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2020-12-31-accounts

International Psychoanalytical Association

Charity No. 1071752 Company No. 03496765

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

International Psychoanalytical Association

International Psychoanalytical Association Board, Advisers, Legal and Administrative Information

Board Members - Officers

Dra. Virginia Ungar - President Dr Sergio Nick - Vice President Dr Henk Jan Dalewijk- Treasurer

Board members

Dr Franziska Ylander Dr Gunther Perdigao Magister Jorge Kantor Lic. Silvia Resnizky Dr Serge Frisch Dr. Abbot Bronstein Lic. (Maria) Alejandra Rey Dra Anette Blaya Luz Dr Bernard Chervet Lic. Gleda Araujo Dr Ingo Focke Dra. Jani Santamaria Psicologo Laura Verissimo de Posadas Professor Louis Brunet Dr Luisa Masina Dr Mark Smaller Dr Maureen Murphy Dr Professor Rachel Blass Dr Ralph Fishkin Dr Sue Kolod Dr Vic Sedlak

Senior management team

P A Crake Executive Director N J Allen Deputy Executive Director Andrew Twynam Head of Finance and IT, Company Secretary

Page 1

International Psychoanalytical Association Board, Advisers, Legal and Administrative Information

Registered Office

Lexicon, Unit B, Book House 261a City Road London EC1V 1AH

Independent Auditor

Moore Kingston Smith LLP Chartered Accountants Devonshire House, 60 Goswell Road, London EC1M 7AD

Bankers

HSBC

67 George Street, Richmond, Surrey TW9 1HG

HSBC

452 Fifth Avenue, New York NY 10021

Signature Bank 565 Fifth Avenue, 12th Floor, New York, NY10017

Solicitors

Bates Wells Braithwaite 2-6 Cannon Street, London EC4M 6YH

Goodman Derrick 10 St Bride Street, London EC4A 4AD

K&L Gates LLP One New Change, London, EC4M 9AF

Page 2

International Psychoanalytical Association

Board Report for the year ended 31 December 2020

The Board is pleased to present their report together with the financial statements of the International Psychoanalytical Association (‘the IPA’) for the year ended 31 December 2020.

Structure, Governance and Management

The legal and administrative information set out on pages 1 and 2 forms part of this report.

Governing document

The IPA:

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.

Organisational Structure

The organisational structure consists of:

The voting members of the Board are the Officers and 21 representatives, 7 from each Geographical Area. All these people are IPA members and are elected by IPA membership ballot . The Geographical Areas are Europe, North America and Latin America.

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International Psychoanalytical Association

Board Report for the year ended 31 December 2020

The IPA is managed by the Board and, under the Board’s and its Executive Committee’s supervision, by the Officers. Implementation of policies set by the Board is delegated to individual committees (and other similar bodies) of the IPA, or the Executive Director and his staff.

The committees and staff execute policy decisions in close consultation with the Board. Staff are delegated authority for the day-to-day management of IPA programmes, publications, congresses and the website in consultation with the committees related to such activities.

IPA members who serve on the Board or on IPA committees are not paid for their work – but they are reimbursed for expenses incurred in the course of their work for the IPA.

Appointment to the Board

The IPA members named on page 1 have served and have been appointed during the period. Appointment to the Board is governed by the IPA’s Articles of Association. The President, working with the Vice President and the Board, is authorised to appoint new board members to fill vacancies arising through resignation or death of a board member.

Induction and Training of Board Members

All new Board Members are given a formal induction during the first Board meeting after their appointment. Thereafter, staff provide continuous support to Board members on their charitable responsibilities.

Related Parties

The IPA works in close co-operation with an independent US charity – IPA Fund Inc (a 501(c) (3) company) – which has similar objectives. For details of other related parties, please see note 12.

Statement on the COVID-19 pandemic

The Board have considered possible events or conditions that might cast significant doubt on the ability of the IPA to continue as a going concern and in particular the effects of the COVID-19 pandemic on these financial statements. The Board has made this assessment for a period of at least one year from the date of approval of the financial statements. The Board have considered the impact of COVID-19 and have reforecast budgets taking account of pressure on membership, congress and other event income. The Board have taken mitigating actions to reduce operational costs, renegotiate supplier contracts and restructure working practices. The IPA has the flexibility to significantly reduce costs by adopting new working practices such as working from home and the use of internet-based video conferencing software. After making enquiries the Board has concluded that there is a reasonable expectation that the IPA has adequate resources and unrestricted reserves to continue in operational existence for the foreseeable future. The IPA therefore continues to adopt the going concern basis in preparing its financial statements.

