idpe_ GROUPAND SUBSIDIARY ANNUAL REPORT AND CONSOLIDATED ACCOUNTS FOR THE PERIOD I JANUARY 2020 TO 31 DECEMBER 2020 Charity Registration Number: 1100927 Company Registration Number: 3761777
IDPE REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 CONTENTS Sectlon Pages Legal and Administrative Information Trustees, Report Independent Auditorfs Report 10-12 Consolidated Statement of Financial Activities 13 Balance sheets Group Charity 14 15 Statement of Cash Flows and Consolidated Statement of Cash Flows 16 Notes to the accounts 17-23 Page O
IDPE REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Legal and Administrative Information Registered Charity Number 11(X)927 Company Number 3761777 Trustees C Atkinson A Beales P Britton M Coote D Goodhew K Hartshorn J Hodges S Jones M Lindo P Rothwell, Note. Member of the Finance ond General Purposes Committee Chairman K Hartshorn Chief Executive Officers J Beckett L Bennett Charity Correspondent VRoe Registered offite address: Kelston Park Bath BAI 9AE Independent Auditor: MHA Monahans Fortescue House Court Street Trowbridge BA14 8FA Page 1
IDPE REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Banker5: CAF Bank 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ Barclays Bank UK PLC I Churchill Place London E14 5HP Page 2
IDPE REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 TRUSTEES REPORT Trustees, Report The Trustees present their report which also incorporates the directors report for the period l January 2020 to 31 December 2020. IDPE is a company limited by guarantee and a registered charity governed by its memorandum and articles. Charity number.. IICX)927. Company number: 3761777. The directors of the charitable company I'the charity'l are its trustees for the purpose of charity law and throughout this report are collectivelv referred to as the Trustees. IDPE wa5 registered as a company on 28 April 1999 and as a charity on 27 November 2003. Legal and administrative information set out on pages l and 2 forms part of the report. The accounts comply with current statutory requirements, the Memorandum and Articles of Association and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS1021. Oblects of the charlty The objects I'the Objects") of the charity, as laid down in the Memorandum of Association, are to promote education for the benefit of the public bv: providing training in development, particularly alumni relations and fundraising, relevant to the provision of education promoting high standards in development, particularly alumni relations and fundraising, relevant to the provision of education providing guidance and support for development, particularly alumni relations and fundraising, relevant to the provision of education carrying out research relevant to providing training in development, particularly alumni relations and fundraising, relevant to the provision of education Policies adopted to further the objects of the charity IDPE aims to enable all schools, from the state and independent sectors, to develop cultures of giving, so that they can provide the best educational experience for young people. IDPE does this by championing best practice in schools, fundraising and engagement through providing training, guidance, support, benchmarking and partnership work across the schools, sector. Structure, governance and management IDPE is governed by the Board of Trustees. The list of trustees is set out on page l of this report. There is one sub-committee- the Finance and General Purposes Committee. As at 31" December there are nine employees of the Charity= one is full time and eight are part-time. The day to day management of IDPE is under the direction of the Chief Executive Officers. Methods adopted for recruiting and appointing new trustees The Articles of Association of IDPE empower it to have a minimum of five trustees with no maximum specified. All members are invited annually to stand for election as a trustee. These nominations are put to the full membership for voting at the AGM. Page 3
IDPE REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 TRUSTEES REPORT A new category of nominated trustee was introduced in 2014 and this person can be anyone qualified to be a trustee whom the board wishes to appoint. They are not elected at the AGM, though members must be informed. They also can serve for a maximum of six years but have to be elected again after three. Constitutional provisions for trustee appointments One third lor the number nearest one thirdl of the Trustees must retire at each AGM, those longest in office retiring first and the choice between any of equal service being made by drawing lots. Each trustee may serve for up to six years and may act as an officer of the Institute (Chairman or Deputy Chairmanl for no more than three years, either consecutively or in total, in any one position. Individuals who have completed six years as a Trustee must then retire for at least three years before they can be considered for re-election. In carrying out their duties the Trustees meet at least three times a year and liaise via email between meetings. In accordance with IDPE'S governing document, trustee meetings can be held either remotely or face-to-face. Any virtual meeting must enable all trustees to be seen and heard. Policies and procedures adopted for the induction and training of trustees On election to the Board all new trustees receive an extensive information pack giving them information on the Charity, its governance, management and policies and the latest available guidance on being a trustee from the Charity Commission. All new trustees attend an introductory briefing with the Chairman and Chief Executive Officers before their first Board Meeting. The specific induction training for each trustee varies according to the particular