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← Fraud Advisory Panel

2023-12-31-accounts

www.fraudadvisorypanel.org

Annual report and financial statements

For the year ended 31 December 2023

Uniting against fraud

Charity registration no: 1108863

Company registration no: 04327390

The Fraud Advisory Panel is the UK’s leading counter-fraud charity and the collective voice of the counter-fraud profession.

We help combat fraud and protect society by supporting, connecting and uniting the frontline professionals engaged in the fight. We were founded in 1998 by ICAEW, which continues to support our work.

Our vision

A society working collaboratively to prevent, detect and deter fraud and financial crime.

Our mission

To give everyone access to the knowledge, skills and resources they need to prevent fraud and protect themselves from the harm caused by financial crime.

Values

Integrity

Independence Inclusivity

Table of contents

A word from Matthew Field 2
Our corporate members 3
Welcome from Sir David Green CB KC 4
Report of board of trustees 6
Achievements and performance 7
Future Plans 10
Financial review 1 1
Structure, governance and management 14
Trustees, staff and committees 17
Statement of trustee’s responsibilities 18
Independent auditor’s report 19
Financial statements 25
Balance sheet 26
Statement of cash flows 27
Notes to the financial statements 28
Reference and administrative details 33

A word from Matthew Field

The opportunity to join an influential and highly respected organisation like the Fraud Advisory Panel comes around very rarely indeed. As the UKs only counterfraud charity, the Panel is uniquely independent with an enviably wide base of support across the sectors and professions.

Before talking a little about 2023 I would first like to thank my predecessor, Mia Campbell. For almost 20 years she steered the Panel to this remarkable position as an independent source of practical support, best-practice advice, thought leadership and policy review. My thanks also go to Alan Bryce and Hope Sapey for their support throughout the handover.

With our board of trustee directors, the renewed backing of our founder and donor (ICAEW) and the continued commitment of our wonderful membership, we are building on our incredible strengths to create a Fraud Advisory Panel fit for the challenges of a new era.

Of central importance will be more proactive and timely engagement with our membership, through our in-person events, as usual, but also through our redesigned website with its new functionality for exchanging ideas and supporting working groups.

A new corporate membership forum is also helping to maximise the expertise of organisations that support us by focusing on those complex fraud matters best addressed through expert

collaboration.We will, of course, continue to focus on our charity and business communities, with whom we have worked so closely for many years. Regular programmes of activities and campaigns will build on the continuing successes of Charity Fraud Awareness Week and the remarkable effectiveness of the recent Love Business – Hate Fraud campaign.

But, as David explains below, our Future Counter-Fraud Community has now given us a third focus – to strengthen society’s future fraud resilience, and to combat fraud in future years, by giving new counter-fraud practitioners the support they need as professionals while enhancing awareness of fraud prevention.

The coming year, 2024, will also mark the start of something new. Henceforth we will be taking a much more deliberate, focused and structured approach to building and strengthening the wider counter-fraud community, creating a truly collaborative, multi-disciplinary and cross-sector fraud response that serves professionals and wider society.

Matthew Field

Head of the Fraud Advisory Panel

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OUR CORPORATE MEMBERS

ACCA

ICAEW

Access Bank Plc

International Compliance Association

BDO LLP

Mitsubishi HC Capital

CCAB

Moorfields Advisory Ltd

Cifas

Northern Ireland Audit Office

Corporate Research and Investigations Edmonds Marshall McMahon

Oxford University

Pinkerton

Evelyn Partners

Pinsent Masons LLP

Ernst & Young

PwC

FTI Consulting Grant Thornton UK LLP Harbinson Mulholland HM Land Registry

Synectics Solutions

Tenet Compliance & Litigation

Wedlake Bell LLP

XXIV Old Buildings

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Welcome from Sir David Green CB KC

Our 25th anniversary year turned out to be one of great change for the Fraud Advisory Panel.

After almost 20 years leading the organisation, Mia Campbell left us. She did so with our very best wishes and sincerest thanks.

April saw Matthew Field became the Panel’s new head. Alongside our executive, Hope Sapey, he has already overseen a number of important changes preparing the organisation for a very promising 2024.

