**Registered number: 01365343 Charity number: 1077006**
## **BASIS REGISTRATION LIMITED**
**(A company limited by guarantee)**
**TRUSTEES' REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2020**
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **CONTENTS**
||Page|
|---|---|
|**Reference and administrative details of the Charity, its Trustees and advisers**|1|
|**Trustees' report**|2 - 6|
|**Independent auditors' report on the financial statements**|7 - 10|
|**Statement of financial activities**|11|
|**Balance sheet**|12|
|**Statement of cash flows**|13|
|**Notes to the financial statements**|14 - 26|
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2020**
**Trustees** Mr D W A Burgess, Chair (appointed 23 July 2020) Mrs M May, Treasurer and Vice Chair Mr D J Bench, Trustee (appointed 23 July 2020) Dr S Bolton (resigned 23 July 2020) Mr D L Cairns, Trustee Mr C E Clarke (resigned 23 July 2020) Rev G J Dodgson, Trustee Mrs S A Everett, Trustee Mr R Fenwick, Trustee (appointed 7 February 2020) Mr C Godwin, Trustee (appointed 7 February 2020) Mrs E Hamer, Trustee Mrs J Hewitt (appointed 7 February 2020) Mrs S F Melrose, Trustee Ms S J Mukherjee (resigned 23 July 2020) Prof J Moverley, Trustee Mr C Sprigg, Trustee Mr P J Taylor, Trustee Mrs S Twining, Trustee (appointed 23 July 2020) Mr C W Wright Mr A S Richardson (resigned 23 July 2020)
**Company registered number** 01365343 **Charity registered number** 1077006 **Registered office** St Monica's House 39 Windmill Lane Ashbourne Derbyshire DE6 1EY **Company secretary** Mr SP Jacob **Chief executive officer** Mr SP Jacob **Independent auditors** Smith Cooper Audit Limited Chartered Accountants St Helen's House King Street Derby DE1 3EE
Page 1
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Structure, governance and management**
## _Governing document_
The charity is controlled by its governing document, the Articles of Association, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
## _Risk management_
The Trustees identify and regularly review the risks to which the charity is exposed and ensure that controls are in place to provide appropriate and reasonable assurance against fraud and error.
There are individual Trustees nominated to provide over-sight on all matters pertaining to Human Resources, Pensions and Health and Safety.
BASIS, through its external Chartered Accountant, produces monthly income and expenditure accounts and balance sheets comparing performance against budget; the annual financial statements are externally audited.
The reserves of the charity are cautiously invested in a mix of retail funds, using external professional advice.
## _Board members_
There were five changes to the membership of the Board of Trustees in 2020 and four resignations.
## _Committee structure_
The Committees are:
- The FACTS Advisory Committee
- The Finance and Remuneration Committee
- The Logistics Committee
- The Professional Standards Committee
- The PROMPT Committee
- The Northern Ireland Committee
- The Membership Committee
All the above Committees meet on a number of occasions in the year and their proceedings are formally minuted and reported to the Board.
## _Public Benefit_
In setting our activities and planning our activities our Trustees have given careful consideration to the Charity Commission's public benefit guidance.
Our main activities and who we try to help are described below. All our charitable activities focus on helping British agriculture, the amenity industry, horticulture and forestry by raising standards through establishing best practice within the plant protection industries with a focus on the sale and supply, safe storage and transport of professional plant protection products and a recognised means of assessing staff working in the sector.
The benefits of the work of BASIS are the education of future and current agronomists, the management of wellcrafted and delivered Continuing Professional Development schemes for agronomists, plant nutrition advisers and professional pest controllers and the auditing of distributor and manufacturer’s professional plant protection products storage premises.
Establishing best practise in the use, sale and distribution of Professional Plant Protection Products encourages the uptake of alternatives to professional plant protection products, use of integrated approaches (e.g. Integrated Pest Management (IPM) and Integrated Farm Management (IFM)). The benefits of which are the protection of public, operator and consumer health and reduced impact of professional plant protection products on biodiversity, water and the environment.
Page 2
## **BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Objectives and activities**
The purpose of BASIS is to benefit the public by advancing standards in the advice and use of professional plant protection products and plant nutrition throughout the United Kingdom for the safety of the public and the environment to promote and encourage improved standards, the safe and efficient distribution, contract application, handling and storage of Plant Protection Products, techniques and technology, molecular technology, biotechnology, plant nutrition, bio-pesticide products and in the advice and usage of such products in agriculture, horticulture, forestry, industrial, public health and other relevant industry sectors.
We do this by providing advanced education for professional advisers and farmers in agriculture, horticulture and related industries with the objective of raising standards in the following:
- the advice and use of professional plant protection products and fertilisers in agriculture and horticulture
- the advice and use of products for the control of pests in industrial, food preparation, food storage and domestic premises
- the advice and use of herbicides for weed control on roads, railways, sports grounds and other public and private spaces
- the promotion of Integrated Pest Management (IPM) techniques within the UK’s National Action Plan framework for action to achieve the sustainable use of pesticides
## Our activities include:
- organising education and training programmes up to and including Quality Assurance Agency (QAA) level 7 (including BASIS Diploma in Crop Protection)
- the creation and maintenance of a portfolio of examinations which are accredited through QAA for higher education and are regularly updated
- the organisation and provision of examinations for advisors throughout the United Kingdom
We have established and maintain Professional Registers for advisors to join and maintain their Professional Register status through Continuing Professional Development.
BASIS also seeks to advance education and professional standards in the storage and distribution of professional plant protection products and fertilisers. We do this by providing training programmes for store keepers, by operating a statutorily-recognised store inspection scheme and conducting annual store inspections.
In seeking to raise standards we work with government departments including DEFRA, Fire Authorities, the Environment Agency and various industry organisations.
## **Achievements and performance**
## _Overview_
As a designated awarding body responsible for implementing training and certification for those involved in land management, BASIS promotes Integrated Pest Management (IPM) in all settings and across all aspects of its charitable reach. We believe that training and professional development is the key stone to delivering successful IPM programmes. All our training modules have IPM as a core element and we include assessment of candidates against its principles.
During 2020 the BASIS Trustee Board and Executive developed, and initiated, a 5-year strategy to assist its members, and wider stakeholders, to be equipped to deliver advice as the farming sector enters a 7-year transition away from EU-based rules. The strategy supports its members to progress towards a system in which farmers are paid to improve the environment, improve animal health and welfare, and reduce carbon emissions.
## _Storage and Distribution_
During 2020, BASIS inspected 562 (2019 - 579) registered Plant Protection Product stores, of which 98% (201999.6%) reached the required standard.
Additionally, BASIS provides independent annual onsite and remote audits to verify that professional use rodenticides are only sold to certified users meeting the point of sale requirements for the Campaign for Responsible Rodenticide Use (CRRU). 695 premises received point of sale audits in 2020 (2019 - 596). Annual assessment for amenity contractors resulted in 82 Amenity Assured Contractors (2019 - 88) being
Page 3
**BASIS REGISTRATION LIMITED**
**(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020**
audited and 191 Lawn Assured Scheme members being audited in 2020 (2019 – 167).
## _Training and Education_
Advancing education is a key charitable objective. In 2020, 1,537 individuals benefitted directly from BASIS training and assessment. Additionally, 24 agronomists were awarded the BASIS Diploma in Crop Protection - our highest award, bringing the total number of agronomists with the Diploma to 321.
Much effort was made during the year to prepare the training syllabuses to reflect legislative changes following EU exit. Additionally, all of our training modules successfully underwent a re-validation exercise in May 2020. Revalidation ensures our provision continues to offer appropriate learning opportunities and outcomes, currency of curriculum and takes account of delivery experiences and feedback from students.
Continuing Professional Development (CPD) and the Professional Registers Numbers on the BASIS Professional Register stood at 5,641 (2019 - 5,889) at the end of 2020. 4,455 (2019 - 7,200) events were allocated CPD points in 2020 with almost all CPD activity moving online. BASIS itself introduced an online CPD portal, BASIS Classroom, which hosts CPD training events created by industry for the BASIS Professional Register membership.
FACTS Qualified Adviser membership stood at 3,342 (2019 - 3,532) and FACTS Subscribers stood at 493 (2019 - 270) paid up members at the end of 2020. An assessment for all FACTS Qualified advisers (FQAs) continued to provide demonstrable quality assurance of professional standards and is now an established compulsory annual membership requirement for FQAs to maintain their status. The theme of the 2021/22 annual assessment will be ‘Ways of improving fertiliser (mineral and organic) application accuracy’ which assesses the requirement for calibration and tray testing of fertiliser and manure spreaders and an evaluation of the yield and financial costs of inaccurate application.
## _PROMPT and Amenity Registers_
During the year PROMPT membership remained largely unchanged at 5,282 (2019 - 5,364) and members of the BASIS Amenity Training Register reduced to 143 (2019 - 347).
