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2021-12-31-accounts

Company number: 2744185 Charity number: 1027201

THE INSTITUTE FOR WAR AND PEACE REPORTING (IWPR) Limited by guarantee

ANNUAL REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

THE INSTITUTE FOR WAR AND PEACE REPORTING

ANNUAL REPORT AND FINANCIAL STATEMENTS

CHARITY INFORMATION

Governing Document Memorandum and Articles of Association dated 1 September 1992
Companynumber 2744185
Charitynumber 1027201
Trustees The Trustees who served during the period and up to the date of this
Report were as follows:
Sir David Bell (Chairman)
Simon Hersom (Treasurer)
Richard Caplan (resigned, 21 June 2021)
Christina Lamb (resigned, 24 June 2021)
Zoran Pajic (resigned, 21 June 2021)
Stephen Jukes
Michael Immordino
Executive Director Anthony Borden
Registered office and
operational address London WC1X 8LT
Independent Auditor Haysmacintyre LLP
10 Queen Street Place
London EC4R 1AG
Bankers National Westminster Bank plc
218 Upper Street
London N1 1SP
Solicitors Bates Wells & Braithwaite London LLP
10 Queen Street Place
London EC4R 1BE

THE INSTITUTE FOR WAR AND PEACE REPORTING

ANNUAL REPORT AND FINANCIAL STATEMENTS

CONTENTS

Page
1
Responsibilities 7
8-10
Statement of Financial Activities 11
Balance sheet 12
Cash Flow Statement 13
Notes to the financial statements 14- 28

THE INSTITUTE FOR WAR AND PEACE REPORTING

TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees present their Annual Report together with the Audited Financial Statements for the year ended 31 December 2021. These are compiled in compliance with the Charities Act 2011, the Companies Act 2006 and the Charities SORP (FRS 102). All members of the Board are directors of the Charitable Company and this report represents a directors’ report as required by s417 of the Companies Act 2006.

Reference and administrative information set out above forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice – Accounting and Reporting by Charities.

1. ORGANISATIONAL GOVERNANCE AND STRUCTURE

The Institute for War and Peace Reporting (“IWPR”) is a not-for-profit organisation, registered with Companies House and the Charities Commission. The charity is a company limited by guarantee and has no share capital.

The governing body is the UK Governance Committee, which comprises established personalities in the fields of media, business, human rights and academia/analysis. The Members are directors under Company Law and, in line with that responsibility, oversee financial reporting and ensure that the financial statements give a true and fair view of the organisation’s financial activities during the year and its financial position at the year end.

The Members judge that a mixture of institutional, journalism, business and area/subject expertise provides the right balance of perspectives to direct and oversee the diverse operations of the organisation. Leading not-for-profit specialists advise the Board from time to time and ensure that it is current with best practice and emerging legislation, and the Board regularly reviews publications and guidance from the Charities Commission, the National Council for Voluntary Organisations, its independent auditors and other sources.

No new directors were appointed in 2021. A Nominations Committee continues to assess the requirements of the Governance Committee, evaluate the expertise of existing and candidate directors, and recommend appointments as appropriate in 2022. The Nominations Committee has recommended the appointment of Anthony Borden to the UK Governance Committee.

All new directors are provided with induction materials on IWPR, its work and finances, the interrelationship among the IWPR governing bodies, key IWPR policies regarding directors, and risk factors. Each new director is provided with good governance guides from the UK Charity Commission, the National Council for Voluntary Organisations and/or other relevant bodies.

The charity also operates a for-profit subsidiary, IWPR (UK) Limited, which is a company limited by shares. IWPR (UK) Limited delivers programmes that meet the group’s objectives outlined in Section 2 below and where the donor allows for an element of profit to be made. Any profits made by IWPR (UK) Limited are gift-aided to the UK charity to support its activities.

The charity and its subsidiary are linked through a network agreement with two associated not-for-profits: IWPR US, a 501(c) (3) tax-exempt organisation registered in Washington, DC, and IWPR NL, a not-for profit foundation registered in The Hague, Netherlands. The three Governance Committees for the UK, US and NL work closely together, holding joint committee meetings from time to time to agree a common strategic framework, approaches to programme implementation for efficiency and impact, to set shared financial goals and coordinate fund-raising.

The Finance Committee of the UK, US and NL Governance Committees comprises the Board Treasurers for the UK, US and NL and senior staff, and meets weekly to review financial performance, policies and procedures.