Risk Management

The Officers conduct a thorough risk review each year, which is considered and adopted by the Board. This lists all the significant identified risks to which the IPA is exposed, the severity and likely impact of those risks, and

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International Psychoanalytical Association

Board Report for the year ended 31 December 2020

the plan to manage or mitigate them. The two most significant risks by severity and likely impact are related and as follows:

Both risks continue to be carefully monitored by the Officers and staff with plans to mitigate and manage as follows:

Other identified risks:

In all cases, procedures are in place to manage or mitigate such risks.

Board member indemnity insurance

IPA purchases indemnity insurance which seeks to protect board members against personal liability if legal claims are made against them in their capacity as IPA board members.

IPA Remuneration Policy

The Executive Director’s pay is set by the Officers who take advice from external experts.

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International Psychoanalytical Association

Board Report for the year ended 31 December 2020

The Executive Director sets the pay of key management personnel and staff within overall guidelines agreed with Officers and after getting benchmarking information from external experts.

Summary of Objects

The IPA’s objects are to promote and develop the science of psychoanalysis. The Board furthers this objective by promoting education and training in psychoanalytic theory and practice, promoting high standards of psychoanalytic treatment and practice, organising lectures, seminars and international symposia, and instituting research and disseminating the results.

Strategies, Aims, Main Objectives and Outcomes for the Year

The Charity’s mission is:

‘To assure the continued vigour and development of psychoanalysis’

This year was the final full year for the current Administration. They will continue in office until July 2021 when a new Administration will take over. The current Administration has used this final period in office to continue advancing the IPA’s mission with specific focus on the following strategic activities:

The IPA’s connection with and presence in the community

The IPA will expand the field of psychoanalysis so that we can make the most of its potential. Training is focused on private practise and the analytic method is a very useful tool that has been tested and honed.

The primary goal is to give IPA psychoanalysis the wider place it deserves. The discipline has had a great impact on different spheres of social life: medicine (paediatrics in particular), education and the legal system, to name a few.

To bolster these effects, the IPA will reach out to the places where young professionals are working hard to tackle complex issues such as addiction, family violence, abuse, migration and eating disorders.

Child psychoanalysis and wider analytic training

The previous administration made a lot of progress in ensuring that child analysis had a space of its own in the IPA structure and it is important that the IPA maintains this progress. In particular, that the benefits of integrated training are fully realised. On the wider issue of analytic training, during the current administration, the IPA will delve more deeply into all aspects of analytic training, including personal analysis, supervision, and the content of education programmes. The IPA will continue to develop and promote spaces for debate and discussion on education in the various contexts where it occurs, as well as on the different approaches adopted in different latitudes.

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International Psychoanalytical Association

Board Report for the year ended 31 December 2020

The creation of new groups

Incorporating new societies into the IPA brings new ideas and perspectives to the Association. The incorporation process will remain thorough and demanding but can be improved so that all the groups that want to join experience it as a learning and enriching opportunity that both parties will benefit from. The New Groups Committee will continue to work closely with ILAP, EPI and the Asia Pacific Planning Committee.

The role of analysts in training

It is crucial to nurture the strong relationship with IPSO and the regional candidate organisations to ensure that candidates receive the best possible training. Analysts in training are not the future but the present of our institutions. The IPA must be a container for difference and diversity and must create a climate of harmony and growth that will foster ongoing debates that respect members’ various customs, traditions and preferences.

Communication between the IPA and constituent organisations, and between the IPA and its membership

The IPA will continue to support and strengthen the relationships with regional federations. Enhancing communication among the regions is essential as it will enrich psychoanalytic practice and create a space for production and implementation of new ideas. Interregional meetings will be implemented by the current administration.

Public Benefits

The Trustees have considered the Charity Commission guidance on public benefit including the guidance “public benefit: running a charity”.

