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2020-12-31-accounts

Charity Registration No. 1125409

METROPOLITAN POLICE BENEVOLENT FUND ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

METROPOLITAN POLICE BENEVOLENT FUND

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees DAC G. McNulty Nominated by the Commissioner of the
Metropolitan Police Service
Chief Superintendent S. N. Ovens The Superintendents Association and
Chairman of The Metropolitan Police
Combined Benevolent Fund
PC A Donnell (replaced by PC G Representative of the Metropolitan and
Gaskain in Jan 2020) City Police Orphans Fund
Vacant Metropolitan Branch Board,
Metropolitan Police Federation
PS C. Knight Metropolitan Branch Board,
Metropolitan Police Federation
PC P. Deller General Secretary of the Metropolitan
Branch Board, Metropolitan Police
Federation
DS Andy Picton Metropolitan Branch Board,
Metropolitan Police Federation
Vacant Metropolitan Branch Board,
Metropolitan Police Federation
Rev’d Jonathan Osborne Senior Chaplain of the Metropolitan
Police Services
P. Van Tromp Representative from the London
Branch of The National Association of
Retired Police Officers
Treasurer Mr J Morgan Senior Accountant, MPS
Secretary Miss N Raj Charities Accountant, MPS
Charity number 1125409
Auditor Bright Grahame Murray
3rd Floor
114a Cromwell Road
London
SW7 4AG
Bankers Lloyds TSB
Pall Mall
St. James Branch
8 Waterloo Place
London
SW1Y 4BE

METROPOLITAN POLICE BENEVOLENT FUND

LEGAL AND ADMINISTRATIVE INFORMATION

Solicitors Bircham Dyson Bell 50 Broadway London SW1H 0BL Investment advisors Newton Investment Management Limited Mellon Financial Centre 160 Queen Victoria Street London EC4V 4LA Black Rock Merrill Lynch Investment Managers PO Box 9036 Chelmsford CM99 2XD

METROPOLITAN POLICE BENEVOLENT FUND

CONTENTS

Page
Trustees report 1 - 8
Independent auditor's report 9 - 12
Statement of financial activities 13
Balance sheet 14
Statement of cash flows 15
Notes to the financial statements 16 - 21

METROPOLITAN POLICE BENEVOLENT FUND

TRUSTEES REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees have pleasure in presenting the Annual Report of the Metropolitan Police Benevolent Fund ("the Charity", also referred to as MPBF) for the year ended 31 December 2020.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's governing document, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)”

Objectives and activities

The objects of the charity are to:

Achievements and performance

Police officers who donate as part of the Give As You Earn payroll giving scheme to the MPBF are able to take advantage of the facilities at the Police Rehabilitation Centre, in Goring-on-Thames, for free. The Police Rehabilitation Centre is a registered charity which is funded almost entirely by the officers themselves. The facilities available include physiotherapy, general nursing, plus specialist treatments such as acupuncture, aromatherapy and hydrotherapy, therapeutic massage, rest and recuperation following either an illness or injury. Monthly contributions equal to a set charge per officer is sent to the Centre and on occasions an additional donation is made to assist with projects such as refurbishment. In 2020 a total of £2,181,466 (2019: £2,188,917) was paid by the MPBF to the Centre.

The MPBF also supports and has a letter of understanding with the Metropolitan and City Police Orphans Fund pledging financial assistance for as long as the MPBF can deem possible. In 2020 the MPBF received a grant request bid from the Metropolitan and City Police Orphans Fund for £350,000 (2019: £350,000). The Trustees agreed the bid.

METROPOLITAN POLICE BENEVOLENT FUND

TRUSTEES REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Figure 1 - The number of contributing MPS police officers and the total number of MPS police officers.

----- Start of picture text -----
32,326
31,612
31,076 30,976
30,046 29,692
22,579
21,901
20,915
20,398
19,758 19,537
2015 2016 2017 2018 2019 2020
Total Number of Contributors to the MPBF in December Total Number of MPS Officers in December
----- End of picture text -----

Over the past six years the percentage of officers contributing to the MPBF has fallen from 71% to 60%. This is due to a variety of reasons ranging from the lower salary received by new recruits to the difficulty in promoting the Charity and its benefits to the new recruits when they join. The Federation endeavour to reach as many new recruits as possible and their efforts are commended by the Trustees. In September 2016, there was a 53% increase in the contribution rate which has affected the number of officers contributing to the MPBF.