## **Financial review**
## _Reserves_
In keeping with the Charities Commission guidance on reserves, the Board of BASIS has a policy to hold unrestricted reserves, in order to ensure the continued activities of the company in times of reduced income. The policy, agreed in 2009, was to hold at least six months of the cost of running the business in reserves to meet unexpected demands on the charity which for 2020 is at least £750k. Currently, unrestricted reserves are £1,047,168 representing 72% of the total resources expended in 2020 (2019: 67%). The reserves policy is reviewed annually.
## _Income_
Total income from the charitable activities of BASIS remained almost unchanged at £1,438,497 in 2020. Growth in registration fees offset a decrease in examination and training income due to the effect of the restrictions to movement in Q2 and Q3 in response to the Covid-19 pandemic leading to fewer candidates receiving training and assessment.
The charity received Job Retention Scheme grant funding of £40,061 in 2020.
All funds have been allocated to support charitable and general operational expenditure.
## _Costs_
Total expenditure decreased by £80,539 - a decrease of 5% from 2019 as expenditure reduced broadly commensurate with the income.
In response to increased efficiency in internal processes, and a contraction of trading activities during the Covid19 pandemic, a full review of the business needs and organisational requirements was undertaken. The subsequent organisational restructure resulted in a reduction in administration staff from eleven to seven and a
Page 4
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020**
renewed focus on building a multi-skilled team capable of working across all departments.
The year saw a continuation of a major project, BASIS 2020, to upgrade our digital operations. A decision was made early in the year to accelerate the programme to support our membership by digitising key services and presenting them in covid secure formats.
Our staff are key to the success of the project and a programme of training is underway to develop our team to ensure that BASIS continues to meet its charitable objectives and thereby benefit the industry that it serves.
Salaries form the single largest element of expenditure. A Technical Manager was appointed during the year. Average full-time equivalent staff numbers reduced to 19 during 2020.
## _Investments_
The majority of BASIS reserves are held as investments; these increased by £25,701 in the year.
## _Risks_
An annual risk management review helps identify and manage issues that could impair our ability to achieve our charitable objectives or adversely impact the organisation in other ways.
Trustees are ultimately responsible for risk management and the BASIS Finance and Remuneration committee oversees the Risk Register which records issues and tracks how they are addressed on an ongoing basis.
## _Health and Safety_
The health and safety of our staff, volunteers, tenants and visitors is paramount. An internal Health and Safety Committee, an external consultant together with a named Trustee oversee activity in this area.
## _Our People_
The Board is grateful for the dedication of the BASIS staff, who have, again, worked hard to provide a service to members, the industry and the wider public.
## _Tangible Fixed Assets_
Following an independent valuation of St Monica's House dated 10 March 2020 its value was restated to market value as at 31 December 2019. The next tri-annual valuation is due to take place in 2023.
## **Statement as to disclosure of information to auditors**
In so far as the trustees are aware:
- there is no relevant audit information of which the charitable company's auditors are unaware; and
- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
## **Plans for future periods**
The charity intends to develop the business to continue to meet its objectives and the future demands of the UK agricultural, horticultural and allied industries.
## **Trustees' responsibilities statement**
The trustees, who are also directors for the purposes of company law, are responsible for preparing the trustees' 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 charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.
Page 5
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Covid 19**
The introduction of new processes has enabled BASIS to continue to offer its audits, training and professional development products and services in covid secure formats. This rapid adoption of video conferencing software and online proctoring services has been pivotal in enabling the charity to continue to meet its objects and maintain quality assurance standards.
The BASIS Board of Trustees operate a register to identify and manage risks and plan mitigating actions. The response to counter the effects on the charity’s objects from a pandemic are to build and maintain sufficient reserves. Accordingly, the charity is financially stable enough to meet its obligations and continue its business for the foreseeable future.
With further implementation of digital processes, and the continued launch of digital assets to support our members expected to continue throughout 2021, there is every expectation that BASIS will endure and deliver on its aims and activities over the next 12 months.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the applicable Charities SORP;
- make judgments and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
- charity will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Auditor**
A resolution to reappoint Smith Cooper Audit Limited as auditor for 2021 will be put to the Annual General Meeting.
## **Small company provisions**
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
Approved by order of the members of the board of Trustees on 28 April 2021 and signed on their behalf by:
## **Mr SP Jacob**
Company Secretary
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**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BASIS REGISTRATION LIMITED**
## **Opinion**
We have audited the financial statements of Basis Registration Limited (the 'charitable company') for the year ended 31 December 2020 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- 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 Charities Act 2011.
## **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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.
Page 7
**BASIS REGISTRATION LIMITED**
**(A company limited by guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BASIS REGISTRATION LIMITED (CONTINUED)**
## **Other information**
The Trustees are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Auditors' report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
- the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the Trustees' responsibilities statement, 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.
Page 8
**BASIS REGISTRATION LIMITED**
**(A company limited by guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BASIS REGISTRATION LIMITED (CONTINUED)**
## **Auditors' responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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 Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of 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:
- Enquiry of management and those charged with governance around actual and potential litigation and claims;
- Reviewing minutes of meetings of those charged with governance where available;
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
• Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
Page 9
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BASIS REGISTRATION LIMITED (CONTINUED)**
## **Use of our report**
This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
## **Smith Cooper Audit Limited**
Chartered Accountants Statutory auditors St Helen's House King Street Derby DE1 3EE
Date:
Smith Cooper Audit Limited are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
Page 10
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2020**
|**Note**
**Income from:**
Charitable activities
3
Investments
4
**Total income**
**Expenditure on:**
Charitable activities
5
**Total expenditure**
**Net income/(expenditure) before net gains on**
**investments**
Net gains on investments
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Unrestricted**
**funds**
**2020**
**£**
**1,438,497**
**25,701**
**1,464,198**
**1,444,474**
**1,444,474**
**19,724**
**7,140**
**26,864**
**1,020,304**
**26,864**
**1,047,168**|**Total**
**funds**
**2020**
**£**
**1,438,497**
**25,701**
**1,464,198**
**1,444,474**
**1,444,474**
**19,724**
**7,140**
**26,864**
**1,020,304**
**26,864**
**1,047,168**|Total
funds
2019
£
1,476,533
26,038
1,502,571
1,525,013
1,525,013
(22,442)
33,712
11,270
1,009,034
11,270
1,020,304|
|---|---|---|---|
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 14 to 26 form part of these financial statements.
Page 11
## **BASIS REGISTRATION LIMITED (A company limited by guarantee) REGISTERED NUMBER: 01365343**
## **BALANCE SHEET AS AT 31 DECEMBER 2020**
|**Note**
**Fixed assets**
Tangible assets
11
Investments
12
**Current assets**
Stocks
13
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within one
year
15
**Net current liabilities**
**Total net assets**
**Charity funds**
Restricted funds
16
Unrestricted funds
16
**Total funds**|**2,115**
**127,194**
**334,574**
**463,883**
**(562,985)**|**2020**
**£**
**517,803**
**628,467**
**1,146,270**
**(99,102)**
**1,047,168**
**-**
**1,047,168**
**1,047,168**|2,115
116,539
330,756
449,410
(497,516)|2019
£
462,618
605,792
1,068,410
(48,106)
1,020,304
-
1,020,304
1,020,304|
|---|---|---|---|---|
The entity was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
However, an audit is required in accordance with section 144 of the Charities Act 2011.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
## **Mr W Burgess**
(Chair of Trustees) Date:
The notes on pages 14 to 26 form part of these financial statements.
Page 12
## **BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020**
|**Note**
**Cash flows from operating activities**
Net cash generated in operating activities
19
**Cash flows from investing activities**
Dividends, interests and rents from investments
Purchase of tangible fixed assets
Purchase of new investments
**Net cash (used in)/provided by investing activities**
**Cash flows from financing activities**
Repayments of borrowing
**Net cash provided by/(used in) financing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
20|**2020**
**£**
**86,704**
**25,649**
**(93,000)**
**(15,535)**
**(82,886)**
**-**
**-**
**3,818**
**330,756**
**334,574**|2019
£
(25,201)
24,429
(8,385)
(13,307)
**2,737**
(49,653)
**(49,653)**
**(72,117)**
402,873
330,756|
|---|---|---|
The notes on pages 14 to 26 form part of these financial statements
Page 13
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **1. General information**
The charity is a private charitable company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is St Monica's House, 39 Windmill Lane, Ashbourne, Derbyshire, DE6 1EY.
## **2. Accounting policies**
## **2.1 Basis of preparation of financial statements**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Basis Registration Limited meets the definition of a public benefit entity under FRS 102.
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
## **2.2 Going concern**
The Trustees have considered the appropriateness of the going concern basis of the preparation of the financial statements by considering a period of at least 12 months from the date of the approval of these financial statements. The Trustees are of the opinion that there are adequate resources available to continue trading for a period of at least 12 months.
## **2.3 Income**
Register income (Professional Register, FACTS Qualified Adviser and Subscriber schemes and PROMPT) is recognised upon receipt, as any point prior to this the Charity is uncertain of receiving the funds.
All other income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
## **2.4 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Page 14
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **2. Accounting policies (continued)**
## **2.4 Expenditure (continued)**
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
## **2.5 Government grants**
Grants are accounted under the accruals model as permitted by FRS 102. Grants received during the year are recorded as other income and arise from the government job retention scheme.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.