The primary public benefit provided by the IPA is the development and monitoring of training standards for the clinical practise of psychoanalysis which assure the public of the quality of the mental healthcare provided by psychoanalysts trained to IPA standards, in IPA component organisations. The IPA continues to devote most of its resources to this work, and to the spread of psychoanalysis into new areas (in particular eastern Europe, Asia-Pacific and Latin America). The IPA has provided funding during the year to institutes formed in each of those territories with the specific purpose of growing understanding of the benefits of psychoanalytic treatment, and of training as a practitioner to the very highest standards mandated by the IPA.

The IPA has continued to provide support to psychoanalysts practising in the profession, including through our programme of scientific congresses, funding support to provide research grants, and supporting the publication of specialist books through a partnership with Routledge. During 2020, in response to the COVID-19 pandemic, the IPA developed and delivered a series of webinars to support analysts’ work treating the trauma of the COVID19 pandemic.

Finally, the IPA has continued to support a related organisation - IPA Fund, incorporated in the USA - which has provided financial support to people around the world who require help to complete their training. That support scheme was established many years ago and the IPA has invested more than US$1 million into such support.

Events update

Asia-Pacific Conference 2020

The COVID-19 pandemic regrettably led to the cancelation of the IPA’s Asia-Pacific Conference that was scheduled to commence in April 2020. The event was originally planned to take plan in Sydney, Australia. There was not enough time to move the event online.

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International Psychoanalytical Association

Board Report for the year ended 31 December 2020

IPA Congress 2021

The 52[nd] IPA Congress was scheduled to take place in Vancouver, Canada in July 2021. However, due to the COVID-19 pandemic, the Board decided to move the event online. The event will still take place in July 2021 with the same programme. The new Congress format presents an opportunity for the IPA to reach a new and wider audience.

Financial Review

During 2020 there was a net increase in reserves carried forward of $595,503 (2019: decrease $339,223).

Key contributors to the 2020 surplus were:

During the year and in response to the COVID-19 pandemic, the IPA set up an Extraordinary 2020 COVID-19 Dues Relief Programme to provide in-year Dues relief to those members most affected by the pandemic. The Programme granted $129,308 of additional Dues relief and was the main reason for the reduction in overall Dues income in the year.

However, travel restrictions caused by the COVID-19 pandemic resulted in most IPA committee meetings moving online in 2020. This resulted in a large decrease in travel, accommodation and other related meeting expenditure of $983,264 against expectation in 2020.

The IPA held cash reserves at the end of the year of $3,231,910 (2019: $2,668,025). In 2020 57% of these cash reserves were held in $US (2019: 72%). The increase in cash reserves is a direct result of the reduction in expenditure on charitable activities due to the COVID-19 pandemic.

Total Reserves are 2% higher than those outlined in the Reserves Policy (below) and hence the Board believes the IPA’s reserves remain adequate to meet future challenges. The immediate impact of the COVID-19

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International Psychoanalytical Association

Board Report for the year ended 31 December 2020

pandemic has been to increase the IPA’s reserves. However, the long-term economic effects of the pandemic are still unknown and have the potential to adversely affect Dues income and hence reserves in the future.

Reserves Policy

Total reserves at year end were $5,870,483 (2019: $5,274,980).

The Trustees have reviewed the reserves policy and believe:

Almost all income for the IPA is in the form of Dues that are subject to considerable financial volatility around the world. The COVID-19 pandemic crisis will affect the income of members around the world and put downward pressure on Dues income for the IPA in the future. This crisis demonstrates the need for significant reserves to cover income risk.

Access to these reserves gives the Board sufficient time to plan for significant income shortfalls, provide for exceptional payments and to cope with the consequences of unforeseen disruptions to operations.

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International Psychoanalytical Association

Board Report for the year ended 31 December 2020

Statement of the Board’s Responsibilities

The Board Members (who are also directors of IPA for the purposes of company law) are responsible for preparing the Board Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice.)

Company law requires the Board to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the IPA and of the incoming resources and application of resources, including the income and expenditure of the charitable company for that period. In preparing those financial statements, the Board is required to:

The Board is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. The Board is also responsible for safeguarding the assets of the IPA and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of Information to Auditor

In so far as the Board Members are aware, there is no relevant audit information of which the IPA’s auditor is unaware. The Board Members have taken all the steps they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

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International Psychoanalytical Association

Board Report for the year ended 31 December 2020

Auditor

Moore Kingston Smith LLP have indicated their willingness to continue in office and it is proposed that they be re-appointed as auditor for the ensuing year.

