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2021-12-31-accounts

International Psychoanalytical Association

Charity No. 1071752 Company No. 03496765

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

International Psychoanalytical Association

International Psychoanalytical Association Board, Advisers, Legal and Administrative Information

Board Members - Officers

Dr Harriet Wolfe - President Dr Adriana Prengler - Vice President Dr Henk Jan Dalewijk - Treasurer

Board members

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 Sue Kolod Dr Juan Francisco Artaloytia Dra Claudia Lucia Borensztejn Professor Lesley Kathleen Caldwell Dr Paula Ellman Dr Eduardo Gastelumendi Mariano Marcos Horenstein Dr Jonathan House Dr Dimitris James Jackson Dr Britt-Marie Schiller Dra Conceicao Tavares De Almeida Dr Randi Wirth

Senior management team

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

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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 6th Floor, 9 Appold Street, London EC2A 2AP

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

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International Psychoanalytical Association

Board Report for the year ended 31 December 2021

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 2021.

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.

The President is the IPA’s Chief Executive Officer and spokesperson and is responsible for the execution of the Board’s orders. In consultation with the Board the President appoints the personnel of IPA Committees, task forces and other special IPA bodies.

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International Psychoanalytical Association

Board Report for the year ended 31 December 2021

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.

Going Concern

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 lasting effects of the COVID-19 pandemic and the ongoing cost of living crisis 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 the cost of living crisis, and have prepared 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.

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International Psychoanalytical Association

Board Report for the year ended 31 December 2021

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 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:

The IPA’s operating model has been adapted for use in the post-COVID-19 environment.

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.

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International Psychoanalytical Association

Board Report for the year ended 31 December 2021

IPA Remuneration Policy

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

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’

During the year, the IPA welcomed a new administration into office. Reflecting on the successful work of the previous administration and the charity’s commitment to its mission, four strategic areas were adopted to guide the main focus of activities:

IPA in the World

The expansion of “IPA in the Community” to “IPA in the Community and the World”; including integration of overlapping efforts of existing committees and the development of new committees. This will include:

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International Psychoanalytical Association

Board Report for the year ended 31 December 2021

Communication

The IPA will continue the ground-breaking work of previous communications committees with particular focus on (1) our external audience (mental health professionals and the public); (2) our internal audience (members and analysts-in-training); and (3) full and understandable scientific communication. The aim is to enhance communication that will enrich psychoanalytic practice and create a space for production and implementation of new ideas.

Distance Analysis and Training

The IPA faces complex policy decisions related to the conduct of analysis through technology and the conduct of analytic training through technology. A number of views exist; some feel it is essential to have an embodied experience of the other to have a deep experience of the psychoanalytic method; others feel that distance analysis via videoconference is different but can also be transformative and that it serves the needs of eager potential analysts in otherwise inaccessible areas; a third view is that a hybrid model would allow the practical need for a primarily technological experience to be augmented by in person experiential components. A key focus of this administration is to reconcile these views.

Vitality and Unity in the IPA

Many Societies have reported concern that fewer members are motivated to take on leadership responsibilities of their Society. The IPA will investigate the possible causes of declining engagement, including structural issues that make volunteer activities more difficult – like having young children, or making less income than before, or enjoying less prestige in a world that thinks other forms of therapy are quicker and therefore preferable.

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

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International Psychoanalytical Association

Board Report for the year ended 31 December 2021

publication of specialist books through a partnership with Routledge. 2021 also saw our Biennial Congress take place online (due to COVID-19 travel restrictions) and attended by over 2,000 people, clear evidence of our attempts to meet the growing demand for an international approach to the spread of psychoanalytic knowledge.

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

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 took place in July 2021 with the same programme. The new Congress format presented the IPA an opportunity to reach a new and wider audience. This was the first large online event organised by the IPA and was a success with over 2,000 registrants.

