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2022-12-31-accounts

Charity registration number 1125409

METROPOLITAN POLICE BENEVOLENT FUND ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

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 Insp G Gaskain Representative of the Metropolitan and City Police Orphans Fund Vacant Representative from the Metropolitan Police Federation PS C. Knight Representative from the Metropolitan Police Federation PC P. Deller General Secretary of the Metropolitan Police Federation DS A. Picton Representative from the Metropolitan Police Federation Supt R Walmsley (from Oct 2022) The Superintendents Association Rev’d J. Osborne Senior Chaplain of the Metropolitan Police Services Mr 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 UK SW1H 0BL Investment advisors Fidelity (via JG Wealth Management Limited as intermediary) Oakhill House 130 Tonbridge Road Hildenborough Tonbridge Kent TN11 9DZ

METROPOLITAN POLICE BENEVOLENT FUND

CONTENTS

Page
Trustees report 1 - 7
Statement of trustees responsibilities 8
Independent auditor's report 9 - 11
Statement of financial activities 12
Balance sheet 13
Statement of cash flows 14
Notes to the financial statements 15 - 20

METROPOLITAN POLICE BENEVOLENT FUND

TRUSTEES REPORT

FOR THE YEAR ENDED 31 DECEMBER 2022

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 2022.

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 2022 a total of £2,016,458 (2021: £2,110,116) 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 2022 the MPBF received a grant request bid from the Metropolitan and City Police Orphans Fund for £350,000 (2021: £350,000). The Trustees agreed the bid.

METROPOLITAN POLICE BENEVOLENT FUND

TRUSTEES REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

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

----- Start of picture text -----
34,244
33,077
32,326
30,976
30,046 29,692
20,915
20,398
19,758 19,537
18,733
17,776
2017 2018 2019 2020 2021 2022
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 70% to 52%. 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 2022 a total of 53 (2021: 45) applications were reviewed by the Relief Board of these 24 (2021: 18) were awarded a grant, 9 (2021: 6) were awarded a loan, 19 (2021: 21) were declined and 1 (2021: 0) withdrawn. There were 35 new applicants to the Charity and of the 18 return applicants, the majority were making a second application.

METROPOLITAN POLICE BENEVOLENT FUND

TRUSTEES REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

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
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 2022

Figure 3 - The range and distribution of amounts awarded as grants and loans in 2022.

A pie chart to show the general distribution of funds granted

----- Start of picture text -----
£0-£2000 (28%) £2001-£4000 (11%) £4001-£6000 (15%) £6001-£8000 (4%)
£8001-£10000 (0%) £10000+ (8%) Declined (34%)
----- End of picture text -----

Financial review

The state of the charity’s affairs at 31 December 2022, with comparative information for the previous year, can be seen in the accompanying financial statements.

The deficit of income over expenditure amounted to £632,454 (2021: Surplus £119,798).

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 2022 were £3,360,947 (2021: £3,993,403) of which £123,239 (2021: £374,132) is in the current account for instant access and £Nil (2021: £Nil) is held in the CCLA Investments COIF, £196,072 (2021: £209,790) were loans. Fixed asset investments, which are included at market value, were £3,206,274 (2021: £3,579,765).

Of these net assets, £700,128 (2021: £760,986) are held as permanent endowment funds.

METROPOLITAN POLICE BENEVOLENT FUND

TRUSTEES REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

Investment Policy

The Trustees commissioned a review of their investment strategy and a detailed independent review of the Charity's investment strategy was undertaken. The review originally started in 2019 and was revisited post-Covid towards the end of 2020 to ensure the conclusions of the review were still relevant and applicable. In October 2021 the Charity’s investments were switched to a Fidelity World Tracker following the outcome of this review. The aim of the switch was to maximise investment returns over the longer term whilst remaining within the risk profile of the Charity.

The move to the Fidelity World Tracker shifted all the Charity’s investments into equities. The strategy entails:

The Fidelity investments are held in several countries and across several different industry sectors.

The overall value of the investments decreased by £373,491 (2021: £6,872) in 2022 to £3,206,274, this includes £75,000 which was disinvested as cash reserves in November 2022 to carry out the objects of the Charity. The investment is made up of both permanent endowment and unrestricted units.

Figure 4 - Total value of the investments on 31 December 2022.