These accounts have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

Signed on behalf of the Directors

…………...………………………… Dra. Virginia Ungar, President and Director

…………......…...……...…………… Dr Henk Jan Dalewijk, Treasurer and Director

Date: 16[th] July 2021

Page 11

Independent Auditor's Report to the Board of International Psychoanalytical Association

Opinion

We have audited the financial statements of International Psychoanalytical Association for the year ended 31 December 2020 which comprise of the Statement of Financial Activities, the Balance Sheet, the 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 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 charitable company’s affairs as at 31 December 2020 and of its 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.

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 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 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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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

We have nothing to report in this regard.

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Independent Auditor's Report to the Board of International Psychoanalytical Association

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 annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the trustee's annual report has 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustee's annual report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

Responsibilities of the trustees

As explained more fully in the trustee's responsibilities statement set out on page 10, 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 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 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 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 non-compliance 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.

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Independent Auditor's Report to the Board of International Psychoanalytical Association

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit in respect of fraud, are; to identify and assess the risks 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 to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

•We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council

•We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance.

•We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.

•We inquired of management and those charged with governance as to any known instances of noncompliance or suspected non-compliance with laws and regulations.

•Based on this understanding, we designed specific appropriate audit procedures to identify instances of noncompliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

•Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charitable company’s internal control.

•Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.

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Independent Auditor's Report to the Board of International Psychoanalytical Association

Auditor’s responsibilities for the audit of the financial statements (continued)

• Conclude on the appropriateness of the trustee's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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 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 any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Stickland

Senior Statutory Auditor for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

Devonshire House 60 Goswell Road London EC1M 7AD

Date: 29 October 2021

Page 15

International Psychoanalytical Association Statement of Financial Activities

(including an income and expenditure account) For the year ended 31 December 2020

Note
Income
Income from charitable activities:
Congress Income
Membership income
Regional conference income
Investment income
2
Other income
Total income
Expenditure
Charitable activities
3(a)
Total expenditure
Net movement in funds
Funds brought forward at 1st January 2020
9
Funds carried forward at 31st December 2020
9		 2020
$		 2019
$
1,378,856
-
2,390,048 2,502,666
- -
23,699
8,285
17,875 33,159
2,416,208 3,938,380
1,820,705 4,277,603
1,820,705
595,503		 4,277,603
(339,223)
5,614,203
5,274,980
5,870,483
5,274,980

There are no other recognised gains or losses for the period other than that included in the SOFA

All amounts relate to continuing activities and are unrestricted.

The notes on pages 19 to 27 form part of these accounts.

Page 16

International Psychoanalytical Association Balance Sheet As at 31 December 2020

Note
Fixed assets
Intangible assets
5
Tangible assets
6
Current assets
Debtors
7
Short term investments
Cash at bank and in hand
Liabilities: amounts falling due
within one year
8
Net current assets
Total assets
Funds
Unrestricted funds:
General
9
Designated funds
9
Total funds		 2020
$
8,335
2,684,876
2,693,211
467,495
708,809
2,523,101		 2019
$
16,987
2,726,381
2,743,368
435,790
701,453
1,966,572
3,699,404
(522,132)
3,177,272
5,870,483
3,102,267
2,768,216
5,870,483		 3,103,815
(572,203)
2,531,612
5,274,980
2,467,234
2,807,746
5,274,980

These accounts have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved and authorised for issue by the Board on 16th July 2021

….....……..…………………………….

Dra. Virginia Ungar, President

….....……..…………………………….