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THE INSTITUTE FOR WAR AND PEACE REPORTING

TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

The Governance Committees appoint a shared Executive Director accountable for all the work of the organisation; the members of the global Executive Management Team (EMT) report to the Executive Director, and are responsible for regional programmes, development, finance and HR/resources. The EMT meets regularly, and provides regular reports to Trustees on respective areas of responsibility.

The organisation maintains approximately 150 multi-national staff based in London, the international coordinating centres in Washington, D.C. and The Hague, and the areas of conflict and transition where we work, including the Middle East and North Africa, Eastern Europe, Eurasia, East Africa, South Asia and the Philippines and Latin America. The work of the programmes is supported by financial, editorial, administrative, HR/Resources and development/fundraising staff, located in the home offices.

2. REMUNERATION POLICY FOR KEY MANAGEMENT PERSONNEL

The Trustees consider the Executive Director, the Chief Operating Officer and other senior personnel to comprise the key management personnel of the charity in charge of directing, controlling, running and operating the charity on a day to day basis. In view of the nature of the charity, the Trustees benchmark against pay levels in similar sized charities. The remuneration benchmark is the mid-point of the range paid for similar roles in similar charities.

3. OBJECTIVES AND ACTIVITIES

IWPR empowers people’s voices at the frontlines of conflict and transition to help them drive change. The Institute builds skills, capacity and networks for citizens and their communities so their voices can make a difference – strengthening accountability and supporting development, advancing justice and forging peace.

Working in more than 30 countries, IWPR's innovative programmes are crafted to respond to the needs of the people they serve. Projects prioritise locally informed objectives and lead to sustainable outcomes. Direct beneficiaries include professional and citizen journalists, human rights and peace activists, policymakers, educators, researchers, businesses, and women’s, youth and other civil society organisations and partners.

Giving Voice, Driving Change , IWPR’s mission, calls for a wide range of efforts aimed at strengthening people's voices and helping them make a real difference within their own societies. The work ranges from skills building and professional journalism and communications training to media policy and legal reform; from frontline journalism production to citizens accountability networks and social media; from covering war crimes tribunals and human rights abuses to establishing national networks for election reporting and strengthen networks of rights defenders.

Public benefit

Charity trustees have a duty to develop strategic plans to ensure that we provide public benefit and achieve our objectives as set out in our governing document. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set. We have referred to the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives, and in planning our activities.

4. PROGRAMME ACTIVITIES: FRONTLINE SUPPORT

In 2021, the IWPR network continued its work in more than three dozen countries in crisis and conflict around the world.

IWPR gratefully acknowledges our donors, partners and beneficiaries, who all worked together with great understanding and supportiveness as programming was pivoted to address new challenges while adopting revised operational approaches in light of the continuing challenges of COVID-19.

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THE INSTITUTE FOR WAR AND PEACE REPORTING

TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

Highlights of our programming over the year include:

Africa

Asia

Eastern Europe / Eurasia

Latin America and the Caribbean (LAC)

Middle East and North Africa (MENA)

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THE INSTITUTE FOR WAR AND PEACE REPORTING

TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

Global

5. FUTURE PLANS

In line with its current five-year strategic plan, IWPR confirmed its commitment to the following priorities:

1. To strengthen the capacity of local independent media to promote accountability and drive positive change

2. To strengthen the capacity of civil society to be heard in societies in transition

3. To promote independent and marginalised voices, especially women & youth

4. To strengthen IWPR’s institutional capacity to deliver our mission

To achieve these aims, IWPR has committed to a sustained process of building extensive external networks of friends and supporters in order to enhance our own institutional capacity, diversify our sources of income, and increase our ability to invest in programme delivery.

At the same time, we are evolving specific areas of programmatic focus in our four main regions – Middle East and North Africa (MENA), Asia, Africa and Latin America – and deepening our expertise and key programmatic specialisms, including social media, digital security, grassroots accountability, and voices of those in closed environments who are marginalised and at-risk, especially women.

We are also extending our external networks of supporters and patrons, to extend sources of independent support and continue to strengthen our underlying financial position.

6. RISK MANAGEMENT

The Trustees have examined the major strategic, business and operational risks which the charity faces and confirm that systems have been established to mitigate those risks. This includes maintaining and regularly reviewing a detailed Risk Matrix, outlining threats and mitigations and enabling regular monitoring of emerging challenges and IWPR’s institutional response.

IWPR operates in a highly dynamic and often dangerous environment and recognises a diversity of risks facing the charity, ranging from low-level to extreme. Risks are identified and assessed as Severe, Major, Moderate and Minor, both before and after mitigation, and where further mitigation will further reduce the level of risk.

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THE INSTITUTE FOR WAR AND PEACE REPORTING

TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

All mitigations have an identified owner.