Meanwhile, our founder and donor, ICAEW, renewed its support for the Panel. In July ICAEW CEO Michael Izza took the opportunity of our AGM to speak warmly of the Panel’s work and the importance of fighting fraud and building future resilience by working together.

Michael retired as ICAEW CEO at the end of spring 2024. I would particularly like to thank him for his support for the Fraud Advisory Panel but also for his own commitment to tackling fraud and promoting effective collaboration across sectors and borders.

120 delegates, along with supporters from the private and third sector, gathered to hear key speeches, attend topical breakout sessions and have their questions answered by a day-long helpdesk operation.

The third BDO/Fraud Advisory Panel Charity Fraud Report (2023) was also launched at the BDO conference and is now available to download free of charge. It brings to life the true scale of the fraud threat faced by charities, reveals how the wider impact of fraud is now much better understood by the sector, and shows how the charities themselves are coming together to improve fraud awareness, share best practice and protect the sector.

For the first time since Charity Fraud Awareness Week began (2015) conferences were also hosted outside London. Evelyn Partners and Burness Paull joined together to deliver the first charity fraud conference in Glasgow. Meanwhile, in Belfast, Harbinson Mulholland hosted a conference for charities in Northern Ireland.

We were also delighted to welcome Laura Hough, ICAEW director trust and ethics, to our board as a trustee director, and also The Rt Hon. The Lord Garnier KC as our new patron.

A brief look back at 2023

We have been running Charity Fraud Awareness Week for almost ten years now. This year it began with BDO’s charity fraud conference in November, held at their London offices. More than

Alongside these main conferences, supporters, charity staff and regulators came together to produce webinars, help sheets and blogs covering a wide range of topics. This wonderful resource of expert advice and insight is hosted on the Prevent Charity Fraud website. I encourage everyone in the sector to make maximum use of it.

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In March we again worked alongside R3 and Insol Europe to run a fraud conference, this time called Trust in Short Supply . Its complement of expert speakers attracted more than 150 delegates. This was the fourth time we have ran the event, which continues to go from strength to strength.

In November we launched our new website, designed specifically to strengthen connection and collaboration across the wider counter-fraud community. Planned updates include a members-only area as well as online functionality to encourage dialogue and topic-led discussion. As part of our continuing efforts to bring members and supporters together in ways that reflect their shared concerns, the new site represents a very significant step forward.

We also concluded our year-long Love Business – Hate Fraud campaign (sponsored by corporate member Barclays). Small to mid-sized businesses are arguably the bedrock of British commerce and they need help fighting the complexity and sophistication of modern fraud threats. This project was badly needed and I very much want to thank Barclays for enabling us to deliver it so effectively. My thanks also go to everyone else who supported this work with contributions to webinars, support materials and the like (all now easily – accessed through the Love Business Hate Fraud website).

Future Counter-Fraud Community (FCFC)

If society is ever to get ahead of the constant and evolving flow of fraud threats we must actively encourage and develop the practitioners of the future.

Our new Future Counter-Fraud Community is designed to do just that, using education, collaboration and mentoring to drive generational change. Under the FCFC umbrella we will host webinars and run events designed to increase the fraud awareness of the younger generation and so, in turn, enhance society’s resilience in the years to come. A mentoring programme will connect anyone interested in making a career in fighting fraud (including students) with experienced practitioners willing to provide support and share knowledge.

Vision for 2024

With our membership expanding, support for our work growing across the globe, and the launch of the Future Counter-Fraud Community and mentoring scheme, 2024 is truly shaping up to be a very exciting year for the Fraud Advisory Panel.

With thanks to David Kirk

As 2023 drew to a close we were all deeply saddened to learn of the passing of my predecessor, the Panel’s former chair, David Kirk. David dedicated his career to fraud prevention. His loss is felt by all who worked alongside him, here at the Panel and across the counter-fraud world.

Sir David Green CB KC Chair

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Report of the board of trustees

Appointment of a new permanent head and a new trustee director brought the Panel back to full strength.

