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2020-12-31-accounts

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Chartered Accountants' Benevolent Association

(A company limited by guarantee) Charity number 1116973 Company number 5970606

PRESIDENT’S FOREWORD

The 2020 report is delivered against a backdrop of unprecedented challenge, uncertainty and events that have rocked our community to its very foundations.

It summons to mind mixed emotions tempered with a sense of awe when I consider the work CABA has carried out and reflected in this document. Witnessing what our volunteers, CABA champions, dedicated staff and partners have achieved throughout this year has been truly inspiring. However, a sense of sadness touches me when I see the further rise and increasing levels of support needed throughout this global pandemic.

At the start of 2020, we witnessed a significant change throughout our profession. And as we look forward, we should anticipate that change to continue. The ever increasing need to support and promote positive mental health and help those who are struggling will remain a priority for CABA as we navigate our way through 2021 and beyond.

Over the course of the year, we’ve been able to seamlessly continue to support individuals through our enhanced use of technology. We managed to work predominately with our community using online support, launching a dedicated and well received online Coronavirus hub, and by converting our face-to-face support, events and training into virtual offerings. This demonstrates just some of the ways CABA has pivoted to provide an array of support mechanisms to those who need it most. 2020 saw the importance of our digital platforms becoming more apparent. Visitor numbers to our website, as a means of providing information, support and access to our wellbeing tools grew by 37% and visitor numbers grew substantially by 23%.

We have also witnessed a surge in demand of members accessing our online webinars and e- learning courses with themes like managing personal change, health worries, nutrition, developing a growth mindset, building and maintaining resilience, lone working and developing resilient teams. Our international activity continued to take further strides forward, with technology allowing us to reach and engage with members in a cost-efficient way in 24 different countries and we expanded our reach into 11 additional countries for the first time. Developing support for those living outside of the UK will remain a priority post pandemic, and we will continue to be vigilant around the impacts that Brexit will have on our members.

As new challenges continue to emerge, we aim to empower individuals to maintain a sense of balance and control in their lives. We will strive to further identify and understand the needs of members of the profession - adapting and responding quickly by providing relevant support services and advice-led quality resources in a challenging, changing world.

2021 will also mark an exciting year for CABA. We will be moving to our new offices in Rugby along with launching a new inclusive brand and website later on in the year. We will continue to build on our legacy and do our utmost to support and help the chartered accountant community.

Kaaeed Mamujee, President CABA

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PATRON’S FOREWORD

As President of ICAEW, one of my roles is the Patron of CABA and I’m delighted to have the opportunity to contribute to this annual report and, in particular, to thank everyone at CABA for the tremendous work that they have done to support our members in 2020.

For over 130 years, CABA has supported ICAEW members, students, staff and their families when they most need help. The strength of CABA’s resources enable it to address a range of needs, and outside of wartime this has never been more necessary than through

the COVID pandemic. Reassuringly, notwithstanding the economic upheaval, CABA remains well funded to enable it to respond to increased requests for support.

Without doubt, the last 12 months have been the most extraordinary that many of us will have experienced. The choice and stability that, as chartered accountants, we have been fortunate to regard as “the norm” has been replaced by restrictions on our lives and continued unpredictability. Personal and professional networks that we may have taken for granted have been disrupted and often limited to virtual gatherings, often without the warmth and inclusion of physical

gatherings. Comfortable working environments have been replaced – for many with cramped, shared or otherwise less desirable spaces. And for those with families, there has been the added challenge of integrating children’s education into already busy daily lives. Of course, there have been some benefits – reduced commute times for many and the positive consequential impact on the environment – but for many these are overshadowed by the emotional and practical challenges.

Businesses have struggled, but even the success of those that have thrived is no guarantee of the continued physical and mental wellbeing of their workforces.

Just as the economic consequences of the pandemic will linger long after physical health crisis had abated, I believe there will also be an ongoing impact on individual wellbeing, with a continuing need for increased mental health support. The pandemic may also lead some to a radical rethink of our lives and careers, with a consequential need for coaching or advice on career development. Whilst we can all seek to support our friends and colleagues with these challenges, in CABA ICAEW members have a unique resource of exceptional quality support and expertise, staffed with compassionate and talented people who stand ready to help. The reassurance this provides us is invaluable.

After what was a historically challenging year, I wish CABA every success for 2021.

David Matthews, President, ICAEW

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CONTENTS

The Report of the Trustees Page
Reference and administrative information 5
About CABA 6
CABA’s impact in 2020 8
Looking ahead: 2021 priorities 14
Financial summary and principal risks 15
Structure, governance & management 23
Trustees’ responsibilities statement 27
Audit Report 28
Financial Statements 31
Notes forming part of the financial statements 34

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REFERENCE AND ADMINISTRATIVE INFORMATION

PATRON

David V Matthews JP BSc BFP CA

The President of the Institute of Chartered Accountants in England and Wales (ICAEW)

VICE PATRONS

William A Brooks BA BFP FCA CTA, Deputy President of ICAEW Julia S Penny BA BFP FCA, Vice-President of ICAEW

OUR TRUSTEES AND COMMITTEE MEMBERS

The Trustees have all served for the full year unless otherwise stated

Trustee
Kaaeed Mamujee President
Helen Morris Vice President
Ken Coppock Vice President
Caitriona Flynn
Mary Hardy
Michael Grant (Resigned 02/03/2020) Continued as a member of ARC
Heather Lamont (Resigned 19/08/2020)
David Leafe (Resigned 19/08/2020)
Susan Field
Colin Williams
Mark Evans
Phillippa Seagers
Fay Ashwell (Appointed 17/12/2020)
Angela Catlin (Appointed 17/12/2020)
Natalie Hall (Appointed 17/12/2020)
Committee members Providing advice and support on CABA Committees
Nigel Holland Investment Committee
John Wilkinson Investment Committee (Resigned 28/09/2020)
Lewis Allett Support Services Committee
Kathy Webster Audit and Risk Committee
Michael Grant Audit and Risk Committee
Eric Kwan Investment Committee (Appointed 28/01/2021)
David Larson Investment Committee (Appointed 28/01/2021)
Lei Tao Investment Committee (Appointed 28/01/2021)
Senior leadership team
Kath Haines Chief Executive and Company Secretary (Resigned 12/05/2020)
Cristian Holmes Chief Executive and Company Secretary (Appointed 12/05/2020)
Kelly Feehan Services Director
Jodie Gill Engagement and Communications Director

REGISTERED OFFICE

Merrett House Swift Park Old Leicester Road Rugby Warwickshire CV21 1DZ

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ABOUT CABA

We are the charity that supports the wellbeing of the chartered accountant community around the world.

OUR OBJECTS

The Charity, Chartered Accountants’ Benevolent Association (CABA), was established in 1886, incorporated in 2006, and is a company limited by guarantee.

THE PEOPLE WE SUPPORT

We are with the people we support for life. From the moment they begin their training, throughout their professional life, into retirement and beyond.

To access any of our services please call us on +44 (0) 1788 556 366 Or visit caba.org.uk

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HOW WE DELIVER SUPPORT: THE CABA WAY CABA with you for life CORPORATE STRATEGY 2019- 2023 THE CABA WAY We wll lead the way in benevolence. We ernbrace crealivEty, innovation and technology lo deliver the very best wellt*irYJ solutions lo the chartered accountant community. adapting and responding quickly to the changln9 need$ wlthSn the professlon.. OUR VALUES Passon Inlegrity ResFÈCt Teamworf OUR PRINCIPLES Member focused Fonvard thinking Brand strength Se¢tor leadershlp C¢llaboralSon OUR BRAND Welcoming Compassionate Trusted OUR VISION All membeys of the thartered awountant cornmunity live happy, heatthy and fulfilled lives OUR MISSION CABA provldes support for the Chartered A(thuntant communlty to empower them to look 8fter thelr own wellbeing OUR OBJECTnlE OUR OBJECTIVE OUR OBJECTIVE We will meet the wellbeing needs of the Chartered A¢couniant community We will strengthen our connection5 Wthin the Chartered Accountant communlty Vve will set>Jre the organisation for future generation5 OUR GOALS Be a people focused organisath)n that embraces change and innovatty)n Be a credible and trustsd vorce on wellbeing Be per￿￿ed as a globally operational Gharity expanding ow reach and support forthose in our communrty

CABA’S IMPACT IN 2020

WHAT WE SAID WE WOULD DO IN 2020

We approached the third year of our five-year strategy in 2020, with ambitious goals and milestones. The strategy acknowledged the changing landscape of the accountancy profession and the need for us to be more flexible and innovative to better serve our community.

We said we would:

WHAT WE DID

In March, the global pandemic forced us to re-evaluate and re-focus our efforts into supporting our community during this extraordinary and unprecedented year. As well as increasing our IT investment to enable staff to deliver our services whilst remote-working, it became evident we would also need to increase the speed and efficacy of our response to the community, so we:

The improvements we had put in place through our transformation project during the first two years of our strategy allowed us to be more adaptable and flexible during the pandemic than we may have been otherwise.

HOW WE MEASURED SUCCESS

We continued to use our critical success factors to help us evaluate our performance and illustrate our progress:

  1. Number of meaningful support interactions

  2. Number of meaningful connections

  3. Steps taken to secure the organisation for future generations, and ensure it remains fit for purpose.

Meaningful support interactions

In 2020 we had a total of 443,088 meaningful support interactions with the chartered accountant community, 34% higher than in 2019 (331,875 meaningful support interactions).

