Charter 88

(Company limited by guarantee no. 2440899)

REPORT and ACCOUNTS for the year ended 31st March 2007

Charter 88
Executive Committee Vicky Seddon Debbie Chay Stuart Weir Terry Myers Peter Facey Ron Bailey Anthony Barnett Paul Farthing Robin Anderson Peter Davidson Claire Raynor Gordon Snow Peter Hirst John Jackson Chair

resigned 10-07-06 resigned 10-07-06 resigned 10-07-06 appointed 10-07-06 appointed 10-07-06 appointed 10-07-06 appointed 10-07-06 appointed 10-07-06 appointed 10-07-06

Secretary

Bernard Knight

Registered Office

6, Cynthia Street, London N1 9JF

Reporting Accountant

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

Charter 88 (known publicly as Charter88) 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.

Charter 88 Executive Committee's report for the Year Ended 31st March 2007
The Executive Committee (which is the board of directors for company law purposes) presents its report and the audited accounts for the year ended 31 March 2007. 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 Charter working under its new constitution, as a membership organization and enter into successful negotiations with the New Politics Network about a full organizational merger to build a stronger democratic reform organization for the United Kingdom. These decisions were endorsed by an AGM in November and confirmed by a membership ballot in April 2007. In August 2006 Charter 88 and the New Politics Network combined their staff teams and campaign resources to launch a combined campaign under the Charter brand Unlock Democracy. Campaigning The organization made substantial process over the year with its campaigns. The highlights include the successful votes in the House of Commons for an elected second chamber and the growing support for reform of the royal prerogatives, a Bill of Rights and the increased recognition that Britain needs a written constitution. The organization also made significant progress in relation to empowering local communities as part of the campaign for the Sustainable Communities Bill, which is now expected to get the Royal Assent during autumn 2007. People and Politics Day In November 2006 we organized an all day citizenship event for 2000 young people in Westminster Central Hall, at which we had 14 high profile speakers. Finance Charter increased its income of the last year and continued to live within its means. The decision to merge with the New Politics Network means that the organization has a secure base on which it can build in the years ahead.

Charter 88 Executive Committee's report for the Year Ended 31st March 2007
ACCOUNTANTS The company's reporting accountants, Gotham Erskine, 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.

Charter 88
Reporting accountants' report to the members on the unaudited accounts of Charter 88

We report on the financial statements for the year ended 31 March 2007 set out on pages 5 to 10. Respective responsibilities of Executive Committee and reporting accountants As described on page 3 the Executive Committee, which is the board of directors of Charter 88 for the purposes of company law, is responsible for the preparation of the financial statements, and considers that Charter 88 is exempt from the requirements for an audit. It is our responsibility to carry out procedures designed to enable us to report our opinion. Basis of opinion Our work was conducted in accordance with the Statement of Standards for Reporting Accountants, and so our procedures consisted of comparing the financial statements with the accounting records kept by Charter 88, and making such limited enquiries of the officers of Charter 88 as we considered necessary for the purposes of this report. These procedures provide only the assurance expressed in our opinion. Opinion In our opinion: (a) the financial statements for the year ended 31 March 2007 are in agreement with the accounting records kept by Charter 88 under section 221 of the Companies Act 1985; having regard only to, and on the basis of, the information contained in those accounting records: i. the financial statements have been drawn up in a manner consistent with the accounting requirements specified in section 249C(6) of the Act; and Charter 88 satisfied the conditions for exemption from an audit of the financial statements for the year specified in section 249A(4) of the Act as modified by section 249A(5) and did not, at any time within that year, fall within any of the categories of companies not entitled to the exemption specified in section 249B(1).

(b)

ii.

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

Charter 88
Balance Sheet at 31st March 2007 2007
Fixed Assets Tangible fixed assets Investments Current Assets Debtors & prepayments Cash note 7 note 8 11,040 11,040 4,539 116,545 121,084 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 2007 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 profit 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 2005). The financial statements were approved and authorised for issue by the Executive Committee on the 27th October 2007 and signed on its behalf by: note 11 2,251 91,138 93,389 2,329 69,122 71,451 note 10 38,735 82,349 93,389 6,619 95,183 101,802 32,132 69,670 71,451

2006
1,681 100 1,781

note 9

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

Vicky Seddon

Chair

The notes on pages 7 to 10 form part of these financial statements.

Charter 88
Statement of Financial Activities for the year ended 31st March 2007
Incoming Resources Donations Bank interest receivable Miscellaneous income Total Incoming Resources Restricted Unrestricted Total 2006

176,568 2,756 9,779

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

169,390 1,494 350 171,234

Note 4 -

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 2006 Fund balances carried forward 31 March 2007

Note 3 16,198 78 120,364 16,199 14,326 78 (78) 2,329 2,251 167,087 22,016 69,122 91,138 16,198 120,442 16,199 14,326 167,165 21,938 71,451 93,389 5,548 145,857 8,426 7,365 167,196 4,038 67,413 71,451

All recognised gains and losses are included in the Statement of Financial Activities All of the Company's activities are continuing. Following the coming into force of a new Statement of Recommended Practice for charities the Executive Committee has agreed a new basis for allocating overheads. The 2006 comparatives have been restated accordingly.

