OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-12-31-accounts

report of the trustees and financial statements for the year ended 2021

president’s foreword

I’m pleased to present caba’s 2021 trustee report. 2021 proved another year of change for many – COVID-19 continued to present both personal and professional challenges and Brexit affected many businesses. At a time of global uncertainty charities like ours represent a trusted authority people can turn to in times of concern or crisis.

The board recognises caba must move with the times to remain relevant and approachable. With this in mind 2021 saw us devote considerable time and effort preparing for our rebrand, which took place in early 2022. Our previous visual identity had served us well but had dated compared to similar organisations; we needed to present ourselves in a clearer, more compelling and more appealing way that articulated the breadth of support we provide. We consulted our community, internal teams and external partners and employed specialists to help us transition. I’m delighted to report our new brand and fresh direction has been well received.

The close of 2021 brought hope for a return to some kind of normality and our people began working on hybrid basis early in the new year. Sadly new concerns are gripping the wider world now but we remain ready to assist our community around the globe when and where we can.

This will be my last foreword as president of caba, as I’ll be stepping down as president in 2022. It’s been a pleasure working with the charity, helping it grow and develop, and I look forward to seeing it progress even further in the coming years.

We continue to grow, adapt and evolve, always seeking to improve our services and support for our community. Our core commitment, to helping past and present ICAEW members and ACA students thrive, remains at the heart of all we do. We have a long proud history, and I know we’ll continue to build upon this legacy into 2022 and beyond.

Kaaeed Mamujee president, caba

----- Start of picture text -----
2
----- End of picture text -----

patron’s foreword

2021 was another extraordinary year for all of us and caba’s services were once again critical to supporting the health and wellbeing of ICAEW members, students, staff and their families.

caba has provided this support for more than 130 years, but its true value has perhaps never been more apparent than these past two years.

While we began to see a return to ‘normal’ during 2021, this has come with its own challenges. Reintegrating into busy physical environments – both professional and social – has presented a sudden change of pace from lockdowns and social distancing and proved overwhelming for some.

A wider level of uncertainty and hardship also continues, in particular for businesses still struggling to recover. We must all continue to be mindful of those for whom the pandemic’s consequences will be felt longer-term.

We are still adjusting to – and experimenting with – exactly what our ‘new normal’ will look like, which will also present further challenges down the line and require difficult decisions. caba’s support will undoubtedly be needed here too. With continued healthy funding and a committed and passionate workforce, caba retains an ability to provide comprehensive and tailored support of exceptional quality, to those who need it most.

I’d like to thank everyone at caba for the tremendous work that they continue to do, supporting those working in and for our profession. I wish them every success for 2022.

William Brooks

patron, caba

3

contents

reference and administrative information 5 about caba 6 caba’s impact in 2021 7 looking ahead: 2022 priorities 14 15 financial summary and principal risks structure, governance & management 21 trustees’ responsibilities statement 26 audit report 27 31 financial statements 34 notes forming part of the financial statements

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

4

reference and administrative information

patron

vice patron

William Brooks BA BFP FCA CTA

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

Julia Penny BA BFP FCA

Deputy President of ICAEW Mark Rhys MBA BSc FCA Vice-President of ICAEW

our trustees

our committee members

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

Kaaeed Mamujee President
Helen Morris Vice President
(resigned 16/09/2021)
Ken Coppock Vice President
Phillippa Seagers Vice President from
09/09/2021
Mary Hardy
Susan Field
Colin Williams
Mark Evans Resigned 6/12/2021
Caitriona Flynn
Fay Ashwell
Angela Catlin
Natalie Hall
Tobias Bushill Appointed 20/12/2021
Roger Merchant Appointed 20/12/2021

Nigel Holland Investment Committee (resigned 11/11/2021) Lewis Allett Support Services Committee Kathy Webster Audit and Risk Committee Michael Grant Audit and Risk Committee Eric Kwan Investment Committee David Larsen Investment Committee Lei Tao Investment Committe

registered office

Merrett House

Swift Park Old Leicester Road Rugby Warwickshire CV21 1DZ

senior leadership team

Dr Cristian Holmes Chief Executive and Company Secretary

Jodie Gill Chief Operating Officer

Robert Smith Head of Finance and Operations

Lauren Rogers Head of Experience and Engagement

5

about caba

As an occupational charity, we help the ICAEW community thrive by equipping individuals with the practical, emotional, or financial tools to manage whatever’s in front of them, from everyday situations to exceptional life-changing circumstances.

Our vision is that everyone in the ICAEW community can fully participate in life.

We exist to work with members of our community to ensure they have the right level of support or advice so that they can manage whatever’s in front of them and can thrive.

caba are here to support you if you are an ACA student, an existing or former ICAEW member or a close family dependent, whether it’s the everyday or the exceptional, expected or out of the blue, we’re there. Our support is focused around – mental , physical , five key pillars , legal and career . financial

our objects

caba is a registered charity ( number 1116973 ) and our objects are:

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

past and present ICAEW members ACA students

past and present ICAEW employees past and present caba employees dependents (close family members) of all of the above, who we describe as spouses/partners, widows/widowers, children up to the age of 25 and carers.

6

caba’s impact in 2021

what we said we would strive to do in 2021

meet the needs of the chartered accountant community by:

strengthen our connections within the chartered accountant community by:

work to secure the organisation for future generations by:

what we did in 2021

how we met the needs of the chartered accountant community:

Individuals continue to come to us for a variety of reasons. In 2021 we dealt with 2,934 enquiries (2020 3,220 enquiries).

2,934 enquiries

----- Start of picture text -----
reasons for enquiry
mental health
legal advice
career support
financial support
other
0 200 400 600 800 1000 1200
2020 2021
----- End of picture text -----

During 2021 we had a total of 521,201 meaningful support interactions with our community, 21% higher than in 2020 (431,893).