IWPR has identified the current areas of risk and the current mitigation status as follows:

  1. compliance with internal and external policies and regulations - moderate-major

  2. financial compliance and control - major

  3. corporate risks including business interruption, continuity, and reputation - moderate-major

  4. programmatic pipeline and delivery - minor-moderate

  5. financial sustainability - major

  6. human resources - minor-moderate

  7. IT and data security - major

  8. physical safety of personnel - major

COVID-19 Impact and Response

Like all organisations, IWPR has continued to be significantly impacted by the coronavirus pandemic. In addition to a major global health crisis, the virus has been accompanied by an ‘infodemic’, according to the World Health Organisation, that is, an equally dangerous outbreak of misinformation and disinformation, some by default and some by nefarious design, resulting in additional risk and increased health impacts. Additionally, in many areas where IWPR operates, governments have taken advantage of the crisis to restrict democratic freedoms, including clampdowns on human rights and freedom of expression.

IWPR is managing this major threat through a comprehensive approach to protect our people, continue serving our constituencies, communicate closely with our donors on any required project adjustments and develop extensive new programming responsive to the new reality, attracting fresh sources of support, providing programme continuity and ensuring institutional sustainability.

IWPR continues to monitor COVID-19 restrictions in all of its countries of operations to ensure compliance by staff and participants, including closing or reducing access to physical offices.

7. FINANCIAL REVIEW

Total income for 2021 was £4,016,210, down £946,157 or 19% on 2020, and principally comprised:

Total expenditure for the year was £4,339,301, down £608,224 or 12%, on the previous year. Support costs were 12% of total expenditure in 2021 (2020: 8%), leaving 88% (2020: 92%) for direct programme expenses.

Reserves

The Trustees have determined that IWPR UK should maintain unrestricted reserves equivalent to six month’s operating costs for the London office, or between £1 million and £1.25 million, whichever is the greater. Unrestricted reserves are essential for the charity for several reasons, to support new or otherwise unfunded programme activities, to invest in development initiatives to maintain and extend the programme portfolio, to assist journalists in need, and to cover certain central and overhead costs.

IWPR’s unrestricted reserves at 31 December 2021 were £978,422, slightly below the lower end of the target range; the Board of Trustees are working towards a new strategy and will consider ways of improving the reserves over a period of time.

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THE INSTITUTE FOR WAR AND PEACE REPORTING

TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

8. PARTNERS AND SUPPORTERS

The work of IWPR could not be undertaken, and the results could not be achieved, without the generous support of IWPR’s many donors and contributors and the enthusiastic partnership and cooperation of IWPR’s many international and local partners and cooperating organisations. These linkages enable IWPR to be what it is, and the Trustees recognise and extend their gratitude to all of the donors, partners and others who have supported us and worked with us throughout the year.

Fundraising

The charity does not engage any external fundraisers and did not receive any complaints in respect of its fundraising activities in the year.

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THE INSTITUTE FOR WAR AND PEACE REPORTING

TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees, who are also directors of the charitable company, are responsible for preparing their report and the financial statements in accordance with applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of the affairs of the charitable company and the group and of the surplus or deficit for that period. In preparing these financial statements the trustees are required to:

The trustees are also responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements 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.

STATEMENT OF DISCLOSURE TO THE AUDITOR

So far as the Board of Trustees are aware:

AUDITORS

Haysmacintyre were appointed auditors. In accordance with the company’s articles, a resolution proposing that Haysmacintyre LLP be re-appointed as auditors of the Charity will be put to a General Meeting.

The Trustees’ Report has been prepared in accordance with the small companies’ regime and exemption has been taken from preparing a strategic report.

Approved by the Trustees on 23 September 2022 and signed on their behalf by:

SIMON HERSOM

Trustee

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THE INSTITUTE FOR WAR AND PEACE REPORTING

ES OF THE INSTITUTE FOR WAR AND

PEACE REPORTING

Opinion

We have audited the financial statements of the Institute for War and Peace Reporting for the year ended 31 December 2021 which comprise Consolidated Statement of Financial Activities, the Consolidated and Charitable Company Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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THE INSTITUTE FOR WAR AND PEACE REPORTING

ES OF THE INSTITUTE FOR WAR AND

PEACE REPORTING

Opinions on other matters prescribed by the Companies Act 2006

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report (which incorporates the directors’ report). We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 11, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and the parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of noncompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to regulatory requirements for GDPR, Charities Act 2011 and Companies Act 2006, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, the Charities Act 2011, income tax and payroll tax.