Another core purpose of the charity is to give financial assistance to serving, former, retired or ex Metropolitan Police officers and/or their dependants. Awards are either by a grant or a loan depending upon the circumstances of the case.

Requests for financial assistance are sent to a committee called the Relief Board to which the Trustees had delegated authority to consider applications for grants and loans under £10,000 and make recommendations without discussing the case with all Trustees. It should be noted that grant or loan cheques are signed by at least one Trustee and a Trustee is therefore aware of the expenditure recommended by the Relief Board and can question the Board’s decision. Where the Relief Board seeks guidance and for cases above £10,000 all Trustees consider these applications and reach a majority decision. The Relief Board meet on a weekly basis and is comprised of representatives of the police officers’ associations.

In 2020 a total of 64 (2019: 73) applications were reviewed by the Relief Board. Of these 35 (2019: 45) were awarded a grant, 6 (2019: 21) were awarded a loan, 22 (2019: 7) were declined and 1 withdrawn. There were 36 new applicants to the Charity and of the 28 return applicants, the majority were making a second application.

METROPOLITAN POLICE BENEVOLENT FUND

TRUSTEES REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Figure 2 - Examples of awards made by the Charity.

Grant / Loan /
Declined		 Officer / Former
Officer / Dependant		 Reason for Application Exact
Amount
Grant Former Officer Former officer joined the Met in 1990 and left in 2006 after suffering stress
and PTSD from an incident as a firearms officer. Officer then worked in
abroad as a musician supporting bands, returning to the UK in 2018. Now
former officer is homeless in need of funding for accommodation and food.
RB were happy to support a grant.		 £5,580.00
Grant Dependent Applicant is the son of deceased MPS officer. Needed help paying for
dental work. RB felt that although this did not fit into their normal criteria,
they were willing to make a contribution because of the welfare reasons
behind this request.		 £1000.00
Grant Officer Officer has been diagnosed with a terminal illness, their partner also suffers
from MS. Request is for a stair lift to be installed to aid both of their comfort.
Trustees agreed to assist.

£5,500.00
Loan Former Officer Officer has muscular Dystrophy. Has recently moved to a bungalow which
after completing contracts, has realised there were problems within the
bungalow which was bought to the solicitor's attention who are not willing to
help. RB discussed the difficulty in having such an illness and how central
heating and suitable bathing/shower facilities are essential. They agreed to
help towards both items by way of a loan.
£9,376.00
Grant Former Officer Former officer had to stop working due to cancer of the throat and needs
financial help while not working during treatment. RB agreed to help
mortgage and council tax payments for 8 months.		 £5,329.76
Declined Officer Officer was awarded a grant last month to clear c/tax and water arrears.
Local authority waived c/tax arrears and the Fund was reimbursed the sum.
Officer asked if that sum (as was granted to officer) could be used towards
another debt. RB declined because officer needs to address debts as
advised by previous RB meeting.
-
Grant Officer Officer has MS, mobility has decreased to the point officer is almost totally
wheelchair bound and suffers many falls. Social services refused help
stating officer can maneuver at house using a walking frame. RB agreed to
assist as they felt chair would give officer a better quality of life.		 £3,995.00
Loan Former Officer Former officer fell into hardship having to pay for car repairs with also a
reduction in police pension due to a change in tax code. RB felt it was
unfortunate the former officer should suffer a reduction in pension and
whilst they agreed to help, they did not feel awarding a grant was an option
due to the excess between his income and expenditure.
£1,408.09
Loan Officer Officer awoke with paralysis in both arms. Unable to drive a manual
therefore needs an automatic car for now until limbs return to normal. RB
were very sympathetic and agreed to help this officer who is keen to return
to work. Illness was sudden, but fortunately will make a good recovery
although this will take time.		 £3,496.13
Grant Former Officer A pensioner of 83 years old had an accident at home and had to be
admitted as an in-patient for a few days. Being very immobile left pensioner
having to buy a stair-lift quickly which used up all the savings. RB agreed to
reimburse cost. Both husband and wife are elderly and quite weak so RB
were happy to help make life easier for them.