Our support was delivered using a variety of means, utilising our in-house team of specialist advisors and case workers as well as working closely with our external partners. Most of our support in 2021 was delivered through either digital or telephone-based services .

The demand for emotional support services grew through 2021, and we expect this to continue in 2022. As the pandemic progressed our clients became accustomed to new channels for delivering emotional wellbeing and support and the convenience and flexibility offered by online services is now valued by clients.

----- Start of picture text -----
521,201
meaningful support
interactions
----- End of picture text -----

support interactions

----- Start of picture text -----
guidance and signposting
support and advice
personal and professional coaching
legal helpline
career coaching
financial assistance
counselling and emotional services
0 200 400 600 800 1000 1200 1400
2020 2021
----- End of picture text -----

8

We continued to deliver our learning and development support exclusively through digital platforms in 2021 and reviewed our provision with a refocus on providing learning that aligned more closely with our strategy. We delivered 230 webinars , workshops and seminars in 2021 (218 in 2020) over a range of subject matters and trained 9,178 people (2020 - 11,165 people). The impact of our learning support continues to be strong with delegates citing that they feel their wellbeing has positively improved having attended a course and that it was a valuable use of their time.

Overall in 2021, we achieved an average net promoter score of +69 from delegates.

----- Start of picture text -----
230
webinars
9178
people trained
+69
average NPS score
----- End of picture text -----

----- Start of picture text -----
learning and development
modular learning
espresso series
enhanced courses
- 1000 2000 3000 4000 5000 6000 7000 8000
2020 2021
----- End of picture text -----

We have continued to provide relevant advice and information on our website. We had a total of 565,177 help and guides page views in 2021, up from 479,830 in 2020.

Mental health was the most popular topic area in 2020, probably due to the impact of Covid, whereas in 2021 there was an equal share between mental health, physical health and career advice.

----- Start of picture text -----
565,177
page views
----- End of picture text -----

top 10 help and guides in 2020

----- Start of picture text -----
0 100000 200000 300000 400000 500000 600000
ways to cope with
ways to improve your understanding UK how to be work overload
presentation skills assertive
benefits
ways to support someone ways to keep boost alpha what is how to spot de- other
who is stressed your heart brainwaves mental pression in others
healthy wellbeing
coping with the emotion-
al impact with burglary
top 10 help and guides in 2021
0 100000 200000 300000 400000 500000 600000
what is mental
wellbeing
understanding UK boost alpha how to be
brainwaves assertive support someone
benefits who is stressed
what is your way to help ways to keep other
anxiety level someone who is your heart spot coping with the
stressed healthy depression emotional impact
in others with burglary
----- End of picture text -----

9

what we did in 2021

how we strengthened our connections within the chartered accountant community:

we developed a new brand

Our previous brand had served us well, but it was cold and lifeless and it wasn’t helping us engage well with our audience. We needed to broaden our community, appeal, better reflect the needs of our and better reflect who we are. We’ve therefore spent time reviewing our audience needs and how we can support them better. Part of this is about presenting ourselves in a clearer, more compelling and more appealing way that articulates the breadth of support we provide so that they understand the different ways we are available to them when they need us.

We started work on the rebrand in September 2020 by conducting broad and rigorous research with employees, trustees, users of our services, non-users and some of our partners. The research helped us understand how we are currently perceived and how we’d like to be perceived. For the rest of 2020 and into 2021 we developed our brand strategy and visual identity, testing this with our community and getting trustee approval. For the second half of 2021 we’ve spent time redeveloping our website and engaging our employees in our new brand, ready for our external launch in February 2022.

10

we redeveloped our website

As part of our rebrand, we also redeveloped our website during 2021 so that we were able to respond to the behavioural trends of our community. The redevelopment focused on delivering high quality online support and interaction, as well as protecting and securing the charity from external security threats and technological challenges. It will facilitate greater control and flexibility over caba’s digital presence and enable us to better adapt to changing digital landscapes, as well improving our ability to provide high quality engagement and support online whenever, and however, people need it.

The ability to sustain the organisation for future and digital generations in part relies upon our ability to embrace technological innovation, not only to engage with a digitally connected world but to deliver support in the way people now expect. Our new strategy focuses on capitalising digital technology to enhance and broaden the quality, mobility, and accessibility of support provided to individuals around the globe, as well as the overall experience offered to our community; caba’s new website which launches in February 2022 is core to this digital strategy.

we worked with others

We continued to work collaboratively with partners within the profession to deliver support to our community in the UK and overseas. We hosted webinars to support individuals with their personal and professional development whilst increasing their understanding of caba.

These digital programmes allowed us to reach many more of our community than our previous face to face sessions enabled, increasing our capacity to deliver more whilst benefitting from cost savings.

We reached 12,502 individuals in 2021 through webinars and online events targeted at our community in the UK & overseas.

By developing our presence within firms, businesses, ICAEW and other networks we were able to raise awareness of caba, as well as gathering insights about the community to support our strategic goals and better understand the community needs. In turn, this helped us to improve the support and experience we provided.

11

how we worked to secure the organisation for future generations:

we revised our 3-year strategy

We refreshed our organisational strategy, better aligning our brand ambitions and responding to the growing and changing needs of our diverse community. Working together internally and with partners to garner insight and intelligence, along with finding from wellbeing, brand, and website research over 2021, helped crystalise our strategic focus for the next three years. Four strategic pillars were developed (supporting, influencing, engaging and capacity), alongside 12 organisational goals, each with their own strategies and measures.

The three-year strategy was adopted at the end of 2021 including a sharpened vision and purpose, and an attendant 2022 operational plan was approved.

vision

Our vision is that everyone in the ICAEW community can fully participate in life.

purpose

We exist to work with members of our community to ensure that they have the right levels of support or advice, to give people the strength to face the everyday and the exceptional.