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THE INSTITUTE FOR WAR AND PEACE REPORTING

ES OF THE INSTITUTE FOR WAR AND

PEACE REPORTING

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimate and application of controls around authorisation of expenditure and payments. Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's 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 charitable company and the charitable company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Murtaza Jessa (Senior Statutory Auditor) 10 Queen Street Place For and on behalf of Haysmacintyre LLP, Statutory Auditor London Date: 23 September 2022 EC4R 1AG

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THE INSTITUTE FOR WAR AND PEACE REPORTING

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (including an income and expenditure account)

The Statement of Financial Activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

Income from:
Note
Charitable activities
4
Donations and legacies
Trading activities of subsidiary
5
Other
TOTAL
Expenditure on:
Raising Funds
Charitable activities
Trading activities of subsidiary
TOTAL
6 & 8
Net income/(expenditure) for the year
Gross transfer between funds
NET MOVEMENT IN FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Year ended 31 December2021
Unrestricted
funds
Restricted
funds
Total funds
-
3,350,526
3,350,526
30,095
-
30,095
635,589
-
635,589
-
-
-
665,684
3,350,526
4,016,210
49,489
-
49,489
204,104
3,513,602
3,717,706
572,106
-
572,106
825,699
3,513,602
4,339,301
(160,015)
(163,076)
(323,091)
(163,076)
163,076
-
(323,091)
-
(323,091)
1,301,513
-
1,301,513
978,422
-
978,422		 Year ended 31 December2021
Unrestricted
funds
Restricted
funds
Total funds
-
3,350,526
3,350,526
30,095
-
30,095
635,589
-
635,589
-
-
-
665,684
3,350,526
4,016,210
49,489
-
49,489
204,104
3,513,602
3,717,706
572,106
-
572,106
825,699
3,513,602
4,339,301
(160,015)
(163,076)
(323,091)
(163,076)
163,076
-
(323,091)
-
(323,091)
1,301,513
-
1,301,513
978,422
-
978,422		 2020
Unrestricted
funds
-
30,095
635,589
-
665,684
49,489
204,104
572,106
825,699
(160,015)
(163,076)
(323,091)
1,301,513
978,422		 Restricted
funds
3,350,526
-
-
-
3,350,526
-
3,513,602
-
3,513,602
(163,076)
163,076
-
-
-		 Total funds
4,209,589
59,957
692,437
384
4,962,367
47,471
4,295,935
604,119
4,947,525
14,842
-
14,842
1,286,671
1,301,513

The notes on pages 14 to 28 form part of these financial statements.

11

Registered Company No: 2744185

THE INSTITUTE FOR WAR AND PEACE REPORTING

BALANCE SHEETS AS AT 31 DECEMBER 2021

Note
FIXED ASSETS
Investments
9
Tangible fixed assets
TOTAL FIXED ASSETS
CURRENT ASSETS
Debtors
10
Cash
CREDITORS:amounts
falling due within one
year
11
NET CURRENT ASSETS/(LIABILITIES)
NET ASSETS
FUNDS
Restricted funds
Unrestricted funds:
General reserves
12		 Group
2021
£
-
-
-
768,399
1,269,593
2,037,992
(1,059,570)
978,422
978,422
-
978,422
978,422		 Group
2020
£
-
-
-
418,077
1,809,317
2,227,394
(925,881)
1,301,513
1,301,513
-
1,301,513
1,301,513		 Charity
2021
£
2
-
2
852,165
965,855
1,818,020
(903,081)
914,939
914,941
-
914,941
914,941		 Charity
2020
£
2
-
2
499,505
1,528,707
2,028,212
(815,019)
1,213,193
1,213,195
-
1,213,195
1,213,195

The net movement in funds for the year relating to the parent charity alone amounted to a deficit of £298,254 (2020: a surplus of £87,958).

The financial statements were approved and authorised for issue by the Board of Trustees and were signed on 23 September 2022 on its behalf by:

SIMON HERSOM

Trustee

The notes on pages 14 to 28 form part of these financial statements.