£2,351.00

METROPOLITAN POLICE BENEVOLENT FUND

TRUSTEES REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Figure 3 - The range and distribution of amounts awarded as grants and loans in 2020.

A pie chart to show the general distribution of funds granted

----- Start of picture text -----
£0‐£2000 (27%) £2001‐£4000 (16%) £4001‐£6000 (8%)
£6001‐£8000 (6%) £8001‐£10000 (8%) Declined (36%)
----- End of picture text -----

Financial review

The state of the charity’s affairs at 31 December 2020, with comparative information for the previous year, can be seen in the accompanying financial statements.

The deficit of income over expenditure amounted to £190,139 (2019: Surplus £60,019).

Reserves Policy

The Trustees review the reserves policy each year to ensure the charity remains a going concern and that it is able to meet its ongoing charitable commitments, principally to the Police Rehabilitation Centre.

The net assets at 31 December 2020 were £3,873,605 (2019: £4,063,744) of which £192,407 (2019: £69,275) is in the current account for instant access and £Nil (2019: £125,598) is held in the CCLA Investments COIF, £243,832 (2019: £296,110) were loans. Fixed asset investments, which are included at market value, were £3,586,637 (2019: £3,561,902).

Of these net assets, £693,013 (2019: £692,287) are held as permanent endowment funds.

METROPOLITAN POLICE BENEVOLENT FUND

TRUSTEES REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Investment Policy

To ensure the investments were diverse, units were originally purchased in the following investment Funds:

By investing in these two Funds the charity was able to secure a balanced portfolio between equities and bonds. This provides security against short term trends in the markets and allows for long term capital gain.

Figure 4 - The diversity of the investment portfolio

----- Start of picture text -----
MPBF Investment Portfolio (overall %)
UK Equities (26%) Overseas Equities (27%) Bonds (43%) Property (0%) Cash (4%)
----- End of picture text -----

The overall value of the investments increased by £24,735 in 2020 to £3,586,637. The investment is made up of both permanent endowment and unrestricted units. No units were purchased or sold in the year.

METROPOLITAN POLICE BENEVOLENT FUND

TRUSTEES REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Figure 5 - Total value of the investments on 31 December 2020.

Investment Number of Units 2020
£		 2019
£
Newton Global Growth &
Income Fund for Charities		 Permanent Endowment 396,063 575,558 578,648
Unrestricted 1,272,436 1,849,105 1,859,029
TOTAL 1,668,499 2,424,663 2,437,677
Black Rock Charinco Income
Fund		 Permanent Endowment 59,622 117,455 113,639
Unrestricted 530,213 1,044,519 1,010,586
TOTAL 589,835 1,161,974 1,124,225
OVERALL Permanent Endowment 693,013 692,287
Unrestricted 2,893,624 2,869,615
TOTAL 3,586,637 3,561,902

Risk management

The Trustees has assessed the major risks to which the Charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

The principal risks faced by the charity lie in the performance of investments and operational risks from ineffective grant making and the capacity of the charity to make effective grants. The Trustees consider variability of investment returns and the continued donations from police officers to be the charity's major financial risk.

The investment risk is mitigated by having a diversified investment portfolio which is managed by expert investment managers. The risk of reduced donations from police officers is mitigated against by requiring all officers applying for financial assistance to be contributors to the charity.

Members of the MPS police staff represented “donated services” on the accounts and administered the charity on behalf of the Trustees. Two signatories, being two Trustees or the Treasurer and a Trustee or an authorised signatory and a Trustee, signed the bank account cheques. The charity has no property or employees.