4[th] Asia-Pacific Conference 2023

Following postponement due to the COVID-19 pandemic, the IPA’s 4[th] Asia-Pacific Conference is now scheduled to commence in January 2023. The event will take place in New Delhi, India. The conference is designed to explore notions of diversity and difference through their resonances with psychoanalytic practice and theory in the clinic and in the community.

IPA Congress 2023

The 53[rd] IPA Congress is scheduled to take place in Cartagena, Colombia in July 2023. The Board is currently planning for a large in-person event, however contingency plans for both hybrid and online events are in place in case of travel disruption due to a resurgence of the COVID-19 pandemic. The theme of the Congress is Mind in the Line of Fire.

Financial Review

During 2021 there was a net increase in reserves carried forward of $819,346 (2020: increase $595,503).

Key contributors to the 2021 surplus were:

Membership income (‘Dues’) increased in the year. The total Dues received in 2021 was $2,749,593 against $2,390,048 received in 2020. Dues income represents the Dues from a total membership of 12,374 (2020: 12,594). The increase was a direct result of Dues increases implemented in the year.

During the year and as a continued response to the COVID-19 pandemic, the IPA set up an Extraordinary 2021 COVID-19 Dues Relief Programme to provide in-year Dues relief to those

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International Psychoanalytical Association

Board Report for the year ended 31 December 2021

members most affected by the pandemic. The Programme granted $125,159 of additional Dues relief (2020: $129,308).

Travel restrictions caused by the COVID-19 pandemic continued in 2021 resulting in most IPA committee meetings moving online. Most restrictions have been lifted in 2022 therefore the expectation is that committee expenditure will increase in 2022 in line with budgets.

The IPA held cash and short term investments at the end of the year of $4,195,880 (2020: $3,231,910). In 2021 78% of these cash reserves were held in $US (2020: 57%). The increase in cash reserves is the result of the reduction in expenditure on charitable activities due to the COVID-19 pandemic.

Total Reserves are 17% 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 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 $6,689,829 (2020: $5,870,483).

The Trustees have reviewed the reserves policy and believe:

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International Psychoanalytical Association

Board Report for the year ended 31 December 2021

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 has affected 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.

Post Year-end Reserves

In March 2022, the IPA set-up a new Reserve from its general funds of up to $100,000 to support its Ukrainian members and candidates affected by the war in Ukraine. The support includes direct displacement and resettlement grants, and financial support for those running aid projects that assist Ukrainian members or candidates.

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:

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International Psychoanalytical Association

Board Report for the year ended 31 December 2021

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.

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

…………...…………………………. Dr Wolfe, President and Director

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

Date: 9[th] July 2021

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International Psychoanalytical Association

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF INTERNATIONAL PYSCHOANALYTICAL ASSOCIATION FOR YEAR ENDED 31 DECEMBER 2021

Opinion

We have audited the financial statements of International Psychoanalytical Association (‘the charitable company’) for the year ended 31 December 2021 which comprise the Statement of Financial Activities (including the Summary Income and Expenditure Account), the Balance Sheet, the 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:

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 relevant sections of this report.

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 contained within the annual 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 there is 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.

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International Psychoanalytical Association

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF INTERNATIONAL PYSCHOANALYTICAL ASSOCIATION FOR YEAR ENDED 31 DECEMBER 2021

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

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 trustees’ 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:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on pages 10 and 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 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.

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

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International Psychoanalytical Association

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF INTERNATIONAL PYSCHOANALYTICAL ASSOCIATION FOR YEAR ENDED 31 DECEMBER 2021

involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

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

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.

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:

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International Psychoanalytical Association

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF INTERNATIONAL PYSCHOANALYTICAL ASSOCIATION FOR YEAR ENDED 31 DECEMBER 2021

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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

29 September 2022

[Date] 29 September 2022

epnseon

9 Appold Street London EC2A 2AP

Page 15

International Psychoanalytical Association Statement of Financial Activities (including an income and expenditure account) For the year ended 31 December 2021

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 Income
Transfers between funds
Net movement in funds
Funds brought forward at 1st January
9
Funds carried forward at 31st December
9		 2021
$
598,420
2,749,593
12,717
2,083
33,266
3,396,079
2,576,733
2,576,733
819,346
-
819,346
5,870,483		 2020
$
-
2,390,048
-
8,285
17,875
2,416,208
1,820,705
1,820,705
595,503
-
595,503
5,274,980
5,870,483
6,689,829

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.

