## N A B S
(A charitable company limited by guarantee)
## REPORT AND FINANCIAL STATEMENTS
Year ended 31 December 2022
Charity No. 1070556 Company Registration No. 03588945
## N A B S (A charitable company limited by guarantee) CONTENTS
||Page|
|---|---|
|Company Information|1|
|Trustees’ Report|2 – 10|
|Statement of Trustees’ Responsibilities|11|
|Independent Auditor’s Report|12 - 14|
|Consolidated Statement of Financial Activities|15|
|Balance Sheets – Consolidated and Charity|16|
|Consolidated Cash Flow Statement|17|
|Accounting Policies|18 – 21|
|Notes to the Financial Statements|22 – 33|
N A B S (A charitable company limited by guarantee) COMPANY INFORMATION
## **TRUSTEES AND ADVISERS**
S Daglish (Chair) P Hughes J Salinson K Fowler A Cook J Healy D Carter
H Nicklin N Patel M Bush N Pertwee (formerly Jasinski) J Peppiatt K Smith (Treasurer)
COMPANY SECRETARY B Lawson
REGISTERED OFFICE 10 Hills Place London W1F 7SD
INDEPENDENT AUDITOR RSM UK Audit LLP 25 Farringdon Street London EC4A 4AB
BANKERS The Royal Bank of Scotland 36 Andrew Square Edinburgh EH2 2YB
SOLICITORS Womble Bond Dickinson 4 More London Riverside London SE1 2AU
INVESTMENT MANAGERS Pocock Rutherford & Co 111-113 High Street Berkhamsted Hertfordshire HP4 2JF
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N A B S (A charitable company limited by guarantee) TRUSTEES’ REPORT
## **REFERENCE AND ADMINISTRATIVE INFORMATION**
The Trustees (who are also company directors for the purposes of company law) are pleased to present their Report and Accounts for NABS for the year ended 31 December 2022.
The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and 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 (FRS 102) (effective 1 October 2019).
NABS is registered with the Charity Commission under registration number 1070556 and with Companies House under registration number 03588945. NABS operates across the United Kingdom. Details of NABS’ trustees and senior staff who served during the year and since the year end are set out below.
## **Trustees and members of Executive Committee**
K Fowler* K Smith* Treasurer J Salinson* Trustee, Support Services P Hughes S Daglish Chairman N Patel* M Bush A Cook H Nicklin N Pertwee (formerly Jasinski) J Peppiatt J Healy D Carter
## **Senior Staff**
D Tickell* Chief Executive (to 29[th] April 2022) S Todd* Chief Executive (from 21[st] April 2022)
* All Trustees and senior staff noted with asterisks are also members of the Finance and Governance Committees.
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N A B S (A charitable company limited by guarantee) TRUSTEES’ REPORT
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
NABS was founded in 1913. NABS is a charitable company limited by guarantee incorporated on 26 June 1998 in England and Wales. The charity was established under a memorandum of association which established the objects and powers of the charitable company. NABS has a wholly owned trading subsidiary, NABS Trading Limited incorporated in England and Wales whose principal activity is the running of fundraising events. Part of the surpluses generated by NABS Trading Limited are distributed to NABS under the Articles of Association. NABS is governed by its Executive Committee which consists of elected Trustees and key senior management of NABS appointed as prescribed by the Articles of Association. Executive Committee meetings are held typically 4 times a year. They are used to review performance over the current year and agree key objectives for the next and longer term depending on the strategic planning cycle. Presentations and discussions in each meeting keep the Trustees informed about the work of NABS and all latest developments.
Responsibility for reviewing key areas of activity and policy are delegated to sub-committees that report back to the Executive Committee. The sub-committees monitor and scrutinise the work of NABS. The day-to-day running of NABS and NABS Trading Limited and the exercise of executive responsibility is delegated to the Chief Executive (CEO).
The current sub-committees are:
- Finance Committee (including investments, pensions, audit and remuneration) – maintains an overview of the financial strategy, performance and operations of NABS to ensure effective oversight of NABS’ resources. The Committee reviews and appraises the management of NABS’ investments with quarterly presentations from the investment fund managers. The committee periodically reviews NABS Support Grants.
- Governance Committee – ensures NABS is complying with all its legal obligations, has comprehensive policies in place, monitors risk and commendations and complaints.
## **Third party indemnity provision for Directors**
Qualifying third party indemnity provision is in place for the benefit of all directors of the company.
## **Trustee Recruitment, Induction and Training**
Trustees are sought primarily by way of exploration of the field of potential suitable candidates through discussion by existing Trustees, other members of the Executive Committee and external recruitment advisors to ensure appropriate representation across NABS Beneficiary audiences and increase diversity.
Following the directives laid down by the Governance Committee, new Trustees have a comprehensive induction, receive a role description and briefing on the Charity Commission’s _“The Essential Trustee: what you need to know, what you need to do”._ Alongside the Trustee Inductions, Trustees also receive periodic raining, of which the last session took place on 21[st] September 2022, carried out by Womble Bond Dickinson. Governance has been further reviewed against the latest Charity Governance Code and an action plan drawn up that focuses on regular review and constant improvement is in action. Trustees are appointed by the Executive Committee of the Charity.
## **Management**
The shape of the permanent team is structured within four core teams:
- Culture Change and Wellbeing Services
- Fundraising
- Strategy and Development
- Corporate Services
In September 2022 the core departments were restructured to reflect business needs as follows –
- Culture Change and Wellbeing Services
- Commercial and Strategy
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N A B S (A charitable company limited by guarantee) TRUSTEES’ REPORT
- Transformation
- Corporate Services
Each team is led by a Director who reports directly into the CEO.
NABS’ Articles of Association set out the ability of the Trustees to delegate their authority to the CEO and other groups and committees as required. The terms of references for committees and delegated authorities were all reviewed and thoroughly updated during 2020.
The CEO reports to the Executive Committee. Specifically, the objectives of the CEO are set and monitored by the Finance Committee. The Finance Committee recommends the pay and remuneration for the CEO and other key management personnel to the Executive Committee using industry (advertising and media) and charity benchmarks and reviews and monitors the pay of the senior leadership team and other personnel through detailed budget reviews.
The CEO and management are in turn supported by operational sub-committees focusing on Finance which typically meets monthly, and a quarterly Governance Committee as noted above.
## **Fundraising**
NABS is the benevolent society for the advertising, marketing and media industry and is funded primarily by industry organisations who provide the charity with voluntary, annual donations. Alongside corporate fundraising NABS runs a calendar of fundraising events and also receives donations from individuals and 3[rd] party and community fundraising events and raffles.
We do not approach the general public for donations and currently do not use professional partners or commercial fundraisers. We have not received any complaints regarding our fundraising (2021: none). We do not ask for donations from vulnerable people and should we receive an unsolicited donation that we would consider unusual from a beneficiary we have processes in place to assure us of their mental capacity in which to make any such donation.
## **STRATEGIC REPORT, OBJECTIVES AND ACTIVITIES**
NABS is the support organisation for the advertising, marketing and media industry.
NABS’ vision is to see a UK advertising and media industry which truly believes and demonstrates that vital to success is the wellbeing of its people. NABS’ purpose is to improve and champion the wellbeing of everyone in advertising and media, to help them succeed and thrive.
2022 has been another challenging year for NABS and the advertising industry at large as the recovery from Covid-19 and the financial losses NABS experienced continue to impact its financial recovery plans.
The Covid-19 pandemic, the war in Ukraine and resulting food and energy crises, surging inflation, debt tightening, as well as the climate emergency all further impacted NABS’ income as well as demand on its services in 2022.