Investment Number of
Units		 2022
£		 Number of
Units		 2021
Fidelity Permanent
Endowment		 268,805 700,130 268,805 760,987
Unrestricted 972,969 2,506,144 1,006,991 2,818,781
TOTAL 1,241,774 3,206,274 1,275,796 3,579,768
OVERALL Permanent
Endowment		 268,805 700,130 268,805 760,987
Unrestricted 972,969 2,506,144 1,006,991 2,818,781
TOTAL 1,241,774 3,206,274 1,275,796 3,579,768

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. Payments from the Charity are made online using a dual-authorisation process from a list of approved signatories. The charity has no property or employees.

METROPOLITAN POLICE BENEVOLENT FUND

TRUSTEES REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

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:

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:

METROPOLITAN POLICE BENEVOLENT FUND

TRUSTEES REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

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.

The trustees report was approved by the Board of Trustees.

Chief Superintendent S.N. Ovens

Trustee

6 June 2023

METROPOLITAN POLICE BENEVOLENT FUND

STATEMENT OF TRUSTEES RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2022

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.

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 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

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:

METROPOLITAN POLICE BENEVOLENT FUND

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF METROPOLITAN POLICE BENEVOLENT FUND

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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:

METROPOLITAN POLICE BENEVOLENT FUND

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF METROPOLITAN POLICE BENEVOLENT FUND

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.

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.

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Bright Grahame Murray Chartered Accountants Statutory Auditor

3rd Floor 114a Cromwell Road London SW7 4AG

24 July 2023

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 section 1212 of the Companies Act 2006.

METROPOLITAN POLICE BENEVOLENT FUND

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2022

Unrestricted Endowment
funds
funds
2022
2022
Notes
£
£
Income from:
Voluntary income
2
2,196,822
-
Charitable activities
3
53,761
-
Investments
4
45
-
Total income and
endowments
2,250,628
-
Expenditure on:
Raising funds
5
40,906
-
Charitable activities
6
2,563,674
-
Total expenditure
2,604,580
-
Net gains/(losses) on
investments
10
(217,644)
(60,858)
Gross transfers
between funds
-
-
Net movement in funds
(571,596)
(60,858)
Fund balances at 1 January
2022
3,232,415
760,986
Fund balances at 31
December 2022
2,660,819
700,128		 Total
Unrestricted Endowment
funds
funds
2022
2021
2021
£
£
£
2,196,822
2,325,186
-
53,761
51,721
-
45
44,042
10,542
2,250,628
2,420,949
10,542
40,906
22,210
-
2,563,674
2,582,613
-
2,604,580
2,604,823
-
(278,502)
225,155
67,973
-
10,542
(10,542)
(632,454)
51,823
67,973
3,993,401
3,180,592
693,013
3,360,947
3,232,415
760,986		 Total
2021
£
2,325,186
51,721
54,584
2,431,491
22,210
2,582,613
2,604,823
293,128
-
119,796
3,873,605
3,993,401

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 2022

Notes
Fixed assets
Investments
12
Current assets
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within
one year
14
Net current assets
Total assets less current liabilities
Capital funds
Permanent endowment funds
Income funds
Unrestricted funds		 2022
£
£
3,206,274
366,647
123,239
489,886
(335,213)
154,673
3,360,947
700,128
2,660,819
3,360,947		 2021
£
£
3,579,765
391,478
374,132
765,610
(351,974)
413,636
3,993,401
760,986
3,232,415
3,993,401		 2021
£
£
3,579,765
391,478
374,132
765,610
(351,974)
413,636
3,993,401
760,986
3,232,415
3,993,401
3,993,401
760,986
3,232,415
3,993,401

The accounts were approved by the Trustees on 6 June 2023

Chief Superintendent S.N. Ovens Trustee

Mr J. Morgan Treasurer

METROPOLITAN POLICE BENEVOLENT FUND

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2022

Notes
Cash flows from operating activities
Cash absorbed by operations
16
Investing activities
Purchase of investments
Proceeds from disposal of investments
Investment income received
Net cash generated from investing
activities
Net cash used in financing activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2022
2021
£
£
£
£
(345,927)
(172,859)
-
(3,473,583)
94,989
3,773,583
45
54,584
95,034
354,584
-
-
(250,893)
181,725
374,132
192,407
123,239
374,132

METROPOLITAN POLICE BENEVOLENT FUND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

Charity information

Metropolitan Police Benevolent Fund is an unincorporated charity (Charity registration number 1125409) registered under a declaration of Trust dated 25 July 2008.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Charity's [governing document], the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 2022