During the year ahead, we will be reporting regularly on progress and initiatives connected with delivering our revised strategy.

we conducted an organisational redesign

During the latter part of the year we looked at the organisational design of the charity. Through a process of consultation several changes were made to the employee structure. These changes reflected the ambitions of the new strategy, aimed to bring teams together more cohesively, and bring new skills into caba to enable us to realise our strategic aims.

we agreed a financial sustainability plan and spending policy

During 2021 we adopted a sustainable distribution and spending policy, by agreeing this we can create a secure future for the organisation that allows us to support future generations of the chartered accountant community. The policy 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 whilst maintaining the portfolio’s real (inflation-adjusted) value.

12

we took further steps to strengthen our cyber and data security

We achieved the during 2021. Our Cyber Essentials certification first phishing assessment took place, resulting in a “Phish Prone” score of just 1.8%, by comparison to a 19.1% average for same sector organisations of a similar level of cyber maturity.

Our data protection and cyber training completion reached 90% in every month of the second half of 2021. This is up from just 39% with our previous training provision.

Remote access to caba systems is now fully controlled centrally, with mobile devices granted access only where security is of sufficient level. All access can be removed, and data destroyed remotely on such devices.

Our IT infrastructure is now almost fully cloud based; completion of this exercise is planned for during 2022. The move to a cloud-based model has given us greater insight, security, and governance in respect of our data.

A data protection and security area of our intranet was launched to provide easy access to policies, guidelines, advice, and our new near miss reporting tool.

13

looking ahead at our priorities for 2022 and beyond

what we will strive to do in 2022

supporting:

you will experience timely , appropriate , and high-quality support and guidance from caba designed to help you fully participate in life.

we will ensure our unique services and support framework are relevant, easily accessible, and impactful

we will do what we do well

we will ensure our services meet the most important needs

influencing:

positive change within the profession, taking a stand on what you can expect us to affect matters most to our community and advocating for change.

we will understand the people and profession we support

we will campaign for good health across the profession and push for changes we will deliver upon our brand promise

engaging:

you can expect us to build relationships , connecting with communities across the profession, and putting you in control of the relationships you have with us

we will be approachable and accessible

we will communicate in a meaningful and purposeful way

we will create customer experiences that fulfil the expectations of our users

capacity:

you can expect us to be a well-managed , sustainable charity, that strives to use its resources to create the most impact.

14

financial summary and principal risks

financial review

income

Total income for 2021 was £3.8m . This was £1m lower than in 2020 principally due to lower voluntary income.

£3.8m

total income

Investment income remained relatively stable at £3.7m for 2021 slightly higher than 2020 (£3.4m). For further information on the total return of our investment portfolio please see the investment policy and performance section of this report.

£3.7m

investment income

During 2021 we were grateful to receive £115k in donations and legacies from individuals, organisations and charitable trusts (2020 £296k).

expenditure

Total expenditure was £5.9m , 11% lower than in 2020 (£6.6m). Direct aid made up £3m of this (2020 - £3.8m).

£115k donations

£5.9m

total expediture

direct aid

During 2020 we began to see a reduction in direct aid expenditure as we switched our methods of support delivery from face-to-face to digital platforms due to the pandemic. The increased uptake of digital services continued in 2021 and we saw interactions with our online tools increase by 21% to 516k (2020 427k).

fell by 19% to £1.2m (2020 £1.6m), during 2021 we supported 516 Expenditure on financial assistance individuals (excluding debt advice) (2020 – 554).

Costs for counselling and emotional services rose slightly to £160k (2020 - £120k) however we have seen a increase in users of this service (921 service users in 2021 compared to 782 service users in 2020). significant

Combined costs for our career support and personal and professional coaching services were £266k, 20% lower than in 2020 (£332k).

Our programme of training courses and workshops were a digital only offering during 2021 and costs were £91k (2020 £114k). During 2021 we trained 9,178 delegates (2020 - 11,195 delegates).

support costs

Support costs remained relatively stable during 2021 at £2.8m (2020 - £2.6m), we continued to incur additional costs to maintain our offices as a COVID secure workplace.

A major organisational focus during 2021 was the work on our rebrand, total costs incurred during 2021 were £285k . The rebrand was launched in February 2022.

£2.8m

support costs

£285k

rebrand costs

human resource

Total human resource costs include costs incurred in our organisational restructure, despite these total costs fell from £2.5m in 2020 to £2.4m in 2021 – see note 11 for details.

balance sheet

£17.4m . Mainly due to the strong performance of our investment portfolio our total fixed assets increased by

Property held for sale at the end of 2020 included our two former office buildings situated on Mitchell Court, Rugby. Facing challenging market conditions we completed on the sale of one unit, the second unit remains on the market.

15

investment performance and policy

The primary financial objective of the portfolio is to provide funds for the ongoing operations and grant making activities of caba. 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.

The long-term target is to achieve an average annual total return that exceeds CPI by 4%, net of the cost of investment management, through a combination of performance and donations (previously this was wage inflation plus 3%). The trustees recognise this is a long-term target and can only be fully assessed over the course of a business cycle which may be 10 years or more. However, the actual returns will be 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 Asset Risk Consultants Steady Growth Index, a peer group comparator of charity portfolios; and against the long-term return objective of CPI plus 4%.

,
turn objective of CPI plus 4%.
The portfolio’s returns relative to total return % 1 year 3 years (p.a.) 5 years (p.a.)
these comparative measures over caba portfolio 18.0 13.3 10.3
the 1 year, 3 years and 5 years to strategic benchmark 15.4 11.3 8.2
31 December 2021 were as ARC steady growth index 12.2 10.3 6.9
follows: wage infation +3% 7.4 7.3 7.2
CPI + 4% 9.4 6.5 6.5

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

The trustees have decided to invest primarily into 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 by the trustees to be acceptable given the investment portfolio’s long-term time horizon and real return objectives. The portfolio should, nevertheless, be well diversified across asset classes and individual investments to limit the risk to capital and income.

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.

16

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 (£142.8m at 31 December 2021) are investments held to generate income and secure the long-term funding of the charity.