We also started recruitment of a second executive to help make the Panel more operationally resilient by improving delivery of events, campaigns and legal comment/policy criticism for our three core communities:

-charities -business

-the future counter-fraud community.

an organisation; activists, members, supporters, users and a board of expert trustees all coming together to pursue a common purpose; their shared views guiding the Panel’s responses to new counter-fraud challenges, legislation and other critical events.

Henceforth we intend to place an even stronger emphasis on community collaboration by placing it at the heart of all our work. To this end, in 2023, we decided to revise our vision, mission and priorities.

Vision:

Each of these communities now has its own page on our new website. Tailored content includes links to events and resources. Dedicated branding (using variations on the Panel’s main theme) gives each a distinct feel whilst maintaining the unity of the Panel’s strong and well-recognised identity.

A society working collaboratively to prevent, detect and deter fraud and financial crime.

Mission:

To give everyone access to the knowledge, skills and resources they need to prevent fraud and protect themselves from the harm caused by financial crime.

We will still work to achieve these vital society-wide improvements by fulfilling our charitable objective, as set out in our articles of association:

Our vision, mission and priorities

The great strength of the Fraud Advisory Panel is its independence along with the multi-disciplinary, crosssector expertise and engagement which it makes possible. We are more effective in helping combat fraud because, where interests and challenges overlap (as they so often do), we are best placed to encourage and facilitate what’s needed – cross-sector dialogue, broad-based cooperation and mutual support.

To protect life and property by the prevention, detection and deterrence of fraud through:

·raising awareness ·education ·collaboration ·research.

And these principles will underpin everything we do in 2024, helping us to create strong pipelines of support for our three priority communities and to be more agile and flexible in the way we communicate with members.

Fraud Advisory Panel as community Independence has steadily made the Panel feel more like a community than

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Achievements and performance

Launch of new website

In November 2023 we launched our new website. Designed to reflect the diversity of our membership, the site enables us to provide a clearer view of our structure and activities, and to give each of our key member communities its own space. The new site is a huge step forward for the Panel’s operations and communications.

A members-only login area – including online payment processing to simplify matters for members and staff alike – is in the design phase and will go live in 2024.

Our social media profile also grew in 2023 – with 7,000 followers on our primary platform, LinkedIn – allowing us to share our messages and promote our activities more widely than ever before.

Corporate Membership Forum

The first corporate membership forum met (virtually) in October 2023. Future meetings will be every two or three months.

The forum’s purpose is to maximise the collective expertise of members by promoting cross-sector collaboration through more open conversations and more convenient sharing of ideas and best practice.

tenancy fraud and the threats and vulnerabilities it creates for social housing providers.

Business Community

Professional collaboration against fraud and financial crime

Our year-long Love Business – Hate Fraud campaign concluded successfully in June. We followed it up by commissioning independent market researchers Savanta to investigate how fraud and cybercrime awareness among UK businesses might have changed over the 12 months.

The research found that:

52% are more aware of cybercrime risks; and 56% are more aware of fraud risks.

When asked ‘To what extent do you agree or disagree that fraud is a major risk to growing your business in the next 12 months?’:

Tenancy Fraud Report Lost Homes, Lost Hope

In 2023 we worked with the Tenancy Fraud Forum to release our researchbased report on tenancy fraud, Lost Homes, Lost Hope. We hope it will help improve collective understanding of

50% of all respondents agreed that fraud would be a major risk; for medium/large businesses the proportion was 70%; for IT, technology and communications companies it was 60%; but 24% of small businesses disagreed.

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Future Counter-Fraud Community

Generational change through education and collaboration

Since mid-2023 we have been working to create a members’ community dedicated to developing the understanding and skills of people about to start, or in the early stages of, a counter-fraud career. After consulting with academic experts, apprenticeship providers and our corporate members we decided to focus materials and support in three key areas:

Charity Community

Protecting charities and NGOs from fraud

Charity Fraud Awareness Week 2023

In November 2023 the eighth Charity Fraud Awareness Week provided a global platform for charities and not-for-profit organisations to raise fraud awareness and share counter-fraud best practice.

Over the five days we released a steady stream of support materials. Help sheets and videos (live and on-demand) covered: how to handle and manage whistleblowers; cross-border communication; understanding digital assets; and current threats in both England and Scotland. All materials are still available (free of charge) at the Prevent Charity Fraud website.

