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2020-12-31-accounts

Charity Commission No. 1115871

CIBSE BENEVOLENT FUND TRUST

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

CIBSE BENEVOLENT FUND TRUST

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Contents Page
Reference and administration information 1
Trustees' Report 2
Independent Auditor's Report 5
Statement of financial activities 9
Statement of financial position 10
Statement of cash flows 11
Notes to the financial statements 12

CIBSE BENEVOLENT FUND TRUST

REFERENCE ADMINISTRATION INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2020

TRUSTEES Mr D Wood (Chairman) C Sealy E Simpson J Stocker J Mclean A Catchpole K Beecroft R Jennings A McWilliam J Field (joined 2020) REGISTERED OFFICE c/o Chartered Institution of Building Services Engineers Delta House 222 Balham High Road London SW12 9BS CHARITY NUMBER 1115871 AUDITOR BDO LLP Statutory Auditor 55 Baker Street London W1U 7EU PRINCIPAL BANKERS National Westminster Bank Croydon & South London Commercial Business Centre 3rd Floor Link House 4 Addiscombe Road Croydon CR0 5TT

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TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

CIBSE BENEVOLENT FUND TRUST

The Trustees present their annual report and accounts of the CIBSE Benevolent Fund Trust (the "Trust") for the year ended 31 December 2020. The financial statements have been prepared in accordance with the accounting policies set out on pages 12 to 13 and comply with its Trust Deed, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) (Charities SORP (FRS 102)).

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Trust is governed by the Trust Deed dated 16 August 2005. The charity number is 1115871 and the Trust was registered with the Charity Commission in England and Wales on 21 August 2005.

The objectives of the Trust are the relief of persons who are in conditions of need, hardship or distress and who are members or former members of the Institution of Heating and Ventilating Engineers or of the Illuminating Engineering Society of Great Britain or of the Chartered Institution of Building Services Engineers (CIBSE) and the immediate dependants of such persons. Except in exceptional circumstances, support is normally only offered to those who have paid not less than three years’ subscriptions to one or more of those institutions and to the dependants of such persons.

Assistance and all financial aid shall be at the discretion of the Board of Trustees who may delegate this responsibility to a Management Committee.

The Board of Trustees consists of at least seven Trustees and includes:

ACHIEVEMENTS AND PERFORMANCE AND FINANCIAL REVIEW

The Fund’s income for 2020 was just over £58K, a decrease of £4K on the previous year. Grant expenditure has decreased by £4K mostly caused by the decrease in ad-hock grant requests; these totalled £4K in 2020 but were £7.5K in 2019. The Trust's total reserves, all of which are unrestricted, at 31 December 2020 amounted to £889,753 (2019: £826,470).

ACTIVITIES IN THE YEAR

Activity during the year showed an decrease in grant payments, due to the decrease in requests for oneoff support as described above, although the overall number of beneficiaries did not decrease.

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CIBSE BENEVOLENT FUND TRUST

TRUSTEE'S REPORT (CONTINUED) TO THE TRUSTEES OF THE CIBSE BENEVOLENT FUND TRUST

FUTURE PLANS

The Trustees remain of the view that the increasing number of retired CIBSE members and an ageing population in general, combined with the uncertainties faced by many in respect of pension provision, that there is scope for more demand to emerge over time, although this not yet been apparent. The Fund has responded to requests arising out of the Covid-19 pandemic of 2020; it is anticipated that the continuing crises will give rise to further needs and challenges over time, and the Trustees are conscious of the need to respond quickly and effectively to further developments. More generally, the Trustees continue to seek opportunities to promote the work of the Fund, to generate income and to draw the attention of potential beneficiaries to the available support.

RISK MANAGEMENT

A full review of the Trust’s main areas of risks has been undertaken. This includes all health and safety policies and procedures. The Trustees are happy with the processes that have been established to mitigate these risks. The trustees have considered the risks presented by COVID-19 and consider the trust to be well positioned to mitigate these risks. The reserves comprising cash and investments will enable the trust to meet obligations as they fall due.

PUBLIC BENEFIT

The Trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing their aims and objectives and in planning future activities.

RESERVES POLICY

It is the policy of the Board of Trustees to maintain sufficient free reserves to generate sufficient investment income in order to continue to fulfil the objects of the Trust and to provide for future demands. Investment performance in 2020 was very positive, and the Trustees believe that sufficient funds are available to meet the needs of the Trust and of this reserves policy.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Trust and of the incoming resources and application of resources of the Trust for that period. In preparing these financial statements, the Trustees are required to:

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CIBSE BENEVOLENT FUND TRUST

TRUSTEE'S REPORT (CONTINUED) TO THE TRUSTEES OF THE CIBSE BENEVOLENT FUND TRUST

STATEMENT OF TRUSTEES’ RESPONSIBILITIES (continued)

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Trust’s transactions and disclose with reasonable accuracy at any time the financial position of the Fund and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Report) Regulations 2008 and the provisions of the Trust’s trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Board of Trustees on ………………… and signed on its behalf by:28/10/2021

D Wood Trustee

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CIBSE BENEVOLENT FUND TRUST

INDEPENDENT AUDITOR’S REPORT

TO THE TRUSTEES OF THE CIBSE BENEVOLENT FUND TRUST

OPINION ON THE FINANCIAL STATEMENTS

In our opinion, the financial statements:

We have audited the financial statements of CIBSE Benevolent Fund Trust (the “Trust”) for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Statement of Financial Position, statement of cashflows 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 FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Trust in accordance with the ethical requirements 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.

