Company registration number.. 05284271 Charity registration number.. 1106768 The Barristers, Benevolent Association (A company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 December 2024 ocm acmole
The Barristers, Benevolent Association Contents Reference and Administrative Details 1to2 Chaimian's Statement Committee Members, Report 4t08 statement of CDmmiltee Members, Responsibilities Independent Auditors, Report 10t013 Slatemenl of Financial Activities 14to15 Balance Sheet 18 Statement of Cash Flows 17 Notes to the Financial Statements 18to33
The Barrlsters, Benevolent Associatlon Reference and Admlnlstrative Details Commlttee Members Teren Mowschenson KC, Chairman David Phillips KC, Honorary Treasurer Raymond Cox KC, Treasurer Sara Hargreaves, Honorary Secretary The Rt. Hon. The Lord Saville of Newdigale, Member Hélen Valley, Member Jeffrey18rael, Member Alexander Leamionth KC, Member {r8signed 11 D8cember 2024) Graeme Halkerston, Member Angus Mccullough KC, Member Jonathan Tod, Member (resigned 2 January 2024) Master Roger Eastman, Member Daniel Toledano KC, Member Christopher Stephenson, Member (resigned 11 December 2024) Shabeena Azhar-mole, Member Teertha Gupta KC, Member MarGus Croskell (appointed 16 April 2025) Company Registratlon Number 05284271 Charlty Registratlon Number 1106768 Reg18tered Offlce 14 Grals Inn Square London WC1R 5JP Chief Executive Officer Nicky Young Deputy Chief Execullve Offlcer Annette Bennett Page 1
The Barristers. Benevolent Assoclation Reference and Administrative Details (continued) Independent audltors A C Mole LLP Chartered Accountants and Statutory Auditor stafford House Blackbrook Park Avenue Taunton Somerset TA1 2PX Bankers National Westminster Bank PLC PO Box 712 94 Moorgate London EC2M 6UR Solicitors: Withers LLP 20 Old Bailey London EC4M 7AN Investment Managers Rathbones incorporating Investec Wealth & Investmenl (UK) 30 Gresham Street London EC2V 7QN Insolvency Practltloners Griffins LLP Tavislock House Soulh Tavislock Square London WC1H 9LG Page 2
The Barrlsters. Benevolent Assoclatlon Chairman's Statement for the Year Ended 31 December 2024 During th8 past year we received an increase in applications. The numbers of applications were not substanlially out of line wilh the numbers received in previous years. There does not appear to be any significant underlying trend. In 2024 th8re were 21 new applications. This is an increase on last year when there w8re 14 new applications. Of the new applications we were able to help 19 beneficiaries financially and enabled them to S88k financial advice. Two additional sub-committee meetings wer8 held in 2024. New application refusals are based on applications which fall outside the immediate BBA remit. If we decline support because we consider the application was made too soon, we encourage the applicant to re-apply should the applicant's circumstances suffer an adverse change. In addition to the new cases, there were also 15 renewals, 1 more than in 2023 and 17 reports, 3 less than in 2023. In 2024 w8 continued to offer grants to beneficiaries who meel the criteri8 of Gainsford trust reslricled fund. The total support durSng 2024 from the rèstricted fund was £3,891 which was paid to needy and deserving applicants. Our income from donalions is g8nerally in a modest decline and we are trying lo address this issue. Adminislralive expenditure is well controlled but continued fluctuations in the investment market continue to affect the value of our reserves and nel income. We maintain our strict policy of securing all loans wherever posslbl8 and review these annually in case a beneficiary's circumstances have changed. We are anxious to help as many ben8ficiaries as possible, bul our resources are limited and where equity exists, we believe securing our loans is in our beneficiaries, best interests, as the policy assists in ensuring that we hav8 funds for b8neficiaries in the fulure, I n 2024 we received legacies totalling £61,166. 1 would like to thank the families of th8 Late Anthony Richard Boswood, Richard Hartley, Rita Ruben and John Deby for their generous legacy contribulions to the BBA general fund. None of this could be achleved without the continued loyal and indispensable support of many volunteers,. in particular those who seNe on our Board and the Circuit Representatives who visit applicants and beneficiaries who are unable to travel to London. Also invaluable are the supporters who make regular donations or who undertake various fundraising activities for us running maralhons, playing golf and the like - to whom we are equally graleful, We have a very small team of Paid slaff whose friendly and helpful contact on the phone or through e-mail is much appreciated by thos8 who are touch with us and I would like to express lh8 thanks of the Committee to the BBA'S Chief Executive Nicky Young, and our deputy Chief Executive Annette Bennett, I would also add my own thanks to those on the Committee who attend our monthly meetings to deal with applications which we dealt with from our general funds. The need to maintain our donated income 15 important and one way 18 to encourage everyone to include us in their Will once family needs hav8 been secured. Your gift will mean someone less fortunate than you can be assisted at a time of need. Terence Mowschenson KC, Chairman Trustee Page 3
The Barristers. Benevolent Association Committee Members. Report The Committee has pleasure in presenting its report and accounts for the year ended 31 December 2024. The financial statements have been prepared in accordance with th6 accounting policies set out therein and comply with current stalulory requirements. the Memorandum and Articles of Association, and the Statement of Recommended Practice Accounting and Reporting by Charilies (October 2019)- Constitution The Barristers, Benevolent Association was founded Dn 10 January 1873. It is a charilable company limited by guarante8 incorporated in England and Wales on 11th November 2004, number 05284271. The company gained charitable status on 15 November 2004, registration number 1106768. The company was established under a Memorandum of Association which established the objects and POW8rs of the charitable company and is governed under its Articles of Association. In the event of the company being wound up, Members are required to contribute an amounl nol exceeding £1. Objects The objects of the Association are to provide financial and other assistance and support to needy and deserving members of the Bai who are or have been in practice in England and Wales and also Iheir spouses and dependanls. AsSlStan¢e is given without geographical restriction or any need to pay fees. Policy To achieve these objectives, the Committee has followed the following policie5.' a} To encourage members of the Bar and the judiciary to contribute by way of donations, gift aid., and b) To create and maintain an adequale capital base generating investment income to augment the gitted income of the Association. Management The Charity is governed by a Committee whose Members are the Trustees for the purposes of Charity law and the Directors for the purpose of company law. Those who served during the year and up to the dale of this report are set out on page 1. The Committe8 meets monthly, reviews applications for assistance and decides what assistance Sf any should be offered. Urgent applications are considered by individual trustees and so far as necessary considered for ratification by the committee. The BBA staff administer applications and the provision of assistance decided by the Commiltee or trustees and may decide how lo provide assistance within the parameters sets by the Committee or trustees. Insurance against third party liability is provided for directors of the BBA up lo £1 m. Recrultment and Appointment of Management Committee All Members of the Management Commitlee give their time volunlarily and receive no benefits from the Charity. Traditional business and skills are well represented on the Management Committee. In an effort to maintain a broad mix of ski1Ss, new Committee Members are recruited after informal discussions with the Chairman andlor other officers and they are invited to visit the offices where they are briefed by the staff on their work and systems. They are provided with a copy of Ihe Memorandum and Articles of Association, the rules and current back issues of Ihe Annual Review as well as the Charily Commission leaflet on Charity responsibilities. During the year they receive full background papers for all potential and actual beneficiaries, the monthly accounts and the annual summaries of loans. The Chief Executive reports personally to the Members on matters concerning individuals allocated lo them as case manager and in any other case where they have asked to be kept in louch. Page 4