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THE INSTITUTE FOR WAR AND PEACE REPORTING

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2021

Note 2021
£		 2020
£
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash used in operations A (539,724) (987,839)
CHANGE IN CASH AND CASH EQUIVALENTS
IN THE PERIOD		 (539,724) (987,839)
Cash and cash equivalents at 1 January 1,809,317 2,797,156
CASH AND CASH EQUIVALENTS AT 31
DECEMBER		 B 1,269,593 1,809,317
2021 2020
Note A £ £
Reconciliation of net movement in funds to net cash flow from operating activities
Net movement in funds for the year per the
Statement of Financial Activities		 (323,091) 14,842
Adjustments for:
Depreciation charges - 789
(Increase)/decrease in debtors (350,322) 82,778
Increase/(decrease) in creditors 133,689 (1,086,248)
Net cash provided by (used in) operating activities (539,724) (987,839)
Note B
Analysis of cash and cash equivalents
Cash in hand 1,269,593 1,809,317
Total cash and cash equivalents 1,269,593 1,809,317

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THE INSTITUTE FOR WAR AND PEACE REPORTING

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with 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 (FRS102) (Charities SORP 2019 (Second Edition, effective 1 January 2019)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The preparation of the financial statements in compliance with FRS102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in appl accounting policies (see note 3).

The financial statements are presented in Sterling (£).

Company status

The Institute for War and Reporting is a Company Limited by Guarantee and has no share capital. Each member is liable to contribute £1 in the event of the Charity being wound up. No individual member has control.

The Charity is a public benefit entity as defined by FRS102. Assets and liabilities are therefore initially recognised at historical cost or transaction value unless stated otherwise in the accounting policies below.

The financial statements consolidate the accounts of The Institute for War and Peace Reporting and its subsidiary, IWPR (UK) Limited (also a public benefit entity), as at 31 December 2021.

Going concern

The Charity’s level of unrestricted reserves available at the year-end were considered adequate resources to continue in operational existence for the foreseeable future. The ongoing COVID-19 pandemic, including the impact it has had on the UK government’s commitment to overseas aid, caused the Trustees to review the positions of the Charity and its subsidiary. Revised forecasts were prepared to review the impact on the Charity’s funding, costs and cashflow. Based on these current projections, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis and the trustees do not anticipate any material uncertainties.

2. ACCOUNTING POLICIES

2.1 Fund accounting

Restricted funds are funds subject to specific restrictions imposed by donors.

Unrestricted funds comprise accumulated surpluses and deficits on general funds. They are available for use at the discretion of the Trustees in furtherance of the general charitable activities.

2.2 Income

Income is recognised once the charity has become entitled to the income; it is probable that the income will be received; and the amount of income receivable can be measured reliably.

2.3 Expenditure

Resources expended are accounted for on an accruals basis.

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THE INSTITUTE FOR WAR AND PEACE REPORTING

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

2.3 Expenditure (continued)

Expenditure is charged inclusive of any irrecoverable taxation. A proportion of costs are paid to partner organisations who perform defined scopes of work on behalf of IWPR.

Support costs which include headquarters’ and office functions such as general management, payroll administration, budgeting and accounting, human resources, information technology and legal compliance are allocated across categories of charitable activities and governance costs

2.4 Pensions

The Charity operates a defined contribution pension scheme. Contributions are charged to the Statement of Financial Activities on an accruals basis.

2.5 Other employee benefits

Short-term benefits including holiday pay are recognised as an expense in the period in which the service is received.

Employee termination benefits are accounted for on an accruals basis.

2.6 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 estimated residual value, over their expected useful lives as follows:

Fixtures and fittings - 3 years
Computers - 3 years

Gains and losses on disposals are determined by comparing the proceeds, less the direct costs of sale, with the carrying amount, and are recognised in the Statement of Financial Activities.

2.7 Operating leases

Rentals applicable to operating leases, where substantially all of the benefits and risks of ownership remain with the lessor, are charged to the Statement of Financial Activities as incurred.

2.8 Foreign currency

Assets and liabilities denominated in foreign currency are translated into sterling at the rate ruling on the balance sheet date. Transactions denominated in foreign currencies are translated into sterling at the average rate of exchange for the period. Profits or loss arising from the translation of foreign currencies are dealt with in the Statement of Financial Activities.

2.9 Financial instruments

Basic financial assets, including trade and other debtors, and cash and bank balances are initially recognised at transaction price and subsequently measured at their settlement value. A specific provision is raised for any debt where recoverability is in doubt.

Investments, excluding investments in subsidiaries, are carried at market value.

15

THE INSTITUTE FOR WAR AND PEACE REPORTING

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

2.9 Financial instruments (continued)

b) Financial liabilities

Basic financial liabilities, including trade and other creditors, and bank loans are initially recognised at transaction price.

Trade and other short-term creditors are measured at transaction price.

2.10 Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discounts offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.11 Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

2.12 Employee benefits

Short term benefits , including holiday pay, are recognised as an expense in the period in which the service is received.

Employee termination benefits are accounted for on an accruals basis and in line with FRS102.

