Company number: 3970365 Charity number: 1090745
## ICA:UK
Report and financial statements For the year ended 30[th] June 2021
## ICA:UK
## Reference and administrative information
for the year ended 30[th] June 2021
## **Company number** 3970365
**Charity number** 1090745 **Registered office and operational address** 41 Old Birley Street, Manchester, M15 5RF
**Trustees** Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows:
Barry Winchester Chair Barbara Ridhiwani Treasurer Savita Willmott Andy Daw Derek McAuley (appointed 18[th] December 2020) **Key management** Jonathan Dudding Director to 16[th] April 2021 **personnel** Maria Franchi Director - designate 22[nd] February 2021 to 18[th] April, Director from 19[th] April 2021 Clare Vermes Administrator Alice Blackwell ToP Training Coordinator **Bankers** Unity Trust Bank Nine Brindleyplace, Birmingham, B1 2HB **Independent** Christy Lau FCCA CTA DChA, Slade & Cooper Limited **Examiner** Beehive Mill, Jersey Street, Ancoats Manchester, M4 6JG
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## ICA:UK
## Trustees’ annual report
## for the year ended 30[th] June 2021
The trustees present their report and the unaudited financial statements for the year ended 30[th] June 2021. Included within the trustees’ report is the directors’ report as required by company law.
Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.
## **Objectives and activities**
Our charitable objects are:
1. advancing the education of the public in the UK and in any part of the world in matters relating to the relief of poverty and distress; and
2. the relief of need, hardship and distress in any part of the world; and
3. advancing the education of the public in the United Kingdom and in any part of the world, but without limitation to the generality of the foregoing, in effective communication and facilitation skills and participatory methods to enable individuals to participate more effectively in societies, communities and organisations.
In line with these objectives, ICA:UK works nationally and internationally with individuals, communities and organisations to engender a culture of participation.
## For us, **a culture of participation** is characterised by:
- People’s voices being heard, differences in people and ideas being both respected and valued, meaningful conversations being held, and plans being informed by different perspectives and owned more widely. Rights are upheld, teamwork is valued _._
- Informed choice of the appropriate level of participation in any given situation
- The concept being applied at different levels- whether it is the team leader looking to build their team, the chief executive seeking to improve workplace wellbeing, the local authority wanting more meaningful involvement of the community or service users, the membership director wanting to engage with their members more effectively
In order to maximise ICA:UK’s contribution to developing and sustaining a culture of participation we focus our activities on:
- a) Reflecting and practicing our values (see box below) in our structure and our work
- b) Designing and delivering training to develop skills and knowledge for effective use of facilitation methods and skills
- c) Informing and encouraging the behaviours and attitudes which recognise and value participation amongst the wider public
- d) Working in partnership with others to promote participatory practice into new geographical areas, to deliver new products, to adapt and apply effective methods into different sectors of work
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## ICA:UK
## Trustees’ annual report
## for the year ended 30[th] June 2021
## **ICA:UK’s values**
_**Shared responsibility**_ - by fostering individual and collective responsibility, trust and honesty to create a sense of belonging
_**Constant learning**_ - by asking questions of ourselves and of others
_**Wholeness**_ - by respecting the diversity and uniqueness of individuals and communities, encompassing mind, body and spirit
_**Making a difference**_ - by making a contribution as part of our individual life journeys and enabling others to do the same
_**A global perspective**_ -by maintaining a global and historical perspective to provide a context for our actions at the local, national and international levels
The trustees review the aims, objectives and activities of the charity each year. This report looks at what the charity has achieved and the outcomes of its work in the reporting period. The trustees report the success of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. The review also helps the trustees ensure the charity's aims, objectives and activities remained focused on its stated purposes.
The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set.
## **Achievements and performance**
The response to COVID 19 and the changing situation regarding lockdown and other restrictions was the major influence on activities during the financial year to 30 June 2021. Staff continued to work mainly from home. The year was characterised by an emerging reduction in the financial health and stability enjoyed in recent years, and financial challenges have continued into 2021/22 (see below), although the charity still benefits from its very healthy starting point before the pandemic.