The Barristers, Benevolent Associatlon Committee Members. Report (continued) Trustee Inductlon and Tralnlng Most Trustees ar8 already familiar with the practical work of the Charity, being M8mbers of the Bar. Prospective trustees are invited and encouraged to attend a series of Board meetings as part of their training to familiarise themselves with the Charity and the context within which il operates. These are jointly led by the Chair of the Committee, Company Secretary, Chief and Deputy Chief Executive of the Charity and covers- The obligations of Management Commillee Members. The main documents which sel out the op8rational framework for the Charity including the Memorandum and Articles. Resourcing and the current financial position as set out in the latest published accounts. Any Future plans and objectives. Links to the Charity Commission's website with publications to the Trustees role and responsibilities. How our actlvltles deliver publlc benefit The Charity seeks to reach every pra¢ti8ing Barrister every year to ensure they are aware of the potential assistance available and to seek their financial support. This Is primarily achieved through emailing a copy of the Annual Revlew to the Bar Council for distribution via email to all Members of the Bar and Judiciary. We also attend relevant conferences and seek publicity in professional magazines. Our websit8 includes information for both donors and potential beneficiaries and has a downloadable application form. We also have a small team of volunteer Circuil Representatives who are able to make visits if needed. Help is tailored to each individual case. Wherever possible we seek to enable the beneficiary to solve thelr problem and continue in or return to a position where he or sh6 can earn a living bul where this is impossible, or not to be recommended, we can offer secured or unsecured loans or make grants. Sometimes help is needed urgently lo tide people through an emergency, other limes the need is longer-temi. Assistance is given without geographical restriction or any need lo pay fees and with due regard to public benefit 9uidance published by the Charity Commission, Achievements and performance Our work The BBA general fund costs of £867,200 includes grant giving activities of £308.229 and support costs lotalling £317,079. Regular beneficiaries including dependanls were awarded monthly and quarterly grants to meet short falls in living, medical and food costs. In 2024 there were 21 new applications. This is an increase from 14 on the previous year. Of the new applications we were able to help 19 beneficiaries financially and provide advice. Two additional subcommittee meetings was held in 2024. New application refusals are based on applications which fall outside the immediate BBA remit. If we decline support because we consider the application was made too soon, we encourage the applicanl to reapply should their situation worsen. In addilion to the new cases, there were also 15 renewals, 1 more than 2023 and 17 reports, 3 less than in 2023. The most common reason for declining financial help at any time {811hough leaving the door open for subsequent applications) is possession of adequate personal resources which we consider should be used first since one of our crileria for granting assistance is that the applicant should be 'needl'. In very rare cases someone may be considered needy but not 'deseNing'. Page 5
The Barr5sters' Benevolent Association Committee Members. Report (continued) Initial enquiries - by phone, email, letter or personally - are handled immediately and th8 aim is to have our application fomi completed and processed in time for the next available Committee meeting, allhough this does not rule out more immediate help if this is urgently required. Every case is reviewed annua15y on the anniversary of its initial presentation to the Committee and renewals of support have to be accompanied by another completed application form. Outstanding loans are reviewed annually at the beginning of the year. Plans for the future The Association will continue to seek out opportunities to publicise the work of the Charily and to seek financial support from those in a position to help. The Trustees will continue to monitor response times for receiving and processing application5, the prompt and accurate payment of all benefits, and the proper acknowledgement of contributions. Financlal review The Association made a deficit for the year of £(78,7461 (2023 surplus of £267,647) before nel revaluation of the investments of £502,805 (2023 £498,645). Total incoming resources decreased from £828,097 in 2023 to £593,803 in 2024. Total resources expended increased from £560,450 in 2023 to £672,549 in 2024. As at the year ended 31 December 2024, the Association had unrestricled reseNes of £13,236,813 (2023 - £12,833,684) and restricted reserves of £325,045 {2023 - £304,115}. Investment Powers, Policy and Performance The Members of the Committee have, as Trustees, the statutory general power of investment conferred by the Trustee Act 2000, which permits them to make any kind of investment which they could make if they were absolutely enlilled to the Association's assels. In exercise of their powers under the Act, the Members of the Committee have delegated their asset management funGlicns lo the Association's investment managers Ralhbones incorporating Investec Wealth & Investment (UK) based on an agreement for discretionary portfolio management. The instruclion to the investment mana9ers is that they seek a balanced return from income and from capital growth of the portfolio, with no more than a modeiate level of risk. The investment strategy is reviewed during the year with the investment managers. The value of the investments as of 31st December 2024 was £9,538,980 12023 £9,112.4481, resulting in a Capital gain of £426,532. In addilion, dividends tolalling £231,923 were paid away to the charitls bank account. The overall return achieved by the portfolio was 47.70/0, net of fees, and this compares with th& CPI +39/0 objective return of +5.5% and the ARC Charities Steady Growth index return of +8.2010, Page 6