These reserves currently represent caba’s 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 the ongoing operations and grant making activities of caba.

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 caba’s funds, or whether the trustees should instead reduce the expected level of future investment income in favour of shorter-term spending from capital.

Following the review of caba’s financial sustainability strategy, in July 2021 the trustees approved an annual spending policy based on a distribution from the investment portfolio. To avoid disparities in annual expenditure, the annual distribution rate will be set at 4% and based on the average value of the portfolio over the previous 20 quarters.

This sets the parameters by which the senior leadership team can prioritise how it deploys its resources, focusing on driving efficiencies and cost reduction at caba and is directly related to the reserves policy whilst seeking to maintain the portfolio’s real (inflation-adjusted) value.

current reserve levels 2021 £000 2020 £000
The trustees recognise that the value of these
reserves may vary signifcantly from year to
year because of investment market price		 unrestricted reserves
less tangible assets
less investment properties		 149,420
(1,502)
(21)		 132,640
(1,568)
(21)
movements, and that such variations do not in
themselves afect the portfolio’s potential to
generate income.		 less programme related investments
free reserves*
endowment and restricted funds		 (174)
147,723
368		 (190)
130,861
320

At 31 December 2021 caba had unrestricted funds of £149.4m of which £147.7m 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, caba held £0.4m of restricted and endowment funds.

17

grant making policy

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

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.

Work is planned for 2022 to ensure the support guidelines are transparent and readily available to beneficiaries.

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.

environmental, social and ethical responsibilities

It is becoming increasingly clear that environmental sustainability is an issue that charities, like other parts of society cannot afford to ignore. Over the past few years, we have begun to take some small steps, for example the creation of our “green team” to encourage and promote recycling and reuse. We have also implemented a hybrid working trial, which has helped to reduce our organisational emissions from commuting, we encourage the use of virtual meetings where appropriate and have transitioned to the use of laptops for all employees replacing higher power consuming desktop PC’s. However, during 2022 we will be working to formalise our environmental policy and strategy before benchmarking where we currently are, then working to reduce our carbon footprint.

We also recognise the importance of our social and ethical responsibilities. During 2021 we commissioned an organisation wide audit to help to provide us with a structure to build a more modern, inclusive organisation. A recently commissioned equality, diversity and inclusion (EDI) audit will firstly help us understand where we are, both as an employer and a charity, and where it is appropriate to evolve. We will use this knowledge to develop an EDI strategy that is integrated within the framework of caba’s strategy which the trustees intend to finalise during 2022.

18

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 leadership 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 principal risks are:

breaches of our cyber security

our brand equity within the community so they know that we will deliver on our promise to support them in the most appropriate way.

Cyber threats continue to be a major risk for all organisations. The increase seen in 2020 has continued, fueled in part by an increase in phishing threats (17% of all security breaches in 2021), brought about by an explosion in information gathering sites (test centres, vaccination bookings), which threat actors mimic in order to exploit the greatest weakness in any security chain; it’s users.

By the end of 2021, the cost of cyber breaches had outstripped forecasts, increasing by 10% on average. Both time to detect and resolve a breach and the cost associated were reduced for those with a more developed cloud ecosystem.

failure to keep the organisation relevant and efficient leading to issues being able to serve our brand equity within It is imperative that our community understand our beneficiaries who we are and what we do, equally we need to understand our community to provide relevant tailored services delivered by appropriate and effective methods.

During 2022 we will:

launch our re-brand

launch our new website

gain insight into our community through research and feedback

being unable to maintain our responsiveness and adaptability to changes, both in the outside world and internally

The impact of the global pandemic has shown that it is vital to be agile in order to meet the changing demands of our community. The services we provide, the methods we use to deploy support and the way we measure their effectiveness all need to be adapted over the coming period. This means that caba faces significant change.

During 2022 we will be;

rolling out our revised strategy

improving our impact by developing our ability to better understand the needs of our community and to understand the impact our interventions make

20

structure, governance and management

group structure

This report presents information about caba and its subsidiary undertaking, caba trustees limited (company no. 01600366).

board of trustees

The directors of caba, as defined in the Companies Act 2006, are also charity trustees for the purposes of charity law. Under caba’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 (AGM) 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 AGM following the AGM at which their break from office commenced. caba 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 meet at least quarterly, are responsible for the strategic direction and policy of caba. At present, there are 12 trustees. There were two retirements during 2021 and the trustees would like to thank Helen Morris and Mark Evans for their service and valuable contribution to caba.

To enable the trustees to manage caba effectively, several 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 regarding its duties, responsibilities and delegated authorities, all of which were reviewed in 2021.

We have six experienced, independent committee members, three of whom sit on the investment committee, one on the support services committee, and two on the audit and risk committee. All committee members undergo the same recruitment process as the trustees. There was one retirement during 2021 and the trustees would like to thank Nigel Holland for his service and valuable contribution to caba.

21

executive

The day-to-day management of caba has been delegated to the chief executive, Dr Cristian Holmes supported by the leadership team consisting of Jodie Gill, chief operating officer, Robert Smith, head of finance and operations and Lauren Rogers, head of experience and engagement.

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

employees

All our employees 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 employees has been fundamental to our success as a charitable organisation.

We are committed to supporting the training and development of our employees. The trustees wish to thank and congratulate our employees on their performance in 2021, supporting ever more people during a particularly challenging year.

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-for-profit 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 .

volunteers

Volunteers are an essential component of caba’s team. The trustees would like to thank them for their contribution in 2021.