portfolio they are taking on. Where possible, this includes close liaison with the previous incumbent. Any other organisations with which IDPE co-operates in pursuit of its charitable objectives IDPE actively engages with organisations across both the education and fundraising sectors to champion best practice in schools, fundraisinE and engagement. IDPE provides a voice for all schools, through working closely with ISC, HMC, AGBIS, ISBA, GSA AMCIS, ISBL, and GSHA within the schools, sector, as well as the Fundraising Regulator and Institute of Fundraising. IDPE membership Institutional This is available to educational institutions and provides access to training and support, benchmarking and resources, for all members of staff involved in professional fundraising and engagement within a school. This class of member has one vote at general meetings by a nominated representative. Associate In a few special cases the Board may allow an individual working for a qualifying non-profit organisation or looking to enter the sector, to join as an individual member. Benefits of membership in this category are the same as for an institutional member but this category of membership does not have voting rights at general meetings. Page 4
IDPE REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 TRUSTEES REPORT Cor orate Partnershi This is available to those organisations not eligible to join as an educational institution. Employees, directors or partners may attend IDPE'S Annual Conference and professional development programme and/or specialist forums and regional meetinES, by invitation. E-bulletins are sent to a nominated email address. Corporate partners do not have a vote at general meetings and they are not eligible to propose an employee, for example, for election as a Trustee. They do pay an annual partnership fee and benefit from a listing on the supplier section of IDPE'S website. IDPE also works with a number of major corporate partners, offering bespoke packages of engagement to these corporate partners in return for sharing their support and expertise with the schools, community. Review of attivities and future developments General Re ort 2020 and the pandemic saw IDPE move from a focus on the long-term priorities in its business plan, to addressing the short-term needs of its members. We shared information from across the sector via podcasts, articles and webinars, to support all schools during these unprecedented times. The IDPE COVID-19 support paEe has had over 7000 views so far and the average number of webinar attendees in 2020 was up 33% compared to 2019. We moved our termly regional meetings online and provided virtual coffee and catch ups, an opportunity for development professionals, including those on furlough, to network and share their experiences. In 2020, 19% of member schools attended virtual regional meetings in the spring, whilst 39% of member schools attended regional coffee and catch ups during the autumn term. IDPE'S annual face-to-face conference was postponed. In its place, we created IDPE Live, our first-ever virtual learning experience, which provided two weeks of FREE training and support for the education sector. SupportinE nearly 600 development professionals from 291 schools, IDPE Live provided an opportunity to share emerging best practice and the latest innovations from across the sector. lOO% of IDPE Live respondents said that they would recommend IDPE Live to a colleague. We developed a new virtual professional development offer, including three new training programmes for 2020121, which have all over-performed.. New to development - a two-year, holistic training programme offering an introduction to all aspects of professional fundraising and engagement in schools Fundraising for school leaders- a fundraising programme designed to fast-track heads land aspiring heads) of independent schools to set up and lead effective professional fundraising programmes. Personal and professional effectiveness- a programme designed to support development professionals feel more empowered, positive, in control, and to benefit from enhanced motivation and a greater sense of well-being. Alongside these new professional development programmes, we have continued to provide a series of webinars and community forums to support members, professional development, with over 615 attendees in 2020. In the autumn term, IDPE launched a new online resource library, as part of our ongoing commitment to members to provide accessible training and support. This new online resource library includes a Page 5
IDPE REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 TRUSTEES REPORT range of resources, such as case studies, templates, articles, webinars and podcasts, to inspire and support members, throughout their development journey. Despite the impact of the pandemic on many businesses, we continued to work closely with our 25 corporate partners to provide opportunities to share their expertise with the schools, development community. It is also thanks to their sponsorship, we were able to offer IDPE Live for free. Much of the work IDPE does could not have been achieved without the valuable efforts and time contributed by our volunteers. In addition to the re8ional volunteers and trustees, other volunteers give their time and expertise throughout the year, speaking at events, mentoring those newer to the profession, and acting as IDPE advocates in their peer groups. Throughout the pandemic this support, reassurance and sharing of expertise has been invaluable. We would like to take this opportunity to thank the IDPE community for their continued support and commitment during 2020. As we look to the future, and schools consider how to move forward, IDPE will continue to champion emerging best practice through providing training, guidance, support