The Barristers. Benevolent Association Commlttee Members. Report (contlnued) The portfolio gains were made against th8 backdrop of another extraordinary year for markets, which continue(J to b8 dominated by a small cohort of enomious US technology companies, dubbed 'The Magnificent 7. by market observers, which not only collectively generated the majority of the return of the US equity market (itself th8 dominant world markell, bul ended the year as the seven largest companies. All are seeking to monetise the growlh of Artificial Intelligence and ar6 invesling heavily. The BBA portfolio continues to benefit from this growth by owning several of the Magnificent 7, 88 wall as other expected beneficiary companies. However, mindful of the increasing concentration risk that these companies exhibit within Ihe market, a smaller weighting overall than the headline index is held. for risk diversification reasons. Els8where, interest rates look set to com6 down, but only modestly as inflation remains higher than central banks would like, particularly in Ihe services s8Ctor. Looking forward, it is Rathbones, expectation that the profile of returns will broaden out beyond the Magnificent 7. A portfolio comprising of high-quality global companies with long-term competitive advantages should help th8 Portfolio to grow to enable th& BBA to continue to support its current and future generations of baneficiaries. Rathbones believe that economic growth will conlinue to be modest in calendar 2025, and so an important driver of returns will Continue to be companies with strong franchises that are still able to sustainably generat8 attractlV8 levels of profit growth despite this environment. This plays well to the investment philosophy adopted. The BBA portfolio continues to be managed to a medium risk strategy and the strategic asset allocalion is 650/¢ equities, 18 /ts bonds, 5C/lo propety, 1 OQ/o allern8tive assets, 20/0 cash. Fundralslng The Association solicit donations from members of the profession or the public through our w8bsite or as advertised in our annual report. The Association does not employ third party fundraisers or employ the kinds of fundraising tactics that have given rise to public concern. The Association is not registered with a fundraising regulator and no fundraising compl8ints were received in the 2024 year. Grant Maklng Policy The Association invites applications for assistance from needy and deseNing Members of the Bar who are or have been in practice in England or Wales, their husbands or wives, widows or widowers, children, and dependants. Assistance may be provided to beneficiaries by way of gr8nt or loan, or a combination of the 0. Before any grant or loan is considered by the Committee, applicants are required to complete a detailed form setting out their individual circumstances. Where possible, the Association will always seek lo facililate the return to work of the practitioners who have been in substantial full-time practice prior to Ihe events occasioning their application. Restrlcted Fund In 2022. after consultation with the B8A committee and Withers solicitors, it was agreed that The Inns of Court Gainsford Trust, a charitable Trust previously administered by Gray's Inn, would transfer their funds of £314,858 to the BBA. Following the transfer Legal fees were mel by the BBA from this amount. The fund is to be used to help members of the Bar of England and Wales and their dependants who either live in Greater London or who have lived in Greater London. Gainsford Trust will have no further input into the scheme leaving the responsibility lo the BBA. During 2024, £3,891 was paid to needy and d8seNing applicants from the fund. Resorves Pollcy The assets of the Association are applicable for ils purposes at the discretion of the Committee without any distinction between capital and income. The Association has total funds of £13.561,858 (2023 - £13,137.799) ofwhich.- Page 7
The Barristers. Benevolent Association Committee Members, Report Icontinued) £3.697,140 (2023 - £3,529,728) is comprised in designated funds £193,910 (2023 £200,915) is held in tangible fixed assets, and £9,213,935 (2023 £8,808,333) of unrestricted and £325,045 of restricted funds {2023 £304,115) are held in investments to continue lo generate income for the Association. This leaves £131.828 {2023 £294,708) of general free resetves. Whilst under Charity Commission guidance the Charity's investments represent free reseNes, the Committee considers that these are held to generate funds lo support its beneficiaries in the future. Consistent with its policy to creat6 and maintain an adequate capital base, the Commiltee intends to maintain Ihe current level of total reserves limit at £7,500,OQO although currently al the year*nd there are reserves of £9,345,763 10 allow for the current uncertainties within the market that could be impacted by an increase in demand from beneficiaries. Risk Management The Members of the Committee are satisfied Ihat the major and operational risks which the BBA faces have been identified and confirm thal systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen th8 risks. The BBA considers that the major risks are loss of or unauthorised access lo dala. and bad publicity leading to damage to the reputation of the BBA. The trustees have considered the following major risk that could impact the smooth running of the business.. Destructlon or damage to premises. As to this, regular backups are made of the compulei system in the cloud and physical backups taken out of office. Staff have the ability to work from home. Loss of staff due to retlremenUr88lgnationllllness. As lo this, slaff are kept under review, jobs reviewed on the m8t1(et, detailed job descriplions and finance manual are available, and temporary staff may be employed if necessary. Computer malfunctionlng and breakdown. As to this, regular backups tak8 place, and the majority of software is cloud based for 8ccess remotely anywhere. Inveslment losses through market changes. As to this, regular reviews are undertaken with the investment managers. Disclosure of Informatlon to audllor Each Committee Member has taken steps that they ought to have taken as a Committee Member in order to make themselves aware of any relevant audit information and lo establish that the Charity's auditor is awar8 of that information. The Committee Membeis confirm that there is no relevant information that they know of and of which they know the auditor is unaware. This report has been prepared in accordance wilh the small companies regime under the Companies Act 2006. Approved by order of the Members of the Board of Committee Members on 7 Au9USt 2025 and signed on ils behalf by.. Terence Mowschenson KC. Chairman Trustee Page 8
The Barristers. Benevolent Association Statement of Committee Members. Responsibilities The Committee Members (who are also the directors of Th8 Barristers. B8n8volent Association for the purposes of company law) are responsible for preparing Ihe Committee Memb8rs' Report and the trustees. report and the financial stat&m8nts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland" Company law requires the Committ88 Members to prepare financial slatemants for each financial year which give a true and fair view of the stale of affairs of the charitable company and of the incoming resources and application of reSoUrs, including ils income and expenditure, of the charitable company for that period. In preparing these financial statements. the Committee Members are required to.. selecl suitable accounting policies and apply them consistently. obseNe th8 methods and principles in the Charities SORP., make judgements and accounting estimates that are reasonable and prudent., state whether applicable accounting standards, comprising FRS 102 hav8 been followed, subject to any material departures disclosed and explained in the financial statements., and prepare the financial statements on the going eoncern basis unless it is inappropriate to presume that the charitable company will continue in business. Th6 Committee Members are responsible for keeping proper accounting records that can 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 Acl 2006. They are also responsible for safeguarding the asset5 of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. So far as the trustees are aware: there is no relevant audit information ol which the Gharilable companys audllors are unaware., and the trustees have taken all 8leps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that infomiation. This conf irmation is given and should be interpreted in accordance Wlth the provisions of S418 of the Companies Act 2006. The trustees are responsible for th8 maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions, Approved by order of the Members of the Committee Board on 7 August 2025 and signed on its behalf by.. Terence Mowschenson KC, Chairman Page 9