The organisation’s activity was led by the priorities first set out at the AGM and conference in February 2017:
- Promoting citizen activism
- Pursuing partnerships with value-aligned organisations
- Demonstrating the impact of the facilitation approach
The core activity of the organisation, and its main source of income, remained training and consultancy work with public, private and voluntary sector clients, focussing primarily on facilitation approaches. The Technology of Participation (ToP) training programme was at the heart of this work, with workshops being undertaken on a private consultancy and public course basis, delivered by ICA:UK and its training Associates. No face to face courses have been run since March 2020. Courses were moved online and in November and December 2020 ICA:UK ran it’s first public online Group Facilitation Methods and Participatory Strategic Planning courses. Both of these were well received by the participants and
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## ICA:UK
## Trustees’ annual report
## for the year ended 30[th] June 2021
represent a very solid start to the online adaptation, which continued into 2021. In addition, we have run a number of in-house training courses and/or provided online facilitation services to organisations including The Brooke, Soil Association, Internet Advertising Bureau, Boston Scientific, Light for the World, Welsh Women’s Aid, National Library Scotland.
ICA:UK and its Associates worked closely together on the development of online curriculum and materials for the GFM and further work was undertaken to improve operational systems to support programme delivery.
Last year the lockdown resulted in the suspending of the Citizen Activist programme and we were not able to revive this programme during 2020-21 but this remains our objective. As participation fees have had to rise to meet increasing costs of training, the Citizen Activist programme will provide the vehicle to enable ICA:UK to reach a wider group of people by offering low cost training, subsidised by internal and/or external funds. ICA:UK has therefore sought to develop new partnerships with like-minded organisations.
Working internationally remains an important part of the mission of ICA:UK, particularly working with other ICA branches and affiliates abroad. The two-year, £50,000 grant, secured from the then Department for International Development (DFID) in FY 2018/19, continued until the 30th June 2021, working with our partners the Safe Neighbourhood Foundation to support farmers in Uganda to improve the sustainability of farming practices in their local area. ICA:UK will continue to look out for opportunities to support partners in this way in future. During the year ICA:UK was keen to support the re-energised ICA International (ICAI).
A grant of £2600 was made to the Tujiendeleze Youth Trust Fund. We also passed on £216 received from the Global Giving appeal to the Safe Neighbourhood Foundation in Uganda. No grants were made from the Village Volunteer scheme in this FY and it is planned that new grants will be made in FY 21/22.
Following the decision of Jonathan Dudding to leave the position of Director an intensive recruitment and selection process was undertaken and the Board was pleased to appoint Maria Franchi. The Board were pleased with the response which reinforced the value of our work. A handover process was successfully implemented and the Board would like to thank Jonathan for his service and commitment to ICA:UK and welcome Maria to the organisation.
In November the Board approved the Non-Employee Handbook and the Climate Policy. ICA:UK declared a climate crisis on the website and a blog was written on the topic.
The Board continued its previous practice of meeting regularly via an online platform, thus minimising travel-costs and travel-time, and enabling all Trustees to engage fully without logistical difficulty. During the year one new Trustee, Derek McAuley, was invited to join the Board in December 2020 and was then confirmed as Trustee at the AGM in February 2021.
The Trustees are hugely grateful, as ever, to the dedicated team of staff and Associates who have contributed so much to the success of ICA:UK during this most recent year.
## **Beneficiaries of our services**
Over this year ICA:UK has benefitted 4 different groups of people:
- a) For the 291 people who attend our main courses (123 public and 168 in-house) we receive consistently high levels of feedback, with participants stating how they have benefitted from the training with increased facilitation skills, greater confidence in working with others, and practical tools for helping them solve issues they face in their work.
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## ICA:UK
## Trustees’ annual report
## for the year ended 30[th] June 2021
- b) This year we were also able to reach 215 people through our short sessions we offered online.
- c) Our work with our partner organisations in Europe and Africa and with organisational clients in the UK has led to them being able to strengthen their own programmes and organisations, and so reach their target groups more effectively
- d) In addition to external actors, ICA:UK has an ongoing programme of developing its network of Associates (approx 14 people) who benefit from income-generating opportunities, from opportunities for professional development, from being part of a community of practice and being able to learn and share with each other. This in turn enables them to spread good practice in facilitation and participation to their own clients.