NABS finished the year with a £1,080k deficit position, together with a £585k net loss on investments resulting in a total decrease in NABS reserves of £1,666k, against a backdrop of increased year on year service demand of 35%.
NABS has increased expenditure in 2022 on marketing and fundraising activities in order to stimulate income growth in 2023 and future years, in order to try and address the increased deficit the organisation has faced in 2022.
Emotional support was the number one reason for calling NABS in 2022, with 66% of all emotional support callers citing poor mental health, up 31% on 2021.
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N A B S (A charitable company limited by guarantee) TRUSTEES’ REPORT
37% of NABS total calls, were related to financial support with the launch of NABS’ Cost of Living Grant in direct response to rising living costs and growing financial anxiety, job losses and increased redundancies across the sector.
The Trustees and the Management Team continued to work closely together in 2022 to ensure that NABS could respond to everyone who needed us, ensuring greater accessibility of our service provision to provide wellbeing and mental health support to individuals in a particularly challenging year, to help everyone thrive in their industry careers, at whatever life stage.
## **NABS Aims**
The Trustees refined and revised NABS’ overarching aims in 2022, building on the aims laid out in 2021 as follows -
1. To improve the take up of NABS services providing a relevant and accessible offer
2. To transform NABS operating model for long term financial sustainability
3. To influence positive change for greater levels of wellbeing for all
- NABS strategic approach to deliver theses aims has continued to be cemented in 3 main guiding principles-
- Putting wellbeing first – providing first rate services to the industry and ensuring that we continue to prove the case for wellbeing and its benefit on the business bottom line.
- Working together for change with our industry community, and recognising that we are stronger together and as a collective we can effect real and lasting change and draw on the expertise of our strategic partnerships.
- Providing the industry with expertise driven by insights. With access to unique data and insights NABS has many proof points that sit at the heart of its service development and influencing ability.
## **NABS’ Activities**
NABS’ principal activities during 2022 to meet the needs of our audience and deliver public benefit were:
- Providing a confidential Advice Line service, offering industry individuals expert support and guidance across a range of issues from emotional and financial support, to mental health, anxiety, physical ill health, bereavement and maternity to name a few.
- Providing a SupportBot online advice service to signpost and support those needing advice across a range of issues from stress management to redundancy.
- Providing an online careers coaching service supporting people across a range of circumstances such as job loss, low confidence and career crossroads.
- Providing a range of therapeutic services to offer deeper support across a broad range of issues such as low confidence, anxiety, depression, trauma, post-traumatic stress disorder and personality disorders, amongst others.
- Hosting digital advice and downloadable guides on the NABS Knowledge Hub to help individuals deal with a full range of emotional wellbeing issues across both personal and professional areas.
- Providing career masterclasses across a range of areas including DE&I, Confidence and Gravitas, Resilience and Working Parents.
- Running a series of NABS Talks bringing the industry community together to inspire and motivate them across a range of key issues including DE&I and mental health.
- Campaigning to end sexual harassment within the industry, in partnership with industry bodies to support and influence a safer environment for all.
- Running NABS’ commercial training offer, via the NABS Trading company, including timeTo training and a suite of products under the NABS Training offer. All profits go back to NABS Charity creating an additional income stream and engagement tool.
- Promoting NABS work to our donors, supporter and new sector contacts through 1:1 meetings and staff presentations to ensure awareness of NABS is high, to encourage more people to reach out for our tailored support.
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N A B S (A charitable company limited by guarantee) TRUSTEES’ REPORT
- Collating feedback from users and industry contacts, alongside wider industry and organisational research sources to ensure our activity and products are continually contextualised and developed through relevant, industry insight.
## **Risk management**
The Governance Committee of the Charity updates and reviews the risk register at regular committee meetings and reviews and formulates risk mitigation plans which it then recommends to the Executive Committee. All areas of the Charity are covered by a comprehensive risk assessment. In 2022 we consider our principal risks to be:
- NABS’ ability to grow income from a larger pool of donors and new fundraising activity to support a more diversified income strategy.
- NABS’ ability to maximise and grow its media donation pledges and related conversions at higher rates.
- NABS’ ability to service demand through new and more efficient and cost-effective ways as the mental health crisis continues across the industry seeing demand for NABS services continue to grow in 2023.
- NABS’ ability to prove its value and increase its reputation to encourage continued financial support, engagement and service take up in a highly competitive wellbeing market place.
## **Achievements and Performance**
The following objectives, were updated and revised on the previous years objectives to measure performance and success in 2022, as follows –
## 2022 Objectives –
1. To strengthen the NABS brand positioning for increased levels of understanding, engagement, income and influence
2. To evolve the service offering for greater inclusivity
3. To model all NABS activity against updated ROI criteria for increased income and engagement
4. Strengthen NABS internal operations for optimal, new ways of working
5. To further build and nurture NABS’ internal culture and expertise so we can truly lead the industry, from the inside out.
## **During 2022 we achieved**
## **Service provision across the sector -**
- Over 6,000 individuals accessed NABS’ core services, benefiting from expert guidance, advice and support to improve their wellbeing and mental health and deal with the challenges around redundancy and job losses in our industry, representing a 49% increase in demand year on year.
- 4,485 individuals were supported across NABS dedicated Advice line and online advice services benefiting from tailored support and 24/7 information alongside downloadable information to support them at work.
- Calls to NABS’ Advice Line increased by 35% in 2022, with the top two reasons for contact being individuals needing emotional support (37%) and financial support (36%).
- Mental health issues continue to rise in our industry in 2022. Two thirds (66%) of all of emotional support calls received in 2022 were for support and guidance on mental health – a 31% increase year on year. Accordingly, NABS therapy referrals rose by 32%.
- In direct response to the rising cost of living crisis, together with worries about the geopolitical climate, the job market and increasing stress and conflict at work, NABS launched the Cost of Living Grant on 1 November 2022 to give eligible applicants a one-off payment of £1,000 to help with essential living costs. The top reason for requiring a NABS Cost of Living Grant in 2022 was for paying for utility bills, with other themes being needing help towards rent or mortgage and putting food on the table.
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N A B S (A charitable company limited by guarantee) TRUSTEES’ REPORT
- 64 financial grants were awarded in 2022. Our new Cost of Living Grant represented the third highest single issue for calling the Advice Line this year.
- Alongside the support grants we’ve offered 9 Upskilling Grants to support individuals with their ongoing training needs to help them progress in and out of work.
- Redundancy resurged as a notable topic for NABS service users in 2022 after a drop-off in this area during 2021. Against the backdrop of a cost-of-living crisis and looming recession, last year saw a staggering 1,432% increase in access to NABS’ online redundancy guides, offering advice on redundancy rights to thousands of people.
- 200 individuals were supported by NABS’ career coaching services, with reasons for contact including, low confidence, workload pressures, mental health and needing support managing and leading teams in pressurised and busy roles.
- Over 1,000 individuals have attended NABS’ online group coaching masterclasses this year for support building their resilience to pressure, building confidence and rapport and influencing in their roles at work and beyond.
- NABS interacted with over 16,500 individuals in total through its services, talks, events and community fundraisers - a total touchpoint rate up 13% on 2021.
- Due to the tough economic climate and the focus of the NABS team in 2022, we weren’t able to invest in creative brand campaign activity, with external agency support to widen NABS’ awareness to a greater extent.
- Feedback on NABS services in 2022 remained high, of those who completed feedback forms:
- 97% rated the Advice Line service as excellent.
- 99% would recommend others to our 1:1 coaching and workshops.
- 100% of Cost of Living Grant beneficiaries rated their experience as excellent.