We partnered with BDO for the fourth consecutive year to produce an annual charity fraud report which surveyed 121 respondents (almost 20% more than the previous year) and was supported by a strong social media campaign.

Key findings:

67% agree that the cost-of-living crisis has increased fraud risk;

64% expect fraud risk to increase in the next 12 months; and

92% have suffered financial losses from fraud.

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BDO also hosted a charity fraud conference, with 125 attendees and 22 speakers from across the counter-fraud community. Key sessions were filmed, with six videos already released online (preventcharityfraud.org) and six more due for release during 2024.

Harbinson Mulholland hosted our first Charity Fraud Awareness Conference in Northern Ireland, while Burness Paull and Evelyn Partners delivered a conference in Glasgow, demonstrating the growing enthusiasm for fraud prevention across the private and third sectors nationwide. Heightened cross sector support, along with extensive positive feedback and comment, again provided a strong indication of the positive impact Charity Fraud Awareness Week has on the charity sector:

For information on how to prevent, detect and respond to fraud visit preventcharityfraud.org.uk

Informing public policy

The Economic Crime and Corporate Transparency Act, along with the government’s Fraud Strategy, presented an important moment that might produce significant change in the counter-fraud landscape. Our monthly bulletins publicised the Panel’s views on both matters and are still available through our website.

With a general election looking increasingly likely in 2024, we will continue to monitor how (if it all) fraud is addressed as an election issue, and provide expert, balanced community comment and challenge as opportunities arise.

‘Really helpful to talk through the issues in a safe environment’ ‘Fun, engaging and memorable’

‘[for our] internal campaign … we developed awareness videos … posted each day’

‘a blog on our main website as well as messaging running across all our social media channels … show[ed] our support and provide[d] assurance to our donors’

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FUTURE PLANS

Priorities for 2024

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09		 Support charities and NGOs with their fraud
prevention strategy and response.
Conduct a fifth annual charity fraud survey with
BDO; continue to maintain the Prevent Charity
Fraud website and resources.
Support the business community with fraud
prevention strategies through consistent
professional collaboration.
Deliver our Future Counter-Fraud Community
programme; create generational improvements in
young people’s skills and understanding through
education initiatives and collaborative working to
raise awareness and support career guidance.
Continue to grow Charity Fraud Awareness Week;
expand its global reach by facilitating more
international regulator engagement, delivering
more frequent webinars and creating a year-long
programme of activity focused on the charity
community; maintain the Charity Fraud Awareness
website and resources.
Grow the Corporate Membership Forum; deliver a
targeted project to address online targeted fraud.
Engage with individual members and students
through bespoke in-person events; grow the
knowledge base of the panel and support
networking opportunities among supporters.
Recruit an executive to assist with business
operations.
Launch the new website’s online payments function.

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Financial review

INCOME

Our 2023 income was £538,870 (2022: £160,052).

Sources of income

The Fraud Advisory Panel has five main sources of income. Raising funds to cover core costs and future projects is always a priority for board and staff alike.

·Membership subscriptions: £62,032 (2022: £59,409).

As per policy, fee increases will be no more than the annual rate of inflation on the previous 30 September, calculated using the retail price index (RPI).

2024 fees are: £98 for individuals and £2,269 for organisations. Students pay £49.

Events: £14,664 (2022: £26,663).

Event income is primarily generated from the fraud conference with R3 and INSOL Europe, and from delivery of our counter-fraud training courses.

Campaigns: £39,090 (2022: £72,596).

In January 2022 £111,686 was received from Barclays to fund the 12-month Love Business – Hate Fraud campaign. At the 2022 year end, in line with related ytd expenditure on this project, £39k was deferred. This project was complete by May 2023.

Grants: Grant funding from ICAEW of £411,748 has been recognised in the accounts (in accordance with the formal offer of funding to the charitable company), consisting of £75,000 for 2023 and an additional £336,748 across the following three years until the end of 2026.

Donations: £0 (2022: £1,000).

Donations are received on an ad hoc basis. Members can make voluntary gift aid donations to the Fraud Advisory Panel.