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International Psychoanalytical Association Balance Sheet As at 31 December 2021

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		 2021
$
2,673
2,657,024
2,659,697
326,821
710,850
3,485,030		 2020
$
8,335
2,684,876
2,693,211
467,494
708,809
2,523,101
4,522,701
(492,569)
4,030,132
6,689,829
3,955,174
2,734,655
6,689,829		 3,699,404
(522,132)
3,177,272
5,870,483
3,102,267
2,768,216
5,870,483

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 9th July 2022

….....……..…………………………….

Dr. Wolfe, President

….....……..…………………………….

Dr Henk Jan Dalewijk, Treasurer

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

Companies House Number: 3496765

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International Psychoanalytical Association Statement of Cash Flows For the year ended 31 December 2021

Cash flow from operating activities
Net cash provided by operating activities
Cash flow from investing activities
Investment income - bank interest
Purchase of tangible fixed assets
Net cash provided by 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		 2021
$
977,771
2,083
(15,885)
(13,802)
963,970
3,231,910
4,195,880		 2020
$
558,355
8,285
(2,755)
5,530
563,885
2,668,025
3,231,910
Analysis of cash and cash equivalents
Cash at bank and in hand
Short Term Investments
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-21
$
3,231,910
-
-
3,231,910		 2021
$
3,383,967
710,850
101,063
4,195,880
Cash Flows
$
963,970
-
-
963,970		 2020
$
2,422,039
708,809
101,062
3,231,910
31-Dec-21
$
4,195,880
-
-
4,195,880

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International Psychoanalytical Association Notes to the Financial Statements For the year ended 31 December 2021

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 and cost of living crisis, on its membership income and conference income. 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 2021

(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% (2020: 98%) 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.

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International Psychoanalytical Association Notes to the Financial Statements For the year ended 31 December 2021

(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 2021

For the year ended 31 December 2021
2
Investment Income
Bank interest on cash deposits		 2021
$
2,083
2,083		 2020
$
8,285
8,285

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
668,534
197,013
82,317
10,866
144,888
1,103,618
Direct
106,962
167,387
81,017
12,331
98,123
465,819		 Support
232,879
145,549
436,398
145,551
436,649
1,397,026
Support
186,504
122,265
366,794
122,265
366,794
1,164,620		 12,682
7,926
23,778
7,925
23,778
76,089
31,711
19,819
59,458
19,819
59,458
190,265
2021
$
51,681
23,111
1,297
-
76,089
2021
$
921,630
98,160
131,438
17,282
1,168,510
Governance
Costs (3b)
Governance
Costs (3b)		 2021
$
914,095
350,488
542,493
164,342
605,315
2,576,733
2020
$
325,177
309,471
507,268
154,415
524,374
1,820,705
2020
$
48,906
22,086
1,276
117,998
190,265
2020
$
854,221
86,292
122,010
7,805
1,070,328

Page 22

International Psychoanalytical Association Notes to the Financial Statements For the year ended 31 December 2021

4 Staff Costs (continued)

Staff Costs (continued)
Average number of employees:
The number of higher paid employees is:
£60,001 - £70,000
£70,001 - £80,000
£80,001 - £90,000
£110,001 - £120,000
£120,001 - £130,000		 2021
13
2021
-
1
1
-
1		 2020
14
2020
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 (2020: 3). The total pension contributions paid by the charity for employees earning more than £60,000 was $57,174 (2020: $51,763).

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 $6,930 (2020: $1,264).

Directors and key management personnel

The Board of IPA received remuneration during the year of $Nil (2020: $Nil). During the year 5 (2020: 24) Board members received reimbursement of expenses totalling $18,561 (2020: $172,541).