The Barristers. Benevolent Association Independent Audltor's Report to the Members of The Barristers, Benevolent Association Opinlon We have audited the financial Statemenls of The Barristers, Benevolent Association (the 'charily') for the y8ar ended 31 December 2024, which comprise the Statement of Financial Activities, Balance Sheet, statement of Cash Flows, and Notes to Ihe Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation 15 United Kingdom Accounting Standards, comprising Charities SQRP FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and applicabl8 law {United Kingdom Generally Accepted Accounting Practice}. In our opinion the financial statements: give a true and fair view of the state of the charity's affairs as at 31 December 2024 and of its incoming resources and application of resources, including ils income and expenditure, for Ihe year then 8nded'. have been properly prepared in accordance with United Kingdom Generally Accepled Accounting Practice., and have been prepared in accordance with the requirements of the Companie5 Act 2006. 8asls for opinion We conducted our audit in accordance with International Standards on Auditing {UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial stalements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relating lo golng concern In 8uditing the financial slalements, we hav8 concluded that the trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriale. Based on the work w8 have performed, we have not identified any material uncert8inlies relating lo events or conditions that, individually or collectively, may cast significant doubt on the charity's ability lo conlinue as a going concern for a period of at least Iwelve months from when the original financial slatemenls were authorised for Issue. Our responsibilities 8nd the responsibilities of Ihe Iruslees with respect to going concern are described In the relevant seclions of this report. Other Information The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly staled in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility 15 to read the olheT information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or othewis6 appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether Ihere is a material misstatement in the financial slatem8nls or a malerial misslatemenl of the other information. If, based on the work we have performed, we conclude Ihat there is a material misstatement of this other information, we are required to report that fact. We hav8 nothing to report in this regard. Page10
The Barristers. Benevolent Assoclation Independent Auditor's Report to the Members of The Barristers. Benevolent Assoclalion (continued) Oplnion on other malter prescrlbed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in th8 Chaimian's Statement and Committee Members. Report for the financial year for which the financial statéments are prepared is consistent with the financial statements,, and the Chairman's Statement and Committee Members. Report have been prepared in accordance with applicable legal requirements. Matters on whlch we are requlred lo report by exceptlon In the light of our knowledge and understanding of the charity and its environment obtained in the course of Ihe audil, we have not identified malerial misstatements in the Chairman's Statement and the Committee Members, Report, We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report lo you if, in our opinion.. adequate accounting records have not be&n kept, or returns adequate for our audit have not been received from branches nol visited by us., or th8 financial statements are not in agreement with the aceounling records 8nd returns- or certain disclosures of trustees remuneration specified by law are not made., or we have nol received all the information and explanations we require for our audit. Responsibllltles of trustees As explained more fully in the Stalemenl of Committee Members, Responsibilities, the trustees are responsible for the preparation of the financlal stalemenls and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstalement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assesslng the charity's abilty to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidat8 the charity or to cease operations, or have no realistic altemalive but to do so. Auditor responsibilltles for the audit of Ihe financlal statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatemenl, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in accordance with ISAS (UK) will always delect 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 lo influence Ihe economic decisions of users taken on the basis of Ihes8 financial statements. Irregularities, inoluding fraud, are instan5 of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect, material misstatements in respect of irregularilies, including fraud. The extent lo which our procedures are capable of detecting irregularities, including fraud is detailed below= Page11
The Barristers. Benevolent Assoclation Independent Auditors Report to the Members of The Barristers. Benevolent Association {contlnued) Identlfylng and assessing polentlal rfsks of materlal mlsstatement due to Irregularities We considered th8 following when identifying and assessing risks of material misstatement due to irregularities, including fraud and non-compliance with laws and regulations. the legal and regulatory framework in which the charity operates the nature of Ihe sector in which the charity operates the control environment and controls established lo mitigale such risks the results of our enquiries of management about their identification and assessment of risks of irrégularities discussions with the audit engagement team about where fraud might occur the incentives for fraud. Laws and regulation5 which are considered lo be significant to the charity include those relating to the requirements of financial reporting framework FRS102 and Charilies Sla18ment of Recommended Praclice, the Charities Act 2011, tax legislation, employment legislation and health and safety. In addition, we consider other laws and regulation which may not directly impact the financial slalements but may impact on the operation of Ihe charity. As a result of these procedures we concluded, in accordance with International Auditing Standards, thal a risk in relation lo the potential for management override of controls existed. Audlt responses to risks identified We undertook audit procedures to respond to the risks identified, and designed our audit testing to respond to these risks. The additional procedures we undertook included the following.. gaining an understanding of the charity's procedures for ensuring compliance wilh laws and regulations testing the appropriateness of journal entries and other adjustments considering whether accounting estimates were indicative of potential bias considering whether any transactions arose oulside the normal course of business making enquiries of management corroborating our enquiries through review of Board Minutes and correspondence. We also communicated relevant laws and regulations and potential fraud risks to all engagement team members and remained alert to any indicators of fraud or non-compliance with laws and regulalions Ihroughoul th8 audit. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's webslte at: w.fre.0rg.UkjaudItorSresp0n9IbIIi1Ie5. This description forms part of our auditor's report. Page 12