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These interactions were for a wide range of services including:

We moved all our support online or via the phone

The highest growth area during 2020 was the use of our digital support services.

Where support services had been delivered face-to-face, we adapted and enhanced our offering to a digital or telephone-based service. We have not yet seen the expected rise in requests for emotional support which may signal that people do prefer a face-to-face service and are waiting for the return to ‘normal’, and/or are also ‘waiting out the pandemic’. Moreover, they are probably dealing with more immediate needs such as financial support and potentially issues at work including furlough/redundancy. When the furlough programme ends, we do expect there to be a rise in support requests.

We provided our services using a variety of means, utilising our in-house team of specialist advisors and case workers as well as working closely with external partners. This meant that the switch to a digital offering did not compromise the excellent quality and positive wellbeing benefits we offer to the chartered accountant community.

We followed an insight and needs led approach to develop and launch new services such as Kooth and Qwell, two online counselling and mental health support services.

Individuals continue to come to us for a wide variety of reasons. In 2020 we dealt with 3,220 enquiries (lower than the 3,735 in 2019).

----- Start of picture text -----
Reasons for enquiry
1,200
1,000
800
600
400
200
0
Legal Advice Emotional Financial Career Other
distress Support Development
2020 2019
----- End of picture text -----

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We enhanced our digital learning services

As well as offering more digital support services, we also adapted our suite of learning materials and switched our programme of delivery to a digital platform to reach a greater number of individuals.

Switching from entirely face-to-face delivery to a purely online service is a significant change for our learning and development offer. This has resulted in significant cost savings but also an increase in the number of people supported. Despite a reduction in the number of courses and workshops, we trained 554 more people in 2020 in comparison to 2019, as more people have been able to attend online training than would when delivered face-to-face.

We provided all training resources electronically and so reduced costs by not providing materials in print. We also decided to keep development of new material and courses to a minimum with just a few short courses being developed to address the impact of Covid-19.

Feedback for our online courses has been comparable to face-to-face training. We achieved overwhelmingly positive responses for online learning for our key areas of impact on wellbeing, training being a valuable use of time and people recommending our courses.

By delivering webinars on a CABA platform, we gained access to an unprecedented quantity and quality of engagement data. This proved invaluable in better understanding our audience, impact and future opportunities; data we did not always receive when webinars were delivered by external partners. By delivering on our own platforms, we’ve also been able to increase the quality of the pre and postcommunication and support to members.

In 2020 we supported 11,195 delegates with their learning and development (compared to 8,519 in 2019).

----- Start of picture text -----
Learning and development
12,000
10,000
8,000
6,000
4,000
2,000
0
UK courses International ICAEW Staff Workshops Webinars and
(provide online courses and seminars e-Learning
from March
onwards)
2020 2019
----- End of picture text -----

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We developed our online presence

We continued to provide relevant wellbeing advice and information on our website. 403,255 individuals used our website to access support and advice during 2020 (up 23% from 306,355 in 2019).

We have also reviewed and repurposed existing content allowing us to be reactive to the changing external environment.

2020 also saw the launch of a new project to redevelop our website. It runs concurrently with our rebrand project and aims to go live in October 2021.

We developed new partnerships and ways of working

2020 was the first full year of working with selected firms on annual programmes of support rather than individual support and interactions. Our strategic drivers were to streamline our current offering, through cost reduction and resourcing efficiency, allowing us to support more of our working community through less individual interactions. It allowed us to be more agile to respond to member need and to signpost to our external partners and pre-existing online resources rather than providing bespoke solutions for each partner.

We worked in partnership with a number of firms to help their ACA employees look after their mental wellbeing through the pandemic and beyond. We supported their staff in helping them develop resilience and dealing with change through virtual learning and webinars while helping to raise awareness of other support that we can offer.

We continued to make meaningful connections with the chartered accountant community

Relationships with our strategic and business partners have been stronger than ever as we reacted to the pandemic both in terms of the services we provide and the online delivery of our outreach activities. We’ve utilised multiple, existing business relationships to reach more of our target audience where they work, train and network.

Whilst we were not able to physically interact with our community, by continuing to work collaboratively with selected partners who we’ve been nurturing for some time, we were able to continue to promote our online services, supporting 6,402 ICAEW members and ACA trainees and in 24 countries through 165 individual interactions. By comparison, in 2019 we supported 12,858 individuals through 245 individual face-to-face interactions in 8 countries.

Naturally, we expected to see a significant decrease in the number of people that we were able to interact with during a global pandemic. Through our strategic partnership with ICAEW in the UK, we’ve seen a 56% decrease in expected outreach figures compared to last year. Many of their planned events were cancelled and we’ve seen the same with some international flagship events.

We’ve also seen a decrease in our interactions with students; we attribute this to their focus being elsewhere as they transitioned to online learning and exams. Our strategic decision not to attend industry events, Accountex and the British Accountancy Awards also affected our outreach numbers.

Where appropriate, we’ve migrated planned face-to-face activities online and in some cases, seen a significant increase in the number of people reached than we did in 2019. More importantly, we’ve been able to start the member on an individual customer journey with CABA. One example of this is our Career Breaker programme which supported 342 ICAEW members on a career break in 2020. The same programme served 71 members when it was delivered face-to-face in 2019 . As a result of online delivery, a CABA representative was able to be present at almost all training deliverables, increasing

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both our reach and members depth of understanding about the services and support CABA can offer during the pandemic and beyond.

In making our digital offering more inclusive and by being more strategic in deciding who to work with throughout 2020, we’ve been able to reach a higher percentage of eligible people.

We have increased our global reach

Internationally we’ve reached more people in more countries in 2020 than we did in 2019 with fewer deliverables and in a more cost-efficient way. As in the UK, we’ve reached fewer retired members than in 2019, but saw an increase in the number of international ICAEW staff accessing our events and webinars. This improves their understanding of CABA’s support and is helpful when they interact with members locally.

In our Younger Members engagement program in Hong Kong, we delivered 6 webinars in 2020, resulting in more than 250 interactions. Working together with the ICAEW and a new CABA Champion in Hong Kong, we also shared relevant content throughout the year. In 2020, we saw a 72% increase in website visits from Hong Kong.

Our 2020 engagement programme in Australia resulted in 196 interactions, a 46% increase on 2019. The improvement in our engagement with members in Australia is also demonstrated by the number of CABA website users which shows a 52% growth on 2019 and is considerably higher than other countries, and by the quality of engagement with the communications sent out to those registering their interest or attending a CABA webinar.

We improved the effectiveness of our communications

As the first lockdown began in March we launched our Corona support hub https://www.caba.org.uk/coronavirus which was accessed by over 5,300 users. The hub contains specific wellbeing resources to help our community through these difficult times and was updated throughout the year.

We changed the focus of our planned campaigns to be reflective of the situation; our Keeping Yourself Well campaign was accessed by 7,500 users and generated 141 enquiries. We had 8,800 engagements across social particularly on Facebook and LinkedIn.

We also strengthened our profile through national & regional PR, featuring in broadsheets, consumer media and the trade press. In 2020 we generated 386 pieces of coverage vs 314 in 2019. We also gained 706 links to our website (vs 308 in 2019), generated 486k website visits (not unique) and appeared in 133k branded searches (vs 101k in 2019).

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We worked to secure the organisation for future generations

During 2020 we relocated our offices and were pleased to rename the building “Merrett House”, in recognition of Mr Henry Merrett who donated a substantial piece of land to CABA in 1958 and has allowed the Charity to develop and grow into the organisation it is today.

Although we have worked hard to ensure that the new offices are COVID secure, unfortunately the enforced lockdowns have meant that our staff team has been unable to enjoy these new facilities. The staff team is very much looking forward to being able to return to Merrett House once restrictions allow.

We also began work in earnest to secure the financial sustainability of the organisation. During 2020 the Trustees assessed a number of modelled scenarios and approved the first steps towards our new Financial Sustainability Strategy. This sets the parameters by which the senior leadership team can prioritise how it deploys its resources, focusing on driving efficiencies and cost reduction and is directly related to the Reserves Policy.

During the year we continued to develop our IT systems in line with the IT roadmap. We moved our phone system to the cloud and implemented Office 365 which has allowed us to transition to working from home with relative ease. We have implemented Exchequer, our budgeting and reporting tool along with a new case management system, webinar platform and a new e-mail management system.

Since 2014, market research has highlighted that our community faces ongoing challenges connecting with our brand. In 2019 the Trustees agreed to commence a project to fully assess these challenges and during 2020 we recruited a brand agency to develop a new brand strategy, which is due for delivery in Q3.

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LOOKING AHEAD - PRIORITIES FOR 2021 AND BEYOND

In 2020, despite the pandemic, we continued to progress towards the fulfilment of our strategy developed in 2018.

The strategy is bold and ambitious, in response to the changing world in which we live and the changing nature of the accountancy profession. It is a strategy that anticipates uncertainty, and we aim to continue to understand our operating environment during 2021 and be responsive to the changing needs of our community, adapting our approach and re-prioritising as necessary.