Dr Henk Jan Dalewijk, Treasurer

The notes on pages 19 to 27 form part of these financial statements. Companies House Number: 3496765

Page 17

International Psychoanalytical Association Statement of Cash Flows For the year ended 31 December 2020

Cash flow from operating activities
Net cash provided by operating activities
Cash flow from investing activities
Investment income - bank interest
Purchase of intangible fixed assets
Purchase of tangible fixed assets
Transfer to short term cash deposits
Net cash provided (used in) investing activities
Change 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		 Note
14		 2020
$
558,355
8,285
-
(2,755)
(7,356)
(1,826)
556,529
1,966,572
2,523,101		 2019
$
15,389
23,699
(10,688)
(24,586)
(701,453)
(713,028)
(697,639)
2,664,211
1,966,572
Analysis of cash and cash equivalents
Cash at bank and in hand
Deposits
Total cash and cash equivalents
Analysis of changes in net debt
Cash
Loans falling due within one year
Loans falling due after more than one year
Total		 01-Jan-20
$
1,966,572
-
-
1,966,572		 2020
$
1,713,230
809,871
2,523,101
Cash Flows
$
556,529
-
-
556,529		 2019
$
1,164,100
802,472
1,966,572
31-Dec-20
$
2,523,101
-
-
2,523,101

Page 18

International Psychoanalytical Association Notes to the Financial Statements For the year ended 31 December 2020

1 Principal Accounting Policies

International Psychoanalytical Association is a registered charity (number 1071752) and a company limited by guarantee, registered in England and Wales (number 03496765). The registered office is Lexicon, Unit B, Book House, 261a City Road, London, EC1V 1AH.

(a) Basis of preparation

These financial statements are prepared on a going concern basis, under the historical cost convention, as modified by the investments being measured at fair value through income and expenditure within the Statement of Financial Activities.

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The IPA is a public benefit company for the purposes of FRS 102 and therefore the IPA also prepares its financial statements in accordance with the 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 (The FRS 102 Charities SORP) published on 16 July 2014, the Companies Act 2006 and the Charities Act 2011.

The directors has assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the IPA to continue as a going concern. The directors have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the directors have considered the impact on the Coronavirus on its membership income and conference income. Whilst substantially all of 2020 Dues income was received prior to approval of these accounts, there is likely to be pressure on 2021 Dues income. The 2020 Asia-Pacific Conference was cancelled however the 2021 Congress will proceed as planned albeit online. Overhead costs have reduced significantly mainly due to no international travel. On this basis and the level of reserves held the directors have concluded that the charitable company has adequate resources to continue in operational existence for at least twelve months from the approval of the financial statements. The charitable company therefore continues to adopt the going concern basis in preparing its financial statements.

The financial statements are prepared in US dollars and the functional currency of the company is the US dollar. Monetary amounts in these financial statements are rounded to the nearest dollar.

(b) Depreciation

Depreciation on the cost of fixed assets is provided at the following rates to write off the assets over their estimated lives, on a straight line basis:

Long leasehold property 1% per annum Leasehold improvements 2.5% per annum Equipment and fittings 25% per annum Computer equipment 25% per annum Artwork No depreciation is charged Assets with a value in excess of $1,500 have been capitalised.

At the end of each reporting period, the residual values and useful lives of assets are reviewed and adjusted if necessary. In addition, if events or change in circumstances indicate that the carrying value may not be recoverable then the carrying values of tangible fixed assets are reviewed for impairment. No depreciation has been provided on the artwork as the Board consider the net realisable value of the artwork is not less than cost.

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International Psychoanalytical Association Notes to the Financial Statements For the year ended 31 December 2020

(c) Intangible fixed assets

Intangible fixed assets comprise website and software costs. Intangible fixed assets are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised so as to write off the cost or valuation of the assets less their residual values over their useful lives on the following basis:

Website and software costs 25% per annum

Intangible assets with a value in excess of $1,500 have been capitalised.

(d) Fixed assets

Fixed assets are recorded at cost or, in cases where fixed assets have been donated to the Association, at valuation at the time of donation.

(e) Recognition of income

All income is included when the Association has entitlement to the income, there is probability of receipt and the amount can be measured reliably. Bank interest and investment income is recognised on receipt. 98% (2019: 62%) of turnover originates from outside of the UK.

(f) Resources expended

Resources expended are included in the Statement of Financial Activities on an accruals basis. Support costs and governance costs have been allocated against direct charitable expenditure on estimated staff time. Governance costs include audit and legal and professional costs and an estimated proportion of staff and other costs.

(g) Fund accounting

Unrestricted funds comprise general funds and designated funds. General funds are available for use at the Board's discretion in furtherance of the general objectives of the IPA and have not been designated for other purposes.