- 100% would refer others to NABS for access to therapy.
## **Mental wellness engagement, awareness, influence and fundraising -**
- The NABS team were busy meeting people across the industry, up and down the country, reaching over 1,900 people in 2022, sharing NABS’ vision and explaining how we can help the industry community advance their mental wellness through staff presentations and 1:1 management meetings.
- NABS’ marketing focused in 2022 on product led campaigns to drive service priorities around grant provisions and mental health advice.
- A Diversity and Inclusion web page was launched to centre NABS’ inclusive offering and the internal DE&I working group terms of reference were revised for more internal clarity and direction.
- NABS continued to publish its quarterly service usage reports with recommendations for employees and employers alike to further prove our influence and change for good agenda beyond the direct NABS service users.
- More than 2,000 people across the industry came together to raise funds for the charity through its inperson events, ranging from its flagship gala event Stranger than Summer to sporting events and quizzes.
- 584 individuals attended NABS’ regional events in 2022 which included 5 community focused fundraisers including the Scottish Golf Day and the Manchester Fashion show, that boosted NABS income and engaged industry employees across the country.
- Alongside the NABS owned fundraising events, industry companies also came together to fundraise for NABS, including The Lead Agency’s Sea Change for Mental Health London to Brighton bike ride, which saw a huge 346% increase in participants.
- NABS Talks series offered a platform for marginalised individuals across the industry discussing topics such as mental health, racism, inclusion, allyship, and self-care.
- NABS appeared in over 118 PR pieces in 2022 ensuring NABS profile across mental health and wellbeing remained high and front of mind for our supporters, donors and service users.
## **Greater accessibility, inclusion and culture change -**
- 50% of all advice is now accessed online, via NABS digital provision which includes the SupportBot and redundancy guides in 2022.
- Visits to NABS SupportBot surged this year by 74%, providing round-the-clock advice and guidance to over 500 people across our community.
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## N A B S (A charitable company limited by guarantee) TRUSTEES’ REPORT
- NABS Knowledge Hub continued to provide a dedicated home for digital advice and has supported individuals across many experiences such as redundancy, anxiety, stress and work pressure.
- Off the back of a detailed research project carried out in 2021, in 2022 NABS launched its Diversity in Focus activity in partnership with Brixton Finishing School, MEFA and Outvertising, sharing stories from marginalised communities across adland. NABS held a panel at Advertising Week Europe to further publicise and raise awareness of the needs of marginalised individuals and developed an Inclusive Leader training programme, to help address the five key challenges unearthed in the research. NABS’ masterclasses were also updated in 2022 to be more inclusive with the help of specialist diversity training advisors BELOVD.
- Through NABS’ expert facilitation of timeTo Training, over 2,800 people were trained in 2022 – an increased reach of 112% - thanks to a newly developed range of training delivery methods at scale, helping reach and educate more people around the impact of sexual harassment.
- DE&I data capture was introduced in 2022 starting with grant applicants and being rolled out more widely across NABS services throughout 2022.
## **ROI, Internal operations and ways of working**
- In 2022 NABS focused harder on ROI modelling across all of its key activity accessing income and engagement against internal staff costs to ensure all new activity decisions were more informed. Alongside ROI modelling NABS introduced a business case template set against this ROI criteria to further formalise decision making processes.
- NABS 5 and 10 year financial modelling, introduced in recent years, continued to be developed on new data in 2022 to ensure regular updates for trustees and leadership around reserve levels and budget decisions in the longer term.
- NABS operations meetings were revised and improved bringing internal teams closer together across a strategic review format and digital laydown.
- NABS internal ways of working are viewed as having advanced in 2022 but with recognition that continual and deeper work is needed to identify optimum ways of working post Covid and this will continue to be a priority in 2023 and beyond.
- The NABS Advice Line phone system seeing its approach to call handling was updated and improved. This phone automation project was successfully rolled out in 2022 and is already seeing service level improvements and more professionalism across the waiting and data system.
- The SupportBot launched in 2021 was updated in 2022 to include the integration of the redundancy tool, housing all NABS 24/7 support in one place.
## **New leadership structure and ways of working -**
- In April 2022, NABS appointed a new CEO, Sue Todd to lead NABS, with a brief to revolutionise NABS focusing on growing and diversifying income alongside raising NABS’ profile.
- 2022 also saw a leadership restructure, notably creating a new Commercial Director role aligning strategy, income, data and engagement to ensure a more coordinated sales and marketing effort for the charity.
- NABS’ CRM strategy was developed and data cleansing and collation work got underway in Q4 2022 to underpin the roll out of a phased CRM plan in 2023 that will see deeper levels of engagement and tailored communications to drive engagement and income.
- NABS’ fundraising strategy in 2022 focused on key areas of media donations, with a deeper focus on media agency relationships and processes to ensure higher conversion rates on donor pledges could be achieved.
- NABS quarterly away days launched in 2022 to enhance cross department team work and knowledge sharing across departments.
## **PLANS FOR FUTURE PERIODS**
In Q4 2022 the NABS leadership team and board of trustees set out a 3 year plan to eradicate the annual deficit by the end of 2025, following significant income losses due to the slow Covid-19 recovery. It is essential that
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N A B S (A charitable company limited by guarantee) TRUSTEES’ REPORT
NABS increases its income in 2023 and beyond to reach a financially sustainable balance between fundraising income, expenditure and service provision.
The following areas are considered of critical importance over the coming years –
- Returning the organisation to break-even, surplus position by end of 2025 by diversifying and growing revenue and reducing overheads.
- NABS’ ability to demonstrate its value effectively (in a highly competitive wellbeing market) through a clear and defined single minded proposition.
- NABS’ ability to secure media donation pledges earlier in the year and convert pledges at higher rates to maximise income potential and cash flow.
- NABS’ ability to prove the value of building community for greater industry collaboration and wellbeing benefit for all, alongside driving much needed new, community income streams.
- To strengthen NABS reputation as the first place to go to in the industry for expert mental health support.
- • To shift further again in 2023 from the historic 1:1 service delivery model to more ‘1 to many’ provisions for greater market penetration.
- To increase commercial training opportunities through a wider product offer and a more dedicated sales approach to grow income.
NABS is committed to using its pivotal role within the UK advertising, marketing and media industry to continue to help even more people to thrive, ensuring that mental health and putting people first is high on organisations’ agendas at a tough time for the industry and the country at large.
By the end of 2023 NABS expects to be back up to the income levels of £3 million, to deliver on the detailed ambitions above.
## **FINANCIAL REVIEW**
The principal funding sources of the organisation are voluntary income and donations (£1.85m (2021: £2m)) and charitable trading activities (£0.6m (2021: £0.5m)). The consolidated results for the end of the year produced income of £2.5m (2021: £2.5m), against expenditure of £3.6m (2021: £3.2m). NABS Trading Limited, a wholly owned subsidiary of the Charity, is responsible for the organisation of the annual Stranger than Summer Charity Ball, Fast Forward training programme, timeTo training and the new NABS Training and earned a profit before taxation of £197,700 (2021: £170,507) and distributed £195,118 to NABS (2021: £167,756). The operating deficit of the consolidated accounts (including unrealised loss from investment assets of £585,428) was £1,665,570 (2021: £351,524 deficit). The year end net assets were £3.6m (2021: £5.3m).
## **GRANT MAKING POLICY**
It is NABS’ aim, through the provision of financial assistance combined with practical support, to help improve and champion the wellbeing of those in our industry, put its beneficiaries in a better position for the future, allow its beneficiaries to take charge of their lives and enable its beneficiaries to live independently.
