NEW POLITICS NETWORK

COUNCIL MEMBERS' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2004

NEW POLITICS NETWORK

ORGANISATION 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 Mike Power (Resigned 29.01.2004) Paul Simpson Phil Taylor Nina Temple (Resigned 25.02.2004) 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

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CONTENTS

Page

Council members' report Auditors' report Income and expenditure account Balance sheet Notes to the financial statements Detailed income and expenditure account and summaries

1 4-5 6 7 8 - 11 11 - 13

NEW POLITICS NETWORK

COUNCIL MEMBERS' REPORT FOR THE YEAR ENDED 31 MARCH 2004

The Council Members present their report and the financial statements for the year ended 31 March 2004. STATEMENT OF COUNCIL MEMBERS RESPONSIBILITIES The Constitution of New Politics Network requires the Council members to 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 This report covers the period from April 2003 up until the autumn of 2004. Our activities over the last year have seen our profile continue to grow and this has led to an increased number of interviews in both national and regional media. We have built a strong foundation and developing relationships, which 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 their design and working to improve their quality. The Network continues to bring writers and thinkers together from diverse backgrounds to discuss and produce new ideas. Our publications have started to receive critical acclaim and have led to other individuals and organisations seeking to work with us. Our publication the "Church of England and the State" was runner-up in the Think Tank of the Year Awards 'Best Pamphlet' category. In the summer of 2003 the Network ran a research project looking at the health of constituency parties, the Network conducted 20 interviews in 12 constituencies in England. The results of this work were fed into the Electoral Commissions review of the funding of political parties. Over the year the Network has produced the following pamphlets and bulletins: Pamphlets The Church of England and the State - Reforming Establishment for a multi-faith Britain Beyond the Classroom; Exploring Active Citizenship in 11 - 16 Education Broadening Participation - Thinking Beyond Party Membership

Bulletins Politics and the Media With contributions from: Prof. Ivor Gaber, Rt Hon John Redwood MP, Janet Davidson AM, Debra Shipley MP and Austin Mitchell MP.

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COUNCIL MEMBERS' REPORT FOR THE YEAR ENDED 31 MARCH 2004 Women's Representation With contributions from: Professor Joni Lovenduski, Barbara Roche MP, Teresa May MP and Sandra Gidley MP.

Website and Internet Over the last year the Network has continued to develop its website www.new-politics.net and Network News our email newsletter has gone from being issued monthly to fortnightly. 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 in 2003 held fringe meetings at the Labour, and Liberal Democrat conferences, in 2004 the Network ran 9 events over the 3 main parties conferences. 2004 also saw the Network become involved in the "People and Politics" strand of the UK South East Europe Forum a project of the British Council and the Network helped deliver a conference for 100 young politicians. This year saw the New Politics Network join a coalition of organisations to deliver a series of conferences under the branding Rethinking Social Democracy. The Network's particular interest is in the elements dealing with the approach to democracy and citizenship and helping provide an "open space". 2003 also saw Citizens for Europe become a project of the Network and us jointly deliver a major conference "A Europe for Citizens, Our Role" in May 2004. As well as us helping to deliver regional events aimed at promoting understanding of what it means to be a European citizen. Campaigns The Network, is not only interested in developing ideas and promoting discussion. It exists to campaign for change to the way in which our politics operates. 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 MVC's 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 ensuring that we have a sound financial basis for all our activities.

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COUNCIL MEMBERS' REPORT FOR THE YEAR ENDED 31 MARCH 2004

AUDITORS The auditors, Gotham Erskine, offer themselves for reappointment at the forthcoming Annual General Meeting. This report was approved by the Council on 27 November 2004 and signed on its behalf.

Peter Facey Director

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEW POLITICS NETWORK

We have audited the financial statements of New Politics Network for the year ended 31 March 2004 set out on pages 6 to 11. These financial statements have been prepared in accordance with the Financial Reporting Standard 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 the Network's Council members, as a body. Our audit work has been undertaken so that we might state to the Network's Council members those matters we are required to state to them in an auditor's 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 Organisation and the Network's Council 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 the 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 Council Members' Report is not consistent with the financial statements, if the organisation 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 Council Members in the preparation of the financial statements, and of whether the accounting policies are appropriate to the organisation 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.

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEW POLITICS NETWORK

OPINION In our opinion the financial statements give a true and fair view of the state of the Organisation's affairs as at 31 March 2004 and of its deficit for the year then ended and have been properly prepared in accordance with generally accepted accounting policies.

Gotham Erskine Chartered Accountants & Registered Auditors Friendly House 52-58 Tabernacle Street London EC2A 4NJ 29 November 2004

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INCOME AND EXPENDITURE ACCOUNT For the year ended 31 March 2004

Note TURNOVER Project costs Employment costs Administrative expenses Establishment expenses OPERATING DEFICIT Dividend income Interest receivable SURPLUS/(DEFICIT)ON ORDINARY ACTIVITIES BEFORE TAXATION TAX ON SURPLUS ON ORDINARY ACTIVITIES SURPLUS/(DEFICIT) ON ORDINARY ACTIVITIES AFTER TAXATION RETAINED SURPLUS/(DEFICIT) BROUGHT FORWARD Transferred to restricted reserves RETAINED SURPLUS CARRIED FORWARD 2 110 12 13 14 15

2004 50,739 (26,587) (77,603) (27,903) (9,881) (91,235) 73,896 7,817

2003 38,632 (23,737) (66,730) (39,173) (11,163) (102,171) 224,000 6,586

(9,522) (669)

128,415 (2,313)

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

126,102 (1,976) 124,126

The notes on pages 8 to 11 form part of these financial statements.