and benchmarking to support all schools achieve fundraising and engagement success in 2021. Governance and Constitution Due to the Coronavirus pandemic and following guidance from both Companies House and the Charity Commission, IDPE cancelled its Annual General Meeting in 2020. Members were informed and invited to vote remotely on the re-election of three trustees- Clare Atkinson, Simon Jones and Philip Rothwell. Members also voted on extending Andrew Beales tenure by one year as he was due to leave the Board of Trustees at the 2020 Annual General Meeting. This action was approved by the Charity Commission and Companies House. During the year, Karen Hartshorn's status on the board of trustees changed to that of nominated trustee. In accordance with the governing document, if an individual does not work in the schools, development sector they can only remain on the board if the current board members approve this. The board voted to approve to change Karen's status from a member-elected trustee to a nominated trustee and members were informed. Karen Hartshorn remains as Chairman of IDPE until June 2021 and a campaign to recruit a successor will begin in March 2021. Membershi Develo ment IDPE'S membership remained strong, with only a small hit to members despite the damaging effect of the pandemic on schools. At the end of 2020 IDPE'S membership was down slightly from 390 to 375 member schools. External Relations In response to the pandemic, IDPE has been championing the importance of continued investment in schools, development through our campaign, Don't press pause on development. IDPE has worked in partnership with a number of schools. associations including AGBIS, ISBA, HMC and GSA to share the value of schools, fundraising and engagement programmes, through jointly-branded webinars, podcasts and thought pieces. Page 6
IDPE REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 TRUSTEES REPORT IDPE has developed a new training programme specifically to improve school leaders, knowledge and understanding of schools, fundraising. In partnership with HMC and GSA, the IDPE Fundraising for school leaders programme has been designed to fast-track heads land aspiring headsl of independent schools to set up and lead effective professional fundraising programmes. Later this year, IDPE will be launching a free online toolkit specifically for state school leaders, which will provide support to any state school looking to develop their fundraising function. IDPE will continue to collaborate with organisations representing senior leaders in schools in 2022, to disseminate best practice and ensure schools develop cultures of giving including a major event in partnership with the HMC, the fifth School Bursaries Conference. COVID-19- our res onse The impact of COVID-19 on IDPE member schools was mixed, with some schools furloughing entire development teams, some reducing staffing levels and focussing purely on engagement activity, and others continuing to fundraise for hardship funds or resources such as IT provision, for the most vulnerable in their school community. IDPE continued to support both member schools and the wider education sector throughout the pandemic. We championed the importance of development through ourf Don't press pause on development, campaign and evolved our professional development programme and services to deliver these virtually. As a business, IDPE focussed on: Retaining income from existing members and partners- we have seen almost 90% of members renew their membership in 2021 (compared with 94% in 20201 Mitigating risk and reducing costs- we reduced office costs, furloughedlreduced hours of staff and made three redundancies in 2020 Diversifying services and optimising income from new markets- IDPE has introduced three new professional development programmes, and a new virtual annual conference for 2021 COVID-19- the future Moving forward, IDPE will focus on two key priorities= Retaining income from existing members and partners Raising the profile of schools, development and enhancing IDPE'S reputation across the education sector We will continue to gather intelliEence about the chanEing needs and challenges of schools, and will evolve our Sei(e5 to ensure relevance and value. We will focus on personally engaging with our members and corporate partners to strengthen relationships, whilst developing new initiatives to: add choice, value and retain income from existing members and corporate partners through providing a broader offer Icapturing a larger share of school budgets) benchmark performance of schools, fundraising and engagement programmes, evaluating the impact of COVID-19 celebrate philanthropy and engagement in schools through a new giving week engage new markets and attract income from new schools and corporate partners With a number of trustees due to Step down in 2021, the trustees have established a new appointments sub-committee, consisting of Board members, the Business Manager and Joint- CEO, to review board composition and ensure that the board are adequately equipped to deliver the strategic business plan. Page 7