Applications for financial support are made by completing an application form and by providing supporting information. These are reviewed to assess the applicant’s career history and financial circumstances against NABS’ eligibility criteria. Those applicants who meet the criteria are agreed by the Support Team within their delegated amounts or referred up (to the Director, CEO or Trustee) as required.
The Finance Committee receive an overview of NABS grants on a monthly basis.
## **INVESTMENT POLICY AND PERFORMANCE**
The Finance Committee manages the Charity’s investments together with an appointed professional advisor on behalf of the Charity. The application of the investment assets is reviewed regularly with a desire to achieve improved investment performance without exposing the charity’s assets to unreasonable investment risks. In accordance with the investment policy, investments are held in a discretionary managed portfolio.
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N A B S (A charitable company limited by guarantee) TRUSTEES’ REPORT
The NABS listed portfolio has decreased from £3,633,115 to £2,547,517 during the year which included a drawdown of £514,150 to aid cashflow. The markets have continued to be volatile in 2022 due to many economic factors with a decrease of £571,448 (18.32%) in value shown at the year-end. No targets were set for 2022 nor have been for the year ahead but a regular update on cashflow is key to pinpoint if further drawdown is needed to aid cashflow.
## **RESERVES POLICY**
Consideration for the reserves strategy is normally made in three ways:
- Working Capital
- Medium term reserves - unforeseen circumstances
- Long term reserves - aligned with our strategic objectives
Based on the risks to income as set out in this report and accounts, reserves are held in case of any sudden decline in income and to ensure that commitments to providing services for financial support and grants to beneficiaries can be made with some confidence whilst ensuring reserves are not held at unnecessarily high levels. As at 31 December 2022, the Group’s free reserves (excluding restricted and designated funds, and tangible fixed assets) amounted to £3.1m (2021: £4.7m). With estimated annual net expenditure of £3.2 million per the 2023 Q1 reforecast budget, this means 11.9 months forward unrestricted expenditure would be covered at the year-end.
The focus continues to be on a sustainable future through technology and innovation to expand NABS’ reach and bringing cultural change focusing on diversity and inclusion. Due to Covid-19 the Trustees reviewed the reserves policy in 2021. Based on the severity of a significant medium-term loss like the one experienced due to Covid19, the Trustees have agreed a policy of between 6 to 11 months as their longer term goal to enable NABS’ Reimagination programme to continue and protect from further income shock.
The designated reserves are currently for the use of benefitting NABS’ beneficiaries living at Peterhouse upon request with no current time limit on their use. Two of the three restricted reserves are donations made and spent annually with any balance carried forward to the next year. The David Pilton award is a one-off donation that has been reducing gradually each year, currently being used to support NABS’ Ambassador Programme.
## **PUBLIC BENEFIT**
The Trustees have complied with their duty to have due regard to the guidance on Public Benefit published by The Charity Commission in exercising their power or duties. NABS’ ‘public’ is anyone who has spent a large proportion of their career working in the marketing services industry (“the Industry”) and suppliers whose businesses specialise in providing services to the Industry and any persons who have or have at any time been dependent upon any person engaged in the Industry. The ‘benefit’ offered to this community includes the provision of crisis grants, advice, support, career coaching, promotion of physical and mental health and wellbeing, the advancement of education in the marketing, advertising and creative industries and high professional standards and the promotion of equality and diversity in the Industry.
## **AUDITOR**
RSM UK Audit LLP has indicated its willingness to continue in office.
Approved by the board of trustees on 19 July 2023 and signed on its behalf by
Karla Smith Trustee
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N A B S (A charitable company limited by guarantee) STATEMENT OF TRUSTEES’ RESPONSIBILITIES
## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES**
The Trustees (who are also directors of NABS for the purposes of company law) are responsible for preparing the Trustees' Annual Report (incorporating the Directors’ Report) and the financial statements in accordance with 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).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- 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 financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The Trustees are 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **STATEMENT AS TO DISCLOSURE OF INFORMATION TO THE AUDITOR**
The Trustees (who are also directors for the purposes of company law) in office on the date of this report have confirmed, as far as they are aware, that there is no relevant audit information of which the auditor is unaware. Each of the Trustees has confirmed that they have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.
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## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF NABS**
## **Opinion**
We have audited the financial statements of NABS (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 December 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Company Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:
- give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 December 2022 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.
## **Basis for opinion**
We have been appointed auditors under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts.
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 and parent charitable company 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 or parent charitable company’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 other information comprises the information included in the Trustees’ Report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within 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.
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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
_Page_ 12
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees’ Report, which includes the Directors’ Report and the Strategic Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Directors’ Report and the Strategic Report included within the Trustees’ Report have been prepared in accordance with applicable legal requirements.
## **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 their environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report or the Strategic Report included within the Trustees’ Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Act 2011 require us to report to you if, in our opinion:
- adequate and sufficient accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the Statement of Trustees’ responsibilities 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 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 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.
**The extent to which the audit was considered capable of detecting irregularities, including fraud** Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.
In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.
_Page_ 13
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the group audit engagement team:
- obtained an understanding of the nature of the sector, including the legal and regulatory frameworks that the group and parent charitable company operate in and how the group and parent charitable company are complying with the legal and regulatory frameworks;
- inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
- discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.
As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, Charities Act 2011, the parent charitable company’s governing document, and tax legislation. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report, and remaining alert to any new or unusual transactions which may not be in accordance with the governing documents.
The group audit engagement team identified the risk of management override of controls and as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to any significant, unusual transactions and transactions entered into outside the normal course of business and challenging judgments and estimates.
A further description of our responsibilities for the audit of the financial statements is provided on the Financial Reporting Council’s website at http://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.