Sponsorship: £9,605 (2022:£0)

Sponsorship was received in the year for the Tenancy Fraud Report, help sheets and prevent charity fraud webpages.

Use of funds

All income is used solely to further our charitable objectives. Any surplus or deficit is carried over. No money is paid or transferred to members except as payments in good faith in certain clearly prescribed circumstances.

No trustee had any financial interest in the Fraud Advisory Panel during the year. Any expenses reclaimed from the charity are set out in the notes to the accounts.

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Fundraising

The Fraud Advisory Panel does not raise funds directly from the public and is not, therefore, registered with the Fundraising Regulator. No fundraising complaints have been received.

Grants and sponsorship are actively sought by the board and its finance committee to fund specific charitable activities.

EXPENDITURE

Our annual expenditure decreased to £177,770 (2022: £205,273). Costs were primarily those associated with staff employment.

RESERVES

Our reserves policy is to maintain sufficient free revenue reserves to meet the equivalent of between six and nine months’ average operating costs (i.e. £89k - £133k).

Unrestricted funds at year end, excluding the 3-year grant commitment from ICAEW, amounted to £134k, equating to nine months (2022: £110k: six months).

RISK MANAGEMENT

The Fraud Advisory Panel is a risk-conscious organisation with risks identified, assessed and reviewed continuously. An established system of internal controls (regularly reviewed) governs all our operations and provides reasonable assurance against the risk of fraud, error and the inappropriate use of our resources. Most of the day-to-day financial management is delegated to ICAEW’s finance department, which must conform to ICAEW standards and is subject to regular review by its internal audit function. An annual letter of assurance is provided to us by ICAEW.

Financial processes which fall outside the remit of the ICAEW finance department are reviewed by the finance committee, led by a treasurer and comprising of the head of the Panel, ICAEW accounts and two trustee directors.

Our three most significant risks, along with what is being done to mitigate them, are outlined below. The board is satisfied that appropriate steps are being taken to manage these risks.

Loss of key staff: A new head of the Panel joined in 2023 and the executive has a revised job title (campaigns executive) more closely aligned with the responsibilities of that position. Recruitment has begun for a second executive to relieve existing resource pressures by supporting administrative functions.

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Structure, governance and management

STRUCTURE

Legal status and structure

The Fraud Advisory Panel was founded in 1998 by the ICAEW. Today it is a charitable company limited by guarantee, registered in England and Wales. It was incorporated on 22 November 2001 and became a registered charity on 5 April 2005. The charity was set up under a memorandum of association and is governed by articles of association last updated and adopted on 22 July 2020.

The Fraud Advisory Panel is a membership body with 175 paid-up members at the end of the year (151 individual and 24 corporate). All members must comply with a code of conduct.

The main activities undertaken to fulfill our objectives are an annual events programme, awareness-raising campaigns for businesses, charities and consumers, research and providing ongoing support to counter-fraud professionals, both current and aspiring.

Objectives and activities

Our objective is ‘the protection of life and property by the prevention, detection, investigation, prosecution and deterrence of fraud’, particularly through:

Public benefit

Trustees confirm that they have complied with their duty under the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission in determining the Panel’s current and future activities, as demonstrated in the achievements and performance section starting on page 7. All our trustees are volunteers and receive no private benefit from serving on the board.

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GOVERNANCE

Trustee recruitment and training

New trustees are recruited using a variety of methods – including personal recommendation, word of mouth and adverts, depending on the skills, experience and knowledge sought. New trustees receive a handbook containing relevant information on policies, procedures, and governance. They also receive continuing support from the chair, deputy chairs and staff. Training needs are assessed annually.

Board

Up to 15 trustees can serve on our board at any one time. Trustees are appointed for fixed terms of three years, with further terms possible. ICAEW is entitled to appoint up to one-third of trustees. A further three can be co-opted. On 31 December there were 15 serving trustees listed on page 17. A total of six board meetings were held.

The policy committee did not meet in 2023.

The nominations committee did not meet in 2023.

Other committees

At the beginning of 2022 the board established two new standing committees and continued a third listed on page 17. Other ad hoc groups were convened to assist with specific consultation responses.