IDPE REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 TRUSTEES REPORT Finallyi we will focus on supporting all schools as they face the financial impact of the pandemic, and will continue to champion the need for schools to 'Press play on development, moving forward through tailored professional development and support specifically for school leaders. The trustees consider this will safeguard member retention, encourage investment in professional development, and increase membership in the long-term. Financial Report The financial results for the year and financial position of the group are shown in the financial statements. Overall group income has exceeded group expenditure generating a surplus of £8,23412019: £15,365). Policies Reserves It is not the policy of IDPE to hold restricted reserves. All income is used for the operation of the charity. A Eeneral reserve is maintained to ensure that the functions of the charity are not hampered bv fluctuation5 in the level of membership or exceptional non-repetitive expenditure and to take advantage of unexpected opportunities that might benefit the membership in terms of additional services offered by the charity. The trustees reconsidered the prudent level at which general reserves should be held back in 2012 and decided on a lonEer-term target equal to 30Yo of typical expenditure over a year. At the end of 2020 reserves of the group were É181,171 Ireserves of the charity were £170,948). It 15 the intention of the trustees that these higher levels of reserves should remain the longer-term target, but carefully managed to provide future growth potential for IDPE. As the business Erows and adapts to meet the needs of its members, the trustees recognise that further investment in the infrastructure, goods and services provide by IDPE will be necessary. Grant Makin Poli The Trustees introduced grants in 2012 giving financial support to those who would benefit but who could not otherwise afford the full cost of the annual conference. These were funded through sponsorship Polic to Mana e Risk The Trustees undertook an annual review of the major risks to which the Charity is exposed. in particular those related to the operations and finances of the Charity, and have adopted the necessary policies to mitigate and monitor these risks. The policies are reviewed on an ongoing informal basis by the trustees and reviewed on a formal basis at the last Board meeting of each year when the Budget for the following year is agreed. Public Benefit The objects of IDPE are to provide training and to develop and promote best practice in the fields of development, fundraising, engagement, support and management relevant to the provision of education. The membership benefiting from the work of the IDPE is made up of development professionals and individuals such as heads, bursars and governors supportinE development, in schools (both independent and statel. Through access to this training and promotion of best practice, schools are able to develop better relationships with their supporters and beneficiaries, improving their accountability to them and raising funds efficiently in accordance with the standards laid down by the Fundraising Regulator lof which the IDPE is a member). IDPE supports schools to.. Page 8
IDPE REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 TRUSTEES REPORT improve learning environments and resources for pupils improve access to independent education for children from disadvantaEed backgrounds improve mentoring and careers support for young people improve partnerships between state and independent schools Membership fees are kept at a modest level so that every school who is eligible to join is able to do so and IDPE works on behalf of all schools to champion the importance of community engagement and philanthropic support so that schools can provide the best educational experience for children and young people. There are no geographical restrictions, and whilst members are predominantly based in the UK, we do have some international schools within the IDPE community. Trustees. responsibilities in relation to the accounts The Trustees are responsible for preparing the Annual Report and accounts in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. Company law requires trustees to prepare accounts that give a true and fair view of the state of the affairs of the charity at the end of the financial year and of its surplus or deficit for the financial year. In doing so the Trustees are required to: select suitable accounting policies and apply them consistently make judgements and estimates that are reasonable and prudent state whether applicable accounting Standards and statements of recommended practice have been followed subject to any departures disclosed and explained in the accounts; and prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in busifbess The Trustees are responsible for maintaining proper accounting records which disclose with reasonable accurary at any time the financial position of the charity and which enable them to ensure that the financial statements comply with section 386 of the Companies Act 2006. The Trustees are also responsible for taking steps for the prevention and detection of fraud and other irregularities. All staff remuneration is reviewed and agreed by the Trustees. When appointing new members of staff, salaries are benchmarked against similar positions across the charitable sector. As part of the staff appraisal process, roles and responsibilities are reviewed. If these are seen to have changed. then these are benchmarked against other similar roles across the charitable sector and any changes to remuneration taken to the Trustees for approval. So far as the Trustees are aware, there is no relevant audit information (information needed by the Charity's reporting accountant in connection with preparing his report) of which the Charity's reporting accountant is unaware. In addition, each Trustee has taken all the steps that he/she ought to have taken as a trustee in order to make him/her aware of any relevant information and to establish that the Charity's reporting accountant is aware of that information. This report, on pages I to 9, was approved by the Trustees and was signed on their behalf by: 20 May 2021 Karen Hartshorn Chairman On behalf of the Trustees Page g