## **Financial review**
ICA:UK’s financial position deteriorated somewhat during 2020/21, with reserves dropping from £56,120 at end June 2020 to £45,455 at end of June 2021, more than reversing the gain from £49,270 the previous year. However, the closing reserves were still healthy for the 2020/21 financial year. Cash holdings have been at or over £50k for several years, so it was also disappointing to see cash at the end of June 2021 down to only £45k as the reserves and cash changes indicate the organisation’s many years of financial stability are now showing a shift into a far less certain period. Many charities have had struggles during the pandemic and ICA:UK is not immune to this.
There has also been a drop in income, from £189.7k in 2019/20 from £166.6k in 2020/21. This drop is largely because the restricted grant funding from the UK government DFID (later renamed FCDO) was lower by £17k in our 2020/21 financial year. This grant was for our work with the Safe Neighbourhood Foundation in Uganda. ICA:UK has managed a number of similar grants for DFID with African partners in the past. Unfortunately, the outlook for similar grants in the next few years is not looking promising. A further reason for lower income in 2020/21 is that in relation to the pandemic, ICA:UK received unrestricted grant funding from Manchester City Council in 2019/20 of £10k and in 2020/21 they gave us a smaller unrestricted grant of £6k. Both of these were very gratefully received and have helped us adapt to challenging circumstances by developing online courses to replace our normal face to face course provision.
In the first half of 2021/22 ICA:UK has continued to face financial challenges and as a result cash reserves have continued to drop, however they remain at a reasonable level. Trustees have been looking carefully at what has happened and are taking steps to ensure we can continue to deliver our programme of training courses, while looking to grow new partnerships where we can.
## **Reserves policy**
The Trustees regard the equivalent of 4 months of operational expenses as a reasonable level of Reserves, in normal circumstances. Our core costs currently run at a monthly equivalent of around £5k, so the June 2021 closing unrestricted reserve of £44.8k more than meets this requirement.
## **Plans for the future**
During late 2021 a Participatory Strategic Planning process was undertaken, involving Trustees, Staff and Associates. The outcome will be finalised during 2021-22 and will provide a basis for the development of ICA:UK going forward with a focus on supporting transformational change and inclusion and diversity.
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## ICA:UK
## Trustees’ annual report
## for the year ended 30[th] June 2021
We will continue to develop our structure and processes to support these activities. We will continue to involve our Associates in delivering our work and influencing the direction of the organisation.
## **Structure, governance and management**
ICA:UK is a charitable company limited by guarantee, was incorporated on 11th April 2000 by Trustees of the pre-existing Institute of Cultural Affairs Development Trust (charity no. 293086, registered 1985). It commenced operations on February 15th 2001, and registration as a charity was completed on February 21st 2002. ICA Development Trust subsequently wound itself up in 2003.
The company was established under a memorandum of association which established the objects and powers of the charitable company and is governed under its articles of association.
Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 30[th] June 2021 was 21 (2020: 20). The trustees are also members of the charity. The trustees have no beneficial interest in the charity.
The recruitment process for Trustees begins with the dissemination of a call for applications both within and beyond the ICA:UK network. Expressions of interest are invited and usually followed by an informal discussion between an existing Trustee and the prospective candidate. More formal interviews may also take place. Names of prospective trustees are then put forward to the Annual General Meeting where the members present vote on whether they should join the Board or not. All trustees give their time voluntarily and receive no remuneration / benefits from the charity. Any expenses reclaimed from the charity are set out in Note 9 to the accounts.
## **Related parties and relationships with other organisations**
ICA:UK is a member of the following:
1. Bond: The British Overseas NGOs in Development
2. ICAI: The Institute of Cultural Affairs International
3. NCVO: The National Council for Voluntary Organisations
4. Work for Change: the workplace cooperative where ICA:UK’s office is located in Manchester
ICA:UK also regularly works with / links with the following:
- A. IAF: the International Association of Facilitators
- B. iNetwork: a network supporting public and voluntary sector organisations particularly in the North West of England
Our newest Trustee, Derek McAuley is the spouse of one of our Associate Trainers, Martin Gilbraith.