The advisory committee met three times to assist the board to develop and deliver its strategy and annual plans, and to act as a trusted sounding board.

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Qualifying indemnity and cyber insurance

The Fraud Advisory Panel holds indemnity insurance covering its trustees and volunteers along with cyber insurance that includes and independent risk assessment carried out by our insurance providers.

MANAGEMENT

Management and staff

The Fraud Advisory Panel has no direct employees. In 2023 two full-time permanent staff members and one parttime staff member on a fixed term contract were seconded from ICAEW.

In June 2023 the part-time fixed contract ended, leaving the Panel with two fulltime employees.

Day-to-day management of the charity is delegated to the head, who is also the company secretary.

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Trustees, staff and committees

Chair

Sir David Green CB KC

Trustees

His Honour John Anderson David Bacon Arun Chauhan Frances Coulson (co-deputy chair) Liyun (Lee) Fitzgerald Jonathan Holmes Laura Hough Professor Michael (Mike) Levi Patrick Rappo (co-deputy chair) Rachel Sexton Oliver Shaw Brendan Weekes Iain Wright Edna Young

Staff

Finance

Jonathan Holmes (treasurer) Arun Chauhan Kerry Radford (ICAEW financial accountant) Laura Hough

Nominations (did not sit in 2023) Sir David Green CB KC (chair) Arun Chauhan Frances Coulson Oliver Shaw

Policy (did not sit in 2023) Patrick Rappo (chair) David Bacon Edna Young

Head and company secretary

Mia Campbell (Head until 31 January 2023. Company Secretary until 3 April 2023)

Alan Bryce (Interim head 1 February 2023 until 2 April 2023. Business campaign manager until 8 June 2023)

Matthew Field (Head and company secretary from 4 April 2023)

Executive

Hope Sapey

Committees

Events

Brendan Weekes (chair) Laura Hough Kerri McGuigan Tamlyn Edmonds Ricky O’Connell

Advisory

Rachel Sexton (chair) David Bacon Dave Carter William (Bill) Cleghorn Maria Cronin Tamlyn Edmonds Gary Forbes David Rowe-Francis Andy Mayo Jackie Morley Steven Philippsohn Andrew Price Paul Wainwright Ros Wright CB KC Rebecca Dix Sasi-Kanth Malella

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Statement of trustees responsibilities

The trustees (who are also directors of the Fraud Advisory Panel for the purposes of company law) are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. This has been done in accordance with UK generally accepted accounting principles (accounting standards and applicable law) including FRS 102, which is the financial reporting standard for the UK and Republic of Ireland. Under company law the trustees must not approve these financial statements unless satisfied that, for the period in question, they provide a true and fair view of the charitable company’s state of affairs, incoming resources and application of resources (including income and expenditure). In preparing these financial statements the trustees are required to:

The trustees are responsible for keeping adequate accounting records sufficient to show and explain the charitable company’s transactions; disclose with reasonable accuracy at any time the financial position of the company; and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps to prevent and detect fraud and other irregularities.

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The trustees conflrm that: Appolntmont of audltor so far as each trustee is aware. there is no relevant audit information of which the company's auditor is unaware- and Haysmacintyre LLP will be proposed for reappointment at the AGM. Approval of the annual report and financlal statements they have taken all the steps that they ought to have taken as trustees to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information The annual report and financial statements were approved by truste s on the Ist of May 2024 and ed on their alf by.. are si Dav een CB The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Chai This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006. 19

Independent auditor’s report To the members of the fraud advisory panel

Opinion

Basis for opinion

We have audited the financial statements of the Fraud Advisory Panel for the year ended 31 December 2023 which comprise the Statement of Financial Activities, Balance Sheet and Statement of Cash Flows and notes to the financial statements, 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:

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical

responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the

responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Report of the Board of Trustees. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

the information given in the Report of the Board of Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Report of the Board of Trustees has been prepared in accordance with applicable legal requirements.