NICHOLAS SLADDEN (Senior Statutory Auditor) For and on behalf of RSM UK AUDIT LLP, Statutory Auditor Chartered Accountants 25 Farringdon Street London EC4A 4AB Date 27 July 2023
RSM UK Audit LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
_Page_ 14
N A B S (A charitable company limited by guarantee) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (including the Income and Expenditure Account) For the year ended 31 December 2022
|Notes
Unrestricted
Funds
2022
£
Restricted
Funds
2022
£
**Income from:**
Donations and legacies
1
1,784,019
62,500
Other trading activities
1
634,607
-
Investments
1
18,909
-
_
**Total income**
**2,437,535**
**62,500**
________
_______
**Expenditure on:**
Raising funds
2
2,195,525
-
Charitable activities:
Grant making
3
185,582
74,239
Careers Counselling/Advice Line
3
1,124,831
-
_________
_________
**Total expenditure**
**3,505,938**
**74,239**
Net (loss)/gain on investments
9
(585,428)
-
________
_________
Net expenditure
7
(1,653,831)
(11,739)
_________
_________
Net movement in funds
(1,653,831)
(11,739)
Fund balances brought forward at 1 January
5,213,226
96,711
________
Fund balances carried forward at 31 December
14a
3,559,395
84,972
_
________|Total
Funds
2022
£
1,846,519
634,607
18,909
**2,500,035**
_________
_
2,195,525
259,821
1,124,831
_________
_
**3,580,177**
(585,428)
_________
_
(1,665,570)
_________
_
(1,665,570)
5,309,937
_________
3,644,367
_________|Total
Funds
2021
£
1,977,630
498,954
16,987
**2,493,571**
________
1,756,154
237,600
1,201,857
________
**3,195,611**
350,516
________
(351,524)
________
(351,524)
5,661,461
________
5,309,937
________|
|---|---|---|
_Page_ 15
## N A B S (A charitable company limited by guarantee) BALANCE SHEETS – CONSOLIDATED AND CHARITY
At 31 December 2022 Company Registration No: 03588945
___________________________________________________________________________
|
_Notes_
FIXED ASSETS
Tangible assets
8
Investments
9
CURRENT ASSETS
Debtors
10
Cash at bank and in hand
CREDITORS: Amounts falling due
within one year
11
NET CURRENT ASSETS
TOTAL NET ASSETS
Represented by:
FUNDS
Restricted Funds
12
Unrestricted funds:
Designated funds
13
General funds
14
TOTAL FUNDS
|Group
2022
£
2021
£
235,046
277,287
2,561,971
3,647,569
2,797,017
3,924,856
738,222
1,036,213
577,306
808,149
1,315,528
1,844,362
(468,178)
(459,281)
847,350
1,385,081
3,644,367
5,309,937
_______
_______
84,972
96,711
197,264
205,337
3,362,131
5,007,889
3,644,367
5,309,937|Charity
2022
£
2021
£
235,046
277,287
2,561,973
3,647,571
_______
_______
2,797,019
3,924,858
________
________
633,780
1,153,531
532,658
635,210
1,166,438
1,788,741
(341,583)
(424,048)
824,855
1,364,693
_______
_______
3,621,874
5,289,551
________
________
84,972
96,711
197,264
205,337
3,339,638
4,987,503
________
________
3,621,874
5,289,551
________
________|Charity
2022
£
2021
£
235,046
277,287
2,561,973
3,647,571
_______
_______
2,797,019
3,924,858
________
________
633,780
1,153,531
532,658
635,210
1,166,438
1,788,741
(341,583)
(424,048)
824,855
1,364,693
_______
_______
3,621,874
5,289,551
________
________
84,972
96,711
197,264
205,337
3,339,638
4,987,503
________
________
3,621,874
5,289,551
________
________|
|---|---|---|---|
||||1,364,693
_______
5,289,551
________|
||||96,711
205,337
4,987,503
________
5,289,551
________|
The Charity’s deficit for the year was £1,667,677 (2021: £353,746 deficit).
19 July 2023 and signed on its behalf by
Karla Smith Trustee
_Page_ 16
N A B S (A charitable company limited by guarantee) CONSOLIDATED CASH FLOW STATEMENT for the year ended 31 December 2022
|OPERATING ACTIVITIES
_Notess_
Cash (used in) operations
15a
Corporation taxes paid
Net cash (used in) operating activities
INVESTING ACTIVITIES
Purchase of investments
Sale of investments
Interest received
Dividends received
Net cash generated by investing activities
FINANCING ACTIVITIES
Repayment of borrowings
Net cash (used in)/generated by financing activities
Net (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
15b|_
|2022
£
2021
£
(749,447)
(930,663)
(475)
(11,951)
________ _________
(749,922)
(942,614)
(13,980)
(15,507)
514,150
1,528,115
9,638
7,715
9,271
9,272
_______
_______
519,079
1,529,595
-
(1,100,000)
_______
________
-
(1,100,000)
(230,843)
(513,019)
808,149
1,321,168
577,306
808,149
|2021
£
(930,663)
(11,951)
________
(942,614)|
|---|---|---|---|
||_
|||
||||(513,019)
1,321,168|
||||808,149|
_Page_ 17
N A B S (A charitable company limited by guarantee) ACCOUNTING POLICIES
NABS is a charitable company limited by guarantee incorporated in England and Wales. The registered office can be found on page 1.
## BASIS OF ACCOUNTING
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 (FRS 102) (effective 1 October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
NABS meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
## GROUP FINANCIAL STATEMENTS
The financial statements are prepared in sterling, which is the functional currency of the group. Monetary amounts in these financial statements are rounded to the nearest £1. The financial statements consolidate the results of the charity and its wholly owned subsidiary NABS Trading Limited on a line-by-line basis. A separate Statement of Financial Activities and Income and Expenditure Account for the charity has not been presented because the Trust has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.
## GOING CONCERN
The company’s business activities, together with the factors likely to affect its future development, performance and position are set out in the Trustees’ Report.
The Charity continues to have a good level of reserves and some of these are planned to continue being deployed in 2023 to ensure demand for services from our beneficiaries is met at this critical time, to ensure the organisation invests in projects that focus on its long term sustainability with a view to breakeven by 2025. These reserves are readily realisable via the investment portfolio. During 2022 £514,150 was drawn down from the portfolio to aid cashflow.
Despite an industry that was substantially hit by the pandemic, the annual commitments from the Marketing, Communications and Advertising Sector, who are both the chief source of donations and form our main beneficiary group, remain positive. The annual budgeting and quarterly reforecasting process are input into a longer term, 5 year financial planning model to identify risk points. The fundraising team review and research the market re media and corporate donations and hope to breakeven by 2025 and be in profit thereafter. Cashflow forecasting (generated from the budget/reforecasts) ensures funds are available to support NABS as a going concern. Long term financial planning scenarios also look at likelihood and impact of risks and determine a timeline for key decision making ie stop/start of Transformation projects, cost cutting measures and investment drawdown to aid cashflow. With these processes in place the Trustees believe the group is well placed to manage its business risk successfully.
Due to the above reasons the Trustees have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
## FUND ACCOUNTING
General funds are unrestricted funds which are available for use at the discretion of the Trustees in the furtherance of the general objectives of the charity and have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of the designated funds is set out in the notes to the financial statements. The funds are used at the discretion of the Executive Committee.
Restricted funds comprise of funds that have been given to NABS on condition that they are expended on purposes specified by the donor.
_Page_ 18
N A B S (A charitable company limited by guarantee) ACCOUNTING POLICIES
## INCOME
Voluntary income is included in the accounts on the basis of amounts notified to the charity as a probable receipt or more likely than not to be received for the financial year. The income from activities including fundraising events for generating funds is included in the accounts on a receivable basis. Investment income is credited as income on a receivable basis. Media donations are recognised when the sale of the advertising space is certain. All other income is included on an accruals basis, once there is sufficient certainty over entitlement and measurement and it is probable that the income will be received. Where income has been received in advance, or conditions for receipt have not been met, this is treated as deferred income.
## LEGACIES
Legacies are credited as income on the basis of amounts notified to the charity at the period end as receivable. This is on an accruals basis, once there is sufficient certainty over entitlement and measurement and it is probable that the income will be received.
## LISTED INVESTMENTS
Investments are all single priced funds. Realised and unrealised gains and losses on investments are added to or deducted from the general unrestricted funds. Realised gains and losses in the year represent the difference between the disposal proceeds and in year purchase cost or the market value at the beginning of the year. Realised and unrealised gains and losses are dealt with in the Statement of Financial Activities. Investment income is treated on initial recognition and subsequent measurement then credited to income on an accruals basis, using dates of payments for dividends and daily accrual for interest. Investments are initially recognised at cost and are subsequently measured at fair value at each reporting date.
## VALUE ADDED TAX
Value added tax is not recoverable by the charity, and as such is included within the relevant costs in the Statement of Financial Activities. The wholly owned subsidiary is registered for VAT, which is recovered/accrued for as required.
## OPERATING LEASES
Rentals applicable to operating leases where substantially all the benefits and risks of ownership remain with the lessor are reflected in the Statement of Financial Activities on a straight line basis over the lease term.
## EXPENDITURE
The areas in which resources are expended are in Charitable Activities (as per the charitable objectives); Fundraising (expenditure incurred in inducing people and organisations to contribute financially to the charity’s work; this includes the cost of staging of special fundraising events); and Governance (all expenditure relating to constitutional and statutory costs, including the cost of external audit).