Derek brings valuable skills and experience to his work as a Trustee of ICA:UK, having worked as a senior manager in the NHS specialising in Human Resources and Corporate Governance, and more recently having been Chief Officer of the General Assembly of Unitarian and Free Christian Churches from 2009 to 2019. The latter is a substantially bigger charity than ICA:UK. Derek has been an ICA:UK member for many years.
Martin was a staff member of ICA:UK for 9 years up to 2012 and is a long-term supporter of ICA:UK and ICA International. Since 2012 he has worked as a professional facilitator, trainer and consultant, and he
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## ICA:UK
## Trustees’ annual report
## for the year ended 30[th] June 2021
has his own small company, Martin Gilbraith Associates Ltd. He is one of ten Associates / Trainers who undertook pieces of work for ICA:UK between July 20 and June 21. One of the requirements of the licence arrangements for Lead Trainers such as Martin, who utilise ICA specific methods in their own facilitation work, is that they train at least one of our core Technology of Participation courses, ‘Group Facilitation Methods’ per annum. During the 20-21 financial year Martin earned £4,803 in Associate fees from ICA:UK. This was part of the £100,033 total fees paid to Associates in the year (see notes 5 and 9 to the Accounts). During the year he and his company also contributed donations of £370 and annual licence fee of £50 to ICA:UK.
ICA:UK Trustees are mindful of the potential conflict of interest that could arise from Derek becoming a Trustee, but consider the risk is small and manageable. Trustees are not involved in choosing which Associate will undertake particular pieces of work, as that is done by our staff. Also, Associates are all paid according to standard rates for delivering training courses. Derek steps out of any Trustee discussion and decision that relates to his spouse.
## **Remuneration policy for key management personnel**
It is the intention of the ICA:UK Board to establish salaries on a recognised payscale when resources allow. In line with this commitment, salaries are reviewed from time to time, normally after taking advice from an external HR specialist. The charity also meets its legal obligations in regards the Government initiative on stakeholder pensions. All employees have signed up for the scheme.
## **Risk management**
The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that arrangements are in place to mitigate our exposure to the major risks.
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## ICA:UK
## Trustees’ annual report
## for the year ended 30[th] June 2021
## **Statement of responsibilities of the trustees**
The trustees (who are also directors of ICA:UK for the purposes of company law) are responsible for preparing the trustees’ annual 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 trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
- Select suitable accounting policies and then apply them consistently
- Observe the methods and principles in the Charities SORP
- Make judgements and estimates that are reasonable and prudent
- State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
This report has been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime of the Companies Act 2006.
The trustees’ annual report has been approved by the trustees on 19[th] February 2022 and signed on their behalf by
Barbara Ridhiwani
Treasurer
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## **Independent Examiner’s report**
## **to the trustees of ICA:UK**
I report to the charity trustees on my examination of the accounts of the company for the year ended 30th June 2021 which are set out on pages 10 to 26.
## **Responsibilities and basis of report**
As the charity trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Christy Lau FCCA CTA DChA Slade & Cooper Ltd. Chartered Certified Accountants Beehive Mill Jersey Street Ancoats Manchester M4 6JG
28[th] March 2022
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## ICA:UK
## Statement of Financial Activities
(including Income and Expenditure account) for the year ended 30 June 2021
|Unrestricted
funds
Note
£
**Income from:**
Donations and legacies
3
2,640
Charitable activities
4
146,330
**Total income**
**148,970**
**Expenditure on:**
Charitable activities
5
159,629
**Total expenditure**
**159,629**
7
**(10,659)**
Transfer between funds
-
**Net movement in funds for the year**
**(10,659)**
**Reconciliation of funds**
Total funds brought forward
56,114
**Total funds carried forward**
**45,455**
**Net income/(expenditure) for the**
**year**|Restricted
funds
£
-
17,656
**17,656**
17,662
**17,662**
**(6)**
-
**(6)**
6
**-**|Total funds
2021
£
2,640
163,986
**166,626**
177,291
**177,291**
**(10,665)**
-
**(10,665)**
56,120
**45,455**|_Total funds_
_2020_
_£_
_2,179_
_187,532_|
|---|---|---|---|
||||**_189,711_**|
||||_182,861_|
||||**_182,861_**|
||||**_6,850_**
_-_|
||||**_6,850_**
_49,270_|
||||**_56,120_**|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
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## ICA:UK
## Company number 3970365
## Balance sheet as at 30 June 2021
|Note