Structure, governance and management

Governing Document

The charity was formed as a result of a review from the Charity Commission in 2006 and is an amalgamation of the following 4 former Metropolitan Police charities:

METROPOLITAN POLICE BENEVOLENT FUND

TRUSTEES REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

The Widows’ and Widowers’ Fund had accumulated reserves that had been difficult to spend due to restrictions on expenditure in the governing document. The Charity Commission provided a scheme, dated 16 April 2009, identifying the property of the former Funds named previously to be administered as part of the MPBF and a declaration of Trust was made on 25 July 2008 and was entered on the Charity Commission list of mergers.

Dissolving the aforesaid charities gave the Trustees of the MPBF an opportunity to expand the objects of the new charity and unite the funds’ assets to allow greater expenditure on a broader range of activities in accordance with the governing document.

Appointment of Trustees

Under the terms of the charity’s governing document the Trustees were ten in number and held one of the following positions:

Public Benefit Statement

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake.

The Trustees confirm that they have complied with their duty to have regard to the guidance on public benefit published by the charity commission in exercising their powers and duties.

The charitable purpose of the MPBF was for “the promotion of the efficiency of the armed forces of the Crown, or the efficiency of the police, fire and rescue services or ambulance services” as described by the Charity Commission.

Under the principles of public benefit the aims of the charity were for a section of the public, the relief of serving, ex and retired Metropolitan police officers and their dependants in need, via grants and/or loans; thereby promoting the efficiency of the police service was to the benefit of the general public as a whole. The MPS operates an equal opportunities policy.

Trustees do not envision any of their awards being to the detriment of other members of the public but will bear this in mind when making awards.

Future Aims and Objectives

The Trustees are committed to continuing the relief of serving, ex and retired officers and their dependants where possible under the guidance of the governing document of the Metropolitan Police Benevolent Fund.

METROPOLITAN POLICE BENEVOLENT FUND

TRUSTEES REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Statement of trustees responsibilities

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

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that year.

In preparing these financial statements, the Trustees are required to:

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

The Trustees report was approved by the Board of Trustees.

Chief Superintendent S.N. Ovens

Trustee

Dated: 5 July 2021

METROPOLITAN POLICE BENEVOLENT FUND

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF METROPOLITAN POLICE BENEVOLENT FUND

Opinion

We have audited the financial statements of Metropolitan Police Benevolent Fund (the ‘Charity’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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 Charity’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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

METROPOLITAN POLICE BENEVOLENT FUND

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF METROPOLITAN POLICE BENEVOLENT FUND

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the statement of trustees responsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees 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 Charity’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 cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

METROPOLITAN POLICE BENEVOLENT FUND

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF METROPOLITAN POLICE BENEVOLENT FUND

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

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and addressing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following:

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

METROPOLITAN POLICE BENEVOLENT FUND

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF METROPOLITAN POLICE BENEVOLENT FUND

Other matters

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "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)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.

Bright Grahame Murray

Chartered Accountants

Statutory Auditor

3rd Floor 114a Cromwell Road London SW7 4AG

13 July 2021

Bright Grahame Murray is eligible for appointment as auditor of the Charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.

METROPOLITAN POLICE BENEVOLENT FUND

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted Endowment
funds
funds
2020
2020
Notes
£
£
Income from:
Voluntary income
2
2,363,797
-
Charitable activities
3
51,677
-
Investments
4
78,525
16,066
Total income and
endowments
2,493,999
16,066
Expenditure on:
Raising funds
5
22,945
-
Charitable activities
6
2,701,994
-
Total resources
expended
2,724,939
-
Net gains/(losses) on
investments
9
24,009
726
Net
(outgoing)/incoming
resources before
(206,931)
16,792
Gross transfers
between funds
16,066
(16,066)
Net movement in funds
(190,865)
726
Fund balances at 1
January 2020
3,371,457
692,287
Fund balances at 31
December 2020
3,180,592
693,013		 Total
Unrestricted Endowment
funds
funds
2020
2019
2019
£
£
£
2,363,797
2,365,156
-
51,677
50,880
-
94,591
93,650
20,414
2,510,065
2,509,686
20,414
22,945
23,450
-
2,701,994
2,802,458
-
2,724,939
2,825,908
-
24,735
275,060
80,767
(190,139)
(41,162)
101,181
-
20,414
(20,414)
(190,139)
(20,748)
80,767
4,063,744
3,392,205
611,520
3,873,605
3,371,457
692,287		 Total
2019
£
2,365,156
50,880
114,064
2,530,100
23,450
2,802,458
2,825,908
355,827
60,019
-
60,019
4,003,725
4,063,744

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

All income and expenditure derive from continuing activities.