The Barristers, Benevolent Association Independent Audltor's Report to the Members of The Barristers. Benevolent Assoclation (continued) Use of our report This report is made solely to the charitable company's tTUStees, as a body, in accordance with Chapter 3 of Part 16 of the Compani8s Act 2006, Our audit work has been undertaken so that we might slate to th8 charity's trustees those malters we are r6quired to state to them in an auditorfs report and for no other purpos8. To the fullest e*(ent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its trustees as a body, for our audit work, for this report, or for the opinions we have formed. Alexandra Shore (Senior Statutory Auditor) For and on behalf of A C Mole LLP Chartered Accountants and Statutory Auditor stafford House Blackbrook P8rk Avenue Taunton Somerset TA12PX Date...,.... A C Mole is eligible for appointment as auditor of the Charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. Pag8 13
The Barristers, Benevolent Association Statement of Financial Actlvities for the Year Ended 31 December 2024 Ilncluding Income and Expendlture Account) Unraslricted funds Restrlcted funds Tolal 2024 Note Incom8 from: Donations and legacies Investment inccme Other income 343,323 233,565 7,207 1,870 7,838 345,193 241,403 7,207 Total income 584,095 9,708 593,803 Expondlture on: Raising funds Charitable activities (42,181) 625,019 (1,458) 3,891 {43,839) 628,910 Total expenditure Gainsllosses on investment assets 1667,200) 486,234 (5,349) 16,571 (672,549) 502,805 Net income 403,129 20,930 424,059 Net movem8nt in funds 403,129 20,930 424,059 Reconclllation of funds Total funds brought fOard Total funds carried forward 12,833,684 13.236,813 304.115 13,137,799 13,561,858 19 325,045 The notes on pages 18 to 33 form an inlegral part of these financial slatemenls. Page14
The Barrlster8' Benevolent Assoclation Statement of Financial Activities for the Year Ended 31 December 2024 {contlnued) (Including Income and Expenditure Account) Total 2023 £{As rastated) Unrestrl¢ted funds Restricted funds Noto Income from: Donalions and legacies Investmenl income Other income 573.143 239,457 7,200 400 7,897 573,543 247.354 7,200 Total income 819.800 8,297 828,097 Expenditur8 on: Raising funds Charitable aclivilies (39,358) 511,167 (1,398) 8,527 (40,756) 519,694 Total expenditure Gainsllosses on investment assets (550,525> 481,541 (9.925) 17,104 (560,450) 498,645 Net income 750,818 15.476 766.292 Net movement in funds 750,816 15,476 766,292 Réconcillallon of funds Total funds brought foard Total funds Carried forward 12,082,888 12,833,684 288,639 12,371,507 13,137,799 19 304,115 All of the charity's activitie8 derive from continuing operations during the above perlods, The funds breakdown for 2023 is shown In note 19. The notes on pages 18 to 33 form an integral part of these financial statements. Page 15
The Barristers, Benevolent Associatlon (Regi8tratlon number: 06284271) Balance Sheet as at 31 December 2024 2023 £IAs restated) 2024 Note Fixed assets Tangible assels Investments Programme related investments - Concessionary loans 12 13 14 193,910 9,538,980 3,697,140 200,915 9,112,448 3,529,728 12,843,091 13,430.030 Current assets Debtors Cash at bank and in hand 90,256 254,360 344,616 123,730 395,792 519.522 Credltors: Amounts falllng duè within one year Net current assets 16 21,788 33,814 322,828 485,708 Nat assets excluding pension liability Provisions 13,752,858 191,000) 13,328,799 18 191,000 Net assets 13,561,858 13,137,799 Funds of th8 charity: Reslricted funds Unreslricled funds 325,045 13,236,813 13,561.858 304,115 12,833,684 Total fund5 19 13,137,799 The Committee Members acknowledge their responsibilities for ¢omplying with Ihe requirements of the Companies Act 2006 with respect to the accounting records and preparation of the financial statements, The financial stalemenls hav8 been prepared in accordance with the provisions applicable lo entities subject lo the small companies regime. The financial statements on pages 14 to 33 were approved by the Iruslees, and aulhorised for issue on 7 August 2025 and signed on their behalf by: Terence Mowschenson KC, Chairman Trustee The notes on pages 18 to 33 form an integral part of these financial statements. Page 16
The Barrlsters, Benevolent Association Statement of Cash Flows for the Year Ended 31 December 2024 2023 £(A8 restated) 2024 Note Cash flows from operatlng activities Nel income 424,059 766,292 Adjustments to cash flows from nonvcash Items Depreciation Investment income Interest payable Revaluation of investments 8,242 (241,4031 43.639 502,805 (268,268) 8,845 (247,354) 40,756 (498,645 69,894 13 Worklng capital adjustments {In¢rease)Idecrease in programme related investment8 Decreasel(increase) in debtors {Decrease)lincrease in creditors Net cash flows from operating activities 14 15 16 (167,412) 33,474 12,028 25,739 (15,714) 3,925 414,232 83,844 Cash f lows from investlng actlvitias Investment income Purchase of tangible fixed assets Purchase of inveslmenls Sal8 of investments 241,403 11,237) <1,883,900} 1,960,173 247,354 (1,062) {6,347,533) 5,871,063 12 13 13 Net cash flows from inv6Sting activities Cash flows from financlng actlvitles Interest payable and similar charges Net decrease in Cash and cash equivalents Cash and cash equiv81ents at 1 January Cash and cash equivalents at 31 December 316,439 (230,178) 43,639 40,756 (141,432) 395,792 254,360 1187.090) 582,882 395,792 All of the cash flows are derived from continuing operations during the above periods. The notes on pages 18 to 33 form an integral part of these financial statements. Page 17
The Barrlsters. Benevolent Association Notes to the Financial Statements for the Year Ended 31 December 2024 l General Information The Charity is a company limited by guarantee and is regist8red with the Charity Commission {Charity Registered Number 1106768> and Registrar of Companies (Company Registration Number 052842711. The Member6 of the company are the Committee Members named on page 1. In the event of the Charity bein9 wound up, the liabilily in respect of the guarantee is limited to £1 per Member of the Charity. The address of the registered office is given in the Charity information on page 1 of these financial statements. The nature of the Charily's operations and principal activities are listed in the Committee Members, Report. 2 Accounting policies Basis of preparalion of financlal stalements The financial statements have been prepared in accordance wilh Ihe Charit188 SORP IFRS 102) Accounting and Reporting by Charities.. Statement of Recommended practi applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102) (issued October 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021 and the Companies Act 2008. The Barristers, Benevolent Association meets the definition of a public benefit entity under FRS 102, Assets and liabililies are initially recognised at historical Gosl or transaction value unless otheiSe stated in the relevant accounting policy. The financial statements are presented in Pounds Sterling which is the functional currency of the Charity and rounded lo the nearest pound. Going concern The Committee Members have assessed the use of going concern and have considered possible events or conditions that might cast significant doubl on the ability of the Charily lo conlinue as a going concern. The Committee Members have made this assessment for a period of at leasl one year from the dale of the approval of these Financial Slalemenls. The Committee Members have concluded that there are more than adequate resources to continue in operational existence for the foreseeable future and have no immediate concerns. Therefore the charity continues to adopt the going concern basis in preparing its financial statements. Income All income is recognised once the charity has enlitlement to the income. it is probable that the income will be received and Ihe amount of the income receivable can be measured reliably. Page 18