3. JUDGEMENT IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Estimations and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are based on management’s best knowledge of the amounts, events or actions, actual results may ultimately differ from those expectations. Management consider there to be no critical estimates and judgements applicable to the financial statements.

4. INCOME FROM CHARITABLE ACTIVITIES

4.
INCOME FROM CHARITABLE ACTIVITIES
Foreign, Commonwealth & Development
Office
Royal Ministry of Foreign Affairs Norway
Foreign Office of Federal Republic of
Germany
WellspringPhilanthropic Fund
European Union
Other		 Unrestricted
Restricted
Total
Total
funds
funds
funds
funds
2021
2021
2021
2020
£
£
£
£
-
1,086,759
1,086,759
2,039,032
-
986,139
986,139
879,383
-
170,624
170,624
-
-
75,941
75,941
375,138
-
106,662
106,662
-
-
924,401
924,401
916,036
-
3,350,526
3,350,526
4,209,589

16

THE INSTITUTE FOR WAR AND PEACE REPORTING

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

4. INCOME FROM CHARITABLE ACTIVITIES continued

Foreign, Commonwealth & Development
Office
Royal Ministry of Foreign Affairs Norway
Dutch Post Code Lottery
Ministry of Foreign Affairs Netherlands
European Union
Other		 Unrestricted
Restricted
Total funds
Total funds
Funds
funds
2020
2020
2020
2019
£
£
£
£
-
2,039,032
2,039,032
2,031,024
-
879,383
879,383
928,823
-
-
-
292,816
-
-
-
173,048
-
375,138
375,138
40,082
-
916,036
916,036
644,057
-
4,209,589
4,209,589
4,109,850

5. TRADING ACTIVITIES OF SUBSIDIARY

The Charity wholly owned subsidiary, IWPR (UK) Limited, engages in activities that further the mission and objects of the Charity. IWPR (UK) Limited’s income from trading activities was £ 635,589 in 2021 (2020: £692,437) all of which was receivable from the Foreign, Commonwealth & Development Office. The trading results of IWPR (UK) Limited are set out in Note 9 below.

6. NET MOVEMENT IN FUNDS

2021 2020
£ £
Net movement in funds is stated after charging:
Depreciation - 789
Auditors remuneration - audit (excluding VAT) 24,500 23,350
Donor audits and other work (excluding VAT) 16,662 21,990

17

THE INSTITUTE FOR WAR AND PEACE REPORTING

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

7. STAFF COSTS

London staff costs:

Salaries
Social security costs
Pension costs		 2021
£
1,277,674
152,051
48,170
1,477,895		 2020
£
1,128,316
134,544
41,833
1,304,693

No redundancy costs were incurred in 2021 (2020: £0).

In addition to the London staff, the activities of IWPR UK are carried out by local staff and consultants in the field offices. These staff and consultants work on shared programmes managed by IWPR and IWPR US. In total IWPR’s contribution towards these costs were £478,527.

The average monthly number of employees, analysed by function was:

Media development, training and reporting
Support		 2021
13
6
19		 2020
11
6
17

The number of employees whose emoluments amounted to over £60,000 in the year was:

£130,000-£140,000
£90,000 - £100,000
£80,000 - £90,000
£70,000 - £80,000
£60,000 - £70,000		 2021
1
1
2
4
1
9		 2020
1
1
1
3
2
8

The total employee benefits of the key management personnel of the UK Charity and the group were £562,761 (2020: £523,618).

Trustees received no remuneration or other benefits for volunteering their time during the year and no trustee expenses were incurred (2020: £0).

18

THE INSTITUTE FOR WAR AND PEACE REPORTING

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

8. TOTAL EXPENDITURE

Raising funds costs
Charitable activities:
Media development,
training and reporting
Trading activities
Support costs
Staff costs
Staff overheads
Depreciation
Governance: Audit fees
Other		 2021 Total
Costs
£
49,489
3,717,706
572,106
4,339,301
2021
£
215,368
38,386
0
24,500
228,440
506,694		 2020
Direct
Costs
£
-
3,263,362
569,245
3,832,607		 Support
Costs
£
49,489
454,344
2,861
506,694		 Total
costs
£
47,471
4,295,935
604,119
4,947,525
2020
£
193,413
28,912
789
23,350
161,479
407,943

Support costs incurred by the overseas entities to support their charitable expenditure are included within direct programme costs. Other indirect costs are first allocated to activities that cause or drive them and, where this is not possible, they are apportioned based on a fair and equitable basis.