The notes on pages 7 to 10 form part of these financial statements.

Charter 88
Notes to the Accounts for the year ended 31st March 2007
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 2005), 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. Subsidiary Company As explained in Note 8 the company had a subsidiary. Group accounts are not prepared because they would not be materially different from the accounts of the company: there is no requirement to prepare them by virtue of the Group qualifying as a 'small group' under the Companies Acts. Local Groups These accounts include the transactions of Charter88 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. Transactions with local groups during the year totalled 78 funded from the Andrew Wainwright Reform Trust (2006 612). 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 11. 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.

Charter 88
Notes to the Accounts for the year ended 31st March 2007
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 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 repairs, maintenance Office miscellaneous IT maintenance, consumables, software Directors' travel, meetings Subscriptions, publications Insurances Accountancy services Reporting Accountant's fee Legal costs Sundry finance charges Loan interest Depreciation Partnership payments - NPN Partnership payments - ACT Mailshot costs Campaign costs Signatory costs Party conference costs Local group costs AGM & OGM costs Corporation tax on investment income 21,385 17,738 1,024 12,930 4,059 2,400 4,079 2007 38,043 1,175 234 645 2,608 39,123 767 1,577 860 1,285 153 5,999 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 78 7,351 489 167,165 Costs of generating funds - fundraising Activities in furtherance of objectives: Direct campaigning Signatory services Governance 16,198 120,442 16,199 14,326 167,165 8 20,761 10,692 20,170 20,170 4,032 2,115 4,271 2006 42,021 49 1,433 2,537 31,454 580 1,141 482 938 480 234 6,990 2,163 416 1,502 3,250 2,115 30 547 493 4,271 20,170 20,170 16,225 2,878 2,538 612 1,477 167,196 5,548 145,857 8,426 7,365 167,196 2007 2006

Charter 88
Notes to the Accounts for the year ended 31st March 2007
4 Miscellaneous Income Charter 88 Enterprises Ltd (note 1 below) Write back of old provision (note 2 below) Sundry items 2007 4,440 5,000 339 9,779 2006 350 350

Notes: 1. The amount of 4,440 represents an old provision held in the accounts of Charter 88 Enterprises Ltd (a wholly owned Charter 88 subsidiary), no longer required. Accordingly the provision has been written back to Charter 88 on the striking off of the subsidiary during 2006-07. See also note 8 to these accounts. 2. An amount of 5,000 was provided from the proceeds of a mailshot made in 2005 for payment to a third party The Directors now consider that the provision is not required and accordingly the provision is written back to general reserves. 5 Employees and Staff Costs 2007 Number 2006 Number

In aggregate the monthly average of full and part time persons employed during the year was: Direct campaigning Signatory services Fundraising 1.6 0.2 0.2 2.0 Staff costs were as follows: Salaries National insurance 34,725 3,318 38,043 1.4 0.1 0.1 1.6 38,292 3,729 42,021

Executive Committee Remuneration and Reimbursed Expenses Expenses relating to travel and subsistence totalling 2,698 (2006 - 2,069) were reimbursed to 10 members (2006 - 9).

Tangible Fixed Assets - Computer Equipment Cost 1 April 2006 Additions 31 March 2007 Depreciation 1 April 2006 Charge for the year 31 March 2007 Net Book Value

2007 23,329 13,438 36,767

2006 22,360 969 23,329

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

17,377 4,271 21,648 1,681

Charter 88
Notes to the Accounts for the year ended 31st March 2007
8 Investments Shares in Subsidiary 2007 2006 100

The Company owned 100 ordinary shares of 1 each, the entire issued share capital, in Charter 88 Enterprises Limited, a company incorporated in England. The subsidiary had not been operating for some years and Charter 88 arranged for it to be de-registered with Companies House during the year. The subsidiary was struck off on 20th March 2007. 9 Debtors Sundry debtors Prepayments 2007 4,248 291 4,539 10 Creditors Amounts falling due within one year Trade creditors Accruals Other taxes and social security Charter 88 Enterprises Ltd Loan, New Politics Network Loan, Ron Bailey Ltd Loan, Charles Secrett 2007 14,124 24,611 38,735 2006 4,327 2,292 6,619 2006 8,633 16,424 1,051 4,540 637 424 423 32,132

11

Restricted Funds

Balance at 1 April 2006 2,329

Incoming resources -

Resources Balance at expended March 2007 31 78 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 19% (2006 - 0%) on the Company's investment income. The tax charge for the year was 489 (2006 - nil). Capital Commitments The company had no capital commitments at 31st March 2007 (2006 10,000). Future of Charter 88 Charter 88 is currently in negotiation with New Politics Network Ltd to merge with that organisation. The merger plans are well advanced and are expected to be completed before the end of the Company's current financial year.

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