## ALLOCATION OF COSTS
Direct costs are recorded under the appropriate heading. Indirect support costs include overhead costs, finance, personnel, payroll and governance costs allocated on a time apportionment and square footage basis. Governance costs include audit fees and legal and professional fees as direct costs plus indirect costs on the same basis as support costs.
Wages and salaries have been allocated between appropriate cost headings according to the duties and responsibilities of the individual staff.
## WELFARE GRANTS AND LOANS
Grants and loans are made by the charity in furtherance of its aims. Grants are charged as resources expended on an accruals basis. Loans advanced are included as an asset of the charity and included as Programme Related Investments held at cost less accumulated impairment. Interest receivable on the loans advanced, where applicable, is credited as incoming resources in the Statement of Financial Activities on an accruals basis.
## TANGIBLE FIXED ASSETS
Tangible fixed assets are stated at historical cost less depreciation. Individual fixed assets costing £1,000 or more are capitalised at cost.
_Page_ 19
N A B S (A charitable company limited by guarantee) ACCOUNTING POLICIES
Depreciation is provided on all tangible fixed assets other than freehold land at rates calculated to write each asset down to its estimated residual value evenly over its expected useful life, as follows:-
Furniture and equipment 10-20% straight line Computer equipment 20-33⅓% straight line Office furniture and equipment 20% straight line
## PENSION SCHEME ARRANGEMENTS
The charity operates a defined contribution pension scheme which is funded by contributions partly from the employees and partly from the charity. Such contributions are held in trustee-administered funds completely independent of the charity’s finances. The amount charged to the Statement of Financial Activities in respect of pension costs is the contributions payable in the period. Unpaid amounts at the year end are included in other creditors.
## DEBTORS
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid.
## CASH AT BANK AND IN HAND
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## CREDITORS AND PROVISIONS
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.
## FINANCIAL INSTRUMENTS
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## BASIC FINANCIAL ASSETS
Basic financial assets, which include trade and other receivables, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost being the transaction price less any amounts settled and impairment losses.
## IMPAIRMENT OF FINANCIAL ASSETS
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
_Page_ 20
N A B S (A charitable company limited by guarantee) ACCOUNTING POLICIES
## DERECOGNITION OF FINANCIAL ASSETS
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
## CLASSIFICATION OF FINANCIAL LIABILITIES
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
## BASIC FINANCIAL LIABILITIES
Basic financial liabilities, which include trade and other payables, amounts owed to group undertakings and accruals, are initially recognised at transaction price and subsequently measured at amortised cost, being transaction price less any amounts settled.
## DERECOGNITION OF FINANCIAL LIABILITIES
Financial liabilities are derecognised when, and only when, the company’s contractual obligations are discharged, cancelled, or they expire.
## EQUITY INSTRUMENTS
Equity instruments issued by the company are recorded at the fair value of proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
## CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT
Estimates 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.
## **Critical accounting estimates and assumptions**
The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results.
_Page_ 21
N A B S (A charitable company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022
|1
INCOME FROM DONATIONS AND LEGACIES
Donations
Legacies
Restricted donations
INCOME FROM OTHER TRADING ACTIVITIES
Fundraising events
Sponsorship
Training
INCOME FROM INVESTMENTS
Income from listed investments - dividends
- interest
Bank interest receivable
2
EXPENDITURE ON RAISING FUNDS
Fundraising costs
Brand relevance/marketing costs
3
EXPENDITURE – ALLOCATION OF SUPPORT COSTS
2022
Direct
Costs
£
2022
Indirect
Support costs
£
2022
Total
£
Grant making
259,821
-
259,821
Careers/counselling/
Advice Line
381,973
594,282
976,255
Governance
53,957
94,619
148,576
695,751
688,901
1,384,652|2022
£
1,773,131
10,888
62,500
1,846,519
2022
£
461,970
58,523
114,114
634,607
2022
£
9,271
4,709
4,929
18,909
2022
£
1,418,848
776,677
2,195,525
2021
Direct
Costs
£
2021
Indirect
Support costs
£
237,600
-
448,679
594,295
57,376
101,507
743,655
695,802|2021
£
1,867,630
30,000
80,000
1,977,630
2021
£
322,679
82,850
93,425
498,954
2021
£
9,272
5,708
2,007
16,987
2021
£
1,131,454
624,700
1,756,154
2021
Total
£
237,600
1,042,974
158,883
1,439,457|2021
£
1,867,630
30,000
80,000|2021
£
1,867,630
30,000
80,000|
|---|---|---|---|---|
||||1,977,630||
|||||2021
£
322,679
82,850
93,425|
|||||498,954|
_Page_ 22
N A B S (A charitable company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022
Charitable grants are made solely to individuals on a case by case basis. No grants given were material in size and all related solely to welfare. The total number of beneficiaries in both years was in excess of 100.
|4
INDIRECT SUPPORT COSTS
Provisions, catering and utility costs
Property and equipment maintenance
Other operating costs and depreciation
5 ANALYSIS OF STAFF COSTS AND THE COST OF KEY
MANAGEMENT PERSONNEL
The average number of staff employed by the charity was:
Fundraising
Welfare and counselling
Administration and management
Their total remuneration was:
Wages and salaries
Social security costs
Pension costs
Temporary staff
|2022
£
50,370
84,711
553,820
_______
688,901
________
2022
No
12
14
11
37
2022
£
1,744,230
187,478
73,328
-
2,005,036
|2021
£
57,952
105,054
532,796
_______
695,802
________
2021
No
10
11
14
35
2021
£
1,515,071
160,448
65,115
4,500
1,745,134|
|---|---|---|
The amounts above include ex gratia payments as a result of redundancies for 2 members of staff of £41,931 in 2022 only – none in 2021.
The key management personnel of the group and parent charity comprise the Chief Executive Officer, Corporate Services Director and the Department Directors. The total employee benefits of the key management personnel of the charity were £659,943 (2021: £591,101) including employer’s NI of £75,759 (2021: £58,369).
The number of employees whose emoluments (salaries, wages and benefits in kind) fell within the following bands is:
|bands is:|||
|---|---|---|
||2022|2021|
||No|No|
|£60,000 - £70,000|1|2|
|£70,001 - £80,000|3|3|
|£90,001 - £100,000|-|1|
|£110,001 - £120,000|2|-|
|£140,001 - £150,000|-|1|
_Page_ 23
N A B S (A charitable company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022
During the year pension contributions on behalf of these staff amounted to £19,665 (2021: £23,669).
## 6 PAYMENTS TO TRUSTEES
No remuneration was paid to the trustees in the period (2021: £nil). Reimbursed expenses (i.e. travel and stationery) amounted to nil (2021: nil). The number of trustees reimbursed expenses was nil (2021: nil).