The deferred element of grants is included in creditors as deferred income.
## **2.6 Tangible fixed assets and depreciation**
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Land and Buildings are measured under the revaluation model. After recognition, tangible fixed assets whose fair value can be measured reliably shall be carried at a revalued amount, being their fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Revaluations are made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting date.
Fair values are determined from market-based evidence by appraisal that is normally undertaken by professionally qualified valuers. If there is no market-based evidence of fair value because of the specialised nature of the tangible fixed asset and it is rarely sold, except as part of a contributing business, a Charity may need to estimate fair value using an income or depreciated replacement cost approach.
At each reporting date the Charity assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
Computer equipment
-
33% Straight line
No depreciation is provided for Land and Buildings on the basis of the property having a high residual value. Annual impairment reviews are undertaken.
A full year’s depreciation is provided for the year of addition and none in the year of disposal.
Page 15
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **2. Accounting policies (continued)**
## **2.7 Investments**
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities.
## **2.8 Stocks**
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
## **2.9 Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **2.10 Cash at bank and in hand**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **2.11 Liabilities and provisions**
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.
## **2.12 Financial instruments**
The Charity only has financial assets and financial 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 exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## **2.13 Pensions**
The charity operates a Workplace Pension Scheme with Scottish Widows.
## **2.14 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Investment income, gains and losses are allocated to the appropriate fund.
Page 16
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **3. Income from charitable activities**
|**Unrestricted**
**funds**
**2020**
**£**
Registration fees
407,393
Examination and training income
271,112
NSK training income
64,359
Professional Register
431,583
PROMPT (Pest Control)
88,320
Approved trainers
15,504
Wildlife Aware
18,172
Sundry Income
42,162
FACTS Annual Scheme
99,892
**Total 2020**
1,438,497|**Total**
**funds**
**2020**
**£**
**407,393**
**271,112**
**64,359**
**431,583**
**88,320**
**15,504**
**18,172**
**42,162**
**99,892**
**1,438,497**|Total
funds
2019
£
416,050
314,261
66,158
394,992
96,094
10,978
8,067
2,678
167,255|
|---|---|---|
|||1,476,533|
Sundry income includes £40,061 in respect of grants received under the Government's Coronavirus Job Retention Scheme.
## **4. Investment income**
|**Unrestricted**
**funds**
**2020**
**£**
Income from investment properties
9,405
Income from listed investments
16,244
Bank interest receivable
52
25,701|**Total**
**funds**
**2020**
**£**
**9,405**
**16,244**
**52**
**25,701**|Total
funds
2019
£
9,310
15,119
1,609|
|---|---|---|
|||26,038|
Page 17
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **5. Analysis of expenditure on charitable activities**
## **Summary by fund type**
|**Unrestricted**
**funds**
**2020**
**£**
Management
1,008,491
Training & Exams
85,949
Professional Register
12,071
Assessment of Premises
88,033
PROMPT
87,776
Amenity Contractors
12,546
FACTS Annual Scheme
106,072
Support Costs
43,536
**Total 2020**
1,444,474|**Total**
**funds**
**2020**
**£**
**1,008,491**
**85,949**
**12,071**
**88,033**
**87,776**
**12,546**
**106,072**
**43,536**
**1,444,474**|Total
funds
2019
£
950,850
148,878
28,181
99,879
95,056
34,735
105,693
61,741|
|---|---|---|
|||1,525,013|
## **6. Analysis of expenditure by activities**
|Management
Training & Exams
Professional Register
Assessment of Premises
PROMPT
Amenity Contractors
FACTS Annual Scheme
Support Costs|**Activities**
**undertaken**
**directly**
**2020**
**£**
1,008,491
85,949
12,071
88,033
87,776
12,546
106,072
43,536
1,444,474|**Total**
**funds**
**2020**
**£**
**1,008,491**
**85,949**
**12,071**
**88,033**
**87,776**
**12,546**
**106,072**
**43,536**
**1,444,474**|Total
funds
2019
£
950,850
148,878
28,181
99,879
95,056
34,735
105,693
61,741|
|---|---|---|---|
||||1,525,013|
Page 18
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **7. Auditors' remuneration**
||**2020**|2019|
|---|---|---|
||**£**|£|
|Fees payable to the Charity's auditor for the audit of the Charity's annual|||
|accounts|**5,750**|5,750|
## **8. Staff costs**
|Wages and salaries
Social security costs
Contribution to defined contribution pension schemes|**2020**
**£**
**668,159**
**59,233**
**55,322**
**782,714**|2019
£
603,770
43,924
59,176|
|---|---|---|
||||
|||706,870|
The key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis comprise the trustees, the Chief Executive Officer and the senior management team. The total remuneration (including employers NI, pension contributions and benefits in kind) received by key management personnel for the year was £439,336 (2019: £393,735).
During the year redundancy payments totalling £11,893 were made to 5 employees.
The average number of persons employed by the Charity during the year was as follows:
|Employees
The average headcount expressed as full-time equivalents was:
Administration|**2020**
**No.**
**27**
**2020**
**No.**
**19**|2019
No.
24|
|---|---|---|
|||2019
No.
21|
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
|||**2020**|2019|
|---|---|---|---|
|||**No.**|No.|
|In the band £90,001|- £100,000|**1**|1|
**9. Trustees' remuneration and expenses**
Page 19
**BASIS REGISTRATION LIMITED**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
During the year, one or more Trustees has been paid remuneration or has received other benefits from an employment with the Charity. Under the Charity's constitution remuneration can be paid at trustees discretion for the roles of Chair and Treasurer. The value of Trustees' remuneration and other benefits was as follows:
|||**2020**|2019|
|---|---|---|---|
|||**£**|£|
|D W A Burgess|Remuneration|**6,664**|-|
During the year ended 31 December 2020, expenses totalling £1,332 were reimbursed or paid directly to 6 Trustees (2019 - £5,202 to 6 Trustees).
## **10. Taxation**
The Charity's activites fall within the exemptions afforded by the previsions of the Corporation Tax Act 2010. Accordingly, there is no taxation charge in these accounts.
## **11. Tangible fixed assets**
|**Cost**
At 1 January 2020
Additions
At 31 December 2020
**Depreciation**
At 1 January 2020
Charge for the year
At 31 December 2020
**Net book value**
At 31 December 2020
At 31 December 2019|**Freehold**
**property**
**£**
**452,943**
**-**
**452,943**
**-**
**-**
**-**
**452,943**
452,943|**Computer**
**equipment**
**£**
**214,695**
**93,000**
**307,695**
**205,020**
**37,815**
**242,835**
**64,860**
9,675|**Total**
**£**
**667,638**
**93,000**|
|---|---|---|---|
||||**760,638**|
||||**205,020**
**37,815**|
||||**242,835**|
||||**517,803**|
||||462,618|
The Freehold Property is not depreciated; in the opinion of the Trustees, the market value of the Freehold Property is in excess of its costs.
Page 20
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
|**12.**
**Fixed asset investments**
**Cost or valuation**
At 1 January 2020
Revaluations
**At 31 December 2020**
**Net book value**
**At 31 December 2020**
_At 31 December 2019_
All investments shown above are held at valuation.