£
£
**Current assets**
Stock
1,860
Debtors
13
19,249
Cash at bank and in hand
44,982
**Total current assets**
**66,091**
**Liabilities**
Creditors: amounts falling
due in less than one year
15
(20,636)
**Net current assets**
**45,455**
**Total assets less current liabilities**
45,455
**Net assets**
**45,455**
**The funds of the charity:**
Restricted income funds
16
-
Unrestricted income funds
17
45,455
**Total charity funds**
**45,455**
2021|_£_
_£_
_2,720_
_12,626_
_61,741_
**_77,087_**
_(20,967)_
**_56,120_**
_56,120_
**_56,120_**
_6_
_56,114_
**_56,120_**
_2020_|_£_
_£_
_2,720_
_12,626_
_61,741_
**_77,087_**
_(20,967)_
**_56,120_**
_56,120_
**_56,120_**
_6_
_56,114_
**_56,120_**
_2020_|
|---|---|---|
|||_56,120_
**_56,120_**|
|||_6_
_56,114_|
|||**_56,120_**|
For the year in question, the company was entitled to exemption from an audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476,
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts
These accounts are prepared in accordance with the special provisions of part 15 of the Companies Act 2006 relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.
The notes on pages 13 to 26 form part of these accounts.
Approved by the trustees on 19/02/2022 and signed on their behalf by:
Barry Winchester (Chair)
Barbara Ridhiwani (Treasurer)
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## ICA:UK
## Statement of Cash Flows for the year ending 30 June 2021
|Note
2021
£
**Cash provided by/(used in) operating activities**
**Net income/(expenditure) for the year**
(10,665)
**Adjustments for:**
Decrease/(increase) in stock
860
Decrease/(increase) in debtors
(6,623)
Increase/(decrease) in creditors
(331)
(16,759)
(16,759)
Cash and cash equivalents at the beginning of the year
61,741
**Cash and cash equivalents at the end of the year**
**44,982**
**Net cash provided by/(used in) operating**
Increase/(decrease) in cash and cash
equivalents in the year|_2020_
_£_
_6,850_
_(2,285)_
_12,198_
_(7,548)_|
|---|---|
||_9,215_|
||_9,215_
_52,526_|
||**_61,741_**|
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ICA:UK
Notes to the accounts for the year ended 30 June 2021
## **1 Accounting policies**
The principal accounting policies adopted, judgments and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
## **a Basis of preparation**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), second edition - October 2019 (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006 and UK Generally Accepted Accounting Practice.
ICA:UK meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.
## **b Preparation of the accounts on a going concern basis**
The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern.
There are no key judgments which the trustees have made which have a significant effect on the accounts.
The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next reporting period.
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ICA:UK
Notes to the accounts for the year ended 30 June 2021 (continued)
## **c Income**
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.
Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.
Income received in advance of a provision of a specified service is deferred until the criteria for income recognition are met.
## **d Donated services and facilities**
Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised; refer to the trustees’ annual report for more information about their contribution.
On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
## **e Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.
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ICA:UK
Notes to the accounts for the year ended 30 June 2021 (continued)
## **f Fund accounting**
Unrestricted funds are available to spend on activities that further any of the purposes of charity.
Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose.
Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific projects being undertaken by the charity.
## **g Expenditure and irrecoverable VAT**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
- Expenditure on charitable activities includes the costs undertaken to further the purposes of the charity and their associated support costs.
- Other expenditure represents those items not falling into any other heading.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
## **h Tangible fixed assets**
Individual fixed assets costing £1,000 or more are capitalised at cost and are depreciated over their estimated useful economic lives. There are currently no fixed assets.
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ICA:UK
Notes to the accounts for the year ended 30 June 2021 (continued)
## **i Stock**
Stock is included at the lower of cost or net realisable value. In general, cost is determined on a first in, first out basis. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation. Provision is made where necessary for obsolete, slow moving, and defective stocks. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.
## **j Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **k Cash at bank and in hand**
Cash at bank and cash 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.