19

THE INSTITUTE FOR WAR AND PEACE REPORTING

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

8. TOTAL EXPENDITURE continued

----- Start of picture text -----
2020
----- End of picture text -----
Support costs
Staff costs
Staff overheads
Depreciation
Governance: Audit fees
Other
Raising funds costs
Charitable activities:
Media development,
training and reporting
Trading activities		 Direct costs
£
-
3,938,483
601,099
4,539,582		 Support
Costs
£
47,471
357,452
3,020
407,943		 Total
Costs
£
47,471
4,295,935
604,119
4,947,525
2020
£
193,413
28,912
789
23,350
161,479
407,943

20

THE INSTITUTE FOR WAR AND PEACE REPORTING

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

9. INVESTMENTS

The Institute for War and Peace Reporting owns the entire called up and paid share capital of IWPR (UK) Limited of £2, a trading company registered in England Wales, Company Registration Number 10700261, Registered office address 48 Gray’s Inn Road, London, WC1X 8LT, which was incorporated on 30 March 2017.

A summarised income statement and balance sheet for IWPR (UK)

are set out below.

IWPR (UK) limited: Summarised Income statement

Income
Expenditure
Gross profit
Administrative
expenses		 2021
£
635,589
(569,245)
66,344
(2,861)
63,483		 2020
£
692,437
(601,099)
91,338
(3,020)
88,318

All taxable profits are gifted to the Charity within nine months of the subsidiary’s year end.

IWPR (UK) Limited: Balance sheet

Debtors
Cash
Creditors
Net current assets and net assets
Share capital
Reserves		 2021
£
186,090
303,740
(426,345)
63,485
2
63,483
63,485		 2020
£
134,822
280,610
(327,112)
88,320
2
88,318
88,320

21

THE INSTITUTE FOR WAR AND PEACE REPORTING

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

10. DEBTORS

Inter-charity
debtors
Due from
subsidiary
Grants receivables
Staff advances
Prepayments
Other debtors		 Group 2020
£
86,478
-
285,430
1,307
44,592
270
418,077		 Charity Charity
2021
£
551,530
-
197,456
995
18,418
-
768,399		 2021
£
551,530
269,856
12,445
995
17,339
-
852,165		 2020
£
86,478
216,251
152,180
1,307
43,289
-
499,505

22

THE INSTITUTE FOR WAR AND PEACE REPORTING

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

11. CREDITORS: Amounts falling due within one year

Deferred income
Trade creditors
PAYE and other
taxes
Due to IWPR US
Other creditors
Accruals		 Group
2021
2020
£
£
640,504
610,325
62,631
26,584
44,088
42,459
141,705
62,522
39,425
46,619
131,217
137,372
1,059,570
925,881		 Charity Charity
2021
£
640,504
62,631
44,088
141,705
39,425
131,217
1,059,570		 2021
£
640,504
62,631
44,088
-
27,061
128,797
903,081		 2020
£
610,325
24,964
42,459
-
8,940
128,331
815,019

Deferred income

Deferred income
At 1 January
Amount released in
year
Amount deferred in
year
At 31 December		 Group 2020
£
1,124,065
(1,124,065)
610,325
610,325		 Charity
2021
£
610,325
(610,325)
640,504
640,504		 2021
£
610,325
(610,325)
640,504
640,504		 2020
£
1,076,277
(1,076,277)
610,325
610,325

Deferred income represents cash received from donors prior to being earned under our income recognition policy.

23

THE INSTITUTE FOR WAR AND PEACE REPORTING

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

12. RESTRICTED FUNDS: MOVEMENT IN YEAR

As at 1
January
2021
£
Unrestricted funds
General funds
1,301,513
Total
unrestricted
funds
1,301,513
Restricted funds
Central Asia, Caucasus &
Ukraine
-
MENA
-
Other regions
-
At 31
December 2021
-
TOTAL FUNDS
1,301,513		 Income
£
665,684
665,684
1,242,247
912,762
1,195,517
3,350,526
4,016,210		 Expenditure
£
(825,699)
(825,699)
(1,239,895)
(1,026,428)
(1,247,279)
(3,513,602)
(4,339,301)		 Transfer
Between funds
£
(163,076)
(163,076)
(2,352)
113,666
51,762
163,076
-		 As at 31
December
2021
£
978,422
978,422
-
-
-
-
978,422

Project operational information and activities details contributing to unrestricted funds are described in the Programme Results section of the Trustees’ Report.