IDPE REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Independent Auditor's Report to the Members and Trustees of IDPE Opinion We have audited the finanaal statements of IDPE (the 'parent charitable company'l and its subsidiaries Ithe'group'l for the year ended 31 December 2020 which comprise the consolidated statement of financial activities, the group and parent charitable company balan sheets, the group and parent charitable company cash flows and notes to the financial stalernents, 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 stale of the group's and parent charitable company's affairs as at 31 December 2020, and of the group's incoming reSoUrS and application of resourTrs, including its income and expenditure, for the year then ended., have been properfy prepared in accordance with Unrted Kingdom Generally Apted Accounting Practice,. and have been prepared in accordance with the requirements of the Companies Act 20[ and the Charities Act 2011. 8asi¥ for opinion We conducted our audit in 8ccordance with International Standards on Auditing IUIQ IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilitie5 for the audit of the financi81 statements $tion of our report. We are independent of the group and parent charitable company in 8ccord8nce with the ethical requirements that are relev8nt to our audit of the Iinanci815tatements in the UK. including the FRC'5 Ethical Standard, and we have fUilled our other ethical responsibilities in accoidance with these requirements. We believe th81 the audit evidence we have obtained is sufficient 8nd appropriate lo provide a basi5 foi our opinion. Con¢lu¥ion¥ relating to going ¢on¢ern In auditing the financial Statements, we have concluded th8tthe trustees, use of the going concern ba51s of accx)unting 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, Individual or collectively, rnay cast signrficant doubt on the group's or parent charitable company's ability to continue as a going concein ftsi a period of at least Iwelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going cOnM are described in the relevant sections of this report. Other Infomiatlon The trustees are responsible for the other information. The other inlomiation comprises the information induded in the trustees, annual report . other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form ol assurance condusion thereon. In connection with our audit of the financial statements. our responsibility is to read the other inlomalion and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knovledge obtained in the audit or olhewse appears to be materially rnisststed. If we identify such material inconsistencies or apparent material rnisstaternents. we are required to determine whether there is a material misstatement in the financial statements or a material misstaternenl of the other information. If, based on the work we have performed, we conclude that there is a material rnisslaterllent of this other information, we are reqUId to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undert8ken in the course of the audit.. the information given in the Iruslees, report linoorporaling the diieclors, ieportl for the financial yearforwhich the fin8ncial statements are prepared is consistent wrth the financial st8tements'. and the directors, report has been prepared in accordan with applicable legal requirements. Matter¥ on which we are required to report by exception Page 10
IDPE REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 In the light of our knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors, report. We have nothing to report in respect of the following matters in relats'on to which the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion.. adequate and sufficient accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us., or the parent charitable company's financial statements are not in agreement with the accounting records and returns., or certain disclosures of directors, remuneration specified by law are not made., or we have not received all the information and explanations we require lor our audit., or the trustees were not entitled to prepare the financial statements in accordance with the small companies, regirne and take advantage of the small companies, exemptions in preparing the directors, report and from the requirement to prepare a strategic report. Responsibilities of trustees As explained rnore fully in the trustees, responsibilities statement set out on page 9, the trustees Iwho are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give 8 true and fair view. and for such internal control as the Itustees detennine Is necessary to enable the pieparab.on of finan¢i81 stslemenls that are flee frorn materi81 misslalernent. whether due to fraud or error. In preparing the fin8ncial stslemenls, the trustees are responsible for assessing the group's and parent ¢h8ritable company'5 ability to continue a5 8 going concern, disclosing, a5 appl1rb1e, matter5 related to going concem and using the going concern basis of accounting unless the trustees either Intend to liquidate the group or the parent Charitab company or to C88Se OP8rations, 01 have no realistic alt8in8tN8 but to do so. Auditorfs responsibilitiès for th• audit of thè financial statements We have been appointed auditor under the Cotnpanies Act 2006 and section 151 of the Chaiities Act 20118nd report in accordance with those Acts. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misststement, whether due to fraud or erior, and to issue an auditor's report that Indudes our opinitsn. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI 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 Influen the economic decisions of users taken on the basis ol these financial statements. Based on our understanding of the charitable company and sector, we identified that the principal risks of non- compliance with laws and regulations related company and charity legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements of the charitable company. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Staternenl of Recommended Practice and the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial slalements (including the risk of override of conlrolsl. and determined th8t the principal risks were related lo potential 18ck of segregation of duties, bookkeeping errors and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the audit engagewent learn included.. Enquiry of management and those charged with governance about any known or suspected instances of non- oompliance with law5 and regulations and fiaud.. Reviewing rrinules of rlleelings of those charged with governance and any correspondence with The Charity Commission.. Reviewing fin8ncial statement dis¢10sures and testing lo supporting documentation to 85sess Th)mpliance with 8pplicable laws and regulations., Perfonning 8nalyli¢81 procedures lo identify any unusual or unexpeed relationship th81 might indicate a risk of tnaterial Tnisstatement due to fraud., Performing audit work over the iisk of tnanagement override of controls, Including testing of joumal entrie5 and other adjustments for appiopriateness, evaluating the business rationale of significant transactions outside the normal cours8 of bu51ness and 18vi8wing accounting 85timates for bias. There are inherent limitations in the audit procedures described atxjve and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become awaie of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not Page 11
IDPE REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. A further description of our responsibilities forthe audit olthe financial statements is located on the Financial Reporting Council's website at.. www.frc.org.uklauditorsresponsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part le of the Companies Act 2006 and to the charitable company's trustees, as a body, in accordan with IPart 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 members and its trustees those matters we are required to state to them in an auditorfs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body and the charitable company's trustees as 8 body, for our audit work. for this report, or for the opinions we have formed. James Gare (Senior Statutory Audilorl For and on behalf of MHA Monahans Slalulory Auditor Ch8rteied Accountan15 Fortescue House Court street Trowbridg8 Vlfilt5hire BA14 8FA 27 May 2021 Page 12
IDPE REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME & EXPENDITURE ACCOUNT) Notes 2020 2019 Income and Endowments from: Other trading activities Investments 31,112 61 74,832 218 Donations and legacies Charitable activities 26,135 329,395 472,432 Total Income 386,703 547,482 Expenditure Raising Funds Charitable Activities 21,037 357,432 28,485 503,632 Total Expenditure 378,469 532,117 Net Movement in Funds 8,234 15,365 Reconciliation of funds.. Total fvnds brought forward Total fvnds carried fo8rd 172,937 181,171 157,572 172,937 The statement of financial activities includes all gains and losses for the period. All incoming resources and resources expended derive from continuing activities. The notes are sel out on pages 17 10 23. Page 13
IDPE REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 BALANCE SHEET- GROUP 2019 restated Notes 2020 Fixed Assets 9,475 6,367 Current assets Debtors 100,916 315,634 200,858 263,641 Cash at bank.. Total Current Assets 416,550 464,499 Liabilities Creditors.. Amounts falling due within 1 year 10 244,854 297,929 Net Current Assots 171,696 166,570 Total Net Assets 181,171 172,937 Funds ofthe charty: Unreslricled Fund 181,171 181 171 172,937 172,937 Total Funds There are no restricted funds. The notes are set out on pages 17 to 23 The directors acknowledge their responsibilities for complying with the requirements of the Companies Act with respect to accounting records and the preparation of accounts. These accounts have been prepared in accordance with the provisions applicable to small companies subject lo the small companies regime and in accordance with FRS102 SORP. The accounts were approved and aulhorised for issue by the Trustees and signed on their behalf by.. 20 May 2021 Chairman Karen Hartshorn Chairman of Finance and General Purposes Committee Justin Hodges Page 14
IDPE REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 BALANCE SHEET- CHARITY 2019 restated Notes 2020 Fixed Assets Investments 9,475 6,367 Current Assets Debtors 101,450 303,868 182,989 247,5go Cash in hand Total Current Assets 405,318 430,579 Liabilities Creditors.. Amounts falling due within 1 year 10 243,846 335,709 Net Current Assets 161,472 94,870 Total Net Assets 170,948 101,238 Funds ofthe charty: Unreslricled Fund 170948 101,238 101,238 Total Funds 170,948 The directors acknowledge their responsibilities for complying with the requirements of the Companies Act with respect to accounting records and the preparation of accounts. These accounts have been prepared in accordance with the provisions applicable to small companies subject to the small companies regime and in accordance with FRS102 SORP. The accounts were approved and aulhorised for issue by the Trustees and signed on their behalf by." 20 May 2021 Chairman Karen Hartshorn 21 May2021 Chairman of Finance and General Purposes Committee Justin Hodges Page 15