**13.**
**Stocks**
Learning materials
**14.**
**Debtors**
**Due within one year**
Trade debtors
Other debtors
Prepayments and accrued income
**15.**
**Creditors: Amounts falling due within one year**
Trade creditors
Other taxation and social security
Other creditors|**2020**
**£**
**2,115**
**2020**
**£**
**66,735**
**960**
**59,499**
**127,194**
**2020**
**£**
**80,707**
**48,699**
**7,049**|**Listed**
**investments**
**£**
**605,792**
**22,675**|
|---|---|---|
|||**628,467**|
|||**628,467**|
|||605,792|
|||2019
£
2,115
2019
£
77,132
3,089
36,318
116,539
2019
£
56,492
34,065
23,948|
Page 21
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **15. Creditors: Amounts falling due within one year (continued)**
|Accruals and deferred income
Deferred income at 1 January 2020
Resources deferred during the year
Amounts released from previous periods|**2020**
**£**
**426,530**
**562,985**
**2020**
**£**
**361,655**
**403,031**
**(361,655)**
**403,031**|2019
£
383,011
497,516
2019
£
353,525
361,655
(353,525)
361,655|
|---|---|---|
Page 22
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **16. Statement of funds**
## **Statement of funds - current year**
||||||**Balance at**|
|---|---|---|---|---|---|
||**Balance at 1**||||**31**|
||**January**|||**Gains/**|**December**|
||**2020**|**Income**|**Expenditure**|**(Losses)**|**2020**|
||**£**|**£**|**£**|**£**|**£**|
|**Unrestricted funds**||||||
|General Funds - all funds|**1,020,304**|**1,464,198**|**(1,444,474)**|**7,140**|**1,047,168**|
|**Statement of funds - prior**|**year**|||||
||||||Balance at|
||Balance at||||31|
||1 January|||Gains/|December|
||2019|Income|Expenditure|(Losses)|2019|
||£|£|£|£|£|
|**Unrestricted funds**||||||
|General Funds|1,009,034|1,502,571|(1,525,013)|33,712|1,020,304|
## **17. Summary of funds**
## **Summary of funds - current year**
|General funds|**Balance at 1**
**January**
**2020**
**£**
**1,020,304**
Balance at
1 January
2019
£
1,009,034|**Income**
**£**
**1,464,198**
Income
£
1,502,571|**Expenditure**
**£**
**(1,444,474)**
Expenditure
£
(1,525,013)|**Gains/**
**(Losses)**
**£**
**7,140**
Gains/
(Losses)
£
33,712|**Balance at**
**31**
**December**
**2020**
**£**
**1,047,168**|
|---|---|---|---|---|---|
||||||Balance at
31
December
2019
£
1,020,304|
|**Summary of funds - prior year**||||||
|General funds||||||
Page 23
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
|**18.**|**Analysis of net assets between funds**|
|---|---|
||**Analysis of net assets between funds - current period**|
|**Unrestricted**
**funds**
**2020**
**£**
Tangible fixed assets
517,803
Fixed asset investments
628,467
Current assets
463,883
Creditors due within one year
(562,985)
**Total**
1,047,168
**Analysis of net assets between funds - prior period**
Unrestricted
funds
2019
£
Tangible fixed assets
462,618
Fixed asset investments
605,792
Current assets
449,410
Creditors due within one year
(497,516)
**Total**
1,020,304|**Total**
**funds**
**2020**
**£**
**517,803**
**628,467**
**463,883**
**(562,985)**
**1,047,168**
Total
funds
2019
£
462,618
605,792
449,410
(497,516)
1,020,304|
|---|---|
Page 24
**BASIS REGISTRATION LIMITED**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **19. Reconciliation of net movement in funds to net cash flow from operating activities**
|Net income for the period (as per Statement of Financial Activities)
**Adjustments for:**
Depreciation charges
Net gains/losses on investments
Impairment of tangible fixed assets
Dividends, interests and rents from investments
Decrease in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Accrued expenses
**Net cash provided by/(used in) operating activities**|**2020**
**£**
**26,864**
**37,815**
**(7,140)**
**-**
**(25,649)**
**-**
**(10,655)**
**65,469**
**-**
**86,704**|2019
£
11,270|
|---|---|---|
|||11,368
(33,712)
(22,944)
(24,429)
1,038
24,408
(4,066)
11,866|
||||
|||(25,201)|
## **20. Analysis of cash and cash equivalents**
|Cash in hand
**21.**
**Analysis of changes in net debt**
Cash at bank and in hand|**At 1**
**January**
**2020**
**£**
**330,756**
**330,756**|**2020**
**£**
**334,574**
**Cash flows**
**£**
**3,818**
**3,818**|2019
£
330,756|
|---|---|---|---|
||||**At 31**
**December**
**2020**
**£**
**334,574**|
||||**334,574**|
## **22. Pension commitments**
The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £55,322 (2019 - £59,176). Contributions of £7,049 (2019: £13,394) were payable to the fund at the balance sheet date and are included in creditors.
Page 25
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **23. Operating lease commitments**
At 31 December 2020 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:
|Not later than 1 year
Later than 1 year and not later than 5 years|**2020**
**£**
**13,546**
**10,380**
**23,926**|2019
£
10,044
4,859|
|---|---|---|
||||
|||14,903|
Lease payments totalling £10,044 (2019: £16,269) have been recognised as an expense during the year.
## **24. Related party transactions**
During the year the following transactions took place at arm’s length between the charity and related parties:
Payments for PR services of £2,317 (2019: £2,203) were made to Geoff Dodgson.
Sales of £40,147 and purchases of £360 (2019: £34,813 and £6,697) respectively were made to companies Sabra Everett is a director and also a trustee of the Charity.
Page 26
**Registered number: 01365343 Charity number: 1077006**
## **BASIS REGISTRATION LIMITED**
**(A company limited by guarantee)**
**TRUSTEES' REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2020**
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **CONTENTS**
||Page|
|---|---|
|**Reference and administrative details of the Charity, its Trustees and advisers**|1|
|**Trustees' report**|2 - 6|
|**Independent auditors' report on the financial statements**|7 - 10|
|**Statement of financial activities**|11|
|**Balance sheet**|12|
|**Statement of cash flows**|13|
|**Notes to the financial statements**|14 - 26|
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2020**
**Trustees** Mr D W A Burgess, Chair (appointed 23 July 2020) Mrs M May, Treasurer and Vice Chair Mr D J Bench, Trustee (appointed 23 July 2020) Dr S Bolton (resigned 23 July 2020) Mr D L Cairns, Trustee Mr C E Clarke (resigned 23 July 2020) Rev G J Dodgson, Trustee Mrs S A Everett, Trustee Mr R Fenwick, Trustee (appointed 7 February 2020) Mr C Godwin, Trustee (appointed 7 February 2020) Mrs E Hamer, Trustee Mrs J Hewitt (appointed 7 February 2020) Mrs S F Melrose, Trustee Ms S J Mukherjee (resigned 23 July 2020) Prof J Moverley, Trustee Mr C Sprigg, Trustee Mr P J Taylor, Trustee Mrs S Twining, Trustee (appointed 23 July 2020) Mr C W Wright Mr A S Richardson (resigned 23 July 2020)
**Company registered number** 01365343 **Charity registered number** 1077006 **Registered office** St Monica's House 39 Windmill Lane Ashbourne Derbyshire DE6 1EY **Company secretary** Mr SP Jacob **Chief executive officer** Mr SP Jacob **Independent auditors** Smith Cooper Audit Limited Chartered Accountants St Helen's House King Street Derby DE1 3EE
Page 1
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Structure, governance and management**
## _Governing document_
The charity is controlled by its governing document, the Articles of Association, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
## _Risk management_
The Trustees identify and regularly review the risks to which the charity is exposed and ensure that controls are in place to provide appropriate and reasonable assurance against fraud and error.
There are individual Trustees nominated to provide over-sight on all matters pertaining to Human Resources, Pensions and Health and Safety.
BASIS, through its external Chartered Accountant, produces monthly income and expenditure accounts and balance sheets comparing performance against budget; the annual financial statements are externally audited.
The reserves of the charity are cautiously invested in a mix of retail funds, using external professional advice.
## _Board members_
There were five changes to the membership of the Board of Trustees in 2020 and four resignations.
## _Committee structure_
The Committees are:
- The FACTS Advisory Committee
- The Finance and Remuneration Committee
- The Logistics Committee
- The Professional Standards Committee
- The PROMPT Committee
- The Northern Ireland Committee
- The Membership Committee
All the above Committees meet on a number of occasions in the year and their proceedings are formally minuted and reported to the Board.
## _Public Benefit_
In setting our activities and planning our activities our Trustees have given careful consideration to the Charity Commission's public benefit guidance.
Our main activities and who we try to help are described below. All our charitable activities focus on helping British agriculture, the amenity industry, horticulture and forestry by raising standards through establishing best practice within the plant protection industries with a focus on the sale and supply, safe storage and transport of professional plant protection products and a recognised means of assessing staff working in the sector.
The benefits of the work of BASIS are the education of future and current agronomists, the management of wellcrafted and delivered Continuing Professional Development schemes for agronomists, plant nutrition advisers and professional pest controllers and the auditing of distributor and manufacturer’s professional plant protection products storage premises.
Establishing best practise in the use, sale and distribution of Professional Plant Protection Products encourages the uptake of alternatives to professional plant protection products, use of integrated approaches (e.g. Integrated Pest Management (IPM) and Integrated Farm Management (IFM)). The benefits of which are the protection of public, operator and consumer health and reduced impact of professional plant protection products on biodiversity, water and the environment.
Page 2
## **BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Objectives and activities**
The purpose of BASIS is to benefit the public by advancing standards in the advice and use of professional plant protection products and plant nutrition throughout the United Kingdom for the safety of the public and the environment to promote and encourage improved standards, the safe and efficient distribution, contract application, handling and storage of Plant Protection Products, techniques and technology, molecular technology, biotechnology, plant nutrition, bio-pesticide products and in the advice and usage of such products in agriculture, horticulture, forestry, industrial, public health and other relevant industry sectors.
We do this by providing advanced education for professional advisers and farmers in agriculture, horticulture and related industries with the objective of raising standards in the following:
- the advice and use of professional plant protection products and fertilisers in agriculture and horticulture
- the advice and use of products for the control of pests in industrial, food preparation, food storage and domestic premises
- the advice and use of herbicides for weed control on roads, railways, sports grounds and other public and private spaces
- the promotion of Integrated Pest Management (IPM) techniques within the UK’s National Action Plan framework for action to achieve the sustainable use of pesticides
## Our activities include:
- organising education and training programmes up to and including Quality Assurance Agency (QAA) level 7 (including BASIS Diploma in Crop Protection)
- the creation and maintenance of a portfolio of examinations which are accredited through QAA for higher education and are regularly updated
- the organisation and provision of examinations for advisors throughout the United Kingdom
We have established and maintain Professional Registers for advisors to join and maintain their Professional Register status through Continuing Professional Development.