1 Accounting policies

(Continued)

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
2022 2021
£ £
Donations and gifts 2,130,522 2,185,242
Legacies receivable 66,300 139,944
2,196,822 2,325,186
Donations and gifts
Contributions from Police Officers 2,080,593 2,176,593
Donations 49,929 8,649
2,130,522 2,185,242

METROPOLITAN POLICE BENEVOLENT FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

3 Charitable activities

4
5		 2022
2021
£
£
Donated services
53,761
51,721
Investments
Unrestricted
Unrestricted Endowment
Total
funds
funds
funds
general
2022
2021
2021
2021
£
£
£
£
Income from listed investments
-
44,028
-
44,028
Income from unlisted investments
-
-
10,542
10,542
Interest receivable
45
14
-
14
45
44,042
10,542
54,584
Raising funds
Unrestricted Unrestricted
funds
funds
2022
2021
£
£
Costs of generating funds
CAF contribution charges
20,798
21,764
Advertising
119
446
Costs of generating funds
20,917
22,210
Investment management
19,989
-
40,906
22,210		 2021
£
51,721
Total
2021
£
44,028
10,542
14
54,584
22,210
-
22,210

METROPOLITAN POLICE BENEVOLENT FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

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)		 2022
£
350,000
134,175
2,016,458
2,500,633
53,761
9,280
2,563,674		 2021
£
350,000
63,722
2,110,116
2,523,838
51,721
7,054
2,582,613

7 Support costs

Staff costs
Accommodation costs (rent,
rates etc)
Office overheads
Audit fees
Bank charges
Insurance
Analysed to
Charitable activities		 Support
costs
Governance
costs
£
£
39,323
-
7,032
-
5,366
-
-
6,000
-
874
-
2,406
53,761
9,280		 2022
£
39,323
7,032
5,366
6,000
874
2,406
63,041		 2021 Basis of allocation
£
35,348 Staff time
7,032 Staff time
5,366 Staff time
4,800 Governance
519 Governance
1,735 Governance
58,775

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 2022

9 Employees

The average monthly number of employees during the year was:

Total

2022 2021
Number Number
- -

There were no employees whose annual remuneration was more than £60,000.

10 Net gains/(losses) on investments

Unrestricted Endowment
funds
funds
general
2022
2022
£
£
Revaluation of
investments
(216,322)
(60,858)
Gain/(loss) on sale of
investments
(1,322)
-
(217,644)
(60,858)		 Total Unrestricted Endowment
funds
funds
general
2022
2021
2021
£
£
£
(277,180)
225,155
67,973
(1,322)
-
-
(278,502)
225,155
67,973		 Total
2021
£
293,128
-
293,128

11 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

12 Fixed asset investments

Listed
investments
£
Cost or valuation
At 1 January 2022 3,579,765
Valuation changes (277,180)
Realised loss on disposal of investments (1,322)
Disposals (94,989)
At 31 December 2022 3,206,274
Carrying amount
At 31 December 2022 3,206,274
At 31 December 2021 3,579,765

METROPOLITAN POLICE BENEVOLENT FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

12 Fixed asset investments

(Continued)

13
Debtors
Amounts falling due within one year:
Welfare loans
Amounts due from Charities Aid Foundation
Accrued income		 2022
£
196,072
168,786
1,789
366,647		 2021
£
209,790
177,878
3,810
391,478

Included within welfare loans is £154,972 (2021: £165,238) recoverable after more than one year.

14
Creditors: amounts falling due within one year
2022
£
Other creditors
329,813
Accruals and deferred income
5,400
335,213
15
Analysis of net assets between funds
Unrestricted
Permanent
endowment
£
£
Fund balances at 31 December 2022 are represented by:
Investments
2,506,146
700,128
Current assets/(liabilities)
154,673
-
2,660,819
700,128
16
Cash generated from operations
2022
£
(Deficit)/surplus for the year
(632,454)
Adjustments for:
Investment income recognised in statement of financial activities
(45)
Loss on disposal of investments
1,322
Fair value gains and losses on investments
277,180
Movements in working capital:
Decrease in debtors
24,831
(Decrease) in creditors
(16,761)
Cash absorbed by operations
(345,927)		 2021
£
347,174
4,800
351,974
Total
£
3,206,274
154,673
3,360,947
2021
£
119,796
(54,584)
-
(293,128)
75,093
(20,036)
(172,859)