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Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Board of Trustees.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees for the financial statements

As explained more fully in the Statement of Trustees' Responsibilities set out on page 24, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

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Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Charities Act 2011, and sales tax.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to income and management bias in accounting estimates and judgements. Audit procedures performed by the engagement team included:

Irregularities, including fraud, are

instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the charitable company and the environment in which it operates, we identified the principal risks of non-compliance with laws and regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements.

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Reviewing the charitable company’s risk assessment and considering whether this is indicative of noncompliance with laws and regulations; and

Identifying and testing journal entries posted that significantly impact on the result for the year and postings in accounts that are considered to be higher risk.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities This description forms part of our 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 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.

Kathryn Burton (Senior Statutory Auditor)

for and on behalf of Haysmacintyre LLP Statutory Auditor 10 Queen Street Place London EC4R 1AG

Date: 11th July 2024

24

FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL ACTIVITIES

(INCOPORATING AN INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 DECEMBER 2023

Note
Income and endowments from:
Donations and legacies
Membership subscriptions
Donations
Grant Funding
Charitable activities
Event income
Campaigns
2
3
Other trading activities
Investment income – bank interest
Total income and endowments
Expenditure on charitable activities
Total expenditure
Net expenditure and movement in
funds
Funds brought forward
Funds carried forward
3		 Unrestricted
funds
2023
£
62,032
-
411,748
14,664
39,090
9,605
1,731
538,870
(177,770)
(177,770)
361,100
109,870
470,970		 Unrestricted
funds
2022
£
59,409
1,000
-
26,663
72,596
-
384
160,052
(205,273)
(205,273)
(45,221)
155,091
109,870

All activities are continuing. The charitable company has no recognised gains and losses other than those reported above for the year.

The notes on pages 28 to 32 form part of these financial statements.

25

BALANCE SHEET AS AT 31 DECEMBER 2023 COMPANY NUMBER: 04327390 2023 2022 Note Current assets Debtors Cash at bank and in hènd 356,455 153,157 509.612 4.975 188,004 192,979 Current liabilities Tèx ahd social secuflly Accruals and deferred income 13,9611 134.6811 138.6421 13,6301 179,4791 183,1091 Net assets 470,970 109.870 Funds of the charitv Unrestricted funds 470.970 109,870 The financial statements on page 25 were approved and authorised for issue by the board on the 15l of Mav 2024 and signed on its behalf by.. Sir David Chair reen CB 26

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2023

Cash flows from operating activities
Net movement in funds
Adjustments for:
(Increase)/decrease in trade and other debtors
Increase/(decrease) in creditors
Net cash (used in)/provided by operating activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at the beginning of year
Cash and cash equivalents at end of year		 2023
£
361,100
(351,480)
(44,467)
(34,847)
(34,847)
188,004
153,157		 2022
£
(45,221)
68,795
48,957
72,531
72,531
115,473
188,004

27

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31

DECEMBER 2023

1. Accounting policies

General information

The Fraud Advisory Panel is a charitable private company limited by guarantee incorporated in England

and Wales (company registration no. 04327390) and registered with the Charity Commission (charity registration no. 1108863). The charitable company’s registered office address is Chartered Accountants’ Hall, Moorgate Place, London EC2R 6EA.

Accounting convention and basis of preparation

Going concern

After reviewing the forecasts and projections including the grant commitment from ICAEW, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future and consider that there are no material uncertainties regarding the charitable company’s ability to continue as a going concern. The charitable company therefore continues to adopt the going concern basis in preparing its financial statements.

Income

The financial statements have been prepared under the historical cost convention, and in accordance with the Statement of Recommended Practice for Charities (SORP 2019), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Companies Act 2006.

The charitable company constitutes a public benefit entity as defined by FRS 102.

Income is recognised when: the charitable company has entitlement to the funds; any performance conditions attached to the funds have been met; it is probable that the income will be received; and the amount can be measured accurately.

28

Expenditure

Expenditure is recognised on an accruals basis.

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account

Financial instruments

The charitable company only has basic financial instruments which include trade and other receivables and payables. These are initially recognised at transaction value and subsequently measured at their settlement value.

Fund accounting

Unrestricted funds comprise accumulated surpluses and deficits on general funds. They are available for use at the discretion of the trustees in furtherance of the Panel’s charitable objectives.