22

committee members

Thank you to Lewis Allett who supported the support services committee; Nigel Holland, David Larsen, Eric Kwan and Lei Tao who supported the investment committee, and Michael Grant and Kathy Webster who supported the audit and risk committee during 2021.

support services investment audit and risk Caitriona Flynn (chair) Helen Morris (chair till 18/08/21) Mary Hardy (chair) Ken Coppock Fay Ashwell (chair from 19/08/21) Susan Field Phillippa Seagers Colin Williams Angela Catlin Natalie Hall Nigel Holland (resigned 11/11/21) Kathy Webster Lewis Allett David Larsen Mike Grant Eric Kwan Lei Tao

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

caba champions will continue to be a beneficial method to engage with our wider community. In 2022 we will develop and empower this network across the globe in line with our new strategy. We will work towards evolving our volunteer programme, so that it is contemporary and relevant whilst meeting the needs of our community.

Our champions continue to help us reach our eligible audiences through numerous 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. They also support our efforts to raise awareness of the new caba brand.

We currently have 21 champions within the UK and 13 champions across the globe who are based in Australia, Bangladesh, Cyprus, Dubai, Hong Kong and Pakistan. This year we have continued to actively recruit volunteers. One new caba champion is awaiting his induction in Singapore, who offered his support in understanding the needs of the growing ACA student population in SouthEast Asia and raising awareness about caba support available for them. Another ICAEW member in Hong Kong has expressed her interest, with the recommendation of the local ICAEW team. In the UK we have 3 individuals who are currently going through the process of their interview followed by their inductions as part of our onboarding process. One of these individuals was previously part of the ICAEW young members committee and has recently relocated back to Scotland and works in tax whilst advocating for mental health awareness in the workplace. Another individual spent 40 years as a chartered accountant and has ample experience as a probate practitioner.

23

caba members

caba members are an essential link with 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:

attend and vote at the AGM

receive a copy of the charity’s financial statements and our trustee report

You may also be able to make a difference, by encouraging individuals in need to contact us. cabasupport.members@caba.org.uk To find out more, email us at

24

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 Citation , Kings Court, Water Lane, Wilmslow, SK9 5AR

25

trustees’ responsibilities statement

The trustees (who are also directors of caba 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 of the incoming resources and application of resources, including the income and expenditure, of caba 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 caba’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 caba 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 caba’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 6 April 2022 and signed on its behalf by:-

26

Kaaeed Mamujee , President

independent auditor’s report to the members of caba

opinion

We have audited the financial statements of Chartered Accountants’ Benevolent Association for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, 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:

have been prepared in accordance with the requirements of the Companies Act 2006.

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 independent of responsibilities for the audit of the financial statements section of our report. We are the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

conclusions relating to going concern

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

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

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

27

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.

opinions on other matters prescribed by the Companies Act 2006

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

the information given in the report of the trustees (which includes the strategic report and the directors’ report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the strategic report and the directors’ report included within the report of the trustees have been prepared in accordance with applicable legal requirements.

matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the report of the 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:

adequate accounting records have not been kept by the charitable company; or the charitable company financial statements are not in agreement with the accounting records and returns; or

certain disclosures of trustees’ remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit; or the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.

28

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

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 charitable company 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 a direct impact on the preparation of the financial statements such as the Companies Act 2006, the Charities Act 2011 and payroll taxes.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the completeness and cut-off of voluntary income, legacies and investment income. Audit procedures performed by the engagement team included:

discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;

29

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 Auditor 10 Queen Street Place London EC4R 1AG

30

----- Start of picture text -----
statement of financial activities
(including income and expenditure
account) for the year ended 31 December
2021
----- End of picture text -----

notes
donations and legacies
charitable activities
net gains on investments
5
8
14(e )
investments
raising funds
other (losses) / gains
net (losses) on revaluation
and disposal of fxed assets
funds brough forward
6
9(a)
19
19
22
charitable activities
other
7
9(b)
total
total
income from:
expenditure on:
net expenditure before gains
/ (losses) on investments:
net income
total funds carried forward
net movement in funds
reconciliation of funds
18 / 19		 endowment
funds £000
total 2021
funds £000
unrestricted
funds £000
restricted
funds £000
total 2020
funds £000
-
115
115
-
1,315
-
3,660
3,658
2
3,414
-
23
23
-
15
-
3,798
3,796
2
4,744
-
5,790
5,790
-
6,389
-
93
93
-
236
-
-
-
-
11
-
5,883
5,884
-
6,636
-
(2,085)
(2,087)
2
(1,892)
41
19,086
19,041
4
3,015
-
(172)
(172)
-
754
41
16,829
16,781
6
1,877
-
(2)
(2)
-
(416)
41
16,826
16,780
6
1,461
263
132,960
132,640
57
131,499
304
149,787
149,420
63
132,960

The statement of financial activities includes all gains and losses recognised in the year.

31

balance sheet as at 31 December 2021 company number 5970606

notes
notes
tangible fxed assets
unrestricted funds - General fund
debtors falling due within one year
13
19
15(a)
investments
unrestricted funds - Revaluation reserve
property held for sale
14
19
15(b)
investment properties
endowment funds
programme related
investments
restricted funds
cash and cash equivalents
14
20
14(d)
20
15(c)
total fxed assets
total funds
less - Creditors
falling due within one year
provision for care home fees
16
17
fxed assets
current assets
funds
net current assets
total assets less current
liabilities
net assets
18		 2020
£000
2021
£000
1,568
1,502
125,275
142,785
21
190
21
174
127,054
144,482
1,801
1,031
1,355
834
3,550
4,382
6,706
6,247
796
931
5,910
5,316
132,964
149,798
4
11
132,960
149,787
105,063
104,022
27,577
45,398
263
57
304
63
132,960
149,787

approved by the board on 6 April 2022 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 2021