This, along with key business transformation initiatives planned throughout the year, sees considerable change for CABA, which we believe could significantly enhance the wellbeing of those we support and will enable us to become an organisation well equipped to meet the needs of future generations.

Although we have set the overall strategic direction for the next five years, our strategic objectives are likely to continue into the longer term. Our strategy is flexible, allowing for re-prioritisation as we gain new insights. All the work we do should be directed towards the achievement of these objectives, but to provide focus to the strategy we have created plans and milestones for achieving these objectives in the short to medium term.

In 2021 our three strategic priorities are to:

Meet the needs of the Chartered Accountants’ community by:

Strengthen our connections within the Chartered Accountant community by:

Work to secure the organisation for future generations by:

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FINANCIAL SUMMARY AND PRINCIPAL RISKS

Financial review

Income

Total income for 2020 was £4.7m; this is slightly higher than in 2019 (£4.1m). This was despite investment income falling from £3.9m in 2019 to £3.4m. The fall in investment income can be attributed to subdued dividend receipts due to the pandemic; however this was countered by an increase in voluntary income, including a number of bequests totalling £1m.

During 2020 we were grateful to receive £296k in donations from individuals, organisations and charitable trusts (2019: £154k).

We have also received £1,019k from 13 legacies and are grateful that individuals continue to remember our work in their final bequests.

Expenditure

Expenditure was £6.6m, 15% lower than in 2019 (2019:£7.8m). Direct aid made up £3.8m of this (2019: £4.7m).

Direct Aid

The main reason for the reduction in expenditure was due to a switch in support delivery from face-toface to digital – see our impact in 2020 section for further details.

The majority of our direct aid expenditure was spent on client support interactions. Note 8 details this expenditure.

----- Start of picture text -----
Direct Aid
Advice led support
Outreach
Learning and development
Client support interactions
- 500 1,000 1,500 2,000 2,500 3,000 3,500
2019 2020
----- End of picture text -----

Expenditure on financial assistance increased by 10% to £1.6m (2019: £1.4m). 554 individuals received financial assistance (excluding debt advice) during the year (481 in 2019).

We worked closely with our service partners to switch from face-to-face delivery to digital platforms where appropriate, which has resulted in significant reductions in expenditure.

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Costs for counselling and emotional services have fallen from £324k in 2019 to £120k in 2020, however the level of service users are at a similar level to 2019 (782 service users in 2020 vs 776 service users in 2019).

We have also seen a significant reduction in demand for our career coaching service with costs 71% lower than in 2019. It should be noted that some individuals who would have previously been assigned to this service have now been assigned to our personal and professional coaching which was launched towards the end of 2019.

The move to digital provision of our training courses resulted in 75% lower costs for 2020 (£85k vs £343k in 2019).

Support costs

Overall, support costs fell by 8% to £2.6m (2019: £2.8m).

----- Start of picture text -----
Support costs
Advice led support
Outreach
Learning and development
Client support interactions
- 200 400 600 800 1,000 1,200
2019 2020
----- End of picture text -----

A reduction in the number of campaigns and the cancellation of face-to-face events resulted in communications and outreach costs falling 44% to £345k in 2020 (£613k in 2019).

Although staff were unable to work from the office for much of the year, we incurred additional costs in making our offices COVID-19 secure. Office costs increased from £344k in 2019 to £409k. Some of this increase can also be attributed to our office move during the year.

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Human resource costs

Total human resource costs rose from £2.2m in 2019 to £2.5m in 2020 – see note 11 for details.

Balance sheet

Total fixed assets increased by £1.1m. For more information on the total return of the portfolio, see the investment section of this report.

Ensuring our staff had the equipment they required to effectively continue to work from home has resulted in capitalised IT expenditure of £50k. This investment also ensures that the staff team are able to work more flexibly in the future.

2020 also saw investment in our new offices. Our former offices at Mitchell Court are currently being marketed for sale.

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Investment policy and performance

The primary financial objective of the portfolio is to provide funds for our ongoing operations and support activities. Over the long term, this means providing a stream of relatively predictable and stable funding in support of annual budgetary needs, and at least maintaining the portfolio’s real (inflation-adjusted) purchasing power after management expenses and spending.

With this objective in mind, the Trustees have agreed a long-term target of achieving an average annual total return that exceeds the rise in UK average weekly earnings (AWE, excluding bonuses) by 3%, net of the cost of investment management. The Trustees recognise this is a long-term target and can only be fully assessed over a number of years, which may be 10 years or more.

However, the actual returns are monitored as part of the ongoing review process in the shorter term. Comparisons are made against index returns from a composite benchmark portfolio reflecting the strategic asset blend of the funds held in CABA’s portfolios; against the ARC Steady Growth Index, a peer group comparator of charity portfolios; and against the long-term return objective of wage inflation plus 3%.

The portfolio’s returns relative to these comparative measures over the 1 year, 3 years and 5 years to 31 December 2020 were as follows:

----- Start of picture text -----
Total returns % 1 year 3 years (p.a.) 5 years (p.a.)
CABA portfolio 5.8 7.5 9.9
Strategic benchmark 2.9 5.0 8.6
ARC Steady Growth Index 2.7 4.5 6.7
Wage inflation +3% 7.3 7.4 7.1
----- End of picture text -----

Over the calendar year and longer-term periods, the portfolio is well ahead of the strategic benchmark.

The portfolio is invested primarily through multi-asset charity funds where the investment objective and strategic asset allocation are in line with the Charity’s return objective and risk tolerance. Additional investment may be made into specialist areas such as property and private equity to increase the diversification within the overall investment portfolio.

The Trustees are satisfied that the portfolio is performing in line with expectations, while acknowledging that returns in future years may be more modest than the strong returns enjoyed in recent years, especially from the equity markets.

The Trustees recognise that the management of investments requires appropriate expertise. The Investment Committee Terms of reference state that at least two members have significant professional investment experience, and at least one of whom should be a Trustee. The Board has appointed Stanhope Consulting to provide advice on strategic asset allocation, manager selection, monitoring and consolidated reporting.

A significant level of capital volatility within the investment portfolio is considered to be acceptable by the Trustees given the investment portfolio’s long-term time horizon and real return objectives. However, the portfolio is designed to be well diversified across asset classes and individual investments to limit the risk to capital and income.

In order to avoid the need to realise investments at inopportune times, a minimum of one year’s worth of our forecast expenditure less expected investment income is to be held in the form of cash deposits or UK government bonds.

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Reserves policy

CABA holds reserves to ensure it can meet the needs of future generations and to fund operational expenditure by generating an income to cover expenditure.

A large proportion of the reserves (£124.7m at 31 December 2020) are investments held to generate income and secure the long-term funding of the charity.

These reserves currently represent our principal source of funds for annual expenditure. Investing them in this way, rather than liquidating the reserves for short-term spending, is intended to ensure that this income stream is sustainable for the long term. The primary financial objective of the portfolio is to provide funds for our ongoing operations and grant making activities.

Income and stewardship are considered the primary guiding principles.

The aim is to utilise funds as effectively as possible, balancing the needs of today’s beneficiaries with those of future generations.

Monitoring and review

The reserves policy is reviewed regularly by the Trustees when considering strategic change. These reviews include consideration of whether the current policy of seeking a sustainable income stream from the investment portfolio remains the most effective use of our funds, or whether the Trustees should instead reduce the expected level of future investment income in favour of shorter-term spending from capital.

During 2020, the Trustees assessed a number of modelled scenarios and approved the first steps towards a new Financial Sustainability Strategy. This sets the parameters by which the senior leadership team can prioritise how it deploys its resources, focusing on driving efficiencies and cost reduction and is directly related to the Reserves Policy.

Current reserve levels

2020 2019
£m £m
Unrestricted Reserves 132.6 131.2
Free reserves* 130.1 128.6
Endowment and Restricted Funds 0.3 0.3

* Free reserves are monies not tied up in operating activities

As at 31 December 2020, CABA had unrestricted funds of £132.6m of which £130.1m were considered to be 'free reserves', that is those funds which are not tied up in fixed assets or otherwise designated. In addition to the unrestricted reserves, we held £0.3m of restricted and endowment funds.

Grant making policy

We offer a holistic, needs-led client service. Each client is unique, and we recognise that while we have rules and guidelines, each client’s circumstances will determine the help and support we provide.

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Requests for support are received and assessed by our experienced Support team in line with the Support Services guidelines. These guidelines are a comprehensive list of rules and guidance and include the mandatory authorisation process. Decisions are authorised via a system of strictly enforced delegated authority levels, in line with their monetary value and complexity.

Fundraising

We have not conducted any fundraising activity in the year, and we have not employed any third party to fundraise on our behalf. As such we are not a member of the Fundraising Regulator. We do accept donations, which can be made via our website or by post.

We have received no complaints about fundraising. A complaints policy is in place should we receive any in the future.

CABA’s public benefit

The Trustees have given due consideration to the Charity Commission’s published guidance on the operations of the public benefit requirements. In line with this, we are committed to providing high quality services to the chartered accountant community.

We are also keen to ensure that we have a broader impact beyond the chartered accountant community. Much of our online support is open access.

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Principal risks and uncertainties

The Trustees conduct regular reviews of the major risks to which we are exposed.

The Audit and Risk Committee oversees the management of risk throughout the organisation and gathers assurances that risk is being mitigated as necessary.