The Barristers, Benevolent Association Notes to the Financial Statements for the Year Ended 31 December 2024 (continued) 2 Accountlng policies (continued) Legacies The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate wilh sufficient accuracy the amount receivable. Evidence of enlillemenl to a legacy exists when the Charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy musl be recognised when it is probable that it will b8 received and the fair value of the amount receivable. which will generally be the expected cash amount to be dislributed to the Charity, can be reliably measured, Donations For donations to be recognised the Charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance b&fore &nlitlement can be obtained then income is deferred until those conditions are fully mal or the fulfilment of those conditions is within the control of the Charity and it is probable that they will be fulfilled. On receipt, donated professional seNices and facilities are recognis8d on the basis of the value of the gift to the Charily which is the amount it would have been willing to pay to obtain s8rvic&s or faciliti@s of equivalent economic benefit on the open market,, a corresponding amount is then re¢ognised in expenditure in the period of receipt Income tax recoverable in relation lo donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Income from Investments is recognlsed when it is recelvable. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service. Expenditure All expenditure Is accounted for on Sn accruals basis and has been classified under headings that aggregate all costs related to that category. Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in selllement and th& amount of the obligatlon can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each aclrvily. Direct costs attributable to 8 single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned beeen those activities on a basis consistent with the use of resources. Central staff costs are allocated on Ihe basis of time spent, and depreciation charges allocaled on the portion of the assel's use. Expenditure on raising funds includes all expenditure incurred by the Charity to rais8 funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading. Page 19
The Barristers. Benevolent Association Notes to the Financlal Statements for the Year Ended 31 December 2024 (contlnued) 2 Accounting pollcies (continued) Expenditure on charitable activities is incurred on directly undertaking the 8Ctivilies which further the Charity's objects, as well as any associated support costs. Grant5 payable are charged in the year when the offer is made excepl in th0$8 cases where the offer is conditional, such grants being recognised as expènditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure. All expenditure is inclusive of irrecoverable VAT. Taxation The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and Iherefore it meets the definition of a charitab18 company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of tha Taxation of Chargeabl8 Gains Act 1992, to the extent that such income or gains are applied exclusively lo charitable purposes. Tanglble fixed assets and depreciation Tangible fixed assets costing £500 or more are capitalised and recognised when futur8 economic benefit5 are probable and the cost or value of the asset can be measured reliably. Tan9ible fixed assets ar8 initially recognised al cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. Depreciation is charged so as to allocale the cost of tangible fixed assets less their residual value over their eslimated useful lives, using the straight-line method, Depreciation is provided on the following ba5es'. Leasehold property Fixtures and fittings Computer equipment 20/• Straight line on cost of building 159/0 Straighl line 20 % straight line Investments Fixed assel investments are a form of financial instrument and are inilially recognised at their transaclion cost and subseqvently measured at fair value using the closing quoted market price. All gains and losses are taken lo the Statement of Financial Activities as they arise. The Statement of Financial Activities includes the net gains and losses arising on revaluations and disposals throughout the year. The fair value of listed investments is determined by reference to the quoted price for idenlical assets in an active markel at the Balance Sheet dale Page 20
The Barristers. Benevolent Assoclation Notes to the Financlal Statements for the Year Ended 31 December 2024 (contlnued) 2 Accounting policies {continued Concesslonary loans Conc&ssionary loans include those receivable from third parties which are inlerest free or below market inter8St rates and are made to advance charitable purposes. Where the loan is repayable in more than one year, the loan is initially measured at cost, with the carrying amount adjusted in subsequ8nt years to reflect repayments and adjusted if necessary for any impairment. As the majority of loans are expected to be repaid in more than one year, Concessionary loans are included within non-currenl assets. Debtors Debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid. Cash and cagh equlvalents Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investm8nts that ar& readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. Llabilitles and provlslon8 Liabilities are rècognised when there is an obligation at the Balan Sheet dale as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Charity anticipates it will pay to settle thé debt or the amount it has received as advanced payments for the goods or services il must provide, Financlal Instruments The Charity éoes not have any complex financial instruments. The Charity only holds basic FinanGial Inslrumenls. The financial assets and financial liabilities of the Charity are as follows.. Debtors other debtors (Including accrued income) are basic financial instruments and are debt instruments measured at amortised cost as delailed in Note 16. Prepayments are not financial instruments. Cash at bank- is classified as a basic financial inslrum8nt and is measured al face value. Liabilities accruals and other creditors will be classified as financial instruments, and are measured at amortised cost as detailed in Note 16. Taxation and social security are not inGluded in the financial instruments disclosure. Deferred income is not deemed to be a financial liability, as in the cash setllement has already taken place and there is simply an obligation to deliver charitable servioes rather than cash or another financial instrument. Investments - are measured al fair value. Page 21
The Barristers, Benevolent Association Notes to the Financial Statements for the Year Ended 31 December 2024 (continued) 2 Accounting pollcies (contlnued) Operatlng leases Rentals paid under operating leases are charged to the Statement of Financial Activities on a straighl line basis over the lease term. Pensions The charity pays pension benefi15 10 pensioners on an unfunded basis. The benefits arè for a fixed amount and therefore the scheme is considered to be a defined benefit schem8. The value of the Scheme's liabilities have been determined in accordance with the requirements of FRS102 by 8Xternal actuaries, Barnett Waddingham, by projecting the expected benefit payments using certain assumptions and discounting these back lo the latest review date. Further information is included in Note 18. Fund accounting General funds are unreslricled funds which are 8vailabl@ for use at the discretion of the Committee Members in furtherance of the general objeclive8 of the Charity and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Committee Members for particular purposes. The aim and use of each designated fund is set out in the notes lo the financial statements. Reslricled funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The Costs of raising and administering such funds are charged against the 8pecifiG fund. The aim and use of each restricled fund 18 set out in the notes to the financial statements. Investment income, 9ains and losses are allocated lo the appropriate fund. Prior period adjustment Where corrections are required to comparative figures, these are adjusled in the earliest period to which they relate. Details of prior period adjustments are included in Note 22. Page 22