IDPE REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 STATEMENT OF CASH FLOWS AND CONSOLIDATED STATEMENT OF CASH FLOWS Group 2020 Charity 2020 Group 2019 Charity 2019 Cash flow from operating activitios Interest paid 57,541 61,826 113,3161 129,3671 Net Cash flow from operating activities 57,541 61,826 113,3161 129,3671 Cash flow from Investlng actlvltles Proceeds from sale tangible fixed assets Payments to acquire investments Interest received 21 21 15,6091 61 15,6091 61 218 218 Net cash flow from invosting activities 15,5481 15,5481 239 239 Net decrease in cash and cash equivalents 51,993 56,278 113,0771 129, 1281 Cash and cash equivalents at 1st January 2020 263,641 247,590 276,718 276,718 Cash and cash equlvalents at 31st December 2020 315,634 303,868 263,641 247,590 Cash and cash equivalents consists of: Cash at bank and in hand 315,634 303,868 263,641 247,590 Cash and cash gquivalonts at 31° December 2020 315,634 303,868 263,641 247,590 Reconclllatlon of net Income to net cash flow from operatlng actlvltles 2020 Group 2020 Charity 2019 Group 2019 Charity Nel income for year Depreciation of tangible fixed assets Interest receivable Ilncreasel I decrease in debtors Increase I Idecreasel in creditors 8,234 69,710 15,365 20,085 2,501 2,501 761 761 1611 1611 12181 12181 99,942 81,539 1164,7381 {161,5691 153,0751 191,8631 135,514 111,574 Nel cash flow from operating activities 57,541 61,826 13,316 29.367 Page 16
IDPE REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED... 1. ACCOUNTING POLICIES General Basis of Accounting The charity constitutes a public benefit entity as defined by FRS102. These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notelsl lo these accounts and in accordance with the 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 issued in October 2019, the Financial Reporting Stsndard applicable in the United Kingdom and Republic of Ireland IFRS 1021 the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practi. Legal Status of the Charity IDPE is a private limited company, limited by guarantee, registered in England and Wales. The company's registered number and registered office address can be found on the company information page. The presentational currency of the accounts is pound sterling. Incoming Resources Subscriptions, charges and interest income are accounted for on a re1vable basis. Monies received in advan are accounted for in the appropriate accounting period. Resources Expended All expenditure and liabilities incurred in the financial year are accounted for in that year. Support costs comprise those costs incurred by the Main Office in Bath including Trustees expenses. Support costs are apportioned 50/0 to the cost of generating funds, and 95,/0 to charitable activities. This is based on an estimated allocation of lime. Trustees are responsible for approving any salary rises and the CEOS are responsible in consultation with members of the Senior Management Team for approving salaries for new starters. Periodically an external review of staff and their hours and salaries is carried out with approval by the Trustees. Fixed assets Tangible and Intsngible fixed assets are ststed at cost less depreciation and amortisalion. Capital expenditure is deemed to be items purchased al £500 or over, that have a useful life of more than one year. Depreciation and Amortisalion are provided at otes calculated to write off the cost of the assets, less their estimated residual value, over their expected useful lives on the following bases.. Fixtures, fittings and equipment- 5 years slraighl line basis Website Development- 5 years straight line basis Investments The investment represents shares held in IDPE (Trading) Limited (company number 11073956} which is a wholly owned subsidiary. The company was incorporated on 21 November 2017 and started trading on 1 January 2018. Debtors Trade and other debtors are recognised al the settlement amount. Prepayments are valued at the amount prepaid. Cash Cash at bank includes short term highly liquid investments with a short maturity of three months or less. Page 17
IDPE REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED... Creditors Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probabty result in the transfer of funds to a third paty and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally reeognised at their settlement amount. Flnanclal Instruments The charity only has financial assets and financial liabilities of a kind that qualify as basic financial inslrumenls. Basic financial instruments are initially recognised at transaction value and subsequently measured at their selllemenl value. Charltable actlvltles IDPE arranges collaborative events, such as a Schools Bursaries Conference every other year, with other organisations. In some instances IDPE takes overall responsibility for all income and expenditure for such an event, and the profit is shared beeen the collaborating organisations. As financial responsibility changes from year to year beeen organisalions, these accounts and comparative figures have been compiled showing the overall profit figure earned by IDPE al such events lo ensure year on year comparatives are meaningful, regardless of which organisalion manages the Income and expenditure accounting. Group finaneial statements These group financial ststemenls consolidate the results of the charity and its wholly-owned subsidiary IDPE (Trading) Limited, both of which make up their financial statements lo 31 December. A separate slalement of financial activities, or income and expenditure account, for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by Section 408 of the Companies Act 2006. Funds Unrestricted funds can be used in accordance with the charitable objectives al the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Golng Concem The financial slalements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The Iruslees have considered the level of funds held and the expected level of income and expenditure for 12 months from aulhorising these financial stalemenls. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern. Page 18