The Risk Register is reviewed and updated regularly by the management team and the responsible committees. The top risks are reported to the Board each quarter and we have introduced systems and controls to mitigate the risks we face.

Our current top three risks are:

1) Data security and cyber resilience

Cyber incidents continued to increase throughout 2020, with many cyber criminals taking advantage of the worldwide pandemic. Organisations struggled to maintain data security with entire workforces moving outside of the business environment, overnight.

By the end of 2021, the damage caused by cyber incidents are estimated to cost $6 trillion annually, with the average cost of a single breach reaching $3.92 million. With 43% of attacks being aimed at small to medium sized businesses, the risk to CABA and our data subjects remains significant. In 2020, we focused on adjusting security to compensate for a decentralized workforce:

In 2021, we will continue to develop our resilience to cyber threats and support our compliance through:

2) Failure to keep the organisation relevant or meet the needs of the chartered accountant community

Through the launch of our new brand and new website in 2021 we will be able to engage with a wider percentage of our eligible audience, both in the UK and overseas and deliver a more tailored and user-

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friendly digital experience. We will also be able to increase our capacity to deliver support and gain further insights about our community in order to provide the best possible service.

Addressing our brand values internally and externally will also improve our staff morale and motivation and reduce negative impact on our people culture.

3) Unable to adapt to the changing demands of the post-pandemic world

We are undertaking a review of the five-year strategy to ensure we can continue to meet the needs of our community in a more flexible way, balanced with the increased focus on our Financial Sustainability strategy.

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STRUCTURE, GOVERNANCE AND MANAGEMENT

Group structure

This Report presents information about the Charity and its subsidiary undertakings, CABA Trustees Limited (Company no. 01600366) and CABA Housing Limited (Company no. 01863595).

Board of Trustees

The directors of the Charity, as defined in the Companies Act 2006, are also Charity Trustees for the purposes of charity law. Under the Charity’s Articles they are known as Trustees. Eligibility for election to the Board of Trustees is governed by the Articles, a copy of which may be obtained from the Secretary or from the website.

The applicable rules state that the Trustees may appoint members to fill casual vacancies. Any member so appointed shall retire at the Annual General Meeting following their appointment but shall be eligible for re-election. A Trustee is eligible to serve for three consecutive terms of office (a term is for three years), after which they must take a break from office and may not be reappointed until the Annual General Meeting following the Annual General Meeting at which their break from office commenced. The Charity uses a formal recruitment process to appoint Trustees. Vacancies are publicly advertised, and prospective candidates undergo a rigorous interview process. Formal training of Trustees is carried out at least once a year and a full day of induction training is given to all new Trustees.

If you are interested in becoming a Trustee, please email enquiries@caba.org.uk

The Board of Trustees, who met regularly during the height of the pandemic, and who meet quarterly in more normal times, are responsible for the strategic direction and policy of the Charity. At present, there are 12 Trustees. There were three retirements during 2020 and the Trustees would like to thank Heather Lamont, David Leafe and Michael Grant (who remains a member of the Audit and Risk Committee) for their service and valuable contribution to CABA.

To enable the Trustees to manage the Charity effectively, a number of sub-committees have been established to oversee, advise and act on behalf of the Board of Trustees regarding specific areas of the organisation. These are the Investment Committee, the Audit and Risk Committee and the Support Services Committee. Each committee has its own terms of reference in regard to its duties, responsibilities and delegated authorities, all of which were reviewed in 2020 .

We have seven experienced, independent committee members, four of whom sit on the Investment Committee, one on the Support Services Committee, and one on the Audit and Risk Committee. All committee members undergo the same recruitment process as the Trustees. There was one retirement during 2020 and the Trustees would like to thank John Wilkinson for his service and valuable contribution to CABA.

23

Executive

The day-to-day management of the Charity has been delegated to the Chief Executive, Dr Cristian Holmes who joined CABA during the year, supported by the Directors.

Kelly Feehan, Services Director is responsible for support services including financial awards and overseeing our international development and delivery; and Jodie Gill, Engagement and Communications Director is responsible for relationship building, marketing and communications, and our learning and development programme.

This senior leadership team is supported by passionate, experienced and knowledgeable managers and staff. Reports on the activities of the Charity, including management accounts, are presented for review quarterly at the Trustees’ meetings.

Employees

All our staff are committed to providing the highest quality support and help. As the range of support we offer has grown and the ways in which that support is delivered has changed, the commitment, knowledge and expertise of our staff has been fundamental to our success as a charitable organisation.

We are committed to supporting the training and development of our staff.

The Trustees wish to thank and congratulate the staff team on their performance in 2020, supporting ever more people during a particularly challenging year.

For more information on staff profiles please visit our website caba.org.uk/staff

Remunerations policy

It is our policy to remunerate fairly, to ensure that we attract and retain the skills we require to deliver our service offering and future strategy. We benchmark roles and job descriptions to relevant not-forprofit sector roles, a process which accounts for geographic variances. Our intention is to repeat this benchmark exercise with roles on a two-year cycle. This process is designed to ensure that the remuneration is fair and in line with that generally paid for similar roles. Our current remuneration policy is to benchmark roles at the median point.

Between cyclical reviews, we look at annual incremental rises. Here, a proposal is put forward to Trustees on an annual basis as part of the budgeting process. The proposal will be informed and underpinned by evidence from a range of external reward benchmarking reports.

This policy complies with NCVO best practice.

24

Volunteers

Volunteers are an essential component of CABA’s team. The Trustees would like to thank them for their contribution in 2020.

Committee members

Thank you to Lewis Allett who supports the Support Services Committee; Nigel Holland, and John Wilkinson who supported the Investment Committee, and Michael Grant and Kathy Webster who supported the Audit and Risk Committee during 2020.

Support volunteers

Our network of support volunteers covers both the UK and overseas. They provide an essential service and assist clients in a variety of ways, from befriending, to supporting them with administrative tasks. If you are interested in providing support to the chartered accountant community and would like to apply, email volunteers@caba.org.uk.

CABA champions

There are a variety of reasons why members volunteer as champions but the recurring theme for all of them is to give back to the chartered accountant community. Some have used our services or know someone who has, and they feel that our support has been invaluable. Our newest champion recognised their work/life balance had changed due to semi-retirement. Having attended several of our training courses, they wanted to encourage other members to look more closely at what we were able to offer. One of our champions used to promote CABA unofficially as an ICAEW council member & Deputy President of one of the district societies. They saw the value in having a more formal relationship, so they approached us for an interview. We’ve also been approached by a newly qualified member who used our services whilst studying for the ACA qualification and now wants to become a champion to support others on the same journey.

We had 24 champions at the start of 2020, 21 in the UK and 3 in Sydney, Australia. We have since recruited 5 more champions; a new champion in the South West of England and 4 overseas, in Melbourne, Hong Kong, UAE and Pakistan. With 3 UK champions resigning this year due to personal reasons, we now have 26 CABA champions: 19 based in the UK and 7 internationally. We are actively recruiting for the role in the UK, in partnership with the regional teams at ICAEW and are interviewing in early 2021. We will also continue to recruit new champions across Europe, focusing on Cyprus and Greece first.

Even during the pandemic, our champions continued to help us reach various audiences on a variety of channels including online events, webinars, social media and ICAEW networks. The intelligence we obtain through our relationship building activity with our champions is invaluable in our strategic work as well as the operational delivery of our global engagement programme. The development of a CABA champion’s toolkit in 2021 will enable our CABA champions in the UK and abroad to better engage with our audience on our behalf and help raise awareness and increase uptake of our services.

CABA members

CABA Members are an essential link to the chartered accountant community. They help us spread the word about the support and information available to ICAEW members and their families. You do not need to be a CABA Member to be eligible for our support and services but as a CABA Member you will be eligible to:

  1. Attend and vote at the AGM

  2. Receive a copy of the charity's financial statements and our Trustees report.

To find out how to apply to become a CABA Member, email us at caba.members@caba.org.uk

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PRINCIPAL ADVISORS

Investments

Stanhope Consulting 35 Portman Square London W1H 6LR

Bankers

Royal Bank of Scotland 62/63 Threadneedle Street London EC2R 8LA

Solicitors

Bates Wells & Braithwaite 10 Queen Street Place London EC4R 1BE

Rollasons Solicitors 9 New Street Daventry Northamptonshire NN11 4BT

Auditors

Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG

HR Advisors

Cream HR Ltd 17 Lichfield Business Village The Friary Lichfield Staffordshire WS13 6QG

26

TRUSTEES’ RESPONSIBILITIES STATEMENT

The Trustees (who are also directors of Chartered Accountants' Benevolent Association 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. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) including FRS102 The Financial Reporting Standard applicable in UK and Republic of Ireland. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and 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 for the prevention and detection of fraud and other irregularities.

The Trustees confirm that:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Trustees have taken the exemption available to small companies and have not prepared a strategic report.

Approved by the Board on 7 April and signed on its behalf by:-

Kaaeed Mamujee President

27

Independent auditor’s report to the members of Chartered Accountants’ Benevolent Association

Opinion

We have audited the financial statements of Chartered Accountants’ Benevolent Association for the year ended 31 December 2020 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the 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:

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 group 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.

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 group'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 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.

28

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees (which incorporates the directors’ report).