BASIS also seeks to advance education and professional standards in the storage and distribution of professional plant protection products and fertilisers. We do this by providing training programmes for store keepers, by operating a statutorily-recognised store inspection scheme and conducting annual store inspections.
In seeking to raise standards we work with government departments including DEFRA, Fire Authorities, the Environment Agency and various industry organisations.
## **Achievements and performance**
## _Overview_
As a designated awarding body responsible for implementing training and certification for those involved in land management, BASIS promotes Integrated Pest Management (IPM) in all settings and across all aspects of its charitable reach. We believe that training and professional development is the key stone to delivering successful IPM programmes. All our training modules have IPM as a core element and we include assessment of candidates against its principles.
During 2020 the BASIS Trustee Board and Executive developed, and initiated, a 5-year strategy to assist its members, and wider stakeholders, to be equipped to deliver advice as the farming sector enters a 7-year transition away from EU-based rules. The strategy supports its members to progress towards a system in which farmers are paid to improve the environment, improve animal health and welfare, and reduce carbon emissions.
## _Storage and Distribution_
During 2020, BASIS inspected 562 (2019 - 579) registered Plant Protection Product stores, of which 98% (201999.6%) reached the required standard.
Additionally, BASIS provides independent annual onsite and remote audits to verify that professional use rodenticides are only sold to certified users meeting the point of sale requirements for the Campaign for Responsible Rodenticide Use (CRRU). 695 premises received point of sale audits in 2020 (2019 - 596). Annual assessment for amenity contractors resulted in 82 Amenity Assured Contractors (2019 - 88) being
Page 3
**BASIS REGISTRATION LIMITED**
**(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020**
audited and 191 Lawn Assured Scheme members being audited in 2020 (2019 – 167).
## _Training and Education_
Advancing education is a key charitable objective. In 2020, 1,537 individuals benefitted directly from BASIS training and assessment. Additionally, 24 agronomists were awarded the BASIS Diploma in Crop Protection - our highest award, bringing the total number of agronomists with the Diploma to 321.
Much effort was made during the year to prepare the training syllabuses to reflect legislative changes following EU exit. Additionally, all of our training modules successfully underwent a re-validation exercise in May 2020. Revalidation ensures our provision continues to offer appropriate learning opportunities and outcomes, currency of curriculum and takes account of delivery experiences and feedback from students.
Continuing Professional Development (CPD) and the Professional Registers Numbers on the BASIS Professional Register stood at 5,641 (2019 - 5,889) at the end of 2020. 4,455 (2019 - 7,200) events were allocated CPD points in 2020 with almost all CPD activity moving online. BASIS itself introduced an online CPD portal, BASIS Classroom, which hosts CPD training events created by industry for the BASIS Professional Register membership.
FACTS Qualified Adviser membership stood at 3,342 (2019 - 3,532) and FACTS Subscribers stood at 493 (2019 - 270) paid up members at the end of 2020. An assessment for all FACTS Qualified advisers (FQAs) continued to provide demonstrable quality assurance of professional standards and is now an established compulsory annual membership requirement for FQAs to maintain their status. The theme of the 2021/22 annual assessment will be ‘Ways of improving fertiliser (mineral and organic) application accuracy’ which assesses the requirement for calibration and tray testing of fertiliser and manure spreaders and an evaluation of the yield and financial costs of inaccurate application.
## _PROMPT and Amenity Registers_
During the year PROMPT membership remained largely unchanged at 5,282 (2019 - 5,364) and members of the BASIS Amenity Training Register reduced to 143 (2019 - 347).
## **Financial review**
## _Reserves_
In keeping with the Charities Commission guidance on reserves, the Board of BASIS has a policy to hold unrestricted reserves, in order to ensure the continued activities of the company in times of reduced income. The policy, agreed in 2009, was to hold at least six months of the cost of running the business in reserves to meet unexpected demands on the charity which for 2020 is at least £750k. Currently, unrestricted reserves are £1,047,168 representing 72% of the total resources expended in 2020 (2019: 67%). The reserves policy is reviewed annually.
## _Income_
Total income from the charitable activities of BASIS remained almost unchanged at £1,438,497 in 2020. Growth in registration fees offset a decrease in examination and training income due to the effect of the restrictions to movement in Q2 and Q3 in response to the Covid-19 pandemic leading to fewer candidates receiving training and assessment.
The charity received Job Retention Scheme grant funding of £40,061 in 2020.
All funds have been allocated to support charitable and general operational expenditure.
## _Costs_
Total expenditure decreased by £80,539 - a decrease of 5% from 2019 as expenditure reduced broadly commensurate with the income.
In response to increased efficiency in internal processes, and a contraction of trading activities during the Covid19 pandemic, a full review of the business needs and organisational requirements was undertaken. The subsequent organisational restructure resulted in a reduction in administration staff from eleven to seven and a
Page 4
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020**
renewed focus on building a multi-skilled team capable of working across all departments.
The year saw a continuation of a major project, BASIS 2020, to upgrade our digital operations. A decision was made early in the year to accelerate the programme to support our membership by digitising key services and presenting them in covid secure formats.
Our staff are key to the success of the project and a programme of training is underway to develop our team to ensure that BASIS continues to meet its charitable objectives and thereby benefit the industry that it serves.
Salaries form the single largest element of expenditure. A Technical Manager was appointed during the year. Average full-time equivalent staff numbers reduced to 19 during 2020.
## _Investments_
The majority of BASIS reserves are held as investments; these increased by £25,701 in the year.
## _Risks_
An annual risk management review helps identify and manage issues that could impair our ability to achieve our charitable objectives or adversely impact the organisation in other ways.
Trustees are ultimately responsible for risk management and the BASIS Finance and Remuneration committee oversees the Risk Register which records issues and tracks how they are addressed on an ongoing basis.
## _Health and Safety_
The health and safety of our staff, volunteers, tenants and visitors is paramount. An internal Health and Safety Committee, an external consultant together with a named Trustee oversee activity in this area.
## _Our People_
The Board is grateful for the dedication of the BASIS staff, who have, again, worked hard to provide a service to members, the industry and the wider public.
## _Tangible Fixed Assets_
Following an independent valuation of St Monica's House dated 10 March 2020 its value was restated to market value as at 31 December 2019. The next tri-annual valuation is due to take place in 2023.
## **Statement as to disclosure of information to auditors**
In so far as the trustees are aware:
- there is no relevant audit information of which the charitable company's auditors are unaware; and
- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
## **Plans for future periods**
The charity intends to develop the business to continue to meet its objectives and the future demands of the UK agricultural, horticultural and allied industries.
## **Trustees' responsibilities statement**
The trustees, who are also directors for the purposes of company law, are responsible for preparing the trustees' 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 charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.
Page 5
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Covid 19**
The introduction of new processes has enabled BASIS to continue to offer its audits, training and professional development products and services in covid secure formats. This rapid adoption of video conferencing software and online proctoring services has been pivotal in enabling the charity to continue to meet its objects and maintain quality assurance standards.
The BASIS Board of Trustees operate a register to identify and manage risks and plan mitigating actions. The response to counter the effects on the charity’s objects from a pandemic are to build and maintain sufficient reserves. Accordingly, the charity is financially stable enough to meet its obligations and continue its business for the foreseeable future.
With further implementation of digital processes, and the continued launch of digital assets to support our members expected to continue throughout 2021, there is every expectation that BASIS will endure and deliver on its aims and activities over the next 12 months.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the applicable Charities SORP;
- make judgments and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
- charity will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Auditor**
A resolution to reappoint Smith Cooper Audit Limited as auditor for 2021 will be put to the Annual General Meeting.
## **Small company provisions**
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
Approved by order of the members of the board of Trustees on 28 April 2021 and signed on their behalf by:
## **Mr SP Jacob**
Company Secretary
Page 6
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BASIS REGISTRATION LIMITED**
## **Opinion**
We have audited the financial statements of Basis Registration Limited (the 'charitable company') for the year ended 31 December 2020 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- 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 Charities Act 2011.
## **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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.
Page 7
**BASIS REGISTRATION LIMITED**
**(A company limited by guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BASIS REGISTRATION LIMITED (CONTINUED)**
## **Other information**
The Trustees are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Auditors' report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
- the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the Trustees' responsibilities statement, 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.
Page 8
**BASIS REGISTRATION LIMITED**
**(A company limited by guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BASIS REGISTRATION LIMITED (CONTINUED)**
## **Auditors' responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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 Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of 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:
- Enquiry of management and those charged with governance around actual and potential litigation and claims;
- Reviewing minutes of meetings of those charged with governance where available;
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
• Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
Page 9
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BASIS REGISTRATION LIMITED (CONTINUED)**
## **Use of our report**
This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
## **Smith Cooper Audit Limited**
Chartered Accountants Statutory auditors St Helen's House King Street Derby DE1 3EE
Date:
Smith Cooper Audit Limited are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
Page 10
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2020**
|**Note**
**Income from:**
Charitable activities
3
Investments
4
**Total income**
**Expenditure on:**
Charitable activities
5
**Total expenditure**
**Net income/(expenditure) before net gains on**
**investments**
Net gains on investments
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Unrestricted**
**funds**
**2020**
**£**
**1,438,497**
**25,701**
**1,464,198**
**1,444,474**
**1,444,474**
**19,724**
**7,140**
**26,864**
**1,020,304**
**26,864**
**1,047,168**|**Total**
**funds**
**2020**
**£**
**1,438,497**
**25,701**
**1,464,198**
**1,444,474**
**1,444,474**
**19,724**
**7,140**
**26,864**
**1,020,304**
**26,864**
**1,047,168**|Total
funds
2019
£
1,476,533
26,038
1,502,571
1,525,013
1,525,013
(22,442)
33,712
11,270
1,009,034
11,270
1,020,304|
|---|---|---|---|
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 14 to 26 form part of these financial statements.
