pensions Staff recruitment Staff travel Website costs Office rents & rates Management Services Office telephones, mobile, internet, ADSL Office postage, courier Office stationery Office photocopier running Office miscellaneous IT maintenance, consumables, software Directors' travel, meetings Subscriptions, publications Insurances Accountancy services Reporting Accountant's fee Legal and merger costs Sundry finance charges Loan interest Depreciation Partnership payments - NPN Partnership payments - ACT Mailshot costs Campaign costs Signatory costs Party conference costs AGM & OGM costs Local Charter 88 groups Local group costs Corporation tax on investment income 21,340 26,654 8,037 7,305 2,500 4,075 2008 49,023 6,085 319 1,713 2,538 47,994 3,545 3,885 2,688 882 3,828 1,336 92 1,514 3,523 2,497 9,521 842 21,385 17,738 1,024 12,930 4,059 2,400 4,079 2007 38,043 1,175 234 645 2,608 39,123 3,387 1,577 860 1,285 153 3,379 2,854 92 1,632 3,384 2,400 3,576 606 9 4,079 12,930 1,024 7,477 20,823 4,593 1,299 7,351 78 489 167,165 16,442 122,839 13,559 14,325 167,165 2008 2007

4,075 8,037 10,464 6,931 9,911 415 497 172 796 183,123

Costs of generating funds - fundraising Activities in furtherance of objectives: Direct campaigning Signatory services Governance

24,364 131,046 13,901 13,812 183,123

Unlock Democracy (formerly Charter 88)

Notes to the Accounts for the year ended 31st March 2008
4 Employees and Staff Costs 2008 Number 1.5 0.1 0.1 1.7 Staff costs were as follows: Salaries National insurance 44,257 4,766 49,023 2007 Number 1.6 0.2 0.2 2.0 34,725 3,318 38,043

In aggregate the monthly average of full and part time persons employed during the year was: Direct campaigning Signatory services Fundraising

Executive Committee Remuneration and Reimbursed Expenses Expenses relating to travel and subsistence totalling 1,142 (2007 - 2,689) were reimbursed to 6 members (2007 - 10).

Tangible Fixed Assets - Computer Equipment Cost 1 April 2007 Additions 31 March 2008 Depreciation 1 April 2007 Charge for the year 31 March 2008 Net Book Value

2008 36,767 36,767

2007 23,329 13,438 36,767

25,727 4,075 29,802 6,965

21,648 4,079 25,727 11,040

Debtors Sundry debtors Prepayments 2,421 3,517 5,938 4,248 291 4,539

Creditors Amounts falling due within one year Trade creditors Accruals Other taxes and social security

29,883 4,326 2,029 36,238

14,124 24,611 38,735

Unlock Democracy (formerly Charter 88)

Notes to the Accounts for the year ended 31st March 2008
9 Restricted Funds Balance at 1 April 2007 2,251 Incoming resources Resources expended Balance at 31 March 2008 2,251

Local groups

Local groups expenditure is funded from a grant received from the Andrew Wainwright Reform Trust.

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Corporation Tax No tax liability arises on the Company's voluntary income. Corporation tax is charged at the small companies rate of 20% (2007 - 19%) on the Company's investment income. The tax charge for the year was 796 (2007 - 489). Capital Commitments The company had no capital commitments at 31st March 2008 (2007 nil). Future of Charter 88 (now renamed Unlock Democracy) With effect from 1st April 2008, in line with Council and members' policy agreements, Unlock Democracy has accepted responsibility for managing all operational activities of New Politics Network, (NPN), and has from that date incurred all the commitments related to NPN's activities and will receive the full benefit of all income, including grant, management fee and dividend income, previously receivable by NPN On 30th April 2008 Charter 88 changed its registered name with Companies House to Unlock Democracy Limited, with permission given not to use the word 'Limited'.

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