atement of cash flows for the year
nancial statements		 to 31 December 2021
notes
cash fows from operating activities
depreciation charges
dividends, interest and rents from investments
transfer of fxed assets to current assets
proceeds of sale from investment
decrease / (increase) in debtors
cash fows from investing activities
losses / (gains) on investments
purchase of tangible fxed assets
dividends, interest and rents from investments
purchase of investments
decrease / (increase) in property held for sale
other unrealised (gains) / losses
disposals of fxed assets
decrease / (increase) in programme related investment
(decrease) / increase in creditors
decrease in provision
change in cash and cash equivalents
in the reporting period
net movement in funds for the reporting period as per the
statement of fnancial activities
(a) reconciliation of cash fows from operating activities
cash and cash equivalents at the end of the
reporting period
net cash used in operating activities
net cash provided by investing activities
cash and cash equivalents at the beginning of
the period
change in cash and cash equivalents due to
non cash movements
15(c)
adjustments for:
(b) reconciliation of cash fows from investing activities
conciliation of cash flows		 2020
£000
2021
£000
(5,982)
(4,399)
3,982
5,229
(2,001)
5,549
3
830
3,500
2
3,550
4,382
2020
£000
2021
£000
1,463
16,826
93
1,195
(823)
76
-
770
(3,015)
(3,413)
(1,355)
(19,086)
(3,658)
521
110
-
(230)
(7)
(5)
15
134
7
(5,982)
(4,399)
3,413
2,552
3,660
1,792
(1,539)
(443)
(12)
(207)
(1)
(3)
3,982
5,229

reconciliation of cash flows

(c) reconciliation of net debt
cash
loans falling due within one year
cash equivalents
loans falling due after more than one year
overdraft facility repayable on demand
fnance lease obligations
total		 at start of
year £000
foreign exchange
movements £000
at end of
year £000
cash fows
£000
gains /
(losses) £000
1,540
-
(30)
-
2,374
-
864
-
-
-
2,010
-
-
-
2,008
-
-
-
(2)
-
-
-
-
-
-
-
-
-
-
-
3,550
(30)
4,382
864
(2)

33

notes to the financial statements

1. general information

The Chartered Accountants’ Benevolent Association (“the Charity”) exists 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:

Merrett House

Swift Park Old Leicester Road Rugby Warwickshire CV21 1DZ

2. statement of compliance

These financial statements have been prepared for the year ended 31 December 2021 and present information about the Charity.

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 2019), and the Companies Act 2006.

3. summary of significant accounting policies

The principal accounting policies applied in the preparation of these 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 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. Previously consolidated financial statements were produced, however there were no active subsidiaries at 31 December 2021 therefore standalone accounts have been prepared.

(b) going concern The Trustees have considered the Charity’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) foreign currency (i) functional and presentational currency

The Charity’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 fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses are recognised in the statement of financial activities.

34

(e) revenue recognition

Income is recognised when the Charity 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.

(f) expenditure and basis of (i) liabilities are recognised as expenditure as soon as there is a legal or constructive cost allocation obligation committing the Charity 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.

(g) defined contribution The Charity’s personal pension scheme is a defined contribution scheme. pension scheme Contributions are shown in the statement of financial activities as incurred. (h) 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 Charity, 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.

35

(ii) freehold offices

Following the acquisition of our new offices the Charity changed its accounting policy to hold land and buildings at cost (previously land and buildings were held at fair value). As the office building has recently been purchased, there was no difference between cost and fair value. Accordingly, no adjustments are required as a result of the change in accounting policy. 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.

(i) financial assets

The Charity 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. 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.

(j) investments

(ii) financial liabilities

Basic financial liabilities including trade and other payables are initially measured at transaction price and subsequently at fair value.

(i) listed investments

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 Charity’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.

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.

36

(k) unrestricted, restricted Unrestricted general funds can be used in accordance with the charitable objects at and endowment funds 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).

(l) provisions Provisions are recognised when the Charity 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.

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 Charity 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.

5. income from donations and legacies

donations and subscriptions
legacies		 unrestricted
funds 2020
£000
unrestricted
funds 2021
£000
296
120
1,019
(5)
1,315
115		 restricted
funds 2020
£000
restricted
funds 2021
£000
-
-
-
-
-
-

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
net property income		 unrestricted
funds 2020
£000
unrestricted
funds 2021
£000
3,391
3,656
20
2
2
-
3,413
3,658		 restricted
funds 2020
£000
restricted
funds 2021
£000
1
2
-
-
-
-
1
2

37

7. income from charitable activities

programme related investments
other income		 unrestricted
funds 2020
£000
unrestricted
funds 2021
£000
15
21
-
2
15
23		 restricted
funds 2020
£000
restricted
funds 2021
£000
-
-
-
-
-
-

8. analysis of charitable expenditure

(a) expenditure on charitable activities

£000
direct aid 2021
£000
£000
total 2021
support costs 2021
client support interactions
2,222
3,272
1,050
learning and development
357
987
630
outreach
advice led support
82
383
511
1,020
429
636
3,044
5,789
2,745		 £000
£000
£000
direct aid 2020
total 2020
support costs 2020
2,742
3,714
972
464
1,088
624
135
471
506
1081
371
610
3,812
6,389
2,577

(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.

counselling and emotional services
counselling and emotional services
legal helpline
legal helpline
training courses, workshops and seminars
training courses, workshops and seminars
fnancial assistance
fnancial assistance
website and video
website and video
personal and professional coaching
personal and professional coaching
human resources
human resources
career support
career support
other support advice and guidance
other support advice and guidance
24 hour emotional support and advice
24 hour emotional support and advice
other staf costs
other staf costs
2021
2020		 client support
interactions
£000
outreach
£000
total
£000
learning and
development
£000
advice led
support
£000
160
26
-
-
-
-
160
26
91
-
-
91
-
-
-
1,127
-
115
510
-
-
-
-
1,127
120
115
1,045
-
4
-
261
-
115
-
192
151
39
93
1
-
-
-
82
151
114
93
2
-
-
-
1
-
76
-
-
2,222
82
3,044
357
383
client support
interactions
£000
outreach
£000
total
£000
learning and
development
£000
advice led
support
£000
120
32
-
-
-
-
120
32
114
-
-
114
-
-
-
1,581
-
156
487
-
-
-
143
1,581
110
156
1,108
-
35
-
312
-
75
-
166
176
86
100
4
-
(10)
-
2
176
304
100
11
-
-
-
3
-
228
-
2
2,742
(30)
3,812
464
471