Designated funds represent unrestricted funds which have been designated by the Board for specific purposes in furtherance of the general objects of the IPA. The charity has two designated funds as detailed in note 9. The long leasehold property and leasehold improvements are separately designated and the trustees have approved a designated Governance & Reorganisation Initiative fund.

(h) Financial instruments

The IPA has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

With the exceptions of prepayments and deferred income all other debtor and creditor balances are considered to be basic financial instruments under FRS 102 measured at amortised cost. See notes 7 and 8 for the debtor and creditor notes.

(j) Hire Purchase and Leasing Commitments

Assets held under hire purchase contracts and finance leases are capitalised in the balance sheet and are

Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

Page 20

International Psychoanalytical Association Notes to the Financial Statements For the year ended 31 December 2020

(k) Pension contributions

The IPA makes contributions to a defined contribution pension scheme which are held in funds completely independent of the IPA. The contributions made by the IPA are charged as expenditure on an accruals basis.

(l) Legal status of the IPA

The IPA is a company limited by guarantee and has no share capital. The members of the IPA are the Board members listed on page 1. In the event of the IPA being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

(m) Foreign currency

Assets and liabilities in foreign currencies are translated into dollars at the balance sheet date. Transactions in foreign currencies are translated into US dollars at the rate of exchange ruling at the date of the transactions. All realised foreign exchange differences are taken to the statement of financial activities.

(n) Cash and cash equivalents

Cash and cash equivalents are represented by cash in hand and cash deposits held with financial institutions with a maturity date of less than three months. Short term investments under current assets are cash deposits with a maturity date greater than three months and less than twelve months.

(o) Critical accounting estimates and areas of judgement

In the application of the IPA's accounting policies, the Board is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting The most significant estimates and assumptions which affect the carrying amount of assets and liabilities in the accounts relate to:

(i) The annual depreciation charge for property, plant and equipment which is sensitive to change in the estimated useful economic lives and residual value of assets. These are reassessed annually and amended where necessary to reflect current circumstances.

(ii) The IPA makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 7 for the net carrying amount of the debtors and associated impairment provision.

Page 21

International Psychoanalytical Association Notes to the Financial Statements For the year ended 31 December 2020

For the year ended 31 December 2020
2
Investment Income
Bank interest on cash deposits		 2020
$
8,285
8,285		 2019
$
23,699
23,699

3(a) Direct Charitable Expenditure

Congress/Asia-Pacific conference
Management and committee costs
Promotion
Participation
Professionalism
Congress/Asia-Pacific conference
Management and committee costs
Promotion
Participation
Professionalism
(b)
Governance Costs
Staff and Other Costs
Audit fees - current year
- prior year under provision
International costs for board meetings
4
Staff Costs
Wages and salaries
Social security costs
Pension costs
Other costs (including casual labour)		 Direct Support 31,711
19,819
59,458
19,819
59,458
190,265
58,378
36,486
109,459
36,486
109,459
350,268
2020
$
48,906
22,086
1,276
117,998
190,265
2020
$
854,221
86,292
122,010
7,805
1,070,328
Governance
Costs (3b)
Governance
Costs (3b)		 2020
$
325,177
309,471
507,268
154,415
524,374
106,962
167,387
81,017
12,331
98,123		 186,504
122,265
366,794
122,265
366,794
465,819
Direct
1,505,970
288,841
106,567
53,663
491,702
2,446,743		 1,164,620
Support
246,766
154,228
462,685
154,228
462,685
1,480,592		 1,820,705
2019
$
1,811,114
479,555
678,711
244,377
1,063,846
4,277,603
2019
$
61,691
20,986
5,139
262,452
350,268
2019
$
860,027
98,462
143,083
86,072
1,187,644

Included in the above figures are termination costs in the year amounting to $nil (2019: $57,993).

Page 22

International Psychoanalytical Association Notes to the Financial Statements For the year ended 31 December 2020

4 Staff Costs (continued)

Average number of employees:
The number of higher paid employees is:
£60,001 - £70,000
£80,001 - £90,000
£90,001 - £100,000
£100,001 - £110,000
£110,001 - £120,000		 2020
14
2020
1
1
-
-
1		 2019
14
2019
-
-
1
1
1

In accordance with the requirements of the Charities SORP the above disclosure concerning higher earning employees has been provided in pounds sterling.