Transfers between funds arise on completion of projects where:

funds received from the donor have been insufficient to cover the full costs of the programme, including foreign exchange losses, or

24

THE INSTITUTE FOR WAR AND PEACE REPORTING

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

12 RESTRICTED FUNDS - continued

As at 1
January
2020
£
Unrestricted funds
General funds
1,286,671
Total unrestricted
funds
1,286,671
Restricted funds
Central Asia, Caucasus &
Ukraine
-
MENA
-
Other regions
-
At 31 December
2021
-
TOTAL FUNDS
1,286,671		 Income
£
752,778
752,778
1,414,098
1,879,455
916,036
4,209,589
4,962,367		 Expenditure
£
(714,103)
(714,103)
(1,413,745)
(1,902,560)
(917,117)
(4,233,422)
(4,947,525)		 Transfer
Between
funds
£
(23,833)
(23,833)
(353)
23,105
1,081
23,833
-		 As at 31
December
2020
£
1,301,513
1,301,513
-
-
-
-
1,301,513

25

THE INSTITUTE FOR WAR AND PEACE REPORTING

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

13. ANALYSIS OF NET ASSETS BETWEEN FUNDS

GROUP
Restricted funds
General funds
At 31 DECEMBER 2021
CHARITY
Restricted funds
General funds
At 31 DECEMBER 2021		 Fixed assets
£
-
-
-
Fixed assets
£
-
2
2		 Net current
assets/(liabilities)
£
-
978,422
978,422
Net current
assets/(liabilities)
£
-
914,939
914,939		 Fund balances
£
-
978,422
978,422
Fund balances
£
-
914,941
914,941

26

THE INSTITUTE FOR WAR AND PEACE REPORTING

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

13 ANALYSIS OF NET ASSETS BETWEEN FUNDS - continued

GROUP
Restricted funds
General funds
At 31 DECEMBER 2020
CHARITY
Restricted funds
General funds
At 31 DECEMBER 2020		 Fixed assets
£
-
-
-
Fixed assets
£
-
2
2		 Net current
assets/(liabilities)
£
-
1,301,513
1,301,513
Net current
assets/(liabilities)
£
-
1,213,193
1,213,193		 Fund balances
£
-
1,301,513
1,301,513
Fund balances
£
-
1,213,195
1,213,195

14 OPERATING LEASES

The Group rented its London offices under a 5 year operating lease that expired in February 2022. The lease was renewed under a new 5 year operating agreement commencing on 24 February 2022, with a break clause in February 2025.

2021 2020
£ £
Minimum lease payments under operating lease
recognised as an expense during the year 49,230 49,230

At 31 December 2021, the Charity had outstanding commitments under non-cancellable operating leases as follows:

Payable within one year
Payable between two and five years inclusive
At 31 December		 2021
£
37,746
77,543
115,289		 2020
£
49,230
7,283
56,513

27

THE INSTITUTE FOR WAR AND PEACE REPORTING

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

15 TAXATION

The Institute for War and Peace Reporting is a Registered Charity and therefore is not liable to income tax or corporation tax on income or gains derived from its charitable activities, as they fall within various exemptions available to registered charities. The Charity’s subsidiary, IWPR (UK) Limited, gifts its profits to the Charity each year.

16 RELATED PARTY TRANSACTIONS

The Institute for War and Peace Reporting (IWPR UK), The Institute for War and Peace Reporting US (IWPR US) and The Institute for War and Peace Reporting NL (IWPR NL) work jointly under the IWPR International Network agreement.

During the year, IWPR US granted £872,121 to IWPR UK to cover costs incurred by IWPR UK in the execution of projects signed by IWPR US (2020: £813,211). In addition, IWPR US incurred costs of £512,844 (2020: £695,117) in the execution of projects signed by IWPR UK.

As at 31 December 2021 there was an inter-charity debtor owing by IWPR US of £522,203 (2020: £66,883) and an inter-charity creditor owing to IWPR US of £141,705 (2020: £62,522). The inter-charity debtor owing by IWPR NL as at 31 December 2021 was £29,321 (2020: £19,595).

David Bell is a trustee of IWPR UK, IWPR US and IWPR NL. Simon Hersom is a trustee of both IWPR UK and IWPR NL. Stephen Jukes and Richard Caplan are trustees of both IWPR UK and IWPR US (Richard Caplan resigned as a trustee of IWPR UK in June 2021).

17 ANALYSIS OF CHANGES IN NET DEBT

Cash at bank and in hand

At 1 January Cashflows Non-cash
changes		 At 31
December
2021 2021
£ £ £ £
1,809,317 (539,724) - 1,269,593
1,809,317 (539,724) - 1,269,593

18 POST BALANCE SHEET EVENTS

There have been no post balance sheet events that would impact on the Financial Statements for the year ended 31 December 2021.

28