METROPOLITAN POLICE BENEVOLENT FUND

BALANCE SHEET

AS AT 31 DECEMBER 2020

Notes
Fixed assets
Investments
10
Current assets
Debtors
12
Cash at bank and in hand
Creditors: amounts falling due within
one year
13
Net current assets
Total assets less current liabilities
Capital funds
Permanent endowment funds
Income funds
Unrestricted funds		 2020
£
£
3,586,637
466,571
192,407
658,978
(372,010)
286,968
3,873,605
693,013
3,180,592
3,873,605		 2019
£
£
3,561,902
675,217
194,872
870,089
(368,247)
501,842
4,063,744
692,287
3,371,457
4,063,744		 2019
£
£
3,561,902
675,217
194,872
870,089
(368,247)
501,842
4,063,744
692,287
3,371,457
4,063,744
4,063,744
692,287
3,371,457
4,063,744

The accounts were approved by the Trustees on 5 July 2021

Chief Superintendent S.N. Ovens Trustee

Mr J. Morgan Treasurer

METROPOLITAN POLICE BENEVOLENT FUND

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2020

Notes
Cash flows from operating activities
Cash absorbed by operations
15
Investing activities
Interest and dividends received
Net cash generated from investing
activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2020
£
94,591		 £
(97,056)
94,591
(2,465)
194,872
192,407		 2019
£
£
(357,557)
114,064
114,064
(243,493)
438,365
194,872

METROPOLITAN POLICE BENEVOLENT FUND

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

1.1 Accounting convention

The financial statements have been prepared in accordance with the Charity's [governing document], the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The Charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.

The accounts have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

The trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern. The most significant areas of adjustment and key assumptions that affect items in the accounts are to do with estimating the level of grants committed at the commencement of the year to meet the charity's objectives. The most significant area of uncertainty that affect the carrying value of assets held by the Charity are the level of investment return and the performance of the investment markets (see the trustees' report for further information).

Thus the trustees continue to adopt the going concern basis of accounting in preparing the accounts.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

The charity has a single permanent endowment. The trustees may invest the capital in perpetuity and may at their discretion allocate any returns on the investments for the purposes of the furtherance of the charitable activities of the fund.

1.4 Incoming resources

Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Voluntary donations received from members of the Metropolitan Police Service have been received gross under the Give As You Earn Scheme. Income tax recoverable in relation to other donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the Charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

The administration and operation of the fund is carried out by members of the MPS Finance Services’ Charities and Special Payments Section. An appropriate element of the salary cost of those individuals, together with their accommodation and overhead costs, is reflected within the Statement of Financial Activities.

METROPOLITAN POLICE BENEVOLENT FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

1.5 Resources expended

Liabilities are recognised as resources expended as soon as there was a legal or constructive obligation committing the Charity to the expenditure. All expenditure was accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Grants payable

Grants were made to the Metropolitan & City Police Orphans Fund, the Police Rehabilitation Centre and to officers and former officers (and their dependants) of the MPS in accordance with the charity’s objectives. Grants are included in the Statement of Financial Activities on an accruals basis.

Governance costs

Governance costs include the costs of governance arrangements that relate to the general running of the charity. These activities provide the governance infrastructure that allows the charity to operate and to generate the information required for public accountability. Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

1.6 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.7 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

2 Voluntary income

Unrestricted Unrestricted
funds funds
2020 2019
£ £
Donations and gifts 2,363,797 2,365,156
Donations and gifts
Contributions from Police Officers 2,250,040 2,289,788
Donations 113,757 75,628
Other - (260)
2,363,797 2,365,156

METROPOLITAN POLICE BENEVOLENT FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