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 Trust'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.

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CIBSE BENEVOLENT FUND TRUST

INDEPENDENT AUDITOR’S REPORT (CONTINUED) TO THE TRUSTEES OF THE CIBSE BENEVOLENT FUND TRUST

OTHER INFORMATION

The Trustees are responsible for the other information. The other information comprises the information included in the Report of the Trustees, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXPCEPTION

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the Statement of Trustees’ Responsibilities, the Trustees 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 determines 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 Trust’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 Trust or to cease operations, or have no realistic alternative but to do so.

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an

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CIBSE BENEVOLENT FUND TRUST

INDEPENDENT AUDITOR’S REPORT (CONTINUED) TO THE TRUSTEES OF THE CIBSE BENEVOLENT FUND TRUST

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS (continued)

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.

Extent to which the audit was capable of detecting irregularities, including fraud

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:

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at:

https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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CIBSE BENEVOLENT FUND TRUST

INDEPENDENT AUDITOR’S REPORT (CONTINUED) TO THE TRUSTEES OF THE CIBSE BENEVOLENT FUND TRUST

USE OF OUR REPORT

This report is made solely to the Trustees, as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state to the Trust's trustees 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 Trust and its Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Richard Willis (Senior Statutory Auditor)

For and on behalf of BDO LLP, Statutory Auditor London, UK

28 October 2021 Date: …..........................

BDO LLP is eligible for appointment as auditor of the Trust by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

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CIBSE BENEVOLENT FUND TRUST

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2020

----- Start of picture text -----
2020 2019
Note £ £
Income from:
Donations and legacies 34,871 39,172
Investments 2 23,309 22,921
Other trading activities 9 73
Total income 58,189 62,166
Expenditure on:
Charitable activities
Charitable Expenditure 3 43,414 49,173
Total expenditure 43,414 49,173
Net income before gains on investments 14,775 12,993
Net unrealised gains on investments 4 48,508 115,051
Net income and Net movement in funds 63,283 128,044
Fund balance bought forward 826,470 698,426
Fund balance carried forward 889,753 826,470
----- End of picture text -----

All of the above results are derived from continuing activities.

There were no recognised gains or losses other than those stated above and therefore those stated above represent total comprehensive income.

The notes on page 12 to 16 form part of these financial statements.

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CIBSE BENEVOLENT FUND TRUST

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2020

Note
Fixed assets
Investments
4
Total fixed assets
Current assets
Short term deposits
Cash at bank and in hand
Total current assets
Liabilities
5
Net current assets
Net assets
Funds
Unrestricted funds
6
Total funds
Creditors: Amounts falling due within one year		 2020
£
806,967
806,967
86,052
1,000
87,052
(4,265)
82,786
889,753
889,753
889,753		 2019
£
758,459
758,459
85,198
1,000
86,198
(18,187)
68,011
826,470
826,470
826,470

Approved by the Board of Trustees and authorised for issue on ………..………. and signed on its behalf by:28/10/2021

D Wood Trustee

The notes on page 12 to 16 form part of these financial statements.

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CIBSE BENEVOLENT FUND TRUST

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2020

----- Start of picture text -----
Note 2020 2019
£ £
Cash flows from operating activities:
Net cash used in operating activities I (22,455) (8,248)
Cash flows from investment activities:
Dividends and interest from investments 23,309 22,921
Change in cash and cash equivalents in the year 854 14,673
Cash and cash equivalents at the beginning of the year II 86,198 71,525
Cash and cash equivalents at end of the year II 87,052 86,198
Notes to the cash flow statement
I. Reconciliation of net income to net cash flow from operating activities
Net income for the reporting period (as per the Statement of Financial
Activities) 63,283 128,044
Gains on investments (48,508) (115,051)
Dividends and interest from investments (23,309) (22,921)
(Decrease)/Increase in creditors (13,921) 1,680
Net cash used in operating activities (22,455) (8,248)
II. Analysis of cash and cash equivalents 2020 2019
£ £
Cash in hand 1,000 1,000
Short-term deposits 86,052 85,198
Total cash and cash equivalents 87,052 86,198
Analysis of changes in net debt
At Cash At
01/01/2020 Flows 31/12/2020
£ £ £
Cash in hand 1,000 - 1,000
Short term deposits 85,198 854 86,052
Total 86,198 854 87,052
----- End of picture text -----

11

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

CIBSE BENEVOLENT FUND TRUST

1 ACCOUNTING POLICIES

1.1 Basis of preparation and going concern

The financial statements have been prepared under the historical cost convention as modified by the revaluation of fixed asset investments. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a ‘true and fair view’ and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) issued on 16 July 2014 rather than the previous Statement of Recommended Practice: Accounting and Reporting by Charities which was effective from 1 April 2005 but which has since been withdrawn.