## **l Creditors and provisions**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due
## **m 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.
## **n Pensions**
Employees of the charity are entitled to join a defined contribution ‘money purchase’ scheme. The charity’s contribution is restricted to the contributions disclosed in note 8. There were £209 outstanding contributions at the year end (2020: £125).
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ICA:UK
Notes to the accounts for the year ended 30 June 2021 (continued)
## **2 Legal status of the charity**
The charity is a company limited by guarantee registered in England and Wales and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The registered office address is disclosed on page 1.
## **3 Income from donations and legacies**
|Donations
**Total**|Total 2021
£
2,640
2,640|_Total 2020_
_£_
_2,179_|
|---|---|---|
|||_2,179_|
All donations and legacies income is unrestricted.
17
ICA:UK
Notes to the accounts for the year ended 30 June 2021 (continued)
## **4 Income from charitable activities**
|**Grants**
DFID
Subtotal
**Fees and other income**
Fees
Membership subscriptions
Sales of goods & services
Subtotal
**Total**
**_Grants_**
_DFID_
_Subtotal_
**_Fees and other income_**
_Fees_
_Membership subscriptions_
_Sales of goods & services_
_Subtotal_
**_Total_**
**_Previous reporting_**
**_period_**
**Current reporting**
**period**
Manchester City Council
_Manchester City Council_
_(COVID-19)_|Unrestricted
£
-
6,163
6,163
136,713
50
3,404
140,167
146,330
_Unrestricted_
_£_
_-_
_10,000_
_10,000_
_132,774_
_70_
_10,696_
_143,540_
_153,540_|Restricted
£
17,656
-
17,656
-
-
-
-
17,656
_Restricted_
_£_
_33,992_
_-_
_33,992_
_-_
_-_
_-_
_-_
_33,992_|Total 2021
£
17,656
6,163|
|---|---|---|---|
||||23,819
136,713
50
3,404|
||||140,167|
||||163,986|
||||_Total 2020_
_£_
_33,992_
_10,000_|
||||_43,992_
_132,774_
_70_
_10,696_|
||||_143,540_|
||||_187,532_|
18
ICA:UK
Notes to the accounts for the year ended 30 June 2021 (continued)
## **5 Analysis of expenditure on charitable activities**
|Staff costs
Associate fees
Travel & subsistence
Venues & catering
Grants awarded
Cost of goods & services sold
IT support
Premises costs
Insurance
Print, post & stationery
Communications
Subscriptions
Advertising & promotion
Bad debts
Bank charges
Governance costs (see note 6)
Restricted expenditure
Unrestricted expenditure
Partner organisation transfer (Safe
Neighbourhood Foundation in Uganda)|Total 2021
£
42,655
100,033
1,635
(295)
2,816
14,729
2,367
1,865
4,338
666
401
544
751
395
100
1,989
2,302
177,291
2021
£
17,662
159,629
177,291|_Total 2020_
_£_
_37,494_
_72,232_
_5,884_
_13,364_
_-_
_29,390_
_5,954_
_2,332_
_3,717_
_636_
_1,212_
_532_
_311_
_-_
_740_
_2,279_
_6,784_|
|---|---|---|
|||182,861|
|||_2020_
_£_
_33,986_
_148,875_|
|||_182,861_|
19
Notes to the accounts for the year ended 30 June 2021 (continued)
## ICA:UK
## **6 Analysis of governance costs**
|Accountancy & independent examination (net)
Accountancy & independent examination (VAT)
Board meeting expenses and AGM
**7**
**Net income/(expenditure) for the year**
This is stated after charging/(crediting):
Independent examination
Accountancy and other services
Independent examiner's fee|2021
£
1,918
384
-
2,302
2021
£
240
1,678|_2020_
_£_
_2,044_
_408_
_4,332_|
|---|---|---|
|||_6,784_|
|||_2020_
_£_
_240_
_1,804_|
20
Notes to the accounts for the year ended 30 June 2021 (continued)
## ICA:UK
## **8 Staff costs**
Staff costs during the year were as follows:
|ff costs during the year were as follows:|||
|---|---|---|
|Wages and salaries
Social security costs
Pension costs|2021
£
41,992
-
663
42,655|_2020_
_£_
_36,941_
_-_
_553_|
|||_37,494_|
In both 2019/20 and 2020/21, the charity claimed the Employment Allowance against the employers Class 1 NICs, which covered the full liability to HMRC.