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 trustees’ responsibilities statement set out on page 26, 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 group’s and the parent 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 group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

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.

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 group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to charity and company law applicable in England and Wales , and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have

29

a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Charities Act 2011.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Audit procedures performed by the engagement team included:

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.

Steven Harper (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditors

10 Queen Street London EC4R 1AG

12 May 2021

30

Financial statements

Consolidated statement of financial activities (including income and expenditure account) for the year ended 31 December 2020

Notes
Income from:
Donations and legacies
5
Investments
6
Charitable activities
7
Total
Expenditure on:
Charitable activities
8
Raising funds
9(a)
Other
9(b)
Total
Net gains / (losses) on investments
14 (e)
Other (losses) / gains
19
Net income
Net gains on revaluation and disposal of
fixed assets
19
Net movement in funds
Reconciliation of funds
Funds brought forward
22
18 / 19
Total funds carried forward
Net expenditure before gains / (losses) on
investments		 Unrestricted
funds
Endowment
funds
Restricted
funds
Total 2020
Total 2019
£000
£000
£000
£000
£000
1,315
-
-
1,315
187
3,413
-
1
3,414
3,932
15
-
-
15
17
4,743
-
1
4,744
4,136
6,389
-
-
6,389
7,521
236
-
-
236
239
11
-
-
11
36
6,636
-
-
6,636
7,796
(1,893)
-
1
(1,892)
(3,660)
3,015
0
0
3,015
15,475
754
-
-
754
(104)
1,876
0
1
1,877
11,711
(416)
-
-
(416)
-
1,460
0
1
1,461
11,711
131,180
263
56
131,499
119,788
132,640
263
57
132,960
131,499

The statement of financial activities includes all gains and losses recognised in the year. In 2020 £11k of net expenditure related to discontinued activities (2018 £36k).

31

Financial statements

Consolidated and Charity balance sheet as at 31 December 2020

Company number 5970606

Notes
Fixed assets
Tangible fixed assets
13
Investments
14
Investment properties
14
Programme related investments
14(d)
Total fixed assets
Current assets
Debtors falling due within one year
15(a)
Property held for sale
15(b)
Cash and cash equivalents
15(c)
Less - Creditors falling due within one year
16
Net current assets
Total assets less current liabilities
17
Net assets
18
Funds
Unrestricted funds - General fund
19
Unrestricted funds - Revaluation reserve
19
Endowment funds
20
Restricted funds
20
Total funds
Provision for care home fees		 2020
2019
£000
£000
1,568
1,317
124,726
123,929
21
21
190
190
126,505
125,457
1,801
978
1,355
550
4,107
5,550
7,263
7,078
804
1,025
6,459
6,053
132,964
131,510
4
11
132,960
131,499
105,063
105,091
27,577
26,089
263
263
57
56
132,960
131,499
Group		 2020
2019
£000
£000
1,568
1,317
125,275
124,479
21
21
190
190
127,054
126,007
1,801
978
1,355
-
3,550
5,549
6,706
6,527
796
1,026
5,910
5,501
132,964
131,508
4
11
132,960
131,497
105,063
105,329
27,577
25,849
263
263
57
56
132,960
131,497
Charity

The net movement in funds of the unconsolidated Charity amounted to a increase of £1,465k (2019 - increase of £11,709k).

Approved by the board on 7 April 2021 and signed on its behalf by

Kaaeed Mamujee President

Mary Hardy Chair of Audit and Risk Committee

32

Financial statements

Statement of cash flows for the year to 31 December 2020

Notes
Cash flows from operating activities
Cash flows from investing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the period
Change in cash and cash equivalents due to non cash movements
Cash and cash equivalents at the end of the reporting period
15(c)
Statement of cash flows for the year to 31 December 2020		 2020
2019
£000
£000
(5,535)
(7,713)
4,091
5,541
(1,443)
(2,172)
5,550
7,726
(1)
(4)
4,107
5,550
Group

Reconciliation of cash flows
(a) Reconciliation of cash flows from operating activities
Adjustments for:
Depreciation charges
Losses / (gains) on investments
Other unrealised (gains) / losses
Transfer of fixed assets to current assets
Dividends, interest and rents from investments
Decrease / (increase) in programme related investment
Decrease in debtors
Decrease in property held for Sale
(Decrease) / increase in creditors
Decrease in provision
Net movement in funds for the reporting period as per the statement of financial activities
Reconciliation of cash flows		 2020
2019
£000
£000
1,461
11,711
93
69
(3,015)
(15,475)
3
104
1,195
(3,414)
(3,932)
(0)
15
(823)
(192)
(805)
-
(221)
10
(7)
(23)
Group
Net cash used in operating activities
(b) Reconciliation of cash flows from investing activities
Dividends, interest and rents from investments
Purchase of tangible fixed assets
Disposals of fixed assets
Proceeds of sale from investment
Purchase of investments		 (5,535)
(7,713)
3,414
3,932
(1,539)
(51)
(1)
-
2,552
5,636
(334)
(3,976)
Net cash provided by investing activities
(c) Reconciliation of net debt
Cash
Cash equivalents
Overdraft facility repayable on demand
Loans falling due within one year
Loans falling due after more than one year
Finance lease obligations		 At start of
year
Cash flows
Foreign
exchange
movements
£000
£000
£000
985
1,057
3
4,565
(2,500)
-
-
-
-
-
-
-
-
-
-
-
-
-		 4,091
5,541
Gains /
(losses)
At end of
year
£000
£000
-
2,045
(3)
2,062
-
-
-
-
-
-
-
-
Total 5,550
(1,443)
3		 (3)
4,107

33

Financial statements

1. General information

The Chartered Accountants' Benevolent Association ("the Charity") and its subsidiaries (together "the Group") exist to provide support to the chartered accountant community. The Charity, founded in 1886 was incorporated in England and Wales in 2006 (Company no. 5970606) and is limited by guarantee.

Registered office (Charity and subsidiaries): to 22/10/2020 Registered office (Charity and subsidiaries): from 22/10/2020
8 Mitchell Court, Merrett House
Castle Mound Way, Swift Park
Rugby, Warwickshire, Old Leicester Road,
CV23 0UY. Rugby, Warwickshire,
CV21 1DZ

2. Statement of compliance

These financial statements have been prepared for the year ended 31 December 2020 and present information about the Charity and its subsidiary undertakings. The Charity has not shown its own statement of financial activities as advantage has been taken of Section 408 of the Companies Act 2006.

The financial statements have been prepared in accordance with the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

3. Summary of significant accounting policies

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. (a) Basis of preparation

The consolidated financial statements are prepared on a going concern basis under the historical cost convention as modified by the recognition of certain financial assets and liabilities measured at fair value. Assets and liabilities are initially recognised at historical cost or transactional value unless otherwise stated in the relevant accounting policy notes.

(b) Going concern The Trustees have considered the Group's ability to continue as a going concern. As a part of this assessment the Trustees have reviewed and approved budgets and cash flows and as such the financial statements have been prepared on the going concern basis. (c) Public benefit The Charity meets the definition of a public benefit entity under FRS 102. (d) Basis of consolidation The Group financial statements consolidate the results of the Charity and its subsidiaries CABA Housing Limited and CABA Trustees Limited on a line-by-line basis. All intra-Group transactions, balances, income and expenses are eliminated on consolidation. (e) Foreign currency (i) Functional and presentational currency The Group's functional and presentational currency is the pound sterling. All figures are rounded to the nearest £000 (unless otherwise stated). (ii) Transactions and balances Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non monetary items measured at historical cost are translated using the exchange rate at the date of transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of financial activities.

(f) Revenue recognition

Income is recognised when the Group has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

(i) Legacies are applied for the general use of the Charity unless directed otherwise. Receipt of a legacy is recognised when it is probable that it will be received. Receipt is normally probable when : there has been grant of probate; the executors have established that there are sufficient assets in the estate, after settling any liabilities, to pay the legacy; and that any conditions attached to the legacy are either within the control of the Charity or have been met. (ii) Interest on funds held on deposit is included when receivable, this is normally upon notification of the interest paid or payable by the Bank.

(iii) Dividend investment income is recognised when the underlying investment is marked ex-dividend. Interest on fixed interest investments and deposits is accounted for on an accruals basis.

(iv) Gift Aid recoverable is accounted for in the same period as the related income is received.

34

Financial statements

(g) Expenditure and basis of cost allocation

(i) Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Group to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. (ii) All expenditure is accounted for on an accruals basis. (iii) Grants and donations payable are payments made (all to individuals) in the furtherance of the charitable objectives of the Charity. Grants and donations are recognised as expenditure at the point at which they are approved by the Charity and communicated to the recipient and where any conditions attached to the grant are outside of the control of the Charity. (iv) Where possible, costs are directly attributed to specific activities. Certain shared costs, including staff costs, are apportioned to activities on the basis of individual duties and responsibilities. Office costs, including rent, rates and services, are apportioned to support activities based on time spent by each member of staff on that activity. (v) Irrecoverable VAT is charged against the category for which it was incurred.

(h) Defined contribution pension scheme

The Group's personal pension scheme is a defined contribution scheme. Contributions are shown in the statement of financial activities as incurred.