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

1.2 Going Concern

The Trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern. The trustees have reviewed the trust’s investments and operations in response to the impact of the Covid-19 pandemic. The charitable activities in 2021 are, at this time, unaffected and there will be sufficient cash resources available to meet grants awarded and operational costs. The trust holds reserves to supplement income requirements to meet its charitable objectives as required. The trustees consider that there are no material uncertainties over the trust’s ability to continue as a going concern for the foreseeable future, being a period of at least 12 months from the date of signing the financial statements.

1.3 Income recognition

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Donations, are recognised when the Trust has been notified in writing of both the amount and settlement date.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Trust; this is normally upon notification of the interest paid or payable by the bank.

Income from investments is included in the Statement of Financial Activities when it is earned. This is when the Charity becomes entitled to the resource.

All income is attributable to unrestricted funds.

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CIBSE BENEVOLENT FUND TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 ACCOUNTING POLICIES (continued)

1.4 Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure.

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure involving more than one category has been apportioned by the Trustees on a reasonable, justifiable and consistent basis, involving estimating proportions of time spent.

Provision has been made in the Statement of Financial Activities for all grants authorised by the Trustees during the year. The expense for the year is reduced by the cancellation of grants authorised but not subsequently required.

All expenditure is made from unrestricted funds.

1.5 Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing market price. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.

The Trust does not acquire put options, derivatives or other complex financial instruments.

1.6 Realised gains and losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequently to the first day of the financial year.

Unrealised gains and losses are calculated as the difference between the fair value at the year‐end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

1.7 Funds

Unrestricted funds are the general funds of the charity, which may be used at the Trustees' discretion in accordance with the charitable objects.

Comparative amounts presented within the Statement of Financial Activities are all attributable to unrestricted funds.

1.8 Judgements and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances. There are no estimates and assumptions that are considered to have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities.

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CIBSE BENEVOLENT FUND TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

2 INVESTMENT INCOME

2020
£
Listed investments including Government Securities
23,230
Cash deposits
79
23,309
ANALYSIS OF TOTAL EXPENDITURE
Direct
Grants
Other
2020
£
£
£
Direct charitable expenditure
Grants to individuals
39,700
-
39,700
Governance costs
-
3,714
3,714
39,700
3,714
43,414
2020
£
Governance costs
Administrative fees
1,964
Audit fees
1,750
Trustees expenses and meeting costs
-
3,714		 2019
£
22,769
152
22,921
2019
£
43,925
5,248
49,173
2019
£
2,188
1,800
1,260
5,248

3 ANALYSIS OF TOTAL EXPENDITURE

Direct grants were made during the year to 39 (2019: 38) individuals to assist with their welfare and financial needs.

Trustees are reimbursed for travelling and other expenses whilst engaged on or incurred in respect of the activities of the fund. Following government enforced lockdowns for the majority of 2020 as a result of COVID-19 no trustees undertook travel and therfor no expense reimbursements were made (2019: 6 trustees at a total of £1,036).

The Charity considers its key management personnel to comprise of the Trustees only. No Trustees received any remuneration during the year (2019: nil).

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CIBSE BENEVOLENT FUND TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

4 INVESTMENTS

Market value at start of the year
Net gains on investments
Market value at the end of year
Historical cost of investments (44,803 units) at the year end		 2020
£
758,459
48,508
806,967
458,864		 2019
£
643,408
115,051
758,459
458,864

The listed investments are managed on behalf of the Trust by CCLA Investment Management Limited.

5 CREDITORS: AMOUNTS DUE WITHIN ONE YEAR

Amounts payable to The Chartered Institution of Building Services Engineers
Accruals
6
ANALYSIS OF CHARITABLE FUNDS 2020
Current Year 2020
Funds
brought
forward
Income
£
£
Unrestricted funds
826,470
106,697
826,470
106,697
Prior Year 2019
Funds
brought
forward
Income
£
£
Unrestricted funds
698,426
177,217
698,426
177,217		 2020
£
626
3,640
4,266
Expenditure
£
(43,414)
(43,414)
Expenditure
£
(49,173)
(49,173)		 2019
£
16,297
1,890
18,187
Funds
carried
forward
£
889,753
889,753
Funds
carried
forward
£
826,470
826,470

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CIBSE BENEVOLENT FUND TRUST

NOTES TO THE FINANCIAL STATEMENT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

7 RELATED PARTY AND RELATED PARTY TRANSACTIONS

The Chartered Institution of Building Services Engineers (CIBSE) is a related party to the Trust by virtue of its members or formers members and their immediate dependants are supported by the CIBSE Benevolent Fund Trust. CIBSE is a charity registered in the United Kingdom and its registered office is 222 Balham High Road, London, SW12 9BS.

2020 2019
£ £
Administration fee charged by CIBSE to the Benevolent Fund 1,750 1,750
Payments made on behalf of the Benevolent Fund
Expenses - 3,496
Grants 8,250 39,200
Amounts received on behalf of the Benevolent Fund
Donations 25,671 28,149
At the end of the year, the Trust owed CIBSE £626 (2019: £16,297).

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