## 7 NET EXPENDITURE
|The net expenditure for the group is stated after charging:
Depreciation
Operating lease costs - land and buildings
- other
Auditor’s remuneration - Statutory Audit - current year
- Corporation tax|2022
£
42,239
223,317
5,654
33,925
3,450
_______|2021
£
42,241
223,317
6,415
29,500
3,060
_______|
|---|---|---|
The net expenditure for the group is stated after charging:
## 8 TANGIBLE FIXED ASSETS -
GROUP AND CHARITY
|GROUP AND CHARITY|||
|---|---|---|
|Office
refurbishment
£
Furniture
and
equipment
£
Computer
equipment
£
Cost
1 January 2022
362,455
29,063
13,649
31 December 2022
362,455
29,063
13,649
Depreciation
1 January 2022
98,730
15,501
13,649
Charged in the period
36,428
5,813
-
_______
_______
31 December 2022
135,158
21,314
13,649
Net book value
31 December 2022
227,297
7,749
-
31 December 2021
263,725
13,562
-|
|Total
£
405,167
405,167
127,880
42,241
170,121
235,046
277,287|
||||
||||
||_||
||||
_Page_ 24
N A B S (A charitable company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022
|9|INVESTMENTS – GROUP AND CHARITY||2022|2021|
|---|---|---|---|---|
||||£|£|
||Listed in the UK||2,547,517|3,633,115|
||Unlisted (charity only)||2|2|
||Programme related investments||14,454
|14,454|
||||2,561,973
|3,647,571|
||Investments listed in the UK||||
||Market value as at 1 January||3,633,115|4,795,734|
||_Disposal of investment during the year_||(514,150)|(1,528,115)|
||Income re-invested||13,980|14,980|
||Net loss on investments||(585,428)
|350,516|
||Market value at 31 December||2,547,517
|3,633,115|
||All the charity’s listed investments are held in a single investment account.||||
||The market value of these investments as at 31 December 2022 comprises:||||
||||2022|2021|
||||£|£|
||Listed UK Investments||||
||||____2,547,517|____3,633,115|
||_Unlisted investments_||||
||NABS holds more than 20% of the equity of the|following undertaking:|||
||_Subsidiary undertaking_
_Class of holding_|_Proportion held_|_Nature of business_||
||NABS Trading Limited
Ordinary|100%|Fundraising events||
||_Programme related investments_||||
||These represent principal and accrued interest on|welfare loans made by the charity in furtherance of its objectives.|||
||The rates of interest previously chargeable on each loan, where levied, varied but ranged generally between 6½%||||
||and 8%. Interest has been waived so is no longer|being charged on these|loans. Most loans are|secured by a charge|
||over the borrower’s property. The loans have no specific repayment terms.||||
|||||£|
||Amounts brought forward from prior year|||14,454|
||Amounts repaid in the year|||-|
|||||______|
||Amounts carried forward|||14,454|
_Page_ 25
N A B S (A charitable company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022
|10 DEBTORS
Amounts due from group undertakings
Event debtors
Other debtors
Prepayments and accrued income
11 CREDITORS: Amounts falling due within one
year
Amounts due to group undertakings
Trade creditors
Other taxation & social security
Other creditors
Corporation tax
Accruals and deferred income|Group
2022
£
-
278,088
-
460,134
738,222
Group
2022
£
-
23,036
89,120
4,510
475
351,037
468,178|Group
2021
£
-
470,115
5,440
560,658
1,036,213
Group
2021
£
-
27,015
65,344
5,512
521
360,889
459,281|Charity
2022
£
-
173,646
-
460,134
_______
633,780
Charity
2022
£
2,979
22,021
65,693
4,510
-
246,380
341,583|Charity
2021
£
140,615
452,258
-
560,658
_______
1,153,531
Charity
2021
£
-
20,045
65,344
5,512
-
333,147|Charity
2021
£
140,615
452,258
-
560,658
_______
1,153,531
Charity
2021
£
-
20,045
65,344
5,512
-
333,147|
|---|---|---|---|---|---|
||||||424,048|
Included in other taxation & social security is an amount of £12,015 (2021: £13,551) in respect of outstanding pension contributions.
|Deferred income:
Deferred income brought forward
Amounts deferred in the year
Amounts released in the year
(
Deferred income carried forward
|2022
2021
£
£
48,988
244,601
156,175
48,988
48,988)
(244,601)
156,175
48,988
|
|---|---|
Deferred income relates to WACL (Women in Advertising and Communications, London) funds (raised at their Christmas Gala using NABS’ Zettle machines as a payment option) repaid in January 2023; Stranger than Summer tables and donations, Ride Adland teams, NABS Golf teams, Media donations billed in 2022 deferred to 2023. Also timeTo and NABS training income has been deferred as training is not due to take place until 2023.
_Page_ 26
N A B S (A charitable company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022
## 12 RESTRICTED FUNDS
NABS holds three funds, for encouragement of excellence in the industry, which give awards for training.
The first is the Talent Awards (previously known as Future Leaders Fund), established in 2005, with funding from WACL (Women in Advertising and Communications, London). The purpose of the fund is to provide vocational training in the marketing and communications industry.
The second fund is for an award established in the memory of David Pilton, who died in 1996. David founded the Soho-based agency David Pilton Advertising (DPA) in 1960. DPA and the agency’s former chairman, John Duncombe, have chosen to donate a sum of money to be used to support and inspire people in the first five years of their communications careers.
The third fund is for an initiative called timeTo established in 2018. NABS has partnered with WACL and the Advertising Association (AA) in working towards eradicating sexual harassment in the advertising and marketing industry.
|Future Leaders Fund
As at 1 January 2022
Received
Expended
As at 31 December 2022
David Pilton Award
As at 1 January 2022
Expended
As at 31 December 2022
timeTo donation
As at 1 January 2022
Received
Expended
As at 31 December 2022
Total Restricted Funds|£
86,966
40,000
(54,690)
_______
72,276
9,745
-
_______
9,745
-
22,500
(19,549)
_______
2,951
_______
84,972
_______|
|---|---|
_Page_ 27
N A B S (A charitable company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022
## 13 UNRESTRICTED FUNDS – DESIGNATED
The funds of the group and charity include the following designations which have been set aside out of unrestricted funds for specific purposes.
||Age related|Peterhouse|Total|
|---|---|---|---|
||Fund|Beneficiary|Funds|
|||Fund||
||£|£|£|
|As at 1 January 2022|203,023|2,314|205,337|
|Expended|(5,759)|(2,314)|(8,073)|
|||_______|_______|
|As at 31 December 2022|197,264|-|197,264|
The Peterhouse Beneficiary fund is from Billie Dyson legacy whose wishes were for it to be used for the benefit of Peterhouse so will be used to benefit beneficiaries of NABS living at Peterhouse. The Age related fund was to use part of the monies from the sale of Peterhouse to continue to do work around the older industry community and benefit the beneficiaries of NABS living at Peterhouse when the Billie Dyson fund ran out. These plans have been delayed.