(i) Tangible assets Tangible assets are stated either at cost less accumulated depreciation and accumulated impairment losses or at fair value. Cost includes the original purchase price and the costs directly attributable to bringing the asset to its working condition for its intended use. Repairs, maintenance and inspection costs are expensed as incurred. The Group, using both internal and external information, assesses at each reporting date whether there is any indication that an asset might be impaired. Any impairment is recognised in the statement of financial activities. (i) Furniture and equipment All assets costing more than £1,000 are capitalised and valued at historical cost. Depreciation is charged over their useful economic life of three years from acquisition using the straight line method. (ii) Freehold offices Land and buildings are held at fair value. The Group's policy is to independently revalue properties in this class at no longer than three year intervals. The cost of the office building at Rugby, excluding the cost of the land, is depreciated over a fifty year period. (iii) Depreciation and residual values Land is not depreciated. Depreciation on other assets is calculated using the straight line method to allocate their residual values over their estimated useful lives. (j) Financial instruments The Group has chosen to adopt sections 11 and 12 of FRS 102 in respect of financial instruments . (i) Financial assets Basic financial assets including trade and other receivables, cash and bank balances and short term investments are initially recognised at transaction price. Cash at bank and in hand, consist of balances with banks and cash in hand. Current asset investments are investments in money market instruments representing short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash. Other basic financial assets, including investments are initially measured at transaction price and subsequently measured at fair value. Changes in fair value are recognised in the statement of financial activities. (ii) Financial liabilities Basic financial liabilities including trade and other payables are initially measured at transaction price and subsequently at fair value.

(k) Investments

(i) Listed investments are stated at the bid price at the date of the balance sheet. Fixed interest securities are stated at their dirty price (which includes any interest that has accrued since issue of the most recent coupon payment). Unquoted securities are included at fair value estimated by the Trustees based on advice from the investment manager. Pooled investment vehicles are stated at bid price for funds with bid/offer spreads, or single price where there are no bid/offer spreads as provided by the investment manager. The Group's policy is not to acquire put options, derivatives or other complex financial instruments. (ii) Investment properties Investment properties are initially recognised at cost and measured at fair value at the balance sheet date. (iii) Programme related investments Programme related investments consist entirely of interest free concessionary loans made by the Charity to beneficiaries and are held at fair value. Concessionary loans are assessed for objective evidence of impairment at the end of the reporting period. Any impairment is disclosed within the statement of financial activities as charitable activities. (iv) Investment in subsidiary company Investment in subsidiaries are held at cost less accumulated impairment losses. The Charity has undertaken to provide monies for the payment of annuities and other relevant disbursements by way of a loan to its subsidiary CABA Housing Limited. These monies are repayable from the proceeds of sale of properties on termination of the relevant annuity. The loan interest is charged by the Charity to the Subsidiary at 5% of the outstanding balance as at 31 December 2019. For the year ending 31 December 2020 loan interest of £97k was charged (2019 - £123k).

(l) Unrestricted, restricted and endowment funds

Unrestricted general funds can be used in accordance with the charitable objects at the discretion of the Board. Restricted funds can only be used for particular restricted purposes within the objects of the Charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Endowment funds are classified as permanent endowments and the capital of these funds is held in perpetuity.

Further explanation of the nature and purpose of each fund is included in the notes to the Financial Statements (note 20).

(m) Provisions

Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the economic outflow can be estimated reliably.

35

Financial statements

4. Critical accounting judgements and estimations

Judgements and estimations are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

In making these estimates the Group makes assumptions concerning the future. Significant judgements are addressed below.

During 2016 Trustees approved a policy of providing top up fees for qualifying individuals residing in care homes. It is recognised that in some cases this could lead to long term support and it is highly unlikely that the Charity would withdraw support once approved. Following research carried out by the Charity it was discovered that the average length of stay in a care home is 3 years. A commitment for this 3 year period has therefore been recognised in the financial statements for this long term support based on the number of individuals receiving top up fees at the balance sheet date. The long term portion of this commitment has not been discounted on the grounds that the effect of discounting would be immaterial.

36

Financial statements

5. Income from donations and legacies

----- Start of picture text -----
Total Total
2020 2019
£000 £000
Donations and subscriptions 296 154
Legacies 1,019 33
1,315 187
----- End of picture text -----

The Charity benefits greatly from the involvement and enthusiastic support of its many volunteers, details of which are given in our annual report. In accordance with the Charities SORP (FRS 102), the economic contribution of general volunteers is not recognised in the financial statements.

6. Income from investments

Dividends and interest on investments
Other interest
Other investment income
Dividends and interest on investments
Other interest
Net property income
ome from charitable activities
Programme related investments
Other income		 Unrestricted
funds 2020
Unrestricted
funds 2019
£000
£000
3,391
3,881
20
47
2
2
3,413
3,930
Restricted
funds 2020
Restricted
funds 2019
£000
£000
1
2
-
-
-
-
1
2
Unrestricted
funds 2020
Unrestricted
funds 2019
£000
£000
15
17
-
-
15
17

7. Income from charitable activities

8. Analysis of charitable expenditure

(a) Expenditure on charitable activities

Client support interactions
Learning and development
Outreach
Advice led support
Total expenditure on charitable activities		 Direct aid
2020
Support costs
2020
Total
2020
£000
£000
£000
2,742
972
3,714
464
624
1,088
135
371
506
471
610
1,081
3,812
2,577
6,389		 Direct aid
2019
Support
costs 2019
Total
2019
£000
£000
£000
3,258
895
4,153
854
600
1,454
230
626
856
393
666
1,060
4,736
2,787
7,523

37

Financial statements

(b) Analysis of expenditure on direct aid by activity

Costs are allocated specifically where appropriate and practical. Shared costs are allocated on the basis of time spent against each activity. Other staff costs include agency costs, recruitment costs, travel and staff training.

2020
Counselling and emotional services
Financial assistance
Career coaching
Legal helpline
Personal and professional coaching
24 hour emotional support and advice helpline
Website and video
Other support advice and guidance
Training courses
Workshops and seminars
Human resources
Other staff costs
Total expenditure on direct aid		 Client
support
interactions
Learning and
development
Outreach
Advice led
support
Total
£000
£000
£000
£000
£000
120
-
-
-
120
1,581
-
-
-
1,581
176
-
-
-
176
32
-
-
-
32
156
-
-
-
156
100
-
-
-
100
-
35
-
75
110
86
-
(10)
228
304
-
85
-
-
85
-
29
-
-
29
487
312
143
166
1,108
4
3
2
2
11
2,742
464
135
471
3,812
2019
Counselling and emotional services
Financial assistance
Career coaching
Legal helpline
Personal and professional coaching
24 hour emotional support and advice helpline
Website and video
Other support advice and guidance
Training courses
Workshops and seminars
Human resources
Other staff costs
Total expenditure on direct aid		 Client
support
interactions
Learning and
development
Outreach
Advice led
support
Total
£000
£000
£000
£000
£000
324
-
-
-
324
1,432
-
-
-
1,432
608
-
-
-
608
30
-
-
-
30
11
-
-
-
11
108
-
-
-
108
52
12
-
61
125
250
-
100
181
531
-
343
-
-
343
-
215
-
-
215
426
273
125
145
969
17
11
5
6
39
3,258
854
230
393
4,735

(c) Analysis of support costs

Costs are allocated specifically where appropriate and practical. Shared costs are allocated on the basis of time spent against each activity as a proportion of direct aid. Other staff costs include agency costs, recruitment costs, travel and staff training.

2020
Human resources
Other staff costs
Communications and outreach
Office costs
Audit fees
Legal and professional fees
Research and development
Depreciation
Total expenditure on support costs		 Client
support
interactions
Learning and
development
Outreach
Advice led
support
Total
£000
£000
£000
£000
£000
517
332
197
324
1,370
110
71
42
69
292
130
83
50
82
345
154
99
59
97
409
7
4
3
4
18
19
12
7
12
50
-
-
-
-
-
35
23
13
22
93
972
624
371
610
2,577
2019
Human resources
Other staff costs
Communications and outreach
Office costs
Audit fees
Legal and professional fees
Research and development
Depreciation
Total expenditure on support costs		 Client
support
interactions
Learning and
development
Outreach
Advice led
support
Total
£000
£000
£000
£000
£000
406
271
284
302
1,263
127
85
89
95
396
197
132
138
146
613
111
74
77
82
344
5
4
3
4
16
19
13
13
14
59
8
6
6
6
26
22
15
16
16
69
895
600
626
666
2,786

38

Financial statements

9. Analysis of expenditure on raising funds and other expenditure

----- Start of picture text -----
Total Total
(a) Expenditure on raising funds 2020 2019
£000 £000
Investment and advisory fees for fund management 218 228
Employment costs 18 11
236 239
Costs of raising funds relates to the cost of generating investment income.
Total Total
(b) Other expenditure (discontinued operations) 2020 2019
£000 £000
CABA Housing Limited - property repairs and refurbishment 8 33
Annuity payment - -
CABA Housing Limited - Audit fees 3 3
11 36
.
----- End of picture text -----

(a) Expenditure on raising funds

(b) Other expenditure (discontinued operations)

10. Net income

These are stated after charging

Depreciation
Auditor's remuneration: - Audit services (shown net of VAT)
Auditor's remuneration: - Tax services (shown net of VAT)
taff costs and numbers
Wages and salaries
Employer's NIC
Employer's pension contributions
Other payroll related benefits
Total staff costs
Staff costs allocated to direct aid
Staff costs allocated to raising funds
Staff costs charged to support
Total staff costs		 Total
2020
Total
2019
£000
£000
93
69
17
16
2
2
Total
2020
Total
2019
£000
£000
1,971
1,790
204
188
196
148
125
117
2,496
2,243
1,108
969
18
11
1,370
1,263
2,496
2,243

11. Staff costs and numbers

Staff costs include £46k relating to termination payments (2019 - £24k).