38

(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.

human resources
human resources
ofce costs
ofce costs
other staf costs
other staf costs
research and development
research and development
audit fees
audit fees
communications and outreach
communications and outreach
depreciation
depreciation
legal and professional fees
legal and professional fees
2021
2020		 client support
interactions
£000
outreach
£000
total
£000
learning and
development
£000
advice led
support
£000
506
186
207
76
1,325
487
305
112
307
113
73
14
7
29
6
3
189
36
18
43
8
4
44
8
4
205
29
30
84
12
12
536
76
78
123
17
18
124
18
18
1,050
429
2,745
630
636
client support
interactions
£000
outreach
£000
total
£000
learning and
development
£000
advice led
support
£000
517
154
197
59
1,370
409
332
99
324
97
110
-
7
42
-
3
292
-
18
71
-
4
69
-
4
130
35
19
50
13
7
345
93
50
83
23
12
82
22
12
972
371
2,577
624
610

9. analysis of expenditure on raising funds

Costs of raising funds relates to the cost of generating investment income.

investment and advisory fees for fund management
employment costs		 total 2020
£000
total 2021
£000
218
79
18
14
236
93

10. net income

These are stated after charging:

e
r charging:		 93 236
total 2021 total 2020
£000 £000
depreciation 76 93
employment costs 16 17
employment costs 2 2

39

11. staff costs and numbers

wages and salaries
staf costs allocated to direct aid
employer’s pension contributions
staf costs charged to support
employer’s NIC
staf costs allocated to raising funds
other payroll related benefts
total staf costs
total staf costs		 total 2020
£000
total 2021
£000
1,971
196
1,905
162
204
125
191
126
2,496
2,384
total 2020
£000
total 2021
£000
1,108
1,370
1,045
1,325
18
14
2,496
2,384

Staff costs include £88k relating to termination payments (2020 - £46k).

The average number of employees during the year was 53.92; FTE 51.21 (2020 - 55.83; FTE 53.45). The allocation of average number of employees between direct aid and support is shown below:

direct aid
2021
total
2021
support
2021
full time
19.8
42.7
22.9
part time
6.3
11.2
4.9
26.1
53.9
27.8		 direct aid
2020
total
2020
support
2020
22.1
45.9
23.8
4.8
9.9
5.1
26.9
55.8
28.9

key management personnel

The Charity considers that its key management personnel comprise the Chief Executive and the Senior management team consisting of Chief Operating Officer, Head of Finance and Operations and Head of Experience and Engagement.

The total employment benefits including employer pension contributions of the key management personnel were £346k (2020 - £366k).


6k).
no. of employees
higher paid employees 2021 2020
£60k - £70k 3 1
£70k - £80k 1 2
£80k - £90k 1 -
£90k - £100k 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 £162k (2020 - £196k). 57 employees contributed to the pension scheme during the year (2020 - 60 employees).

40

12. trustee remuneration and related party transactions

None of the trustees received any remuneration during the year (2020 - nil). Expenses were reimbursed or paid on behalf of 7 trustees (2020 - 7) for travel, accommodation and subsistence, totalling £1k (2020 - £1k).

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.

13. tangible fixed assets

freehold
ofces
£000		 furniture &
equipment
£000		 total
£000
cost at 1 January 2021 1,464 416 1,880
acquisitions in the year 5 7 12
disposals in the year - (104) (104)
at 31 December 2021 1,469 319 1,788
accumulated depreciation at 1 January 2021 9 302 311
charge in year 14 62 76
disposals in year - (101) (101)
at 31 December 2021 23 263 286
net book value at 31 December 2021 1,446 56 1,502
net book value at 31 December 2020 1,454 114 1,568

Previously freehold offices were held at fair value, following the acquisition of our new offices at Merrett House the Charity changed its accounting policy to hold land and buildings at cost.

14. investments

CABA Housing investment investment
Limited funds properties total
£000 £000 £000 £000
unrestricted 549 124,453 21 125,023
endowment - 251 - 251
restricted - 22 - 22
fair value at 1 January 2020 549 124,726 21 125,296
additions at cost - 207 - 207
disposals at fair value (549) (1,243) - (1,792)
additions and disposals in (549) (1,036) - (1,583)
net investment (losses) / gains
unrestricted funds - 19,049 - 19,049
endowment / restricted - 45 - 45
additions and disposals in - 19,094 - 19,094
unrestricted - 142,467 21 142,489
endowment - 291 - 291
restricted - 26 - 26
fair value at 1 January 2020 - 142,784 21 142,806
cost at 31 December 2021 - 99,306 2 99,308
cost at 31 December 2020 2,718 97,275 2 98,415

41

(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 consisted 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 began the process of liquidation during 2021.

(c) investments - investment properties

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

ments - programme related investments
loans written of
loans issued
fair value adjustment
loans repaid
total staf costs
loan book fair value at 1 January		 loans to
benefciaries
2020
£000
loans to
benefciaries
2021
£000
(3)
20
-
-
13
10
(17)
(39)
190
190
190
174

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 £13k to 3 individuals (2020 - £20k to 2 individuals) and received repayments of £38k (2020 - £17k). The loans are assessed annually for objective indicators of impairment and are held at fair value. No impairment was made during the year (2020 - £3k).