29

2.Charitable activities

aritable activities
Direct costs
Events
Campaigns
Publications
Website
Support costs
Seconded staff
Governance
Other expenses		 2023
£
6,730
20,628
12,306
14,932
54,596
113,110
7,655
2,409		 2022
£
10,424
57,366
15,330
6,952
90,072
103,149
7,725
4,327
177,770 205,273

The Fraud Advisory Panel has no employees. Two ICAEW employees were seconded to the Fraud Advisory Panel by the end of the year. A part time campaign manager was employed until May to complete the Love Business – Hate Fraud Campaign but also to provide cover from February to April until the new Head of FAP was appointed. (2022: 2 plus a part time campaign manager from February onwards to assist with the Love Business – Hate Fraud campaign). The campaign manager role has been apportioned between seconded staff and under campaign costs above. On this basis the charitable company is considered to have no higher paid staff nor key management personnel compensation.

Trustees receive no remuneration for their services, which are given voluntarily, and they

receive no benefits in kind. No travel expenses were reimbursed to any directors during 2023 (2022: £118 to one director). Payments were made in respect of expenditure incurred by the charitable company relating to carrying out of the their duties as trustees totalling £451 (2022: £719) including meeting room hire, training and refreshments

There are no contracts of service between the charitable company and the trustees.

The auditor’s remuneration amounted to £4,600 (2022: £4,000) exclusive of irrecoverable VAT.

As a registered charity the Fraud Advisory Panel is not liable for corporation tax on income and gains applied for charitable purposes.

30

3. Reconciliation of movements in funds

3. Reconciliation of movements in funds
Unrestricted and total funds at 1 January
Surplus/(deficit for the year)
Unrestricted and total funds at 31 December
4. Debtors
Due within one year:
Amounts owed by associated undertaking
Prepayments and accrued income
ICAEW grant commitment - 2024
Other debtors
Due over one year
ICAEW grant commitment – 2025/2026		 2023
£
2022
£
109,870
155,091
361,100
(45,221)
470,970
109,870
2023
2022
£
£
1,352
601
2,652
108,400
1,366
-
15,696
3,008
128,100
4,975
228,355
-
356,455
4,975

31

5. Members' liability

The charitable company is limited by guarantee. Each member (those individuals and organisations who have subscribed to membership) undertakes to contribute such an amount as may be required – but not exceeding £1 – on winding up.

6. Related party transactions

The Fraud Advisory Panel was established in 1998 through a public-spirited initiative by ICAEW. ICAEW has the right to appoint up to one-third of the charitable company’s trustee directors.

Many of the trustees are also individual members of the Fraud Advisory Panel or benefit from corporate membership through their employer. All such memberships are charged at the normal rates.

During the year ICAEW paid grant funding of £75,000 and recharged costs of £121,545 to the Fraud Advisory Panel (2022: £125,660) which includes the costs associated with the three seconded employees. At the end of the year £1,352 was owed to the Fraud Advisory Panel (2022:£601)

32

Reference and administrative details

Fraud Advisory Panel

A company limited by guarantee

Registered and principal office

Chartered Accountants’ Hall Moorgate Place London EC2R 6EA +44 (0)20 7920 8721 www.fraudadvisorypanel.org

Company registration no. 04327390 Charity registration no. 1108863

Independent auditor

Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG

Bankers

National Westminster Bank Plc 501 Silbury Boulevard Saxon Gate East Milton Keynes MK9 3ER

Solicitors

Bates Wells & Braithwaite London LLP (trading as Bates Wells) 10 Queen Street Place

London EC4R 1BE

HelloDPO Ltd Rewell House Chichester Road Arundel BN18 0AJ

33

THANK YOU special thanks to ICAEW for its continuing support

FRAUD ADVISORY PANEL Chartered Accountanrs, Hall Moorgate Place London EC2FI 6EA +4410120 7920 8721 5nfo@fraudadvisorypanel.org www.fraudadvisorypanel.org Qegistereij Charity No. 1108863 Company Limited by Guarantee Registered in England and Wales No. 04327390 FRAUD ADVISORY PANEL Fraud Advisory Panel 2024