No employees has employee benefits in excess of £60,000 (2020: Nil).
The average number of staff employed during the period was 3 (2020: 3). The average full time equivalent number of staff employed during the period was 1.6 (2020: 1.5).
The key management personnel includes the Trustees, the Director, the Administrator and the ToP Training Coordinator. The total employee benefits of the key management personnel of the charity were £42,655 (2020: £37,494).
## **9 Trustee remuneration and expenses, and related party transactions**
In December 2020 Derek McAuley, who is the spouse of one of our long-time Associates, became a Trustee. During 2020-21 his spouse, Martin Gilbraith received £4,803 remuneration in Associate fees out of the year’s total £100,033 Associate fees. Martin’s remuneration as an Associate in 2019-20 was £2,601 out of a total £72,232. Please also see further information within the annual report (page 6-7 above). In the 2019-20 financial year, neither the trustees nor any persons connected with them received any remuneration.
In October 2020, before Derek’s appointment as a Trustee, Martin Gilbraith passed across to ICAUK a £1000 advance payment for part of a training contract his company had entered into before the pandemic and had been unable to deliver face to face, whereas ICA:UK was at that time developing an online version of the training course. The online course was eventually delivered to the client by ICA:UK in February 2021, with Martin as one of two associate trainers involved.
In the 2019-20 financial year no trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity, including guarantees, during the year (2020: nil).
No trustee received travel and subsistence expenses during the 2020-21 year. In 2019-20 one trustee received £50 travel expenses.
There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.
21
ICA:UK
Notes to the accounts for the year ended 30 June 2021 (continued)
## **10 Government grants**
The government grants recognised in the accounts were as follows:
|Manchester City Council
DFID (see Note 16 below)|2021
£
6,163
17,656
23,819|_2020_
_£_
_10,000_
_33,992_|
|---|---|---|
|||_43,992_|
## **11 Corporation tax**
The charity is exempt from tax on income and gains falling within Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity.
## **12 Grants awarded**
|Recipient
Fund
TYTF
GG
**Debtors**
Fees receivable
Other debtors
Prepayments and accrued income
**Cash at bank and in hand**
Short term deposits
Cash at bank and in hand
Tujiendeleze Youth Trust Fund
Safe Neighbourhood Foundation|2021
£
2,600
216
2,816
2021
£
15,815
1,593
1,841
19,249
2021
£
34
44,948
44,982|_2020_
_£_
_-_
_-_|
|---|---|---|
|||_-_|
|||_2020_
_£_
_11,097_
_-_
_1,529_|
|||_12,626_|
|||_2020_
_£_
_34_
_61,707_|
|||_61,741_|
## **13 Debtors**
## **14 Cash at bank and in hand**
22
## ICA:UK
## Notes to the accounts for the year ended 30 June 2021 (continued)
## **15 Creditors: amounts falling due within one year**
|Trade creditors
Other creditors and accruals
Fees in advance
Taxation and social security costs|2021
£
-
8,155
11,906
575
20,636|_2020_
_£_
_52_
_11,043_
_9,652_
_220_|
|---|---|---|
|||_20,967_|
## **16 Analysis of movements in restricted funds**
|DFID
Total
_DFID_
_Total_
**Current reporting**
**period**
**Name of**
**restricted fund**
**_Previous reporting_**
**_period_**|Balance at
1 July
2020
£
6
6
_Balance_
_at 1 July_
_2019_
_£_
_-_
_-_
**Description,**
|Income
Expenditure
Transfers
£
£
£
17,656
(17,662)
17,656
(17,662)
-
_Income_
_Expenditure_
_Transfers_
_£_
_£_
_£_
_33,992_
_(33,986)_
_-_
_33,992_
_(33,986)_
_-_
**nature and purposes of the fund**|Balance at
30 June
2021
£
-|
|---|---|---|---|
||||-|
||||_Balance at_
_30 June_
_2020_
_£_
_6_|
||||_6_|
|||||
DFID ICA:UK was awarded a grant from the Department for International Development (DFID) in 2019 through their Small Charities Challenge Fund. The funding is for the “Developing Farmers Skills in Budaka” (a District in Uganda). The project, which comprises mostly training and demonstration of agricultural and environmentally sound practices, is being implemented by the Safe Neighbourhood Foundation, with whom ICA:UK has been working for over 10 years. ICA:UK is the project holder with responsibility for oversight. The project also includes some specific capacity development activities for SNF and conducted by ICA:UK.