The number of employees earning more than £60,000 for whom pension contributions have been paid in the year is 3 (2019: 3). The total pension contributions paid by the charity for employees earning more than £60,000 was £53,117 (2019: £61,242).

Pensions

The IPA runs a defined contribution group private pension scheme for eligible employees. Contributions payable for the year are charged in the profit and loss account. At the year end pension contributions were outstanding of £1,264 (2019: £28,540).

Directors and key management personnel

The Board of IPA received remuneration during the year of $Nil (2019: $Nil). During the year 24 (2019: 38) Board members received reimbursement of expenses totalling $172,541 (2019: $353,544).

The key management personnel of the IPA comprise of three (2019: three) individuals. Total remuneration of key management personnel during the year was £316,634 including no termination payments (2019: £395,142 including £44,215 in termination payments and related employer's national insurance contributions).

5 Intangible Fixed Assets

Cost
At 1st January 2020
Additions
At 31st December 2020
Amortisation
At 1st January 2020
Charge for the year
At 31st December 2020
Net Book Value
At 31st December 2020
At 31st December 2019		 Software
and website
$
343,848
-
343,848
326,861
8,652
335,513
8,335
16,987

Page 23

International Psychoanalytical Association Notes to the Financial Statements For the year ended 31 December 2020

6 Tangible Fixed Assets

Long Leasehold
Property
$
Cost
At 1st January 2020
2,745,734
Additions
-
Disposals
-
At 31st December 2020
2,745,734
Depreciation
At 1st January 2020
417,762
Charge for the year
24,139
Eliminated on disposal
-
At 31st December 2020
441,901
Net Book Value
At 31st December 2020
2,303,833
At 31st December 2019
2,327,972		 Leasehold
Improvements
$
427,331
-
-
427,331
78,436
9,421
-
87,857
339,474
348,895		 Computer
Equipment
$
79,214
2,755
-
81,969
62,965
7,512
-
70,477
11,492
16,249		 Fixtures
& Fittings
$
52,920
-
-
52,920
48,122
3,188
-
51,310
1,610
4,798		 Artwork
$
28,467
-
-
28,467
-
-
-
-
28,467
28,467		 Total
$
3,333,666
2,755
-
3,336,421
607,285
44,260
-
651,545
2,684,876
2,726,381

Page 24

International Psychoanalytical Association Notes to the Financial Statements For the year ended 31 December 2020

7 Debtors

Trade debtors
Prepayments
Other debtors
Amounts owed by related undertakings		 2020
$
127,771
300,330
39,394
-
467,495		 2019
$
114,527
320,292
-
971
435,790

Trade debtors are stated after provisions for impairment of $32,549 (2019: $31,449).

8 Liabilities: Amounts falling due within one year

Trade creditors
Accruals
Taxation and social security
Other creditors
Amounts due to related undertakings		 2020
$
158,993
69,844
52,547
200,870
39,878
522,132		 2019
$
201,383
189,895
27,043
153,882
-
572,203

HSBC has a first fixed charge over a deposit of $100K for the company use of credit cards.

9 Funds - Unrestricted

Balance at 1st January 2020
Income
Expenditure
Transfers
Balance at 31st December 2020
Balance at 1st January 2019
Income
Expenditure
Transfers
Balance at 31st December 2019		 $
130,879
Governance &
Reorganisation
Initiatives		 General
$
2,467,234		 Designated
Property
$
2,676,867
-
-
(33,559)
2,643,307
Designated
$
2,710,062
-
-
(33,195)
2,676,867		 2020
$
5,274,980
2,416,208
(1,820,705)
-
-
(5,970)
-		 2,416,208
(1,814,735)
33,559
124,909
$
240,974
-
(110,095)
-
130,879
Governance &
Reorganisation
Initiatives		 3,102,267
General
$
2,663,167
3,938,380
(4,167,508)
33,195
2,467,234		 5,870,484
2019
$
5,614,203
3,938,380
(4,277,603)
-
5,274,980

Page 25

International Psychoanalytical Association Notes to the Financial Statements For the year ended 31 December 2020

Designated Funds

The designated property fund represents the value of the long leasehold property (including leasehold improvements) owned by the IPA (see note 6). This fund was created as the funds relating to the property do not form part of the free reserves of the IPA. The transfer in the year is to align the fund to the net book value of the central London property owing to depreciation charged in the year.