The key management personnel of the IPA comprise of three (2020: three) individuals. Total remuneration of key management personnel during the year was $485,931 including £Nil termination payments (2020: $439,808 including £nil in termination payments) and related employer's national insurance contributions.

5 Intangible Fixed Assets

Cost
At 1st January 2021
Additions
At 31st December 2021
Amortisation
At 1st January 2021
Charge for the year
At 31st December 2021
Net Book Value
At 31st December 2021
At 31st December 2020		 Software
and website
$
343,848
-
343,848
335,513
5,662
341,175
2,673
8,335

Page 23

International Psychoanalytical Association Notes to the Financial Statements For the year ended 31 December 2021

6 Tangible Fixed Assets

Long Leasehold Leasehold
Computer
Fixtures
Property
Improvements
Equipment
& Fittings
$
$
$
$
Cost
At 1st January 2021
2,745,734
427,331
81,969
52,920
Additions
-
-
15,885
-
Disposals
-
-
(2,513)
-
At 31st December 2021
2,745,734
427,331
95,341
52,920
Depreciation
At 1st January 2021
441,901
87,857
70,477
51,310
Charge for the year
24,139
9,422
9,371
804
Eliminated on disposal
-
-
(2,512)
-
At 31st December 2021
466,040
97,279
77,336
52,114
Net Book Value
At 31st December 2021
2,279,694
330,052
18,005
806
At 31st December 2020
2,303,833
339,474
11,492
1,610
Debtors
Trade debtors
Prepayments
Other debtors
Amounts owed by related undertakings
Trade debtors are stated after provisions for impairment of $97,440 (2020: $32,549).
Liabilities: Amounts falling due within one year		 Long Leasehold Leasehold
Computer
Fixtures
Property
Improvements
Equipment
& Fittings
$
$
$
$
Cost
At 1st January 2021
2,745,734
427,331
81,969
52,920
Additions
-
-
15,885
-
Disposals
-
-
(2,513)
-
At 31st December 2021
2,745,734
427,331
95,341
52,920
Depreciation
At 1st January 2021
441,901
87,857
70,477
51,310
Charge for the year
24,139
9,422
9,371
804
Eliminated on disposal
-
-
(2,512)
-
At 31st December 2021
466,040
97,279
77,336
52,114
Net Book Value
At 31st December 2021
2,279,694
330,052
18,005
806
At 31st December 2020
2,303,833
339,474
11,492
1,610
Debtors
Trade debtors
Prepayments
Other debtors
Amounts owed by related undertakings
Trade debtors are stated after provisions for impairment of $97,440 (2020: $32,549).
Liabilities: Amounts falling due within one year		 Long Leasehold Leasehold
Computer
Fixtures
Property
Improvements
Equipment
& Fittings
$
$
$
$
Cost
At 1st January 2021
2,745,734
427,331
81,969
52,920
Additions
-
-
15,885
-
Disposals
-
-
(2,513)
-
At 31st December 2021
2,745,734
427,331
95,341
52,920
Depreciation
At 1st January 2021
441,901
87,857
70,477
51,310
Charge for the year
24,139
9,422
9,371
804
Eliminated on disposal
-
-
(2,512)
-
At 31st December 2021
466,040
97,279
77,336
52,114
Net Book Value
At 31st December 2021
2,279,694
330,052
18,005
806
At 31st December 2020
2,303,833
339,474
11,492
1,610
Debtors
Trade debtors
Prepayments
Other debtors
Amounts owed by related undertakings
Trade debtors are stated after provisions for impairment of $97,440 (2020: $32,549).
Liabilities: Amounts falling due within one year		 Computer
Equipment
$		 Computer
Equipment
$		 Fixtures
& Fittings
$		 Fixtures
& Fittings
$		 Artwork
$		 Total
$
2,745,734
-
-
2,745,734
441,901
24,139
-
466,040
2,279,694
2,303,833		 427,331
-
-
427,331
87,857
9,422
-
97,279
330,052
339,474		 81,969
15,885
(2,513)
95,341
70,477
9,371
(2,512)
77,336
18,005
11,492		 52,920
-
-
52,920
51,310
804
-
52,114
806
1,610		 28,467
-
-
28,467
-
-
-
-
28,467
28,467		 3,336,421
15,885
(2,513)
3,349,793
651,545
43,736
(2,512)
692,769
2,657,024
2,684,876
2021
$		 2020
$
216,238 127,771
94,733 300,330
15,850 39,393
- -
326,821 467,494
Trade creditors
Accruals
Taxation and social security
Other creditors
Amounts due to related undertakings		 2021 2020
$ $
94,724 158,993
58,228
18,127
270,132
51,358		 69,844
52,547
200,870
39,878
492,569
522,132