Page 11
## **BASIS REGISTRATION LIMITED (A company limited by guarantee) REGISTERED NUMBER: 01365343**
## **BALANCE SHEET AS AT 31 DECEMBER 2020**
|**Note**
**Fixed assets**
Tangible assets
11
Investments
12
**Current assets**
Stocks
13
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within one
year
15
**Net current liabilities**
**Total net assets**
**Charity funds**
Restricted funds
16
Unrestricted funds
16
**Total funds**|**2,115**
**127,194**
**334,574**
**463,883**
**(562,985)**|**2020**
**£**
**517,803**
**628,467**
**1,146,270**
**(99,102)**
**1,047,168**
**-**
**1,047,168**
**1,047,168**|2,115
116,539
330,756
449,410
(497,516)|2019
£
462,618
605,792
1,068,410
(48,106)
1,020,304
-
1,020,304
1,020,304|
|---|---|---|---|---|
The entity was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
However, an audit is required in accordance with section 144 of the Charities Act 2011.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
## **Mr W Burgess**
(Chair of Trustees) Date:
The notes on pages 14 to 26 form part of these financial statements.
Page 12
## **BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020**
|**Note**
**Cash flows from operating activities**
Net cash generated in operating activities
19
**Cash flows from investing activities**
Dividends, interests and rents from investments
Purchase of tangible fixed assets
Purchase of new investments
**Net cash (used in)/provided by investing activities**
**Cash flows from financing activities**
Repayments of borrowing
**Net cash provided by/(used in) financing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
20|**2020**
**£**
**86,704**
**25,649**
**(93,000)**
**(15,535)**
**(82,886)**
**-**
**-**
**3,818**
**330,756**
**334,574**|2019
£
(25,201)
24,429
(8,385)
(13,307)
**2,737**
(49,653)
**(49,653)**
**(72,117)**
402,873
330,756|
|---|---|---|
The notes on pages 14 to 26 form part of these financial statements
Page 13
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **1. General information**
The charity is a private charitable company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is St Monica's House, 39 Windmill Lane, Ashbourne, Derbyshire, DE6 1EY.
## **2. Accounting policies**
## **2.1 Basis of preparation of financial statements**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Basis Registration Limited meets the definition of a public benefit entity under FRS 102.
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
## **2.2 Going concern**
The Trustees have considered the appropriateness of the going concern basis of the preparation of the financial statements by considering a period of at least 12 months from the date of the approval of these financial statements. The Trustees are of the opinion that there are adequate resources available to continue trading for a period of at least 12 months.
## **2.3 Income**
Register income (Professional Register, FACTS Qualified Adviser and Subscriber schemes and PROMPT) is recognised upon receipt, as any point prior to this the Charity is uncertain of receiving the funds.
All other income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
## **2.4 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Page 14
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **2. Accounting policies (continued)**
## **2.4 Expenditure (continued)**
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
## **2.5 Government grants**
Grants are accounted under the accruals model as permitted by FRS 102. Grants received during the year are recorded as other income and arise from the government job retention scheme.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.
The deferred element of grants is included in creditors as deferred income.
## **2.6 Tangible fixed assets and depreciation**
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Land and Buildings are measured under the revaluation model. After recognition, tangible fixed assets whose fair value can be measured reliably shall be carried at a revalued amount, being their fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Revaluations are made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting date.
Fair values are determined from market-based evidence by appraisal that is normally undertaken by professionally qualified valuers. If there is no market-based evidence of fair value because of the specialised nature of the tangible fixed asset and it is rarely sold, except as part of a contributing business, a Charity may need to estimate fair value using an income or depreciated replacement cost approach.
At each reporting date the Charity assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
Computer equipment
-
33% Straight line
No depreciation is provided for Land and Buildings on the basis of the property having a high residual value. Annual impairment reviews are undertaken.
A full year’s depreciation is provided for the year of addition and none in the year of disposal.
Page 15
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **2. Accounting policies (continued)**
## **2.7 Investments**
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities.
## **2.8 Stocks**
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
## **2.9 Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **2.10 Cash at bank and in hand**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **2.11 Liabilities and provisions**
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.
## **2.12 Financial instruments**
The Charity only has financial assets and financial 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 exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## **2.13 Pensions**
The charity operates a Workplace Pension Scheme with Scottish Widows.
## **2.14 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Investment income, gains and losses are allocated to the appropriate fund.
Page 16
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **3. Income from charitable activities**
|**Unrestricted**
**funds**
**2020**
**£**
Registration fees
407,393
Examination and training income
271,112
NSK training income
64,359
Professional Register
431,583
PROMPT (Pest Control)
88,320
Approved trainers
15,504
Wildlife Aware
18,172
Sundry Income
42,162
FACTS Annual Scheme
99,892
**Total 2020**
1,438,497|**Total**
**funds**
**2020**
**£**
**407,393**
**271,112**
**64,359**
**431,583**
**88,320**
**15,504**
**18,172**
**42,162**
**99,892**
**1,438,497**|Total
funds
2019
£
416,050
314,261
66,158
394,992
96,094
10,978
8,067
2,678
167,255|
|---|---|---|
|||1,476,533|
Sundry income includes £40,061 in respect of grants received under the Government's Coronavirus Job Retention Scheme.
## **4. Investment income**
|**Unrestricted**
**funds**
**2020**
**£**
Income from investment properties
9,405
Income from listed investments
16,244
Bank interest receivable
52
25,701|**Total**
**funds**
**2020**
**£**
**9,405**
**16,244**
**52**
**25,701**|Total
funds
2019
£
9,310
15,119
1,609|
|---|---|---|
|||26,038|
Page 17
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **5. Analysis of expenditure on charitable activities**
## **Summary by fund type**
|**Unrestricted**
**funds**
**2020**
**£**
Management
1,008,491
Training & Exams
85,949
Professional Register
12,071
Assessment of Premises
88,033
PROMPT
87,776
Amenity Contractors
12,546
FACTS Annual Scheme
106,072
Support Costs
43,536
**Total 2020**
1,444,474|**Total**
**funds**
**2020**
**£**
**1,008,491**
**85,949**
**12,071**
**88,033**
**87,776**
**12,546**
**106,072**
**43,536**
**1,444,474**|Total
funds
2019
£
950,850
148,878
28,181
99,879
95,056
34,735
105,693
61,741|
|---|---|---|
|||1,525,013|
## **6. Analysis of expenditure by activities**
|Management
Training & Exams
Professional Register
Assessment of Premises
PROMPT
Amenity Contractors
FACTS Annual Scheme
Support Costs|**Activities**
**undertaken**
**directly**
**2020**
**£**
1,008,491
85,949
12,071
88,033
87,776
12,546
106,072
43,536
1,444,474|**Total**
**funds**
**2020**
**£**
**1,008,491**
**85,949**
**12,071**
**88,033**
**87,776**
**12,546**
**106,072**
**43,536**
**1,444,474**|Total
funds
2019
£
950,850
148,878
28,181
99,879
95,056
34,735
105,693
61,741|
|---|---|---|---|
||||1,525,013|
Page 18
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **7. Auditors' remuneration**
||**2020**|2019|
|---|---|---|
||**£**|£|
|Fees payable to the Charity's auditor for the audit of the Charity's annual|||
|accounts|**5,750**|5,750|
## **8. Staff costs**
|Wages and salaries
Social security costs
Contribution to defined contribution pension schemes|**2020**
**£**
**668,159**
**59,233**
**55,322**
**782,714**|2019
£
603,770
43,924
59,176|
|---|---|---|
||||
|||706,870|
The key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis comprise the trustees, the Chief Executive Officer and the senior management team. The total remuneration (including employers NI, pension contributions and benefits in kind) received by key management personnel for the year was £439,336 (2019: £393,735).
During the year redundancy payments totalling £11,893 were made to 5 employees.
The average number of persons employed by the Charity during the year was as follows:
|Employees
The average headcount expressed as full-time equivalents was:
Administration|**2020**
**No.**
**27**
**2020**
**No.**
**19**|2019
No.
24|
|---|---|---|
|||2019
No.