IDPE REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED... 2. Income from Trading subsidiary The wholly-owned trading subsidiary, IDPE Ilradingl limited, company number 11073956, which is incorporated in the United Kingdom, pays all ils taxable profits lo the charity by Gift Aid. IDPE Itradingl Limited provides job advertising. The charity owns the entire Issued share capital of 1 ordinary share of £1. A summary of the trading results as recorded in that company's statutory accounts Ilherefore, gross of all inlra-group transactions) is shown below'.- 2020 2019 Turnover and interest receivable Job Advertising 31,112 74,832 Cost of sales and administrative expenses 15,8891 13,1331 Profil for the period 25,223 71,699 3. Income from charitable activities is broken down as follows: 2020 2019 Conferences and seminars Membership subscriptions Book sales 134,176 194,385 834 329,395 277,384 192,999 2,050 472,432 4. Costs of generating funds is 5010 of the total direct and support costs borne by the main account together with trading subsidiary operations. 5. Costs of Charitable Activities - Group Diract costs Support Costs Total 2020 Total 2019 Conferences and seminars Support lo members 62,723 62,723 294,709 357,432 158,493 345,139 503,632 294,709 294,709 62,723 Direct Costs Support Costs Total 2019 Conferences and seminars Support lo members 158,493 1 $8,493 345,139 503,632 345,139 158,493 345, 139 Page 19
IDPE REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED... Support costs allocated lo charitable activities 2020 2019 Staff costs Office costs Premises costs Admin expenses Marketing and PR Unclaimable VAT Legal & professional costs Sundry charitable expenditure 230,003 15,573 15,327 9,726 2,563 8,270 11,978 1,269 234,783 18.552 16,408 18,570 8,891 23,864 21,356 2,716 294,709 345. 139 6. Staff costs 2020 2019 Salaries and wages Social security costs Pension costs Total 219,894 13,534 8,680 242,109 228,121 10,229 8,790 247,140 No employee earned more than £60,000. Average number of full time equivalent employees employed during the year was 7 12 full time employees and g part-timel 12019." 7 full time equivalenlsl. Of these two were employed on fundraising, two on governance and finance and the others on charitable activities. Key management personnel comprised the CEOS, the Finance Manager and the Business Manager- all of whom are part-time. Their total combined salaries were £115,53412019. £120,560). 7. Group- Net movement in funds is after charging: 2020 2019 Audit fees Lease Costs Depreciation 5,808 17,893 2,501 26,202 5,808 14,883 761 21,452 Page 20
IDPE REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED... 8. Fixed Assets- Charity Fixtures, fittings Website and equipment Development Investments Totsl At1.1.20 12,048 12,049 Additions 609 5,000 5,609 At31.12.20 12,657 5,000 17,658 At1.1.20 5,681 5,681 Depreciation 2,501 2,501 At31.12.20 8,182 8,182 Net book value at 1.1.20 6,367 6,368 Net book value at 31.12.20 4,475 5,000 9,476 9. Debtors: 2020 Group 2020 Charity 2019 Group 2019 Charity Trade Debtors Inlercompany IDPE Trading Ltd Prepayments and accrued income other debtors 96,093 90,773 5,854 4,823 168,053 150,184 4,823 28,377 4,428 200,858 28,377 4,428 182,989 100,916 101,450 The 2019 trade debtors have been reststed to include sales invoices raised before the year end where the income has been deferred. 10. Creditors: 2020 Group 2020 Charity 2019 Group 2019 Charity Trade Creditors Inlercompany IDPE Trading Ltd Deferred Income Accruals Tax & Security Costs Other creditors 1,951 1,951 1,842 1,842 38,788 249,520 4,800 27,711 13,048 335,709 220,010 5,808 5,731 11,354 244,854 220,010 4,800 5,731 11,354 243,846 249,520 5,808 27,711 13,048 297,929 Deferred income comprises of advance receipts for 2021 membership subscriptions, 2021 seminar places and 2021 IDPE annual conference places. The 2019 deferred income has been reslaled to include sales involS raised at the year end that are deferred to the following year. Page 21
IDPE REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED... 11. Financial instruments The carrying amount of the financial instruments are as follows.. Group 2020 2019 Financial assets Debt instruments measured at amortised cost.. Trade debtors Inote 91 96,093 168,053 Financial liabilities Measured al amortised cost.. Trade creditors Inole 101 1,951 1,842 Charity 2020 2019 FITnan¢io1 assets Debt Instruments measured at amortised cost.. Trade debtors Inote 91 - Amounts owed from group undertakings Inole 91 90,773 5,854 96,627 150,184 150,184 Equity instruments measured al amortised cost less impairmenl.. Fixed asset unlisted investments Inole 81 Financial liabilities Measured al amortised cost.. Trade creditors Inole 101 Amounts owed lo group undertakings Inole 101 1,951 1,842 38,788 40,630 1,951 12. Related party transactlons The charity has taken advantage of the exemption, under the terms of Financial Reporting Stsndard 102 'The Finance Reporting Standard applicable in the UK and Republic of Ireland,, not lo disclose related paty transactions with wholly owned subsidiaries within the group. Trustees only received payment of expenses for actual expenditure nesSarilY incurred whilst they were carrying out their function as Iruslees of the charity. No Iruslee received remuneration or other benefit from their work with the charity. In 2020 no related party transactions were reported. Travel and subsistence costs of £nil12019.' £1,2191 were reimbursed to trustees or paid directly lo third parties on their behalf. Page 22
IDPE REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED... 13. Operating Lease Commitmgnts The following operating lease commitments reported as al 31 December 2020 were as follows.. 2020 2019 Within the year Between 2 and 5 years More than five years 10,706 10,693 24,821 53,107 21,399 77,928 14. Ultlmate Controlllng Party The Trustees consider that the charity is joinuy controlled by the trustees and that there is no ultimate controlling paty. Page 23