7 Debtors

8

2021 2020
$ $
Trade creditors 94,724 158,993
Accruals 58,228 69,844
Taxation and social security 18,127 52,547
Other creditors 270,132 200,870
Amounts due to related undertakings 51,358 39,878
492,569 522,132

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

Page 24

International Psychoanalytical Association Notes to the Financial Statements For the year ended 31 December 2021

9 Funds - Unrestricted

Balance at 1st January 2021
Income
Expenditure
Transfers
Balance at 31st December 2021
Balance at 1st January 2020
Income
Expenditure
Transfers
Balance at 31st December 2020		 $
124,909
-
-
-
124,909
Governance &
Reorganisation
Initiatives
Governance &
Reorganisation
Initiatives		 General
$
3,102,267
3,396,079
(2,576,733)
33,561
3,955,174
General		 Designated
Property
$
2,643,307
-
-
(33,561)
2,609,746
Designated		 2021
$
5,870,483
3,396,079
(2,576,733)
-
6,689,829
2020
$
130,879
-
(5,970)
-
124,909		 $
2,467,234
2,416,208
(1,814,735)
33,559
3,102,267		 $
2,676,866
-
-
(33,559)
2,643,307		 $
5,274,979
2,416,208
(1,820,705)
-
5,870,483

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 $0 (2020: $5,970) were incurred during the year.

10 Analysis of net assets between funds

Unrestricted funds
General Fund
Designated Fund
- Property
- Governance & Reorganisation Initiatives
Total Funds		 Tangible and
intangible
assets
$
49,951
2,609,746
-
2,659,697		 Other net
current assets
$
3,905,223
-
124,909
4,030,132		 Total 2021
$
3,955,174
2,609,746
124,909
6,689,829

25

International Psychoanalytical Association Notes to the Financial Statements For the year ended 31 December 2021

10 Analysis of net assets between funds (continued)

Comparative Information: Analysis of net assets between funds 2020

Unrestricted funds
General Fund
Designated Fund
- Property
- Governance & Reorganisation Initiatives
Total Funds		 Tangible and
Intangible
Assets
$
49,904
2,643,307
-
2,693,211		 Other net
current assets
$
3,052,363
-
124,909
3,177,272		 Total 2020
$
3,102,267
2,643,307
124,909
5,870,483

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
2021
$
1,326
-
1,326		 Other
2020
$
1,507
1,342
2,849

Lease expenses recognised in the year totalled $1,754 (2020: $1,507).

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 2021 nor in the preceding year.

At the 31 December 2021 International Psychoanalytical Association owed the IPA Fund (Delaware) amounts totalling $51,358 (2020:$39,878).

26

International Psychoanalytical Association Notes to the Financial Statements For the year ended 31 December 2021

12 Connected organisations (continued)

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		 2021
$ 263,097
263,097		 2020
$ 198,398
198,398

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.

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

13 Capital Commitments

The charity has no capital commitments as at 31 December 2021 (2020: $Nil).

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

Net expenditure
Adjustments for:
Depreciation charges
Amortisation charges
Investment income
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Net cash provided by operating activities		 2021
$
819,346
43,736
5,662
(2,083)
140,673
(29,563)
977,771		 2020
$
595,503
44,260
8,652
(8,285)
(31,705)
(50,071)
558,355

27