(e) investments - gains

unrealised
realised		 endowment
/ restricted
£000
unrestricted
funds
total
£000
£000
45
18,816
18,861
-
224
224
45
19,040
19,085

15. current assets

(a) debtors

prepayments
accrued income
other debtors		 2020
£000
2021
£000
144
1,638
149
875
19
7
1,801
1,031

42

(b) property held for sale

During 2020 the Charity moved from the two office buildings at Mitchell Court to our new office Merrett House. Both Mitchell Court properties were marketed for sale and the sale of Unit 6 was completed in March 2021. Unit 8 has been revalued and is shown at fair value being the estimated sales price less cost to dispose on the grounds that it was actively marketed for sale at the year end.


at the year end.
unit 8 Mitchell Court
unit 6 Mitchell Court		 2020
£000
2021
£000
975
380
834
-
1,355
834

(c) cash and cash equivalents

short term investments
cash at bank		 2020
£000
2021
£000
2,010
1,540
2,008
2,374
3,550
4,382

16. creditors falling due within one year

committed grants and donations
grants paid during the year
other creditors
committed grants and donations
accruals
grant and donations commitments charged to the
trade creditors
social security
amount of grant commitments recognised at 31 December		 2020
£000
2021
£000
2
372
316
57
49
2
289
461
117
62
796
931
2020
£000
2021
£000
(1,209)
1,581
(837)
1,127
372
289

17. provision for liability

ments recognised at 31 December
liability		 372
289
provision for care home top up fees 2020
£000
2021
£000
4
11

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 (2020 1 individual).

43

18. analysis of net assets between funds (prior year comparatives are provided in note 22)

tangible fxed assets
programme related investments
investments
other net assets
cash and cash equivalents
investment property
property held for sale		 unrestricted
funds general
fund
£000
endowment funds
£000
total
£000
unrestricted
funds revaluation
reserve
£000
restricted funds
£000
1,502
174
-
-
1,502
174
-
-
-
-
97,089
4,332
292
12
142,786
4,382
45,379
-
26
37
2
89
834
-
-
-
21
89
834
19
-
-
-
-
-
104,022
304
149,787
45,398
63

19. unrestricted funds - current year (prior year comparatives are provided in note 22)


)
at 1 January 2021
decrease in resources
realised
realised
realised
investment gains / (losses)
other gains / (losses)
fxed asset gains / (losses)
unrealised
unrealised
unrealised
at 31 December 2021		 revaluation
reserve
£000
general fund
total
£000
£000
27,577
105,063
132,640
-
(2,087)
(2,087)
27,577
102,976
130,553
(698)
922
224
18,817
-
18,817
18,119
922
19,041
(158)
126
(32)
(141)
-
(141)
(299)
126
(173)
-
(2)
(2)
-
-
-
-
(2)
(2)
45,397
149,419
104,022

20. endowment and restricted funds - current year (prior year comparatives are provided in note 22)

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.

special fund - created in 1887 to assist former long serving unqualified employees of chartered accountants and their dependants.

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.

44

(a) endowment funds

(a) endowment funds
at 1 January investment gains / (losses) at 31 December
2021 realised unrealised 2021
£000 £000 £000 £000
Caspar and Sidney Van de Linde 228 - 36 264
W.B. Peat memorial scholarship 35 - 5 40
263 - 41 304
(b) restricted funds
at 1 January investment gains / (losses) at 31 December
2021 income expenditure realised unrealised 2021
£000 £000 £000 £000 £000 £000
special fund 54 1 - - 4 59
W.B. Peat memorial scholarship 3 1 - - - 4
57 2 - - 4 63

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 2021 £669k remained un-called (2020 - £692 un-called). Under the terms of the agreement the Charity could be required to settle the outstanding liability in full during 2022.

22. prior year comparative statements

(a) prior year statement of financial activities

unrestricted endowment unrestricted
funds funds funds total 2020
income from: £000 £000 £000 £000
donations and legacies 1,315 - - 1,315
investments 3,413 - 1 3,414
charitable activities 15 - - 15
total 4,743 - 1 4,744
expenditure on:
charitable activities 6,389 - - 6,389
raising funds 236 - - 236
other 11 - - 11
total 6,636 - - 6,636
net expenditure before gains / (losses) on investments (1,893) - 1 (1,892)
net gains / (losses) on investments 3,015 - - 3,015
other (losses) / gains 754 - - 754
net income 1,876 - 1 1,877
net gains on revaluation and (416) - - (416)
net movement in funds 1,460 - 1 1,461
reconciliation of funds
funds brought forward 131,180 263 56 131,499
total funds carried for- 132,640 263 57 132,960

45

(b) prior year analysis of net assets between funds

unrestricted unrestricted
funds general funds revaluation endowment restricted
fund reserve funds funds total
£000 £000 £000 £000 £000
tangible fxed assets 1,568 - - - 1,568
investments 97,611 27,391 251 22 125,275
investment property 2 19 - - 21
programme related investments 190 - - - 190
cash and cash equivalents 3,496 7 12 35 3,550
property held for sale 1,195 160 - - 1,355
other net assets 1,001 - - - 1,001
105,063 27,577 263 57 132,960

(c) prior year unrestricted funds

at 1 January 2021
decrease in resources
realised
realised
realised
investment gains / (losses)
other gains / (losses)
fxed asset gains / (losses)
unrealised
unrealised
unrealised
at 31 December 2020		 revaluation
reserve
£000
general fund
total
£000
£000
25,849
105,329
131,178
-
(1,784)
(1,784)
25,849
103,545
129,394
(1,017)
1,574
557
2,348
-
2,348
1,331
1,574
2,905
(1)
(1)
(2)
759
-
759
758
(1)
757
-
-
-
(361)
(55)
(416)
(361)
(55)
(416)
27,577
132,640
105,063

(d) prior year endowment funds

at 1 January investment gains / (losses) investment gains / (losses) at 31
2020 realised unrealised December 2020
£000 £000 £000 £000
Caspar and Sidney Van de Linde 228 - - 228
W.B. Peat memorial scholarship fund 35 - - 35
263 - - 263
(b) prior year restricted funds
at 1 January
2020		 income expenditure investment gains / (losses)
realised
unrealised		 at 31
December
2020
£000 £000 £000 £000 £000 £000
special fund 54 1 - - 4 59
W.B. Peat memorial scholarship fund 3 1 - - - 4
57 2 - - 4 63

46

caba: for the everyday and the exceptional