The Barrlsters, Benevolent Association Notes to the Financial Statements for the Year Ended 31 December 2024 (contlnued) 2 Accountlng polic18s (contlnued) Critlcal accounting Judgements and estimation uncertalnty The preparation of the financial statements in conformity with FRS 102 requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, incom8, and expenses. Estimates and judgem8nls are continually evaluated and are based on historical experience and other factors, including expectations of future events that ar6 believed to be reasonable under the circumstances. The charity makes estimates and assumptions concerning the future. The resulting accounling eslimales will, by definition, seldom equal the related actual results, The Trustees consider Ihal the following critical accounting estimates and judgements have a significant risk of causing a material adjuslmenl to the carrying amounts of assets and liabilities within the next financial year.. Penslon scheme liabllitles The charity has an obligation to pay pension benefits to certain former employees. The cost of these benefits and the present value of the obligation depend on a number of tactors, including.. life expectancy and the discount rale on corporate bonds. With assistance from external actuaries, the Committee Memb8rs estimate these factors when determining ih8 pension liability recognis8d In the balance sheel. There is a risk that actual factors in the future diffei from these assumptions. In addition, the actuarial valuation as at 31 Dec&mber 2024 has been used to estimate the prior period liability. There is a rlsk that the actual pension liability as al 31 December 2023 differed to this estimate. Full details of the pension liability are included in Note 18. Concessionary loan Impalrments Committee Members make estimates as to the recoverability of concessionary loans, and impairments are recognised where the ability to recover loans is considered to be in doubt. The actual loans recovered in future periods could differ from the impairmenls recognised at the balance sheet date. Page 23
The Barristers. Benevolent Assoclation Notes to the Financial Statements for the Year Ended 310ecember 2024 (continued) 3 Income from donatlons and legacies Unrastricted funds Restrlcted funds Total funds Donations Legacies Donations received from specific institutions Total for 2024 198,406 81,166 83,751 343,323 1,870 200,276 61,166 83,751 1,870 345,193 Donations Legacies Donations received from specific institutions Total for 2023 (As restatgd) An analysis of donations received from specific institutions is shown in Note 4. 206,458 289,550 77,135 400 206,858 289.550 77,135 573,143 400 573,543 4 Donations received from speclflc institutlons 2024 2023 Honourable Society of Inner Temple Honourable Sociely of Middle Temple Honourable Society of Lincoln's Inn One Crown Office Row Landmark Chambers Wilberforce Chambers Quadrant Chambers Matrix Chambers Falcon Chambers 1GC Management Limited Chancery Bar Association The Band Trust Property Bar Gray's Inn Benchers Ladies Associalion Jane and James Kessler Family Charitable Trust 2 Kings Bench Walk Chambers 10,000 20,000 32,000 10,000 20,000 32,000 250 500 500 250 300 6,650 500 250 250 5,000 250 3,000 2,000 185 1,500 2,000 455 10,000 3,046 83,751 77,135 Page 24
The Barristers, Benevolent Associatlon Notes to the Financial Statements for the Year Ended 31 December 2024 (continued 6 Investment Income Unrestrlcted funds R8stricted funds Total funds Dividends and interest on investments Bank interest receivable 228,540 5,025 7,838 236.378 5.025 Tolal for 2024 233,565 7.838 241,403 Dividends and interest on investments Interest on loans Bank inter681 receivable 224,039 11,486 3,932 7,897 231,936 11,486 3,932 Total for 2023 239,457 7,897 247,354 6 Other Income Unrestrlcted funds Restricted funds Total funds Rental incom6 7,207 7,207 Total for 2024 7,207 7,207 Rental income 7,200 7,200 Total for 2023 7.200 7,200 7 Analysls of expendlturo on charllable actlvltles a) Costs of generating donations and legacles Unrestrlcted funds General Restricted funds Total 2024 Investment management costs 42,181 1,458 43,639 Unrostricted funds General Restricted funds Total 2023 Investmenl management costs 39,358 1,398 40,756 Page 25
The Barristers. Benevolent Associatlon Notes to the Flnancial Statements for the Year Ended 31 December 2024 (continued) 7 Analysis of expenditure on charitable acllvlties (contlnued) Activiti88 undertaken dlreclly 3,602 Grant funding of actlvlties 308,229 Support costs 317,079 Total funds 2024 628,910 Grant giving Total 2024 3,602 308.229 317,079 628,910 Acllvlties undertaken dlrectly 3,450 Grant funding of activlties 222.948 Support costs 293,296 Total funds las restated) 2023 519.694 Granl glving Total 2023 3,450 222,948 293,296 519,694 In both the current and previous y8ar, all grant funding of activities were lo individuals. Grants were made lo 5312023 - 501 individual beneficiaries, often in respect of living costs such as food, medical, rent and council tax. Grants varied in length between the short and long term and were often distributed monthly or quarterly. 8 Analysis of governancè and support Gosls Support costs 2023 IAS restated) 2024 Staff costs Depreciation Rent and rates Office cleaning, electricity, insurance, mainlenance and water Printing, postage, stalionery and appeals Telephone Advertising Computer consultants Bank charges Subscriptions Sundry expenses Concessionary loans Impairment Governance costs 122,167 8,242 60,187 8,285 68 2,484 6,000 23,821 1,008 2,933 597 24,415 56.874 117,192 8,845 57,611 7,730 1,653 2,624 6,000 22,398 1,063 2,482 774 4.403 60,521 293,296 317,079 Page 26
The Barristers. Benevolent Assoclatlon Notes to the Flnanclal Statements for the Year Ended 31 December 2024 (continued) 8 Analysis of governance and support costs (continued) Governance costs Total 2024 Total 2023 Legal and professional fees Auditor's remuneration Audit of th8 financial statements Auditors, remuneration - Other servic8S Auditors remuneration - Audit of the financial statement - predecessor firm Auditors remuneration - Other services - predecessor firm Auditors remuneration - Under accrual of prior year- predecessor firm 37,158 15,218 4,500 35,610 18,600 4,200 2,111 60,521 56,874 9 Staff costs 2024 2023 Wages and salari6S Social security costs Pension costs 90,533 5,847 25.787 86,342 5,272 25,578 117,192 122,167 The average number of persons employed by the Charity during the year was as follows,. 2024 No. 2023 No. Administration No employee received remuneration amounting to more than £60,000 in either year. 10 Commlttee Members. remuneratlon and expenses During the year, no Committee Members received any remuneration or other benefits12023- £NIL). During the year ended 31 December 2024, no Committee Member axpenses have been incurred {2023 - £NIL). 11 Taxation The charily is a regislered charity and is therefore exempl from taxation on its income and capital gains to the extent that such income 15 applied to Charitable purposes. Page 27
The Barristers, Benevolent Assoclatlon Notes to the Financial Statements for the Year Ended 31 December 2024 (continued) 12 Tanglble fixed assets Fixtures and fittlngs Computer equipment Propertles Total Cost At 1 January 2024 Additions 304,950 33,838 14,567 1,237 353,355 1.237 At 31 December 2024 304,950 33,838 15,804 354,592 Depreciatlon At 1 January 2024 Charge for the year Al 31 December 2024 106,586 6,099 33,838 12,01S 2,143 152,440 8,242 112,685 33.838 14,159 160,682 Net book value At 31 December 2024 192,265 1,845 193,910 At 31 December 2023 198.364 2,551 200,915 All fixed assets ar8 held for use by the Charily. The Assoclation has an inleresl in I0 properties (one freehold and one leasehold flall where ownership has been transferred to the Association by beneficiaries of the Charity. 13 Fixed asset Investments Llsted Lisled investments inv•stments 2024 2023 Falr value At 1 January 2024 Additions Disposals Revaluation 9,112,448 8,137,333 1,883,900 6,347,533 {1,960,173) (5,871,063} 502,805 498,645 At 31 December 2024 9,538,980 9,112,448 Page 28