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BALANCE SHEET As at 31 March 2004

2004 Note FIXED ASSETS Tangible fixed assets CURRENT ASSETS Debtors Cash at bank and in hand 4 128,097 20,714 148,811 CREDITORS: amounts falling due within one year NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES 3 4,872

2003 6,497

139,039 19,094 158,133

(39,748) 109,063 113,935

(40,505) 117,628 124,125

Restricted reserves General Reserves

6 7

12,074 101,861 113,935

124,125 124,125

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 27 November 2004 and signed on its behalf.

Stuart Hill Council Member

Maureen Brian Council Member

The notes on pages 8 to 11 form part of these financial statements.

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NOTES TO THE FINANCIAL STATEMENTS For the YEAR ended 31 MARCH 2004

1.

ACCOUNTING POLICIES 1.1 Basis of preparation of financial statements The financial statements have been prepared under the historical cost convention as modified by the revaluation of and in accordance with the Financial Reporting Standard for Smaller Entities (effective June 2002). 1.2 Turnover Turnover comprises donations, grants and subscriptions exclusive of Value Added Tax. 1.3 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, fitting and equipments 25% reducing balance

2.

TAXATION 2004 Analysis of tax charge in year UK corporation tax on bank interest receivable in the year at 8.55% (2003: 5.70%) Adjustments in respect of prior periods Tax on ordinary activities 669 669 377 1,937 2,314 2003

There were no factors that may affect future tax charges.

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NOTES TO THE FINANCIAL STATEMENTS For the YEAR ended 31 MARCH 2004

3.

TANGIBLE FIXED ASSETS Furniture, fittings and equipment Cost At 1 April 2003 and 31 March 2004 Depreciation At 1 April 2003 Charge for the year At 31 March 2004 Net book value At 31 March 2004 At 31 March 2003 4,872 6,497 8,804 1,625 10,429 15,301

4.

DEBTORS 2004 Due within one year Trade and other debtors Loan to Rodell limited VAT recoverable Loan to Charter 88 Loan to Union 21 Prepayments 13,592 90,663 4,842 15,000 3,500 500 128,097 1,948 135,662 919 510 139,039 2003

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, and interest is charged at 6%. The loan to Union 21 is unsecured, interest free and repayable on demand.

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NOTES TO THE FINANCIAL STATEMENTS For the YEAR ended 31 MARCH 2004

5.

CREDITORS: Amounts falling due within one year 2004 Trade creditors Due to Rodell Limited Other creditors and accruals Corporation tax Social security and other taxes 1,083 32,918 2,465 669 2,613 39,748 2003 1,792 29,327 3,948 5,438 40,505

6.

RESTRICTED RESERVE At 1 April 2003 Citizens for Europe Rethinking social democracy At 31 March 2004 5,391 6,683 12,074

7.

GENERAL RESERVES Income and expenditure account Deficit at 1 April 2003 Surplus in the year Transfer to restricted reserve At 31 March 2004 124,126 (10,191) (12,074) 101,861

8.

PENSION COMMITMENTS Eligible members of Network staff belong to a defined contribution pension scheme with the assets held and administered separately from the Organisation. There were no contributions outstanding at the year end.

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NOTES TO THE FINANCIAL STATEMENTS For the YEAR ended 31 MARCH 2004

9.

OPERATING LEASE COMMITMENTS At 31 March 2004 the Network had annual commitments under non-cancellable operating leases as follows: 2004 Equipment lease: Expiry date: Within 1 year Between 2 and 5 years The lease was terminated in June 2004 at a cost of 6,909. 3,382 3,382 2003

10.

RELATED PARTY TRANSACTIONS New Politics Network had a beneficial interest in the shares of Rodell Properties Limited, a company incorporated in England and Wales. New Politics Network paid recharged employment and office costs totalling 40,555 (2003: 38,831) and received 7,639 (2003: 6,015) interest on a loan (note 4) of 90,664 (2003: 135,660). At the year end, Rodell Properties owed the Organisation 33,131 (2003: 29,327). 2004 2003

11.

INCOME Consultancy income Fundraising donations Rent recharge Bankers order donation Sundry income and recharged expenses Subscriptions income Joseph Rowntree Reform Trust grant Amid Trust Citizens for Europe KPMG/Euroban 15,070 1,440 4,200 4,173 6,274 7,054 3,400 7,000 2,128 50,739 6,312 4,201 5,277 779 9,063 13,000 38,632

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NEW POLITICS NETWORK 2004 12. PROJECT COSTS Conference Expenditure Fringe meeting Discussion papers New Politics Bulletin Tacticalvoting.net Website Others 1,830 3,597 9,579 1,493 1,156 8,932 26,587 2,080 1,959 3,888 5,858 200 4,815 4,937 23,737 2003

2004 13. EMPLOYMENT Salaries National Insurance Pensions Staff Training 71,717 3,769 1,125 992 77,603

2003

62,707 2,819 792 412 66,730

2004 14. ADMINISTRATION EXPENSES Printing and stationery Consultancy Postage Telephone and fax Equipment - operating leases Computer costs Advertising and promotion Subscriptions and publications Legal and professional Auditors remuneration Bank charges Other interest Sundry expenses Depreciation - office equipment Loss on disposal of tangible assets Household Travel and subsistence 1,183 3,100 1,553 7,629 3,382 1,372 100 483 548 1,000 1,723 2 2,238 1,625 1,550 415 27,903

2003

1,723 5,000 850 9,619 3,382 2,600 2,239 67 1,205 720 1,793 223 2,390 2,196 3,453 1,713 39,173

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NEW POLITICS NETWORK 2004 15. ESTABLISHMENT EXPENSES Rent and rates Light and heat Insurances 8,293 1,005 583 9,881 9,196 1,418 549 11,163 2003

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