14a ANALYSIS OF MOVEMENT BETWEEN FUNDS - GROUP
|Unrestricted
General
Funds
2022
£
Unrestricted
Designated
Funds
2022
£
Restricted
Funds
2022
£
At 1 January 2022
5,007,889
205,337
96,711
Income
2,437,535
-
62,500
Expenditure
(3,497,865)
(8,073)
(74,239)
Realised/unrealised losses
(585,428)
-
-
_________
________
_______
At 31 December 2022
3,362,131
197,264
84,972
_________
________
_______
Unrestricted
General
Funds
2021
£
Unrestricted
Designated
Funds
2021
£
Restricted
Funds
2021
£
At 1 January 2021
5,377,271
215,343
68,847
Income
2,413,571
-
80,000
Expenditure
(3,133,469)
(10,006)
(52,136)
Realised/unrealised gains
350,516
-
-
_________
________
_______
At 31 December 2021
5,007,889
205,337
96,711
_________
________
_______|Total
2022
£
5,309,937
2,500,035
(3,580,177)
(585,428)
_________
3,644,367
_________
Total
2021
£
5,661,461
2,493,571
(3,195,611)
350,516
_________
5,309,937
_________|Total
2022
£
5,309,937
2,500,035
(3,580,177)
(585,428)
_________
3,644,367
_________|
|---|---|---|
_Page_ 28
N A B S (A charitable company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022
## 14b ANALYSIS OF MOVEMENT BETWEEN FUNDS - CHARITY
|Unrestricted
General
Funds
2022
£
Unrestricted
Designated
Funds
2022
£
At 1 January 2022
4,987,503
205,337
Income
2,106,476
-
Expenditure
(3,168,913)
(8,073)
Realised/unrealised losses
(585,428)
-
_________
_________
At 31 December 2022
3,339,638
197,264
_________
_________
Unrestricted
General
Funds
2021
£
Unrestricted
Designated
Funds
2021
£
At 1 January 2021
5,359,115
215,343
Income
2,167,435
-
Expenditure
(2,889,563)
(10,006)
Realised/unrealised gains
350,516
-
_________
_________
At 31 December 2021
4,987,503
205,337
_________
_________|Restricted
Funds
2022
£
96,711
62,500
(74,239)
-
________
84,972
________
Restricted
Funds
2021
£
68,847
80,000
(52,136)
-
________
96,711
________|Total
2022
£
5,289,551
2,168,976
(3,251,225)
(585,428)
_________
3,621,874
_________
Total
2021
£
5,643,305
2,247,435
(2,951,705)
350,516
_________
5,289,551
_________|
|---|---|---|
14c ANALYSIS OF NET ASSETS BETWEEN FUNDS
|Unrestricted
General
Funds
2022
£
Unrestricted
Designated
Funds
2022
£
Restricted
Funds
2022
£
GROUP
Fixed assets
235,046
-
-
Investments
2,561,971
-
-
Net current assets
565,114
197,264
84,972
_______
_______
3,362,131
197,264
84,972
_______
_______
CHARITY
Fixed assets
235,046
-
-
Investments
2,561,973
-
-
Net current assets
542,619
197,264
84,972
_______
_______
3,339,638
197,264
84,972
________
_______
_______|Total
Funds
2022
£
235,046
2,561,971
847,350
|
|---|---|
||3,644,367
|
||235,046
2,561,973
824,855
|
||3,621,874
________|
_Page_ 29
N A B S (A charitable company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022
|Unrestricted
General
Funds
2021
£
Unrestricted
Designated
Funds
2021
£
Restricted
Funds
2021
£
GROUP
Fixed assets
277,287
-
-
Investments
3,647,569
-
-
Net current assets
1,083,033
205,337
96,711
_______
_______
5,007,889
205,337
96,711
_______
_______
CHARITY
Fixed assets
277,287
-
-
Investments
3,647,571
-
-
Net current assets
1,062,645
205,337
96,711
_______
_______
4,987,503
205,337
96,711
________
_______
_______|Total
Funds
2021
£
277,287
3,647,569
1,385,081
|
|---|---|
||5,309,937
|
||277,287
3,647,571
1,364,693
|
||5,289,551
________|
|15a
GROUP
CASH FLOWS
2022
£
Reconciliation of net expenditure to cash used in operations
Net (expenditure)
(1,665,570)
Adjustments for:
Depreciation on tangible fixed assets
42,241
Dividends and interest receivable
(18,909)
Loss on investments
585,428
Taxation
475
Operating cash flow before movements in working capital
(1,056,335)
Decrease/(increase) in trade and other debtors
101,753
Increase/(decrease) in trade and other creditors
205,135
_______
Cash used by operations
(749,447)
15b
Analysis of net funds and net debt
reconciliation
At
1 January
2022
£
Cash
flow
£
31
Cash at bank and in hand
808,149
(230,843)
Total
808,149
(230,843)|2021
£
(351,524)
42,241
(16,987)
(350,516)
521
(676,265)
(73,296)
(181,102)
_______
(930,663)
At
December
2022
£
577,306
577,306|
|---|---|
_Page_ 30
N A B S (A charitable company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022
## 16a COMMITMENTS UNDER OPERATING LEASES
At 31 December the company had commitments under non-cancellable operating leases as follows:
|Land and buildings
within one year
two to five years|2022
£
223,317
223,317
446,634
|2021
£
223,317
446,633
669,950|
|---|---|---|
## 16b OTHER FUTURE COMMITMENTS
## _Pension contributions_
The charity makes contributions to an individual’s pension scheme, subject to a maximum of 5% of the employee’s annual salary. The assets of the scheme are held separately from the assets of the charity. Contributions to the scheme are charged to the Statement of Financial Activities on an accruals basis. Pension costs amounted to £73,328 (2021: £65,115) and are included within salary costs. The charity expects to pay £75,415 in 2023.
## 17 RELATED PARTY TRANSACTIONS
The charity has a wholly owned subsidiary, NABS Trading Limited. NABS Trading Limited transferred £195,118 to NABS as a distribution (2021: £167,756). As at the year-end, NABS Trading Limited owed £195,118 (2021: £167,756) to the Charity. Amounts owed by the charity were £2,979 (2021: owed to the Charity £140,615), this being payments received being transferred between NABS Trading Limited and the Charity bank accounts. NABS receives donations from various companies to support its activities. M Bush, S Daglish, H Nicklin, N Pertwee (Jasinski), Karla Smith, Dominic Carter & Jennifer Healy were Trustees of NABS and also connected to companies that have made donations to NABS in the year totalling £502,683 (2021: £491,794). The balances due from these companies at the year end was £53,972 (2021: £206,100).
_Page_ 31
N A B S (A charitable company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022
## 18 SUBSIDIARY UNDERTAKING
A summary of the results of NABS Trading Limited is shown below:
|NABS Trading Limited (company no: 03834446), 10 Hills
Place, London. W1F 7SD
Turnover
Other operating expenses
Operating profit
Profit on ordinary activities before taxation
Taxation
Retained profit/(loss) for the year
Profit and loss reserve at 1 January
Gift Aid distribution paid
Profit and loss reserve at 31 December
The aggregate of the assets, liabilities and funds was:
Current assets
Creditors: Amounts falling due within one year
Net assets|2022
£
526,176
(328,476)
_______
197,700
_______
197,700
(475)
_______
197,225
20,384
(195,118)
_______
22,491
_______
153,074
(130,581)
_______
22,493
_______|2021
£
413,892
(243,385)
_______
170,507
_______
170,507
(521)
_______
169,986
18,154
(167,756)
_______
20,384
_______
223,375
(202,989)
_______
20,386
_______|
|---|---|---|
_Page_ 32
N A B S (A charitable company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022
|19 TAXATION ON PROFIT FOR THE YEAR
Current tax – UK corporation tax|2022
£
475
_____|2021
£
521
_____|
|---|---|---|
The tax assessed for the period is equivalent to the standard effective rate of corporation tax in the UK for the year ended 31 December 2022 of 19% (2020 : 19%) as shown below:
||2022|2021|
|---|---|---|
||£|£|
|Profit on ordinary activities before tax|197,700|170,497|
|Profit on ordinary activities before tax multiplied|||
|by the standard rate of corporation tax for small|37,563|32,394|
|companies 19% (2021 : 19%)|||
|Less gift aid (non-taxable)|(37,088)|(31,873)|
||______|______|
|Current tax charge|475
______|521
______|
No provision has been made for deferred tax as there were no capital allowances claimed in the year or any timing differences.
There are no specific factors that affect future tax charges. The tax charge arises in NABS Trading Limited.
## 20 FINANCIAL INSTRUMENTS
|FINANCIAL INSTRUMENTS|||||
|---|---|---|---|---|
||Group|Group|Charity|Charity|
||2022|2021|2022|2021|
|The carrying amounts of financial instruments were|£|£|£|£|
|As follows:|||||
|Financial assets:|||||
|Financial Assets held at fair value|2,547,517|3,633,115|2,547,517|3,633,115|
_Page_ 33