21|
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
|||**2020**|2019|
|---|---|---|---|
|||**No.**|No.|
|In the band £90,001|- £100,000|**1**|1|
**9. Trustees' remuneration and expenses**
Page 19
**BASIS REGISTRATION LIMITED**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
During the year, one or more Trustees has been paid remuneration or has received other benefits from an employment with the Charity. Under the Charity's constitution remuneration can be paid at trustees discretion for the roles of Chair and Treasurer. The value of Trustees' remuneration and other benefits was as follows:
|||**2020**|2019|
|---|---|---|---|
|||**£**|£|
|D W A Burgess|Remuneration|**6,664**|-|
During the year ended 31 December 2020, expenses totalling £1,332 were reimbursed or paid directly to 6 Trustees (2019 - £5,202 to 6 Trustees).
## **10. Taxation**
The Charity's activites fall within the exemptions afforded by the previsions of the Corporation Tax Act 2010. Accordingly, there is no taxation charge in these accounts.
## **11. Tangible fixed assets**
|**Cost**
At 1 January 2020
Additions
At 31 December 2020
**Depreciation**
At 1 January 2020
Charge for the year
At 31 December 2020
**Net book value**
At 31 December 2020
At 31 December 2019|**Freehold**
**property**
**£**
**452,943**
**-**
**452,943**
**-**
**-**
**-**
**452,943**
452,943|**Computer**
**equipment**
**£**
**214,695**
**93,000**
**307,695**
**205,020**
**37,815**
**242,835**
**64,860**
9,675|**Total**
**£**
**667,638**
**93,000**|
|---|---|---|---|
||||**760,638**|
||||**205,020**
**37,815**|
||||**242,835**|
||||**517,803**|
||||462,618|
The Freehold Property is not depreciated; in the opinion of the Trustees, the market value of the Freehold Property is in excess of its costs.
Page 20
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
|**12.**
**Fixed asset investments**
**Cost or valuation**
At 1 January 2020
Revaluations
**At 31 December 2020**
**Net book value**
**At 31 December 2020**
_At 31 December 2019_
All investments shown above are held at valuation.
**13.**
**Stocks**
Learning materials
**14.**
**Debtors**
**Due within one year**
Trade debtors
Other debtors
Prepayments and accrued income
**15.**
**Creditors: Amounts falling due within one year**
Trade creditors
Other taxation and social security
Other creditors|**2020**
**£**
**2,115**
**2020**
**£**
**66,735**
**960**
**59,499**
**127,194**
**2020**
**£**
**80,707**
**48,699**
**7,049**|**Listed**
**investments**
**£**
**605,792**
**22,675**|
|---|---|---|
|||**628,467**|
|||**628,467**|
|||605,792|
|||2019
£
2,115
2019
£
77,132
3,089
36,318
116,539
2019
£
56,492
34,065
23,948|
Page 21
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **15. Creditors: Amounts falling due within one year (continued)**
|Accruals and deferred income
Deferred income at 1 January 2020
Resources deferred during the year
Amounts released from previous periods|**2020**
**£**
**426,530**
**562,985**
**2020**
**£**
**361,655**
**403,031**
**(361,655)**
**403,031**|2019
£
383,011
497,516
2019
£
353,525
361,655
(353,525)
361,655|
|---|---|---|
Page 22
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **16. Statement of funds**
## **Statement of funds - current year**
||||||**Balance at**|
|---|---|---|---|---|---|
||**Balance at 1**||||**31**|
||**January**|||**Gains/**|**December**|
||**2020**|**Income**|**Expenditure**|**(Losses)**|**2020**|
||**£**|**£**|**£**|**£**|**£**|
|**Unrestricted funds**||||||
|General Funds - all funds|**1,020,304**|**1,464,198**|**(1,444,474)**|**7,140**|**1,047,168**|
|**Statement of funds - prior**|**year**|||||
||||||Balance at|
||Balance at||||31|
||1 January|||Gains/|December|
||2019|Income|Expenditure|(Losses)|2019|
||£|£|£|£|£|
|**Unrestricted funds**||||||
|General Funds|1,009,034|1,502,571|(1,525,013)|33,712|1,020,304|
## **17. Summary of funds**
## **Summary of funds - current year**
|General funds|**Balance at 1**
**January**
**2020**
**£**
**1,020,304**
Balance at
1 January
2019
£
1,009,034|**Income**
**£**
**1,464,198**
Income
£
1,502,571|**Expenditure**
**£**
**(1,444,474)**
Expenditure
£
(1,525,013)|**Gains/**
**(Losses)**
**£**
**7,140**
Gains/
(Losses)
£
33,712|**Balance at**
**31**
**December**
**2020**
**£**
**1,047,168**|
|---|---|---|---|---|---|
||||||Balance at
31
December
2019
£
1,020,304|
|**Summary of funds - prior year**||||||
|General funds||||||
Page 23
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
|**18.**|**Analysis of net assets between funds**|
|---|---|
||**Analysis of net assets between funds - current period**|
|**Unrestricted**
**funds**
**2020**
**£**
Tangible fixed assets
517,803
Fixed asset investments
628,467
Current assets
463,883
Creditors due within one year
(562,985)
**Total**
1,047,168
**Analysis of net assets between funds - prior period**
Unrestricted
funds
2019
£
Tangible fixed assets
462,618
Fixed asset investments
605,792
Current assets
449,410
Creditors due within one year
(497,516)
**Total**
1,020,304|**Total**
**funds**
**2020**
**£**
**517,803**
**628,467**
**463,883**
**(562,985)**
**1,047,168**
Total
funds
2019
£
462,618
605,792
449,410
(497,516)
1,020,304|
|---|---|
Page 24
**BASIS REGISTRATION LIMITED**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **19. Reconciliation of net movement in funds to net cash flow from operating activities**
|Net income for the period (as per Statement of Financial Activities)
**Adjustments for:**
Depreciation charges
Net gains/losses on investments
Impairment of tangible fixed assets
Dividends, interests and rents from investments
Decrease in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Accrued expenses
**Net cash provided by/(used in) operating activities**|**2020**
**£**
**26,864**
**37,815**
**(7,140)**
**-**
**(25,649)**
**-**
**(10,655)**
**65,469**
**-**
**86,704**|2019
£
11,270|
|---|---|---|
|||11,368
(33,712)
(22,944)
(24,429)
1,038
24,408
(4,066)
11,866|
||||
|||(25,201)|
## **20. Analysis of cash and cash equivalents**
|Cash in hand
**21.**
**Analysis of changes in net debt**
Cash at bank and in hand|**At 1**
**January**
**2020**
**£**
**330,756**
**330,756**|**2020**
**£**
**334,574**
**Cash flows**
**£**
**3,818**
**3,818**|2019
£
330,756|
|---|---|---|---|
||||**At 31**
**December**
**2020**
**£**
**334,574**|
||||**334,574**|
## **22. Pension commitments**
The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £55,322 (2019 - £59,176). Contributions of £7,049 (2019: £13,394) were payable to the fund at the balance sheet date and are included in creditors.
Page 25
**BASIS REGISTRATION LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **23. Operating lease commitments**
At 31 December 2020 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:
|Not later than 1 year
Later than 1 year and not later than 5 years|**2020**
**£**
**13,546**
**10,380**
**23,926**|2019
£
10,044
4,859|
|---|---|---|
||||
|||14,903|
Lease payments totalling £10,044 (2019: £16,269) have been recognised as an expense during the year.
## **24. Related party transactions**
During the year the following transactions took place at arm’s length between the charity and related parties:
Payments for PR services of £2,317 (2019: £2,203) were made to Geoff Dodgson.
Sales of £40,147 and purchases of £360 (2019: £34,813 and £6,697) respectively were made to companies Sabra Everett is a director and also a trustee of the Charity.
Page 26
**BASIS Registration Limited**
## **BASIS Registration Limited**
**Audit Findings Report Year ended 31 December 2020**
March 21
1
**BASIS Registration Limited**
## **TABLE OF CONTENTS**
**1. INTRODUCTION .................................................................................................................. 2 2. AUDIT SUMMARY AND SIGNIFICANT RISKS ...................................................................... 3 3. KEY MATTERS ARISING DURING THE COURSE OF THE AUDIT ........................................... 4 4. SUMMARY OF UNADJUSTED DIFFERENCES ....................................................................... 5 5. OUTSTANDING MATTERS .................................................................................................... 5 6. ETHICAL CONSIDERATIONS .............................................................................................. 6 7. FRAUD, ERROR, LAWS AND REGULATIONS ....................................................................... 6 8. INTERNAL CONTROLS ......................................................................................................... 8**
1
**BASIS Registration Limited**
## **1. INTRODUCTION**
The purpose of this report is to update management and those charged with governance of BASIS Registration Limited and to meet the requirements of International Standard in Auditing (UK & Ireland) 260.
We are responsible for forming and expressing an opinion on the statutory financial statements.
The matters dealt with in this report came to our attention during the course of our normal audit procedures which are primarily designed for the purpose of expressing our opinion on the statutory financial statements of the companies.
Our audit work is complete, subject to the outstanding matters in Section 6. We expect an unmodified audit report to be issued assuming no matters arise from completion of the outstanding work.
This report has been prepared for the sole use of the charity and must not be shown to third parties without our prior consent. No responsibilities are accepted by Smith Cooper Audit Limited towards any party acting or refraining from action as a result of this report.