3 Charitable activities

Donated services

2020 2019
£ £
51,677 50,880

4 Investments

Unrestricted
Permanent
funds endowment
£
£
Income from listed investments
78,151
16,066
Interest receivable
374
-
78,525
16,066
For the year ended 31 December 2019
93,650
20,414
Raising funds
Costs of generating funds
CAF contribution charges
Entries in directories		 Total
2020
£
94,217
374
94,591
2020
£
22,499
446
22,945		 Total
2019
£
106,115
971
114,064
114,064
2019
£
22,897
553
23,450

5 Raising funds

METROPOLITAN POLICE BENEVOLENT FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

6 Charitable activities

Metropolitan & City Police Orphans Fund
Officers and former officers (and their dependants) of the MPS
Police Rehabilitation Centre
Share of support costs (see note 7)
Share of governance costs (see note 7)		 2020
£
350,000
113,132
2,181,466
2,644,598
51,677
5,719
2,701,994		 2019
£
350,000
204,400
2,188,917
2,743,317
50,880
8,261
2,802,458

7 Support costs

Staff costs
Accommodation costs (
Office overheads
Audit fees
Legal and professional
Bank charges
Insurance
Analysed to
Charitable activities		 Support
costs
Governance
costs
£
£
39,279
-
7,032
-
5,366
-
-
4,800
-
-
-
542
-
377
51,677
5,719		 2020
£
39,279
7,032
5,366
4,800
-
542
377
57,396		 2019 Basis of allocation
£
35,348 Staff time
5,366 Staff time
7,032 Staff time
4,800 Governance
2,000 Governance
344 Governance
1,117 Governance
59,141

The Trustees have decided that all governance costs are met from unrestricted funds and so no allocation or charge is made to endowment funds for any governance related costs.

8 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Charity during the year.

METROPOLITAN POLICE BENEVOLENT FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

9 Net gains/(losses) on investments

Unrestricted Endowment
funds
funds
general
2020
2020
£
£
Revaluation of
investments
24,009
726
10
Fixed asset investments
Cost or valuation
At 1 January 2020 & 31 December 2020
Carrying amount
At 31 December 2020
At 31 December 2019
11
Financial instruments
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
12
Debtors
Amounts falling due within one year:
Welfare loans
Amounts due from Charities Aid Foundation
Accrued income		 Total
Unrestricted
funds
2020
2019
£
£
24,735
275,060		 Endowment
Total
funds
general
2019
2019
£
£
80,767
355,827
Listed
investments
£
3,561,902
3,561,902
3,561,902
2020
2019
£
£
3,586,637
3,561,902
2020
2019
£
£
243,832
296,110
185,602
375,909
37,137
3,198
466,571
675,217		 Endowment
Total
funds
general
2019
2019
£
£
80,767
355,827
Listed
investments
£
3,561,902
3,561,902
3,561,902
2020
2019
£
£
3,586,637
3,561,902
2020
2019
£
£
243,832
296,110
185,602
375,909
37,137
3,198
466,571
675,217
3,561,902
3,561,902
2019
£
3,561,902
2019
£
296,110
375,909
3,198
675,217

Included within welfare loans is £188,670 (2019: £229,543) recoverable after more than one year.

METROPOLITAN POLICE BENEVOLENT FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

13
Creditors: amounts falling due within one year
2020
£
Other creditors
362,410
Accruals and deferred income
9,600
372,010
14
Analysis of net assets between funds
Unrestricted
Permanent
endowment
£
£
Fund balances at 31 December 2020 are represented by:
Investments
2,898,925
693,610
Current assets/(liabilities)
286,968
-
3,185,893
693,610
15
Cash generated from operations
2020
£
(Deficit)/surplus for the year
(190,139)
Adjustments for:
Investment income recognised in statement of financial activities
(94,591)
Fair value gains and losses on investments
(24,735)
Movements in working capital:
Decrease in debtors
208,646
Increase/(decrease) in creditors
3,763
Cash absorbed by operations
(97,056)		 2019
£
363,447
4,800
368,247
Total
£
3,586,637
286,968
3,873,605
2019
£
60,019
(114,064)
(355,827)
143,538
(91,223)
(357,557)