The average number of employees during the year was 55.83; FTE 53.45 (2019 - 52; FTE 50.18). The allocation of average number of employees between direct aid and support is shown below

Full time
Part time		 2020
Direct Aid
Support
Total
22.1
23.8
45.9
4.8
5.1
9.9
26.9
28.9
55.8		 2019
Direct Aid
Support
Total
21.2
25.0
46.2
3.8
2.0
5.8
25.0
27.0
52.0

Key management personnel

The Group considers that its key management personnel comprise the Chief Executive and the Senior management team consisting of the Services Director and Engagement and Communications Director.

The total employment benefits including employer pension contributions of the key management personnel were £366k (2019 - £376k).

Total employee benefits No. of employees No. of employees
2020 2019
£60k - £70k 1 -
£70k - £80k 2 2
£100k - £110k - 1

Group personal pension scheme

Staff are eligible to participate in the Group personal pension scheme with Aegon Scottish Equitable.

The Charity operates a group personal pension scheme for employees. This scheme is managed by Aegon Scottish Equitable and provides benefits based upon contributions made and investment returns achieved. The scheme first received contributions in May 2008. The assets of the scheme are held in a separate trustee administered fund. The employees themselves contribute a minimum of 3%. The Charity contributes twice that of the employee up to a maximum of 10% of pensionable earnings for participating employees. The amount charged to the statement of financial activities during the year in respect of the group personal pension scheme was £196k (2019 - £148k). 60 employees contributed to the pension scheme during the year (2019 - 61 employees).

12. Trustee remuneration and related party transactions

None of the trustees received any remuneration during the year (2019 - nil). Expenses were reimbursed or paid on behalf of 7 trustees (2019 - 11) for travel, accommodation and subsistence, totalling £1k (2019 - £7k).

Heather Lamont (former Trustee and chair of the Charity's investment committee, resigned 19/08/2020) is also a Director, Client Investments of CCLA. At the balance sheet date the value of the Charity's investment in the CCLA COIF Charities Investment Fund was £56.2m. No fees were paid directly to CCLA.

No persons or entities that are closely connected to the Charity had any personal interest in any contract or transaction entered into by the Charity in the period.

39

Financial statements

13. Tangible fixed assets - Group and Charity

Cost or valuation at 1 January 2020
Gain on revaluation
Acquisitions in the year
Disposals in the year
Transfer to current assets
At 31 December 2019
Accumulated depreciation at 1 January 2020
Charge in year
Disposals in year
Transfer to current assets
At 31 December 2020
Net book value at 31 December 2020
Net book value at 31 December 2019		 Freehold
offices
Furniture &
equipment
Total
£000
£000
£000
1,250
341
1,619
-
-
-
1,463
76
1,539
-
(1)
(1)
(1,250)
-
(1,250)
1,463
416
1,879
36
238
274
28
65
93
-
(1)
(1)
(55)
-
(55)
9
302
311
1,454
114
1,568
1,232
103
1,335

During 2020 the Charity purchased and relocated to a new office building Merrett House. The 2 office buildings at Mitchell Court were marketed for sale and have therefore been transfered to current assets - property held for sale. See note 15 (b) for further details.

40

Financial statements

14. Investments - Group

Unrestricted
Endowment
Restricted
Fair value at 1 January 2019
Additions at cost
Disposals at fair value
Net investment (losses) / gains
Unrestricted funds
Endowment / restricted funds
Unrestricted
Endowment
Restricted
Fair value at 31 December 2020
Cost at 31 December 2020
Cost at 31 December 2019		 Investment
funds
Investment
properties
Total
£000
£000
£000
123,656
21
123,677
251
-
251
22
-
22
123,929
21
123,950
334
-
334
(2,552)
-
(2,552)
(2,218)
-
(2,218)
3,015
-
3,015
0
-
0
3,015
-
3,015
124,453
21
124,475
251
-
251
22
-
22
124,726
21
124,748
97,276
2
97,278
98,412
2
98,414

(a) Investments - Charity

Unrestricted
Endowment
Restricted
Fair value at 1 January 2020
Additions at cost
Disposals at fair value
Net investment (losses) / gains
Unrestricted funds
Endowment / restricted funds
Unrestricted
Endowment
Restricted
Fair value at 31 December 2020
Cost at 31 December 2020
Cost at 31 December 2019		 CABA
Housing
Limited
Investment
funds
Investment
properties
Total
£000
£000
£000
£000
550
123,656
21
124,227
-
251
-
251
-
22
-
22
550
123,929
21
124,500
109
334
-
443
-
(2,552)
-
(2,552)
109
(2,218)
-
(2,109)
(110)
3,015
-
2,905
-
0
-
0
(110)
3,015
-
2,905
549
124,453
21
125,023
-
251
-
251
-
22
-
22
549
124,726
21
125,296
2,718
97,276
2
99,996
2,616
98,412
2
101,030

(b) Investments - CABA Housing Limited (Company no. 01863595)

The Charity owns 100% of its subsidiary CABA Trustees Limited which owns 100% of the ordinary share capital of CABA Housing Limited. The Charity guarantees the obligations of CABA Housing Limited, whose assets consist of one residential property, which was acquired in 1989 in exchange for the provision of an annuity. During 2020 the property was sold and CABA Housing ceased to trade. CABA Housing will be formally wound up during 2021. All assets and liabilities are shown as current.

CABA Housing Limited 2020 2019
£000 £000
Fixed assets - -
Net current (liabilities) 0 (2,063)
Non current liabilities - -
Turnover 2,166 -
Expenditure 109 160
Impairment of asset - 100
Loss for year (2,057) 260

CABA Trustees Limited (Company no. 01600366) was dormant at 31 December 2020 and 31 December 2019.

41

Financial statements

(c) Investments - Investment properties - Group and Charity

The investment properties represent:

3 acres of land valued at £20k, which is let to Bracknell Forest Borough Council for use as allotments.

60 acres of land to be utilised as a country park for the benefit of the community is leased to Bracknell Forest Borough Council at no cost and has been valued nominally at £1k.

(See note 13 - Tangible fixed assets)

(d) Investments - Programme related investments - Group and Charity

----- Start of picture text -----
2020 2019
Loans to Loans to
beneficiaries beneficiaries
£000 £000
Loan book fair value at 1 January 190 205
Loans issued 20 27
Loans written off (3) (7)
Loans repaid (17) (32)
Fair value adjustment - (3)
Loan book fair value at 31 December 190 190
----- End of picture text -----

Programme related investments consist entirely of interest free concessionary loans secured by charges made by the Charity to beneficiaries. During the year the Charity made loans of £20k to 2 individuals (2019 - £27k to 3 individuals) and received repayments of £17k (2019 - £32k). The loans are assessed annually for objective indicators of impairment and are held at fair value. An impairment of £3k was made this year (2019 - £7k).

(e) Investments - Gains - Group and Charity

Unrealised
Realised		 Unrestricted
funds
Endowment /
restricted
funds
Total
£000
£000
£000
2,348
0
2,348
667
-
667
3,015
0
3,015
Group
2020		 Unrestricted
funds
Endowment /
restricted
funds
Total
£000
£000
£000
2,348
0
2,348
557
-
557
2,905
0
2,905
Charity
2020

15. Current assets

(a) Debtors

Accrued income
Prepayments
Other debtors		 2020
2019
£000
£000
1,638
668
144
129
19
181
1,801
978
Group		 2020
2019
£000
£000
1,638
668
144
129
19
181
1,801
978
Charity

(b) Property held for sale

During 2020 the Charity moved from the 2 office buildings at Mitchell Court to our new office Merrett House. Both Mitchell Court properties were marketed for sale and an agreement for the sale of Unit 6 was reached prior to the balance sheet date. Both units are held at fair value. See note 14 (b) for further details.

Unit 6 Mitchell Court
Unit 8 Mitchell Court
Durbridge House
ash and cash equivalents
Cash at bank
Short term investments
reditors falling due within one year
Trade creditors
Other creditors
Social security
Committed grants and donations
Accruals
Committed grants and donations - Group and Charity
Grant and donations commitments charged to the SOFA in the ye
Grants paid during the year
Amount of grant commitments recognised at 31 December		 2020
2019
£000
£000
380
-
975
-
-
550
1,355
550
2020
2019
£000
£000
2,045
985
2,062
4,565
4,107
5,550
2020
2019
£000
£000
57
142
2
21
49
53
372
418
324
391
804
1,025
ar (note 8)
Group
Group
Group		 2020
2019
£000
£000
380
-
975
-
-
-
1,355
-
2020
2019
£000
£000
1,488
984
2,062
4,565
3,550
5,549
2020
2019
£000
£000
57
142
2
21
49
53
372
418
316
392
796
1,026
2020
2019
£000
£000
1,581
1,432
(1,209)
(1,014)
372
418
Charity
Charity
Charity

(c) Cash and cash equivalents

16. Creditors falling due within one year

42

Financial statements

17. Provision for liability - Group and Charity

----- Start of picture text -----
2020 2019
£000 £000
Provision for care home top up fees 4 11
----- End of picture text -----

A Provision has been recognised for the Charity's commitment to pay for care home top up fees as it is highly unlikely that the Charity would withdraw support once approved. Following research carried out by the Charity it was discovered that the average length of stay in a care home is 3 years. A commitment for this 3 year period has therefore been recognised in the financial statements for this long term support based on the number of individuals receiving top up fees and agreed level of funding at the balance sheet date. At the balance sheet date the Charity was supporting 1 individual with care home top up fees (2019 2 individuals).