The Barristers. Benevolent Association Notes to the Financial Statements for the Year Ended 31 December 2024 (contlnued) 14 Programme related investments - Concesslonary loans 2024 2023 Loans at 1 January Loans granted in Ihe year Loans repaid in the year Loan impairment charges Loans at 31 December 3,529,727 288,397 196,569) 24.415 3,555,467 208,235 {229,571> 4,403 3,697,140 3,529,728 As the majority of loans are expected lo be repaid in more than one year, Concesslonary loans are included wilhin non-Gurrent assets. Where possibl8. loans are secured on the beneficiary's property. Interest is charged on secured loans at a rate of 1 % plus base rate. No interest is charged on unsecur8d loans. 15 Debtors 2024 2023 Prepayments and accrued income Dividends and interest receivable Other debtors 21,900 68,318 38 54,836 88,856 38 90,256 123,730 16 Creditor8: amount8 falling due withln one year 2024 2023 Trade creditors Other credltors Accruals 1,386 902 19.500 21,788 1,273 9,741 22,800 33,814 17 Operating lease commitmenls At 31 December 2024 Ihe Charity had commitmenls to make future minimum lease payments under non-cancellable operating leases as follows.. 2024 2023 Within one year Between one and five years 38,088 133,308 42,088 63,132 171,398 105,220 Page 29
The Barristers, Benevolent Association Notes to the Financial Statements for the Year Ended 31 December 2024 (continued) 17 Operatin9 leas8 commitments {contlnued} The following lease payments have been recognised as an expense in the Statement of Financial Activities.. 2023 (As reslated) 2024 Oparaling lease rentals 58,088 59,148 59.148 58,088 18 Pension commltments The charily has an obligation to pay pension benefits to certain former employees. The benefits are paid on an unfunded basis, i.e. there are no funds explicitly set aside and ringfenceé for this purpose. Th8 pension benefits are for a fixed amount and as such the scheme is a defined benefit scheme. In accordance with Financial Reporting Standard 102, the present value of future obligations lo make penslon payments have been recognised as a liability at the balan sheet date. 2024 2023 Presenl value of unfunded obligations 191,000 191,000 Pension liabilitles 191,000 191,000 The Truslees have engaged Barnett Waddingham LLP, registered actuaries, to provide 8 valuation of the unfunded pension liabilities for the Association's accounts. The aduaries have provided a valuation as at the balance sheet dale, 31 December 2024, The Trustees consider that this provides a reasonable eslimatlon of the liability for the prior period, and therefore their report has also been used lo eslimate the liability for the comparative figures. Determinirbg the value of the pension liability depends on a number of assumptions, The principal actuarial assumplions at the balance sheet dale were as follows.. 2024 2023 Discount rate Mortality tables Future mortality Improvements: 5.2/. S4NA 5.20/0 S4NA CMI 2024 projections using a long term improvement rale of 1.500/• pa. Core values are used for other parameters. The unfunded pensions are fixed and therefore do not incur annual increases. Page 30
The Barristers. Benevolent Assoclatlon Notes to the Flnancial Statements for the Year Ended 31 December 2024 (contlnued) 19 Funds Balance Balance at a11 Other 31 January Incoming Resources recognised December 2024 resourc8s expended Transfèrs gainsl(lossos) 2024 Unrestrlctod f unds General General funds 9,303,956 584,095 (667,200) (167,412> 486,234 9,539,673 Designated Funds designated for loans 3,529,728 167,412 3,697,140 Total unr6Strlcted funds 12,833,684 584.095 {867,200) 486,234 13,236.813 Restricted fundg Th8 Inns of Court G8insford Trust 304,115 5.349 16,571 325,045 Total funds 13,137,799 593,803 672,549 502,805 13.561,858 General funds are funds which can be used in accordance with the charitable objects at the discretion of the Commit168 Board. Designated funds are set aside by tha Committee Members out of the unrestricted general funds for specific future purposes. The fund designated for concessionary loans was set up to recognise the funds committed to loans lo beneficiaries. The transfer belween the funds is to align the closing balance of the fund with Ihe year end valuation of the programme related inveslmenls. The Inns of Court Gainsford Trust, a charitable Trust previously administered by Grays Inn, transferred their funds to the BBA. Th6 fund is to be used to help members of the Bar of England and Wales and their dependants who either liv& in Greater London or who have lived in Greater London. Page 31
The Barristers. Benevolent Association Notes to the Financial Statements for the Year Ended 31 December 2024 (continued) 19 Funds (contlnued) Balance Balance at31 at1 December January Other 2023 2023(As Incomlng Resources recognlsed (As restated) resources expend8d Transfers gainsl(lossesl restated) Unrestrlcted funds General General funds 8,457,401 819,800 {550,5251 95,739 481,541 9,303,956 Deslgnated Funds designed for loans 3,625,467 95.739 3,529,728 Total unrastrlcted funds 12,082,868 819,800 {550,525} 481,541 12,833,684 Restrlcted funds The Inns of Court Gainsford Trust 288,639 9,925 17,104 304.115 Total funds (As reslatedl 12,371,507 828,097 560,450 498,645 13,137,799 20 Analysis of net assets between funds Total funds at31 Decomber 2024 Unrestricted funds General Restricted funds Tangible fixed assets Fixed asset investments Programme related inveslmenls Current assets Current liabilities Provisions 193,910 9,213,935 3,697,140 344,616 (21,788} 191.000 193,910 9.538,980 3,697,140 344,616 121,7881 191,000 325,045 Total net assets 13,236,813 325,045 13,561,858 Page 32
The Barristers. Benevolent Association Notes to the Financlal Statements for the Year Ended 31 December 2024 {continued) 20 Analysls of net assets between funds (contlnued) Total funds at31 Dec8mb8r 2023 Unrestricted funds General Restrlcted funds As restated Tangible fixed assets Fixad asset investments Programme related investments Current assets Current liabilities Provisions 200,915 8,808,333 3,529.728 519,522 (33,814) 191,000 200,915 9,112,448 3,529.728 519.522 {33,814) 191,000 304,115 Total nel assets 12,833,684 304,115 13,137,799 21 Related party transactions There were no related party transactions during the year other than Committee Members making unrestricted donations of £5,120 (2023 - £5,065) to the Charity. If a Committee Member knows an applicant, then they are not involved in the decision making process in regards to agreeing loans or gr8nt applications. 22 Prior perlod adjustment5 Penslon scheme obligatlons During the year it was identified that pension scheme obllgations, which had previously been disclosed, were required to be included as a liability in the accounts in order to comply with Ihe requiremenls of Financial Reporting Standard FRS102. As a result, the present value of these obligations has b8en included as a liability. Th8 adjustment lo the accounts was to Increase pension scheme liabilities £t 1 January 2023 by £191,000 and reduce unreslricted reserves by the same arnounl. Further details are included in note 18, Concesslonary loans During the year, il was identified that Concessionary loans were more accurately classified as non-current assets, the prior period comparatives have therefore been updaled to reflect this classificalion. There is no net effect on reserves. Rent charge During the year, il was identified that rent paid for the premises was net of an annual donation from the landlord. The comparative figures have been adiusled to reflecl the gross rent cost and donation received. This increases rent payable and donations received by £20,000. There is no net effect on reserves. Page 33