2
**BASIS Registration Limited**
## **2. AUDIT SUMMARY AND SIGNIFICANT RISKS**
Our work combines substantive and other procedures, including direct verification of balances and transactions, which included obtaining confirmation from third parties where we considered this to be necessary. No significant limitations of scope were placed on our audit.
We do not seek to certify that the financial statements are 100% accurate, rather we use the concept of ‘materiality’ to plan our sample sizes and also to decide whether any errors or misstatements discovered during the audit require adjustment.
The assessment of materiality is a matter of professional judgement but overall, the matter is material if its omission or misstatement would reasonably influence the economic decisions of a user of the financial statements. Whether adjustments are material to the “true and fair” view, can only be judged in the particular circumstances of the items and their impact on the financial statements to which they relate. Materiality has been considered having due regard to the overall financial statement totals, the relevant individual balance, the type of transaction and the disclosures.
The following significant risk areas were identified at the planning stage of the audit and any matters arising in relation to these identified risks are commented on in Section 3 below. Our audit fieldwork has not identified any additional areas of significant risk.
**Revenue recognition** - This is a risk as defined under auditing standards, unless it can be rebutted.
**Management override** - This is a risk identified by auditing standards that cannot be rebutted. This relates to the fact that Management can influence judgement areas of the results of a business.
**Going concern -** COVID-19 has caused significant market upheaval and uncertainty for business. Many businesses have faced mandatory closures and reduced customer demand due to lockdown measures. We have to consider what scenarios and sensitivities have been included by management in the assessment of going concern; whether management have considered a sufficient range of scenarios, flexing business model appropriately; how plausible or remote the scenarios forecast are. And whether management have considered:
- The impact of any further wave of outbreaks and closures, or the loss of key members of staff;
- Risks to future viability arising, for example, from a change to business model or in consumer tastes due to the pandemic;
- The risk of breaches of covenants or regulatory requirements;
3
**BASIS Registration Limited**
## **3. KEY MATTERS ARISING DURING THE COURSE OF THE AUDIT**
||**Matters arising**|**Resolution**|
|---|---|---|
||**Revenue Recognition**
Accrued income
On review of invoices raised in January that relates to the year
under review, £8,086 of potential accrued income has been
identified.
Deferred income
On review of invoices raised within the year that relate to
periods after 31stDecember 2020, an additional £44,823 of
deferred income has been identified.
PROMPT/Wildlife Aware
It was noted during testing that income received in December
2020 for the PROMPT and Wildlife Aware schemes are not
being deferred, despite relating to periods after 31stDecember
2020.|An adjustment has been made to the
final financial statements for this
amount.
An adjustment has been made to the
final financial statements for this
amount.
Income
related
to
after
31st
December 2020 has now been
deferred.|
||**Accrued Expenses**
On review of purchase invoices paid after 31stDecember 2020,
invoices totaling £23,499 have been identified as relating to
expenses incurred in the year under review which have not
been accrued.|An adjustment has been made to the
final financial statements for this
amount.|
||**Prepaid Expenses**
On review of purchase invoices paid before 31stDecember
2020, invoices totaling £32,233 have been identified as relating
to expenses incurred after the year under review which have
not been prepaid.
On review of items already prepaid, an overstatement of
£7,667 was identified with regards to the accreditation
prepayment.
The net effect on prepayments is an understatement of £24,566|An adjustment has been made to the
final financial statements for this
amount.|
4
**BASIS Registration Limited**
## **4. SUMMARY OF UNADJUSTED DIFFERENCES**
The auditor is required to communicate all misstatements which we identified as a result of our audit process and which were not adjusted, other than those considered to be clearly trivial in size or nature, to the company’s management. Trivial was deemed to be £1,400.
Our audit approach is based on consideration of audit materiality. We determine materiality for the purpose of the company’s statutory reporting by our judgment as to what adjustments would influence the reader’s perception of the financial statements. We do not therefore seek to review all immaterial amounts.
The aggregate impact of adjusted and unadjusted misstatements is summarised in Appendix A.
## **5. OUTSTANDING MATTERS**
- Finalisation of accounts including Trustee report and sign off of going concern
- Letter of representation – to send out with the accounts
- Going concern review – Forecasts and latest management accounts received
- Post balance sheet review – latest management accounts received
- Trustee’s declarations of interests and finalisation of audit work on related parties.
5
**BASIS Registration Limited**
## **6. ETHICAL CONSIDERATIONS**
## **Provision of non-audit services**
Under the FRC Ethical Standard, the provision of audit and non-audit services to you by Smith Cooper (SC) gives rise to a potential threat to independence. The following table shows how the threats to this independence are protected against:
|**Work Done**|**Threat to**
**Independence**|**Safeguard**|
|---|---|---|
|Preparation of
statutory accounts|Self-review|SC prepares the accounts using the management accounts,
which involves inputting the figures into Caseware and
generating the statutory accounts. Disclosures to be included
which are prepared by SC e.g. operating lease disclosures
are reviewed by a senior member of the SC audit department
who are not involved with the assignment.|
|Proposing adjusting
journals|Management|The accounts and adjusting journals are all to be discussed
with informed management before finalisingthe accounts.|
|Management
accounts|Self-review|The accounts team have prepared the management
accounts
based
on
the
information
provided
by
management. The accounts department are separate from
the audit department.|
|Provision of payroll
services|Self-review|The monthly payroll is prepared by the payroll team, which
are a separate team from the audit department.|
These have all been discussed with informed management. Informed management includes Stephen Jacob (CEO).
6
**BASIS Registration Limited**
## **7. FRAUD, ERROR, LAWS AND REGULATIONS**
In accordance with International Auditing Standards, we planned our audit so that we have a reasonable expectation of detecting material misstatements in the financial statements or accounting records (including any material misstatements resulting from fraud, error or non-compliance with law or regulations.)
However, we acknowledge that no internal control structure, no matter how effective, can eliminate the possibility that errors or irregularities may occur and remain undetected. In addition, because we use selective testing in our audit, we cannot guarantee that errors or irregularities if present, will be detected. Accordingly, our audit should not be relied upon to disclose all such misstatements or frauds, errors or instances of non-compliance as may exist.
It is ultimately the directors’ responsibility to safeguard assets and to design and implement internal control systems to prevent and detect fraud, error and non-compliance with laws and regulations and to assess the risk any such matters may have on the accuracy of the financial statements.
As part of our audit procedures we made enquiries of management to obtain their assessment of the risk that fraud may cause a significant account balance to contain a material misstatement. We have reviewed and discussed the accounting and internal controls systems management has put in place to address these risks and to prevent and detect error. However, management should ensure that these matters are considered and reviewed on a regular basis.
Management have confirmed to us that they are not aware of any actual or potential fraud, error or breaches of laws and regulations which may affect the financial statements.
We have included appropriate paragraphs in the letter of representation, with regard to fraud, error, laws and regulations. The letter will require the approval of the Directors together with financial statements.
## **Management override of controls**
In addition to the procedures above, we are required to design and perform audit procedures to respond to the risk of management’s override of controls. No instances of management override have come to our attention as a result of this work.
7
## **BASIS Registration Limited**
## **8. INTERNAL CONTROLS**
The purpose or our audit is to form an opinion on the financial statements. As part of our audit we have considered internal controls in order to design and undertake our audit procedures only. Our audit does not express an opinion on the overall effectiveness of internal controls and therefore should not be relied upon to disclose all errors or weaknesses in systems and processes nor irregularities or errors not material in relation to the financial statements.
During the course of the audit certain control improvements were identified as follows:
## **Assessment**
## **Significant deficiency – findings fundamental to the management of risk.**
**Deficiency – findings which are minor to the management of risk but would strengthen existing practice.**
The following matters were identified in the current year:
|**Area and observation**|**Risk**|**Recommendation**|
|---|---|---|
|**Employee document retention**
1 instance noted of employee
identification documents not being
retained in the personnel file.|_Non compliance with employment_
_law, specifically ensuring an_
_employee’s right to work_
_documentation is retained._|_Documents should be retained in_
_line with statutory minimum_
_requirements._|
|**Coronavirus job retention scheme**
**document**
It was noted that 2 of the
employees selected for testing had
not responded to the notice that
they were being placed on
furlough.|_Non compliance with the coronavirus_
_job retention scheme may result in_
_the grant being clawed back._|_Ensure that if the scheme is used_
_again in the future that the_
_appropriate documentation is_
_obtained._|
|**Trustee expenses**
Out of a sample of 20, it was noted
that VAT had been reclaimed on 3
purchases but there was no
supporting documentation for this
VAT, such as receipt.|_Purchase VAT may be incorrectly_
_claimed on the VAT returns._|_Ensure that supporting_
_documentation for expense_
_claims is retained where_
_applicable._|
|**Declarations of interest**
Declarations were not available for
all trustees|_There is a risk unidentified related_
_party transactions could arise._|All declarations to be obtained
and maintained each year.|
8
**BASIS Registration Limited**
## **APPENDIX A – SUMMARY OF UNADJUSTED DIFFERNCES**
No further unadjusted differences.
9