18. Analysis of net assets between funds - Group - Current year

Prior year comparatives are provided in note 22
Tangible fixed assets
Investments
Investment property
Programme related investments
Cash and cash equivalents
Property held for sale
Other net assets		 Unrestricted
funds general
fund
Unrestricted
funds
revaluation
reserve
Endowment
funds
Restricted
funds
Total
£000
£000
£000
£000
£000
1,568
-
-
-
1,568
97,062
27,391
251
22
124,726
2
19
-
-
21
190
-
-
-
190
4,053
7
12
35
4,107
1,195
160
-
-
1,355
993
-
-
-
993
105,063
27,577
263
57
132,960

(a) Analysis of net assets between funds - Charity

Tangible fixed assets
Investments
Investment property
Programme related investments
Cash and cash equivalents
Property held for sale
Other net assets
19. Unrestricted funds - Group - Current year
Prior year comparatives are provided in note 22
At 1 January 2020
Decrease in resources
Realised
Unrealised
Other gains / (losses)
Realised
Unrealised
Fixed asset gains / (losses)
Realised
Unrealised
At 31 December 2020
(a) Unrestricted funds - Charity
At 1 January 2020
Decrease in resources
Realised
Unrealised
Other gains / (losses)
Realised
Unrealised
Fixed asset gains / (losses)
Realised
Unrealised
At 31 December 2020
Investment gains / (losses)
Investment gains / (losses)		 Unrestricted
funds general
fund
Unrestricted
funds
revaluation
reserve
Endowment
funds
Restricted
funds
Total
£000
£000
£000
£000
£000
1,568
-
-
-
1,568
97,611
27,391
251
22
125,275
2
19
-
-
21
190
-
-
-
190
3,496
7
12
35
3,550
1,195
160
-
-
1,355
1,001
-
-
-
1,001
105,063
27,577
263
57
132,960
General fund
Revaluation
reserve
Total
£000
£000
£000
105,091
26,089
131,180
(1,893)
-
(1,893)
103,198
26,089
129,287
1,798
(1,131)
667
-
2,348
2,348
1,798
1,217
3,015
122
114
235
-
519
519
122
633
754
-
-
-
(55)
(361)
(416)
(55)
(361)
(416)
105,063
27,577
132,640
General fund
Revaluation
reserve
Total
£000
£000
£000
105,329
25,849
131,178
(1,784)
-
(1,784)
103,545
25,849
129,394
1,574
(1,017)
557
-
2,348
2,348
1,574
1,332
2,905
(1)
(1)
(2)
-
759
759
(1)
758
757
-
-
-
(55)
(361)
(416)
(55)
(361)
(416)
105,063
27,577
132,640

43

Financial statements

20. Endowment and restricted funds - Group and Charity - Current year

Endowment funds are classified as permanent and the capital of these funds is held in perpetuity.

Except as shown in note 20 (b) all income is unrestricted.

The Special Fund - Created in 1887 to assist former long serving unqualified employees of Chartered Accountants and their dependants. The Caspar and Sidney Van de Linde Memorial Fund - Created in 1908 to contribute to administration expenses. W. B. Peat Memorial Scholarship Fund - Created in 1936 to assist with the education of children of beneficiaries.

Prior year comparatives are provided in note 22

(a) Endowment funds - Group and Charity

The Caspar and Sidney Van de Linde Memorial fund
The W.B. Peat Memorial Scholarship fund		 Realised
Unrealised
£000
£000
£000
£000
228
-
0
228
35
-
(0)
35
263
-
0
263
At 1 January
2020
Investment gains / (losses)
At 31
December
2020

(b) Restricted funds - Group and Charity

The Special fund
The W.B. Peat Memorial Scholarship fund		 At 1 January
2020
Income
Expenditure
Realised
Unrealised
At 31
December
2020
£000
£000
£000
£000
£000
54
0
-
-
0
54
2
1
-
-
-
3
56
1
-
-
0
57
Investment gains / (losses)

Income is restricted and is applied in accordance with the respective terms of the trust indicated.

21. Financial commitments

The Charity has committed to invest £4,064k in the Ardian AXA Secondary Fund VI in unspecified instalments. At 31 December 2020 £692k remained un-called. Under the terms of the agreement the Charity could be required to settle the outstanding liability in full during 2020.

44

Financial statements

22. Prior year comparative statements

(a) Prior year Statement of Financial Activities

Notes
Income from:
Donations and legacies
5
Investments
6
Charitable activities
7
Total
Expenditure on:
Charitable activities
8
Raising funds
9(a)
Other
9(b)
Total
Net gains / (losses) on investments
14 (e)
Other (losses) / gains
19
Net income
Net gains on revaluation and disposal of fixed
assets
19
Net movement in funds
Reconciliation of funds
Funds brought forward
22
18 / 19
(b) Prior year analysis of net assets between funds - Group
Tangible fixed assets
Investments
Investment property
Programme related investments
Cash and cash equivalents
Property held for sale
Other net liabilities
Total funds carried forward
Net expenditure before gains / (losses) on investments		 Unrestricted
funds
Endowment
funds
Restricted
funds
Total 2019
£000
£000
£000
£000
187
-
-
187
3,930
-
2
3,932
17
-
-
17
4,134
-
2
4,136
7,521
-
-
7,521
239
-
-
239
36
-
-
36
7,796
-
-
7,796
(3,662)
-
2
(3,660)
15,437
35
3
15,475
(104)
-
-
(104)
11,671
35
5
11,711
-
-
-
-
11,671
35
5
11,711
119,509
228
51
119,788
131,180
263
56
131,499
Unrestricted
funds general
fund
Unrestricted
funds
revaluation
reserve
Endowment
funds
Restricted
funds
Total
£000
£000
£000
£000
£000
956
361
-
-
1,317
98,198
25,458
251
22
123,929
2
19
-
-
21
190
-
-
-
190
5,493
11
12
34
5,550
310
240
-
-
550
(58)
-
-
-
(58)
105,091
26,089
263
56
131,499

(c) Prior year analysis of net assets between funds - Charity

Tangible fixed assets
Investments
Investment property
Programme related investments
Cash and cash equivalents
Other net liabilities		 Unrestricted
funds general
fund
Unrestricted
funds
revaluation
reserve
Endowment
funds
Restricted
funds
Total
£000
£000
£000
£000
£000
956
361
-
-
1,317
98,748
25,458
251
22
124,479
2
19
-
-
21
190
-
-
-
190
5,492
11
12
34
5,549
(59)
-
-
-
(59)
105,329
25,849
263
56
131,497

(d) Prior year unrestricted funds - Group

At 1 January 2019
Decrease in resources
Realised
Unrealised
Other gains / (losses)
Realised
Fixed asset gains / (losses)
Realised
Unrealised
At 31 December 2019
Investment gains / (losses)		 General fund
Revaluation
reserve
Total
£000
£000
£000
107,854
11,655
119,509
(3,662)
-
(3,662)
104,192
11,655
115,847
914
(845)
69
-
15,368
15,368
914
14,523
15,437
(15)
(2)
(17)
-
(87)
(87)
(15)
(89)
(104)
-
-
-
-
-
-
105,091
26,089
131,180

45

Financial statements

(e) Prior year unrestricted funds - Charity

----- Start of picture text -----
Revaluation
General fund reserve Total
£000 £000 £000
At 1 January 2019 108,194 11,315 119,509
Decrease in resources (3,540) - (3,540)
104,654 11,315 115,969
Investment gains / (losses)
Realised 690 (845) (155)
Unrealised - 15,368 15,368
690 14,523 15,213
Other gains / (losses)
Realised (15) (2) (17)
Unrealised - 13 13
(15) 11 (4)
Fixed asset gains / (losses)
Realised - - -
Unrealised - - -
- - -
At 31 December 2019 105,329 25,849 131,178
----- End of picture text -----

(f) Prior year endowment funds - Group and Charity

The Caspar and Sidney Van de Linde Memorial fund
The W.B. Peat Memorial Scholarship fund		 Realised
Unrealised
£000
£000
£000
£000
198
-
30
228
30
-
5
35
228
-
35
263
At 31
December
2019
At 1 January
2019
Investment gains / (losses)

(g) Prior year restricted funds - Group and Charity

The Special fund
The W.B. Peat Memorial Scholarship fund		 At 1 January
2019
Income
Expenditure
Realised
Unrealised
At 31
December
2019
£000
£000
£000
£000
£000
50
1
-
-
3
54
1
1
-
-
-
2
51
2
-
-
3
56
Investment gains / (losses)

46