23
## ICA:UK
## Notes to the accounts for the year ended 30 June 2021 (continued)
## **17 Analysis of movement in unrestricted funds**
|**Current reporting**
**period**
Village Volunteers
(VV)
General fund
TYTF
Globalgiving appeal
(GG)
_General fund_
_Village Volunteers_
_(VV)_
_TYTF_
_Globalgiving appeal_
_(GG)_
**_Previous reporting_**
**_period_**|Balance
at 1 July
2020
£
49,929
4,006
2,126
53
56,114
_Balance_
_at 1 July_
_2019_
_£_
_44,925_
_3,331_
_961_
_53_
_49,270_
|Income
£
146,624
990
1,140
216
148,970
_Income_
_£_
_153,879_
_675_
_1,165_
_-_
_155,719_|Expenditure
£
(156,789)
-
(2,624)
(216)
(159,629)
_Expenditure_
_£_
_(148,875)_
_-_
_-_
_-_
_(148,875)_|Transfers
£
-
-
-
-
_Transfers_
_£_
_-_
_-_
_-_
_-_
_-_|Balance at
30 June
2021
£
39,764
4,996
642
53|
|---|---|---|---|---|---|
||||||45,455|
||||||_Balance at_
_30 June_
_2020_
_£_
_49,929_
_4,006_
_2,126_
_53_|
||||||_56,114_|
24
ICA:UK
Notes to the accounts for the year ended 30 June 2021 (continued)
## **17 Analysis of movement in unrestricted funds (cont.)**
## **Name of unrestricted fund Description, nature and purposes of the fund**
General fund The free reserves after allowing for all designated funds Village Volunteers Running as a programme since 1985, ICA:UK inherited this scheme from Sponsorship Scheme the ICA Development Trust. The scheme collects money from individuals in (VV) the UK for the purpose of supporting ICA:UK partners in Africa, assesses proposals from partners against the Fund’s criteria and, under the direction of the ICA:UK Trustees, awards grants. One grant of approximately £2,000 is usually awarded every year, with ICA Benin being the most recent beneficiary. The uncertainty caused by COVID 19 led to no grant being awarded in FY19-20. The Tujiendeleze Registered with the Ministry of Lands in Kenya, the purpose of the Trust is Youth Trust Fund to support bright and capable young people, who are active in Community (TYTF) Development but in need of financial assistance, to pursue their dreams of entering higher education. ICA:UK works in partnership with them as part of our overall mission to develop local organisations in Africa. Globalgiving appeal Appeals launched by ICA:UK on behalf of partners, attracting individual (GG) donations for projects (e.g. HIV/AIDS in Kenya, computer literacy in Benin). Currently we have one project seeking funds on the Globalgiving site, for Village Savings and Loans Associations in Uganda. This was posted in April 2020 (during the Covid pandemic) and attracted little interest.
We intend to continue providing such support to our partners for the foreseeable future, as part of our wider strategy of offering long term support to local organisations with similar values.
25
## ICA:UK
## Notes to the accounts for the year ended 30 June 2021 (continued)
## **18 Analysis of net assets between funds**
|Net current assets/(liabilities)
Total
_Net current assets/(liabilities)_
_Total_
**_Previous reporting_**
**_period_**
**Current reporting**
**period**|General
fund
£
39,764
39,764
_General_
_fund_
_£_
_49,929_
_49,929_|Designated
funds
£
5,691
5,691
_Designated_
_funds_
_£_
_6,185_
_6,185_|Restricted
funds
£
-
-
_Restricted_
_funds_
_£_
_6_
_6_|Total
£
45,455|
|---|---|---|---|---|
|||||45,455|
|||||_Total_
_£_
_56,120_|
|||||_56,120_|
26