A new designated fund was established during 2018 to set aside the costs of the multi-year programme of the governance and reorganisation review. This review was expected to take place over three years from mid 2018, however a number of reviews are still in progress and delayed due to the COVID-19 pandemic hence the programme period has been extended with expected completion over the next 2 years. Costs of £5,970 (2019: £110,095) were incurred during the year.

10 Analysis of net assets between funds

Unrestricted funds
General Fund
Designated Fund
- Property
- Governance & Reorganisation Initiatives
Total Funds
Unrestricted funds
General Fund
Designated Fund
- Property
- Governance & Reorganisation Initiatives
Total Funds		 Tangible and
intangible
assets
$		 Other net
current assets
$
3,052,363
-
124,909
3,177,272
Other net
$ 2,400,733
-
130,879
2,531,612		 Total 2020
$
3,102,267
2,643,307
124,909
49,904
2,643,307
-
2,693,211
Tangible and
$ 66,501
2,676,867
-
2,743,368		 5,870,483
Total 2019
$ 2,467,234
2,676,867
130,879
5,274,980

Page 25

International Psychoanalytical Association Notes to the Financial Statements For the year ended 31 December 2020

11 Future financial commitments - lease obligations

At the reporting end date the charity had the following future minimum lease payments under noncancellable operating leases which fall due as follows:

Within 1 year
Two - 5 years		 Other
2020
$
1,507
1,342
2,849		 Other
2019
$
1,460
2,764
4,224

Lease expenses recognised in the year totalled $1,507 (2019: $1,460).

12 Connected organisations IPA Fund

The IPA works in close co-operation with an independent US - charity - IPA Fund Inc. (a 501(c)(3) company) - which has similar objectives with the IPA. IPA Fund is a related party to IPA as each Board has a number of common directors. No donations were made from the IPA to the IPA Fund (Delaware) during he year ended 31 December 2020 nor in the preceding year. At the 31 December 2020 International Psychoanalytical Association owed the IPA Fund (Delaware) amounts totalling $39,878 (2019: amounts due from the IPA Fund (Delaware) to International Psychoanalytical Association of $971).

International Psychoanalytical Studies Organisation (IPSO)

IPSO is a special body independent of the International Psychoanalytical Association (IPA), however in order to provide cover for the IPSO Executive Committee against liability to IPA or any third party for any act or omission in a corporate capacity, IPSO required a legal framework within which it could operate. This was provided by IPA under the Liability and Indemnification provisions within IPA's Rules.

IPA provide accounting services to IPSO and its bank accounts are held in the name of IPA despite this balances belonging to IPSO. As part of the mandate setting out of the terms of this arrangement IPA are required to maintain a regularly updated balance sheet of IPSO assets held by IPA, the balances due to and from IPSO at the balance sheet date were as follows:

Bank accounts held on behalf of IPSO and included in cash at bank
Owed by IPA to IPSO and included in other creditors		 2020
$ 198,398
198,398		 2019
$ 139,834
139,834

E Journal

E Journal is a Uruguayan incorporated entity, which is jointly controlled by IPA and 3 other parties, each holding a 25% stake. E Journal has been established to more easily settle liabilities with South American countries.

Page 26

International Psychoanalytical Association Notes to the Financial Statements For the year ended 31 December 2020

E Journal (continued)

E Journal has not yet been able to open its own bank account so IPA collects its income and pays its expenses through the IPA bank accounts. The balance owed to E Journal at the year end of $626 (2019: $829) sits in other creditors.

13 Capital Commitments

The charity has no capital commitments as at 31 December 2020 (2019: $Nil).

14 Reconciliation of net expenditure to net cash flow from operating activities

Net expenditure
Adjustments for:
Depreciation charges
Amortisation charges
Investment income
Impairment of property
Profit on sale of assets held for sale
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Net cash provided by/(used in) operating activities		 2020
$
595,503
44,260
8,652
(8,285)
-
-
(31,705)
(50,071)
558,355		 2019
$
(339,223)
64,414
14,957
(23,699)
-
1,512
349,011
(51,583)
15,389

Page 27